----

**FORM          10-Q**

| For                    the Quarter Ended September 30, 2007 | Commission                    file number 000-29599 |
|-------------------------------------------------------------|-----------------------------------------------------|

| Connecticut                                       | 06-1559137                                                 |
|---------------------------------------------------|------------------------------------------------------------|
|  (State                    of incorporation) | (I.R.S.                    Employer Identification Number) |

----

|                        |                                                                           | Page   |
|-----------------------------|--------------------------------------------------------------------------------|--------|
|                        |                                                                           |   |
| Part                    I   | FINANCIAL                    INFORMATION                                       |   |
|                        |                                                                           |   |
| Item                    1.  | Consolidated                    Financial Statements                           | 3      |
|                        |                                                                           |   |
| Item                    2.  | Management’s                    Discussion and Analysis of               |   |
|                        | Financial                    Condition and Results of Operations               | 17     |
|                        |                                                                           |   |
| Item                    3.  | Quantitative                    and Qualitative Disclosures about Market Risk  | 30     |
|                        |                                                                           |   |
| Item                    4.  | Controls                    and Procedures                                     | 33     |
|                        |                                                                           |   |
| Part                    II  | OTHER                    INFORMATION                                           |   |
|                        |                                                                           |   |
| Item                    1A. | Risk                    Factors                                                | 33     |
|                        |                                                                           |   |
| Item                    2.  | Unregistered                    Sales of Equity Securities and Use of Proceeds | 33     |
|                        |                                                                           |   |
| Item                    6.  | Exhibits                                                                       | 34     |

----

**PART          I - FINANCIAL INFORMATION**

**Item          1.     Consolidated Financial          Statements**

**PATRIOT          NATIONAL BANCORP, INC.**

**CONSOLIDATED          BALANCE SHEETS**

|                                                                                                                                                          |  September                      30,                                                                                                                                  |   | December                      31,                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                          | 2007                                                                                                                                                                      |   | 2006                                                                                                                                                                      |
|                                                                                                                                                          | (Unaudited)                                                                                                                                                               |   |                                                                                                                                                                      |
| **ASSETS**                                                                                                                                                    |                                                                                                                                                                      |   |                                                                                                                                                                      |
| Cash                      and due from banks                                                                                                                  |  $            7,019,079                                                                                  |   |  $            3,868,670                                                                                  |
| Federal                      funds sold                                                                                                                       |              39,000,000                                                                                  |   |              27,000,000                                                                                  |
| Short                      term investments                                                                                                                   |                   584,732                                                       |   |              24,605,869                                                                                  |
| **     Cash                      and cash equivalents**                                                                              | **           46,603,811**                                                                                          |   | **           55,474,539**                                                                                          |
|                                                                                                                                                          |                                                                                                                                                                      |   |                                                                                                                                                                      |
| Available                      for sale securities (at fair value)                                                                                            |              60,695,770                                                                                  |   |              67,093,135                                                                                  |
| Federal                      Reserve Bank stock                                                                                                               |                1,911,700                                                                       |   |                1,911,700                                                                       |
| Federal                      Home Loan Bank stock                                                                                                             |                2,156,100                                                                       |   |                1,217,200                                                                       |
| Loans                      receivable (net of allowance for loan losses:  2007                      $5,597,620;                                     |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      2006                      $5,630,432)                                                                                           |            641,426,903                                                                                             |   |            506,884,155                                                                                             |
| Accrued                      interest receivable                                                                                                              |                4,530,248                                                                       |   |                3,542,173                                                                       |
| Premises                      and equipment                                                                                                                   |                6,965,507                                                                       |   |                3,690,861                                                                       |
| Deferred                      tax asset, net                                                                                                                  |                2,632,910                                                                       |   |                2,914,562                                                                       |
| Goodwill                      and other intangible assets                                                                                                     |                1,473,719                                                                       |   |                1,487,651                                                                       |
| Other                      assets                                                                                                                             |                1,090,746                                                                       |   |                1,766,819                                                                       |
| **          Total                      assets**                                                             | ** $     769,487,414**                                                                                                                      |   | ** $     645,982,795**                                                                                                                      |
|                                                                                                                                                          |                                                                                                                                                                      |   |                                                                                                                                                                      |
| **LIABILITIES                      AND SHAREHOLDERS' EQUITY**                                                                                                 |                                                                                                                                                                      |   |                                                                                                                                                                      |
| **Liabilities**                                                                                                                                               |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      Deposits:                                                                                                                       |                                                                                                                                                                      |   |                                                                                                                                                                      |
|           Noninterest                      bearing deposits                                                 |  $          57,690,185                                                                                             |   |  $          56,679,836                                                                                             |
|           Interest                      bearing deposits                                                    |            598,812,160                                                                                             |   |            504,771,828                                                                                             |
| **               Total                      deposits**                             | **        656,502,345**                                                                                                           |   | **        561,451,664**                                                                                                           |
|      Federal                      Home Loan Bank borrowings                                                                          |              35,000,000                                                                                  |   |                8,000,000                                                                       |
|      Junior                      subordinated debt owed to unconsolidated trust                                                      |                8,248,000                                                                       |   |                8,248,000                                                                       |
|      Accrued                      expenses and other liabilities                                                                     |                3,742,451                                                                       |   |                3,999,786                                                                       |
| **               Total                      liabilities**                          | **        703,492,796**                                                                                                           |   | **        581,699,450**                                                                                                           |
|                                                                                                                                                          |                                                                                                                                                                      |   |                                                                                                                                                                      |
| **Shareholders'                      equity**                                                                                                                 |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      Preferred                      stock:  1,000,000 shares authorized; no shares                      issued             |                             - |   |                             - |
|      Common                      stock, $2 par value: 60,000,000 shares authorized; shares                                           |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      issued                      and outstanding:  2007 - 4,746,844;  2006 -                      4,739,494      |                9,493,688                                                                       |   |                9,478,988                                                                       |
|      Additional                      paid in capital                                                                                 |              49,549,119                                                                                  |   |              49,463,307                                                                                  |
|      Retained                      earnings                                                                                          |                7,173,235                                                                       |   |                6,022,012                                                                       |
|      Accumulated                      other comprehensive income - net unrealized                                                    |                                                                                                                                                                      |   |                                                                                                                                                                      |
|           loss                      on available for sale securities, net of taxes                          |                  (221,424)                                                           |   |                  (680,962)                                                           |
| **               Total                      shareholders' equity**                 | **           65,994,618**                                                                                          |   | **           64,283,345**                                                                                          |
| **               Total                      liabilities and shareholders' equity** | ** $     769,487,414**                                                                                                                      |   | ** $     645,982,795**                                                                                                                      |

----

**PATRIOT          NATIONAL BANCORP, INC.**

**CONSOLIDATED          STATEMENTS OF INCOME**

**(Unaudited)**

|                                                                             |   | **Three                      Months Ended** |           |         | **Nine                      Months Ended** |          |
|----------------------------------------------------------------------------------|--------|---------------------------------------------|----------------|--------------|--------------------------------------------|---------------|
|                                                                             |   | **September                      30,**      |           |         | **September                      30,**     |          |
|                                                                             |   | **2007**                                    |      | **2006**     |                                  | **2007**      |    | **2006** |   |
| Interest                      and Dividend Income                                |   |                                        |           |         |                                       |          |   |   |   |   |   |   |
| Interest                      and fees on loans                                  |   | $                                           | 12,279,795     |         |                                       | $             | 8,962,195 |   |   | $ | 33,886,658 |   |   | $ | 24,472,546 |   |
| Interest                      and dividends                                      |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
|      on                      investment securities      |   |                                        | 872,820        |         |                                       |          | 743,068 |   |   |   | 3,043,623 |   |   |   | 2,290,737 |   |
| Interest                      on federal funds sold                              |   |                                        | 145,539        |    |                                       | 151,591       |    |   | 926,497 |    |   | 286,255 |   |
| **Total                      interest and dividend income**                      |   | ** **                                  | **13,298,154** |    | ** **                                 | **9,856,854** |    | ** ** | **37,856,778** |    | ** ** | **27,049,538** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Interest                      Expense                                            |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Interest                      on deposits                                        |   |                                        | 6,843,693      |         |                                       |          | 4,152,620 |   |   |   | 19,434,408 |   |   |   | 10,834,245 |   |
| Interest                      on Federal Home Loan Bank borrowings               |   |                                        | 45,735         |         |                                       |          | 491,319 |   |   |   | 166,783 |   |   |   | 1,099,124 |   |
| Interest                      on subordinated debt                               |   |                                        | 174,941        |         |                                       |          | 177,013 |   |   |   | 519,292 |   |   |   | 497,680 |   |
| Interest                      on other borrowings                                |   |                                        | 2,144          |    |                                       | 648           |    |   | 2,144 |    |   | 4,798 |   |
| **Total                      interest expense**                                  |   | ** **                                  | **7,066,513**  |    | ** **                                 | **4,821,600** |    | ** ** | **20,122,627** |    | ** ** | **12,435,847** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Net                      interest income**                                     |   | ** **                                  | **6,231,641**  |         |                                       | ** **    | **5,035,254** |   |   | ** ** | **17,734,151** |   |   | ** ** | **14,613,691** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Provision                      for Loan Losses                                   |   |                                        | -              |    |                                       | 116,500       |    |   | - |    |   | 1,040,000 |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Net                      interest income after**                               |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **     provision                      for loan losses** |   | ** **                                  | **6,231,641**  |    | ** **                                 | **4,918,754** |    | ** ** | **17,734,151** |    | ** ** | **13,573,691** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Noninterest                      Income                                          |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Mortgage                      brokerage referral fees                            |   |                                        | 133,449        |         |                                       |          | 373,299 |   |   |   | 638,160 |   |   |   | 1,052,937 |   |
| Loan                      origination & processing fees                      |   |                                        | 57,131         |         |                                       |          | 64,862 |   |   |   | 163,375 |   |   |   | 218,712 |   |
| Fees                      and service charges                                    |   |                                        | 213,416        |         |                                       |          | 166,749 |   |   |   | 588,797 |   |   |   | 455,159 |   |
| Gain                      on redemption of investment securities                 |   |                                        | -              |         |                                       |          | - |   |   |   | 5,000 |   |   |   | - |   |
| Gain                      on sale of other real estate owned                     |   |                                        | 86,473         |         |                                       |          | - |   |   |   | 86,473 |   |   |   | - |   |
| Other                      income                                                |   |                                        | 61,063         |         |                                       |          | 27,653 |   |   |   | 181,118 |   |   |   | 117,349 |   |
| **Total                      noninterest income**                                |   | ** **                                  | **551,532**    |         |                                       | ** **    | **632,563** |   |   | ** ** | **1,662,923** |   |   | ** ** | **1,844,157** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Noninterest                      Expenses                                        |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Salaries                      and benefits                                       |   |                                        | 3,005,582      |         |                                       |          | 2,795,341 |   |   |   | 9,181,398 |   |   |   | 7,709,120 |   |
| Occupancy                      and equipment expense, net                        |   |                                        | 1,148,430      |         |                                       |          | 694,925 |   |   |   | 3,108,686 |   |   |   | 2,030,499 |   |
| Data                      processing and other outside services                  |   |                                        | 458,378        |         |                                       |          | 293,358 |   |   |   | 1,358,612 |   |   |   | 1,100,622 |   |
| Professional                      services                                       |   |                                        | 128,671        |         |                                       |          | 125,269 |   |   |   | 354,876 |   |   |   | 373,227 |   |
| Advertising                      and promotional expenses                        |   |                                        | 174,908        |         |                                       |          | 152,906 |   |   |   | 582,586 |   |   |   | 448,772 |   |
| Loan                      administration and processing expenses                 |   |                                        | 55,538         |         |                                       |          | 46,286 |   |   |   | 146,512 |   |   |   | 126,759 |   |
| Other                      real estate operations                                |   |                                        | (30,687        | )            |                                       |          | - |   |   |   | (48,243 | ) |   |   | - |   |
| Other                      noninterest expenses                                  |   |                                        | 631,628        |    |                                       | 382,594       |    |   | 1,784,154 |    |   | 1,135,477 |   |
| **Total                      noninterest expenses**                              |   | ** **                                  | **5,572,448**  |    | ** **                                 | **4,490,679** |    | ** ** | **16,468,581** |    | ** ** | **12,924,476** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Income                      before income taxes**                              |   | ** **                                  | **1,210,725**  |         |                                       | ** **    | **1,060,638** |   |   | ** ** | **2,928,493** |   |   | ** ** | **2,493,372** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| Provision                      for Income Taxes                                  |   |                                        | 470,000        |    |                                       | 390,000       |    |   | 1,137,000 |    |   | 916,000 |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Net                      income**                                              |   | **$**                                       | **740,725**    |    | **$**                                      | **670,638**   |    | **$** | **1,791,493** |    | **$** | **1,577,372** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Basic                      income Per Share**                                  |   | **$**                                       | **0.16**       |    | **$**                                      | **0.20**      |    | **$** | **0.38** |    | **$** | **0.49** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Diluted                      income Per Share**                                |   | **$**                                       | **0.16**       |    | **$**                                      | **0.20**      |    | **$** | **0.38** |    | **$** | **0.48** |   |
|                                                                             |   |                                        |           |         |                                       |          |   |   |   |   |   |   |   |   |   |   |
| **Dividends                      per share**                                     |   | **$**                                       | **0.045**      |    | **$**                                      | **0.045**     |    | **$** | **0.135** |    | **$** | **0.130** |   |

----

**PATRIOT          NATIONAL BANCORP, INC**

**CONSOLIDATED          STATEMENTS OF COMPREHENSIVE INCOME**

**(Unaudited)**

|                                                                                |   | Three                      Months Ended              |          |   | Nine                      Months Ended               |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------------------------|---------------|--------|------------------------------------------------------|--------|
|                                                                                |   | September                      30,    |          |   | September                      30,    |   |
|                                                                                |   | 2007                                                 |     | 2006   |                                                 |   | 2007 |    | 2006 |   |
|                                                                                |   |                                                 |          |   |                                                 |   |   |   |   |   |   |   |
| Net                      income                                                     |   | $                                                    | 740,725       |   |                                                 | $      | 670,638 |   |   | $ | 1,791,493 |   |   | $ | 1,577,372 |   |
|                                                                                |   |                                                 |          |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                      holding gains on securities:                        |   |                                                 |          |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized                      holding gains arising |   |                                                 |          |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|      during                      the period, net of taxes  |   |                                                 | 297,166       |   |                                                 |   | 520,829 |   |   |   | 459,538 |   |   |   | 249,294 |   |
|                                                                                |   |                                                 |          |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Comprehensive                      income**                                       |   | **$**                                                | **1,037,891** |   |                                                 | **$**  | **1,191,467** |   |   | **$** | **2,251,031** |   |   | **$** | **1,826,666** |   |

----

**PATRIOT          NATIONAL BANCORP, INC**

**CONSOLIDATED          STATEMENTS OF SHAREHOLDERS’ EQUITY**

**(Unaudited)**

|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         | Accumulated   |      |         |   |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-----------|--------------|--------|-----------|--------------|------------|------------|--------------|------------|-----------|--------------|---------------|-----------|--------------|--------|------------|
|                                                                                                                                                                      |   |                             |      |         |   |      |         | Additional |       |         |       |      |         | Other         |      |         |   |       |
|                                                                                                                                                                      |   | Number                        of |      |         | Common |      |         | Paid-In    |       |         | Retained   |      |         | Comprehensive |      |         |   |       |
|                                                                                                                                                                      |   | Shares                           |      |         | Stock  |      |         | Capital    |       |         | Earnings   |      |         | Loss          |      |         | Total  |       |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |
| **Nine                        months ended September 30, 2006**                                                                                       |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |
| Balance                        at December 31, 2005                                                                                                                       |   |                             | 3,230,649 |         |   | $         | 6,461,298    |       |       | $            | 21,709,224 |      |         | $             | 4,308,242 |         |   | $          | (1,104,149 | ) |   | $ | 31,374,615 |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Comprehensive                        income                                                                                                                               |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
|   Net                        income                                                                                                                             |   |                             |      |         |   |      |         |       |       |         |       |      |         |          | 1,577,372 |         |   |       |   |   |   |   | 1,577,372 |   |
|   Unrealized                        holding gain on available for                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |
|      sale                        securities, net of taxes                                                                                        |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       | 249,294 |   |   |   | 249,294 |   |
|                Total                        comprehensive income      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   | 1,826,666  |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Dividends                                                                                                                                                                 |   |                             |      |         |   |      |         |       |       |         |       |      |         |          | (488,107  | )            |   |       |   |   |   |   | (488,107 | ) |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Issuance                        of capital stock                                                                                                                          |   |                             | 1,508,845 |    |   | 3,017,690 |    |       | 27,598,725 |    |       |      |    |          |      |    |   | 30,616,415 |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Balance,                        September 30, 2006                                                                                                                        |   |                             | 4,739,494 |    | $      | 9,478,988 |    | $          | 49,307,949 |    | $          | 5,397,507 |    | $             | (854,855  | )            |   | $          | 63,329,589 |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| **Nine                        months ended September 30, 2007**                                                                                       |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |
| Balance                        at December 31, 2006                                                                                                                       |   |                             | 4,739,494 |         |   | $         | 9,478,988    |       |       | $            | 49,463,307 |      |         | $             | 6,022,012 |         |   | $          | (680,962 | ) |   | $ | 64,283,345 |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Comprehensive                        income                                                                                                                               |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
|   Net                        income                                                                                                                             |   |                             |      |         |   |      |         |       |       |         |       |      |         |          | 1,791,493 |         |   |       |   |   |   |   | 1,791,493 |   |
|   Unrealized                        holding gain on available for                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |
|      sale                        securities, net of taxes                                                                                        |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       | 459,538 |   |   |   | 459,538 |   |
|                Total                        comprehensive income      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   | 2,251,031  |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Dividends                                                                                                                                                                 |   |                             |      |         |   |      |         |       |       |         |       |      |         |          | (640,270  | )            |   |       |   |   |   |   | (640,270 | ) |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Issuance                        of capital stock                                                                                                                          |   |                             | 7,350     |    |   | 14,700    |    |       | 85,812     |    |       |      |    |          |      |    |   | 100,512    |   |
|                                                                                                                                                                      |   |                             |      |         |   |      |         |       |       |         |       |      |         |          |      |         |   |       |   |   |   |   |   |   |
| Balance,                        September 30, 2007                                                                                                                        |   |                             | 4,746,844 |    | $      | 9,493,688 |    | $          | 49,549,119 |    | $          | 7,173,235 |    | $             | (221,424  | )       | $      | 65,994,618 |   |

----

**PATRIOT          NATIONAL BANCORP, INC.**

**CONSOLIDATED          STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                             |   | Nine                      Months Ended               |             |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|------------------|
|                                                                                                             |   | September                      30,    |             |
|                                                                                                             |   | 2007                                                 |        | 2006 |   |
|                                                                                                             |   |                                                 |             |   |   |   |
| Cash                      Flows from Operating Activities                                                        |   |                                                 |             |   |   |   |
| Net                      income                                                                                  |   | $                                                    | 1,791,493        |   |   | $ | 1,577,372 |   |
| Adjustments                      to reconcile net income to net cash                                             |   |                                                 |             |   |   |   |   |   |
| provided                      by operating activities:                                                           |   |                                                 |             |   |   |   |   |   |
| Amortization                      and accretion of investment premiums and discounts, net                        |   |                                                 | 142,909          |   |   |   | 181,110 |   |
| Provision                      for loan losses                                                                   |   |                                                 | -                |   |   |   | 1,040,000 |   |
| Gain                      on sale of other real estate owned                                                     |   |                                                 | (86,473          | ) |   |   |   |   |
| Gain                      on redemption of investment security                                                   |   |                                                 | (5,000           | ) |   |   | - |   |
| Amortization                      of core deposit intangible                                                     |   |                                                 | 13,932           |   |   |   | - |   |
| Depreciation                      and amortization                                                               |   |                                                 | 867,438          |   |   |   | 461,119 |   |
| Loss                      on disposal of bank premises and equipment                                             |   |                                                 | 2,896            |   |   |   | - |   |
| Payment                      of fees to directors in common stock                                                |   |                                                 | 49,961           |   |   |   | 24,928 |   |
| Changes                      in assets and liabilities:                                                          |   |                                                 |             |   |   |   |   |   |
|      Increase                      in deferred loan fees                                |   |                                                 | 284,154          |   |   |   | 348,296 |   |
|      Increase                      in accrued interest receivable                       |   |                                                 | (988,075         | ) |   |   | (756,829 | ) |
|      Increase                      in other assets                                      |   |                                                 | (158,269         | ) |   |   | (16,015 | ) |
|      (Decrease)                      increase in accrued expenses and other liabilities |   |                                                 | (257,665         | ) |   |   | 716,689 |   |
| **     Net                      cash provided by operating activities**                 |   | ** **                                           | **1,657,301**    |   |   | ** ** | **3,576,670** |   |
|                                                                                                             |   |                                                 |             |   |   |   |   |   |
| Cash                      Flows from Investing Activities                                                        |   |                                                 |             |   |   |   |   |   |
| Purchase                      of available for sale securities                                                   |   |                                                 | (4,985,925       | ) |   |   | - |   |
| Principal                      repayments on available for sale securities                                       |   |                                                 | 9,981,571        |   |   |   | 10,152,884 |   |
| Proceeds                      from redemptions of available for sale securities                                  |   |                                                 | 2,005,000        |   |   |   | - |   |
| Purchase                      of Federal Reserve Bank Stock                                                      |   |                                                 | -                |   |   |   | (650 | ) |
| Purchase                      of Federal Home Loan Bank Stock                                                    |   |                                                 | (938,900         | ) |   |   | (1,430,500 | ) |
| Net                      increase in loans                                                                       |   |                                                 | (134,826,902     | ) |   |   | (92,980,090 | ) |
| Purchase                      of bank premises and equipment                                                     |   |                                                 | (4,144,980       | ) |   |   | (657,844 | ) |
| Capital                      improvements to other real estate owned                                             |   |                                                 | (156,700         | ) |   |   | - |   |
| Proceeds                      from sale of other real estate owned                                               |   |                                                 | 1,077,515        |   |   |   | - |   |
| **     Net                      cash used in investing activities**                     |   | ** **                                           | **(131,989,321** | **)** |   | ** ** | **(84,916,200** | **)** |
|                                                                                                             |   |                                                 |             |   |   |   |   |   |
| Cash                      Flows from Financing Activities                                                        |   |                                                 |             |   |   |   |   |   |
| Net                      decrease in demand, savings and money market deposits                                   |   |                                                 | (691,603         | ) |   |   | (5,181,818 | ) |
| Net                      increase in time certificates of deposits                                               |   |                                                 | 95,742,284       |   |   |   | 90,610,348 |   |
| Proceeds                      from FHLB borrowings                                                               |   |                                                 | 66,971,000       |   |   |   | 93,718,000 |   |
| Principal                      repayments of FHLB borrowings                                                     |   |                                                 | (39,971,000      | ) |   |   | (68,718,000 | ) |
| Proceeds                      from issuance of common stock                                                      |   |                                                 | 50,550           |   |   |   | 30,591,487 |   |
| Dividends                      paid on common stock                                                              |   |                                                 | (639,939         | ) |   |   | (404,057 | ) |
| **     Net                      cash provided by financing activities**                 |   | ** **                                           | **121,461,292**  |   |   | ** ** | **140,615,960** |   |
|                                                                                                             |   |                                                 |             |   |   |   |   |   |
| **     Net                      (decrease) increase in cash and cash equivalents**      |   | ** **                                           | **(8,870,728**   | **)** |   | ** ** | **59,276,430** |   |

----

**PATRIOT          NATIONAL BANCORP, INC.**

**CONSOLIDATED          STATEMENTS OF CASH FLOWS, Continued**

**(Unaudited)**

|                                                                                         |   | Nine                      Months Ended               |         |
|----------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------------|
|                                                                                         |   | September                      30,    |         |
|                                                                                         |   | 2007                                                 |    | 2006 |   |
|                                                                                         |   |                                                 |         |   |   |   |
| Cash                      and cash equivalents                                               |   |                                                 |         |   |   |   |
| Beginning                                                                                    |   |                                                 | 55,474,539   |   |   |   | 15,967,605 |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
| Ending                                                                                       |   | $                                                    | 46,603,811   |   |   | $ | 75,244,035 |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
| Supplemental                      Disclosures of Cash Flow Information                       |   |                                                 |         |   |   |   |   |   |
| Cash                      paid for:                                                          |   |                                                 |         |   |   |   |   |   |
|      Interest                                                       |   | $                                                    | 20,088,558   |   |   | $ | 12,355,752 |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
|      Income                      taxes                              |   | $                                                    | 1,151,728    |   |   | $ | 1,319,020 |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
| Supplemental                      disclosures of noncash investing and financing activities: |   |                                                 |         |   |   |   |   |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
| Transfer                      of loans to other real estate owned                            |   | $                                                    | -            |   |   | $ | 834,341 |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
| Unrealized                      holding gain on available for sale                           |   |                                                 |         |   |   |   |   |   |
| securities                      arising during the period                                    |   | $                                                    | 741,190      |   |   | $ | 402,088 |   |
|                                                                                         |   |                                                 |         |   |   |   |   |   |
| Dividends                      declared on common stock                                      |   | $                                                    | 213,608      |   |   | $ | 213,277 |   |

----

**PATRIOT          NATIONAL BANCORP, INC.**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)**

**Note          1.     Basis of Financial Statement          Presentation**

**Note          2.      Investments**

|                                                                |   September                      30,  |  December                      31,  |
|--------------------------------------------------------------------------|------------------------------------------------------|-----------------------------------------------|
|                                                                     |                                                 | 2007                                          |    | 2006 |   |
|                                                                     |                                                 |                                          |   |   |   |   |
| U.                      S. Government sponsored                          |                                                 |                                          |   |   |   |   |
|   agency                      obligations                      |                                                 | $                                             | 16,829,278 |   |   | $ | 16,566,822 |   |
| U.                      S. Government Agency and sponsored               |                                                 |                                          |   |   |   |   |   |   |
|    agency                      mortgage-backed securities |                                                 |                                          | 33,828,461 |   |   |   | 43,476,313 |   |
| Money                      market preferred                              |                                                 |                                          |   |   |   |   |   |   |
|   equity                      securities                       |                                                 |                                          | 10,038,031 |   |   |   | 7,050,000 |   |
| Total                      Available for Sale Securities                 |                                                 | $                                             | 60,695,770 |   |   | $ | 67,093,135 |   |

----

|                                                                     |   |      |         |         | Gross        |   |         | Gross      |     |         |     |       |
|--------------------------------------------------------------------------|--------|-----------|--------------|--------------|--------------|--------|--------------|------------|----------|--------------|----------|------------|
|                                                                     |   | Amortized |         |         | Unrealized   |   |         | Unrealized |     |         | Fair     |       |
|                                                                     |   | Cost      |    | Gains        |    | Losses |    | Value      |     |
| U.                      S. Government sponsored                          |   |      |         |         |         |   |         |       |     |         |     |       |
|    agency                      obligations                |   | $         | 17,000,000   |         |         | $      | -            |       |     | $            | (170,722 | )          |   | $ | 16,829,278 |   |
| U.                      S. Government Agency and sponsored               |   |      |         |         |         |   |         |       |     |         |     |       |   |   |   |   |
|    agency                      mortgage-backed securities |   |      | 34,014,874   |         |         |   | 87,993       |       |     |         | (274,406 | )          |   |   | 33,828,461 |   |
| Money                      market preferred                              |   |      |         |         |         |   |         |       |     |         |     |       |   |   |   |   |
|   equity                      securities                       |   |      | 10,038,031   |    |         | -      |    |       | -        |    |     | 10,038,031 |   |
| Total                      Available For Sale Securities                 |   | $         | 61,052,905   |    | $            | 87,993 |    | $          | (445,128 | )            |     | $          | 60,695,770 |   |

----

**Note          3.      Loans**

|                                             |  September                      30,  |  December                      31,  |
|--------------------------------------------------|------------------------------------------------|-----------------------------------------------|
|                                        | 2007                                           |                                     | 2006 |   |
| Real                      Estate                 |                                           |                                          |   |   |   |   |
|    Commercial                     |                                           | $                                             | 217,525,839 |   |   | $ | 166,799,341 |   |
|    Residential                    |                                           |                                          | 99,280,420 |   |   |   | 91,077,687 |   |
|    Construction                   |                                           |                                          | 277,857,142 |   |   |   | 203,828,453 |   |
| Commercial                                       |                                           |                                          | 27,516,972 |   |   |   | 23,997,640 |   |
| Consumer                      installment        |                                           |                                          | 1,144,568 |   |   |   | 1,251,300 |   |
| Consumer                      home equity        |                                           |                                          | 25,430,500 |   |   |   | 26,933,277 |   |
| Total                      Loans                 |                                           |                                          | 648,755,441 |   |   |   | 513,887,698 |   |
| Premiums                      on purchased loans |                                           |                                          | 218,890 |   |   |   | 292,543 |   |
| Net                      deferred fees           |                                           |                                          | (1,949,808 | ) |   |   | (1,665,654 | ) |
| Allowance                      for loan losses   |                                           |                                          | (5,597,620 | ) |   |   | (5,630,432 | ) |
| Loans                      receivable, net       |                                           | $                                             | 641,426,903 |   |   | $ | 506,884,155 |   |

**Analysis          of Allowance for Loan Losses**

|                                                                                  |   | Three                      months ending |   |         | Nine                      months ending   |         |
|---------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------------|-----------------------------------------------------|--------------|
|                                                                                  |   | September                      30,       |   |         | September                      30,        |         |
| *(Thousands                      of dollars)*                                    | 2007   |                                | 2006   |    | 2007                                                |    | 2006 |   |
|                                                                                  |   |                                     |   |         |                                                |         |   |   |   |   |   |   |
| Balance                      at beginning of period                                   |   | $                                        | 5,598  |         |                                                | $            | 5,510 |   |   | $ | 5,630 |   |   | $ | 4,588 |   |
| Charge-offs                                                                           |   |                                     | -      |         |                                                |         | - |   |   |   | (32 | ) |   |   | (1 | ) |
| Recoveries                                                                            |   |                                     | -      |         |                                                |         | 3 |   |   |   | - |   |   |   | 3 |   |
| Net                      (charge-offs) recoveries                                     |   |                                     | -      |         |                                                |         | 3 |   |   |   | (32)  |   |   |   | 2 |   |
| Provision                      charged to operations                                  |   |                                     | -      |         |                                                |         | 117 |   |   |   | - |   |   |   | 1,040 |   |
| Balance                      at end of period                                         |   | $                                        | 5,598  |         |                                                | $            | 5,630 |   |   | $ | 5,598 |   |   | $ | 5,630 |   |
|                                                                                  |   |                                     |   |         |                                                |         |   |   |   |   |   |   |   |   |   |   |
| Ratio                      of net (charge-offs) recoveries                            |   |                                     |   |         |                                                |         |   |   |   |   |   |   |   |   |   |   |
|      during                      the period to average loans |   |                                     |   |         |                                                |         |   |   |   |   |   |   |   |   |   |   |
|      outstanding                      during the period.     |   |                                     | 0.00   | %            |                                                |         | 0.00 | % |   |   | -0.01 | % |   |   | 0.00 | % |

----

**Note          4.     Deposits**

|   |   September                    30,  |  December                    31,  |
|--------|----------------------------------------------------|---------------------------------------------|

|                                                                                | 2007   |    | 2006        |   |
|------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|
|                                                                                     |   |         |        |   |   |   |
| Noninterest                      bearing                                                 |   | $            | 57,690,185  |   |   | $ | 56,679,836 |   |
|                                                                                     |   |         |        |   |   |   |   |   |
| Interest                      bearing                                                    |   |         |        |   |   |   |   |   |
|      NOW                                                        |   |         | 25,103,584  |   |   |   | 26,881,927 |   |
|      Savings                                                    |   |         | 30,852,481  |   |   |   | 25,993,452 |   |
|      Money                      market                          |   |         | 36,152,990  |   |   |   | 40,935,628 |   |
|      Time                      certificates, less than $100,000 |   |         | 301,359,220 |   |   |   | 248,414,014 |   |
|      Time                      certificates, $100,000 or more   |   |         | 205,343,885 |   |   |   | 162,546,807 |   |
| Total                      interest bearing                                              |   |         | 598,812,160 |   |   |   | 504,771,828 |   |
| Total                      Deposits                                                      |   | $            | 656,502,345 |   |   | $ | 561,451,664 |   |

**Note          5.     Borrowings**

**Note          6.     Income per share**

----

| **Three                      months ended September 30, 2007**                                 |   |                            |         |         |         |      |         |   |   |
|------------------------------------------------------------------------------------------------|--------|---------------------------------|--------------|--------------|--------------|-----------|--------------|--------|--------|
|                                                                                           |   | Net                      Income |    | Shares       |    | Amount    |         |
| Basic                      Income Per Share                                                    |   |                            |         |         |         |      |         |   |   |
|    Income                      available to common shareholders                 |   | $                               | 740,725      |         |         |      | 4,744,453    |   |   | $ | 0.16 |   |
|      Effect                      of Dilutive Securities               |   |                            |         |         |         |      |         |   |   |   |   |   |
|         Stock                      Options outstanding |   |                            | -            |    |         | 30,353    |    |   | -      |   |
| Diluted                      Income Per Share                                                  |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   |                            |         |         |         |      |         |   |   |   |   |   |
|    plus                      assumed conversions                                |   | $                               | 740,725      |    |         | 4,774,806 |    | $      | 0.16   |   |
|                                                                                           |   |                            |         |         |         |      |         |   |   |   |   |   |
| **Three                      months ended September 30, 2006**                                 |   |                            |         |         |         |      |         |   |   |   |   |   |
|                                                                                           |   | Net                      Income |    | Shares       |    | Amount    |         |
| Basic                      Income Per Share                                                    |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   | $                               | 670,638      |         |         |      | 3,271,472    |   |   | $ | 0.20 |   |
|      Effect                      of Dilutive Securities               |   |                            |         |         |         |      |         |   |   |   |   |   |
|         Stock                      Options outstanding |   |                            | -            |    |         | 25,188    |    |   | -      |   |
| Diluted                      Income Per Share                                                  |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   |                            |         |         |         |      |         |   |   |   |   |   |
|    plus                      assumed conversions                                |   | $                               | 670,638      |    |         | 3,296,660 |    | $      | 0.20   |   |
|                                                                                           |   |                            |         |         |         |      |         |   |   |   |   |   |
| **Nine                      months ended September 30, 2007**                                  |   |                            |         |         |         |      |         |   |   |   |   |   |
|                                                                                           |   | Net                      Income |    | Shares       |    | Amount    |         |
| Basic                      Income Per Share                                                    |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   | $                               | 1,791,493    |         |         |      | 4,741,182    |   |   | $ | 0.38 |   |
|      Effect                      of Dilutive Securities               |   |                            |         |         |         |      |         |   |   |   |   |   |
|         Stock                      Options outstanding |   |                            | -            |    |         | 34,536    |    |   | -      |   |
| Diluted                      Income Per Share                                                  |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   |                            |         |         |         |      |         |   |   |   |   |   |
|    plus                      assumed conversions                                |   | $                               | 1,791,493    |    |         | 4,775,718 |    | $      | 0.38   |   |
|                                                                                           |   |                            |         |         |         |      |         |   |   |   |   |   |
| **Nine                      months ended September 30, 2006**                                  |   |                            |         |         |         |      |         |   |   |   |   |   |
|                                                                                           |   | Net                      Income |    | Shares       |    | Amount    |         |
| Basic                      Income Per Share                                                    |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   | $                               | 1,577,372    |         |         |      | 3,244,162    |   |   | $ | 0.49 |   |
|      Effect                      of Dilutive Securities               |   |                            |         |         |         |      |         |   |   |   |   |   |
|         Stock                      Options outstanding |   |                            | -            |    |         | 39,294    |    |   | (0.01  | ) |
| Diluted                      Income Per Share                                                  |   |                            |         |         |         |      |         |   |   |   |   |   |
|    Income                      available to common shareholders                 |   |                            |         |         |         |      |         |   |   |   |   |   |
|    plus                      assumed conversions                                |   | $                               | 1,577,372    |    |         | 3,283,456 |    | $      | 0.48   |   |

----

**Note          7.     Other Comprehensive Income**

|                                                   |   | Three                      Months Ended |         |                            | Nine                      Months Ended  |   |
|--------------------------------------------------------|--------|-----------------------------------------|--------------|---------------------------------|-----------------------------------------|--------|
|                                                   |   | September                      30, 2007 |         |                            | September                      30, 2007 |   |
|                                                   |   | Before                      Tax         |         |                            |                                    |   |   | Net                      of Tax |   |   | Before                      Tax |   |   |   |   |   | Net                      of Tax |   |
|                                                   |   | Amount                                  |    | Tax                      Effect |                               | Amount |   |   | Amount |    | Tax                      Effect |    | Amount |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                      holding gain           |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| arising                      during the period         |   | $                                       | 479,301      |                            |                                    | $      | (182,135 | ) |   | $ | 297,166 |   |   | $ | 741,190 |   |   | $ | (281,652 | ) |   | $ | 459,538 |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                      adjustment       |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                      gains recognized in income    |   |                                    | -            |                            |                                    |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                      holding gain           |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on                      available for sale securities, |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                      of taxes                      |   | $                                       | 479,301      |                            |                                    | $      | (182,135 | ) |   | $ | 297,166 |   |   | $ | 741,190 |   |   | $ | (281,652 | ) |   | $ | 459,538 |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Three                      Months Ended |         |                            | Nine                      Months Ended  |   |
|                                                   |   | September                      30, 2006 |         |                            | September                      30, 2006 |   |
|                                                   |   | Before                      Tax         |         |                            |                                    |   |   |   | Net                      of Tax |   |   | Before                      Tax |   |   |   |   |   |   | Net                      of Tax |   |
|                                                   |   | Amount                                  |    | Tax                      Effect |                               | Amount |   |   | Amount |    | Tax                      Effect |    | Amount |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                      holding gain           |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| arising                      during the period         |   | $                                       | 840,046      |                            |                                    | $      | (319,217 | ) |   | $ | 520,829 |   |   | $ | 402,088 |   |   | $ | (152,794 | ) |   | $ | 249,294 |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                      adjustment       |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for                      gains recognized in income    |   |                                    | -            |                            |                                    |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                   |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                      holding gain on        |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available                      for sale securities,    |   |                                    |         |                            |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                      of taxes                      |   | $                                       | 840,046      |                            |                                    | $      | (319,217 | ) |   | $ | 520,829 |   |   | $ | 402,088 |   |   | $ | (152,794 | ) |   | $ | 249,294 |   |

----

**Note          8.     Financial Instruments with Off-Balance Sheet          Risk**

|   | Commitments                      to extend credit:       |   |   |        |
|--------|----------------------------------------------------------|--------|--------|-------------|
|   | Future                      loan commitments             |   | $      | 73,442,968  |   |
|   | Unused                      lines of credit              |   |   | 60,157,558  |   |
|   | Undisbursed                      construction loans      |   |   | 124,215,962 |   |
|   | Financial                      standby letters of credit |   |   | 1,248,049   |   |
|   |                                                     |   | $      | 259,064,537 |   |

----

**Note          9.     Income Taxes**

*Accounting for Uncertainty in Income          Taxes*
*Accounting for Income          Taxes*

**Note          10.     Recent Accounting          Pronouncements**

*The Fair Value Option for Financial Assets and Financial          Liabilities – Including an amendment of FASB No. 155 (“SFAS          159”)*

----

**Item          2.     Management's Discussion and Analysis of Financial          Condition and Results of Operations**

**"SAFE          HARBOR" STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM ACT OF          1995**

**CRITICAL          ACCOUNTING POLICIES**

----

***Allowance          for Loan Losses***

----

**SUMMARY**

**FINANCIAL          CONDITION**

***Assets***

***Investments***

----

***Loans***

***Allowance          for Loan Losses***

***Non-Accrual,          Past Due and Restructured Loans***

|   |                                                              |  September                      30,  |  December                      31, |         |
|--------|-------------------------------------------------------------------|------------------------------------------------|-----------------------------------------|--------------|
|   | *(Thousands                      of dollars)*                     |                                           | 2007                                    |    | 2006 |   |
|   |                                                              |                                           |                                    |         |   |   |   |
|   | Loans                      delinquent over 90 days                |                                           | $                                       | 1,495        |   |   | $ | 1,897 |   |
|   |      still                      accruing |                                           |                                    |         |   |   |   |   |   |
|   | Non                      accruing loans                           |                                           |                                    | 3,852        |    |   | 2,904 |   |
|   |      Total                               |                                           | $                                       | 5,347        |    | $ | 4,801 |   |
|   | %                      of Total Loans                             |                                           |                                    | 0.83         | % |   |   | 0.93 | % |
|   | %                      of Total Assets                            |                                           |                                    | 0.69         | % |   |   | 0.74 | % |

----

**Potential          Problem Loans**

***Deposits***

----

***Borrowings***

***Capital***

***Off-Balance          Sheet Arrangements***

----

**RESULTS          OF OPERATIONS**

***Interest          and dividend income and expense***

|                                                    | Three                      months ended September 30,                             |
|---------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                                    |                                                                              | 2007 |   |   |   | 2006 |   |
|                                                    |                                                                              | Interest |   |   |   | Interest |   |
|                                                    | Average                                                                           | Income/ | Average |   | Average | Income/ | Average |
|                                                    | Balance                                                                           | Expense | Rate |   | Balance | Expense | Rate |
|                                                    | *(dollars                      in thousands)*                                     |
| Interest                      earning assets:           |                                                                              |   |   |   |   |   |   |
| Loans                                                   |  $    619,672                                            |  $    12,280 | 7.93% |   |  $    454,672 |  $     8,962 | 7.88% |
| Federal                      funds sold and             |                                                                              |   |   |   |   |   |   |
|   other                      cash equivalents |          26,414                      |            342 | 5.18% |   |          12,516 |           166 | 5.31% |
| Investments                                             |          64,718                      |            676 | 4.18% |   |          74,646 |           729 | 3.91% |
| Total                      interest                     |                                                                              |   |   |   |   |   |   |
|   earning                      assets         |        710,804                                 |        13,298 | 7.48% |   |        541,834 |         9,857 | 7.28% |
|                                                    |                                                                              |   |   |   |   |   |   |
| Cash                      and due from banks            |            3,889           |   |   |   |            4,902 |   |   |
| Premises                      and equipment, net        |            6,515           |   |   |   |            2,371 |   |   |
| Allowance                      for loan losses          |          (5,598)                     |   |   |   |          (5,513) |   |   |
| Other                      assets                       |          10,283                      |   |   |   |            7,020 |   |   |
| Total                      Assets                       |  $    725,893                                            |   |   |   |  $    550,614 |   |   |
|                                                    |                                                                              |   |   |   |   |   |   |
| Interest                      bearing liabilities:      |                                                                              |   |   |   |   |   |   |
| Deposits                                                |  $    586,834                                            |  $      6,843 | 4.66% |   |  $    420,813 |  $     4,153 | 3.95% |
| FHLB                      advances                      |            3,706           |              46 | 4.96% |   |          36,837 |           491 | 5.33% |
| Subordinated                      debt                  |            8,248           |            175 | 8.49% |   |            8,248 |           177 | 8.58% |
| Other                      borrowings                   |              163 |                2 | 4.91% |   |                46 |               1 | 8.70% |
| Total                      interest                     |                                                                              |   |   |   |   |   |   |
|   bearing                      liabilities    |        598,951                                 |          7,066 | 4.72% |   |        465,944 |         4,822 | 4.14% |
|                                                    |                                                                              |   |   |   |   |   |   |
| Demand                      deposits                    |          55,060                      |   |   |   |          47,063 |   |   |
| Accrued                      expenses and               |                                                                              |   |   |   |   |   |   |
|   other                      liabilities      |            5,949           |   |   |   |            4,207 |   |   |
| Shareholders'                      equity               |          65,933                      |   |   |   |          33,400 |   |   |
| Total                      liabilities and equity       |  $    725,893                                            |   |   |   |  $    550,614 |   |   |
|                                                    |                                                                              |   |   |   |   |   |   |
| Net                      interest income                |                                                                              |  $      6,232 |   |   |   |  $     5,035 |   |
| Interest                      margin                    |                                                                              |   | 3.51% |   |   |   | 3.72% |
| Interest                      spread                    |                                                                              |   | 2.76% |   |   |   | 3.14% |

----

|                                                    | Nine                      months ended September 30,                                         |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                                    |                                                                                         | 2007 |   |   |   | 2006 |   |
|                                                    |                                                                                         | Interest |   |   |   | Interest |   |
|                                                    | Average                                                                                      | Income/ | Average |   | Average | Income/ | Average |
|                                                    | Balance                                                                                      | Expense | Rate |   | Balance | Expense | Rate |
|                                                    | *(dollars                      in thousands)*                                                |
| Interest                      earning assets:           |                                                                                         |   |   |   |   |   |   |
| Loans                                                   |  $    574,823                                                       |  $    33,887 | 7.86% |   |  $    428,211 |  $   24,473 | 7.62% |
| Federal                      funds sold and             |                                                                                         |   |   |   |   |   |   |
|   other                      cash equivalents |          48,603                                 |          1,890 | 5.18% |   |            8,348 |           309 | 4.94% |
| Investments                                             |          67,391                                 |          2,080 | 4.12% |   |          77,382 |         2,268 | 3.91% |
| Total                      interest                     |                                                                                         |   |   |   |   |   |   |
|   earning                      assets         |        690,817                                            |        37,857 | 7.31% |   |        513,941 |       27,050 | 7.02% |
|                                                    |                                                                                         |   |   |   |   |   |   |
| Cash                      and due from banks            |            4,206                      |   |   |   |            5,729 |   |   |
| Premises                      and equipment, net        |            5,877                      |   |   |   |            2,348 |   |   |
| Allowance                      for loan losses          |          (5,618)                                |   |   |   |          (5,220) |   |   |
| Other                      assets                       |            9,922                      |   |   |   |            6,695 |   |   |
| Total                      Assets                       |  $    705,204                                                       |   |   |   |  $    523,493 |   |   |
|                                                    |                                                                                         |   |   |   |   |   |   |
| Interest                      bearing liabilities:      |                                                                                         |   |   |   |   |   |   |
| Deposits                                                |  $    568,845                                                       |  $    19,435 | 4.56% |   |  $    401,707 |  $   10,834 | 3.60% |
| FHLB                      advances                      |            4,509                      |            167 | 4.94% |   |          29,045 |         1,100 | 5.05% |
| Subordinated                      debt                  |            8,248                      |            519 | 8.39% |   |            8,248 |           497 | 8.03% |
| Other                      borrowings                   |                55 |                2 | 4.85% |   |              129 |               5 | 5.17% |
| Total                      interest                     |                                                                                         |   |   |   |   |   |   |
|   bearing                      liabilities    |        581,657                                            |        20,123 | 4.61% |   |        439,129 |       12,436 | 3.78% |
|                                                    |                                                                                         |   |   |   |   |   |   |
| Demand                      deposits                    |          52,751                                 |   |   |   |          47,727 |   |   |
| Accrued                      expenses and               |                                                                                         |   |   |   |   |   |   |
|   other                      liabilities      |            5,403                      |   |   |   |            4,176 |   |   |
| Shareholders'                      equity               |          65,393                                 |   |   |   |          32,461 |   |   |
| Total                      liabilities and equity       |  $    705,204                                                       |   |   |   |  $    523,493 |   |   |
|                                                    |                                                                                         |   |   |   |   |   |   |
| Net                      interest income                |                                                                                         |  $    17,734 |   |   |   |  $   14,614 |   |
| Interest                      margin                    |                                                                                         |   | 3.42% |   |   |   | 3.79% |
| Interest                      spread                    |                                                                                         |   | 2.70% |   |   |   | 3.24% |

----

|                                                    | Three                      months ended September 30,                                       |                                                                              | Nine                      months ended September 30,                                  |
|---------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                    | 2007                      vs 2006                                                           |                                                                              | 2007                      vs 2006                                                     |
|                                                    | Fluctuations                      in Interest                                               |                                                                              | Fluctuations                      in Interest                                         |
|                                                    | Income/Expense                                                                              |                                                                              | Income/Expense                                                                        |
|                                                    | Due                      to change in:                                                      |                                                                              | Due                      to change in:                                                |
|                                                    | Volume                                                                                      | Rate                                                                              | Total                                                                                 |   | Volume | Rate | Total |
|                                                    | *(dollars                      in thousands)*                                          |                                                                              | *(dollars                      in thousands)*                                    |
| Interest                      earning assets:           |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
| Loans                                                   |  $      3,261                                            |  $          57             |  $      3,318                                      |   |  $      8,621 |  $        793 |  $      9,414 |
| Federal                      funds sold and             |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
|   other                      cash equivalents |            204                       |            (28)            |            176                 |   |         1,565 |              16 |         1,581 |
| Investments                                             |          (301)                                 |            248             |            (53)                |   |          (363) |            175 |          (188) |
| Total                      interest                     |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
|   earning                      assets         |         3,164                                       |            277             |         3,441                                 |   |         9,823 |            984 |        10,807 |
|                                                    |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
| Interest                      bearing liabilities:      |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
| Deposits                                                |  $      1,848                                            |  $        842                        |  $      2,690                                      |   |  $      5,242 |  $      3,359 |  $      8,601 |
| FHLB                      advances                      |          (413)                                 |            (32)            |          (445)                           |   |          (910) |            (23) |          (933) |
| Subordinated                      debt                  |                - |              (2) |              (2)     |   |                - |              22 |              22 |
| Other                      borrowings                   |               4       |              (3) |               1 |   |              (3) |                - |              (3) |
| Total                      interest                     |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
|   bearing                      liabilities    |         1,439                                       |            805             |         2,244                                 |   |         4,329 |         3,358 |         7,687 |
|                                                    |                                                                                        |                                                                              |                                                                                  |   |   |   |   |
| Net                      interest income                |  $      1,725                                            |  $       (528)                            |  $      1,197                                      |   |  $      5,494 |  $    (2,374) |  $      3,120 |

----

***Provision          for loan losses***

***Non-interest          income***

----

***Non-interest          expenses***

----

***Income          Taxes***

**LIQUIDITY**

**CAPITAL**

|   |                                           | September                      30, 2007 |   | December                      31, 2006 |   |
|--------|------------------------------------------------|-----------------------------------------|--------|----------------------------------------|--------|
|   | Total                      Risk-based Capital  | 12.72%                                  |   | 15.34%                                 |   |
|   | Tier                      1 Risk-based Capital | 11.81%                                  |   | 14.22%                                 |   |
|   | Leverage                      Capital          | 10.04%                                  |   | 11.63%                                 |   |

----

|   |                                           |                                    |   |                                   |   |
|--------|------------------------------------------------|-----------------------------------------|--------|----------------------------------------|--------|
|   |                                           | September                      30, 2007 |   | December                      31, 2006 |   |
|   | Total                      Risk-based Capital  | 12.54%                                  |   | 15.02%                                 |   |
|   | Tier                      1 Risk-based Capital | 11.63%                                  |   | 13.90%                                 |   |
|   | Leverage                      Capital          | 9.88%                                   |   | 11.37%                                 |   |

**IMPACT          OF INFLATION AND CHANGING PRICES**

----

**Item          3.     Quantitative and Qualitative Disclosures about Market          Risk**

**Qualitative          Aspects of Market Risk**

**Quantitative          Aspects of Market Risk**

----

|                                      | Basis  | Interest                      Rate   | September                      30, | December                      31, |
|-------------------------------------------|--------|--------------------------------------|------------------------------------|-----------------------------------|
|                                      | Points | Risk                      Guidelines | 2007                               | 2006                              |
|                                      |   |                                 |                               |                              |
| Gap                      percentage total |   | +/-                      15%         | -6.04%                             | 1.53%                             |
| Net                      interest income  | 200    | +/-                      15%         | 3.43%                              | 11.22%                            |
|                                      | -200   | +/-                      15%         | -3.98%                             | -12.04%                           |
| Net                      portfolio value  | 200    | +/-                      25%         | -9.29%                             | -3.25%                            |
|                                      | -200   | +/-                      25%         | 5.89%                              | 1.19%                             |

----

| Net                      Interest Income and Economic Value |
|-------------------------------------------------------------|
| Summary                      Performance                    |
|                     |
| September                      30, 2007                     |
|                                                        | Net                      Interest Income  |   | Net                      Portfolio Value |
| Projected                      Interest                     | Estimated | $                      Change | %                      Change |   | Estimated | $                      Change | %                      Change |
| Rate                      Scenario                          | Value | from                      Base | from                      Base |   | Value | from                      Base | from                      Base |
| +                      200                                  |       25,907 |            861 | 3.44% |   |       72,716 |       (7,448) | -9.29% |
| +                      100                                  |       25,486 |            440 | 1.76% |   |       76,397 |       (3,767) | -4.70% |
| BASE                                                        |       25,046 |   |   |   |       80,164 |   |   |
| -                      100                                  |       24,640 |          (406) | -1.62% |   |       83,366 |         3,202 | 3.99% |
| -                      200                                  |       24,051 |          (995) | -3.97% |   |       84,886 |         4,722 | 5.89% |
|                                                        |   |   |   |   |   |   |   |
| December                      31, 2006                      |
|                                                        | Net                      Interest Income  |   | Net                      Portfolio Value |
| Projected                      Interest                     | Estimated | $                      Change | %                      Change |   | Estimated | $                      Change | %                      Change |
| Rate                      Scenario                          | Value | from                      Base | from                      Base |   | Value | from                      Base | from                      Base |
| +                      200                                  |       23,940 |         2,415 | 11.22% |   |       68,230 |       (2,290) | -3.25% |
| +                      100                                  |       22,750 |         1,225 | 5.69% |   |       69,491 |       (1,029) | -1.46% |
| BASE                                                        |       21,525 |   |   |   |       70,520 |   |   |
| -                      100                                  |       20,307 |       (1,218) | -5.66% |   |       71,533 |         1,013 | 1.44% |
| -                      200                                  |       18,934 |       (2,591) | -12.04% |   |       71,359 |            839 | 1.19% |

----

**Item          4.     Controls and Procedures**

**PART          II - OTHER INFORMATION**

**Item          1A.     Risk Factors**

**Item          2.      Unregistered Sales of Equity Securities and Use          of Proceeds**

----

**Item          6.     Exhibits**

|                     | No.      |  Description                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |     |                                                                                                                                                                                                                                                                                                                                                                                                        |
|                     | 2        | Agreement                    and Plan of Reorganization dated as of June 28, 1999 between                    Bancorp and the Bank (incorporated by reference to Exhibit 2                    to Bancorp’s                    Current Report on Form 8-K dated December 1, 1999 (Commission                    File No.                    000-29599)).                                      |
|      |
|                     | 3(i)     | Certificate                    of Incorporation of Bancorp, (incorporated by reference to Exhibit                    3(i) to                    Bancorp’s Current Report on Form 8-K dated December 1, 1999 (Commission                    File No. 000-29599)).                                                                                                                                      |
|      |
|                     | 3(i)(A)  | Certificate                    of Amendment of Certificate of Incorporation of Patriot National                    Bancorp,                    Inc. dated July 16, 2004 (incorporated by reference to Exhibit                    3(i)(A) to                    Bancorp's Annual Report on Form 10-KSB for the year ended                    December 31, 2004 (Commission File No. 000-29599)).        |
|      |
|                     | 3(i)(B)  | Certificate                    of Amendment of Certificate of Incorporation of Patriot National                    Bancorp,                    Inc. dated June 15, 2006 (incorporated by reference to Exhibit                    3(i)(B) to                    Bancorp’s Quarterly Report of Form 10-Q for the quarter ended September                    30, 2006 (commission File No. 000-29599)).  |
|      |
|                     | 3(ii)    | By-laws                    of Bancorp (incorporated by reference to Exhibit 3(ii) to Bancorp’s                    Current Report on Form 8-K dated December 1, 1999 (Commission                    File No. 000-29599)).                                                                                                                                                                    |
|      |
|                     | 4        | Reference                    is made to the Rights Agreement dated April 19, 2004 by and                    between Patriot National Bancorp, Inc. and Registrar and Transfer                    Company                    filed as Exhibit 99.2 to Bancorp’s Report on Form 8-K filed on April 19,                    2004, which is incorporated herein by reference.                    |
|      |
|                     | 10(a)(1) | 2001                    Stock Appreciation Rights Plan of Bancorp (incorporated by reference                    to                    Exhibit 10(a)(1) to Bancorp’s Annual Report on Form 10-KSB for the year                    ended December 31, 2001 (Commission File No.                    000-29599)).                                                                               |

----

|                     | No.       | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |
|                     | 10(a)(3)  | Employment                    Agreement, dated as of October 23, 2000, as amended by a First                    Amendment,                    dated as of March 21, 2001, among the Bank, Bancorp and Charles                    F. Howell                    (incorporated by reference to Exhibit 10(a)(4) to Bancorp’s Annual Report                    on Form 10-KSB for the year ended December 31, 2000 (Commission                    File No.                    000-29599)).  |
|      |
|                     | 10(a)(4)  | Change                    of Control Agreement, dated as of January 1, 2007 among Angelo De                    Caro and Patriot National Bank and Bancorp (incorporated by reference                    to Exhibit 10(a)(4) to Bancorp’s Annual Report on Form 10-K for the year                    ended December 31, 2006 (Commission File No.                    000-29599)).                                                                               |
|      |
|                     | 10(a)(5)  | Employment                    Agreement dated as of November 3, 2003 among Patriot National                    Bank,                    Bancorp and Robert F. O’Connell (incorporated by reference to Exhibit                    10(a)(5) to Bancorp’s Annual Report on Form 10-KSB for the year ended                    December 31, 2003 (Commission File No. 000-29599)).                                                                                                     |
|      |
|                     | 10(a)(6)  | Change                    of Control Agreement, dated as of January 1, 2007 among                    Robert F. O’Connell and Patriot National Bank and Bancorp                    (incorporated by reference to Exhibit 10(a)(6) to Bancorp’s Annual Report                    on Form 10-K for the year ended December 31, 2006 (Commission                    File No. 000-29599)).                                                                         |
|      |
|                     | 10(a)(8)  | Employment                    Agreement dated as of January 1, 2007 between Patriot National                    Bank and                    Marcus Zavattaro (incorporated by reference to Exhibit 10(a)(8)                    to                    Bancorp’s Annual Report on Form 10-K for the year ended December 31,                    2006                    (Commission File No. 000-29599)).                                                                             |
|      |
|                     | 10(a)(9)  | License                    agreement dated July 1, 2003 between Patriot National Bank and                    L. Morris                    Glucksman (incorporated by reference to Exhibit 10(a)(9) to Bancorp’s                    Annual Report on Form 10-KSB for the year ended December 31,                    2003                    (Commission File No. 000-29599)).                                                                                                       |
|      |
|                     | 10(a)(10) | Employment                    Agreement dated as of January 1, 2007 among the Bank, Bancorp                    and Charles                    F. Howell (incorporated by reference to Exhibit 10(a)(10) to                    Bancorp’s                    Annual Report on Form 10-K for the year ended December 31, 2006                    (Commission File No. 000-29599)).                                                                                                    |

----

|                     | No.       | Description                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |
|                     | 10(a)(11) | Change                    of Control Agreement, dated as of January 1, 2007 among Charles                    F. Howell,                    Patriot National Bank and Bancorp (incorporated by reference                    to Exhibit                    10(a)(11) to Bancorp’s Annual Report on Form 10-K for the year ended                    December 31, 2006 (Commission File No. 000-29599)).  |
|      |
|                     | 10(a)(12) | 2005                    Director Stock Award Plan (incorporated by reference to Exhibit                    10(a)(12)                    to Bancorp’s Quarterly Report on Form 10-Q for the quarter ended June 30,                    2006 (Commission File No. 000-295999)).                                                                                                                                         |
|      |
|                     | 10(a)(13) | Change                    of Control Agreement, dated as of January 1, 2007 between Martin                    G. Noble                    and Patriot National Bank(incorporated by reference to Exhibit                    10(a)(13)                    to Bancorp’s Annual Report on Form 10-K for the year ended December 31,                    2006 (Commission File No. 000-29599)).                      |
|      |
|                     | 10(a)(14) | Change                    of Control Agreement, dated as of January 1, 2007 among Philip                    W. Wolford,                    Patriot National Bank and Bancorp(incorporated by reference to                    Exhibit                    10(a)(14) to Bancorp’s Annual Report on Form 10-K for the year ended                    December 31, 2006 (Commission File No. 000-29599)).             |
|      |
|                     | 10(c)     | 1999                    Stock Option Plan of the Bank (incorporated by reference to Exhibit                    10(c)                    to Bancorp’s Current Report on Form 8-K dated December 1, 1999 (Commission                    File No. 000-29599)).                                                                                                                                                          |
|      |
|                     | 14        | Code                    of Conduct for Senior Financial Officers (incorporated by reference                    to                    Exhibit 14 to Bancorp’s Annual Report on Form 10-KSB for the year ended                    December 31, 2004 (Commission File No. 000-29599).                                                                                                                                   |
|      |
|                     | 21        | Subsidiaries                    of Bancorp (incorporated by reference to Exhibit 21 to Bancorp’s Annual                    Report on Form 10-KSB for the year ended December 31, 1999 (Commission                    File No. 000-29599)).                                                                                                                                                                           |
|      |
|                     | 31(1)     | Rule                    13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                       |
|      |
|                     | 31(2)     | Rule                    13a-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                       |
|      |
|                     | 32        | Section                    1350 Certifications                                                                                                                                                                                                                                                                                                                                                                             |

----

**SIGNATURES**

|   | Patriot                    National Bancorp, inc.                                                |
|--------|--------------------------------------------------------------------------------------------------|
|   | (Registrant)                                                                                     |
|   |                                                                                             |
|   |                                                                                             |
|   | By:   /s/                    Robert F. O’Connell                            |
|   |        Robert                    F. O’Connell,          |
|   |        Senior                    Executive Vice President     |
|   |        Chief                    Financial Officer             |
|   |                                                                                             |
|   |        (On                    behalf of the registrant and as |
|   |         chief                    financial officer)      |

----