Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 240

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 240
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 follows:

(In thousands)September 30, 2025December 31, 2024On-hand liquidityInterest-bearing cash and cash equivalents$178,889 $144,273 Available-for-sale securities, at fair value105,549 79,992 Less: pledged available-for-sale securities(14,017)(60,223)Total on-hand liquidity270,421 164,042 Borrowing capacityFHLB borrowing capacity78,723 48,692 FRB borrowing capacity8,584 64,742 Unsecured credit lines from correspondent banks— 5,000 Brokered deposit capacity58,316 69,702 Total borrowing capacity145,623 188,136 Less: used borrowing capacityFHLB capacity used (including the standby letter of credit)(45,671)(48,459)FRB capacity used— — Outstanding brokered deposits(58,316)(69,702)Total used borrowing capacity(103,987)(118,161)Total liquidity$312,057 $234,017 Total liabilities$855,731 $1,008,027 On-hand liquidity to total liabilities31.60 %16.27 %Total liquidity to total liabilities36.47 %23.22 %

On-hand liquidity increased $106.4 million from December 31, 2024 to September 30, 2025 primarily driven by higher cash balances maintained after the completion of the Private Placement as the risk of deposit flight subsided. 

Liquidity is a measure of the Company’s ability to generate adequate cash to meet its financial obligations. The principal cash requirements of a financial institution are to cover downward fluctuations in deposit accounts. Management believes the Company’s liquid assets are sufficient to cover probable and reasonable fluctuations in deposit accounts, and to meet other anticipated operational cash requirements at the Bank. 

The Private Placement on March 20, 2025 and August 29, 2025, provided additional liquidity to both the Bank and the Company and alleviated the liquidity risk. The Private Placement provided additional operating cash to the Bank and the Company.

Net cash provided by operating activities decreased by $15.4 million for the nine months ended September 30, 2025 compared to the three months ended September 30, 2024. Within this activity there was an increase in originations of loans held for sale and proceeds from sale of assets held for sale. This activity is primarily related to the Digital Payments Division credit card loans