×

2nd Consecutive Jump in Earnings at Patriot National Bancorp

STAMFORD, Conn., March 21, 2017 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot”, “Bancorp”) (NASDAQ:PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today reported a 28% increase in 4th quarter earnings compared to the 3rd quarter, with net income of $1,045,000 or $0.27 diluted income per share. This nearly doubles the net income a year ago, which was $532,000, or $0.14 diluted income per share. In the 3rd quarter of 2016, Patriot reported a healthy rise in net income of $814,000, or $0.21 diluted income per share.

As of December 31, 2016, total assets increased by $74 million (nearly 11%) to $757 million, as compared to $683 million at September 30, 2016 and $653 million at December 31, 2015. Net loans, up 4%, totaled $577 million as of December 31, 2016 compared to $553 million at September 30, 2016 and $479 million at December 31, 2015.

Deposits grew 12% or $58 million to $529 million at December 31, 2016, as compared to $471 million at September 30, 2016 and $445 million at December 31, 2015. Deposit growth was one of the key initiatives launched in the 3rd quarter and continued through December 31, 2016.

Recent management changes and operational initiatives have contributed to Patriot’s notable boost in profitability over the last two quarters.

“Patriot’s performance, achieving 29% earnings growth in the 3rd quarter and 28% earnings growth in the 4th quarter is a direct result of ongoing performance enhancing strategies being executed by our team,” said Michael Carrazza. “These results evidence the effectiveness of our strategies.”

Mr. Carrazza took operational control of Patriot, as interim CEO, in August 2016 to carry out a series of value-enhancing strategies and to reposition the executive team. In January 2017, Mr. Richard Muskus was internally promoted to President and Mr. Joseph Perillo was retained as a senior financial advisor to assist in the execution of performance improvement initiatives. “We expect these enhancements to contribute to a steady increase in franchise value,” added Mr. Carrazza.

The loan pipeline remains strong and continued growth is expected. Patriot’s net interest margin was 3.75% for the 4th quarter, as compared to 3.85% in the prior quarter and 3.60% in the 4th quarter of 2015. Net interest income, before provision for loan losses, increased by $161,000 or 2.8%, as compared to the 3rd quarter of 2016, and $796,000 or 15.7% compared to the 4th quarter of 2015. The continued increase in net interest income is the result of loan and deposit growth.

The provision for loan losses in the quarter, reflecting an increase in loan growth, was $150,000, as compared to $355,000 in the 3rd quarter of 2016 and zero for the 4th quarter of 2015.

Non-interest income decreased by $44,000, or 10.7%, over last quarter and increased $24,000, or 7%, over the same period last year. Non-interest expense declined $27,000, or 0.6%, over last quarter and by $194,000, or 4.2%, compared to the fourth quarter of 2015.

As of December 31, 2016, shareholders’ equity was unchanged at $62.6 million, when compared to the prior quarter. This was a direct result of stock repurchases under the Company’s stock repurchase program. Shareholders’ equity was $61.5 million a year ago. The Company’s book value per share increased to $16.08 at December 31, 2016, compared to $15.80 at September 30, 2016 and $15.54 at December 31, 2015.

The Bank’s capital ratios continue to be strong, as the Bank maintained its “well capitalized” regulatory status. As of December 31, 2016, Tier 1 leverage ratio was 10.52%, Tier 1 risk based capital was 11.18% and total risk based capital was 11.93%.

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
(Unaudited)
Dollars in thousands Dec 31, 2016 Sept 30, 2016 Dec 31, 2015
Assets
Noninterest bearing deposits and cash $ 2,571 $ 2,454 $ 2,588
Interest bearing deposits 89,718 43,060 82,812
Total cash and cash equivalents 92,289 45,514 85,400
Securities-available for sale 24,428 23,374 29,377
Other investments 4,450 4,450 4,450
FRB & FHLB stock 7,718 7,818 8,645
Total securities 36,596 35,642 42,472
Gross loans 581,657 560,150 484,369
Allowance for loan losses (4,675) (7,328) (5,242)
Net loans 576,982 552,822 479,127
Accrued interest and dividends receivable 2,726 2,308 2,010
Premises and equipment, net 32,759 30,850 29,421
Other real estate owned 851 851 -
Deferred tax asset, net 12,632 13,340 13,763
Other assets 1,819 1,586 1,162
Total Assets $ 756,654 $ 682,913 $ 653,355
Liabilities and Shareholders' Equity
Deposits
Noninterest bearing deposits $ 76,772 $ 77,289 $ 85,797
Interest bearing deposits 452,552 393,881 358,868
529,324 471,170 444,665
FHLB advances 123,000 135,000 132,000
Other short term borrowings 15,000 - -
Note Payable - long term senior debt 11,628 - -
Subordinated debt 8,079 8,075 8,072
Mortgage escrow deposits 2,676 1,478 2,367
Note Payable 1,769 1,815 1,954
Accrued expenses and other liabilities 2,608 2,793 2,833
Total Liabilities 694,084 620,331 591,891
Common stock 40 40 40
Treasury stock (1,177) (167) (160)
Additional paid-in capital 106,729 106,694 106,568
Accumulated deficit (42,902) (43,947) (44,832)
Accumulated other comprehensive loss (120) (38) (152)
Total Shareholders' Equity 62,570 62,582 61,464
Total Liabilities and Shareholders' Equity $ 756,654 $ 682,913 $ 653,355

PATRIOT NATIONAL BANCORP, INC.
STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended Twelve Months Ended
Dollars in thousands, except per share data Dec 31, 2016 Sept 30, 2016 Dec 31, 2015 Dec 31, 2016 Dec 31, 2015
Interest and dividend income
Interest and fees on loans $ 6,579 $ 6,188 $ 5,530 $ 24,391 $ 22,879
Interest on investment securities 140 131 123 544 473
Dividends on investment securities 90 88 85 353 287
Other interest income 25 25 26 120 102
Total interest and dividend income 6,834 6,432 5,764 25,408 23,741
Interest expense
Interest on deposits 724 549 476 2,242 2,016
Interest on Federal Home Loan Bank borrowings 113 73 122 371 368
Interest on Note Payable - long term senior debt 25 - - 25 -
Interest on subordinated debt 84 85 76 334 294
Interest on other borrowings 11 9 9 36 12
Total interest expense 957 716 683 3,008 2,690
Net interest income 5,877 5,716 5,081 22,400 21,051
Provision for loan losses 150 355 - 2,464 250
Net interest income after
provision for loan losses 5,727 5,361 5,081 19,936 20,801
Non-interest income
Loan application, inspection and processing fees 28 64 14 180 185
Fees and service charges 149 150 143 600 612
Rental Income 103 104 97 414 402
Other income 88 94 90 362 352
Total non-interest income 368 412 344 1,556 1,551
Non-interest expense
Salaries and benefits 2,155 2,169 2,263 9,489 9,247
Occupancy and equipment expense 797 783 784 3,110 3,462
Data processing 125 288 423 939 1,226
Professional services and other outside services 565 409 374 1,747 1,656
Advertising and promotional expenses 53 128 75 394 591
Loan administration and processing expenses 24 14 13 54 50
Regulatory assessments 151 159 152 604 603
Insurance expense 54 57 61 222 304
Material and communications 88 106 145 402 427
Other operating expenses 402 328 318 1,395 1,285
Total non-interest expense 4,414 4,441 4,608 18,356 18,851
Income before income taxes 1,681 1,332 817 3,136 3,501
Expense for Income taxes 636 518 285 1,207 1,358
Net income $ 1,045 $ 814 $ 532 $ 1,929 $ 2,143
Basic income per share $ 0.27 $ 0.21 $ 0.14 $ 0.49 $ 0.55
Diluted income per share $ 0.27 $ 0.21 $ 0.14 $ 0.49 $ 0.55

PATRIOT NATIONAL BANCORP, INC.
FINANCIAL RATIOS AND OTHER DATA
(Unaudited)
Dollars in thousands, except per share data
Dec 31, 2016 Sept 30, 2016 Dec 31, 2015
Asset Quality:
Nonaccrual loans $ 1,811 $ 4,751 $ 1,593
Other real estate owned 851 851 -
Total nonperforming assets$ 2,662 $ 5,602 $ 1,593
Nonaccrual loans / loans 0.31% 0.85% 0.33%
Nonperforming assets / assets 0.35% 0.82% 0.24%
Allowance for loan losses $ 4,675 $ 7,328 $ 5,242
Allowance for loan losses / loans 0.80% 1.31% 1.08%
Allowance / nonaccrual loans 258.1% 154.2% 329.1%
Gross loan charge-offs for the quarter$ 2,935 $ 238 $ 11
Gross loan (recoveries) for the quarter$ (132) $ (2) $ (12)
Net loan charge-offs (recoveries) for the quarter$ 2,803 $ 236 $ (1)
Capital Data:
Book value per share (1) $ 16.08 $ 15.80 $ 15.54
Shares outstanding 3,891,897 3,959,903 3,956,207
(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.