Securities

12 Months Ended

Dec. 31, 2025

Securities

Securities

Note 3 – Securities

The amortized cost and estimated fair values of securities classified as AFS are as follows:

	Amortized		Unrealized		Unrealized		Allowance for
	Cost		Gain		Loss		Credit Losses		Fair Value
December 31, 2025	(in thousands)
Available-for-Sale Debt Securities:
U.S. Treasury securities	$	95,479	$	407	$	(103)	$	—	$	95,783
U.S. Government agencies		9,159		53		—		—		9,212
Agency mortgage-backed securities		69,682		162		(1,253)		—		68,591
Agency collateralized mortgage obligations		12,109		202		(74)		—		12,237
Corporate bonds		72,703		263		(3,081)		—		69,885
Municipal obligations		6,596		—		(72)		—		6,524
SBA securities		6,830		—		(103)		—		6,727
Total	$	272,558	$	1,087	$	(4,686)	$	—	$	268,959

	Amortized		Unrealized		Unrealized		Allowance for
	Cost		Gain		Loss		Credit Losses		Fair Value
December 31, 2024	(in thousands)
Available-for-Sale Debt Securities:
U.S. Treasury securities	$	69,469	$	104	$	(489)	$	—	$	69,084
U.S. Government agencies		9,005		9		(7)		—		9,007
Agency mortgage-backed securities		42,083		—		(2,899)		—		39,184
Agency collateralized mortgage obligations		10,993		147		(307)		—		10,833
Corporate bonds		90,219		163		(6,337)		—		84,045
Municipal obligations		10,092		—		(286)		—		9,806
SBA securities		6,298		2		(54)		—		6,246
Total	$	238,159	$	425	$	(10,379)	$	—	$	228,205

The Company did not record a provision for estimated credit losses on any AFS securities for the year ended December 31, 2025, 2024 and 2023. Excluded from the table above is accrued interest on AFS securities of $1.8 million and $1.6 million at December 31, 2025 and December 31, 2024, respectively, which is included within accrued interest receivable on the consolidated balance sheets.

Additionally, the Company did not record any write-offs of accrued interest income on AFS securities for the year ended December 31, 2025, 2024 and 2023. No AFS securities held by the Company were delinquent on contractual payments at December 31, 2025 or 2024, nor were any AFS securities placed on non-accrual status for the year ended December 31, 2025, 2024 and 2023.

When AFS securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. During the year ended December 31, 2025, the Company sold the $24.5 million in Provident AFS securities acquired at fair value on the date of acquisition, resulting in no gain or loss on sale being recorded in the consolidated statement of income under purchase accounting.

During the year ended December 31, 2024, the Company sold $29.3 million of AFS securities and recognized gross realized losses of $1.9 million and gross realized gains of $30,000. There were no sales of AFS securities during the year ended December 31, 2023.

The net unrealized loss on AFS securities is reported, net of deferred income tax effects, as a separate component of the Company’s shareholders’ equity, “Accumulated Other Comprehensive Income (Loss)”, and approximates the following as of the dates stated:

	December 31, 2025		December 31, 2024
	(in thousands)
Unrealized losses, net	$	(3,599)	$	(9,954)
Deferred income tax asset		962		2,567
	$	(2,637)	$	(7,387)

Maturities of AFS Debt Securities – The following is a summary of maturities of AFS securities as of December 31, 2025. The amortized cost and fair values are based on the contractual maturity dates. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty. Agency mortgage-backed securities and collateralized mortgage obligations are presented as separate lines as paydowns are expected to occur before contractual maturity dates.

	Available for Sale
	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	67,170	$	66,891
Over one year to five years		80,284		80,340
Over five years to ten years		38,633		36,244
Over ten years		4,680		4,656
		190,767		188,131
Agency mortgage-backed securities		69,682		68,591
Agency collateralized mortgage obligations		12,109		12,237
	$	272,558	$	268,959

Credit Loss Evaluation – The following tables present fair value and gross unrealized losses, aggregated by investment category and length of time that individual AFS securities have been in a continuous unrealized loss position, as of the dates stated.

		Less than 12 Months				12 Months or More				Total
		(Dollars in thousands)
		Gross				Gross				Gross
	Number of	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
December 31, 2025	Securities	Losses		Value		Losses		Value		Losses		Value
U.S. Treasury securities	8	$	(11)	$	8,929	$	(92)	$	10,945	$	(103)	$	19,874
Agency mortgage-backed securities	25		(301)		26,876		(952)		31,890		(1,253)		58,766
Agency collateralized mortgage obligations	4		(7)		1,995		(67)		7,324		(74)		9,319
Corporate bonds	24		(356)		6,634		(2,725)		53,538		(3,081)		60,172
Municipal obligations	6		(1)		1,440		(71)		5,084		(72)		6,524
SBA securities	5		(28)		2,299		(75)		4,428		(103)		6,727
Total	72	$	(704)	$	48,173	$	(3,982)	$	113,209	$	(4,686)	$	161,382

		Less than 12 Months				12 Months or More				Total
		(Dollars in thousands)
		Gross				Gross				Gross
	Number of	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
December 31, 2024	Securities	Losses		Value		Losses		Value		Losses		Value
U.S. Treasury securities	18	$	(152)	$	35,388	$	(337)	$	6,646	$	(489)	$	42,034
U.S. Government Agencies	2		(7)		4,999		—		—		(7)		4,999
Agency mortgage-backed securities	17		(1,196)		30,229		(1,703)		8,955		(2,899)		39,184
Agency collateralized mortgage obligations	3		(304)		8,265		(3)		113		(307)		8,378
Corporate bonds	29		(1,250)		8,748		(5,087)		69,134		(6,337)		77,882
Municipal obligations	6		—		—		(286)		7,306		(286)		7,306
SBA securities	3		(54)		4,722		—		—		(54)		4,722
Total	78	$	(2,963)	$	92,351	$	(7,416)	$	92,154	$	(10,379)	$	184,505

U.S. Treasury Securities, U.S. Government Agencies, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and SBA securities – The contractual cash flows of these securities are direct obligations of municipalities or the U.S. Treasury, or they consist of agency obligations, mortgage-backed securities or collateralized mortgage obligations which are guaranteed by Fannie Mae, Ginnie Mae, Freddie Mac, the Federal Home Loan Bank, the Small Business Administration or other quasi-government agencies.

Municipal Obligations – The contractual cash flows of these securities are direct obligations of municipalities. We invest in fixed rate investment grade bonds issued primarily by municipalities in our local communities. The market value of these securities may be affected by call options, long dated maturities, general market liquidity and credit factors.

Corporate Bonds – The Company invests in corporate bonds and subordinated debentures, which are scheduled to mature between the calendar years 2026 through 2035. These corporate bonds vary in commercial industries, including automotive, energy, consumer products, and media companies. The Company has also invested in domestic and foreign banking institutions. The subordinated debentures are mostly debt issuances from bank holding companies.

The causes of the unrealized losses listed in the tables above by category are as follows as of December 31, 2025 and 2024:

U.S. Treasury Securities, U.S. Government Agencies, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and SBA securities – The securities with unrealized losses in these portfolios have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies.

Municipal obligations – The securities with unrealized losses in this portfolio have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality.

As of December 31, 2025, the Company did not intend to sell its AFS investments in an unrealized loss position and has determined based upon available evidence that it is more-likely-than-not that the Company will not be required to sell those securities before the expected recovery of their amortized cost basis. Additionally, the declines in fair value are attributable to market changes in interest rates and not due to credit quality, management did not recognize an ACL against the Company’s investment portfolio as of December 31, 2025 and 2024.

Non-Public Investments 

Non-public investments consist of the following income tax credit investments as of the periods presented in the tables below:

	As of December 31, 2025
	Total		Contributed		Net Remaining		Gross		Amortization / Reduction		Net		Tax Credits
	Commitment		to Date		Commitment (1)		Investment		in Investment		Investment		Earned over Life
Investments in Tax Credit Entities:	(in thousands)
Solar Tax Credit Investments:
Sunwealth:
Project Pool 20 LLC (2)	$	2,500	$	2,500	$	—	$	2,500	$	(1,619)	$	881	$	1,458
Project Pool 26 LLC (2)		4,196		4,196		—		4,196		(3,974)		222		2,993
Project Pool 48 LLC (2)		3,000		3,000		—		3,000		(2,629)		371		2,593
Agilitas:
Borden Avenue (2)		7,924		7,924		—		7,924		(7,347)		577		7,128
Franklin Road (2)		8,669		8,669		—		8,669		(8,056)		613		7,539
Holyoke (s)		4,070		4,070		—		4,070		(3,765)		305		3,766
Patriot Renewables:
Bertoline (2)		651		651		—		651		(628)		23		670
Maple Crest (2)		4,975		4,975		—		4,975		(4,850)		125		5,115
Mill Lane (2)		6,783		5,046		1,737		6,783		(6,580)		203		6,817
LIHTC Investments:
USA Institutional Tax Credit Fund CXLIV L.P. (3)		5,000		2,030		2,970		2,030		(230)		1,800		295
Court Street Workforce Housing Limited Partnership (3) (4)		7,839		7,839		—		4,787		(56)		4,731		5,795
National Equity Fund Northeast Regional Fund 2025 LP (3)		10,000		1,052		8,948		1,052		—		1,052		—
Total	$	65,607	$	51,952	$	13,655	$	50,637	$	(39,734)	$	10,903	$	44,169

	As of December 31, 2024
	Total		Contributed		Net Remaining		Total		Amortization / Reduction		Net		Tax Credits
	Commitment		to Date		Commitment (1)		Investment		in Investment		Investment		Earned over Life
Investments in Tax Credit Entities:	(in thousands)
Solar Tax Credit Investments:
Sunwealth:
Project Pool 20 LLC (2)	$	2,500	$	2,500	$	—	$	2,500	$	(2,500)	$	—	$	1,458
Project Pool 26 LLC (2)		4,196		4,196		—		4,196		(4,196)		—		2,993
Project Pool 48 LLC (2)		3,000		3,000		—		3,000		(3,000)		—		2,593
Agilitas:
Borden Avenue (2)		7,704		7,704		—		7,639		(7,639)		—		7,128
Franklin Road (2)		8,148		8,148		—		7,539		(7,539)		—		7,539
Patriot Renewables:
Bertoline (2)		651		651		—		651		(628)		23		670
Maple Crest (2)		4,975		4,975		—		4,975		(4,749)		226		5,115
LIHTC Investments:
USA Institutional Tax Credit Fund CXLIV L.P. (3)		5,000		(9)		5,009		830		(9)		821		46
Total	$	36,174	$	31,165	$	5,009	$	31,330	$	(30,260)	$	1,070	$	27,542

(1) Total remaining commitments for solar tax credit investments are recorded within Accrued Expenses and Other liabilities on the consolidated balance sheets. Total remaining commitments for LIHTCs are not recorded as liabilities.

(2) Amortization for solar tax credit investments is recorded under the PAM of accounting.

(3) LIHTC investments are recorded under the Equity Method of accounting.

(4) LIHTC investment acquired from Provident on November 15, 2025; no tax credits earned in 2025 as they are not eligible for use until 2027 due to the ownership change.

	For the Year Ended December 31, 2025				For the Year Ended December 31, 2024				For the Year Ended December 31, 2023
	Tax Credits		Current Year Pass		Tax Credits		Current Year Pass		Tax Credits		Current Year Pass
	Earned (1)		Pass Through Income (Losses)		Earned (1)		Pass Through Income (Losses)		Earned (1)		Pass Through Income (Losses)
Investments in Tax Credit Entities:
Solar Tax Credit Investments:
Sunwealth:
Project Pool 20 LLC (2)	$	—	$	79	$	—	$	79	$	—	$	79
Project Pool 26 LLC (2)		—		141		—		212		—		232
Project Pool 48 LLC (2)		—		63		2,593		(1,662)		2,593		—
Agilitas:
Borden Avenue (2)		—		153		7,128		(7,360)		7,128		—
Franklin Road (2)		—		165		7,539		(570)		7,539		—
Holyoke (s)		3,766		(3,454)		—		—		—		—
Patriot Renewables:
Bertoline (2)		—		7		—		7		—		(267)
Maple Crest (2)		—		51		—		(934)		—		(1,404)
Mill Lane (2)		6,817		(425)		—		—		—		—
LIHTC Investments:
USA Institutional Tax Credit Fund CXLIV L.P. (3)		249		(518)		46		(89)		46		—
Court Street Workforce Housing Limited Partnership (3)		—		533		—		—		—		—
National Equity Fund Northeast Regional Fund 2025 LP (3)		—		(23)		—		—		—		—
Total	$	10,832	$	(3,228)	$	17,306	$	(10,317)	$	17,306	$	(1,360)

(1) Tax credits are recorded as a reduction of income tax expense in the consolidated statements of income.

(2) For solar tax credit investments, the tax effect of current year pass through income (loss) is recorded in income tax expense in the consolidated statements of income under PAM of accounting.

(3) For LIHTC investments, current year pass through income (loss) is recorded in general and administrative expenses on the consolidated statements of income under the Equity Method of accounting.

Non-public investments consist of the following other investments:

	As of
	December 31, 2025		December 31, 2024
	(in thousands)
Other non-public investments:
Federal Home Loan Bank Stock	$	10,317	$	6,728
Federal Reserve Bank Stock		6,277		12,142
Depositors Insurance Fund Stock		139		139
COCC Stock		555		300
Jassby Inc.		1,000		1,000
Reinventure Capital Fund LLP		2,068		1,818
LearnLaunch Fund III L.P.		650		455
Massachusetts Housing Investment Corporation		337		337
Cross Impact Capital		750		375
Mosaic		510		—
Visible Hands		234		—
Total	$	22,837	$	23,294

Federal Home Loan Bank (“FHLB”) Stock – The Company holds stock in the FHLB of Boston, a regional member of the FHLB, as part of the Company’s membership requirements. Based upon the redemption provisions of the FHLB, the stock is restricted, has no quoted market value, and is carried at original cost. The balance in the investment account as of December 31, 2025 and 2024 was $10.3 million and $6.7 million, respectively.

Federal Reserve Bank (“FRB”) Stock – The Company is required to maintain shares in the FRB for 50% of the total par value in order to meet criteria for membership in the Federal Reserve System. Although the full par value of the stock is $100 per share, the Company is required to pay only $50 per share at the time of purchase with the understanding that the other half of the subscription amount is subject to call at any time. Dividends are paid semi-annually at the statutory rate of 6 percent per annum, or $1.50 per share semi-annually. In addition, Federal Reserve regulations require that the Company purchase additional stock, or that the Federal Reserve System redeem stock, if a change in total deposit liabilities (as reported in the quarterly report of condition) results in a change in the Company’s Federal Reserve Stock holdings requirement by 15 percent or 100 shares, whichever is lower.

As of December 31, 2025, the Company held 125,538 shares of stock in the approximate amount of $6.3 million compared to 242,844 shares of stock in the approximate amount of $12.1 million as of December 31, 2024.