Company: PNBK
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001628280-25-017837
Chunk: 82

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 82
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 and consideration of reasonable and supportable forecasts of macroeconomic conditions, all of which are susceptible to significant change. The Company also maintains an allowance for lending-related commitments, specifically unfunded loan commitments, which relates to certain amounts the Company is committed to lend (not unconditionally cancellable) but for which funds have not yet been disbursed.

Loans deemed uncollectible are charged against and reduce the allowance. A provision for credit losses is charged to current expense and acts to replenish the ACL in order to maintain the allowance at a level that management deems adequate. Determining the allowance involves significant judgments and assumptions by management. Because of the nature of the judgments and assumptions made by management, actual results may differ from these judgments and assumptions.

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Table of Contents

FINANCIAL CONDITION

Assets

The Company’s total assets decreased $81.1 million, or 7.4%, from $1.09 billion at December 31, 2023 to $1.01 billion at December 31, 2024. The decrease was primarily driven by a $141.4 million decline in gross loans held for investment, which was partially offset by a rise in cash, cash equivalents and restricted cash of $96.1 million. 

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash increased $96.1 million or 144.4%, from $66.5 million as of December 31, 2023 to $162.6 million as of December 31, 2024. The increase in cash reflects the Company’s efforts to increase balance sheet liquidity due to the cumulative losses incurred by the Company in the prior two years and decreases in borrowing capacity. 

Investment securities

The following table is a summary of the Company’s available-for-sale securities portfolio and other investments at the dates shown:

December 31,(In thousands)202420232022U. S. Government agency and mortgage-backed securities$60,223 $65,671 $59,046 Corporate bonds12,735 13,766 14,655 Subordinated notes3,461 4,227 4,602 SBA loan pools3,573 5,037 5,718 Municipal bonds— 486 499 Total available-for-sale securities, at fair value79,992 89,187 84,520 Other investments, at cost4,450 4,450 4,450 $84,442 $93,637 $