Patriot National Bancorp Announces Over $50 Million Private Placement
Patriot National Bancorp (NASDAQ: PNBK) has secured over $50 million through a private placement, issuing common stock and non-voting preferred stock to accredited investors. The capital raise aims to strengthen the balance sheet and capital ratios of both the Company and Patriot Bank NA.
The company announced leadership changes with CEO David Lowery's planned departure by April 15, 2025, while President Steven Sugarman has entered into a long-term employment agreement. Sugarman, former Founder and CEO of Banc of California, will lead the company forward.
The private placement was co-led by Sugarman and FlyHouse Management affiliates, with Performance Trust Capital Partners serving as strategic advisor and placement agent. The securities offered in this private placement have not been registered under the Securities Act of 1933.
Patriot National Bancorp (NASDAQ: PNBK) ha ottenuto oltre 50 milioni di dollari tramite un collocamento privato, emettendo azioni ordinarie e azioni privilegiate non votanti per investitori accreditati. L'obiettivo dell'aumento di capitale è rafforzare il bilancio e i rapporti patrimoniali sia della Società che di Patriot Bank NA.
L'azienda ha annunciato cambiamenti nella leadership con la partenza programmata del CEO David Lowery entro il 15 aprile 2025, mentre il Presidente Steven Sugarman ha stipulato un contratto di lavoro a lungo termine. Sugarman, ex Fondatore e CEO di Banc of California, guiderà l'azienda verso il futuro.
Il collocamento privato è stato co-guidato da Sugarman e dagli affiliati di FlyHouse Management, con Performance Trust Capital Partners che funge da consulente strategico e agente di collocamento. I titoli offerti in questo collocamento privato non sono stati registrati ai sensi del Securities Act del 1933.
Patriot National Bancorp (NASDAQ: PNBK) ha asegurado más de 50 millones de dólares a través de una colocación privada, emitiendo acciones comunes y acciones preferentes no votantes a inversores acreditados. El objetivo de la recaudación de capital es fortalecer el balance y los ratios de capital tanto de la Compañía como de Patriot Bank NA.
La empresa anunció cambios en la dirección con la salida planificada del CEO David Lowery para el 15 de abril de 2025, mientras que el Presidente Steven Sugarman ha firmado un contrato de empleo a largo plazo. Sugarman, ex Fundador y CEO de Banc of California, liderará la empresa hacia adelante.
La colocación privada fue co-dirigida por Sugarman y afiliados de FlyHouse Management, con Performance Trust Capital Partners actuando como asesor estratégico y agente de colocación. Los valores ofrecidos en esta colocación privada no han sido registrados bajo la Ley de Valores de 1933.
패트리엇 내셔널 뱅코프 (NASDAQ: PNBK)는 5천만 달러 이상을 확보하며, 공모주와 비의결권 우선주를 공인 투자자에게 발행하는 방식으로 사모 배정을 진행했습니다. 자본 조달의 목적은 회사와 패트리엇 뱅크 NA의 재무 상태와 자본 비율을 강화하는 것입니다.
회사는 CEO 데이비드 로워리가 2025년 4월 15일까지 떠날 예정이라는 리더십 변화를 발표했으며, 대통령 스티븐 수가르만은 장기 고용 계약을 체결했습니다. 수가르만은 캘리포니아 뱅크의 창립자이자 CEO 출신으로, 회사를 이끌어 나갈 것입니다.
이번 사모 배정은 수가르만과 플라이하우스 매니지먼트의 제휴사들이 공동으로 이끌었으며, 퍼포먼스 트러스트 캐피탈 파트너스가 전략 자문 및 배정 에이전트로 활동했습니다. 이번 사모 배정에서 제공된 증권은 1933년 증권법에 따라 등록되지 않았습니다.
Patriot National Bancorp (NASDAQ: PNBK) a sécurisé plus de 50 millions de dollars grâce à un placement privé, émettant des actions ordinaires et des actions privilégiées non votantes à des investisseurs accrédités. L'augmentation de capital vise à renforcer le bilan et les ratios de capital de la Société ainsi que de Patriot Bank NA.
L'entreprise a annoncé des changements de direction avec le départ prévu du PDG David Lowery d'ici le 15 avril 2025, tandis que le Président Steven Sugarman a signé un contrat de travail à long terme. Sugarman, ancien Fondateur et PDG de Banc of California, dirigera l'entreprise vers l'avenir.
Le placement privé a été co-dirigé par Sugarman et des affiliés de FlyHouse Management, Performance Trust Capital Partners agissant en tant que conseiller stratégique et agent de placement. Les titres offerts dans ce placement privé n'ont pas été enregistrés en vertu de la Loi sur les valeurs mobilières de 1933.
Patriot National Bancorp (NASDAQ: PNBK) hat über 50 Millionen Dollar durch eine Privatplatzierung gesichert, indem es Stammaktien und nicht stimmberechtigte Vorzugsaktien an akkreditierte Investoren ausgegeben hat. Die Kapitalerhöhung zielt darauf ab, die Bilanz und die Eigenkapitalquoten sowohl des Unternehmens als auch der Patriot Bank NA zu stärken.
Das Unternehmen kündigte Führungswechsel an, da CEO David Lowery plant, bis zum 15. April 2025 auszuscheiden, während Präsident Steven Sugarman einen langfristigen Arbeitsvertrag unterzeichnet hat. Sugarman, der ehemalige Gründer und CEO der Banc of California, wird das Unternehmen in die Zukunft führen.
Die Privatplatzierung wurde gemeinsam von Sugarman und den Partnern von FlyHouse Management geleitet, wobei Performance Trust Capital Partners als strategischer Berater und Platzierungsagent fungierte. Die in dieser Privatplatzierung angebotenen Wertpapiere wurden nicht gemäß dem Securities Act von 1933 registriert.
- $50+ million capital injection strengthens balance sheet and capital ratios
- Secured experienced leadership with Steven Sugarman's long-term commitment
- Strong investor demand demonstrated through successful private placement
- CEO David Lowery's departure creates leadership transition uncertainty
- Stock dilution from new share issuance impacts existing shareholders
- Securities are unregistered, potentially limiting transferability and liquidity
Insights
Patriot National Bancorp's $50+ million private placement represents a transformative capital raise for a bank with only a $4.1 million market capitalization. The sheer scale of this recapitalization—approximately 12 times the current market value—signals both the significant capital needs of the institution and strong investor confidence in its potential under new leadership.
The recapitalization coincides with a leadership transition, with CEO David Lowery departing and President Steven Sugarman securing a long-term employment agreement. Sugarman's background as former Chairman and CEO of Banc of California and founder of COR Clearing brings valuable experience to this apparent turnaround effort.
While the announcement frames this as enhancing Patriot's ability to pursue growth opportunities and strengthen its balance sheet, the massive size relative to market cap virtually guarantees substantial dilution for existing shareholders. Without disclosed pricing terms, it's impossible to quantify the exact impact, but the ownership structure will likely change dramatically.
The transaction structure—using both common stock and non-voting preferred stock—suggests careful consideration of control and regulatory factors. This capital infusion should significantly improve the bank's capital ratios and regulatory standing, positioning it to pursue stated goals of enhancing its digital payments platform and serving tri-state area entrepreneurs and businesses.
This $50+ million recapitalization represents a critical inflection point for Patriot National Bancorp, effectively creating an entirely new financial entity. The deal's magnitude—many times larger than the bank's current $4.1 million market capitalization—indicates this isn't simply growth capital but rather a comprehensive balance sheet restructuring.
Steven Sugarman, who will be taking greater control through a new employment agreement, brings significant banking leadership credentials and appears to be personally leading this investor group alongside FlyHouse Management. This suggests a potential strategic repositioning beyond mere capital enhancement.
For existing shareholders, this represents a double-edged sword. While the capital infusion addresses what must have been pressing balance sheet concerns, the massive dilution almost certainly coming from this deal will dramatically reduce their ownership percentage. Without knowing the price per share in this private placement, it's impossible to assess whether this represents a favorable or unfavorable transaction for current investors.
The timing of CEO Lowery's departure alongside this recapitalization suggests the leadership change may be directly connected to this new capital and direction. Chairman Carrazza's statement about a "compelling market opportunity" indicates the recapitalized bank may pursue an aggressive new strategy leveraging its strengthened balance sheet and the expertise of its new leadership team.
- Equity recapitalization is expected to result in strong balance sheet and robust capital ratios
- President Steven Sugarman entered into long-term employment agreement
- CEO David Lowery announces his decision to depart the Company
- Patriot Bank remains committed to enhancing its digital payments platform and to empowering the entrepreneurs, business leaders, and investors throughout the tri-state community.
STAMFORD, Conn., March 20, 2025 (GLOBE NEWSWIRE) -- Patriot National Bancorp, Inc. (the “Company”) (NASDAQ: PNBK) announced today that it has entered into securities purchase agreements to raise over
Steven Sugarman, the President of Patriot National Bancorp, said, “I am humbled by the strong investor demand to invest in Patriot Bank and our management team. I am excited to have the opportunity to work with Patriot’s existing employees and to add additional Directors, Officers, and bankers to our team. The new capital will enable Patriot to meet the bespoke needs of its clients, safely and soundly. The future is bright for Patriot.”
Patriot National Bancorp also announced the departure of Chief Executive Officer David Lowery and the execution of a long-term employment agreement with Mr. Sugarman. Mr. Sugarman previously served as the Founder, Chairman, President and Chief Executive Officer of Banc of California, Inc., Founder and Chairman of COR Clearing, LLC (which was sold to Axos Bank in 2019), and continues to serve as Founder and CEO of The Change Company CDFI, LLC. Mr. Lowery will remain in his current role through April 15, 2025 or as otherwise determined by Mr. Lowery and Patriot National Bancorp, to ensure a seamless transition.
Michael Carrazza, the Chairman of the Board, said, “The completion of the capital raise marks a positive inflection point for Patriot and will enable the bank to pursue the compelling market opportunity that exists. We thank David Lowery for his leadership and his ability to navigate Patriot through this critical period. We appreciate David’s willingness to continue to ensure a seamless transition period and wish him great success in all his future endeavors.”
Chief Executive Officer David Lowery added, “I am proud to have helped lead the successful recapitalization of Patriot Bank and I thank the Patriot Bank employees for their hard work and support that made this possible.”
The private placement was led by Mr. Sugarman and co-led by affiliates of FlyHouse Management, LLC.
Performance Trust Capital Partners, LLC served as strategic advisor to the Company and placement agent for the private placement. Michelman & Robinson LLP served as counsel for the lead investor and Blank Rome LLP, Pryor Cashman LLP, and Robinson & Cole LLP served as counsel for Patriot National Bank.
The securities being offered and sold by the Company in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company’s plans, objectives, goals, strategies, business plans, future events or performance. Words such as “anticipates," “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “targets,” “designed,” “could,” “may,” “should,” “will” or other similar words and expressions are intended to identify these forward-looking statements. Because forward-looking statements relate to future results and occurrences, they are subject to inherent risks, uncertainties, changes in circumstances and other factors that are difficult to predict. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding its business, plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Many possible events or factors could affect the Company’s future financial results and performance and could cause its actual results, performance or achievements to differ materially from any anticipated results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: (i) delays in closing the private placement, (ii) the dilution to be caused by the Company’s issuance of additional shares of its capital stock in connection with the private placement, (iii) general competitive, economic, political and market conditions, or (iv) other factors that may affect future results of the Company.
Given these factors, you should not place undue reliance on these forward-looking statements. All information set forth in this press release is as of the date of this press release. The Company undertakes no duty or obligation to update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in its expectations or otherwise, except as may be required by applicable law.
Learn more about Patriot National Bancorp, Inc. at www.bankpatriot.com
Media Inquiries:
Kirsten Hoekman
khoekman@bankpatriot.com
(203) 252-5905
FAQ
How much capital did Patriot National Bancorp (PNBK) raise in its private placement?
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