Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of the Income Tax Provision (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, 2025.


	Year Ended December 31,
(In thousands)	2025		2024		2023
Current:
Federal	$	—	$	(71)	$	2,283
State	—		32		474
	—		(39)		2,757

Deferred:
Federal	34		14,644		(3,347)
State	25		9,180		(864)
	59		23,824		(4,211)

Provision (benefit) for income taxes	$	59	$	23,785	$	(1,454)

Schedule of Reconciliation of the Anticipated Income Tax Benefit

For each of the years in the three-year period ended December 31, 2025, the difference between the federal statutory income tax rate and Patriot’s effective income tax rate reconciles as follows:


	Year Ended December 31,
(In thousands)	2025		%	2024		2023
Income taxes at statutory Federal rate	$	(2,657)	21.00%	$	(3,380)	$	(1,183)
State taxes, net of Federal benefit(a)	20		(0.16)%	(390)		(309)

Deferred tax valuation allowance	2,679		(21.18)%	27,583		—

Nondeductible expenses	17		(0.13)%	20		13
Other	—			(48)		25

Provision (benefit) for income taxes	$	59	(0.47)%	$	23,785	$	(1,454)

(a)State taxes in Connecticut and New York made up the majority (greater than 50%) of the tax effect in this category.

Schedule of Deferred Tax Assets and Liabilities

The significant components of Patriot’s net deferred tax (liabilities) assets at December 31, 2025 and 2024 are presented below.


	December 31,
(In thousands)	2025		2024
Deferred tax assets:
Federal NOL carryforward benefit	$	10,673	$	8,800
NOL write-off for Sec 382 Limit	(3,258)		(3,258)
Capitalized cost temporary item	8,450		9,112
State NOL carryforward benefit	4,884		4,276
Unrealized loss AFS securities	4,333		5,259

Allowance for credit loss	1,820		1,944
Lease liabilities	316		404
Non-accrual interest	1,890		1,026
Merger and acquisition	119		133
Accrued expenses	28		44
Goodwill and intangible	297		325
Depreciation of premises and equipment	197		178
Share based compensation	1,233		17
Other	8		8
Gross deferred tax assets	30,992		28,268
Less deferred tax asset valuation allowance	(30,992)		(28,268)
Total deferred tax assets	$	—	$	—


Deferred tax liabilities:

Right-of-use assets	(298)		(385)
Prepaid Expenses	(459)		(334)
Other	(25)		(5)
Gross deferred tax liabilities	(783)		(724)

Net deferred tax (liabilities) assets	$	(783)	$	(724)