Patriot Natl Stock Price, News & Analysis

Patriot National Bancorp (NASDAQ: PNBK) reported a net income of $1.3 million for Q2 2022, translating to $0.32 per share, an increase from $800,000, or $0.20 per share in Q1 2022. Total assets rose to $1.0 billion, with loan and deposit growth of 16.2% and 13.1% respectively. Net interest income grew by 30% year-over-year to $7.7 million, supported by improved net interest margins of 3.17%. The company faced a provision for loan losses of $275,000, and total shareholders' equity decreased to $59.8 million, impacted by declining market values amid rising interest rates.

On July 20, 2022, Patriot National Bancorp announced the mutual termination of its Merger Agreement with American Challenger Development Corp. Initially dated November 14, 2021, the agreement was terminated due to unmet closing conditions. While both parties are in discussions for a modified transaction, the outcome remains uncertain. The Boards of Directors for both companies unanimously approved the decision to terminate, releasing each other from any claims related to the agreement.

On July 6, 2022, Patriot National Bancorp announced the conditional approval from the Office of the Comptroller of the Currency (OCC) regarding its merger with American Challenger Development Corp. This approval is crucial for the transactions outlined in the Merger Agreement dated November 14, 2021. The OCC approval will expire if the transactions are not completed within six months unless extended. The merger aims to create a major digital-first bank, pending shareholder approval and other conditions, alongside a planned capital raise of at least $875 million.

Patriot National Bancorp (NASDAQ: PNBK) announced an extension of the maturity for its $12 million senior notes, originally due on June 30, 2022, now set for December 31, 2022. The interest will rise from 7.0% to 7.25% starting July 1, 2022, with a potential increase to 7.50% if the notes remain outstanding past September 30, 2022. This extension is aimed at facilitating the merger with American Challenger Development Corp., pending regulatory and shareholder approvals. The completion of this merger remains essential for Patriot's strategic growth.

Patriot National Bancorp (NASDAQ: PNBK) reported a net income of $800,000, or $0.20 per share, for Q1 2022, down from $854,000, or $0.22 per share, in Q1 2021. The first quarter of 2021 benefited from an employee retention tax credit. Key highlights include a 4.6% loan growth and a 4.2% deposit increase. Net interest income rose to $6.8 million, with a net interest margin of 3.06%. Total assets reached $975.5 million. The merger with American Challenger Development Corp is nearing completion, pending regulatory approvals.

Patriot National Bancorp (NASDAQ: PNBK) reported a net income of $1.9 million for Q4 2021, compared to a net loss of $1.4 million in Q4 2020. For the full year, net income reached $5.1 million versus a loss of $3.8 million in 2020. The Bank benefited from $2.9 million in payroll tax credits from the CARES Act but incurred $1.85 million in merger-related expenses with American Challenger. Total assets grew to $948.5 million, with loans increasing to $729.6 million. The net interest margin improved to 3.05%, and prepaid debit card deposits surged to $150.4 million, enhancing funding costs.

Patriot National Bancorp (NASDAQ: PNBK) has extended the maturity of $12 million in senior notes originally due on December 22, 2021, until June 30, 2022. This extension maintains existing terms, allowing repayment before the new maturity date. The action aims to facilitate the company's plan to raise $80 million in subordinated notes for recapitalization and a proposed reverse subsidiary merger with American Challenger Development Corp., announced on November 15, 2021.

Kroll Bond Ratings Agency has assigned a preliminary deposit and issuer rating of BBB and a preferred stock rating of BBB- to the digital-first national bank being formed by the merger of American Challenger Development Corp. and Patriot National Bancorp (NASDAQ: PNBK). This merger is expected to create significant overcapitalization, aided by common equity contributions. The ratings are contingent on successful merger completion and recapitalization efforts. Chairman Michael Carrazza expressed optimism regarding the merger, stating it is an exciting, industry-disrupting endeavor.

Patriot National Bancorp has announced a definitive agreement to acquire American Challenger Development Corp in a strategic merger expected to create a digital-first national bank. The total transaction value is approximately $119 million, with American Challenger shareholders receiving shares of Patriot common stock. Additionally, Patriot has secured $540 million in a private placement, aiming for a total capital raise of at least $890 million. The merger and recapitalization are designed to enhance operational efficiencies and customer experience, with the deal anticipated to close in Q1 2022.