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 September 30, 2019 December 31, 2018, (In thousands) September 30, December 31, Loan portfolio segment: Commercial Real Estate $ 299,605 $ 274,938 Residential Real Estate 163,546 157,300 Commercial and Industrial 186,795 191,852 Consumer and Other 93,467 94,569 Construction 44,349 46,040 Construction to Permanent - CRE 12,552 15,677 Loans receivable, gross 800,314 780,376 Allowance for loan and lease losses (8,405 ) (7,609 ) Loans receivable, net $ 791,909 $ 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. $182,000 September 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 nine September 30, 2019 (In thousands) For the three Months Ended September 30, 2019 For the Nine Months Ended Accretable discount, beginning of period $ (201 ) $ (792 ) Accretion 9 43 Other changes, net 141 698 Accretable discount, end of period $ (51 ) $ (51 ) The accretion of the accretable discount for PCI loans for the three nine September 30, 2019 $9,000 $43,000, 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 nine September 30, 2019, $4.6 $20.9 $16.4 three nine September 30, 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 $0 $7.3 three nine September 30, 2019, $21.4 three nine September 30, 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”) Loans in this category represent a one 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 September 30, 2019 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Three months ended September 30, 2019 Allowance for loan and lease losses: June 30, 2019 $ 1,978 $ 936 $ 4,208 $ 664 $ 467 $ 105 $ 100 $ 8,458 Charge-offs - (105 ) (74 ) (103 ) - - - (282 ) Recoveries - 9 117 3 - - - 129 Provisions (credits) 111 125 104 (196 ) (19 ) 10 (35 ) 100 September 30, 2019 $ 2,089 $ 965 $ 4,355 $ 368 $ 448 $ 115 $ 65 $ 8,405 Three months ended September 30, 2018 Allowance for loan and lease losses: June 30, 2018 $ 2,305 $ 1,096 $ 1,996 $ 523 $ 499 $ 80 $ 26 $ 6,525 Charge-offs - (2 ) - (3 ) - - - (5 ) Recoveries 24 11 - - - - - 35 Provisions (credits) (566 ) (240 ) 245 150 181 20 260 50 September 30, 2018 $ 1,763 $ 865 $ 2,241 $ 670 $ 680 $ 100 $ 286 $ 6,605 The following tables summarize the activity in the allowance for loan and lease losses, allocated to segments of the loan portfolio, for the nine September 30, 2019 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Nine months ended September 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 - (117 ) (2,366 ) (106 ) - - - (2,589 ) Recoveries 2 9 164 8 - - - 183 Provisions (credits) 221 14 2,999 (175 ) 98 7 38 3,202 September 30, 2019 $ 2,089 $ 965 $ 4,355 $ 368 $ 448 $ 115 $ 65 $ 8,405 Nine months ended September 30, 2018 Allowance for loan and lease losses: December 31, 2017 $ 2,212 $ 959 $ 2,023 $ 568 $ 481 $ 54 $ - $ 6,297 Charge-offs - (2 ) - (17 ) - - - (19 ) Recoveries 30 12 - - - - - 42 Provisions (credits) (479 ) (104 ) 218 119 199 46 286 285 September 30, 2018 $ 1,763 $ 865 $ 2,241 $ 670 $ 680 $ 100 $ 286 $ 6,605 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of September 30, 2019 December 31, 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total September 30, 2019 Allowance for loan and lease losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 2,089 965 4,355 368 448 115 65 8,405 Total allowance for loan losses $ 2,089 $ 965 $ 4,355 $ 368 $ 448 $ 115 $ 65 $ 8,405 Loans receivable, gross: Individually evaluated for impairment $ 13,989 $ 3,640 $ 2,222 $ 916 $ - $ - $ - $ 20,767 PCI loans individually evaluated for impairment - - 182 - - - - 182 Collectively evaluated for impairment 285,616 159,906 184,391 92,551 44,349 12,552 - 779,365 Total loans receivable, gross $ 299,605 $ 163,546 $ 186,795 $ 93,467 $ 44,349 $ 12,552 $ - $ 800,314 (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 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 partial 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 partial loss amount. If either type of loan is classified as “Loss”, meaning full loss on the loan is expected, 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 September 30, 2019. (In thousands) Performing (Accruing) Loans As of September 30, 2019: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non- accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ - $ - $ - $ - $ 279,713 $ 279,713 $ - $ 279,713 Special mention - - - - 797 797 - 797 Substandard 367 - - 367 5,812 6,179 12,916 19,095 367 - - 367 286,322 286,689 12,916 299,605 Residential Real Estate: Pass 698 - - 698 157,777 158,475 - 158,475 Special mention - - - - - - - - Substandard 1,456 - - 1,456 372 1,828 3,243 5,071 2,154 - - 2,154 158,149 160,303 3,243 163,546 Commercial and Industrial: Pass 448 23 - 471 174,414 174,885 - 174,885 Special mention - - - - 1,144 1,144 - 1,144 Substandard 646 - - 646 7,861 8,507 2,259 10,766 1,094 23 - 1,117 183,419 184,536 2,259 186,795 Consumer and Other: Pass 21 - 7 28 92,674 92,702 - 92,702 Substandard - - - - - - 765 765 21 - 7 28 92,674 92,702 765 93,467 Construction: Pass - - - - 44,349 44,349 - 44,349 - - - - 44,349 44,349 - 44,349 Construction to Permanent - CRE: Pass - - - - 12,552 12,552 - 12,552 - - - - 12,552 12,552 - 12,552 Total $ 3,636 $ 23 $ 7 $ 3,666 $ 777,465 $ 781,131 $ 19,183 $ 800,314 Loans receivable, gross: Pass $ 1,167 $ 23 $ 7 $ 1,197 $ 761,479 $ 762,676 $ - $ 762,676 Special mention - - - - 1,941 1,941 - 1,941 Substandard 2,469 - - 2,469 14,045 16,514 19,183 35,697 Loans receivable, gross $ 3,636 $ 23 $ 7 $ 3,666 $ 777,465 $ 781,131 $ 19,183 $ 800,314 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 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 September 30, 2019 December 31, 2018: (In thousands) Non-accruing Loans 30 - 59 60 - 89 90 Days or Past Due Total Current Total As of September 30, 2019: Loan portfolio segment: Commercial Real Estate: Substandard $ 1,548 $ 537 $ 2,031 $ 4,116 $ 8,800 $ 12,916 Residential Real Estate: Substandard - 60 1,818 1,878 1,365 3,243 Commercial and Industrial: Substandard - 31 2,228 2,259 - 2,259 Consumer and Other: Substandard 33 - 117 150 615 765 Construction: Substandard - - - - - - Total non-accruing loans $ 1,581 $ 628 $ 6,194 $ 8,403 $ 10,780 $ 19,183 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 $134,000 $271,000 three nine September 30, 2019, three nine September 30, 2018, $85,000 $266,000 Interest income collected and recognized on non-accruing loans for the three nine September 30, 2019 $129,000 $474,000, No three nine September 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 September 30, 2019 $2.1 December 31, 2018. (In thousands) September 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 1 286 1 296 Consumer and Other 2 688 2 689 Total TDR Loans 6 10,958 4 2,066 Less: TDRs included in non-accrual loans 2 (9,338 ) - - Total accrual TDR Loans 4 $ 1,620 4 $ 2,066 During the three September 30, 2019 2018, no nine September 30, 2019 2018. Outstanding Recorded Investment (In thousands) Number of Loans Pre-Modification Post-Modification Nine Months Ended September 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 nine September 30, 2019 2018: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Rate reduction $ - $ - $ 111 $ - Maturity and rate reduction - - 8,800 - Total $ - $ - $ 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 nine September 30, 2018. September 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 September 30, 2019 December 31, 2018, $20.8 $21.2 $0 $1.5 not no At September 30, 2019 December 31, 2018, 29 25 may may In addition, the remaining $182,000 September 30, 2019, no The following table reflects information about the impaired loans, excluding PCI loans, by class as of September 30, 2019 December 31, 2018: (In thousands) September 30, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 13,989 $ 14,057 $ - $ 4,606 $ 5,109 $ - Residential Real Estate 3,640 3,640 - 670 703 - Commercial and Industrial 2,222 2,228 - 488 1,281 - Consumer and Other 916 975 - 827 867 - Construction - - - 8,800 8,839 - 20,767 20,900 - 15,391 16,799 - With a related allowance recorded: 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 13,989 14,057 - 4,606 5,109 - Residential Real Estate 3,640 3,640 - 2,302 2,335 216 Commercial and Industrial 2,222 2,228 - 4,646 5,489 1,299 Consumer and Other 916 975 - 864 904 30 Construction - - - 8,800 8,839 - Impaired Loans, Total $ 20,767 $ 20,900 $ - $ 21,218 $ 22,676 $ 1,545 The following tables summarize additional information regarding impaired loans, excluding PCI loans, by class for the three nine September 30, 2019 2018. (In thousands) Three Months Ended September 30, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 13,579 $ 164 $ 4,062 $ 21 Residential Real Estate 3,696 37 3,523 3 Commercial and Industrial 2,656 39 1,018 - Consumer and Other 978 12 771 8 20,909 252 9,374 32 With a related allowance recorded: Commercial and Industrial - - 45 - Consumer and Other - - 5 - - - 50 - Impaired Loans, Total: Commercial Real Estate 13,579 164 4,062 21 Residential Real Estate 3,696 37 3,523 3 Commercial and Industrial 2,656 39 1,063 - Consumer and Other 978 12 776 8 Impaired Loans, Total $ 20,909 $ 252 $ 9,424 $ 32 (In thousands) Nine Months Ended September 30, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 9,654 $ 324 $ 3,157 $ 70 Residential Real Estate 2,202 28 3,451 8 Commercial and Industrial 1,684 99 948 - Consumer and Other 897 108 739 23 Construction 5,280 150 - - 19,717 709 8,295 101 With a related allowance recorded: Commercial Real Estate 275 - - - Residential Real Estate 1,237 - - - Commercial and Industrial 2,228 - 185 - Consumer and Other 23 - 4 - 3,763 - 189 - Impaired Loans, Total: Commercial Real Estate 9,929 324 3,157 70 Residential Real Estate 3,439 28 3,451 8 Commercial and Industrial 3,912 99 1,133 - Consumer and Other 920 108 743 23 Construction 5,280 150 - - Impaired Loans, Total $ 23,480 $ 709 $ 8,484 $ 101 |