Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 182

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 182
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 which amount is expected to be recognized over the weighted average remaining life of the awards of 1.82 years.Stock Options On June 26, 2025, the Company granted stock options to purchase 400,000 shares of common stock at an exercise price of $1.40 per share. The options vest and become exercisable starting on the grant date, subject to the terms and conditions outlined in the Stock Option Plan and Award Agreement, including any applicable acceleration provisions.The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation—Stock Compensation." The fair value of the stock options granted is estimated on the grant date using an appropriate valuation model, such as the Black-Scholes model, and is recognized as an expense over the vesting period. Key assumptions used in estimating the fair value of the options include the expected volatility of the Company's stock, the risk-free interest rate, the expected dividend yield, and the expected term of the options. These assumptions are based on historical data and market conditions at the time of the grant.The total estimated compensation expense related to these stock options of $44,000 was recognized as of June 30, 2025 impacting the Company's Consolidated Financial Statements. The expense is recorded in the employee compensation costs on the Consolidated Statements of Operations.

DividendsThe Company has not paid any dividends since 2020 and has no present plans to pay dividends.Retirement PlanPatriot offers employees participation in the Patriot Bank, N.A. 401(k) Savings Plan (the "401(k) Plan") under Section 401(k) of the Internal Revenue Code, along with the ROTH feature to the Plan. The 401(k) Plan covers substantially all employees who have completed one month of service, are 21 years of age and who elect to participate. Under the terms of the 401(k) Plan, participants can contribute up to the maximum amount allowed, subject to Federal limitations. At its discretion, Patriot may match eligible participating employee contributions at the rate of 50% of the first 6% of the participants’ salary contributed to the 401(k) Plan. During the three and six months ended June 30, 2025, Patriot made matching contributions to the 401(k) Plan of $55,000 and $147,000, respectively. During the three and six months ended June 30, 2024, compensation expense under the 401(k) aggregated $88,000 and $168,000, respectively.

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