Patriot National Bancorp, Inc. - Company Summary

Business Overview

• Type of Company: Bank holding company for Patriot Bank, N.A.
• Headquarters: Stamford, Connecticut
• Primary Operations: Commercial banking services in Connecticut and New York
• Number of Branches: 8 total
  • 7 in Fairfield and New Haven Counties, Connecticut
  • 1 in Westchester County, New York

Core Business Activities

• Lending Services:
  • Commercial real estate loans
  • Commercial business loans
  • SBA loans under the 7(a) program
  • Limited consumer loans for individuals, small, and medium-sized businesses, and professionals
  • Discontinued residential real estate loans in 2013 but reentered the residential mortgage business in 2024 via originating loans through its Jacksonville, Florida-based Residential Mortgage Division, selling most loans to third parties
• Deposit Accounts:
  • Checking accounts
  • Interest-bearing NOW accounts
  • Money market accounts
  • Certificates of deposit (CDs)
  • Savings accounts
  • IRAs, HSAs, prepaid debit deposits, and online money market accounts
  • Specialized services: ACH transfers, lockbox, internet banking, bill pay, remote deposit, ATMs, money orders, traveler’s checks
• Additional Services:
  • Digital Payments Division processes high-volume payment transactions, generating lower-cost deposits and non-interest income
  • Investment securities, mainly government-sponsored, to diversify assets and maintain liquidity
• Employees: 129 full-time employees as of December 31, 2024
• Market Focus:
  • Loans and deposits primarily within Fairfield and New Haven Counties in Connecticut and Westchester County in New York
  • Broader lending extends beyond local area to nearby towns and boroughs in New York
• Business Strategy:
  • Focus on serving small and medium-sized businesses, professionals, and individual customers
  • Uses personalized service, local promotion, customer referrals, and social media for competition
  • Has entered into third-party relationships for certain services, such as credit card processing and customer data privacy

Recent Capital Raising

• Private Placement (March 20, 2025):
  • Raised $57.75 million
  • Issued 60.4 million shares of common stock at $0.75 per share
  • Issued 90,832 shares of Series A Preferred Stock with a $60 per share liquidation preference, convertible into approximately 7.27 million common shares
• Debt Conversions and Amendments:
  • Conversion of $7 million of aggregate principal of Notes into common stock
  • Amendments to subordinated and senior notes with extended maturities and increased interest rates

Financial Highlights

• Market Capitalization (as of June 30, 2024): Approximately $6.4 million
• Shares Outstanding (as of April 15, 2025): 73,725,292 shares
• Revenue Sources:
  • Interest on loans and securities
  • Fee income from banking services and loan origination
  • Gains from sale of loans and securities
  • Income from digital payments processing
• Income Statement (2024):
  • Net Loss: $39.9 million
  • Pre-tax Loss: $16.1 million
• Employees: 129 full-time
• Assets (2024): Approximately $1.01 billion, decreased from about $1.09 billion in 2023
• Net Loan Portfolio (2024): $700.2 million (down from $832.9 million in 2023) with a focus on reducing balance sheet size and strengthening capital ratios
• Loan Concentration:
  • Commercial Real Estate: 59.3% of loans
  • Residential Real Estate: 13.0%
  • Commercial & Industrial: 18.3%
  • Consumer & Other: 8.5%
• Deposits (2024): $966.6 million, up from $840.3 million in 2023
• Employees: 129 full-time as of December 31, 2024

Note: The company's business focuses on serving small to medium-sized businesses and individuals with a variety of loan and deposit products, expanding digital payment operations, and managing financial and operational risks within a regional market.