Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023.


(In thousands)	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	2,283	$	44	$	—
State	474		62		180
	2,757		106		180

Deferred:
Federal	(3,347)		1,117		1,860
State	(864)		373		(2,121)
	(4,211)		1,490		(261)

Income tax (benefit) expense	$	(1,454)	$	1,596	$	(81)

Schedule of Effective Income Tax Rate Reconciliation

For each of the years in the three-year period ended December 31, 2023, 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,
	2023		2022		2021

Income taxes at statutory Federal rate	$	(1,183)	$	1,629	$	1,053
State taxes, net of Federal benefit	(309)		343		404
Project expenses for merger and acquisition	—		(383)		383
Deferred tax valuation allowance	—		—		(1,938)
Reversal UTP on Federal DTA	—		—		—
Nondeductible expenses	13		(3)		(10)
Other	25		10		27

Income tax (benefit) expense	$	(1,454)	$	1,596	$	(81)

Schedule of Deferred Tax Assets and Liabilities

The significant components of Patriot’s net deferred tax assets at December 31, 2023 and 2022 are presented below.


(In thousands)	December 31,
	2023		2022
Deferred tax assets:
Federal NOL carryforward benefit	$	3,247	$	3,321
NOL write-off for Sec 382 Limit	(3,247)		(3,258)
Capitalized cost temporary item	10,237		3,023
State NOL carryforward benefit	2,803		3,128
Unrealized loss AFS securities	5,608		5,440
CECL transition	4,228		—
Allowance for credit loss	799		2,793
Lease liabilities	501		634
Non-accrual interest	671		907
Merger and acquisition	154		171
Accrued expenses	82		80
Goodwill and intangible	369		104
Depreciation of premises and equipment	158		120

Other	12		25
Gross deferred tax assets	25,622		16,488

Total deferred tax assets	$	25,622	$	16,488


Deferred tax liabilities:
Expected credit loss for unfunded commitments	(663)		—
Right-of-use assets	(469)		(597)
Prepaid Expenses	(343)		(337)
Other	(13)		(27)
Gross deferred tax liabilities	(1,488)		(961)

Net deferred tax asset	$	24,134	$	15,527