Patriot National Bancorp, Inc. (PNBK): Business Model Canvas [Dec-2025 Updated]

If you're tracking regional banks making tough pivots, Patriot National Bancorp, Inc. (PNBK) is a prime case study right now, especially after securing a $60.6 million capital raise in 2025 to tackle a significant balance sheet cleanup. Honestly, seeing a TTM provision for losses of $9.51 million against $17.2 million in total revenue (Sep '25) tells you this isn't business as usual; it's a fight for stability while trying to grow a new Digital Payments Division. You need to see how they are structuring their operations-from key partnerships to revenue streams-to understand if this strategic reset, following a recent net loss, is set to stick. Dive into the full Business Model Canvas below to see the nine blocks defining their path forward.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships Patriot National Bancorp, Inc. relies on to operate and execute its turnaround strategy as of late 2025. These partnerships are critical, especially given the recent regulatory environment.

The most immediate and financially significant partnerships involved capital providers. Patriot National Bancorp, Inc. successfully raised a total of approximately $60.6M through capital infusions in 2025 to stabilize the balance sheet and meet regulatory requirements. You need to know how that money was structured.

These capital raises were directly linked to addressing deficiencies noted by the Office of the Comptroller of the Currency (OCC). For instance, the March 2025 private placement was intended to raise a minimum of $50,000,000 to increase equity capital in the banking subsidiary, Patriot Bank, N.A..

Regarding the Digital Payments Division, the partnership structure here is under intense regulatory review. The OCC agreement explicitly mandated that Patriot National Bancorp, Inc. implement plans for Program Manager Due Diligence and Monitoring and strengthen oversight of payment activities. This indicates the reliance on external program managers for credit card origination and other payment processing capabilities is a key, yet scrutinized, area of the business model. Alfred Botta, Jr., as Executive Vice President & Chief Payments Officer, oversees the strategic direction of payment processing, including digital wallets and transaction services.

For wholesale funding access, the Federal Home Loan Bank (FHLB) remains a standard partner for many regional banks like Patriot National Bancorp, Inc. While specific 2025 advance borrowing figures aren't immediately public in the same way as equity raises, the FHLB structure provides essential liquidity support to the institution.

On the technology side, the operational backbone relies on core banking system vendors. Steven Grunblatt, the Executive Vice President & Chief Information Officer, guides the execution of IT infrastructure and digital transformation initiatives for Patriot National Bancorp, Inc.. This infrastructure supports the bank's operations across its branches in Connecticut and New York, and its national lending portfolio.

The relationship with the Office of the Comptroller of the Currency (OCC) is perhaps the most defining partnership for operational requirements in 2025. Patriot Bank, N.A. entered into a formal regulatory agreement with the OCC on January 14, 2025.

• The OCC designated Patriot Bank as being in 'troubled condition'.
• The agreement required the bank to maintain a common equity tier 1 capital ratio of at least 10.0% by February 28, 2025.
• A Compliance Committee had to be established by January 31, 2025.
• The bank was required to submit a written strategic plan within 45 days of the agreement.
• This action followed a reported loss of nearly $27 million for the quarter ending September 30, 2024.

Finance: draft 13-week cash view by Friday.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Key Activities

You're looking at the operational core of Patriot National Bancorp, Inc. (PNBK) right now, and honestly, it's a story of aggressive de-risking and regulatory compliance. The key activities are centered on shrinking the balance sheet while maintaining minimum capital levels and managing the fallout from the legacy loan book.

Traditional commercial and residential mortgage lending remains a core function, but it's currently a managed wind-down rather than a growth engine. The bank is actively suspending legacy lending programs, though new loan programs were launched in Q3 2025 to pivot the book safely. As of June 30, 2025, the gross loan portfolio stood at $602.8 million, down significantly from $707.5 million at the end of 2024. This reduction directly impacts the primary revenue stream, as net interest income declined by $2.3 million for the six months ended June 30, 2025, compared to the prior year. The concentration in Commercial Real Estate (CRE) is a major focus area for management.

The activity of Strategic asset reduction to improve capital ratios is paramount, driven by the formal agreement with the Office of the Comptroller of the Currency (OCC). This required Patriot National Bancorp to maintain a Common Equity Tier 1 (CET1) capital ratio of at least 10%. The bank has been successful here, reporting a CET1 Ratio of 15.61% and a Total Leverage Ratio of 10.33% as of Q2 2025, both exceeding the minimums following capital raises totaling over $60 million in early 2025. This strategic move has shrunk total assets to $950.8 million as of September 30, 2025, representing a decrease of $61.5 million since the end of 2024.

Here's a quick look at the balance sheet management activity as of mid-2025:

Managing a loan portfolio involves the critical activity of provisioning for expected credit losses. The bank increased its Allowance for Credit Losses (ACL) to $7.8 million as of June 30, 2025, up from $7.3 million at year-end 2024. The portfolio management activity is also focused on reducing non-performing assets, which fell to $24.2 million as of June 30, 2025, down from $37.4 million year-over-year. You're looking at a portfolio where the management activity is clearly weighted toward credit quality improvement. Managing a loan portfolio with TTM provision for losses of $9.51 million.

The Operating the Digital Payments Division platform is an ongoing, albeit secondary, activity. Patriot National Bancorp announced its commitment to enhancing this platform in March 2025. However, a key operational change occurred in July 2025 with the resignation of the Executive Vice President and Chief Payments Officer, effective August 7, 2025, which signals a potential shift or restructuring in the execution of this strategy. The bank's overall revenue for the TTM ending June 30, 2025, was only $15.64 million, showing the lending book reduction is severely constraining top-line results.

Finally, Deposit gathering and liquidity management is a constant for any bank, especially one undergoing recapitalization. Total deposits were reported at $839.5 million as of Q2 2025. Liquidity management has seen some volatility; the bank reported an improvement in liquidity due to a loan balance reduction of $93M, which was partially offset by a $29M decrease in deposits in Q2 2025. The Liquidity to Assets ratio stood at 31.3% in Q2 2025. The management activity here involves reducing non-relationship deposits and lowering deposit rates to improve margins.

• Total Assets as of June 30, 2025: $930.2 million.
• Total Deposits as of Q2 2025: $839.5 million.
• Allowance for Credit Losses (ACL) as of June 30, 2025: $7.8 million.
• Non-performing loans as of June 30, 2025: $24.2 million.
• Total Leverage Ratio as of Q2 2025: 10.33%.

Finance: draft 13-week cash view by Friday.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Key Resources

Tangible equity capital significantly reinforced by 2025 raises

Patriot National Bancorp, Inc. completed significant capital raises in 2025, substantially strengthening the balance sheet. The March 20, 2025, private placement generated over $50 million in gross proceeds from accredited investors. This was followed by a registered direct offering on June 05, 2025, which raised gross proceeds of $10,655,200 by issuing 8,524,160 shares at $1.25 per share. The total recent capital infusion exceeds $60 million, which the company stated enhances its ability to execute strategic objectives.

The following table summarizes the geographic footprint and recent capital strengthening actions:

Branch network in Fairfield/New Haven Counties (CT) and Westchester County (NY)

Patriot Bank, N.A. focuses its physical presence across specific high-value markets in the tri-state area. The bank provides retail and commercial banking services through its established network.

• Fairfield County, Connecticut: seven locations.
• New Haven County, Connecticut: one location.
• Westchester County, New York: one location, including Scarsdale.

Executive and board expertise in wealth management and corporate strategy

The leadership structure features executives with deep experience in finance and strategy. President and CEO Steven Sugarman was recognized as a Banking and Finance Visionary by the Los Angeles Times in 2025. The Board of Directors was reinforced on November 19, 2025, with the appointment of three new directors, expanding specific expertise areas.

The board expertise includes:

• Ida Liu: Former Global Head of Citi Private Bank, bringing global private banking and ultra-high-net-worth experience.
• Jonathan Roth: Nearly 40 years in real estate investment management and law.
• Jeffrey Seabold: Almost 30 years of experience in corporate strategy, commercial banking, and real estate finance.

Core banking and digital payments technology platforms

Patriot National Bancorp, Inc. maintains a commitment to enhancing its digital payments platform. The bank offers comprehensive Online Banking services, allowing clients to manage accounts digitally from their mobile devices.

Key technology capabilities include:

• Digital fund transfers between checking and savings accounts.
• Electronic bill pay, allowing for scheduled recurring payments.
• Digital wallet functionality for virtual payments via phone.
• Partnership with Apto Payments for card issuing services, including BIN sponsorship and full KYC/KYB management.

Total assets of $950.8 million as of September 30, 2025

The reported total assets for Patriot National Bancorp, Inc. stood at $950.8 million at the close of the third quarter of 2025. This figure reflects the balance sheet size following the capital raises earlier in the year.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Value Propositions

Patriot National Bancorp, Inc. is offering value propositions centered on stability achieved through recent capital actions, a localized banking structure, and specific service delivery for its client base.

Financial stabilization is a core, immediate value proposition, directly resulting from significant capital-raising efforts in 2025 to bolster regulatory standing and address prior losses. The company reported a net loss for the third quarter of 2025 of USD 2.66 million. For the first nine months of 2025, the net loss totaled $10.4 million. This follows a period where the bank's gross loan portfolio was intentionally reduced from $707.5 million at the end of 2024 to $588.7 million by September 30, 2025.

The stabilization was underpinned by a total infusion of approximately $60.6 million in new capital during 2025. This included a private placement of over $50 million in March 2025 and a follow-on registered direct offering in June 2025 that raised gross proceeds of $10,655,200. This capital was critical for meeting the Office of the Comptroller of the Currency (OCC) requirement for a Common Equity Tier 1 (CET1) ratio of at least 10%.

Here is a snapshot of the financial context surrounding this stabilization effort:

The bank's foundational value proposition remains its commitment to community-oriented banking with local decision-making. Patriot National Bancorp, Inc., through its subsidiary Patriot Bank, N.A., adheres to these principles, having been established by local investors following the closure of Patriot Savings & Loan Association in 2009. Its operational footprint spans Broward, Miami-Dade, and Palm Beach counties in South Florida.

For its customer base, Patriot National Bancorp offers a suite of traditional banking services and specialized commercial support. The core deposit offerings include:

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit (CDs)

These traditional products are supported by online and mobile banking platforms. Furthermore, the bank provides personalized, bespoke service for commercial clients, supported by the new capital to meet these specific needs. This commercial support extends to specific operational services:

• Treasury management solutions
• Cash management services
• Merchant card processing

Patriot National Bank also maintains a commitment to enhancing its digital payments platform for partners.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Customer Relationships

You're looking at how Patriot National Bancorp, Inc. (PNBK) interacts with its clients, which is a mix of high-touch service for business clients and automated tools for consumers, all under the watchful eye of regulators.

Personal, high-touch service model for commercial and professional clients

The core business for Patriot National Bancorp, Inc., headquartered in Stamford, Connecticut, relies heavily on its commercial and professional client base. This segment drives significant revenue, with Interest Income from its loan portfolio making up approximately 69.4% of the total Q3 2025 revenue, which was $7.22 million. Non-Interest Income, which often comes from service fees on these relationships, contributed about 30.5%, or $2.2 million, in that same quarter. The loan book as of Q2 2025 showed a heavy concentration in business-related lending, with Commercial Real Estate (CRE) Loans making up 52.60% of the Total Loans - Gross balance of $602,846 thousand.

The relationship managers are key here; their ability to maintain strong client ties is explicitly noted as critical, as the loss of key management personnel could impair these customer relationships.

Community-focused engagement in the tri-state area

As a community-oriented bank, Patriot National Bancorp, Inc. emphasizes local partnerships, though specific 2025 engagement metrics for the Connecticut/New York/New Jersey tri-state area are not publicly detailed in recent filings. The bank's overall market capitalization as of late 2025 was reported at $142.6M. The bank's strategy is grounded in financial strength and integrity, aiming to make a positive impact in the communities it serves.

Dedicated relationship managers for business banking

For commercial clients, the service model mandates dedicated relationship managers. These professionals are expected to possess strong networking and relationship management skills, alongside credit analysis abilities, to facilitate loans and financing for corporate accounts. The focus is on bespoke financial solutions and client retention, which requires high emotional intelligence in managing these key portfolios.

Automated, self-service digital banking for consumers

For the consumer segment, Patriot National Bancorp, Inc. supports an automated, self-service digital offering. While PNBK-specific adoption rates aren't available, the broader U.S. trend shows that 77 percent of consumers prefer managing accounts via a mobile app or computer. Nationally, digital banking users were expected to reach 216.8 million by 2025. However, the bank must balance this with the fact that 50% of consumers still want to retain branch services.

Regulatory-driven focus on safety and soundness

Customer relationships are managed within a strict compliance framework. Patriot National Bancorp, Inc. is subject to regulatory requirements from the Office of the Comptroller of the Currency (OCC). A primary focus for the bank in 2025 has been strategic planning and risk management to meet specific regulatory capital requirements. The bank is not currently returning capital to shareholders, as the TTM dividend payout was $0.00.

• The bank is working towards meeting specific capital ratios set by the OCC.
• Cybersecurity threats are a noted operational risk to reputation and operations.
• The bank reported a net loss of -$39.9 million for the full fiscal year 2024.
• The TTM loss as of 2025 suggests continued focus on stabilization over shareholder returns.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Channels

You're looking at how Patriot National Bancorp, Inc. (PNBK) gets its services to customers as of late 2025. It's a mix of traditional brick-and-mortar and digital access, which is typical for a regional bank focusing on its core markets.

Physical branch locations in Connecticut and New York

Patriot Bank, N.A., the subsidiary, maintains a focused physical footprint across its primary service areas. The bank has a total of eight branch offices. The concentration is heavily weighted toward Connecticut, which is where the bank is headquartered in Stamford.

The principal executive office is located at 900 Bedford Street, Stamford, Connecticut 06901. As of June 30, 2025, Total Assets for Patriot National Bancorp, Inc. stood at $929,953 thousand.

Online and mobile banking platforms

Patriot National Bancorp, Inc. supports its deposit base with modern digital access points. These platforms help deliver core deposit offerings like checking, savings, and money market accounts.

• Online banking access for account management.
• Mobile banking for on-the-go transactions.
• Remote deposit capture services offered.

The bank also offers automated clearing house transfers and bill payment services through these digital channels. As of June 30, 2025, Total Deposits were $830,857 thousand.

Automated Teller Machines (ATMs)

Access to cash and basic transactions is facilitated through physical access points beyond the main branches. The bank provides standard ATM services, plus Interactive Teller Machines (ITMs).

• Automated Teller Machines (ATMs) availability.
• Interactive Teller Machines (ITMs) deployment.

The lending portfolio as of June 30, 2025, showed Total Net Loans at $579,753 thousand.

Direct sales force for commercial and residential lending

Lending origination relies on direct engagement, especially for its commercial and specialized loan products. The bank reentered the residential mortgage business in 2024, originating loans through its Residential Mortgage Division in Jacksonville, Florida. The lending portfolio includes commercial mortgage and construction loans, commercial business loans, and SBA loans.

The total number of employees was reported as 129 as of December 31, 2024, and again as of December 4, 2025. As of November 14, 2025, the stock price was $1.11.

Programmatic interface for Digital Payments partners

This channel is critical for generating non-interest income and securing lower-cost deposits. The Digital Payments Division operates under a Program Management Agreement, processing high-volume payment transactions with program managers. This involves originating credit card loans marketed by a buyer.

The bank remains committed to enhancing this digital payments platform. As of November 14, 2025, the Market Capitalization was reported as $128M.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Customer Segments

You're looking at Patriot National Bancorp, Inc. (PNBK) and trying to map out exactly who they serve as of late 2025, based on their community bank structure and recent strategic shifts. Honestly, the customer base is defined by geography and the types of lending they focus on, which is currently being streamlined.

The primary service area for Patriot Bank, N.A., the wholly owned banking subsidiary, is concentrated in specific counties: Fairfield and New Haven Counties in Connecticut, and Westchester County, New York. This local focus dictates the core customer base.

The bank explicitly targets several key groups through its deposit and lending services:

• Small and medium-sized businesses (SMBs) in the tri-state area: This segment is served through commercial loans and Small Business Administration (SBA) lending products.
• Professionals: This group is served alongside individuals with consumer banking products.
• Municipalities and local government entities: These entities are explicitly listed as recipients of community banking services.
• General retail consumers seeking traditional banking products: This includes individuals utilizing checking, savings, money market accounts, IRAs, and health savings accounts.

The lending portfolio composition gives you a concrete look at where the bank's assets are deployed to serve these segments. As of September 30, 2025, the total gross loans stood at $588.7 million, down from $707.5 million at the end of 2024 due to a strategic de-risking effort.

Here's how the loan portfolio types map to the customer segments:

The segment of Digital Payments Program Managers/Fintech partners is addressed through the bank's focus on its Digital Payments Division. This division is a key driver of Non-Interest Income, which was $2.2 million in Q3 2025. For the first nine months of 2025, Non-Interest Income reached $7.0 million, largely attributable to this division's performance, showing a deliberate effort to diversify revenue away from pure lending risk.

The bank also caters to the High-net-worth individuals and professionals segment through its deposit offerings, including time certificates of deposit and various interest-bearing accounts, though specific wealth management product revenue figures aren't broken out in the latest reports. The recent addition of directors with experience in wealth management suggests this segment remains a strategic target for future growth.

For the Q3 2025 revenue total of $7.22 million, Interest Income from the loan portfolio accounted for approximately $5.01 million (about 69.4%), while Non-Interest Income, which includes the Digital Payments segment, made up about $2.2 million (or about 30.5%).

Finance: draft 13-week cash view by Friday.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Cost Structure

The Cost Structure for Patriot National Bancorp, Inc. (PNBK) is heavily weighted toward funding costs and provisions, typical for a commercial bank, especially one undergoing strategic balance sheet adjustments as of late 2025. The most significant direct costs relate to the interest paid to depositors and the reserving against potential loan defaults.

The explicit figures provided for the Trailing Twelve Months (TTM) ending September 30, 2025, highlight the pressure on the interest margin:

• Interest expense on deposits, TTM Sep '25: $27.57 million
• Provision for credit losses, TTM Sep '25: $9.51 million

Beyond these primary banking costs, the operational expenses, which fall under Non-Interest Expense, are substantial. Based on TTM data ending September 30, 2025, the Salaries, Compensation & Labor Expense is a major component of the overall operating cost base.

Here's a breakdown of the key cost elements where data is available:

Personnel and compensation expenses for branch and corporate staff are captured within the Salaries, Compensation & Labor Expense line item, which stood at $19.854 million for the TTM ending September 30, 2025. This figure represents the largest single component of the reported Total Non-Interest Expense of $37.239 million for the same period.

For the other required elements, specific, standalone real-life financial numbers for the TTM ending September 30, 2025, were not explicitly isolated in the latest available public filings for direct inclusion here. However, we know these costs are embedded within the broader expense categories:

• Regulatory compliance and professional service fees are a known area of focus, especially following the OCC agreement in early 2025, meaning these costs are likely elevated within General & Administrative and other non-interest expenses.
• Technology and data processing costs for digital platforms are necessary to support core deposit offerings like online and mobile banking, and are included within the Total Non-Interest Expense base.

To give you a clearer picture of the operational spend, here are the other known components contributing to the Total Non-Interest Expense:

• Occupancy Expense: $3.009 million (TTM Sep '25)
• Federal Deposit Insurance: $2.498 million (TTM Sep '25)

Finance: review the Q4 2025 expense accruals for compliance consulting by the end of January.

Patriot National Bancorp, Inc. (PNBK) - Canvas Business Model: Revenue Streams

You're looking at Patriot National Bancorp, Inc. (PNBK) and trying to map out exactly where the dollars are coming from as of late 2025. Honestly, the revenue picture is dominated by the traditional banking spread, but the Digital Payments Division is a key non-interest income driver you need to watch.

The core of Patriot National Bancorp, Inc. (PNBK) revenue still comes from the difference between what it earns on its assets and what it pays on its liabilities. For the trailing twelve months ending September 30, 2025, the Net Interest Income from traditional lending activities was reported at $17.8 million.

The overall top-line number for the same period tells a story of contraction, but the components show where the activity is. The Total TTM Revenue (Sep '25) was $17.2 million. That number is defintely a key reference point for where the bank stands after its balance sheet adjustments.

The secondary, but strategically important, revenue bucket is Non-Interest Income. The Digital Payments Division is noted as an increasing source of this revenue, often through fee-based activities like originating loans that are quickly sold to a third party. For the TTM ending September 30, 2025, the Total Non-Interest Income was $8.902 million.

Within that non-interest income, you can see specific fee-based streams contributing directly to the bank's operations. The Fees from deposit accounts and banking services, specifically Service Charges on Deposits for the TTM ending September 30, 2025, amounted to $1.877 million.

Also contributing to the interest-earning side, separate from the core loan book, is the investment portfolio. The Interest income on investments for the TTM ending September 30, 2025, was reported at $9.29 million.

Here's a quick look at the key revenue figures as of TTM September 30, 2025, in millions of USD:

You should also note the breakdown of the interest income components for context, even though the prompt focused on the investment portion:

• Interest Income on Loans (TTM Sep '25): $39 million
• Interest Income on Securities (TTM Sep '25): $0.162 million

If onboarding takes 14+ days, churn risk rises, and for Patriot National Bancorp, Inc. (PNBK), any drag on fee income from the Digital Payments Division will be felt immediately given the tight overall revenue picture.

Finance: draft 13-week cash view by Friday.