Analyst Summary
- Amendment to 8.5% Senior Notes Due 2026 extends the grace period for interest payment to April 1, 2025.
- Net loss expected to be approximately $9.5 million, or $(2.40) loss per share for the quarter ended December 31, 2024.
- Book value per share is expected to be approximately $1.07 as of December 31, 2024.
- Financial results impacted by an expected provision for credit losses of approximately $7.7 million related to commercial real estate loans.
- Company is evaluating strategic alternatives, including a potential capital raise of approximately $60 million.
- Proceeds from potential transaction to be used for capital injection into Patriot Bank, interest payments on Notes, and maintaining cash reserves.
Potential Implications
Company Performance
- Potential capital raise could improve the financial stability of Patriot Bank.
- Use of proceeds to make scheduled interest payments could prevent default on the Notes.
- Net loss and decreased book value per share indicate potential financial difficulties.
Stock Price
- Potential capital raise could dilute existing shareholders.
- Negative financial results could negatively impact the stock price.
- Strategic alternatives evaluation could create uncertainty in the market.