Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax (Benefit)

Following is a summary of the components of the federal and state income tax expense (benefit) for each of the years in the three-year period ended December 31, 2022.


(In thousands)	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	44	$	—	$	(100)
State	62		180		86
	106		180		(14)

Deferred:
Federal	1,117		1,860		(2,448)
State	373		(2,121)		2,125
	1,490		(261)		(323)

Income tax expense (benefit)	$	1,596	$	(81)	$	(337)

Schedule of Effective Income Tax Rate Reconciliation

For each of the years in the three-year period ended December 31, 2022, the difference between the federal statutory income tax rate and Patriot’s effective income tax rate reconciles as follows:


(In thousands)	Year Ended December 31,
	2022		2021		2020

Income taxes at statutory Federal rate	$	1,629	$	1,053	$	(873)
State taxes, net of Federal benefit	343		404		(191)
Project expenses for merger and acquisition	(383)		383		—
Deferred tax valuation allowance	—		(1,938)		1,938
Reversal UTP on Federal DTA	—		—		(1,132)
Nondeductible expenses	(3)		(10)		8
Other	10		27		(87)

Income tax expense (benefit)	$	1,596	$	(81)	$	(337)

Schedule of Deferred Tax Assets and Liabilities

The significant components of Patriot’s net deferred tax assets at December 31, 2022 and 2021 are presented below.


(In thousands)	December 31,
	2022		2021
Deferred tax assets:
Federal NOL carryforward benefit	$	3,321	$	3,605
NOL write-off for Sec 382 Limit	(3,258)		(3,258)
Capitalized cost temporary item	3,023		3,325
State NOL carryforward benefit	3,128		3,168
Allowance for loan loss	2,793		3,017
Lease liabilities	634		746
Non-accrual interest	907		827
Merger and acquisition	171		187
Accrued expenses	80		421
Unrealized loss AFS securities	5,440		569
Goodwill and intangible	104		137
Depreciation of premises and equipment	120		98
Share based compensation	—		3
Other	25		17
Gross deferred tax assets	16,488		12,862

Total deferred tax assets	$	16,488	$	12,862


Deferred tax liabilities:
Right-of-use assets	(597)		(709)
Prepaid Expenses	(337)		—
Other	(27)		(7)
Gross deferred tax liabilities	(961)		(716)

Net deferred tax asset	$	15,527	$	12,146

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(In thousands)	Year Ended December 31,
	2022		2021		2020
Balance, beginning of year	$	—	$	—	$	1,220
Increases due to tax positions related to a prior year	—		—		65
Decreases to tax positions as a result of a lapse of statute	—		—		(1,285)
Balance, end of year	$	—	$	—	$	—