Patriot National Bancorp (PNBK) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contact:
Patriot National Bank	Christopher D. Maher	Robert F. O’Connell
900 Bedford Street	President & CEO	Sr. EVP & CFO
Stamford, CT 06901	203 251-8265	203 252-5926

Patriot National Bancorp Earns $909,000 in First Nine Months of 2012;

Restructuring Initiatives Lead to Greater Operating Efficiencies

Stamford, Connecticut – November 29, 2012, Patriot National Bancorp, Inc. (NASDAQ Global Market “PNBK,” “Patriot”), the parent of Patriot National Bank (the “Bank”), today reported it earned $909,000, or $0.02 diluted income per share, for the nine months ended September 30, 2012 compared to a net loss of $15.9 million, or $0.41 diluted loss per share, for the nine months ended September 30, 2011. For the quarter ended September 30, 2012 Patriot earned $18,000 compared to $255,000 for the third quarter a year ago.

“In the third quarter we reduced operating expenses by 8.6% compared to the preceding quarter and posted our fifth consecutive quarter of profitability,” stated Michael Carrazza, Chairman of the Board. “We are on track to surpass our targeted levels of asset quality improvement by year-end and will continue to implement our core earnings profitability strategies in the fourth quarter.”

Financial Highlights:

• Total Capital to Risk Weighted Assets was 14.78% for Patriot and 14.45% for the Bank at September 30, 2012. The Tier 1 Leverage Capital Ratio was 9.60% for Patriot and 9.37% for the Bank.

• Non-interest operating expenses declined 5.0% in the current quarter compared to the same quarter a year ago primarily due to lower salaries and benefits and administrative expenses.

• The net interest margin was 2.86% in the third quarter of 2012 compared to 2.81% in the prior quarter and 3.40% in the third quarter a year ago.

• Classified assets were 9.1% of total assets at September 30, 2012, compared to 10.4% at June 30, 2012 and 11.7% in the third quarter a year ago.

• Non-accrual loans were $30.0 million, or 6.0%, of total loans at September 30, 2012, compared to $17.5 million, or 3.6% of total loans at June 30, 2012, and $21.8 million, or 4.7% of total loans, at September 30, 2011.

• Non-performing assets, which consist of non-accrual loans and OREO, were $31.3 million, or 5.1% of total assets at September 30, 2012, compared to $19.0 million, or 2.9% of total assets at June 30, 2012 and $26.5 million, or 4.2% of total assets a year ago.

Asset Quality

“Aggressively managing our troubled assets remains a top priority. The increase in delinquencies during the quarter was driven by four loans secured by properties that are being marketed for sale,” said Christopher Maher, President and Chief Executive Officer. “We will remain diligent in our efforts to reduce credit costs as problem asset resolution occurs and the economy continues to recover.”

PNBK 3Q12 Results

November 29, 2012

Four owner-occupied residential real estate loans, of which three were already categorized as substandard, but accruing interest, deteriorated and were moved to non-accrual status during the quarter. Primarily due to this action, total non-accrual loans increased $12.6 million during the third quarter to $30.0 million, or 6.1% of gross loans compared to $17.5 million, or 3.6% of gross loans, three months earlier. Total non-accrual loans were $21.8 million, or 4.7% of gross loans at September 30, 2011. The overall trend, however, was positive as 93.2% of the portfolio remained current as of September 30, 2012.

Other real estate owned (OREO) was $1.3 million at September 30, 2012 compared to $1.5 million at June 30, 2012 and $4.7 million a year ago. Only one property remains in OREO and this property is contracted for sale in the fourth quarter. Non-performing assets, which consist of non-accrual loans and OREO, totaled $31.3 million, or 5.1% of total assets at quarter end, compared to $19.0 million, or 2.9% of total assets, at June 30, 2012, and $26.5 million, or 4.2% of total assets, a year ago.

“Due to the favorable recent loss history as it relates to our assessment of the adequacy of the allowance for loan losses, a loan loss provision was not recorded during the third quarter, the same as in the third quarter a year ago,” said Mr. Maher. In the second quarter of 2012, Patriot released $1.7 million from its allowance for loan losses. The allowance for loan losses totaled $6.7 million, or 1.34% of gross loans, at September 30, 2012 compared to $11.2 million, or 2.40 %, of gross loans a year ago.

Balance Sheet Review

Patriot’s net loans increased 8.8% to $493.1 million at September 30, 2012, compared to $453.1 million a year ago. The year-over-year increase in net loans is primarily attributed to increases in commercial real estate loans, lines of credit and residential real estate loans. At September 30, 2012 the loan pipeline totaled $87.9 million, which reflects Patriot’s increased focus on new loan production, targeted at strengthening the margin and building fee income.

Total assets were $615.3 million at September 30, 2012, compared to $628.4 million at September 30, 2011. Total deposits were $484.0 million at September 30, 2012, compared to $507.7 million at September 30 of the prior year, as the Bank continues to focus on core transaction accounts while reducing the balance sheet by letting higher cost deposits run off. Non-interest bearing deposits increased 4.6% to $59.3 million at September 30, 2012, compared to $56.7 million a year earlier while interest bearing deposits declined 5.8% to $424.6 million at September 30, 2012, compared to $451.0 million a year earlier. Total deposits per branch averaged $34.3 million at September 30, 2012.

Income Statement Review

Patriot’s third quarter net interest income was $4.2 million, compared to $4.9 million in the third quarter a year ago. Interest income decreased 13.4% compared to the third quarter a year ago as a result of the lower interest rate environment’s impact on loans that re-priced, loan payoffs, and the overall loan mix. Interest expense decreased 10.7% compared to the third quarter a year ago due to the reduction in interest bearing deposits and the increase in non-interest bearing deposits. In the first nine months of 2012, net interest income was $19.5 million compared to $21.4 million in the first nine months of 2011. The decline compared to the first nine months of the prior year was due to the overall lower rate environment and the change in the balance sheet mix.

The lower interest rate environment held Patriot’s net interest margin flat during the third quarter.The net interest margin in the third quarter of 2012 was 2.86%, compared to 2.81% in the second quarter of 2012 and 3.40% in the third quarter a year ago. In the first nine months of the year the net interest margin was 2.98% compared to 3.12% in the first nine months of 2011.

PNBK 3Q12 Results

November 29, 2012

Third quarter non-interest income increased 13.7% to $1.5 million compared to $1.3 million in the third quarter of 2011, in part due to a net increase of $145,000 in the gain on sale of investment securities and a $31,000 gain on sale of loans. In the first nine months of the year, non-interest income improved modestly to $2.7 million compared to $2.6 million in the same period a year ago.

Non-interest expenses declined 5.0% to $5.7 million in the third quarter of 2012, compared to $6.0 million in the third quarter a year ago. Year-to-date, non-interest expenses decreased 27.5% to $18.1 million compared to $24.9 million in the same period a year earlier as a result of a significant reduction in salaries and benefits, restructuring charges, other real estate operations and professional services. “We closed our West End branch in June and closed three more branches during the first week of October. These branch closures will continue the significant reduction in our operating expenses going forward,” said Mr. Maher.

Capital

The capital ratios at September 30, 2012 for Patriot National Bancorp, Inc. and Patriot National Bank were:

	Patriot National Bancorp, Inc.			Patriot National Bank			Well Capitalized Requirement
Total Capital (to Risk Weighted Assets)		14.78	%		14.45	%		10.00	%
Tier 1 Capital (to Risk Weighted Assets)		13.52	%		13.19	%		6.00	%
Tier 1 Capital (to Average Assets)		9.60	%		9.37	%		5.00	%

About the Company

Patriot National Bank is headquartered in Stamford, Connecticut and currently has 11 full service branches, 9 in Connecticut and two in New York. It also has a loan production office in Stamford, CT.

Statements in this earnings release that are not historical facts are considered to be forward-looking statements. Such statements include, but are not limited to, statements regarding management beliefs and expectations, based upon information available at the time the statements are made, regarding future plans, objectives and performance. All forward-looking statements are subject to risks and uncertainties, many of which are beyond management’s control and actual results and performance may differ significantly from those contained in forward-looking statements. Bancorp intends any forward-looking statement to be covered by the Litigation Reform Act of 1995 and is including this statement for purposes of said safe harbor provisions. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Bancorp undertakes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date as of which such statements are made. A discussion of certain risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements is included in Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2011.

PNBK 3Q12 Results

November 29, 2012

PATRIOT NATIONAL BANCORP, INC.

STATEMENTS OF OPERATIONS

(unaudited)	Three Months Ended								Nine Months Ended
Dollars in thousands, except per share data	Sep. 30, 2012		Jun. 30, 2012			Sep. 30, 2011			Sep. 30, 2012			Sep. 30, 2011
Interest and dividend income
Interest and fees on loans	$	5,533	$	5,811		$	6,185		$	18,011		$	19,680
Interest on investment securities		396		427			665			1,300			1,425
Dividends on investment securities		32		32			56			97			207
Interest on federal funds sold		—		—			—			—			7
Other interest income		22		40			2			72			122
Total interest and dividend income		5,983		6,310			6,908			19,480			21,441
Interest expense
Interest on deposits		1,240		1,421			1,385			4,178			4,804
Interest on Federal Home Loan Bank borrowings		358		354			428			1,069			1,270
Interest on subordinated debt		75		75			71			226			212
Interest on other borrowings		78		77			78			232			231
Total interest expense		1,751		1,927			1,962			5,705			6,517
Net interest income		4,232		4,383			4,946			13,775			14,924
Provision for loan losses		—		(1,713	)		—			(2,559	)		8,464
Net interest income after provision for loan losses		4,232		6,096			4,946			16,334			6,459
Non-interest income
Mortgage brokerage referral fees		35		22			14			69			28
Loan application, inspection and processing fees		29		16			21			59			61
Deposit fees and service charges		215		227			207			671			736
Gain on sale of loans		31		—			—			295			80
Gain on sale of investment securities		924		—			780			916			780
Earnings on cash surrender value of life insurance		122		120			170			385			491
Other income		101		70			90			267			398
Total non-interest income		1,457		455			1,282			2,662			2,574
Non-interest expense
Salaries and benefits		2,620		2,725			2,840			8,237			9,244
Occupancy and equipment expense		1,127		1,135			1,039			3,386			3,685
Data processing		379		346			316			1,070			980
Professi ional and other outside services		510		854			546			1,979			2,662
Advertising and promotional expenses		15		8			92			41			522
Loan administration and processing expenses		35		46			88			89			174
Regulatory assessments		439		462			432			1,311			1,671
Insurance expense		109		109			227			387			687
Other real estate operations		22		16			(26	)		(111	)		1,019
Material and communications		106		133			163			370			527
Restructuring charges and asset disposals		8		127			—			503			2,986
Other operating expenses		301		245			256			825			779
Total non-interest expenses		5,671		6,206			5,973			18,087			24,936
Income (loss) before income taxes		18		345			255			909			(15,903	)
Provision for income taxes		—		—			—			—			—
Net income (loss)	$	18	$	345		$	255		$	909		$	(15,903	)
Basic and diluted income (loss) per share		0.00	$	0.01		$	0.01		$	0.02		$	(0.41	)

PNBK 3Q12 Results

November 29, 2012

(Dollars in thousands, except per share data) (Unaudited)	Sep. 30, 2012			Jun. 30, 2012			Sep. 30, 2011
Assets
Cash and due from banks	$	43,831		$	62,177		$	39,982
Federal funds sold		—			—			—
Short-term investments		710			710			3,206
Total cash and cash equivalents		44,541			62,887			43,188
Securities-available for sale		18,315			56,343			88,529
Other investments		3,500			3,500			3,500
FRB & FHLB stock		6,088			6,063			6,215
Total securities		27,903			65,906			98,244
Gross loans		499,801			490,532			464,291
Allowance for loan losses		(6,692	)		(6,674	)		(11,158	)
Net loans		493,109			483,858			453,133
Real estate loans held for sale		1,950			—			250
Accrued interest and dividend receivable		1,979			2,289			2,321
Premise and equipment, net		4,656			4,713			4,181
Cash surrender value of life insurance		21,369			21,248			20,840
Other real estate owned		1,252			1,518			4,732
Deferred tax asset, net (1)		—			—			—
Other assets		18,589			1,848			1,538
Total assets	$	615,348		$	644,267		$	628,427
Liabilities and Shareholders’ Equity
Deposits
Non interest bearing deposits	$	59,309		$	71,722		$	56,699
Interest bearing deposits		424,644			450,373			451,024
		483,953			522,095			507,723
FHLB advances and repurchase agreements		67,000			57,000			57,000
Subordinated debt		8,248			8,248			8,248
Accrued expenses and other liabilities		5,015			5,165			4,786
Total Liabilities		564,216			592,508			577,757
Common stock		385			385			384
Treasury stock		(160	)		(160	)		(160	)
Additional paid-in capital		105,285			105,183			105,050
Accumulated deficit		(53,950	)		(53,968	)		(55,302	)
Accumulated other comprehensive income		(428	)		319			698
Total shareholders’ equity		51,132			51,759			50,670
Total liabilities and shareholders’ equity	$	615,348		$	644,267		$	628,427

(1) Includes the deferred tax asset and a full valuation allowance of $13.7 million, $ 13.5 million and $ 16.1 million, respectively.

PNBK 3Q12 Results

November 29, 2012

Financial Ratios and Other Data

(Dollars in thousands, except per share data) (Unaudited)	Sep. 30, 2012			Jun. 30, 2012			Sep. 30, 2011
Asset Quality:
Nonaccrual loans	$	30,020		$	17,452		$	21,776
Other real estate owned		1,252			1,518			4,732
Total nonperforming assets	$	31,272		$	18,970		$	26,508
Nonaccrual loans / portfolio loans		6.01	%		3.56	%		4.69	%
Nonperforming assets / assets		5.08	%		2.94	%		4.22	%
Allowance for loan losses	$	6,692		$	6,674		$	11,158
Allowance for loan losses / portfolio loans		1.34	%		1.36	%		2.40	%
Allowance / nonaccrual loans		22.92	%		38.24	%		51.24	%
Gross loan charge-offs for the quarter	$	4		$	91		$	218
Gross loan recoveries for the quarter	$	22		$	17		$	16
Net loan charge-offs for the quarter	$	(18	)	$	74		$	202
Capital Data:
Book value per share (1)	$	1.33		$	1.35		$	1.32
Tangible book value per share (2)	$	1.33		$	1.35		$	1.32
Shares outstanding		38,467,073			38,467,073			38,362,727

(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.

Note: Transmitted on Business Wire on November 29, 2012 at 7:41 p.m. EST.