Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 242

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 242
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117,701 19.27 %113,374 18.54 %33,545 4.57 %55,546 7.58 %Individual minimum capital ratio— — %61,154 10.00 %— — %73,309 10.00 %Common Equity Tier 1 Capital (to risk weighted assets)109,701 17.96 %113,374 18.54 %25,545 3.48 %55,546 7.58 %Individual minimum capital ratio— — %61,154 10.00 %— — %73,309 10.00 %Tier 1 Leverage Capital (to average assets)117,701 12.42 %113,374 11.95 %33,545 3.50 %55,546 5.79 %Individual minimum capital ratio— — %85,356 9.00 %— — %86,306 9.00 %

Capital adequacy is one of the most important factors used to determine the safety and soundness of individual banks and the banking system. Under the regulatory framework for prompt correction action, to be considered “well capitalized,” an institution must generally have a leverage capital ratio of at least 5.0%, Common Equity Tier 1 (“CET1”) capital ratio at least 6.5%, a Tier 1 risk-based capital ratio of at least 8.0% and a total risk-based capital ratio of at least 10%. However, the OCC has the discretion to require increased capital ratios. 

On April 17, 2024, based on its supervisory profile, the Bank was notified by the OCC that it established individual minimum capital ratios (“IMCR”) for the Bank. Specifically, the Bank is required to maintain the following ratios: a common equity tier 1 capital ratio of 10.00%, a Tier 1 capital ratio of 10.00%, a Tier 1 leverage ratio of 9.00% and a total capital ratio of 11.50%.

71

As of December 31, 2024, the Bank did not meet any of its regulatory capital requirements. 

On January 14, 2025, the Bank entered into an agreement with the OCC, pursuant to which the Bank agreed, through its board of directors to take certain actions in the areas of strategic