Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 17

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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ied CRE and Owner-Occupied CRE. Non-Owner-Occupied CRE loans are typically repaid with resources primarily generated by rents from leases to third party tenants. Non-Owner-Occupied CRE is dependent upon successful management, marketing and expense supervision necessary to maintain the property. Repayment of these loans may be adversely affected by conditions in the real estate market or the general economy. Owner-Occupied CRE loans are utilized by a business for the purpose of providing the space needs for that business and the running of its operations.  Repayment is dependent on the cash flow and successful operations of the business. Repayment of these loans may be adversely affected by conditions in the specific owner’s industry in addition to the general economy.During the three and six months ended June 30, 2025 and 2024, Patriot did not purchase any commercial real estate loans. 

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

Residential Real Estate LoansPatriot’s residential real estate loan portfolio consists primarily of purchased residential loans. The repayment of residential real estate loans, as well as the loans secured by residential real estate, may be negatively impacted if borrowers experience financial difficulties, if there is a significant decline in the value of the property securing the loan, or if there are declines in general economic conditions. During the three and six months ended June 30, 2025, Patriot purchased $92,000 and $178,000 residential real estate loans, respectively. During the three and six months ended June 30, 2024, Patriot purchased $38,000 and $86,000 of residential real estate loans, respectively.  During the three and six months ended June 30, 2025, the Bank sold $28.9 million of purchased residential loans.Commercial and Industrial LoansPatriot’s commercial and industrial loan portfolio consists primarily of commercial business loans and lines of credit to businesses and professionals. These loans are generally for the financing of accounts receivable, purchases of inventory, purchases of new or used equipment, or for other short- or long-term working capital purposes – and in some cases to finance the CRE and physical buildings used by companies to carry out their business activities. These loans are generally secured by business assets but are also occasionally offered on an unsecured basis. In granting these types of loans, Patriot considers the borrower’s cash flow as the primary source of repayment, supported by the value of collateral