PNBK

Patriot National Bancorp is a $1.09B-asset national bank in regulatory crisis. On January 17, 2025 the Bank entered a Formal Agreement after the OCC found 'unsafe or unsound practices and violations of law' spanning strategic planning, capital planning, BSA/AML, payments oversight, credit administration and concentration risk. The filing states the Bank is in 'troubled condition' and is 'not an eligible bank,' which limits acquisitions, new products, capital actions and even personnel changes — and the company concedes its strategic repositioning 'may not succeed, may take longer than expected,' and could bring 'client attrition, elevated expenses, and financial underperformance.' This is a remediation story, not a growth story.

The numbers corroborate the distress. FY2025 net income was -$12.7M and operating cash flow was -$14.2M, on top of a -$39.9M loss in 2024 — two brutal years that have driven retained earnings to a -$99.6M accumulated deficit. ROE is -13.4%. The headline equity recovery to $94.7M (up ~2,120% YoY) and the 27% jump in cash to $207M are not earned profits — MD&A and the share count confirm they came from issuing common and preferred stock, with shares outstanding up 58.8% to 117M. That recapitalization saved the balance sheet but massively diluted holders, and leverage is still 10.5x liabilities/equity.