Company: PNBK
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001628280-25-017837
Chunk: 105

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 105
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 the Digital Payments Division credit card loans.  This program started in the third quarter of 2023 and continues today.  The activity generates non-interest income and only requires short term liquidity as the loans are originated and expected to be sold within three days.

Net cash provided by investing activities increased by $162.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.  The increase is primarily due to lower originations of loans receivable and purchases of loans receivable as the Company is focused on lowering total assets to improve the Company's capital ratios.

Net cash provided by financing activities decreased by $107.6 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.  The decrease is primarily due to activity in proceeds from FRB and correspondent bank borrowings and repayments of FRB and correspondent bank borrowings.  The Company did not require as much funding from FRB and correspondent bank borrowings due to the net cash provided by lower loan originations and loan purchases.

As of December 31, 2024, the maturities of Patriot’s contractual obligations are as follows:

(In thousands)Contractual Obligations DueContractual Obligation CategoryLess than One YearOne to Three YearsThree to Five YearsOver Five YearsTotalCertificates of deposit$198,260 $40,785 $328 $— $239,373 Brokered deposits14,959 54,743 — — 69,702 FHB, FRB and correspondent bank borrowings3,000 — — — 3,000 Senior notes— 12,000 — — 12,000 Subordinated debt— — 10,000 — 10,000 Junior subordinated debt— — — 8,248 8,248 Note payable162 — — — 162 Operating lease obligations401 579 229 601 1,810 Total contractual obligations$216,782 $108,107 $10,557 $8,849 $344,295 

Management manages its capital resources by seeking to maintain a capital structure that will ensure an adequate level of capital to support anticipated asset growth and absorb potential losses while effectively leveraging capital to enhance profitability and return to shareholders. Dividends have not been paid to shareholders over the most recent three-year period but may resume in