Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 79

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 three and nine months ended September 30, 2025, 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 September 30, 2025 and September 30, 2024, the ACL was $7.2 million and $15.0 million, respectively. The decrease was due to significant charge-offs of reserved CRE and consumer loans in 2024, which also impacted the ACL to loans ratio of 1.22% as of September 30, 2025, compared to an ACL of $15.0 million and an ACL to loans ratio of 1.98% as of September 30, 2024. 

The non-accrual loan balance was $26.0 million as of September 30, 2025, compared to $36.5 million as of September 30, 2024. The allowance for credit losses to non-accrual loans ratio was 27.67% as of September 30, 2025, compared to 41.10% as of September 30, 2024. The rate at September 30, 2024 was significantly higher due to reserves on individually evaluated CRE loans that were subsequently charged-off after September 30, 2024. 

The following table provides an allocation of allowance for credit losses on loans by portfolio segment:

(In thousands)September 30, 2025December 31, 2024Allowance for credit lossesPercent of loans in each category to total loansAllowance for credit lossesPercent of loans in each category to total loansCommercial Real Estate$2,504 61.29 %$2,241 59.30 %Residential Real Estate805 14.21 %596 13.03 %Commercial and Industrial3,430 20.96 %1,077 18.32 %Consumer and Other448 3.53 %3,386 8.48 %Construction— — %5 0.54 %Construction to permanent - CRE— 0.01 %— 0.33 %Total Allowance for credit losses$7,187 100.00 %$7,305 100.00 %

57

Non-performing Assets

The following table presents non-performing assets as of September 30, 2025 and December 31, 2024:

September 30,