Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 228

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 228
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 September 30, 2025, no unsecured lines of credit were available. Borrowings available under the agreements totaled $5.0 million 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 Federal Reserve Bank (“FRB”), Automated Clearing House (“ACH”), and other clearinghouse transactions.

There was no outstanding balance under the agreements at September 30, 2025 and December 31, 2024. No Interest expense incurred for the three and nine months ended September 30, 2025. For three and nine months ended September 30, 2024, interest expense incurred was $2,000 and $4,000, 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 September 30, 2025, Patriot had pledged eligible securities and loans with a book value of $58.2 million and a collateral value of $33.0 million. During the three and nine months ended September 30, 2025, the Company borrowed zero and $70.0 million, respectively, from the Discount Window and repaid the amounts in full within the same periods. Related interest expense was zero and $98,000, respectively. In the corresponding 2024 periods, no borrowings were made and no interest expense was incurred.

In July 2023, the Bank established a collateralized funding line of $73.8 million at par value under the Federal Reserve's temporary Bank Term Funding Program (“BTFP”). The program provided additional funding to eligible depository institutions, assuring they can meet the needs of all their depositors. The program served as an additional source of liquidity against high-quality securities, eliminating the need of an institution to quickly sell those securities in times of stress. The line allowed for a fixed rate borrowing at market rates, for up to one year, with repayment permitted at any time without penalty. The BTFP ceased allowing any new advances after March 11, 2024. The outstanding BTFP borrowing was paid off as of December 31, 2024. No  interest expense incurred for the three and nine months ended September 30, 2025.