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INVESTMENTS | 9 Months Ended
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Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS Trading Securities Trading securities are reported on the Company's consolidated statements of condition at fair value. As of September 30, 2021 and December 31, 2020, the fair value of the Company's trading securities were $4.3 million and $4.2 million, respectively. These securities are held in a rabbi trust account and invested in mutual funds. The trading securities will be used for future payments associated with the Company's Executive Deferred Compensation Plan and Director Deferred Compensation Plan. AFS Debt Securities AFS debt securities are reported on the Company's consolidated statements of condition at fair value. The following table summarizes the amortized cost, estimated fair value, and unrealized gains (losses) of AFS debt securities, as of the dates indicated:
(In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
September 30, 2021 |  |  |  |  |  |  |  |
Obligations of U.S. government-sponsored enterprises |  | $ | 8,585 |  |  | $ | 1 |  |  | $ | (134) |  |  | $ | 8,452 |
Obligations of states and political subdivisions |  | 112,688 |  |  | 5,267 |  |  | (202) |  |  | 117,753 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises |  | 915,317 |  |  | 11,286 |  |  | (6,611) |  |  | 919,992 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises |  | 391,128 |  |  | 4,595 |  |  | (2,896) |  |  | 392,827 |
Subordinated corporate bonds |  | 16,082 |  |  | 205 |  |  | (101) |  |  | 16,186 |
Total AFS debt securities |  | $ | 1,443,800 |  |  | $ | 21,354 |  |  | $ | (9,944) |  |  | $ | 1,455,210 |
December 31, 2020 |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 119,608 |  |  | $ | 7,627 |  |  | $ | (115) |  |  | $ | 127,120 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises |  | 547,396 |  |  | 19,796 |  |  | (574) |  |  | 566,618 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises |  | 399,937 |  |  | 10,652 |  |  | (135) |  |  | 410,454 |
Subordinated corporate bonds |  | 11,533 |  |  | 186 |  |  | (98) |  |  | 11,621 |
Total AFS debt securities |  | $ | 1,078,474 |  |  | $ | 38,261 |  |  | $ | (922) |  |  | $ | 1,115,813 |
As of September 30, 2021 and December 31, 2020, there was no allowance carried on AFS debt securities in accordance with ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The net unrealized gains on AFS debt securities reported within AOCI at September 30, 2021, were $9.0 million, net of a deferred tax liability of $2.5 million. The net unrealized gains on AFS debt securities reported within AOCI at December 31, 2020, were $29.3 million, net of a deferred tax liability of $8.0 million. For the three and nine months ended September 30, 2021 and 2020, the Company did not sell any AFS debt securities. The following table presents the Company's AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, segregated by the length of time the securities have 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
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government-sponsored enterprises |  | 3 |  |  | $ | 7,451 |  |  | $ | (134) |  |  | $ | — |  |  | $ | — |  |  | $ | 7,451 |  |  | $ | (134) |
Obligations of states and political subdivisions |  | 3 |  |  | 2,554 |  |  | (6) |  |  | 2,322 |  |  | (196) |  |  | 4,876 |  |  | (202) |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises |  | 83 |  |  | 528,776 |  |  | (6,286) |  |  | 14,565 |  |  | (325) |  |  | $ | 543,341 |  |  | (6,611) |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises |  | 44 |  |  | 180,559 |  |  | (2,664) |  |  | 13,241 |  |  | (232) |  |  | 193,800 |  |  | (2,896) |
Subordinated corporate bonds |  | 5 |  |  | 8,471 |  |  | (101) |  |  | — |  |  | — |  |  | 8,471 |  |  | (101) |
Total AFS debt securities |  | 138 |  |  | $ | 727,811 |  |  | $ | (9,191) |  |  | $ | 30,128 |  |  | $ | (753) |  |  | $ | 757,939 |  |  | $ | (9,944) |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | 1 |  |  | $ | 2,404 |  |  | $ | (115) |  |  | $ | — |  |  | $ | — |  |  | $ | 2,404 |  |  | $ | (115) |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises |  | 15 |  |  | 61,222 |  |  | (568) |  |  | 980 |  |  | (6) |  |  | 62,202 |  |  | (574) |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises |  | 9 |  |  | 39,107 |  |  | (135) |  |  | — |  |  | — |  |  | 39,107 |  |  | (135) |
Subordinated corporate bonds |  | 5 |  |  | 4,902 |  |  | (98) |  |  | — |  |  | — |  |  | 4,902 |  |  | (98) |
Total AFS debt securities |  | 30 |  |  | $ | 107,635 |  |  | $ | (916) |  |  | $ | 980 |  |  | $ | (6) |  |  | $ | 108,615 |  |  | $ | (922) |
For the three and nine months ended September 30, 2021 and 2020, the unrealized losses on Company's AFS debt securities have not been recognized within income because management does not intend to sell and it is not more-likely-than-not it will be required to sell any of the AFS debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and not reflective of credit events. The issuers continue to make timely principal and interest payments on the bonds. At September 30, 2021 and December 31, 2020, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $3.5 million and $3.1 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date. The amortized cost and estimated fair values of the Company's AFS debt securities by contractual maturity at September 30, 2021, 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. Mortgage-related securities are shown in total, as their maturities are highly variable.
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 3,726 |  |  | $ | 3,773 |
Due after one year through five years |  | 5,665 |  |  | 6,063 |
Due after five years through ten years |  | 78,395 |  |  | 81,078 |
Due after ten years |  | 49,569 |  |  | 51,477 |
Subtotal |  | 137,355 |  |  | 142,391 |
Mortgage-related securities |  | 1,306,445 |  |  | 1,312,819 |
Total |  | $ | 1,443,800 |  |  | $ | 1,455,210 |
HTM Debt Securities HTM debt securities are reported on the Company's consolidated statements of condition at amortized cost. The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of HTM debt securities as of the dates indicated:
(In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
September 30, 2021 |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 1,293 |  |  | $ | 97 |  |  | $ | — |  |  | $ | 1,390 |
Total HTM debt securities |  | $ | 1,293 |  |  | $ | 97 |  |  | $ | — |  |  | $ | 1,390 |
December 31, 2020 |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 1,297 |  |  | $ | 114 |  |  | $ | — |  |  | $ | 1,411 |
Total HTM debt securities |  | $ | 1,297 |  |  | $ | 114 |  |  | $ | — |  |  | $ | 1,411 |
As of September 30, 2021 and December 31, 2020, the Company’s HTM debt securities portfolio was made up of three investment grade municipal debt securities, of which two securities also carried credit enhancements. The HTM debt securities portfolio was comprised solely of high credit quality (rated AA or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. As a result, the Company determined that the expected credit loss on its HTM portfolio was immaterial, and therefore, an allowance was not carried on its HTM debt securities at September 30, 2021 or December 31, 2020. As of September 30, 2021 and December 31, 2020, none of the Company's HTM debt securities were past due or on non-accrual status. For the three and nine months ended September 30, 2021 and 2020, the Company did not recognize any interest income on non-accrual HTM debt securities. At September 30, 2021 and December 31, 2020, total accrued interest receivable on HTM debt securities, which has been excluded from reported amortized cost basis on HTM debt securities, was $8,000 and $10,000, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date. The amortized cost and estimated fair values of HTM debt securities by contractual maturity at September 30, 2021 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
Due in one year or less |  | $ | — |  |  | $ | — |
Due after one year through five years |  | 868 |  |  | 927 |
Due after five years through ten years |  | 425 |  |  | 463 |
Due after ten years |  | — |  |  | — |
Total |  | $ | 1,293 |  |  | $ | 1,390 |
AFS and HTM Debt Securities Pledged At September 30, 2021 and December 31, 2020, AFS and HTM debt securities with an amortized cost of $720.4 million and $485.0 million and estimated fair values of $728.9 million and $507.1 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. Other Investments The Company's FHLBB and FRB common stock are reported at cost within other investments on the consolidated statements of condition. The Company evaluates these investments for impairment based on the ultimate recoverability of the par value. The Company did not record any impairment on its FHLBB and FRB stock for the three and nine months ended September 30, 2021 and 2020. The following table summarizes the Company's investment in FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:
(In thousands) |  | September 30, 2021 |  | December 31, 2020
FHLBB |  | $ | 4,906 |  |  | $ | 6,167 |
FRB |  | 5,374 |  |  | 5,374 |
Total other investments |  | $ | 10,280 |  |  | $ | 11,541 |

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