Patriot National Bancorp, Inc. (PNBK)
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Performance Outlook
| Previous Close | 6.08 |
| Open | 5.72 |
| Bid | 6.58 x 1000 |
| Ask | 7.00 x 1000 |
| Day's Range | 5.78 - 7.84 |
| 52 Week Range | 3.83 - 14.00 |
| Volume | 59,275 |
| Avg. Volume | 23,610 |
| Market Cap | 28.886M |
| Beta (5Y Monthly) | 0.86 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.98 |
| Earnings Date | Aug 25, 2020 |
| Forward Dividend & Yield | 0.04 (0.54%) |
| Ex-Dividend Date | Dec 06, 2019 |
| 1y Target Est | N/A |
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- GlobeNewswire
Patriot Reports 2nd Quarter 2020 Net Loss
STAMFORD, Conn., Aug. 25, 2020 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the “Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced a pretax loss of $1.7 million (net loss of $1.3 million), or $0.32 basic and diluted loss per share for the quarter ended June 30, 2020. The six-month, year-to-date net loss is $2.4 million, or $0.60 per fully diluted share, as compared to a net loss of $1.3 million, or $0.34 per fully diluted shares, during the same period in the prior year. The 2020 results to date, reflect a higher loan loss provision the Bank has put in place as a precaution relating to COVID-19, along with lower net interest income and non-interest income, due to the lower market interest rates.The Bank continues to provide CARES Act payment relief on loan balances, now totaling approximately $223.2 million - predominately commercial real estate loans and commercial industrial loans.In the second quarter of 2020, total assets decreased 2% to $979.5 million, as of June 30, 2020, as compared to the first quarter of 2020. The Bank’s Net Loan portfolio decreased 3.3% or by $26.5 million, to $781.4 million, while Deposits decreased $20.1 million or 2.5%, to $783.1 million. This decrease in Deposits is reflective of a decline in the use of wholesale brokered deposits.Excluding that change in brokered deposits, total deposits to the institution actually increased $43 million (5%) for the quarter, reflecting success in Patriot’s new on-line national deposit initiative, which grew by $35 million during the second quarter of 2020, along with a simultaneous growth in regional retail branch banking deposits. This is all part of a strategic balance sheet repositioning designed to downsize and strengthen the Bank’s capital ratios and position the Company for a return to profitability.As far as the impact of COVID-19, Patriot has kept all branches open with customers re-directed to non-contact ATM’s and Live Banker ATMs as on-line banking services continue to be optimized with expanded customer call center staffing. Its multi-year investment to enhance customer’s technological banking experience has been well tested during the pandemic, as from January 1 to June 30, 2020, Patriot’s mobile deposits were up 163%, use of its mobile app banking was up 31%, monthly average log-ins rose 16% and the number of customers completely new to digital banking rose by 26%.Michael Carrazza, Patriot’s Chairman stated: “The past six months have been incredibly challenging to U.S. businesses and consumers, but we have capably managed through the pandemic, while strengthening our valued customer base. With strategic adjustments to our balance sheet, we believe we have initiated steps to bolster our capital position to bridge us through what we hope is the tail end of the pandemic and back to profitability. In addition, we have made numerous operating and staff changes to strengthen Patriot’s management team and improve operating efficiency. The latest change includes the recruitment of a seasoned community bank executive, Robert Russell, to lead Patriot as its new President/CEO. We have also enhanced our funding base through the closing of a $52 million pre-paid debit card transaction that was completed in mid-July. The benefits of this transaction will begin being reflected in the 3rd quarter.”Patriot President & CEO Robert Russell added: “I believe the Bank has established the right foundation for future growth and enhanced profitability. Patriot’s focus on organic growth of customer deposits is making an impact at the local branch level and our national on-line deposit gathering has also seen success. The Bank has invested in building strong customer relationships, a well-developed technology platform and intends to continue to leverage those activities. We received approval to compete in the pre-paid card business during July and we completed a transaction resulting in over $50 million in prepaid deposits which will have a positive impact on the Bank’s cost of funds. Patriot is committed to growing the SBA division and is focused on small business and commercial lending. We believe that the decisions we are making today as an organization will position the Bank for the future, especially as the local and national economies recover from the impact of the pandemic.”Financial Results: As of June 30, 2020, total assets were $979.5 million, as compared to $999.6 million at March 31, 2020 and $977.8 million at June 30, 2019. Net loans receivable totaled $781.4 million, as compared to $807.9 million at March 31, 2020 and $803.3 million at June 30, 2019. Deposits totaled $783.1 million at June 30, 2020, as compared to $803.2 million at March 31, 2020 and $767.6 million at June 30, 2019.The decline in loans and total assets represents the intentional downsizing of the Bank’s balance sheet as the current economic uncertainties associated with the COVID-19 pandemic are assessed. The Company continues to originate loans, but at a slower pace than in the past, and has seen loan maturities and loan payoffs outpace loan originations during the first six months of 2020.While total deposits declined $20 million during the quarter, this solely reflects a decline in wholesale brokered deposits, which declined $64 million during the quarter due in part to the decline in loan volumes. Excluding the change in brokered deposits, total deposits increased $43 million (5%) for the quarter, reflecting the success of the Bank’s on-line national deposit initiative, which grew by $35 million during the second quarter, along with a growth in retail branch banking deposits.Net interest income was $5.7 million in the second quarter of 2020, a decrease of 10.1% from the first quarter of 2020, and a decline of 14.1% from the second quarter of 2019. The year-to-date net interest income was $12.0 million, a decrease of 7.5% over the year-to-date June 2019.Net interest margin was 2.46% in the second quarter of 2020, as compared to 2.72% in the first quarter of 2020 and 2.96% in the second quarter of 2019.This decline reflects the impact of lower interest rates connected with the 1.50% decline in market interest rates in late first quarter of 2020 connected to the COVID-19 pandemic. Asset yields were impacted by those changes in the second quarter while retail and brokered deposit rates have declined at a slower pace. Compared to the prior year, net interest income was also negatively impacted by an increase in the rate paid on FHLB borrowings associated with the conversion of certain borrowings from a low variable teaser rate to higher fixed rate.The provision for loan losses in the second quarter of 2020 was $910,000, as compared to $804,000 in the first quarter of 2020 and $2.9 million in the second quarter of 2019. The provision for loan losses in 2020 was primarily due to loan charge-offs and an additional reserve attributable to the COVID-19 pandemic. The provision for loan losses in the second quarter of 2019 was primarily due to a large provision booked in the quarter associated with a single commercial loan charge off. The Allowance for Loan losses now totals 1.41% of total loans compared with 1.33% in the first quarter of 2020 and 1.04% a year ago.Noninterest income was $389,000 in the second quarter of 2020, 7.6% lower than the first quarter of 2020, and 48.7% lower than the second quarter of 2019. The year-to-date non-interest income was $810,000, a 46.1% decrease over year-to-date non-interest income as of June 30, 2019. The decrease in noninterest income was primarily due to lower realized gains on the sale of SBA loans associated with delays in executing the sale of those loans.Noninterest expense was $6.9 million in the second quarter of 2020, 6.5% lower than the first quarter of 2020, and 2.4% higher than the second quarter of 2019. The year-to-date non-interest expense was $14.3 million, 8.2% higher than the prior year. The increase in non-interest expense was primarily driven by an increase of $714,000 in salaries and benefits reflecting the build-up of staffing in the SBA business during the second half of 2019 and lower loan origination cost deferrals due to the lower volume of loan originations.The income tax benefit was $446,000 in the second quarter of 2020, representing an effective tax rate of 26%.As of June 30, 2020, shareholders’ equity was $64.2 million, as compared to $64.6 million at March 31, 2020. Patriot’s book value per share was $16.30 at June 30, 2020, as compared to $16.43 at March 31, 2020. The Bank’s capital ratios continue to be strong, maintaining its “well capitalized” regulatory status. As of June 30, 2020, the Bank’s Tier 1 leverage ratio was 9.03%, Tier 1 risk-based capital ratio was 10.52% and total risk-based capital ratio was 11.77%.Patriot suspended its quarterly dividend and expects to resume when the current economic uncertainties are settled.Patriot Bank is headquartered in Stamford and operates 9 branch locations: in Scarsdale, NY; and Darien, Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport, CT with Express Banking locations at Bridgeport/ Housatonic Community College, downtown New Haven and Trumbull at Westfield Mall. The Bank also maintains SBA lending offices in Jacksonville and Stamford, along with a Rhode Island operations center.About the Company: Founded in 1994, and now celebrating its 26th year, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is the parent holding company of Patriot Bank N.A. (“Bank”), a nationally chartered bank headquartered in Stamford, CT. Patriot operates with full service branches in Connecticut and New York and provides lending products and services nationally. Patriot’s mission is to serve its local community and nationwide customer base by providing a growing array of banking solutions to meet the needs of individuals and small businesses owners. Patriot places great value in the integrity of its people and how it conducts business. An emphasis on building strong client relationships and community involvement are cornerstones of our philosophy as we seek to maximize shareholder value.“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 the Company’s interest earning assets and the interest paid on its interest bearing liabilities; (2) the timing of re-pricing of the Company’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 the Company 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 the Company to provide products and services which it is impracticable for the Company to provide; (7) the state of the economy and real estate values in the Company’s market areas, and the consequent effect on the quality of the Company’s loans; (8) demand for loans and deposits in our market area; (9) 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; (10) 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; (11) the application of generally accepted accounting principles, consistently applied; (12) the fact that one period of reported results may not be indicative of future periods; (13) 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 the Company’s other filings with the Securities and Exchange Commission (the “SEC”); (14) political, social, legal and economic instability, civil unrest, war, catastrophic events, acts of terrorism; (15) widespread outbreaks of infectious diseases, including the ongoing novel coronavirus (COVID-19) outbreak; (16) changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; (17) our ability to access cost-effective funding; (18) our ability to implement and change our business strategies; (19) changes in the quality or composition of our loan or investment portfolios; (20) technological changes that may be more difficult or expensive than expected; (21) our ability to manage market risk, credit risk and operational risk in the current economic environment; (22) our ability to enter new markets successfully and capitalize on growth opportunities; (23) changes in consumer spending, borrowing and savings habits; (24) our ability to retain key employees; and (25) our compensation expense associated with equity allocated or awarded to our employees.Contacts: Patriot Bank, N.A.Joseph Perillo Robert RussellMichael Carrazza 900 Bedford Street Chief Financial OfficerPresident & CEO Chairman Stamford, CT 06901203-252-5954203-252-5939 203-251-8230 www.BankPatriot.com PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data)June 30, 2020 March 31, 2020 June 30, 2019 Assets Cash and due from banks: Noninterest bearing deposits and cash$1,616 $1,806 $5,578 Interest bearing deposits 64,280 50,350 45,538 Total cash and cash equivalents 65,896 52,156 51,116 Investment securities: Available-for-sale securities, at fair value 46,624 44,830 43,839 Other investments, at cost 4,450 4,450 4,963 Total investment securities 51,074 49,280 48,802 Federal Reserve Bank stock, at cost 2,897 2,897 2,922 Federal Home Loan Bank stock, at cost 4,503 4,477 4,513 Gross loans receivable 792,500 818,841 10,819 Allowance for loan losses (11,148) (10,916) 792,500 Net loans receivable 781,352 807,925 803,319 SBA loans held for sale 7,579 17,996 4,283 Accrued interest and dividends receivable 5,624 3,801 3,678 Premises and equipment, net 33,962 34,312 35,249 Other real estate owned 2,400 2,400 1,954 Deferred tax asset, net 12,180 11,989 11,132 Goodwill 1,107 1,107 1,107 Core deposit intangible, net 586 605 661 Other assets 10,384 10,634 9,031 Total assets$ 979,544 $ 999,579 $ 977,767 Liabilities Deposits: Noninterest bearing deposits$97,360 $83,583 $84,295 Interest bearing deposits 685,728 719,631 683,271 Total deposits 783,088 803,214 767,566 Federal Home Loan Bank and correspondent bank borrowings 90,000 90,000 100,000 Senior notes, net 11,890 11,871 11,815 Subordinated debt, net 9,767 9,760 9,738 Junior subordinated debt owed to unconsolidated trust, net 8,106 8,104 8,098 Note payable 1,094 1,143 1,291 Advances from borrowers for taxes and insurance 3,773 2,637 3,239 Accrued expenses and other liabilities 7,654 8,227 7,730 Total liabilities 915,372 934,956 909,477 Commitments and Contingencies - - - Shareholders' equity Preferred stock - - - Common stock 106,251 106,213 106,059 Accumulated deficit (41,123) (39,845) (37,210) Accumulated other comprehensive loss (956) (1,745) (559) Total shareholders' equity 64,172 64,623 68,290 Total liabilities and shareholders' equity$ 979,544 $ 999,579 $ 977,767 PATRIOT NATIONAL BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended (In thousands, except per share amounts)June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Interest and Dividend Income Interest and fees on loans$9,111 $10,033 $10,345 $19,144 $20,100 Interest on investment securities 378 416 398 794 777 Dividends on investment securities 90 138 114 228 232 Other interest income 24 135 237 159 570 Total interest and dividend income 9,603 10,722 11,094 20,325 21,679 Interest Expense Interest on deposits 2,792 3,200 3,533 5,992 6,797 Interest on Federal Home Loan Bank borrowings 638 697 426 1,335 865 Interest on senior debt 228 229 228 457 457 Interest on subordinated debt 253 268 279 521 568 Interest on note payable and other 5 5 8 10 14 Total interest expense 3,916 4,399 4,474 8,315 8,701 Net interest income 5,687 6,323 6,620 12,010 12,978 Provision for Loan Losses 910 804 2,937 1,714 3,102 Net interest income after provision for loan losses 4,777 5,519 3,683 10,296 9,876 Non-interest Income Loan application, inspection and processing fees 40 53 28 93 42 Deposit fees and service charges 66 114 116 180 243 Gains on sale of loans 72 12 296 84 676 Rental income 131 131 192 262 322 Other income 80 111 126 191 221 Total non-interest income 389 421 758 810 1,504 Non-interest Expense Salaries and benefits 3,645 3,861 3,608 7,506 6,792 Occupancy and equipment expenses 921 949 744 1,870 1,661 Data processing expenses 371 390 361 761 731 Professional and other outside services 726 784 803 1,510 1,512 Project expenses, net 54 94 (15) 148 65 Advertising and promotional expenses 123 147 77 270 192 Loan administration and processing expenses 36 24 43 60 57 Regulatory assessments 364 440 395 804 710 Insurance expenses 78 70 54 148 95 Communications, stationary and supplies 133 120 131 253 265 Other operating expenses 439 492 527 931 1,096 Total non-interest expense 6,890 7,371 6,728 14,261 13,176 Loss before income taxes (1,724) (1,431) (2,287) (3,155) (1,796) Benefit for Income Taxes (446) (359) (632) (805) (464) Net loss$(1,278) $(1,072) $(1,655) $(2,350) $(1,332) Basic loss per share$(0.32) $(0.27) $(0.42) $(0.60) $(0.34) Diluted loss per share$(0.32) $(0.27) $(0.42) $(0.60) $(0.34) FINANCIAL RATIOS AND OTHER DATA Three Months Ended Six Months Ended (Dollars in thousands) June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Quarterly Performance Data: Net loss $(1,279) $(1,072) $(1,655) $(2,350) $(1,332) Return on Average Assets -0.52% -0.44% -0.69% -0.48% -0.28% Return on Average Equity -7.89% -6.37% -9.44% -7.15% -3.82% Net Interest Margin 2.46% 2.72% 2.96% 2.60% 2.92% Efficiency Ratio 113.41% 109.28% 91.19% 111.25% 90.98% Efficiency Ratio excluding project costs 112.51% 107.90% 91.38% 110.09% 90.53% % (decrease) increase loans -3.22% 0.82% 2.95% -2.42% 4.02% % (decrease) increase deposits -2.51% 4.38% 1.96% 1.76% 3.27% Asset Quality: Nonaccrual loans $21,593 $16,450 $19,405 $21,593 $19,405 Other real estate owned $2,400 $2,400 $1,954 $2,400 $1,954 Total nonperforming assets $23,993 $18,850 $21,359 $23,993 $21,359 Nonaccrual loans / loans 2.72% 2.01% 2.39% 2.72% 2.39% Nonperforming assets / assets 2.45% 1.89% 2.18% 2.45% 2.18% Allowance for loan losses $11,148 $10,916 $8,458 $11,148 $8,458 Valuation reserve $485 $1,100 $1,416 $485 $1,416 Allowance for loan losses with valuation reserve $11,633 $12,016 $9,874 $11,633 $9,874 Allowance for loan losses / loans 1.41% 1.33% 1.04% 1.41% 1.04% Allowance / nonaccrual loans 51.63% 66.36% 43.59% 51.63% 43.59% Allowance for loan losses and valuation reserve / loans 1.47% 1.47% 1.21% 1.47% 1.21% Allowance for loan losses and valuation reserve / nonaccrual loans 53.87% 73.05% 50.88% 53.87% 50.88% Gross loan charge-offs $691 $44 $2,307 $735 $2,307 Gross loan recoveries $(13) $(41) $(5) $(54) $(54) Net loan charge-offs $678 $3 $2,302 $681 $2,253 Capital Data and Capital Ratios Book value per share (1) $16.30 $16.43 $17.41 $16.30 $17.41 Shares outstanding 3,935,841 3,932,841 3,922,610 3,935,841 3,922,610 Bank Capital Ratios: Leverage Ratio 9.03% 9.16% 9.61% 9.03% 9.61% Tier 1 Capital 10.52% 10.51% 10.66% 10.52% 10.66% Total Risk Based Capital 11.77% 11.76% 11.65% 11.77% 11.65% (1) Book value per share represents shareholders' equity divided by outstanding shares.
- GlobeNewswire
Patriot Bank Closes $52 million Pre-Paid Debit Card Transaction
STAMFORD, Conn., July 21, 2020 -- Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the “Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”),.
- GlobeNewswire
Patriot Bank Names New President & CEO
STAMFORD, Conn., July 13, 2020 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the “Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced that Robert G. Russell, Jr. has been named President and CEO of both the Bank and its parent company, Patriot. Mr. Russell joins Patriot from Millington Bank of Morris and Somerset Counties of New Jersey, where he served as Executive Vice President and Chief Operating Officer. Mr. Russell has more than 30 years of community banking experience. Previously, he served as President and Chief Executive Officer of NJM Bank, and before that, as its Chief Financial and Investment Officer. Mr. Russell has led both institutions to achieve significant growth and increases in profitability.Michael Carrazza, Chairman of Patriot said, “We’re pleased to welcome Robert Russell to lead the Patriot team. Mr. Russell has a strong community banking track record that overlaps with the leadership Patriot needs to continue its growth and unlock the intrinsic value of Patriot’s banking franchise. His skillset and the community banking experience he brings will allow us to continue building our franchise and enhance the banking services and experiences for our clients.”In June Patriot reported that the institution’s total assets, as of the first quarter 2020, increased 2% to $999.6 million, its net loan portfolio increased to $808 million, deposits grew a strong 4.4 percent, or $33.7 million, to $803.2 million, and net interest income was up 1.9%. Previous investments in technology to support online and mobile banking, as well as Patriot’s network of Live Banker ATM’s with video tellers, have served its customers seamlessly during the current pandemic.“I am excited to be joining the Patriot Bank team, having watched its consistent growth and performance over recent years and its current positioning in asset classes and technology,” said Mr. Russell. “Patriot has cultivated very strong ties to the communities that it serves, with assets, loans and deposits all growing 25% or better over the last three years. The institution has invested significantly to build new platforms in customer-focused technologies, deposit gathering strategies and SBA lending. It’s a great opportunity to leverage these investments and lead Patriot to its next level.”Patriot Bank is headquartered in Stamford and operates 9 branch locations: in Scarsdale, NY; and Darien, Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport, Ct. with Express Banking locations at Bridgeport/Housatonic Community College, downtown New Haven and Trumbull at Westfield Mall. The Bank also maintains SBA lending offices in Jacksonville, and Stamford, along with a Rhode Island operations center.About the Company:Founded in 1994, and now celebrating its 26th year, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is the parent holding company of Patriot Bank N.A. (“Bank”), a nationally chartered bank headquartered in Stamford, CT. Patriot operates with full-service branches in Connecticut and New York and provides lending products and services nationally. Patriot’s mission is to serve its local community and nationwide customer base by providing a growing array of banking solutions to meet the needs of individuals and small business owners. Patriot places great value in the integrity of its people and how it conducts business. An emphasis on building strong client relationships and community involvement are cornerstones of our philosophy as we seek to maximize shareholder value.Forward Looking Statements: Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.Contracts: Patriot Bank, N.A.Fred StaudmyerMichael Carrazza 900 Bedford StreetEVP & Chief Administrative OfficerChairman Stamford, CT 06901203-252-5921203-251-8230 www.BankPatriot.com
