Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 135

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 135
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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 increase in non-interest income for the nine months ended September 30, 2025 is primarily attributed to the growth in the income from the Bank's Digital Payments Division.

Non-interest expense

Non-interest expense for the three months ended September 30, 2025 increased to $10.3 million, up from $8.4 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, non-interest expense totaled $28.8 million, compared to $23.6 million for the nine months ended September 30, 2024. The increase in 2025 was primarily attributed to the higher salaries and benefits, along with other operating expense.

Provision for income taxes

The Company reported a benefit for income taxes of $5,000 and $53,000 for the three and nine months ended September 30,