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TheStreet Open House

Patriot National Bancorp Earns $345,000 In Second Quarter; Highlighted By Improved Credit Quality And Ongoing Operating Efficiencies

About the Company

Patriot National Bank is headquartered in Stamford, Connecticut and currently has 14 full service branches, 12 in Connecticut and two in New York. It also has a loan production office in Stamford, CT.

Statements in this earnings release that are not historical facts are considered to be forward-looking statements. Such statements include, but are not limited to, statements regarding management beliefs and expectations, based upon information available at the time the statements are made, regarding future plans, objectives and performance. All forward-looking statements are subject to risks and uncertainties, many of which are beyond management’s control and actual results and performance may differ significantly from those contained in forward-looking statements. Bancorp intends any forward-looking statement to be covered by the Litigation Reform Act of 1995 and is including this statement for purposes of said safe harbor provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Bancorp undertakes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date as of which such statements are made. A discussion of certain risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements is included in Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2011.

PATRIOT NATIONAL BANCORP, INC.
STATEMENTS OF OPERATIONS
 
(unaudited)     Three Months Ended     Six Months Ended
Dollars in thousands, except per share data Jun. 30, 2012     Mar. 31, 2012     Jun. 30, 2011 Jun. 30, 2012     Jun. 30, 2011
 
Interest and dividend income
Interest and fees on loans $ 5,811 $ 6,666 $ 6,539 $ 12,477 $ 13,495
Interest on investment securities 427 477 487 904 761
Dividends on investment securities 32 33 81 65 151
Interest on federal funds sold - - 2 - 6
Other interest income   40     11     58     51     120  
Total interest and dividend income   6,310     7,187     7,167     13,497     14,533  
 
Interest expense
Interest on deposits 1,421 1,517 1,554 2,938 3,419
Interest on Federal Home Loan Bank borrowings 354 357 424 712 842
Interest on subordinated debt 75 76 71 151 142
Interest on other borrowings   77     77     77     154     153  
Total interest expense   1,927     2,027     2,126     3,955     4,556  
 
Net interest income 4,383 5,160 5,041 9,542 9,977
 
Provision for loan losses   (1,713 )   (845 )   1,483     (2,559 )   8,464  

 

Net interest income after provision for loan losses

  6,096     6,005     3,559     12,101     1,513  
 
Non-interest income
Mortgage brokerage referral fees 22 12 1 34 14
Loan application, inspection and processing fees 16 15 24 31 41
Deposit fees and service charges 227 228 248 456 529
Gain on sale of loans - 264 80 264 80
Loss on sale of investment securities - (8 ) - (8 ) -
Earnings on cash surrender value of life insurance 120 143 153 263 321
Other income   70     96     204     165     308  
Total non-interest income   455     750     710     1,205     1,293  
 
Non-interest expense
Salaries and benefits 2,725 2,891 3,189 5,616 6,404
Occupancy and equipment expense 1,135 1,124 1,292 2,259 2,646
Data processing 346 346 336 692 664
Professional services and other outside services 854 615 1,235 1,469 2,117
Advertising and promotional expenses 8 18 272 26 430
Loan administration and processing expenses 46 8 48 54 85
Regulatory assessments 462 410 629 872 1,240
Insurance expense 109 169 229 278 459
Other real estate operations 16 (150 ) 774 (134 ) 1,045
Material and communications 133 131 164 264 364
Restructuring charges and asset disposals 127 368 2,986 495 2,986
Other operating expenses   245     279     290     524     523  
Total non-interest expenses   6,206     6,209     11,444     12,415     18,963  
 
Income (loss) before income taxes 345 546 (7,175 ) 891 (16,157 )
 
Provision for income taxes   -     -     -     -     -  
Net income (loss) $ 345   $ 546   $ (7,175 ) $ 891   $ (16,157 )
 
Basic and diluted income (loss) per share $ 0.01   $ 0.01   $ (0.19 ) $ 0.02   $ (0.42 )
 
 
(Dollars in thousands, except per share data)     Jun. 30, 2012     Mar. 31, 2012     Jun. 30, 2011
(Unaudited)
 

Assets

Cash and due from banks $ 62,177 $ 103,264 $ 59,002
Federal funds sold - - 5,000
Short-term investments   710     710     547  
Total cash and cash equivalents 62,887 103,974 64,549
 
Securities-available for sale 56,343 58,592 88,926
Other investments 3,500 3,500 3,500
FRB & FHLB stock   6,063     6,036     6,419  
Total securities 65,906 68,128 98,845
 
Gross loans 490,532 474,726 463,381
Allowance for loan losses   (6,674 )   (8,461 )   (11,400 )
Net loans 483,858 466,265 451,981
 
Accrued interest and dividend receivable 2,289 2,243 2,330
Premise and equipment, net 4,713 4,882 4,234
Cash surrender value of life insurance 21,248 21,127 20,670
Other real estate owned 1,518 1,462 3,611

Deferred tax asset, net(1)

- - -
Other assets   1,848     3,047     1,986  
Total assets $ 644,267   $ 671,128   $ 648,206  
 

Liabilities and Shareholders' Equity

 
Deposits
Non interest bearing deposits $ 71,722 $ 59,049 $ 61,586
Interest bearing deposits   450,373     480,541     462,919  
522,095 539,590 524,505
 
FHLB advances and repurchase agreements 57,000 67,000 57,000
Subordinated debt 8,248 8,248 8,248
Accrued expenses and other liabilities   5,165     5,052     7,188  
Total Liabilities 592,508 619,890 596,941
 
Common stock 385 384 384
Treasury stock (160 ) (160 ) (160 )
Additional paid-in capital 105,183 105,130 105,050
Accumulated deficit (53,968 ) (54,313 ) (55,557 )
Accumulated other comprehensive income   319     197     1,548  
Total shareholders' equity   51,759     51,238     51,265  
 
Total liabilities and shareholders' equity $ 644,267   $ 671,128   $ 648,206  
 
(1)   Includes the deferred tax asset and a full valuation allowance of $13.5 million, $14.1 million and $16.4 million respectively.
 

Financial Ratios and Other Data

           
(Dollars in thousands, except per share data)
(Unaudited) Jun. 30, Mar. 31, Jun. 30,
2012 2012 2011
Asset Quality:
Nonaccrual loans $ 17,452 $ 15,545 $ 26,733
Other real estate owned   1,518     1,462     3,611  
Total nonperforming assets $ 18,970   $ 17,007   $ 30,344  
 
Nonaccrual loans / portfolio loans 3.56 % 3.27 % 5.77 %
Nonperforming assets / assets 2.94 % 2.53 % 4.68 %
Allowance for loan losses $ 6,674 $ 8,461 $ 11,400
Allowance for loan losses / portfolio loans 1.36 % 1.78 % 2.46 %
Allowance / nonaccrual loans 38.24 % 54.43 % 42.64 %
Gross loan charge-offs for the quarter $ 91 $ 102 $ 3,034
Gross loan recoveries for the quarter $ 17 $ 24 $ 743
Net loan charge-offs for the quarter $ 74 $ 78 $ 2,291
 
Capital Data:

Book value per share(1)

$ 1.35 $ 1.33 $ 1.34

Tangible book value per share(2)

$ 1.35 $ 1.33 $ 1.34
Shares outstanding 38,467,073 38,467,073 38,362,727

(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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