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Patriot National Bancorp acquiring Prime Bank in Connecticut


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Patriot National Bancorp acquiring Prime Bank in Connecticut

In Connecticut, Stamford-based Patriot National Bancorp Inc. is acquiring Orange-based Prime Bank.

Under the deal terms, Prime Bank shareholders will receive aggregate cash consideration equal to 115% of the bank's tangible book value as of the closing date. The acquisition will result in a new Patriot branch located in the Town of Orange, in New Haven County — where Patriot will rank 18th with a 0.37% share of approximately $27.68 billion in total market deposits.

SNL valuations for bank and thrift targets in the Northeast between Aug. 2, 2016, and Aug. 2, 2017, averaged 160.01% of book, 162.52% of tangible book and had a median of 47.95x last-12-month earnings, on a per-share basis.

The transaction is expected to close in the fourth quarter, subject to customary regulatory approvals and Prime Bank shareholder approval.

On a per-share basis, the deal value is 114.2% of book and tangible book, and 19.4x earnings. The deal price is 34.8x last-12-months earnings, 17.48% of deposits and 13.42% of assets. The tangible book premium-to-core deposits ratio is 4.63%.

As of June 30, Prime Bank had about $73 million in assets, $55.8 million in deposits and $27.8 million in loans. Also as of the same date, Patriot National had $773.4 million in assets, according to SNL data.

Patriot National, in addition, had announced the reinstatement of its dividend policy and declared its first quarterly dividend for shareholders since 2008.

PNBK Holdings LLC owns 75.65% of Patriot National.

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