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Just over a month after announcing it was exploring a potential merger and other capital-raising options, a Connecticut-based bank disclosed Tuesday that it has been designated to be in “troubled condition” by its federal regulator.
Stamford-based Patriot National Bancorp Inc., the parent company of Patriot Bank, disclosed Tuesday in a U.S. Securities & Exchange Commission filing that it has entered into an agreement with the Office of the Comptroller of the Currency to take certain actions to shore up its financial position.
The $974.1 million-asset bank has also announced some recent leadership changes, including a new president, Steven Sugarman, who is the former CEO of Banc of California Inc. He started in his new role on Dec. 30.
The bank also named a permanent chief financial officer, David Finn, who has held the position on an interim basis since October. Finn was hired by the bank on August 5, 2024, as executive vice president and senior finance officer.
The effort, the bank said, would 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.
On Tuesday, Patriot National disclosed its new agreement with the OCC, which calls on the bank to take numerous measures, such as appointing a compliance committee of at least three members that must submit quarterly reports on the bank’s progress in complying with the OCC agreement.
It also requires the bank to:
There were numerous other terms and conditions in the OCC agreement.
The bank did not immediately respond to a request for comment Tuesday morning.
Patriot National reported a $30.3 million net loss through the first nine months of 2024, financial documents show.
The company, which trades on the Nasdaq, saw its stock price, as of 10 a.m., fall nearly 3% Tuesday morning to $1.75. Over the past 52 months, the bank’s stock price peaked at $4.70.
As of June 30, 2024, Patriot Bank was the 26th-largest bank in the state, based on deposit market share in Connecticut, according to Federal Deposit Insurance Corp. data.
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