• Patriot Reports First Quarter 2022 Net Income of $800,000; continued growth in loans and deposits

    来源: Nasdaq GlobeNewswire / 05 5月 2022 08:30:01   America/New_York

    STAMFORD, Conn., May 05, 2022 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the “Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced net income of $800,000, or $0.20 basic and diluted earnings per share for the quarter ended March 31, 2022, compared to a net income of $854,000, or $0.22 basic and diluted earnings per share reported in the first quarter of 2021. The prior year first quarter results included the recognition of an employee retention tax credit (ERC) of $843,000, while no ERC was recognized in the first quarter of 2022.

    Along with reporting a substantial improvement net interest income and strong earnings, the Bank reported loan growth of 4.6% and deposit growth of 4.2% for the quarter. Net interest margin improved to 3.06% for the first quarter of 2022. The Bank’s prepaid debit card program continues to be an increasing, low-cost funding source and has nearly tripled in size to $146.8 million as of March 31, 2022, from the $50.0 million in July 2020. The portfolio growth provides a substantial improvement to the Bank’s net interest margin and overall funding costs.  

    Patriot President & CEO Robert Russell stated: “The Bank experienced strong earnings and asset generation in the first quarter of 2022. Additionally, margin expansion and continued improvement in nonperforming assets contributed to the outcome for the quarter. The Bank continues to focus on solid asset generation and its cost of funds as we navigate the current economic cycle.”

    Michael Carrazza, Patriot’s Chairman added, “Patriot is on a strong earnings trajectory as exhibited by the demonstrable improvement in business line growth and pre-tax income. The financial performance and internal preparation are supportive toward the pending merger transaction with American Challenger Development Corp (“American Challenger”), which is nearing the final stages of its process. The merger transaction remains subject to regulatory and shareholder approvals.”

    Financial Results:

    As of March 31, 2022, total assets increased $27.0 million to $975.5 million, as compared to $948.5 million on December 31, 2021, primarily due to increase in net loans which increased from $729.6 million on December 31, 2021, to $763.6 million on March 31, 2022. Total deposits increased from $748.6 million on December 31, 2021, to 779.8 million on March 31, 2022.

    Net interest income for the quarter ended March 31, 2022, was $6.8 million, versus $6.1 million for the quarter ended March 31, 2021, with the increase primarily attributable to the growth in the loan portfolio over the past year.

    The Bank’s net interest margin showed continued improvement, with an increase to 3.06% for the quarter ended March 31, 2022, compared with 2.99% for the first quarter of 2021.

    No provision for loan losses was recorded for the quarter ended March 31, 2022 and 2021, due to stability and improvement in classified loans. As of March 31, 2022, the allowance for loan losses was 1.26% of total loans, compared with 1.34% on December 31, 2021.

    Non-interest income for the quarter ended March 31, 2022, was $814,000, versus $442,000 for the quarter ended March 31, 2021. The increase in the current quarter was primarily attributable to gains from sales of SBA loans totaled $208,000 along with higher non-interest income from the prepaid card program.

    Non-interest expense for the quarter ended March 31, 2022, was $6.4 million, versus $5.4 million for the quarter ended March 31, 2021. The 2021 first quarter included an employee retention credit in the amount of $843,000. The organization was no longer eligible for the Employee Retention Credits under the CARES Act program in 2022.

    For the quarter ended March 31, 2022, a provision for income taxes of $311,000 was recorded, compared to a provision for income taxes of $319,000 for the quarter ended March 31, 2021.

    As of March 31, 2022, shareholders’ equity was $62.7 million, compared with $67.3 million on December 31, 2021. Patriot’s book value per share was $15.84 on March 31, 2022, compared with $17.02 on December 31, 2021. The change was attributable to a decline in the market value of the Bank’s investment portfolio during the quarter associated with rising market interest rates.

    About the Company:

    Patriot Bank is headquartered in Stamford and operates 9 branch locations: in Scarsdale, NY; and Darien, Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport, CT with Express Banking locations at Bridgeport/ Housatonic Community College, downtown New Haven and Trumbull at Westfield Mall. The Bank also maintains SBA lending offices in Stamford, Connecticut, Florida, Georgia, Mississippi, along with a Rhode Island operations center.

    Founded in 1994, and now celebrating its 28th year, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is the parent holding company of Patriot Bank N.A. (“Bank”), a nationally chartered bank headquartered in Stamford, CT. Patriot operates with full-service branches in Connecticut and New York and provides lending products and services nationally. Patriot’s mission is to serve its local community and nationwide customer base by providing a growing array of banking solutions to meet the needs of individuals and small businesses owners. Patriot places great value in the integrity of its people and how it conducts business. An emphasis on building strong client relationships and community involvement are cornerstones of Patriot’s philosophy as it seeks to maximize shareholder value.

    “Safe Harbor” Statement Under Private Securities Litigation Reform Act of 1995:
    Certain statements contained in Bancorp’s public statements, including this one, may be forward looking. These forward-looking statements are based on Patriot’s current expectations and assumptions regarding Patriot’s businesses, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent risks, uncertainties, changes in circumstances and other factors that are difficult to predict. Many possible events or factors could affect Patriot’s future financial results and performance and could cause the actual results, performance or achievements of Patriot to differ materially from any anticipated results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: (1) changes in prevailing interest rates which would affect the interest earned on the Company’s interest earning assets and the interest paid on its interest bearing liabilities; (2) the timing of re-pricing of the Company’s interest earning assets and interest bearing liabilities; (3) the effect of changes in governmental monetary policy; (4) the effect of changes in regulations applicable to the Company and the Bank and the conduct of its business; (5) changes in competition among financial service companies, including possible further encroachment of non-banks on services traditionally provided by banks; (6) the ability of competitors that are larger than the Company to provide products and services which it is impracticable for the Company to provide; (7) the state of the economy and real estate values in the Company’s market areas, and the consequent effect on the quality of the Company’s loans; (8) demand for loans and deposits in our market area; (9) recent governmental initiatives that are expected to have a profound effect on the financial services industry and could dramatically change the competitive environment of the Company; (10) other legislative or regulatory changes, including those related to residential mortgages, changes in accounting standards, and Federal Deposit Insurance Corporation (“FDIC”) premiums that may adversely affect the Company; (11) the application of generally accepted accounting principles, consistently applied; (12) the fact that one period of reported results may not be indicative of future periods; (13) the state of the economy in the greater New York metropolitan area and its particular effect on the Company's customers, vendors and communities and other such factors, including risk factors, as may be described in the Company’s other filings with the Securities and Exchange Commission (the “SEC”); (14) political, social, legal and economic instability, civil unrest, war, catastrophic events, acts of terrorism; (15) widespread outbreaks of infectious diseases, including the ongoing novel coronavirus (COVID-19) outbreak; (16) changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; (17) our ability to access cost-effective funding; (18) our ability to implement and change our business strategies; (19) changes in the quality or composition of our loan or investment portfolios; (20) technological changes that may be more difficult or expensive than expected; (21) our ability to manage market risk, credit risk and operational risk in the current economic environment; (22) our ability to enter new markets successfully and capitalize on growth opportunities; (23) changes in consumer spending, borrowing and savings habits; (24) our ability to retain key employees; (25) our compensation expense associated with equity allocated or awarded to our employees, (26) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the Merger Agreement, as amended, between the Company and American Challenger, or the Investment Agreements between the Company and the investors in the capital raise, (27) the failure to obtain the necessary approvals of the Company’s shareholders, (28) the outcome of any legal proceedings that may be instituted against the Company and/or American Challenger, (29) the failure to obtain required governmental approvals or a delay in obtaining such approvals, (30) the failure of any of the closing conditions in the Merger Agreement, as amended or Investment Agreements related to the capital raise, to be satisfied on a timely basis or at all, (31) delays in closing the proposed Merger or capital raise, (32) the possibility that the proposed Merger and capital raise may be more expensive to complete than anticipated, including as a result of unexpected factors or events, and (33) the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the proposed transactions.

    Additional Information and Where to Find It

    In connection with the proposed Merger and capital raise, the Company will file a proxy statement and other relevant documents with the SEC. SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free copy of the proxy statement (when available) and other documents filed by the Company at the SEC's Web site at http://www.sec.gov. The proxy statement and such other documents may also be obtained for free from the Company by directing such request to the Company at 900 Bedford Street, Stamford, CT, 06901, Attention: Michael Carrazza, telephone: (203) 251-8230.

    Participants in the Solicitation

    The Company and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the Merger and capital raise. A list of the names of such directors and executive officers and information concerning such participants’ ownership of Company common stock is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of such Annual Report. Additional information about the interests of those participants may be obtained from reading the proxy statement relating to the Merger and capital raise when it becomes available, or by directing a request to the Company at 900 Bedford Street, Stamford, CT, 06901, Attention: Michael Carrazza, telephone: (203) 251-8230.

    American Challenger and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the Company’s shareholders in connection with the Merger and capital raise. A list of the names of such directors and executive officers and information regarding their interests in the Merger will be contained in the proxy statement when available.

    Contacts:  
    Patriot Bank, N.A.Joseph Perillo    Robert Russell    
    900 Bedford StreetChief Financial Officer President & CEO  
    Stamford, CT 06901203-252-5954203-252-5939 
    www.BankPatriot.com  


    PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES    
    CONSOLIDATED BALANCE SHEETS (Unaudited)     
            
            
    (In thousands)March 31, 2022 December 31, 2021 March 31, 2021
            
    Assets      
    Cash and due from banks:     
    Noninterest bearing deposits and cash$9,026  $3,264  $2,593 
    Interest bearing deposits 35,290   43,781   81,681 
      Total cash and cash equivalents 44,316   47,045   84,274 
    Investment securities:     
    Available-for-sale securities, at fair value 83,260   94,341   57,893 
    Other investments, at cost 4,450   4,450   4,450 
      Total investment securities 87,710   98,791   62,343 
            
    Federal Reserve Bank stock, at cost 2,869   2,843   2,744 
    Federal Home Loan Bank stock, at cost 4,184   4,184   4,503 
            
    Gross loans receivable 773,339   739,488   676,676 
    Allowance for loan losses (9,737)  (9,905)  (10,426)
     Net loans receivable 763,602   729,583   666,250 
            
    SBA loans held for sale 5,820   3,129   2,829 
    Accrued interest and dividends receivable 5,596   5,822   6,270 
    Premises and equipment, net 31,269   31,500   33,128 
    Other real estate owned -   -   1,216 
    Deferred tax asset 13,755   12,146   11,274 
    Goodwill 1,107   1,107   1,107 
    Core deposit intangible, net 284   296   331 
    Other assets 14,992   12,035   9,919 
     Total assets$ 975,504  $ 948,481  $ 886,188 
            
    Liabilities     
    Deposits:     
     Noninterest bearing deposits$237,825  $226,713  $173,520 
     Interest bearing deposits 542,024   521,849   519,358 
      Total deposits 779,849   748,562   692,878 
            
    Federal Home Loan Bank and correspondent bank borrowings 90,000   90,000   90,000 
    Senior notes, net 12,000   12,000   11,946 
    Subordinated debt, net 9,818   9,811   9,789 
    Junior subordinated debt owed to unconsolidated trust, net 8,121   8,119   8,112 
    Note payable 740   791   943 
    Advances from borrowers for taxes and insurance 2,574   1,101   2,158 
    Accrued expenses and other liabilities 9,719   10,753   6,425 
      Total liabilities 912,821   881,137   822,251 
            
    Commitments and Contingencies -   -   - 
            
    Shareholders' equity     
    Preferred stock -   -   - 
    Common stock 106,500   106,479   106,363 
    Accumulated deficit (36,698)  (37,498)  (41,738)
    Accumulated other comprehensive loss (7,119)  (1,637)  (688)
      Total shareholders' equity 62,683   67,344   63,937 
            
     Total liabilities and shareholders' equity$ 975,504  $ 948,481  $ 886,188 
            


    PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES    
    CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)    
            
       Three Months Ended
    (In thousands, except per share amounts)March 31, 2022 December 31, 2021 March 31, 2021
            
    Interest and Dividend Income     
     Interest and fees on loans$7,664 $7,916  $7,743
     Interest on investment securities 570  502   310
     Dividends on investment securities 65  73   34
     Other interest income 21  22   24
      Total interest and dividend income 8,320  8,513   8,111
            
    Interest Expense     
     Interest on deposits 409  387   785
     Interest on Federal Home Loan Bank borrowings 737  756   733
     Interest on senior debt 210  227   229
     Interest on subordinated debt 234  233   234
     Interest on note payable and other 4  3   4
      Total interest expense 1,594  1,606   1,985
            
      Net interest income 6,726  6,907   6,126
            
    (Credit) provision for loan losses -  (200)  -
            
      Net interest income after provision for loan losses 6,726  7,107   6,126
            
    Non-interest Income     
     Loan application, inspection and processing fees 87  54   63
     Deposit fees and service charges 64  61   65
     Gains on sale of loans 208  1,534   94
     Rental income 192  143   130
     Loss on sale of investment securities -  (43)  -
     Other income 263  556   90
      Total non-interest income 814  2,305   442
            
    Non-interest Expense     
     Salaries and benefits 3,346  3,583   2,216
     Occupancy and equipment expenses 836  900   920
     Data processing expenses 330  363   350
     Professional and other outside services 789  956   852
     Project expenses, net 52  1,867   10
     Advertising and promotional expenses 68  39   62
     Loan administration and processing expenses 105  73   24
     Regulatory assessments 174  258   228
     Insurance expenses 77  66   60
     Communications, stationary and supplies 135  154   145
     Other operating expenses 517  520   528
      Total non-interest expense 6,429  8,779   5,395
            
      Income before income taxes 1,111  633   1,173
            
    Provision (benefit) for income taxes 311  (1,262)  319
      Net income$800 $1,895  $854
            
      Basic earnings per share$0.20 $0.48  $0.22
      Diluted earnings per share$0.20 $0.48  $0.22
            


    FINANCIAL RATIOS AND OTHER DATA      
              
         Three Months Ended
       (Dollars in thousands) March 31, 2022 December 31, 2021 March 31, 2021
              
    Quarterly Performance Data:      
              
      Net income $800  $1,895  $854 
      Return on Average Assets  0.34%  0.79%  0.39%
      Return on Average Equity  4.88%  11.21%  5.42%
      Net Interest Margin  3.06%  3.05%  2.99%
      Efficiency Ratio  85.27%  95.30%  82.14%
      Efficiency Ratio excluding project costs  84.58%  75.03%  81.99%
      % increase (decrease) in loans  4.58%  3.49%  -7.33%
      % increase in deposits  4.18%  1.89%  1.05%
      % increase in deposits excluding brokered deposits  1.83%  3.38%  4.66%
              
    Asset Quality:      
      Nonaccrual loans $23,466  $23,095  $24,587 
      Other real estate owned $-  $-  $1,216 
      Total nonperforming assets $23,466  $23,095  $25,803 
              
      Nonaccrual loans / loans  3.03%  3.12%  3.63%
      Nonperforming assets / assets  2.41%  2.43%  2.91%
      Allowance for loan losses $9,737  $9,905  $10,426 
              
      Allowance for loan losses / loans  1.26%  1.34%  1.54%
      Allowance / nonaccrual loans  41.49%  42.89%  42.40%
              
      Gross loan charge-offs $185  $-  $272 
      Gross loan (recoveries) $(17) $(25) $(114)
      Net loan charge-offs (recoveries) $168  $(25) $158 
              
    Capital Data and Capital Ratios      
      Book value per share (1) $15.84  $17.02  $16.21 
              
      Shares outstanding  3,956,492   3,956,492   3,944,272 
              
      Bank Leverage Ratio  9.94%  9.86%  10.12%
              
     (1) Book value per share represents shareholders' equity divided by outstanding shares.    
              
              
              
    Deposits:      
       (In thousands)      
         March 31, 2022 December 31, 2021 March 31, 2021
     Non-interest bearing:      
     Non-interest bearing $120,835  $127,420  $104,766 
     Prepaid DDA  116,990   99,293   68,754 
      Total non-interest bearing  237,825   226,713   173,520 
              
     Interest bearing:      
     NOW  42,272   34,741   34,433 
     Savings  105,871   109,744   103,025 
     Money market  117,049   113,428   128,069 
     Money market - prepaid deposits  29,770   51,090   3,775 
     Certificates of deposit, less than $250,000  158,625   142,246   165,130 
     Certificates of deposit, $250,000 or greater  53,513   53,584   66,470 
     Brokered deposits  34,924   17,016   18,456 
      Total Interest bearing  542,024   521,849   519,358 
              
      Total Deposits $779,849  $748,562  $692,878 
              
      Total Prepaid deposits $146,760  $150,383  $72,529 
              
       Total deposits excluding brokered deposits $744,925  $731,546  $674,422 
              


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