Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 180

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 180
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2,357 — 1,427 — 2,411 — 22,068 2 10,759 125 25,379 20 10,053 236 With a related allowance recorded:Commercial Real Estate218 63 24,627 59 318 63 25,018 274 Commercial and Industrial2,596 169 — — 2,623 169 — — 2,814 232 24,627 59 2,941 232 25,018 274 Individually evaluated loans, Total:Commercial Real Estate20,264 63 28,550 59 22,208 81 28,940 274 Residential Real Estate58 2 — — 59 2 — — Commercial and Industrial4,529 169 4,479 125 4,626 169 3,720 236 Construction to permanent - CRE31 — 2,357 — 1,427 — 2,411 — Total$24,882 $234 $35,386 $184 $28,320 $252 $35,071 $510 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 non-accrual 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, unamortized fees and costs and accrued interest, if any.