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Note 3 - Available-for-sale Securities | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3. Available-for-sale securities At December 31, 2020 and 2019, 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, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Government agency mortgage-backed securities |  | $ | 16,719 |  |  | $ | 131 |  |  | $ | (17 | ) |  | $ | 16,833 |
Corporate bonds |  |  | 18,014 |  |  |  | 260 |  |  |  | (984 | ) |  |  | 17,290 |
Subordinated notes |  |  | 9,036 |  |  |  | 97 |  |  |  | (128 | ) |  |  | 9,005 |
SBA loan pools |  |  | 5,627 |  |  |  | - |  |  |  | (60 | ) |  |  | 5,567 |
Municipal bonds |  |  | 564 |  |  |  | 3 |  |  |  | - |  |  |  | 567 |
|  | $ | 49,960 |  |  | $ | 491 |  |  | $ | (1,189 | ) |  | $ | 49,262 |
December 31, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Government agency mortgage-backed securities |  | $ | 16,663 |  |  | $ | 90 |  |  | $ | (68 | ) |  | $ | 16,685 |
Corporate bonds |  |  | 18,018 |  |  |  | 133 |  |  |  | (838 | ) |  |  | 17,313 |
Subordinated notes |  |  | 9,022 |  |  |  | 182 |  |  |  | - |  |  |  | 9,204 |
SBA loan pools |  |  | 5,157 |  |  |  | - |  |  |  | (42 | ) |  |  | 5,115 |
|  | $ | 48,860 |  |  | $ | 405 |  |  | $ | (948 | ) |  | $ | 48,317 |
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, 2020 and 2019:
(In thousands) |  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair Value |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Unrealized (Loss) |
December 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Government agency mortgage-backed securities |  | $ | 5,797 |  |  | $ | (14 | ) |  | $ | 1,476 |  |  | $ | (3 | ) |  | $ | 7,273 |  |  | $ | (17 | )
Corporate bonds |  |  | - |  |  |  | - |  |  |  | 13,015 |  |  |  | (984 | ) |  |  | 13,015 |  |  |  | (984 | )
Subordinated notes |  |  | 1,878 |  |  |  | (122 | ) |  |  | 1,103 |  |  |  | (6 | ) |  |  | 2,981 |  |  |  | (128 | )
SBA loan pools |  |  | 1,533 |  |  |  | (12 | ) |  |  | 4,034 |  |  |  | (48 | ) |  |  | 5,567 |  |  |  | (60 | )
|  | $ | 9,208 |  |  | $ | (148 | ) |  | $ | 19,628 |  |  | $ | (1,041 | ) |  | $ | 28,836 |  |  | $ | (1,189 | )
December 31, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Government agency mortgage-backed securities |  | $ | 2,609 |  |  | $ | (20 | ) |  | $ | 3,919 |  |  | $ | (48 | ) |  | $ | 6,528 |  |  | $ | (68 | )
Corporate bonds |  |  | - |  |  |  | - |  |  |  | 13,162 |  |  |  | (838 | ) |  |  | 13,162 |  |  |  | (838 | )
SBA loan pools |  |  | 5,115 |  |  |  | (42 | ) |  |  | - |  |  |  | - |  |  |  | 5,115 |  |  |  | (42 | )
|  | $ | 7,724 |  |  | $ | (62 | ) |  | $ | 17,081 |  |  | $ | (886 | ) |  | $ | 24,805 |  |  | $ | (948 | )
At December 31, 2020 and 2019, twenty-two of thirty-seven and fifteen of twenty-seven available-for-sale securities had unrealized losses with an aggregate depreciation of 4.0% and 3.7% from amortized cost, respectively. Management believes that none of the losses on available-for-sale securities noted above constitute 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, subordinated notes, 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. SBA government guaranteed loan pools securities were purchased at a premium and the unrealized loss was attributable primarily to increased prepayment speeds. The timely payment of principal and interest on these securities is guaranteed by the U.S. Government agency. The contractual terms of the subordinated notes do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. 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, 2020. As of December 31, 2020 and 2019, available-for-sale securities of $6.1 million and $4.8 million were pledged primarily to secure municipal deposits, respectively. The securities were pledged to the Federal Reserve Bank (“FRB”). 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, 2020 and 2019. 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 |
December 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 4,014 |  |  | $ | 14,000 |  |  | $ | - |  |  | $ | 18,014 |  |  | $ | 4,274 |  |  | $ | 13,016 |  |  | $ | - |  |  | $ | 17,290 |
Subordinated notes |  |  | 2,000 |  |  |  | 7,036 |  |  |  | - |  |  |  | 9,036 |  |  |  | 2,003 |  |  |  | 7,002 |  |  |  | - |  |  |  | 9,005 |
SBA loan pools |  |  | 1,921 |  |  |  | 3,706 |  |  |  | - |  |  |  | 5,627 |  |  |  | 1,899 |  |  |  | 3,668 |  |  |  | - |  |  |  | 5,567 |
Municipal bonds |  |  | - |  |  |  | 564 |  |  |  | - |  |  |  | 564 |  |  |  | - |  |  |  | 567 |  |  |  | - |  |  |  | 567 |
Available-for-sale securities with stated maturity dates |  |  | 7,935 |  |  |  | 25,306 |  |  |  | - |  |  |  | 33,241 |  |  |  | 8,176 |  |  |  | 24,253 |  |  |  | - |  |  |  | 32,429 |
U. S. Government agency mortgage-backed securities |  |  | 3,364 |  |  |  | 1,466 |  |  |  | 11,889 |  |  |  | 16,719 |  |  |  | 3,363 |  |  |  | 1,491 |  |  |  | 11,979 |  |  |  | 16,833 |
|  | $ | 11,299 |  |  | $ | 26,772 |  |  | $ | 11,889 |  |  | $ | 49,960 |  |  | $ | 11,539 |  |  | $ | 25,744 |  |  | $ | 11,979 |  |  | $ | 49,262 |
December 31, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 4,018 |  |  | $ | 14,000 |  |  | $ | - |  |  | $ | 18,018 |  |  | $ | 4,151 |  |  | $ | 13,162 |  |  | $ | - |  |  | $ | 17,313 |
Subordinated notes |  |  | - |  |  |  | 9,022 |  |  |  | - |  |  |  | 9,022 |  |  |  | - |  |  |  | 9,204 |  |  |  | - |  |  |  | 9,204 |
SBA loan pools |  |  | - |  |  |  | 5,157 |  |  |  | - |  |  |  | 5,157 |  |  |  | - |  |  |  | 5,115 |  |  |  | - |  |  |  | 5,115 |
Available-for-sale securities with stated maturity dates |  |  | 4,018 |  |  |  | 28,179 |  |  |  | - |  |  |  | 32,197 |  |  |  | 4,151 |  |  |  | 27,481 |  |  |  | - |  |  |  | 31,632 |
U. S. Government agency mortgage-backed securities |  |  | 3,805 |  |  |  | 2,047 |  |  |  | 10,811 |  |  |  | 16,663 |  |  |  | 3,810 |  |  |  | 2,016 |  |  |  | 10,859 |  |  |  | 16,685 |
|  | $ | 7,823 |  |  | $ | 30,226 |  |  | $ | 10,811 |  |  | $ | 48,860 |  |  | $ | 7,961 |  |  | $ | 29,497 |  |  | $ | 10,859 |  |  | $ | 48,317 |

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