STAMFORD, Conn., July 29, 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 $614,000 for the second quarter, or $0.16 diluted income per share.  This is compared to $689,000 a year ago, or $0.18 diluted income per share. In the first quarter of 2016, the Company reported $653,000 net income, or $0.16 diluted income per share.

As of June 30, 2016, total assets have increased to $653 million (up 2.7%), compared to $636 million at March 31, 2016 and $629 million at June 30, 2015.  Net loans totaled $523 million (up 9%) at June 30, 2016 compared to $480 million at March 31, 2016 and $489 million at June 30, 2015.

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-class customer experience, and showing by doing in the communities we serve."

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

Net interest income before provision for loan losses decreased by $43,000, or less than one percent, compared to the first quarter of 2016 and decreased by $67,000, or 1.2%, as compared to the second quarter of 2015. The decline in net interest income this quarter, over the prior year's second quarter and the current year's previous quarter, is the result of a decrease in loan prepayment fees as the trend of fewer loan prepayments continues. Patriot's loan portfolio actually increased by $43 million during the second quarter.  The loan pipeline remains strong and continued growth is expected.  Patriot's net interest margin was 3.69% for the second quarter compared to 3.76% in the prior quarter and 3.73% in the second quarter of 2015.

No provisions for loan losses have been recorded since the first quarter of 2015.  The credit quality of our portfolio and continued improvement in regional economic trends has allowed us to avoid increasing reserves.  The Company has now experienced seven consecutive quarters of net loan recoveries.

Non-interest income decreased by $45,000, or 11%, over last quarter and by $86,000, or 19%, over the same period last year.  Fewer loan fees in the second quarter of 2016 were the primary cause of these decreases.

Non-interest expense in the second quarter of 2016 decreased $28,000, or 1%, compared to the first quarter of 2016 which is on target with the Company's business plan. Compared to the second quarter of 2015, non-interest expenses declined by $23,000 as a result of continued cost control.

Deposits were $449 million (up 5.4%) at June 30, 2016 compared to $426 million at March 31, 2016 and $457 million at June 30, 2015.  Deposit growth initiatives are in place to increase deposits.

As of June 30, 2016, shareholders' equity was $63.1 million compared to $62.3 million at March 31, 2016 and $60.1 million a year ago.  The Company's book value per share was $15.94 at June 30, 2016 compared to $15.75 at March 31, 2016 and $15.19 at June 30, 2015.

The Bank's capital ratios continue to be strong as the Bank maintained its "well capitalized" regulatory status.  As of June 30, 2016, Tier 1 leverage ratio was 10.13%, Tier 1 risk based capital was 11.21% and total risk based capital was 12.16%.

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.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dollars in thousands June 30, 2016   March 31, 2016   June 30, 2015
           
Assets          
           
Noninterest bearing deposits and cash $   2,893     $   2,931     $   2,892  
Interest bearing deposits     43,594         64,075         50,201  
Total cash and cash equivalents     46,487         67,006         53,093  
           
Securities-available for sale     23,037         28,735         31,640  
Other investments     4,450         4,450         4,450  
FRB & FHLB stock     7,982         8,669         8,648  
Total securities     35,469         41,854         44,738  
           
Gross loans     528,654         485,183         493,913  
Allowance for loan losses     (5,250 )       (5,247 )       (5,208 )
Net loans     523,404         479,936         488,705  
           
Accrued interest and dividends receivable     2,120         2,075         2,034  
Premises and equipment, net     29,972         29,790         24,703  
Other real estate owned     851         -          -   
Deferred tax asset, net      13,073         13,354         14,221  
Other assets     1,679         1,740         1,407  
Total Assets $     653,055     $     635,755     $     628,901  
           
Liabilities and Shareholders' Equity          
           
Deposits          
Noninterest bearing deposits $   75,244     $   79,483     $   79,774  
Interest bearing deposits     371,092         344,488         375,420  
      446,336         423,971         455,194  
           
FHLB advances and repurchase agreements     128,000         134,900         100,000  
Subordinated debt     8,248         8,248         8,248  
Mortgage escrow deposits     2,451         1,666         2,261  
Note Payable     1,846         1,893         -   
Accrued expenses and other liabilities     3,064         2,771         3,121  
Total Liabilities     589,945         573,449         568,824  
           
Common stock     40         40         40  
Treasury stock     (160 )       (160 )       (160 )
Additional paid-in capital     106,876         106,722         106,335  
Accumulated deficit     (43,565 )       (44,179 )       (45,997 )
Accumulated other comprehensive loss     (81 )       (117 )       (141 )
Total Shareholders' Equity     63,110         62,306         60,077  
           
Total Liabilities and Shareholders' Equity $     653,055     $     635,755     $     628,901  
 

PATRIOT NATIONAL BANCORP, INC. 
STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended   Six Months Ended
Dollars in thousands, except per share data June 30, 2016   March 31, 2016   June 30, 2015   June 30, 2016   June 30, 2015
             
Interest and dividend income            
Interest and fees on  loans $   5,783     $   5,840     $   5,924     $   11,623     $   11,470  
Interest on investment securities     132         142         119         274         235  
Dividends on investment securities     90         86         60         176         117  
Other interest income     28         41         17         69         46  
Total interest and dividend income     6,033         6,109         6,120         12,142         11,868  
                   
Interest expense                  
Interest on deposits     496         473         513         969         1,042  
Interest on Federal Home Loan Bank borrowings     64         121         85         185         156  
Interest on subordinated debt     83         82         73         165         144  
Interest on other borrowings     8         8         -          16         -   
Total interest expense     651         684         671         1,335         1,342  
                   
Net interest income     5,382         5,425         5,449         10,807         10,526  
                   
Provision for loan losses     -          -          -          -          250  
                   
Net interest income after provision for loan losses     5,382         5,425         5,449         10,807         10,276  
                   
Non-interest income                  
Loan application, inspection and processing fees     21         67         105         88         155  
Fees and service charges     150         151         147         301         321  
Rental Income     104         103         110         207         198  
Other income     90         89         89         179         171  
Total non-interest income     365         410         451         775         845  
                   
Non-interest expense                  
Salaries and benefits     2,615         2,550         2,395         5,165         4,739  
Occupancy and equipment expense     750         780         909         1,530         1,864  
Data processing     241         285         255         526         505  
Professional services and other outside services     364         409         391         773         960  
Advertising and promotional expenses     96         117         137         213         187  
Loan administration and processing expenses     8         8         7         16         29  
Regulatory assessments     147         147         157         294         311  
Insurance expense     56         55         83         111         164  
Material and communications     115         93         106         208         187  
Other operating expenses     344         320         319         664         544  
Total non-interest expense     4,736         4,764         4,759         9,500         9,490  
                   
Income before income taxes     1,011         1,071         1,141         2,082         1,631  
Expense for income taxes     397         418         452         815         653  
Net income $     614     $     653     $     689     $     1,267     $     978  
             
Basic income per share (1) $   0.16     $   0.17     $   0.18     $   0.32     $   0.25  
Diluted income per share $   0.16     $   0.16     $   0.18     $   0.32     $   0.25  
             
(1) Basic income per share for the six months ended June 30, 2016 does not equal the sum of basic income per share for the first two quarters due to the effects of rounding.
 

PATRIOT NATIONAL BANCORP, INC.
FINANCIAL RATIOS AND OTHER DATA
(Unaudited)
Dollars in thousands, except per share data
 
  June 30, 2016   March 31, 2016   June 30, 2015
Asset Quality:          
Nonaccrual loans $   4,790     $   5,409     $   511  
Other real estate owned     851         -          -   
Total nonperforming assets $   5,641     $   5,409     $   511  
           
           
Nonaccrual loans / loans   0.91 %     1.11 %     0.10 %
Nonperforming assets / assets   0.86 %     0.85 %     0.08 %
Allowance for loan losses $   5,250     $   5,247     $   5,208  
Allowance for loan losses / loans   0.99 %     1.08 %     1.05 %
Allowance / nonaccrual loans   109.6 %     97.0 %     1019.2 %
Gross loan charge-offs for the quarter $   2     $   5     $   -   
Gross loan (recoveries) for the quarter $   (4 )   $   (10 )   $   (15 )
Net loan charge-offs (recoveries) for the quarter $   (2 )   $   (5 )   $   (15 )
           
           
Capital Data:          
Book value per share (1) $   15.94     $   15.75     $   15.19  
Shares outstanding     3,958,733         3,956,207         3,953,949  
           
(1)  Book value per share represents shareholders' equity 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

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