2. SECURITIES

Securities available for sale are summarized as follows:

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for sale securities:
Government-sponsored mortgage-backed securities	$	135,981	$	419	$	(4,028	)	$	132,372
U.S. government guaranteed mortgage-backed securities		46,225		240		(137	)		46,328
Corporate bonds		26,716		766		(93	)		27,389
State and municipal bonds		18,240		659		(2	)		18,897
Government-sponsored enterprise obligations		10,992		18		(310	)		10,700
Mutual funds		6,150		8		(239	)		5,919
Common and preferred stock		1,310		289		-			1,599

Total available for sale securities		245,614		2,399		(4,809	)		243,204

Held to maturity securities:
Government-sponsored mortgage-backed securities		176,986		-		(6,819	)		170,167
U.S. government guaranteed mortgage-backed securities		39,705		-		(1,391	)		38,314
Corporate bonds		27,566		30		(567	)		27,029
State and municipal bonds		7,351		5		(345	)		7,011
Government-sponsored enterprise obligations		43,405		-		(3,371	)		40,034

Total held to maturity securities		295,013		35		(12,493	)		282,555

Total	$	540,627	$	2,434	$	(17,302	)	$	525,759

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses				Fair Value
	(In thousands)

Government-sponsored mortgage-backed securities	$	318,951	$	9,703		$	(631	)	$	328,023
U.S. government guaranteed mortgage-backed securities		124,650		6,085			-			130,735
Corporate bonds		50,782		1,618			(63	)		52,337
State and municipal bonds		38,788		2,067			(9	)		40,846
Government-sponsored enterprise obligations		60,840		1,257			(37	)		62,060
Mutual funds		5,998		117			(69	)		6,046
Common and preferred stock		1,310		150			-			1,460

Total	$	601,319	$	20,997		$	(809	)	$	621,507

Our repurchase agreements and FHLBB advances are collateralized by government-sponsored enterprise obligations and certain mortgage-backed securities (see Notes 6 and 7).

The amortized cost and fair value of securities at December 31, 2013, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations.

	December 31, 2013
	Securities				Securities
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Mortgage-backed securities:
Due after five years through ten years	$	39,482	$	37,783	$	44,261	$	41,476
Due after ten years		142,724		140,917		172,430		167,005
Total	$	182,206	$	178,700	$	216,691	$	208,481

Debt securities:
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years		34,533		35,204		14,751		14,486
Due after five years through ten years		21,230		21,586		48,014		45,268
Due after ten years		185		196		15,557		14,320
Total	$	55,948	$	56,986	$	78,322	$	74,074

Gross realized gains and losses on sales of securities for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Years Ended December 31,
	2013			2012			2011
	(In thousands)

Gross gains realized	$	3,978		$	4,068		$	1,901
Gross losses realized		(852	)		(1,161	)		(1,487	)
Net gain realized	$	3,126		$	2,907		$	414

Proceeds from the sale of securities available for sale amounted to $206.8 million, $288.1 million and $203.7 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The tax provision applicable to net realized gains and losses were $1.1 million, $1.0 million and $144,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

Information pertaining to securities with gross unrealized losses at December 31, 2013 and 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	December 31, 2013
	Less Than 12 Months				Over 12 Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In thousands)
Available for sale:
Government-sponsored mortgage-backed securities	$	3,717	$	118,846	$	311	$	2,761
U.S. government guaranteed mortgage-backed securities		137		15,045		-		-
Corporate bonds		93		4,659		-		-
State and municipal bonds		2		256		-		-
Government-sponsored enterprise obligations		310		7,189		-		-
Mutual funds		84		3,205		155		1,656

Total available for sale		4,343		149,200		466		4,417

Held to maturity:
Government-sponsored mortgage-backed securities		5,866		145,438		953		24,729
U.S. government guaranteed mortgage-backed securities		1,391		38,314		-		-
Corporate bonds		567		22,059		-		-
State and municipal bonds		345		5,852		-		-
Government-sponsored enterprise obligations		3,330		38,228		41		1,806

Total held to maturity		11,499		249,891		994		26,535

Total	$	15,842	$	399,091	$	1,460	$	30,952

	December 31, 2012
	Less Than 12 Months				Over 12 Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In thousands)

Government-sponsored mortgage-backed securities	$	631	$	49,081	$	-	$	-
Corporate bonds		63		4,330		-		-
State and municipal bonds		9		1,178		-		-
Government-sponsored enterprise obligations		37		17,918		-		-
Mutual funds		-		-		69		1,684

Total	$	740	$	72,507	$	69	$	1,684

At December 31, 2013, 73 mortgage-backed securities had gross unrealized losses with aggregate depreciation of 3.4% from our amortized cost basis existing for less than 12 months. At December 31, 2013, nine mortgage-backed securities had gross unrealized losses with aggregate depreciation of 4.4% from our amortized cost basis existing for greater than 12 months. At December 31, 2013, 13 government-sponsored enterprise obligations had gross unrealized loss with aggregate depreciation of 7.4% from our amortized cost basis existing for less than 12 months. At December 31, 2013, one government-sponsored enterprise obligation had gross unrealized loss with aggregate depreciation of 2.2% from our amortized cost basis existing for greater than 12 months. At December 31, 2013, 10 corporate bonds had gross unrealized loss of 2.4% from our amortized cost basis existing for less than 12 months. At December 31, 2013, 14 municipal bonds had gross unrealized loss of 5.4% from our amortized cost basis existing for less than 12 months. These unrealized losses are the result of changes in interest rates and not credit quality. Because we do not intend to sell the securities and it is more likely than not that we will not be required to sell the investments before recovery of their amortized cost basis, no declines are deemed to be other-than-temporary.

At December 31, 2013, one mutual fund had a gross unrealized loss with aggregate depreciation of 2.6% from our amortized cost basis existing for less than 12 months. At December 31, 2013, one mutual fund had a gross unrealized loss with depreciation of 8.6% from our cost basis existing for greater than 12 months and was principally related to fluctuations in interest rates. These losses relate to mutual funds that invest primarily in short-term debt instruments and adjustable rate mortgage-backed securities. Because we do not intend to sell the securities and it is more likely than not that we will not be required to sell these prior to the recovery of the amortized cost basis, the losses are deemed temporary.

Credit losses on mortgage-backed securities for which a portion of other-than-temporary impairment was recognized in other comprehensive income (loss) in the amount of $442,000 was eliminated when the securities were sold during the year ended December 31, 2012.