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Patriot National Bancorp(PNBK) - 2024 Q2 - Quarterly Report
PNBKPatriot National Bancorp(PNBK)2024-08-09 18:54

Financial Performance - For the three months ended June 30, 2024, total interest and dividend income was 13,217,000,adecreaseof13.513,217,000, a decrease of 13.5% from 15,309,000 in the same period of 2023[6]. - Net interest income for the same period was 5,023,000,down34.95,023,000, down 34.9% from 7,713,000 year-over-year[6]. - The net loss for the three months ended June 30, 2024, was 3,081,000,comparedtoanetlossof3,081,000, compared to a net loss of 615,000 in the same period of 2023[7]. - Basic loss per share for the three months ended June 30, 2024, was 0.77,comparedto0.77, compared to 0.16 in the same period of 2023[6]. - The total comprehensive loss for the three months ended June 30, 2024, was 3,151,000,comparedto3,151,000, compared to 2,256,000 in the same period of 2023[7]. - For the six months ended June 30, 2024, the net loss was 3,380,000comparedtoanetlossof3,380,000 compared to a net loss of 1,314,000 for the same period in 2023, representing a 157% increase in losses year-over-year[17]. - Total comprehensive loss for the first half of 2024 was 3,921,000,whichincludesanunrealizedholdinglossonavailable−for−salesecuritiesof3,921,000, which includes an unrealized holding loss on available-for-sale securities of 541,000[14]. Credit Losses and Provisions - The provision for credit losses increased to 3,092,000forthethreemonthsendedJune30,2024,comparedto3,092,000 for the three months ended June 30, 2024, compared to 1,325,000 in the same period of 2023[6]. - The provision for credit losses for the first half of 2024 was 3,750,000,slightlyupfrom3,750,000, slightly up from 3,545,000 in the same period of 2023[17]. - The total allowance for credit losses is 14,989,000,with14,989,000, with 7,958,000 for individually evaluated loans and 9,272,000forcollectivelyevaluatedloans[63].−ThetotalACLforcreditlossesincreasedto9,272,000 for collectively evaluated loans[63]. - The total ACL for credit losses increased to 14,989,000 as of June 30, 2024, compared to 24,098,000asofJune30,2023,reflectingadecreaseofapproximately37.924,098,000 as of June 30, 2023, reflecting a decrease of approximately 37.9% year-over-year[61]. - The charge-offs for the six months ended June 30, 2024, totaled 5,365,000, indicating a significant increase in losses compared to previous periods[61]. Loan Portfolio and Performance - As of June 30, 2024, total loans receivable, net, amounted to 761.3million,adecreaseof8.6761.3 million, a decrease of 8.6% from 832.9 million as of December 31, 2023[37]. - The commercial real estate loan portfolio was 458.6millionasofJune30,2024,downfrom458.6 million as of June 30, 2024, down from 472.1 million at the end of 2023, reflecting a decline of 2.3%[37]. - Residential real estate loans decreased to 99.4millionfrom99.4 million from 106.8 million, a decline of 6.5%[37]. - The company’s construction loans outstanding were 3.8millionasofJune30,2024,downfrom3.8 million as of June 30, 2024, down from 4.3 million at the end of 2023, a decrease of 11.6%[46]. - The total loans receivable gross included 716.854millioninperformingloans,716.854 million in performing loans, 11.308 million in special mention, and 40.948millioninsubstandardloans[76].DepositsandCashFlow−Thecompanyexperiencedadecreaseindepositsof40.948 million in substandard loans[76]. Deposits and Cash Flow - The company experienced a decrease in deposits of 39,409,000 in the first half of 2024, contrasting with an increase of 2,933,000in2023[17].−AsofJune30,2024,totaldepositsheldbyPatriotNationalBancorpamountedto2,933,000 in 2023[17]. - As of June 30, 2024, total deposits held by Patriot National Bancorp amounted to 800.9 million, a decrease of 4.67% from 840.3milliononDecember31,2023[101].−Cashprovidedbyoperatingactivitiesforthefirsthalfof2024was840.3 million on December 31, 2023[101]. - Cash provided by operating activities for the first half of 2024 was 7,846,000, up from 3,796,000inthesameperiodof2023,indicatinga1063,796,000 in the same period of 2023, indicating a 106% increase[17]. - The company reported a net increase in cash, cash equivalents, and restricted cash of 27,116,000 for the first half of 2024, compared to an increase of 32,316,000in2023[17].SecuritiesandInvestments−AsofJune30,2024,totalavailable−for−salesecuritiesamountedto32,316,000 in 2023[17]. Securities and Investments - As of June 30, 2024, total available-for-sale securities amounted to 86.667 million, with gross unrealized losses of 21.474million,reflectingadeclineof19.921.474 million, reflecting a decline of 19.9% from the amortized cost[28]. - The amortized cost of U.S. Government agency and mortgage-backed securities was 79.854 million, with unrealized losses of 15.567millionasofJune30,2024[28].−Thecompanydoesnotintendtosellthedebtsecuritiesandbelievesitismorelikelythannotthattheywillnotberequiredtosellthembeforerecoveryoftheiramortizedcost[31].CapitalandRegulatoryCompliance−AsofJune30,2024,thetotalcapitaltorisk−weightedassetsratioforPatriotNationalBancorp,Inc.was9.8415.567 million as of June 30, 2024[28]. - The company does not intend to sell the debt securities and believes it is more likely than not that they will not be required to sell them before recovery of their amortized cost[31]. Capital and Regulatory Compliance - As of June 30, 2024, the total capital to risk-weighted assets ratio for Patriot National Bancorp, Inc. was 9.84%, while the Tier 1 capital ratio was 7.66%[128]. - The common equity tier 1 capital ratio for Patriot National Bancorp, Inc. was 6.72% as of June 30, 2024, compared to 10.20% for Patriot Bank, N.A.[128]. - The Bank was notified by the OCC of individual minimum capital ratios, requiring a common equity tier 1 capital ratio of 10.00% and a total risk-based capital ratio of 11.50%[129]. Interest Income and Expense - Total interest expense increased to 8.2 million for the three months ended June 30, 2024, up by 598,000from598,000 from 7.6 million in the prior year[202]. - Net interest income decreased by 2.7million,from2.7 million, from 7.7 million in Q2 2023 to 5.0millioninQ22024,attributedtolowerloanbalancesandnarrowernetinterestmargins[202].−ThetotalinterestincomerecognizedforthesixmonthsendedJune30,2024,was5.0 million in Q2 2024, attributed to lower loan balances and narrower net interest margins[202]. - The total interest income recognized for the six months ended June 30, 2024, was 35.745 million, compared to $21.609 million for the same period in 2023, reflecting an increase of approximately 65.3%[88].