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Patriot National Bancorp, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss of $27.0 million, compared to a net loss of $3.8 million in the same quarter the previous year. The increase in net loss is primarily attributed to a full valuation allowance on deferred tax assets of $25.1 million.
Total assets decreased to $974.1 million from $1.09 billion at the end of 2023, primarily due to a decline in loans receivable by $93.2 million.
Cash, cash equivalents, and restricted cash increased to $72.8 million from $66.5 million at the end of 2023, reflecting an intention to boost balance sheet liquidity.
The investment securities portfolio increased slightly to $94.0 million from $93.6 million at the end of 2023, with purchases of available-for-sale securities and unrealized gains offset by sales and repayments.
Loans held for investment decreased to $755.7 million from $848.9 million at the end of 2023, as the Company continued to restrict loan growth and allow loans to pay down.
The allowance for credit losses on loans was $15.0 million as of September 30, 2024, down from $15.9 million at the end of 2023. This decrease was mainly due to charge-offs on the unsecured consumer loan portfolio.
Non-performing assets increased to $43.4 million from $21.3 million at the end of 2023, with non-accrual loans comprising $36.5 million of this total.
Deposits decreased to $824.9 million from $840.3 million at the end of 2023, with non-interest-bearing deposits declining by $18.5 million.
Total borrowings were $123.9 million, down from $201.1 million at the end of 2023, reflecting repayments of Federal Reserve Bank borrowings and FHLB advances.
Net interest income for the quarter was $5.0 million, down from $6.5 million in the previous year, with the decline attributed to a lower loan balance and higher deposit costs.
The provision for credit losses was $1.0 million for the quarter, down from $4.7 million in the previous year, reflecting a reduction in loan balances and credit exposure.
Non-interest income increased to $2.1 million from $1.2 million in the previous year, primarily due to higher income from the Digital Payments Division.
Non-interest expense was $8.4 million, up from $8.1 million in the previous year, with the increase primarily due to higher salaries and benefits.
The Company reported a provision for income taxes of $24.6 million for the quarter, compared to a benefit of $1.3 million in the previous year, due to the valuation allowance on deferred tax assets.
The Bank did not meet all of its regulatory capital requirements as of September 30, 2024, with a common equity tier 1 capital ratio of 8.19%, below the required 10.00%.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Patriot National Bancorp Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.