Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 75

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 Connecticut branch is located for approximately $2.0 million, a property it had been leasing until that date. The purchase price was primarily satisfied by issuing the seller a $2.0 million, nine-year, promissory note bearing interest at a fixed rate of 1.75% per annum. As of March 31, 2025 and December 31, 2024, the note had a balance outstanding of $109,000 and $162,000, respectively. The note originally set to mature in August 2024, was extended from August 25, 2024 to September 1, 2025, with the Bank continuing its scheduled principal and interest payments.  The note is secured by a first mortgage deed and security agreement on the purchased property.

For the three months ended March 31, 2025 and 2024, the Company recognized interest expense of $1,000 and $1,000, respectively. 

Derivatives

As of March 31, 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 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