Fair Value and Interest Rate Risk (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Financial Assets and Liabilities

The following table provides a comparison of the carrying amounts and estimated fair values of Patriot’s financial assets and liabilities as of June 30, 2026 and December 31, 2025:


(In thousands)		June 30, 2026				December 31, 2025
	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	$	2,533	$	2,533	$	2,411	$	2,411
Interest-bearing deposits due from banks	Level 1	114,359		114,359		183,980		183,980
Restricted cash	Level 1	4,617		4,617		20,736		20,736
Available-for-sale securities	Level 2	228,942		228,942		212,950		212,950
Available-for-sale securities	Level 3	11,403		11,403		11,727		11,727

Federal Reserve Bank stock	Level 2	3,031		3,031		2,961		2,961
Federal Home Loan Bank stock	Level 2	742		742		679		679
Loans receivable, net	Level 3	877,440		857,856		585,723		571,015
Loans held for sale	Level 2	9,105		9,105		24,513		24,513
Loans held for sale	Level 3	14,592		14,592		—		—
Servicing assets	Level 3	638		626		660		652

Accrued interest receivable	Level 2	6,534		6,534		4,869		4,869
Retained beneficial interest	Level 3	348		348		518		518
Interest rate swap receivable	Level 2	52		52		39		39

Financial assets, total		$	1,274,336	$	1,254,740	$	1,051,675	$	1,037,050

Financial Liabilities:
Demand deposits	Level 2	$	150,464	$	150,464	$	106,766	$	106,766

Savings deposits	Level 2	83,030		83,030		38,036		38,036
Interest bearing DDA	Level 2	497,349		497,349		291,728		285,663
Money market deposits	Level 2	196,762		196,762		191,177		191,177
Time deposits	Level 2	241,435		240,643		283,395		283,401
Brokered deposits	Level 1	31,907		31,907		54,683		54,800



Subordinated debt	Level 2	8,301		8,054		8,289		8,102
Junior subordinated debt owed to unconsolidated trust	Level 2	8,163		8,163		8,157		8,157

Accrued interest payable	Level 2	298		298		615		615
Interest rate swap liability	Level 2	52		52		39		39
Financial liabilities, total		$	1,217,761	$	1,216,722	$	982,885	$	976,756

Schedule of Financial Assets Measured at Fair Value on a 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 June 30, 2026 and December 31, 2025:


(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2026
U. S. Government agency and MBS	$	—	$	220,106	$	—	$	220,106
Corporate bonds	—		1,750		11,403		13,153
Subordinated notes	—		3,861		—		3,861
SBA loan pools	—		3,226		—		3,226

Available-for-sale securities	$	—	$	228,942	$	11,403	$	240,345

Loans held for sale	$	—	$	—	$	14,592	$	14,592

Retained beneficial interest	$	—	$	—	$	348	$	348

Interest rate swap receivable	$	—	$	52	$	—	$	52

Interest rate swap liability	$	—	$	52	$	—	$	52

December 31, 2025:
U. S. Government agency and MBS	$	—	$	204,068	$	—	$	204,068
Corporate bonds	—		1,737		11,727		13,464
Subordinated notes	—		3,752		—		3,752
SBA loan pools	—		3,393		—		3,393

Available-for-sale securities	$	—	$	212,950	$	11,727	$	224,677

Retained beneficial interest	$	—	$	—	$	518	$	518

Interest rate swap receivable	$	—	$	39	$	—	$	39

Interest rate swap liability	$	—	$	39	$	—	$	39

Schedule of Reconciliation of Level 3 Available-for-sale Securities

The reconciliation of the beginning and ending balances during the three and six months ended June 30, 2026 and 2025 for Level 3 assets is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Level 3 fair value, beginning of period	$	12,028	$	10,968	$	12,245	$	11,123


Unrealized (loss)/gain	(277)		509		(494)		354
Transfers in and /or out of Level 3	14,592		—		14,592		—
Level 3 fair value, end of period	$	26,343	$	11,477	$	26,343	$	11,477

Schedule of Quantitative Information About Level 3 Fair Value Measurements

The table below presents the valuation methodology and unobservable inputs for level 3 assets measured at fair value as of June 30, 2026 and December 31, 2025:


(In thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
June 30, 2026
Individually evaluated loans, net	$	23,096	Real Estate Appraisals	Discount for appraisal type	4	%	-	11%

Loans held for sale	14,592		Discounted Cash Flows	Market discount rates	3	%		14%

Servicing assets	635		Discounted Cash Flows	Market discount rates	12.75	%	-	12.75%

Retained beneficial interest	348		Discounted Cash Flows	Market discount rates	10	%	-	15%
				Loss projections (% exposure)	10	%	-	20%
				Claim timing (months)	9 months		-	18 months

December 31, 2025:
Individually evaluated loans, net	$	10,394	Real Estate Appraisals	Discount for appraisal type	8	%	-	14%

Servicing assets	652		Discounted Cash Flows	Market discount rates	10	%	-	15%

Retained beneficial interest	518		Discounted Cash Flows	Market discount rates	10	%	-	15%
				Loss projections (% exposure)	10	%	-	20%
				Claim timing (months)	9 months		-	18 months

- 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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