Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 97

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 97
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 increase in non-interest income for the nine months ended September 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 September 30, 2025 increased to $10.3 million, up from $8.4 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, non-interest expense totaled $28.8 million, compared to $23.6 million for the nine months ended September 30, 2024. The increase in 2025 was primarily attributed to the higher salaries and benefits, along with other operating expense.

Provision for income taxes

The Company reported a benefit for income taxes of $5,000 and $53,000 for the three and nine months ended September 30, 2025, respectively, compared to a provision for income taxes of $24.6 million and $23.8 million for the three and nine months ended September 30, 2024, respectively.

69

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 September 30, 2025 and December 31, 2024, are as follows:

(In thousands)September 30, 2025December 31, 2024On-hand liquidityInterest-bearing cash and cash equivalents$178,889 $144,273 Available-for-sale securities, at fair value105,549 79,992 Less: pledged available-for-sale securities(14,017)(60,223)Total on-hand liquidity270,421 164,042 Borrowing capacityFHLB borrowing capacity78,723 48,692 FRB borrowing capacity8,584 64,742 Unsecured credit lines from correspondent banks— 5,000 Brokered deposit capacity58,316 69,702 Total borrowing capacity145,623 188,136 Less: used