The sharp YoY earnings improvement is largely driven by a provision benefit and lower charge-offs, not core revenue growth. Monitor upcoming quarters for stabilization of NPLs and NIM, as the elevated credit costs and declining loan book suggest limited near-term upside. The $0.10 quarterly dividend appears sustainable given current earnings, but the 74.26% efficiency ratio signals ongoing expense pressure.
Price Chart
Executive Summary
Pathfinder Bancorp reported Q2 2026 net income of $2.7M ($0.42/diluted share), a significant improvement from $31K in Q2 2025, driven by a provision benefit and lower charge-offs. Net interest income declined 2.6% YoY to $10.5M, and NIM compressed to 3.08% from 3.11%, while nonperforming loans remained elevated at 4.02% of total loans. The sequential earnings improvement is notable, but the YoY revenue decline and elevated credit costs keep the outlook cautious for this $78M market cap community bank.
Key Financial Metrics
Key Facts
- Q2 2026 net income attributable to common shareholders was $2.7M ($0.42/diluted share), vs $2.4M in Q1 2026 and $31K in Q2 2025.
- Net interest income was $10.5M, down 2.6% YoY from $10.8M in Q2 2025.
- Net interest margin (NIM) was 3.08%, vs 3.10% in Q1 2026 and 3.11% in Q2 2025.
- Nonperforming loans were $35.7M, or 4.02% of total loans, down from $38.2M (4.26%) in Q1 2026 but up from $11.7M (1.28%) in Q2 2025.
- Allowance for credit losses (ACL) was $26.9M (3.03% of loans), vs $29.0M (3.24%) in Q1 2026 and $16.0M (1.76%) in Q2 2025.
- Net charge-offs were $1.9M in Q2 2026, vs $284K in Q1 2026 and $2.6M in Q2 2025.
- Total loans were $889.0M at June 30, 2026, down 0.7% from Q1 2026 and 2.3% YoY.
- Deposits totaled $1.17B, down 3.1% from Q1 2026 and 3.9% YoY.
- Quarterly cash dividend of $0.10 per share declared, payable August 7, 2026.
- Pre-tax, pre-provision (PTPP) net income was $3.0M, vs $2.8M in Q1 2026 and $4.2M in Q2 2025.
Financial Impact
Net income improved $2.7M YoY from near-zero to $2.7M; net interest income declined $278K YoY; ACL remains elevated at $26.9M (3.03% of loans).
Risk Factors
- Elevated nonperforming loans at 4.02% of total loans could lead to further charge-offs and provision expense.
- Net interest margin compression (3.08% vs 3.11% YoY) and declining loan balances (-2.3% YoY) pressure core revenue.
- Deposit runoff (-3.9% YoY) and increased reliance on borrowings ($133.4M, up $106M in Q2) raise funding cost risk.
- Efficiency ratio of 74.26% remains high, indicating limited operating leverage.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3336454 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 28, 2026 28d ago | Press Release | $17.20 | awaiting T+20 | — | $16.80 (−2.34%) |
Jul 30, 2026 12w ago | Press Release | $16.35 $16.11 | ▼ −1.47% | ▼ −4.46% | $16.80 (+2.75%) |
Jun 29, 2026 17w ago | 8-K | $15.88 $16.00 | ▲ +0.76% | ▲ +1.78% | $16.80 (+5.79%) |
Jun 4, 2026 20w ago | 8-K | $14.10 $16.15 | ▲ +14.54% | ▲ +15.91% | $16.80 (+19.15%) |
May 7, 2026 24w ago | 8-K | $13.99 $13.87 | ▼ −0.86% | ▼ −0.88% | $16.80 (+20.09%) |
Mar 30, 2026 30w ago | Press Release | $12.67 $13.60 | ▲ +7.37% | ▼ −2.05% | $16.80 (+32.64%) |
US Market Status
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