Company: PNBK
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040370
Chunk: 81

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 81
---
million at December 31, 2024 to zero at June 30, 2025.

Interest expense incurred for the three and six months ended June 30, 2025 were $1,000 and $3,000, respectively. Interest expense incurred for the three and six months ended June 30, 2024 were $362,000 and $721,000, respectively. 

56

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 June 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 FRB, Automated Clearing House (ACH), and other clearinghouse transactions.

There was no outstanding balance under the agreements at June 30, 2025 and December 31, 2024. No Interest expense incurred for the three and six months ended June 30, 2025. For three and six months ended June 30, 2024, interest expense incurred was nil and $2,000, 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 June 30, 2025, Patriot had pledged eligible securities and loans with a book value of $137.7 million and a collateral value of $90.4 million. During the three and six months ended June 30, 2025, the Company borrowed $10.0 million and $70.0 million, respectively, from the Discount Window and repaid the amounts in full within the same periods. Related interest expense was $2,000 and $98,000, respectively. In the corresponding 2024 periods, no borrowings were made and no interest expense was incurred.

In July 2023, the Bank established a collateralized funding line of $73.8 million at par value under the Federal Reserve's temporary Bank Term Funding Program (“BTFP”). The program provided additional funding to eligible depository institutions, assuring they can meet the needs of