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Investment Securities | 12 Months Ended
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Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The following tables summarize the amortized cost and estimated fair value of investment securities at December 31, 2022 and 2021:
| Amortized |  | Unrealized |  | Unrealized |  | Fair Value
As of December 31, 2022 | Cost |  | Gains |  | Losses |  | (Estimated)
Securities available for sale |  |  |  |  |  |  |
U.S. Government-sponsored agencies | $ | 26,025,000 |  |  | $ | — |  |  | $ | (6,878,000) |  |  | $ | 19,147,000 |
Mortgage-backed securities | 271,068,000 |  | 55,000 |  | (42,447,000) |  | 228,676,000
State and political subdivisions | 40,472,000 |  |  | 2,000 |  |  | (7,283,000) |  |  | 33,191,000 |
Asset-backed securities | 3,548,000 |  |  | — |  |  | (53,000) |  |  | 3,495,000 |
| $ | 341,113,000 |  |  | $ | 57,000 |  |  | $ | (56,661,000) |  |  | $ | 284,509,000 |
Securities to be held to maturity |  |  |  |  |  |  |
U.S. Government-sponsored agencies | $ | 40,100,000 |  |  | $ | 4,000 |  |  | $ | (10,477,000) |  |  | $ | 29,627,000 |
Mortgage-backed securities | 60,497,000 |  |  | 42,000 |  |  | (11,392,000) |  |  | 49,147,000 |
State and political subdivisions | 258,549,000 |  |  | 154,000 |  |  | (30,733,000) |  |  | 227,970,000 |
Corporate securities | 34,750,000 |  |  | — |  |  | (2,483,000) |  |  | 32,267,000 |
| $ | 393,896,000 |  |  | $ | 200,000 |  |  | $ | (55,085,000) |  |  | $ | 339,011,000 |
Restricted equity securities |  |  |  |  |  |  |
Federal Home Loan Bank Stock | $ | 2,846,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,846,000 |
Federal Reserve Bank Stock | 1,037,000 |  |  | — |  |  | — |  |  | 1,037,000 |
| $ | 3,883,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,883,000 |
| Amortized |  | Unrealized |  | Unrealized |  | Fair Value
As of December 31, 2021 | Cost |  | Gains |  | Losses |  | (Estimated)
Securities available for sale |  |  |  |  |  |  |
U.S. Government-sponsored agencies | $ | 23,045,000 |  |  | $ | — |  |  | $ | (1,146,000) |  |  | $ | 21,899,000 |
Mortgage-backed securities | 256,992,000 |  | 1,803,000 |  | (3,895,000) |  |  | 254,900,000
State and political subdivisions | 38,127,000 |  |  | 1,083,000 |  |  | (88,000) |  |  | 39,122,000 |
Asset-backed securities | 4,577,000 |  |  | 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 securities | 60,646,000 |  |  | 261,000 |  |  | (1,795,000) |  |  | 59,112,000 |
State and political subdivisions | 250,544,000 |  |  | 7,925,000 |  |  | (302,000) |  |  | 258,167,000 |
Corporate securities | 23,250,000 |  |  | 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 Stock | 1,037,000 |  |  | — |  |  | — |  |  | 1,037,000 |
| $ | 5,365,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,365,000 |
The following table summarizes the contractual maturities of investment securities at December 31, 2022:
| 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 | $ | — |  |  | $ | — |  |  | $ | 1,787,000 |  |  | $ | 1,782,000 |
Due in 1 to 5 years | 3,609,000 |  |  | 3,409,000 |  |  | 14,998,000 |  |  | 14,480,000 |
Due in 5 to 10 years | 18,591,000 |  |  | 15,203,000 |  |  | 86,833,000 |  |  | 81,443,000 |
Due after 10 years | 318,913,000 |  |  | 265,897,000 |  |  | 290,278,000 |  |  | 241,306,000 |
| $ | 341,113,000 |  |  | $ | 284,509,000 |  |  | $ | 393,896,000 |  |  | $ | 339,011,000 |
The following table summarizes the contractual maturities of investment securities at December 31, 2021:
| 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 | $ | — |  |  | $ | — |  |  | $ | 2,515,000 |  |  | $ | 2,521,000 |
Due in 1 to 5 years | 5,004,000 |  |  | 5,173,000 |  |  | 17,624,000 |  |  | 18,338,000 |
Due in 5 to 10 years | 52,782,000 |  |  | 53,057,000 |  |  | 174,982,000 |  |  | 180,081,000 |
Due after 10 years | 264,955,000 |  |  | 262,336,000 |  |  | 174,919,000 |  |  | 174,387,000 |
| $ | 322,741,000 |  |  | $ | 320,566,000 |  |  | $ | 370,040,000 |  |  | $ | 375,327,000 |
At December 31, 2022, securities with a carrying value of $350,411,000 were pledged to secure borrowings from the Federal Home Loan Bank of Boston, public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a fair value of $347,456,000 as of December 31, 2021 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 2022, 2021 and 2020:
| 2022 |  | 2021 |  | 2020
Proceeds from sales of securities | $ | 1,301,000 |  |  | $ | 19,240,000 |  |  | $ | 112,179,000 |
Gross realized gains | 8,000 |  |  | 628,000 |  |  | 1,689,000 |
Gross realized losses | (1,000) |  |  | (605,000) |  |  | (534,000) |
Net gain | $ | 7,000 |  |  | $ | 23,000 |  |  | $ | 1,155,000 |
Related income taxes | $ | 1,000 |  |  | $ | 5,000 |  |  | $ | 243,000 |
In the second quarter of 2020, 28 municipal securities were sold 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. At the time of the sale the economic potential 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 December 31, 2022, there were 869 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 300 had been temporarily impaired for 12 months or more. At the present time, there have been no material changes in the credit quality of these securities resulting in other than temporary impairment, and in Management's opinion, no additional write-down for other-than-temporary impairment is warranted. Information regarding securities temporarily impaired as of December 31, 2022 is summarized below:
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
As of December 31, 2022 | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
U.S. Government-sponsored agencies | $ | 4,804,000 |  |  | $ | (675,000) |  |  | $ | 41,965,000 |  |  | $ | (16,680,000) |  |  | $ | 46,769,000 |  |  | $ | (17,355,000) |
Mortgage-backed securities | 73,509,000 |  |  | (6,486,000) |  |  | 197,102,000 |  |  | (47,353,000) |  |  | 270,611,000 |  |  | (53,839,000) |
State and political subdivisions | 149,517,000 |  |  | (13,769,000) |  |  | 67,932,000 |  |  | (24,247,000) |  |  | 217,449,000 |  |  | (38,016,000) |
Asset-backed securities | 3,495,000 |  |  | (53,000) |  |  | — |  |  | — |  |  | 3,495,000 |  |  | (53,000) |
Corporate securities | 19,857,000 |  |  | (2,143,000) |  |  | 3,160,000 |  |  | (340,000) |  |  | 23,017,000 |  |  | (2,483,000) |
| $ | 251,182,000 |  |  | $ | (23,126,000) |  |  | $ | 310,159,000 |  |  | $ | (88,620,000) |  |  | $ | 561,341,000 |  |  | $ | (111,746,000) |
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 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
As of December 31, 2021 | Value |  | Losses |  | Value |  | Losses |  | Value |  | 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 securities | 216,461,000 |  |  | (4,768,000) |  |  | 26,772,000 |  |  | (922,000) |  |  | 243,233,000 |  |  | (5,690,000) |
State and political subdivisions | 29,528,000 |  |  | (390,000) |  |  | — |  |  | — |  |  | 29,528,000 |  |  | (390,000) |
Corporate securities | 3,434,000 |  |  | (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) |
During the third quarter of 2014, the Company transferred securities with a total amortized cost of $89,780,000 and 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 $64,000, net of taxes, at December 31, 2022. This compares to $87,000, net of taxes, at December 31, 2021. 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 December 31, 2022 and 2021, the Bank's investment in FHLB stock totaled $2,846,000 and $4,328,000, respectively. FHLB stock is a restricted 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 December 31, 2022 and 2021. The Company periodically evaluates its investment in FHLB and FRB stock for impairment based on, among other factors, the capital adequacy of each institution and their overall financial condition. No impairment losses have been recorded through December 31, 2022. The Bank will continue to monitor its investment in these restricted equity securities.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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