Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 165

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 165
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 speeds, which management elected to discount in part to reflect the expectation of slower voluntary prepayments in the face of an increasing interest rate environment.Pursuant to guidance provided in OCC Bulletin 2020-49 and Interagency Policy Statement on Allowances for Credit Losses (May 8, 2020), the Bank introduced the use of qualitative factors (“Q-Factors”) in its ACL methodology and calculations in the second quarter of 2025. In the third quarter of 2025, management determined that Q-Factors would continue to be utilized in the ACL calculation.

The Company maintains an ACL on unfunded lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the ACL for loans, modified to take into account the probability of a drawdown on the commitment. The ACL on unfunded loan commitments is classified as a liability account on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these credit losses is recorded as a component of provision for credit losses. The allowance for credit losses on unfunded commitments was $54,000 at September 30, 2025 and $182,000 at December 31, 2024. 

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

The following tables summarize the activity in the allowance for credit losses, allocated to segments of the loan portfolio, for the three months ended September 30, 2025 and 2024:(In thousands)Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent - CRE Total Three Months Ended September 30, 2025Allowance for credit losses:June 30, 2025$2,436 $519 $1,785 $3,050 $5 $— $7,795 Charge-offs(144)— — (292)— — (436)Recoveries— 1 3 227 — — 231 Provisions (credits)212 285 1,642 (2,537)(5)— (403)(1)September 30, 2025$2,504 $805 $3,430 $448 $— $— $7,187 Three Months Ended September 30, 2024Allowance for credit losses:June 30,