Pathfinder Bancorp, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024, highlighting a challenging period marked by a net loss and increased provisions for credit losses. For the three months ended September 30, 2024, the company recorded a net loss attributable to common shareholders of $4.6 million, or $(0.75) per share, a stark contrast to a net income of $2.2 million, or $0.35 per share, in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $524,000 compared to a profit of $6.8 million in the prior year.

Total interest and dividend income for the third quarter increased to $21.2 million, up from $17.7 million in Q3 2023, driven by higher yields on loans and investment securities. Net interest income also rose to $11.7 million, a 16.6% increase from the previous year, with the net interest margin improving to 3.34% from 3.07%. However, the provision for credit losses surged to $9.0 million in Q3 2024, compared to $833,000 in Q3 2023, reflecting a comprehensive review of the loan portfolio and increased net charge-offs of $8.7 million.

The company’s total assets as of September 30, 2024, reached $1.48 billion, a slight increase from $1.38 billion a year earlier. Total loans increased to $921.7 million, up 2.73% from $897.2 million at the end of 2023. The acquisition of the East Syracuse branch from Berkshire Bank on July 19, 2024, contributed significantly to the growth in deposits, which rose to $1.20 billion, a 6.8% increase from $1.12 billion at the end of 2023. The acquisition added $186 million in deposits and $30.6 million in assets, enhancing the bank's customer base and non-brokered deposits by 21.5%.

Noninterest income for Q3 2024 totaled $1.7 million, a 43.1% increase from the previous year, attributed to higher interchange fees and earnings from bank-owned life insurance. However, noninterest expenses rose to $10.3 million, primarily due to transaction-related costs from the East Syracuse branch acquisition, leading to an efficiency ratio of 75.28%.

The company declared a cash dividend of $0.10 per share for Q3 2024, reflecting a commitment to returning value to shareholders despite the net loss. As of September 30, 2024, the allowance for credit losses stood at $17.3 million, representing 1.87% of total loans, up from $16.0 million at the end of 2023. The bank remains well-capitalized, exceeding all required capital ratios.