Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 200

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 200
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 originations of loans held for sale and proceeds from sale of assets held for sale.  This activity is primarily related to the Digital Payments Division credit card loans.  This program started in the third quarter of 2023 and continues today.  The activity generates non-interest income and only requires short term liquidity as the loans are originated and expected to be sold within three days.  

Net cash provided by investing activities decreased by $9.2 million for the three months ended March 31, 2025 compared to the compared to the three months ended March 31, 2024.  The decrease is primarily due to lower payments received on loans receivable as the loan portfolio has been running off.  

Net cash provided by financing activities decreased by $35.8 million for the three months ended March 31, 2025 compared to the compared to the three months ended March 31, 2024.  The decrease is primarily due to utilizing the proceeds from the Common and Preferred stock issuances and excess cash to lower deposits.  This was offset by lower repayments on FHLB advances, net as the Bank did not require as much FHLB funding due to the net cash provided by lower loan originations and loan purchases. 

Management manages its capital resources by seeking to maintain a capital structure that will ensure an adequate level of capital to support anticipated asset growth and absorb potential losses while effectively leveraging capital to enhance profitability and return to shareholders. Dividends have not been paid to shareholders since 2020.

The primary source of liquidity at the Company is returns of capital from the Bank. The Private Placement provided liquidity to the Company for future debt service and payment of expenses.  The capital returns from the Bank are subject to OCC approval and are needed periodically to provide funds needed to service debt payments at the Company.

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Regulatory Capital Requirements

The following tables illustrate the Company’s and the Bank’s regulatory capital ratios at March 31, 2025 and December 31, 2024:                                                

March 31, 2025December 31, 2024Patriot National Bancorp, Inc.Patriot Bank, N.A.Patriot National Bancorp, Inc.Patriot Bank, N.A.(Dollar amounts in thousands)AmountRatioAmountRatioAmountRatioAmountRatioTotal Capital (to risk weighted assets)$93,939 13.41 %$98,985 14.13 %$44,534 6.07 %$56,