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Investment Securities
 6 Months Ended
Jun. 30, 2022
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 June 30, 2022:
Amortized
Cost		Unrealized GainsUnrealized LossesFair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies$26,021,000 $— $(4,954,000)$21,067,000 
Mortgage-backed securities274,652,000 31,000 (30,001,000)244,682,000 
State and political subdivisions38,450,000 12,000 (6,512,000)31,950,000 
Asset-backed securities4,126,000 — (88,000)4,038,000 
$343,249,000 $43,000 $(41,555,000)$301,737,000 
Securities to be held to maturity
U.S. Government-sponsored agencies$38,100,000 $— $(7,390,000)$30,710,000 
Mortgage-backed securities57,739,000 107,000 (8,403,000)49,443,000 
State and political subdivisions256,104,000 303,000 (27,816,000)228,591,000 
Corporate securities27,750,000 — (544,000)27,206,000 
$379,693,000 $410,000 $(44,153,000)$335,950,000 
Restricted equity securities
Federal Home Loan Bank Stock$3,683,000 $— $— $3,683,000 
Federal Reserve Bank Stock1,037,000 — — 1,037,000 
$4,720,000 $— $— $4,720,000 

The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2021:
Amortized
Cost		Unrealized GainsUnrealized LossesFair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies
$23,045,000 $— $(1,146,000)$21,899,000 
Mortgage-backed securities256,992,000 1,803,000 (3,895,000)254,900,000 
State and political subdivisions38,127,000 1,083,000 (88,000)39,122,000 
Asset-backed securities4,577,000 68,000 — 4,645,000 
$322,741,000 $2,954,000 $(5,129,000)$320,566,000 
Securities to be held to maturity
U.S. Government-sponsored agencies$35,600,000 $2,000 $(1,149,000)$34,453,000 
Mortgage-backed securities60,646,000 261,000 (1,795,000)59,112,000 
State and political subdivisions250,544,000 7,925,000 (302,000)258,167,000 
Corporate securities23,250,000 411,000 (66,000)23,595,000 
$370,040,000 $8,599,000 $(3,312,000)$375,327,000 
Restricted equity securities
Federal Home Loan Bank Stock$4,328,000 $— $— $4,328,000 
Federal Reserve Bank Stock1,037,000 — — 1,037,000 
$5,365,000 $— $— $5,365,000 
The following table summarizes the amortized cost and estimated fair value of investment securities at June 30, 2021:
Amortized
Cost		Unrealized GainsUnrealized LossesFair Value (Estimated)
Securities available for sale
U.S. Government-sponsored agencies$23,045,000 $— $(848,000)$22,197,000 
Mortgage-backed securities245,187,000 3,264,000 (2,161,000)246,290,000 
State and political subdivisions31,544,000 1,170,000 (26,000)32,688,000 
Asset-backed securities4,964,000 108,000 — 5,072,000 
$304,740,000 $4,542,000 $(3,035,000)$306,247,000 
Securities to be held to maturity
U.S. Government-sponsored agencies$35,600,000 $45,000 $(897,000)$34,748,000 
Mortgage-backed securities69,086,000 406,000 (1,424,000)68,068,000 
State and political subdivisions253,245,000 8,829,000 (161,000)261,913,000 
Corporate securities18,250,000 497,000 (22,000)18,725,000 
$376,181,000 $9,777,000 $(2,504,000)$383,454,000 
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 contractual maturities of investment securities at June 30, 2022:
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$12,000 $12,000 $1,792,000 $1,794,000 
Due in 1 to 5 years3,676,000 3,576,000 14,852,000 14,738,000 
Due in 5 to 10 years18,172,000 15,551,000 72,240,000 69,510,000 
Due after 10 years321,389,000 282,598,000 290,809,000 249,908,000 
$343,249,000 $301,737,000 $379,693,000 $335,950,000 

The following table summarizes the contractual maturities of investment securities at December 31, 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$— $— $2,515,000 $2,521,000 
Due in 1 to 5 years5,004,000 5,173,000 17,624,000 18,338,000 
Due in 5 to 10 years52,782,000 53,057,000 174,982,000 180,081,000 
Due after 10 years264,955,000 262,336,000 174,919,000 174,387,000 
$322,741,000 $320,566,000 $370,040,000 $375,327,000 
The following table summarizes the contractual maturities of investment securities at June 30, 2021:
Securities available for saleSecurities to be held to maturity
Amortized
Cost		Fair Value (Estimated)Amortized
Cost		Fair Value (Estimated)
Due in 1 year or less$— $— $3,813,000 $3,800,000 
Due in 1 to 5 years5,683,000 5,909,000 20,629,000 21,477,000 
Due in 5 to 10 years38,136,000 39,018,000 167,850,000 173,699,000 
Due after 10 years260,921,000 261,320,000 183,889,000 184,478,000 
$304,740,000 $306,247,000 $376,181,000 $383,454,000 
At June 30, 2022, securities with a fair value of $318,833,000 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 $297,456,000 as of December 31, 2021 and $241,913,000 at June 30, 2021, pledged for the same purposes.
Gains and losses on the sale of securities are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received. The following table shows securities gains and losses for the six months and quarters ended June 30, 2022 and 2021:
For the six months ended June 30,For the quarter ended June 30,
2022202120222021
Proceeds from sales of securities$— $15,692,000 $— $14,478,000 
Gross realized gains2,000 626,000 — 507,000 
Gross realized losses(1,000)(462,000)(1,000)(462,000)
Net gain (loss)$1,000 $164,000 $(1,000)$45,000 
Related income taxes$— $34,000 $— $9,000 

Management reviews securities with unrealized losses for other than temporary impairment. As of June 30, 2022, there were 773 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 83 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 June 30, 2022 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$7,996,000 $(631,000)$43,782,000 $(11,713,000)$51,778,000 $(12,344,000)
Mortgage-backed securities173,507,000 (17,645,000)112,781,000 (20,759,000)286,288,000 (38,404,000)
State and political subdivisions189,673,000 (32,189,000)5,178,000 (2,139,000)194,851,000 (34,328,000)
Asset-backed securities4,038,000 (88,000)— — 4,038,000 (88,000)
Corporate securities17,956,000 (544,000)— — 17,956,000 (544,000)
$393,170,000 $(51,097,000)$161,741,000 $(34,611,000)$554,911,000 $(85,708,000)
As of December 31, 2021, there were 163 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 27 had been temporarily impaired for 12 months or more.
Information regarding securities temporarily impaired as of December 31, 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$24,030,000 $(920,000)$29,170,000 $(1,375,000)$53,200,000 $(2,295,000)
Mortgage-backed securities216,461,000 (4,768,000)26,772,000 (922,000)243,233,000 (5,690,000)
State and political subdivisions29,528,000 (390,000)— — 29,528,000 (390,000)
Corporate securities3,434,000 (66,000)— — 3,434,000 (66,000)
$273,453,000 $(6,144,000)$55,942,000 $(2,297,000)$329,395,000 $(8,441,000)

As of June 30, 2021, there were 112 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 11 had been temporarily impaired for 12 months or more.
Information regarding securities temporarily impaired as of June 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$53,750,000 $(1,745,000)$— $— $53,750,000 $(1,745,000)
Mortgage-backed securities202,134,000 (3,403,000)5,168,000 (182,000)207,302,000 (3,585,000)
State and political subdivisions17,053,000 (187,000)— — 17,053,000 (187,000)
Corporate securities3,478,000 (22,000)— — 3,478,000 (22,000)
$276,415,000 $(5,357,000)$5,168,000 $(182,000)$281,583,000 $(5,539,000)

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 $73,000, net of taxes, at June 30, 2022. This compares to $87,000 and $113,000, net of taxes, at December 31, 2021 and June 30, 2021, 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 June 30, 2022 and 2021, and December 31, 2021, the Bank's investment in FHLB stock totaled $3,683,000, $7,802,000 and $4,328,000, respectively. FHLB stock is a non-marketable equity security and therefore is reported at cost, which equals par value.
The Bank is also a member of the Federal Reserve Bank ("FRB") of Boston. As a requirement for membership in the FRB, the Bank must own a minimum required amount of FRB stock. The Bank uses FRB for certain correspondent banking services and maintains borrowing capacity at its discount window. The Bank's investment in FRB stock totaled $1,037,000 at June 30, 2022 and 2021 and December 31, 2021, respectively.
The Company periodically evaluates its investment in FHLB and FRB stock for impairment based on, among other factors, the capital adequacy of the Banks and their overall financial condition. No impairment losses have been recorded through June 30, 2022. The Bank will continue to monitor its investment in these restricted equity securities.