EXHIBIT 99.1
Patriot National Bancorp Announces Strong Second Quarter Results
STAMFORD, Conn., July 27, 2015 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. ("Patriot" or the "Company") (NASDAQ:PNBK), the parent company of Patriot National Bank (the "Bank"), today announced financial results for its second quarter ended June 30, 2015.
Patriot reported net income for the second quarter of 2015 of $689,000, or $0.17 per diluted share, compared to $525,000, or $0.13 per diluted share, a year ago and compared to $289,000, or $0.07 per diluted share, last quarter. Pretax income in the second quarter was $1,141,000 compared with $525,000 for the same quarter of last year, a 117% improvement. Compared to last quarter net income increased 138%. Kenneth T. Neilson, President and CEO commented that "this quarter's progress is the result of decisions and strategies developed and implemented in 2014. We continue to focus on working to improve every aspect of our operation."
Michael Carrazza, Chairman, stated that "given our financial progress and healthy condition, we are actively exploring strategic activities in order to increase shareholder value."
Net interest income increased by $1,315,000, or 32%, compared to the second quarter of last year and by $372,000, or 7%, compared to the first quarter of this year. The growth in net interest income was the result of loan growth along with an expanded net interest margin. Patriot's net interest margin for the second quarter of 2015 was 3.73% compared to 3.31% in the second quarter of 2014 and 3.49% last quarter.
No provision for loan losses was made in the second quarter as asset quality continues to be strong and Patriot's Reserve for Loan Losses is 10 times total nonperforming loans. Patriot had no charge-offs and a net recovery of $15,000 in the second quarter of 2015.
Non-interest income decreased by $172,000 from the second quarter of 2014 and increased by $57,000 from the first quarter of this year. The decrease from the comparable period last year is primarily the result of no Bank Owned Life Insurance ("BOLI") income due to the fourth quarter 2014 disposal of the BOLI investment and to lower overdraft fees. The improvement from the first quarter of this year is primarily the result of an increase in loan origination fees.
Non-interest expense in the second quarter of 2015 increased by $527,000, or 12%, compared to the second quarter of 2014 with 80% of that increase being in salaries and benefits as Patriot strengthened its management team and established a bonus program. The additional staff will also help reduce consulting expenses in future periods. Compared to last quarter non-interest expense increased by $28,000, or less than one percent.
For the six months ended June 30, 2015, Patriot reported net income of $978,000 ($0.25 basic and diluted income per share), an increase of $134,000, or 16%, compared to net income of $844,000 ($0.22 basic and diluted income per share) for the six months ended June 30, 2014. On a pretax basis Patriot earned $1,631,000 in the current year-to-date period, a 93% improvement over the same period last year.
At June 30, 2015 total assets were $629 million compared to $647 million at March 31, 2015 and $552 million at June 30, 2014. Net loans totaled $489 million at June 30, 2015 compared to $494 million at March 31, 2015 and $403 million at June 30, 2014. Deposits were $457 million at June 30, 2015 and March 31, 2015 and $426 million at June 30, 2014. The deposit mix continues to improve as non-interest bearing deposits grow and become a larger portion of total deposits. Patriot's total cost of deposits was 0.45% for the quarter as compared to 0.49% in the prior quarter and 0.57% in the quarter ended June 30, 2014.
Asset quality has continued to improve. Nonperforming loans totaled $511,000 at June 30, 2015 and Patriot has had no Other Real Estate Owned ("OREO") on its books for four consecutive quarters. At June 30, 2015 Patriot's Allowance for Loan Losses provided better than ten times coverage of nonperforming loans and the Company has experienced three consecutive quarters of net recoveries.
At June 30, 2015 shareholders' equity was $60.1 million compared to $59.3 million at March 31, 2015 and $43.3 million a year ago. The Company's tangible book value per share was $15.19 at June 30, 2015 compared to $15.00 at March 31, 2015 and $11.06 at June 30, 2014. Patriot's leverage capital ratio was 9.44% as of June 30, 2015. Its Common Equity Tier I Capital ratio was 10.17%. The Tier I Risk Based Capital ratio was 11.80% and the total Risk-based Capital Ratio was 12.86%. These regulatory capital ratios all exceed those necessary to be considered a well-capitalized institution under Federal guidelines.
"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 STATEMENTS OF OPERATIONS |
| (Unaudited) | Three Months Ended | Six Months Ended |
| Dollars in thousands, except per share data | June 30, 2015 | Mar. 31, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 |
| | | | | | |
| Interest and dividend income | | | | | |
| Interest and fees on loans | $ 5,924 | $ 5,546 | $ 4,667 | $ 11,470 | $ 9,358 |
| Interest on investment securities | 119 | 116 | 133 | 235 | 268 |
| Dividends on investment securities | 60 | 57 | 42 | 117 | 83 |
| Other interest income | 17 | 29 | 14 | 46 | 26 |
| Total interest and dividend income | 6,120 | 5,748 | 4,856 | 11,868 | 9,735 |
| | | | | | |
| Interest expense | | | | | |
| Interest on deposits | 513 | 529 | 607 | 1,042 | 1,244 |
| Interest on Federal Home Loan Bank borrowings | 85 | 71 | 33 | 156 | 66 |
| Interest on subordinated debt | 73 | 71 | 82 | 144 | 282 |
| Total interest expense | 671 | 671 | 722 | 1,342 | 1,592 |
| | | | | | |
| Net interest income | 5,449 | 5,077 | 4,134 | 10,526 | 8,143 |
| | | | | | |
| Provision for loan losses | -- | 250 | -- | 250 | -- |
| | | | | | |
| Net interest income after provision for loan losses | 5,449 | 4,827 | 4,134 | 10,276 | 8,143 |
| | | | | | |
| Non-interest income | | | | | |
| Loan application, inspection and processing fees | 105 | 50 | 100 | 155 | 166 |
| Fees and service charges | 147 | 174 | 233 | 321 | 452 |
| Earnings on cash surrender value of life insurance | -- | -- | 116 | -- | 237 |
| Other income | 199 | 170 | 174 | 369 | 361 |
| Total non-interest income | 451 | 394 | 623 | 845 | 1,216 |
| | | | | | |
| Non-interest expense | | | | | |
| Salaries and benefits | 2,395 | 2,344 | 1,976 | 4,739 | 3,947 |
| Occupancy and equipment expense | 909 | 955 | 865 | 1,864 | 1,787 |
| Data processing | 255 | 250 | 279 | 505 | 529 |
| Professional services and other outside services | 391 | 569 | 457 | 960 | 928 |
| Advertising and promotional expenses | 137 | 50 | 73 | 187 | 124 |
| Loan administration and processing expenses | 7 | 22 | 19 | 29 | 36 |
| Regulatory assessments | 157 | 154 | 237 | 311 | 467 |
| Insurance expense | 83 | 81 | 78 | 164 | 175 |
| Other real estate operations | -- | -- | (4) | -- | 12 |
| Material and communications | 106 | 81 | 84 | 187 | 177 |
| Other operating expenses | 319 | 225 | 168 | 544 | 333 |
| Total non-interest expense | 4,759 | 4,731 | 4,232 | 9,490 | 8,515 |
| | | | | | |
| Income before income taxes | 1,141 | 490 | 525 | 1,631 | 844 |
| | | | | | |
| Provision for income taxes | 452 | 201 | -- | 653 | -- |
| Net income | $ 689 | $ 289 | $ 525 | $ 978 | $ 844 |
| | | | | | |
| Basic income per share (1) | $ 0.18 | $ 0.07 | $ 0.14 | $ 0.25 | $ 0.22 |
| | | | | | |
| Diluted income per share (1) | $ 0.17 | $ 0.07 | $ 0.13 | $ 0.25 | $ 0.22 |
| | | | | | |
| (1) Income per share for 2014 has been restated for a 1-for-10 reverse stock split which took effect on March 4, 2015. |
| | | | | | |
| PATRIOT NATIONAL BANCORP, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| Dollars in thousands | June 30, 2015 | Mar. 31, 2015 | June 30, 2014 |
| | | | |
| Assets | | | |
| Cash and due from banks: | | | |
| Noninterest bearing deposits and cash | $ 2,892 | $ 2,080 | $ 1,584 |
| Interest bearing deposits | 50,201 | 63,878 | 58,345 |
| Total cash and cash equivalents | 53,093 | 65,958 | 59,929 |
| | | | |
| Securities: | | | |
| Securities-available for sale | 31,640 | 32,738 | 35,686 |
| Other investments | 4,450 | 4,450 | 4,450 |
| FRB & FHLB stock | 8,648 | 8,648 | 5,660 |
| Total securities | 44,738 | 45,836 | 45,796 |
| | | | |
| Gross loans | 493,913 | 499,359 | 408,000 |
| Allowance for loan losses | (5,208) | (5,193) | (5,214) |
| Net loans | 488,705 | 494,166 | 402,786 |
| | | | |
| Accrued interest and dividends receivable | 2,034 | 1,974 | 1,555 |
| Premises and equipment, net | 24,703 | 23,056 | 18,227 |
| Cash surrender value of life insurance | -- | -- | 22,262 |
| Deferred tax asset, net (1) | 14,221 | 14,621 | -- |
| Other assets | 1,407 | 1,495 | 1,498 |
| Total Assets | $ 628,901 | $ 647,106 | $ 552,053 |
| | | | |
| Liabilities and Shareholders' Equity | | | |
| | | | |
| Deposits | | | |
| Noninterest bearing deposits | $ 79,774 | $ 70,331 | $ 61,685 |
| Interest bearing deposits | 377,681 | 386,776 | 364,747 |
| | 457,455 | 457,107 | 426,432 |
| | | | |
| FHLB advances and repurchase agreements | 100,000 | 120,000 | 72,000 |
| Subordinated debt | 8,248 | 8,248 | 8,248 |
| Accrued expenses and other liabilities | 3,121 | 2,450 | 2,057 |
| Total Liabilities | 568,824 | 587,805 | 508,737 |
| | | | |
| Common stock | 396 | 396 | 392 |
| Treasury stock | (160) | (160) | (160) |
| Additional paid-in capital | 105,979 | 105,865 | 105,610 |
| Accumulated deficit | (45,997) | (46,686) | (61,840) |
| Accumulated other comprehensive loss | (141) | (114) | (686) |
| Total Shareholders' Equity | 60,077 | 59,301 | 43,316 |
| | | | |
| Total Liabilities and Shareholders' Equity | $ 628,901 | $ 647,106 | $ 552,053 |
| | | | |
| | | | |
| (1) At June 30, 2014, balance includes the deferred tax asset and a full valuation allowance of $17.6 million. |
| | | | |
| PATRIOT NATIONAL BANCORP, INC. |
| FINANCIAL RATIOS AND OTHER DATA |
| (Unaudited) |
| Dollars in thousands, except per share data |
| |
| | June 30, 2015 | Mar. 31, 2015 | June 30, 2014 |
| Asset Quality: | | | |
| Nonaccrual loans | $ 511 | $ 515 | $ 13,911 |
| Other real estate owned | -- | -- | -- |
| Total nonperforming assets | $ 511 | $ 515 | $ 13,911 |
| | | | |
| | | | |
| Nonaccrual loans / loans | 0.10% | 0.10% | 3.41% |
| Nonperforming assets / assets | 0.08% | 0.08% | 2.52% |
| Allowance for loan losses | $ 5,208 | $ 5,193 | $ 5,214 |
| Allowance for loan losses / loans | 1.05% | 1.04% | 1.28% |
| Allowance / nonaccrual loans | 1019.18% | 1008.35% | 37.48% |
| | | | |
| Gross loan charge-offs for the quarter | $ -- | $ 10 | $ 285 |
| Gross loan recoveries for the quarter | 15 | 29 | 19 |
| Net loan charge-offs for the quarter | $ (15) | $ (19) | $ 266 |
| | | | |
| | | | |
| Capital Data: | | | |
| Book value per share (1) | $ 15.19 | $ 15.00 | $ 11.06 |
| Tangible book value per share (2) | $ 15.19 | $ 15.00 | $ 11.06 |
| Shares outstanding | 3,953,949 | 3,953,949 | 3,916,063 |
| | | | |
| (1) Book value per share represents shareholders' equity divided by outstanding shares. |
| (2) Tangible book value per share represents shareholders' equity less intangible assets divided by outstanding shares. |
CONTACT: Patriot National Bank
900 Bedford Street
Stamford, CT 06901
Kenneth T. Neilson
President & CEO
203-252-5962
Christina L. Maier
EVP & CFO
203-252-5901