Patriot National Bancorp Files Q3 2024 10-Q

TL;DR

PNBK Q3 10-Q is in. Check financials for latest performance.

AI Summary

Patriot National Bancorp Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including key balance sheet and income statement items. Specific financial figures and comparative data for prior periods are presented within the report.

Why It Matters

This filing provides investors and analysts with the latest financial data for Patriot National Bancorp, crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific details within can reveal significant financial health indicators or potential risks.

Key Numbers

• 9.9 — Other Assets (As of Q3 2024, indicating a specific asset category value.)
• 3.5 — Other Accrued Liabilities Current (As of Q3 2024, showing a current liability figure.)
• 6.4 — Other Accrued Liabilities Noncurrent (As of Q3 2024, indicating long-term liability amounts.)
• 5.5 — Other Comprehensive Income (Loss) (Reflecting unrealized gains/losses on securities before tax for the period.)

Key Players & Entities

• PATRIOT NATIONAL BANCORP INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241119 (date) — Filing Date
• 0001098146 (company) — Central Index Key

FAQ

Filing Documents

• pnbk-20240930.htm (10-Q) — 3686KB
• a2024-09pnbk10xq_exx311.htm (EX-31.1) — 12KB
• a2024-09pnbk10xq_exx312.htm (EX-31.2) — 13KB
• a2024-09pnbk10xq_exx32.htm (EX-32) — 10KB
• 0001628280-24-048517.txt ( ) — 17311KB
• pnbk-20240930.xsd (EX-101.SCH) — 59KB
• pnbk-20240930_cal.xml (EX-101.CAL) — 134KB
• pnbk-20240930_def.xml (EX-101.DEF) — 357KB
• pnbk-20240930_lab.xml (EX-101.LAB) — 747KB
• pnbk-20240930_pre.xml (EX-101.PRE) — 560KB
• pnbk-20240930_htm.xml (XML) — 4605KB

- FINANCIAL INFORMATION

PART I- FINANCIAL INFORMATION 3

: Consolidated Financial Statements

Item 1: Consolidated Financial Statements 3 Consolidated Balance Sheets (Unaudited) 3 Consolidated Statements of Operations (Unaudited) 4 Consolidated Statements of Comprehensive Loss (Unaudited) 5 Consolidated Statements of Shareholder's Equity (Unaudited) 6 Consolidated Statements of Cash Flows (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9

: Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations 44

: Quantitative and Qualitative Disclosures about Market Risk

Item 3: Quantitative and Qualitative Disclosures about Market Risk 63

: Disclosure Controls and Procedures

Item 4: Disclosure Controls and Procedures 64

- OTHER INFORMATION

PART II - OTHER INFORMATION 66

: Legal Proceedings

Item 1: Legal Proceedings 66

: Other Information

Item 5: Other Information 66

: Exhibits

Item 6: Exhibits 67

- FINANCIAL INFORMATION

PART I- FINANCIAL INFORMATION

: Consolidated Financial Statements

Item 1: Consolidated Financial Statements PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023 (In thousands, except share data) Unaudited Assets Cash and due from banks: Noninterest bearing deposits and cash $ 2,718 $ 2,195 Interest bearing deposits 70,013 50,322 Restricted cash 41 14,019 Total cash, cash equivalents and restricted cash 72,772 66,536 Investment securities: Available-for-sale securities, at fair value 89,578 89,187 Other investments, at cost 4,450 4,450 Total investment securities 94,028 93,637 Federal Reserve Bank (FRB) stock, at cost 2,109 2,090 Federal Home Loan Bank (FHLB) stock, at cost 3,473 4,202 Loans receivable (net of allowance for credit losses: 2024: $( 14,984 ) and 2023: $( 15,925 )) 740,687 832,934 Loans held for sale 13,658 20,767 Accrued interest and dividends receivable 5,932 7,219 Premises and equipment, net 29,117 29,875 Other real estate owned 2,843 2,843 Deferred tax asset — 24,134 Core deposit intangible, net 168 203 Other assets 9,296 8,985 Total assets $ 974,083 $ 1,093,425 Liabilities Deposits: Noninterest bearing deposits $ 91,583 $ 110,056 Interest bearing deposits 733,306 730,255 Total deposits 824,889 840,311 FHLB, FRB and correspondent bank borrowings 93,800 171,000 Senior notes, net 11,827 11,723 Subordinated debt, net 9,891 9,869 Junior subordinated debt owed to unconsolidated trust, net 8,144 8,137 Note payable 216 376 Advances from borrowers for taxes and insurance 3,013 1,164 Accrued expenses and other liabilities 5,917 6,462 Total liabilities 957,697 1,049,042 Commitments and Contingencies Shareholders' equity Preferred stock, no par value; 1,000,000 shares authorized, no shares issued and outstanding — — Common stock, $ .01 par value, 100,000,000 shares authorized; As of September 30, 2024: 4,049,814 shares issued; 3,976,073 shares outstanding; As of December 31, 2023: 4,049,814 shares issued; 3,976,073

Notes to consolidated financial statements (Unaudited)

Notes to consolidated financial statements (Unaudited) Note 1. Basis of Financial Statement Presentation The accompanying unaudited interim condensed Consolidated Financial Statements of Patriot National Bancorp, Inc. (the "Company" or "PNBK") and its wholly-owned subsidiaries, Patriot Bank, N.A. (the "Bank"), Patriot National Statutory Trust I and PinPat Acquisition Corporation (collectively, "Patriot"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") have been omitted. The accompanying unaudited interim condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included on the Annual Report on Form 10-K for the year ended December 31, 2023. The Consolidated Balance Sheet at December 31, 2023 presented herein has been derived from the audited Consolidated Financial Statements of the Company at that date, but does not include all of the information and footnotes required by US GAAP for complete financial statements. The preparation of consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and to disclose contingent assets and liabilities. Actual results could differ from those estimates. Management has identified accounting for the allowance for credit losses, the analysis and valuation of its investment securities, the valuation of deferred tax assets, the valuation of derivatives, and the valuation of servicing assets as certain of the Company's more significant accounting policies and estimates, in that they are critical to the presentation of the Company's consolidated

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Patriot recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and loss carry forwards. Deferred tax assets ("DTA"s) and liabilities ("DTL"s) are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on DTAs and DTLs of a change in tax rates is recognized in income in the period that includes the enactment date. In certain circumstances DTAs are subject to reduction by a valuation allowance. A valuation allowance is subject to ongoing adjustment based on changes in circumstances that affect management's judgment about the realizability of the deferred tax asset. Adjustments to increase or decrease the valuation allowance are charged or credited to the deferred tax component of the income tax provision or benefit. The Company recognize deferred tax assets to the extent we believe it is more likely than not the asset will be realized. Quarterly, management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets, including future reversals of existing taxable temporary differences, projected taxable income, tax-planning strategies, carryback potential if permitted, and the results of recent operations. A significant piece of objective negative evidence is the existence of a three or four year cumulative loss. Such objective negative evidence limits the ability of management to consider other subjective evidence, such as projected taxable income. When appropriate, the Company records a valuation allowance to reduce de

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Recently Issued Accounting Standards Recently issued Accounting Pronouncements not yet Adopted ASU 2023-06 In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this Update should be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The adoption of ASU 2023-06 is not expected to have an impact on the Company's financial condition or results of operations but could change certain disclosures. The Company will continue to monitor for SEC action, and plan accordingly for adoption. ASU 2023-07 In November, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Additi

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 3. Available-for-Sale Securities The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale securities at September 30, 2024 and December 31, 2023 are as follows: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value September 30, 2024: U. S. Government agency and mortgage-backed securities $ 79,082 $ 33 $ ( 12,826 ) $ 66,289 Corporate bonds 17,995 — ( 3,290 ) 14,705 Subordinated notes 5,000 — ( 601 ) 4,399 SBA loan pools 4,561 — ( 863 ) 3,698 Municipal bonds 558 — ( 71 ) 487 Total available-for-sale securities $ 107,196 $ 33 $ ( 17,651 ) $ 89,578 December 31, 2023: U. S. Government agency and mortgage-backed securities $ 80,500 $ — $ ( 14,829 ) $ 65,671 Corporate bonds 17,995 — ( 4,229 ) 13,766 Subordinated notes 5,000 — ( 773 ) 4,227 SBA loan pools 6,002 — ( 965 ) 5,037 Municipal bonds 559 — ( 73 ) 486 Total available-for-sale securities $ 110,056 $ — $ ( 20,869 ) $ 89,187 The following table presents the available-for-sale securities' gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of September 30, 2024 and December 31, 2023: (In thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) September 30, 2024: U. S. Government agency and mortgage-backed securities $ 2,237 $ ( 56 ) $ 61,966 $ ( 12,770 ) $ 64,203 $ ( 12,826 ) Corporate bonds — — 14,705 ( 3,290 ) 14,705 ( 3,290 ) Subordinated notes — — 4,399 ( 601 ) 4,399 ( 601 ) SBA

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