Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 76

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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19 %Other CRE non-owner occupied159,959 44.33 %155,266 37.01 %Total $360,802 100.00 %$419,489 100.00 %

The following table provides the commercial real estate loan portfolio segment by geographic concentrations as of September 30, 2025 and December 31, 2024:

(In thousands)September 30, 2025December 31, 2024Amount%Amount%New York$176,628 48.95 %$208,093 49.61 %Connecticut79,309 21.98 %98,342 23.44 %New Jersey23,632 6.55 %26,861 6.40 %Outside Market (1)81,234 22.51 %86,193 20.55 %Total Commercial Real Estate$360,803 100.00 %$419,489 100.00 %

(1) Outside Market consists of loans in all other states, none of which are greater than 5% of the total.

In accordance with OCC Bulletin 2006-46, "Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices: Interagency Guidance on CRE Concentration Risk Management", and the Joint Interagency Guidance (71 FR 74580), the Bank monitors its CRE lending relative to total capital. As of September 30, 2025, the Bank’s CRE concentration was 267% of total Tier 1 capital plus allowance for credit loss, below the Bank’s concentration policy limit of 350%. This concentration level is slightly above the 300% supervisory monitoring threshold outlined in the guidance. Exceeding this threshold does not, by itself, indicate unsafe or unsound banking practices; however, it subjects the Bank to heightened supervisory expectations for portfolio management, risk assessment, and capital planning. Management maintains portfolio management procedures, underwriting standards, and stress testing practices consistent with these regulatory expectations. For purposes of calculating the Bank’s CRE concentration in accordance with this regulatory guidance, owner-occupied CRE loans are excluded from the CRE total and classified as commercial and industrial (“C&I”) loans; however, the CRE portfolio tables above include owner-occupied CRE for presentation purposes.

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Allowance for Credit Losses ("ACL") on Loans

The allowance for credit losses on loans was $7.2 million as of September 30, 2025,