Parent Company-only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2023

CONDENSED BALANCE SHEETS

December 31, 2023 and 2022


(In thousands)	As of December 31,
	2023		2022
ASSETS
Cash and due from banks	$	997	$	11
Investment in subsidiary	73,757		89,533
Other assets	64		50

Total assets	$	74,818	$	89,594

LIABILITIES AND SHAREHOLDERS' EQUITY
Borrowings	$	29,729	$	29,608
Accrued expenses and other liabilities	706		403
Shareholders' equity	44,383		59,583
Total liabilities and shareholders' equity	$	74,818	$	89,594

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Years Ended December 31, 2023, 2022 and 2021


(In thousands)	Year ended December 31,
	2023		2022		2021
Expenses:
Interest on subordinated debt	$	1,502	$	1,078	$	941
Interest on senior debt	1,159		866		913
Total interest expense	2,661		1,944		1,854
Other expenses	105		87		173
Loss before benefit for income taxes	2,766		2,031		2,027

Benefit for income taxes	(737)		(550)		(540)

Loss before equity in undistributed net income of subsidiary	2,029		1,481		1,487

Equity in undistributed net (loss) income of subsidiary	(2,150)		7,642		6,581

Net (loss) income	(4,179)		6,161		5,094
Equity in subsidiary other comprehensive income (loss), net of subsidiary	384		(14,008)		(1,119)

Total comprehensive (loss) income	$	(3,795)	$	(7,847)	$	3,975

CONDENSED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2023, 2022 and 2021


(In thousands)	Year ended December 31,
	2023		2022			2021
Cash Flows from Operating Activities:
Net (loss) income	$	(4,179)	$	6,161		$	5,094
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Equity in undistributed net income (loss) of subsidiary	2,150		(7,642)			(6,581)
Dividends received from Patriot Bank, N.A.	2,500		900			500
Share-based compensation expense	105		86			150
Amortization of debt issuance costs	177		38			111
Change in assets and liabilities:
(Increase) decrease in other assets	(14)		99			955
Increase (decrease) in accrued expenses and other liabilities	247		(8)			(399)
Net cash provided by (used in) operating activities	986		(366)			(170)

Cash Flows from Investing Activities:
Net increase in investment in Patriot Bank N.A.	—		—			(1)
Net cash used in investing activities	—		—			(1)

Cash Flows from Financing Activities:
Proceeds from issuance of senior notes	—		12,000		—	—
Repayments of senior notes	—		(12,000)		—	—
Net cash used in financing activities	—		—			—

Net increase (decrease) in cash and cash equivalents	986		(366)			(171)

Cash and cash equivalents at beginning of year	$	11	$	377		$	548

Cash and cash equivalents at end of year	$	997	$	11		$	377


Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	2,034	$	1,897		$	1,570




Supplemental Disclosure of Non-cash Activity:
Net change in unrealized (gain) loss on available-for-sale securities	$	(384)	$	14,008		$	1,119
Deferred debt issuance costs	$	56	$	360		$	—
Retained earnings adjustment - ASC 326 adoption	$	11,510	$	—		$	—