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Note 11 - Subsequent Event
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Subsequent Events [Text Block]
Note
11:
     Subsequent Events     
 
Dividend
 
On
July 17, 2017,
the Company announced its intention to begin making quarterly cash dividend payments. The
first
dividend of
$0.01
per share was announced for shareholders of record as of
July 24, 2017
with a payment date of
August 1, 2017.
 
Merger Agreement
 
 
On
August 1, 2017,
a definitive merger agreement (“Merger Agreement”) was entered into by and among the Company, Prime Bank, a Connecticut bank headquartered in Orange, CT (“Prime Bank”) (PMHV:US) and a stockholder representative of Prime Bank. Pursuant to the Merger Agreement, Prime Bank will merge into Patriot Bank and existing stockholders of Prime Bank will receive aggregate cash consideration (“Merger Consideration”) equal to
115%
of Prime Bank’s tangible book value as of the closing date which is anticipated to be in the
fourth
quarter
2017.
Moreover, all outstanding stock options of Prime Bank will be settled by cash payment in an amount equal to the amount by which the per share Merger Consideration exceeds the exercise price of each stock option.
 
The acquisition will enable Patriot to expand its consumer and small business relationships, lending operations, and community presence, all of which will improve key operating metrics. This transaction is subject to customary regulatory approvals and approval of the shareholders of Prime Bank. Upon closing, the acquisition will result in a new Patriot branch located in the Town of Orange, New Haven County, Connecticut.
 
As a result of the proximity of the Merger Agreement to the date these consolidated financial statements are available to be issued, Patriot is still evaluating the estimated fair values of the assets to be acquired and the liabilities to be assumed. Accordingly, the amount of any goodwill and other intangible assets to be recognized in the connection with this transaction, as well as acquisition costs incurred and expected to be incurred, are also yet to be determined.
 
The effect of the merger is expected to be reflected in the Patriot’s results beginning with the
fourth
quarter of
2017.