Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 198

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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5, 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 March 31, 2024, to $674.2 million as of March 31, 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 March 31, 2024, to $6.7 million as of March 31, 2025.

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Non-interest income 

Non-interest income for the three months ended March 31, 2025 was $2.73 million, compared to $2.25 million for the three months ended March 31, 2024. The increase was primarily attributable to higher non-interest income from the Bank's Digital Payments division of $794,000.

Non-interest expense

Non-interest expense for the three months ended March 31, 2025 increased by $1.5 million to $8.7 million, compared to $7.2 million for the three months ended March 31, 2024. The primary drivers of this increase were higher salaries and benefit expenses of $355,000, professional and other outside services of $240,000, regulatory assessments of $236,000, and an OREO expense of $253,000 which is included in other operating expense in the first quarter of 2025.

Provision for income taxes

The Company reported a provision for income taxes of $1,000 for the three months ended March 31, 2025, compared to a provision for income taxes of $66,000 for the three months ended March 31, 2024. 

Liquidity

The Company measures liquidity in two primary ratios: on-hand liquidity to total liabilities, and total liquidity to total liabilities.  On-hand liquidity is comprised of interest-bearing cash and cash equivalents and unpledged available-for-sale securities.  Total liquidity includes on-hand liquidity, plus total available credit lines, plus availability of brokered deposits which is subject to internal limitations.  The Company monitors other metrics in addition to on-hand liquidity and total liquidity to manage concentration risk in certain types of liabilities.

The Company's on-hand liquidity and total liquidity ratios as of March 31, 2025 and December 31, 2024, are as follows:

(In thousands)March 31, 2025December 31, 2024On