Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 15

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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59,662 $79,992 

Note 4.    Loans Receivable and Allowance for Credit Losses 

As of June 30, 2025 and December 31, 2024, loans receivable, net, consisted of the following:(In thousands)June 30, 2025December 31, 2024Loan portfolio segment:Commercial Real Estate$370,376 $419,489 Residential Real Estate60,123 92,215 Commercial and Industrial122,161 129,608 Consumer and Other33,363 59,973 Construction1,494 3,830 Construction to Permanent - CRE31 2,357 Loans receivable, gross587,548 707,472 Allowance for credit losses(7,795)(7,305)Loans receivable, net$579,753 $700,167 

13

Table of ContentsPATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited)

Patriot's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York, and the five Boroughs of New York City.  Patriot originates on a limited basis commercial real estate loans, commercial business loans, consumer loans, and construction loans, and has purchased residential loans since 2016. All commercial and residential real estate loans are collateralized primarily by first or second mortgages on real estate. The ability and willingness of borrowers to satisfy their loan obligations is dependent to some degree on the status of the regional economy as well as upon the regional real estate market. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio and the recovery of a substantial portion of any resulting real estate acquired is susceptible to changes in market conditions.Patriot has established credit policies applicable to each type of lending activity in which it engages and evaluates the creditworthiness of each borrower. Unless extenuating circumstances exist, Patriot limits the extension of credit on commercial real estate loans to 75% of the market value of the underlying collateral. Patriot’s loan origination policy for multi-family residential real estate is limited to 80% of the market value of the underlying collateral. In the case of construction loans, the maximum loan-to-value is 75% of the “as completed” appraised value of the real estate project. Management monitors the appraised value of collateral on an on-going basis and additional collateral is