Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 20

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 metrics. In September 30, 2025, the bank sold a portfolio of 1,092 individual unsecured consumer loans purchased under a program from a third party with unpaid principal balance of $9 million. The sale reduced the Bank’s consumer loan exposure and loans outstanding under this program at September 30, 2025 and December 31, 2024 totaled $1.0 million and $20.7 million respectively. During the three and nine months ended September 30, 2025, the Bank sold $9.0 million of loans previously purchased under this program.  No loans were sold during the three and nine months ended September 30, 2024.

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

The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories that are typically characterized by payment delinquencies, previous charge-offs, judgments against the consumer, a history of bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burdened ratios.During the three and nine months ended September 30, 2025 and 2024, Patriot did not purchase any home equity line of credit loans (“HELOC”). During the three and nine months ended September 30, 2025, the Bank sold $0.0 and $15.9 million, respectively, of HELOCs.Construction LoansNo construction loans were outstanding at September 30, 2025. The Bank currently does not offer a construction lending product.New Lending ProgramsDuring the third quarter of 2025, the Bank re-started its loan origination activities and implemented three targeted lending initiatives designed to prudently diversify revenue and strengthen relationship banking among high-quality entrepreneurial borrowers. These programs are fully aligned with the Bank’s credit risk appetite, underwriting standards, and its overall strategic plan.   At this time, no other commercial loan products are offered to our customers.   As the successful implementation of these new lending programs progresses and matures, the Bank continues to evaluate additional commercial lending products consistent with its strategic plan and risk appetite. Unsecured Line of Credit Program In the third quarter of 2025, the Bank introduced a tailored unsecured line of credit product for qualifying clients. The facility provides short-term liquidity for qualified borrowers with substantial financial strength and established deposit or relationship history with the Bank