Patriot Bank secures over $50 million in private funding

STAMFORD, Conn. - Patriot National Bancorp, Inc. (NASDAQ: PNBK), parent company of Patriot Bank NA, has successfully completed a private placement, raising over $50 million through the issuance of common and non-voting preferred stock to various accredited investors. The infusion of capital is intended to reinforce the equity capital and overall financial stability of the institution, which currently maintains a market capitalization of $2.4 billion. According to InvestingPro data, the bank’s financial health score is rated as "Fair," suggesting room for improvement in its capital structure.

President Steven Sugarman, who has taken on a long-term commitment with the bank, expressed his gratitude for the strong investor interest in Patriot Bank and its management. Sugarman, who has a history of leadership roles in the financial industry, including as Founder and CEO of The Change Company CDFI, LLC, is poised to guide the bank in its continued growth and service to the tri-state area’s entrepreneurs, business leaders, and investors. The bank has demonstrated strong financial performance, with InvestingPro analysis showing significant revenue growth of 289% over the last twelve months and positive earnings expectations for the coming year.

The announcement also marks the departure of CEO David Lowery, who has been commended for his leadership during the recapitalization process. Lowery will remain in his role until April 15, 2025, to facilitate a smooth transition.

Michael Carrazza, Chairman of the Board, noted that the successful capital raise represents a positive turning point for Patriot, enabling the bank to capitalize on market opportunities. The private placement was spearheaded by Sugarman and co-led by affiliates of FlyHouse Management, LLC, with Performance Trust Capital Partners, LLC acting as the strategic advisor and placement agent.

The securities offered in this private placement have not been registered under the Securities Act of 1933 and are subject to specific conditions for sale in the U.S. This press release is not an offer to sell or a solicitation of an offer to buy any securities.

This news is based on a press release statement from Patriot National Bancorp, Inc. For comprehensive analysis and additional insights about Patriot National Bancorp, including detailed financial metrics and growth projections, investors can access the full Pro Research Report available on InvestingPro, which provides in-depth analysis of over 1,400 US stocks.

In other recent news, Banc of California reported its fourth-quarter 2024 financial results, revealing an earnings per share (EPS) of $0.28, surpassing the forecasted $0.23. However, the bank’s revenue fell short, coming in at $264.27 million compared to the expected $272.7 million. In a move to strengthen its position, Banc of California recently acquired PacWest Bancorp, adding specialty businesses to its portfolio, which could enhance its growth profile. Analyst firm Raymond James reiterated an Outperform rating for Banc of California, maintaining a price target of $18.00, while highlighting potential capital optimization opportunities. Meanwhile, JPMorgan initiated coverage with a Neutral rating and set the same price target, acknowledging the bank’s asset growth but noting a lower-than-expected return on average tangible equity capital (ROATEC) for the fourth quarter of 2025. The bank’s management has paused restructuring its held-to-maturity assets, focusing instead on share repurchases, which could boost earnings per share and return on average tangible common equity. Banc of California is optimistic about economic conditions and plans to grow deposits and enhance its digital capabilities in 2025. Despite the revenue miss, these strategic developments indicate a proactive approach to future growth.

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