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SECURITIES
 6 Months Ended
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
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
June 30, 2015
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises
$
4,967

 
$
84

 
$
—

 
$
5,051

Obligations of states and political subdivisions
21,192

 
481

 
—

 
21,673

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
381,403

 
5,083

 
(3,219
)
 
383,267

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
329,577

 
1,483

 
(4,187
)
 
326,873

Private issue collateralized mortgage obligations
5,495

 
73

 
(76
)
 
5,492

Total AFS securities
$
742,634

 
$
7,204

 
$
(7,482
)
 
$
742,356

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
60,234

 
$
277

 
$
(702
)
 
$
59,809

Total HTM securities
$
60,234

 
$
277

 
$
(702
)
 
$
59,809

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 losses on AFS securities at June 30, 2015 included in AOCI amounted to $181,000, net of a deferred tax benefit of $97,000. 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 six months of 2015, the Company purchased investment securities totaling $96.2 million. The Company designated $56.0 million as AFS securities and $40.2 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 June 30, 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
June 30, 2015
 

 
 

 
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
120,190

 
$
(1,360
)
 
$
58,881

 
$
(1,859
)
 
$
179,071

 
$
(3,219
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
34,272

 
(312
)
 
154,439

 
(3,875
)
 
188,711

 
(4,187
)
Private issue collateralized mortgage obligations
1,704

 
(76
)
 
—

 
—

 
1,704

 
(76
)
Total AFS securities
$
156,166

 
$
(1,748
)
 
$
213,320

 
$
(5,734
)
 
$
369,486

 
$
(7,482
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
40,243

 
$
(702
)
 
$
—

 
$
—

 
$
40,243

 
$
(702
)
Total HTM securities
$
40,243

 
$
(702
)
 
$
—

 
$
—

 
$
40,243

 
$
(702
)
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 June 30, 2015, the Company held 137 investment securities with a fair value of $409.7 million with unrealized losses totaling $8.2 million that are considered temporary. Of these, the Company had 36 MBS and CMO investments with a fair value of $213.3 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 June 30, 2015, the Company did not have any Non-Agency investments in an unrealized loss position for 12 months or more. At June 30, 2015, gross unrealized losses on the Company's AFS and HTM securities were 1% of amortized cost.

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 six 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 six months of 2015 or 2014.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at June 30, 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 June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Proceeds from sales of securities
$
—

 
$
16,258

 
$
—

 
$
25,695

Gross realized gains
—

 
285

 
—

 
451

Gross realized losses
—

 
—

 
—

 
—


 
For the three months ended June 30, 2015, the Company did not sell any investment securities. For the three months ended June 30, 2014, the Company sold certain AFS securities with a total carrying value of $16.0 million and recorded net gains on the sale of AFS securities of $285,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold.

For the six months ended June 30, 2015, the Company did not sell any investment securities. For the six months ended June 30, 2014, the Company sold certain AFS securities with a total carrying value of $25.2 million and recorded net gains on the sale of AFS securities of $451,000 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 June 30, 2015 and December 31, 2014, securities with an amortized cost of $479.6 million and $486.2 million and estimated fair values of $478.7 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 June 30, 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
$
3,131

 
$
3,188

Due after one year through five years
89,497

 
89,995

Due after five years through ten years
103,955

 
105,684

Due after ten years
546,051

 
543,489

 
$
742,634

 
$
742,356

HTM Securities
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
2,250

 
2,284

Due after five years through ten years
1,143

 
1,146

Due after ten years
56,841

 
56,379

 
$
60,234

 
$
59,809