Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loans Receivable and Allowance for Loan and Lease Losses As of March 31, 2021 December 31, 2020, March 31, December 31, (In thousands) 2021 2020 Loan portfolio segment: Commercial Real Estate $ 261,461 $ 282,378 Residential Real Estate 147,947 153,851 Commercial and Industrial 138,966 144,297 Consumer and Other 56,485 67,635 Construction 55,523 66,984 Construction to Permanent - CRE 16,294 15,035 Loans receivable, gross 676,676 730,180 Allowance for loan and lease losses (10,426 ) (10,584 ) Loans receivable, net $ 666,250 $ 719,596 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 During the three March 31, 2021 2020, $16.0 $4.1 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 $44.8 $55.0 March 31, 2021 December 31, 2020, 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 In the first 2021, not $14.9 three March 31, 2020. 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% $22.1 $21.6 March 31, 2021 December 31, 2020, three March 31, 2021, $281,000 Small Business Administration Paycheck Protection Program The CARES Act created the SBA's Paycheck Protection Program. Under the Paycheck Protection Program, $669 January 2021. Paycheck Protection Program loans are included in the commercial real estate loans and commercial and industrial loan classifications, and totaled $2.7 March 31, 2021. 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 the three March 31, 2021 2020: (In thousands) Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent - CRE Unallocated Total Three months ended March 31, 2021 Allowance for loan and lease losses: December 31, 2020 $ 4,485 $ 1,379 $ 3,284 $ 295 $ 739 $ 162 $ 240 $ 10,584 Charge-offs (42 ) (3 ) (209 ) (18 ) - - - (272 ) Recoveries - - 12 102 - - - 114 Provisions (credits) (289 ) 533 537 3 (459 ) (85 ) (240 ) - March 31, 2021 $ 4,154 $ 1,909 $ 3,624 $ 382 $ 280 $ 77 $ - $ 10,426 Three months ended March 31, 2020 Allowance for loan and lease losses: December 31, 2019 $ 3,789 $ 1,038 $ 4,340 $ 341 $ 477 $ 130 $ - $ 10,115 Charge-offs - (1 ) (4 ) (39 ) - - - (44 ) Recoveries - - 40 1 - - - 41 Provisions (credits) 361 83 14 231 126 (11 ) - 804 March 31, 2020 $ 4,150 $ 1,120 $ 4,390 $ 534 $ 603 $ 119 $ - $ 10,916 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of March 31, 2021: (In thousands) Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent - CRE Unallocated Total March 31, 2021 Allowance for loan and lease losses: Individually evaluated for impairment $ 1,414 $ 4 $ 501 $ - $ - $ - $ - $ 1,919 Collectively evaluated for impairment 2,740 1,905 3,123 382 280 77 - 8,507 Total allowance for loan and lease losses $ 4,154 $ 1,909 $ 3,624 $ 382 $ 280 $ 77 $ - $ 10,426 Loans receivable, gross: Individually evaluated for impairment $ 17,025 $ 4,247 $ 6,532 $ 653 $ - $ - $ - $ 28,457 Collectively evaluated for impairment 244,436 143,700 132,434 55,832 55,523 16,294 - 648,219 Total loans receivable, gross $ 261,461 $ 147,947 $ 138,966 $ 56,485 $ 55,523 $ 16,294 $ - $ 676,676 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of December 31, 2020: (In thousands) Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent - CRE Unallocated Total December 31, 2020 Allowance for loan and lease losses: Individually evaluated for impairment $ 1,398 $ 4 $ - $ 10 $ - $ - $ - $ 1,412 Collectively evaluated for impairment 3,087 1,375 3,284 285 739 162 240 9,172 Total allowance for loan losses $ 4,485 $ 1,379 $ 3,284 $ 295 $ 739 $ 162 $ 240 $ 10,584 Loans receivable, gross: Individually evaluated for impairment $ 14,534 $ 3,962 $ 4,700 $ 1,187 $ - $ - $ - $ 24,383 Collectively evaluated for impairment 267,844 149,889 139,597 66,448 66,984 15,035 - 705,797 Total loans receivable, gross $ 282,378 $ 153,851 $ 144,297 $ 67,635 $ 66,984 $ 15,035 $ - $ 730,180 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 Allowance for loan losses methodology In 2021, nine ● Changes in lending policies and procedures, including underwriting standards, collection, charge-off, and recovery practices not ● Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan portfolio, including the condition of various market segments; ● Changes in the nature and volume of the loan portfolio and terms of loans; ● Changes in the experience, ability and depth of lending management and staff; ● Changes in the volume and loss severity of past due loans, the volume of non-accrual loans, and the volume and loss severity of adversely classified or graded loans; ● Changes in the quality of the loan review system; ● Changes in the value of the underlying collateral for collateral-dependent loans; ● The existence and effect of any concentrations of credit and changes in the level of such concentrations; ● The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in our current loan portfolio; The additional risk factor for special mention loans and substandard loans and the risk factor related to COVID- 19 19 The refining in methodology resulted in better alignment of the credit characteristics of the various risk grades and loan types with the calculated allowance, and did not first 2021. 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 March 31, 2021. (In thousands) Performing (Accruing) Loans As of March 31, 2021: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Performing Loans Non-accruing Loans Loans Receivable Gross Loan portfolio segment: Commercial Real Estate: Pass $ 517 $ 750 $ - $ 1,267 $ 210,720 $ 211,987 $ - $ 211,987 Special mention - - - - 25,072 25,072 - 25,072 Substandard 351 - - 351 7,017 7,368 17,034 24,402 868 750 - 1,618 242,809 244,427 17,034 261,461 Residential Real Estate: Pass $ 592 $ - $ - 592 $ 139,059 139,651 - 139,651 Special mention - - - - 3,832 3,832 - 3,832 Substandard - - - - - - 4,464 4,464 592 - - 592 142,891 143,483 4,464 147,947 Commercial and Industrial: Pass $ 16 $ 3,000 $ - 3,016 $ 94,467 97,483 - 97,483 Special mention 123 - - 123 8,226 8,349 - 8,349 Substandard 2,077 - - 2,077 28,525 30,602 2,532 33,134 2,216 3,000 - 5,216 131,218 136,434 2,532 138,966 Consumer and Other: Pass $ 2 $ 5 $ - 7 $ 55,801 55,808 - 55,808 Substandard - - - - 120 120 557 677 2 5 - 7 55,921 55,928 557 56,485 Construction: Pass $ 866 $ - $ - 866 $ 54,657 55,523 - 55,523 866 - - 866 54,657 55,523 - 55,523 Construction to Permanent - CRE: Pass $ - $ 724 $ - 724 $ 15,570 16,294 - 16,294 - 724 - 724 15,570 16,294 - 16,294 Total $ 4,544 $ 4,479 $ - $ 9,023 $ 643,066 $ 652,089 $ 24,587 $ 676,676 Loans receivable, gross: Pass $ 1,993 $ 4,479 $ - $ 6,472 $ 570,274 $ 576,746 $ - $ 576,746 Special mention 123 - - 123 37,130 37,253 - 37,253 Substandard 2,428 - - 2,428 35,662 38,090 24,587 62,677 Loans receivable, gross $ 4,544 $ 4,479 $ - $ 9,023 $ 643,066 $ 652,089 $ 24,587 $ 676,676 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, 2020. (In thousands) Performing (Accruing) Loans As of December 31, 2020: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Performing Loans Non-accruing Loans Loans Receivable Gross Loan portfolio segment: Commercial Real Estate: Pass $ - $ - $ - $ - $ 230,824 $ 230,824 $ - $ 230,824 Special mention - - - - 25,658 25,658 - 25,658 Substandard 354 - 9 363 10,999 11,362 14,534 25,896 354 - 9 363 267,481 267,844 14,534 282,378 Residential Real Estate: Pass 478 361 - 839 145,298 146,137 - 146,137 Special mention - - - - 3,860 3,860 - 3,860 Substandard - - - - - - 3,854 3,854 478 361 - 839 149,158 149,997 3,854 153,851 Commercial and Industrial: Pass - 209 - 209 102,131 102,340 - 102,340 Special mention - 4,000 - 4,000 8,881 12,881 - 12,881 Substandard 603 113 - 716 27,660 28,376 700 29,076 603 4,322 - 4,925 138,672 143,597 700 144,297 Consumer and Other: Pass 1 - 7 8 66,589 66,597 - 66,597 Substandard - - - - 121 121 917 1,038 1 - 7 8 66,710 66,718 917 67,635 Construction: Pass - 2,351 - 2,351 64,633 66,984 - 66,984 - 2,351 - 2,351 64,633 66,984 - 66,984 Construction to Permanent - CRE: Pass - - - - 15,035 15,035 - 15,035 - - - - 15,035 15,035 - 15,035 Total $ 1,436 $ 7,034 $ 16 $ 8,486 $ 701,689 $ 710,175 $ 20,005 $ 730,180 Loans receivable, gross: Pass $ 479 $ 2,921 $ 7 $ 3,407 $ 624,510 $ 627,917 $ - $ 627,917 Special mention - 4,000 - 4,000 38,399 42,399 - 42,399 Substandard 957 113 9 1,079 38,780 39,859 20,005 59,864 Loans receivable, gross $ 1,436 $ 7,034 $ 16 $ 8,486 $ 701,689 $ 710,175 $ 20,005 $ 730,180 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, 2021 December 31, 2020: (In thousands) Non-accruing Loans 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Non-accruing Loans As of March 31, 2021: Loan portfolio segment: Commercial Real Estate: Substandard $ - $ - $ 4,658 $ 4,658 $ 12,376 $ 17,034 Residential Real Estate: Substandard - 23 2,122 2,145 2,319 4,464 Commercial and Industrial: Substandard 1,786 63 683 2,532 - 2,532 Consumer and Other: Substandard - - 30 30 527 557 Total non-accruing loans $ 1,786 $ 86 $ 7,493 $ 9,365 $ 15,222 $ 24,587 As of December 31, 2020: Loan portfolio segment: Commercial Real Estate: Substandard $ - $ - $ 5,723 $ 5,723 $ 8,811 $ 14,534 Residential Real Estate: Substandard - - 2,884 2,884 970 3,854 Commercial and Industrial: Substandard - - 700 700 - 700 Consumer and Other: Substandard 22 - 91 113 804 917 Total non-accruing loans $ 22 $ - $ 9,398 $ 9,420 $ 10,585 $ 20,005 If non-accrual loans had been performing in accordance with the original contractual terms, additional interest income (net of cash collected) of approximately $255,000 $191,000 three March 31, 2021 2020, Interest income collected and recognized on non-accruing loans for the three March 31, 2021 2020 $48,000 $28,000, 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 $100,000 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 March 31, 2021 December 31, 2020: (In thousands) March 31, 2021 December 31, 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment Loan portfolio segment: Commercial Real Estate 1 $ 8,811 2 $ 9,884 Residential Real Estate 3 912 3 928 Commercial and Industrial 1 4,000 1 4,000 Consumer and Other 4 774 5 1,074 Total TDR Loans 9 14,497 11 15,886 Less: TDRs included in non-accrual loans 4 (10,120 ) 6 (11,508 ) Total accrual TDR Loans 5 $ 4,377 5 $ 4,378 During the three March 31, 2021 2020, no 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 March 31, 2021 2020. March 31, 2021 December 31, 2020, 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, 2021 60 19 not not 30 December 31, 2021. April 7, 2020, 19 $232.7 180 $37.7 March 31, 2021. not March 31, 2021. Impaired Loans The following table reflects information about the impaired loans by class as of March 31, 2021 December 31, 2020: (In thousands) March 31, 2021 December 31, 2020 Recorded Investment Principal Outstanding Related Allowance Recorded Investment Principal Outstanding Related Allowance With no related allowance recorded: Commercial Real Estate $ 8,214 $ 9,135 $ - $ 5,723 $ 6,644 $ - Residential Real Estate 4,138 4,212 - 3,853 3,900 - Commercial and Industrial 4,684 4,803 - 4,700 4,816 - Consumer and Other 653 678 - 1,177 1,332 - 17,689 18,828 - 15,453 16,692 - With a related allowance recorded: Commercial Real Estate $ 8,820 $ 8,820 $ 1,415 8,811 8,811 1,398 Residential Real Estate 435 452 8 109 109 4 Commercial and Industrial 1,848 2,063 501 - - - Consumer and Other 172 204 2 10 10 10 11,275 11,539 1,926 8,930 8,930 1,412 Impaired Loans, Total: Commercial Real Estate 17,034 17,955 1,415 14,534 15,455 1,398 Residential Real Estate 4,573 4,664 8 3,962 4,009 4 Commercial and Industrial 6,532 6,866 501 4,700 4,816 - Consumer and Other 825 882 2 1,187 1,342 10 Impaired Loans, Total $ 28,964 $ 30,367 $ 1,926 $ 24,383 $ 25,622 $ 1,412 The following tables summarize additional information regarding impaired loans by class for the three March 31, 2021 2020. Three Months Ended March 31, (In thousands) 2021 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 6,078 $ - $ 3,467 $ - Residential Real Estate 4,248 13 3,578 20 Commercial and Industrial 2,745 46 2,082 1 Consumer and Other 945 6 851 8 14,016 65 9,978 29 With a related allowance recorded: Commercial Real Estate 8,813 - 8,808 1 Residential Real Estate 190 3 28 2 Commercial and Industrial 462 26 - - Consumer and Other 47 2 51 1 9,512 31 8,887 4 Impaired Loans, Total: Commercial Real Estate 14,891 - 12,275 1 Residential Real Estate 4,438 16 3,606 22 Commercial and Industrial 3,207 72 2,082 1 Consumer and Other 992 8 902 9 Construction - - - - Impaired Loans, Total $ 23,528 $ 96 $ 18,865 $ 33 Impaired loans may thirty-three $29.0 March 31, 2021, $1.9 three thirty-three ten $100,000, not At December 31, 2020, twenty-six $24.4 $1.4 For collateral dependent loans, appraisal reports of the underlying collateral, have been obtained from independent licensed appraisal firms. For non-performing loans, the independently determined appraised values were first 5.8% 8% may may Loans not no |