Patriot Bank recovers nearly $2.8 million on Seaboard Realty loan
Patriot National Bancorp Inc. has received payment of nearly $2.8 million from its fidelity insurer in connection with a claim of loss submitted by its bank operating subsidiary, Patriot Bank, headquartered in Stamford.
The payment stems from a $3 million bridge loan provided by Patriot to Seaboard Realty LLC, in conjunction with the construction of a Marriott Residence Inn on Atlantic Street in Stamford. Seaboard, along with its affiliates, owned and was constructing multiple high-profile properties in the city’s downtown, including the Courtyard Marriott on Summer Street, the 1 Atlantic St. office building and the Park Square residential development on Summer Street.
Seaboard’s subsequent bankruptcy, coupled with uncertainty of collection, led to the bank’s loan loss as reported on Form 8-K on Sept. 19, 2016. At that time, the bank was unable to obtain confirmation from its insurer that any amounts would be covered under its policy.