10-Q 1 ef20026280_10q.htm 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024.

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________.

COMMISSION FILE NUMBER 0-14703

NBT BANCORP INC.
(Exact name of registrant as specified in its charter)

Delaware
 
16-1268674
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

52 South Broad Street, Norwich, New York 13815
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (607) 337-2265

None
(Former name, former address and former fiscal year, if changed since last report)

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, par value $0.01 per share
 
NBTB
 
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 period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  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    No

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

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 financial 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

As of April 30, 2024, there were 47,149,315 shares outstanding of the Registrant’s Common Stock, $0.01 par value per share.



NBT BANCORP INC.
FORM 10-Q - Quarter Ended March 31, 2024

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION
 
ITEM 1.
FINANCIAL STATEMENTS (Unaudited)
 
 
4
 
5
 
6
 
7
 
8
 
10
ITEM 2.
27
ITEM 3.
40
ITEM 4.
40
   
 
PART II
OTHER INFORMATION
 
ITEM 1.
41
ITEM 1A.
41
ITEM 2.
41
ITEM 3.
41
ITEM 4.
41
ITEM 5.
41
ITEM 6.
41
   
 
  42

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

When references to “NBT”, “we,” “our,” “us,” and “the Company” are made in this report, we mean NBT Bancorp Inc. and our consolidated subsidiaries, unless the context indicates that we refer only to the parent company, NBT Bancorp, Inc. When we refer to the “Bank” in this report, we mean its only bank subsidiary, NBT Bank, National Association, and its subsidiaries.

The acronyms and abbreviations identified below are used throughout this report, including the Notes to Unaudited Interim Consolidated Financial Statements. You may find it helpful to refer to this page as you read this report.

AFS
available for sale
AIR
accrued interest receivable
AOCI
accumulated other comprehensive income (loss)
ASC
Accounting Standards Codification
ASU
Accounting Standards Update
BP(S)
basis point(s)
C&I
Commercial & Industrial
CECL
current expected credit losses
CD
certificate of deposit
CME
Chicago Mercantile Exchange Clearing House
CRE
Commercial Real Estate
EPS
earnings per share
FASB
Financial Accounting Standards Board
FDIC
Federal Deposit Insurance Corporation
FHLB
Federal Home Loan Bank
FOMC
Federal Open Market Committee
FRB
Federal Reserve Board
FTE
fully taxable equivalent
GAAP
generally accepted accounting principles in the United States of America
HTM
held to maturity
LGD
loss given default
LIBOR
London Interbank Offered Rate
MMDA
money market deposit accounts
NASDAQ
The NASDAQ Stock Market LLC
NIM
net interest margin
NOW
negotiable order of withdrawal
OCC
Office of the Comptroller of the Currency
OREO
other real estate owned
PCD
purchased credit deteriorated
PD
probability of default
Salisbury
Salisbury Bancorp, Inc.
Salisbury Bank
Salisbury Bank and Trust Company
SEC
U.S. Securities and Exchange Commission
SOFR
Secured Overnight Financing Rate
TDRs
troubled debt restructurings

ITEM 1. FINANCIAL STATEMENTS

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
 
March 31,
   
December 31,
 
(In thousands, except share and per share data)  
2024
   
2023
 
Assets
           
Cash and due from banks
 
$
162,460
   
$
173,811
 
Short-term interest-bearing accounts
   
156,632
     
31,378
 
Equity securities, at fair value
   
39,470
     
37,591
 
Securities available for sale, at fair value
   
1,418,471
     
1,430,858
 
Securities held to maturity (fair value $793,319 and $814,524, respectively)
   
890,863
     
905,267
 
Federal Reserve and Federal Home Loan Bank stock
   
37,336
     
45,861
 
Loans held for sale
   
3,263
     
3,371
 
Loans
   
9,688,077
     
9,650,713
 
Less allowance for loan losses
   
115,300
     
114,400
 
Net loans
 
$
9,572,777
   
$
9,536,313
 
Premises and equipment, net
   
80,239
     
80,675
 
Goodwill
   
361,851
     
361,851
 
Intangible assets, net
   
38,968
     
40,443
 
Bank owned life insurance
   
267,476
     
265,732
 
Other assets
   
409,393
     
395,889
 
Total assets
 
$
13,439,199
   
$
13,309,040
 
Liabilities
               
Demand (noninterest bearing)
 
$
3,359,789
   
$
3,413,829
 
Savings, NOW and money market
   
6,467,364
     
6,230,456
 
Time
   
1,368,136
     
1,324,709
 
Total deposits
 
$
11,195,289
   
$
10,968,994
 
Short-term borrowings
   
267,134
     
386,651
 
Long-term debt
   
29,759
     
29,796
 
Subordinated debt, net
   
120,101
     
119,744
 
Junior subordinated debt
   
101,196
     
101,196
 
Other liabilities
   
284,305
     
276,968
 
Total liabilities
 
$
11,997,784
   
$
11,883,349
 
Stockholders’ equity
               
Preferred stock, $0.01 par value. 2,500,000 shares authorized
 
$
-
   
$
-
 
Common stock, $0.01 par value. 100,000,000 shares authorized; 53,974,492 shares issued
   
540
     
540
 
Additional paid-in-capital
   
740,792
     
740,943
 
Retained earnings
   
1,040,563
     
1,021,831
 
Accumulated other comprehensive loss
   
(164,492
)
   
(160,934
)
Common stock in treasury, at cost, 6,819,477 and 6,864,593 shares, respectively
   
(175,988
)
   
(176,689
)
Total stockholders’ equity
 
$
1,441,415
   
$
1,425,691
 
Total liabilities and stockholders’ equity
 
$
13,439,199
   
$
13,309,040
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income (unaudited)
 
Three Months Ended
March 31,
 
(In thousands, except per share data)
 
2024
   
2023
 
Interest, fee and dividend income
           
Interest and fees on loans
 
$
133,146
   
$
100,899
 
Securities available for sale
   
7,124
     
7,616
 
Securities held to maturity
   
5,303
     
5,035
 
Other
   
1,364
     
642
 
Total interest, fee and dividend income
 
$
146,937
   
$
114,192
 
Interest expense
               
Deposits
 
$
44,339
   
$
11,144
 
Short-term borrowings
   
3,421
     
4,919
 
Long-term debt
   
290
     
47
 
Subordinated debt
   
1,800
     
1,334
 
Junior subordinated debt
   
1,913
     
1,682
 
Total interest expense
 
$
51,763
   
$
19,126
 
Net interest income
 
$
95,174
   
$
95,066
 
Provision for loan losses
   
5,579
     
3,909
 
Net interest income after provision for loan losses
 
$
89,595
   
$
91,157
 
Noninterest income
               
Service charges on deposit accounts
 
$
4,117
   
$
3,548
 
Card services income
   
5,195
     
4,845
 
Retirement plan administration fees
   
14,287
     
11,462
 
Wealth management
   
9,697
     
8,087
 
Insurance services
   
4,388
     
3,931
 
Bank owned life insurance income
   
2,352
     
1,878
 
Net securities gains (losses)
   
2,183
   
(4,998
)
Other
   
3,173
     
2,656
 
Total noninterest income
 
$
45,392
   
$
31,409
 
Noninterest expense
               
Salaries and employee benefits
 
$
55,704
   
$
48,155
 
Technology and data services
    9,750       9,007  
Occupancy
   
8,098
     
7,220
 
Professional fees and outside services
   
4,853
     
4,178
 
Office supplies and postage
   
1,865
     
1,628
 
FDIC assessment
   
1,735
     
1,396
 
Advertising
   
812
     
649
 
Amortization of intangible assets
   
2,168
     
536
 
Loan collection and other real estate owned, net
   
553
     
855
 
Acquisition expenses
    -       618  
Other
   
6,235
     
5,080
 
Total noninterest expense
 
$
91,773
   
$
79,322
 
Income before income tax expense
 
$
43,214
   
$
43,244
 
Income tax expense
   
9,391
     
9,586
 
Net income
 
$
33,823
   
$
33,658
 
Earnings per share
               
Basic
 
$
0.72
   
$
0.78
 
Diluted
 
$
0.71
   
$
0.78
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss) (unaudited)
 
Three Months Ended
March 31,
 
(In thousands)  
2024
   
2023
 
Net income
 
$
33,823
   
$
33,658
 
Other comprehensive income (loss), net of tax:
               
                 
Securities available for sale:
               
Unrealized net holding (losses) gains arising during the period, gross
 
$
(5,292
)
 
$
15,725
 
Tax effect
   
1,323
     
(3,931
)
Unrealized net holding (losses) gains arising during the period, net
 
$
(3,969
)
 
$
11,794
 
                 
Reclassification adjustment for net losses in net income, gross
  $ -     $ 5,000  
Tax effect
    -       (1,250 )
Reclassification adjustment for net losses in net income, net
  $ -     $ 3,750  

               
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross
 
$
96
   
$
114
 
Tax effect
   
(24
)
   
(28
)
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net
 
$
72
   
$
86
 
                 
Total securities available for sale, net
 
$
(3,897
)
 
$
15,630
 
                 
Pension and other benefits:
               
Amortization of prior service cost and actuarial losses, gross
 
$
452
   
$
649
 
Tax effect
   
(113
)
   
(163
)
Amortization of prior service cost and actuarial losses, net
 
$
339
   
$
486
 
                 
Total pension and other benefits, net
 
$
339
   
$
486
 
                 
Total other comprehensive (loss) income
 
$
(3,558
)
 
$
16,116
 
Comprehensive income
 
$
30,265
   
$
49,774
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
(In thousands, except share and per share data)  
Common
Stock
   
Additional
Paid-in-
Capital
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
(Loss) Income
   
Common
Stock in
Treasury
   
Total
 
Balance at December 31, 2023
 
$
540
   
$
740,943
   
$
1,021,831
   
$
(160,934
)
 
$
(176,689
)
 
$
1,425,691
 
Net income
   
-
     
-
     
33,823
     
-
     
-
     
33,823
 
Cash dividends - $0.32 per share
   
-
     
-
     
(15,091
)
   
-
     
-
     
(15,091
)
Purchase of 1,900 treasury shares
    -       -       -       -       (63 )     (63 )
Net issuance of 47,016 shares to employee
and other stock plans
   
-
     
(2,435
)
   
-
     
-
     
764
     
(1,671
)
Stock-based compensation
   
-
     
2,284
     
-
     
-
     
-
     
2,284
 
Other comprehensive (loss)
   
-
     
-
     
-
     
(3,558
)
   
-
     
(3,558
)
Balance at March 31, 2024
 
$
540
   
$
740,792
   
$
1,040,563
   
$
(164,492
)
 
$
(175,988
)
 
$
1,441,415
 
                                                 
Balance at December 31, 2022
 
$
497
   
$
577,853
   
$
958,433
   
$
(190,034
)
 
$
(173,195
)
 
$
1,173,554
 
Cumulative effect adjustment for ASU 2022-02
implementation as of January 1, 2023
    -       -       502       -       -       502  
Net income
   
-
     
-
     
33,658
     
-
     
-
     
33,658
 
Cash dividends - $0.30 per share
   
-
     
-
     
(12,871
)
   
-
     
-
     
(12,871
)
Net issuance of 46,509 shares to employee
and other stock plans
   
-
     
(2,366
)
   
-
     
-
     
601
     
(1,765
)
Stock-based compensation
   
-
     
2,465
     
-
     
-
     
-
     
2,465
 
Other comprehensive income     -       -       -       16,116       -       16,116  
Balance at March 31, 2023
 
$
497
   
$
577,952
   
$
979,722
   
$
(173,918
)
 
$
(172,594
)
 
$
1,211,659
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
 
Three Months Ended
March 31,
 
(In thousands)  
2024
   
2023
 
Operating activities
           
Net income
 
$
33,823
   
$
33,658
 
Adjustments to reconcile net income to net cash provided by operating activities
               
Provision for loan losses
   
5,579
     
3,909
 
Depreciation and amortization of premises and equipment
   
2,855
     
2,579
 
Net amortization on securities
   
657
     
690
 
Amortization of intangible assets
   
2,168
     
536
 
Amortization of operating lease right-of-use assets
   
1,867
     
1,647
 
Excess tax benefit on stock-based compensation
   
(116
)
   
(231
)
Stock-based compensation expense
   
2,284
     
2,465
 
Bank owned life insurance income
   
(2,352
)
   
(1,878
)
Amortization of subordinated debt issuance costs
   
109
     
109
 
Proceeds from sale of loans held for sale
   
27,075
     
1,571
 
Originations of loans held for sale
   
(26,662
)
   
(1,418
)
Net gain on sale of loans held for sale
   
(40
)
   
(16
)
Net securities (gains) losses
   
(2,183
)
   
4,998
 
Net change in other assets and other liabilities
   
(8,319
)
   
(26,772
)
Net cash provided by operating activities
 
$
36,745
   
$
21,847
 
Investing activities
               
Net cash used in acquisitions
  $ (743 )   $ (129 )
Securities available for sale:
               
Proceeds from maturities, calls and principal paydowns
   
26,542
     
30,683
 
Proceeds from sales
    2,284       -  
Purchases
   
(19,676
)
   
-
 
Securities held to maturity:
               
Proceeds from maturities, calls and principal paydowns
   
21,143
     
17,870
 
Purchases
   
(7,071
)
   
(5,494
)
Equity securities:
               
Purchases
    (7 )     -  
Other:
               
Net increase in loans
   
(42,308
)
   
(118,242
)
Proceeds from Federal Home Loan Bank stock redemption
   
26,465
     
38,589
 
Purchases of Federal Home Loan Bank stock
   
(17,940
)
   
(39,218
)
Proceeds from settlement of bank owned life insurance
   
608
     
1,773
 
Purchases of premises and equipment, net
   
(2,425
)
   
(1,392
)
Net cash used in investing activities
 
$
(13,128
)
 
$
(75,560
)
Financing activities
               
Net increase in deposits  
$
226,295
   
$
185,272
 
Net decrease in short-term borrowings    
(119,517
)
   
(109,786
)
Proceeds from long-term debt
    -       25,000  
Repayments of long-term debt
   
(37
)
   
(25
)
Cash paid by employer for tax-withholding on stock issuance
   
(1,301
)
   
(1,432
)
Purchase of treasury stock
   
(63
)
   
-
 
Cash dividends
   
(15,091
)
   
(12,871
)
Net cash provided by financing activities
 
$
90,286
   
$
86,158
 
Net increase in cash and cash equivalents
 
$
113,903
   
$
32,445
 
Cash and cash equivalents at beginning of period
   
205,189
     
197,350
 
Cash and cash equivalents at end of period
 
$
319,092
   
$
229,795
 

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited) (continued)

Three Months Ended
March 31,
 
 
2024
 
2023
 
Supplemental disclosure of cash flow information
       
Cash paid during the period for:
       
Interest expense
 
$
55,313
   
$
17,066
 
Income taxes paid, net of refund
   
3,500
     
15,072
 
Acquisitions:                
Fair value of assets acquired   $ 693     $ 150  

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Notes to Unaudited Interim Consolidated Financial Statements
March 31, 2024

1.
Description of Business

NBT Bancorp Inc. is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of NBT Bancorp Inc. consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The principal sources of revenue for NBT Bancorp Inc. are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as (the “Company”).

The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to customers in its market area, which includes upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central and northwestern Connecticut. The Company has been, and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail, commercial and municipal customers.

2.
Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements include the accounts of NBT Bancorp Inc. and its wholly-owned subsidiaries: the Bank, NBT Financial and NBT Holdings. In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods in accordance with GAAP and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, the consolidated financial statements do not include all of the information and notes necessary for complete financial statements in conformity with GAAP. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.

Estimates associated with the allowance for credit losses, pension accounting, provision for income taxes, fair values of financial instruments and status of contingencies are particularly susceptible to material change in the near term.

3.
Recent Accounting Pronouncements

Accounting Standards Issued Not Yet Adopted



In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements, which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification. The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were redundant, duplicative, overlapping, outdated, or superseded. The new guidance is intended to align GAAP requirements with those of the SEC. The ASU will become effective on the earlier of the date on which the SEC removes its disclosure requirements for the related disclosure or June 30, 2027. Early adoption is not permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosure requirements by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.


In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, that addresses requests for improved income tax disclosures from investors, lenders, creditors and other allocators of capital that use the financial statements to make capital allocation decisions. The ASU requires enhanced disclosures primarily related to existing rate reconciliation and income taxes paid information to help investors better assess how the Company’s operations and related tax risks and tax planning and operational opportunities affect the Company’s tax rate and prospects for future cash flows. The ASU 2023-09 improves the transparency of income tax disclosures. The amendments in this ASU are effective for the Company on January 1, 2025 and should be applied on a prospective basis. Retrospective application and early adoption are permitted. The adoption, other than to meet the new disclosure requirements, is not expected to have a material impact on the consolidated financial statements.

4.
Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)
 
Amortized
Cost
   
Unrealized
Gains
   
Unrealized
Losses
   
Estimated
Fair Value
 
As of March 31, 2024
                       
U.S. treasury
  $ 133,442     $ -     $ (8,759 )   $ 124,683  
Federal agency
   
248,375
     
-
     
(35,071
)
   
213,304
 
State & municipal
   
96,054
     
1
     
(10,022
)
   
86,033
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
387,479
     
3
     
(45,461
)
   
342,021
 
U.S. government agency securities
   
71,036
     
10
     
(7,520
)
   
63,526
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
452,853
     
49
     
(50,135
)
   
402,767
 
U.S. government agency securities
   
170,293
     
-
     
(26,034
)
   
144,259
 
Corporate
   
48,451
     
-
     
(6,573
)
   
41,878
 
Total AFS securities
 
$
1,607,983
   
$
63
   
$
(189,575
)
 
$
1,418,471
 
As of December 31, 2023
                               
U.S. treasury
  $ 133,302     $ -     $ (8,278 )   $ 125,024  
Federal agency
   
248,384
     
-
     
(33,644
)
   
214,740
 
State & municipal
   
96,251
     
11
     
(9,956
)
   
86,306
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
399,532
     
7
     
(44,264
)
   
355,275
 
U.S. government agency securities
   
74,281
     
14
     
(7,302
)
   
66,993
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
452,715
     
15
     
(48,257
)
   
404,473
 
U.S. government agency securities
   
162,171
     
-
     
(25,100
)
   
137,071
 
Corporate
   
48,442
     
-
     
(7,466
)
   
40,976
 
Total AFS securities
 
$
1,615,078
   
$
47
   
$
(184,267
)
 
$
1,430,858
 

There was no allowance for credit losses on AFS securities as of March 31, 2024 and December 31, 2023.

During the three months ended March 31, 2023, the Company incurred a $5.0 million loss on the write-off of an AFS corporate debt security from a subordinated debt investment of a financial institution that failed. The $5.0 million loss was reclassified out of AOCI and into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income. During the three months ended March 31, 2024 the Company sold the previously written-off security and recognized a gain of $2.3 million into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income. During the three months ended March 31, 2024, there were no gains or losses reclassified out of AOCI and into earnings.

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)
 
Amortized
Cost
   
Unrealized
Gains
   
Unrealized
Losses
   
Estimated
Fair Value
 
As of March 31, 2024
                       
Federal agency
 
$
100,000
   
$
-
   
$
(18,440
)
 
$
81,560
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
224,344
     
-
     
(34,187
)
   
190,157
 
U.S. government agency securities
   
16,742
     
2
     
(736
)
   
16,008
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
182,813
     
-
     
(13,466
)
   
169,347
 
U.S. government agency securities
   
63,137
     
-
     
(11,206
)
   
51,931
 
State & municipal
   
303,827
     
99
     
(19,610
)
   
284,316
 
Total HTM securities
 
$
890,863
   
$
101
   
$
(97,645
)
 
$
793,319
 
As of December 31, 2023
                               
Federal agency
 
$
100,000
   
$
-
   
$
(17,784
)
 
$
82,216
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
228,720
     
-
     
(31,613
)
   
197,107
 
U.S. government agency securities
   
17,086
     
3
     
(566
)
   
16,523
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
187,457
     
57
     
(12,021
)
   
175,493
 
U.S. government agency securities
   
63,878
     
-
     
(10,908
)
   
52,970
 
State & municipal
   
308,126
     
211
     
(18,122
)
   
290,215
 
Total HTM securities
 
$
905,267
   
$
271
   
$
(91,014
)
 
$
814,524
 

At March 31, 2024 and December 31, 2023, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises securities. 

The Company recorded no gains from calls on HTM securities for the three months ended March 31, 2024 and 2023.

AFS and HTM securities with amortized costs totaling $1.99 billion at March 31, 2024 and $2.03 billion at December 31, 2023 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at March 31, 2024 and December 31, 2023, AFS and HTM securities with an amortized cost of $159.3 million and $177.2 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following table sets forth information with regard to gains and (losses) on equity securities:

Three Months Ended
March 31,
 
(In thousands)
2024
 
2023
 
Net (losses) and gains recognized on equity securities
 
$
(101
)
 
$
2
 
Less: Net (losses) and gains recognized on equity securities sold during the period
   
-
     
-
 
Unrealized (losses) and gains recognized on equity securities still held
 
$
(101
)
 
$
2
 

As of March 31, 2024 and December 31, 2023, the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of March 31, 2024 and 2023. There were no impairments, or downward or upward adjustments recognized for equity securities without readily determinable fair values during the three months ended March 31, 2024 and 2023.

The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2024:

(In thousands)
 
Amortized
Cost
   
Estimated
Fair Value
 
AFS debt securities:
           
Within one year
 
$
50,294
   
$
49,553
 
From one to five years
   
567,513
     
508,211
 
From five to ten years
   
314,839
     
277,648
 
After ten years
   
675,337
     
583,059
 
Total AFS debt securities
 
$
1,607,983
   
$
1,418,471
 
HTM debt securities: