Patriot National Bancorp Announces a 126% Increase in Earnings Over Same Period Last Year

STAMFORD, Conn., April 28, 2016 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot”, “Bancorp” or the “Company”) (NASDAQ:PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today reported net income of $653,000 for the first quarter, or $0.17 diluted income per share. This is compared to $289,000 a year ago, or $0.07 diluted income per share. In the fourth quarter of 2015, the Company reported $532,000 net income, or $0.14 diluted income per share. This is a 126% increase in earnings over the same period last year and a 23% increase over the prior quarter.

Kenneth T. Neilson, President and CEO stated “Growth has, and will continue to be, our primary focus. We have spent the last few years building a solid banking infrastructure, which has given us the foundation to confidently go forward with building our brand, hiring and training additional staff, creating and delivering a best-in-banking customer experience, and showing by doing in the communities we serve.”

Michael Carrazza, Chairman said “We continue to look for acquisition opportunities to better leverage our infrastructure and improve our returns.”

Net interest income before provision for loan losses increased by $344,000 or 6.8%, compared to the fourth quarter of 2015 and increased by $348,000, or 6.9%, as compared to the first quarter of 2015. The growth in net interest income this quarter, over the prior year’s first quarter and last quarter is primarily the result of an increase in loan yields and loan fees. Patriot’s net interest margin was 3.76% for the first quarter compared to 3.62% in the prior quarter and 3.49% in the first quarter of 2015.

No provisions for loan losses were recorded since the first quarter of 2015. The lack of provision during these periods is the result of the credit quality of the loan portfolio and continued improvement in regional economic trends. The Company has now experienced six consecutive quarters of net recoveries.

Non-Interest Income increased by $66,000, or 19%, over last quarter and by $16,000, or 4%, over the same period last year. Loan fees and rental income increased over both prior periods.

Non-interest expense in the first quarter of 2016 increased $156,000, or 3.4%, compared to the fourth quarter of 2015, as a result of increased compensation costs. Compared to the first quarter of 2015, non-interest expenses were relatively flat with a slight increase of $33,000 despite compensation costs increasing by over $200,000.

As of March 31, 2016, total assets have decreased slightly to $636 million, compared to $654 million at December 31, 2015 and $647 million at March 31, 2015. Net loans totaled $480 million at March 31, 2016 compared to $479 million at December 31, 2015 and $494 million at March 31, 2015. While loans decreased $14 million from the first quarter of 2015, April’s loan activity has been strong with the loan portfolio now exceeding $500 million and the pipeline at a record level. Deposits were $426 million at March 31, 2016 compared to $447 million at December 31, 2015 and $457 million at March 31, 2015. Deposits have increased by over $10 million since the end of March.

At March 31, 2016, shareholders’ equity was $62.3 million compared to $61.5 million at December 31, 2015 and $59.3 million a year ago. The Company’s tangible book value per share was $15.75 at March 31, 2016 compared to $15.54 at December 31, 2015 and $15.00 at March 31, 2015.

About the Company

Patriot National Bancorp, Inc. is headquartered in Stamford, Connecticut and the Bank has 10 full service branches, eight in Connecticut and two in New York.

Since opening its doors in 1994, the Company’s mission has been to serve our local communities by helping our neighbors and neighborhood businesses thrive. All lending is handled locally and is specific to each borrower, and the commitment to local businesses goes further to connect, support and grow businesses in both the for-profit and nonprofit sectors, along with municipalities. Patriot believes a well-connected community is a strong community—and that together, all will prosper.

“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 and subject to a variety of risks and uncertainties. These factors include, but are not limited to, (1) changes in prevailing interest rates which would affect the interest earned on Bancorp’s interest earning assets and the interest paid on its interest bearing liabilities, (2) the timing of repricing of Bancorp’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 Bancorp 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 Bancorp to provide products and services which it is impracticable for Bancorp to provide, (7) the state of the economy and real estate values in Bancorp’s market areas, and the consequent effect on the quality of Bancorp’s loans, (8) 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, (9) 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, (10) the application of generally accepted accounting principles, consistently applied, (11) the fact that one period of reported results may not be indicative of future periods, (12) 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 Bancorp’s other filings with the SEC.


PATRIOT NATIONAL BANCORP, INC.
STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended
Dollars in thousands, except per share data Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015
Interest and dividend income
Interest and fees on loans $5,840 $5,530 $5,546
Interest on investment securities 142 123 116
Dividends on investment securities 86 85 57
Other interest income 41 26 29
Total interest and dividend income 6,109 5,764 5,748
Interest expense
Interest on deposits 473 476 529
Interest on Federal Home Loan Bank borrowings 121 122 71
Interest on subordinated debt 82 76 71
Interest on other borrowings 8 9 -
Total interest expense 684 683 671
Net interest income 5,425 5,081 5,077
Provision for loan losses - - 250
Net interest income after
provision for loan losses 5,425 5,081 4,827
Non-interest income
Loan application, inspection and processing fees 67 14 50
Fees and service charges 151 143 174
Rental Income 103 97 88
Other income 89 90 82
Total non-interest income 410 344 394
Non-interest expense
Salaries and benefits 2,550 2,263 2,344
Occupancy and equipment expense 780 784 955
Data processing 285 423 250
Professional services and other outside services 409 374 569
Advertising and promotional expenses 117 75 50
Loan administration and processing expenses 8 13 22
Regulatory assessments 147 152 154
Insurance expense 55 61 81
Material and communications 93 145 81
Other operating expenses 320 318 225
Total non-interest expense 4,764 4,608 4,731
Income before income taxes 1,071 817 490
Benefit for income taxes 418 285 201
Net income $ 653 $ 532 $ 289
Basic and diluted income per share $0.17 $0.14 $0.07

PATRIOT NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dollars in thousands Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015
Assets
Noninterest bearing deposits and cash $2,931 $2,588 $2,080
Interest bearing deposits 64,075 82,812 63,878
Total cash and cash equivalents 67,006 85,400 65,958
Securities-available for sale 28,735 29,377 32,738
Other investments 4,450 4,450 4,450
FRB & FHLB stock 8,669 8,645 8,648
Total securities 41,854 42,472 45,836
Gross loans 485,183 484,369 499,359
Allowance for loan losses (5,247) (5,242) (5,193)
Net loans 479,936 479,127 494,166
Accrued interest and dividends receivable 2,075 2,010 1,974
Premises and equipment, net 29,790 29,421 23,056
Deferred tax asset, net 13,354 13,763 14,621
Other assets 1,740 1,338 1,495
Total Assets $ 635,755 $ 653,531 $ 647,106
Liabilities and Shareholders' Equity
Deposits
Noninterest bearing deposits $79,483 $85,065 $70,331
Interest bearing deposits 346,154 361,982 386,776
425,637 447,047 457,107
FHLB advances and repurchase agreements 134,900 132,000 120,000
Subordinated debt 8,248 8,248 8,248
Note Payable 1,893 1,939 -
Accrued expenses and other liabilities 2,771 2,833 2,450
Total Liabilities 573,449 592,067 587,805
Common stock 40 40 40
Treasury stock (160) (160) (160)
Additional paid-in capital 106,722 106,568 106,221
Accumulated deficit (44,179) (44,832) (46,686)
Accumulated other comprehensive loss (117) (152) (114)
Total Shareholders' Equity 62,306 61,464 59,301
Total Liabilities and Shareholders' Equity$ 635,755 $ 653,531 $ 647,106

PATRIOT NATIONAL BANCORP, INC.
FINANCIAL RATIOS AND OTHER DATA
(Unaudited)
Dollars in thousands, except per share data
Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015
Asset Quality:
Nonaccrual loans $5,409 $1,593 $505
Other real estate owned - - -
Total nonperforming assets $5,409 $1,593 $505
Nonaccrual loans / loans 1.11% 0.33% 0.10%
Nonperforming assets / assets 0.85% 0.24% 0.08%
Allowance for loan losses $5,247 $5,242 $5,193
Allowance for loan losses / loans 1.08% 1.08% 1.04%
Allowance / nonaccrual loans 97.0% 329.1% 1028.3%
Gross loan charge-offs for the quarter$5 $11 $10
Gross loan (recoveries) for the quarter$(10) $(12) $(29)
Net loan charge-offs (recoveries) for the quarter$(5) $(1) $(19)
Capital Data:
Book and Tangible book value per share (1)(2)$15.75 $15.54 $15.00
Shares outstanding 3,956,207 3,956,207 3,924,417
(1) Book value per share represents shareholders' equity divided by outstanding shares.
(2) Tangible book value per share represents shareholders' equity less intangible assets divided by outstanding shares.

Contact: Patriot Bank, N.A. 900 Bedford Street Stamford, CT 06901 www.BankPatriot.com Kenneth T. Neilson President & CEO 203-252-5962 Neil M. McDonnell EVP & CFO 203-252-5938

Source:Patriot National Bancorp, Inc.