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Fair Value and Interest Rate Risk (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2023 and 2022:

(In thousands)									December 31, 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						$	2,195					$	2,195					$	5,182					$	5,182
Interest-bearing deposits due from banks			Level 1						50,322						50,322						33,311						33,311
Restricted cash			Level 1						14,019						14,019						—						—
Available-for-sale securities			Level 2						78,925						78,925						75,093						75,093
Available-for-sale securities			Level 3						10,262						10,262						9,427						9,427
Other investments			Level 2						4,450						4,450						4,450						4,450
Federal Reserve Bank stock			Level 2						2,090						2,090						2,627						2,627
Federal Home Loan Bank stock			Level 2						4,202						4,202						3,874						3,874
Loans receivable, net			Level 3						832,934						812,856						838,006						818,960
Loans held for sale			Level 2						20,767						21,557						5,211						5,534
SBA servicing assets			Level 3						857						932						886						1,013
Other real estate owned			Level 2						2,843						2,843						—						—
Accrued interest receivable			Level 2						7,219						7,219						7,267						7,267
Interest rate swap receivable			Level 2						74						74						203						203
Financial assets, total									$	1,031,159					$	1,011,946					$	985,537					$	966,941
Financial Liabilities:
Demand deposits			Level 2						$	110,056					$	110,056					$	269,636					$	269,636
Negotiable order of withdrawal accounts			Level 2						42,416						42,416						34,440						34,440
Savings deposits			Level 2						44,104						44,104						71,002						71,002
Interest bearing DDA			Level 2						162,196						162,196						—						—
Money market deposits			Level 2						200,280						200,280						211,000						211,000
Time deposits			Level 2						240,733						239,655						225,670						221,353
Brokered deposits			Level 1						40,526						40,453						48,698						47,684
FHLB, FRB and correspondent bank borrowings			Level 2						171,000						170,171						85,000						83,853
Senior notes			Level 2						11,723						11,397						11,640						11,103
Subordinated debt			Level 2						9,869						10,102						9,840						9,680
Junior subordinated debt owed to unconsolidated trust			Level 2						8,137						8,137						8,128						8,128
Note payable			Level 3						376						362						585						544
Accrued interest payable			Level 2						1,235						1,235						585						585
Interest rate swap liability			Level 2						74						74						203						203
Financial liabilities, total									$	1,042,725					$	1,040,638					$	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 December 31, 2023 and 2022.

(In thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
December 31, 2023:
U. S. Government agency and mortgage-backed securities			$	—					$	65,671					$	—					$	65,671
Corporate bonds			—						3,504						10,262						13,766
Subordinated notes			—						4,227						—						4,227
SBA loan pools			—						5,037						—						5,037
Municipal bonds			—						486						—						486
Available-for-sale securities			$	—					$	78,925					$	10,262					$	89,187
Interest rate swap receivable			$	—					$	74					$	—					$	74
Interest rate swap liability			$	—					$	74					$	—					$	74
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 for Level 3 available-for-sale securities for the years ended December 31, 2023, 2022 and 2021 is as follows:

			Year Ended December 31,
			2023						2022						2021
Level 3 fair value, beginning of year			$	9,427					$	13,180					$	—
Purchases			—						—						14,000
Realized gain (loss)			—						—						—
Unrealized gain (loss)			835						(3,753)						(820)
Transfers in and /or out of Level 3			—						—						—
Level 3 fair value, end of year			$	10,262					$	9,427					$	13,180

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 December 31, 2023 and 2022:

(In thousands)			Fair Value						Valuation Methodology						Unobservable Inputs						Range of Inputs
December 31, 2023:
Individually evaluated loans, net			$	12,928					Real Estate Appraisals						Discount for appraisal type						5.8%			-			20%
SBA servicing assets			932						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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