Patriot National Bancorp Reports $39.9 Million Net Loss and Decline in Financial Performance for 2024

Patriot National Bancorp, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with a net loss of $39.9 million, compared to a net loss of $4.2 million in the previous year. This resulted in a basic and diluted loss per share of $10.03, a substantial increase from the prior year's loss of $1.05 per share. The company's total assets decreased by 7.4%, from $1.09 billion in 2023 to $1.01 billion in 2024, primarily driven by a $141.4 million decline in gross loans held for investment. The decrease in loans was partially offset by a significant increase in cash and cash equivalents, which rose by 144.4% to $162.6 million.

The company’s revenue streams were adversely affected, with interest and dividend income decreasing by $6.6 million to $52.4 million, largely due to a reduction in average loan balances. Net interest income also fell to $20.1 million from $28.5 million in 2023, reflecting a narrower net interest margin attributed to higher deposit costs and an increase in nonaccrual loans. The provision for credit losses increased to $12.5 million, up from $7.4 million in the previous year, as the company continued to manage its credit exposure amid challenging economic conditions.

In terms of strategic developments, Patriot National Bancorp completed a $57.75 million private placement on March 20, 2025, which included the issuance of common and preferred stock. This capital raise is expected to enhance the company's liquidity and support its operations moving forward. The company also reentered the residential mortgage business in 2024, establishing a mortgage origination unit in Jacksonville, Florida, which is anticipated to contribute to future revenue growth.

Operationally, the bank's total deposits increased by $126.3 million to $966.6 million, driven by growth in its Digital Payments Division and an increase in brokered deposits. However, the bank's regulatory capital ratios fell below the required minimums, prompting an agreement with the Office of the Comptroller of the Currency (OCC) to implement a capital plan aimed at addressing these deficiencies. As of December 31, 2024, the bank's common equity tier 1 capital ratio was 7.58%, below the required 10.00%.

Looking ahead, the company aims to stabilize its financial position by focusing on improving its capital ratios and managing its loan portfolio more conservatively. The recent capital raise and strategic initiatives, including the expansion into residential mortgages, are expected to provide a foundation for recovery. However, the ongoing economic environment and regulatory pressures will continue to pose challenges as the company navigates its path forward.