INVESTMENTS

AFS and HTM Investments

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



(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2020
AFS Investments (carried at fair value):
Obligations of states and political subdivisions	$	123,893	$	3,324	$	(337	)	$	126,880
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	472,508		15,618		(77		)	488,049
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	324,929		9,698		(12		)	334,615
Subordinated corporate bonds	10,546		116		(75		)	10,587
Total AFS investments	$	931,876	$	28,756	$	(501	)	$	960,131
HTM Investments (carried at amortized cost):
Obligations of states and political subdivisions	$	1,300	$	58	$	—		$	1,358
Total HTM investments	$	1,300	$	58	$	—		$	1,358
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

The net unrealized gain on AFS investments reported within AOCI at March 31, 2020, was $22.2 million, net of a deferred tax liability of $6.1 million. The net unrealized gain on AFS investments reported within AOCI at December 31, 2019, was $3.3 million, net of a deferred tax liability of $890,000.

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
March 31, 2020
AFS Investments:
Obligations of states and political subdivisions	168	$	20,029	$	(337	)	$	—	$	—		$	20,029	$	(337	)
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	144	7,626		(34		)	1,638		(43		)	9,264		(77		)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	86	5,180		(12		)	—		—			5,180		(12		)
Subordinated corporate bonds	8	4,925		(75		)	—		—			4,925		(75		)
Total AFS investments	406	$	37,760	$	(458	)	$	1,638	$	(43	)	$	39,398	$	(501	)
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	)

At March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, gross unrealized losses on the Company's AFS and HTM investments were 1% of their respective fair values.

At March 31, 2020, the Company had the intent and ability to retain its debt investments in an unrealized loss position until the decline in value has recovered.

Sale of AFS Investments:

For the three months ended March 31, 2020 and 2019, the Company did not sell any AFS investments.

AFS and HTM Investments Pledged:

At March 31, 2020 and December 31, 2019, AFS and HTM investments with an amortized cost of $712.4 million and $709.0 million and estimated fair values of $735.3 million and $712.4 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 the Company's AFS and HTM investments by contractual maturity at March 31, 2020, 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	76,517		78,367
Due after five years through ten years	215,515		223,272
Due after ten years	639,844		658,492
Total	$	931,876	$	960,131
HTM Investments
Due in one year or less	$	—	$	—
Due after one year through five years	511		532
Due after five years through ten years	789		826
Due after ten years	—		—
Total	$	1,300	$	1,358

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
March 31, 2020
Equity securities - bank stock (carried at fair value)	$	544	$	1,130	$	—	$	1,674
FHLBB (carried at cost)	8,008		—		—		8,008
FRB (carried at cost)	5,374		—		—		5,374
Total other investments	$	13,926	$	1,130	$	—	$	15,056
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

For the three months ended March 31, 2020 and 2019, the Company recognized an unrealized gain of $0 and $243,000, 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.

The Company did not record any OTTI on its FHLBB and FRB stock for the three months ended March 31, 2020 and 2019.