PNBK earnings analysis
What we found in PNBK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
PNBK’s second quarter showed a substantial operating improvement: net income was $143 thousand versus a $5.001 million prior-year loss, while net interest income rose 114% to $8.957 million and net loans grew 50% to $877.440 million. However, the result benefited from a $1.5 million income-tax benefit, including a $1.2 million deferred-tax valuation-allowance release, and the balance sheet is carrying higher credit, liquidity and fair-value risks. The OCC Agreement termination and well-capitalized ratios are positive, but the material weakness remains unresolved and the credit-card program generated a $5.451 million valuation allowance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Returned to Quarterly Profitability
- The Company reported net income of $143 thousand, or $0.00 diluted EPS, versus a $5.001 million net loss and $(0.06) diluted EPS in the prior-year quarter. Six-month net loss improved to $1.612 million from $7.778 million, and diluted EPS improved to $(0.01) from $(0.17).
- Net Interest Income Surged
- Net interest income increased 114% year over year to $8.957 million from $4.188 million, driven by loan growth and higher-yielding investment securities. Net interest margin improved to 3.03% from 1.85%.
- Loan Portfolio Expanded Rapidly
- Net loans receivable increased 50% to $877.440 million from $585.723 million at December 31, 2025, led by commercial real estate loans of $487.265 million and residential real estate loans of $201.153 million.
- Digital Payments Revenue Grew
- Digital Payments income increased to $2.557 million from $2.108 million year over year, while six-month Digital Payments income rose to $5.345 million from $3.866 million.
- Regulatory Agreement Terminated
- The OCC terminated the Formal Agreement on June 30, 2026. The Bank reported a 14.15% total risk-based capital ratio, a 13.22% common equity Tier 1 ratio and a 9.60% Tier 1 leverage ratio at quarter-end.
- Deposit Growth Funded Expansion
- Deposits increased to $1.201 billion from $965.786 million at year-end, including a $235.161 million increase in six-month financing cash flow. Brokered deposits declined to $31.907 million from $54.683 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Credit-Card Program Losses and Litigation
- The Company recorded a $5.451 million valuation allowance on credit-card receivables that remained held for sale after an anticipated sale failed to close; the portfolio’s carrying value was approximately $14.592 million at June 30, 2026. The Company is pursuing additional remedies but recognized no potential recoveries from them.
- Material Weakness Remains Open
- Disclosure controls remained ineffective as of June 30, 2026 because management had not completed testing needed to conclude that the previously disclosed material weakness was remediated. The weakness includes deficiencies in information-technology controls, financial close and reconciliation controls, and third-party and digital-payments controls.
- Liquidity Buffer Contracted
- On-hand liquidity declined to $221.966 million from $393.519 million at year-end, and on-hand liquidity to total liabilities fell to 18.06% from 39.62%. Management attributed the reduction to deploying cash into loans and securities, although total liquidity remained $502.553 million.
- Concentrated Commercial Credit Risk
- Non-accrual loans were $25.039 million at June 30, 2026, including $11.422 million of commercial real estate loans and $12.654 million of commercial and industrial loans. Commercial real estate and commercial and industrial loans represented 76.4% of gross loans, and CRE concentration was 289% of Tier 1 capital plus allowance for credit losses.
- Expanded Third-Party Risk Exposure
- The filing added an expanded third-party-risk disclosure covering program managers, fintech providers and other counterparties. The risk is illustrated by the $5.338 million of program-manager deposits applied under indemnification and setoff rights and a maximum $70.5 million standby letter of credit issued for Mastercard.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.0
- Segment
- Banking: the Company’s sole reportable segment; total assets were $1.318 billion at June 30, 2026 versus $1.088 billion at December 31, 2025.
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 15, 2026
- Patriot National Bancorp, Inc. reported a Q1 2026 net loss of $1.755 million, or $(0.02) per share, indicating an improvement from a loss of $2.777 million in Q1 2025. Revenue increased to $9.511 million, with net…
- 10-K · March 31, 2026
- The 2025 Form 10-K describes a broad strategic repositioning following a January 17, 2025 Formal Agreement with the OCC, with management refocusing the Bank on relationship-driven banking, institutional/digital…
- 10-Q · May 14, 2025
- PNBK reported a net loss of $2.777 million (basic loss per share $0.21) for the quarter ended March 31, 2025, driven by lower net interest income and elevated non-interest expense. The company completed equity…
- 10-Q · November 19, 2024
- Patriot National Bancorp reported Q3 revenue (net interest income + non‑interest income) of $7,114,000 and a net loss of $(26,954,000), producing a basic loss per share of $(6.78). Results were driven by a large quarter…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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