STAMFORD, CT and LOS ANGELES, CA – February 6, 2018 (GLOBE NEWSWIRE) -
Patriot National Bancorp, Inc. (NASDAQ:PNBK), the parent holding company of Patriot Bank,
N.A. (“Patriot”), and Hana Small Business Lending, Inc. (“Hana SBL”), a wholly-owned
subsidiary of Hana Financial, Inc. (“Hana Financial”) announce the signing of a definitive
purchase agreement pursuant to which Patriot will acquire Hana SBL’s SBA Lending business.
We expect that upon the closing of the transaction Patriot will become one of the nation’s
leading SBA 7(a) lenders.
“Hana SBL has built a strong reputation with a highly regarded and experienced team”,
commented Michael Carrazza, Patriot’s Chairman and CEO. “The integration of Hana SBL into
Patriot’s growing specialty finance category delivers impactful market presence, product
diversification and significant earnings accretion.”
Hana SBL is a fully integrated national SBA origination and servicing platform. Its well respected team has originated nearly $1 billion of SBA 7(a) loans since its inception and has
achieved strong and consistent performance. “We are proud of the team we built and the steady results they continue to deliver”, stated Sunnie S. Kim, Hana Financial’s President and CEO. “It is a highly complementary fit for the team to be integrated into Patriot’s growing operations, where they can be further supported.” In 2017, Hana SBL was the third most active non-bank SBA lender in the nation, and one of the top 35 most active of all SBA lenders (among over 3,000 SBA lenders nationwide) as measured by SBA 7(a) approved face value of SBA 7(a) loans it originated and SBA approved guaranteed dollars attributable to those loans. Upon the closing of the transaction, the group will become part of Patriot’s SBA team, and will be rebranded under Patriot’s name.
In 2017, Patriot became an approved SBA lender, with the intention to invest in and make SBA
a significant product line. The acquired expertise and critical mass of Hana SBL accelerates
Patriot’s strategic plans, while simultaneously diversifying its asset classes and geographical
exposure. The existing team will continue to operate from its base in Los Angeles, CA and
through its origination offices across the United States. It will be complemented by Patriot’s
growing SBA unit, which will oversee and service eastern U.S. markets and be based from
Patriot’s Stamford, CT office complex.
The transaction includes the purchase of approximately $120 million of SBA 7(a) loans and
servicing rights relating to a pool of $370 million in loans, and the assumption of two loan
securitization vehicles, currently rated “AA+” (Hana SBL Loan Trust 2014) and “A-” (Hana
SBL Loan Trust 2016) by Standard and Poor’s. Total cash consideration is approximately $83
million with the assumption of approximately $41 million of liabilities. The transaction is
subject to the satisfactory completion of certain due diligence requirements, purchase price
adjustments at closing and the receipt of required governmental and regulatory approvals.
Advisors to Patriot on the transaction include Blank Rome LLP; Skadden, Arps, Slate, Meagher
& Flom LLP; and Evercore. Advisors to Hana Financial include Houlihan Lokey as financial
advisor, and Jeffer, Mangels, Butler & Mitchell LLP and Starfield & Smith, P.C. as legal
counsels.
About Patriot National Bancorp, Inc.
Patriot National Bancorp, Inc. is the holding company of Patriot Bank N.A., a nationally
charted commercial bank, headquartered in Stamford, Connecticut. It operates with 11 full
service branches and interactive kiosk locations in Connecticut and New York. Since 1994,
Patriot has been serving a growing regional customer base throughout the northeast. While
dedication to the communities we represent is central to our mission, Patriot competes in
multiple geographies and business sectors supported by its broad technological platform,
commercial/consumer loan and deposit product base, and its team of highly seasoned bankers.
For more information visit www.bankpatriot.com.