Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 227

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 227
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 30, 2024. Total interest expense was $7.3 million for the three months ended June 30, 2025, which decreased $888,000 as compared to $8.2 million for the three months ended June 30, 2024. Net interest income decreased $835,000 from $5.0 million for the three months ended June 30, 2024 to $4.2 million for the three months ended June 30, 2025. 

For the six months ended June 30, 2025, interest income and dividend income was $24.0 million, which decreased $3.2 million as compared to $27.2 million for the six months ended June 30, 2024. Total interest expense was $15.9 million, which decreased $891,000 as compared to $16.8 million for the six months ended June 30, 2024. Net interest income was $8.1 million for the six months ended June 30, 2025, which decreased $2.3 million from $10.4 million for the six months ended June 30, 2024. 

The decline for both three and six months ended June 30, 2025 reflects a lower loan balance and narrower net interest margin due to higher deposit costs.

The net interest margin was 1.85% for the quarter ended June 30, 2025, compared to 2.14% for the quarter ended June 30, 2024. For the six months ended June 30, 2025 and 2024, the net interest margin was 1.74% and 2.17%, respectively. The decline in interest margins for the three and six months ended June 30, 2025 compared to the same periods in 2024, was primarily associated with an increase in the cost of deposits and other borrowings due to the significant rise in market interest rates and a decline in loan interest income due to the declining loan balance, partially mitigated by the rise in variable rate interest earning assets.

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Provision for Credit Losses ("PCL")

For the three months ended June 30, 2025, the provision for credit losses was $1.5 million, consisting of a $1.6 million loan provision and a $78,000 credit for off-balance-sheet exposure reserves. In comparison, for the three months ended June