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Fair Value and Interest Rate Risk (Tables) | 3 Months Ended
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Mar. 31, 2024
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 March 31, 2024 and December 31, 2023:
(In thousands) |  |  | March 31, 2024 |  | December 31, 2023
| 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 |  | $ | 2,409 |  |  | $ | 2,409 |  |  | $ | 2,195 |  |  | $ | 2,195 |
Interest-bearing deposits due from banks | Level 1 |  | 61,580 |  |  | 61,580 |  |  | 50,322 |  |  | 50,322 |
Restricted cash | Level 1 |  | 28,786 |  |  | 28,786 |  |  | 14,019 |  |  | 14,019 |
Available-for-sale securities | Level 2 |  | 77,406 |  |  | 77,406 |  |  | 78,925 |  |  | 78,925 |
Available-for-sale securities | Level 3 |  | 10,189 |  |  | 10,189 |  |  | 10,262 |  |  | 10,262 |
Other investments | Level 2 |  | 4,450 |  |  | 4,450 |  |  | 4,450 |  |  | 4,450 |
Federal Reserve Bank stock | Level 2 |  | 2,200 |  |  | 2,200 |  |  | 2,090 |  |  | 2,090 |
Federal Home Loan Bank stock | Level 2 |  | 2,652 |  |  | 2,652 |  |  | 4,202 |  |  | 4,202 |
Loans receivable, net | Level 3 |  | 796,546 |  |  | 769,789 |  |  | 832,934 |  |  | 812,856 |
Loans held for sale | Level 2 |  | 14,112 |  |  | 14,200 |  |  | 20,767 |  |  | 21,557 |
SBA servicing assets | Level 3 |  | 902 |  |  | 988 |  |  | 857 |  |  | 932 |
Other real estate owned | Level 2 |  | 2,843 |  |  | 2,843 |  |  | 2,843 |  |  | 2,843 |
Accrued interest receivable | Level 2 |  | 6,610 |  |  | 6,610 |  |  | 7,219 |  |  | 7,219 |
Interest rate swap receivable | Level 2 |  | 97 |  |  | 97 |  |  | 74 |  |  | 74 |
Financial assets, total |  |  | $ | 1,010,782 |  |  | $ | 984,199 |  |  | $ | 1,031,159 |  |  | $ | 1,011,946 |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Demand deposits | Level 2 |  | $ | 109,265 |  |  | $ | 109,265 |  |  | $ | 110,056 |  |  | $ | 110,056 |
Negotiable order of withdrawal accounts | Level 2 |  | 29,460 |  |  | 29,460 |  |  | 33,035 |  |  | 33,035 |
Savings deposits | Level 2 |  | 39,378 |  |  | 39,378 |  |  | 44,104 |  |  | 44,104 |
Interest bearing DDA | Level 2 |  | 183,084 |  |  | 183,084 |  |  | 171,577 |  |  | 171,577 |
Money market deposits | Level 2 |  | 184,653 |  |  | 184,653 |  |  | 200,280 |  |  | 200,280 |
Time deposits | Level 2 |  | 246,312 |  |  | 245,493 |  |  | 240,733 |  |  | 239,655 |
Brokered deposits | Level 1 |  | 67,572 |  |  | 65,085 |  |  | 40,526 |  |  | 40,453 |
FHLB, FRB and correspondent bank borrowings | Level 2 |  | 131,000 |  |  | 130,510 |  |  | 171,000 |  |  | 170,171 |
Senior notes | Level 2 |  | 11,757 |  |  | 11,364 |  |  | 11,723 |  |  | 11,397 |
Subordinated debt | Level 2 |  | 9,876 |  |  | 9,910 |  |  | 9,869 |  |  | 10,102 |
Junior subordinated debt owed to unconsolidated trust | Level 2 |  | 8,139 |  |  | 8,139 |  |  | 8,137 |  |  | 8,137 |
Note payable | Level 3 |  | 323 |  |  | 314 |  |  | 376 |  |  | 362 |
Accrued interest payable | Level 2 |  | 1,791 |  |  | 1,791 |  |  | 1,235 |  |  | 1,235 |
Interest rate swap liability | Level 2 |  | 97 |  |  | 97 |  |  | 74 |  |  | 74 |
Financial liabilities, total |  |  | $ | 1,022,707 |  |  | $ | 1,018,543 |  |  | $ | 1,042,725 |  |  | $ | 1,040,638 |
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 March 31, 2024 and December 31, 2023:
(In thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
March 31, 2024: |  |  |  |  |  |  |
U. S. Government agency and mortgage-backed securities | $ | — |  |  | $ | 65,480 |  |  | $ | — |  |  | $ | 65,480 |
Corporate bonds | — |  |  | 3,500 |  |  | 10,189 |  |  | 13,689 |
Subordinated notes | — |  |  | 4,245 |  |  | — |  |  | 4,245 |
SBA loan pools | — |  |  | 3,703 |  |  | — |  |  | 3,703 |
Municipal bonds | — |  |  | 478 |  |  | — |  |  | 478 |
Available-for-sale securities | $ | — |  |  | $ | 77,406 |  |  | $ | 10,189 |  |  | $ | 87,595 |
Interest rate swap receivable | $ | — |  |  | $ | 97 |  |  | $ | — |  |  | $ | 97 |
Interest rate swap liability | $ | — |  |  | $ | 97 |  |  | $ | — |  |  | $ | 97 |
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 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The reconciliation of the beginning and ending balances during the three months ended March 31, 2024 and 2023 for Level 3 available-for-sale securities is as follows:
| Three Months Ended March 31, |  |
(In thousands) | 2024 |  | 2023 |  |  |  |
Level 3 fair value, beginning of period | $ | 10,262 |  |  | $ | 9,427 |  |  |  |  |
Purchases | — |  |  | — |  |  |  |  |
Realized gain (loss) | — |  |  | — |  |  |  |  |
Unrealized gain (loss) | (73) |  |  | 778 |  |  |  |  |
Transfers in and /or out of Level 3 | — |  |  | — |  |  |  |  |
Level 3 fair value, end of period | $ | 10,189 |  |  | $ | 10,205 |  |  |  |  |
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 March 31, 2024 and December 31, 2023:
(In thousands) | Fair Value |  | Valuation Methodology |  | Unobservable Inputs |  | Range of Inputs
March 31, 2024: |  |  |  |  |  |  |  |  |
Individually evaluated loans, net | $ | 19,169 |  |  | Real Estate Appraisals |  | Discount for appraisal type |  | 5.8 | % | - | 20%
SBA servicing assets | 988 |  |  | Discounted Cash Flows |  | Market discount rates |  | 14.73 | % | - | 14.90%
December 31, 2023: |  |  |  |  |  |  |  |  |
Impaired 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%

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