Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 63

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 of loans in all other states, none of which are greater than 5% of the total.

Allowance for Credit Losses ("ACL") on Loans

The allowance for credit losses on loans was $6.7 million as of March 31, 2025, compared to $7.3 million as of December 31, 2024, a reduction of $576,000. The decrease in allowance was mainly due to reduction in loan balances and the recognition of charge-offs on the unsecured consumer loan portfolio. Based upon the overall assessment and evaluation of the loan portfolio at March 31, 2025, management believes $6.7 million in the allowance for credit losses, which represented 1.00% of gross loans outstanding, is adequate under prevailing economic conditions to absorb existing losses in the loan portfolio. 

The following table provides detail of activity in the allowance for credit losses on loans for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,(In thousands)20252024Balance at beginning of the period$7,305 $15,925 Charge-offs:Commercial Real Estate(635)(158)Residential Real Estate— (21)Commercial and Industrial(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 %

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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 un