Note

16.

Shareholders

Equity

Common Stock

December 16, 2009,

the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with PNBK Holdings, LLC, a limited liability company controlled by Michael Carrazza (“Holdings”). Pursuant to the Securities Purchase Agreement, on

October 15, 2010,

the Company issued

3.36

million shares of common stock to Holdings at

$15.00

per share, for an aggregate issuance value of

$50.4

million. The shares issued to Holdings represented

87.6%

of the Company's then issued and outstanding common stock. In connection with the equity interest obtained by Holdings, Michael Carrazza became Patriot's Chairman of the Board and nominees of Holdings replaced certain directors and officers who resigned. Holdings transferred

840,000

shares to its investors in

January 2018,

25,836

shares in

October 2020,

and

256,629

shares in

January 2021.

Holdings currently owns

56.7%

of the Company's issued and outstanding common stock.

Additionally, the Company reduced the par value of its common stock from

$0.01

per share, increased the number of its authorized common shares to

100

million, and entered into a Registration Rights Agreement with Holdings. The Registration Rights Agreement provides Holdings with customary demand, shelf, and piggyback registration rights.

Dividends

The Company did

not

pay any dividends for the year ended

December 31, 2020

and has temporarily suspended dividend payments pending resolution of the economic uncertainties associated with the Coronavirus pandemic. For the year ended

December

31,

2019

and

2018,

the Company paid cash dividends of

$.01

per share of common stock, or an aggregate of

$155,000

and

$154,000,

respectively.

Earnings per Share

The Company is required to present basic earnings per share and diluted earnings per share in its consolidated statements of operations. Basic earnings per share amounts are computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflects additional common shares that would have been outstanding if potentially dilutive common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that

may

be issued by the Company relate to the outstanding unvested RSAs granted to directors and employees. The dilutive effect resulting from these potential shares is determined using the treasury stock method. The Company is also required to provide a reconciliation of the numerator and denominator used in the computation of both basic and diluted earnings per share.

The following is a summary of the computation of basic and diluted earnings per share for each of the years in the

three

-year period ended

December

31,

2020.

(Net income in thousands)	Year ended December 31,
	2020			2019			2018
Basic (loss) earnings per share:
Net (loss) income attributable to Common shareholders	$	(3,819	)	$	(2,817	)	$	3,196
Divided by:
Weighted average shares outstanding		3,934,886			3,921,783			3,904,052

Basic (loss) earnings per common share	$	(0.97	)	$	(0.72	)	$	0.82

Diluted (loss) earnings per share:
Net (loss) income attributable to Common shareholders		(3,819	)		(2,817	)		3,196

Weighted average shares outstanding		3,934,886			3,921,783			3,904,052

Effect of potentially dilutive restricted common shares		-	(1)		-	(2)		11,573

Divided by:
Weighted average diluted shares outstanding		3,934,886			3,921,783			3,915,625

Diluted (loss) earnings per common share	$	(0.97	)	$	(0.72	)	$	0.82

( 1 )	The weighted average diluted shares outstanding does not include 3,039 anti-dilutive restricted common shares for the year ended December 31, 2020.
( 2 )	The weighted average diluted shares outstanding does not include 3,555 anti-dilutive restricted common shares for the year ended December 31, 2019.