Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 110

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 110
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 to $7.2 million for the three months ended March 31, 2024. The primary drivers of this increase were higher salaries and benefit expenses of $355,000, professional and other outside services of $240,000, regulatory assessments of $236,000, and an OREO expense of $253,000 which is included in other operating expense in the first quarter of 2025.

Provision for income taxes

The Company reported a provision for income taxes of $1,000 for the three months ended March 31, 2025, compared to a provision for income taxes of $66,000 for the three months ended March 31, 2024. 

Liquidity

The Company measures liquidity in two primary ratios: on-hand liquidity to total liabilities, and total liquidity to total liabilities.  On-hand liquidity is comprised of interest-bearing cash and cash equivalents and unpledged available-for-sale securities.  Total liquidity includes on-hand liquidity, plus total available credit lines, plus availability of brokered deposits which is subject to internal limitations.  The Company monitors other metrics in addition to on-hand liquidity and total liquidity to manage concentration risk in certain types of liabilities.

The Company's on-hand liquidity and total liquidity ratios as of March 31, 2025 and December 31, 2024, are as follows:

(In thousands)March 31, 2025December 31, 2024On-hand liquidityInterest-bearing cash and cash equivalents$118,505 $144,273 Available-for-sale securities, at fair value80,651 79,992 Less: pledged available-for-sale securities(80,651)(60,223)Total on-hand liquidity118,505 164,042 Borrowing capacityFHLB borrowing capacity50,602 48,692 FRB borrowing capacity67,174 64,742 Unsecured credit lines from correspondent banks— 5,000 Brokered deposit capacity69,683 69,702 Total borrowing capacity187,459 188,136 Less: used borrowing capacityFHLB capacity used (including the standby letter of credit)(45,517)(48,459)FRB capacity used— — Outstanding brokered deposits(69,683)(69,702)Total used borrowing capacity(115,200)(118,161)Total liquidity$190,764 $234,017 Total liabilities$899,466 $1,008,027 On-hand liquidity to total