
	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


	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


	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.


	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.


	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.