Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 173

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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, 2 or 3.The reconciliation of the beginning and ending balances during the three months ended March 31, 2025 and 2024 for Level 3 available-for-sale securities is as follows:Three Months Ended March 31,(In thousands)20252024Level 3 fair value, beginning of period$11,123 $10,262 Purchases— — Realized gain (loss)— — Unrealized loss(155)(73)Transfers in and /or out of Level 3— — Level 3 fair value, end of period$10,968 $10,189 

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

Patriot discloses fair value information about financial instruments, whether or not recognized in the consolidated balance sheet, for which it is practicable to estimate that value. Certain financial instruments are excluded from disclosure requirements and, accordingly, the aggregate fair value amounts presented do not necessarily represent the complete underlying value of financial instruments included in the consolidated financial statements.Patriot measures certain financial assets and financial liabilities at fair value on a non-recurring basis. When circumstances dictate (e.g., impairment of long-lived assets, other than temporary impairment of collateral value), the carrying values of such financial assets and financial liabilities are adjusted to fair value or fair value less costs to sell, as may be appropriate.The table below presents the valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis as of March 31, 2025 and December 31, 2024:(In thousands)Fair Value Valuation Methodology Unobservable Inputs Range of Inputs March 31, 2025: Individually evaluated loans, net$28,677 Real Estate AppraisalsDiscount for appraisal type5.8 %-20%   Servicing assets820 Discounted Cash FlowsMarket discount rates14.73 %-14.90% December 31, 2024:  Individually evaluated loans, net$24,552 Real Estate AppraisalsDiscount for appraisal type5.8 %-20% Servicing assets852 Discounted Cash FlowsMarket discount rates14.73 %-14.90%The estimated fair value amounts have been measured as of March 31, 2025 and December 31, 2024, and have not