Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3: Loans Receivable and Allowance for Loan Losses As of September 30, 2017 December 31, 2016, (In thousands) Loan portfolio segment: September 30, 2017 December 31, 2016 Commercial Real Estate $ 296,625 271,229 Residential Real Estate 150,664 86,514 Commercial and Industrial 117,673 60,977 Consumer and Other 90,973 101,449 Construction 48,328 53,895 Construction to permanent - CRE 5,855 7,593 Loans receivable, gross 710,118 581,657 Allowance for loan losses (6,222 ) (4,675 ) Loans receivable, net $ 703,896 576,982 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% ’s loan origination policy for multi–family residential real estate is limited to 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 In 2013, may In March 2017, d $73 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 not The Company does not 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 may Construction to Permanent – CRE One time close of a construction facility with simultaneous conversion to an amortizing mortgage loan. Construction to permanent loans combine a short term period similar to a construction loan, generally with a variable rate, and a longer term CRE loan typically 20 25 five 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. Allowance for Loan Losses The following tables summarize the activity in the allowance for loan losses, allocated to segments of the loan portfolio, for the three nine September 30, 2017 2016: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Three months ended September 30, 2017 Allowance for loan losses: June 30, 2017 $ 2,218 1,041 1,453 593 490 73 76 5,944 Charge-offs - - (265 ) (10 ) - - - (275 ) Recoveries 6 - - 2 - - - 8 Provisions (credits) (52 ) 4 685 (327 ) 293 (27 ) (31 ) 545 September 30, 2017 $ 2,172 1,045 1,873 258 783 46 45 6,222 Three months ended September 30, 2016 Allowance for loan losses: June 30, 2016 $ 2,295 647 3,400 531 169 145 22 7,209 Charge-offs - (186 ) (50 ) (2 ) - - - (238 ) Recoveries - 2 - - - - - 2 Provisions (credits) (491 ) 949 352 (329 ) (108 ) (18 ) - 355 September 30, 2016 $ 1,804 1,412 3,702 200 61 127 22 7,328 (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Nine months ended September 30, 2017 Allowance for loan losses: December 31, 2016 $ 1,853 534 740 641 712 69 126 4,675 Charge-offs - - (265 ) (23 ) - - - (288 ) Recoveries 8 - 2,769 2 - - - 2,779 Provisions (credits) 311 511 (1,371 ) (362 ) 71 (23 ) (81 ) (944 ) September 30, 2017 $ 2,172 1,045 1,873 258 783 46 45 6,222 Nine months ended September 30, 2016 Allowance for loan losses: December 31, 2015 $ 1,970 740 1,027 677 486 123 219 5,242 Charge-offs - (190 ) (50 ) (4 ) - - - (244 ) Recoveries - 3 12 1 - - - 16 Provisions (credits) (166 ) 859 2,713 (474 ) (425 ) 4 (197 ) 2,314 September 30, 2016 $ 1,804 1,412 3,702 200 61 127 22 7,328 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of September 30, 2017 December 31, 2016: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total September 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ - - 285 - - - - 285 Collectively evaluated for impairment 2,172 1,045 1,588 258 783 46 45 5,937 Total allowance for loan losses $ 2,172 1,045 1,873 258 783 46 45 6,222 Loans receivable, gross: Individually evaluated for impairment $ 6,081 1,904 285 715 - - - 8,985 Collectively evaluated for impairment 290,544 148,760 117,388 90,258 48,328 5,855 - 701,133 Total loans receivable, gross $ 296,625 150,664 117,673 90,973 48,328 5,855 - 710,118 (In thousands) Commercial Residential Commercial Consumer Construction Construction 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 not one ● Sub-standard: An asset is considered “substandard” if it is not not ● 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, recognized in 2016, $2.8 The following table s summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of September 30, 2017 December 31, 2016: (In thousands) Non-accruing Loans 30 - 59 Days 60 - 89 Days 90 Days Total Current Total As of September 30, 2017: Loan portfolio segment: Residential Real Estate: Sub-standard $ - - 1,590 1,590 - 1,590 Commercial and Industrial: Sub-standard - - 286 286 - 286 Consumer and Other Sub-standard - - 175 175 - 175 Total non-accruing loans $ - - 2,051 2,051 - 2,051 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 $ 27,000 $70,000 three nine September 30, 2017, three nine September 30, 2016, $70,000 $266,000 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 nine September 30, 2017 2016, no The accrual of interest on loans is discontinued at the time the loan is 90 no 180 not six 90 not The following tables summarize performing and non-performing loans receivable by portfolio segment, by aging category, by delinquency status as of September 30, 2017 December 31, 2016. (In thousands) Performing (Accruing) Loans As of September 30, 2017: 30 - 59 Days 60 - 89 Days 90 Days Past Due Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ 1,300 - - 1,300 277,475 278,775 - 278,775 Special Mention 652 - - 652 12,510 13,162 - 13,162 Substandard - 1,699 - 1,699 2,989 4,688 - 4,688 1,952 1,699 - 3,651 292,974 296,625 - 296,625 Residential Real Estate: Pass 556 364 1,447 2,367 145,170 147,537 - 147,537 Special Mention - - - - 1,537 1,537 - 1,537 Substandard - - - - - - 1,590 1,590 556 364 1,447 2,367 146,707 149,074 1,590 150,664 Commercial and Industrial: Pass 1,799 500 2,500 4,799 112,088 116,887 - 116,887 Substandard - - 500 500 - 500 286 786 1,799 500 3,000 5,299 112,088 117,387 286 117,673 Consumer and Other: Pass - 125 - 125 90,673 90,798 - 90,798 Substandard - - - - - - 175 175 - 125 - 125 90,673 90,798 175 90,973 Construction: Pass - - - - 48,328 48,328 - 48,328 Construction to permanent - CRE: Pass - - - - 5,855 5,855 - 5,855 Total $ 4,307 2,688 4,447 11,442 696,625 708,067 2,051 710,118 Loans receivable, gross: Pass $ 3,655 989 3,947 8,591 679,589 688,180 - 688,180 Special Mention 652 - - 652 14,047 14,699 - 14,699 Substandard - 1,699 500 2,199 2,989 5,188 2,051 7,239 Loans receivable, gross $ 4,307 2,688 4,447 11,442 696,625 708,067 2,051 710,118 (In thousands) Performing (Accruing) Loans As of December 31, 2016: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non-accruing Loans 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 Total $ 253 13 1,452 1,718 578,118 579,836 1,821 581,657 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 nine September 30, 2017 2016. September 30, 2017 December 31, 2016, no 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 September 30, 2017 December 31, 2016, $9.0 $8.9 $285,000 $231,000 Loans not no At September 30, 2017 $9.0 12 may may The following summarizes the investment in, outstanding principal balance of, and the related allowance, if any, for impaired loans as of September 30, 2017 December 31, 2016: (In thousands) September 30, 2017 December 31, 2016 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 6,081 6,531 - 6,267 6,721 - Residential Real Estate 1,904 1,935 - 1,911 2,915 - Commercial and Industrial - 503 - - - - Consumer and Other 715 809 - 542 631 - Construction - 39 - - - - 8,700 9,817 - 8,720 10,267 - With a related allowance recorded: Commercial Real Estate - - - - - - Residential Real Estate - - - - - - Commercial and Industrial 285 285 285 231 231 231 Consumer and Other - - - - - - Construction - - - - - - 285 285 285 231 231 231 Impaired Loans, Total: Commercial Real Estate 6,081 6,531 - 6,267 6,721 - Residential Real Estate 1,904 1,935 - 1,911 2,915 - Commercial and Industrial 285 788 285 231 231 231 Consumer and Other 715 809 - 542 631 - Construction - 39 - - - - Impaired Loans, Total $ 8,985 10,102 285 8,951 10,498 231 The following tables summarize additional information regarding impaired loans for the three nine September 30, 2017 2016. (In thousands) Three Months Ended September 30, 2017 2016 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 6,111 10 6,428 77 Residential Real Estate 1,903 - 4,787 36 Commercial and Industrial 37 - 148 - Consumer and Other 584 - 272 - 8,635 10 11,635 113 With a related allowance recorded: Commercial Real Estate - - - - Residential Real Estate - - - - Commercial and Industrial 245 - 3,068 - Consumer and Other - - 2 - 245 - 3,070 - Impaired Loans, Total: Commercial Real Estate 6,111 10 6,428 77 Residential Real Estate 1,903 - 4,787 36 Commercial and Industrial 282 - 3,216 - Consumer and Other 584 - 274 - Impaired Loans, Total $ 8,880 10 14,705 113 (In thousands) Nine Months Ended September 30, 2017 2016 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 6,173 159 7,281 236 Residential Real Estate 1,907 5 4,666 98 Commercial and Industrial 46 - 74 - Consumer and Other 558 10 409 9 8,684 174 12,430 343 With a related allowance recorded: Commercial Real Estate - - - - Residential Real Estate - - - - Commercial and Industrial 237 - 2,278 - Consumer and Other - - 2 - 237 - 2,280 - Impaired Loans, Total: Commercial Real Estate 6,173 159 7,281 236 Residential Real Estate 1,907 5 4,666 98 Commercial and Industrial 283 - 2,352 - Consumer and Other 558 10 411 9 Impaired Loans, Total $ 8,921 174 14,710 343 |