Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 67

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 2025 was zero, compared to the effective tax rate of 28.33% for the three months ended March 31, 2024. The Company’s effective rate for the three months ended March 31, 2025 was affected by the change in the valuation allowance and for the three months ended March 31, 2024 was affected by state taxes and non-deductible expenses.

As of March 31, 2025, Patriot had available approximately $44.2million of Federal net operating loss carryforwards (“NOL”) that are offset by $15.5million in §382 limitations imposed by the Internal Revenue Code. After applying the limitation at December 31, 2024, Patriot has $28.7 million post-change NOL which do not expire. Patriot has not performed an analysis on the post-change NOL, but the potential impact of any additional limitation would not be material to the financial statements due to the fact that the NOL are fully offset by a valuation allowance.

Patriot has approximately $64.6 million of NOLs available for Connecticut tax purposes at March 31, 2025, which may be used to offset up to 50% of taxable income in any year. The NOL will expire between 2030 and 2044.

47

Deposits

The following table is a summary of the Company’s deposits at the dates shown:

(In thousands)March 31,December 31,Increase/(Decrease)20252024$%Non-interest bearing:Non-interest bearing$74,313 $106,689 $(32,376)(30.35)%Non-interest bearing DDA- Digital Payments6,050 12,523 (6,473)(51.69)%Total non-interest bearing80,363 119,212 (38,849)(32.59)%Interest bearing:Negotiable order of withdrawal accounts (NOW)25,228 31,549 (6,321)(20.04)%Savings38,362 38,743 (381)(0.98)%Interest bearing DDA (net of $21,518 in deposits sold as of March 31, 2025)1,213 19,630 (18,417)(93.82)%Interest bearing DDA - Digital Payments (net of $95,346 in deposits sold as of March 31, 2025)130,086 186,365 (56,279)(30.20