Patriot National Bancorp(US:PNBK)2025-11-14 21:13Financial Performance - Net interest income for the three months ended September 30, 2025, was $5,010,000, slightly up from $4,999,000 in the same period of 2024, indicating a marginal increase of 0.2%[17] - The company reported a net loss of $2,657,000 for the three months ended September 30, 2025, compared to a net loss of $26,954,000 in the same period of 2024, reflecting a significant improvement[17] - Non-interest income increased to $2,207,000 for the three months ended September 30, 2025, compared to $2,115,000 in the same period of 2024, marking an increase of approximately 4.3%[17] - Total non-interest expense rose to $10,310,000 for the three months ended September 30, 2025, compared to $8,396,000 in the same period of 2024, an increase of about 22.7%[17] - Basic loss per share improved to $(0.03) for the three months ended September 30, 2025, compared to $(6.78) in the same period of 2024, indicating a significant reduction in losses per share[17] - The total comprehensive loss for the nine months ended September 30, 2025, was $6,675,000, while for the same period in 2024, it was $28,117,000[22] Assets and Liabilities - Total assets decreased to $950,752,000 as of September 30, 2025, down from $1,012,292,000 on December 31, 2024, representing a decline of approximately 6.1%[13] - The company’s accumulated deficit increased to $97,343,000 as of September 30, 2025, compared to $86,908,000 on December 31, 2024[13] - Cash and cash equivalents at the end of the period on September 30, 2025, were $201,530,000, up from $72,772,000 at the end of September 30, 2024[24] - The total financial liabilities were reported at $847.715 million with an estimated fair value of $836.867 million as of September 30, 2025, compared to $1.001165 billion and $1.000091 billion as of December 31, 2024[183] Deposits - Total deposits decreased to $830,855,000 as of September 30, 2025, down from $966,597,000 on December 31, 2024, a decline of about 14.0%[13] - Non-interest bearing deposits fell to $87.766 million from $119.212 million, a decrease of about 26.4%[109] - Interest bearing deposits totaled $743.089 million, down from $847.385 million, reflecting a reduction of approximately 12.3%[109] - Digital Payments Division deposits were approximately $236.9 million as of September 30, 2025, compared to $265.5 million as of December 31, 2024, indicating a decline of about 10.8%[110] Credit Losses - The company experienced a recovery of provision for credit loss expense of $431,000 in Q3 2025, contrasting with a provision expense of $1,026,000 in Q3 2024[17] - The provision for credit losses was $1,826,000 for the nine months ended September 30, 2025, down from $4,776,000 for the same period in 2024[23] - The allowance for credit losses was $7,187,000 as of September 30, 2025, a decrease from $7,305,000 on December 31, 2024[13] - The provision for credit losses for the three months ended September 30, 2025 was $403,000, compared to a provision of $1,084,000 for the same period in 2024[78] Equity and Stock - As of September 30, 2025, the total shareholders' equity was $95,023,000, an increase from $16,386,000 as of September 30, 2024[22] - The company issued common stock resulting in proceeds of $85,572,000 during the nine months ended September 30, 2025[24] - The company granted a total of 1,501,667 restricted stock units (RSUs) during the three months ended September 30, 2025, and 10,254,187 RSUs during the nine months ended September 30, 2025[135] - The Company recognized total share-based compensation expense for RSUs of $1.7 million and $3.1 million for the three and nine months ended September 30, 2025, respectively[124] Lending Activities - The loan portfolio as of September 30, 2025, totaled $588.67 million, down from $707.47 million as of December 31, 2024, with a net allowance for credit losses of $7.19 million[48] - The commercial real estate loan segment decreased to $360.80 million as of September 30, 2025, from $419.49 million at the end of 2024[48] - The company began expanding its lending activities to the greater Los Angeles Metropolitan Statistical Area starting in Q3 2025[49] - The company introduced three new lending programs in Q3 2025, including an unsecured line of credit program with amounts ranging from $250,000 to $5 million[69] Interest and Fees - Interest and fees on loans decreased to $8,565,000 for the three months ended September 30, 2025, down from $11,704,000 in the same period of 2024, a decline of approximately 26.3%[17] - Cash paid for interest decreased to $23,262,000 in 2025 from $25,182,000 in 2024, representing a decline of approximately 7.6%[25] Capital Management - The Bank's common equity tier 1 capital ratio was 17.96% as of September 30, 2025, well above the required minimum of 10.00%[159] - The Bank completed three equity issuances in the nine months ended September 30, 2025, to fulfill obligations under the OCC Agreement[156] - The Company expects to raise approximately $25.6 million from a registered direct offering of 31,985,103 shares of common stock at a price of $1.25 per share[138] - The Company completed a Private Placement in March 2025, crucial for addressing the Capital Plan and Higher Minimums Articles in the OCC Agreement[154]