Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3: Loans Receivable and Allowance for Loan Losses As of March 31, 2017 December 31, 2016, (In thousands) Loan portfolio segment: March 31, 2017 December 31, 2016 Commercial Real Estate $ 265,268 271,229 Residential Real Estate 155,140 86,514 Commercial and Industrial 62,375 60,977 Consumer and Other 95,893 101,449 Construction 44,512 53,895 Construction to permanent - CRE 7,539 7,593 Loans receivable, gross 630,727 581,657 Allowance for loan losses (5,697 ) (4,675 ) Loans receivable, net $ 625,030 576,982 Patriot's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York, and the five first second Patriot has established credit policies applicable to each type of lending activity in which it engages and evaluates the creditworthiness of each borrower. Unless extenuating circumstances exist, Patriot limits the extension of credit on commercial real estate loans to 75% 80% 75% may Risk characteristics of the Company’s portfolio classes include the following Commercial Real Estate Loans In underwriting commercial real estate loans, Patriot evaluates both the prospective borrower’s ability to make timely payments on the loan and the value of the property securing the loans. Repayment of such loans may may Residential Real Estate Loans The Bank provides both closed-end and revolving home equity loans. In 2013, may Commercial and Industrial Loans Patriot’s commercial and industrial loan portfolio consists primarily of commercial business loans and lines of credit to businesses and professionals. These loans are generally for the financing of accounts receivable, purchases of inventory, purchases of new or used equipment, or for other short- or long-term working capital purposes. These loans are generally secured by business assets, but are also occasionally offered on an unsecured basis. In granting these types of loans, Patriot considers the borrower’s cash flow as the primary source of repayment, supported by the value of collateral, if any, and personal guarantees, as applicable. Repayment of commercial and industrial loans may Consumer and Other Loans Patriot offers individual consumers various forms of credit including installment loans, credit cards, overdraft protection, and reserve lines of credit. Repayments of such loans are generally dependent on the personal income of the borrower, which may The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories that are typically characterized by payment delinquencies, previous charge-offs, judgments against the consumer, a history of bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burdened ratios. Construction Loans Construction loans are of a short-term nature, generally of eighteen may Included in this category are loans to construct single family homes where no contract of sale exists, based upon the experience and financial strength of the builder, the type and location of the property, and other factors. Construction loans tend may Construction to Permanent – CRE One time close of a construction facility with simultaneous conversion to an amortizing mortgage loan. Close of the construction facility typically occurs when events dictate, such as receipt of a certificate of occupancy and property stabilization, which is defined as cash flow sufficient to support a pre-defined minimum debt coverage ratio and other conditions and covenants particular to the loan. Construction facilities are typically variable rate instruments that, upon conversion to an amortizing mortgage loan, reset to a fixed rate instrument that is the greater of the in-force variable rate plus a predetermined spread over a reference rate (e.g., prime) or a minimum interest rate. The following tables summarize the activity in the allowance for loan losses, allocated to segments of the loan portfolio, for three March 31, 2017 2016: (In thousands) Three months ended March 31, 2017 Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent [CRE] Unallocated Total Allowance for loan losses: December 31, 2016 1,853 534 740 641 712 69 126 4,675 Charge-offs - - - - - - - - Recoveries 2 - 2,769 - - - - 2,771 Provisions (credits) 343 539 (2,460 ) (58 ) (121 ) 8 - (1,749 ) March 31, 2017 2,198 1,073 1,049 583 591 77 126 5,697 Three months ended March 31, 2016 Allowance for loan losses: December 31, 2015 1,970 740 1,027 677 486 123 219 5,242 Charge-offs - (5 ) - - - - - (5 ) Recoveries - - 9 1 - - - 10 Provisions (credits) (27 ) (111 ) 47 (69 ) 164 (2 ) (2 ) - March 31, 2016 1,943 624 1,083 609 650 121 217 5,247 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of March 31, 2017 December 31, 2016: (In thousands) Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent [CRE] Unallocated Total March 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ - - 232 - - - - 232 Collectively evaluated for impairment 2,198 1,073 817 583 591 77 126 5,465 Total allowance for loan losses $ 2,198 1,073 1,049 583 591 77 126 5,697 Loans receivable, gross: Individually evaluated for impairment $ 6,204 1,908 232 541 - - - 8,885 Collectively evaluated for impairment 259,064 153,232 62,143 95,352 44,512 7,539 - 621,842 Total loans receivable, gross 265,268 155,140 62,375 95,893 44,512 7,539 - 630,727 Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent [CRE] Unallocated Total December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ - - 231 - - - - 231 Collectively evaluated for impairment 1,853 534 509 641 712 69 126 4,444 Total allowance for loan losses $ 1,853 534 740 641 712 69 126 4,675 Loans receivable, gross: Individually evaluated for impairment $ 6,267 1,911 231 542 - - - 8,951 Collectively evaluated for impairment 264,962 84,603 60,746 100,907 53,895 7,593 - 572,706 Total loans receivable, gross 271,229 86,514 60,977 101,449 53,895 7,593 - 581,657 Patriot monitors the credit quality of its loans receivable on an ongoing basis. Credit quality is monitored by reviewing certain indicators, including loan to value ratios, debt service coverage ratios, and credit scores. Patriot employs a risk rating system as part of the risk assessment of its loan portfolio. At origination, lending officers are required to assign a risk rating to each loan in their portfolio, which is ratified or modified by the Loan Committee to which the loan is submitted for approval. If financial developments occur on a loan in the lending officer’s portfolio of responsibility, the risk rating is reviewed and adjusted, as applicable. In carrying out its oversight responsibilities, the Loan Committee can adjust a risk rating based on available information. In addition, the risk ratings on all commercial loans over $250,000 Additionally, Patriot retains a third When assigning a risk rating to a loan, management utilizes the Bank’s internal eleven one ● Sub-standard: An asset is considered “substandard” if it is not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Sub-standard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss, if noted deficiencies are not corrected. ● Doubtful: Assets classified as “doubtful” have all of the weaknesses inherent in those classified “sub-standard”, with the added characteristic that the weaknesses present make collection or liquidation-in–full improbable, on the basis of currently existing facts, conditions, and values. Charge–offs, to reduce the loan to its recoverable value, generally commence after the loan is classified as “doubtful”. In accordance with Federal Financial Institutions Examination Council published policies establishing uniform criteria for the classification of retail credit based on delinquency status, “Open-end” and “Closed-end” credits are charged off when 180 and120 If an account is classified as “Loss”, the full balance of the loan receivable is charged off, regardless of the potential recovery from a sale of the underlying collateral. Any amount that may In March 2017, 2016, $2.8 The following tables summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of March 31, 2017 December 31, 2016: (In thousands) Non-accruing Loans 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Non-accruing Loans As of March 31, 2017: Loan portfolio segment: Residential Real Estate: Sub-standard $ - - 1,590 1,590 - 1,590 Commercial and Industrial: Sub-standard - - 232 232 - 232 Total non-accruing loans $ - - 1,822 1,822 - 1,822 As of December 31, 2016: Loan portfolio segment: Residential Real Estate: Sub-standard $ - - 1,590 1,590 - 1,590 Commercial and Industrial: Sub-standard - - 231 231 - 231 Total non-accruing loans $ - - 1,821 1,821 - 1,821 If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income of $21,000 $17,000 three March 31, 2017 2016, Additionally, certain loans for which the borrower cannot demonstrate sufficient cash flow to continue loan payments in the future and certain troubled debt restructurings (“TDRs”) are placed on non-accrual status. During the three March 31, 2017 2016, no The accrual of interest on loans is discontinued at the time the loan is 90 180 six 90 The following tables summarize performing and non-performing loans receivable by portfolio segment, by aging category, by delinquency status as of March 31, 2017 December 31, 2016. (In thousands) Performing (Accruing) Loans As of March 31, 2017: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Current Total Performing Loans Non-accruing Loans Loans Receivable Gross Loan portfolio segment: Commercial Real Estate: Pass $ 1,623 1,725 - 3,348 253,498 256,846 - 256,846 Special Mention - - - - 6,987 6,987 - 6,987 Substandard - - - - 1,435 1,435 - 1,435 1,623 1,725 - 3,348 261,920 265,268 - 265,268 Residential Real Estate: Pass 352 140 1,447 1,939 151,611 153,550 - 153,550 Substandard - - - - - - 1,590 1,590 352 140 1,447 1,939 151,611 153,550 1,590 155,140 Commercial and Industrial: Pass 1,776 1,450 - 3,226 58,878 62,104 - 62,104 Substandard 38 - - 38 1 39 232 271 1,814 1,450 - 3,264 58,879 62,143 232 62,375 Consumer and Other: Pass 63 27 13 103 95,790 95,893 - 95,893 Construction: Pass - - - - 44,512 44,512 - 44,512 Construction to permanent - CRE: Pass - - - - 7,539 7,539 - 7,539 Loans receivable, gross: Pass 3,814 3,342 1,460 8,616 611,828 620,444 - 620,444 Special Mention - - - - 6,987 6,987 - 6,987 Substandard 38 - - 38 1,436 1,474 1,822 3,296 Loans receivable, gross $ 3,852 3,342 1,460 8,654 620,251 628,905 1,822 630,727 (In thousands) Performing (Accruing) Loans As of December 31, 2016: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Current Total Performing Loans Non-accruing Loans Loans Receivable Gross Loan portfolio segment: Commercial Real Estate: Pass $ - - - - 265,246 265,246 - 265,246 Special Mention - - - - 4,531 4,531 - 4,531 Substandard - - - - 1,452 1,452 - 1,452 - - - - 271,229 271,229 - 271,229 Residential Real Estate: Pass 131 9 1,449 1,589 83,335 84,924 - 84,924 Substandard - - - - - - 1,590 1,590 131 9 1,449 1,589 83,335 84,924 1,590 86,514 Commercial and Industrial: Pass 47 4 - 51 60,692 60,743 - 60,743 Substandard - - - - 3 3 231 234 47 4 - 51 60,695 60,746 231 60,977 Consumer and Other: Pass 75 - 3 78 101,371 101,449 - 101,449 Construction: Pass - - - - 53,895 53,895 - 53,895 Construction to permanent - CRE: Pass - - - - 7,593 7,593 - 7,593 Loans receivable, gross: Pass 253 13 1,452 1,718 572,132 573,850 - 573,850 Special Mention - - - - 4,531 4,531 - 4,531 Substandard - - - - 1,455 1,455 1,821 3,276 Loans receivable, gross $ 253 13 1,452 1,718 578,118 579,836 1,821 581,657 Troubled Debt Restructurings (“TDR”) On a case-by-case basis, Patriot may may There were no no three March 31, 2017 2016. March 31, 2017 December 31, 2016, Substantially all TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below the contract rate, an extension of the term of the loan, or a combination of adjusting these two contractual attributes . TDR loan modifications may may six Impaired Loans Impaired loans may As of March 31, 2017 December 31, 2016, $8.9 $8.9 $232,000 $231,000 Loans not requiring specific reserves had sufficient collateral values, less costs to sell, supporting the carrying amount of the loans. Once a borrower is in default, Patriot is under no obligation to advance additional funds on unused commitments. At March 31, 2017 $8.9 10 may may The following summarizes the investment in, outstanding principal balance of, and the related allowance, if any, for impaired loans as of March 31, 2017 December 31, 2016: (In thousands) March 31, 2017 December 31, 2016 Recorded Investment Principal Outstanding Related Allowance Recorded Investment Principal Outstanding Related Allowance With no related allowance recorded: Commercial Real Estate $ 6,204 6,656 - 6,267 6,721 - Residential Real Estate 1,908 1,941 - 1,911 2,915 - Commercial and Industrial - - - - - - Consumer and Other 541 630 - 542 631 - Construction - 287 - - - - 8,653 9,514 - 8,720 10,267 - With a related allowance recorded: Commercial Real Estate - - - - - - Residential Real Estate - - - - - - Commercial and Industrial 232 232 232 231 231 231 Consumer and Other - - - - - - Construction - - - - - - 232 232 232 231 231 231 Impaired Loans, Total: Commercial Real Estate 6,204 6,656 - 6,267 6,721 - Residential Real Estate 1,908 1,941 - 1,911 2,915 - Commercial and Industrial 232 232 232 231 231 231 Consumer and Other 541 630 - 542 631 - Construction - 287 - - - - Impaired Loans, Total $ 8,885 9,746 232 8,951 10,498 231 The following tables summarize additional information regarding impaired loans for the three March 31, 2017 2016. (In thousands) Three Months Ended March 31, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 6,236 73 7,270 91 Residential Real Estate 1,910 3 4,542 31 Commercial and Industrial - - - - Consumer and Other 541 5 546 5 8,687 81 12,358 127 With a related allowance recorded: Commercial Real Estate - - - - Residential Real Estate - - - - Commercial and Industrial 231 - 2,977 - Consumer and Other - - 2 - 231 - 2,979 - Impaired Loans, Total: Commercial Real Estate 6,236 73 7,270 91 Residential Real Estate 1,910 3 4,542 31 Commercial and Industrial 231 - 2,977 - Consumer and Other 541 5 548 5 Impaired Loans, Total $ 8,918 81 15,337 127 |