Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 168

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 168
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 $463 Collectively evaluated loans1,838 596 1,017 3,386 5 — 6,842 Total allowance for credit losses$2,241 $596 $1,077 $3,386 $5 $— $7,305 Loans receivable, gross:Individually evaluated loans$19,335 $— $3,323 $— $— $2,357 $25,015 Collectively evaluated loans400,154 92,215 126,285 59,973 3,830 — 682,457 Total loans receivable, gross$419,489 $92,215 $129,608 $59,973 $3,830 $2,357 $707,472 Patriot monitors the credit quality of its loans receivable on an ongoing basis. Credit quality is monitored by reviewing certain indicators, including covenant compliance, cash flow from business operations, loan to value ratios, debt service coverage ratios, and credit scores.Patriot employs a risk rating system as part of the risk assessment of its loan portfolio. At origination, credit officers are required to assign a risk rating to each loan in their portfolio, which is ratified or modified by the Internal Asset Review Committee (“IARC”) to which the loan is submitted for approval. If developments occur on a loan that manifest as potential or well-defined weaknesses, in the credit officer’s portfolio of responsibility, the risk rating is reviewed and adjusted, as applicable. In carrying out its oversight responsibilities, the IARC can adjust a risk rating based on available information from the borrower and from asset valuations in the market. In addition, the risk ratings on all commercial loans over $250,000 are reviewed by the IARC annually.The IARC ensures the Bank identifies, monitors, and reports credit risk accurately and in a timely manner.  IARC is charged with oversight of the Bank’s programs for monitoring, reviewing and dispositioning of the loan portfolio. IARC is responsible for ensuring that risk ratings are updated in a timely fashion, are accurate and that appropriate changes are made anytime there is a significant occurrence with a credit. IARC meets at least quarterly and reviews emerging risk trends with a focus toward the mitigation of risk, improvement of operations, and compliance with regulatory guidance and the Bank's risk appetite.

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Table of ContentsPATRIOT NATIONAL BANCORP, INC. AND SUBSIDIAR