The capital ratios at December 31, 2010 for Patriot National Bancorp, Inc. and Patriot National Bank were:
Patriot NationalBancorp, Inc.
|Total Capital (to Risk Weighted Assets)||17.08%||16.54%|
|Tier 1 Capital (to Risk Weighted Assets)||15.69%||15.15%|
|Tier 1 Capital (to Average Assets)||9.16%||8.84%|
The quarter ended December 31, 2010 is the fifth consecutive quarter during which total nonperforming assets declined. Nonperforming assets, which consist of non-accrual loans and other real estate owned properties (“OREO”), declined by $40.1 million to $105.5 million at December 31, 2010 as compared to $145.6 million at September 30, 2009, representing an improvement of 28% over this fifteen month period. The $105.5 million of nonperforming assets is comprised of $16.4 million of OREO properties and $89.1 million of non-accrual loans. Of the $89.1 million in non-accrual loans, borrowers of $31.5 million, or 35%, are less than 30 days overdue. The $16.4 million in OREO consists of seven properties. As previously disclosed in the Company’s 8-K filed on March 3, 2011, the Company entered into a contract to sell certain nonperforming loans and real estate for $65 million. This transaction will improve the risk profile of the balance sheet, decrease loan workout and OREO carrying expenses, and most importantly, provide for the redeployment of the sale proceeds into earning assets, thereby working to improve the net interest margin.