Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4. Loans Receivable and Allowance for Loan and Lease Losses As of September 30, 2021 December 31, 2020, September 30, December 31, (In thousands) 2021 2020 Loan portfolio segment: Commercial Real Estate $ 315,853 $ 282,378 Residential Real Estate 171,800 153,851 Commercial and Industrial 119,688 144,297 Consumer and Other 53,676 67,635 Construction 41,609 66,984 Construction to Permanent - CRE 11,912 15,035 Loans receivable, gross 714,538 730,180 Allowance for loan and lease losses (10,079 ) (10,584 ) Loans receivable, net $ 704,459 $ 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% of the market value of the underlying collateral. Patriot’s loan origination policy for multi-family residential real estate is limited to 80% of the market value of the underlying collateral. In the case of construction loans, the maximum loan-to-value is 65% of the “as completed” appraised value of the real estate project. Management monitors the appraised value of collateral on an on-going basis and additional collateral is requested when warranted. Real estate is the primary form of collateral, although other forms of collateral do exist and 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 nine September 30, 2021, three nine September 30, 2020, 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 $27.8 million and $55.0 million at September 30, 2021 December 31, 2020, 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 During the three nine September 30, 2021, three nine September 30, 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 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 September 30, 2021 December 31, 2020, nine September 30, 2021, 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 totaled $1.9 million as of September 30, 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 nine September 30, 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 September 30, 2021 Allowance for loan and lease losses: June 30, 2021 $ 4,079 $ 2,003 $ 3,212 $ 390 $ 369 $ 144 $ 165 $ 10,362 Charge-offs - - (3 ) (3 ) - - - (6 ) Recoveries - 2 20 1 - - - 23 Provisions (credits) 607 130 (861 ) (53 ) (138 ) (82 ) 97 (300 ) September 30, 2021 $ 4,686 $ 2,135 $ 2,368 $ 335 $ 231 $ 62 $ 262 $ 10,079 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 (In thousands) Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent - CRE Unallocated Total Nine months ended September 30, 2021 Allowance for loan and lease losses: December 31, 2020 $ 4,485 $ 1,379 $ 3,284 $ 295 $ 739 $ 162 $ 240 $ 10,584 Charge-offs (51 ) (3 ) (212 ) (23 ) (69 ) - - (358 ) Recoveries - 2 44 107 - - - 153 Provisions (credits) 252 757 (748 ) (44 ) (439 ) (100 ) 22 (300 ) September 30, 2021 $ 4,686 $ 2,135 $ 2,368 $ 335 $ 231 $ 62 $ 262 $ 10,079 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 The following tables summarize, by loan portfolio segment, the amount of loans receivable evaluated individually and collectively for impairment as of September 30, 2021 December 31, 2020: (In thousands) Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Construction Construction to Permanent - CRE Unallocated Total September 30, 2021 Allowance for loan and lease losses: Individually evaluated for impairment $ 1,178 $ 4 $ 638 $ - $ - $ - $ - $ 1,820 Collectively evaluated for impairment 3,508 2,131 1,730 335 231 62 262 8,259 Total allowance for loan and lease losses $ 4,686 $ 2,135 $ 2,368 $ 335 $ 231 $ 62 $ 262 $ 10,079 Loans receivable, gross: Individually evaluated for impairment $ 19,223 $ 4,329 $ 4,084 $ 525 $ - $ - $ - $ 28,161 Collectively evaluated for impairment 296,630 167,471 115,604 53,151 41,609 11,912 - 686,377 Total loans receivable, gross $ 315,853 $ 171,800 $ 119,688 $ 53,676 $ 41,609 $ 11,912 $ - $ 714,538 (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 no 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 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 nine 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 September 30, 2021. (In thousands) Performing (Accruing) Loans As of September 30, 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 $ 428 $ - $ - $ 428 $ 268,177 $ 268,605 $ - $ 268,605 Special mention - - - - 16,751 16,751 - 16,751 Substandard - - - - 11,274 11,274 19,223 30,497 428 - - 428 296,202 296,630 19,223 315,853 Residential Real Estate: Pass $ 50 $ - $ - 50 $ 163,501 163,551 - 163,551 Special mention - - - - 3,776 3,776 - 3,776 Substandard - - - - - - 4,473 4,473 50 - - 50 167,277 167,327 4,473 171,800 Commercial and Industrial: Pass $ 900 $ 582 $ - 1,482 $ 110,409 111,891 - 111,891 Special mention - - - - 1,414 1,414 - 1,414 Substandard 657 688 - 1,345 834 2,179 4,204 6,383 1,557 1,270 - 2,827 112,657 115,484 4,204 119,688 Consumer and Other: Pass $ 18 $ 2 $ - 20 $ 53,487 53,507 - 53,507 Substandard - - - - 23 23 146 169 18 2 - 20 53,510 53,530 146 53,676 Construction: Pass $ - $ - $ - - $ 41,609 41,609 - 41,609 - - - - 41,609 41,609 - 41,609 Construction to Permanent - CRE: Pass $ 604 $ - $ - 604 $ 11,308 11,912 - 11,912 604 - - 604 11,308 11,912 - 11,912 Total $ 2,657 $ 1,272 $ - $ 3,929 $ 682,563 $ 686,492 $ 28,046 $ 714,538 Loans receivable, gross: Pass $ 2,000 $ 584 $ - $ 2,584 $ 648,491 $ 651,075 $ - $ 651,075 Special mention - - - - 21,941 21,941 - 21,941 Substandard 657 688 - 1,345 12,131 13,476 28,046 41,522 Loans receivable, gross $ 2,657 $ 1,272 $ - $ 3,929 $ 682,563 $ 686,492 $ 28,046 $ 714,538 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 September 30, 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 September 30, 2021: Loan portfolio segment: Commercial Real Estate: Substandard $ - $ 8,950 $ 6,831 $ 15,781 $ 3,442 $ 19,223 Residential Real Estate: Substandard - - 2,320 2,320 2,153 4,473 Commercial and Industrial: Substandard 497 - 2,478 2,975 1,229 4,204 Consumer and Other: Substandard - 96 29 125 21 146 Total non-accruing loans $ 497 $ 9,046 $ 11,658 $ 21,201 $ 6,845 $ 28,046 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 $230,000 and $689,000 would have been recognized during the three nine September 30, 2021, three nine September 30, 2020, Interest income collected and recognized on non-accruing loans for the three nine September 30, 2021 2020 three nine September 30, 2020, The accrual of interest on loans is discontinued at the time the loan is 90 no 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 September 30, 2021 December 31, 2020: (In thousands) September 30, 2021 December 31, 2020 Loan portfolio segment: Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial Real Estate 1 $ 8,950 2 $ 9,884 Residential Real Estate 3 883 3 928 Commercial and Industrial 0 - 1 4,000 Consumer and Other 3 644 5 1,074 Total TDR Loans 7 10,477 11 15,886 Less: TDRs included in non-accrual loans 3 (9,769 ) 6 (11,508 ) Total accrual TDR Loans 4 $ 708 5 $ 4,378 During the three nine September 30, 2021, no No three September 30, 2020. nine September 30, 2020: (In thousands) Outstanding Recorded Investment Nine Months Ended September 30, 2020 Number of Loans Pre-Modification Post-Modification Loan portfolio segment: Commercial Real Estate 1 $ 57 $ 56 Consumer and Other 2 121 121 Total TDR Loans 3 $ 178 $ 177 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 defaults of TDRs during the three nine September 30, 2021 2020. September 30, 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, 2019. April 7, 2020, 19 180 fourteen not September 30, 2021. not September 30, 2021. Impaired Loans The following table reflects information about the impaired loans by class as of September 30, 2021 December 31, 2020: (In thousands) September 30, 2021 December 31, 2020 Recorded Investment Principal Outstanding Related Allowance Recorded Investment Principal Outstanding Related Allowance With no related allowance recorded: Commercial Real Estate $ 10,273 $ 11,306 $ - $ 5,723 $ 6,644 $ - Residential Real Estate 4,221 4,179 - 3,853 3,900 - Commercial and Industrial 648 772 - 4,700 4,816 - Consumer and Other 525 525 - 1,177 1,332 - 15,667 16,782 - 15,453 16,692 - With a related allowance recorded: Commercial Real Estate $ 8,950 $ 8,811 $ 1,178 8,811 8,811 1,398 Residential Real Estate 412 436 8 109 109 4 Commercial and Industrial 3,556 4,040 640 - - - Consumer and Other 171 203 2 10 10 10 13,089 13,490 1,828 8,930 8,930 1,412 Impaired Loans, Total: Commercial Real Estate 19,223 20,117 1,178 14,534 15,455 1,398 Residential Real Estate 4,633 4,615 8 3,962 4,009 4 Commercial and Industrial 4,204 4,812 640 4,700 4,816 - Consumer and Other 696 728 2 1,187 1,342 10 Impaired Loans, Total $ 28,756 $ 30,272 $ 1,828 $ 24,383 $ 25,622 $ 1,412 The following tables summarize additional information regarding impaired loans by class for the three nine September 30, 2021 2020. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2021 2020 2021 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial Real Estate $ 8,671 $ 95 $ 6,975 $ 13 $ 7,538 $ 133 $ 5,702 $ 39 Residential Real Estate 3,752 15 3,641 12 4,088 45 3,603 45 Commercial and Industrial 2,657 4 1,716 2 3,122 9 1,936 4 Consumer and Other 526 4 1,321 10 755 10 1,101 26 15,606 118 13,653 37 15,503 197 12,342 114 With a related allowance recorded: Commercial Real Estate 8,916 - 8,975 - 8,854 - 8,876 35 Residential Real Estate 824 7 55 1 427 14 33 4 Commercial and Industrial 3,231 55 - - 1,856 113 - - Consumer and Other 169 1 74 1 87 5 50 4 13,140 63 9,104 2 11,224 132 8,959 43 Impaired Loans, Total: Commercial Real Estate 17,587 95 15,950 13 16,392 133 14,578 74 Residential Real Estate 4,576 22 3,696 13 4,515 59 3,636 49 Commercial and Industrial 5,888 59 1,716 2 4,978 122 1,936 4 Consumer and Other 695 5 1,395 11 842 15 1,151 30 Impaired Loans, Total $ 28,746 $ 181 $ 22,757 $ 39 $ 26,727 $ 329 $ 21,301 $ 157 Impaired loans may September 30, 2021, thirty-six five thirty-six not At December 31, 2020, twenty-six 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 may may Loans not no |