Patriot National Bancorp, Inc. (PNBK): history, ownership, mission, how it works & makes money

A Brief History of Patriot National Bancorp, Inc. (PNBK)

Foundation and Initial Development

Patriot National Bancorp, Inc. was established in 2006, primarily as a bank holding company for Patriot National Bank. Headquartered in Stamford, Connecticut, it aimed to provide personalized banking services to both retail and commercial customers.

Financial Growth and Expansion

As of December 31, 2022, the company reported total assets of approximately $273 million and total deposits of $229 million. The net income for the year was recorded at $1.8 million.

Public Offering and Market Presence

In 2015, Patriot National Bancorp, Inc. went public, trading on the OTC Markets under the symbol PNBK. The initial public offering (IPO) raised about $4 million.

Recent Financial Metrics

For the fiscal year ending December 31, 2022, Patriot National Bancorp reported return on average assets (ROAA) of 0.67% and return on average equity (ROAE) of 6.62%. Non-performing assets to total assets ratio was 1.19%.

Revenue Composition

The bank's revenue streams are diversified across multiple categories, primarily comprising:

• Interest income: $11 million
• Non-interest income: $2.5 million
• Loan growth: 8% year-over-year

Operational Challenges and Responses

Throughout its history, Patriot National Bancorp faced challenges including economic downturns and the competitive banking landscape. The bank focused on enhancing customer service and expanding its digital banking capabilities.

Table of Key Financial Metrics

Future Outlook

The management of Patriot National Bancorp continues to focus on strategic growth while ensuring stability. The commitment to enhancing the customer experience and expanding product offerings remains a primary objective in the evolving financial landscape.

A Who Owns Patriot National Bancorp, Inc. (PNBK)

Ownership Structure

Patriot National Bancorp, Inc. (PNBK) is publicly traded, with a diversified ownership structure that includes institutional investors, individual shareholders, and insiders.

Institutional Ownership

As of the latest reports, institutional ownership stands at approximately 38% of the total shares outstanding.

Insider Ownership

Insider ownership comprises a smaller segment of PNBK, totaling around 12% of the shares. Key insiders include:

Public Float

The remaining public float amounts to approximately 50% of the outstanding shares, indicating a healthy distribution among retail investors.

Share Price Performance

As of October 2023, PNBK shares are trading at approximately $12.50 per share, with a year-to-date return of 15%.

Dividend Policy

PNBK has a consistent dividend payment history, with a current annual dividend yield of 3% based on the most recent quarterly payment of $0.37 per share.

Market Capitalization

The market capitalization of Patriot National Bancorp, Inc. is estimated at approximately $150 million.

Recent Financial Highlights

For the fiscal year ending 2022, PNBK reported the following financial metrics:

Summary of Key Owners

• Total Institutional Ownership: 38%
• Total Insider Ownership: 12%
• Public Float: 50%
• Current Share Price: $12.50
• Market Capitalization: $150 million

Patriot National Bancorp, Inc. (PNBK) Mission Statement

Core Values

Patriot National Bancorp, Inc. operates on the principle of providing exceptional customer service while promoting financial inclusion. Their core values include:

• Integrity
• Customer Focus
• Community Engagement
• Innovation

Vision Statement

The vision of Patriot National Bancorp is to be recognized as the leading community bank in the markets served, driving economic growth and supporting local businesses.

Financial Performance

As of Q3 2023, Patriot National Bancorp reported the following financial highlights:

Community Commitment

Patriot National Bancorp is committed to enhancing the quality of life in the communities it serves through various initiatives:

• Supporting local charities and events
• Offering financial literacy programs
• Investing in small business development

Strategic Goals

Patriot National Bancorp’s strategic goals include:

• Expanding Market Presence by opening new branches
• Enhancing Digital Banking Services
• Improving Customer Experience through technology

Customer Experience Strategy

The bank prioritizes customer experience through:

Regulatory Compliance

Patriot National Bancorp adheres to all regulatory requirements as set forth by

• The Office of the Comptroller of the Currency (OCC)
• The Federal Deposit Insurance Corporation (FDIC)
• The Consumer Financial Protection Bureau (CFPB)

Financial Sustainability

The bank emphasizes financial sustainability through effective risk management:

• Maintaining a loan-to-deposit ratio of approximately 80%
• Implementing robust compliance practices
• Supporting diversified investment strategies

Investment in Technology

Patriot National Bancorp is investing in technology to enhance operational efficiency:

Conclusion

By aligning its mission statement with its operational strategies, Patriot National Bancorp aims to remain a pillar of support for its customers and communities.

How Patriot National Bancorp, Inc. (PNBK) Works

Business Model

Patriot National Bancorp, Inc. operates primarily as a bank holding company for Patriot National Bank, which provides various financial services to individuals and businesses.

Financial Performance

As of the latest quarterly report for Q3 2023, Patriot National Bancorp reported the following financial metrics:

Products and Services

Patriot National Bancorp offers a variety of products, including:

• Commercial banking services
• Residential mortgages
• Consumer loans
• Business banking services
• Cash management solutions
• Online and mobile banking

Market Presence

Patriot National Bank primarily serves the Connecticut market, focusing on small to medium-sized businesses and individual customers. The bank has several branches strategically located in:

• Stamford, CT
• Bridgeport, CT
• Fairfield, CT
• Norwalk, CT

Regulatory Framework

As a registered bank holding company, Patriot National Bancorp is subject to regulation by the Federal Reserve and the Connecticut Department of Banking. Compliance with the Dodd-Frank Act and the Bank Secrecy Act is mandatory.

Recent Developments

In 2023, Patriot National Bancorp successfully launched a new digital banking platform aimed at improving customer experience. This initiative is expected to enhance customer engagement and increase transaction volume.

Risk Management

Patriot National Bancorp employs a robust risk management framework to identify, assess, and mitigate risks. Key risks include credit risk, operational risk, and market risk.

Investment and Growth Strategies

The company aims to expand its footprint in Connecticut and surrounding areas through strategic partnerships and potential acquisitions. Investment in technology and infrastructure is also a priority to enhance operational efficiency.

Financial Ratios

As of Q3 2023, the financial ratios for Patriot National Bancorp are as follows:

Community Engagement

Patriot National Bancorp is actively involved in community initiatives, supporting local charities and providing financial literacy programs.

How Patriot National Bancorp, Inc. (PNBK) Makes Money

Overview of Revenue Streams

Patriot National Bancorp, Inc. (PNBK) primarily generates revenue through several key segments:

• Interest income from loans
• Fee-based income from various banking services
• Investment income from securities
• Non-interest income from ancillary services

Interest Income from Loans

Interest income is a significant portion of PNBK's revenue. As of the latest financial report, PNBK reported a total loan portfolio of $142 million. The company’s average interest rate on loans stands at approximately 4.25%.

Fee-Based Income

PNBK earns fees from various banking services including, but not limited to, account maintenance fees, transaction fees, and service charges. In the most recent fiscal year, fee-based income amounted to $1.2 million, reflecting a year-over-year increase of 8%.

Investment Income

Investment income is derived from securities held in the bank's investment portfolio. As of the last reporting period, PNBK's investment portfolio was valued at $45 million, generating an annual return of approximately 3.5%, which translates to an investment income of about $1.575 million.

Non-Interest Income

Non-interest income includes revenue from ATM fees, wire transfers, and other ancillary services. In the recent year, PNBK reported non-interest income of $600,000.

Financial Performance Summary

Net Interest Margin

The net interest margin (NIM) is a critical indicator of PNBK’s profitability. For the latest fiscal year, PNBK’s NIM stood at 3.2%, which is consistent with industry averages.

Cost Management

Effective cost management plays a vital role in profitability. PNBK reported non-interest expenses totaling $4.5 million. This represents an efficiency ratio of 65%, indicating sound management of operating expenses.

Conclusion of Financial Metrics

In summary, PNBK's business model is fundamentally structured around maximizing interest income through its robust loan portfolio while efficiently managing costs to enhance profitability. The company’s ability to grow its fee-based and investment income streams adds further resilience to its overall financial performance.