We want your news! Send us: News release |Letter to the Editor | Share a picture | Newborn | Birthday | Engagement | Wedding | Other Milestone
Today







Pathfinder Bancorp, Inc. Announces First Quarter Earnings

Oswego, New York, April 23, 2014 – Pathfinder Bancorp, Inc. (“Company”), the mid-tier holding company of Pathfinder Bank (“Bank”), (NASDAQ: PBHC) announced its results for the three month period ended March 31, 2014.

Highlights for the three month period ended March 31, 2014

  • Net income for the first quarter of 2014 was $489,000 as compared to $505,000 for the comparable prior year period.  The decrease in net income was principally due to the $287,000 increase in personnel expenses driven by salaries and deferred compensation expenses.  Also included here are personnel expenses related to the Company’s acquisition of the Fitzgibbons Agency, LLC (the “Agency”) in the fourth quarter of 2013.  Partially offsetting this increase was a $150,000 year over year first quarter improvement in noninterest income due largely to insurance commissions from the Agency.
  • Basic and diluted earnings per share were $0.19 for the first quarter of 2014 as compared to basic and diluted earnings per share of $0.20 for the first quarter of 2013.  The decrease in basic and diluted earnings per share between these two periods was principally due to the decrease in net income.
  • Return on average assets was 0.38% for the three month period ended March 31, 2014 compared to 0.41% for the corresponding period in 2013.  The decrease was due to the decrease in net income and the increase in average assets, due principally to increased levels of commercial real estate loans, between the year over year first quarter periods.
  • Return on average equity was 4.52% for the three month period ended March 31, 2014, compared to 4.92% for the same period in 2013.  This decrease was due to a combination of lower net income and higher average equity between these two periods.
  • Total loans were $348.1 million at March 31, 2014, compared to total loans of $341.6 million at December 31, 2013, representing an increase of 1.9%.  Growth between these two time periods stemmed largely from a 4.3% increase in the commercial loan portfolio.  Residential loan outstandings between these two time periods was essentially unchanged.

“We continue to be pleased by the rate of organic growth in our loan and deposit portfolios,” stated Tom Schneider, President and CEO. “This growth is primarily driven by our continued expansion and relationship building in the greater Syracuse market, particularly in serving the small business community.  There is a strong momentum in our growth pattern, which will be further stimulated by the opening of our Downtown Syracuse office in the second quarter,” Schneider added.

“While this growth continues to drive new revenue, the rate of expense growth has prevented this from translating into improved earnings”, Schneider continued, “This planned rate of expense growth, designed to enhance our capabilities in talent, technology, risk management and compliance is deemed to be temporary,” Schneider continued, “and we remain confident in our ability to drive our business model towards enhanced value.”

Income Statement

For the three months ended March 31, 2014, net interest income increased 4.6% to $4.0 million from the same prior year period. The largest impact on the improvement in net interest income stemmed from the $201,000 year over year first quarter reduction of interest expense due principally to higher rate maturing certificates of deposit and Federal Home Loan Bank borrowings replaced with similar products but at lower current market rates.  Interest income decreased between the same two time periods driven largely by the reduction in average balances and yield of residential mortgages.  Average balances decreased as a result of the Company’s sale of residential loans in the second quarter of 2013.  Net interest margin on a tax equivalent basis for the first quarter of 2014 increased to 3.48% from 3.40% for the comparable prior year period.

Noninterest income for the first quarter of 2014 was $826,000 as compared to $676,000 for the comparable prior year period due primarily to commissions generated by the Agency.  Service charges on deposit accounts also increased $24,000 or 9.4% between the year over year first quarter periods.

Noninterest expense for the first quarter of 2014 was $3.9 million as compared to $3.5 million for the first quarter of 2013.  This increase was principally due to an increase in personnel expenses driven by wage increases, salaries expenses of the Agency, and deferred compensation costs.  Additionally occupancy expenses increased $42,000 between the year over year first quarter time periods due, in part, to the periodic costs related to the maintenance and upkeep of the three properties purchased from the Company’s Mutual Holding Company in the fourth quarter of 2013.

For the first quarter of 2014, the Company recorded $245,000 in provision for loan losses as compared to $324,000 for the first quarter of 2013.  The Company required a larger provision in the first quarter of 2013 due to the specific reserve required from the addition of a large commercial relationship categorized as impaired during the first quarter of 2013. 

Balance Sheet as of March 31, 2014

Total assets increased to $525.8 million at March 31, 2014 as compared to $503.8 million at December 31, 2013.  This increase of $22.1 million, or 4.4%, was primarily due to an increase in investment securities, combined with additional increases in loans, cash and equivalents, and bank owned life insurance.  Investment securities increased to $126.7 million at March 31, 2014 from $115.4 million at year end 2013 with the majority of the increase within the held-to-maturity portfolio.  Total loans increased $6.5 million, or 1.9%, centered largely in commercial real estate loans. The increase in bank owned life insurance is primarily the result of additional purchases of single premium life insurance policies on selected participants.  These purchases will assist in the funding of the company’s benefits under optional deferred compensation and supplemental executive retirement plans.

The increase in total assets was largely funded by increases in deposits within our market area, totaling $28.2 million and allowing the pay down of $7.0 million in short term borrowings at the Federal Home Loan Bank of New York.  Of the total increase in deposits, $24.8 million stemmed from increases within our existing municipal deposit relationships from seasonal tax collection activities.  The remaining increase was the result of the Company’s organic growth efforts within the retail and business market segments.

The Company’s shareholders’ equity increased $702,000 to $43.4 million at March 31, 2014.  This increase stemmed largely from a $413,000 increase in retained earnings, resulting from the first quarter net income less dividends declared, and a reduction of $223,000 in accumulated other comprehensive loss as the Company recorded an increase in market value of its available-for-sale investment portfolio.

Asset Quality

Several asset quality metrics worsened between December 31, 2013 and March 31, 2014.  The ratio of nonperforming loans to period end loans increased from 1.57% to 2.01% between these two time periods as two large commercial relationships totaling $2.6 million were identified as impaired, requiring an additional $339,000 in specific reserves.  As a result, the recorded investment in impaired loans at March 31, 2014 was $8.3 million as compared to $5.7 million at December 31, 2013.  The ratio of annualized net loan charge-offs to average loans increased from 0.15% for the full year 2013 to 0.33% for the first quarter of 2014.  Net loan charge-offs for the first quarter of 2014 were $287,000 as compared to $139,000 for the same prior year period.  Two thirds of the net loan charge-offs recorded in the first quarter of 2014 were in the commercial loans, lines, and real estate product classes, and were provided for within the provision for loan losses in prior periods.

Delinquency trends improved overall when comparing total past due loans as a percent of total loans at March 31, 2014 as compared to December 31, 2013.  Within the over 90 day category, however, the proportion of past due loans to total loans increased and is centered within the commercial product portfolio.  In contrast, within the residential loan and consumer loan product segments, all past due categories recorded an improvement in the proportion of past due loans to total loans between these same two time periods.  The ratio of the allowance for loan losses to period end loans decreased modestly from 1.48% at December 31, 2013 to 1.44% at March 31, 2014.  Management reviews trends in historical loss rates and environmental factors on a quarterly basis, in addition to assessing the specific allowance needs on impaired loans, and judges the current level of allowance for loan losses to be adequate to absorb the estimable and probable losses inherent in the loan portfolio.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. is the mid-tier holding company of Pathfinder Bank, a New York chartered savings bank headquartered in Oswego, New York.  The Bank has eight full service offices located in its market area consisting of Oswego County and northern Onondaga County and a branch office located in downtown Syracuse scheduled to open for business in the second quarter of 2014.  Through its subsidiary, Pathfinder Risk Management Company, Inc., the Bank owns a 51% interest in the Fitzgibbons Agency, LLC.  Financial highlights for Pathfinder Bancorp, Inc. are attached.  Presently, the only business conducted by Pathfinder Bancorp, Inc. is the 100% ownership of Pathfinder Bank and Pathfinder Statutory Trust II.

This release may contain certain forward-looking statements, which are based on management’s current expectations regarding economic, legislative, and regulatory issues that may impact the Company’s earnings in future periods.  Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services.

 

Amy Shaw Joins OVIA Fulton Office

Oswego, NY - Oswego Valley Insurance Agencies (OVIA) has announced that Amy Shaw has joined their Fulton office as a commercial lines manager, according to OVIA Treasurer Vern Drohan.

Amy Shaw is shown pictured recently with Oswego Valley Insurance Agencies (OVIA) Vice President Jim Poindexter. Shaw has joined the Fulton office of OVIA as a commercial lines manager.

Amy Shaw is shown pictured recently with Oswego Valley Insurance Agencies (OVIA) Vice President Jim Poindexter. Shaw has joined the Fulton office of OVIA as a commercial lines manager.

“Amy brings a strong working knowledge and talent to our commercial insurance division at OVIA, and she will help our company continue to provide strong support services to our customers and sustain the business growth we have seen,” said Drohan. “We are happy to have her join our OVIA team.”

Ms. Shaw is a Fulton-native, and graduate of G. Ray Bodley High School.  She will provide OVIA with 13 years of insurance experience working with both personal and commercial lines of insurance.

Ms. Shaw most recently worked at other independent agencies in Fulton and Syracuse, New York.

She can be reached at Oswego Valley Insurance Agencies (OVIA), 60 South First Street, Fulton, New York, at (315) 598-4278.

OVIA was founded upon the merger of three longstanding independent insurance agencies that have provided services to their communities since the late 1800’s. Dowd & Harrington, Inc., Streeter & Van Sanford, Inc., and the Hollister Agency merged to form Oswego Valley Insurance Agencies.  Today, OVIA operates five offices in Oswego and Onondaga Counties including Oswego, Fulton, Phoenix, Brewerton, Mexico, and Clayton.

For more information on OVIA visit www.insureit.com.

Adam C. Gagas Elected to Pathfinder Bank Board of Directors

Oswego, NY - Adam C. Gagas has been elected to the Board of Directors of Pathfinder Bank, according to Chris R. Burritt, Chairman of the Board.

The election was effective as of the March 17, 2014 Pathfinder Bank Board Meeting.
AGagas 3-2014
Mr. Gagas is founder and CEO of Breakwall Asset Management, LLC, a New York State registered investment advisor located in Oswego, New York.

“We are very pleased to announce the election of Adam to our Board of Directors,” said Burritt. “He provides our Board with more than 15 years of experience in global financial markets, as well as expertise in asset management and property development.”

“Adam and the Gagas Family have been instrumental in the growth of Pathfinder Bank for decades, and we value the commitment they have always maintained for our Bank’s mission and strategic direction.”

Adam’s father, Chris Gagas previously served as the Bank’s President and CEO, as well as Chairman of the Board for 18 years.

Prior to establishing Breakwall Asset Management, Gagas was an analyst on teams managing multi-billion dollar portfolios at Skandia Asset Management and Principal Global Investors in New York City. He was awarded an Alfa Fellowship and completed a yearlong professional placement as an institutional investment analyst at Alfa Capital in Moscow, Russia. He is also the owner/operator of Gagas Realty Corporation, a multi-property commercial real estate holding company. In addition, he is an adjunct instructor of Corporate Finance in the SUNY Oswego School of Business.

Mr. Gagas, who resides in Oswego, earned a BA from Hobart College with majors in Economics and Russian Studies, and an MBA with a concentration in Finance from the Leonard N. Stern School of Business at New York University. His extensive community involvement includes serving as Treasurer of Oswego Health, chair of that organization’s Audit and Investment committees, and as a member of the Executive committee. Mr. Gagas is also a board member of Oswego’s historic Riverside Cemetery, and has previously held leadership positions with the Oswego YMCA and Oswego Opera Theater.

Pathfinder Bank is a New York State chartered savings bank headquartered in Oswego, whose deposits are insured by the Federal Deposit Insurance Corporation. The Bank is a wholly owned subsidiary of Pathfinder Bancorp, Inc, (NASDAQ SmallCap Market; symbol: PBHC, listing: PathBcp). The Bank has eight full-service offices located in Oswego, Fulton, Mexico, Lacona, Central Square, and Cicero. The company reported total assets of $503.8 million and total shareholders’ equity of $42.7 million for the period ending December 31, 2013.

Pathfinder Bancorp, Inc. Declares Dividend

Oswego, NY - Thomas W. Schneider, President/CEO of Pathfinder Bancorp, Inc., the mid-tier holding company of Pathfinder Bank, (NASDAQ SmallCap Market; symbol: PBHC, listing: PathBcp) has announced that the Company has declared a cash dividend of $.03 per share on the Company’s common stock relating to the fiscal quarter ending March 31, 2014.  The dividend will be payable to all shareholders of record on April 15, 2014 and will be paid on May 5, 2014.

 About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. is the mid-tier holding company of Pathfinder Bank, a New York chartered savings bank headquartered in Oswego, New York.  The Bank has eight full service offices located in its market areas consisting of Oswego and Onondaga County.  Presently, the only business conducted by Pathfinder Bancorp, Inc. is the 100% ownership of Pathfinder Bank and Pathfinder Statutory Trust I.

This release may contain certain forward-looking statements, which are based on management’s current expectations regarding economic, legislative, and regulatory issues that may impact the Company’s earnings in future periods.  Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services.

 

FOR SALE: 45 West Seneca Street, Oswego— $119,000

45 West Seneca Street – Oswego, NY 13126

$119,000

Historic home with 4 bedrooms and 1.5 baths

45Seneca-OutsideFront-resized

Historic  home on Franklin Square with lots of charm.

This 4 Bedroom, 1.5 bath home, has an updated kitchen and bathrooms, first floor laundry room, home office, deck, and a landscaped and fenced in back yard.

Located just 3 blocks from Lake Ontario and Marina.

For more photographs of this beautiful home, go to our website- www.askfitz.com

Call Christine Tombolillo

Licensed NYS Real Estate Salesperson
342-5000 (office) – 315-591-7855 (cell)
or email christine@askfitz.com
Logo_RealEstatewithaddress

Phillips Named Senior Vice President, Chief Information Officer at Pathfinder Bank

OSWEGO, NY – Daniel Phillips has been named senior vice president and chief information officer at Pathfinder Bank, according to Thomas W. Schneider, president and CEO.

“We are pleased to announce Dan’s promotion to senior vice president,” Schneider said. “He has provided Pathfinder Bank with years of experience in financial information technology, and his leadership, ability to execute and strategic thinking have been driving forces to help advance our bank.”

Daniel Phillips

Daniel Phillips 

As a member of the bank’s senior management team, Phillips will oversee all areas of technology and information systems, as it relates to the bank’s strategic technology plan and overall strategic plan.

He will also continue to oversee the bank’s eCommerce and IT departments.

Phillips has been with Pathfinder Bank for 15 years and in the financial information technology industry for 25 years.

A 1987 graduate of LeMoyne College in Syracuse with a Bachelor of Science in Business Administration, Phillips resides in Oswego and has two children, Eric and Taite.

He is active with the alumni association board and advancement committee at LeMoyne College, and is a Pathfinder Bank Money Smart Educator for the  “Keeping Safe in an Electronic World” curriculum.

Pathfinder Bank is a New York State chartered savings bank headquartered in Oswego, whose deposits are insured by the Federal Deposit Insurance Corporation.

The bank has eight full-service offices located in Oswego, Fulton, Mexico, Lacona, Central Square, and Cicero.

The company reported total assets of $503.8 million and total shareholders’ equity of $42.7 million for the period ending December 31, 2013.

Step One Creative Peewees Capture Perinton Big Thaw Tournament Championship

Oswego, NY - The Step One Creative Peewee independent hockey team won the 2014 Perinton Big Thaw Hockey Tournament this past weekend in Fairport, New York. The Bucs defeated the host Perinton team in the championship game 3-1.

Step One Peewee Per#C4421F4

The Step One Creative Peewee independent hockey team is shown pictured this past weekend after winning the 2014 Perinton Big Thaw Tournament Championship in Fairport, New York.

It was the second championship of the season for the Bucs. They won the CNY Cup in Clinton in December.

In this past weekend’s tournament, Step One Creative lost 2-0 against Perinton, won 8-1 over Webster, and won 3-1 against Canandaigua to earn a trip to the championship game against Perinton.

Perinton 2 Step One Creative Peewees 0

In the opening game of the Big Thaw against Perinton, the Step One Bucs fell 2-0 against the hometown Blades.

Despite the loss, the Bucs outshot the Perinton team 26-15.

Goalie Tyler Wallace had 13 saves in the contest, and played strong in the matchup.

“Our team really outplayed Perinton in the opener, but our opponents took advantage of two opportunities in the second period, and we could not respond,” said Step One Creative Head Coach Dave Morgia.

Step One Creative Peewees 8 Webster 1


Step One Creative’s next game against the Webster Cyclones provided a different outcome, as the Bucs found their offense and won 8-1.

The Bucs jumped out to an early 1-0 lead when Step One’s Nick Burnett tipped in a shot from defender Monica Cahill.

In the second period, the Bucs jumped on the Webster team, when Derek Morgia scored a three goal hat trick in just 31 seconds to make it 4-1. Dylan Reitz and Bryon Bush added assists on the goals.

With all of the momentum on Step One’s side, the Bucs added four more goals in the final period to complete the 8-1 win. Drake Morgia, Jack Rice, Reitz and Spencer Stepien each added goals, and Rice and Gavin Neuland added the assists.

Strong pressure throughout the game by Christian Talamo and Ryan Mosher on offense also contributed to the win, as well as a relentless defense led by Brandon Graham, Isaiah Raby, Reitz, Bush and Cahill.

Wallace had 8 saves in net to secure the win.

“Our kids came out very strong and played great at both ends of the ice,” Assistant Coach Bill Cahill said.

Step One Creative Peewees 3 Canandaigua 1

In their third tourney matchup Step One Creative defeated Canandaigua 3-1. The contest was rematch from a game held the previous weekend at Oswego, in which the Bucs lost 3-2.

“They really wanted this win, and knew that if they played strong throughout the game they would redeem the previous weekend’s loss, and also earn a spot in the championship game,” Morgia said.

Tyler Eckert got the scoring started for Step One Creative in the first period, with a strong coast-to-coast effort through the Knight defenders.

Neuland added a nice backhand goal off a feed from Cahill and Stepien later in the second period, before Derek Morgia iced the game in the third to make it 3-1.

Wallace played strong in net once again with 16 saves to earn the victory.

Step One Creative 3 Perinton 1 – CHAMPIONSHIP GAME

In the championship game of the 2014 Perinton Big Thaw Tournament, Step One Creative once again faced off against Perinton, but it was the Bucs that took control of this game pressuring the Blades in their zone throughout the matchup to capture the 3-1 win.

After falling behind just seconds into the game 1-0, the Bucs took control of the game in the second and third periods with three goals coming from Tournament MVP Derek Morgia. The hat trick was Morgia’s second of the weekend.

“Our players were ready for this rematch and wanted this championship,” said Cahill. “This was a great team win and everyone contributed on both our offense and defense.”
“It was great to finish the season with this tournament win, and our coaches were very pleased to see the strong effort this weekend.”

Step One Creative finished their strong season with a 19-18-3 record.

The Step One Creative Peewee coaching staff included: Head Coach Dave Morgia, and Assistants Bill Cahill, Bob Graham, David Morgia, Jr., and Rob Raby.

For Sale- 121 Skyline Drive, Oswego – $169,900

121 Skyline Drive – Oswego, NY 13126

$169,900

Charming 3 bedroom, 2 bath ranch built in 2012

Front

Charming ranch style home built in 2012, elegant 3 bedroom, 2 bathroom on almost an acre of land.

Open floor plan with rustic maple hardwood floors, granite kitchen countertops, Ceramic tile floors and tiled shower walls, walk-in closets.

Large 2 car garage, storage shed, low E double hung windows, 96% on demand hot water heater, R-49 insulation in the ceiling, R-21 in the walls, Paved driveway, full basement, high efficiency forced air furnace.

A beautiful deck is just off the back of the home, gorgeous landscaping out front and sidewalk leading to home.

Low utility bills, Central air, Scriba taxes, a must see!

For more information and photographs go to our website www.askfitz.com

Call Brendan Benson

Licensed NYS Real Estate Sales Person

342-5000 (office) – 315-256-4066 (cell)

or email brendan@askfitz.com

Logo_RealEstatewithaddress

 

Pathfinder Bancorp, Inc. Announces Fourth Quarter and Full Year Earnings

Oswego, New York, February 6, 2014 – Pathfinder Bancorp, Inc. (“Company”), the mid-tier holding company of Pathfinder Bank (“Bank”), (NASDAQ: PBHC) announced its results for the three and twelve-month periods ended December 31, 2013.

Highlights for the three and twelve month periods ended December 31, 2013

  • Net income for the fourth quarter of 2013 was $550,000 as compared to $729,000 for the comparable prior year period.  The decrease in net income was principally due to the $277,000 increase in personnel expenses driven by wage increases and increased health insurance expenses under the Company’s self-insurance program.  Additionally, a $190,000 increase in other expenses was due, in part, to an additional $53,000 related to fraud losses from a December 2013 merchant security breach of a pool of debit cards.  Net income for the twelve-month period ended December 31, 2013 was $2.4 million as compared to $2.6 million in the same period in 2012.  This decrease in net income was due principally to an increase in personnel expenses, other expenses, and the provision for loan losses.
  • Basic and diluted earnings per share were $0.22 for the fourth quarter of 2013 as compared to basic and diluted earnings per share of $0.26 and $0.25, respectively, for the fourth quarter of 2012.  The decrease in basic and diluted earnings per share between these two periods was principally due to the decrease in net income.  Basic and diluted earnings per share for the twelve month period ended December 31, 2013 were $0.96 and $0.95, respectively, as compared to basic and diluted earnings per share of $0.88 and $0.87, respectively, for the comparable period in 2012.  The increase in basic and diluted earnings per share comparing year over year twelve month periods was due to the lack of need for SBLF preferred stock dividend payments during 2013 as positive updated lending information provided to the U.S. Treasury resulted in a credit against the dividend rate for the twelve month year to date period.
  • Return on average assets was 0.44% for the three-month period ended December 31, 2013 compared to 0.61% for the corresponding period in 2012.  The decrease was due to the decrease in net income and the increase in average assets, due principally to commercial real estate loans, between the year over year fourth quarter periods.  Return on average assets was 0.48% for the twelve-month period in 2013 compared to 0.61% for the twelve-month period in 2012.  This decrease for the twelve-month period was due to similar reasons.
  • Return on average equity was 5.33% for the three-month period ended December 31, 2013, compared to 7.04% for the same period in 2012.  This decrease was due to a combination of lower net income and nominally higher average equity between these two periods.  For the twelve-month period in 2013, return on average equity was 5.86%, compared to 6.68% for the same period in 2012.
  • Total loans were $341.6 million at December 31, 2013, compared to total loans of $333.7 million at December 31, 2012, representing a nominal aggregate increase of $7.9 million, or 2.4%.  Growth between these two time periods was impacted by the sale of residential mortgage loans in the second quarter of 2013 in the amount of $8.8 million.
  • The Company, through its subsidiary Pathfinder Bank, and its subsidiary, Pathfinder Risk Management Company, Inc., acquired a 51% controlling interest in the Fitzgibbons Agency, LLC. (“The Agency”), a local insurance agency serving the same geographic area as Pathfinder Bank in December 2013.

“Net income for 2013 was down approximately 9% from the prior year, primarily from higher health care and other personnel costs,” according to Thomas Schneider, President and CEO.  “Earnings per share were 9% higher due to the lower cost of preferred stock through the Small Business Lending Fund (1).  Basic earnings per share were $.96 for the year, while return on average common equity was 8.58%.  Organic loan and deposit growth was below the prior year’s pace,” Schneider continued, “however we expect to continue to grow our core balance sheet at a measured pace to enhance revenue growth.”

Income Statement

For the three months ended December 31, 2013, net interest income increased to $4.0 million from $3.8 million in the same prior year period as the increase in the average balance of earning assets, particularly commercial real estate loans and taxable investment securities, was partially offset by the decrease in net interest margin.  The largest impact on the improvement in net interest income stemmed from the increase in average balances of commercial real estate loans and the reduction of interest expense as higher rate maturing certificates of deposit and Federal Home Loan Bank borrowings were replaced with similar products but at lower current market rates.  Net interest margin on a tax equivalent basis for the fourth quarter of 2013 modestly decreased to 3.48% from 3.51% for the comparable prior year period, but when compared to the previous quarter, net interest margin improved by 3 basis points.

For the year 2013, net interest income was $15.6 million as compared to $14.9 million in the prior year period with the increase mainly from the interest income on higher average balances of commercial real estate loans and commercial loans and reduced rates paid on time deposits and Federal Home Loan Bank borrowings.  The increase in average balances of tax-exempt securities and reduced rates paid on money market deposit accounts also contributed modestly to the increase in net interest income between the year over year twelve month periods.

(1)        Established by the Small Business Jobs Act of 2010, the Small Business Lending Fund was designed to provide capital to qualified community banks in order to encourage small business lending activities.  The United States Treasury invested over $4.0 billion in 332 institutions through the Small Business Lending Fund.

Noninterest income for the fourth quarter of 2013 was $931,000 as compared to $891,000 for the comparable prior year period due to an increase in service charges on deposit accounts and commission income generated by The Agency.  Noninterest income for the twelve-month period ended December 31, 2013 was $3.4 million as compared to $3.1 million in the same 2012 period.  This increase between the two twelve month periods was due largely to the second quarter residential loan sale in 2013, which resulted in the recognition of a net gain of $395,000.

Noninterest expense for the fourth quarter of 2013 was $4.0 million as compared to $3.5 million for the fourth quarter of 2012. This increase was principally due to an increase in personnel expenses driven by wage increases and benefit costs, including costs under the Company’s self-insured health insurance program, combined with community service donations, charitable contributions, and the fraud loss previously mentioned.  Noninterest expense for the twelve month period ended December 31, 2013 was $14.8 million, an increase of $1.2 million from the prior year twelve month period and due principally to personnel expenses, which includes self insurance and ESOP compensation costs, and Other Expenses which include community service donations, a repossessed asset write-down, and fraud losses.

For the fourth quarter of 2013, the Company recorded $216,000 in provision for loan losses as compared to $175,000 for the fourth quarter of 2012.  This increase was due primarily to the Company’s quarterly review of the probable and estimable losses within the loan portfolio coupled with greater fourth quarter year over year net charge-offs within the commercial lines and commercial loans product segments.  For the twelve-month period ended December 31, 2013, the Company recorded a provision of $1.0 million as compared to $825,000 in provision for loan losses recorded in the same 2012 twelve-month period.  This increase stemmed from the need for a specific reserve established in the first quarter of 2013 associated with one large commercial relationship and net charge-offs of $492,000 for the full year 2013 as compared to $304,000 for the same prior year period.  The increase in net charge-offs for the twelve-month period ended 2013 principally resided in all product segments with the exception of commercial real estate loans. 

Balance Sheet as of December 31, 2013

Total assets increased to $503.8 million at December 31, 2013 as compared to $477.8 million at December 31, 2012.  This increase of $26.0 million, or 5.4%, was evenly divided among investment securities, gross loans, and cash and equivalents.  Investment securities increased to $115.4 million at December 31, 2013 from $108.3 million at year-end 2012.  Total loans increased $7.9 million, or 2.4%, as the $8.8 million decrease in loans from the previously mentioned second quarter of 2013 loan sale was offset primarily by increases in commercial real estate loans.

The increase in total assets was largely funded by increases in municipal, retail, and business deposits and an increase in short term borrowings through the Federal Home Loan Bank of New York. Total deposits at December 31, 2013 increased $18.3 million to $410.1 million as compared to $391.8 million at December 31, 2012.

Shareholders’ equity increased $2.0 million to $42.7 million at December 31, 2013 and December 31, 2012.  The $2.1 million increase in retained earnings between these two time periods resulted largely from the generation of earnings less dividends declared.

Asset Quality

The Company continued to report mixed results for asset quality.  Net loan charge-offs were 0.15% for 2013 as compared to 0.10% for the prior year.  Delinquency trends worsened modestly when comparing total past due loans as a percent of total loans at December 31, 2013 as compared to December 31, 2012, with the largest increase within the 60-89 day past due category and centered within the commercial segment. Other asset quality metrics showed signs of improvement. Nonperforming loans to period end loans declined modestly to 1.57% at December 31, 2013 as compared to 1.66% at the same prior year point.  Impaired loans decreased to $5.7 million at December 31, 2013 as compared to $6.7 million at December 31, 2012 due principally to a decrease in 1-4 family residential mortgages and commercial and industrial loans, partially offset by an increased in impaired commercial real estate loans. The provision for loan losses recorded in the fourth quarter of 2013 allowed the ratio of allowance for loan losses to period end loans to increase to 1.48% at December 31, 2013 as compared to 1.35% at December 31, 2012 and 1.31% at December 31, 2011.  Management reviews trends in historical loss rates and environmental factors on a quarterly basis, in addition to assessing the specific allowance needs on impaired loans, and judges the current level of allowance for loan losses to be adequate to absorb the estimable and probable losses inherent in the loan portfolio.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. is the mid-tier holding company of Pathfinder Bank, a New York chartered savings bank headquartered in Oswego, New York.  The Bank has eight full service offices located in its market area consisting of Oswego County and northern Onondaga County and a branch office located in downtown Syracuse scheduled to open for business in the second quarter of 2014.  Financial highlights for Pathfinder Bancorp, Inc. are attached.  Presently, the only business conducted by Pathfinder Bancorp, Inc. is the 100% ownership of Pathfinder Bank and Pathfinder Statutory Trust II.

This release may contain certain forward-looking statements, which are based on management’s current expectations regarding economic, legislative, and regulatory issues that may impact the Company’s earnings in future periods.  Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services.

Pathfinder Bank’s Craig Fitzpatrick Honored As Top Advisor

OSWEGO, NY - Craig Fitzpatrick will be honored as a 2013 top advisor of Cadaret, Grant & Co., Inc., a broker/dealer based in Syracuse, New York. Of more than 900 advisors associated with Cadaret, Grant, Fitzpatrick was among the 20% who qualified for the prestigious award.

FitzpatrickFitzpatrick will attend the company’s annual top advisors conference, this year located in Southampton, Bermuda, May 1-4, where he will be awarded for his outstanding achievement. The conference includes business sessions on topics pertaining to the current economic outlook and new legislation. Top advisors will hear from industry experts on global investing, generating income for clients, and tips for navigating the markets.

Fitzpatrick has been serving clients at Pathfinder Investment Services, a division of Pathfinder Bank, since 2010. He will work with new and existing client portfolios to implement information received from the conference. “I am grateful to have had a successful year, but I am most honored to work with people and clients who make my job so rewarding,” Fitzpatrick said.

“These are advisors who show ongoing commitment to doing what’s best for clients, dedication to integrity, and emphasis on ethical business, “ Cadaret, Grant President and CEO Arthur F. Grant said. “It is a hard-earned award that is reserved for advisors who are leaders. It is our pleasure to recognize their success.”

Cadaret, Grant, a privately owned broker/dealer headquartered in Syracuse, New York, supports nearly 900 registered representatives in over 400 branch offices nationwide. Founded in 1985, the company provides superior service, advanced technology, effective marketing tools, and a supportive business environment for financial advisors. For more information about Cadaret, Grant, visit www.cadaretgrant.com or contact Megan Grant at 315.471.2191.

Pathfinder Bank is a New York State chartered savings bank headquartered in Oswego, whose deposits are insured by the Federal Deposit Insurance Corporation.  The Bank has eight full-service offices located in Oswego, Fulton, Mexico, Lacona, Central Square, and Cicero. The company reported total assets of $492.5 million and total shareholders’ equity of $40.7 million for the period ending September 30, 2013.

Search Our Archives:

Oswego Cinema 7 Fri 04/25/14 – Fri 04/25/14

A HAUNTED HOUSE 2 (DIGITAL) R 5:15p 7:20p 9:25p BEARS G 4:50p 6:50p 8:50p BRICK MANSIONS (DIGITAL) PG13 5:30p 7:40p 9:50p CAPTAIN AMERICA 3D: PG13 THE WINTER SOLDIER (DIGITAL) 10:00p CAPTAIN AMERICA: THE PG13 WINTER SOLDIER (DIGITAL) 4:00p 7:00p RIO … Continue reading


Young Artists Needed for Oswego Mural Project

Now in its sixth year, the mural organizing committee is seeking interested youth artists who would like to create a piece of public art in the city of Oswego. The Youth Bureau will hold an informational meeting with young artists and their parents at 6 p.m. May 6 in the Common Council Chambers of Oswego City Hall.

Continue reading


Local Students Honored for Academic Achievement at The College of Saint Rose

The College of Saint Rose in Albany, NY, announced that 104 students were honored for outstanding academic achievement at the Honors Convocation held recently on the Saint Rose campus.

Continue reading


Macaluso Graduates Basic Training

Air Force Airman Eva M. Macaluso graduated from basic military training at Joint Base San Antonio-Lackland, San Antonio, Texas. Macaluso is a 2009 graduate of Oswego High School.

Continue reading


Another Year, Another World Premiere Musical Presented by Fitzhugh Park Students

Each year music teacher Garrett Heater writes a new musical especially for his students.
The premiere this year was “Backjack Dice and the Diamond Heist.” A Las Vegas comedian Blackjack Dice becomes an undercover spy to stem the theft of a valuable diamond by the villain Helmut Schweihund and his dastardly “Ze Piggies.”

Continue reading



v3_2012_64