FEDERAL
|
16-1540137
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification Number)
|
PART
I - FINANCIAL INFORMATION
|
PAGE
NO.
|
||
Item
1.
|
Consolidated
Financial Statements (Unaudited)
|
||
3
|
|||
4
|
|||
6
|
|||
7
|
|||
8
|
|||
Item
2.
|
14
|
||
Item
3.
|
24
|
||
Item
4T.
|
24
|
||
|
25
|
||
Item
1.
|
Legal
proceedings
|
||
Item
1A.
|
Risk
Factors
|
||
Item
2.
|
Unregistered
sales of equity securities and use of proceeds
|
||
Item
3.
|
Defaults
upon senior securities
|
||
Item
4.
|
Submission
of matters to a vote of security holders
|
||
Item
5.
|
Other
information
|
||
Item
6.
|
Exhibits
|
||
27
|
|||
28
|
PATHFINDER BANCORP,
INC.
|
||||||||
CONSOLIDATED
STATEMENTS OF CONDITION
|
||||||||
(Unaudited)
|
||||||||
June
30,
|
December
31,
|
|||||||
(In
thousands, except share data)
|
2008
|
2007
|
||||||
ASSETS:
|
||||||||
Cash
and due from banks
|
$ | 10,372 | $ | 9,908 | ||||
Interest
earning deposits
|
319 | 305 | ||||||
Total
cash and cash equivalents
|
10,691 | 10,213 | ||||||
Investment
securities, at fair value
|
79,113 | 65,010 | ||||||
Federal
Home Loan Bank stock, at cost
|
2,387 | 2,128 | ||||||
Loans
|
232,951 | 222,749 | ||||||
Less:
Allowance for loan losses
|
1,987 | 1,703 | ||||||
Loans
receivable, net
|
230,964 | 221,046 | ||||||
Premises
and equipment, net
|
7,543 | 7,807 | ||||||
Accrued
interest receivable
|
1,722 | 1,673 | ||||||
Foreclosed
real estate
|
655 | 865 | ||||||
Goodwill
|
3,840 | 3,840 | ||||||
Bank
owned life insurance
|
6,560 | 6,437 | ||||||
Other
assets
|
2,829 | 1,672 | ||||||
Total
assets
|
$ | 346,304 | $ | 320,691 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY:
|
||||||||
Deposits:
|
||||||||
Interest-bearing
|
$ | 238,787 | $ | 228,319 | ||||
Noninterest-bearing
|
28,042 | 22,766 | ||||||
Total
deposits
|
266,829 | 251,085 | ||||||
Short-term
borrowings
|
7,970 | 18,400 | ||||||
Long-term
borrowings
|
40,400 | 20,010 | ||||||
Junior
subordinated debentures
|
5,155 | 5,155 | ||||||
Other
liabilities
|
4,803 | 4,337 | ||||||
Total
liabilities
|
325,157 | 298,987 | ||||||
Shareholders'
equity:
|
||||||||
Preferred
stock, authorized shares 1,000,000; no shares issued or
outstanding
|
||||||||
Common
stock, par value $0.01; authorized 10,000,000 shares;
|
||||||||
2,971,019
and 2,483,732 shares issued and outstanding,
respectively
|
30 | 30 | ||||||
Additional
paid in capital
|
7,900 | 7,900 | ||||||
Retained
earnings
|
21,970 | 21,734 | ||||||
Accumulated
other comprehensive loss
|
(2,251 | ) | (1,458 | ) | ||||
Treasury
stock, at cost; 487,287 shares
|
(6,502 | ) | (6,502 | ) | ||||
Total
shareholders' equity
|
21,147 | 21,704 | ||||||
Total
liabilities and shareholders' equity
|
$ | 346,304 | $ | 320,691 |
PATHFINDER BANCORP, INC.
|
||||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||
(Unaudited)
|
||||||||
For
the three
|
For
the three
|
|||||||
months
ended
|
months
ended
|
|||||||
(In
thousands, except per share data)
|
June
30, 2008
|
June
30, 2007
|
||||||
|
||||||||
Interest
and dividend income:
|
||||||||
Loans,
including fees
|
$ | 3,550 | $ | 3,434 | ||||
Debt
securities:
|
||||||||
Taxable
|
775 | 676 | ||||||
Tax-exempt
|
59 | 42 | ||||||
Dividends
|
112 | 85 | ||||||
Federal
funds sold and interest earning deposits
|
10 | 100 | ||||||
Total
interest income
|
4,506 | 4,337 | ||||||
Interest
expense:
|
||||||||
Interest
on deposits
|
1,413 | 1,751 | ||||||
Interest
on short-term borrowings
|
92 | 12 | ||||||
Interest
on long-term borrowings
|
364 | 451 | ||||||
Total
interest expense
|
1,869 | 2,214 | ||||||
Net
interest income
|
2,637 | 2,123 | ||||||
Provision for loan
losses
|
135 | 75 | ||||||
Net
interest income after provision for loan losses
|
2,502 | 2,048 | ||||||
Noninterest
income:
|
||||||||
Service
charges on deposit accounts
|
355 | 366 | ||||||
Earnings
on bank owned life insurance
|
56 | 57 | ||||||
Loan
servicing fees
|
61 | 81 | ||||||
Net
losses on sales and impairment of investment securities
|
(342 | ) | - | |||||
Net
gains on sales of loans and foreclosed real estate
|
- | 7 | ||||||
Debit
card interchange fees
|
70 | 68 | ||||||
Other
charges, commissions & fees
|
111 | 103 | ||||||
Total
noninterest income
|
311 | 682 | ||||||
Noninterest
expense:
|
||||||||
Salaries
and employee benefits
|
1,242 | 1,274 | ||||||
Building
occupancy
|
332 | 312 | ||||||
Data
processing expenses
|
330 | 352 | ||||||
Professional
and other services
|
203 | 226 | ||||||
Amortization
of intangible asset
|
- | 55 | ||||||
Other
expenses
|
314 | 308 | ||||||
Total
noninterest expenses
|
2,421 | 2,527 | ||||||
Income
before income taxes
|
392 | 203 | ||||||
Provision
for income taxes
|
92 | 37 | ||||||
Net
income
|
$ | 300 | $ | 166 | ||||
Net
income per share - basic
|
$ | 0.12 | $ | 0.07 | ||||
Net
income per share - diluted
|
$ | 0.12 | $ | 0.07 | ||||
Dividends
per share
|
$ | 0.1025 | $ | 0.1025 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
PATHFINDER BANCORP,
INC.
|
||||||||
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||
(unaudited)
|
||||||||
For
the six
|
For
the six
|
|||||||
months
ended
|
months
ended
|
|||||||
(In
thousands, except per share data)
|
June
30, 2008
|
June
30, 2007
|
||||||
|
||||||||
Interest
and dividend income:
|
||||||||
Loans,
including fees
|
$ | 7,188 | $ | 6,847 | ||||
Debt
securities:
|
||||||||
Taxable
|
1,455 | 1,314 | ||||||
Tax-exempt
|
82 | 86 | ||||||
Dividends
|
227 | 166 | ||||||
Federal
funds sold and interest earning deposits
|
54 | 193 | ||||||
Total
interest income
|
9,006 | 8,606 | ||||||
Interest
expense:
|
||||||||
Interest
on deposits
|
3,012 | 3,481 | ||||||
Interest
on short-term borrowings
|
226 | 12 | ||||||
Interest
on long-term borrowings
|
719 | 864 | ||||||
Total
interest expense
|
3,957 | 4,357 | ||||||
Net
interest income
|
5,049 | 4,249 | ||||||
Provision
for loan losses
|
280 | 125 | ||||||
Net
interest income after provision for loan losses
|
4,769 | 4,124 | ||||||
Noninterest
income:
|
||||||||
Service
charges on deposit accounts
|
734 | 694 | ||||||
Earnings
on bank owned life insurance
|
123 | 113 | ||||||
Loan
servicing fees
|
151 | 145 | ||||||
Net
losses on sales and impairment of investment securities
|
(342 | ) | (3 | ) | ||||
Net
gains on sales of loans and foreclosed real estate
|
6 | - | ||||||
Debit
card interchange fees
|
136 | 116 | ||||||
Other
charges, commissions & fees
|
207 | 203 | ||||||
Total
noninterest income
|
1,015 | 1,268 | ||||||
Noninterest
expense:
|
||||||||
Salaries
and employee benefits
|
2,579 | 2,501 | ||||||
Building
occupancy
|
678 | 630 | ||||||
Data
processing expenses
|
639 | 694 | ||||||
Professional
and other services
|
422 | 463 | ||||||
Amortization
of intangible asset
|
- | 111 | ||||||
Other
expenses
|
628 | 586 | ||||||
Total
noninterest expenses
|
4,946 | 4,985 | ||||||
Income
before income taxes
|
838 | 407 | ||||||
Provision
for income taxes
|
206 | 76 | ||||||
Net
income
|
$ | 632 | $ | 331 | ||||
Net
income per share - basic
|
$ | 0.25 | $ | 0.13 | ||||
Net
income per share - diluted
|
$ | 0.25 | $ | 0.13 | ||||
Dividends
per share
|
$ | 0.205 | $ | 0.205 | ||||
The
accompanying notes are an integral part of the unaudited consolidated
financial statements.
|
PATHFINDER BANCORP, INC.
|
||||||||||||||||||||||||||||
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||||||
SIX
MONTHS ENDED JUNE 30, 2008 AND JUNE 30, 2007
|
||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Common | Common |
Additional
|
Other
Com-
|
|||||||||||||||||||||||||
Stock
|
Stock |
Paid
in
|
Retained
|
prehensive
|
Treasury
|
|||||||||||||||||||||||
(In
thousands, except share data)
|
Shares
|
Amount
|
Capital
|
Earnings
|
Loss
|
Stock
|
Total
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance,
January 1, 2008
|
2,971,019 | $ | 30 | $ | 7,900 | $ | 21,734 | $ | (1,458 | ) | $ | (6,502 | ) | $ | 21,704 | |||||||||||||
Cumulative
effect of a change in accounting
|
||||||||||||||||||||||||||||
principle
upon the change in defined
|
||||||||||||||||||||||||||||
employee
benefit plans' measurement date
|
||||||||||||||||||||||||||||
under
SFAS 158 (net of $8 tax expense)
|
(48 | ) | 13 | (35 | ) | |||||||||||||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||||||
Net
income
|
632 | 632 | ||||||||||||||||||||||||||
Other
comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||
Unrealized
holding losses on securities
|
||||||||||||||||||||||||||||
available
for sale (net of $654 tax benefit)
|
(831 | ) | (831 | ) | ||||||||||||||||||||||||
Retirement
plan gains and losses and past
|
||||||||||||||||||||||||||||
service
liability not recognized in plan
|
||||||||||||||||||||||||||||
expenses
(net of $17 tax expense)
|
25 | 25 | ||||||||||||||||||||||||||
Total
Comprehensive loss
|
(174 | ) | ||||||||||||||||||||||||||
Dividends
declared ($0.2050 per share)
|
(348 | ) | (348 | ) | ||||||||||||||||||||||||
Balance, June
30, 2008
|
2,971,019 | $ | 30 | $ | 7,900 | $ | 21,970 | $ | (2,251 | ) | $ | (6,502 | ) | $ | 21,147 | |||||||||||||
Balance,
January 1, 2007
|
2,953,619 | $ | 29 | $ | 7,786 | $ | 21,307 | $ | (1,770 | ) | $ | (6,502 | ) | $ | 20,850 | |||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
331 | 331 | ||||||||||||||||||||||||||
Other
comprehensive loss, net of tax:
|
||||||||||||||||||||||||||||
Unrealized
holding losses on securities
|
||||||||||||||||||||||||||||
available
for sale (net of $122 tax benefit)
|
(184 | ) | (184 | ) | ||||||||||||||||||||||||
Total
Comprehensive income
|
147 | |||||||||||||||||||||||||||
Stock
options exercised
|
17,200 | 1 | 113 | 114 | ||||||||||||||||||||||||
Dividends
declared ($0.2050 per share)
|
(350 | ) | (350 | ) | ||||||||||||||||||||||||
Balance,
June 30, 2007
|
2,970,819 | $ | 30 | $ | 7,899 | $ | 21,288 | $ | (1,954 | ) | $ | (6,502 | ) | $ | 20,761 |
PATHFINDER BANCORP, INC.
|
||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
For
the six
|
For
the six
|
|||||||
months
ended
|
months
ended
|
|||||||
|
June
30,
|
June
30,
|
||||||
(In
thousands)
|
2008
|
2007
|
||||||
OPERATING
ACTIVITIES
|
||||||||
Net
income
|
$ | 632 | $ | 331 | ||||
Adjustments
to reconcile net income to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Provision
for loan losses
|
280 | 125 | ||||||
Proceeds
from sales of loans
|
- | 3,000 | ||||||
Originations
of loans held-for-sale
|
- | (3,006 | ) | |||||
Realized
losses (gains) on sales of:
|
||||||||
Foreclosed
real estate
|
(6 | ) | (6 | ) | ||||
Loans
|
- | 6 | ||||||
Available-for-sale
investment securities
|
- | 3 | ||||||
Impairment
write-down on available-for-sale securities
|
342 | - | ||||||
Depreciation
|
358 | 380 | ||||||
Amortization
of intangible asset
|
- | 111 | ||||||
Amortization
of deferred financing costs
|
- | 15 | ||||||
Amortization
of mortgage servicing rights
|
17 | 26 | ||||||
Earnings
on bank owned life insurance
|
(123 | ) | (113 | ) | ||||
Net
amortization of premiums and discounts on investment
securities
|
62 | 49 | ||||||
Increase
in accrued interest receivable
|
(49 | ) | (65 | ) | ||||
Net
change in other assets and liabilities
|
(152 | ) | (241 | ) | ||||
Net
cash provided by operating activities
|
1,361 | 615 | ||||||
INVESTING
ACTIVITIES
|
||||||||
Purchase
of investment securities available-for-sale
|
(29,683 | ) | (13,270 | ) | ||||
Net
(purchases) redemption of Federal Home Loan Bank stock
|
(259 | ) | 261 | |||||
Proceeds
from maturities and principal reductions of
|
||||||||
investment
securities available-for-sale
|
12,808 | 5,927 | ||||||
Proceeds
from sale of:
|
||||||||
Available-for-sale
investment securities
|
984 | - | ||||||
Real
estate acquired through foreclosure
|
315 | 132 | ||||||
Premises
and equipment
|
- | 33 | ||||||
Net
increase in loans
|
(10,310 | ) | (2,686 | ) | ||||
Purchase
of premises and equipment
|
(94 | ) | (401 | ) | ||||
Net
cash used in investing activities
|
(26,239 | ) | (10,004 | ) | ||||
FINANCING
ACTIVITIES
|
||||||||
Net
increase in demand deposits, NOW accounts,
|
||||||||
savings
accounts, money market deposit accounts, MMDA
|
||||||||
accounts
and escrow deposits
|
8,920 | 4,322 | ||||||
Net
increase in time deposits
|
6,824 | 4,918 | ||||||
Net
(repayments on) proceeds from short-term borrowings
|
(10,430 | ) | 3,400 | |||||
Payments
on long-term borrowings
|
(3,610 | ) | (10,350 | ) | ||||
Proceeds
from long-term borrowings
|
24,000 | 1,000 | ||||||
Proceeds
from trust preferred obligation
|
- | 5,155 | ||||||
Payments
on trust preferred obligation
|
- | (5,155 | ) | |||||
Proceeds
from exercise of stock options
|
- | 114 | ||||||
Cash
dividends paid
|
(348 | ) | (350 | ) | ||||
Net
cash provided by financing activities
|
25,356 | 3,054 | ||||||
Increase
(decrease) in cash and cash equivalents
|
478 | (6,335 | ) | |||||
Cash
and cash equivalents at beginning of period
|
10,213 | 13,723 | ||||||
Cash
and cash equivalents at end of period
|
$ | 10,691 | $ | 7,388 | ||||
NON-CASH
INVESTING ACTIVITY
|
||||||||
Transfer
of loans to foreclosed real estate
|
112 | 109 |
For
the three months
|
For
the six months
|
|||||||||||||||
ended
June 30,
|
ended
June 30,
|
|||||||||||||||
(In
thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Service
cost
|
$ | 54 | $ | 49 | $ | 107 | $ | 98 | ||||||||
Interest
cost
|
79 | 68 | 158 | 136 | ||||||||||||
Expected
return on plan assets
|
(112 | ) | (98 | ) | (223 | ) | (196 | ) | ||||||||
Amortization
of net losses
|
16 | 22 | 33 | 44 | ||||||||||||
Net
periodic benefit cost
|
$ | 37 | $ | 41 | $ | 75 | $ | 82 |
For
the three months
|
For
the six months
|
|||||||||||||||
ended
June 30,
|
ended
June 30,
|
|||||||||||||||
(In
thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Service
cost
|
$ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||
Interest
cost
|
5 | 5 | 10 | 10 | ||||||||||||
Amortization
of transition obligation
|
5 | 5 | 10 | 10 | ||||||||||||
Net
periodic benefit cost
|
$ | 11 | $ | 11 | $ | 21 | $ | 21 |
For
the three months
|
For
the six months
|
|||||||||||||||
ended
June 30,
|
ended
June 30,
|
|||||||||||||||
(In
thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Unrealized
holding losses on securities available for sale:
|
||||||||||||||||
Unrealized
holding losses arising during the year
|
$ | (2,102 | ) | $ | (406 | ) | $ | (1,726 | ) | $ | (309 | ) | ||||
Reclassification
adjustment for losses included in net income
|
342 | - | 342 | 3 | ||||||||||||
Net
unrealized losses on securities available for sale
|
(1,760 | ) | (406 | ) | (1,384 | ) | (306 | ) | ||||||||
Defined
benefit pension and post retirement plans:
|
||||||||||||||||
Reclassification
adjustment for amortization of benefit plans'
|
||||||||||||||||
net
loss and prior service liability recognized in net
|
||||||||||||||||
periodic
expense
|
42 | - | 42 | - | ||||||||||||
Net
change in defined benefit plan assets
|
42 | - | 42 | - | ||||||||||||
Other
comprehensive loss before tax
|
(1,718 | ) | (406 | ) | (1,342 | ) | (306 | ) | ||||||||
Tax
effect
|
686 | 162 | 536 | 122 | ||||||||||||
Other
comprehensive loss
|
$ | (1,032 | ) | $ | (244 | ) | $ | (806 | ) | $ | (184 | ) |
June
30,
|
December
31,
|
|||||||
(In
thousands)
|
2008
|
2007
|
||||||
Unrealized
losses on securities available for sale (net of tax
|
||||||||
benefit
2008 - $995; 2007 - $441)
|
$ | (1,492 | ) | $ | (662 | ) | ||
Net
pension losses and past service liability (net of tax
|
||||||||
benefit
2008 - $475; 2007 - $495)
|
(713 | ) | (742 | ) | ||||
Net
post-retirement losses and past service liability (net of
tax
|
||||||||
benefit
2008 - $31; 2007 - $36)
|
(46 | ) | (54 | ) | ||||
$ | (2,251 | ) | $ | (1,458 | ) |
·
|
Level
1 – Quoted prices (unadjusted) for identical assets
or liabilities in active markets, that the entity has the ability to
access as of the measurement date.
|
·
|
Level 2 –
Quoted prices for similar assets and liabilities in active markets; quoted
prices for identical or similar assets or liabilities in markets that are
not active; and model-derived valuations in which all significant inputs
and significant value drivers are observable in active
markets.
|
·
|
Level
3 – Model derived valuations in which one or more significant inputs or
significant value drivers are
unobservable.
|
Fair Value Measurements,
Using
|
||||
Quoted
Prices
|
Significant
|
Significant
|
||
In
Active Markets
|
Other
Observable
|
Unobservable
|
||
For
Identical Assets
|
Inputs
|
Inputs
|
||
(In
thousands)
|
June
30, 2008
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
Assets:
|
||||
Investment
securities available for sale:
|
$79,113
|
$ -
|
$79,113
|
$ -
|
Fair Value Measurements,
Using
|
||||
Quoted
Prices
|
Significant
|
Significant
|
||
In Active Markets
|
Other Observable
|
Unobservable
|
||
For Identical Assets
|
Inputs
|
Inputs
|
||
(In
thousands)
|
June
30, 2008
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Assets:
|
||||
Impaired
loans:
|
$1,983
|
$ -
|
$ -
|
$1,983
|
Three
Months Ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2008
|
2007
|
Change
|
|||||||||||||
Service
charges on deposit accounts
|
$ | 355 | $ | 366 | $ | (11 | ) | -3.0 | % | |||||||
Earnings
on bank owned life insurance
|
56 | 57 | (1 | ) | -1.8 | % | ||||||||||
Loan
servicing fees
|
61 | 81 | (20 | ) | -24.7 | % | ||||||||||
Debit
card interchange fees
|
70 | 68 | 2 | 2.9 | % | |||||||||||
Other
charges, commissions and fees
|
111 | 103 | 8 | 7.8 | % | |||||||||||
Core
noninterest income
|
653 | 675 | (22 | ) | -3.3 | % | ||||||||||
Net
losses on sales and impairment of investment securities
|
(342 | ) | - | (342 | ) | -100.0 | % | |||||||||
Net
gains on sales of loans and foreclosed real estate
|
- | 7 | (7 | ) | -100.0 | % | ||||||||||
Total
noninterest income
|
$ | 311 | $ | 682 | $ | (371 | ) | -54.4 | % | |||||||
|
||||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2008
|
2007
|
Change
|
|||||||||||||
Service
charges on deposit accounts
|
$ | 734 | $ | 694 | $ | 40 | 5.8 | % | ||||||||
Earnings
on bank owned life insurance
|
123 | 113 | 10 | 8.8 | % | |||||||||||
Loan
servicing fees
|
151 | 145 | 6 | 4.1 | % | |||||||||||
Debit
card interchange fees
|
136 | 116 | 20 | 17.2 | % | |||||||||||
Other
charges, commissions and fees
|
207 | 203 | 4 | 2.0 | % | |||||||||||
Core
noninterest income
|
1,351 | 1,271 | 80 | 6.3 | % | |||||||||||
Net
losses on sales and impairment of investment securities
|
(342 | ) | (3 | ) | (339 | ) | 11300.0 | % | ||||||||
Net
gains on sales of loans and foreclosed real estate
|
6 | - | 6 | 100.0 | % | |||||||||||
Total
noninterest income
|
$ | 1,015 | $ | 1,268 | $ | (253 | ) | -20.0 | % |
Three
Months Ended June 30,
|
||||||||||||||||
(Dollars
in thousands)
|
2008
|
2007
|
Change
|
|||||||||||||
Salaries
and employee benefits
|
$ | 1,242 | $ | 1,274 | $ | (32 | ) | -2.5 | % | |||||||
Building
occupancy
|
332 | 312 | 20 | 6.4 | % | |||||||||||
Data
processing
|
330 | 352 | (22 | ) | -6.3 | % | ||||||||||
Professional
and other services
|
203 | 226 | (23 | ) | -10.2 | % | ||||||||||
Amortization
of intangible assets
|
- | 55 | (55 | ) | -100.0 | % | ||||||||||
Other
operating
|
314 | 308 | 6 | 1.9 | % | |||||||||||
Total
noninterest expense
|
$ | 2,421 | $ | 2,527 | $ | (106 | ) | -4.2 | % | |||||||
Six
Months Ended June 30,
|
||||||||||||||||
(Dollars in
thousands)
|
2008
|
2007
|
Change
|
|||||||||||||
Salaries
and employee benefits
|
$ | 2,579 | $ | 2,501 | $ | 78 | 3.1 | % | ||||||||
Building
occupancy
|
678 | 630 | 48 | 7.6 | % | |||||||||||
Data
processing
|
639 | 694 | (55 | ) | -7.9 | % | ||||||||||
Professional
and other services
|
422 | 463 | (41 | ) | -8.9 | % | ||||||||||
Amortization
of intangible assets
|
- | 111 | (111 | ) | -100.0 | % | ||||||||||
Other
operating
|
628 | 586 | 42 | 7.2 | % | |||||||||||
Total
noninterest expense
|
$ | 4,946 | $ | 4,985 | $ | (39 | ) | -0.8 | % |
June
30,
|
December
31,
|
June
30,
|
||||||||||
(Dollars
in thousands)
|
2008
|
2007
|
2007
|
|||||||||
Nonaccrual
loans:
|
||||||||||||
Commercial
real estate and commercial
|
$ | 1,737 | $ | 521 | $ | 502 | ||||||
Consumer
|
148 | 150 | 74 | |||||||||
Residential
Mortgage
|
1,020 | 920 | 689 | |||||||||
Total
nonaccrual loans
|
2,905 | 1,591 | 1,265 | |||||||||
Total
non-performing loans
|
2,905 | 1,591 | 1,265 | |||||||||
Foreclosed
real estate
|
655 | 865 | 449 | |||||||||
Total
non-performing assets
|
$ | 3,560 | $ | 2,456 | $ | 1,714 | ||||||
Non-performing
loans to total loans
|
1.25 | % | 0.71 | % | 0.61 | % | ||||||
Non-performing
assets to total assets
|
1.03 | % | 0.77 | % | 0.56 | % |
Minimum
|
||||||||||||||||||||||||
To
Be "Well
|
||||||||||||||||||||||||
Minimum
|
Capitalized"
|
|||||||||||||||||||||||
For
Capital
|
Under
Prompt
|
|||||||||||||||||||||||
Actual
|
Adequacy
Purposes
|
Corrective
Provisions
|
||||||||||||||||||||||
(Dollars
in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As
of June 30, 2008:
|
||||||||||||||||||||||||
Total
Core Capital (to Risk-Weighted Assets)
|
$ | 25,320 | 11.2 | % | $ | 18,145 | 8.0 | % | $ | 22,681 | 10.0 | % | ||||||||||||
Tier
1 Capital (to Risk-Weighted Assets)
|
$ | 23,333 | 10.3 | % | $ | 9,072 | 4.0 | % | $ | 13,609 | 6.0 | % | ||||||||||||
Tier
1 Capital (to Average Assets)
|
$ | 23,333 | 7.0 | % | $ | 13,578 | 4.0 | % | $ | 16,972 | 5.0 | % | ||||||||||||
As
of December 31, 2007:
|
||||||||||||||||||||||||
Total
Core Capital (to Risk-Weighted Assets)
|
$ | 25,447 | 12.2 | % | $ | 16,648 | 8.0 | % | $ | 20,810 | 10.0 | % | ||||||||||||
Tier
1 Capital (to Risk-Weighted Assets)
|
$ | 23,744 | 11.4 | % | $ | 8,324 | 4.0 | % | $ | 12,486 | 6.0 | % | ||||||||||||
Tier
1 Capital (to Average Assets)
|
$ | 23,744 | 7.7 | % | $ | 12,437 | 4.0 | % | $ | 15,548 | 5.0 | % |
Certification
of Chief Executive Officer
Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
I,
Thomas W. Schneider, President and Chief Executive Officer, certify
that:
|
|||
1. I
have reviewed this Quarterly Report on Form 10-Q of Pathfinder Bancorp,
Inc.;
|
|||
2. Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|||
3. Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|||
4. The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|||
(a) Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
(b) Designed
such internal control over financial reporting, or caused such internal
control over financial reporting, to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|||
(c) Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|||
(d) Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
|
|||
5. The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors:
|
|||
(a) All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
|||
(b) Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
|||
August 13,
2008
|
/s/ Thomas W.
Schneider
Thomas
W. Schneider
President
and Chief Executive Officer
|
Certification
of Chief Financial Officer
Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
I,
James A. Dowd, Senior Vice President and Chief Financial Officer, certify
that:
|
|||
1. I
have reviewed this Quarterly Report on Form 10-Q of Pathfinder Bancorp,
Inc.;
|
|||
2. Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period
covered by this report;
|
|||
3. Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|||
4. The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|||
(a) Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
(b) Designed
such internal control over financial reporting, or caused such internal
control over financial reporting, to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|||
(c) Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|||
(d) Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
|
|||
5. The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors:
|
|||
(a) All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
|||
(b) Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
|||
August 13,
2008
|
/s/ James A.
Dowd
James
A. Dowd
Senior
Vice President and Chief Financial Officer
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
|
Thomas
W. Schneider, President and Chief Executive Officer, and James A. Dowd,
Senior Vice President and Chief Financial Officer of Pathfinder Bancorp,
Inc. (the "Company"), each certify in his capacity as an officer of the
Company that he has reviewed the Quarterly Report of the Company on Form
10-Q for the quarter ended June 30, 2008 and that to the best of his
knowledge:
|
|
1. the
report fully complies with the requirements of Sections 13(a) of the
Securities Exchange Act of 1934; and
|
|
2. the
information contained in the report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
|
The
purpose of this statement is solely to comply with Title 18, Chapter 63,
Section 1350 of the United States Code, as amended by Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
August 13,
2008
|
/s/ Thomas W.
Schneider
Thomas
W. Schneider
President
and Chief Executive Officer
|
August 13,
2008
|
/s/ James A.
Dowd
James
A. Dowd
Senior
Vice President and Chief Financial
Officer
|