Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 199

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 199
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-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 liabilities13.18 %16.27 %Total liquidity to total liabilities21.21 %23.22 %

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On-hand liquidity decreased $45.5 million from December 31, 2024 to March 31, 2025 primarily driven by lower cash balances maintained as of March 31, 2025 after the completion of the Private Placement as the risk of deposit flight subsided.  

Liquidity is a measure of the Company’s ability to generate adequate cash to meet its financial obligations. The principal cash requirements of a financial institution are to cover downward fluctuations in deposit accounts. Management believes the Company’s liquid assets are sufficient to cover probable and reasonable fluctuations in deposit accounts, and to meet other anticipated operational cash requirements at the Bank. 

The Private Placement on March 20, 2025, provided additional liquidity to both the Bank and the Company and alleviated the liquidity risk.  The Private Placement provided additional operating cash to the Bank and the Company and the amendment of the Company’s Senior Notes deferred interest payments until 2026 and extended the maturity to April 15, 2028 and the amendment of the Company’s Subordinated Notes deferred interest payment until 2026.

Net cash provided by operating activities decreased by $7.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.  Within this activity there was a decrease in