Trading securities are reported on the Company's consolidated statements of condition at fair value. As of September 30, 2022 and December 31, 2021, the fair value of the Company's trading securities were $3.7 million and $4.4 million, respectively. These securities are held in a rabbi trust account and invested in mutual funds. The trading securities will be used for future payments associated with the Company's deferred compensation plan for eligible employees and directors.


(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
September 30, 2022
Obligations of states and political subdivisions	$	53,247	$	1	$	(1,774)	$	51,474
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	622,660		65		(92,937)		529,788
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	134,872		—		(13,061)		121,811
Subordinated corporate bonds	23,109		—		(2,564)		20,545
Total AFS debt securities	$	833,888	$	66	$	(110,336)	$	723,618
December 31, 2021
Obligations of U.S. government-sponsored enterprises	$	8,585	$	—	$	(241)	$	8,344
Obligations of states and political subdivisions	112,086		5,392		—		117,478
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	1,003,869		7,856		(11,468)		1,000,257
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	361,781		2,835		(5,767)		358,849
Subordinated corporate bonds	22,660		152		(254)		22,558
Total AFS debt securities	$	1,508,981	$	16,235	$	(17,730)	$	1,507,486

In June of 2022, the Company transferred securities with a fair value of $520.3 million from AFS to HTM. The unrealized losses on the AFS debt securities at the time of transfer were $72.1 million, pre-tax, and were reported within AOCI. These unrealized losses are being amortized over the remaining life of the securities from AOCI into interest income on the consolidated statements of income. At September 30, 2022, the net unrealized losses on the transferred securities reported within AOCI were $53.7 million, net of a deferred tax asset of $14.7 million.

The net unrealized losses on AFS debt securities reported within AOCI (excluding the aforementioned securities transferred from AFS to HTM) at September 30, 2022, were $86.6 million, net of a deferred tax asset of $23.7 million and at December 31, 2021 were $1.2 million, net of a deferred tax asset of $321,000.

The following table details the Company's sales of AFS debt securities for the periods indicated below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Proceeds from sales of investments	$	—	$	—	$	8,723	$	—
Gross realized gains	—		—		13		—
Gross realized losses	—		—		(22)		—


		Less Than 12 Months				12 Months or More				Total
(In thousands, except number of holdings)	Number of Holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2022
Obligations of states and political subdivisions	101	$	51,026	$	(1,774)	$	—	$	—	$	51,026	$	(1,774)
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	172	203,082		(24,432)		322,251		(68,505)		525,333		(92,937)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	76	83,532		(7,433)		38,279		(5,628)		121,811		(13,061)
Subordinated corporate bonds	13	9,071		(910)		11,474		(1,654)		20,545		(2,564)
Total AFS debt securities	362	$	346,711	$	(34,549)	$	372,004	$	(75,787)	$	718,715	$	(110,336)



December 31, 2021
Obligations of U.S. government-sponsored enterprises	4	$	8,344	$	(241)	$	—	$	—	$	8,344	$	(241)

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	113	659,851		(8,999)		61,978		(2,469)		721,829		(11,468)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	56	191,456		(4,602)		38,117		(1,165)		229,573		(5,767)
Subordinated corporate bonds	7	11,932		(232)		979		(22)		12,911		(254)
Total AFS debt securities	180	$	871,583	$	(14,074)	$	101,074	$	(3,656)	$	972,657	$	(17,730)

will be required to sell any of the AFS debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and were not reflective of credit events, the issuers continue to make timely principal and interest payments on the bonds. Agency-backed and government-sponsored enterprise securities have a long 40 year history with no credit losses, including during times of severe stress like the 2007-2008 financial crisis. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses.

At September 30, 2022 and December 31, 2021, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $2.0 million and $3.4 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

The amortized cost and estimated fair values of the Company's AFS debt securities by contractual maturity at September 30, 2022, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-related securities are shown in total, as their maturities are highly variable.


(In thousands)	Amortized Cost		Fair Value
Due in one year or less	$	501	$	500
Due after one year through five years	15,785		14,033
Due after five years through ten years	60,070		57,486
Due after ten years	—		—
Subtotal	76,356		72,019
Mortgage-related securities	757,532		651,599
Total	$	833,888	$	723,618


(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
September 30, 2022
Obligations of U.S. government-sponsored enterprises	$	7,422	$	—	$	(664)	$	6,758
Obligations of states and political subdivisions	55,908		—		(3,595)		52,313
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	320,850		—		(27,067)		293,783
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	147,753		—		(10,990)		136,763
Subordinated corporate bonds	2,376		—		(234)		2,142
Total HTM debt securities	$	534,309	$	—	$	(42,550)	$	491,759
December 31, 2021
Obligations of states and political subdivisions	$	1,291	$	89	$	—	$	1,380
Total HTM debt securities	$	1,291	$	89	$	—	$	1,380

enterprise securities have a long 40 year history with no credit losses, including during times of severe stress like the 2007-2008 financial crisis. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. HTM municipal debt holdings are comprised solely of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. As of December 31, 2021, the Company’s HTM debt securities portfolio was made up of three investment grade municipal debt securities, of which two securities also carried credit enhancements. Accordingly, the Company determined that the expected credit loss on its HTM portfolio was immaterial, and therefore it did not carry an allowance on its HTM debt securities at September 30, 2022 or December 31, 2021.

As of September 30, 2022 and December 31, 2021, none of the Company's HTM debt securities were past due or on non-accrual status. For the three and nine months ended September 30, 2022 and 2021, the Company did not recognize any interest income on non-accrual HTM debt securities. At September 30, 2022 and December 31, 2021, total accrued interest receivable on HTM debt securities, which has been excluded from reported amortized cost basis on HTM debt securities, was $1.4 million and $10,000, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

The amortized cost and estimated fair values of HTM debt securities by contractual maturity at September 30, 2022 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(In thousands)	Amortized Cost		Fair Value






Due in one year or less	$	—	$	—
Due after one year through five years	864		845
Due after five years through ten years	14,562		13,538
Due after ten years	50,280		46,830
Subtotal	65,706		61,213
Mortgage-related securities	468,603		430,546
Total	$	534,309	$	491,759

At September 30, 2022 and December 31, 2021, AFS and HTM debt securities with an amortized cost of $765.8 million and $640.1 million and estimated fair values of $673.6 million and $641.2 million, respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law.

The Company's FHLBB and FRB common stock are reported at cost within other investments on the consolidated statements of condition. The Company evaluates these investments for impairment based on the ultimate recoverability of the par value. The Company did not record any impairment on its FHLBB and FRB stock for the three and nine months ended September 30, 2022 and 2021.

The following table summarizes the Company's investment in FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:


(In thousands)	September 30, 2022		December 31, 2021
FHLBB	$	9,734	$	4,906
FRB	5,374		5,374
Total other investments	$	15,108	$	10,280