
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Treasury & Agency securities	$	26,036,000	$	—	$	(6,343,000)	$	19,693,000
Mortgage-backed securities	259,538,000		99,000		(41,635,000)		218,002,000
State and political subdivisions	40,288,000		—		(6,338,000)		33,950,000
Asset-backed securities	2,786,000		20,000		—		2,806,000

	$	328,648,000	$	119,000	$	(54,316,000)	$	274,451,000
Securities to be held to maturity
U.S. Treasury & Agency securities	$	38,100,000	$	—	$	(9,851,000)	$	28,249,000
Mortgage-backed securities	55,483,000		15,000		(11,258,000)		44,240,000
State and political subdivisions	254,302,000		175,000		(27,879,000)		226,598,000

Corporate securities	31,750,000		—		(3,021,000)		28,729,000
	$	379,635,000	$	190,000	$	(52,009,000)	$	327,816,000
Less allowance for credit losses	(182,000)		—		—		—
Net securities to be held to maturity	$	379,453,000	$	190,000	$	(52,009,000)	$	327,816,000
Restricted equity securities
Federal Home Loan Bank Stock	$	4,896,000	$	—	$	—	$	4,896,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	5,933,000	$	—	$	—	$	5,933,000


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Treasury & Agency securities	$	26,033,000	$	—	$	(6,203,000)	$	19,830,000
Mortgage-backed securities	262,823,000		265,000		(38,491,000)		224,597,000
State and political subdivisions	40,306,000		41,000		(5,702,000)		34,645,000
Asset-backed securities	2,986,000		4,000		(9,000)		2,981,000

	$	332,148,000	$	310,000	$	(50,405,000)	$	282,053,000
Securities to be held to maturity
U.S. Treasury & Agency securities	$	40,100,000	$	—	$	(9,601,000)	$	30,499,000
Mortgage-backed securities	56,401,000		70,000		(10,398,000)		46,073,000
State and political subdivisions	254,418,000		313,000		(24,213,000)		230,518,000

Corporate securities	34,750,000		—		(3,270,000)		31,480,000
	$	385,669,000	$	383,000	$	(47,482,000)	$	338,570,000
Less allowance for credit losses	(434,000)		—		—		—
Net securities to be held to maturity	$	385,235,000	$	383,000	$	(47,482,000)	$	338,570,000
Restricted equity securities
Federal Home Loan Bank Stock	$	2,348,000	$	—	$	—	$	2,348,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	3,385,000	$	—	$	—	$	3,385,000


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Treasury & Agency securities	$	26,027,000	$	—	$	(6,509,000)	$	19,518,000
Mortgage-backed securities	269,730,000		72,000		(38,711,000)		231,091,000
State and political subdivisions	40,451,000		12,000		(6,114,000)		34,349,000
Asset-backed securities	3,347,000		—		(63,000)		3,284,000

	$	339,555,000	$	84,000	$	(51,397,000)	$	288,242,000
Securities to be held to maturity
U.S. Treasury & Agency securities	$	40,100,000	$	—	$	(10,099,000)	$	30,001,000
Mortgage-backed securities	59,523,000		75,000		(10,443,000)		49,155,000
State and political subdivisions	257,910,000		365,000		(25,357,000)		232,918,000
Corporate securities	34,750,000		—		(2,771,000)		31,979,000
	$	392,283,000	$	440,000	$	(48,670,000)	$	344,053,000
Less allowance for credit losses	(438,000)		—		—		—
Net securities to be held to maturity	$	391,845,000	$	440,000	$	(48,670,000)	$	344,053,000
Restricted equity securities
Federal Home Loan Bank Stock	$	2,837,000	$	—	$	—	$	2,837,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	3,874,000	$	—	$	—	$	3,874,000

AFS securities, as shown in the above tables, consist of securities issued by U.S. Government Agencies, U.S. Government Sponsored Entities, State or Local Municipal Governments, or are backed by collateral that is guaranteed by the U.S. Government. We monitor the credit quality of these investments through credit ratings issued by major rating providers and through substantial price changes not consistent with general market movements. Each of the AFS securities is deemed to be investment grade, and no ACL has been established for AFS securities.

Similarly, the agency and mortgage-backed securities in the HTM portfolio have been determined to all be investment grade with no ACL required. Municipal securities within HTM include two private activity bonds issued by well-known customers of the Bank with total balances of $19,441,000 as of March 31, 2024. Corporate securities in HTM consist of 13 individual companies in the banking industry. Management reviewed the collectability of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, and other performance factors. Aggregate credit risk of the private activity bonds and corporate securities is considered very low and an immaterial ACL has been established. As of March 31, 2024 and 2023, and December 31, 2023, the total ACL for HTM securities was $182,000, $438,000 and $434,000, respectively.


	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	$	1,496,000	$	1,453,000	$	1,673,000	$	1,670,000
Due in 1 to 5 years	1,966,000		1,901,000		17,009,000		16,294,000
Due in 5 to 10 years	28,781,000		24,960,000		99,113,000		92,330,000
Due after 10 years	296,405,000		246,137,000		261,840,000		217,522,000

	$	328,648,000	$	274,451,000	$	379,635,000	$	327,816,000


	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	$	—	$	—	$	1,674,000	$	1,672,000
Due in 1 to 5 years	3,489,000		3,373,000		16,387,000		15,814,000
Due in 5 to 10 years	28,551,000		25,089,000		99,942,000		93,894,000
Due after 10 years	300,108,000		253,591,000		267,666,000		227,190,000

	$	332,148,000	$	282,053,000	$	385,669,000	$	338,570,000


	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	$	—	$	—	$	1,789,000	$	1,788,000
Due in 1 to 5 years	3,578,000		3,420,000		15,029,000		14,595,000
Due in 5 to 10 years	19,142,000		15,995,000		90,479,000		85,444,000
Due after 10 years	316,835,000		268,827,000		284,986,000		242,226,000

	$	339,555,000	$	288,242,000	$	392,283,000	$	344,053,000

At March 31, 2024, securities with a carrying value of $314,208,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a carrying value of $340,623,000 as of December 31, 2023 and $324,716,000 at March 31, 2023, 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. There were no gains or losses on the sale of securities for the three months ended March 31, 2024 and 2023.

As of March 31, 2024, there were 236 AFS securities with unrealized losses held in the Company's portfolio. The Company has the ability and intent to hold its securities which are in an unrealized loss position 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. Treasury & Agency securities	$	—	$	—	$	19,693,000	$	(6,343,000)	$	19,693,000	$	(6,343,000)
Mortgage-backed securities	4,593,000		(16,000)		202,736,000		(41,619,000)		207,329,000		(41,635,000)
State and political subdivisions	4,520,000		(30,000)		29,161,000		(6,308,000)		33,681,000		(6,338,000)


	$	9,113,000	$	(46,000)	$	251,590,000	$	(54,270,000)	$	260,703,000	$	(54,316,000)


	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. Treasury & Agency securities	$	—	$	—	$	19,830,000	$	(6,203,000)	$	19,830,000	$	(6,203,000)
Mortgage-backed securities	1,712,000		(14,000)		208,717,000		(38,477,000)		210,429,000		(38,491,000)
State and political subdivisions	2,082,000		(49,000)		27,700,000		(5,653,000)		29,782,000		(5,702,000)
Asset-backed securities	—		—		1,464,000		(9,000)		1,464,000		(9,000)

	$	3,794,000	$	(63,000)	$	257,711,000	$	(50,342,000)	$	261,505,000	$	(50,405,000)


	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. Treasury & Agency securities	$	—	$	—	$	19,518,000	$	(6,509,000)	$	19,518,000	$	(6,509,000)
Mortgage-backed securities	29,453,000		(1,075,000)		199,483,000		(37,636,000)		228,936,000		(38,711,000)
State and political subdivisions	8,540,000		(130,000)		23,076,000		(5,984,000)		31,616,000		(6,114,000)
Asset-backed securities	—		—		3,284,000		(63,000)		3,284,000		(63,000)

	$	37,993,000	$	(1,205,000)	$	245,361,000	$	(50,192,000)	$	283,354,000	$	(51,397,000)

Credit Quality Indicators: Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress. The principal and interest payments on agency-guaranteed debt is backed by the U.S. Government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. HTM municipal debt holdings are comprised primarily of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. All of the Mortgage-backed securities owned were issued either by a U.S. Government Agency (GNMA) or a Government Sponsored Enterprise (FNMA or FHLMC). HTM municipal debt holdings also include two unrated private activity bonds issued by well known customers of the Bank. These securities are regularly monitored as part of an overall credit relationship with the issuers; both issuers were in good standing as of March 31, 2024. HTM corporate debt holdings consist of 13 individual companies in the banking industry. Management conducts periodic reviews of the collectability of these securities taking into consideration such factors as the financial condition of the issuers; each were in good standing as of March 31, 2024.


	State and Political Subdivisions		Corporate Securities		Total
Allowance for credit losses:
Beginning balance	$	222,000	$	212,000	$	434,000
Credit loss expense (reduction)	(109,000)		(143,000)		(252,000)
Securities charged-off	—		—		—
Recoveries	—		—		—
Total ending allowance balance	$	113,000	$	69,000	$	182,000

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 AOCI, 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 AOCI 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 $54,000, net of taxes, at March 31, 2024. This compares to $56,000 and $60,000, net of taxes, at December 31, 2023 and March 31, 2023, 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 FHLBB, a cooperatively owned wholesale bank for housing and finance in the six New England States. As a requirement of membership in the FHLBB, the Bank must own a minimum required amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. The Bank uses the FHLBB for a portion of its wholesale funding needs. As of March 31, 2024 and 2023, and December 31, 2023, the Bank's investment in FHLBB stock totaled $4,896,000, $2,837,000 and $2,348,000, respectively. FHLBB 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 FRBB. As a requirement for membership in the FRBB, the Bank must own a minimum required amount of FRBB stock. The Bank uses FRBB for certain correspondent banking services and maintains borrowing capacity at its discount window. The Bank's investment in FRBB stock totaled $1,037,000 at March 31, 2024 and 2023, and December 31, 2023.

The Company periodically evaluates its investment in FHLBB and FRBB 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 March 31, 2024. The Bank will continue to monitor its investment in these restricted equity securities.