Patriot National Bancorp, Inc. entered into Subordinated Note Purchase Agreements on September 18, 2026, with certain qualified institutional buyers. Under these agreements, the company issued and sold $10.0 million in aggregate principal amount of 8.5% Fixed to Floating Rate Subordinated Notes due in 2036.
The notes are scheduled to mature on September 30, 2036. For the first five years, from September 30, 2021, to September 30, 2031, the notes bear interest at a fixed annual rate of 8.5%, payable semi-annually in arrears. Beginning on September 30, 2031, the interest rate will reset quarterly to the then current three-month Secured Overnight Financing Rate (SOFR) plus 416 basis points. If the three-month SOFR is less than zero, it shall be deemed to be zero for calculation purposes.
The company retains the right to redeem the notes, in whole or in part, at any time on or after September 30, 2031. Redemption is also permitted in whole, but not in part, upon the occurrence of certain events. Any redemption is subject to prior regulatory approval if required. The notes are unsecured and subordinated obligations of the company only, ranking junior to the company’s current and future senior indebtedness. They are intended to qualify as Tier 2 capital for regulatory capital purposes.
Performance Trust Capital Partners, LLC served as the sole placement agent, while Windels Marx Lane & Mittendorf, LLP advised Patriot National Bancorp. The form of Purchase Agreement and Note are attached as Exhibits 10.1 and 4.1, respectively.
