Patriot National Bancorp (PNBK) Q2 2024 earnings summary

Executive summary

• Net loss of $3.1 million ($0.77 per share) for Q2 2024, compared to $615,000 ($0.16 per share) in Q2 2023; six-month net loss was $3.4 million ($0.85 per share) versus $1.3 million ($0.33 per share) year-over-year.

• Results were impacted by higher provision for credit losses and a decline in net interest income due to higher deposit costs and lower loan balances.

• Total assets decreased by $54.4 million to $1.04 billion as of June 30, 2024, primarily from a $72.6 million decline in loans receivable.

Financial highlights

• Net interest income for Q2 2024 was $5.0 million, down from $7.7 million in Q2 2023; six-month net interest income was $10.4 million, down from $15.7 million year-over-year.

• Provision for credit losses was $3.1 million for Q2 2024 and $3.8 million for the first half, up from $1.3 million and $3.5 million, respectively, in 2023.

• Non-interest income rose to $2.1 million in Q2 2024 from $829,000 in Q2 2023, driven by Digital Payments division.

• Non-interest expense was $8.0 million in Q2 2024, slightly down from $8.1 million in Q2 2023.

• Net interest margin declined to 2.14% in Q2 2024 from 2.96% in Q2 2023.

Outlook and guidance

• The bank is focused on reducing total and risk-based assets to meet new OCC-imposed minimum capital ratios by year-end 2024.

• Management expects continued efforts to strengthen capital ratios and maintain liquidity above policy minimums.