Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 185

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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 rate swaps that Patriot executes with a third party, such that Patriot minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties.As of September 30, 2025 and December 31, 2024, Patriot did not have any cash pledged for collateral on its interest rate swaps. No net gain or loss was recognized in other non-interest income on the Consolidated Statements of Operations during the three and nine months ended September 30, 2025 and 2024.Information about the valuation methods used to measure the fair value of derivatives is provided in Note 12 to the Consolidated Financial Statements.The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):(In thousands)NotionalAmount Maturity(Years) Fixed Rate VariableRate Fair Value September 30, 2025Classified in Other Assets:3rd party interest rate swap$1,261 3.804.38 %1 Mo. SOFR + 2.00%$42     Classified in Other Liabilities:    Customer interest rate swap1,261 3.804.38 %1 Mo. SOFR + 2.00%(42)December 31, 2024Classified in Other Assets:3rd party interest rate swap1,290 4.504.38 %1 Mo. SOFR + 2.00%83     Classified in Other Liabilities:    Customer interest rate swap1,290 4.504.38 %1 Mo. SOFR + 2.00%(83)

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

Note 8.     Share-Based Compensation and Employee Benefit Plan 

Restricted Stock Award Plan In 2011, the Company adopted the Patriot National Bancorp, Inc. 2012 Stock Plan (the “2012 Plan”). The 2012 Plan was amended in 2020 and renamed as the Patriot National Bancorp, Inc. 2020 Restricted Stock Award Plan