Patriot National Bancorp Inc. (PNBK), the parent of Patriot National Bank, Wednesday reported a loss for the second quarter of $7.2 million, compared with a loss of $1.4 million in the year-ago quarter. Loss per share for the quarter was $0.19 on 38.4 million shares, compared with a loss of $0.29 last year on 4.8 million shares.
Results for the quarter included more than $4.0 million of one-time restructuring charges and non-recurring expenses associated with new management's turnaround plan.
Michael Carrazza, chairman of the board, said," Our 180-day Recovery Plan was aimed at restoring health and stability to the organization and to reverse a negative earnings trend. The execution of this phase of the Plan is complete and all associated charges were recorded by the end of the second quarter, positioning Patriot to return to profitability."
Key highlights of the recovery plan included reducing non-performing assets, right-sizing the balance sheet, reducing cost of deposits, consolidating four branch locations, reducing expenses and redeploying excess liquidity into short-duration earnings assets.
Net interest income for the quarter decreased to $5.0 million from $5.9 million last year. Non-interest income increased 27 percent to $710,000 from $561,000 last year.
Non-interest expenses were $11.4 million for the quarter compared with $7.3 million in the second quarter a year ago.
Net interest margin for the quarter improved to 3.16 percent from 3.12 percent a year ago.
Loan loss provision in the quarter was $1.5 million compared to $512,000 in the second quarter a year ago.
Non-performing loans decreased 17.8 percent to $26.7 million or 5.8 percent of gross loans at the end of the quarter, compared with $103.9 million or 16.8 percent of gross loans, a year earlier.
Christopher Maher, president and chief executive officer, said," The quarter ended June 30, 2011 is the seventh consecutive quarter during which total non-performing assets declined."
Loan portfolio at the end of the quarter decreased to $452.0 million from $604.0 million a year ago. Total deposits decreased to $524.5 million from $715.2 million at June 30, 2010, attributed to Patriot's planned strategy to reduce rate sensitive deposits through a series of interest rate reductions, resulting in a lower cost of funds and improved spreads.
For comments and feedback contact: editorial@rttnews.com