Patriot National Bancorp, Inc.
Annual Shareholders Meeting
June 17, 2009
Greenwich Hyatt
Patriot National Bancorp, Inc.
Total Assets
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Patriot National Bancorp, Inc.
Total Deposits
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Patriot National Bancorp, Inc.
19 Full Service Branches in Operation June 2008
MAP
Patriot National Bancorp, Inc.
Total Net Loans
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Patriot National Bancorp, Inc.
Real Estate Loans Geographic Distribution
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Patriot National Bancorp, Inc.
Loan Portfolio Composition
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Patriot National Bancorp, Inc.
Working Out Construction Loans in a Weak Real Estate Market
• Significant Increase in Non-Accrual Loans in 2008 to $80.5 Million
• Maximum Loan to Value Ratio 65% “as Complete” at Origination
• Average Loan to Value Ratio “as Complete” at Origination 55%
• No Construction Loan Charge Offs in 2008
• All Construction Spec Loans Originated in Connecticut & New York
• Construction Advances Are Monitored by Inspectors Prior to Draws
• Members of Management Know Area Where The Loans Are Made
• No Large Tract Development Financed
• Most Condo Projects Financed are Small and All Are Within the
Markets in Connecticut and Southern New York
Patriot National Bancorp, Inc.
Loan Portfolio
• Significant Concentration in Commercial Real Estate & Construction Loans
• No Sub-Prime Loan Exposure
• No Option ARM’s
• No Negative Amortization Loans
• No High Loan To Value Ratio Real Estate Loans “At Origination”
• No High Loan To Value Home Equity Loans Originated for Portfolio
• Minimal Credit Card Loan And Auto Loan Exposure
• Minimal Unsecured Loans
• Conservative Loan to Value Standards Were Used to Underwrite and Originate Construction Loans
Patriot National Bancorp, Inc.
Housing Market from 1988 to 1st Quarter 2009 for Fairfield County
# of Single Family Homes Sold (annualized), Fairfield County, 1988-Q1 2009
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Patriot National Bancorp, Inc.
Housing Market from 1988 to 1st Quarter 2009 for Fairfield County
Median Single Family Home Sales Price, Fairfield County, 1988-Q1 2009
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Patriot National Bancorp, Inc.
Housing Market from 1988 to 1st Quarter 2009 for Fairfield County
Single Family Homes Median Sale Pricec and # Sold, Fairfield County, 1988-Q1 2009
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Patriot National Bancorp, Inc.
Housing Market from 1988 to 1st Quarter 2009 for Greenwich
# of Single Family Homes Sold, Greenwich, CT 1988-Q1 2009
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Patriot National Bancorp, Inc.
Housing Market from 1988 to 1st Quarter 2009 for Greenwich
Median Single Family Home Sales Price, Greenwich, CT 1988-Q1 2009
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Patriot National Bancorp, Inc.
Housing Market from 1988 to 1st Quarter 2009 for Greenwich
Single Family Homes Median Sale Price and # Sold, Greenwich, CT 1988-Q1 2009
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Patriot National Bancorp, Inc.
Construction Loans Paid Off in 2008
• $110.5 Million in Patriot Construction Loans Were Paid Off or Refinancd at Other Institutions
• No Charge Offs Taken on Any Construction Loans Paid Off During 2008
• The Average Outstanding Loan Balance on Paid Off Construction Loans Was 67% of the Sales Price on Those Loans Paid Off by Sale
Patriot National Bancorp, Inc.
Interest Rate Risk Exposure
No Long Term Fixed Rate Mortgages Held in Portfolio
Patriot National Bancorp, Inc.
Allowance For Loan Losses
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Patriot National Bancorp, Inc.
| Analysis Of Allowance For Loan Losses |
| | | | | | | | |
| | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 |
| | (Thousands of Dollars) | | |
| Balance At Beginning Of Period | $5,673 | $5,630 | $4,588 | $3,481 | $2,934 | $2,372 | $1,894 |
* Net Recoveries (Charge-Offs) | (715) | (32) | 2 | (3) | (9) | (1) | 10 |
| Additions Charged To Operations | 11,289 | 75 | 1,040 | 1,110 | 556 | 563 | 468 |
| Balance At End Of Period | $16,247 | $5,673 | $5,630 | $4,588 | $3,481 | $2,934 | $2,372 |
| | | | | | | | |
| Ratio of Net Recoveries (Charge-Offs) | | | | | | | |
| During The Period To Average Loans | | | | | | | |
Net Charge-offs 7 Years $748,000 through December 31, 2008
Provision To Allowance For Loan Losses $15.1 Million For Same Period
Patriot National Bancorp, Inc.
Asset Quality
Investment Securities Portfolio (Available For Sale)
• No Sub-Prime Loan Exposure In Investment Portfolio
• All Mortgage Backed Securities Held In Portfolio Are U.S. Government Agency or Government Sponsored Agency Securities
Patriot National Bancorp, Inc.
Net Interest Income
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Patriot National Bancorp, Inc.
Significant Unusual 2008 Events
• $11.3 Million Provisions to Allowance for Loan Losses
• $2.1 Million Impairment Charges on Investment Grade Auction Rate Securities*
• $1.4 Million Goodwill Impairment Charges
• $1.05 FHLMC – 100% Write Off
* Note: All Auction Rate Securities Remain Investment Grade and
Continue to Pay Dividends in Accordance With the Terms of the Securities
Patriot National Bancorp, Inc.
Net Income
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Patriot National Bancorp, Inc.
Earnings Per Share
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Patriot National Bancorp, Inc.
Navigating Through The Economic Storm
Steps Taken
• The Bank Currently has a Moratorium on Construction Loans and Commercial Real Estate Loans to Reduce Exposure
• The Bank’s Asset and Loan Growth Will be Modest
• Re-Appraisal Program
• Formed Experience Loan Workout Team
Patriot National Bancorp, Inc.
Steps Taken
• Eliminated Executive Bonuses in 2008 And 2009
• Implemented a Salary Freeze on All Officers Assistant Vice President and Above
• Closed Long Island Lending Office
• Reduced the Number of Salary Based Commercial Real Estate Loan Officers by Nine
• Reduced Annual Market Budget by 50%
• Eliminated Common Stock Dividend
Patriot National Bancorp, Inc.
2009 Prospects
• Non-Performing Loans Expected to Increase
• NPL’s Expected to Peak in the 4th Quarter 2009 and Then Trend Down in 2010
• Continued Significant Provisions to Allowance For Loan Losses
• Net Operating Losses
• Writedowns of Construction Loans Until Disposed Of
• Limited Balance Sheet and Loan Growth Until Capital is Raised
Patriot National Bancorp, Inc.
Dependent on End of Recession and
Stabilization And Improvement in
Local Real Estate Markets
Patriot National Bancorp, Inc.
The Future
• Fewer Competitors
• The Bank Will Be Well Positioned Provided Capital is Raised and Problems Loans Are Resolved
• Patriot Has 19 Full Service Branches in One of The Most Desirable Real Estate Markets in The U.S.
• Loan and Deposit Pricing More Favorable for Banks
Patriot National Bancorp, Inc.
Annual Shareholders Meeting
June 17, 2009
Greenwich Hyatt
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