Hartford Business Journal

HARTFORDBUSINESS.COM | FEBRUARY 9, 2026 9 away from legacy consumer and small-business loan programs and instead launched three lending lines focused on commercial real estate, high-net-worth credit lines and asset-backed rediscount loans — short-term loans secured by existing financial assets. The bank is also expanding into more specialized financing, offering borrowing facilities backed by private credit and other alternative investment assets. A growing fintech role Another pillar of the strategy is institutional banking and payments services for fintech firms and non-de- pository financial institutions. Sugarman said that business has become Patriot's largest source of non-interest income, with annualized digital payments revenue up more than 25% since the recapitalization. Patriot provides banking infra- structure, payments processing and related services to financial technology companies, allowing it to generate fee income beyond tradi- tional lending spreads, he noted. John Carusone, president of the Hart- ford-based Banking Analysis Center, said Patriot has never estab- lished itself as a consistent, sustain- able competitor in southern Fairfield County's community banking market. He said the bank's new focus continues to place it in direct compe- tition for wealthy clients in Connecti- cut's Gold Coast and other markets where large national and global banks already have a strong presence. That's a challenge the bank will need to confront, Carusone said. "It's a daunting task for any finan- cial institution in Fairfield County because there are so many highly qualified, financially well-muscled banks and advisory institutions in that geographical area," Carusone said. Sugarman acknowledged the competitive landscape but said Patri- ot's smaller size and focused model will allow it to serve clients who may feel overlooked at larger institutions. Beyond Connecticut Meantime, Patriot Bank's strategy extends beyond Connecticut. The company plans to open a client- facing office in Beverly Hills, Cali- fornia, in the first quarter. Management is also evaluating potential offices in Florida and Texas to serve what the bank describes as a mobile, high-net-worth client base. Sugarman said the goal is not to build a sprawling national branch network, but to establish offices in select markets where clients live and do business. He said his prior leadership role at Banc of California gave him familiarity with the Beverly Hills market and relationships with high-net-worth clients who maintain business and personal ties to the tri-state area. To support that model, Patriot has implemented a digital-banking system designed for clients who split time between multiple states. The bank, whose stock price has ranged between $1 and $2 over the past year, does not expect to raise additional common equity in the near term, Sugarman said, noting that he believes its current capital base could support roughly $2 billion in assets over the next two years, assuming improved earnings. He said Patriot returned to profit- ability late in 2025, may pursue acqui- sitions over time, and is maintaining a sizable liquidity cushion, with more than 30% of its balance sheet in cash and liquid securities. "We have a lot of excess cash to lend to our clients, and to the extent that one of our counterparties stops growing or begins to shrink, we have the ability to manage our balance sheet and have the liquidity to deal with that," he said. "If we execute appropriately, you'll see meaningful growth." John Carusone SCAN HERE FOR TICKETS AND DETAILS OR VISIT HARTFORDBUSINESS.COM/ HBJ-EVENTS SUPPORTING SPONSOR MAJOR SPONSOR Note: Assets and deposits are as of Sept. 30 of each year. | Source: Federal Deposit Insurance Corp. PATRIOT BANK ASSETS & DEPOSITS $0 $200M $400M $600M $800M $1B $1.2B 2019 2020 2021 2022 2023 2024 2025 ASSETS DEPOSITS

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