Company: PNBK
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001628280-25-017837
Chunk: 98

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 98
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,704 (Decrease) increase in net interest income$(1,219)$(7,204)$(8,423)$464 $(5,223)$(4,759)

RESULTS OF OPERATIONS

A discussion regarding the financial condition and results of operations for fiscal 2024 compared to fiscal 2023 is presented below. Discussions of fiscal 2023 items and year-to-year comparisons between fiscal 2023 and fiscal 2022 that are not included in this Form 10-K can be found under Item 7 of Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the SEC on April 1, 2024.

Comparison of Results of Operations for the years 2024 and 2023

For the year ended December 31, 2024, the Company recorded net loss of $39.9 million ($(10.03) basic and diluted loss per share) compared to net loss of $4.2 million ($(1.05) basic and diluted loss per share) for the year ended December 31, 2023.

The results for the year of 2024 were significantly impacted by a $25.1 million full valuation allowance on the Company's deferred tax assets ("DTA") recorded as of September 30, 2024.  The accounting guidance under generally accepted accounting principles ("GAAP") require an assessment of the realizability of a DTA if the Company has had a recent history of cumulative losses.  Given the losses in the previous year and a half, management determined the need for a valuation allowance on the Company's DTAs.  The valuation allowance lowers the balance sheet asset with a charge to tax provision, but does not limit the potential future usage of the DTAs.

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Pre-tax loss was $16.1 million for the year ended December 31, 2024, compared to pre-tax loss of $5.6 million for the year ended December 31, 2023. Significant variances are summarized below and discussed in detail subsequently:

•Interest and dividend income decreased $6.6 million;

•Interest expense increased $1.8 million;

•Net interest income decreased $8.4 million;

•Provision for credit losses increased $5.0 million;

•Non-interest income increased $2.4 million; and

•Non-interest expense decreased $628,000.

Net interest income 

Net interest income is the difference between interest income on interest