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December 11, 2024

CT bank says it's exploring merger, other capital-raising options

Contributed Patriot National Bancorp is listed on the NASDAQ.
By Greg Bordonaro

A Connecticut-based bank said it is exploring a potential merger and other possibilities to raise capital. 

Stamford-based Patriot National Bancorp Inc., the parent company of Patriot Bank, disclosed Wednesday in a U.S. Securities & Exchange Commission filing that it has “launched an evaluation process to explore capital markets and strategic initiatives with the goal of maximizing shareholder value.”

The effort, the bank said, will evaluate potential opportunities, “including capital raise, strategic partnership, sale, and/or merger and acquisition interest.”

Patriot National said it has been “seeking targeted strategic initiatives” since its 2022 merger agreement with American Challenger Development Corp. was terminated after both sides said they couldn’t satisfy closing conditions of the deal. 

The bank said it has hired investment banking firm Performance Trust Capital Partners LLC to lead the evaluation. 

“No decision has been made as to whether the company will engage in a transaction or transactions resulting from its consideration of strategic initiatives, or the scope of such a transaction, and no assurance can be given that any transaction or transactions will occur or, if undertaken, the form, terms or timing of such a transaction,” the bank said. 

While the evaluation process is ongoing, Patriot National said it will continue to focus on its businesses that generate non-interest income. 

“However, the company expects a capital infusion, or strategic partnering, would more efficiently facilitate conditions for the bank’s return to asset and loan growth,” according to the filing. 

Patriot National reported $974.1 million in assets at the end of the third quarter of 2024, and a $30.3 million net loss through the first nine months of the year, financial documents show.

The company, which trades on the Nasdaq, saw its stock price, as of 11:27 a.m., fall more than 7% Wednesday morning to $2.33. Over the past 52 months, the bank’s stock price peaked at $5.11.
 

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