STAMFORD, Conn., Nov. 14, 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 a nearly 30 percent increase in third quarter earnings, with net income of $814,000, or $0.21 diluted income per share. This represents a sizable increase over the $633,000 net income a year ago, or $0.16 diluted income per share. In the second quarter of 2016, the Company reported a $582,000 net loss, or ($0.15) diluted income per share.
As of September 30, 2016, total assets increased by $31 million to $683 million – a nearly 5% jump - compared to $652 million at June 30, 2016 and $641 million at September 30, 2015. Net loans totaled $553 million, up 6%, at September 30, 2016 compared to $521 million at June 30, 2016 and $491 million at September 30, 2015. Deposits also grew 5.6%, an increase of $25 million over the quarter.
In the third quarter, Patriot’s Chairman, Michael Carrazza, stepped into the CEO seat to execute a series of value-enhancing performance initiatives. “Our team developed and began implementing initiatives aimed at generating stronger and consistent economic performance, which already proved visible this quarter,” said Mr. Carrazza. “These value-based, reengineering disciplines made an immediate difference and are expected to further elevate operating efficiencies and bottom line results. We are looking to make continued strides going forward.”
Net interest income, before provision for loan losses, increased by $334,000 (6.2%), as compared to the second quarter of 2016, and $272,000 (5%) compared to the third quarter of 2015. The increase in net interest income this quarter over these prior periods is the result of loan growth. The loan pipeline remains strong and continued growth is expected. Patriot’s net interest margin was 3.85% for the third quarter, as compared to 3.78% in the prior quarter and 3.67% in the third quarter of 2015.
The provision for loan losses in the quarter, representing a stable increase in loan growth, was $355,000, as compared to $1,959,000 in the second quarter of 2016 and zero for the third quarter of 2015.
Non-interest income increased by $47,000, or 12.9%, over last quarter and by $50,000, or 13.8%, over the same period last year. Greater loan fees in the third quarter of 2016 contributed to these increases.
Non-interest expense decreased $295,000, or 6.2%, over last quarter and by $312,000, or 6.6%, compared to the third quarter of 2015.
Deposits grew 5.6% to $471 million at September 30, 2016 compared to $446 million at June 30, 2016 and $445 million at September 30, 2015. Deposit growth is one of the key initiatives launched in the third quarter, and Mr. Carrazza said it will continue to be an area of focus as the Bank expands.
As of September 30, 2016, shareholders’ equity rose to $62.6 million, as compared to $61.9 million in the prior quarter and $60.9 million a year ago. The company’s book value per share was $15.80 at September 30, 2016, compared to $15.64 at June 30, 2016 and $15.37 at September 30, 2015.
The Bank’s capital ratios continue to be strong, as the Bank maintained its “well capitalized” regulatory status. As of September 30, 2016, Tier 1 leverage ratio was 9.68%, Tier 1 risk based capital was 10.34% and total risk based capital was 11.59%.
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.|
|CONSOLIDATED BALANCE SHEETS|
|Dollars in thousands||Sept 30, 2016||June 30, 2016||Sept 30, 2015|
|Noninterest bearing deposits and cash||$||2,454||$||2,893||$||2,429|
|Interest bearing deposits||43,060||43,594||56,909|
|Total cash and cash equivalents||45,514||46,487||59,338|
|Securities-available for sale||23,374||23,037||30,719|
|FRB & FHLB stock||7,818||7,982||8,676|
|Allowance for loan losses||(7,328||)||(7,209||)||(5,240||)|
|Accrued interest and dividends receivable||2,308||2,120||2,107|
|Premises and equipment, net||30,850||29,972||29,193|
|Other real estate owned||851||851||-|
|Deferred tax asset, net||13,340||13,836||13,905|
|Liabilities and Shareholders' Equity|
|Noninterest bearing deposits||$||77,304||$||75,244||$||75,684|
|Interest bearing deposits||393,881||371,092||369,432|
|FHLB advances and repurchase agreements||135,000||128,000||120,000|
|Mortgage escrow deposits||1,478||2,451||1,324|
|Accrued expenses and other liabilities||2,793||3,064||3,156|
|Additional paid-in capital||106,694||106,876||106,447|
|Accumulated other comprehensive loss||(38||)||(81||)||(67||)|
|Total Shareholders' Equity||62,582||61,914||60,896|
|Total Liabilities and Shareholders' Equity||$||683,086||$||651,859||$||640,725|
|PATRIOT NATIONAL BANCORP, INC.|
|STATEMENTS OF OPERATIONS|
|(Unaudited)||Three Months Ended||Nine Months Ended|
|Dollars in thousands, except per share data||Sept 30, 2016||June 30, 2016||Sept 30, 2015||Sept 30, 2016||Sept 30, 2015|
|Interest and dividend income|
|Interest and fees on loans||$||6,188||$||5,783||$||5,879||$||17,811||$||17,349|
|Interest on investment securities||131||132||115||405||350|
|Dividends on investment securities||88||90||85||264||202|
|Other interest income||25||28||30||94||76|
|Total interest and dividend income||6,432||6,033||6,109||18,574||17,977|
|Interest on deposits||549||496||498||1,518||1,540|
|Interest on Federal Home Loan Bank borrowings||73||64||90||258||246|
|Interest on subordinated debt||85||83||74||250||218|
|Interest on other borrowings||9||8||3||25||3|
|Total interest expense||716||651||665||2,051||2,007|
|Net interest income||5,716||5,382||5,444||16,523||15,970|
|Provision for loan losses||355||1,959||-||2,314||250|
|Net interest income after|
|provision for loan losses||5,361||3,423||5,444||14,209||15,720|
|Loan application, inspection and processing fees||64||21||16||152||171|
|Fees and service charges||150||150||148||451||469|
|Total non-interest income||412||365||362||1,187||1,207|
|Salaries and benefits||2,169||2,615||2,245||7,334||6,984|
|Occupancy and equipment expense||783||750||814||2,313||2,678|
|Professional services and other outside services||409||364||322||1,182||1,282|
|Advertising and promotional expenses||128||96||329||341||516|
|Loan administration and processing expenses||14||8||8||30||37|
|Material and communications||106||115||95||314||282|
|Other operating expenses||328||344||423||992||967|
|Total non-interest expense||4,441||4,736||4,753||13,941||14,243|
|Income before income taxes||1,332||(948||)||1,053||1,455||2,684|
|Expense for income taxes||518||(366||)||420||570||1,073|
|Basic income per share||$||0.21||$||(0.15||)||$||0.16||$||0.22||$||0.42|
|Diluted income per share||$||0.21||$||(0.15||)||$||0.16||$||0.22||$||0.41|
|PATRIOT NATIONAL BANCORP, INC.|
|FINANCIAL RATIOS AND OTHER DATA|
|Dollars in thousands, except per share data|
|Sept 30, 2016||June 30, 2016||Sept 30, 2015|
|Other real estate owned||851||851||-|
|Total nonperforming assets||$||5,602||$||5,641||$||383|
|Nonaccrual loans / loans||0.85||%||0.91||%||0.08||%|
|Nonperforming assets / assets||0.82||%||0.87||%||0.06||%|
|Allowance for loan losses||$||7,328||$||7,209||$||5,240|
|Allowance for loan losses / loans||1.31||%||1.36||%||1.06||%|
|Allowance / nonaccrual loans||154.2||%||150.2||%||1368.1||%|
|Gross loan charge-offs for the quarter||$||238||$||2||$||11|
|Gross loan (recoveries) for the quarter||$||(2||)||$||(4||)||$||(43||)|
|Net loan charge-offs (recoveries) for the quarter||$||236||$||(2||)||$||(32||)|
|Book value per share (1)||$||15.80||$||15.64||$||15.37|
|(1) Book value per share represents shareholders' equity divided by outstanding shares.|
Contact: Patriot Bank, N.A. 900 Bedford Street Stamford, CT 06901 www.BankPatriot.com Michael Carrazza CEO & Chairman 203-251-8230 Neil M. McDonnell EVP & CFO 203-252-5938
Source:Patriot National Bancorp, Inc.