Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 162

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 162
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 suspend its status as a participant in SBA’s Preferred Lender Program (“PLP”). This decision was made in response to the Bank’s desire to temporarily exit the SBA lending business and the Bank’s Definitive Agreement with the Office of the Comptroller of the Currency (“OCC”). It is possible that the Bank will determine in the future that it is prudent to petition to the SBA for reinstatement in the PLP.Consumer LoansConsumer loans carry a moderate degree of risk compared to other loans. They are generally more risky than traditional residential real estate loans, and carry generally low relative balances across a diverse borrowing pool. Probability of default is assessed based on FICO scores, debt to income ratios, historical loss rates other common consumer loan 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