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Pathfinder Bancorp, Inc.: Pathfinder Bancorp, Inc. Declares Fourth Quarter Dividend

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^{Published in Business and Finance on Friday, January 2nd 2009 at 7:35 GMT, Last Modified on 2009-01-02 07:36:18 by Market Wire}  

OSWEGO, NY--(Marketwire - January 2, 2009) - Thomas W. Schneider, President/CEO of Pathfinder Bancorp, Inc., the mid-tier holding company of Pathfinder Bank, (NASDAQ: [ PBHC ]) (listing: PathBcp) has announced that the Company has declared a cash dividend of $.1025 per share on the Company's common stock for the fiscal quarter ending December 31, 2008. The dividend will be payable to all shareholders of record on January 16, 2009 and will be paid on January 30, 2009.

In addition, the Company announced that it may reduce 2009 dividends in order to enhance its capital ratios during the current stressed economic cycle. The Tier One Risk-Based Capital Ratio of the Company's subsidiary, Pathfinder Bank, was 10.0% at September 30, 2008. This ratio is above the regulatory threshold for "well capitalized" banks. "The Board of Directors and Management believe it is in the best interest of the shareholders to conserve capital at this time," said Schneider. "We also feel strongly that as we move through the current economic cycle, there will be opportunities to deploy capital that will enhance value to our shareholders. We are grateful that we have a strong core earnings base, and we remain committed to maintaining a strong capital position for the Company," he added.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. is the mid-tier holding company of Pathfinder Bank, a New York chartered savings bank headquartered in Oswego, New York. The Bank has seven full service offices located in its market area consisting of Oswego County. Financial highlights for Pathfinder Bancorp, Inc. are attached. Presently, the only business conducted by Pathfinder Bancorp, Inc. is the 100% ownership of Pathfinder Bank and Pathfinder Statutory Trust I.

This release may contain certain forward-looking statements, which are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products, and services.