Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 96

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 96
---
 the three months ended September 30, 2025, the provision for credit losses was -$0.4 million, consisting of a -$0.4 million loan provision and a $27,000 credit for off-balance-sheet exposure reserves. In comparison, for the three months ended September 30, 2024, the provision for credit losses was $1.0 million, including a $1.1 million loan provision and a $58,000 credit for off-balance-sheet exposure reserves. 

For the nine months ended September 30, 2025, the PCL was $1.8 million, which included a $2.0 million loan provision and a $128,000 credit for off-balance-sheet exposure reserves. For the nine months ended September 30, 2024, the provision was $4.8 million, consisting of a $4.9 million provision and a $94,000 credit for off-balance-sheet exposure reserves.

In 2025, the Bank has been selectively managing down its credit exposure in certain higher-risk areas. The loan portfolio declined from $755.7 million as of September 30, 2024, to $588.7 million as of September 30, 2025. This reduction in credit exposure has required a lower level of reserves. Consequently, the ACL for loans outstanding decreased from $15.0 million as of September 30, 2024, to $7.2 million as of September 30, 2025.

One key driver in both the level of outstanding loans and reserves is the pool of purchased unsecured consumer loans, which decreased from $26.1 million as of September 30, 2024 to $1.0 million as of September 30, 2025.  Correspondingly, the reserves for this pool also fell, declining from $3.8 million as of September 30, 2024 to $0.2 million as of September 30, 2025. 

Non-interest income 

Non-interest income for the three months ended September 30, 2025 was $2.2 million, compared to $2.1 million for the three months ended September 30, 2024. Over the nine months ended September 30, 2025, non-interest income reached $7.0 million, up from $6.4 million in the corresponding period of 2024. The