Patriot National Bancorp Reports $2.8 Million Net Loss in Q1 2025

Patriot National Bancorp, Inc. reported a net loss of $2.8 million, or $0.21 per share, for the first quarter of 2025, a significant increase from a net loss of $299,000, or $0.08 per share, in the same period last year. The company's total interest income decreased to $12.5 million from $14.0 million, primarily due to a decline in loan balances, which fell by $33.3 million to $674.2 million as of March 31, 2025. This reduction in loans is part of a strategic decision to strengthen capital ratios by limiting loan growth and allowing existing loans to pay down.

In terms of financial position, total assets decreased to $956.6 million from $1.01 billion at the end of 2024, largely driven by a $26.4 million decline in cash and cash equivalents. The company’s total deposits also fell by $104.2 million, from $966.6 million to $862.4 million, attributed to a significant reduction in deposits sold through the IntraFi network. The decrease in deposits was offset by cash received from the issuance of common and preferred stock during a private placement that raised approximately $57.75 million on March 20, 2025.

Operationally, Patriot National Bancorp has made strategic moves to enhance its capital structure. The recent private placement included the issuance of 60.4 million shares of common stock and 90,832 shares of Series A Preferred Stock, which are convertible into 7.27 million shares of common stock. This capital infusion has improved the company's capital ratios, exceeding the minimum requirements set by the Office of the Comptroller of the Currency (OCC). As of March 31, 2025, the company reported a common equity tier 1 capital ratio of 10.58%, compared to 3.48% at the end of 2024.

The company’s allowance for credit losses decreased to $6.7 million, or 1.00% of gross loans, down from $7.3 million, reflecting a reduction in loan balances and charge-offs. Non-accrual loans increased to $29.7 million, compared to $25.9 million at the end of 2024, indicating ongoing challenges in credit quality. The company continues to monitor its loan portfolio closely, particularly in higher-risk areas, as it navigates the current economic environment. Looking ahead, Patriot National Bancorp aims to maintain its focus on strengthening capital ratios while managing credit risk effectively.