
(In thousands)	June 30, 2026		December 31, 2025
Loan portfolio segment:
Commercial Real Estate	$	487,265	$	346,191
Residential Real Estate	201,153		79,667
Commercial and Industrial	189,094		146,828
Consumer and Other	8,396		19,877


Loans receivable, gross	885,909		592,562
Allowance for credit losses	(8,469)		(6,839)
Loans receivable, net	$	877,440	$	585,723

The Bank’s existing loan portfolio has consisted of commercial real estate (“CRE”) loans, commercial and industrial loans, residential real estate loans (primarily purchased), consumer loans, and a limited volume of construction loans. 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 can be dependent to some degree on the regional economy and real estate market conditions.

Patriot maintains credit policies applicable to each lending activity and evaluates the creditworthiness of every borrower. Unless mitigating factors exist, commercial real estate loans are generally limited to 75% of the market value of the underlying collateral; multifamily real estate loans are limited to 75% to 80% loan-to-value; and construction loans (none currently outstanding) were limited to 75% of “as-completed” appraised value. Real estate is the primary form of collateral, although other collateral types include accounts receivable, inventory, marketable securities, time deposits and other business assets.

CRE loans include both owner-occupied and non-owner-occupied properties. Non-owner-occupied CRE repayment depends primarily on rents from leases to third party tenants, 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. Owner-occupied CRE depends on the borrower’s operating business cash flow. Repayment of these loans may be adversely affected by conditions in the specific owner’s industry in addition to the general economy.

In underwriting CRE loans, Patriot evaluates both the prospective borrower’s ability to make timely payments on the loan, the value of the property(ies) securing the loans and the net operating income generated by such property(ies). 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.

The Bank’s residential real estate portfolio consists largely of purchased 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, 2026, Patriot purchased zero and $108 million residential real estate loans, respectively. During the three and six months ended June 30, 2025, Patriot purchased $92 thousand and $178 thousand residential real estate loans, respectively. The Bank did not sell any purchased residential real estate loans during the three and six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Bank sold $28.9 million of purchased residential 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 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 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 $18.0 million and $18.4 million as of June 30, 2026 and December 31, 2025, 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 Office of the Comptroller of the Currency (“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.

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. Probability of default is assessed based on FICO scores, debt to income ratios, historical loss rates other common consumer loan metrics.

In 2025, the Bank sold a portfolio of 1,092 individual unsecured consumer loans purchased under a program from a third party with unpaid principal balance of $9.0 million. The sale reduced the Bank’s consumer loan exposure and loans outstanding under this program at June 30, 2026 and December 31, 2025 to $0.3 million and $0.7 million respectively. No loans previously purchased under this program were sold during the three and six months ended June 30, 2026 and 2025.

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 third quarter of 2025, the Bank re-started its loan origination activities and implemented three targeted lending initiatives designed to prudently diversify revenue and strengthen relationship banking among high-quality entrepreneurial borrowers. These programs are fully aligned with the Bank’s credit risk appetite, underwriting standards, and its overall strategic plan. At this time, no other commercial loan products are offered to our customers. As the successful implementation of these new lending programs progresses and matures, the Bank continues to evaluate additional commercial lending products consistent with its strategic plan and risk appetite.

The Bank introduced a tailored unsecured line of credit product for qualifying high net worth clients. The facility provides short-term liquidity for qualified borrowers with substantial financial strength and established deposit or relationship history with the Bank. The proceeds of the lines of credit are utilized for business and investment purposes. Although contractually unsecured for strong credits, the Bank may require a pledge of eligible assets—including cash, marketable securities, or other high-value property—on an “abundance-of-caution” basis. Lines typically range from $250 thousand to $5 million, with maturities of less than one year, and are renewable annually subject to the Bank’s approval. The loans have prime-based interest rates with market origination fees.

The Bank launched a rediscount lending facility product that provides secured, revolving lines of credit to non-bank loan originators and private credit providers. Borrowers pledge single loans or pools of performing loans and leases. Typically, commercial real estate, residential real estate or equipment loans are provided as collateral, which may be replenished as the underlying loans pay down. Typical commitments range from $1 million to $15 million, with terms of 12 to 36 months and pricing on a floating rate basis. The facilities are full-recourse to the borrower and are governed by defined borrowing-base, collateral-performance, and reporting covenants.

The Bank also established a CRE-lending program to finance properties for depositor and relationship clients. Loans generally range from $1 million to $15 million, are secured by first mortgages, and are underwritten to maximum loan-to-value ratios and appropriate debt-service coverage metrics. Interest rates are typically floating rates with terms of 12 to 60 months, and may include extension options.

All three programs are subject to the Bank’s existing credit policies, together with new, enhanced standards and underwriting guidelines. The new lending programs comply with the Bank’s concentration limits, and risk-management controls, including heightened portfolio management routines, borrower and guarantor liquidity testing, and ongoing regulatory reporting. Early production volumes remain modest as the Bank completes pilot transactions and validates credit performance metrics. Each of the new loan products includes minimum deposit requirements designed to strengthen client relationships and promote additional business activities such as treasury management and card services.

risk characteristics with the collectively evaluated pools, evaluations are performed on an individual basis. For all loan categories collectively evaluated, losses are estimated over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable forecast period, loss estimates revert to long-term historical averages. Estimated credit losses are also 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 adjusted in part to reflect the expectation of slower voluntary prepayments in the current interest rate environment. Estimated credit losses are also adjusted for qualitative factors not inherently captured in the quantitative analyses.

The Company also 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 other liabilities on the Consolidated Balance Sheets, 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 $113 thousand at June 30, 2026 and $80 thousand at December 31, 2025.

Effective January 1, 2026, the Company adopted ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans, on a prospective basis. The adoption did not impact the Company’s opening retained earnings. For loans purchased during the first quarter of 2026, the Company recorded an initial allowance for credit losses of $925 thousand as an adjustment to the amortized cost basis, consistent with the new standard.


(In thousands)	Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Construction		Total
Three Months Ended June 30, 2026
Allowance for credit losses:
March 31, 2026	$	2,602	$	1,356	$	3,532	$	289	$	—	$	7,779

Charge-offs	—		—		—		(16)		—		(16)
Recoveries	—		1		7		129		—		136
PSL allowance credit losses	—		—		—		—		—		—
Provisions (credits)	279		(115)		577		(169)		—		572		(1)
June 30, 2026	$	2,881	$	1,241	$	4,115	$	233	$	—	$	8,469

Three Months Ended June 30, 2025
Allowance for credit losses:
March 31, 2025	$	2,275	$	639	$	1,168	$	2,607	$	8	$	6,729

Charge-offs	—		—		(11)		(754)		—		(765)
Recoveries	—		—		20		209		—		229
Provisions (credits)	161		(120)		608		988		(3)		1,602		(2)
June 30, 2025	$	2,436	$	519	$	1,785	$	3,050	$	5	$	7,795


(In thousands)	Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Construction		Total
Six Months Ended June 30, 2026
Allowance for credit losses:
December 31, 2025	$	2,340	$	753	$	3,305	$	441	$	—	$	6,839

Charge-offs	—		—		—		(60)		—		(60)
Recoveries	—		6		82		303		—		390
PSL allowance credit losses	215		710		—		—		—		925
Provisions (credits)	327		(228)		729		(452)		—		375		(3)
June 30, 2026	$	2,881	$	1,241	$	4,115	$	233	$	—	$	8,469

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		(4)
June 30, 2025	$	2,436	$	519	$	1,785	$	3,050	$	5	$	7,795


(In thousands)	Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
June 30, 2026
Allowance for credit losses:
Individually evaluated loans	$	594	$	—	$	2,120	$	1	$	2,715
Collectively evaluated loans	2,287		1,241		1,995		231		5,754
Total allowance for credit losses	$	2,881	$	1,241	$	4,115	$	232	$	8,469

Loans receivable, gross:
Individually evaluated loans	$	13,084	$	575	$	12,007	$	145	$	25,811
Collectively evaluated loans	474,181		200,579		177,087		8,251		860,098
Total loans receivable, gross	$	487,265	$	201,153	$	189,094	$	8,396	$	885,909


(In thousands)	Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2025
Allowance for credit losses:
Individually evaluated loans	$	—	$	—	$	2,100	$	1	$	2,101
Collectively evaluated loans	2,340		753		1,204		440		4,738
Total allowance for credit losses	$	2,340	$	753	$	3,305	$	441	$	6,839

Loans receivable, gross:
Individually evaluated loans	$	7,240	$	57	$	5,197	$	1	$	12,495
Collectively evaluated loans	338,951		79,612		141,628		19,876		580,067
Total loans receivable, gross	$	346,191	$	79,669	$	146,825	$	19,877	$	592,562

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 Internal Asset Review Committee (“IARC”) to which the loan is submitted for approval. If developments occur on a loan that manifest as potential or well-defined weaknesses, the risk rating is reviewed and adjusted, as applicable. In carrying out its oversight responsibilities, the IARC can adjust a risk rating based on available information from the borrower and from asset valuations in the market. In addition, the risk ratings on all commercial loans over $250,000 are reviewed by the IARC annually.

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 an 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.

•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.

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 may be 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.


	Rating of Loans by Origination Year
June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving		Total Loans Receivable Gross
Loan portfolio segment:
Commercial Real Estate:
Pass	$	143,755	$	46,720	$	—	$	78,813	$	85,862	$	117,657	$	1,375	$	474,181

Substandard	—		—		—		116		5,307		7,562		100		13,085
Total	143,755		46,720		—		78,928		91,168		125,219		1,475		487,265
Current period gross charge-offs	—		—		—		—		—		—		—		—
Residential Real Estate:
Pass	20,841		30,681		33,088		31,072		5,251		74,110		5,788		200,830

Substandard	—		—		—		—		—		323		—		323
Total	20,841		30,681		33,088		31,072		5,251		74,434		5,788		201,153
Current period gross charge-offs	—		—		—		—		—		—		—		—
Commercial and Industrial:
Pass	29,500		5,361		666		1,031		7,598		12,325		118,704		175,185
Special mention	—		—		—		1		—		330		650		982
Substandard	—		—		—		751		1,137		2,742		8,299		12,928
Total	29,500		5,361		666		1,783		8,735		15,396		127,653		189,094
Current period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and Other:
Pass	67		179		262		92		266		7,247		108		8,222

Substandard	—		—		—		4		10		160		1		175
Total	67		179		262		96		276		7,407		109		8,396
Current period gross charge-offs	—		—		—		—		60		—		—		60













Total loans	$	194,162	$	82,940	$	34,016	$	111,880	$	105,432	$	222,456	$	135,023	$	885,909
Total Current period gross charge-offs	$	—	$	—	$	—	$	—	$	60	$	—	$	—	$	60

Loans receivable, gross:
Pass	$	194,162	$	82,940	$	34,016	$	111,008	$	98,977	$	211,339	$	125,975	$	858,417
Special mention	—		—		—		1		—		330		650		982
Substandard	—		—		—		871		6,454		10,787		8,400		26,511
Total Loans receivable, gross	$	194,162	$	82,940	$	34,016	$	111,880	$	105,432	$	222,456	$	135,023	$	885,909
Total Current period gross charge-offs	$	—	$	—	$	—	$	—	$	60	$	—	$	—	$	60


	Rating of Loans by Origination Year
As of December 31, 2025:	2025		2024		2023		2022		2021		Prior		Revolving		Total Loans Receivable Gross
Loan portfolio:
Commercial Real Estate:
Pass	$	41,492	$	—	$	78,914	$	89,538	$	72,868	$	48,983	$	—	$	331,795
Special mention	—		—		—		—		—		799		—		799
Substandard	—		—		117		4,258		4,479		4,742		—		13,596
Total	41,492		—		79,031		93,796		77,347		54,524		—		346,191
Current period gross charge-offs	—		—		—		547		232		—		—		778
Residential Real Estate:
Pass	1,234		3,119		—		5,283		20,726		47,213		1,128		78,703
Special mention	—		—		—		—		—		907		—		907
Substandard	—		—		—		—		—		57		—		57
Total	1,234		3,119		—		5,283		20,726		48,178		1,128		79,667
Current period gross charge-offs	—		—		—		—		—		—		—		—
Commercial and Industrial:
Pass	14,710		726		3,272		11,013		17,580		5,224		82,101		134,626
Special mention	—		—		2		17		34		392		4,206		4,651
Substandard	—		—		559		381		842		807		4,959		7,547
Total	14,710		726		3,833		11,410		18,457		6,422		91,266		146,828
Current period gross charge-offs	—		—		—		47		72		11		—		129
Consumer and Other:
Pass	192		262		280		407		7		12,997		5,318		19,464

Substandard	—		—		9		7		—		144		252		413
Total	192		262		289		415		7		13,141		5,570		19,877
Current period gross charge-offs	—		—		93		1,744		232		—		—		2,069
















Loans receivable, gross:
Pass	$	57,628	$	4,107	$	82,467	$	106,242	$	111,182	$	114,417	$	88,547	$	564,590
Special mention	—		—		2		17		34		2,099		4,206		6,358
Substandard	—		—		685		4,646		5,322		5,750		5,211		21,613
Loans receivable, gross	$	57,628	$	4,107	$	83,154	$	110,905	$	116,538	$	122,265	$	97,964	$	592,562
Total Current period gross charge-offs(1)	$	—	$	—	$	93	$	2,337	$	578	$	11	$	—	$	3,020


(In thousands)	Performing (Accruing) Loans
June 30, 2026	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:
Commercial Real Estate:
Pass	$	326	$	—	$	—	$	326	$	473,855	$	474,181	$	—	$	474,181

Substandard	—		—		—		—		1,662		1,662		11,422		13,084
	326		—		—		326		475,517		475,843		11,422		487,265
Residential Real Estate:
Pass	1,173		1,087		—		2,260		198,105		200,365		465		200,830

Substandard	—		—		—		—		—		—		323		323
	1,173		1,087		—		2,260		198,105		200,365		788		201,153
Commercial and Industrial:
Pass	245		—		—		245		174,940		175,185		—		175,185
Special mention	650		—		—		650		331		982		—		982
Substandard	—		—		—		—		274		274		12,654		12,928
	895		—		—		895		175,545		176,440		12,654		189,094
Consumer and Other:
Pass	54		108		—		162		8,060		8,222		—		8,222
Substandard	—		—		—		—		—		—		175		175
	54		108		—		162		8,059		8,222		175		8,396











Total	$	2,448	$	1,195	$	—	$	3,644	$	857,226	$	860,870	$	25,039	$	885,909

Loans receivable, gross:
Pass	$	1,798	$	1,195	$	—	$	2,993	$	854,959	$	857,952	$	465	$	858,417
Special mention	650		—		—		650		331		982		—		982
Substandard	—		—		—		—		1,936		1,936		24,575		26,511
Loans receivable, gross	$	2,448	$	1,195	$	—	$	3,644	$	857,226	$	860,870	$	25,039	$	885,909


(In thousands)	Performing (Accruing) Loans
As of December 31, 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:
Commercial Real Estate:
Pass	$	—	$	—	$	—	$	—	$	328,803	$	328,803	$	2,993	$	331,795
Special mention	—		—		—		—		799		799		—		799
Substandard	—		293		—		293		2,595		2,888		10,708		13,596
	—		293		—		293		332,197		332,489		13,701		346,191
Residential Real Estate:
Pass	—		—		—		—		78,705		78,705		—		78,705
Special mention	—		—		—		—		907		907		—		907
Substandard	—		—		—		—		—		—		57		57
	—		—		—		—		79,612		79,612		57		79,669
Commercial and Industrial:
Pass	1,600		—		—		1,600		129,767		131,367		3,255		134,622
Special mention	—		—		—		—		4,651		4,651		—		4,651
Substandard	—		468		—		468		157		624		6,927		7,551
	1,600		468		—		2,068		134,575		136,643		10,182		146,825
Consumer and Other:
Pass	235		—		—		235		19,229		19,464		—		19,464
Substandard	—		—		—		—		—		—		413		413
	235		—		—		235		19,229		19,464		413		19,877











Total	$	1,835	$	760	$	—	$	2,595	$	565,613	$	568,208	$	24,353	$	592,562

Loans receivable, gross:
Pass	$	1,835	$	—	$	—	$	1,835	$	556,503	$	558,338	$	6,248	$	564,586
Special mention	—		—		—		—		6,358		6,358		—		6,358
Substandard	—		760		—		760		2,752		3,512		18,105		21,617
Loans receivable, gross	$	1,835	$	760	$	—	$	2,595	$	565,613	$	568,208	$	24,353	$	592,562


(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
June 30, 2026
Loan portfolio:
Commercial Real Estate:

Substandard	—		222		11,200		11,422		—		11,422
Residential Real Estate:
Pass	364		100		—		465		—		465
Substandard	—		—		55		55		268		323
Commercial and Industrial:

Substandard	—		—		12,229		12,229		425		12,654
Consumer and Other:

Substandard	—		—		165		165		10		175






Total non-accruing loans	$	364	$	322	$	23,650	$	24,336	$	703	$	25,039

As of December 31, 2025:
Loan portfolio:
Commercial Real Estate:
Pass	$	—	$	—	$	2,993	$	2,993	$	—	$	2,993
Substandard	—		—		10,708		10,708		—		10,708
Residential Real Estate:

Substandard	—		—		57		57		—		57
Commercial and Industrial:
Pass	—		159		3,096		3,255		—		3,255
Substandard	—		1,846		5,081		6,927		—		6,927
Consumer and Other:

Substandard	—		—		397		397		16		413



Construction to permanent - CRE:

Substandard							—				—
Total non-accruing loans	$	—	$	2,005	$	22,332	$	24,337	$	16	$	24,353

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 $1.0 million and $2.0 million would have been recognized during the three and six months ended June 30, 2026, respectively. During the three and six months ended June 30, 2025, additional interest income (net of cash collected) of approximately $0.9 million and $2.1 million would have been recognized, respectively.


(In thousands)	June 30, 2026						December 31, 2025
	Recorded Investment		Principal Outstanding		Related Allowance		Recorded Investment		Principal Outstanding		Related Allowance
With no related allowance recorded:
Commercial Real Estate	$	8,216	$	9,078	$	—	$	7,240	$	22,657	$	—
Residential Real Estate	575		588		—		57		58		—
Commercial and Industrial	7,068		11,884		—		291		288		—
Consumer and Other	144		144		—		—		—		—


	16,004		21,695		—		7,588		23,003		—
With a related allowance recorded:
Commercial Real Estate	4,868		11,149		594		—		—		—

Commercial and Industrial	4,939		4,942		2,120		4,906		4,905		2,100
Consumer and Other	1		1		1		1		1		1


	9,808		16,092		2,715		4,907		4,906		2,101

Individually evaluated loans, Total:
Commercial Real Estate	13,084		20,227		594		7,240		22,657		—
Residential Real Estate	575		588		—		57		58		—
Commercial and Industrial	12,007		16,826		2,120		5,197		5,193		2,100
Consumer and Other	145		145		1		1		1		1


Total	$	25,811	$	37,787	$	2,715	$	12,495	$	27,909	$	2,101


	Three Months Ended June 30,								Six Months Ended June 30,
(In thousands)	2026				2025				2026				2025
	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	$	8,240	$	123	$	22,847	$	64	$	8,264	$	242	$	23,626	$	82
Residential Real Estate	587		—		—		—		592		1		—		—
Commercial and Industrial	7,095		42		2,873		—		7,108		70		2,979		—
Consumer and Other	144		—		—		—		144		—		—		—

Construction to permanent - CRE	—		—		1,775		—		—		—		2,025		—
	16,067		165		27,495		64		16,109		313		28,630		82
With a related allowance recorded:
Commercial Real Estate	4,868		—		—		—		4,868		—		—		—

Commercial and Industrial	4,939		—		—		—		4,939		—		—		—
Consumer and Other	1		—		—		—		1		—		—		—


	9,808		—		—		—		9,808		—		—		—
Individually evaluated loans, Total:
Commercial Real Estate	13,108		123		22,847		64		13,132		242		23,626		82
Residential Real Estate	587		—		—		—		592		1		—		—
Commercial and Industrial	12,034		42		2,873		—		12,047		70		2,979		—
Consumer and Other	145		—		—		—		145		—		—		—

Construction to permanent - CRE	—		—		1,775		—		—		—		2,025		—
Total	$	25,875	$	165	$	27,495	$	64	$	25,917	$	313	$	28,630	$	82

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 non-accrual 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.

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 and/or enhanced guarantor support. If the borrower has performed under the existing contractual terms of the loan and the Bank's underwriters determine that the borrower has the capacity to continue to perform under the terms of the loan, interest continues to be accrued. 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, 2026 and 2025, the Company modified certain loans made to borrowers experiencing financial difficulty, which modifications were comprised of non-material changes to loan terms such as covenant breach forbearance, and short term (six months or less) extensions of maturity. Among loans modified in the preceding twelve months, one loan with a balance of $2.7 million was 30 days past due as of June 30, 2026. As of June 30, 2026 and December 31, 2025, there were no commitments to advance additional funds under the modified loans.