Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 95

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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)$(1,474)

Results of Operations

For the three months ended September 30, 2025, interest income and dividend income was $11.5 million, which decreased $1.3 million as compared to $12.8 million for the quarter ended September 30, 2024. Total interest expense was $6.5 million for the three months ended September 30, 2025, which decreased -$1.3 million as compared to $7.8 million for the three months ended September 30, 2024. Net interest income increased $11,000 from $5.0 million for the three months ended September 30, 2024 to $5.0 million for the three months ended September 30, 2025. 

For the nine months ended September 30, 2025, interest income and dividend income was $35.6 million, which decreased $4.4 million as compared to $40.0 million for the nine months ended September 30, 2024. Total interest expense was $22.4 million, which decreased -$2.2 million as compared to $24.6 million for the nine months ended September 30, 2024. Net interest income was $13.2 million for the nine months ended September 30, 2025, which decreased $2.3 million from $15.4 million for the nine months ended September 30, 2024. 

The decline for both three and nine months ended September 30, 2025 reflects a lower loan balance and narrower net interest margin due to higher deposit costs.

The net interest margin was 2.23% for the quarter ended September 30, 2025, compared to 2.18% for the quarter ended September 30, 2024. For the nine months ended September 30, 2025 and 2024, the net interest margin was 1.90% and 2.18%, respectively. The increase in interest margins for the three and nine months ended September 30, 2025 compared to the same periods in 2024, was primarily associated with an increase in the cost of deposits and other borrowings due to the significant rise in market interest rates and a decline in loan interest income due to the declining loan balance, partially mitigated by the rise in variable rate interest earning assets.

68

Provision for Credit Losses ("PCL")

For