Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 : Loans Receivable and Allowance for Loan Losses As of March 31, 2018 December 31, 2017, (In thousands) Loan portfolio segment: March 31, December 31, Commercial Real Estate $ 313,868 299,925 Residential Real Estate 144,633 146,377 Commercial and Industrial 129,913 131,161 Consumer and Other 83,185 87,707 Construction 46,348 47,619 Construction to permanent - CRE 6,608 6,858 Loans receivable, gross 724,555 719,647 Allowance for loan losses (6,485 ) (6,297 ) Loans receivable, net $ 718,070 713,350 Patriot's lending activities are conducted principally in Fairfield and New Haven Counties in Connecticut and Westchester County in New York, and the five 2016. 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, may In March 2017, $73 $985,000 No first 2018. 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 – Commercial Real Estate (“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 March 31, 2018 2017: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Three months ended March 31, 2018 Allowance for loan losses: December 31, 2017 $ 2,212 959 2,023 568 481 54 - 6,297 Charge-offs - - - - - - - - Recoveries 3 - - - - - - 3 Provisions (credits) 265 114 (264 ) (22 ) 7 7 78 185 March 31, 2018 $ 2,480 1,073 1,759 546 488 61 78 6,485 Three months ended March 31, 2017 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 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of March 31, 2018 December 31, 2017: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total March 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ - - 51 4 - - - 55 Collectively evaluated for impairment 2,480 1,073 1,708 542 488 61 78 6,430 Total allowance for loan losses $ 2,480 1,073 1,759 546 488 61 78 6,485 Loans receivable, gross: Individually evaluated for impairment $ 2,429 3,343 1,521 694 - - - 7,987 Collectively evaluated for impairment 311,439 141,290 128,392 82,491 46,348 6,608 - 716,568 Total loans receivable, gross $ 313,868 144,633 129,913 83,185 46,348 6,608 - 724,555 (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 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 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 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, 2018 December 31, 2017: (In thousands) Non-accruing Loans 30 - 59 Days 60 - 89 Days 90 Days Past Due Total Current Total As of March 31, 2018: Loan portfolio segment: Commercial Real Estate Sub-standard $ - - 474 474 - 474 Residential Real Estate: Sub-standard - - 3,037 3,037 - 3,037 Commercial and Industrial: Sub-standard - 6 1,515 1,521 - 1,521 Consumer and Other Sub-standard - - 4 4 - 4 Total non-accruing loans $ - 6 5,030 5,036 - 5,036 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 If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income of $81,000 $21,000 three March 31, 2018 2017, 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, 2018 2017, 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 March 31, 2018 December 31, 2017. (In thousands) Performing (Accruing) Loans As of March 31, 2018: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ 19 670 - 689 299,011 299,700 - 299,700 Special Mention - - - - 9,989 9,989 - 9,989 Substandard - 2,705 - 2,705 1,000 3,705 474 4,179 19 3,375 - 3,394 310,000 313,394 474 313,868 Residential Real Estate: Pass 121 1,271 - 1,392 138,685 140,077 - 140,077 Special Mention 1,519 - - 1,519 - 1,519 - 1,519 Substandard - - - - - - 3,037 3,037 1,640 1,271 - 2,911 138,685 141,596 3,037 144,633 Commercial and Industrial: Pass 293 829 - 1,122 127,270 128,392 - 128,392 Substandard - - - - - - 1,521 1,521 293 829 - 1,122 127,270 128,392 1,521 129,913 Consumer and Other: Pass 129 80 350 559 82,622 83,181 - 83,181 Substandard - - - - - - 4 4 129 80 350 559 82,622 83,181 4 83,185 Construction: Pass - - 2,039 2,039 35,509 37,548 - 37,548 Substandard - - 8,800 8,800 - 8,800 - 8,800 - - 10,839 10,839 35,509 46,348 - 46,348 Construction to permanent - CRE: Pass - - - - 6,608 6,608 - 6,608 Total $ 2,081 5,555 11,189 18,825 700,694 719,519 5,036 724,555 Loans receivable, gross: Pass $ 562 2,850 2,389 5,801 689,705 695,506 - 695,506 Special Mention 1,519 - - 1,519 9,989 11,508 - 11,508 Substandard - 2,705 8,800 11,505 1,000 12,505 5,036 17,541 Loans receivable, gross $ 2,081 5,555 11,189 18,825 700,694 719,519 5,036 724,555 (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 As of March 31, 2018, 90 two Troubled Debt Restructurings (“TDR”) On a case-by-case basis, Patriot may may There were no no three March 31, 2018 2017. March 31, 2018 December 31, 2017, 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 March 31, 2018 December 31, 2017, $8.0 $6.8 $55,000 $253,000 not may no no At March 31, 2018 December 31, 2017, 15 12 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, 2018 December 31, 2017: (In thousands) March 31, 2018 December 31, 2017 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 2,429 2,429 - 1,977 2,425 - Residential Real Estate 3,343 3,343 - 3,336 3,369 - Commercial and Industrial 1,470 1,470 - 497 683 - Consumer and Other 690 690 - 690 818 - 7,932 7,932 - 6,500 7,295 - With a related allowance recorded: Commercial Real Estate - - - - - - Residential Real Estate - - - - - - Commercial and Industrial 51 51 51 251 251 251 Consumer and Other 4 4 4 2 2 2 55 55 55 253 253 253 Impaired Loans, Total: Commercial Real Estate 2,429 2,429 - 1,977 2,425 - Residential Real Estate 3,343 3,343 - 3,336 3,369 - Commercial and Industrial 1,521 1,521 51 748 934 251 Consumer and Other 694 694 4 692 820 2 Impaired Loans, Total $ 7,987 7,987 55 6,753 7,548 253 The following tables summarize additional information regarding impaired loans for the three March 31, 2018 2017. (In thousands) Three Months Ended March 31, 2018 2017 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 2,205 25 6,236 73 Residential Real Estate 3,342 3 1,910 3 Commercial and Industrial 739 - - - Consumer and Other 691 7 541 5 6,977 35 8,687 81 With a related allowance recorded: Commercial Real Estate - - - - Residential Real Estate - - - - Commercial and Industrial 393 - 231 - Consumer and Other 2 - - - 395 - 231 - Impaired Loans, Total: Commercial Real Estate 2,205 25 6,236 73 Residential Real Estate 3,342 3 1,910 3 Commercial and Industrial 1,132 - 231 - Consumer and Other 693 7 541 5 Impaired Loans, Total $ 7,372 35 8,918 81 |