Pathfinder Bancorp Q3 profit rises on lower credit costs

Overview

• U.S. community bank's Q3 net income and EPS rose yr/yr but declined from prior quarter

• Net interest income grew sequentially but fell from a year earlier

• Deposits and loans declined as company continued to reduce higher-cost deposit balances

Outlook

• Company expects to begin funding new commercial real estate loans in Q4 2026

• Company sees regional economic momentum supported by large semiconductor facility and state investments

• Company anticipates industry-wide upward pressure on deposit costs but expects to maintain core deposit strength

Result Drivers

• COMMERCIAL CREDIT RESOLUTION - Co said results were affected by ongoing resolution of previously identified commercial credits, with net charge-offs covered by prior reserves

• HIGHER LOAN YIELDS - New commercial real estate loan originations at higher rates offset portfolio runoff, supporting net interest income

• CORE DEPOSIT FOCUS - Co emphasized intentional runoff of higher-cost deposits and maintained core deposit market share

Company press release:

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)