Note 2 - Recent Accounting Pronouncements	3 Months Ended
Mar. 31, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 2 : Recent Accounting Pronouncements Accounting Standards Adopted During 2018 Effective January 1, 2018, the following new Accounting Standards Updates (ASUs) were adopted by the Company: ASU 2014 - 09 ASU No. 2014 - 09, Revenue from Contracts with Customers (Topic 606 ). Also, subsequent ASUs issued to clarify this Topic. The Update, and subsequent related updates, establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previous revenue recognition guidance, including industry-specific guidance. The Updates are intended to increase comparability across industries. The core principle of the revenue model is that a company will recognize revenue when it transfers control of goods or services to customers, at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company adopted the Updates during the first quarter of 2018 on a modified retrospective transition approach. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements, and there was no cumulative effect adjustment to opening retained earnings as no material changes were identified in the timing of revenue recognition. ASU 2016 - 01 and ASU 2018 - 03 ASU No. 2016 - 01, Financial Instruments - Overall (Subtopic 825 - 10 ) - Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU No. 2018 - 03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825 - 10 ). The Updates included targeted amendments in connection with the recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require investments in equity securities to be measured at fair value through net income, unless they qualify for a practical expedient, and require fair value changes arising from changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option to be recognized in other comprehensive income. The provisions also emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes. The Company adopted the Updates during the first quarter of 2018 primarily on a modified retrospective basis. In connection with the adoption of ASU 2016 - 01 on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio using an exit price notion resulting in prior-periods no longer being comparable. ASU 2016 - 15 In August 2016, the FASB issued ASU 2016 - 15, Statement of Cash Flows : Classification of Certain Cash Receipts and Cash Payments . ASU 2016 - 15 addresses the classification of certain specific transactions presented on the Statement of Cash Flows, in order to improve consistency across entities. Debt prepayment or extinguishment, debt-instrument settlement, contingent consideration payments post-business combination, and beneficial interests in securitization transactions are specific items addressed by this ASU that may affect the Bank. Additionally, the ASU codifies the predominance principle for classifying separately identifiable cash flows. ASU 2016 - 15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. As of March 31, 2018, Patriot did not have any debt prepayment or extinguishment, debt-instrument settlement, contingent consideration payments post-business combination, and beneficial interests in securitization transactions. In the future, if Patriot’s such transactions warrant present, management does not envision any difficulties implementing the requirements of ASU 2016 - 15, as applicable. ASU 2016 - 18 In November 2016, the FASB issued ASU 2016 - 18, Statement of Cash Flows: Restricted Cash. The purpose of the standard is to improve consistency and comparability among companies with respect to the reporting of changes in restricted cash and cash equivalents on the Statement of Cash Flows. The ASU requires the Statement of Cash Flows to include all changes in total cash and cash equivalents, including restricted amounts, and to the extent restricted cash and cash equivalents are presented in separate line items on the Balance Sheet, disclosure reconciling the change in total cash and cash equivalents to the amounts shown on the Balance Sheet are required. ASU 2016 - 18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. As of March 31, 2018 and December 31, 2017, Patriot did not have restricted cash and cash equivalents separately disclosed on its Balance Sheet. In the future, if Patriot’s activities warrant presenting separate line items on its Balance Sheet for restricted cash and cash equivalents, management does not envision any difficulties implementing the requirements of ASU 2016 - 18, as applicable. ASU 2017 - 09 In May 2017, the FASB issued ASU 2017 - 09, Scope of Modification Accounting , which provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718 Stock compensation. The ASU is effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company does not anticipate this update will have a material impact on its Consolidated Financial Statements. Accounting Standards Issued But Not Yet Adopted ASU 2016 - 02 In February 2016, the FASB issued ASU No. 2016 - 02, Leases. This ASU was issued to improve the financial reporting of leasing activities and provide a faithful representation of leasing transactions and improve understanding and comparability of a lessee's financial statements. Under the new accounting guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. This ASU will require both finance and operating leases to be recognized on the balance sheet. This ASU will affect all companies and organizations that lease real estate. The FASB issued an update in January 2018 ( ASU 2018 - 01 ) providing an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. This ASU will become effective for interim and annual reporting periods beginning after December 15, 2018. The Company will adopt this new accounting guidance as required. Management is currently evaluating the impact of the new standard on its Consolidated Financial Statements. ASU 2016 - 13 In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU changes the methodology for measuring credit losses on financial instruments measured at amortized cost to a current expected loss (“CECL”) model. Under the CECL model, entities will estimate credit losses over the entire contractual term of a financial instrument from the date of initial recognition of the instrument. The ASU also changes the existing impairment model for available-for-sale debt securities. In cases where there is neither the intent nor a more-likely-than- not requirement to sell the debt security, an entity will record credit losses as an allowance rather than a direct write-down of the amortized cost basis. Additionally, ASU 2016 - 13 notes that credit losses related to available-for-sale debt securities and purchased credit impaired loans should be recorded through an allowance for credit losses. ASU 2016 - 13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the impact that the standard will have on its Consolidated Financial Statements. ASU 2017 - 08 In March 2017, the FASB issued ASU 2017 - 08, Premium Amortization on Purchased Callable Debt Securities , which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Earlier application is permitted for all entities, including adoption in an interim period. If an entity early adopts the ASU in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. Management is currently evaluating the impact the adoption of ASU 2017 - 08 will have on the consolidated financial statements. ASU 2018 - 02 In February 2018, the FASB issued ASU 2018 - 02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminated the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. The amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not effected. The amendments in this update also require certain disclosures about stranded tax effects. The guidance in this ASU will become effective for reporting periods beginning after December 15, 2018, with early adoption permitted, and will be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Management is currently evaluating the impact that the standard will have on its Consolidated Financial Statements. ASU 2018 - 04 ASU 2018 - 04 - Investments - Debt Securities (Topic 320 ) and Regulated Operations (Topic 980 ) : The amendment in this ASU adds, amends and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments-Debt Securities and ASC 980, Regulated Operations. The amendments in this ASU are effective when a registrant adopts ASU 2016 - 01, which for Patriot, was January 1, 2018. This amendment is not expected to have an impact on the Consolidated Financial Statements. ASU 2018 - 05 ASU 2018 - 05 - Income Taxes (Topic 740 ) : Amendment to clarify situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under ASC 740 for certain income tax effects of the Tax Cuts and Jobs Act for the reporting period. As of December 31, 2017, the Company partially completed the accounting for the tax effects of enactment of the Tax Cuts and Jobs Act; however, in certain cases, Management made reasonable estimates of the effects of a reduced federal corporate income tax rate on its existing deferred tax balances. In other cases, the Company has not been able to make a reasonable estimate and continued to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Cuts and Jobs Act. In all cases, the Company will continue to make and refine its calculations during the one -year re-measurement period as additional analysis is completed. In addition, these estimates may be affected as Management gains a more thorough understanding of the new tax reform legislation.

Note

: Recent Accounting Pronouncements

Accounting Standards Adopted During

2018

Effective

January 1, 2018,

the following new Accounting Standards Updates (ASUs) were adopted by the Company:

ASU

2014

ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

). Also, subsequent ASUs issued to clarify this Topic. The Update, and subsequent related updates, establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previous revenue recognition guidance, including industry-specific guidance. The Updates are intended to increase comparability across industries. The core principle of the revenue model is that a company will recognize revenue when it transfers control of goods or services to customers, at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services.

The Company adopted the Updates during the

first

quarter of

2018

on a modified retrospective transition approach. The adoption of this guidance did

not

have a material impact on the Company’s Consolidated Financial Statements, and there was

cumulative effect adjustment to opening retained earnings as

material changes were identified in the timing of revenue recognition.

ASU

2016

and ASU

2018

ASU

No.

2016

01,

Financial Instruments - Overall (Subtopic

825

) - Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU

No.

2018

03,

Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic

825

). The Updates included targeted amendments in connection with the recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require investments in equity securities to be measured at fair value through net income, unless they qualify for a practical expedient, and require fair value changes arising from changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option to be recognized in other comprehensive income. The provisions also emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes. The Company adopted the Updates during the

first

quarter of

2018

primarily on a modified retrospective basis. In connection with the adoption of ASU

2016

January 1, 2018,

we refined our methodology to estimate the fair value of our loan portfolio using an exit price notion resulting in prior-periods

longer being comparable.

ASU

2016

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows

Classification of Certain Cash Receipts and Cash Payments

ASU

2016

addresses the classification of certain specific transactions presented on the Statement of Cash Flows, in order to improve consistency across entities. Debt prepayment or extinguishment, debt-instrument settlement, contingent consideration payments post-business combination, and beneficial interests in securitization transactions are specific items addressed by this ASU that

may

affect the Bank. Additionally, the ASU codifies the predominance principle for classifying separately identifiable cash flows. ASU

2016

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years, with early adoption permitted. As of

March 31, 2018,

Patriot did

not

have any debt prepayment or extinguishment, debt-instrument settlement, contingent consideration payments post-business combination, and beneficial interests in securitization transactions. In the future, if Patriot’s such transactions warrant present, management does

not

envision any difficulties implementing the requirements of ASU

2016

15,

as applicable.

ASU

2016

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows:

Restricted Cash.

The purpose of the standard is to improve consistency and comparability among companies with respect to the reporting of changes in restricted cash and cash equivalents on the Statement of Cash Flows. The ASU requires the Statement of Cash Flows to include all changes in total cash and cash equivalents, including restricted amounts, and to the extent restricted cash and cash equivalents are presented in separate line items on the Balance Sheet, disclosure reconciling the change in total cash and cash equivalents to the amounts shown on the Balance Sheet are required. ASU

2016

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within those fiscal years, with early adoption permitted. As of

March 31, 2018

and

December 31, 2017,

Patriot did

not

have restricted cash and cash equivalents separately disclosed on its Balance Sheet. In the future, if Patriot’s activities warrant presenting separate line items on its Balance Sheet for restricted cash and cash equivalents, management does

not

envision any difficulties implementing the requirements of ASU

2016

18,

as applicable.

ASU

2017

May 2017,

the FASB issued ASU

2017

09,

Scope of Modification Accounting

, which provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic

718

Stock compensation. The ASU is effective for all entities for annual periods, including interim periods within those annual periods, beginning after

December 15, 2017.

Early adoption is permitted, including adoption in any interim period. The Company does

not

anticipate this update will have a material impact on its Consolidated Financial Statements.

Accounting Standards Issued But

Not

Yet Adopted

ASU

2016

February 2016,

the FASB issued ASU

No.

2016

02,

Leases.

This ASU was issued to improve the financial reporting of leasing activities and provide a faithful representation of leasing transactions and improve understanding and comparability of a lessee's financial statements. Under the new accounting guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than

months. This ASU will require both finance and operating leases to be recognized on the balance sheet. This ASU will affect all companies and organizations that lease real estate. The FASB issued an update in

January 2018 (

ASU

2018

) providing an optional transition practical expedient to

not

evaluate under Topic

842

land easements that exist or expired before the entity's adoption of Topic

842.

This ASU will become effective for interim and annual reporting periods beginning after

December 15, 2018.

The Company will adopt this new accounting guidance as required. Management is currently evaluating the impact of the new standard on its Consolidated Financial Statements.

ASU

2016

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments.

The ASU changes the methodology for measuring credit losses on financial instruments measured at amortized cost to a current expected loss (“CECL”) model. Under the CECL model, entities will estimate credit losses over the entire contractual term of a financial instrument from the date of initial recognition of the instrument. The ASU also changes the existing impairment model for available-for-sale debt securities. In cases where there is neither the intent nor a more-likely-than-

not

requirement to sell the debt security, an entity will record credit losses as an allowance rather than a direct write-down of the amortized cost basis. Additionally, ASU

2016

notes that credit losses related to available-for-sale debt securities and purchased credit impaired loans should be recorded through an allowance for credit losses. ASU

2016

is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after

December 15, 2018.

Management is currently evaluating the impact that the standard will have on its Consolidated Financial Statements.

ASU

2017

March 2017,

the FASB issued ASU

2017

08,

Premium Amortization on Purchased Callable Debt Securities

, which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2018.

For all other entities, the ASU is effective for fiscal years beginning after

December 15, 2019,

and interim periods within fiscal years beginning after

December 15, 2020.

Earlier application is permitted for all entities, including adoption in an interim period. If an entity early adopts the ASU in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. Management is currently evaluating the impact the adoption of ASU

2017

will have on the consolidated financial statements.

ASU

2018

February 2018,

the FASB issued ASU

2018

02,

Income

Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminated the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. The amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is

not

effected. The amendments in this update also require certain disclosures about stranded tax effects. The guidance in this ASU will become effective for reporting periods beginning after

December 15, 2018,

with early adoption permitted, and will be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Management is currently evaluating the impact that the standard will have on its Consolidated Financial Statements.

ASU

2018

ASU

2018

Investments - Debt Securities (Topic

320

) and Regulated Operations (Topic

980

)

: The amendment in this ASU adds, amends and supersedes various paragraphs that contain SEC guidance in ASC

320,

Investments-Debt Securities and ASC

980,

Regulated Operations. The amendments in this ASU are effective when a registrant adopts ASU

2016

01,

which for Patriot, was

January 1, 2018.

This amendment is

not

expected to have an impact on the Consolidated Financial Statements.

ASU

2018

ASU

2018

Income Taxes (Topic

740

)

: Amendment to clarify situations where a registrant does

not

have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under ASC

740

for certain income tax effects of the Tax Cuts and Jobs Act for the reporting period. As of

December 31, 2017,

the Company partially completed the accounting for the tax effects of enactment of the Tax Cuts and Jobs Act; however, in certain cases, Management made reasonable estimates of the effects of a reduced federal corporate income tax rate on its existing deferred tax balances. In other cases, the Company has

not

been able to make a reasonable estimate and continued to account for those items based on its existing accounting under ASC

740,

and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Cuts and Jobs Act. In all cases, the Company will continue to make and refine its calculations during the

one

-year re-measurement period as additional analysis is completed. In addition, these estimates

may

be affected as Management gains a more thorough understanding of the new tax reform legislation.