Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 39

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 $11.4 million, respectively. The credit card loans are expected to be held for no longer than three days before being sold to the buyer. The credit card loans are fully cash-secured by deposits at Patriot. The credit card loans are sold to the buyer as a whole loan sale transaction, priced at par, thus there is no servicing asset or gain or loss on sale.Loans held for sale Residential Mortgage Loans In the second quarter of 2025, the Bank exited the residential mortgage origination business. As of June 30, 2025 and December 31, 2024, the Company reported residential mortgage loans held for sale totaling $283,000 and $4.3 million, respectively. These loans are recorded at the lower of aggregate cost or market value. For the three and six months ended June 30, 2025, a total gain on sale of $43,000 and $79,000 was recorded, respectively. A servicing asset of $62,000 was recognized for the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, a total gain on sale of $10,000 was recorded and no servicing asset was recognized. During the three and six months ended June 30, 2025, $3.8 million residential mortgage loans previously classified as held for sale were transferred to held for investment. No residential mortgage held for sale loans were transferred to held for investment in the three and six months ended June 30, 2024.

The following table presents an analysis of the activity in the servicing assets for SBA loans and residential mortgage loans for the three and six months ended June 30, 2025 and 2024:Three Month Ended June 30,Six Months Ended June 30,(In thousands)2025202420252024Beginning balance$764 $902 $766 $857 Servicing rights capitalized22 9 48 73 Servicing rights amortized(20)(15)(34)(34)Servicing rights disposed(20)(106)(34)(106)Ending balance$746 $790 $746 $790 

Note 6.    Deposits

The following table presents the balance of deposits held, by category as of June 30, 2025 and December 31, 2024:(In thousands)June 30, 2025December 31, 2024Non-interest bearing$106,950