Company: PNBK
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052358
Chunk: 207

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 207
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 are more likely to withdraw funds before maturity in a rising interest rate environment and less likely to do so in a falling interest rate environment. Management monitors market rates of interest and the maturities of its financial assets and financial liabilities, adjusting the terms of new loans and deposits in an attempt to minimize interest rate risk. Additionally, management mitigates its overall interest rate risk through its available funds investment strategy.

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

Note 13. Other Real Estate Owned

OREO consists of a foreclosed residential property from a residential loan receivable.  As of September 30, 2025 and December 31, 2024, the Company reported OREO of nil and $2.843 million, respectively.  A valuation allowance of $253,000 was recorded against the OREO property in the first quarter of 2025.  The OREO property was sold during the quarter ended September 30, 2025 for a gain of $176,000.  The following table presents an analysis of the activity related to the OREO property for the three and nine months ended September 30, 2025.Three Month Ended September 30, 2025Nine Months Ended September 30, 2025Beginning Balance$2,590 $2,843 Write-downs— (253)Sale(2,590)(2,590)Ending Balance$— $— 

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

Note 14.  Segment Information

The Company’s reportable segment is determined by the Chief Executive Officer, who is the designated chief operating decision maker (“CODM”), based upon information provided about the Company’s products and services offered. Patriot’s only business segment is Community Banking. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business, which are then aggregated and financial performance is evaluated on a company-wide basis, as presented in the Company’s Consolidated Statements of Income. The CODM will evaluate the financial performance of the Company’s business such as by evaluating revenue streams, significant expenses, and budget to