Patriot National Bancorp, Inc. (“Patriot” or the “Bancorp”) (NASDAQ:PNBK), the parent company of Patriot Bank, N.A. (the “Bank”), and Prime Bank headquartered in Orange, CT (“Prime”) (PMHV:US) jointly announced the signing of a definitive merger agreement pursuant to which Patriot will acquire Prime. The acquisition will expand Patriot’s community banking presence and footprint in Southern Connecticut.
As of June 30, 2017, Prime had approximately $73 million in total assets, $55.8 million in deposits and $27.8 million in total loans.
Under the terms of the agreement Prime shareholders will receive aggregate cash consideration equal to 115% of Prime’s tangible book value as of the closing date. The acquisition will result in a new Patriot branch located in the Town of Orange, in New Haven County. The transaction is anticipated to close in the fourth quarter 2017 and is subject to customary regulatory approvals and Prime shareholder approval.
Patriot Chairman and CEO Michael Carrazza stated, “The acquisition of Prime Bank will support our operating goals of extending Patriot Bank’s footprint, building scale, and improving key operating metrics, all of which ultimately adds value for our shareholders and customers.”
Richard Muskus Jr., Patriot’s President, added, “The acquisition will enable Patriot Bank to expand its consumer and small business relationships, lending operations, and community presence, while offering Prime’s current customers a broader suite of products.”
In the second fiscal quarter of 2017, Patriot reported pre-tax income of $1.4 million and net income of $804 thousand, or $0.21 per diluted share. For the six months ended June 30, 2017, net income was $2.5 million or $0.65 per diluted share. In July 2017, Patriot announced the reinstatement of its dividend policy and declared its first quarterly dividend for shareholders since 2008.
Patriot anticipates that Prime’s branch staff will join Patriot to assist in a seamless transition and continue to help drive growth efforts and customer satisfaction.
Prime CEO Jasper J. Jaser stated, “We are pleased to announce this transaction, as we believe merging into Patriot meets the objectives of our shareholders, customers and employees. Our customers will benefit from increased services and expanded product and lending capabilities; our branch employees will be part of a larger organization and branch network, offering broader career opportunities.”
Paul Lutsky, Prime’s Vice President, added, “The merger will support Patriot’s growth strategies, allowing it to leverage its larger capital base and legal lending limits to provide broader lending solutions to Prime’s customers.”
Prime Bank shareholders will receive detailed information about the transaction in a proxy statement that will be sent to them in connection with a special shareholders’ meeting to approve the transaction.