STAMFORD, Conn., March 21, 2017 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. ("Patriot", "Bancorp") (NASDAQ:PNBK), the parent company of Patriot Bank, N.A. (the "Bank"), today reported a 28% increase in 4 th quarter earnings compared to the 3 rd quarter, with net income of $1,045,000 or $0.27 diluted income per share.  This nearly doubles the net income a year ago, which was $532,000, or $0.14 diluted income per share. In the 3 rd quarter of 2016, Patriot reported a healthy rise in net income of $814,000, or $0.21 diluted income per share.  

As of December 31, 2016, total assets increased by $74 million (nearly 11%) to $757 million, as compared to $683 million at September 30, 2016 and $653 million at December 31, 2015.  Net loans, up 4%, totaled $577 million as of December 31, 2016 compared to $553 million at September 30, 2016 and $479 million at December 31, 2015. 

Deposits grew 12% or $58 million to $529 million at December 31, 2016, as compared to $471 million at September 30, 2016 and $445 million at December 31, 2015.  Deposit growth was one of the key initiatives launched in the 3 rd quarter and continued through December 31, 2016.

Recent management changes and operational initiatives have contributed to Patriot's notable boost in profitability over the last two quarters. 

"Patriot's performance, achieving 29% earnings growth in the 3 rd quarter and 28% earnings growth in the 4 th quarter is a direct result of ongoing performance enhancing strategies being executed by our team," said Michael Carrazza.  "These results evidence the effectiveness of our strategies." 

Mr. Carrazza took operational control of Patriot, as interim CEO, in August 2016 to carry out a series of value-enhancing strategies and to reposition the executive team.  In January 2017, Mr. Richard Muskus was internally promoted to President and Mr. Joseph Perillo was retained as a senior financial advisor to assist in the execution of performance improvement initiatives. "We expect these enhancements to contribute to a steady increase in franchise value," added Mr. Carrazza.

The loan pipeline remains strong and continued growth is expected.  Patriot's net interest margin was 3.75% for the 4 th quarter, as compared to 3.85% in the prior quarter and 3.60% in the 4 th quarter of 2015. Net interest income, before provision for loan losses, increased by $161,000 or 2.8%, as compared to the 3 rd quarter of 2016, and $796,000 or 15.7% compared to the 4 th quarter of 2015. The continued increase in net interest income is the result of loan and deposit growth.

The provision for loan losses in the quarter, reflecting an increase in loan growth, was $150,000, as compared to $355,000 in the 3 rd quarter of 2016 and zero for the 4 th quarter of 2015.   

Non-interest income decreased by $44,000, or 10.7%, over last quarter and increased $24,000, or 7%, over the same period last year.   Non-interest expense declined $27,000, or 0.6%, over last quarter and by $194,000, or 4.2%, compared to the fourth quarter of 2015. 

As of December 31, 2016, shareholders' equity was unchanged at $62.6 million, when compared to the prior quarter.  This was a direct result of stock repurchases under the Company's stock repurchase program.   Shareholders' equity was $61.5 million a year ago.  The Company's book value per share increased to $16.08 at December 31, 2016, compared to $15.80 at September 30, 2016 and $15.54 at December 31, 2015.

The Bank's capital ratios continue to be strong, as the Bank maintained its "well capitalized" regulatory status.  As of December 31, 2016, Tier 1 leverage ratio was 10.52%, Tier 1 risk based capital was 11.18% and total risk based capital was 11.93%.     

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       Dec 31, 2016   Sept 30, 2016   Dec 31, 2015  
                       
Assets                      
                       
Noninterest bearing deposits and cash     $   2,571     $   2,454     $   2,588    
Interest bearing deposits           89,718         43,060         82,812    
  Total cash and cash equivalents       92,289         45,514         85,400    
                       
Securities-available for sale           24,428         23,374         29,377    
Other investments             4,450         4,450         4,450    
FRB & FHLB stock             7,718         7,818         8,645    
  Total securities           36,596         35,642         42,472    
                       
Gross loans             581,657         560,150         484,369    
Allowance for loan losses           (4,675 )       (7,328 )       (5,242 )  
  Net loans           576,982         552,822         479,127    
                       
Accrued interest and dividends receivable       2,726         2,308         2,010    
Premises and equipment, net         32,759         30,850         29,421    
Other real estate owned           851         851         -     
Deferred tax asset, net            12,632         13,340         13,763    
Other assets             1,819         1,586         1,162    
  Total Assets       $     756,654     $     682,913     $     653,355    
                       
Liabilities and Shareholders' Equity                
                       
Deposits                      
  Noninterest bearing deposits   $   76,772     $   77,289     $   85,797    
  Interest bearing deposits         452,552         393,881         358,868    
                529,324         471,170         444,665    
                       
FHLB advances             123,000         135,000         132,000    
Other short term borrowings           15,000         -          -     
Note Payable - long term senior debt         11,628         -          -     
Subordinated debt             8,079         8,075         8,072    
Mortgage escrow deposits           2,676         1,478         2,367    
Note Payable             1,769         1,815         1,954    
Accrued expenses and other liabilities         2,608         2,793         2,833    
    Total Liabilities         694,084         620,331         591,891    
                       
Common stock             40         40         40    
Treasury stock             (1,177 )       (167 )       (160 )  
Additional paid-in capital           106,729         106,694         106,568    
Accumulated deficit           (42,902 )       (43,947 )       (44,832 )  
Accumulated other comprehensive loss       (120 )       (38 )       (152 )  
    Total Shareholders' Equity       62,570         62,582         61,464    
                       
  Total Liabilities and Shareholders' Equity   $     756,654     $     682,913     $     653,355    
                       

 
PATRIOT NATIONAL BANCORP, INC.                        
STATEMENTS OF OPERATIONS                          
(Unaudited)         Three Months Ended   Twelve Months Ended  
Dollars in thousands, except per share data   Dec 31, 2016   Sept 30, 2016   Dec 31, 2015   Dec 31, 2016   Dec 31, 2015  
                               
Interest and dividend income                          
  Interest and fees on  loans     $   6,579   $   6,188   $   5,530   $   24,391   $   22,879  
  Interest on investment securities       140       131       123       544       473  
  Dividends on investment securities       90       88       85       353       287  
  Other interest income         25       25       26       120       102  
    Total interest and dividend income     6,834       6,432       5,764       25,408       23,741  
                               
Interest expense                            
  Interest on deposits         724       549       476       2,242       2,016  
  Interest on Federal Home Loan Bank borrowings     113       73       122       371       368  
  Interest on Note Payable - long term senior debt     25       -        -        25       -   
  Interest on subordinated debt         84       85       76       334       294  
  Interest on other borrowings         11       9       9       36       12  
    Total interest expense       957       716       683       3,008       2,690  
               
    Net interest income       5,877       5,716       5,081       22,400       21,051  
                               
Provision for loan losses           150       355       -        2,464       250  
                               
    Net interest income after                      
    provision for loan losses       5,727       5,361       5,081       19,936       20,801  
               
Non-interest income                          
  Loan application, inspection and processing fees     28       64       14       180       185  
  Fees and service charges         149       150       143       600       612  
  Rental Income           103       104       97       414       402  
  Other income           88       94       90       362       352  
    Total non-interest income       368       412       344       1,556       1,551  
                               
Non-interest expense                          
  Salaries and benefits         2,155       2,169       2,263       9,489       9,247  
  Occupancy and equipment expense       797       783       784       3,110       3,462  
  Data processing           125       288       423       939       1,226  
  Professional services and other outside services     565       409       374       1,747       1,656  
  Advertising and promotional expenses       53       128       75       394       591  
  Loan administration and processing expenses     24       14       13       54       50  
  Regulatory assessments         151       159       152       604       603  
  Insurance expense           54       57       61       222       304  
  Material and communications         88       106       145       402       427  
  Other operating expenses         402       328       318       1,395       1,285  
    Total non-interest expense       4,414       4,441       4,608       18,356       18,851  
                               
    Income before income taxes       1,681       1,332       817       3,136       3,501  
Expense for Income taxes           636       518       285       1,207       1,358  
    Net income     $     1,045   $     814   $     532   $     1,929   $     2,143  
               
    Basic income per share    $   0.27   $   0.21   $   0.14   $   0.49   $   0.55  
    Diluted income per share   $   0.27   $   0.21   $   0.14   $   0.49   $   0.55  
                               

 
                     
PATRIOT NATIONAL BANCORP, INC.            
FINANCIAL RATIOS AND OTHER DATA            
(Unaudited)                  
Dollars in thousands, except per share data            
                     
            Dec 31, 2016   Sept 30, 2016   Dec 31, 2015
Asset Quality:                  
    Nonaccrual loans     $   1,811     $   4,751     $   1,593  
    Other real estate owned       851         851         -   
      Total nonperforming assets $   2,662     $   5,602     $   1,593  
                     
                     
    Nonaccrual loans / loans     0.31 %     0.85 %     0.33 %
    Nonperforming assets / assets   0.35 %     0.82 %     0.24 %
    Allowance for loan losses   $   4,675     $   7,328     $   5,242  
    Allowance for loan losses / loans   0.80 %     1.31 %     1.08 %
    Allowance / nonaccrual loans   258.1 %     154.2 %     329.1 %
    Gross loan charge-offs for the quarter $   2,935     $   238     $   11  
    Gross loan (recoveries) for the quarter $   (132 )   $   (2 )   $   (12 )
    Net loan charge-offs (recoveries) for the quarter $   2,803     $   236     $   (1 )
                     
                     
Capital Data:                  
    Book value per share (1)   $   16.08     $   15.80     $   15.54  
    Shares outstanding       3,891,897         3,959,903         3,956,207  
                     
                     
(1)  Book value per share represents shareholders' equity divided by outstanding shares.      

 
Contact:Patriot Bank, N.A.900 Bedford StreetStamford, CT 06901www.BankPatriot.comMichael CarrazzaCEO & Chairman203-251-8230Neil M. McDonnellEVP & CFO203-252-5938

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