Securities Available For Sale

3 Months Ended

Mar. 31, 2012

Securities Available For Sale and Investment Securities Held To Maturity [Abstract]

Securities Available For Sale

Note 4. Securities Available-for-Sale

	March 31, 2012								December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	( In thousands)
U.S. Treasury	$	1,999	$	9	$	—	$	2,008	$	1,999	$	13	$	—	$	2,012
U.S. Government Sponsored Enterprises		116,957		165		21		117,101		174,657		311		11		174,957
Small Business Administration		8,430		94		—		8,524		8,714		87		—		8,801
U.S. Government Agency and Sponsored Enterprises Mortgage Backed Securities		1,121,934		17,909		781		1,139,062		1, 020,752		16,262		1,176		1,035,838
Privately Issued Residential Mortgage Backed Securities		3,392		—		167		3,225		3,509		—		311		3,198
Obligations Issued by States and Political Subdivisions		30,802		76		958		29,920		21,515		84		957		20,642
Other Debt Securities		13,258		165		44		13,379		13,293		—		683		12,610
Equity Securities		510		110		—		620		533		85		—		618
Total	$	1,297,282	$	18,528	$	1,971	$	1,313,839	$	1,244,972	$	16,842	$	3,138	$	1,258,676

Included in U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $476,920,000 and $488,690,000 at March 31, 2012 and December 31, 2011, respectively. Also included in securities available-for-sale are securities pledged for borrowing at the Federal Home Loan Bank of Boston amounting to $265,267,000 and $246,036,000 at March 31, 2012 and December 31, 2011, respectively. The Company realized gross gains of $148,000 from the proceeds of $72,198,000 from the sales of available-for-sale securities for the three months ended March 31, 2012. The Company realized gross gains of $164,000 from the proceeds of $12,642,000 from the sales of available-for-sale securities for the three months ended March 31, 2011.

Debt securities of Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities available-for-sale at March 31, 2012.

	Amortized Cost		Fair Value
	( In thousands)
Within one year	$	83,590	$	84,599
After one but within five years		963,384		977,449
After five but within ten years		233,396		235,375
More than 10 years		14,902		14,339
Non-maturing		2,010		2,077
Total	$	1,297,282	$	1,313,839

The weighted average remaining life of investment securities available-for-sale at March 31, 2012 was 3.9 years. Included in the weighted average remaining life calculation at March 31, 2012 was $106,957,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. These call dates were not utilized in computing the weighted average remaining life. The contractual maturities, which were used in the table above, of mortgage-backed securities will differ from the actual maturities, due to the ability of the issuers to prepay underlying obligations.

As of March 31, 2012 and December 31, 2011, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not likely that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade. The change in the unrealized losses on the state and municipal securities and the nonagency mortgage-backed securities was primarily caused by changes in credit spreads and liquidity issues in the marketplace.

The unrealized loss on U.S. Government Sponsored Enterprises and U.S. Government Sponsored Enterprises Mortgage Backed Securities related primarily to interest rates and not credit quality and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The change in the unrealized losses on the state and municipal securities and the nonagency mortgage-backed securities were primarily caused by changes in credit spreads and liquidity issues in the marketplace.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. In the case of marketable equity securities, the severity of the unrealized loss, the length of time the unrealized loss has existed, and the issuer’s financial performance are considered.

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at March 31, 2012. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 65 and 6 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 419 holdings at March 31, 2012.

	March 31, 2012
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Temporarily Impaired Investments
U.S. Government Sponsored Enterprises	$	19,976	$	21	$	—	$	—	$	19,976	$	21
U.S. Government Agency and Sponsored Enterprises Mortgage Backed Securities		368,548		781		—		—		368,548		781
Privately Issued Residential Mortgage Backed Securities		—		—		3,225		167		3,225		167
Obligations Issued by States and Political Subdivisions		—		—		3,725		958		3,725		958
Other Debt Securities		5,538		1		1,457		43		6,995		44
Total temporarily impaired securities		394,062	$	803	$	8,407	$	1,168	$	402,469	$	1,971

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2011. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 60 and 6 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 393 holdings at December 31, 2011.

	December 31, 2011
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Temporarily Impaired Investments
U.S. Government Sponsored Enterprises	$	14,989	$	11	$	—	$	—	$	14,989	$	11
U.S. Government Agency and Sponsored Enterprises Mortgage Backed Securities		331,469		1,176		—		—		331,469		1,176
Privately Issued Residential Mortgage Backed Securities		—		—		3,198		311		3,198		311
Obligations Issued by States and Political Subdivisions		—		—		3,725		957		3,725		957
Other Debt Securities		10,542		652		1,468		31		12,010		683
Equity Securities		—		—		—		—		—		—
Total temporarily impaired securities	$	357,000	$	1,839	$	8,391	$	1,299	$	365,391	$	3,138