Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 36

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 36
---
 — 4,513 27 Construction to permanent - CRE1,775 — 2,411 — 2,025 — 2,433 — 27,495 64 12,716 31 28,630 82 12,226 35 With a related allowance recorded:Commercial Real Estate— — 22,763 159 — — 22,942 159 Commercial and Industrial— — 217 — — — 577 — — — 22,980 159 — — 23,519 159 Individually evaluated loans, Total:Commercial Real Estate22,847 64 27,870 159 23,626 82 28,050 159 Residential Real Estate— — 172 8 — — 172 8 Commercial and Industrial2,873 — 5,243 23 2,979 — 5,090 27 Construction to permanent - CRE1,775 — 2,411 — 2,025 — 2,433 — Total$27,495 $64 $35,696 $190 $28,630 $82 $35,745 $194 Credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis (individually evaluated loans). Individual evaluations are performed for nonaccrual loans in excess of $100,000 as well as selected substandard loans. Specific allowances were estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows.For collateral dependent loans, appraisal reports of the underlying collateral have been obtained from independent licensed appraisal firms. For non-performing loans, the independently determined appraised values were reduced by 8% in selling costs, in order to estimate the potential loss, if any, that may eventually be realized. Performing loans are monitored to determine when, if at all, additional credit loss reserves may be required for a loss of underlying collateral value. For cash flow dependent loans, the Bank determined the reserve based on the present value of expected future cash flows discounted at the loan's effective interest rate.Loans not requiring specific reserves had fair values exceeding the total recorded investment, supporting the net investment in the loan which includes principal balance, un