Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 101

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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2025 the Company’s maximum borrowing capacity with the FHLB-B is $50.6 million. Of this amount, $45.0 million was used by a standby letter of credit, as described further in Note 10 Financial Instruments with Off-Balance-Sheet Risk. Additionally, $250,000 of the maximum borrowing capacity was used by an overnight line of credit designed to cover the Bank for temporary overdraft positions.  As of March 31, 2025 and December 31, 2024, no funds had been borrowed under the overnight line of credit.

FHLB-B advances are structured to facilitate the Bank’s management of its balance sheet and liquidity requirements. Outstanding advances from the FHLB-B decreased from $3.0 million at December 31, 2024 to zero million at March 31, 2025.

Interest expense incurred for the three months ended March 31, 2025 and March 31, 2024 were $2,000 and $359,000, respectively. 

49

Correspondent Bank - Line of Credit 

Patriot has entered into unsecured federal funds sweep and federal funds line of credit facility agreements with certain correspondent banks. As of March 31, 2025, no unsecured lines of credit were available. Borrowings available under the agreements totaled $5 million at December 31, 2024. The purpose of the agreements is to provide a credit facility intended to satisfy overnight federal account balance requirements and to provide for daily settlement of FRB, Automated Clearing House (ACH), and other clearinghouse transactions.

There was no outstanding balance under the agreements at March 31, 2025 and December 31, 2024. Interest expense incurred for the three months ended March 31, 2025 and March 31, 2024 was zero and $2,000, respectively.

Other Borrowing

The Federal Reserve Bank of New York (“FRBNY”) accepts securities and loan pledges from qualifying depository institutions to secure borrowings from the Federal Reserve Discount Window ("Discount Window"). Patriot has pledged eligible securities and loans as collateral to support its borrowing capacity at the FRBNY. As of March 31, 2025, Patriot had pledged eligible securities and loans with a book value of $149.3 million and a collateral value of $91.6 million. A total of $30.0 million was borrowed from the Discount Window and fully repaid during the three months ended March