Patriot National Bancorp Inc. in Stamford, Conn., saw its losses widen during the second quarter compared to a year earlier, due largely to expenses associated with a turnaround plan.
Patriot on Wednesday reported a second-quarter loss of $7.2 million compared to a loss of $1.4 million in the same quarter last year. The increase was due largely to a $4 million in restructuring charges; the company said that it would incur no more special charges tied to efforts to restore profitability.
Those efforts includes shedding nonperforming assets, shrinking the balance sheet, reducing cost of deposits, closing four branches and redeploying excess liquidity into short-duration earnings assets.
Nonperforming assets fell 9% from the first quarter and 73% from a year earlier, to $30.3 million. The loan-loss provision in the second quarter was $1.5 million, compared to $7 million in the first quarter and $512,000 a year earlier.
The company, which has had more latitude restructuring its operations since raising $50.4 million in capital in October, continued to reduce its exposure to construction and commercial real estate. Total assets fell 8.7% from the first quarter and 21% from a year earlier, to $648.2 million.
