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PNBK Holdings LLC Acquires Controlling Interest in Patriot National Bancorp, Inc.

^{Published on 2010-10-15 14:11:02 - Market Wire}
 

STAMFORD, Conn.--([ BUSINESS WIRE ])--Patriot National Bancorp, Inc. (NASDAQ: PNBK) (the aCompanya) today announced that it has completed its previously announced recapitalization transaction with PNBK Holdings LLC (aPNBK Holdingsa), an entity controlled by operating financier, Michael Carrazza. Patriot National Bank (aPatriota), the Companya™s principal operating subsidiary, is a commercial bank headquartered in Stamford, Connecticut with assets of $817 million as of June 30, 2010 and a total of 19 branch locations throughout southern Connecticut, Westchester and New York.

"Our objective is to strengthen Patriota™s banking franchise and ensure that Patriot delivers optimum service to its customers, while increasing shareholder value."

PNBK Holdings acquired 33.6 million newly issued shares of common stock of the Company, representing approximately 88% of the Companya™s outstanding common stock on a fully diluted basis.

aWith the banka™s return to awell-capitalizeda status, Patriot is positioned to return to profitability and to restore focus on its long-term growth strategy,a said Mr. Carrazza, who was named Chairman of the Company and Patriot. aOur objective is to strengthen Patriota™s banking franchise and ensure that Patriot delivers optimum service to its customers, while increasing shareholder value.a

In connection with the transaction, Christopher Maher, a local community banking veteran with more than 20 years of experience, was appointed to the Companya™s and Patriota™s Board of Directors and to serve as the Companya™s and Patriota™s new President and Chief Executive Officer.

aI am thrilled to be joining the Patriot team,a said Mr. Maher. aPatriot is a great franchise with terrific employees, and I look forward to deploying the banka™s new capital to further serve its customers and communities.a

In connection with the closing, the Company and Patriot appointed a team of accomplished industry executives to serve as new members of their respective boards of directors, harnessing a wealth of community banking, commercial real estate, internal controls and audit experience. Newly appointed directors include:

• Edward N. Constantino, a former Audit Partner of KPMG LLP, with over 40 years of audit, advisory and tax experience.
• Kenneth T. Nielson, former Chairman, Chief Executive Officer and President of Hudson United Bank and Hudson United Bancorp, serving Hudson for 23 years.
• Emile Van den Bol, former Managing Director of the Commercial Real Estate Group of Deutsche Bank Securities, Inc.
• Michael J. Weinbaum, Vice President of Real Estate Operations for United Capital Corp. (NYSE Amex: AFP) for more than 20 years.

Advisors to PNBK Holdings on the transaction included Skadden, Arps, Slate, Meagher & Flom LLP, Robinson & Cole LLP, and KPMG LLP.

Patriot National Bancorp, Inc.

Patriot National Bancorp, Inc. (NASDAQ: PNBK), operates as the holding company for Patriot National Bank, which provides consumer and commercial banking services to individuals, small and medium-sized businesses and professionals. Its deposit products include checking accounts, NOW accounts, money market accounts, time certificates of deposit, savings accounts, individual retirement accounts and health savings accounts. The bank's lending portfolio comprises commercial mortgage and construction loans; working capital loans; equipment loans; real estate loans, including home mortgages, home improvement loans, bridge loans, and home equity lines of credit; other personal loans, such as lines of credit, installment loans, and credit cards; commercial loans, including secured and unsecured loans to service companies, real estate developers, manufacturers, restaurants, wholesalers, retailers, and professionals; and residential mortgage loans. Currently, the bank operates 19 branches in Darien, Fairfield, Greenwich, Milford, Norwalk, Old Greenwich, Southport, Stamford, Stratford, Trumbull, Westport and Wilton, CT; Bedford and Scarsdale, New York and Manhattana™s West Side. Patriot National Bank was founded in 1994 and the Company was founded in 1999.

Statements in this press release that are not statements of historical or current fact constitute aforward-looking statementsa within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition, we set forth certain risks in our reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and Quarterly Reports on 10-Q filed thereafter, which could cause actual results to differ materially from those projected. We undertake no obligation to update such forward-looking statements except as required by law.