Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 136

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 136
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 2025, respectively, compared to a provision for income taxes of $24.6 million and $23.8 million for the three and nine months ended September 30, 2024, respectively.

69

Liquidity

The Company measures liquidity in two primary ratios: on-hand liquidity to total liabilities, and total liquidity to total liabilities.  On-hand liquidity is comprised of interest-bearing cash and cash equivalents and unpledged available-for-sale securities.  Total liquidity includes on-hand liquidity, plus total available credit lines, plus availability of brokered deposits which is subject to internal limitations.  The Company monitors other metrics in addition to on-hand liquidity and total liquidity to manage concentration risk in certain types of liabilities.

The Company's on-hand liquidity and total liquidity ratios as of September 30, 2025 and December 31, 2024, are as 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.