Company: PNBK
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001628280-25-017837
Chunk: 89

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 89
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 dates indicated:

December 31,(In thousands)202420232022Non-accruing loans:Commercial Real Estate$19,334 $12,775 $11,241 Residential Real Estate109 — 2,470 Commercial and Industrial3,341 3,921 4,833 Consumer and Other730 977 49 Construction— 454 — Construction to Permanent - CRE2,357 — — Total non-accruing loans25,871 18,127 18,593 Loans past due over 90 days and still accruing— 341 1,155 Other real estate owned2,843 2,843 — Total nonperforming assets$28,714 $21,311 $19,748 Nonperforming assets to total assets2.84 %1.95 %1.89 %Nonperforming loans to total loans, net3.69 %2.22 %2.36 %

Non-accrual loans increased $7.7 million, from $18.1 million at December 31, 2023 to $25.9 million at December 31, 2024. The $25.9 million of non-accrual loans at December 31, 2024 was comprised of 335 borrowers. Of these, 14 loans were individually evaluated and a specific reserve of $463,000 was established as of December 31, 2024. For 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 OREO properties and for estimated selling costs to determine estimated impairment. For cash flow dependent loans, the Bank determined the reserve based on the present value of expected future cash flows discounted at the loan's effective interest rate. 

As of December 31, 2023, the $18.1 million of non-accrual loans was comprised of 139 borrowers. Of these, 19 loans were individually evaluated and a specific reserve of $4.2 million was established. 

Loans held for sale

As of December 31, 2024, loans held for sale totaled $15.7 million, consisting of nil of SBA loans, $11.4 million loans held for sale for digital payments of credit cards and $4.3 million residential mortgage loans held for sale. In comparison, at December 31,