EX-99.1 2 d389997dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

Contact:   
Patriot Bank, N.A.    Michael Carrazza
900 Bedford Street    CEO & Chairman
Stamford, CT 06901    203-251-8230
www.BankPatriot.com   

Patriot Bank Earnings Soar 165% in Q1

 

 

Deposits Up 32% & Loans Up 30% Year-Over-Year

STAMFORD, CT – May 9, 2017 (GLOBE NEWSWIRE) – Patriot National Bancorp, Inc. (“Patriot”, “Bancorp”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced its third consecutive quarter of powerful earnings momentum. Patriot reports first quarter net income of $1,730,000, or $0.44 per diluted share, a towering 165% increase over a year ago. Also, at the end of 2016, Patriot surpassed the three quarters of a billion dollar milestone and continued to demonstrate growth in the first quarter.

First quarter earnings also increased over the prior quarter by 66%. For comparison to prior quarterly periods, the third quarter of 2016 saw $814,000 in net income, or $0.21 per diluted share, while in the fourth quarter Patriot reported $1,045,000 in net income, or $0.27 per share. The current quarter results include the impact of a substantial recovery of a loan that was charged-off last year.

As of March 31, 2017, total assets increased to $775 million, as compared to $757 million at December 31, 2016 and $636 million at March 31, 2016. Net loans totaled $625 million, up 8% over $577 million as of December 31, 2016, and up 30% over $480 million at March 31, 2016.

Deposits grew 6%, or $32 million, to $561 million at March 31, 2017 as compared to $529 million at December 31, 2016 and $424 million at March 31 2016. Deposit growth remains a key initiative to keep pace with Patriot’s overall growth prospects. Patriot has seen total deposits grow an aggregate of 32% over the last year.

CEO Michael Carrazza stated: “Patriot’s recent jump in performance is a direct result of performance enhancing strategies that we designed and began implementing in the third quarter 2016. The amalgamation of broad-based operational improvements, management changes, asset-class repositioning, and balance sheet reengineering are producing these very positive results, and they remain ongoing. Tackled in this quarter was the successful recovery of a charged-off loan that had been paralyzed in a protracted legal process. Our initiatives support a steady, predictable earnings trend, and our increasing scale will further drive efficiencies.”


Mr. Carrazza took operational control of Patriot as interim CEO in August 2016 to execute a series of value-enhancing strategies and to reposition the executive team. The performance in the past three quarters reflects a keenly focused and regimented effort to drive profitability and shareholder value.

“Patriot’s banking platform is on a solid earnings trajectory, which improves each day. Shareholders should benefit from increasing scale, profitability and strategic activities that are intently underway,” added Mr. Carrazza.

The loan pipeline remains strong and continued growth is expected. Patriot’s net interest margin was 3.50% for the first quarter, as compared to 3.75% in the prior quarter and 3.76% in the first quarter of 2016. Net interest income decreased by $343,000, or 6%, as compared to the 4th quarter of 2016, and increased by $109,000, or 2%, compared to the 1st quarter of 2016.

The decline from the fourth quarter reflects the full quarter impact of interest paid on long-term senior debt issued in December of 2016 and also reflects a timing mis-match between loan attrition early in the quarter and new loans that closed late in the quarter.

The provision for loan losses in the quarter was a net credit of $1,749,000, reflecting the previously noted recovery, partially offset by a $1.1 million addition to the Allowance for Loan Loss to reflect the growth in the end of period loan balance. The provision for loan losses was $150,000 in the 4th quarter of 2016 and zero in the 1st quarter of 2016.

Non-interest income decreased by $91,000 or 25%, over last quarter and $133,000, or 32%, below the same period last year. Both comparisons were impacted by a loss of $78,000 recognized on the sale of investment portfolio securities, as the portfolio was intentionally re-positioned to provide future enhancements to profitability.

Non-interest expense increased $280,000, or 6%, over last quarter and declined by $70,000, or 1% compared to the 1st quarter of 2016.

As of March 31, 2017 shareholders’ equity was $64.4 million, an increase of $1.8 million over December 31, 2016, at $62.6 million. This was a direct result of the reported net income of the first quarter of 2017. The Company’s book value per share increased to $16.55 at March 31, 2017 as compared to $16.08 at December 31, 2016 and $15.75 at March 31, 2016.


The Bank’s capital ratios continue to be strong, as the Bank maintained its “well capitalized” regulatory status. As of March 31, 2017 Tier 1 leverage ratio was 10.65%, Tier 1 risk based capital was 11.09% and total risk based capital was 11.96%.

* * * * *

About the Company

Patriot National Bancorp, Inc. is headquartered in Stamford, Connecticut and the Bank has full service branches in Connecticut and 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 components of Bancorp’s periodic earnings and assets, (5) the fact that certain of the income recognized by Bancorp in any quarter may not be repeated in future periods, (6) the effect of changes in regulations applicable to Bancorp and the Bank and the conduct of its business, (7) changes in competition among financial service companies, including possible further encroachment of non-banks on services traditionally provided by banks, (8) the ability of competitors that are larger than Bancorp to provide products and services which it is impracticable for Bancorp to provide, (9) 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, (10) 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, (11) 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, (12) the application of generally accepted accounting principles, consistently applied, (13) the fact that one period of reported results may not be indicative of future periods, (14) 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

 

     Mar 31, 2017     Dec 31, 2016     Mar 31, 2016  

Assets

      

Noninterest bearing deposits and cash

   $ 5,086     $ 2,596     $ 2,931  

Interest bearing deposits

     55,180       89,693       64,075  
  

 

 

   

 

 

   

 

 

 

Total cash and cash equivalents

     60,266       92,289       67,006  

Securities-available for sale

     21,201       24,428       28,735  

Other investments

     4,450       4,450       4,450  
  

 

 

   

 

 

   

 

 

 

Total investment securities

     25,651       28,878       33,185  

FRB & FHLB stock

     7,847       7,718       8,669  

Gross loans

     630,727       581,657       485,183  

Allowance for loan losses

     (5,697     (4,675     (5,247
  

 

 

   

 

 

   

 

 

 

Net loans

     625,030       576,982       479,936  

Accrued interest and dividends receivable

     3,063       2,726       2,075  

Premises and equipment, net

     33,442       32,759       29,790  

Other real estate owned

     851       851       —    

Deferred tax asset, net

     11,691       12,632       13,354  

Other assets

     6,921       1,819       1,566  
  

 

 

   

 

 

   

 

 

 

Total Assets

   $ 774,762     $ 756,654     $ 635,581  
  

 

 

   

 

 

   

 

 

 

Liabilities and Shareholders’ Equity

      

Deposits

      

Noninterest bearing deposits

   $ 78,372     $ 76,772     $ 80,594  

Interest bearing deposits

     482,587       452,552       343,361  
  

 

 

   

 

 

   

 

 

 
     560,959       529,324       423,955  

FHLB advances

     124,000       123,000       134,900  

Other short term borrowings

     —         15,000       —    

Note Payable - long term senior debt

     11,647       11,628       —    

Subordinated debt

     8,080       8,079       8,074  

Note Payable

     1,722       1,769       1,908  

Mortgage escrow deposits

     1,755       2,676       1,666  

Accrued expenses and other liabilities

     2,156       2,608       2,771  
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     710,319       694,084       573,275  

Common stock

     40       40       40  

Treasury stock

     (1,177     (1,177     (160

Additional paid-in capital

     106,773       106,729       106,722  

Accumulated deficit

     (41,172     (42,902     (44,178

Accumulated other comprehensive loss

     (21     (120     (117
  

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     64,443       62,570       62,306  
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 774,762     $ 756,654     $ 635,581  
  

 

 

   

 

 

   

 

 

 


PATRIOT NATIONAL BANCORP, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

Dollars in thousands, except per share data

 

     Three Months Ended  
     Mar 31, 2017     Dec 31, 2016      Mar 31, 2016  

Interest and dividend income

       

Interest and fees on loans

   $ 6,607     $ 6,579      $ 5,840  

Interest on investment securities

     171       140        142  

Dividends on investment securities

     82       90        86  

Other interest income

     64       25        41  
  

 

 

   

 

 

    

 

 

 

Total interest and dividend income

     6,924       6,834        6,109  
  

 

 

   

 

 

    

 

 

 

Interest expense

       

Interest on deposits

     989       724        473  

Interest on Federal Home Loan Bank borrowings

     78       113        121  

Interest on Note Payable - long term senior debt

     229       25        —    

Interest on subordinated debt

     85       84        82  

Interest on other borrowings

     9       11        8  
  

 

 

   

 

 

    

 

 

 

Total interest expense

     1,390       957        684  
  

 

 

   

 

 

    

 

 

 

Net interest income

     5,534       5,877        5,425  

(Credit) provision for loan losses

     (1,749     150        —    
  

 

 

   

 

 

    

 

 

 

Net interest income after (credit) provision for loan losses

     7,283       5,727        5,425  
  

 

 

   

 

 

    

 

 

 

Non-interest income

       

Loan application, inspection and processing fees

     21       28        67  

Fees and service charges

     149       149        151  

Rental Income

     94       103        103  

Loss on sale of investment securities

     (78     —          —    

Other income

     91       88        89  
  

 

 

   

 

 

    

 

 

 

Total non-interest income

     277       368        410  
  

 

 

   

 

 

    

 

 

 

Non-interest expense

       

Salaries and benefits

     2,430       2,155        2,550  

Occupancy and equipment expense

     775       797        780  

Data processing

     120       125        285  

Professional services and other outside services

     652       565        409  

Advertising and promotional expenses

     74       53        117  

Loan administration and processing expenses

     9       24        8  

Regulatory assessments

     179       151        147  

Insurance expense

     59       54        55  

Material and communications

     87       88        93  

Other operating expenses

     309       402        320  
  

 

 

   

 

 

    

 

 

 

Total non-interest expense

     4,694       4,414        4,765  
  

 

 

   

 

 

    

 

 

 

Income before income taxes

     2,866       1,681        1,070  

Expense for Income taxes

     1,136       636        418  
  

 

 

   

 

 

    

 

 

 

Net income

   $ 1,730     $ 1,045      $ 651  
  

 

 

   

 

 

    

 

 

 

Basic income per share

   $ 0.44     $ 0.27      $ 0.17  
  

 

 

   

 

 

    

 

 

 

Diluted income per share

   $ 0.44     $ 0.27      $ 0.16  
  

 

 

   

 

 

    

 

 

 


PATRIOT NATIONAL BANCORP, INC.

FINANCIAL RATIOS AND OTHER DATA

(Unaudited)

Dollars in thousands, except per share data

 

     Mar 31, 2017     Dec 31, 2016     Mar 31, 2016  

Asset Quality:

      

Nonaccrual loans

   $ 1,812     $ 1,821     $ 5,409  

Other real estate owned

     851       851       —    
  

 

 

   

 

 

   

 

 

 

Total nonperforming assets

   $ 2,663     $ 2,672     $ 5,409  
  

 

 

   

 

 

   

 

 

 

Nonaccrual loans / loans

     0.29     0.31     1.11

Nonperforming assets / assets

     0.34     0.35     0.85

Allowance for loan losses

   $ 5,697     $ 4,675     $ 5,247  

Allowance for loan losses / loans

     0.90     0.80     1.08

Allowance / nonaccrual loans

     314.4     256.7     97.0

Gross loan charge-offs for the quarter

   $ —       $ 2,935     $ 5  

Gross loan (recoveries) for the quarter

   $ (2,771   $ (132   $ (10

Net loan charge-offs (recoveries) for the quarter

   $ (2,771   $ 2,803     $ (6

Capital Data:

      

Book value per share (1)

   $ 16.55     $ 16.08     $ 15.75  

Shares outstanding

     3,894,128       3,891,897       3,956,207  

 

(1) Book value per share represents shareholders’ equity divided by outstanding shares.