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SECURITIES
 9 Months Ended
Sep. 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
September 30, 2015
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises
$
4,969

 
$
125

 
$
—

 
$
5,094

Obligations of states and political subdivisions
19,471

 
401

 
—

 
19,872

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
376,950

 
5,490

 
(1,391
)
 
381,049

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
318,417

 
2,512

 
(2,707
)
 
318,222

Total AFS securities
$
719,807

 
$
8,528

 
$
(4,098
)
 
$
724,237

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
75,368

 
$
1,311

 
$
(101
)
 
$
76,578

Total HTM securities
$
75,368

 
$
1,311

 
$
(101
)
 
$
76,578

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 September 30, 2015 included in AOCI amounted to $2.9 million, net of a deferred tax of $1.6 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 nine months of 2015, the Company purchased investment securities totaling $136.7 million. The Company designated $81.3 million as AFS securities and $55.4 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 September 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
September 30, 2015
 

 
 

 
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
53,164

 
$
(395
)
 
$
57,721

 
$
(996
)
 
$
110,885

 
$
(1,391
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
12,183

 
(188
)
 
145,289

 
(2,519
)
 
157,472

 
(2,707
)
Total AFS securities
$
65,347

 
$
(583
)
 
$
203,010

 
$
(3,515
)
 
$
268,357

 
$
(4,098
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
12,388

 
$
(101
)
 
$
—

 
$
—

 
$
12,388

 
$
(101
)
Total HTM securities
$
12,388

 
$
(101
)
 
$
—

 
$
—

 
$
12,388

 
$
(101
)
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 September 30, 2015, the Company held 73 investment securities with a fair value of $280.7 million with unrealized losses totaling $4.2 million that are considered temporary. Of these, the Company had 34 MBS and CMO investments with a fair value of $203.0 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 September 30, 2015, gross unrealized losses on the Company's AFS and HTM securities were 1% of amortized cost.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at September 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 September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Proceeds from sales of securities
$
12,426

 
$
—

 
$
12,426

 
$
25,695

Gross realized gains
221

 
—

 
221

 
451

Gross realized losses
(217
)
 
—

 
(217
)
 
—


 
For the three months ended September 30, 2015, the Company sold certain AFS securities with total carrying value of $12.4 million and recorded net gains on the sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. As part of the Company’s securities portfolio restructuring due to its pending merger with SBM as of September 30, 2015 (which subsequently was completed on October 16, 2015) it sold all of its Non-Agency investments in the quarter ended September 30, 2015, along with $7.3 million of MBS investments experiencing high prepayment speeds. The Company recorded a net gain of $4,000 from the sale of its Non-Agency and MBS investments. The Company had previously recorded OTTI on its Non-Agency investments of $204,000. For the three months ended September 30, 2014, the Company did not sell any investment securities.

For the nine months ended September 30, 2015, the Company sold certain AFS securities with total carrying value of $12.4 million and recorded net gains on sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. For the nine months ended September 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.

Securities Pledged
At September 30, 2015 and December 31, 2014, securities with an amortized cost of $508.9 million and $486.2 million, respectively, and estimated fair values of $510.3 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 September 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
$
3,594

 
$
3,634

Due after one year through five years
87,212

 
88,411

Due after five years through ten years
110,852

 
113,415

Due after ten years
518,149

 
518,777

 
$
719,807

 
$
724,237

HTM Securities
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
2,234

 
2,290

Due after five years through ten years
1,134

 
1,143

Due after ten years
72,000

 
73,145

 
$
75,368

 
$
76,578