SECURITIES

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

The Company adopted ASU-2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" in the first quarter of 2018. Beginning in 2018, all changes in the fair value of marketable equity securities, including other-than-temporary impairment, are immediately recognized in earnings.

The following is a summary of securities available for sale (“AFS”) , held to maturity (“HTM”), and marketable equity securities:



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2019
Securities available for sale
Debt securities:
Municipal bonds and obligations	$	104,325	$	5,813	$	—		$	110,138
Agency collateralized mortgage obligations	742,550		6,431		(169		)	748,812
Agency mortgage-backed securities	146,589		1,515		(360		)	147,744
Agency commercial mortgage-backed securities	148,066		176		(1,146		)	147,096
Corporate bonds	115,395		1,788		(607		)	116,576
Other bonds and obligations	40,414		780		(5		)	41,189
Total securities available for sale	1,297,339		16,503		(2,287		)	1,311,555
Securities held to maturity
Municipal bonds and obligations	252,936		13,095		(5		)	266,026
Agency collateralized mortgage obligations	69,667		2,870		(50		)	72,487
Agency mortgage-backed securities	6,271		29		—			6,300
Agency commercial mortgage-backed securities	10,353		51		—			10,404
Tax advantaged economic development bonds	18,456		218		(910		)	17,764
Other bonds and obligations	296		—		—			296
Total securities held to maturity	357,979		16,263		(965		)	373,277

Marketable equity securities	37,138		5,147		(729		)	41,556
Total	$	1,692,456	$	37,913	$	(3,981	)	$	1,726,388

December 31, 2018
Securities available for sale
Debt securities:
Municipal bonds and obligations	$	109,648	$	2,272	$	(713	)	$	111,207
Agency collateralized mortgage obligations	944,946		1,130		(15,192		)	930,884
Agency mortgage-backed securities	175,406		36		(5,121		)	170,321
Agency commercial mortgage-backed securities	62,200		—		(3,275		)	58,925
Corporate bonds	120,718		593		(1,355		)	119,956
Other bonds and obligations	8,355		34		(35		)	8,354
Total securities available for sale	1,421,273		4,065		(25,691		)	1,399,647
Securities held to maturity
Municipal bonds and obligations	264,524		3,569		(3,601		)	264,492
Agency collateralized mortgage-backed securities	71,637		533		(778		)	71,392
Agency mortgage-backed securities	7,219		—		(297		)	6,922
Agency commercial mortgage-backed securities	10,417		—		(289		)	10,128
Tax advantaged economic development bonds	19,718		22		(1,698		)	18,042
Other bonds and obligations	248		—		—			248
Total securities held to maturity	373,763		4,124		(6,663		)	371,224

Marketable equity securities	55,471		4,370		(3,203		)	56,638
Total	$	1,850,507	$	12,559	$	(35,557	)	$	1,827,509

At year-end 2019 and 2018, accumulated net unrealized gains/(losses) on AFS securities included in accumulated other comprehensive income/(loss) were $14.2 million and $(21.6) million, respectively. At year-end 2019 and 2018, accumulated net unrealized gains on HTM securities included in accumulated other comprehensive income/(loss) were $5.0 million and $6.4 million respectively. The year-end 2019 and 2018 related income tax (liability)/benefit of $(5.1) million and $3.8 million, respectively, was also included in accumulated other comprehensive income/(loss).

The amortized cost and estimated fair value of AFS and HTM securities, segregated by contractual maturity at year-end 2019 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities and collateralized mortgage obligations are shown in total, as their maturities are highly variable.



	Available for sale				Held to maturity
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1 year	$	34,900	$	34,996	$	1,849	$	1,849
Over 1 year to 5 years	20,372		20,292		14,269		14,403
Over 5 years to 10 years	68,139		69,673		12,541		12,711
Over 10 years	136,723		142,942		243,029		255,123
Total bonds and obligations	260,134		267,903		271,688		284,086
Mortgage-backed securities	1,037,205		1,043,652		86,291		89,191
Total	$	1,297,339	$	1,311,555	$	357,979	$	373,277

At year-end 2019 and 2018, the Company had pledged securities as collateral for certain municipal deposits and for interest rate swaps with certain counterparties. The total amortized cost and fair values of these pledged securities follows. Additionally, there is a blanket lien on certain securities to collateralize borrowings from the FHLBB, as discussed further in Note 13 - Borrowed Funds.



	2019				2018
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities pledged to swap counterparties	$	25,728	$	25,828	$	13,093	$	12,819
Securities pledged for municipal deposits	168,740		175,719		187,636		188,423
Total	$	194,468	$	201,547	$	200,729	$	201,242

Purchases of AFS securities totaled $120 million in 2019 and $258 million in 2018. Proceeds from the sale of AFS securities totaled $136 million in 2019 and $0.5 million in 2018. The amounts for the sale of AFS securities were reclassified out of accumulated other comprehensive income and into earnings. The components of net recognized gains and losses on the sale of AFS securities and the fair value change of marketable equities are as follows:



(In thousands)	2019			2018			2017
Gross recognized gains	$	7,492		$	3,256		$	13,877
Gross recognized losses	(3,103		)	(6,975		)	(1,279		)
Net recognized gains/(losses)	$	4,389		$	(3,719	)	$	12,598

Debt securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:



	Less Than Twelve Months				Over Twelve Months				Total
(In thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
December 31, 2019
Securities available for sale
Debt securities:
Agency collateralized mortgage obligations	$	127	$	52,623	$	42	$	6,267	$	169	$	58,890
Agency mortgage-backed securities	59		10,640		301		23,404		360		34,044
Agency commercial mortgage-back securities	1,097		116,324		49		11,250		1,146		127,574
Corporate bonds	—		—		607		42,823		607		42,823
Other bonds and obligations	4		1,239		1		29		5		1,268
Total securities available for sale	$	1,287	$	180,826	$	1,000	$	83,773	$	2,287	$	264,599
Securities held to maturity
Municipal bonds and obligations	5		800		—		—		5		800
Agency collateralized mortgage obligations	50		9,778		—		—		50		9,778
Tax advantaged economic development bonds	—		—		910		6,925		910		6,925
Total securities held to maturity	55		10,578		910		6,925		965		17,503
Total	$	1,342	$	191,404	$	1,910	$	90,698	$	3,252	$	282,102

December 31, 2018
Securities available for sale
Debt securities:
Municipal bonds and obligations	$	55	$	3,186	$	658	$	11,787	$	713	$	14,973
Agency collateralized mortgage obligations	76		39,114		15,116		755,528		15,192		794,642
Agency mortgage-backed securities	53		5,500		5,068		162,439		5,121		167,939
Agency commercial mortgage-backed securities	44		1,503		3,231		57,422		3,275		58,925
Corporate bonds	1,348		81,502		7		2,561		1,355		84,063
Other bonds and obligations	—		—		35		3,030		35		3,030
Total securities available for sale	$	1,576	$	130,805	$	24,115	$	992,767	$	25,691	$	1,123,572
Securities held to maturity
Municipal bonds and obligations	127		17,596		3,474		103,759		3,601		121,355
Agency collateralized mortgage obligations	—		—		778		43,138		778		43,138
Agency mortgage-backed securities	—		—		297		6,922		297		6,922
Agency commercial mortgage-back securities	—		—		289		10,128		289		10,128
Tax advantaged economic development bonds	65		8,078		1,633		6,512		1,698		14,590
Total securities held to maturity	192		25,674		6,471		170,459		6,663		196,133
Total	$	1,768	$	156,479	$	30,586	$	1,163,226	$	32,354	$	1,319,705

Debt Securities

The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of December 31, 2019, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions.

The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios did not maintain other-than-temporary impairment ("OTTI") at year-end 2019:

AFS collateralized mortgage obligations

At year-end 2019, 28 out of the total 245 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.3% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), and Government National Mortgage Association ("GNMA") guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during 2019. All securities are performing.

AFS commercial and residential mortgage-backed securities

At year-end 2019, 39 out of the total 107 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 0.9% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during 2019. All securities are performing.

AFS corporate bonds

At year-end 2019, 6 out of the total 23 securities in the Company’s portfolio of AFS corporate bonds were in unrealized loss positions. The aggregate unrealized loss represents 1.4% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.

AFS other bonds and obligations

At year-end 2019, 3 out of the total 8 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.4% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during 2019. All securities are performing.

HTM Municipal bonds and obligations

At year-end 2019, 1 out of the total 210 securities in the Company’s portfolio of HTM municipal bonds and obligations were in an unrealized loss position. Aggregate unrealized losses represented 0.6% of the amortized cost of the security in an unrealized loss position. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels that the bonds in this portfolio carry minimal risk of default and that the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during 2019. All securities are performing.

HTM collateralized mortgage obligations

At year-end 2019, 1 out of the total 9 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in an unrealized loss position. Aggregate unrealized losses represented 0.5% of the amortized cost of the security in an unrealized loss position. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during 2019. All securities are performing.

HTM tax-advantaged economic development bonds

At year-end 2019, 1 out of the total 5 securities in the Company’s portfolio of tax advantaged economic development bonds were in an unrealized loss position. Aggregate unrealized losses represented 11.6% of the amortized cost of the security in an unrealized loss position. The above mentioned tax-advantaged economic bond is a Substandard rated asset. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing.