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Fair Value and Interest Rate Risk (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The following table provides a comparison of the carrying amounts and estimated fair values of Patriot’s financial assets and liabilities as of September 30, 2023 and December 31, 2022:

(In thousands)									September 30, 2023												December 31, 2022
			Fair Value Hierarchy						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
Financial Assets:
Cash and noninterest bearing balances due from banks			Level 1						$	2,350					$	2,350					$	5,182					$	5,182
Interest-bearing deposits due from banks			Level 1						76,578						76,578						33,311						33,311
Available-for-sale securities			Level 2						75,815						75,815						75,093						75,093
Available-for-sale securities			Level 3						9,871						9,871						9,427						9,427
Other investments			Level 2						4,450						4,450						4,450						4,450
Federal Reserve Bank stock			Level 2						2,449						2,449						2,627						2,627
Federal Home Loan Bank stock			Level 2						5,372						5,372						3,874						3,874
Loans receivable, net			Level 3						864,224						841,702						838,006						818,960
Loans held for sale			Level 2						21,934						22,623						5,211						5,534
SBA servicing assets			Level 3						879						974						886						1,013
Accrued interest receivable			Level 2						7,124						7,124						7,267						7,267
Interest rate swap receivable			Level 2						372						372						203						203
Financial assets, total									$	1,071,418					$	1,049,680					$	985,537					$	966,941
Financial Liabilities:
Demand deposits			Level 2						$	136,101					$	136,101					$	269,636					$	269,636
Savings deposits			Level 2						49,004						49,004						71,002						71,002
Money market deposits			Level 2						325,085						325,085						211,000						211,000
Negotiable order of withdrawal accounts			Level 2						38,952						38,952						34,440						34,440
Time deposits			Level 2						235,416						233,432						225,670						221,353
Brokered deposits			Level 1						52,465						52,179						48,698						47,684
FHLB and other borrowings			Level 2						215,000						214,092						85,000						83,853
Senior notes			Level 2						11,688						11,142						11,640						11,103
Subordinated debt			Level 2						9,862						9,799						9,840						9,680
Junior subordinated debt owed to unconsolidated trust			Level 2						8,135						8,135						8,128						8,128
Note payable			Level 3						429						405						585						544
Accrued interest payable			Level 2						1,616						1,616						585						585
Interest rate swap liability			Level 2						372						372						203						203
Financial liabilities, total									$	1,084,125					$	1,080,314					$	976,427					$	969,211

Fair Value, Assets Measured on Recurring Basis

The following tables detail the financial assets measured at fair value on a recurring basis and the valuation techniques utilized relative to the fair value hierarchy, as of September 30, 2023 and December 31, 2022:

(In thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
September 30, 2023:
U. S. Government agency and mortgage-backed securities			$	—					$	62,631					$	—					$	62,631
Corporate bonds			—						3,338						9,871						13,209
Subordinated notes			—						4,264						—						4,264
SBA loan pools			—						5,121						—						5,121
Municipal bonds			—						461						—						461
Available-for-sale securities			$	—					$	75,815					$	9,871					$	85,686
Interest rate swap receivable			$	—					$	372					$	—					$	372
Interest rate swap liability			$	—					$	372					$	—					$	372
December 31, 2022:
U. S. Government agency and mortgage-backed securities			$	—					$	59,046					$	—					$	59,046
Corporate bonds			—						5,228						9,427						14,655
Subordinated notes			—						4,602						—						4,602
SBA loan pools			—						5,718						—						5,718
Municipal bonds			—						499						—						499
Available-for-sale securities			$	—					$	75,093					$	9,427					$	84,520
Interest rate swap receivable			$	—					$	203					$	—					$	203
Interest rate swap liability			$	—					$	203					$	—					$	203

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The reconciliation of the beginning and ending balances during 2023 for Level 3 available-for-sale securities is as follows:

			Three Months Ended September 30,												Nine Months Ended September 30,
(In thousands)			2023						2022						2023						2022
Level 3 fair value, beginning of year			$	9,882					$	10,342					$	9,427					$	13,180
Purchases			—						—						—						—
Realized gain (loss)			—						—						—						—
Unrealized gain (loss)			(11)						(960)						444						(3,798)
Transfers in and /or out of Level 3			—						—						—						—
Level 3 fair value, end of year			$	9,871					$	9,382					$	9,871					$	9,382

Fair Value Measurement Inputs and Valuation Techniques

The table below presents the valuation methodology and unobservable inputs for level 3 assets measured at fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022:

(In thousands)			Fair Value						Valuation Methodology						Unobservable Inputs						Range of Inputs
September 30, 2023:
Impaired loans, net			$	18,522					Real Estate Appraisals						Discount for appraisal type						5.8		%	-			20%
SBA servicing assets			974						Discounted Cash Flows						Market discount rates						14.73		%	-			14.90%
December 31, 2022:
Impaired loans, net			$	12,873					Real Estate Appraisals						Discount for appraisal type						5.8		%	-			20%
SBA servicing assets			1,013						Discounted Cash Flows						Market discount rates						14.73		%	-			14.90%

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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