
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies	$	27,545,000	$	180,000	$	(228,000)	$	27,497,000
Mortgage-backed securities	270,336,000		6,737,000		(649,000)		276,424,000
State and political subdivisions	35,271,000		1,240,000		(292,000)		36,219,000


	$	333,152,000	$	8,157,000	$	(1,169,000)	$	340,140,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	26,146,000	$	294,000	$	—	$	26,440,000
Mortgage-backed securities	43,414,000		844,000		(119,000)		44,139,000
State and political subdivisions	245,152,000		8,660,000		(69,000)		253,743,000
Corporate securities	17,250,000		490,000		—		17,740,000
	$	331,962,000	$	10,288,000	$	(188,000)	$	342,062,000
Restricted equity securities
Federal Home Loan Bank Stock	$	9,508,000	$	—	$	—	$	9,508,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	10,545,000	$	—	$	—	$	10,545,000


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies	$	7,500,000	$	—	$	(102,000)	$	7,398,000
Mortgage-backed securities	323,277,000		4,173,000		(833,000)		326,617,000
State and political subdivisions	25,113,000		1,392,000		—		26,505,000


	$	355,890,000	$	5,565,000	$	(935,000)	$	360,520,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	32,840,000	$	47,000	$	(26,000)	$	32,861,000
Mortgage-backed securities	14,431,000		450,000		(16,000)		14,865,000
State and political subdivisions	219,585,000		4,936,000		(109,000)		224,412,000
Corporate securities	14,750,000		157,000		—		14,907,000
	$	281,606,000	$	5,590,000	$	(151,000)	$	287,045,000
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

Mortgage-backed securities	$	317,553,000	$	5,327,000	$	(690,000)	$	322,190,000
State and political subdivisions	4,580,000		28,000		—		4,608,000


	$	322,133,000	$	5,355,000	$	(690,000)	$	326,798,000
Securities to be held to maturity
U.S. Government-sponsored agencies	$	32,840,000	$	93,000	$	—	$	32,933,000
Mortgage-backed securities	15,584,000		502,000		(16,000)		16,070,000
State and political subdivisions	236,612,000		7,136,000		(48,000)		243,700,000
Corporate securities	13,750,000		194,000		—		13,944,000
	$	298,786,000	$	7,925,000	$	(64,000)	$	306,647,000
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


	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	$	7,097,000	$	7,159,000	$	2,454,000	$	2,462,000
Due in 1 to 5 years	23,789,000		24,260,000		32,595,000		33,683,000
Due in 5 to 10 years	58,430,000		60,086,000		176,400,000		182,370,000
Due after 10 years	243,836,000		248,635,000		120,513,000		123,547,000

	$	333,152,000	$	340,140,000	$	331,962,000	$	342,062,000


	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	$	127,000	$	127,000	$	1,334,000	$	1,338,000
Due in 1 to 5 years	36,534,000		36,778,000		25,860,000		26,323,000
Due in 5 to 10 years	93,134,000		95,014,000		179,133,000		182,834,000
Due after 10 years	226,095,000		228,601,000		75,279,000		76,550,000

	$	355,890,000	$	360,520,000	$	281,606,000	$	287,045,000


	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	$	189,000	$	189,000	$	1,241,000	$	1,245,000
Due in 1 to 5 years	36,304,000		36,703,000		23,460,000		23,920,000
Due in 5 to 10 years	91,242,000		93,419,000		184,234,000		188,811,000
Due after 10 years	194,398,000		196,487,000		89,851,000		92,671,000

	$	322,133,000	$	326,798,000	$	298,786,000	$	306,647,000

At September 30, 2020, securities with a fair value of $285,253,000 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 $214,173,000 as of December 31, 2019 and $216,903,000 at September 30, 2019, pledged for the same purposes.

Gains and losses on the sale of securities 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 nine months and quarters ended September 30, 2020 and 2019:


	For the nine months ended September 30,				For the quarter ended September 30,
	2020		2019		2020		2019
Proceeds from sales of securities	$	79,469,000	$	4,725,000	$	—	$	4,725,000
Gross realized gains	1,526,000		82,000		—		82,000
Gross realized losses	(347,000)		(67,000)		—		(67,000)
Net gain	$	1,179,000	$	15,000	$	—	$	15,000
Related income taxes	$	248,000	$	3,000	$	—	$	3,000

Sales include 28 municipal securities sold in the second quarter of 2020 that had been designated as Held to Maturity. Proceeds from these sales totaled $8,600,000 against a cumulative book value of $8,313,000 resulting in a net realized gain of $268,000. The economic potential impact of COVID-19 is considered to be an isolated and unusual event that could not be reasonably anticipated as outlined in Accounting Standards Codification (ASC) Section 320-10-25. Management conducted a review of its municipal bond portfolio in conjunction with risk mitigation efforts related to the onset of the COVID-19 virus; the intent of the review was to identify investment exposures with lower relative credit ratings, locales with perceived above average economic risk, municipal entities with reliance upon sales tax or income tax revenue, or any combination of these factors. Each of the sold positions met one or more of the criteria.

Management reviews securities with unrealized losses for other than temporary impairment. As of September 30, 2020, there were 75 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 10 had been temporarily impaired for 12 months or more. The Company 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
U.S. Government-sponsored agencies	$	16,817,000	$	(228,000)	$	—	$	—	$	16,817,000	$	(228,000)
Mortgage-backed securities	79,816,000		(654,000)		4,216,000		(114,000)		84,032,000		(768,000)
State and political subdivisions	19,201,000		(361,000)		—		—		19,201,000		(361,000)


	$	115,834,000	$	(1,243,000)	$	4,216,000	$	(114,000)	$	120,050,000	$	(1,357,000)

As of December 31, 2019, there were 86 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 28 had been temporarily impaired for 12 months or more.


	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	$	12,372,000	$	(128,000)	$	—	$	—	$	12,372,000	$	(128,000)
Mortgage-backed securities	54,244,000		(359,000)		18,696,000		(490,000)		72,940,000		(849,000)
State and political subdivisions	10,532,000		(101,000)		304,000		(8,000)		10,836,000		(109,000)


	$	77,148,000	$	(588,000)	$	19,000,000	$	(498,000)	$	96,148,000	$	(1,086,000)

As of September 30, 2019, there were 60 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 29 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 totaled approximately 0.13% of overall state and municipal security holdings and were subsequently sold during the third quarter 2019.


	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	$	30,249,000	$	(233,000)	$	22,569,000	$	(473,000)	$	52,818,000	$	(706,000)
State and political subdivisions	5,073,000		(42,000)		306,000		(6,000)		5,379,000		(48,000)


	$	35,322,000	$	(275,000)	$	22,875,000	$	(479,000)	$	58,197,000	$	(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 $139,000, net of tax, at September 30, 2020. This compares to $182,000 and $189,000, net of taxes, at December 31, 2019 and September 30, 2019, respectively. 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 September 30, 2020 and 2019, and December 31, 2019, the Bank's investment in FHLB stock totaled $9,508,000, $7,945,000 and $7,945,000, 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 September 30, 2020. The Company will continue to monitor its investment in FHLB stock.