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 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|
|Loan application, inspection and processing fees||67||14||50|
|Fees and service charges||151||143||174|
|Total non-interest income||410||344||394|
|Salaries and benefits||2,550||2,263||2,344|
|Occupancy and equipment expense||780||784||955|
|Professional services and other outside services||409||374||569|
|Advertising and promotional expenses||117||75||50|
|Loan administration and processing expenses||8||13||22|
|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|
|Basic and diluted income per share||$||0.17||$||0.14||$||0.07|
|PATRIOT NATIONAL BANCORP, INC.|
|CONSOLIDATED BALANCE SHEETS|
|Dollars in thousands||Mar. 31, 2016||Dec. 31, 2015||Mar. 31, 2015|
|Noninterest bearing deposits and cash||$||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|
|FRB & FHLB stock||8,669||8,645||8,648|
|Allowance for loan losses||(5,247||)||(5,242||)||(5,193||)|
|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|
|Liabilities and Shareholders' Equity|
|Noninterest bearing deposits||$||79,483||$||85,065||$||70,331|
|Interest bearing deposits||346,154||361,982||386,776|
|FHLB advances and repurchase agreements||134,900||132,000||120,000|
|Accrued expenses and other liabilities||2,771||2,833||2,450|
|Additional paid-in capital||106,722||106,568||106,221|
|Accumulated other comprehensive loss||(117||)||(152||)||(114||)|
|Total Shareholders' Equity||62,306||61,464||59,301|
|Total Liabilities and Shareholders' Equity||$||635,755||$||653,531||$||647,106|
|PATRIOT NATIONAL BANCORP, INC.|
|FINANCIAL RATIOS AND OTHER DATA|
|Dollars in thousands, except per share data|
|Mar. 31, 2016||Dec. 31, 2015||Mar. 31, 2015|
|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||)||$||(19||)|
|Book and Tangible book value per share (1)(2)||$||15.75||$||15.54||$||15.00|
|(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.