STAMFORD, Conn., Oct. 15, 2014 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (Nasdaq:PNBK) announced today the reversal of a significant portion of its deferred tax asset ("DTA") valuation allowance. The reversal results in the recognition of a one-time tax benefit in the third quarter of 2014 of approximately $16.6 million. As a result, net income for the third quarter of 2014 will be increased by approximately $16.6 million, or $.42 per share. The DTA valuation allowance recovery is the result of several consecutive quarters of profitability and improving credit quality. The DTA will be used in future periods to reduce income tax payments.
"The reversal of the valuation allowance is a direct result of our profitability and earnings growth," said Michael Carrazza, Patriot's Chairman. "The reversal of the valuation allowance, along with the recent termination of the Formal Agreement by the Office of the Comptroller of the Currency, are significant accomplishments that will enhance Patriot's capital and profitability, and allow Patriot to proceed with its strategic growth plans."
About the Company
Patriot National Bancorp, Inc. operates as the holding company for Patriot National Bank, which provides commercial and consumer banking services. The Company's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York. Currently, the bank operates 10 branches (Darien, Fairfield, Greenwich, Milford, Norwalk, Stamford, Trumbull, and Westport, CT; and in Bedford and Scarsdale, New York). Patriot National Bank was founded in 1994 and the Bancorp was founded in 1999. Both are headquartered in Stamford, Connecticut.
"Safe Harbor" Statement Under Private Securities Litigation Reform Act of 1995
Certain statements contained in Bancorp's public statements, including this one, may be forward looking and subject to a variety of risks and uncertainties. These factors include, but are not limited to, (1) changes in prevailing interest rates which would affect the interest earned on Bancorp's interest earning assets and the interest paid on its interest bearing liabilities, (2) the timing of repricing of Bancorp's interest earning assets and interest bearing liabilities, (3) the effect of changes in governmental monetary policy, (4) the effect of changes in regulations applicable to Bancorp and the Bank and the conduct of its business, (5) changes in competition among financial service companies, including possible further encroachment of non-banks on services traditionally provided by banks, (6) the ability of competitors that are larger than Bancorp to provide products and services which it is impracticable for Bancorp to provide, (7) the state of the economy and real estate values in Bancorp's market areas, and the consequent effect on the quality of Bancorp's loans, (8) recent governmental initiatives that are expected to have a profound effect on the financial services industry and could dramatically change the competitive environment of the Company, (9) other legislative or regulatory changes, including those related to residential mortgages, changes in accounting standards, and Federal Deposit Insurance Corporation ("FDIC") premiums that may adversely affect the Company, (10) the application of generally accepted accounting principles, consistently applied, (11) the fact that one period of reported results may not be indicative of future periods, (12) the state of the economy in the greater New York metropolitan area and its particular effect on the Company's customers, vendors and communities and other such factors, including risk factors, as may be described in Bancorp's other filings with the SEC.