Patriot National Bancorp(US:PNBK)2023-05-12 21:26Financial Performance - Net interest income for Q1 2023 was $8,013 thousand, an increase of 19.1% compared to $6,726 thousand in Q1 2022[15]. - Net loss for Q1 2023 was $53 thousand, a decline from a net income of $800 thousand in Q1 2022[15]. - Comprehensive income for Q1 2023 was $1,194 thousand, compared to a comprehensive loss of $4,682 thousand in Q1 2022[16]. - For the three months ended March 31, 2023, the net income attributable to common shareholders was $(53,000), compared to $800,000 for the same period in 2022, resulting in a basic earnings per share of $(0.01) versus $0.20[131]. - The Company reported a net loss of $53,000 for Q1 2023, compared to a net income of $800,000 in Q1 2022, reflecting a significant decline in earnings[172]. Asset and Liability Management - Total assets increased to $1,100,012 thousand as of March 31, 2023, up from $1,043,359 thousand at December 31, 2022, representing a growth of 5.4%[12]. - Total deposits decreased slightly to $856,468 thousand as of March 31, 2023, from $860,446 thousand at December 31, 2022[12]. - The accumulated deficit increased to $37,581 thousand as of March 31, 2023, from $31,337 thousand at December 31, 2022[12]. - Shareholders' equity decreased to $54,609 thousand as of March 31, 2023, down from $59,583 thousand at December 31, 2022[12]. - The total financial liabilities as of March 31, 2023, are estimated at $1,032,380, compared to $969,211 as of December 31, 2022, indicating an increase of approximately 6.5%[160]. Credit Losses and Provisions - The provision for credit losses was $1,336 thousand in Q1 2023, compared to no provision in Q1 2022[15]. - The allowance for credit losses increased to $17.801 million as of March 31, 2023, compared to $10.310 million as of December 31, 2022, representing a significant rise of approximately 72.5%[54]. - The elevated provision for credit losses was $1.3 million in Q1 2023, contrasting with no provision recorded in Q1 2022, indicating increased risk management measures[173]. - The allowance for credit loss increased to $700,000 as of March 31, 2023, from $8,000 as of December 31, 2022, primarily due to the adoption of CECL[134]. Loan Portfolio and Performance - As of March 31, 2023, the total loans receivable, net, amounted to $860.968 million, an increase from $838.006 million as of December 31, 2022, reflecting a growth of approximately 2.3%[54]. - The commercial real estate loan segment reached $464.410 million as of March 31, 2023, up from $437.443 million at the end of 2022, indicating an increase of about 6.2%[54]. - The total past due loans across all segments amounted to $23,769,000, indicating potential credit risk[89]. - Total nonperforming assets rose to $27.2 million as of March 31, 2023, compared to $19.7 million as of December 31, 2022, representing a 37.5% increase[188]. - The commercial real estate segment reported a total of $432,144,000 in loans, with $4,387,000 classified as pass loans and $11,367,000 as substandard[89]. Deposits and Funding - Total deposits as of March 31, 2023, were $856.5 million, a slight decrease from $860.4 million at December 31, 2022[114]. - Non-interest bearing deposits decreased to $152.8 million as of March 31, 2023, from $269.6 million at December 31, 2022[114]. - The total value of certificates of deposit and brokered deposits was $311.5 million as of March 31, 2023[115]. - The balance of non-interest bearing deposits decreased by 43.34% to $152.8 million as of March 31, 2023, from $269.6 million at December 31, 2022[194]. Investment Securities - The investment securities portfolio increased by $7.2 million to $96.2 million, with a notable rise in U.S. Government agency and mortgage-backed securities by 14.38%[179]. - The fair value of available-for-sale securities increased from $75,093 as of December 31, 2022, to $81,531 as of March 31, 2023, representing an increase of about 8.5%[162]. - The total available-for-sale securities amounted to $111.141 million as of March 31, 2023, compared to $105.605 million as of December 31, 2022, showing an increase of approximately 5.0%[53]. Interest Income and Expense - Interest income recognized on non-accruing loans for the three months ended March 31, 2023, was $282,000, compared to $90,000 for the same period in 2022, reflecting a 213.3% increase[93]. - Interest expense for the three months ended March 31, 2023, was $1.4 million, compared to $737,000 for the same period in 2022, indicating an increase of 89.4%[199]. - The net interest margin decreased by 48 basis points to 3.29% from 3.77% in Q4 2022, but increased by 23 basis points from 3.06% in Q1 2022[174]. Risk Management - The Company’s commercial and industrial loans are subject to various risks, including economic downturns and changes in interest rates[75]. - The risk rating system includes an eleven-point scale, with assets classified as "substandard" indicating potential loss risk due to weaknesses in the obligor's net worth or paying capacity[85]. - The company monitors credit quality through indicators such as cash flow, loan-to-value ratios, and debt service coverage ratios[82]. Regulatory Compliance - The Bank's Tier 1 leverage ratio was 9.25% as of March 31, 2023, compared to 9.27% as of December 31, 2022, meeting the "greater than 9 percent" requirement under the CBLR framework[138]. - The Company adopted ASC 326 effective January 1, 2023, which did not have a material impact on its consolidated financial statements[43].