Patriot National Bank Sells Assets and Consolidates Branches
Patriot National Bancorp announced the sale of nonperforming assets and the closure of four of its branches.
The Stamford, Conn.-based bank has entered into a contract to sell nonperforming loans and real estate to ES Ventures One LLC, a Delaware limited liability company, for $65 million.
“The sale of the majority of the bank’s nonperforming assets will allow Patriot to accelerate the bank’s business plan,” said Christopher Maher, president and CEO of Patriot National Bancorp. “Further, the reduction in nonperforming assets materially improves the risk profile of the balance sheet, decreases workout and OREO expenses, and allows us to reinvest $65 million into earning assets to improve net interest margin.”
The bank also has decided to consolidate four of its branches in Connecticut to reduce operating expenses. All customer accounts in these branches will be transferred to a nearby branch, with the closings expected to take place by June 30.
By eliminating these branches, the bank is expected to receive a pretax earnings charge of $3 million and an annualized expense reduction of $1.8 million.
“We are pleased to report on these restructuring achievements, which are key components of our post-closing recovery plan,” said Michael Carrazza, the chairman of the board of the company. “These activities strengthen Patriot’s competitive position and bring us closer to our goal of restored health and profitability.”