Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loans Receivable and Allowance for Loan and Lease Losses As of September 30, 2020 December 31, 2019, September 30, December 31, (In thousands) 2020 2019 Loan portfolio segment: Commercial Real Estate $ 292,067 $ 314,414 Residential Real Estate 162,976 175,489 Commercial and Industrial 147,248 173,875 Consumer and Other 73,127 85,934 Construction 61,534 48,388 Construction to Permanent - CRE 14,346 14,064 Loans receivable, gross 751,298 812,164 Allowance for loan and lease losses (11,171 ) (10,115 ) Loans receivable, net $ 740,127 $ 802,049 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. zero September 30, 2020 $176,000 December 31, 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, 2020 2019 (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Accretable discount, beginning of period $ - $ (201 ) $ (47 ) $ (792 ) Accretion - 9 2 43 Other changes, net - 141 45 698 Accretable discount, end of period $ - $ (51 ) $ - $ (51 ) The accretion of the accretable discount for PCI loans for the three nine September 30, 2020 $0 $2,000, three nine September 30, 2019 $9,000 $43,000, 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 During the three nine September 30, 2020, $2.5 $16.6 three nine September 30, 2019, $4.6 $20.9 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, which totaled $60.6 $71.5 September 30, 2020 December 31, 2019, 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 Patriot purchased $0 $14.9 three nine September 30, 2020, three nine September 30, 2019, $0 $7.3 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% $21.5 $9.6 September 30, 2020 December 31, 2019, nine September 30, 2020, $9.5 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 nine September 30, 2020 2019: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Three months ended September 30, 2020 Allowance for loan and lease losses: June 30, 2020 $ 4,274 $ 1,910 $ 3,526 $ 534 $ 666 $ 149 $ 89 $ 11,148 Charge-offs (35 ) - (34 ) (6 ) - - - (75 ) Recoveries - 1 11 1 - - - 13 Provisions (credits) 158 (374 ) (33 ) 11 152 40 131 85 September 30, 2020 $ 4,397 $ 1,537 $ 3,470 $ 540 $ 818 $ 189 $ 220 $ 11,171 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 (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total Nine months ended September 30, 2020 Allowance for loan and lease losses: December 31, 2019 $ 3,789 $ 1,038 $ 4,340 $ 341 $ 477 $ 130 $ - $ 10,115 Charge-offs (400 ) (13 ) (352 ) (45 ) - - - (810 ) Recoveries - 1 62 4 - - - 67 Provisions (credits) 1,008 511 (580 ) 240 341 59 220 1,799 September 30, 2020 $ 4,397 $ 1,537 $ 3,470 $ 540 $ 818 $ 189 $ 220 $ 11,171 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 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of September 30, 2020 December 31, 2019: (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total September 30, 2020 Allowance for loan and lease losses: Individually evaluated for impairment $ 1,552 $ 5 $ - $ 11 $ - $ - $ - $ 1,568 Collectively evaluated for impairment 2,845 1,532 3,470 529 818 189 220 9,603 Total allowance for loan and lease losses $ 4,397 $ 1,537 $ 3,470 $ 540 $ 818 $ 189 $ 220 $ 11,171 Loans receivable, gross: Individually evaluated for impairment $ 15,521 $ 3,674 $ 1,706 $ 1,264 $ - $ - $ - $ 22,165 Collectively evaluated for impairment 276,546 159,302 145,542 71,863 61,534 14,346 - 729,133 Total loans receivable, gross $ 292,067 $ 162,976 $ 147,248 $ 73,127 $ 61,534 $ 14,346 $ - $ 751,298 (In thousands) Commercial Residential Commercial Consumer Construction Construction Unallocated Total December 31, 2019 Allowance for loan and lease losses: Individually evaluated for impairment $ 1,496 $ - $ - $ - $ - $ - $ - $ 1,496 Collectively evaluated for impairment 2,293 1,038 4,340 341 477 130 - 8,619 Total allowance for loan losses $ 3,789 $ 1,038 $ 4,340 $ 341 $ 477 $ 130 $ - $ 10,115 Loans receivable, gross: Individually evaluated for impairment $ 13,034 $ 3,621 $ 2,057 $ 916 $ - $ - $ - $ 19,628 PCI loans individually evaluated for impairment - - 176 - - - - 176 Collectively evaluated for impairment 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 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 Due to the economic disruption and uncertainty caused by the pandemic, the allowance for loan losses may may may 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, 2020. (In thousands) Performing (Accruing) Loans As of September 30, 2020: 30 - 59 60 - 89 90 Days Total Current Total Non- Loans Loan portfolio segment: Commercial Real Estate: Pass $ 903 $ - $ - $ 903 $ 264,594 $ 265,497 $ - $ 265,497 Substandard 1,430 - - 1,430 10,693 12,123 14,447 26,570 2,333 - - 2,333 275,287 277,620 14,447 292,067 Residential Real Estate: Pass 2,283 - 679 2,962 156,472 159,434 - 159,434 Substandard - - - - 250 250 3,292 3,542 2,283 - 679 2,962 156,722 159,684 3,292 162,976 Commercial and Industrial: Pass - 200 - 200 112,236 112,436 - 112,436 Special mention - - - - 7,437 7,437 - 7,437 Substandard 702 - - 702 24,967 25,669 1,706 27,375 702 200 - 902 144,640 145,542 1,706 147,248 Consumer and Other: Pass 30 1 - 31 71,980 72,011 - 72,011 Substandard 97 - - 97 24 121 995 1,116 127 1 - 128 72,004 72,132 995 73,127 Construction: Pass - - - - 61,534 61,534 - 61,534 - - - - 61,534 61,534 - 61,534 Construction to Permanent - CRE: Pass - - - - 14,346 14,346 - 14,346 - - - - 14,346 14,346 - 14,346 Total $ 5,445 $ 201 $ 679 $ 6,325 $ 724,533 $ 730,858 $ 20,440 $ 751,298 Loans receivable, gross: Pass $ 3,216 $ 201 $ 679 $ 4,096 $ 681,162 $ 685,258 $ - $ 685,258 Special mention - - - - 7,437 7,437 - 7,437 Substandard 2,229 - - 2,229 35,934 38,163 20,440 58,603 Loans receivable, gross $ 5,445 $ 201 $ 679 $ 6,325 $ 724,533 $ 730,858 $ 20,440 $ 751,298 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, 2019. (In thousands) Performing (Accruing) Loans As of December 31, 2019: 30 - 59 60 - 89 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 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 10,036 606 350 - 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 non-performing (i.e., non-accruing) loans by aging category and status, within the applicable loan portfolio segment as of September 30, 2020 December 31, 2019: (In thousands) Non-accruing Loans 30 - 59 60 - 89 90 Days or Total Current Total As of September 30, 2020: Loan portfolio segment: Commercial Real Estate: Substandard $ - $ - $ 5,636 $ 5,636 $ 8,811 $ 14,447 Residential Real Estate: Substandard - - 1,585 1,585 1,707 3,292 Commercial and Industrial: Substandard - - 1,706 1,706 - 1,706 Consumer and Other: Substandard - - 104 104 891 995 Total non-accruing loans $ - $ - $ 9,031 $ 9,031 $ 11,409 $ 20,440 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 If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income (net of cash collected) of approximately $216,000 $691,000 three nine September 30, 2020, three nine September 30, 2019, $134,000 $271,000 Interest income collected and recognized on non-accruing loans for the three nine September 30, 2020 $21,000 $106,000, three nine September 30, 2019, $129,000 $474,000, The accrual of interest on loans is discontinued at the time the loan is 90 no 180 All interest accrued, but not nine 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 following table summarizes the recorded investment in TDRs as of September 30, 2020 December 31, 2019: (In thousands) September 30, 2020 December 31, 2019 Loan portfolio segment: Number of Recorded Number of Recorded Commercial Real Estate 2 $ 9,884 2 $ 9,873 Residential Real Estate 3 437 2 393 Consumer and Other 4 787 2 687 Total TDR Loans 9 11,108 6 10,953 Less: TDRs included in non-accrual loans 3 (9,384 ) 2 (9,337 ) Total accrual TDR Loans 6 $ 1,724 4 $ 1,616 During the three September 30, 2020 2019, no nine September 30, 2020 2019: Outstanding Recorded Investment (In thousands) Number of Loans Pre-Modification Post-Modification Nine Months Ended September 30, 2020 2019 2020 2019 2020 2019 Loan portfolio segment: Commercial Real Estate 1 2 $ 57 $ 8,912 $ 56 $ 8,911 Consumer and Other 2 - 121 - 121 - Total TDR Loans 3 2 $ 178 $ 8,912 $ 177 $ 8,911 The following table provides information on how loans were modified as TDRs during the three nine September 30, 2020 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Rate reduction $ - $ - $ 56 $ 111 Extension of interest only period - - 121 - Maturity and rate reduction - - - 8,800 Total $ - $ - $ 177 $ 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 three nine September 30, 2020. September 30, 2020 December 31, 2019, 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. Pursuant to the CARES Act, loan modifications made between March 1, 2020 December 30, 2020 60 19 not not 30 December 31, 2019. April 7, 2020, 19 $244.4 180 $157.7 September 30, 2020.According not September 30, 2020. Impaired Loans Impaired loans may September 30, 2020 December 31, 2019, $22.2 $19.6 $1.6 $1.5 not no At September 30, 2020 December 31, 2019, 30 27 first 12% 8% may may PCI loans acquired from Prime Bank acquisition were originally recorded at fair value by the Bank on the date of acquisition. As of September 30, 2020 December 31, 2019, $0 $179,000, no The following table reflects information about the impaired loans, excluding PCI loans, by class as of September 30, 2020 December 31, 2019: (In thousands) September 30, 2020 December 31, 2019 Recorded Principal Related Recorded Principal Related With no related allowance recorded: Commercial Real Estate $ 6,710 $ 7,116 $ - $ 4,234 $ 4,309 $ - Residential Real Estate 3,565 3,634 - 3,621 3,623 - Commercial and Industrial 1,706 1,840 - 2,057 2,060 - Consumer and Other 1,115 1,265 - 916 1,000 - 13,096 13,855 - 10,828 10,992 - With a related allowance recorded: Commercial Real Estate $ 8,811 $ 8,811 $ 1,552 8,800 8,800 1,496 Residential Real Estate 109 109 5 - - - Consumer and Other 149 149 11 - - - 9,069 9,069 1,568 8,800 8,800 1,496 Impaired Loans, Total: Commercial Real Estate 15,521 15,927 1,552 13,034 13,109 1,496 Residential Real Estate 3,674 3,743 5 3,621 3,623 - Commercial and Industrial 1,706 1,840 - 2,057 2,060 - Consumer and Other 1,264 1,414 11 916 1,000 - Impaired Loans, Total $ 22,165 $ 22,924 $ 1,568 $ 19,628 $ 19,792 $ 1,496 The following tables summarize additional information regarding impaired loans, excluding PCI loans, by class for the three nine September 30, 2020 2019. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Average Interest Average Interest Average Interest Average Interest With no related allowance recorded: Commercial Real Estate $ 6,975 $ 13 $ 13,579 $ 164 $ 5,702 $ 39 $ 9,654 $ 324 Residential Real Estate 3,641 12 3,696 37 3,603 45 2,202 28 Commercial and Industrial 1,716 2 2,656 39 1,936 4 1,684 99 Consumer and Other 1,321 10 978 12 1,101 26 897 108 Construction - - - - - - 5,280 150 13,653 37 20,909 252 12,342 114 19,717 709 With a related allowance recorded: Commercial Real Estate 8,975 - - - 8,876 35 275 - Residential Real Estate 55 1 - - 33 4 1,237 - Commercial and Industrial - - - - - - 2,228 - Consumer and Other 74 1 - - 50 4 23 - 9,104 2 - - 8,959 43 3,763 - Impaired Loans, Total: Commercial Real Estate 15,950 13 13,579 164 14,578 74 9,929 324 Residential Real Estate 3,696 13 3,696 37 3,636 49 3,439 28 Commercial and Industrial 1,716 2 2,656 39 1,936 4 3,912 99 Consumer and Other 1,395 11 978 12 1,151 30 920 108 Construction - - - - - - 5,280 150 Impaired Loans, Total $ 22,757 $ 39 $ 20,909 $ 252 $ 21,301 $ 157 $ 23,480 $ 709 |