Pathfinder Bancorp, Inc. New Standards Disclosure

Standards Adopted as of December 31, 2024

Standard

Description

Required Date
of Implementation

Effect on Consolidated Financial Statements

Reference Rate Reform (ASU 2020-04: Facilitation of the Effects of Reference Rate Reform on Financial Reporting [Topic 848]: Deferral of the Sunset Date of Topic 848)

The amendments provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments (1) apply to contract modifications that replace a reference rate affected by reference rate reform, (2) provide exceptions to existing guidance related to changes to the critical terms of a hedging relationship due to reference rate reform (3) provide optional expedients for fair value hedging relationships, cash flow hedging relationships, and net investment hedging relationships, and (4) provide a onetime election to sell, transfer, or both sell and transfer debt securities classified as held-to-maturity that reference a rate affected by reference rate reform and that are classified as held-to-maturity before January 1, 2020. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition.

Adopted as of December 31, 2024, as amended by ASU 2022-06.

The adoption of this ASU did not have a material impact to the Company's consolidated financial statements.

Segment Reporting ASU 2023-07 (Topic 280): Improvements to Reportable Segment Disclosures

ASU 2023-07 was issued to expand the disclosures for reportable segments made by public entities in response to
stakeholders’ requests for more detailed information about expenses within each reportable segment. The guidance
disclosure of significant expenses for reportable segments including disclosures related to a reportable segment’s profit or loss and assets. In addition, entities with a single reportable segment must now provide all segment disclosures required in ASC 280, including the new disclosures for reportable segments under the amendments in ASU 2023-07. The amendments do not change the existing guidance on how a public entity identifies and determines its reportable segments.

Effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The adoption of this ASU did not have a material impact to the Company's consolidated financial statements.

Standards Not Yet Adopted as of December 31, 2024

Standard

Description

Required Date
of Implementation

Effect on Consolidated Financial Statements

Income taxes (Topic 740): Improvements to Income Tax Disclosures 2023-09

Amendments to ASC740 are being made to enhance the transparency and decision usefulness of income tax disclosures. The enhancements are made to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The objective of these disclosure requirements is for an entity, particularly an entity operating in multiple jurisdictions, to disclose sufficient information to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective tax rate and the statutory tax rate.

Public business entities are required to apply this guidance to annual periods beginning after December 15, 2024.

The adoption of this ASU is not expected to have a material impact to the Company's consolidated financial statements.

Standard

Description

Required Date
of Implementation

Effect on Consolidated Financial Statements

Income Statement ASU 2024-03 (Subtopic 220-40): Disaggregation of Income Statement Expenses

Amendments to ASC740 are being made to enhance the transparency and decision usefulness of income tax disclosures. The enhancements are made to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The objective of these disclosure requirements is for an entity, particularly an entity operating in multiple jurisdictions, to disclose sufficient information to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective tax rate and the statutory tax rate.

Fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The Company is evaluating the adoption of the ASU but does not expect it will have a material impact to the Company's consolidated financial statements.