Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 163

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 163
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 origination activities and implemented three targeted lending initiatives designed to prudently diversify revenue and strengthen relationship banking among high-quality entrepreneurial borrowers. These programs are fully aligned with the Bank’s credit risk appetite, underwriting standards, and its overall strategic plan.   At this time, no other commercial loan products are offered to our customers.   As the successful implementation of these new lending programs progresses and matures, the Bank continues to evaluate additional commercial lending products consistent with its strategic plan and risk appetite. Unsecured Line of Credit Program In the third quarter of 2025, the Bank introduced a tailored unsecured line of credit product for qualifying clients. The facility provides short-term liquidity for qualified borrowers with substantial financial strength and established deposit or relationship history with the Bank.  The proceeds of the lines of credit are utilized for business and investment purposes.  Although contractually unsecured for strong credits, the Bank may require a pledge of eligible assets—including cash, marketable securities, or other high-value property—on an “abundance-of-caution” basis. Lines typically range from $250 thousand to $5 million, with maturities of one year, and are renewable annually subject to re-underwriting.   The loans have prime-based interest rates with market origination fees.  Rediscount Line of Credit Program During the third quarter of 2025 the Bank launched a rediscount lending facility that provides secured, revolving lines of credit to non-bank loan originators and private credit providers.  Borrowers pledge single loans or pools of performing loans and leases.   Typically, commercial real estate, residential real estate or equipment loans are provided as collateral, which may be replenished as the underlying loans pay down. Typical commitments range from $1 million to $15 million, with terms of 12 to 36 months and pricing on a floating rate basis.  The facilities are full-recourse to the borrower and are governed by defined borrowing-base, collateral-performance, and reporting covenants.  Commercial Real Estate Program During the third quarter of 2025 the Bank also established a CRE-lending program to finance properties for depositor and relationship clients. Loans generally range from $1 million to $25 million, are secured by first mortgages, and are underwritten to maximum loan-to-value ratios and appropriate debt-service coverage metrics. Interest rates are typically floating rates with terms of 12 to 60 months, and may include extension options.  All three programs are subject to the Bank’s existing credit policies, together with new, enhanced