Fair Value and Interest Rate Risk (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of 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, 2025 and December 31, 2024:


(In thousands)		September 30, 2025				December 31, 2024
	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	$	2,106	$	2,106	$	3,295	$	3,295
Interest-bearing deposits due from banks	Level 1	178,889		178,889		144,273		144,273
Restricted cash	Level 1	20,535		20,535		15,042		15,042
Available-for-sale securities	Level 2	93,791		93,791		68,869		68,869
Available-for-sale securities	Level 3	11,758		11,758		11,123		11,123
Other investments	Level 2	—		—		4,450		4,450
Federal Reserve Bank stock	Level 2	2,452		2,452		1,377		1,377
Federal Home Loan Bank stock	Level 2	679		679		779		779
Loans receivable, net	Level 3	581,479		560,767		700,167		675,901
Loans held for sale	Level 2	18,408		18,408		15,702		15,702
Servicing assets	Level 3	669		663		766		852
Other real estate owned	Level 2	—		—		2,843		2,843
Accrued interest receivable	Level 2	4,257		4,257		5,488		5,488
Retained beneficial interest	Level 3	606		606		—		—
Interest rate swap receivable	Level 2	42		42		83		83

Financial assets, total		$	915,671	$	894,953	$	974,257	$	950,077

Financial Liabilities:
Demand deposits	Level 2	$	87,766	$	87,766	$	119,212	$	119,212
Negotiable order of withdrawal accounts	Level 2	22,845		22,845		31,549		31,549
Savings deposits	Level 2	32,478		32,478		38,743		38,743
Interest bearing DDA	Level 2	158,620		158,620		110,448		110,448
Money market deposits	Level 2	162,948		162,948		262,023		262,023
Time deposits	Level 2	179,550		168,729		227,811		227,515
Brokered deposits	Level 1	170,470		170,592		176,811		176,544
Specialty - Other Deposits	Level 1	16,178		16,178		—		—
FHLB, FRB and correspondent bank borrowings	Level 2	—		—		3,000		3,000
Senior notes	Level 2	—		—		11,861		11,677
Subordinated debt	Level 2	8,283		8,134		9,898		9,575
Junior subordinated debt owed to unconsolidated trust	Level 2	8,155		8,155		8,147		8,147
Note payable	Level 3	—		—		162		158
Accrued interest payable	Level 2	380		380		1,417		1,417
Interest rate swap liability	Level 2	42		42		83		83
Financial liabilities, total		$	847,715	$	836,867	$	1,001,165	$	1,000,091

Schedule of 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, 2025 and December 31, 2024:


(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, 2025:
U. S. Government agency and mortgage-backed securities	$	—	$	85,090	$	—	$	85,090
Corporate bonds	—		1,737		11,758		13,495
Subordinated notes	—		3,625		—		3,625
SBA loan pools	—		3,339		—		3,339
Municipal bonds	—		—		—		—
Available-for-sale securities	$	—	$	93,791	$	11,758	$	105,549

Interest rate swap receivable	$	—	$	42	$	—	$	42

Interest rate swap liability	$	—	$	42	$	—	$	42

December 31, 2024:
U. S. Government agency and mortgage-backed securities	$	—	$	60,223	$	—	$	60,223
Corporate bonds	—		1,612		11,123		12,735
Subordinated notes	—		3,461		—		3,461
SBA loan pools	—		3,573		—		3,573
Municipal bonds	—		—		—		—
Available-for-sale securities	$	—	$	68,869	$	11,123	$	79,992

Interest rate swap receivable	$	—	$	83	$	—	$	83

Interest rate swap liability	$	—	$	83	$	—	$	83

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

The reconciliation of the beginning and ending balances during the three and nine months ended September 30, 2025 and 2024 for Level 3 available-for-sale securities is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2025		2024		2025		2024
Level 3 fair value, beginning of period	$	11,477	$	10,365	$	11,123	$	10,262


Unrealized gain	281		776		635		879

Level 3 fair value, end of period	$	11,758	$	11,141	$	11,758	$	11,141

Schedule of 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, 2025 and December 31, 2024:


(In thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
September 30, 2025:
Individually evaluated loans, net	$	23,046	Real Estate Appraisals	Discount for appraisal type	8.0	%	-	20%

Servicing assets	663		Discounted Cash Flows	Market discount rates	14.73	%	-	14.90%

December 31, 2024:
Individually evaluated loans, net	$	24,552	Real Estate Appraisals	Discount for appraisal type	5.8	%	-	20%

Servicing assets	852		Discounted Cash Flows	Market discount rates	14.73	%	-	14.90%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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