Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loan Receivables and Allowance for Loan and Lease Losses As of December 31, 2019 2018, December 31, (In thousands) 2019 2018 Loan portfolio segment: Commercial Real Estate $ 314,414 $ 274,938 Residential Real Estate 175,489 157,300 Commercial and Industrial 173,875 191,852 Consumer and Other 85,934 94,569 Construction 48,388 46,040 Construction to Permanent - CRE 14,064 15,677 Loans receivable, gross 812,164 780,376 Allowance for loan and lease losses (10,115 ) (7,609 ) Loans receivable, net $ 802,049 $ 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 May 2018, 310 30. $176,000 December 31, 2019 $615,000 December 31, 2018, 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 year ended December 31, 2019 2018 (In thousands) For the Year Ended December 31, 2019 2018 Accretable discount, beginning of period $ (792 ) $ (1,316 ) Accretion 47 92 Other changes, net 698 432 Accretable discount, end of period $ (47 ) $ (792 ) The accretion of the accretable discount for PCI loans for the year end December 31,2019 2018 $47,000 $92,000, 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 2019 2018, $47.3 $25.6 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 portfolios, which totaled $71.5 $81.9 December 31, 2019 2018, Consumer and Other Loans Patriot offers individual consumers various forms of credit including installment loans, credit cards, overdraft protection, auto loans, 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 During 2019 2018, $7.3 $21.4 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 $9.6 $1.5 December 31, 2019 2018, Allowance for Loan and Lease Losses The following tables summarize the activity in the allowance for loan and lease losses, allocated to segments of the loan portfolio, for each year in the three December 31, 2019: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total As of and for the year ended Allowance for loan and lease losses: December 31, 2018 $ 1,866 $ 1,059 $ 3,558 $ 641 $ 350 $ 108 $ 27 $ 7,609 Charge-offs - (118 ) (2,418 ) (123 ) - - - (2,659 ) Recoveries 2 10 172 10 - - - 194 Provisions (credits) 1,921 87 3,028 (187 ) 127 22 (27 ) 4,971 December 31, 2019 $ 3,789 $ 1,038 $ 4,340 $ 341 $ 477 $ 130 $ - $ 10,115 As of and for the year ended Allowance for loan and lease losses: December 31, 2017 $ 2,212 $ 959 $ 2,023 $ 568 $ 481 $ 54 $ - $ 6,297 Charge-offs - (2 ) - (33 ) - - - (35 ) Recoveries 7 2 34 1 - - - 44 Provisions (credits) (353 ) 100 1,501 105 (131 ) 54 27 1,303 December 31, 2018 $ 1,866 $ 1,059 $ 3,558 $ 641 $ 350 $ 108 $ 27 $ 7,609 As of and for the year ended Allowance for loan and lease 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 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of December 31, 2019 2018: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total December 31, 2019 Allowance for loan and lease losses: Individually evaluated $ 1,496 $ - $ - $ - $ - $ - $ - $ 1,496 Collectively evaluated 2,293 1,038 4,340 341 477 130 - 8,619 Total allowance for loan and lease losses $ 3,789 $ 1,038 $ 4,340 $ 341 $ 477 $ 130 $ - $ 10,115 Loans receivable, gross: Individually evaluated $ 13,034 $ 3,621 $ 2,057 $ 916 $ - $ - $ - $ 19,628 PCI loans individually evaluated for impairment - - 176 - - - - 176 Collectively evaluated 301,380 171,868 171,642 85,018 48,388 14,064 - 792,360 Total loans receivable, gross $ 314,414 $ 175,489 $ 173,875 $ 85,934 $ 48,388 $ 14,064 $ - $ 812,164 (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total December 31, 2018 Allowance for loan and lease losses: Individually evaluated $ - $ 216 $ 1,299 $ 30 $ - $ - $ - $ 1,545 Collectively evaluated 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 $ 4,606 $ 2,302 $ 4,646 $ 864 $ 8,800 $ - $ - $ 21,218 PCI loans individually evaluated for impairment - - 615 - - - - 615 Collectively evaluated 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 cash flow from business operations, 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 to reduce the loan to its recoverable value that are solely collateral dependent, 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 December 31, 2019. (In thousands) Performing (Accruing) Loans As of December 31, 2019: 30 - 59 Days 60 - 89 Days 90 Days Total Current Total Non-accruing Loans Loan portfolio segment: Commercial Real Estate: Pass $ - $ - $ - $ - $ 295,982 $ 295,982 $ - $ 295,982 Special mention - - - - 385 385 - 385 Substandard - - - - 6,086 6,086 11,961 18,047 - - - - 302,453 302,453 11,961 314,414 Residential Real Estate: Pass 658 - - 658 169,903 170,561 - 170,561 Special mention - - - - - - - - Substandard - - - - 1,700 1,700 3,228 4,928 658 - - 658 171,603 172,261 3,228 175,489 Commercial and Industrial: Pass 327 350 - 677 162,711 163,388 - 163,388 Special mention 279 - - 279 172 451 - 451 Substandard - - - - 7,942 7,942 2,094 10,036 606 - - 956 170,825 171,781 2,094 173,875 Consumer and Other: Pass 2,805 3 19 2,827 82,341 85,168 - 85,168 Substandard - - - - - - 766 766 2,805 3 19 2,827 82,341 85,168 766 85,934 Construction: Pass - - - - 48,388 48,388 - 48,388 - - - - 48,388 48,388 - 48,388 Construction to Permanent - CRE: Pass - - - - 14,064 14,064 - 14,064 - - - - 14,064 14,064 - 14,064 Total $ 4,069 $ 353 $ 19 $ 4,441 $ 789,674 $ 794,115 $ 18,049 $ 812,164 Loans receivable, gross: Pass $ 3,790 $ 353 $ 19 $ 4,162 $ 773,389 $ 777,551 $ - $ 777,551 Special mention 279 - - 279 557 836 - 836 Substandard - - - - 15,728 15,728 18,049 33,777 Loans receivable, gross $ 4,069 $ 353 $ 19 $ 4,441 $ 789,674 $ 794,115 $ 18,049 $ 812,164 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 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 - 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 December 31, 2019 2018: (In thousands) Non-accruing Loans 30 - 59 60 - 89 90 Days or Total Current Total As of December 31, 2019: Loan portfolio segment: Commercial Real Estate: Substandard $ - $ - $ 1,636 $ 1,636 $ 10,325 $ 11,961 Residential Real Estate: Substandard - - 1,872 1,872 1,356 3,228 Commercial and Industrial: Substandard - - 1,724 1,724 370 2,094 Consumer and Other: Substandard - - 149 149 617 766 Total non-accruing loans $ - $ - $ 5,381 $ 5,381 $ 12,668 $ 18,049 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 $302,000, $503,000, $209,000 December 31, 2019, 2018, 2017, Interest income collected and recognized on non-accruing loans for the year ended December 31, 2019 $671,000. No 2018 2017. 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 as of December 31, 2019 2018 $11.0 $2.1 (In thousands) December 31, 2019 December 31, 2018 Loan portfolio segment: Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial Real Estate 2 $ 9,873 1 $ 1,081 Residential Real Estate 2 393 1 296 Consumer and Other 2 687 2 689 Total TDR Loans 6 10,953 4 2,066 Less: TDRs included in non-accrual loans 2 (9,337 ) - - Total accrual TDR Loans 4 $ 1,616 4 $ 2,066 The following loans were modified as TDR during the year ended December 31, 2019. Outstanding Recorded Investment (In thousands) Number of Loans Pre-Modification Post-Modification Year Ended December 31, 2019 2019 2019 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 year ended December 31, 2019. Year Ended (In thousands) 2019 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. During the years ended December 31, 2018 2017, no no December 31, 2019 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 December 31, 2019 2018, $19.6 $21.2 $1.5 $1.5 not no At December 31, 2019 2018, 27 25 first 12% 8% may may In addition, the remaining $176,000 December 31, 2019, no The following table reflects information about the impaired loans, excluding PCI loans, by class as of December 31, 2019 2018: (In thousands) December 31, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 4,234 $ 4,309 $ - $ 4,606 $ 5,109 $ - Residential Real Estate 3,621 3,623 - 670 703 - Commercial and Industrial 2,057 2,060 - 488 1,281 - Consumer and Other 916 1,000 - 827 867 - Construction - - - 8,800 8,839 - 10,828 10,992 - 15,391 16,799 - With a related allowance recorded: Commercial Real Estate 8,800 8,800 1,496 - - - Residential Real Estate - - - 1,632 1,632 216 Commercial and Industrial - - - 4,158 4,208 1,299 Consumer and Other - - - 37 37 30 8,800 8,800 1,496 5,827 5,877 1,545 Impaired Loans, Total: Commercial Real Estate 13,034 13,109 1,496 4,606 5,109 - Residential Real Estate 3,621 3,623 - 2,302 2,335 216 Commercial and Industrial 2,057 2,060 - 4,646 5,489 1,299 Consumer and Other 916 1,000 - 864 904 30 Construction - - - 8,800 8,839 - Impaired Loans, Total $ 19,628 $ 19,792 $ 1,496 $ 21,218 $ 22,676 $ 1,545 For each year in the three December 31, 2019, Year Ended December 31, (In thousands) 2019 2018 2017 Average Interest Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 9,829 $ 95 $ 3,318 $ 100 $ 5,832 $ 102 Residential Real Estate 2,531 104 3,154 11 2,016 11 Commercial and Industrial 1,800 45 987 - 197 - Consumer and Other 901 35 750 31 593 22 Construction 4,062 - 1,354 503 - - 19,123 279 9,563 645 8,638 135 With a related allowance recorded: Commercial Real Estate 888 415 - - - - Residential Real Estate 952 - 126 - - - Commercial and Industrial 1,714 - 474 - 243 - Consumer and Other 18 - 9 - - - 3,572 415 609 - 243 - Impaired Loans, Total: Commercial Real Estate 10,717 510 3,318 100 5,832 102 Residential Real Estate 3,483 104 3,280 11 2,016 11 Commercial and Industrial 3,514 45 1,461 - 440 - Consumer and Other 919 35 759 31 593 22 Construction 4,062 - 1,354 503 - - Impaired Loans, Total $ 22,695 $ 694 $ 10,172 $ 645 $ 8,881 $ 135 |