Note 3 - Available-for-sale Securities

12 Months Ended

Dec. 31, 2016

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note

Available-for-sale securities

December

31,

2016

and

2015,

the amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of available-for-sale securities was as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2016:
U. S. Government agency mortgage-backed securities	$	10,624		9		192		10,441
Corporate bonds		9,000		-		39		8,961
Subordinated Notes		5,000		26		-		5,026
	$	24,624		35		231		24,428

December 31, 2015:
U. S. Government agency mortgage-backed securities	$	13,625	-	212	13,413
Corporate bonds		9,000	71	61	9,010
U. S. Government agency bonds		5,000	-	46	4,954
Subordinated Notes		2,000	-	-	2,000
	$	29,625	71	319	29,377

The following table presents available-for-sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of

December

31,

2016

and

2015:

(In thousands)	Less than 12 Months				12 Months or More				Total
December 31, 2016:	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U. S. Government agency mortgage-backed securities	$	5,969		144		3,356		48		9,325		192
Corporate bonds		-		-		5,961		39		5,961		39
	$	5,969		144		9,317		87		15,286		231

December 31, 2015:
U. S. Government agency bonds	$	4,954	46	-	-	4,954	46
U. S. Government agency mortgage-backed securities		2,863	42	10,550	170	13,413	212
Corporate bonds		-	-	5,939	61	5,939	61
	$	7,817	88	16,489	231	24,306	319

December

31,

2016

and

2015,

seven

out of

twelve

and

nine

out of

eleven

available-for-sale securities had unrealized losses with an aggregate depreciation of

1.5%

and

1.3%

from amortized cost, respectively.

Based on its quarterly reviews, management believes that

none

of the losses on available-for-sale securities noted above constitute an OTTI. The noted losses are considered temporary due to market fluctuations in available interest rates on U.S. Government agency debt, mortgage-backed securities issued by U.S. Government agencies, and corporate debt. Management considers the issuers of the securities to be financially sound, the corporate bonds are investment grade, and the collectability of all contractual principal and interest payments is reasonably expected. Since Patriot is not more-likely-than-not to be required to sell the investments before recovery of the amortized cost basis and does not intend to sell the securities at a loss, none of the available-for-sale securities noted are considered to be OTTI as of

December

31,

2016.

December

31,

2016

and

2015,

available-for-sale securities of

$4.2

million and

$5.5

million, respectively, were pledged to the FRB of New York, primarily to secure municipal deposits.

The following summarizes, by class and contractual maturity, the amortized cost and estimated fair value of available-for-sale debt securities held at

December

31,

2016.

The mortgages underlying the mortgage-backed securities are not due at a single maturity date. Additionally, these mortgages often are and generally

may

be pre-paid without penalty, creating a degree of uncertainty that such investments can be held until maturity. For convenience, mortgage-backed securities have been included in the summary as a separate line item.

(In thousands)	Amortized Cost								Fair Value
December 31, 2016:	Due Within 5 years		Due After 5 years through 10 years		Due After 10 years		Total		Due Within 5 years		Due After 5 years through 10 years		Due After 10 years		Total
Corporate bonds	$	9,000		-		-		9,000		8,961		-		-		8,961
Subordinated Notes		1,000		4,000		-		5,000		1,026		4,000		-		5,026
Available-for-sale securities with single maturity dates		10,000		4,000		-		14,000		9,987		4,000		-		13,987
U. S. Government agency mortgage-backed securities		-		2,132		8,492		10,624		-		2,106		8,335		10,441
	$	10,000		6,132		8,492		24,624		9,987		6,106		8,335		24,428

December 31, 2015:
Corporate bonds	$	-	9,000	-	9,000	-	9,010	-	9,010
U. S. Government agency bonds		-	5,000	-	5,000	-	4,954	-	4,954
Subordinated Notes		-	2,000	-	2,000	-	2,000	-	2,000
Available-for-sale securities with single maturity dates		-	16,000	-	16,000	-	15,964	-	15,964
U. S. Government agency mortgage-backed securities		-	2,905	10,720	13,625	-	2,863	10,550	13,413
	$	-	18,905	10,720	29,625	-	18,827	10,550	29,377

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details