Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loan Receivables and Allowance for Loan Losses As of December 31, 2017 2016, (In thousands) Loan portfolio segment: December 31, 2017 December 31, 2016 Commercial Real Estate $ 299,925 271,229 Residential Real Estate 146,377 86,514 Commercial and Industrial 131,161 60,977 Consumer and Other 87,707 101,449 Construction 47,619 53,895 Construction to permanent - CRE 6,858 7,593 Loans receivable, gross 719,647 581,657 Allowance for loan losses (6,297 ) (4,675 ) Loans receivable, net $ 713,350 576,982 Patriot 's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York, and the five . All commercial and residential real estate loans are collateralized primarily by 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 In 2013, mortgages on personal residences. Repayment of residential real estate loans may In March 2017, 73 $985,000 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 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 , and other factors. Construction loans tend to be personally guaranteed by the principal(s). Repayment of such loans may Construction to Perm anent – 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 each year in the three December 31, 2017: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total As of and for the year ended December 31, 2017 Allowance for loan losses: December 31, 2016 $ 1,853 534 740 641 712 69 126 4,675 Charge-offs - - (265 ) (39 ) - - - (304 ) Recoveries 10 - 2,769 4 - - - 2,783 Provisions (credits) 349 425 (1,221 ) (38 ) (231 ) (15 ) (126 ) (857 ) December 31, 2017 $ 2,212 959 2,023 568 481 54 - 6,297 As of and for the year ended December 31, 2016 Allowance for loan losses: December 31, 2015 $ 1,970 740 1,027 677 486 123 219 5,242 Charge-offs - (190 ) (2,977 ) (13 ) - - - (3,180 ) Recoveries 80 1 66 2 - - - 149 Provisions (credits) (197 ) (17 ) 2,624 (25 ) 226 (54 ) (93 ) 2,464 December 31, 2016 $ 1,853 534 740 641 712 69 126 4,675 As of and for the year ended December 31, 2015 Allowance for loan losses: December 31, 2014 $ 1,204 949 1,753 638 49 179 152 4,924 Charge-offs - (16 ) - (16 ) - - - (32 ) Recoveries 35 - 49 11 - 5 - 100 Provisions (credits) 731 (193 ) (775 ) 44 437 (61 ) 67 250 December 31, 2015 $ 1,970 740 1,027 677 486 123 219 5,242 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of December 31, 2017 2016: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ - - 251 2 - - - 253 Collectively evaluated for impairment 2,212 959 1,772 566 481 54 - 6,044 Total allowance for loan losses $ 2,212 959 2,023 568 481 54 - 6,297 Loans receivable, gross: Individually evaluated for impairment $ 1,977 3,336 748 692 - - - 6,753 Collectively evaluated for impairment 297,948 143,041 130,413 87,015 47,619 6,858 - 712,894 Total loans receivable, gross $ 299,925 146,377 131,161 87,707 47,619 6,858 - 719,647 (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- party objective and independent loan reviewing expert to perform a quarterly analysis of the results of its risk rating process. The quarterly review is based on a randomly selected sample of loans within established parameters (e.g., value, concentration), in order to assess and validate the risk ratings assigned to individual loans. Any changes to the assigned risk ratings, based on the quarterly review, are required to be approved by the Loan Committee. When assigning a risk rating to a loan, management utilizes the Bank ’s internal eleven not one ● Sub -standard: An asset is classified “sub-standard” if it is not not ● Doubtful: Assets classified as “doubtful” have all of the weaknesses inherent in those classified as “sub-standard”, with the added characteristic that the identified weaknesses 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 180 120 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 December 31, 2017 2016: (In thousands) Non-accruing Loans 30 - 59 Days 60 - 89 Days 90 Days Total Current Total As of December 31, 2017: Loan portfolio segment: Residential Real Estate: Sub-standard $ - - 3,028 3,028 - 3,028 Commercial and Industrial: Sub-standard - - 748 748 - 748 Consumer and Other Sub-standard - - 2 2 - 2 Total non-accruing loans $ - - 3,778 3,778 - 3,778 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-accruing loans had been performing in accordance with the original contractual terms, additional interest income of $209,000, $79,000, $39,000 December 31, 2017, 2016, 2015, 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 years ended December 31, 2017 2016, 2015, no The accrual of interest on loans is discontinued at th e time the loan is 90 no 180 not six 90 not The following table s summarize performing and non-performing loans receivable by portfolio segment, by aging category, by delinquency status as of December 31, 2017. (In thousands) Performing (Accruing) Loans As of December 31, 2017: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ - - - - 286,428 286,428 - 286,428 Special Mention - 1,121 - 1,121 9,317 10,438 - 10,438 Substandard - 1,688 - 1,688 1,371 3,059 - 3,059 - 2,809 - 2,809 297,116 299,925 - 299,925 Residential Real Estate: Pass 1,068 255 - 1,323 140,497 141,820 - 141,820 Special Mention - 1,529 - 1,529 - 1,529 - 1,529 Substandard - - - - - - 3,028 3,028 1,068 1,784 - 2,852 140,497 143,349 3,028 146,377 Commercial and Industrial: Pass - 2,000 375 2,375 127,057 129,432 - 129,432 Special Mention - - - - - - - - Substandard - - 981 981 - 981 748 1,729 - 2,000 1,356 3,356 127,057 130,413 748 131,161 Consumer and Other: Pass 498 - - 498 87,207 87,705 - 87,705 Substandard - - - - - - 2 2 498 - - 498 87,207 87,705 2 87,707 Construction: Pass - - - - 47,619 47,619 - 47,619 Construction to permanent - CRE: Pass - - - - 6,858 6,858 - 6,858 Total $ 1,566 6,593 1,356 9,515 706,354 715,869 3,778 719,647 Loans receivable, gross: Pass $ 1,566 2,255 375 4,196 695,666 699,862 - 699,862 Special Mention - 2,650 - 2,650 9,317 11,967 - 11,967 Substandard - 1,688 981 2,669 1,371 4,040 3,778 7,818 Loans receivable, gross $ 1,566 6,593 1,356 9,515 706,354 715,869 3,778 719,647 The following tables summarize performing and non-performing loans receivable by portfolio segment, by aging category, by delinquency status as of December 31, 2016. (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 either year ended December 31, 2017 2016 no three December 31, 2017. December 31, 2017 2016, no Substantially all TDR loan modifications involve lowering the monthly payments on such loans through either a reduction in interest rate below market rate, an extension of the term of the loan, or a combination of adjusting these two may may six Impaired Loans Impaired loans may December 31, 2017 2016, $6.8 $8.9 $253,000 $231,000 not may no no At December 31, 2017 2016, 12 9 may may The following summarize s the investment in, outstanding principal balance of, and the related allowance, if any, for impaired loans as of December 31, 2017 2016: (In thousands) Balance as of December 31, 2017 2016 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 1,977 2,425 - 6,267 6,721 - Residential Real Estate 3,336 3,369 - 1,911 2,915 - Commercial and Industrial 497 683 - - - - Consumer and Other 690 818 - 542 631 - 6,500 7,295 - 8,720 10,267 - With a related allowance recorded: Commercial Real Estate - - - - - - Residential Real Estate - - - - - - Commercial and Industrial 251 251 251 231 231 231 Consumer and Other 2 2 2 - - - 253 253 253 231 231 231 Impaired Loans, Total: Commercial Real Estate 1,977 2,425 - 6,267 6,721 - Residential Real Estate 3,336 3,369 - 1,911 2,915 - Commercial and Industrial 748 934 251 231 231 231 Consumer and Other 692 820 2 542 631 - Impaired Loans, Total $ 6,753 7,548 253 8,951 10,498 231 For each year in the three December 31, 2017, (In thousands) Year ended December 31, 2017 2016 2015 Average Interest Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 5,832 102 6,929 312 8,001 373 Residential Real Estate 2,016 11 4,318 9 3,512 126 Commercial and Industrial 197 - 265 - - - Consumer and Other 593 22 544 19 550 18 8,638 135 12,056 340 12,063 517 With a related allowance recorded: Commercial Real Estate - - 65 - - - Residential Real Estate - - - - - - Commercial and Industrial 243 - 2,138 - - - Consumer and Other - - 2 - 3 - 243 - 2,205 - 3 - Impaired Loans, Total: Commercial Real Estate 5,832 102 6,994 312 8,001 373 Residential Real Estate 2,016 11 4,318 9 3,512 126 Commercial and Industrial 440 - 2,403 - - - Consumer and Other 593 22 546 19 553 18 Impaired Loans, Total $ 8,881 135 14,261 340 12,066 517 |