Patriot National Bancorp, Inc.

What they do

The company operates Patriot Bank, N.A., a national bank with eight branches in Connecticut and New York, serving customers through relationship-based banking, treasury management, institutional banking, and digital channels. It focuses on commercial real estate lending, high-net-worth and business lines of credit, and digital payments. Legacy business from before the March 2025 recapitalization is being reduced over time.

Revenue drivers

• Digital Payments income — Reported $2.788 million in Q1 2026, up from $1.758 million in Q1 2025, reflecting growth in the digital payments segment.
• Net interest income — Core bank earnings from loans and securities; Q1 2026 net interest income was $7.076 million, up from $3.954 million in Q1 2025.
• Deposit fees and service charges — Reported $306,000 in Q1 2026, down from $418,000 in Q1 2025, a smaller non-interest income source.

Recent performance

In Q1 2026 (three months ended March 31, 2026), the company reported a net loss before income taxes of $1.742 million, compared to $2.776 million loss in Q1 2025. Total assets were $1.177 billion at March 31, 2026, up from $1.088 billion at year-end 2025. Annual net income has been negative for three straight years: -$4.2M in 2023, -$39.9M in 2024, and -$12.7M in 2025. Diluted EPS improved from -$10.03 in 2024 to -$0.17 in 2025.

Strategy

Management is repositioning the bank to focus on entrepreneurs, digital payments clients, and underbanked borrowers, while exiting or curtailing non-core legacy activities. They have raised capital, restructured debt, and reconstituted senior management and the board. The strategy includes investments in operational, compliance, and reporting infrastructure to address OCC deficiencies and support safe and sound operations.

Risks

• Regulatory enforcement — The bank is subject to a Formal Agreement with the OCC; failure to satisfy its requirements could lead to additional enforcement actions, restrictions, or receivership.
• Remediation execution risk — Remediation efforts may not be completed on expected timelines or may be deemed unsatisfactory by the OCC, causing prolonged regulatory scrutiny.
• Credit risk in legacy portfolio — The bank holds legacy loans that may have higher credit risk; the allowance for credit losses was $7.779 million at March 31, 2026, up from $6.839 million at end-2025.
• Profitability and capital strain — The company has recorded net losses in 2023, 2024, and 2025, which may continue and pressure capital levels.

Outlook

Management expects the Formal Agreement to continue influencing priorities into 2026, including capital planning and remediation efforts. The strategic plan and capital plan were developed to address supervisory deficiencies while supporting operations. The Legacy Business is expected to shrink as a percentage of loans and deposits over time.