INVESTMENTS

AFS and HTM Investments

The following table summarizes the amortized costs and estimated fair values of AFS and HTM securities, as of the dates indicated:



(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
December 31, 2019
AFS Investments (carried at fair value):
Obligations of states and political subdivisions	$	115,632	$	2,779	$	(328	)	$	118,083
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	462,593		3,398		(2,605		)	463,386
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	325,200		3,183		(2,478		)	325,905
Subordinated corporate bonds	10,553		191		—			10,744
Total AFS investments	$	913,978	$	9,551	$	(5,411	)	$	918,118
HTM Investments (carried at amortized cost):
Obligations of states and political subdivisions	$	1,302	$	57	$	—		$	1,359
Total HTM investments	$	1,302	$	57	$	—		$	1,359
December 31, 2018
AFS Investments (carried at fair value):
Obligations of states and political subdivisions	$	94,430	$	216	$	(894	)	$	93,752
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	466,613		583		(13,524		)	453,672
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	351,958		1,007		(10,071		)	342,894
Subordinated corporate bonds	20,398		23		(47		)	20,374
Total AFS investments	$	933,399	$	1,829	$	(24,536	)	$	910,692
HTM Securities (carried at amortized cost):
Obligations of states and political subdivisions	$	1,307	$	8	$	(24	)	$	1,291
Total HTM investments	$	1,307	$	8	$	(24	)	$	1,291

Net unrealized gains on AFS investments reported within in AOCI at December 31, 2019, were $3.3 million, net of a deferred tax liability of $890,000. Net unrealized losses on AFS investments reported within AOCI at December 31, 2018, were $17.8 million, net of a deferred tax benefit of $4.9 million, respectively.

Impaired AFS and HTM Investments

Quarterly, management reviews the Company’s AFS and HTM investments 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 on AFS and HTM investments that were in a continuous loss position that was considered temporary, by length of time that an individual security in each category has been in a continuous loss position as of the dates indicated:



		Less Than 12 Months					12 Months or More					Total
(In thousands, except number of holdings)	Number of Holdings	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2019
AFS Investments:
Obligations of states and political subdivisions	11	$	30,459	$	(328	)	$	—	$	—		$	30,459	$	(328	)
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	59	162,964		(1,850		)	63,633		(755		)	226,597		(2,605		)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	35	66,549		(733		)	68,614		(1,745		)	135,163		(2,478		)
Total AFS investments	105	$	259,972	$	(2,911	)	$	132,247	$	(2,500	)	$	392,219	$	(5,411	)
December 31, 2018
AFS Investments:
Obligations of states and political subdivisions	114	$	36,218	$	(281	)	$	28,437	$	(613	)	$	64,655	$	(894	)
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	117	46,459		(252		)	364,430		(13,272		)	410,889		(13,524		)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	63	5,956		(40		)	227,461		(10,031		)	233,417		(10,071		)
Subordinated corporate bonds	6	11,378		(26		)	966		(21		)	12,344		(47		)
Total AFS investments	300	$	100,011	$	(599	)	$	621,294	$	(23,937	)	$	721,305	$	(24,536	)
HTM Investments:
Obligations of states and political subdivisions	2	$	509	$	(5	)	$	411	$	(19	)	$	920	$	(24	)
Total HTM investments	2	$	509	$	(5	)	$	411	$	(19	)	$	920	$	(24	)

At December 31, 2019 and 2018, unrealized losses within the AFS and HTM investment portfolios were reflective of current interest rates in excess of the yield received on debt investments and were not indicative of an overall change in credit quality or other factors. At December 31, 2019 and 2018, gross unrealized losses on the Company's AFS and HTM investments were 1% and 3%, respectively, of their respective fair values.

At December 31, 2019, the Company had the intent and ability to retain its debt investments that were in an unrealized loss position at December 31, 2019, until the decline in value has recovered.

Sale of AFS Investments

The following table details the Company’s sales of investments for the periods indicated below:



	For The Year Ended December 31,
(In thousands)	2019			2018			2017
Proceeds from sales of AFS investments⁽¹⁾	$	207,001		$	56,155		$	20,366
Gross realized gains	1,427			32			869
Gross realized losses	(1,532		)	(695		)	(14		)


(1)	The Company had not previously recorded any OTTI on these investments sold.

AFS and HTM Investments Pledged

At December 31, 2019 and 2018, AFS and HTM investments with an amortized cost of $709.0 million and $734.1 million, respectively, and estimated fair values of $712.4 million and $714.4 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 AFS and HTM investments by contractual maturity at December 31, 2019 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.



(In thousands)	Amortized Cost		Fair Value
AFS Investments
Due in one year or less	$	—	$	—
Due after one year through five years	76,027		76,341
Due after five years through ten years	207,757		208,866
Due after ten years	630,194		632,911
	$	913,978	$	918,118
HTM Investments
Due in one year or less	$	—	$	—
Due after one year through five years	512		532
Due after five years through ten years	790		827
Due after ten years	—		—
	$	1,302	$	1,359

Other Investments

The following table summarizes the cost and estimated fair values of the Company's investment in equity securities, FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:



(In thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value / Carrying Value
December 31, 2019
Equity securities - bank stock (carried at fair value)	$	544	$	1,130	$	—	$	1,674
FHLBB (carried at cost)	6,601		—		—		6,601
FRB (carried at cost)	5,374		—		—		5,374
Total other investments	$	12,519	$	1,130	$	—	$	13,649
December 31, 2018
Equity securities - bank stock (carried at fair value)	$	544	$	202	$	—	$	746
FHLBB (carried at cost)	8,559		—		—		8,559
FRB (carried at cost)	5,374		—		—		5,374
Total other investments	$	14,477	$	202	$	—	$	14,679

For the year ended December 31, 2019 and 2018, the Company recognized an unrealized gain (loss) of $928,000 and ($50,000), respectively, due to the change in fair value of its bank stock equity securities, which was presented within other income on the consolidated statements of income. For the year ended December 31, 2017, no unrealized gain or loss was recognized as these securities were classified as AFS prior to the adoption of ASU 2016-01 in 2018. Refer to Note 1 for further details.

The Company did not record any OTTI on its FHLBB and FRB stock for the year ended December 31, 2019 and 2018.