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Fair Value and Interest Rate Risk (Tables)

3 Months Ended

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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