OSWEGO, N.Y. - Pathfinder Bancorp, Inc. (NASDAQ: PBHC), the holding company for Pathfinder Bank, has received approval from the New York State Department of Financial Services and the Federal Deposit Insurance Corporation to acquire a branch of Berkshire Bank located in East Syracuse, New York. The transaction includes approximately $198 million in deposits and $32 million in consumer and residential loans.
The acquisition is part of Pathfinder's strategic expansion in the Syracuse market, which is expected to enhance its business growth and offer a wider range of banking products and services. James A. Dowd, President and CEO of Pathfinder Bancorp, expressed enthusiasm for the regulatory green light, which will allow the company to extend its footprint in the region.
The purchase agreement is set to close in the third quarter of 2024, with the East Syracuse branch transitioning to operate under the Pathfinder Bank brand. Both Pathfinder and Berkshire are working to ensure a smooth conversion for customers, who will have access to Pathfinder's network of 11 additional regional branches.
Pathfinder Bank, established in 1859, is a commercial bank with $1.5 billion in assets, currently operating 11 full-service offices in Oswego and Onondaga Counties and a limited purpose office in Oneida County. The bank prides itself on high-quality products and service for businesses and community members.
This press release statement provides information on the acquisition and is based on current management expectations. It also includes forward-looking statements subject to various risks and uncertainties. Actual results may differ from those projected due to a number of factors, including the completion and benefits of the acquisition. The financial data presented reflects the situation as of January 31, 2024, and may change before the deal's closing.
In other recent news, Pathfinder Bancorp, Inc. has reported significant developments. The company announced the retirement of its Senior Vice President and Chief Financial Officer, Walter F. Rusnak, effective from June 28, 2024, with Justin K. Bigham succeeding him. Rusnak's tenure at Pathfinder Bancorp was marked by strategic growth initiatives, while Bigham brings over 25 years of experience in financial services to his new role.
In another development, Pathfinder Bancorp has declared an increased quarterly cash dividend for its shareholders. The dividend has been raised to $0.10 per share, representing an 11.1% increase from the previous quarter's dividend. This decision is seen as a reflection of the company's commitment to shareholder returns.
These are recent developments that have been shaping the trajectory of Pathfinder Bancorp. The company's leadership changes and increased dividend payout indicate ongoing strategic decisions aimed at bolstering the company's position in the banking sector. It is important to note that these developments have been reported without any implications for the company's stock price or future financial performance.
InvestingPro Insights
As Pathfinder Bancorp, Inc. (NASDAQ: PBHC) reinforces its presence in the Syracuse market with the acquisition of a Berkshire Bank branch, investors and stakeholders may find the following insights from InvestingPro particularly relevant. The company's commitment to strategic expansion and service enhancement is reflected in its financial metrics and dividend history.
InvestingPro Data shows a modest market capitalization of $76.95 million for PBHC, with a Price/Earnings (P/E) Ratio standing at 11.49. The P/E Ratio, which slightly increased to 11.54 in the last twelve months as of Q1 2024, indicates the company is trading at a reasonable earnings multiple. Moreover, the Price to Book (P/B) ratio of 0.63 suggests that the stock may be undervalued relative to the company's book value, potentially offering an attractive entry point for value-oriented investors.
On the performance front, PBHC has displayed a commendable Operating Income Margin of 29.87% in the last twelve months as of Q1 2024, underscoring its ability to translate revenues into profits efficiently. However, it's important to note a dip in Revenue Growth of -8.41% over the same period, which may be a point of consideration for those closely monitoring top-line growth.
In terms of shareholder returns, one of the InvestingPro Tips highlights that PBHC has raised its dividend for 3 consecutive years and has maintained dividend payments for an impressive 29 consecutive years. This consistency is a testament to Pathfinder's financial stability and commitment to returning value to its shareholders. The current Dividend Yield stands at a solid 3.15%, which is especially attractive for income-focused investors.
For those seeking deeper insights and additional metrics, InvestingPro offers a wealth of information to help make informed decisions. There are more InvestingPro Tips available, including an assessment of the company's gross profit margins and profitability over the last twelve months. To access these valuable tips and metrics, visit https://www.investing.com/pro/PBHC and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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