Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 80

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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 2025December 31, 2024Non-accruing loans:Commercial Real Estate$20,109 $19,334 Residential Real Estate57 109 Commercial and Industrial5,463 3,341 Consumer and Other310 730 Construction to Permanent - CRE31 2,357 Total non-accruing loans25,970 25,871 Other real estate owned$— $2,843 Total nonperforming assets$25,970 $28,714 Nonperforming assets to total assets2.73 %2.84 %Nonperforming loans to total loans, net4.47 %3.69 %

As of September 30, 2025, non-accrual loans decreased to $26.0 million, compared to $28.7 million as of December 31, 2024. The non-accrual loans at September 30, 2025 was comprised of 177 borrowers. Of these, 20 loans were individually evaluated, and the specific reserve was $1.7 million. All individually evaluated loans were collateral dependent loans, the Bank has obtained appraisal reports from independent licensed appraisal firms and discounted those values based on the Bank’s experience selling Other Real Estate Owned (“OREO”) properties and for estimated selling costs to determine estimated impairment. No individually evaluated loans were cash flow dependent loans.

As of December 31, 2024, the $28.7 million of non-accrual loans was comprised of 335 borrowers. Of which, 14 loans were individually evaluated, and a specific reserve of $0.5 million was established. 

Loans held for sale

SBA loans held for sale totaled zero as of September 30, 2025 and December 31, 2024. SBA loans held for sale represent the guaranteed portion of SBA loans and are reflected at the lower of aggregate cost or market value. 

As of September 30, 2025 and December 31, 2024, the credit card loans held for sale from Digital Payments division totaled $18.4 million and $11.4 million, respectively. The credit card loans are expected to be held for no longer than three days before being sold. The credit card receivable are fully cash-secured by deposits at Patriot. The credit card loans are sold to the third party as a whole loan sale transaction, priced at Par, thus there is no servicing asset or gain or loss