Pathfinder Bancorp Earns $2.1 Million in Q3 2026 as Credit Cleanup Continues

Pathfinder Bancorp reported net income of $2.1 million, or $0.32 per diluted share, for the third quarter of 2026, down from $2.7 million, or $0.42 per diluted share, in the second quarter. The holding company for Pathfinder Bank announced the results on November 2, 2026, according to GlobeNewswire.

Pathfinder's Credit Resolution and Deposit Strategy

Pathfinder Bank is a community bank founded in 1859 and headquartered in Oswego, New York, serving consumers, small and mid-sized businesses and municipal entities across six Central New York counties. It is a subsidiary of NASDAQ-listed Pathfinder Bancorp.

Third-quarter net charge-offs were $4.3 million, driven primarily by commercial individually analyzed loans and fully covered by previously established specific reserves. The allowance for credit losses was $22.7 million, or 2.60% of total loans, on September 30, 2026, compared with $26.9 million, or 3.03% of loans, on June 30, 2026. Provision expense was $231,000 in the quarter.

Loans totaled $873.0 million at September 30, 2026, down from $889.0 million at June 30, 2026. Deposits totaled $1.16 billion, reflecting intentional runoff of higher-cost time and brokered deposits as well as municipal deposit seasonality. Core deposits were $957.1 million, or 82.6% of total deposits.

Net interest income was $10.7 million, compared with $10.5 million in the second quarter of 2026 and $11.6 million in the third quarter of 2025. The net interest margin was 3.07%, compared with 3.08% in the linked quarter and 3.34% a year earlier. The average cost of total deposits improved to 2.04%, down 3 basis points from the second quarter and 24 basis points from the year-ago period.

"Third quarter results demonstrate continued execution of our strategy for strengthening our relationship-focused community bank," President and Chief Executive Officer James Dowd said. "Credit performance continued to reflect the orderly resolution of previously identified commercial credits, with net charge-offs fully covered by specific reserves previously established for those exposures."

Pathfinder's Commercial Lending and Housing Fund Roles

According to akta.pro company records, Pathfinder Bank is one of the private partners participating in the $150 million Housing Central New York Fund, a public-private revolving loan fund administered by the Community Preservation Corporation, a partnership dated February 2026. The same records list a June 2026 leadership change appointing Martin Custer as Vice President, Senior Commercial Lender, a move described as an effort to expand commercial lending capacity in the Central New York market.

Pathfinder's Earlier 2026 Results and Dividend

Pathfinder reported net income of $2.7 million, or $0.42 per diluted share, for the second quarter of 2026, compared with $2.4 million in the first quarter of 2026 and $31,000 in the second quarter of 2025, according to Stock Titan. The company declared a cash dividend of $0.10 per share on its voting and non-voting common stock for the fiscal quarter ending June 30, 2026, GlobeNewswire reported on June 29, 2026.

Pathfinder's Dividend Payment Date

Quarterly cash dividends of $0.10 per share were declared on September 28, 2026 and are payable on November 6, 2026.