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, 2018

and

December 31, 2017

are as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2018:
U. S. Government agency mortgage-backed securities	$	6,854		-		(199	)		6,655
Corporate bonds		14,000		-		(399	)		13,601
Subordinated notes		4,500		37		-			4,537
	$	25,354		37		(598	)		24,793

December 31, 2017:
U. S. Government agency mortgage-backed securities	$	7,330		-		(106	)		7,224
Corporate bonds		14,000		-		(196	)		13,804
Subordinated notes		4,500		48		-			4,548
	$	25,830		48		(302	)		25,576

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, 2018

and

December 31, 2017:

(In thousands)	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)
March 31, 2018:
U. S. Government agency mortgage-backed securities	$	3,755		(63	)		2,900		(136	)		6,655		(199	)
Corporate bonds		7,651		(349	)		5,950		(50	)		13,601		(399	)
	$	11,406		(412	)		8,850		(186	)		20,256		(598	)

December 31, 2017:
U. S. Government agency mortgage-backed securities	$	4,118		(13	)		3,106		(93	)		7,224		(106	)
Corporate bonds		13,804		(196	)		-		-			13,804		(196	)
	$	17,922		(209	)		3,106		(93	)		21,028		(302	)

March 31, 2018

and

December 31, 2017,

ten

out of

twelve

and

nine

out of

eleven

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

2.9%

and

1.4%

from the amortized cost of those securities, 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,

2018

March 31, 2018

and

December 31, 2017,

available-for-sale securities of

$6.0

million and

$6.7

million, respectively, were pledged to the Federal Reserve Bank of New York (“FRB”), 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, 2018

and

December 31, 2017.

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, 2018:
Corporate bonds	$	-		9,000		5,000		14,000		-		8,847		4,754		13,601
Subordinated Notes		-		4,500		-		4,500		-		4,537		-		4,537
Available-for-sale securities with single maturity dates		-		13,500		5,000		18,500		-		13,384		4,754		18,138
U. S. Government agency mortgage-backed securities		-		3,036		3,818		6,854		-		2,900		3,755		6,655
	$	-		16,536		8,818		25,354		-		16,284		8,509		24,793

December 31, 2017:
Corporate bonds	$	-		9,000		5,000		14,000		-		8,928		4,876		13,804
Subordinated Notes		-		4,500		-		4,500		-		4,548		-		4,548
Available-for-sale securities with single maturity dates		-		13,500		5,000		18,500		-		13,476		4,876		18,352
U. S. Government agency mortgage-backed securities		-		3,200		4,130		7,330		-		3,107		4,117		7,224
	$	-		16,700		9,130		25,830		-		16,583		8,993		25,576

There were

sales and purchases of available-for-sale securities in the

three

-month period ended

March

31,

2018.

During the

three

-month period ended

March 31, 2017,

there were

million sales 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.