SECURITIES

The following tables summarize the amortized cost and estimated fair values of AFS and HTM securities, as of the dates indicated:



	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2015
AFS Securities:
Obligations of U.S. government-sponsored enterprises	$	4,964	$	121	$	—		$	5,085
Obligations of states and political subdivisions	22,574		593		—			23,167
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	378,675		6,977		(930		)	384,722
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	334,364		2,150		(3,133		)	333,381
Private issue collateralized mortgage obligations	5,757		85		(33		)	5,809
Total AFS securities	$	746,334	$	9,926	$	(4,096	)	$	752,164
HTM Securities:
Obligations of states and political subdivisions	$	41,010	$	529	$	(40	)	$	41,499
Total HTM securities	$	41,010	$	529	$	(40	)	$	41,499
December 31, 2014
AFS Securities:
Obligations of U.S. government-sponsored enterprises	$	4,962	$	65	$	—		$	5,027
Obligations of states and political subdivisions	26,080		697		—			26,777
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	377,657		5,656		(2,005		)	381,308
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	348,855		953		(5,911		)	343,897
Private issue collateralized mortgage obligations	5,999		63		(8		)	6,054
Total AFS securities	$	763,553	$	7,434	$	(7,924	)	$	763,063
HTM Securities:
Obligations of states and political subdivisions	$	20,179	$	265	$	(19	)	$	20,425
Total HTM securities	$	20,179	$	265	$	(19	)	$	20,425

Net unrealized gains on AFS securities at March 31, 2015 included in AOCI amounted to $3.8 million, net of a deferred tax liability of $2.0 million. Net unrealized losses on AFS securities at December 31, 2014 included in AOCI amounted to $319,000, net of a deferred tax benefit of $172,000.

During the first three months of 2015, the Company purchased investment securities totaling $36.4 million. The Company designated $20.3 million as AFS securities and $16.1 million as HTM securities.

Impaired Securities

Management periodically reviews the Company’s investment portfolio to determine the cause, magnitude and duration of declines in the fair value of each security. Thorough evaluations of the causes of the unrealized losses are performed to determine whether the impairment is temporary or other-than-temporary in nature. Considerations such as the ability of the securities to meet cash flow requirements, levels of credit enhancements, risk of curtailment, recoverability of invested amount over a reasonable period of time, and the length of time the security is in a loss position, for example, are applied in determining OTTI. Once a decline in value is determined to be other-than-temporary, the value of the security is permanently reduced and a corresponding charge to earnings is recognized.

The following table presents the estimated fair values and gross unrealized losses of investment securities that were in a continuous loss position at March 31, 2015 and December 31, 2014, by length of time that individual securities in each category have been in a continuous loss position:



	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2015
AFS Securities:
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	$	10,308	$	(26	)	$	73,476	$	(904	)	$	83,784	$	(930	)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	9,308		(171		)	161,546		(2,962		)	170,854		(3,133		)
Private issue collateralized mortgage obligations	1,818		(33		)	—		—			1,818		(33		)
Total AFS securities	$	21,434	$	(230	)	$	235,022	$	(3,866	)	$	256,456	$	(4,096	)
HTM Securities:
Obligations of states and political subdivisions	$	6,160	$	(40	)	$	—	$	—		$	6,160	$	(40	)
Total HTM securities	$	6,160	$	(40	)	$	—	$	—		$	6,160	$	(40	)
December 31, 2014
AFS Securities:
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	$	42,856	$	(171	)	$	125,439	$	(1,834	)	$	168,295	$	(2,005	)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	75,723		(432		)	182,512		(5,479		)	258,235		(5,911		)
Private issue collateralized mortgage obligations	1,785		(8		)	—		—			1,785		(8		)
Total AFS securities	$	120,364	$	(611	)	$	307,951	$	(7,313	)	$	428,315	$	(7,924	)
HTM Securities:
Obligations of states and political subdivisions	$	5,756	$	(19	)	$	—	$	—		$	5,756	$	(19	)
Total HTM securities	$	5,756	$	(19	)	$	—	$	—		$	5,756	$	(19	)

At March 31, 2015, the Company held 60 investment securities with a fair value of $262.6 million with unrealized losses totaling $4.1 million that are considered temporary. Of these, the Company had 38 MBS and CMO investments with a fair value of $235.0 million that have been in an unrealized loss position for 12 months or more. The decline in the fair value of securities is reflective of current interest rates in excess of the yield received on investments and is not indicative of an overall credit deterioration or other factors with the Company's investment portfolio. At March 31, 2015, the Company had no Non-Agency investments in an unrealized loss position for 12 months or more.

Stress tests are performed monthly on the Company's Non-Agency investments, which are higher risk bonds within the investment portfolio, using current statistical data to determine expected cash flows and forecast potential losses. The results of the stress tests during the first three months of 2015 and 2014 indicated potential future credit losses that were lower than previously recorded OTTI and, as such, no additional OTTI was recorded during the first three months of 2015 or 2014.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at March 31, 2015 until the decline in value has recovered.

Sale of Securities

The following table details the Company’s sales of AFS securities for the period indicated below:



	Three Months Ended March 31,
	2015		2014
Proceeds from sales of securities	$	—	$	9,437
Gross realized gains	—		166
Gross realized losses	—		—

For the three months ended March 31, 2015, the Company did not sell any investment securities. For the three months ended March 31, 2014, the Company sold certain AFS securities with a total carrying value of $9.3 million and recorded net gains on the sale of AFS securities of $166,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold.

Securities Pledged

At March 31, 2015 and December 31, 2014, securities with an amortized cost of $476.0 million and $486.2 million and estimated fair values of $479.4 million and $485.6 million, respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law.

Contractual Maturities

The amortized cost and estimated fair values of debt securities by contractual maturity at March 31, 2015, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Amortized Cost		Fair Value
AFS Securities
Due in one year or less	$	2,535	$	2,588
Due after one year through five years	89,461		90,309
Due after five years through ten years	96,423		98,530
Due after ten years	557,915		560,737
	$	746,334	$	752,164
HTM Securities
Due in one year or less	$	—	$	—
Due after one year through five years	1,118		1,159
Due after five years through ten years	2,299		2,316
Due after ten years	37,593		38,024
	$	41,010	$	41,499