Pathfinder Bancorp Posts Q1 Profit with $2.4M Income, 3.10% Net Interest Margin
Pathfinder Bancorp reported Q1 2026 net income of $2.4 million, or $0.38 per share, reversing a $5.6 million loss in Q4 2025 on a $168,000 credit provision benefit. Core deposits totaled $993.7 million, net interest margin rose to 3.10% and allowance for credit losses was $29.0 million (3.24% of loans).
1. Q1 Profitability Turnaround
Pathfinder Bancorp returned to profitability in Q1 2026, reporting net income of $2.4 million, or $0.38 per diluted share, compared with a $5.6 million loss, or $0.88 per share, in Q4 2025. The quarter included a $168,000 benefit from lower net charge-offs and credit provisions.
2. Credit Quality and Reserve Levels
The allowance for credit losses remained steady at $29.0 million, representing 3.24% of total loans, with 63.8% of the ACL tied to reserves from last year’s commercial portfolio review. A $168,000 provision benefit reflected improved charge-off performance in the quarter.
3. Deposit and Loan Balances
Total deposits grew to $1.21 billion, with core deposits rising to $993.7 million, or 82.0% of total deposits, up from $947.2 million in Q4 2025. Commercial loans increased to $549.5 million, up from $543.7 million, driven by continued lending activity.
4. Net Interest Income and Margin Trends
Net interest income was $10.3 million in Q1 2026, down from $10.5 million in Q4 2025, while net interest margin edged up to 3.10% from 3.09%. Noninterest expense totaled $8.7 million, resulting in an efficiency ratio of 75.65%.