Courtesy photo / File
Stamford-based Patriot Bank continues to see a positive impact on its financial results from a pre-paid debit card program the bank acquired nearly two years ago.
Patriot Bank had first-quarter net income of $800,000, or $0.20 basic and diluted earnings per share, compared to a net income of $854,000, or $0.22 basic and diluted earnings per share, in the first quarter of 2021. The bank’s fourth-quarter net income was $1.89 million, or $0.48 basic and diluted earnings per share.
The bank said in its earnings statement that financial results for the first quarter of 2021 had included the recognition of an employee retention tax credit authorized by the CARES Act of $843,000.
“The Bank experienced strong earnings and asset generation in the first quarter of 2022,” Patriot President and CEO Robert Russell said in the earnings statement. “Additionally, margin expansion and continued improvement in nonperforming assets contributed to the outcome for the quarter. The Bank continues to focus on solid asset generation and its cost of funds as we navigate the current economic cycle.”
The bank said it had first-quarter loan growth of 4.6 percent and deposit growth of 4.2 percent. The net interest margin was 3.06 percent in the first quarter compared to 2.99 percent in the first quarter of 2021.
The prepaid debit card program that the bank acquired in 2020 has helped improve Patriot’s net interest margin as it provides a low-cost funding source, the bank said. The portfolio increased to $146.8 million as of March 31, up from $50 million in July 2020.
Patriot’s first quarter noninterest income was $814,000 compared to $442,000 in the first quarter of 2021. In addition to higher noninterest income from the prepaid card program, the bank attributed the increase to gains from sales of SBA loans of $208,000.
The bank’s total assets increased to $975.5 million, up from $948.5 million at the end of 2021. The bank said assets increased primarily because of net loans, which grew from $729.6 million on Dec. 31 to $763.6 million at the end of the first quarter.
Total deposits increased from $748.6 million in the fourth quarter to $779.8 million in the first quarter.
Patriot’s parent company, Patriot National Bancorp, announced in November that it had agreed to acquire American Challenger Development Corp. Michael Carrazza, Patriot’s chairman, said in the statement that the deal still needed regulatory and shareholder approval.
“Patriot is on a strong earnings trajectory as exhibited by the demonstrable improvement in business line growth and pre-tax income,” Carrazza said. “The financial performance and internal preparation are supportive toward the pending merger transaction with American Challenger Development Corp, which is nearing the final stages of its process.”
