PBHC · Pathfinder Bancorp, Inc.

Pathfinder Bancorp delivered a return to profitability in Q1 2026 with net income of $2.4 million or $0.38 per diluted share, a stark improvement from the Q4 2025 net loss of $5.6 million driven by an $11.2 million provision expense following a comprehensive review of 90% of its commercial loan portfolio. The Q1 provision flipped to a $168,000 benefit due to lower net charge-offs and strong credit performance, reducing reserves slightly to $29.0 million or 3.24% of loans, with specific reserves comprising 63.8% of ACL. Commercial loans grew to $549.5 million (61.4% of total), while core deposits expanded to $993.7 million (82% of total deposits), signaling successful execution on relationship-based funding and high-quality lending strategies in Central New York markets. Net interest income dipped slightly to $10.3 million from the prior quarter, but NIM expanded 1 basis point to 3.10%, benefiting from a 23 basis point decline in deposit costs that offset lower asset yields amid loan maturities, payoffs, and three commercial relationships moving to nonperforming status. Noninterest income of $1.1 million included a $203,000 fair value loss on $6.3 million in substandard held-for-sale loans, with sale negotiations ongoing. Noninterest expense fell to $8.7 million (2.48% of average assets), reflecting lower one-time items like charitable contributions and loan-related fees from Q4. Management, led by CEO James Dowd, emphasized positive momentum, appropriate reserving for identified commercial risks, and plans to grow core deposits, commercial loans, and local residential/consumer lending supported by strong liquidity. A $0.10 per share dividend was declared, payable May 8, underscoring capital return confidence.