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Pathfinder Bancorp, Inc. (PBHC)·Q4 2024 Earnings Summary
Executive Summary
- Q4 2024 EPS was revised to $0.63 from $0.69 after PBHC corrected accrued interest on brokered CDs; net income revised to $3.9M, while net interest margin for the quarter remained 3.15% and the full-year NIM was revised to 2.98% .
- Total revenue (non-GAAP) was $12.31M, with net interest income of $10.82M and noninterest income of $4.91M, aided by a $3.2M pre-tax gain on the sale of the insurance agency and lower provision vs Q3 .
- Asset quality stabilized sequentially: net charge-offs fell to an annualized 0.44% of average loans from 3.82% in Q3, though nonperforming loans rose to 2.40% of loans; ACL stood at 1.88% of loans .
- Deposit growth continued (+0.7% QoQ; +7.5% YoY), mix improved, and borrowings declined; efficiency ratio improved to 69.42% from 75.28% in Q3 .
- No formal EPS or revenue guidance; dividend maintained at $0.10 per share for Q4; an 8-K correction to EPS is a near-term narrative catalyst ahead of the 10-K .
What Went Well and What Went Wrong
What Went Well
- Net interest income rose 18% YoY and NIM expanded 41 bps YoY to 3.15%, driven by lower funding/borrowing costs and deposit mix improvements .
- PTPP net income increased to $3.76M (vs $3.37M in Q3), and efficiency ratio improved to 69.42%, reflecting tighter OpEx and revenue support from the insurance agency sale .
- Management highlighted contributions from the East Syracuse branch acquisition and talent investments in the Syracuse area as drivers of performance and future relationship growth .
What Went Wrong
- Nonperforming loans increased to $22.1M (2.40% of loans) vs $16.2M in Q3 (1.75%), requiring continued credit vigilance despite lower NCOs QoQ .
- Q4 net interest income and EPS required downward revisions via 8-K due to excluded accrued interest on brokered CDs; Q4 EPS revised to $0.63 (from $0.69), FY EPS to $0.54 (from $0.60) .
- Noninterest expense remained elevated YoY ($8.54M vs $7.04M), with residual transaction-related costs and higher salaries/benefits linked to growth initiatives .
Financial Results
Note: Q4 2024 net interest income and net income were later revised down in 8-K; corrected financial statements will be reflected in the forthcoming 10-K .
Segment/Balance Composition (Selected)
KPIs
Guidance Changes
Management emphasized ongoing focus on expense control and proactive credit risk management, but did not issue quantitative guidance ranges .
Earnings Call Themes & Trends
No Q4 2024 earnings call transcript was available in our document catalog; themes below reflect management’s press releases across quarters.
Management Commentary
- “Pathfinder’s core net interest income growth and net interest margin expansion were key contributors to fourth quarter earnings… product of disciplined asset and liability pricing, the Bank’s valuable core deposit franchise, and our relationship-based commercial and retail lending in Central New York.” — CEO James A. Dowd .
- “We continue to invest in talent to serve middle market businesses throughout the Syracuse area… important contributions to Pathfinder’s performance in the fourth quarter.” — CEO James A. Dowd .
- “We intend to maintain a sharp focus on managing operating expenses, along with our ongoing efforts to continuously enhance the Company’s proactive credit risk management approach.” — CEO James A. Dowd .
Q&A Highlights
- No Q4 2024 earnings call transcript found; no Q&A disclosures available in the document set [ListDocuments showed none].
Estimates Context
- Wall Street consensus estimates (S&P Global) for Q4 2024 EPS and revenue were unavailable at the time of query due to SPGI daily request limit; therefore, comparisons to consensus cannot be provided. We will anchor estimate comparisons on S&P Global in future updates when data becomes accessible [GetEstimates errors].
Key Takeaways for Investors
- EPS revision to $0.63 and FY EPS revision to $0.54 reflect a one-time correction to interest expense accounting; fundamentals (NIM 3.15%, deposit growth, reduced borrowings) support improved core earnings quality into 2025 .
- Sequential improvement in efficiency ratio (69.42% vs 75.28%) and higher PTPP demonstrate tighter expense control and revenue support, albeit with nonrecurring gain impact; monitor sustainability as noninterest income normalizes .
- Asset quality mixed: NCOs normalized vs Q3 stress, but NPLs rose; ACL ~1.88% of loans indicates conservative reserving—watch credit migration and solar loan pool dynamics discussed in Q3 .
- Deposit mix and core franchise continue to be a strategic edge; rising core deposits and lowered borrowings enhance NIM resilience if rate environment eases further .
- Portfolio repositioning (branch acquisition, insurance agency divestiture) is accretive to funding and capital allocation; nonrecurring gains aided Q4 but should be treated as one-offs in run-rate modeling .
- Near-term catalyst/overhang: forthcoming 10-K will reflect corrected financials; expect investors to scrutinize NIM and NII after correction alongside trajectory of asset quality metrics .
- Dividend continuity at $0.10 underscores capital discipline; payout policy appears balanced given credit and growth investments .
Additional Data Exhibits
Asset Quality and Capital Ratios (Q4 2024)
Liquidity Snapshot (Q4 2024)
- FHLB additional funding capacity: $113.8M; unused credit lines: $43.3M; core deposits 76.87% of total; deposits $1.204B; borrowings $88.1M .