Patriot Bank Closes $52 million Pre-Paid Debit Card Transaction
July 21 2020 - 12:30PM
Patriot National Bancorp, Inc. (“Patriot,” “Bancorp” or the
“Company”) (NASDAQ: PNBK), the parent company of Patriot Bank, N.A.
(the “Bank”), today announced that it has closed on a transaction
to acquire pre-paid debit card deposits from a prominent national
provider and processor of prepaid debit cards for corporate,
consumer, and government clients. Balances associated with
this acquisition are expected to total approximately $52 million
within the next week, and to grow from that initial level over time
With the closing of the transaction, Patriot is
now the depository and issuing bank payment partner for these
pre-paid cards. In its new capacity, Patriot will verify and
control funds going in and out from card usage. It will
provide controls, oversight, and monitoring to ensure that the
banks of merchants accepting the debit cards receive prompt and
accurate payment through the network, and when customers make
deposits in cash via various cash networks, that those funds are
accurately routed to the correct customer's debit card
account.
This deposit acquisition required, and was
granted, authorization by the Office of the Controller of the
Currency and was subject to various closing conditions.
Patriot Bank’s overall cost of funds will decrease as a result of
the transaction, which is a meaningful enhancement to the Bank’s
deposit gathering strategy and ongoing profitability.
Michael Carrazza, Chairman of
Patriot said, “We’re pleased to have successfully
completed the Bank’s first, value-enhancing pre-paid card
transaction, which is a pivotal move towards the Bank’s longer-term
deposit gathering strategy and will increase the Bank’s net
interest margin. Our expansion into this finance sector
further enhances Patriot’s brand and broadens the services we can
deliver to our banking clients.”
Patriot Bank is headquartered in Stamford and
operates 9 branch locations: in Scarsdale, NY; and Darien,
Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport,
CT. with Express Banking locations at Bridgeport/Housatonic
Community College, downtown New Haven and Trumbull at Westfield
Mall. The Bank also maintains SBA lending offices in Jacksonville,
FL and Stamford, along with a Rhode Island operations center.
About Patriot Bank:
Founded in 1994, and now celebrating its 26th
year, Patriot National Bancorp, Inc. (“Patriot” or “Bancorp”) is
the parent holding company of Patriot Bank N.A. (“Bank”), a
nationally chartered bank headquartered in Stamford, CT. Patriot
operates with full-service branches in Connecticut and New York and
provides lending products and services nationally. Patriot’s
mission is to serve its local community and nationwide customer
base by providing a growing array of banking solutions to meet the
needs of individuals and small business owners. Patriot places
great value in the integrity of its people and how it conducts
business. An emphasis on building strong client relationships and
community involvement are cornerstones of our philosophy as we seek
to maximize shareholder value.
Forward Looking
Statements:Statements contained in this news release that
are not historical facts are forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ materially
from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents
filed by the Company with the Securities and Exchange Commission
from time to time. The Company does not undertake and specifically
disclaims any obligation to update any forward-looking statement,
whether written or oral, that may be made from time to time by or
on behalf of the Company.
Contacts: |
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Patriot Bank, N.A. |
Fred Staudmyer |
Michael Carrazza |
900 Bedford Street |
EVP & Chief Administrative Officer |
Chairman |
Stamford, CT 06901 |
203-252-5921 |
203-251-8230 |
www.BankPatriot.com |
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