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SECURITIES
 9 Months Ended
Sep. 30, 2017
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, 2017
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
7,233

 
$
132

 
$
—

 
$
7,365

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
524,763

 
961

 
(4,620
)
 
521,104

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
267,096

 
131

 
(4,837
)
 
262,390

Subordinated corporate bonds
5,483

 
168

 
—

 
5,651

Total AFS debt securities
804,575

 
1,392

 
(9,457
)
 
796,510

Equity securities
623

 
118

 
—

 
741

Total AFS securities
$
805,198

 
$
1,510

 
$
(9,457
)
 
$
797,251

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
94,207

 
$
1,169

 
$
(282
)
 
$
95,094

Total HTM securities
$
94,207

 
$
1,169

 
$
(282
)
 
$
95,094

December 31, 2016
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
8,848

 
$
153

 
$
—

 
$
9,001

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
485,222

 
2,515

 
(7,115
)
 
480,622

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
289,046

 
265

 
(5,421
)
 
283,890

Subordinated corporate bonds
5,481

 
132

 
—

 
5,613

Total AFS debt securities
788,597

 
3,065

 
(12,536
)
 
779,126

Equity securities
632

 
109

 
—

 
741

Total AFS securities
$
789,229

 
$
3,174

 
$
(12,536
)
 
$
779,867

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
94,609

 
$
618

 
$
(631
)
 
$
94,596

Total HTM securities
$
94,609

 
$
618

 
$
(631
)
 
$
94,596


 
Net unrealized losses on AFS securities at September 30, 2017 included in AOCI amounted to $5.2 million, net of a deferred tax benefit of $2.7 million. Net unrealized losses on AFS securities at December 31, 2016 included in AOCI amounted to $6.1 million, net of a deferred tax benefit of $3.3 million.

During the first nine months of 2017, the Company purchased investment securities totaling $141.6 million, all of which were designated as AFS securities.

During the first nine months of 2016, the Company purchased investment securities totaling $140.7 million. The Company designated $130.3 million as AFS securities and $10.4 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, 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 September 30, 2017 and December 31, 2016, 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, 2017
 

 
 

 
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
345,629

 
$
(3,127
)
 
$
47,553

 
$
(1,493
)
 
$
393,182

 
$
(4,620
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
134,761

 
(1,579
)
 
88,177

 
(3,258
)
 
222,938

 
(4,837
)
Total AFS securities
$
480,390

 
$
(4,706
)
 
$
135,730

 
$
(4,751
)
 
$
616,120

 
$
(9,457
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
15,234

 
$
(193
)
 
$
2,361

 
$
(89
)
 
$
17,595

 
$
(282
)
Total HTM securities
$
15,234

 
$
(193
)
 
$
2,361

 
$
(89
)
 
$
17,595

 
$
(282
)
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
348,579

 
$
(5,780
)
 
$
29,496

 
$
(1,335
)
 
$
378,075

 
$
(7,115
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
163,412

 
(2,906
)
 
74,212

 
(2,515
)
 
237,624

 
(5,421
)
Total AFS securities
$
511,991

 
$
(8,686
)
 
$
103,708

 
$
(3,850
)
 
$
615,699

 
$
(12,536
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
42,805

 
$
(631
)
 
$
—

 
$
—

 
$
42,805

 
$
(631
)
Total HTM securities
$
42,805

 
$
(631
)
 
$
—

 
$
—

 
$
42,805

 
$
(631
)


At September 30, 2017 and December 31, 2016, the Company held 177 and 209 investment securities with a fair value of $633.7 million and $658.5 million that were in an unrealized loss position totaling $9.7 million and $13.2 million, respectively, that were considered temporary. Of these, MBS and CMOs with a fair value of $135.7 million and $103.7 million were in an unrealized loss position, and have been in an unrealized loss position for 12 months or more, totaling $4.8 million and $3.9 million at September 30, 2017 and December 31, 2016, respectively. 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 September 30, 2017 and December 31, 2016, gross unrealized losses on the Company's AFS and HTM securities were 1.5% and 2.0%, 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 September 30, 2017 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,
 
 
2017
 
2016
 
2017
 
2016
Proceeds from sales of securities
 
$
20,269

 
$
—

 
$
20,269

 
$
84

Gross realized gains
 
841

 
—

 
841

 
4

Gross realized losses
 
(14
)
 
—

 
(14
)
 
—


For the three and nine months ended September 30, 2017, the Company sold certain AFS securities with a total amortized cost of $19.4 million and recorded net gains on the sale of AFS securities of $827,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold.

For the nine months ended September 30, 2016, the Company sold certain AFS securities with a total amortized cost of $80,000 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 cost basis of securities sold is measured on a specific identification basis.

FHLBB and FRB Stock
As of September 30, 2017 and December 31, 2016, the Company's investment in FHLBB stock was $19.2 million and $17.8 million, respectively. As of September 30, 2017 and December 31, 2016, the Company's investment in FRB stock was $5.4 million.

Securities Pledged
At September 30, 2017 and December 31, 2016, securities with an amortized cost of $714.0 million and $597.3 million and estimated fair values of $707.2 million and $589.7 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, 2017, 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
$
1,581

 
$
1,585

Due after one year through five years
100,951

 
100,901

Due after five years through ten years
176,090

 
175,368

Due after ten years
525,953

 
518,656

 
$
804,575

 
$
796,510

HTM Securities
 
 
 
Due in one year or less
$
754

 
$
757

Due after one year through five years
4,737

 
4,798

Due after five years through ten years
7,011

 
7,121

Due after ten years
81,705

 
82,418

 
$
94,207

 
$
95,094