Note

Available-for-sale securities

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	)

December

31,

2020

and

2019,

twenty-two

thirty-seven

and

fifteen

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