Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 63

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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83     Interest rate swap liability$— $83 $— $83 As of September 30, 2025 and December 31, 2024, four corporate bonds were classified as Level 3 instruments. The fair values of these securities were determined using a present value approach. The discount rate assumed was determined based on unobservable inputs in a pricing model. During the three and nine months ended September 30, 2025 and 2024, the Company had no transfers into or out of Levels 1, 2 or 3.The reconciliation of the beginning and ending balances during the three and nine months ended September 30, 2025 and 2024 for Level 3 available-for-sale securities is as follows:Three Months Ended September 30,Nine Months Ended September 30,(In thousands)2025202420252024Level 3 fair value, beginning of period$11,477 $10,365 $11,123 $10,262 Unrealized gain281 776 635 879 Level 3 fair value, end of period$11,758 $11,141 $11,758 $11,141 Patriot discloses fair value information about financial instruments, whether or not recognized in the consolidated balance sheet, for which it is practicable to estimate that value. Certain financial instruments are excluded from disclosure requirements and, accordingly, the aggregate fair value amounts presented do not necessarily represent the complete underlying value of financial instruments included in the Consolidated Financial Statements.

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

Patriot measures certain financial assets and financial liabilities at fair value on a non-recurring basis. When circumstances dictate (e.g., impairment of long-lived assets, other than temporary impairment of collateral value), the carrying values of such financial assets and financial liabilities are adjusted to fair value or fair value less costs to sell, as may be appropriate.The table below presents the valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis as of September 30, 2025 and December 31, 2024:(In thousands)Fair Value Valuation Methodology Unobservable Inputs Range of Inputs September 30, 2025: Individually evaluated loans, net$23,046 Real Estate AppraisalsDiscount for appraisal type8.0 %-20%