Company: PNBK
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001628280-25-017837
Chunk: 6

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 6
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 the quantitative model. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.

Our audit procedures related to management’s determination of reasonable and supportable forecasts, prepayment speeds, the LGD floor, and qualitative factors applied to the quantitative model included the following:

-We obtained an understanding and tested the relevant controls for design and operating effectiveness related to management’s determination of reasonable and supportable forecasts, prepayment speeds, the LGD floor, and qualitative factors applied to the quantitative model.

-We tested the completeness and accuracy of data used by management in determining the selection and weighting of reasonable and supportable economic forecast scenarios by agreeing on a sample basis the underlying data and components to their appropriate internal or external sources.

-We evaluated the completeness and accuracy of data and assessed assumptions used by management in determining the prepayment speeds used in its calculation of PD and LGD by agreeing the underlying data to internal sources.

-We evaluated the completeness and accuracy of data and assessed assumptions used by management in determining the application of a minimum LGD floor in the calculation of LGD by agreeing the underlying data to internal and external sources.

-We tested the completeness and accuracy of data used by management in determining the qualitative factor adjustments to the quantitative model by agreeing the underlying data to appropriate internal and external sources.  

-We evaluated management’s determination of the magnitude and extent of qualitative factors applied to the model for reasonableness in relation to the underlying data tested.

/s/ RSM US LLP

We have served as the Company’s auditor since 2017.

Hartford, Connecticut

April 15, 2025

44

Table of ContentsPATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS 

December 31,(In thousands, except share data)20242023AssetsCash and due from banks:Noninterest bearing deposits and cash$3,295 $2,195 Interest bearing deposits144,273 50,322 Restricted cash15,042 14,019 Total cash, cash equivalents and restricted cash162,610 66,536 Investment securities:Available-for-sale securities, at fair value79,992 89,187 Other investments, at cost4,450 4,450 Total investment securities84,442 93,637 Federal Reserve Bank (FRB) stock, at cost1,377 2,090 Federal Home Loan Bank (FHLB) stock, at cost779 4,202