Pathfinder Bancorp, Inc. [PBHC] Filings

10-Q 1 pbhc-20230331.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _______ to _______

(Exact Name of Company as Specified in its Charter)

Maryland
(State of Other Jurisdiction of Incorporation)

001-36695
(Commission File No.)

38-3941859
(I.R.S. Employer Identification No.)
 

214 West First Street, Oswego, NY 13126

(Address of Principal Executive Office) (Zip Code)

(315) 343-0057

(Issuer’s Telephone Number including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	PBHC	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


	Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


	Yes ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of May 12, 2023, there were 4,673,665 shares outstanding of the registrant’s Voting common stock and 1,380,283 shares outstanding of the registrant’s Series A Non-Voting common stock.

Table of Contents

PATHFINDER BANCORP, INC.

INDEX


PART I - FINANCIAL INFORMATION		PAGE NO.

Item 1.	Consolidated Financial Statements (Unaudited)	3
	Consolidated Statements of Condition	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income (Loss)	5
	Consolidated Statements of Changes in Shareholders' Equity	6
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations (Unaudited)	42

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59

Item 4.	Controls and Procedures	59

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	61
Item 1A.	Risk Factor	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other information	61
Item 6.	Exhibits	61

SIGNATURES		62

PART I - FINANCIAL INFORMATION

Item 1 – Consolidated Financial Statements

Pathfinder Bancorp, Inc.

Consolidated Statements of Condition

(Unaudited)


	March 31,			December 31,
(In thousands, except share and per share data)	2023			2022
ASSETS:
Cash and due from banks	$	15,178		$	13,939
Interest-earning deposits		17,143			21,343
Total cash and cash equivalents		32,321			35,282
Available-for-sale securities, at fair value		186,985			191,726
Held-to-maturity securities, at amortized cost (fair value of $189,622 and $181,491, respectively)		201,216			194,402
Marketable equity securities, at fair value		2,126			1,862
Federal Home Loan Bank stock, at cost		5,226			5,982
Loans		910,154			897,735
Loans held-for-sale		-			19
Less: Allowance for credit losses		17,869			15,319
Loans receivable, net		892,285			882,435
Premises and equipment, net		17,685			17,872
Assets held-for-sale		3,042			3,042
Operating lease right-of-use assets		2,062			2,098
Finance lease right-of-use assets		4,178			4,213
Accrued interest receivable		5,625			6,168
Foreclosed real estate		221			221
Intangible assets, net		96			101
Goodwill		4,536			4,536
Bank owned life insurance		24,170			24,012
Other assets		22,495			25,969
Total assets	$	1,404,269		$	1,399,921

LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits:
Interest-bearing	$	962,621		$	941,719
Noninterest-bearing		181,641			183,711
Total deposits		1,144,262			1,125,430
Short-term borrowings		43,536			60,333
Long-term borrowings		55,669			55,664
Subordinated debt		29,777			29,733
Accrued interest payable		1,520			975
Operating lease liabilities		2,385			2,417
Finance lease liabilities		4,411			4,422
Other liabilities		10,348			9,365
Total liabilities		1,291,908			1,288,339
Shareholders' equity:
Voting common stock, par value $0.01; 25,000,000 authorized shares; 4,651,829 shares issued and outstanding, respectively		47			47
Non-Voting common stock, par value $0.01; 1,505,283 authorized shares; 1,380,283 shares issued and outstanding, respectively		14			14
Additional paid in capital		52,207			52,101
Retained earnings		71,236			71,322
Accumulated other comprehensive loss		(11,534	)		(12,172	)
Unearned ESOP		(270	)		(315	)
Total Pathfinder Bancorp, Inc. shareholders' equity		111,700			110,997
Noncontrolling interest		661			585
Total equity		112,361			111,582
Total liabilities and shareholders' equity	$	1,404,269		$	1,399,921

The accompanying notes are an integral part of the consolidated financial statements.

- 3 -

Pathfinder Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)


	For the three months ended
(In thousands, except per share data)	March 31, 2023		March 31, 2022
Interest and dividend income:
Loans, including fees	$	10,658	$	8,692
Debt securities:
Taxable		3,747		2,120
Tax-exempt		455		118
Dividends		78		48
Federal funds sold and interest earning deposits		105		4
Total interest and dividend income		15,043		10,982
Interest expense:
Interest on deposits		4,037		965
Interest on short-term borrowings		372		5
Interest on long-term borrowings		194		133
Interest on subordinated debt		472		412
Total interest expense		5,075		1,515
Net interest income		9,968		9,467
Provision for credit losses		692		102
Net interest income after provision for credit losses		9,276		9,365
Noninterest income:
Service charges on deposit accounts

Pathfinder Bancorp, Inc. [PBHC] Filings
10-Q	[2023-05-15]
10-K	[2023-03-31]
10-Q	[2022-11-14]
10-Q	[2022-08-15]
10-Q	[2022-05-16]
10-K	[2022-03-25]
10-Q	[2021-11-15]
10-Q	[2021-08-16]
10-Q	[2021-05-17]
10-K	[2021-03-30]
10-Q	[2020-11-16]
10-Q	[2020-08-13]
10-Q	[2020-05-29]
10-K	[2020-03-23]
10-Q	[2019-11-12]
10-Q	[2019-08-09]
10-Q	[2019-05-14]
10-K	[2019-03-27]
10-Q	[2018-11-13]
10-Q	[2018-08-10]
10-Q	[2018-05-11]
10-K	[2018-03-30]
10-Q	[2017-11-13]
10-Q	[2017-08-11]
10-Q	[2017-05-15]
10-K	[2017-03-31]
10-Q	[2016-11-14]
10-Q	[2016-08-12]
10-Q	[2016-05-13]
10-K	[2016-03-29]
10-Q	[2015-11-13]
10-Q	[2015-08-13]
10-Q	[2015-05-14]
10-K	[2015-03-18]
10-Q	[2014-11-12]
S-1	[2014-06-11]