STAMFORD, Conn., April 28, 2016 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. ("Patriot", "Bancorp" or the "Company") (NASDAQ:PNBK), the parent company of Patriot Bank, N.A. (the "Bank"), today reported net income of $653,000 for the first quarter, or $0.17 diluted income per share.  This is compared to $289,000 a year ago, or $0.07 diluted income per share. In the fourth quarter of 2015, the Company reported $532,000 net income, or $0.14 diluted income per share.  This is a 126% increase in earnings over the same period last year and a 23% increase over the prior quarter.

Kenneth T. Neilson, President and CEO stated "Growth has, and will continue to be, our primary focus.  We have spent the last few years building a solid banking infrastructure, which has given us the foundation to confidently go forward with building our brand, hiring and training additional staff, creating and delivering a best-in-banking customer experience, and showing by doing in the communities we serve."

Michael Carrazza, Chairman said "We continue to look for acquisition opportunities to better leverage our infrastructure and improve our returns."

Net interest income before provision for loan losses increased by $344,000 or 6.8%, compared to the fourth quarter of 2015 and increased by $348,000, or 6.9%, as compared to the first quarter of 2015. The growth in net interest income this quarter, over the prior year's first quarter and last quarter is primarily the result of an increase in loan yields and loan fees. Patriot's net interest margin was 3.76% for the first quarter compared to 3.62% in the prior quarter and 3.49% in the first quarter of 2015.

No provisions for loan losses were recorded since the first quarter of 2015. The lack of provision during these periods is the result of the credit quality of the loan portfolio and continued improvement in regional economic trends.  The Company has now experienced six consecutive quarters of net recoveries.

Non-Interest Income increased by $66,000, or 19%, over last quarter and by $16,000, or 4%, over the same period last year.  Loan fees and rental income increased over both prior periods.

Non-interest expense in the first quarter of 2016 increased $156,000, or 3.4%, compared to the fourth quarter of 2015, as a result of increased compensation costs. Compared to the first quarter of 2015, non-interest expenses were relatively flat with a slight increase of $33,000 despite compensation costs increasing by over $200,000.

As of March 31, 2016, total assets have decreased slightly to $636 million, compared to $654 million at December 31, 2015 and $647 million at March 31, 2015.  Net loans totaled $480 million at March 31, 2016 compared to $479 million at December 31, 2015 and $494 million at March 31, 2015. While loans decreased $14 million from the first quarter of 2015, April's loan activity has been strong with the loan portfolio now exceeding $500 million and the pipeline at a record level.   Deposits were $426 million at March 31, 2016 compared to $447 million at December 31, 2015 and $457 million at March 31, 2015. Deposits have increased by over $10 million since the end of March.

At March 31, 2016, shareholders' equity was $62.3 million compared to $61.5 million at December 31, 2015 and $59.3 million a year ago.  The Company's tangible book value per share was $15.75 at March 31, 2016 compared to $15.54 at December 31, 2015 and $15.00 at March 31, 2015. 

About the Company

Patriot National Bancorp, Inc. is headquartered in Stamford, Connecticut and the Bank has 10 full service branches, eight in Connecticut and two in New York.

Since opening its doors in 1994, the Company's mission has been to serve our local communities by helping our neighbors and neighborhood businesses thrive. All lending is handled locally and is specific to each borrower, and the commitment to local businesses goes further to connect, support and grow businesses in both the for-profit and nonprofit sectors, along with municipalities. Patriot believes a well-connected community is a strong community—and that together, all will prosper.

"Safe Harbor" Statement Under Private Securities Litigation Reform Act of 1995

Certain statements contained in Bancorp's public statements, including this one, may be forward looking and subject to a variety of risks and uncertainties. These factors include, but are not limited to, (1) changes in prevailing interest rates which would affect the interest earned on Bancorp's interest earning assets and the interest paid on its interest bearing liabilities, (2) the timing of repricing of Bancorp's interest earning assets and interest bearing liabilities, (3) the effect of changes in governmental monetary policy, (4) the effect of changes in regulations applicable to Bancorp and the Bank and the conduct of its business, (5) changes in competition among financial service companies, including possible further encroachment of non-banks on services traditionally provided by banks, (6) the ability of competitors that are larger than Bancorp to provide products and services which it is impracticable for Bancorp to provide, (7) the state of the economy and real estate values in Bancorp's market areas, and the consequent effect on the quality of Bancorp's loans, (8) recent governmental initiatives that are expected to have a profound effect on the financial services industry and could dramatically change the competitive environment of the Company, (9) other legislative or regulatory changes, including those related to residential mortgages, changes in accounting standards, and Federal Deposit Insurance Corporation ("FDIC") premiums that may adversely affect the Company, (10) the application of generally accepted accounting principles, consistently applied,  (11) the fact that one period of reported results may not be indicative of future periods,  (12)  the state of the economy in the greater New York metropolitan area and its particular effect on the Company's customers, vendors and communities and other such factors, including risk factors, as may be described in Bancorp's other filings with the SEC.

PATRIOT NATIONAL BANCORP, INC.                
STATEMENTS OF OPERATIONS                
(Unaudited)     Three Months Ended    
Dollars in thousands, except per share data   Mar. 31, 2016   Dec. 31, 2015   Mar. 31, 2015    
                   
Interest and dividend income                
Interest and fees on  loans   $ 5,840     $ 5,530     $ 5,546      
Interest on investment securities     142       123       116      
Dividends on investment securities     86       85       57      
Other interest income     41       26       29      
Total interest and dividend income   6,109       5,764       5,748      
                   
Interest expense                  
Interest on deposits     473       476       529      
Interest on Federal Home Loan Bank borrowings   121       122       71      
Interest on subordinated debt     82       76       71      
Interest on other borrowings     8       9       -      
Total interest expense     684       683       671      
                   
Net interest income     5,425       5,081       5,077      
                   
Provision for loan losses     -       -       250      
                   
Net interest income after                
provision for loan losses     5,425       5,081       4,827      
                   
Non-interest income                
Loan application, inspection and processing fees   67       14       50      
Fees and service charges     151       143       174      
Rental Income       103       97       88      
Other income       89       90       82      
Total non-interest income     410       344       394      
                   
Non-interest expense                
Salaries and benefits     2,550       2,263       2,344      
Occupancy and equipment expense     780       784       955      
Data processing     285       423       250      
Professional services and other outside services   409       374       569      
Advertising and promotional expenses     117       75       50      
Loan administration and processing expenses   8       13       22      
Regulatory assessments     147       152       154      
Insurance expense     55       61       81      
Material and communications     93       145       81      
Other operating expenses     320       318       225      
Total non-interest expense     4,764       4,608       4,731      
                   
Income before income taxes     1,071       817       490      
Benefit for income taxes     418       285       201      
Net income   $     653     $     532     $     289      
                   
Basic and diluted income per share   $ 0.17     $ 0.14     $ 0.07      
                   

 
PATRIOT NATIONAL BANCORP, INC.              
CONSOLIDATED BALANCE SHEETS              
(Unaudited)                  
Dollars in thousands       Mar. 31, 2016   Dec. 31, 2015   Mar. 31, 2015  
                   
Assets                  
                   
Noninterest bearing deposits and cash   $ 2,931     $ 2,588     $ 2,080    
Interest bearing deposits       64,075       82,812       63,878    
Total cash and cash equivalents     67,006       85,400       65,958    
                   
Securities-available for sale       28,735       29,377       32,738    
Other investments         4,450       4,450       4,450    
FRB & FHLB stock         8,669       8,645       8,648    
Total securities         41,854       42,472       45,836    
                   
Gross loans         485,183       484,369       499,359    
Allowance for loan losses       (5,247 )     (5,242 )     (5,193 )  
Net loans         479,936       479,127       494,166    
                   
Accrued interest and dividends receivable     2,075       2,010       1,974    
Premises and equipment, net       29,790       29,421       23,056    
Deferred tax asset, net         13,354       13,763       14,621    
Other assets         1,740       1,338       1,495    
Total Assets       $     635,755     $     653,531     $     647,106    
                   
Liabilities and Shareholders' Equity              
                   
Deposits                  
Noninterest bearing deposits     $ 79,483     $ 85,065     $ 70,331    
Interest bearing deposits       346,154       361,982       386,776    
          425,637       447,047       457,107    
                   
FHLB advances and repurchase agreements     134,900       132,000       120,000    
Subordinated debt         8,248       8,248       8,248    
Note Payable         1,893       1,939       -    
Accrued expenses and other liabilities     2,771       2,833       2,450    
Total Liabilities         573,449       592,067       587,805    
                   
Common stock         40       40       40    
Treasury stock         (160 )     (160 )     (160 )  
Additional paid-in capital       106,722       106,568       106,221    
Accumulated deficit         (44,179 )     (44,832 )     (46,686 )  
Accumulated other comprehensive loss     (117 )     (152 )     (114 )  
Total Shareholders' Equity       62,306       61,464       59,301    
                   
Total Liabilities and Shareholders' Equity $     635,755     $     653,531     $     647,106    
                   

 
               
PATRIOT NATIONAL BANCORP, INC.              
FINANCIAL RATIOS AND OTHER DATA            
(Unaudited)              
Dollars in thousands, except per share data              
               
    Mar. 31, 2016   Dec. 31, 2015   Mar. 31, 2015  
Asset Quality:              
Nonaccrual loans   $ 5,409     $ 1,593     $ 505    
Other real estate owned     -       -       -    
Total nonperforming assets   $ 5,409     $ 1,593     $ 505    
               
               
Nonaccrual loans / loans     1.11 %     0.33 %     0.10 %  
Nonperforming assets / assets     0.85 %     0.24 %     0.08 %  
Allowance for loan losses   $ 5,247     $ 5,242     $ 5,193    
Allowance for loan losses / loans     1.08 %     1.08 %     1.04 %  
Allowance / nonaccrual loans     97.0 %     329.1 %     1028.3 %  
Gross loan charge-offs for the quarter $ 5     $ 11     $ 10    
Gross loan (recoveries) for the quarter $ (10 )   $ (12 )   $ (29 )  
Net loan charge-offs (recoveries) for the quarter $ (5 )   $ (1 )   $ (19 )  
               
               
Capital Data:              
Book and Tangible book value per share (1)(2) $ 15.75     $ 15.54     $ 15.00    
Shares outstanding     3,956,207       3,956,207       3,924,417    
               
(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.  
               
Contact:	Patriot Bank, N.A.900 Bedford StreetStamford, CT  06901www.BankPatriot.comKenneth T. NeilsonPresident & CEO203-252-5962Neil M. McDonnellEVP & CFO203-252-5938

Primary Logo