STAMFORD – The parent company of Patriot Bank announced this week that it has terminated its deal to merge with another company, a deal that was intended to create “America’s largest digital bank.”

Stamford-based Patriot National Bancorp announced plans last November to acquire, through a “reverse subsidiary merger”, American Challenger Development Corp., which was formed in January 2020 to create a new bank national digital company headquartered in Stamford. The transaction had progressed through the regulatory process, with Patriot announcing July 6 conditional approval from the Federal Office of the Comptroller of the Currency.

“The parties have mutually determined that all closing conditions of the merger agreement cannot be satisfied under the current structure and agreement,” Patriot said in a press release. “While the parties remain in active discussions regarding a modified transaction, it is uncertain whether a new agreement can be reached.”

The termination of the merger agreement was mutually agreed to by the companies and unanimously approved by their boards of directors, according to the statement.

“Pursuant to the parties’ termination and mutual release agreement, the parties have agreed to hold harmless from any and all claims relating to or arising out of the merger agreement or the transactions contemplated by it,” the statement added.


In its own press release, American Challenger said it was considering selling the company and had hired Citi as a strategic advisor in the process.

Following the announcement, shares of Patriot closed Thursday at around $11.37, slipping nearly 9% from Wednesday. They hit a 52-week high of $18 and a 52-week low of $8.52.

Over the past year and a half, Patriot included one of many Connecticut banks to announce merger or acquisition plans. In April, M&T Bank completed its acquisition of Bridgeport-based People’s United Bank, while Stamford-based Webster Bank completed its combination with Sterling National Bank in February.

There are Patriot branches in Darien, Fairfield, Greenwich, Milford, Norwalk, Orange, Stamford, Westport, as well as Scarsdale, NY The bank also operates “express banking locations” at Housatonic Community College in Bridgeport, downtown city ​​of New Haven and at Westfield Trumbull Mall.

For the first quarter of 2022, Patriot ended with total assets of approximately $975 million, net loans of approximately $764 million, and total deposits of approximately $780 million.

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