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SECURITIES | 9 Months Ended
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Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES The following tables summarize the amortized cost and estimated fair values of AFS and HTM securities, as of the dates indicated:
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |
AFS Securities: |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 7,233 |  |  | $ | 132 |  |  | $ | — |  |  | $ | 7,365 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 524,763 |  |  | 961 |  |  | (4,620 | ) |  | 521,104 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 267,096 |  |  | 131 |  |  | (4,837 | ) |  | 262,390 |
Subordinated corporate bonds | 5,483 |  |  | 168 |  |  | — |  |  | 5,651 |
Total AFS debt securities | 804,575 |  |  | 1,392 |  |  | (9,457 | ) |  | 796,510 |
Equity securities | 623 |  |  | 118 |  |  | — |  |  | 741 |
Total AFS securities | $ | 805,198 |  |  | $ | 1,510 |  |  | $ | (9,457 | ) |  | $ | 797,251 |
HTM Securities: |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 94,207 |  |  | $ | 1,169 |  |  | $ | (282 | ) |  | $ | 95,094 |
Total HTM securities | $ | 94,207 |  |  | $ | 1,169 |  |  | $ | (282 | ) |  | $ | 95,094 |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |
AFS Securities: |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 8,848 |  |  | $ | 153 |  |  | $ | — |  |  | $ | 9,001 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 485,222 |  |  | 2,515 |  |  | (7,115 | ) |  | 480,622 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 289,046 |  |  | 265 |  |  | (5,421 | ) |  | 283,890 |
Subordinated corporate bonds | 5,481 |  |  | 132 |  |  | — |  |  | 5,613 |
Total AFS debt securities | 788,597 |  |  | 3,065 |  |  | (12,536 | ) |  | 779,126 |
Equity securities | 632 |  |  | 109 |  |  | — |  |  | 741 |
Total AFS securities | $ | 789,229 |  |  | $ | 3,174 |  |  | $ | (12,536 | ) |  | $ | 779,867 |
HTM Securities: |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 94,609 |  |  | $ | 618 |  |  | $ | (631 | ) |  | $ | 94,596 |
Total HTM securities | $ | 94,609 |  |  | $ | 618 |  |  | $ | (631 | ) |  | $ | 94,596 |
Net unrealized losses on AFS securities at September 30, 2017 included in AOCI amounted to $5.2 million, net of a deferred tax benefit of $2.7 million. Net unrealized losses on AFS securities at December 31, 2016 included in AOCI amounted to $6.1 million, net of a deferred tax benefit of $3.3 million. During the first nine months of 2017, the Company purchased investment securities totaling $141.6 million, all of which were designated as AFS securities. During the first nine months of 2016, the Company purchased investment securities totaling $140.7 million. The Company designated $130.3 million as AFS securities and $10.4 million as HTM securities. Impaired Securities Management periodically reviews the Company’s investment portfolio 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 of investment securities that were in a continuous loss position at September 30, 2017 and December 31, 2016, by length of time that individual securities in each category have been in a continuous loss position:
| Less Than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS Securities: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | $ | 345,629 |  |  | $ | (3,127 | ) |  | $ | 47,553 |  |  | $ | (1,493 | ) |  | $ | 393,182 |  |  | $ | (4,620 | )
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 134,761 |  |  | (1,579 | ) |  | 88,177 |  |  | (3,258 | ) |  | 222,938 |  |  | (4,837 | )
Total AFS securities | $ | 480,390 |  |  | $ | (4,706 | ) |  | $ | 135,730 |  |  | $ | (4,751 | ) |  | $ | 616,120 |  |  | $ | (9,457 | )
HTM Securities: |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 15,234 |  |  | $ | (193 | ) |  | $ | 2,361 |  |  | $ | (89 | ) |  | $ | 17,595 |  |  | $ | (282 | )
Total HTM securities | $ | 15,234 |  |  | $ | (193 | ) |  | $ | 2,361 |  |  | $ | (89 | ) |  | $ | 17,595 |  |  | $ | (282 | )
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS Securities: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | $ | 348,579 |  |  | $ | (5,780 | ) |  | $ | 29,496 |  |  | $ | (1,335 | ) |  | $ | 378,075 |  |  | $ | (7,115 | )
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 163,412 |  |  | (2,906 | ) |  | 74,212 |  |  | (2,515 | ) |  | 237,624 |  |  | (5,421 | )
Total AFS securities | $ | 511,991 |  |  | $ | (8,686 | ) |  | $ | 103,708 |  |  | $ | (3,850 | ) |  | $ | 615,699 |  |  | $ | (12,536 | )
HTM Securities: |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 42,805 |  |  | $ | (631 | ) |  | $ | — |  |  | $ | — |  |  | $ | 42,805 |  |  | $ | (631 | )
Total HTM securities | $ | 42,805 |  |  | $ | (631 | ) |  | $ | — |  |  | $ | — |  |  | $ | 42,805 |  |  | $ | (631 | )
At September 30, 2017 and December 31, 2016, the Company held 177 and 209 investment securities with a fair value of $633.7 million and $658.5 million that were in an unrealized loss position totaling $9.7 million and $13.2 million, respectively, that were considered temporary. Of these, MBS and CMOs with a fair value of $135.7 million and $103.7 million were in an unrealized loss position, and have been in an unrealized loss position for 12 months or more, totaling $4.8 million and $3.9 million at September 30, 2017 and December 31, 2016, respectively. The unrealized loss was reflective of current interest rates in excess of the yield received on investments and is not indicative of an overall change in credit quality or other factors with the Company's investment portfolio. At September 30, 2017 and December 31, 2016, gross unrealized losses on the Company's AFS and HTM securities were 1.5% and 2.0%, respectively, of the respective investment securities fair value. The Company has the intent and ability to retain its investment securities in an unrealized loss position at September 30, 2017 until the decline in value has recovered. Sale of Securities The following table details the Company's sales of AFS securities for the period indicated below:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2017 |  | 2016 |  | 2017 |  | 2016
Proceeds from sales of securities |  | $ | 20,269 |  |  | $ | — |  |  | $ | 20,269 |  |  | $ | 84 |
Gross realized gains |  | 841 |  |  | — |  |  | 841 |  |  | 4 |
Gross realized losses |  | (14 | ) |  | — |  |  | (14 | ) |  | — |
For the three and nine months ended September 30, 2017, the Company sold certain AFS securities with a total amortized cost of $19.4 million and recorded net gains on the sale of AFS securities of $827,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. For the nine months ended September 30, 2016, the Company sold certain AFS securities with a total amortized cost of $80,000 and recorded net gains on the sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. The cost basis of securities sold is measured on a specific identification basis. FHLBB and FRB Stock As of September 30, 2017 and December 31, 2016, the Company's investment in FHLBB stock was $19.2 million and $17.8 million, respectively. As of September 30, 2017 and December 31, 2016, the Company's investment in FRB stock was $5.4 million. Securities Pledged At September 30, 2017 and December 31, 2016, securities with an amortized cost of $714.0 million and $597.3 million and estimated fair values of $707.2 million and $589.7 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 debt securities by contractual maturity at September 30, 2017, 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.
| Amortized Cost |  | Fair Value
AFS Securities |  |  |
Due in one year or less | $ | 1,581 |  |  | $ | 1,585 |
Due after one year through five years | 100,951 |  |  | 100,901 |
Due after five years through ten years | 176,090 |  |  | 175,368 |
Due after ten years | 525,953 |  |  | 518,656 |
| $ | 804,575 |  |  | $ | 796,510 |
HTM Securities |  |  |
Due in one year or less | $ | 754 |  |  | $ | 757 |
Due after one year through five years | 4,737 |  |  | 4,798 |
Due after five years through ten years | 7,011 |  |  | 7,121 |
Due after ten years | 81,705 |  |  | 82,418 |
| $ | 94,207 |  |  | $ | 95,094 |

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