Patriot National Bancorp (PNBK) Q2 2025 earnings summary

Executive summary

• Net loss of $5.0 million ($0.06 per share) for Q2 2025, compared to $3.1 million ($0.77 per share) in Q2 2024; six-month net loss was $7.8 million, up from $3.4 million year-over-year.

• Net interest income declined $835,000 for the quarter and $2.3 million for the six months, reflecting intentional loan portfolio reduction to strengthen capital ratios.

• Total assets decreased by $82.3 million to $930.0 million as of June 30, 2025, primarily due to a $119.9 million decline in gross loans.

• Completed a $57.8 million private placement and a $10.7 million registered direct offering, significantly increasing equity and capital ratios.

Financial highlights

• Net interest margin was 1.85% for Q2 2025, down from 2.14% in Q2 2024; six-month margin was 1.74% versus 2.17% prior year.

• Non-interest income was $2.0 million for Q2 2025, flat year-over-year; six-month non-interest income rose to $4.8 million, driven by Digital Payments Division.

• Non-interest expense increased to $9.7 million for Q2 2025, up from $8.0 million, mainly due to higher salaries and operating costs.

• Allowance for credit losses (ACL) was $7.8 million (1.33% of loans) at June 30, 2025, compared to $15.0 million (1.93%) a year earlier.

• Non-performing assets were $26.8 million (2.89% of assets), with non-accrual loans at $24.2 million.

Outlook and guidance

• Management continues to restrict loan growth and allow paydowns to strengthen capital ratios.

• The company expects the impact of the One Big Beautiful Bill Act to be immaterial.

• No dividends planned; focus remains on capital preservation and regulatory compliance.