
	At June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	245,960	$	3,583	$	3,209	$	246,334
GSE CMOs	35,149		803		8		35,944
GSE MBSs	240,300		6,124		370		246,054




Corporate debt obligations	22,239		869		—		23,108
U.S. Treasury bonds	142,080		2,154		2,020		142,214
Foreign government obligations	500		—		3		497


Total investment securities available-for-sale	$	686,228	$	13,533	$	5,610	$	694,151


	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	273,820	$	5,455	$	630	$	278,645
GSE CMOs	44,937		1,103		12		46,028
GSE MBSs	312,658		10,956		5		323,609




Corporate debt obligations	22,299		1,168		—		23,467
U.S. Treasury bonds	70,339		3,318		80		73,577

Foreign government obligations	500		—		4		496

Total investment securities available-for-sale	$	724,553	$	22,000	$	731	$	745,822






Equity securities held-for-trading							$	526

As of June 30, 2021, the fair value of all investment securities available-for-sale was $694.2 million, with net unrealized gains of $7.9 million, compared to a fair value of $745.8 million and net unrealized gains of $21.3 million as of December 31, 2020. As of June 30, 2021, $214.2 million, or 30.9% of the portfolio, had gross unrealized losses of $5.6 million, compared to $86.9 million, or 11.7% of the portfolio, with gross unrealized losses of $0.7 million as of December 31, 2020.

As of June 30, 2021 and December 31, 2020, respectively, $402.1 million and $448.7 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and Federal Home Loan Bank of Boston ("FHLBB") borrowings. The Banks had no outstanding FRB borrowings as of June 30, 2021 and December 31, 2020.

For available-for-sale securities in an unrealized loss position, management first assesses whether (i) the Company intends to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither criterion is met, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Adjustments to the allowance are reported as a component of credit loss expense. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivables associated with debt securities available-for-sale totaled $2.6 million, as of June 30, 2021 and December 31, 2020.

A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended June 30, 2021 and 2020.


	At June 30, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	91,341	$	3,018	$	7,874	$	191	$	99,215	$	3,209
GSE CMOs	—		—		924		8		924		8
GSE MBSs	49,570		367		374		3		49,944		370





U.S. Treasury bonds	63,658		2,020		—		—		63,658		2,020
Foreign government obligations	—		—		497		3		497		3


Temporarily impaired investment securities available-for-sale	204,569		5,405		9,669		205		214,238		5,610






Total temporarily impaired investment securities	$	204,569	$	5,405	$	9,669	$	205	$	214,238	$	5,610


	At December 31, 2020
	Less than Twelve Months				Twelve Months or Longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(In Thousands)
Investment securities available-for-sale:
GSE debentures	$	72,745	$	630	$	—	$	—	$	72,745	$	630
GSE CMOs	832		7		872		5		1,704		12
GSE MBSs	2,102		5		97		—		2,199		5




U.S. Treasury bonds	9,750		80		—		—		9,750		80
Foreign government obligations	—		—		496		4		496		4


Temporarily impaired investment securities available-for-sale	85,429		722		1,465		9		86,894		731






Total temporarily impaired investment securities	$	85,429	$	722	$	1,465	$	9	$	86,894	$	731

The Company performs regular analyses of the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is impaired. In making these impairment determinations, management considers, among other factors, projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers.

Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a security investment is impaired and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a security is impaired and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's consolidated statement of income.

The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company’s available-for-sale portfolio were impaired as of June 30, 2021.The Company has determined it is more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not impaired as of June 30, 2021. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional impairment in future periods.

The Company invests in securities issued by U.S. Government-sponsored enterprises ("GSEs"), including GSE debentures, mortgage-backed securities ("MBSs"), and collateralized mortgage obligations ("CMOs"). GSE securities include obligations issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Government National Mortgage Association ("GNMA"), the FHLBB and the Federal Farm Credit Bank. As of June 30, 2021, the Company held GNMA MBSs and CMOs, and Small Business Administration ("SBA") commercial loan asset-backed securities in its available-for-sale portfolio with an estimated fair value of $5.6 million, all of which were backed explicitly by the full faith and credit of the U.S. Government, compared to $7.3 million as of December 31, 2020.

$278.6 million, with a net unrealized gain of $4.8 million. As of June 30, 2021, 10 of the 54 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 7 of the 54 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S Government. During the six months ended June 30, 2021, the Company did not purchase GSE debentures. This compares to the same period in 2020 when the Company purchased $169.0 million GSE debentures. During the six months ended June 30, 2020, the Company transferred 9 held-to-maturity GSE debentures with a total fair value of $25.5 million to the available-for-sale portfolio.

As of June 30, 2021, the Company owned 33 GSE CMOs with a total fair value of $35.9 million and a net unrealized gain of $0.8 million. As of December 31, 2020, the Company held 33 GSE CMOs with a total fair value of $46.0 million with a net unrealized gain of $1.1 million. As of June 30, 2021 and December 30, 2020, 2 of the 33 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the six months ended June 30, 2021 and 2020, the Company did not purchase any GSE CMOs.

As of June 30, 2021, the Company owned 139 GSE MBSs with a total fair value of $246.1 million and a net unrealized gain of $5.8 million. As of December 31, 2020, the Company held 140 GSE MBSs with a total fair value of $323.6 million with a net unrealized gain of $11.0 million. As of June 30, 2021, 20 of the 139 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 17 of the 140 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the six months ended June 30, 2021, the Company did not purchase any GSE MBSs. This compares to the same period in 2020 when the Company purchased $248.4 million GSE MBSs. During the six months ended June 30, 2020, the Company transferred 8 held-to-maturity GSE MBSs with a total fair value of $9.0 million to the available-for-sale portfolio.

The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of June 30, 2021, the Company held 6 corporate obligation securities with a total fair value of $23.1 million and a net unrealized gain of $0.9 million. As of December 31, 2020, the Company held 6 corporate obligation securities with a total fair value of $23.5 million and a net unrealized gain of $1.2 million. As of June 30, 2021 and December 31, 2020, none of the securities in this portfolio were in an unrealized loss position. Full collection of the obligations is expected because the financial condition of the issuers is sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. During the six months ended June 30, 2021 and 2020, the Company did not purchase any corporate obligations. During the six months ended June 30, 2020, the Company transferred 1 held-to-maturity corporate obligation security with a total fair value of $0.5 million to the available-for-sale portfolio.

The Company invests in securities issued by the U.S. government. As of June 30, 2021, the Company owned 19 U.S. Treasury bonds with a total fair value of $142.2 million and an unrealized gain of $0.1 million. This compares to 12 U.S. Treasury bonds with a total fair value of $73.6 million and an unrealized gain of $3.2 million as of December 31, 2020. As of June 30, 2021, 7 of the 19 securities in this portfolio were in an unrealized loss position. As of December 31, 2020, 1 of the 12 securities in this portfolio was an unrealized loss position. During the six months ended June 30, 2021 the Company purchased $71.8 million U.S. Treasury bonds, compared to the same period in 2020 when the Company purchased $21.2 million U.S. Treasury bonds.

As of June 30, 2021 and December 31, 2020, the Company did not own any municipal obligation securities. During the six months ended June 30, 2021 and 2020, the Company did not purchase any municipal obligations. During the six months ended June 30, 2020, the Company transferred 93 held-to-maturity municipal obligations securities with a total fair value of $47.7 million to the available-for-sale portfolio.

From time to time, the Company will invest in equity securities held-for-trading. As of June 30, 2021, the Company did not own any equity securities held-for-trading. As of December 31, 2020, the Company owned equity securities held-for-trading with a fair value of $0.5 million.


	At June 30, 2021						At December 31, 2020
	Amortized Cost		Estimated Fair Value		Weighted Average Rate		Amortized Cost		Estimated Fair Value		Weighted Average Rate
	(Dollars in Thousands)
Investment securities available-for-sale:
Within 1 year	$	60,865	$	61,478	1.98	%	$	31,633	$	32,013	2.02	%
After 1 year through 5 years	251,542		256,988		1.95	%	146,274		153,262		2.22	%
After 5 years through 10 years	115,322		120,226		2.26	%	222,271		225,568		1.43	%
Over 10 years	258,499		255,459		1.31	%	324,375		334,979		1.86	%
	$	686,228	$	694,151	1.77	%	$	724,553	$	745,822	1.81	%

Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows.

As of June 30, 2021, issuers of debt securities with an estimated fair value of $67.8 million had the right to call or prepay the obligations. Of the $67.8 million, approximately $12.7 million matures in 1 - 5 years, $45.2 million matures in 6 - 10 years, and $9.9 million matures after ten years. As of December 31, 2020, issuers of debt securities with an estimated fair value of approximately $90.8 million had the right to call or prepay the obligations. Of the $90.8 million, $12.9 million matures in 1-5 years, and $68.1 million matures in 6 - 10 years, and $9.8 million matures after ten years.

The Company sold $0.5 million of investment securities available-for-sale or equity securities held-for-trading during the six months ended June 30, 2021. This compares to $132.0 million securities sold during the six months ended June 30, 2020.


	Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
	(In Thousands)

Proceeds from sales of investment securities available-for-sale and equity securities held-for-trading	$	520	$	132,014

Gross gains from securities sales	1		3,152
Gross losses from securities sales	—		(167)
Gain on sales of securities, net	$	1	$	2,985