Mr. Charles F. Howell, President and Chief Executive Officer of Patriot National Bank stated that he is encouraged by these improvements as well as by increases over the last six month in the median sales prices and the volume of single family residences sold in Fairfield County, Connecticut, one of the primary lending areas of the Bank. He further stated that these are hopeful signs that negative conditions have bottomed out and indications are there that a recovery is on the horizon.
Noninterest income of $538,000 for the three months ended March 31, 2010 represents a decrease of $484,000 when compared to the same period last year. The results for last year include gains on the sales of investment securities of $434,000; there were no investment sales during the first quarter of 2010.
Noninterest expenses of $8.7 million are $116,000 less than noninterest expenses for the fourth quarter of 2009, but $2.4 million higher than those recorded in the first quarter of 2009. Noninterest expenses reflect higher professional, operations and insurance expenses associated with the level of nonperforming assets. Noninterest expenses for the three months ended March 31, 2010 include expenses associated with other real estate operations of $979,000; there were no other real estate operations expenses during the first quarter of 2009. Noninterest expenses for the current quarter reflect an increase in regulatory assessments of $415,000 as compared to the same period in 2009. This increase is due primarily to higher FDIC deposit insurance premium assessments.
Total assets decreased $51.7 million from $866.4 million at December 31, 2009 to $814.7 million at March 31, 2010. Total loans decreased $20.3 million from $645.2 million at December 31, 2009 to $624.9 million at March 31, 2010. These decreases reflect the Bank’s strategic decision to improve the risk profile of its loan portfolio by reducing its construction and commercial real estate loan concentrations.Total deposits decreased $49.5 million from $761.3 million at December 31, 2009 to $711.8 million at March 31, 2010. Much of the decrease in deposits can be attributed to Bancorp’s strategy to reduce higher cost of funds and to improve spreads.