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SECURITIES
 6 Months Ended
Jun. 30, 2016
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, 2016
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises
$
4,975

 
$
156

 
$
—

 
$
5,131

Obligations of states and political subdivisions
9,765

 
279

 
—

 
10,044

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
461,493

 
9,117

 
(139
)
 
470,471

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
305,878

 
3,064

 
(1,330
)
 
307,612

Subordinated corporate bonds
5,481

 
142

 
—

 
5,623

Total AFS debt securities
787,592

 
12,758

 
(1,469
)
 
798,881

Equity securities
632

 
13

 
—

 
645

Total AFS securities
$
788,224

 
$
12,771

 
$
(1,469
)
 
$
799,526

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
93,609

 
$
4,086

 
$
(3
)
 
$
97,692

Total HTM securities
$
93,609

 
$
4,086

 
$
(3
)
 
$
97,692

December 31, 2015
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises
$
4,971

 
$
69

 
$
—

 
$
5,040

Obligations of states and political subdivisions
17,355

 
339

 
—

 
17,694

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
419,429

 
3,474

 
(3,857
)
 
419,046

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
312,719

 
409

 
(6,271
)
 
306,857

Subordinated corporate bonds
1,000

 
—

 
(4
)
 
996

Total AFS debt securities
755,474

 
4,291

 
(10,132
)
 
749,633

Equity securities
712

 
2

 
(9
)
 
705

Total AFS securities
$
756,186

 
$
4,293

 
$
(10,141
)
 
$
750,338

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
84,144

 
$
1,564

 
$
(61
)
 
$
85,647

Total HTM securities
$
84,144

 
$
1,564

 
$
(61
)
 
$
85,647


 
Net unrealized gains on AFS securities at June 30, 2016 included in AOCI amounted to $7.3 million, net of a deferred tax liability of $4.0 million. Net unrealized losses on AFS securities at December 31, 2015 included in AOCI amounted to $3.8 million, net of a deferred tax benefit of $2.0 million.

During the first six months of 2016, the Company purchased investment securities totaling $108.4 million. The Company designated $98.7 million as AFS securities and $9.7 million as HTM securities.

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, and 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 cost basis 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, 2016 and December 31, 2015, 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, 2016
 

 
 

 
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
1

 
$
—

 
$
33,618

 
$
(139
)
 
$
33,619

 
$
(139
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
1,930

 
(8
)
 
94,005

 
(1,322
)
 
95,935

 
(1,330
)
Total AFS securities
$
1,931

 
$
(8
)
 
$
127,623

 
$
(1,461
)
 
$
129,554

 
$
(1,469
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
423

 
$
(3
)
 
$
—

 
$
—

 
$
423

 
$
(3
)
Total HTM securities
$
423

 
$
(3
)
 
$
—

 
$
—

 
$
423

 
$
(3
)
December 31, 2015
 

 
 

 
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
234,897

 
$
(2,351
)
 
$
45,629

 
$
(1,506
)
 
$
280,526

 
$
(3,857
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
111,143

 
(1,068
)
 
147,180

 
(5,203
)
 
258,323

 
(6,271
)
Subordinated corporate bonds
996

 
(4
)
 
—

 
—

 
996

 
(4
)
Equity Securities
615

 
(9
)
 
—

 
—

 
615

 
(9
)
Total AFS securities
$
347,651

 
$
(3,432
)
 
$
192,809

 
$
(6,709
)
 
$
540,460

 
$
(10,141
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
5,507

 
$
(61
)
 
$
—

 
$
—

 
$
5,507

 
$
(61
)
Total HTM securities
$
5,507

 
$
(61
)
 
$
—

 
$
—

 
$
5,507

 
$
(61
)


At June 30, 2016 and December 31, 2015, the Company held 20 and 110 investment securities with a fair value of $130.0 million and $546.1 million with unrealized losses totaling $1.5 million and $10.2 million, respectively, that were considered temporary. Of these, the Company had 19 MBS and CMO investments with a fair value of $129.6 million that were in an unrealized loss position totaling $1.5 million at June 30, 2016 and 28 MBS and CMO investments with a fair value of $192.8 million that were in an unrealized loss position totaling $6.7 million at December 31, 2015 for 12 months or more. The unrealized loss was reflective of current interest rates in excess of the yield received on investments and is not indicative of an overall change in credit quality or other factors with the Company's investment portfolio. At June 30, 2016 and December 31, 2015, gross unrealized losses on the Company's AFS and HTM securities were 0% and 2%, respectively, of the respective investment securities fair value.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at June 30, 2016 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,
 
2016
 
2015
 
2016
 
2015
Proceeds from sales of securities
$
84

 
$
—

 
$
84

 
$
—

Gross realized gains
4

 
—

 
4

 
—

Gross realized losses
—

 
—

 
—

 
—


 
For the three and six months ended June 30, 2016, the Company sold certain AFS securities with a total carrying value of $84,000 and recorded net gains on the sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. The Company did not sell any securities during the three and six months ended June 30, 2015.

The cost basis of securities sold is measured on a specific identification basis.

FHLBB and FRB Stock
As of June 30, 2016 and December 31, 2015, the Company's investment in FHLBB stock was $23.5 million and $20.6 million, respectively. As of June 30, 2016 and December 31, 2015, the Company's investment in FRB stock was $5.4 million and $908,000, respectively.

Securities Pledged
At June 30, 2016 and December 31, 2015, securities with an amortized cost of $549.3 million and $577.6 million and estimated fair values of $555.9 million and $570.9 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, 2016, 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
$
1,430

 
$
1,441

Due after one year through five years
107,452

 
109,501

Due after five years through ten years
101,018

 
104,203

Due after ten years
577,692

 
583,736

 
$
787,592

 
$
798,881

HTM Securities
 
 
 
Due after one year through five years
$
2,189

 
$
2,247

Due after five years through ten years
4,587

 
4,726

Due after ten years
86,833

 
90,719

 
$
93,609

 
$
97,692