

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies	$	5,000,000	$	12,000	$	—		$	5,012,000
Mortgage-backed securities	309,133,000		4,249,000		(757,000		)	312,625,000
State and political subdivisions	4,955,000		14,000		(36,000		)	4,933,000
	$	319,088,000	$	4,275,000	$	(793,000	)	$	322,570,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	35,995,000	$	88,000	$	—		$	36,083,000
Mortgage-backed securities	16,569,000		500,000		(33,000		)	17,036,000
State and political subdivisions	236,213,000		5,331,000		(460,000		)	241,084,000
Corporate securities	13,750,000		122,000		—			13,872,000
	$	302,527,000	$	6,041,000	$	(493,000	)	$	308,075,000
Restricted equity securities
Federal Home Loan Bank Stock	$	7,945,000	$	—	$	—		$	7,945,000
Federal Reserve Bank Stock	1,037,000		—		—			1,037,000
	$	8,982,000	$	—	$	—		$	8,982,000



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies	$	5,000,000	$	7,000	$	—		$	5,007,000
Mortgage-backed securities	313,854,000		571,000		(6,732,000		)	307,693,000
State and political subdivisions	4,955,000		—		(239,000		)	4,716,000
	$	323,809,000	$	578,000	$	(6,971,000	)	$	317,416,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	11,155,000	$	—	$	(472,000	)	$	10,683,000
Mortgage-backed securities	18,250,000		336,000		(255,000		)	18,331,000
State and political subdivisions	221,958,000		1,046,000		(5,418,000		)	217,586,000
Corporate securities	4,300,000		—		—			4,300,000
	$	255,663,000	$	1,382,000	$	(6,145,000	)	$	250,900,000
Restricted equity securities
Federal Home Loan Bank Stock	$	10,549,000	$	—	$	—		$	10,549,000
Federal Reserve Bank Stock	1,037,000		—		—			1,037,000
	$	11,586,000	$	—	$	—		$	11,586,000



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value (Estimated)
Securities available for sale
Mortgage-backed securities	$	306,286,000	$	144,000	$	(9,052,000	)	$	297,378,000
State and political subdivisions	4,955,000		—		(263,000		)	4,692,000
	$	311,241,000	$	144,000	$	(9,315,000	)	$	302,070,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	11,155,000	$	—	$	(584,000	)	$	10,571,000
Mortgage-backed securities	20,585,000		404,000		(365,000		)	20,624,000
State and political subdivisions	224,037,000		1,274,000		(4,490,000		)	220,821,000
Corporate securities	4,300,000		—		—			4,300,000
	$	260,077,000	$	1,678,000	$	(5,439,000	)	$	256,316,000
Restricted equity securities
Federal Home Loan Bank Stock	$	11,326,000	$	—	$	—		$	11,326,000
Federal Reserve Bank Stock	1,037,000		—		—			1,037,000
	$	12,363,000	$	—	$	—		$	12,363,000



	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	268,000	$	269,000	$	1,337,000	$	1,339,000
Due in 1 to 5 years	21,771,000		21,976,000		21,857,000		22,026,000
Due in 5 to 10 years	102,117,000		104,238,000		186,409,000		189,984,000
Due after 10 years	194,932,000		196,087,000		92,924,000		94,726,000
	$	319,088,000	$	322,570,000	$	302,527,000	$	308,075,000



	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	—	$	—	$	1,432,000	$	1,433,000
Due in 1 to 5 years	13,501,000		13,518,000		20,717,000		20,778,000
Due in 5 to 10 years	83,954,000		83,326,000		157,544,000		155,313,000
Due after 10 years	226,354,000		220,572,000		75,970,000		73,376,000
	$	323,809,000	$	317,416,000	$	255,663,000	$	250,900,000



	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	34,000	$	34,000	$	1,327,000	$	1,329,000
Due in 1 to 5 years	9,349,000		9,341,000		23,621,000		23,698,000
Due in 5 to 10 years	71,309,000		69,745,000		155,096,000		153,240,000
Due after 10 years	230,549,000		222,950,000		80,033,000		78,049,000
	$	311,241,000	$	302,070,000	$	260,077,000	$	256,316,000

At June 30, 2019, securities with a fair value of $190,725,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a fair value of $222,829,000 as of December 31, 2018 and $203,196,000 at June 30, 2018, pledged for the same purposes.

Gains and losses on the sale of securities available for sale are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received. The following table shows securities gains and losses for the six months and quarters ended June 30, 2019 and 2018:



	For the six months ended June 30,				For the quarter ended June 30,
	2019		2018		2019		2018
Proceeds from sales of securities	$	—	$	459,000	$	—	$	—
Gross realized gains	—		136,000		—		—
Gross realized losses	—		—		—		—
Net gain	$	—	$	136,000	$	—	$	—
Related income taxes	$	—	$	29,000	$	—	$	—

Management reviews securities with unrealized losses for other than temporary impairment. As of June 30, 2019, there were 133 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 127 had been temporarily impaired for 12 months or more.

In the first quarter of 2019, one issuer of securities held in the portfolio was downgraded by a rating agency to less than investment grade. These securities total approximately 0.4% of overall state and municipal security holdings and are being monitored. The Company also has the ability and intent to hold its impaired securities until a recovery of their amortized cost, which may be at maturity.



	Less than 12 months					12 months or more					Total
	Fair Value (Estimated)		Unrealized Losses			Fair Value (Estimated)		Unrealized Losses			Fair Value (Estimated)		Unrealized Losses
Mortgage-backed securities	$	4,150,000	$	—		$	49,270,000	$	(790,000	)	$	53,420,000	$	(790,000	)
State and political subdivisions	998,000		(9,000		)	30,325,000		(487,000		)	31,323,000		(496,000		)
	$	5,148,000	$	(9,000	)	$	79,595,000	$	(1,277,000	)	$	84,743,000	$	(1,286,000	)

As of December 31, 2018, there were 511 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 232 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2018 is summarized below:



	Less than 12 months					12 months or more					Total
	Fair Value (Estimated)		Unrealized Losses			Fair Value (Estimated)		Unrealized Losses			Fair Value (Estimated)		Unrealized Losses
U.S. Government-sponsored agencies	$	—	$	—		$	10,683,000	$	(472,000	)	$	10,683,000	$	(472,000	)
Mortgage-backed securities	76,050,000		(1,061,000		)	185,136,000		(5,926,000		)	261,186,000		(6,987,000		)
State and political subdivisions	76,809,000		(1,784,000		)	45,052,000		(3,873,000		)	121,861,000		(5,657,000		)
	$	152,859,000	$	(2,845,000	)	$	240,871,000	$	(10,271,000	)	$	393,730,000	$	(13,116,000	)

As of June 30, 2018, there were 480 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 160 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of June 30, 2018 is summarized below:



	Less than 12 months					12 months or more					Total
	Fair Value (Estimated)		Unrealized Losses			Fair Value (Estimated)		Unrealized Losses			Fair Value (Estimated)		Unrealized Losses
U.S. Government-sponsored agencies	$	6,882,000	$	(373,000	)	$	3,689,000	$	(211,000	)	$	10,571,000	$	(584,000	)
Mortgage-backed securities	202,673,000		(5,660,000		)	91,977,000		(3,757,000		)	294,650,000		(9,417,000		)
State and political subdivisions	70,674,000		(1,728,000		)	36,909,000		(3,025,000		)	107,583,000		(4,753,000		)
	$	280,229,000	$	(7,761,000	)	$	132,575,000	$	(6,993,000	)	$	412,804,000	$	(14,754,000	)

During the third quarter of 2014, the Company transferred securities with a total amortized cost of $89,780,000 with a corresponding fair value of $89,757,000 from available for sale to held to maturity. The net unrealized loss, net of taxes, on these securities at the date of the transfer was $15,000. The net unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive income (loss), net of tax and is amortized over the remaining lives of the

securities as an adjustment of the yield. The amortization of the net unrealized loss reported in accumulated other comprehensive income (loss) will offset the effect on interest income of the discount for the transferred securities. The remaining unamortized balance of the net unrealized losses for the securities transferred from available for sale to held to maturity was $190,000 at June 30, 2019. These securities were transferred as a part of the Company's overall investment and balance sheet strategies.

The Bank is a member of the Federal Home Loan Bank ("FHLB") of Boston, a cooperatively owned wholesale bank for housing and finance in the six New England States. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. The Bank uses the FHLB for a portion of its wholesale funding needs. As of June 30, 2019 and 2018, and December 31, 2018, the Bank's investment in FHLB stock totaled $7,945,000, $11,326,000 and $10,549,000, respectively. FHLB stock is a non-marketable equity security and therefore is reported at cost, which equals par value. The Company periodically evaluates its investment in FHLB stock for impairment based on, among other factors, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through June 30, 2019. The Company will continue to monitor its investment in FHLB stock.