Note

Available-for Sale

Securities

The amortized cost, gross unrealized gains and losses and approximate fair values of available-for-sale securities at

March

31,

2017

and

December

31,

2016

are as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2017:
U. S. Government agency mortgage-backed securities	$	4,736		6		(86	)		4,656
Corporate bonds		9,000		-		(63	)		8,937
Subordinated Notes		7,500		108		-			7,608
	$	21,236		114		(149	)		21,201

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

The following table presents the 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

March

31,

2017

and

December

31,

2016:

(In thousands)	Less than 12 Months					12 Months or More					Total
March 31, 2017:	Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)
U. S. Government agency mortgage-backed securities	$	-		-			3,687		(86	)		3,687		(86	)
Corporate bonds		8,937		(63	)		-		-			8,937		(63	)
	$	8,937		(63	)		3,687		(86	)		12,624		(149	)

December 31, 2016:
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	)

March

31,

2017

and

December

31,

2016,

five

ten

and

seven

out of

twelve

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

0.8%

and

1.5%

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 other-than-temporary impairment (“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

March

31,

2017.

March

31,

2017

and

December

31,

2016,

available-for-sale securities of

$1.0

million and

$4.2

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

March

31,

2017

and

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
	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
March 31, 2017:
Corporate bonds	$	-		9,000		-		9,000		-		8,937		-		8,937
U. S. Government agency bonds		-		-		-		-		-		-		-		-
Subordinated Notes		1,000		6,500		-		7,500		1,025		6,583		-		7,608
Available-for-sale securities with single maturity dates		1,000		15,500		-		16,500		1,025		15,520		-		16,545
U. S. Government agency mortgage-backed securities		-		-		4,736		4,736		-		-		4,656		4,656
	$	1,000		15,500		4,736		21,236		1,025		15,520		4,656		21,201

December 31, 2016:
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

During the

three

-month periods ended

March

31,

2017,

there were

million sales that were settled and

million sales that were remained unsettled as of

March

31,

2017;

and

$11.5

million purchases of available-for-sale securities. A loss on the sale of available-for-sale securities of

$78,000

was recorded during the

three

-months ended

March

31,

2017.

There were no sales or purchases of available-for sale securities during the

three

-months ended

March

31,

2016.