Note

: Available-for

Sale Securities

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

March

31,

2019

and

December 31, 2018

are as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2019:
U. S. Government agency mortgage-backed securities	$	20,017		84		(125	)		19,976
Corporate bonds		14,000		-		(1,172	)		12,828
Subordinated notes		5,899		81		-			5,980
U.S. Treasury notes		1,488		3		-			1,491
	$	41,404		168		(1,297	)		40,275

December 31, 2018:
U. S. Government agency mortgage-backed securities	$	20,626		43		(196	)		20,473
Corporate bonds		14,000		-		(1,026	)		12,974
Subordinated notes		4,500		64		-			4,564
U.S. Treasury notes		1,484		1		-			1,485
	$	40,610		108		(1,222	)		39,496

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,

2019

and

December 31, 2018:

(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, 2019:
U. S. Government agency mortgage-backed securities	$	2,972		(23	)		3,778		(102	)		6,750		(125	)
Corporate bonds		-		-			12,828		(1,172	)		12,828		(1,172	)
	$	2,972		(23	)		16,606		(1,274	)		19,578		(1,297	)

December 31, 2018:
U. S. Government agency mortgage-backed securities	$	8,024		(38	)		5,422		(158	)		13,446		(196	)
Corporate bonds		-		-			12,974		(1,026	)		12,974		(1,026	)
	$	8,024		(38	)		18,396		(1,184	)		26,420		(1,222	)

March

31,

2019

and

December 31, 2018,

ten

seventeen

and

ten

sixteen

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

6.2%

and

4.4%

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,

2019.

March 31, 2019

and

December 31, 2018,

available-for-sale securities of

$6.9

million and

$7.0

million were pledged primarily to secure municipal deposits, respectively. As of

March 31, 2019

and

December 31, 2018,

$5.4

million and

$5.5

million were pledged to the FRB of New York, and

$1.5

million and

$1.5

million were pledged to St. Louis Fed, respectively.

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,

2019

and

December 31, 2018.

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, 2019:
Corporate bonds	$	-		9,000		5,000		14,000		-		8,278		4,550		12,828
Subordinated notes		-		5,899		-		5,899		-		5,980		-		5,980
U.S. Treasury notes		1,488		-		-		1,488		1,491		-		-		1,491
Available-for-sale securities with single maturity dates		1,488		14,899		5,000		21,387		1,491		14,258		4,550		20,299
U. S. Government agency mortgage-backed securities		9,671		2,445		7,901		20,017		9,664		2,368		7,944		19,976
	$	11,159		17,344		12,901		41,404		11,155		16,626		12,494		40,275

December 31, 2018:
Corporate bonds	$	-		9,000		5,000		14,000		-		8,537		4,437		12,974
Subordinated notes		-		4,500		-		4,500		-		4,564		-		4,564
U.S. Treasury notes		1,484		-		-		1,484		1,485		-		-		1,485
Available-for-sale securities with single maturity dates		1,484		13,500		5,000		19,984		1,485		13,101		4,437		19,023
U. S. Government agency mortgage-backed securities		6,842		5,668		8,116		20,626		6,844		5,530		8,099		20,473
	$	8,326		19,168		13,116		40,610		8,329		18,631		12,536		39,496

During the

three

-month period ended

March

31,

2019,

the Bank purchased

$1.4

million Subordinated notes. There were

sales of the Bank’s available-for-sale securities in the

three

-month period ended

March

31,

2019.

There were

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

three

-month period ended

March 31, 2018.