Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 42

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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855 $966,597 

32

Table of ContentsPATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited)

The deposits from Digital Payments Division are included in the non-interest-bearing deposits, interest bearing demand deposit accounts ("DDA") and money market deposits, and totaled approximately $236.9 million and $265.5 million as of September 30, 2025 and December 31, 2024, respectively.As of September 30, 2025, contractual maturities of Certificates of Deposit (“CDs”), and brokered deposits is summarized as follows:(In thousands)Certificates of Deposit $250,000 or lessCertificates of Deposit  more than $250,000Brokered Deposits Total Demand$— $— $111,259 $111,259 1 year or less$105,213 $56,280 $54,169 $215,662 More than 1 year through 2 years13,470 3,941 5,042 22,453 More than 2 years through 3 years484 — — 484 More than 3 years through 4 years146 — — 146 More than 4 years through 5 years16 — — 16 $119,329 $60,221 $170,470 $350,020 

Note 7.    Derivatives

Patriot is party to interest rate swap derivatives that are not designated as hedging instruments. Under a program, Patriot will execute interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Patriot executes with a third party, such that Patriot minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties.As of September 30, 2025 and December 31, 2024, Patriot did not have any cash pledged for collateral on its interest rate swaps. No net gain or loss was recognized in other