The parent company of Patriot Bank continues to discuss a possible deal with American Challenger Development Corp. weeks after the two Stamford-based companies called off their merger.
Patriot National Bancorp said in its second quarter earnings statement today that the companies “remain in active discussions regarding the potential for a modified transaction.”
The merger, initially announced last November, was called off in July after the two companies agreed that closing conditions could not be met.
Patriot Bank did see its second quarter earnings increase year-over-year.
“Aside from our focus on meaningful strategic activities, Patriot’s organic platform and financial performance continues to grow and improve,” Patriot President and CEO Robert Russell said in the statement.
Patriot Bank had second quarter net income of $1.3 million, or $0.32 basic and diluted earnings per share, compared to net income of $1 million, or $0.26 basic and diluted earnings per share, in the second quarter of 2021. The bank’s first quarter 2022 net income was $800,000, or $0.20 per basic and diluted earnings per share.
The bank reached $1 billion in total assets in the second quarter, up $100.7 million from the end of 2021. The bank attributed the increase primarily to loan growth. The bank’s net loans increased from $729.6 million on Dec. 31 to $849.2 million on June 30.
Total deposits were $846.8 million at the end of the second quarter, up from $748.6 million at the end of 2021.
The bank’s prepaid debit card has tripled in size, the bank said, from $50 million in July 2020 to $166.7 million on June 30. The bank said the portfolio growth improves its net interest margin and overall funding costs.
Patriot Bank’s net interest margin was 3.17 percent for the first six months of the year compared to 2.90 percent in the first six months of 2021.
The bank’s second quarter net interest income was $7.7 million, up $1.8 million, or 30 percent, from the second quarter of 2021. Net interest income for the six months ending June 30 was $14.4 million, up 19.7 percent from the same period last year. The bank attributed these increases to loan growth over the past year.
“The Bank continued its path of strong financial performance and quality asset generation during the second quarter of 2022,” Russell said. He added: “The Bank remains focused on its balance sheet and improvement in nonperforming assets both of which had positive contributions during the quarter.”