Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 123

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 123
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 seller a $2.0 million, nine-year, promissory note bearing interest at a fixed rate of 1.75% per annum. As of June 30, 2025 and December 31, 2024, the outstanding balance on the note was $54,000 and $162,000, respectively.  The note is secured by a first Mortgage Deed and Security Agreement on the purchased property. The note originally set to mature in August 2024, was extended from August 25, 2024 to September 1, 2025, with the Bank continuing its scheduled principal and interest payments. The note is secured by a first mortgage deed and security agreement on the purchased property.

For the three and six months ended June 30, 2025, the Company recognized interest expense of nil and $1,000, respectively. Interest expense incurred for the three and six months ended June 30, 2024 was $2,000 and $3,000, respectively. 

Derivatives

As of June 30, 2025, Patriot has two interest rate swaps (“swaps”). One swap is with a loan customer to provide a facility to mitigate the fluctuations in the variable rate on the respective loan. The other swap is with an outside third party. The customer interest rate swap is matched in offsetting terms to the third party interest rate swap. The swaps are reported at fair value in other assets or other liabilities on the consolidated balance sheets. Patriot’s swaps are derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other noninterest income. The Company recognized no gain on the swaps for the three and six months ended June 30, 2025 and 2024.

Further discussion of the fair value of derivatives is set forth in Note 7 Derivatives to the Consolidated Financial Statements.

Equity

Equity increased $61.9 million, from $4.3 million at December 31, 2024 to $66.2 million at June 30, 2025. This increase was primarily due to a net capital raise of $57.75 million from the Private Placement on March 20, 2025, and a net proceeds of  $10.47 million from a registered direct offering on June 3, 2025, and a net unrealized gain in investments of $2.2 million, partially offset by a net loss of $7.8 million