Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 : Loans Receivable and Allowance for L oan and L ease L osses As of June 30, 2019 December 31, 2018, (In thousands) June 30, December 31, Loan portfolio segment: Commercial Real Estate $ 311,760 274,938 Residential Real Estate 163,025 157,300 Commercial and Industrial 181,204 191,852 Consumer and Other 100,360 94,569 Construction 44,180 46,040 Construction to Permanent - CRE 11,248 15,677 Loans receivable, gross 811,777 780,376 Allowance for loan and lease losses (8,458 ) (7,609 ) Loans receivable, net $ 803,319 772,767 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 In connection with the Prime Bank merger in May 2018, 310 30. $417,000 June 30, 2019. Income is recognized on PCI loans pursuant to ASC Topic 310 30. not A summary of changes in the accretable discount for PCI loans for the three six June 30, 2019 (In thousands) For the three Months Ended June 30, 2019 For the Six Months Ended Accretable discount, beginning of period $ (194 ) (792 ) Accretion 9 34 Other changes, net (16 ) 557 Accretable discount, end of period $ (201 ) (201 ) The accretion of the accretable discount for PCI loans for the three six June 30, 2019 $9,000, $34,000, first 2019. 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 During the three six June 30, 2019, $14.0 $18.8 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 Patriot’s syndicated and leveraged loan portfolio are included in the commercial and industrial loan classification and are primarily comprised of loan transactions led by major financial institutions and regional banks, which are the Agent Bank or Lead Arranger, and are referred to as syndicated loans or "Shared National Credits (SNC)". SNC loans were determined to be complementary to the Bank’s existing commercial and industrial loan portfolio and product offerings and provide diversification from Patriot’s typical direct-to-business lines of credit and term facilities. The Bank will participate in senior secured financings for public and privately-owned companies for acquisitions, working capital, recapitalizations, and general corporate purposes. The Bank’s strategy is to participate in these types of loan transaction in accordance with its internal policies. 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 Patriot purchased $7.3 three six June 30, 2019. No first 2018. 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. SBA Loans Patriot originates SBA 7 75 Allowance for L oan and L ease L osses The following tables summarize the activity in the allowance for loan and lease losses, allocated to segments of the loan portfolio, for the three June 30, 2019 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Three months ended June 30, 2019 Allowance for loan and lease losses: March 31, 2019 $ 1,862 1,389 3,490 592 355 123 12 7,823 Charge-offs - (12 ) (2,292 ) (3 ) - - - (2,307 ) Recoveries 2 - - 3 - - - 5 Provisions (credits) 114 (441 ) 3,010 72 112 (18 ) 88 2,937 June 30, 2019 $ 1,978 936 4,208 664 467 105 100 8,458 Three months ended June 30, 2018 Allowance for loan and lease losses: March 31, 2018 $ 2,480 1,073 1,759 546 488 61 78 6,485 Charge-offs - - - (13 ) - - - (13 ) Recoveries 3 - - - - - - 3 Provisions (credits) (178 ) 23 237 (10 ) 11 19 (52 ) 50 June 30, 2018 $ 2,305 1,096 1,996 523 499 80 26 6,525 The following tables summarize the activity in the allowance for loan and lease losses, allocated to segments of the loan portfolio, for the six June 30, 2019 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Six months ended June 30, 2019 Allowance for loan and lease losses: December 31, 2018 $ 1,866 1,059 3,558 641 350 108 27 7,609 Charge-offs - (12 ) (2,292 ) (3 ) - - - (2,307 ) Recoveries 2 - 47 5 - - - 54 Provisions (credits) 110 (111 ) 2,895 21 117 (3 ) 73 3,102 June 30, 2019 $ 1,978 936 4,208 664 467 105 100 8,458 Six months ended June 30, 2018 Allowance for loan and lease losses: December 31, 2017 $ 2,212 959 2,023 568 481 54 - 6,297 Charge-offs - - - (13 ) - - - (13 ) Recoveries 6 - - - - - - 6 Provisions (credits) 87 137 (27 ) (32 ) 18 26 26 235 June 30, 2018 $ 2,305 1,096 1,996 523 499 80 26 6,525 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of June 30, 2019 December 31, 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total June 30, 2019 Allowance for loan and lease losses: Individually evaluated for impairment $ - - - - - - - - Collectively evaluated for impairment 1,978 936 4,208 664 467 105 100 8,458 Total allowance for loan losses $ 1,978 936 4,208 664 467 105 100 8,458 Loans receivable, gross: Individually evaluated for impairment $ 13,466 3,851 2,676 1,000 - - - 20,993 PCI loans individually evaluated for impairment - - 417 - - - - 417 Collectively evaluated for impairment 298,294 159,174 178,111 99,360 44,180 11,248 - 790,367 Total loans receivable, gross $ 311,760 163,025 181,204 100,360 44,180 11,248 - 811,777 (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total December 31, 2018 Allowance for loan and lease losses: Individually evaluated for impairment $ - 216 1,299 30 - - - 1,545 Collectively evaluated for impairment 1,866 843 2,259 611 350 108 27 6,064 Total allowance for loan losses $ 1,866 1,059 3,558 641 350 108 27 7,609 Loans receivable, gross: Individually evaluated for impairment $ 4,606 2,302 4,646 864 8,800 - - 21,218 PCI loans individually evaluated for impairment - - 615 - - - - 615 Collectively evaluated for impairment 270,332 154,998 186,591 93,705 37,240 15,677 - 758,543 Total loans receivable, gross $ 274,938 157,300 191,852 94,569 46,040 15,677 - 780,376 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 an objective and independent third When assigning a risk rating to a loan, management utilizes the Bank’s internal eleven not one ● Substandard: An asset is classified “substandard” if it is not not ● Doubtful: Assets classified as “doubtful” have all of the weaknesses inherent in those classified as “substandard”, 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 of loans that are solely collateral dependent, to reduce the loan to its recoverable value, generally occur immediately upon confirmation of the loss amount. Loans that are cash flow dependent are modeled to reflect the expected cash flows through expected loan maturity, including any proceeds from refinancing or principal curtailment. A specific reserve is established for the amount by which the net investment in the loan exceeds the present value of discounted cash flows. Charge-offs on cash flow dependent loans also generally occur immediately upon confirmation of the loss amount. If either type of loan 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 180 120 Loan Portfolio Aging Analysis The following tables summarize performing and non-performing (i.e., non-accruing) loans receivable by portfolio segment, by aging category, by delinquency status as of June 30, 2019. (In thousands) Performing (Accruing) Loans As of June 30, 2019: 30 - 59 Days 60 - 89 Days 90 Days Due Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ 962 622 - 1,584 290,575 292,159 - 292,159 Special mention - - - - 806 806 - 806 Substandard - - - - 6,402 6,402 12,393 18,795 962 622 - 1,584 297,783 299,367 12,393 311,760 Residential Real Estate: Pass 543 - - 543 157,194 157,737 - 157,737 Special mention - - - - - - - - Substandard - - - - 1,838 1,838 3,450 5,288 543 - - 543 159,032 159,575 3,450 163,025 Commercial and Industrial: Pass 244 110 - 354 166,058 166,412 - 166,412 Special mention - - - - 1,174 1,174 - 1,174 Substandard - - 250 250 10,656 10,906 2,712 13,618 244 110 250 604 177,888 178,492 2,712 181,204 Consumer and Other: Pass 15 1,406 22 1,443 98,067 99,510 - 99,510 Substandard - - - - - - 850 850 15 1,406 22 1,443 98,067 99,510 850 100,360 Construction: Pass - - - - 44,180 44,180 - 44,180 - - - - 44,180 44,180 - 44,180 Construction to Permanent - CRE: Pass - - - - 11,248 11,248 - 11,248 - - - - 11,248 11,248 - 11,248 Total $ 1,764 2,138 272 4,174 788,198 792,372 19,405 811,777 Loans receivable, gross: Pass $ 1,764 2,138 22 3,924 767,322 771,246 - 771,246 Special mention - - - - 1,980 1,980 - 1,980 Substandard - - 250 250 18,896 19,146 19,405 38,551 Loans receivable, gross $ 1,764 2,138 272 4,174 788,198 792,372 19,405 811,777 The following tables summarize performing and non-performing loans (i.e., non-accruing) receivable by portfolio segment, by aging category, by delinquency status as of December 31, 2018. (In thousands) Performing (Accruing) Loans As of December 31, 2018: 30 - 59 Days 60 - 89 Days 90 Days Due Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ 423 - - 423 262,435 262,858 - 262,858 Special mention - - 958 958 2,673 3,631 - 3,631 Substandard 170 - - 170 4,754 4,924 3,525 8,449 593 - 958 1,551 269,862 271,413 3,525 274,938 Residential Real Estate: Pass 637 817 - 1,454 151,509 152,963 - 152,963 Special mention - - - - 850 850 - 850 Substandard - - - - 1,481 1,481 2,006 3,487 637 817 - 1,454 153,840 155,294 2,006 157,300 Commercial and Industrial: Pass 150 853 234 1,237 180,293 181,530 - 181,530 Special mention - - 101 101 2,378 2,479 - 2,479 Substandard - - - - 3,162 3,162 4,681 7,843 150 853 335 1,338 185,833 187,171 4,681 191,852 Consumer and Other: Pass 20 - 23 43 94,352 94,395 - 94,395 Substandard - - - - - - 174 174 20 - 23 43 94,352 94,395 174 94,569 Construction: Pass - 1,000 - 1,000 36,240 37,240 - 37,240 Substandard - - - - - - 8,800 8,800 - 1,000 - 1,000 36,240 37,240 8,800 46,040 Construction to Permanent - CRE: Pass - - - - 15,677 15,677 - 15,677 - - - - 15,677 15,677 - 15,677 Total $ 1,400 2,670 1,316 5,386 755,804 761,190 19,186 780,376 Loans receivable, gross: Pass $ 1,230 2,670 257 4,157 740,506 744,663 - 744,663 Special mention - - 1,059 1,059 5,901 6,960 - 6,960 Substandard 170 - - 170 9,397 9,567 19,186 28,753 Loans receivable, gross $ 1,400 2,670 1,316 5,386 755,804 761,190 19,186 780,376 The following tables summarize non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of June 30, 2019 December 31, 2018: (In thousands) Non-accruing Loans 30 - 59 60 - 89 90 Days Past Due Total Current Total As of June 30, 2019: Loan portfolio segment: Commercial Real Estate: Substandard $ 931 205 902 2,038 10,355 12,393 Residential Real Estate: Substandard 60 - 2,823 2,883 567 3,450 Commercial and Industrial: Substandard - 437 1,550 1,987 725 2,712 Consumer and Other: Substandard - - 174 174 676 850 Construction: Substandard - - - - - - Total non-accruing loans $ 991 642 5,449 7,082 12,323 19,405 As of December 31, 2018: Loan portfolio segment: Commercial Real Estate: Substandard $ 1,580 - 1,945 3,525 - 3,525 Residential Real Estate: Substandard - - 2,006 2,006 - 2,006 Commercial and Industrial: Substandard - 15 3,941 3,956 725 4,681 Consumer and Other: Substandard - 86 11 97 77 174 Construction: Substandard - - 8,800 8,800 - 8,800 Total non-accruing loans $ 1,580 101 16,703 18,384 802 19,186 If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income (net of cash collected) of approximately $132,000 $371,000 three six June 30, 2019, three six June 30, 2018, $103,000 $176,000 Interest income collected and recognized on non-accruing loans for the three six June 30, 2019 $184,000 $334,000, No three six June 30, 2018. The accrual of interest on loans is discontinued at the time the loan is 90 no 180 All interest accrued, but not six 90 not Troubled Debt Restructurings (“TDR”) On a case-by-case basis, Patriot may may 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 The recorded investment in TDRs was $11.0 June 30, 2019 $2.1 December 31, 2018. (In thousands) June 30, 2019 December 31, 2018 Loan portfolio segment: Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial Real Estate 3 $ 9,984 1 $ 1,081 Residential Real Estate 1 289 1 296 Consumer and Other 2 690 2 689 Total TDR Loans 6 10,963 4 2,066 Less: TDRs included in non-accrual loans 2 (9,339 ) - - Total accrual TDR Loans 4 $ 1,624 4 $ 2,066 The following loans were modified as TDR during the three six June 30, 2019 2018. Outstanding Recorded Investment (In thousands) Number of Loans Pre-Modification Post-Modification Three Months Ended June 30, 2019 2018 2019 2018 2019 2018 Loan portfolio segment: Commercial Real Estate 1 - $ 112 $ - $ 111 $ - Total TDR Loans 1 - $ 112 $ - $ 111 $ - Outstanding Recorded Investment (In thousands) Number of Loans Pre-Modification Post-Modification Six Months Ended June 30, 2019 2018 2019 2018 2019 2018 Loan portfolio segment: Commercial Real Estate 2 - $ 8,912 $ - $ 8,911 $ - Total TDR Loans 2 - $ 8,912 $ - $ 8,911 $ - The following table provides information on how loans were modified as TDRs during the three six June 30, 2019 2018: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Rate reduction $ 111 - $ 111 - Maturity and rate reduction - - 8,800 - Total $ 111 - $ 8,911 - The loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, extending the interest-only payment period, or substituting or adding a co-borrower or guarantor. There were no no three six June 30, 2018. June 30, 2019 December 31, 2018, no The balances reflected here as TDR’s are also included in the non-accruing loan balance included in the prior table - Loan Portfolio Aging Analysis. Impaired Loans Impaired loans may June 30, 2019 December 31, 2018, $21.0 $21.2 $0 $1.5 not no At June 30, 2019 December 31, 2018, 30 25 may may In addition, the remaining $417,000 June 30, 2019, no The following table reflects information about the impaired loans, excluding PCI loans, by class as of June 30, 2019 December 31, 2018: (In thousands) June 30, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 13,466 13,529 - 4,606 5,109 - Residential Real Estate 3,851 3,902 - 670 703 - Commercial and Industrial 2,676 2,726 - 488 1,281 - Consumer and Other 1,000 1,003 - 827 867 - Construction - - - 8,800 8,839 - 20,993 21,160 - 15,391 16,799 - With a related allowance recorded: Commercial Real Estate - - - - - - Residential Real Estate - - - 1,632 1,632 216 Commercial and Industrial - - - 4,158 4,208 1,299 Consumer and Other - - - 37 37 30 - - - 5,827 5,877 1,545 Impaired Loans, Total: Commercial Real Estate 13,466 13,529 - 4,606 5,109 - Residential Real Estate 3,851 3,902 - 2,302 2,335 216 Commercial and Industrial 2,676 2,726 - 4,646 5,489 1,299 Consumer and Other 1,000 1,003 - 864 904 30 Construction - - - 8,800 8,839 - Impaired Loans, Total $ 20,993 21,160 - 21,218 22,676 1,545 The following tables summarize additional information regarding impaired loans, excluding PCI loans, by class for the three six June 30, 2019 2018. (In thousands) Three Months Ended June 30, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 10,490 120 3,250 25 Residential Real Estate 2,271 41 3,480 3 Commercial and Industrial 1,854 38 980 - Consumer and Other 890 13 750 8 Construction 6,600 - - - 22,105 212 8,460 36 With a related allowance recorded: Commercial Real Estate 215 - - - Residential Real Estate 1,505 - - - Commercial and Industrial 2,459 - 293 - Consumer and Other 37 - 3 - 4,216 - 296 - Impaired Loans, Total: Commercial Real Estate 10,705 120 3,250 25 Residential Real Estate 3,776 41 3,480 3 Commercial and Industrial 4,313 38 1,273 - Consumer and Other 927 13 753 8 Construction 6,600 - - - Impaired Loans, Total $ 26,321 212 8,756 36 (In thousands) Six Months Ended June 30, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 7,956 186 2,770 49 Residential Real Estate 1,584 98 3,421 6 Commercial and Industrial 1,275 87 912 - Consumer and Other 866 24 725 15 Construction 7,543 150 - - 19,224 545 7,828 70 With a related allowance recorded: Commercial Real Estate 393 - - - Residential Real Estate 1,767 - - - Commercial and Industrial 3,183 - 244 - Consumer and Other 33 - 2 - 5,376 - 246 - Impaired Loans, Total: Commercial Real Estate 8,349 186 2,770 49 Residential Real Estate 3,351 98 3,421 6 Commercial and Industrial 4,458 87 1,156 - Consumer and Other 899 24 727 15 Construction 7,543 150 - - Impaired Loans, Total $ 24,600 545 8,074 70 |