CAMDEN NATIONAL CORP [CAC] Filings

10-Q 1 cac-20240630.htm 10-Q cac-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-28190

CAMDEN NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)


Maine			01-0413282
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification No.)

2 ELM STREET	CAMDEN	ME	04843
(Address of principal executive offices)			(Zip Code)

Registrant's telephone number, including area code: (207) 236-8821

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	CAC	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date:

Outstanding at July 31, 2024: Common stock (no par value) 14,574,519 shares.

CAMDEN NATIONAL CORPORATION

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2024

TABLE OF CONTENTS OF INFORMATION REQUIRED IN REPORT


		PAGE
PART I. FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS

	Consolidated Statements of Condition (unaudited) - June 30, 2024 and December 31, 2023	3

	Consolidated Statements of Income (unaudited) - Three and Six Months Ended June 30, 2024 and 2023	4

	Consolidated Statements of Comprehensive Income (Loss) (unaudited) - Three and Six Months Ended June 30, 2024 and 2023	5

	Consolidated Statements of Changes in Shareholders’ Equity (unaudited) - Three and Six Months Ended June 30, 2024 and 2023	6

	Consolidated Statements of Cash Flows (unaudited) - Six Months Ended June 30, 2024 and 2023	7

	Notes to the Unaudited Consolidated Financial Statements	8

ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	42

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	72

ITEM 4.	CONTROLS AND PROCEDURES	73

PART II. OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	74

ITEM 1A.	RISK FACTORS	74

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	74

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	74

ITEM 4.	MINE SAFETY DISCLOSURES	74

ITEM 5.	OTHER INFORMATION	74

ITEM 6.	EXHIBITS	75

SIGNATURES		76

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CONDITION

(unaudited)


(In thousands, except number of shares)	June 30, 2024		December 31, 2023
ASSETS
Cash and due from banks	$	78,672	$	77,649
Interest-bearing deposits in other banks (including restricted cash)	26,888		22,155
Total cash, cash equivalents and restricted cash	105,560		99,804
Investments:
Trading securities	4,959		4,647
Available-for-sale securities, at fair value (amortized cost of $663,503 and $702,937, respectively)	579,534		625,808
Held-to-maturity securities, at amortized cost (fair value of $485,820 and $510,595, respectively)	533,600		544,931
Other investments	17,105		15,394
Total investments	1,135,198		1,190,780
Loans held for sale, at fair value (book value of $14,162 and $10,152, respectively)	14,321		10,320
Loans	4,139,361		4,098,094
Less: allowance for credit losses on loans	(35,412)		(36,935)
Net loans	4,103,949		4,061,159
Goodwill	94,697		94,697
Core deposit intangible assets	693		971
Bank-owned life insurance	102,878		101,501
Premises and equipment, net	34,958		35,049
Deferred tax assets	41,798		42,226
Other assets	90,328		77,999
Total assets	$	5,724,380	$	5,714,506
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Non-interest checking	$	921,605	$	967,750
Interest checking	1,465,560		1,553,787
Savings and money market	1,399,464		1,364,401
Certificates of deposit	576,563		609,503
Brokered deposits	150,828		101,919
Total deposits	4,514,020		4,597,360
Short-term borrowings	552,606		485,607

Junior subordinated debentures	44,331		44,331
Accrued interest and other liabilities	105,137		92,144
Total liabilities	5,216,094		5,219,442
Commitments and Contingencies (Note 7)
Shareholders’ Equity
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 14,569,262 and 14,565,952 on June 30, 2024 and December 31, 2023, respectively	115,543		115,602
Retained earnings	493,974		481,014




Accumulated other comprehensive loss	(101,231)		(101,552)
Total shareholders’ equity	508,286		495,064
Total liabilities and shareholders’ equity	$	5,724,380	$	5,714,506

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except number of shares and per share data)	2024		2023		2024		2023
Interest Income
Interest and fees on loans	$	53,422	$	48,645	$	105,131	$	93,977
Taxable interest on investments	6,807		5,852		13,834		11,815
Nontaxable interest on investments	461		762		926		1,525
Dividend income	521		267		833		486
Other interest income	951		529		1,621		977
Total interest income	62,162		56,055		122,345		108,780
Interest Expense
Interest on deposits	24,169		19,245		47,347		35,077
Interest on borrowings	5,285		3,587		10,483		5,672
Interest on junior subordinated debentures	524		533		1,058		1,061
Total interest expense	29,978		23,365		58,888		41,810
Net interest income	32,184		32,690		63,457		66,970
Provision (credit) for credit losses	650		103		(1,452)		2,105
Net interest income after provision (credit) for credit losses	31,534		32,587		64,909		64,865
Non-Interest Income
Debit card income	3,069		3,079		5,935		6,017
Service charges on deposit accounts	2,113		1,935		4,140		3,697
Income from fiduciary services	1,870		1,775		3,619		3,375
Brokerage and insurance commissions	1,441		1,152		2,680		2,245
Bank-owned life insurance	694		613		1,377		1,205
Mortgage banking income, net	516		590		1,324		1,306


Other income	942		966		1,892		2,131
Total non-interest income	10,645		10,110		20,967		19,976
Non-Interest Expense
Salaries and employee benefits	15,601		15,288		31,555		29,861
Furniture, equipment and data processing	3,497		3,179		7,126		6,390
Net occupancy costs	1,981		1,852		4,051		3,931
Debit card expense	1,311		1,262		2,575		2,463
Consulting and professional fees	1,149		1,375		2,009		2,430
Regulatory assessments	813		868		1,670		1,713
Amortization of core deposit intangible assets	139		148		278		296
Other real estate owned and collection costs, net	47		4		57		9
Other expenses	2,772		3,167		5,351		6,215
Total non-interest expense	27,310		27,143		54,672		53,308
Income before income tax expense	14,869		15,554		31,204		31,533
Income Tax Expense	2,876		3,165		5,939		6,417
Net Income	$	11,993	$	12,389	$	25,265	$	25,116
Per Share Data
Basic earnings per share	$	0.82	$	0.85	$	1.73	$	1.72
Diluted earnings per share	$	0.81	$	0.85	$	1.72	$	1.72
Cash dividends declared per share	$	0.42	$	0.42	$	0.84	$	0.84
Weighted average number of common shares outstanding	14,591,189		14,564,282		14,581,758		14,568,680
Diluted weighted average number of common shares outstanding	14,647,047		14,604,316		14,639,734		14,612,372

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2024		2023		2024		2023
Net Income	$	11,993	$	12,389	$	25,265	$	25,116
Other comprehensive income (loss):
Net change in fair value of debt securities, net of tax	1,049		(5,384)		(2,899)		3,710
Net change in fair value of cash flow hedging derivatives, net of tax	740		2,927		3,231		322
Net change in other comprehensive income for supplemental executive retirement plan and other postretirement benefit plan, net of tax	(5)		(6)		(11)		(11)
Other comprehensive income (loss)	1,784		(2,463)		321		4,021
Comprehensive Income	$	13,777	$	9,926	$	25,586	$	29,137

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(unaudited)


	Three Months Ended
	Common Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
(In thousands, except number of shares and per share data)	Shares Outstanding	Amount
Balance at March 31, 2023	14,587,906	$	115,590	$	468,755	$	(119,471)	$	464,874
Net income	—	—		12,389		—		12,389
Other comprehensive loss, net of tax	—	—		—		(2,463)		(2,463)
Stock-based compensation expense	—	948		—		—		948
Issuance of vested share awards, net of repurchase for tax withholdings	32,564	(236)		—		—		(236)
Common stock repurchased	(65,692)	(2,000)		—		—		(2,000)
Cash dividends declared ($0.42 per share)	—	—		(6,136)		—		(6,136)
Balance at June 30, 2023	14,554,778	$	114,302	$	475,008	$	(121,934)	$	467,376
Balance at March 31, 2024	14,593,830	$	116,449	$	488,143	$	(103,015)	$	501,577
Net income	—	—		11,993		—		11,993
Other comprehensive income, net of tax	—	—		—		1,784		1,784
Stock-based compensation expense	—	920		—		—		920
Issuance of vested share awards, net of repurchase for tax withholdings	25,432	(180)		—		—		(180)
Common stock repurchased	(50,000)	(1,646)		—		—		(1,646)

Cash dividends declared ($0.42 per share)	—	—		(6,162)		—		(6,162)
Balance at June 30, 2024	14,569,262	$	115,543	$	493,974	$	(101,231)	$	508,286


	Six Months Ended
	Common Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
(In thousands, except number of shares and per share data)	Shares Outstanding	Amount
Balance at December 31, 2022	14,567,325	$	115,069	$	462,164	$	(125,955)	$	451,278
Net income	—	—		25,116		—		25,116
Other comprehensive income, net of tax	—	—		—		4,021		4,021
Stock-based compensation expense	—	1,407		—		—		1,407
Issuance of vested share awards, net of repurchase for tax withholdings	53,145	(174)		—		—		(174)
Common stock repurchased	(65,692)	(2,000)		—		—		(2,000)
Cash dividends declared ($0.84 per share)	—	—		(12,272)		—		(12,272)
Balance at June 30, 2023	14,554,778	$	114,302	$	475,008	$	(121,934)	$	467,376
Balance at December 31, 2023	14,565,952	$	115,602	$	481,014	$	(101,552)	$	495,064
Net income	—	—		25,265		—		25,265
Other comprehensive income, net of tax	—	—		—		321		321
Stock-based compensation expense	—	1,702		—		—		1,702
Issuance of vested share awards, net of repurchase for tax withholdings	53,310	(115)		—		—		(115)
Common stock repurchased	(50,000)	(1,646)		—		—		(1,646)

Cash dividends declared ($0.84 per share)	—	—		(12,305)		—		(12,305)
Balance at June 30, 2024	14,569,262	$	115,543	$	493,974	$	(101,231)	$	508,286

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Six Months Ended June 30,
(In thousands)	2024		2023
Operating Activities
Net Income	$	25,265	$	25,116
Adjustments to reconcile net income to net cash provided by operating activities:
Originations of mortgage loans held for sale	(98,966)		(77,838)
Proceeds from the sale of mortgage loans	95,804		71,780
Gain on sale of mortgage loans, net of origination costs	(848)		(761)
(Credit) provision for credit losses	(1,452)		2,105
Depreciation and amortization expense	1,634		1,642
Investment securities amortization and accretion, net	885		1,218
Stock-based compensation expense	1,702		1,407
Amortization of core deposit intangible assets	278		296
Purchase accounting accretion, net	(40)		(81)

Net increase in derivative collateral received from counterparties	11,350		6,540




Increase in other assets	(4,112)		(697)
Increase in other liabilities	748		923
Net cash provided by operating activities	32,248		31,650
Investing Activities

Proceeds from maturities of available-for-sale debt securities	38,873		38,113

Proceeds from maturities and recoveries of held-to-maturity securities	15,064		13,227

Net increase in loans	(46,306)		(96,451)

Purchase of Federal Home Loan Bank stock	(9,324)		(25,105)
Proceeds from sale of Federal Home Loan Bank stock	7,613		23,164
Purchase of premises and equipment	(1,833)		(1,034)




Net cash provided by (used in) in investing activities	4,087		(48,086)
Financing Activities
Net decrease in deposits	(83,340)		(133,184)
Net proceeds from borrowings less than 90 days	31,999		183,006
Proceeds from the Bank Term Funding Program	90,000		—
Repayment of Bank Term Funding Program	(55,000)		—




Common stock repurchases	(1,646)		(2,000)
Issuance of restricted stock, net of repurchase for tax withholdings	(115)		(174)
Cash dividends paid on common stock	(12,278)		(12,277)
Finance lease payments	(199)		(84)
Net cash (used in) provided by financing activities	(30,579)		35,287
Net increase in cash, cash equivalents and restricted cash	5,756		18,851
Cash, cash equivalents, and restricted cash at beginning of period	99,804		75,427
Cash, cash equivalents and restricted cash at end of period	$	105,560	$	94,278
Supplemental information
Interest paid	$	58,711	$	41,157
Income taxes paid	5,260		4,894

Cash dividends declared, not paid	6,158		6,129
Change in fair value hedges presented within residential real estate loans and other assets	5,501		6,070

The accompanying notes are an integral part of these consolidated financial statements.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited consolidated interim financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation (the "Company") as of June 30, 2024 and December 31, 2023, the consolidated statements of income for the three and six months ended June 30, 2024 and 2023, the consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023, the consolidated statements of changes in shareholders' equity for the three and six months ended June 30, 2024 and 2023, and the consolidated statements of cash flows for the six months ended June 30, 2024 and 2023. The consolidated financial statements include the accounts of the Company and Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company (which includes the consolidated accounts of Healthcare Professional Funding Corporation ("HPFC") and Property A, Inc.). All intercompany accounts and transactions have been eliminated in consolidation. Assets held by the Bank in a fiduciary capacity, through Camden National Wealth Management, a division of the Bank, are not assets of the Company and, therefore, are not included in the consolidated statements of condition. The Company also owns 100% of the common stock of Camden Capital Trust A and Union Bankshares Capital Trust I. These entities are unconsolidated subsidiaries of the Company. Certain reclassifications may have been made to prior period amounts to conform to the current period presentation. Any such reclassifications did not impact net income or shareholders' equity as previously reported. Net income reported for the three and six months ended June 30, 2024, is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

The acronyms, abbreviations and definitions identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Management's Discussion and Analysis of Financial Condition and Results of Operations." The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q.

Acronym

Description

Acronym

Description

AFS:

Available-For-Sale

FHLBB:

Federal Home Loan Bank of Boston

ALCO:

Asset/Liability Committee

FRB:

Board of Governors of the Federal Reserve System

ACL:

Allowance for Credit Losses

GAAP:

Generally Accepted Accounting Principles in the United States

AOCI:

Accumulated Other Comprehensive Income (Loss)

HTM:

Held-To-Maturity

ASC:

Accounting Standards Codification

Management ALCO:

Management Asset/Liability Committee

ASU:

Accounting Standards Update

MBS:

Mortgage-Backed Security

Bank:

Camden National Bank, a wholly-owned subsidiary of Camden National Corporation

N/A:

Not Applicable

Board ALCO:

Board of Directors' Asset/Liability Committee

N.M.:

Not Meaningful

BTFP:

Bank Term Funding Program, introduced by the Federal Reserve Bank in March 2023

OCC:

Office of the Comptroller of the Currency

CDs:

Certificate of Deposits

OCI:

Other Comprehensive Income (Loss)

Company:

Camden National Corporation

OREO:

Other Real Estate Owned

CMO:

Collateralized Mortgage Obligation

SBA:

U.S. Small Business Administration

EPS:

Earnings Per Share

SBA PPP:

U.S. Small Business Administration Paycheck Protection Program

FASB:

Financial Accounting Standards Board

SERP:

Supplemental Executive Retirement Plans

FDIC:

Federal Deposit Insurance Corporation

TDR:

Troubled-Debt Restructured Loan

FHLB:

Federal Home Loan Bank

U.S:

United States of America

NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS

The following provides a brief description of recently issued accounting pronouncements that have yet to be adopted by the Company:

ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The FASB issued ASU 2023-09 to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is to be applied on a prospective basis and is effective for annual periods beginning after December 15, 2024 with early adoption permitted. ASU 2023-09 will impact income tax disclosures, and the Company does not expect a material impact to the Company’s consolidated financial statements.

NOTE 3 – INVESTMENTS

Trading Securities

Trading securities are reported on the Company's consolidated statements of condition at fair value. As of June 30, 2024 and December 31, 2023, the fair value of the Company's trading securities were $5.0 million and $4.6 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 deferred compensation plan for eligible employees and directors.

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
June 30, 2024
Obligations of states and political subdivisions	$	5,426	$	—	$	(140)	$	5,286
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	500,703		355		(72,696)		428,362
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	135,694		441		(9,708)		126,427
Corporate bonds	21,680		—		(2,221)		19,459
Total AFS debt securities	$	663,503	$	796	$	(84,765)	$	579,534
December 31, 2023

Obligations of states and political subdivisions	$	6,429	$	1	$	(44)	$	6,386
MBS issued or guaranteed by U.S. government-sponsored enterprises	525,439		630		(65,978)		460,091
CMO issued or guaranteed by U.S. government-sponsored enterprises	149,387		1,161		(9,537)		141,011
Corporate bonds	21,682		1		(3,363)		18,320
Total AFS debt securities	$	702,937	$	1,793	$	(78,922)	$	625,808

As of June 30, 2024 and December 31, 2023, there was no allowance carried on AFS debt securities.

In 2022, the Company transferred securities with a fair value of $520.3 million from AFS to HTM. The unrealized losses on the AFS debt securities at the time of transfer were $72.1 million, pre-tax, and were reported within AOCI. These unrealized losses are being amortized over the remaining life of the securities from AOCI into the HTM securities on the consolidated statements of condition. As of June 30, 2024, the net unrealized losses on the transferred securities reported within AOCI were $44.4 million, net of a deferred tax asset of $12.2 million, and as of December 31, 2023 were $46.9 million, net of a deferred tax asset of $12.8 million.

The net unrealized losses on AFS debt securities reported within AOCI (excluding the aforementioned securities transferred from AFS to HTM) as of June 30, 2024 and December 31, 2023, were $65.9 million, net of a deferred tax asset of $18.1 million and $60.5 million, net of a deferred tax asset of $16.6 million, respectively.

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
June 30, 2024
Obligations of states and political subdivisions	10	$	1,805	$	(30)	$	2,715	$	(110)	$	4,520	$	(140)
MBS issued or guaranteed by U.S. government-sponsored enterprises	145	32,063		(160)		378,005		(72,536)		410,068		(72,696)
CMO issued or guaranteed by U.S. government-sponsored enterprises	43	23,046		(62)		59,022		(9,646)		82,068		(9,708)
Corporate bonds	12	992		(8)		18,468		(2,213)		19,460		(2,221)
Total AFS debt securities	210	$	57,906	$	(260)	$	458,210	$	(84,505)	$	516,116	$	(84,765)



December 31, 2023

Obligations of states and political subdivisions	6	$	2,345	$	(6)	$	1,437	$	(38)	$	3,782	$	(44)
MBS issued or guaranteed by U.S. government-sponsored enterprises	145	13,474		(23)		407,200		(65,955)		420,674		(65,978)
CMO issued or guaranteed by U.S. government-sponsored enterprises	43	19,620		(45)		62,869		(9,492)		82,489		(9,537)
Corporate bonds	11	—		—		17,319		(3,363)		17,319		(3,363)
Total AFS debt securities	205	$	35,439	$	(74)	$	488,825	$	(78,848)	$	524,264	$	(78,922)

For the three and six months ended June 30, 2024 and 2023, the unrealized losses on the Company's AFS debt securities have not been recognized into 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 were not reflective of credit events. Agency-backed and government-sponsored enterprise securities have a long history of no credit losses, including during times of severe stress. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and securities backed by government-sponsored enterprises carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. Municipal debt holdings are comprised only of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. Corporate bonds are primarily comprised of investment grade senior notes and senior subordinated notes of other financial institutions.

As of June 30, 2024 and December 31, 2023, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $1.6 million and $1.7 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 as of June 30, 2024, 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	$	—	$	—
Due after one year through five years	10,947		10,132
Due after five years through ten years	16,159		14,613
Due after ten years	—		—
Subtotal	27,106		24,745
Mortgage-related securities	636,397		554,789
Total	$	663,503	$	579,534

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(1)

Unrealized
Gains

Unrealized
Losses

Fair
Value

June 30, 2024

Obligations of U.S. government-sponsored enterprises

7,661

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