Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 195

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 195
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 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 noninterest income. The Company recognized no gain on the swaps for the three months ended March 31, 2025 and 2024.

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

Equity

Equity increased $52.9 million, from $4.3 million at December 31, 2024 to $57.1 million at March 31, 2025. This increase was primarily due to a net capital raise of $54.0 million from the Private Placement on March 20, 2025 which was net of issuance costs, and a net unrealized gain in investments of $1.4 million, partially offset by a net loss of $2.8 million for the three months ended March 31, 2025.

Off-Balance Sheet Commitments

The Company’s off-balance sheet commitments primarily consist of commitments to lend of $80.8 million and $87.6 million as of March 31, 2025 and December 31, 2024, respectively.

As of March 31, 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.

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Average Balances 

The following tables present daily average balance sheets, interest income, interest expense and the corresponding yields earned and rates paid for the three months ended March 31, 2025 and 2024:

(In thousands)Three Months Ended March 31,20252024Average BalanceInterestYieldAverage BalanceInterestYieldAssetsInterest earning assets:Loans$710,481 $9,980 5.70 %$841,077 $12,648 6.03 %Investments86,594 575 2.66 %97,012 732 3.02