8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________

Form 8-K _____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): July 29, 2021

PATRIOT NATIONAL BANCORP, INC. (Exact Name of Registrant as Specified in Charter)

(203) 252-5900 (Registrant's telephone number, including area code)

Not Applicable (Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

Section 7 Regulation FD

Item 7.01. Regulation FD Disclosure.

On July 29, 2021, Patriot National Bancorp, Inc. (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, regarding its earnings for the period ended June 30, 2021.

The information contained in this Current Report on Form 8-K (including the exhibit) is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Section 9 Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EdgarFiling

EXHIBIT 99.1

Patriot Reports Second Quarter 2021 Net Income of $1.0 Million

Deposits grow 11%

STAMFORD, Conn., July 29, 2021 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the “Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), today announced net income of $1.0 million, or $0.26 basic and diluted earnings per share for the quarter ended June 30, 2021, compared to a net loss of $1.3 million, or $0.32 basic and diluted loss per share reported in the second quarter of 2020. On a year-to-date basis, net income was $1.9 million, or $0.48 per fully diluted share, compared to a net loss of $2.4 million, or $0.60 fully diluted loss per share during the same year to date period in 2020.

The Bank continued to show improved net interest margins, core deposit growth, and lower operating expenses. The prepaid portfolio continues to be a low-cost funding source for the Bank and has increased substantially to $137.8 million as of June 30, 2021 from $50.0 million in July 2020. The portfolio growth provides a substantial improvement to the Bank’s net interest margin and overall funding costs. In addition, during the first half of 2021 the Bank recognized a gross payroll tax credit of $2.0 million under the Employee Retention Credit program of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Pre-tax income was $1.4 million and $2.6 million for the three months ended and six months ended June 30, 2021, respectively. Excluding the employee tax credit, pre-tax income was $257,000 and $587,000 for the three months and six months periods, respectively.

Since 2020, the Bank had provided payment deferrals on approximately $232.7 million of loans as permitted under the CARES Act. A significant percentage of those loans deferred have now resumed normal payments. Loans remaining on deferral in conjunction with the CARES Act declined to $21.3 million at June 30, 2021.

Patriot President & CEO Robert Russell stated: “The Bank’s focus on improving its funding sources, asset quality and loan growth continues to have a positive impact on the Bank’s financial condition. Key additions to staff and ongoing process improvements will contribute to continued advancement of our pursuit of performance. We are pleased with the progress that we have made so far even in what remains a challenging economic environment.”

Financial Results:

As of June 30, 2021, total assets increased to $963.1 million, as compared to $880.7 million at December 31, 2020. Net loans totaled $660.5 million versus $719.6 million as of December 31, 2020. Total deposits increased from $685.7 million at December 31, 2020 to $761.2 million at June 30, 2021.

The Bank has substantially improved its deposit and funding mix over the past year. During the past six months, brokered deposits declined by $28.5 million while growth in core funding of $40.5 million and prepaid deposits of $63.5 million combined to produce growth in total deposits of 11% or $75.5 million for the six-month period. Excluding the planned reduction of brokered deposits, total deposits increased $104.0 million during the first half of 2021.

Net interest income for the three months ended June 30, 2021, was $5.9 million, an increase of $251,000 or 4.4% from the comparable period in 2020. Net interest income for the six months ended June 30, 2021 was $12.1 million, an increase of $54,000 or 0.4% from the first half of 2020.

The Bank’s net interest margin showed strong improvement and was 2.90% for the six months ended June 30, 2021 compared with 2.59% for the comparable 2020 period. As economic activity continues to expand, loan balances are expected to grow, and coupled with reductions in funding costs, the Bank expects further improvements in net interest income.

The recovering economy, lower loan balances and lower pooled reserves resulted in no additions to the Bank’s allowance for loan and lease losses as compared to $1.7 million that was recognized in the first half of 2020. The majority of the provision in the first six-months of 2020 was primarily attributable to conditions and the uncertainty created by the COVID-19 pandemic. As of June 30, 2021, the allowance for loan losses was 1.54% of total loans, compared with 1.45% at December 31, 2020.

Non-interest income was $753,000 and $389,000 for the second quarter of 2021 and 2020, respectively. Non-interest income was $1.2 million and $810,000 for the six months ended June 30, 2021 and 2020, respectively. The increase was primarily attributable to an increase in gains on sales of SBA loans in 2021.

Non-interest expense was $5.3 million and $6.9 million for the second quarter of 2021 and 2020, respectively. Non-interest expense was $10.7 million and $14.3 million for the year-to-date 2021 and 2020 periods, respectively. The decrease in non-interest expense in the first half of 2021 was primarily driven by an Employee Retention Credit of $2.0 million under the Employee Retention Credit program of the CARES Act and a reduction of $368,000 in regulatory assessments expense.

For the first half of 2021, a provision for income taxes of $702,000 was recorded, compared to a benefit for income taxes of $805,000 for the first half of 2020.

As of June 30, 2021, shareholders’ equity was $65.9 million, compared with $63.2 million at December 31, 2020. Patriot’s book value per share rose to $16.69 at June 30, 2021, compared with $16.03 at December 31, 2020. The Bank’s capital ratios continue to be strong, maintaining its “well capitalized” regulatory status. As of June 30, 2021, the Bank’s Tier 1 leverage ratio was 10.10%, Tier 1 risk-based capital ratio was 12.04% and total risk-based capital ratio was 13.29%.

About the Company:

Patriot Bank is headquartered in Stamford and operates 9 branch locations: in Scarsdale, NY; and Darien, Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport, CT with Express Banking locations at Bridgeport/ Housatonic Community College, downtown New Haven and Trumbull at Westfield Mall. The Bank also maintains SBA lending offices in Stamford, Connecticut, Florida, Georgia, Ohio, along with a Rhode Island operations center.

Founded in 1994, and now celebrating its 27th year, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is the parent holding company of Patriot Bank N.A. (“Bank”), a nationally chartered bank headquartered in Stamford, CT. Patriot operates with full-service branches in Connecticut and New York and provides lending products and services nationally. Patriot’s mission is to serve its local community and nationwide customer base by providing a growing array of banking solutions to meet the needs of individuals and small businesses owners. Patriot places great value in the integrity of its people and how it conducts business. An emphasis on building strong client relationships and community involvement are cornerstones of our philosophy as we seek to maximize shareholder value.

“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 the Company’s interest earning assets and the interest paid on its interest bearing liabilities; (2) the timing of re-pricing of the Company’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 the Company 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 the Company to provide products and services which it is impracticable for the Company to provide; (7) the state of the economy and real estate values in the Company’s market areas, and the consequent effect on the quality of the Company’s loans; (8) demand for loans and deposits in our market area; (9) 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; (10) 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; (11) the application of generally accepted accounting principles, consistently applied; (12) the fact that one period of reported results may not be indicative of future periods; (13) 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 the Company’s other filings with the Securities and Exchange Commission (the “SEC”); (14) political, social, legal and economic instability, civil unrest, war, catastrophic events, acts of terrorism; (15) widespread outbreaks of infectious diseases, including the ongoing novel coronavirus (COVID-19) outbreak; (16) changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; (17) our ability to access cost-effective funding; (18) our ability to implement and change our business strategies; (19) changes in the quality or composition of our loan or investment portfolios; (20) technological changes that may be more difficult or expensive than expected; (21) our ability to manage market risk, credit risk and operational risk in the current economic environment; (22) our ability to enter new markets successfully and capitalize on growth opportunities; (23) changes in consumer spending, borrowing and savings habits; (24) our ability to retain key employees; and (25) our compensation expense associated with equity allocated or awarded to our employees.

All values are in US Dollars.