 Year-To-Date Net Income of 3.5 Million, Total Assets Reach 1.17 BillionFor Second Quarter 2020: Year-Over-Year Total Revenue Increased 15.7, Average Interest Earning Assets Increased 186.4 Million 20.1, and Noninterest Expense Reduced 11.9 OSWEGO, N.Y., Aug. 03, 2020 GLOBE NEWSWIRE -- Pathfinder Bancorp, Inc. Company NASDAQ: PBHC, the holding company for Pathfinder Bank Bank, announced second quarter 2020 net income attributable to Pathfinder Bancorp, Inc. of 1.8 million, compared to 607,000 for the second quarter of 2019. Earnings per basic and diluted share were both 0.31 compared to 0.11 for the prior year period. Second quarter 2020 revenue net interest income, before provision for loans losses, and total noninterest income of 9.2 million increased 1.2 million, or 15.7, compared to 7.9 million for the second quarter of 2019. Net income attributable to Pathfinder Bancorp, Inc. for the first six months of 2020 was 3.5 million, compared to 1.1 million for the same six month period of 2019. Diluted earnings per share for the first six months of 2020 was 0.60 compared to 0.23 per diluted share in the comparable period in 2019.2020 Second Quarter and Six Month Performance Highlights Second quarter 2020 net interest income improved to 7.6 million, up 934,000, or 13.9, from 6.7 million for the prior year quarter, and six month net interest income was 15.4 million, up 2.2 million, or 16.3, compared to 13.3 million for the prior year period The second quarter 2020 provision for loan losses was 1.1 million, an increase of 536,000 compared to 610,000 for the prior year second quarter, primarily a result of continued uncertainty in relation to potential credit losses due to the ongoing COVID-19 pandemic Total interest-earning assets at June 30, 2020 were 1.1 billion, an increase of 172.7 million, or 18.7, compared to 922.2 million at June 30, 2019 Total loans of 806.0 million at June 30, 2020 increased by 24.6 million, or 3.1, from 781.5 million at December 31, 2019, and increased 113.2 million, or 16.3, compared to 692.8 million at June 30, 2019 Total deposits of 970.6 million at June 30, 2020, increased by 88.7 million, or 10.1, from 881.9 million at December 31, 2019, and increased 162.0 million, or 20.0, compared to 808.6 million at June 30, 2019 Asset quality, as measured by net loan charge-offs, remained stable, with the annualized ratio of net loan charge-offs to average loans at 0.08 for the six months ended June 30, 2020, compared to 0.09 for the year ended December 31, 2019, and 0.07 for the six months ended June 30, 2019 The first six months of 2020, and particularly the second quarter, was unpredictable and highly unusual, relative to any other economic disruption in my twenty years as Pathfinder Banks leader, and in my thirty-seven years in the financial services industry, said Thomas W. Schneider, President and Chief Executive Officer.Properly disseminating our results of operations to shareholders is challenged by the activity in response to this unprecedented environment, however, we hope herein to begin that process, Schneider further stated.First, however, I would be remiss were we not to acknowledge the tremendous efforts of the Board of Directors and our banking professionals in adroitly adapting to the new environment by: Consistently respecting, and adhering to, the health and safety protocols established under local, state and national guidelines, Continuing to serve our customers and communities every day throughout this period with dedication and compassion, Putting forth an unprecedented effort to respond to the Paycheck Protection Program PPP component of the CARES Act, Continuously assessing the underlying liquidity, market and credit risks inherent in this unexpected and fluid environment, and with all that, Maintaining strong trends in improved earnings performance consistent with the Strategic Plan we set forth at our Shareholders Meeting in May 2019.We set forth below these outcomes, the uncertainties before us, and certain opportunities ahead: Revenue increased 20.1 over the first six months of the prior year, with balance sheet growth, fee income enhancements, and lower cost of funds, all as contributing factors, Noninterest expenses over the same period were reduced by 1.25 million, or 9.4, These positive operating gains during the six months ended June 30, 2020, compared to the same period in 2019, were partially offset by a 1.46 million, or 193.5 increase in the Provision for Loan Losses Provision, The increase in Provision reflects a conservative positioning of the Companys Allowance for Loan Losses Allowance. The Allowance incorporates both portfolio level credit stress analyses and loan level reviews, and was determined in consideration of the uncertain forward economic impact of COVID-19, rather than any observations of significant credit deterioration in the loan portfolio to date, We will continue to stress-test, model and closely monitor our credit portfolios, loan deferral requests, business customer cash-flow projections, and underlying loan collateral values, to ensure that our Allowance remains robust relative to any projected credit deterioration. Our provisioning in the remainder of 2020 will continue to reflect our conservative approach to credit stress analyses and modeling, and will also reflect increasingly specific knowledge of tangible credit deterioration as it occurs, The Allowance at June 30th was 1.31 of total loans, and was 1.44 non-GAAP measurement of total loans excluding the 100 guaranteed SBA PPP loans, Our participation in the PPP has resulted in the funding of 680 loans, totaling 75.1 million, to existing and new customers within our market, We expect the PPP loan forgiveness process to occur primarily throughout the second-half of 2020 and result, along with anticipated lower funding costs, in an enhancement to net interest margin, We have incorporated additional Non-GAAP table disclosures within our accompanying Financial Highlights pages to better inform investors of our Tangible Common Equity ratios when factoring in the full conversion of the Convertible Preferred shares issued by the Company in May 2019.We believe that the Companys heightened focus on improved execution in deposit gathering, noninterest income generation and operating expense control, consistent with our announcements at our Annual Shareholders Meeting in May 2019, has clearly begun to manifest itself in improved financial results. For the trailing 12-month period from July 1, 2019 to June 30, 2020, the Company reported earnings of 6.7 million, which was a 0.61 return on average assets over that period. While this level of earnings remains below our longer-term goals for profitability, it does represent a meaningful improvement in total earnings over the previous 12-month periods and also validates the importance of these identified strategic objectives.I am also pleased to be able to report that our branch locations returned to close-to-normal operations by the latter part of the quarter. While we continue to maintain strict adherence to physical distancing and hygiene protocols, at all of our facilities, we can say that the majority of our personal service options have been fully restored. The protocols in place are designed to protect the health of our customers and our critical front-line employees, and will remain in effect, for the duration of this Pandemic response. We continue to encourage our customers to utilize our various digital channels and drive-through facilities for transactions whenever possible. We are confident that these alternative service delivery capabilities will effectively handle most regular banking transactions in a manner that is both safe and continuously available.We are fortunate that, to this point in time, our Central New York market area has been less impacted by COVID-19 than the downstate regions of New York State. The downstate regions had a much higher incidence of infection and resultant disruption to personal routines and business activity, than we have experienced in Central New York. Our region was able to move through New York States strict reopening protocols more quickly than most other areas, which was beneficial to our individual and business customers alike. As a result, we are starting to see a return to more normal individual and business transaction activity. We remain poised to handle the service needs of our customers, and our communities, in the coming months, regardless of the duration of the COVID-19 pandemic. We continue to exceed the regulatory definition of a well-capitalized institution, and we took the necessary steps in both the first and second quarters of 2020 to significantly increase the Banks liquidity, and contingent liquidity capacities, so that we are positioned to appropriately respond to customer needs. This is no less that what our customers have always expected from our team.Income StatementSecond quarter 2020 net interest income increased 934,000, or 13.9, to 7.6 million compared to 6.7 million for the second quarter of 2019. The improvement was a result of a 406,000 increase in interest and dividend income, combined with a 528,000 decrease in total interest expense. The increase in interest and dividend income in the second quarter of 2020, was primarily a result of a 129.8 million increase in average loan balances compared to the second quarter of 2019. The reduction in the second quarter of 2020 interest expense was a result of a 77 basis point reduction in the average interest cost for time deposits compared to the second quarter of 2019.Net interest income for the first six months of 2020 increased 2. 