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Loans Receivable and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2025
Credit Loss [Abstract]  
Loans Receivable and Allowance for Credit Losses Loans Receivable and Allowance for Credit Losses
As of June 30, 2025 and December 31, 2024, loans receivable, net, consisted of the following:
(In thousands)June 30, 2025December 31, 2024
Loan portfolio segment:
Commercial Real Estate$370,376 $419,489 
Residential Real Estate60,123 92,215 
Commercial and Industrial122,161 129,608 
Consumer and Other33,363 59,973 
Construction1,494 3,830 
Construction to Permanent - CRE31 2,357 
Loans receivable, gross587,548 707,472 
Allowance for credit losses(7,795)(7,305)
Loans receivable, net$579,753 $700,167 
Patriot's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York, and the five Boroughs of New York City. Patriot originates on a limited basis commercial real estate loans, commercial business loans, consumer loans, and construction loans, and has purchased residential loans since 2016. All commercial and residential real estate loans are collateralized primarily by first or second mortgages on real estate. The ability and willingness of borrowers to satisfy their loan obligations is dependent to some degree on the status of the regional economy as well as upon the regional real estate market. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio and the recovery of a substantial portion of any resulting real estate acquired is susceptible to changes in market conditions.
Patriot has established credit policies applicable to each type of lending activity in which it engages and evaluates the creditworthiness of each borrower. Unless extenuating circumstances exist, Patriot limits the extension of credit on commercial real estate loans to 75% of the market value of the underlying collateral. Patriot’s loan origination policy for multi-family residential real estate is limited to 80% of the market value of the underlying collateral. In the case of construction loans, the maximum loan-to-value is 75% of the “as completed” appraised value of the real estate project. Management monitors the appraised value of collateral on an on-going basis and additional collateral is required when warranted. Real estate is the primary form of collateral, although other forms of collateral do exist and may include such assets as accounts receivable, inventory, marketable securities, time deposits, and other business assets.
Patriot originated SBA 7(a) loans, on which the SBA has historically provided guarantees of 75% of the principal balance. However, during the pandemic in 2020, the SBA temporarily increased the guarantees to 90% and reverted to 75% on October 1, 2021. The guaranteed portion of the Company’s SBA loans is generally sold in the secondary market with the unguaranteed portion held in the portfolio as a loan held for investment. SBA loans are for the purpose of providing working capital, financing the purchase of equipment, inventory, or commercial real estate and for other business purposes. Loans are guaranteed by the businesses' major owners. SBA loans are made based primarily on the historical and projected cash flow of the business and secondarily on the underlying collateral provided. SBA loans held for investment are included in the commercial real estate loans and commercial and industrial loan classifications, which totaled $20.8 million and $29.9 million as of June 30, 2025 and December 31, 2024, respectively.
In the second quarter of 2025, the Bank made the decision to voluntarily suspend its status as a participant in SBA’s Preferred Lender Program (“PLP”). This decision was made in response to the Bank’s desire to temporarily exit the SBA lending business and the Bank’s Definitive Agreement with the OCC. It is possible that the Bank will determine in the future that it is prudent to petition to the SBA for reinstatement in the PLP.
Risk characteristics of the Company’s portfolio classes include the following:
Commercial Real Estate Loans ("CRE" Loans)
In underwriting commercial real estate loans, Patriot evaluates both the prospective borrower’s ability to make timely payments on the loan and the value of the property securing the loans. Repayment of such loans may be negatively impacted should the borrower default, the value of the property collateralizing the loan substantially declines, or there is deterioration in general economic conditions. Where the owner occupies the property, Patriot also evaluates the business’ ability to repay the loan on a timely basis and may require personal guarantees, lease assignments, and/or the guarantee of the operating company.
Real estate mortgage loans consist of loans secured by commercial and residential real estate. Commercial real estate lending includes Non-Owner-Occupied CRE and Owner-Occupied CRE. Non-Owner-Occupied CRE loans are typically repaid with resources primarily generated by rents from leases to third party tenants. Non-Owner-Occupied CRE is dependent upon successful management, marketing and expense supervision necessary to maintain the property. Repayment of these loans may be adversely affected by conditions in the real estate market or the general economy. Owner-Occupied CRE loans are utilized by a business for the purpose of providing the space needs for that business and the running of its operations. Repayment is dependent on the cash flow and successful operations of the business. Repayment of these loans may be adversely affected by conditions in the specific owner’s industry in addition to the general economy.
During the three and six months ended June 30, 2025 and 2024, Patriot did not purchase any commercial real estate loans.
Residential Real Estate Loans
Patriot’s residential real estate loan portfolio consists primarily of purchased residential loans. The repayment of residential real estate loans, as well as the loans secured by residential real estate, may be negatively impacted if borrowers experience financial difficulties, if there is a significant decline in the value of the property securing the loan, or if there are declines in general economic conditions. During the three and six months ended June 30, 2025, Patriot purchased $92,000 and $178,000 residential real estate loans, respectively. During the three and six months ended June 30, 2024, Patriot purchased $38,000 and $86,000 of residential real estate loans, respectively. During the three and six months ended June 30, 2025, the Bank sold $28.9 million of purchased residential loans.
Commercial and Industrial Loans
Patriot’s commercial and industrial loan portfolio consists primarily of commercial business loans and lines of credit to businesses and professionals. These loans are generally for the financing of accounts receivable, purchases of inventory, purchases of new or used equipment, or for other short- or long-term working capital purposes – and in some cases to finance the CRE and physical buildings used by companies to carry out their business activities. These loans are generally secured by business assets but are also occasionally offered on an unsecured basis. In granting these types of loans, Patriot considers the borrower’s cash flow as the primary source of repayment, supported by the value of collateral, if any, and personal guarantees, as applicable. Repayment of commercial and industrial loans may be negatively impacted by adverse changes in economic conditions, ineffective management, claims on the borrower’s assets by others that are superior to Patriot’s claims, a loss of demand for the borrower’s products or services, or the death or disability of the borrower or other key management personnel.
Commercial and industrial loans include risks associated with borrower’s cash flow, debt service coverage and management’s expertise. These loans are subject to the risk that the Company may have difficulty converting collateral to a liquid asset if necessary, as well as risks associated with degree of specialization, mobility and general collectability in a default situation. These commercial loans may be subject to many different types of risks, including fraud, bankruptcy, economic downturn, deteriorated or non-existent collateral, and changes in interest rates.
Patriot’s syndicated loan portfolio totaled $5.6 million and $5.7 million at June 30, 2025 and December 31, 2024, respectively. The syndicated loans are included in the commercial and industrial loan classification and are primarily comprised of loan transactions led by major financial institutions and regional banks, which are the Agent Bank or Lead Arranger, and are referred to as syndicated loans or "Shared National Credits (SNC)". SNC loans were determined to be complementary to the Bank’s existing commercial and industrial loan portfolio and product offerings. Further originations in this loan class are not expected.
Consumer and Other Loans
Patriot offers individual consumers various forms of credit including installment loans, credit cards, overdraft protection, auto loans and reserve lines of credit. Repayments of such loans are generally dependent on the personal income of the borrower, which may be negatively impacted by adverse changes in economic conditions. The Company does not place a high emphasis on originating these types of loans.
Consumer loans carry a moderate degree of risk compared to other loans. They are generally more risky than traditional residential real estate loans, and carry generally low relative balances across a diverse borrowing pool. Risk of default is assessed based on FICO scores, debt to income ratios, historical loss rates other common consumer loan metrics. For the pool of purchased unsecured consumer loans, the risk of default and necessary ACL is assessed on an individual loan basis using a customized model that heavily weights payment/delinquency status, FICO scores, and remaining loan life until maturity.
The Company has purchased unsecured consumer loans from a third party which are higher yielding loans of 2-5 year terms that are expected to continue to result in increased levels of charge-offs. Loans outstanding under this program at June 30, 2025 and December 31, 2024 totaled $12.4 million and $20.7 million, respectively. No loans were purchased under this program for the three and six months ended June 30, 2025, and 2024.
The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories that are typically characterized by payment delinquencies, previous charge-offs, judgments against the consumer, a history of bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burdened ratios.
During the three and six months ended June 30, 2025 and 2024, Patriot did not purchase any home equity line of credit loans (“HELOC”). During the three and six months ended June 30, 2025, the Bank sold $15.9 million of HELOCs.
Construction Loans
Construction loans are of a short-term nature, generally of eighteen months or less, that are secured by land and improvements intended for commercial, residential, or mixed-use development. Loan proceeds may be used for the acquisition of or improvements to the land under development and funds are generally disbursed as phases of construction are completed.
Included in this category are loans to construct single family homes where no contract of sale exists, based upon the experience and financial strength of the builder, the type and location of the property, and other factors. Construction loans tend to be personally guaranteed by the principal(s). Repayment of such loans may be negatively impacted by an inability to complete construction, a downturn in the market for new construction, by a significant increase in interest rates, or by decline in general economic conditions. The construction loans outstanding at June 30, 2025 and December 31, 2024 totaled $1.5 million and $3.8 million, respectively.
Construction to Permanent - Commercial Real Estate
Construction to permanent loans represent a one-time close of a construction facility with simultaneous conversion to an amortizing mortgage loan. Construction to permanent loans combine a short-term period similar to a construction loan, generally with a variable rate, and a longer term CRE loan typically 20-25 years, resetting every five years to the Federal Home Loan Bank (“FHLB”) rate.
Close of the permanent facility typically occurs when events dictate, such as receipt of a certificate of occupancy and property stabilization, which is defined as cash flow sufficient to support a pre-defined minimum debt coverage ratio and other conditions and covenants particular to the loan. Construction facilities are typically variable rate instruments that, upon conversion to an amortizing mortgage loan, reset to a fixed rate instrument that is the greater of the in-force variable rate plus a predetermined spread over a reference rate (e.g., prime) or a minimum interest rate.
Real estate construction loans include risks associated with the borrower’s credit-worthiness, contractor’s qualifications, borrower and contractor performance, and the overall risk and complexity of the proposed project. Construction lending is also subject to risks associated with sub-market dynamics, including population, employment trends and household income. During times of economic stress, this type of loan has typically had a greater degree of risk than other loan types.
Allowance for Credit Losses
The Company adopted ASU 2016-13 on January 1, 2023, which introduced the current expected credit loss ("CECL") methodology for estimating all expected losses over the life of a financial asset. Under the CECL methodology, the allowance for credit losses ("ACL") is measured on a collective basis for pools of loans with similar risk characteristics. For loans that do not share similar risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For all loan segments collectively evaluated, losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable forecast period losses are reverted to long-term historical averages. The estimated credit losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses.
The Company estimates expected credit losses for pooled loans using a modeling method that incorporates probability of default ("PD") and loss given default ("LGD"). The PD model employs a quarterly risk-rating transition method to estimate the probability of default by simulating loan downgrades and assigning increasing default probabilities to each loan. This captures the likelihood that borrowers will be unable to repay their loans according to the original terms. The LGD calculation considers characteristics such as collateral value and vintage, underlying collateral characteristics (e.g., CRE vs. residential, owner-occupied vs. investment), a floor for the LGD calculation (minimum loss in event of default regardless of collateral protection), and other relevant underwriting characteristics. Also calculated is the exposure at default. The probability of default is multiplied by the loss given default and the exposure at default. This calculation is forecasted for every year remaining in the life of each loan, and the results are aggregated to determine the necessary level of ACL for the pooled loans. Forecasted exposure at default can be influenced by prepayments speeds, which management elected to discount in part to reflect the expectation of slower voluntary prepayments in the face of an increasing interest rate environment.
Pursuant to guidance provided in OCC Bulletin 2020-49 and Interagency Policy Statement on Allowances for Credit Losses (May 8, 2020), the Bank refined the use of qualitative factors (“Q-Factors”) in its ACL methodology and calculations in the second quarter of 2025. In the second quarter of 2025, management determined that an adjustment to the Q-factors was warranted.
The Company maintains an ACL on unfunded lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the ACL for loans, modified to take into account the probability of a drawdown on the commitment. The ACL on unfunded loan commitments is classified as a liability account on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these credit losses is recorded as a component of provision for credit losses. The allowance for credit losses on unfunded commitments was $81,000 at June 30, 2025 and $182,000 at December 31, 2024.
The following tables summarize the activity in the allowance for credit losses, allocated to segments of the loan portfolio, for the six months ended June 30, 2025 and 2024:
(In thousands)Commercial
Real Estate 		Residential
Real Estate 		Commercial
and
Industrial 		Consumer
and
Other 		Construction Construction to
Permanent
- CRE 		Total
Three Months Ended June 30, 2025
Allowance for credit losses:
March 31, 2025$2,275 $639 $1,168 $2,607 $8 $32 $6,729 
Charge-offs— — (11)(754)— — (765)
Recoveries— — 20 209 — — 229 
Provisions (credits)161 (120)608 988 (3)(32)1,602 (1)
June 30, 2025$2,436 $519 $1,785 $3,050 $5 $— $7,795 
Three Months Ended June 30, 2024
Allowance for credit losses:
March 31, 2024$5,620 $671 $1,199 $6,280 $7 $— $13,777 
Charge-offs— — (404)(1,849)— — (2,253)
Recoveries— — 72 260 — — 332 
Provisions (credits)2,338 7 348 442 (2)— 3,133 (2)
June 30, 2024$7,958 $678 $1,215 $5,133 $5 $— $14,989 
(1) The provision on credit losses included in the above table for the three months ended June 30, 2025 does not include the credit on unfunded loan commitments of $78,000.
(2) The provision on credit losses included in the above table for the three months ended June 30, 2024 does not include the credit on unfunded loan commitments of $41,000.
The following tables summarize the activity in the allowance for credit losses, allocated to segments of the loan portfolio, for the six months ended June 30, 2025 and 2024:
(In thousands)Commercial
Real Estate 		Residential Real Estate Commercial
and
Industrial 		Consumer
and
Other 		Construction Construction
to
Permanent
- CRE 		Total
Six Months Ended June 30, 2025      
Allowance for credit losses:      
December 31, 2024$2,241 $596 $1,077 $3,386 $5 $— $7,305 
Charge-offs(635)— (130)(1,670)— — (2,435)
Recoveries— — 106 461 — — 567 
Provisions (credits)830 (77)732 873 — — 2,358 (3)
June 30, 2025$2,436 $519 $1,785 $3,050 $5 $— $7,795 
Six Months Ended June 30, 2024
Allowance for credit losses:
December 31, 2023$6,089 $607 $1,269 $7,843 $4 $113 $15,925 
Charge-offs(158)(21)(814)(4,372)— — (5,365)
Recoveries— — 78 565 — — 643 
Provisions (credits)2,027 92 682 1,097 1 (113)3,786 (4)
June 30, 2024$7,958 $678 $1,215 $5,133 $5 $— $14,989 
(3) The provision on credit losses for the six months ended June 30, 2025 does not include the credit on unfunded loan commitments of $101,000.
(4) The provision on credit losses for the six months ended June 30, 2024 does not include the credit on unfunded loan commitments of $36,000.
The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for allowance for credit losses as of June 30, 2025 and December 31, 2024:
(In thousands)Commercial
Real Estate 		Residential
Real Estate 		Commercial
and
Industrial 		Consumer
and
Other 		Construction Construction to
 Permanent
 - CRE 		Total
June 30, 2025
Allowance for credit losses:
Individually evaluated loans$— $— $— $— $— $— $— 
Collectively evaluated loans2,436 519 1,785 3,050 5 — 7,795 
Total allowance for credit losses$2,436 $519 $1,785 $3,050 $5 $— $7,795 
Loans receivable, gross:
Individually evaluated loans$20,892 $— $2,856 $— $— $31 $23,779 
Collectively evaluated loans349,484 60,123 119,305 33,363 1,494 — 563,769 
Total loans receivable, gross$370,376 $60,123 $122,161 $33,363 $1,494 $31 $587,548 
(In thousands)Commercial
Real Estate 		Residential
Real Estate 		Commercial
and
Industrial 		Consumer
and
Other 		Construction Construction to
Permanent
- CRE 		Total
December 31, 2024
Allowance for credit losses:
Individually evaluated loans$403 $— $60 $— $— $— $463 
Collectively evaluated loans1,838 596 1,017 3,386 5 — 6,842 
Total allowance for credit losses$2,241 $596 $1,077 $3,386 $5 $— $7,305 
Loans receivable, gross:
Individually evaluated loans$19,335 $— $3,323 $— $— $2,357 $25,015 
Collectively evaluated loans400,154 92,215 126,285 59,973 3,830 — 682,457 
Total loans receivable, gross$419,489 $92,215 $129,608 $59,973 $3,830 $2,357 $707,472 
Patriot monitors the credit quality of its loans receivable on an ongoing basis. Credit quality is monitored by reviewing certain indicators, including covenant compliance, cash flow from business operations, loan to value ratios, debt service coverage ratios, and credit scores.
Patriot employs a risk rating system as part of the risk assessment of its loan portfolio. At origination, credit officers are required to assign a risk rating to each loan in their portfolio, which is ratified or modified by the Credit Committee to which the loan is submitted for approval. If developments occur on a loan that manifest as potential or well-defined weaknesses, in the credit officer’s portfolio of responsibility, the risk rating is reviewed and adjusted, as applicable. In carrying out its oversight responsibilities, the newly established Internal Asset Review Committee ("IARC") can adjust a risk rating based on available information. In addition, the risk ratings on all commercial loans over $250,000 are reviewed by the Credit Department either annually or biannually, depending upon the amount of the Bank’s exposure and other credit metrics.
The IARC ensures the Bank identifies, monitors, and reports credit risk accurately and in a timely manner. IARC is charged with oversight of the Bank’s programs for monitoring, reviewing and dispositioning of the loan portfolio. IARC is responsible for ensuring that risk ratings are updated in a timely fashion, are accurate and that appropriate changes are made anytime there is a significant occurrence with a credit. IARC meets at least quarterly and reviews emerging risk trends with a focus toward the mitigation of risk, improvement of operations, and compliance with regulatory guidance and the Bank's risk appetite.
Additionally, Patriot retains an independent third-party loan review firm to perform a semi-annual analysis of the results of its risk rating process, among other credit and portfolio management functions. The semi-annual review is based on a randomly selected sample of loans within established parameters (e.g., value, concentration), in order to assess and validate the risk ratings assigned to individual loans. Any changes to the assigned risk ratings, based on the semi-annual review, are required to be reported to the IARC.
When assigning a risk rating to a loan, management utilizes the Bank’s internal eleven-point risk rating system. An asset is considered “special mention” when it has a potential weakness based on objective evidence, but does not currently expose the Company to sufficient risk to warrant classification in one of the following categories:
•Substandard: An asset is classified “substandard” if it is not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss, if noted deficiencies are not corrected.
•Doubtful: Assets classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard”, with the added characteristic that the identified weaknesses make collection or liquidation-in-full improbable, on the basis of currently existing facts, conditions, and values.
Charge-offs of loans to reduce the loan to its recoverable value that are solely collateral dependent, generally occur immediately upon confirmation of the partial loss amount. Loans that are cash flow dependent are modeled to reflect the expected cash flows through expected loan maturity, including any proceeds from refinancing or principal curtailment. A specific reserve is established for the amount by which the net investment in the loan exceeds the present value of discounted cash flows. Charge-offs on cash flow dependent loans also generally occur immediately upon confirmation of the partial loss amount. If either type of loan is classified as “Loss”, meaning full loss on the loan is expected, the full balance of the loan receivable is charged off, regardless of the potential recovery from a sale of the underlying collateral. Any amount that may be recovered on the sale of collateral underlying a loan is recognized as a “recovery” in the period in which the collateral is sold. In accordance with Federal Financial Institutions Examination Council published policies establishing uniform criteria for the classification of retail credit based on delinquency status, “Open-end” credits are typically charged off once they reach 180 days past due and “Closed-end” credits are typically charged off once they reach 120 days past due, with limited exceptions for loans secured by 1-4 family residential real estate.
Loan Portfolio Vintage Analysis
The following tables summarize loan amortized cost by vintage, credit quality indicator, class of loans and charge-offs based on year of origination as of June 30, 2025:
Term of Loans by Origination
As of June 30, 2025:20252024202320222021PriorRevolvingTotal Loans
Receivable
Gross
Loan portfolio segment:
Commercial Real Estate:
Pass$— $— $99,571 $94,098 $80,549 $64,076 $— $338,294 
Special mention— — 3,661 3,653 — 1,225 — 8,539 
Substandard— — 183 7,481 10,923 4,956 — 23,543 
Total — — 103,415 105,232 91,472 70,257 — 370,376 
Current period gross charge-offs— — — — — 635 — 635 
Residential Real Estate:
Pass960 3,578 — 1,202 2,769 49,310 961 58,780 
Special mention— — — — — 1,343 — 1,343 
Total 960 3,578 — 1,202 2,769 50,653 961 60,123 
Current period gross charge-offs— — — — — — — — 
Commercial and Industrial:
Pass5,873 786 3,742 12,124 19,275 6,673 58,917 107,390 
Special mention— — 281 18 37 484 4,206 5,026 
Substandard— — 171 351 842 6,120 2,261 9,745 
Total 5,873 786 4,194 12,493 20,154 13,277 65,384 122,161 
Current period gross charge-offs— — — — — 130 — 130 
Consumer and Other:
Pass287 262 1,391 9,774 1,152 14,277 5,767 32,910 
Substandard— — 16 186 — — 251 453 
Total 287 262 1,407 9,960 1,152 14,277 6,018 33,363 
Current period gross charge-offs— 91 1,397 182 — — — 1,670 
Construction:
Pass— — — — 1,494 — — 1,494 
Total — — — — 1,494 — — 1,494 
Construction to Permanent - CRE:
Substandard— — — — 31 — — 31 
Total — — — — 31 — — 31 
Total loans$7,120 $4,626 $109,016 $128,887 $117,072 $148,464 $72,363 $587,548 
 Total Current period gross charge-offs$— $91 $1,397 $182 $— $765 $— $2,435 
Loans receivable, gross:
Pass$7,120 $4,626 $104,704 $117,198 $105,239 $134,336 $65,645 $538,868 
Special mention— — 3,942 3,671 37 3,052 4,206 14,908 
Substandard— — 370 8,018 11,796 11,076 2,512 33,772 
Total Loans receivable, gross$7,120 $4,626 $109,016 $128,887 $117,072 $148,464 $72,363 $587,548 
 Total Current period gross charge-offs$— $91 $1,397 $182 $— $765 $— $2,435 
The following tables summarize loan amortized cost by vintage, credit quality indicator, class of loans and charge-offs based on year of origination as of December 31, 2024:
Term of Loans by Origination
As of December 31, 2024:20232022202120202019PriorRevolvingTotal Loans
Receivable
Gross
Loan portfolio segment:
Commercial Real Estate:
Pass$— $102,906 $130,143 $88,275 $2,085 $69,858 $— $393,267 
Special mention— 3,697 — — — 430 — 4,127 
Substandard— 1,099 6,691 8,615 233 5,457 — 22,095 
Total— 107,702 136,834 96,890 2,318 75,745 — 419,489 
Current period gross charge-offs— — — — — 13,889 — 13,889 
Residential Real Estate:
Pass372 — 1,218 2,811 9,546 74,937 792 89,676 
Special mention— — — — 1,053 1,377 — 2,430 
Substandard— — — — — 109 — 109 
Total372 — 1,218 2,811 10,599 76,423 792 92,215 
Current period gross charge-offs— — — — — 21 — 21 
Commercial and Industrial:
Pass843 2,449 13,607 19,892 839 6,410 69,462 113,502 
Special mention— 289 18 39 — 573 7,389 8,308 
Substandard— 258 486 844 5,669 488 53 7,798 
Total843 2,996 14,111 20,775 6,508 7,471 76,904 129,608 
Current period gross charge-offs— — — — — 1,252 — 1,252 
Consumer and Other:
Pass290 2,514 15,907 1,846 — 15,305 23,381 59,243 
Substandard— 72 393 13 — — 252 730 
Total290 2,586 16,300 1,859 — 15,305 23,633 59,973 
Current period gross charge-offs— 313 5,997 635 — 486 — 7,431 
Construction:
Pass— — — 3,830 — — — 3,830 
Total— — — 3,830 — — — 3,830 
Construction to Permanent - CRE:
Substandard— — — 2,357 — — — 2,357 
Total— — — 2,357 — — — 2,357 
Total loans$1,505 $113,284 $168,463 $128,522 $19,425 $174,944 $101,329 $707,472 
 Total Current period gross charge-offs$— $313 $5,997 $635 $— $15,648 $— $22,593 
Loans receivable, gross:
Pass$1,505 $107,869 $160,875 $116,654 $12,470 $166,510 $93,635 $659,518 
Special mention— 3,986 18 39 1,053 2,380 7,389 14,865 
Substandard— 1,429 7,570 11,829 5,902 6,054 305 33,089 
Loans receivable, gross$1,505 $113,284 $168,463 $128,522 $19,425 $174,944 $101,329 $707,472 
 Total Current period gross charge-offs$— $313 $5,997 $635 $— $15,648 $— $22,593 
Loan Portfolio Aging Analysis
The following tables summarize performing and non-performing (i.e., non-accruing) loans receivable by portfolio segment, by aging category, by delinquency status as of June 30, 2025:
(In thousands)Performing (Accruing) Loans
As of June 30, 2025:30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Performing Loans Non- accruing Loans Loans Receivable Gross
Loan portfolio segment:
Commercial Real Estate:
Pass$5,383 $— $— $5,383 $329,866 $335,249 $3,045 $338,294 
Special mention— — — — 8,539 8,539 — 8,539 
Substandard216 — — 216 5,479 5,695 17,848 23,543 
5,599 — — 5,599 343,884 349,483 20,893 370,376 
Residential Real Estate:
Pass59 — — 59 58,721 58,780 — 58,780 
Special mention— — — — 1,343 1,343 — 1,343 
59 — — 59 60,064 60,123 — 60,123 
Commercial and Industrial:
Pass1,593 1,816 — 3,409 101,982 105,391 1,999 107,390 
Special mention296 — — 296 4,730 5,026 — 5,026 
Substandard— 350 — 350 8,525 8,875 870 9,745 
1,889 2,166 — 4,055 115,237 119,292 2,869 122,161 
Consumer and Other:
Pass337 197 — 534 32,376 32,910 — 32,910 
Substandard— — — — — — 453 453 
337 197 — 534 32,376 32,910 453 33,363 
Construction:
Pass— — — — 1,494 1,494 — 1,494 
— — — — 1,494 1,494 — 1,494 
Construction to Permanent - CRE:
Substandard— — — — — — 31 31 
— — — — — — 31 31 
Total$7,884 $2,363 $— $10,247 $553,055 $563,302 $24,246 $587,548 
Loans receivable, gross:
Pass$7,372 $2,013 $— $9,385 $524,439 $533,824 $5,044 $538,868 
Special mention296 — — 296 14,612 14,908 — 14,908 
Substandard216 350 — 566 14,004 14,570 19,202 33,772 
Loans receivable, gross$7,884 $2,363 $— $10,247 $553,055 $563,302 $24,246 $587,548 
The following tables summarize performing and non-performing loans (i.e., non-accruing) receivable by portfolio segment, by aging category, by delinquency status as of December 31, 2024:
(In thousands)Performing (Accruing) Loans
As of December 31, 2024:30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Performing Loans Non- accruing Loans Loans Receivable Gross
Loan portfolio segment:
Commercial Real Estate:
Pass$— $— $— $— $387,296 $387,296 $5,971 $393,267 
Special mention— — — — 4,127 4,127 — 4,127 
Substandard— — — — 8,732 8,732 13,363 22,095 
— — — — 400,155 400,155 19,334 419,489 
Residential Real Estate:
Pass838 — — 838 88,838 89,676 — 89,676 
Special mention— — — — 2,430 2,430 — 2,430 
Substandard— — — — — — 109 109 
838 — — 838 91,268 92,106 109 92,215 
Commercial and Industrial:
Pass1,107 — — 1,107 110,046 111,153 2,349 113,502 
Special mention— — — — 8,308 8,308 — 8,308 
Substandard350 — — 350 6,456 6,806 992 7,798 
1,457 — — 1,457 124,810 126,267 3,341 129,608 
Consumer and Other:
Pass602 687 — 1,289 57,954 59,243 — 59,243 
Substandard— — — — — — 730 730 
602 687 — 1,289 57,954 59,243 730 59,973 
Construction:
Pass— — — — 3,830 3,830 — 3,830 
— — — — 3,830 3,830 — 3,830 
Construction to Permanent - CRE:
Substandard— — — — — — 2,357 2,357 
— — — — — — 2,357 2,357 
Total$2,897 $687 $— $3,584 $678,017 $681,601 $25,871 $707,472 
Loans receivable, gross:
Pass$2,547 $687 $— $3,234 $647,964 $651,198 $8,320 $659,518 
Special mention— — — — 14,865 14,865 — 14,865 
Substandard350 — — 350 15,188 15,538 17,551 33,089 
Loans receivable, gross$2,897 $687 $— $3,584 $678,017 $681,601 $25,871 $707,472 
The following tables summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of June 30, 2025 and December 31, 2024:
(In thousands) Non-accruing Loans
 30 - 59
Days
Past Due 		60 - 89
Days
Past Due 		90 Days or
Greater Past
Due 		Total
Past Due 		Current Total
Non-accruing
Loans
As of June 30, 2025: 
Loan portfolio segment: 
Commercial Real Estate: 
Pass$— $— $3,045 $3,045 $— $3,045 
Substandard — — 7,952 7,952 9,896 17,848 
Commercial and Industrial: 
Pass— — 1,999 1,999 — 1,999 
Substandard — — 859 859 11 870 
Consumer and Other: 
Substandard — — 453 453 — 453 
Construction to permanent - CRE:
Substandard— — 31 31 — 31 
Total non-accruing loans $— $— $14,339 $14,339 $9,907 $24,246 
 
As of December 31, 2024: 
Loan portfolio segment: 
Commercial Real Estate: 
Pass$— $— $4,461 $4,461 $1,510 $5,971 
Substandard 974 — 7,947 8,921 4,442 13,363 
Residential Real Estate: 
Substandard — — 109 109 — 109 
Commercial and Industrial: 
Pass— — 2,349 2,349 — 2,349 
Substandard 2 — 978 980 12 992 
Consumer and Other: 
Substandard — 6 724 730 — 730 
Construction to permanent - CRE:
Substandard— — 2,357 2,357 — 2,357 
Total non-accruing loans $976 $6 $18,925 $19,907 $5,964 $25,871 
The accrual of interest on loans is discontinued at the time the loan is 90 days past due for payment unless the loan is well-secured and in process of collection. Consumer installment loans are typically charged-off when they become 120 days past due (180 days for open ended consumer credit). Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged-off, at an earlier date, if collection of principal or interest is considered doubtful.
All interest accrued, but not collected for loans that are placed on non-accrual status or charged-off, is reversed against interest income. The interest on these loans is generally accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, after at least six months of timely payment history. The Bank considers loans under $100,000 and consumer installment loans to be pools of smaller homogeneous loan balances, and therefore are collectively evaluated for credit losses, and not individually evaluated for credit losses.
If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income (net of cash collected) of approximately $941,000 and $2.1 million would have been recognized during the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2024, additional interest income (net of cash collected) of approximately $933,000 and $1.5 million would have been recognized, respectively.
Interest income collected and recognized on non-accruing loans for the three and six months ended June 30, 2025 was $64,000 and $82,000, respectively. During the three and six months ended June 30, 2024, interest income collected and recognized on non-accruing loans was $205,000 and $226,000, respectively.
Individually Evaluated Loans
The following table reflects information about the individually evaluated loans by segment as of June 30, 2025 and December 31, 2024:
(In thousands)June 30, 2025December 31, 2024
Recorded
Investment 		Principal
Outstanding 		Related
Allowance 		Recorded Investment Principal Outstanding Related Allowance
With no related allowance recorded:
Commercial Real Estate$20,892 $37,581 $— $18,361 $34,224 $— 
Commercial and Industrial2,856 7,362 — 1,831 2,251 — 
Construction to permanent - CRE31 149 — 2,357 2,476 — 
23,779 45,092 — 22,549 38,951 — 
With a related allowance recorded:
Commercial Real Estate— — — 974 969 403 
Commercial and Industrial— — — 1,492 1,810 60 
— — — 2,466 2,779 463 
Individually evaluated loans, Total:
Commercial Real Estate20,892 37,581 — 19,335 35,193 403 
Commercial and Industrial2,856 7,362 — 3,323 4,061 60 
Construction to permanent - CRE31 149 — 2,357 2,476 — 
Total$23,779 $45,092 $— $25,015 $41,730 $463 
The following table summarizes additional information regarding individually evaluated loans by segment for the three and six months ended June 30, 2025 and 2024:
Three Month Ended June 30,Six Months Ended June 30,
(In thousands)2025202420252024
Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized
With no related allowance recorded:
Commercial Real Estate$22,847 $64 $5,107 $— $23,626 $82 $5,108 $— 
Residential Real Estate— — 172 8 — — 172 8 
Commercial and Industrial2,873 — 5,026 23 2,979 — 4,513 27 
Construction to permanent - CRE1,775 — 2,411 — 2,025 — 2,433 — 
27,495 64 12,716 31 28,630 82 12,226 35 
With a related allowance recorded:
Commercial Real Estate— — 22,763 159 — — 22,942 159 
Commercial and Industrial— — 217 — — — 577 — 
— — 22,980 159 — — 23,519 159 
Individually evaluated loans, Total:
Commercial Real Estate22,847 64 27,870 159 23,626 82 28,050 159 
Residential Real Estate— — 172 8 — — 172 8 
Commercial and Industrial2,873 — 5,243 23 2,979 — 5,090 27 
Construction to permanent - CRE1,775 — 2,411 — 2,025 — 2,433 — 
Total$27,495 $64 $35,696 $190 $28,630 $82 $35,745 $194 
Credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis (individually evaluated loans). Individual evaluations are performed for nonaccrual loans in excess of $100,000 as well as selected substandard loans. Specific allowances were estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows.
For collateral dependent loans, appraisal reports of the underlying collateral have been obtained from independent licensed appraisal firms. For non-performing loans, the independently determined appraised values were reduced by 8% in selling costs, in order to estimate the potential loss, if any, that may eventually be realized. Performing loans are monitored to determine when, if at all, additional credit loss reserves may be required for a loss of underlying collateral value. For cash flow dependent loans, the Bank determined the reserve based on the present value of expected future cash flows discounted at the loan's effective interest rate.
Loans not requiring specific reserves had fair values exceeding the total recorded investment, supporting the net investment in the loan which includes principal balance, unamortized fees and costs and accrued interest, if any. Once a borrower is in default, Patriot is under no obligation to advance additional funds on unused commitments.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
On a case-by-case basis, Patriot may agree to modify the contractual terms of a borrower’s loan to assist customers who may be experiencing financial difficulty. Most loan modifications involve an extension of the term of the loan. In addition, when modifying commercial loans, Patriot frequently obtains additional collateral,principal curtailments, or enhanced guarantor support. If the borrower has performed under the existing contractual terms of the loan and Patriot’s underwriters determine that the borrower has the capacity to continue to perform under the terms of the loan, the loan continues accruing interest. Non-accruing modified loans may be returned to accrual status when there has been a sustained period of performance (generally six consecutive months of payments) and both principal and interest are reasonably assured of collection.
During the three and six months ended June 30, 2025 and 2024, the Company had no modified loans made to borrowers experiencing financial difficulty. There were no modified loans that had a payment default during the three and six months ended June 30, 2025 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. As of June 30, 2025 and December 31, 2024, there were no commitments to advance additional funds under the modified loans.