SECURITIES

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

SECURITIES

4. SECURITIES

Securities available for sale and held to maturity are summarized as follows:

	June 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for sale securities:
Government-sponsored mortgage-backed securities	$	128,333	$	394	$	(1,503	)	$	127,224
U.S. government guaranteed mortgage-backed securities		793		—		(15	)		778
Corporate bonds		28,579		1,000		(9	)		29,570
State and municipal bonds		16,491		693		—			17,184
Government-sponsored enterprise obligations		10,507		40		(190	)		10,357
Mutual funds		6,222		7		(149	)		6,080
Common and preferred stock		1,309		252		—			1,561
Total available for sale securities		192,234		2,386		(1,866	)		192,754
Held to maturity securities:
Government-sponsored mortgage-backed securities	$	171,085	$	1,401	$	(2,384	)	$	170,102
U.S. government guaranteed mortgage-backed securities		39,223		56		(721	)		38,558
Corporate bonds		27,132		178		(194	)		27,116
State and municipal bonds		7,318		57		(148	)		7,227
Government-sponsored enterprise obligations		43,441		114		(1,517	)		42,038
Total held to maturity securities		288,199		1,806		(4,964	)		285,041
Total	$	480,433	$	4,192	$	(6,830	)	$	477,795

	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

U.S. government-sponsored and guaranteed mortgage-backed securities are collateralized by both residential and multifamily loans.

Our repurchase agreements and advances from the Federal Home Loan Bank of Boston (“FHLBB”) are collateralized by government-sponsored enterprise obligations and certain mortgage-backed securities (see Note 7).

The amortized cost and fair value of securities available for sale and held to maturity at June 30, 2014, by maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or repay obligations.

	June 30, 2014
	Securities				Securities
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Mortgage-backed securities:
Due after one year through five years	$	5,181	$	5,218	$	—	$	—
Due after five years through ten years		28,389		27,796		46,769		45,404
Due after ten years		95,556		94,988		163,539		163,256
Total	$	129,126	$	128,002	$	210,308	$	208,660
Debt securities:
Due in one year or less	$	2,025	$	2,056	$	—	$	—
Due after one year through five years		33,719		34,765		22,777		22,597
Due after five years through ten years		19,647		20,085		39,989		39,179
Due after ten years		186		205		15,125		14,605
Total	$	55,577	$	57,111	$	77,891	$	76,381

Gross realized gains and losses on sales of securities available for sale for the three and six months ended June 30, 2014 and 2013 are as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(In thousands)
Gross gains realized	$	338		$	879		$	531		$	2,321
Gross losses realized		(317	)		(56	)		(481	)		(71	)
Net gain realized	$	21		$	823		$	50		$	2,250

Proceeds from the sale of securities available for sale amounted to $60.7 million and $122.1 million for the six months ended June 30, 2014 and 2013, respectively.

The tax provision applicable to net realized gains was $9,000 and $17,000 for the three and six months ended June 30, 2014, respectively. The tax provision applicable to net realized gains was $283,000 and $771,000 for the three and six months ended June 30, 2013, respectively

Information pertaining to securities with gross unrealized losses at June 30, 2014, and December 31, 2013, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows:

	June 30, 2014
	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	$	74	$	21,566	$	1,429	$	57,177
U.S. government guaranteed mortgage-backed securities		—		—		15		778
Corporate bonds		1		1,164		8		1,493
Government-sponsored enterprise obligations		—		—		190		7,309
Mutual funds		—		—		149		5,015
Total available for sale		75		22,730		1,791		71,772
Held to maturity:
Government-sponsored mortgage-backed securities		17		7,294		2,367		72,534
U.S. government guaranteed  mortgage-backed securities		—		—		721		21,467
Corporate bonds		194		19,052		—		—
State and municipal bonds		—		—		148		4,537
Government-sponsored enterprise obligations		—		—		1,517		32,563
Total held to maturity		211		26,346		4,753		131,101
Total	$	286	$	49,076	$	6,544	$	202,873

	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

	June 30, 2014
	Less Than 12 Months									Over 12 Months
	Number of Securities		Amortized Cost Basis		Gross Loss		Depreciation from Amortized Cost Basis (%)			Number of Securities		Amortized Cost Basis		Gross Loss		Depreciation from Amortized Cost Basis (%)
	(Dollars in thousands)
Government sponsored mortgage-backed securities		8	$	28,951	$	91		0.3	%		34	$	133,507	$	3,796		2.8	%
U.S. government guaranteed mortgage-backed securities		0		—		—		—			4		22,981		736		3.2
Government sponsored enterprise obligations		0		—		—		—			9		41,579		1,707		4.1
Corporate Bonds		6		20,411		195		1.0			1		1,501		8		0.5
State and municipal bonds		0		—		—		—			8		4,685		148		3.2
Mutual funds		0		—		—		—			2		5,164		149		2.9

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.