Pathfinder Bancorp, Inc. Liquidation Value

Pathfinder Bancorp, Inc. (PBHC) is a New York-based community bank holding company with total assets of approximately $1.42 billion (implied from average assets of $1.40 billion for Q1 2026). The MFFAIS liquidation value is reported at negative $13.4 million across all three measures (CLV, LLV, OLV), indicating that under a liquidation scenario, equity holders recover nothing after settling liabilities at face value. This negative recovery posture is the expected outcome for a going-concern community bank where the liability stack (deposits of $1.21 billion, borrowings, and other obligations) is carried at face value while the asset side absorbs haircuts.

The dominant liquidation concern in this filing is a sharp deterioration in credit quality. Total nonperforming assets increased from $27.7 million at December 31, 2025 to $38.3 million at March 31, 2026, a $10.6 million or 38% quarter-over-quarter increase. Nonperforming loans rose from $27.6 million to $38.2 million, driven primarily by commercial and commercial real estate credits jumping from $24.6 million to $34.8 million. The nonperforming loans-to-total-loans ratio moved from 3.07% to 4.26% in a single quarter. This increase reflects legacy commercial credits identified through a 2025 portfolio review that may have been less than 90 days delinquent but carry elevated risk characteristics. The ACL stands at $29.0 million (3.24% of total loans), down slightly from $29.4 million at year-end 2025, against $84.7 million in individually analyzed loans with $18.5 million in specific reserves. Potential problem loans (special mention, substandard, doubtful) total $76.4 million.

On the capital side, the bank subsidiary is well-capitalized with a Total Capital ratio of 14.87% and Tier 1 of 13.59% against risk-weighted assets of $1.00 billion, providing regulatory buffer above minimums. GAAP equity is $139.7 million at March 31, 2026, up modestly from $138.9 million at December 31, 2025. Goodwill of $5.1 million and intangible assets of $5.2 million are zero-recovery items under the liquidation lens, reducing tangible book.

Liquidity is adequate: $198.4 million of unused credit facilities remain available at FHLB-NY and correspondent banks. Uninsured deposits are $174.7 million (15.6% of total), up from $161.1 million (14.9%) at year-end 2025. Off-balance sheet commitments total $191.4 million.

Operating efficiency has degraded: Q1 2026 non-GAAP efficiency ratio was 75.65% versus 67.19% in Q1 2025, reflecting declining net interest income ($10.3 million vs. $11.4 million) against relatively stable noninterest expense ($8.7 million vs. $8.4 million). A fair value adjustment to loans held-for-sale of negative $203,000 in Q1 2026 (no comparable item in Q1 2025) also weighs on revenue.

The TAG_CONTEXT contains no XBRL tags, so all balance-sheet figures are sourced from narrative MD&A disclosures. The filing does not separately tag nonperforming loan totals, allowance for credit losses, or segment-level credit metrics in XBRL, which limits systematic monitoring of the credit deterioration trend through structured data.