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INVESTMENTS
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS 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
June 30, 2020
 
 

 
 

 
 

 
 

AFS Investments (carried at fair value):
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
 
$
121,347

 
$
5,973

 
$
(193
)
 
$
127,127

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
 
516,580

 
19,687

 
(42
)
 
536,225

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
 
361,860

 
11,781

 
(109
)
 
373,532

Subordinated corporate bonds
 
10,538

 
285

 
(44
)
 
10,779

Total AFS investments
 
$
1,010,325

 
$
37,726

 
$
(388
)
 
$
1,047,663

HTM Investments (carried at amortized cost):
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
 
$
1,299

 
$
89

 
$
—

 
$
1,388

Total HTM investments
 
$
1,299

 
$
89

 
$
—

 
$
1,388

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 June 30, 2020, was $29.3 million, net of a deferred tax liability of $8.0 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
June 30, 2020
 
 
 
 

 
 

 
 

 
 

 
 

 
 

AFS Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
 
4

 
$
8,249

 
$
(193
)
 
$
—

 
$
—

 
$
8,249

 
$
(193
)
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
 
8

 
16,635

 
(27
)
 
1,602

 
(15
)
 
18,237

 
(42
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
 
5

 
22,156

 
(109
)
 
—

 
—

 
22,156

 
(109
)
Subordinated corporate bonds
 
2

 
1,956

 
(44
)
 
—

 
—

 
1,956

 
(44
)
Total AFS investments
 
19

 
$
48,996

 
$
(373
)
 
$
1,602

 
$
(15
)
 
$
50,598

 
$
(388
)
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 June 30, 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 June 30, 2020 and December 31, 2019, gross unrealized losses on the Company's AFS and HTM investments were 1% of their respective fair values.

At June 30, 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:
The following table details the Company's sales of AFS investments for the periods indicated below:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(In thousands)
 
2020
 
2019
 
2020
 
2019
Proceeds from sales of investments(1)
 
$
—

 
$
45,826

 
$
—

 
$
45,826

Gross realized gains
 
—

 
371

 
—

 
371

Gross realized losses
 
—

 
(344
)
 
—

 
(344
)
(1) The Company had not previously recorded any OTTI on these investments sold.

AFS and HTM Investments Pledged:
At June 30, 2020 and December 31, 2019, AFS and HTM investments with an amortized cost of $624.9 million and $709.0 million and estimated fair values of $650.2 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 June 30, 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
 
$
4,439

 
$
4,487

Due after one year through five years
 
64,370

 
66,655

Due after five years through ten years
 
225,186

 
238,559

Due after ten years
 
716,330

 
737,962

Total
 
$
1,010,325

 
$
1,047,663

HTM Investments
 
 
 
 
Due in one year or less
 
$
—

 
$
—

Due after one year through five years
 
511

 
542

Due after five years through ten years
 
788

 
846

Due after ten years
 
—

 
—

Total
 
$
1,299

 
$
1,388

 

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
June 30, 2020
 
 

 
 

 
 

 
 

Equity securities - bank stock (carried at fair value)
 
$
544

 
$
1,130

 
$
—

 
$
1,674

FHLBB (carried at cost)
 
8,079

 
—

 
—

 
8,079

FRB (carried at cost)
 
5,374

 
—

 
—

 
5,374

Total other investments
 
$
13,997

 
$
1,130

 
$
—

 
$
15,127

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 June 30, 2020 and 2019, the Company recognized an unrealized loss of $0 and $159,000, 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 six months ended June 30, 2020 and 2019, the Company recognized an unrealized gain of $0 and $84,000, 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 and six months ended June 30, 2020 and 2019.