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. 
        

            

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