Patriot National Bancorp Earns $909,000 in First Nine Months of 2012; Restructuring Initiatives Lead to Greater Operating

  Patriot National Bancorp Earns $909,000 in First Nine Months of 2012;
  Restructuring Initiatives Lead to Greater Operating Efficiencies

Business Wire

STAMFORD, Conn. -- November 30, 2012

Patriot National Bancorp, Inc. (NASDAQ:PNBK) (“Patriot”), theparent of
Patriot National Bank(the “Bank”),today reported it earned $909,000, or
$0.02 diluted income per share, for the nine months ended September 30, 2012
compared to a net loss of $15.9 million, or $0.41 diluted loss per share, for
the nine months ended September 30, 2011. For the quarter ended September 30,
2012 Patriot earned $18,000 compared to $255,000 for the third quarter a year
ago.

“In the third quarter we reduced operating expenses by 8.6% compared to the
preceding quarter and posted our fifth consecutive quarter of profitability,”
stated Michael Carrazza, Chairman of the Board. “We are on track to surpass
our targeted levels of asset quality improvement by year-end and will continue
to implement our core earnings profitability strategies in the fourth
quarter.”

Financial Highlights:

  *Total Capital to Risk Weighted Assets was 14.78% for Patriot and 14.45%
    for the Bank at September 30, 2012. The Tier 1 Leverage Capital Ratio was
    9.60% for Patriot and 9.37% for the Bank.
  *Non-interest operating expenses declined 5.0% in the current quarter
    compared to the same quarter a year ago primarily due to lower salaries
    and benefits and administrative expenses.
  *The net interest margin was 2.86% in the third quarter of 2012 compared to
    2.81% in the prior quarter and 3.40% in the third quarter a year ago.
  *Classified assets were 9.1% of total assets at September 30, 2012,
    compared to 10.4% at June 30, 2012 and 11.7% in the third quarter a year
    ago.
  *Non-accrual loans were $30.0 million, or 6.0%, of total loans at September
    30, 2012, compared to $17.5 million, or 3.6% of total loans at June 30,
    2012, and $21.8 million, or 4.7% of total loans, at September 30, 2011.
  *Non-performing assets, which consist of non-accrual loans and OREO, were
    $31.3 million, or 5.1% of total assets at September 30, 2012, compared to
    $19.0 million, or 2.9% of total assets at June 30, 2012 and $26.5million,
    or 4.2% of total assets a year ago.

Asset Quality

“Aggressively managing our troubled assets remains a top priority. The
increase in delinquencies during the quarter was driven by four loans secured
by properties that are being marketed for sale,” said Christopher Maher,
President and Chief Executive Officer. “We will remain diligent in our efforts
to reduce credit costs as problem asset resolution occurs and the economy
continues to recover.”

Four owner-occupied residential real estate loans, of which three were already
categorized as substandard, but accruing interest, deteriorated and were moved
to non-accrual status during the quarter. Primarily due to this action, total
non-accrual loans increased $12.6 million during the third quarter to $30.0
million, or 6.1% of gross loans compared to $17.5 million, or 3.6% of gross
loans, three months earlier. Total non-accrual loans were $21.8 million, or
4.7% of gross loans at September 30, 2011. The overall trend, however, was
positive as 93.2% of the portfolio remained current as of September 30, 2012.

Other real estate owned (OREO) was $1.3 million at September 30, 2012 compared
to $1.5 million at June 30, 2012 and $4.7 million a year ago. Only one
property remains in OREO and this property is contracted for sale in the
fourth quarter. Non-performing assets, which consist of non-accrual loans and
OREO, totaled $31.3 million, or 5.1% of total assets at quarter end, compared
to $19.0 million, or 2.9% of total assets, at June 30, 2012, and
$26.5million, or 4.2% of total assets, a year ago.

“Due to the favorable recent loss history as it relates to our assessment of
the adequacy of the allowance for loan losses, a loan loss provision was not
recorded during the third quarter, the same as in the third quarter a year
ago,” said Mr. Maher. In the second quarter of 2012, Patriot released $1.7
million from its allowance for loan losses. The allowance for loan losses
totaled $6.7 million, or 1.34% of gross loans, at September 30, 2012 compared
to $11.2 million, or 2.40 %, of gross loans a year ago.

Balance Sheet Review

Patriot’s net loans increased 8.8% to $493.1 million at September 30, 2012,
compared to $453.1 million a year ago. The year-over-year increase in net
loans is primarily attributed to increases in commercial real estate loans,
lines of credit and residential real estate loans. At September 30, 2012 the
loan pipeline totaled $87.9 million, which reflects Patriot’s increased focus
on new loan production, targeted at strengthening the margin and building fee
income.

Total assets were $615.3 million at September 30, 2012, compared to $628.4
million at September 30, 2011. Total deposits were $484.0 million at September
30, 2012, compared to $507.7million at September 30 of the prior year, as the
Bank continues to focus on core transaction accounts while reducing the
balance sheet by letting higher cost deposits run off. Non-interest bearing
deposits increased 4.6% to $59.3 million at September 30, 2012, compared to
$56.7 million a year earlier while interest bearing deposits declined 5.8% to
$424.6 million at September 30, 2012, compared to $451.0 million a year
earlier. Total deposits per branch averaged $34.3 million at September 30,
2012.

Income Statement Review

Patriot’s third quarter net interest income was $4.2 million, compared to $4.9
million in the third quarter a year ago. Interest income decreased 13.4%
compared to the third quarter a year ago as a result of the lower interest
rate environment’s impact on loans that re-priced, loan payoffs, and the
overall loan mix. Interest expense decreased 10.7% compared to the third
quarter a year ago due to the reduction in interest bearing deposits and the
increase in non-interest bearing deposits. In the first nine months of 2012,
net interest income was $19.5 million compared to $21.4 million in the first
nine months of 2011. The decline compared to the first nine months of the
prior year was due to the overall lower rate environment and the change in the
balance sheet mix.

The lower interest rate environment held Patriot’s net interest margin flat
during the third quarter. The net interest margin in the third quarter of 2012
was 2.86%, compared to 2.81% in the second quarter of 2012 and 3.40% in the
third quarter a year ago. In the first nine months of the year the net
interest margin was 2.98% compared to 3.12% in the first nine months of 2011.

Third quarter non-interest income increased 13.7% to $1.5 million compared to
$1.3 million in the third quarter of 2011, in part due to a net increase of
$145,000 in the gain on sale of investment securities and a $31,000 gain on
sale of loans. In the first nine months of the year, non-interest income
improved modestly to $2.7 million compared to $2.6 million in the same period
a year ago.

Non-interest expenses declined 5.0% to $5.7million in the third quarter of
2012, compared to $6.0 million in the third quarter a year ago. Year-to-date,
non-interest expenses decreased 27.5% to $18.1 million compared to $24.9
million in the same period a year earlier as a result of a significant
reduction in salaries and benefits, restructuring charges, other real estate
operations and professional services. “We closed our West End branch in June
and closed three more branches during the first week of October. These branch
closures will continue the significant reduction in our operating expenses
going forward,” said Mr. Maher.

Capital

The capital ratios at September30,2012 for Patriot National Bancorp, Inc.
and Patriot National Bank were:

                     Patriot        Patriot        Well
                          National            National            Capitalized
                          Bancorp,            Bank                Requirement
                          Inc.
                                                                  
Total Capital
(to Risk                  14.78%              14.45%              10.00%
Weighted
Assets)
Tier 1 Capital
(to Risk                  13.52%              13.19%              6.00%
Weighted
Assets)
Tier 1 Capital
(to Average               9.60%               9.37%               5.00%
Assets)
                                                                  

About the Company

Patriot National Bank is headquartered in Stamford, Connecticut and currently
has 11 full service branches, 9 in Connecticut and two in New York. It also
has a loan production office in Stamford, CT.

Statements in this earnings release that are not historical facts are
considered to be forward-looking statements. Such statements include, but are
not limited to, statements regarding management beliefs and expectations,
based upon information available at the time the statements are made,
regarding future plans, objectives and performance. All forward-looking
statements are subject to risks and uncertainties, many of which are beyond
management’s control and actual results and performance may differ
significantly from those contained in forward-looking statements. Bancorp
intends any forward-looking statement to be covered by the Litigation Reform
Act of 1995 and is including this statement for purposes of said safe harbor
provisions. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this news
release. Bancorp undertakes no obligation to update any forward-looking
statements to reflect events or circumstances that occur after the date as of
which such statements are made. Adiscussion of certain risks and
uncertainties that could cause actual results to differ materially from those
contained in forward-looking statements is included in Bancorp’s Annual
ReportonForm10-K for the year ended December 31, 2011.

                                                                            
PATRIOT NATIONAL BANCORP, INC.
STATEMENTS OF OPERATIONS
(unaudited)            Three Months Ended                                       Nine Months Ended
Dollars in             Sep.
thousands,             30,            Jun. 30,          Sep. 30,             Sep. 30,          Sep. 30,
except per             2012            2012               2011                  2012               2011
share data
                                                                                                   
Interest and
dividend
income
Interest and           $ 5,533         $ 5,811            $ 6,185               $ 18,011           $ 19,680
fees on loans
Interest on
investment               396             427                665                   1,300              1,425
securities
Dividends on
investment               32              32                 56                    97                 207
securities
Interest on
federal funds            -               -                  -                     -                  7
sold
Other interest          22             40               2                   72               122     
income
Total interest
and dividend            5,983          6,310            6,908               19,480           21,441  
income
                                                                                                   
Interest
expense
Interest on              1,240           1,421              1,385                 4,178              4,804
deposits
Interest on
Federal Home             358             354                428                   1,069              1,270
Loan Bank
borrowings
Interest on
subordinated             75              75                 71                    226                212
debt
Interest on
other                   78             77               78                  232              231     
borrowings
Total interest          1,751          1,927            1,962               5,705            6,517   
expense
                                                                                                   
Net interest             4,232           4,383              4,946                 13,775             14,924
income
                                                                                                   
Provision for           -              (1,713 )          -                   (2,559 )          8,464   
loan losses
                                                                                                   
Net interest
income after            4,232          6,096            4,946               16,334           6,459   
provision for
loan losses
                                                                                                   
Non-interest
income
Mortgage
brokerage                35              22                 14                    69                 28
referral fees
Loan
application,
inspection and           29              16                 21                    59                 61
processing
fees
Deposit fees
and service              215             227                207                   671                736
charges
Gain on sale             31              -                  -                     295                80
of loans
Gain on sale
of investment            924             -                  780                   916                780
securities
Earnings on
cash surrender           122             120                170                   385                491
value of life
insurance
Other income            101            70               90                  267              398     
Total
non-interest            1,457          455              1,282               2,662            2,574   
income
                                                                                                   
Non-interest
expense
Salaries and             2,620           2,725              2,840                 8,237              9,244
benefits
Occupancy and
equipment                1,127           1,135              1,039                 3,386              3,685
expense
Data                     379             346                316                   1,070              980
processing
Professional
and other                510             854                546                   1,979              2,662
outside
services
Advertising
and                      15              8                  92                    41                 522
promotional
expenses
Loan
administration           35              46                 88                    89                 174
and processing
expenses
Regulatory               439             462                432                   1,311              1,671
assessments
Insurance                109             109                227                   387                687
expense
Other real
estate                   22              16                 (26   )               (111   )           1,019
operations
Material and             106             133                163                   370                527
communications
Restructuring
charges and              8               127                -                     503                2,986
asset
disposals
Other
operating               301            245              256                 825              779     
expenses
Total
non-interest            5,671          6,206            5,973               18,087           24,936  
expenses
                                                                                                   
Income (loss)
before income            18              345                255                   909                (15,903 )
taxes
                                                                                                   
Provision for           -              -                -                   -                -       
income taxes
Net income             $ 18            $ 345             $ 255                $ 909             $ (15,903 )
(loss)
                                                                                                   
Basic and
diluted income          0.00          $ 0.01            $ 0.01               $ 0.02            $ (0.41   )
(loss) per
share
                                                                                                   

                                                         
(Dollars in                    Sep. 30,            Jun. 30,            Sep. 30,
thousands, except              2012                2012                2011
per share data)
(Unaudited)
                                                                       
Assets
Cash and due from              $ 43,831            $ 62,177            $ 39,982
banks
Federal funds sold               -                   -                   -
Short-term                      710               710               3,206   
investments
Total cash and cash              44,541              62,887              43,188
equivalents
                                                                       
Securities-available             18,315              56,343              88,529
for sale
Other investments                3,500               3,500               3,500
FRB & FHLB stock                6,088             6,063             6,215   
Total securities                 27,903              65,906              98,244
                                                                       
Gross loans                      499,801             490,532             464,291
Allowance for loan              (6,692  )          (6,674  )          (11,158 )
losses
Net loans                        493,109             483,858             453,133
                                                                       
Real estate loans                1,950               -                   250
held for sale
Accrued interest and             1,979               2,289               2,321
dividend receivable
Premise and                      4,656               4,713               4,181
equipment, net
Cash surrender value             21,369              21,248              20,840
of life insurance
Other real estate                1,252               1,518               4,732
owned
Deferred tax asset,              -                   -                   -
net (1)
Other assets                    18,589            1,848             1,538   
Total assets                   $ 615,348          $ 644,267          $ 628,427 
                                                                       
Liabilities and
Shareholders' Equity
                                                                       
Deposits
Non interest bearing           $ 59,309            $ 71,722            $ 56,699
deposits
Interest bearing                424,644           450,373           451,024 
deposits
                                 483,953             522,095             507,723
                                                                       
FHLB advances and
repurchase                       67,000              57,000              57,000
agreements
Subordinated debt                8,248               8,248               8,248
Accrued expenses and            5,015             5,165             4,786   
other liabilities
Total Liabilities                564,216             592,508             577,757
                                                                       
Common stock                     385                 385                 384
Treasury stock                   (160    )           (160    )           (160    )
Additional paid-in               105,285             105,183             105,050
capital
Accumulated deficit              (53,950 )           (53,968 )           (55,302 )
Accumulated other               (428    )          319               698     
comprehensive income
Total shareholders'             51,132            51,759            50,670  
equity
                                                                       
Total liabilities
and shareholders'              $ 615,348          $ 644,267          $ 628,427 
equity
                                                                       
(1) Includes the deferred tax asset and a full valuation allowance of $13.7
million, $13.5 million and $16.1 million, respectively.


                                                          
Financial Ratios and Other Data
(Dollars in thousands, except per share data)
(Unaudited)                 Sep. 30,               Jun. 30,               Sep. 30,
                             2012                 2012                 2011       
Asset
Quality:
Nonaccrual                  $ 30,020               $ 17,452               $ 21,776
loans
Other real                   1,252                1,518                4,732      
estate owned
Total
nonperforming               $ 31,272              $ 18,970              $ 26,508     
assets
                                                                          
                                                                          
Nonaccrual
loans /                       6.01       %           3.56       %           4.69       %
portfolio
loans
Nonperforming
assets /                      5.08       %           2.94       %           4.22       %
assets
Allowance for               $ 6,692                $ 6,674                $ 11,158
loan losses
Allowance for
loan losses /                 1.34       %           1.36       %           2.40       %
portfolio
loans
Allowance /
nonaccrual                    22.92      %           38.24      %           51.24      %
loans
Gross loan
charge-offs                 $ 4                    $ 91                   $ 218
for the
quarter
Gross loan
recoveries                  $ 22                   $ 17                   $ 16
for the
quarter
Net loan
charge-offs                 $ (18        )         $ 74                   $ 202
for the
quarter
                                                                          
Capital Data:
Book value                  $ 1.33                 $ 1.35                 $ 1.32
per share (1)
Tangible book
value per                   $ 1.33                 $ 1.35                 $ 1.32
share (2)
Shares                        38,467,073             38,467,073             38,362,727
outstanding
                                                                          
(1) Book value per share represents shareholders’ equity divided by outstanding shares.
(2) Tangible book value per share represents shareholders’ equity less intangible assets
divided by outstanding shares.

Contact:

Patriot National Bancorp, Inc.
Christopher D. Maher, 203-251-8265
President & CEO
or
Robert F. O’Connell, 203-252-5926
Sr. EVP & CFO