Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 228

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 228
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30, 2024, the provision for credit losses was $3.1 million, including a $3.1 million loan provision and a $41,000 credit for off-balance-sheet exposure reserves. 

For the six months ended June 30, 2025, the PCL was $2.3 million, which included a $2.4 million loan provision and a $101,000 credit for off-balance-sheet exposure reserves. For the six months ended June 30, 2024, the provision was $3.8 million, consisting of a $3.8 million provision and a $36,000 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 $810.3 million as of June 30, 2024, to $587.5 million as of June 30, 2025. This reduction in credit exposure has required a lower level of reserves. Consequently, the ACL for loans outstanding decreased from $13.8 million as of June 30, 2024, to $7.8 million as of June 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 $32.3 million as of June 30, 2024 to $12.4 million as of June 30, 2025.  Correspondingly, the reserves for this pool also fell, declining from $4.6 million as of June 30, 2024 to $2.7 million as of June 30, 2025. 

Non-interest income 

Non-interest income for the three months ended June 30, 2025 was $2.0 million, compared to $2.1 million for the three months ended June 30, 2024. Over the six months ended June 30, 2025, non-interest income reached $4.8 million, up from $4.3 million in the corresponding period of 2024. The increase in non-interest income for the six months ended June 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 June 30, 2025 increased to $9.7 million