Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 183

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 183
---
119)(410)Consumer and Other(916)(2,523)Total charge-offs(1,670)(3,112)Recoveries:Commercial and Industrial86 6 Consumer and Other252 305 Total recoveries338 311 Net charge-offs(1,332)(2,801)Provision for credit losses756 653 Balance at end of the period$6,729 $13,777 Ratios:Net charge-offs to average loans (annualized)(0.19)%(0.33)%Allowance for credit losses to total loans1.00 %1.70 %Allowance for credit losses to nonaccrual loans22.65 %72.21 %

45

For the three months ended March 31, 2025, net charge-offs decreased $1.5 million to $1.3 million, with a net charge-offs to average loans ratio of 0.19%, compared to $2.8 million and 0.33% for the three months ended March 31, 2024. 

The reduction in net charge-offs for the three months ended March 31, 2025 was primary driven by a $1.6 million decrease in charge-offs related to purchased unsecured consumer loans as the portfolio balances have declined.

The average loan balance decreased by $130.6 million, from $841.1 million for the three months ended March 31, 2024, to $710.5 million for the three months ended March 31, 2025. This decrease in average loan balance reflects the Company's continued approach of limiting loan growth and allowing loans to pay down to strengthen capital ratios as the balance sheet is reduced.

As of March 31, 2025 and March 31, 2024, the ACL was $6.7 million and $13.8 million, respectively. The decrease was primarily due to significant charge-offs of non-performing CRE loans after March 31, 2024. This also impacted the ACL to total loans ratio, which was 1.00% as of March 31, 2025, compared to 1.70% as of March 31, 2024. 

The nonaccrual loan balance was $29.7 million as of March 31, 2025, compared to $19.1 million as of March 31, 2024. The allowance for credit losses to nonaccrual loans ratio was 22.