Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 197

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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Investments(94)(63)(157)Cash equivalents and other1,750 (378)1,372 Total interest earning assets(565)(888)(1,453)Interest bearing liabilities:Deposit1,151 (39)1,112 Borrowings(1,119)3 (1,116)Senior notes(13)45 32 Subordinated debt— (31)(31)Note payable and other— — — Total interest bearing liabilities19 (22)(3)Decrease in net interest income$(584)$(866)$(1,450)

Results of Operations

For the three months ended March 31, 2025, interest income and dividend income was $12.5 million, which decreased $1.5 million as compared to $14.0 million for the quarter ended March 31, 2024. Total interest expense was $8.6 million for the three months ended March 31, 2025, which decreased $3,000 as compared to $8.6 million for the three months ended March 31, 2024. Net interest income decreased $1.5 million from $5.4 million for the three months ended March 31, 2024 to $4.0 million for the three months ended March 31, 2025. 

The net interest margin was 1.64% for the three months ended March 31, 2025, compared with 2.20% for the three months ended March 31, 2024.  The decline in interest margins was primarily associated with an increase in the cost of deposits and other borrowings due to the significant rise in market interest rates, only partially mitigated by the rise in variable rate interest earning assets. The decline in net interest margin also reflected the lowering of loan balances during a period of rising interest rates.

Provision for Credit Losses ("PCL")

Provision for credit losses for the three months ended March 31, 2025, amounted to $733,000. This encompassed a $756,000 PCL  on loans and a $23,000  of reserve for credit losses on unfunded commitments. For the three months ended March 31, 2024, the PCL was $658,000, consisting of $653,000 PCL on loans and a $5,000 PCL on unfunded commitments. 

For the three months ended March 31, 202