Balance Sheet Review
Strategic balance sheet management resulted in a decrease in total assets to $784.3 million at December 31, 2010, compared with $866.4 million a year earlier. The plan to reduce concentrations in high risk construction and commercial real estate loans resulted in a decrease in the loan portfolio of $110.7 million to $534.5 million at year-end from $645.2 million a year earlier. Primarily as a result of the pending sale of nonperforming loans, the company expects the loan portfolio to decline in the first quarter of 2011 and then begin to grow for the remainder of the year. The loan pipeline as of December 31, 2010 totaled $9.5 million.
Total deposits decreased $114.5 million from $761.3 million at December 31, 2009 to $646.8 million at December 31, 2010. Much of the decrease in deposits is the result of the execution of the Company’s strategy to reduce rate sensitive deposits through a series of interest rate reductions resulting in a lower cost of funds and an improvement in spreads. Despite this decrease in deposits, the Company continues to maintain strong levels of liquidity, which have been further augmented by the recent capital infusion.
Patriot National Bank is headquartered in Stamford, Connecticut and currently has 19 full service branches, 16 in Connecticut and three in New York. It also has a loan production office in Stamford, CT.
| Financial Highlights
(Dollars in thousands, except per share)
| Three Months Ended
| Twelve Months Ended
|Net interest income||$||5,116||$||4,676||$||22,134||$||18,608|
|Provision for loan losses||1,450||4,080||7,714||13,089|
|Net interest income after provision for loan losses||
|Loss before taxes||4,077||7,607||15,174||21,666|
|(Provision) benefit for Income Taxes||-||3,397||(225||)||(2,214||)|
|Basic loss per share||$||0.12||$||0.88||$||1.30||$||5.02|
|Diluted loss per share||$||0.12||$||0.88||$||1.30||$||5.02|
|Average shares outstanding||32,884||4,763||11,851||4,754|
|Net interest margin||2.54||%||2.15||%||2.91||%||2.07||%|
|Loans at period end||$||534,531||$||645,206||$||534,531||$||645,206|
|Deposits at period end||646,809||761,334||646,809||761,334|
|Assets at period end||784,325||866,417||784,325||866,417|
|Book Value per Share (1)||$||1.75||$||7.77||$||1.75||$||7.77|
|Tangible Book Value per share (2)||$||1.75||$||7.75||$||1.75||$||7.75|
|(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.|