Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 85

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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.6 million in book value and $78.7 million in discounted value of pledged collateral with the FHLB-B. The pledged collateral consisted of a mixture of residential and commercial real estate loans and lines of credit.  The maximum borrowing capacity is limited to the lesser of 5.00% of the Bank’s most recently reported Call Report total assets or the discount value of the pledged collateral. Accordingly, as of September 30, 2025 the Company’s maximum borrowing capacity with the FHLB-B is $48.0 million. Of this amount, $45.0 million was used by a standby letter of credit, as described further in Note 10 Financial Instruments with Off-Balance-Sheet Risk. Additionally, $250,000 of the maximum borrowing capacity was used by an overnight line of credit designed to cover the Bank for temporary overdraft positions. As of September 30, 2025 and December 31, 2024, no funds had been borrowed under the overnight line of credit.

FHLB-B advances are structured to facilitate the Bank’s management of its balance sheet and liquidity requirements. Outstanding advances from the FHLB-B decreased from $3.0 million at December 31, 2024 to zero at September 30, 2025.

Interest expense incurred for the three and nine months ended September 30, 2025 were nil and $3,000, respectively. Interest expense incurred for the three and nine months ended September 30, 2024 were $0.3 million and $1.0 million, respectively. 

61

Correspondent Bank - Line of Credit 

Patriot has entered into unsecured federal funds sweep and federal funds line of credit facility agreements with certain correspondent banks. As of September 30, 2025, no unsecured lines of credit were available. Borrowings available under the agreements totaled $5.0 million December 31, 2024. The purpose of the agreements is to provide a credit facility intended to satisfy overnight federal account balance requirements and to provide for daily settlement of Federal Reserve Bank (“FRB”), Automated Clearing House (“ACH”), and other clearinghouse transactions.

There was no outstanding balance under the agreements at September 30, 2025 and December 31, 2024. No Interest expense incurred for the three and nine months ended September 30, 2025. For three and nine months ended September 30, 2024, interest expense incurred was $2,000