Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 30

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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,442 13,363 Residential Real Estate: Substandard — — 109 109 — 109 Commercial and Industrial: Pass— — 2,349 2,349 — 2,349 Substandard 2 — 978 980 12 992 Consumer and Other: Substandard — 6 724 730 — 730 Construction to permanent - CRE:Substandard— — 2,357 2,357 — 2,357 Total non-accruing loans $976 $6 $18,925 $19,907 $5,964 $25,871 The accrual of interest on loans is discontinued at the time the loan is 90 days past due for payment unless the loan is well-secured and in process of collection. Consumer installment loans are typically charged-off when they become 120 days past due (180 days for open ended consumer credit). Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off, at an earlier date, if collection of principal or interest is considered doubtful.All interest accrued, but not collected for loans that are placed on non-accrual status or charged-off, is reversed against interest income. The interest on these loans is generally accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, after at least six months of timely payment history. The Bank considers loans under $100,000 and consumer installment loans to be pools of smaller homogeneous loan balances, and therefore are collectively evaluated for credit losses, and not individually evaluated for credit losses.

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

If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income (net of cash collected) of approximately $1.2 million and $573,000 would have been recognized during the three months ended March 31, 2025 and 2024, respectively. Interest income collected and recognized on non-accruing loans for the three months ended March 31, 2025 and 2024 was $18,000 and $20,000