Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 124

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 124
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 2025 and December 31, 2024, no funds had been borrowed under the overnight line of credit.

FHLB-B advances are structured to facilitate the Bank’s management of its balance sheet and liquidity requirements. Outstanding advances from the FHLB-B decreased from $3.0 million at December 31, 2024 to zero at September 30, 2025.

Interest expense incurred for the three and nine months ended September 30, 2025 were nil and $3,000, respectively. Interest expense incurred for the three and nine months ended September 30, 2024 were $0.3 million and $1.0 million, respectively. 

61

Correspondent Bank - Line of Credit 

Patriot has entered into unsecured federal funds sweep and federal funds line of credit facility agreements with certain correspondent banks. As of September 30, 2025, no unsecured lines of credit were available. Borrowings available under the agreements totaled $5.0 million December 31, 2024. The purpose of the agreements is to provide a credit facility intended to satisfy overnight federal account balance requirements and to provide for daily settlement of Federal Reserve Bank (“FRB”), Automated Clearing House (“ACH”), and other clearinghouse transactions.

There was no outstanding balance under the agreements at September 30, 2025 and December 31, 2024. No Interest expense incurred for the three and nine months ended September 30, 2025. For three and nine months ended September 30, 2024, interest expense incurred was $2,000 and $4,000, respectively.

Other Borrowing

The Federal Reserve Bank of New York (“FRBNY”) accepts securities and loan pledges from qualifying depository institutions to secure borrowings from the Federal Reserve Discount Window (“Discount Window”). Patriot has pledged eligible securities and loans as collateral to support its borrowing capacity at the FRBNY. As of September 30, 2025, Patriot had pledged eligible securities and loans with a book value of $58.2 million and a collateral value of $33.0 million. During the three and nine months ended September 30, 2025, the Company borrowed zero and $70.0 million, respectively, from the Discount Window and repaid the amounts in full within the same periods. Related interest expense was zero and $98,000, respectively. In the corresponding 2024 periods, no borrowings were made and no interest expense was incurred