Pathfinder Bancorp, Inc. Announces Third Quarter Earnings

Oswego, NY – Pathfinder Bancorp, Inc. (“Company”), the mid-tier holding company of Pathfinder Bank, (NASDAQ: PBHC) announced reported net income of $874,000 and basic earnings per share of $0.12 and diluted earnings per share of $0.11 for the three-month period ended September 30, 2011, compared to net income of $668,000 and basic and diluted earnings per share of $0.22 for the same period in 2010.  This decrease in basic and diluted earnings per share was due to the accelerated accretion on preferred stock totaling $470,000 or $0.19 per basic and diluted share related to the Company’s participation in and exit from the U. S. Treasury’s Capital Purchase Program (“CPP”).  The increase in net income was partially due to an improvement of $248,000 in net interest income, a decrease of $118,000 in the provision for loan losses, and a $205,000 increase in noninterest income, offset by a $256,000 increase in noninterest expense, all between comparable third quarter periods.  The Company’s return on average assets and return on average equity for the third quarter of 2011 were 0.83% and 9.97%, respectively, as compared to 0.68% and 8.46% for the same prior year period.  For the nine months ended September 30, 2011, the Company reported net income of $1.9 million, or $0.43 per basic share and $0.42 per diluted share, compared to $1.8 million, or $0.59 per basic and diluted share, for the nine months ended September 30, 2010.

 “We are pleased with our overall operating results in this difficult economic climate,”  said Thomas W. Schneider, President and CEO.  “Growth in revenues continues to be challenged in the current interest rate and regulatory environment, however, we continue to achieve balanced growth in our loan and deposit portfolios.  The balanced organic growth in our loan and deposit portfolio has helped mitigate some of these challenges.  Results have been favorably impacted by gains on sales resulting from investment portfolio restructuring,” added Mr. Schneider.

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