Pathfinder Bancorp Q3 profit rises on lower credit costs
PBHC•Pathfinder Bancorp’s third-quarter net income and EPS rose year over year but fell from the prior quarter. EPS was $0.32, net interest margin was 3.07%, and deposits and loans declined as the bank reduced higher-cost deposits.
1. Quarterly results
Pathfinder Bancorp reported higher third-quarter net income and EPS year over year, though both declined from the prior quarter. EPS was $0.32 and net interest margin was 3.07%. Net interest income rose sequentially but fell from a year earlier.
2. Loans and deposits
Deposits and loans declined as the company continued to reduce higher-cost deposit balances. Higher-rate commercial real estate originations offset portfolio runoff and supported net interest income. The company said net charge-offs tied to previously identified commercial credits were covered by prior reserves.
3. Outlook
The company expects to begin funding new commercial real estate loans in the fourth quarter of 2026. It anticipates industry-wide upward pressure on deposit costs but expects to maintain core deposit strength, and sees regional economic momentum supported by a large semiconductor facility and state investments.
