Company: PNBK
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001628280-25-017837
Chunk: 87

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 87
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 and Industrial(1,252)(927)(70)Consumer and Other(7,431)(10,479)(1,690)Construction— (150)(68)Total charge-offs(22,593)(18,417)(1,828)Recoveries:Commercial Real Estate— — 154 Residential Real Estate— 14 4 Commercial and Industrial369 34 69 Consumer and Other1,060 1,080 121 Total recoveries1,429 1,128 348 Net charge-offs(21,164)(17,289)(1,480)Provision for credit losses12,544 9,903 1,885 Balance at end of the period$7,305 $15,925 $10,310 Ratios:Net charge-offs to average loans(2.66)%(1.93)%(0.18)%Allowance for credit losses to total loans1.03 %1.88 %1.22 %Allowance for credit losses to nonaccrual loans28.24 %87.85 %55.45 %

24

The net charge-offs increased $3.9 million from $17.3 million as of December 31, 2023 to $21.2 million as of December 31, 2024, with an increase in net charge-offs to average loans ratio of 2.66% for the year ended December 31, 2024 , from 1.93% for the year ended December 31, 2023. 

The increase in net charge-offs for the year ended December 31, 2024 was primarily associated charge-offs totaling $13.6 million from two large commercial real estate loans in December 2024.

The average loan balance decreased by $101.3 million, from $896.5 million for the year ended December 31, 2023, to $795.2 million for the year ended December 31, 2024. The decrease in average loan balance, 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 December 31, 2024 and December 31, 2023, the ACL was $7.3 million and $15.9 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