Shareholders' Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Shareholders’ Equity

Shareholders’ Equity

Common Stock

On 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 3,360,000 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. Additionally, the Company reduced the par value of its common stock from $2 to $0.01 per share, increased the number of its authorized common shares to 100,000,000.

Pursuant to its Operating Agreement, on March 31, 2021, Holdings completed a pro-rata in-kind distribution of shares of restricted common stock of Patriot. Following these distributions, Holdings no longer owns any shares of Patriot.

Dividends

The Company did not pay any dividends for the year ended December 31, 2022, 2021, and 2020, and has suspended dividend payments.

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, 2022.

(Net income in thousands)	Year ended December 31,
	2022		2021		2020
Basic earnings (loss) per share:
Net income (loss) attributable to Common shareholders	$	6,161	$	5,094	$	(3,819)
Divided by:
Weighted average shares outstanding	3,957,097		3,946,384		3,934,886
Basic earnings (loss) per common share	$	1.56	$	1.29	$	(0.97)
Diluted earnings (loss) per share:
Net income (loss) attributable to Common shareholders	$	6,161	$	5,094	$	(3,819)
Weighted average shares outstanding	3,957,097		3,946,384		3,934,886
Effect of potentially dilutive restricted common shares	5,801		6,270		—		(1)
Divided by:
Weighted average diluted shares outstanding	3,962,898		3,952,654		3,934,886
Diluted earnings (loss) per common share	$	1.55	$	1.29	$	(0.97)

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