Patriot National Bancorp Issues $10M Subordinated Notes Due 2036

What Happened
Patriot National Bancorp, Inc. (PNBK) announced on Sept. 18, 2026 that it entered into purchase agreements to issue and sell $10.0 million aggregate principal of 8.5% Fixed-to-Floating Rate Subordinated Notes due Sept. 30, 2036. The Notes pay a fixed 8.5% annual rate (semi‑annual) through Sept. 30, 2031, then reset quarterly to three‑month SOFR (floored at 0%) plus 416 basis points, payable quarterly thereafter. The Company may redeem the Notes, in whole or in part, on or after Sept. 30, 2031 (subject to any required regulatory approval).

Key Details

• Issue amount: $10.0 million in aggregate principal of subordinated notes.
• Maturity: September 30, 2036.
• Interest: 8.5% fixed annually through 9/30/2031 (semi‑annual); thereafter quarterly reset = 3‑month SOFR (min 0%) + 416 bps (quarterly).
• Subordination and security: Unsecured, subordinated obligations of the company only; junior to current and future senior indebtedness; not guaranteed by subsidiaries.
• Other: Not convertible; not redeemable at holder option; intended to qualify as Tier 2 regulatory capital. Placement agent: Performance Trust Capital Partners, LLC.

Why It Matters
This issuance raises $10 million of subordinated capital intended to strengthen Patriot National Bancorp’s regulatory capital base (Tier 2). The notes increase the company’s long‑term funding and capital cushion but are junior to senior debt and carry relatively high fixed interest through 2031, moving to a floating SOFR‑based rate thereafter. Investors should note the notes are unsecured, cannot be converted, and that issuer redemption is subject to regulatory approval when required.