Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 82

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 82
---
 evaluation is finalized.

The effective tax benefit rate for the three months ended September 30, 2025 was (0.19)%, compared to the effective tax provision rate for the three months ended September 30, 2024 of 1067.85%. The effective tax benefit and provision rates for the nine months ended September 30, 2025 and September 30, 2024 were (0.51)% and 363.40%, respectively. The Company’s effective rate for the three and nine months ended September 30, 2025 was affected by the change in the valuation allowance and for the three and nine months ended September 30, 2024 was affected by state taxes and non-deductible expenses and the full valuation allowance against all of the DTAs in the third quarter of 2024.

As of September 30, 2025, Patriot had available approximately $48.9 million of Federal net operating loss carryforwards (“NOL”) that are offset by $15.5 million in §382 limitations imposed by the Internal Revenue Code. After applying the limitation, Patriot has $33.4 million post-change NOL which do not expire. Patriot has not performed an analysis on the post-change NOL, but the potential impact of any additional limitation would not be material to the financial statements due to the fact that the NOL are fully offset by a valuation allowance.

Patriot has approximately $63.5 million of NOLs available for Connecticut tax purposes at September 30, 2025, which may be used to offset up to 50% of taxable income in any year. Approximately $63.2 million of the NOL will expire between 2030 and 2044 and approximately $3.3 million of the NOL will expire beginning in 2055.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our Consolidated Financial Statements.

59

Deposits

The following table is a summary of the Company’s deposits at the dates shown:

(In thousands)September 30,December 31,