Patriot National Bancorp, Inc. (NASDAQ Global Market “PNBK”, the “Company”), the parent of Patriot National Bank (the “Bank”), reported its net loss for 2010 fell 36% due to improving asset quality, an 84 basis point improvement in the net interest margin and the recently completed infusion of capital. In 2010, the net loss decreased to $15.4 million, or $1.30 loss per share, from $23.9 million, or $5.02 loss per share in 2009.
“Our restructuring initiatives are intensely underway. The operating improvements made since October demonstrate our team’s commitment to restoring health and profitability at Patriot, while positioning the Bank for long-term sustainable growth,” said Michael Carrazza, the Chairman of the Board.
The following are highlights for the quarter and twelve months ended December 31, 2010 :
- A net loss for the year ended December 31, 2010 declined 36% to $15.4 million, or $1.30 per share, compared to a net loss of $23.9 million, or $5.02 per share, for the year ended December 31, 2009.
- The closing of a $50.4 million recapitalization transaction on October 15, 2010 restored the Bank to a “well-capitalized” status, with Total Capital to Risk Weighted Assets of 17.08% for PNBK and 16.54% for the Bank.
- Nonperforming assets declined for the fifth consecutive quarter by $40.1 million, or 28%, to $105.5 million compared to $145.6 million at September 30, 2009.
- Loans placed on nonaccrual decreased $4.0 million, or 42%, compared to the third quarter of 2010 and decreased $3.8 million, or 41%, as compared to the fourth quarter of 2009.
- Net charge-offs in 2010 were $8.1 million, a decrease of $5.4 million, or 40%, compared to the year ended December 31, 2009.
- Net interest margin improved 84 basis points to 2.91% in 2010 compared to 2.07% in 2009, which resulted in a $3.5 million, or 19%, improvement in net interest income compared to 2009.
- A $2.7 million, or 40%, improvement in pretax quarterly results compared to the third quarter of 2010 and a $3.5 million, or 46% improvement, as compared to the fourth quarter of 2009.
“Our turn-around strategies are beginning to yield favorable results,” said Mr. Christopher Maher, President and Chief Executive Officer. “In addition, with the recently announced pending sale of nonperforming assets and the consolidation of four branch offices, the groundwork is in place to restructure the balance sheet. These and other strategies serve not only to lay the foundation for a more efficient cost structure, but will also have a positive impact on operating results. As we complete these initiatives, we will increase our focus on deploying our substantial liquidity position to prudently grow the loan portfolio and ramp up earnings capacity.”