Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 130

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 130
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 September 30, 2025, Patriot has two interest rate swaps (“swaps”). One swap is with a loan customer to provide a facility to mitigate the fluctuations in the variable rate on the respective loan. The other swap is with an outside third party. The customer interest rate swap is matched in offsetting terms to the third party interest rate swap. The swaps are reported at fair value in other assets or other liabilities on the consolidated balance sheets. Patriot’s swaps are derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest income. The Company recognized no gain on the swaps for the three and nine months ended September 30, 2025 and 2024.

Further discussion of the fair value of derivatives is set forth in Note 7 Derivatives to the Consolidated Financial Statements.

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Equity

Equity increased $90.8 million, from $4.3 million at December 31, 2024 to $95.0 million at September 30, 2025. This increase was primarily due to a net capital raise of $57.75 million from the Private Placement on March 20, 2025, net proceeds of $10.47 million from a registered direct offering on June 3, 2025, net proceeds of $24.0 million from a registered direct offering on September 2, 2025, and a net reduction  of $3.8 million in net unrealized losses on securities, partially offset by a net loss of $10.4 million for the nine months ended September 30, 2025.

Off-Balance Sheet Commitments

The Company’s off-balance sheet commitments primarily consist of commitments to lend of $48.7 million and $87.6 million as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025, the Bank has an irrevocable stand-by letter of credit for a maximum of $45 million, issued by the Federal Home Loan Bank of Boston on behalf of the Bank, with Mastercard as the beneficiary. This letter of credit was originally set to expire on April 30, 2025, but in April 2025, the expiration date was extended to April 30, 2026.

65

Average Balances 

The following tables present daily average balance sheets, interest income, interest expense and the corresponding yields earned and rates paid