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Investment Securities
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2021:
Amortized
Cost		Unrealized GainsUnrealized LossesFair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies$23,045,000 $— $(1,106,000)$21,939,000 
Mortgage-backed securities247,606,000 2,751,000 (3,104,000)247,253,000 
State and political subdivisions34,590,000 895,000 (306,000)35,179,000 
Asset-backed securities4,777,000 76,000 — 4,853,000 
$310,018,000 $3,722,000 $(4,516,000)$309,224,000 
Securities to be held to maturity
U.S. Government-sponsored agencies$35,600,000 $17,000 $(1,161,000)$34,456,000 
Mortgage-backed securities64,651,000 354,000 (1,701,000)63,304,000 
State and political subdivisions254,198,000 7,251,000 (1,042,000)260,407,000 
Corporate securities21,250,000 415,000 (35,000)21,630,000 
$375,699,000 $8,037,000 $(3,939,000)$379,797,000 
Restricted equity securities
Federal Home Loan Bank Stock$7,802,000 $— $— $7,802,000 
Federal Reserve Bank Stock1,037,000 — — 1,037,000 
$8,839,000 $— $— $8,839,000 

The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2020:
Amortized
Cost		Unrealized GainsUnrealized LossesFair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies
$23,045,000 $— $(315,000)$22,730,000 
Mortgage-backed securities238,516,000 5,507,000 (617,000)243,406,000 
State and political subdivisions37,752,000 1,722,000 — 39,474,000 
Asset-backed securities7,723,000 43,000 — 7,766,000 
$307,036,000 $7,272,000 $(932,000)$313,376,000 
Securities to be held to maturity
U.S. Government-sponsored agencies$44,149,000 $143,000 $(18,000)$44,274,000 
Mortgage-backed securities53,594,000 736,000 (195,000)54,135,000 
State and political subdivisions245,620,000 10,427,000 (3,000)256,044,000 
Corporate securities22,250,000 433,000 (2,000)22,681,000 
$365,613,000 $11,739,000 $(218,000)$377,134,000 
Restricted equity securities
Federal Home Loan Bank Stock$9,508,000 $— $— $9,508,000 
Federal Reserve Bank Stock1,037,000 — — 1,037,000 
$10,545,000 $— $— $10,545,000 
The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2020:
Amortized
Cost		Unrealized GainsUnrealized LossesFair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies$27,545,000 $180,000 $(228,000)$27,497,000 
Mortgage-backed securities270,336,000 6,737,000 (649,000)276,424,000 
State and political subdivisions35,271,000 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 securities43,414,000 844,000 (119,000)44,139,000 
State and political subdivisions245,152,000 8,660,000 (69,000)253,743,000 
Corporate securities17,250,000 490,000 — 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 Stock1,037,000 — — 1,037,000 
$10,545,000 $— $— $10,545,000 

The following table summarizes the contractual maturities of investment securities at September 30, 2021:
Securities available for saleSecurities to be held to maturity
Amortized
Cost		Fair Value (Estimated)Amortized
Cost		Fair Value (Estimated)
Due in 1 year or less$— $— $3,788,000 $3,763,000 
Due in 1 to 5 years6,285,000 6,529,000 18,616,000 19,426,000 
Due in 5 to 10 years37,971,000 38,400,000 171,039,000 176,007,000 
Due after 10 years265,762,000 264,295,000 182,256,000 180,601,000 
$310,018,000 $309,224,000 $375,699,000 $379,797,000 

The following table summarizes the contractual maturities of investment securities at December 31, 2020:
Securities available for saleSecurities to be held to maturity
Amortized
Cost		Fair Value (Estimated)Amortized
Cost		Fair Value (Estimated)
Due in 1 year or less$117,000 $120,000 $3,607,000 $3,641,000 
Due in 1 to 5 years17,718,000 17,915,000 30,867,000 31,792,000 
Due in 5 to 10 years49,697,000 51,001,000 183,679,000 190,153,000 
Due after 10 years239,504,000 244,340,000 147,460,000 151,548,000 
$307,036,000 $313,376,000 $365,613,000 $377,134,000 
The following table summarizes the contractual maturities of investment securities at September 30, 2020:
Securities available for saleSecurities 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 years23,789,000 24,260,000 32,595,000 33,683,000 
Due in 5 to 10 years58,430,000 60,086,000 176,400,000 182,370,000 
Due after 10 years243,836,000 248,635,000 120,513,000 123,547,000 
$333,152,000 $340,140,000 $331,962,000 $342,062,000 
At September 30, 2021, securities with a fair value of $349,978,000 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 $297,326,000 as of December 31, 2020 and $285,253,000 at September 30, 2020, 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, 2021 and 2020:
For the nine months ended September 30,For the quarter ended September 30,
2021202020212020
Proceeds from sales of securities$19,435,000 $79,469,000 $3,743,000 $— 
Gross realized gains627,000 1,526,000 1,000 — 
Gross realized losses(605,000)(347,000)(143,000)— 
Net gain (loss)$22,000 $1,179,000 $(142,000)$— 
Related income taxes$5,000 $248,000 $(29,000)$— 

Prior year sales included 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 $8,332,000 resulting in a net realized gain of $268,000. The potential economic impact of COVID-19 was 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, 2021, there were 184 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 19 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.
Information regarding securities temporarily impaired as of September 30, 2021 is summarized below:
Less than 12 months12 months or moreTotal
Fair Value (Estimated)Unrealized LossesFair Value (Estimated)Unrealized LossesFair Value (Estimated)Unrealized Losses
U.S. Government-sponsored agencies$37,054,000 $(1,396,000)$16,174,000 $(871,000)$53,228,000 $(2,267,000)
Mortgage-backed securities207,951,000 (4,207,000)17,337,000 (598,000)225,288,000 (4,805,000)
State and political subdivisions50,050,000 (1,348,000)— — 50,050,000 (1,348,000)
Corporate securities3,465,000 (35,000)— — 3,465,000 (35,000)
$298,520,000 $(6,986,000)$33,511,000 $(1,469,000)$332,031,000 $(8,455,000)
As of December 31, 2020, there were 50 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.
Information regarding securities temporarily impaired as of December 31, 2020 is summarized below:
Less than 12 months12 months or moreTotal
Fair Value (Estimated)Unrealized LossesFair Value (Estimated)Unrealized LossesFair Value (Estimated)Unrealized Losses
U.S. Government-sponsored agencies$30,212,000 $(333,000)$— $— $30,212,000 $(333,000)
Mortgage-backed securities65,505,000 (724,000)3,878,000 (88,000)69,383,000 (812,000)
State and political subdivisions855,000 (3,000)— — 855,000 (3,000)
Corporate securities2,498,000 (2,000)— — 2,498,000 (2,000)
$99,070,000 $(1,062,000)$3,878,000 $(88,000)$102,948,000 $(1,150,000)

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.
Information regarding securities temporarily impaired as of September 30, 2020 is summarized below:
Less than 12 months12 months or moreTotal
Fair Value (Estimated)Unrealized LossesFair Value (Estimated)Unrealized LossesFair Value (Estimated)Unrealized Losses
U.S. Government-sponsored agencies$16,817,000 $(228,000)$— $— $16,817,000 $(228,000)
Mortgage-backed securities79,816,000 (654,000)4,216,000 (114,000)84,032,000 (768,000)
State and political subdivisions19,201,000 (361,000)— — 19,201,000 (361,000)
$115,834,000 $(1,243,000)$4,216,000 $(114,000)$120,050,000 $(1,357,000)

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 $99,000, net of taxes, at September 30, 2021. This compares to $133,000 and $139,000, net of taxes, at December 31, 2020 and September 30, 2020, 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, 2021 and 2020, and December 31, 2020, the Bank's investment in FHLB stock totaled $7,802,000, $9,508,000 and $9,508,000, 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, 2021. The Company will continue to monitor its investment in FHLB stock.