10-Q 1 brhc10037016_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, 2022.

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 of Incorporation)
 
(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 class
 
Trading Symbol(s)
 
Name of 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 (Section 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. (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 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 29, 2022, there were 42,826,146 shares outstanding of the Registrant’s Common Stock, $0.01 par value per share.




NBT BANCORP INC.
FORM 10-Q - Quarter Ended March 31, 2022

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1
Financial Statements (Unaudited)
 
 
 
 
 
3
 
 
 
 
4
 
 
 
 
5
 
 
 
 
6
 
 
 
 
7
 
 
 
 
9
 
 
 
Item 2
30
 
 
 
Item 3
45
 
 
 
Item 4
45
 
 
 
PART II
OTHER INFORMATION
 
 
 
 
Item 1
46
Item 1A
46
Item 2
46
Item 3
46
Item 4
46
Item 5
46
Item 6
47
 
 
 
48

Item 1 – FINANCIAL STATEMENTS

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)

 
March 31,
   
December 31,
 
   
2022
   
2021
 
(In thousands, except share and per share data)
           
Assets
           
Cash and due from banks
 
$
180,865
   
$
157,775
 
Short-term interest-bearing accounts
   
913,315
     
1,111,296
 
Equity securities, at fair value
   
32,554
     
33,550
 
Securities available for sale, at fair value
   
1,662,697
     
1,687,361
 
Securities held to maturity (fair value $851,635 and $735,260, respectively)
   
895,005
     
733,210
 
Federal Reserve and Federal Home Loan Bank stock
   
25,005
     
25,098
 
Loans held for sale
   
263
     
830
 
Loans
   
7,649,826
     
7,498,459
 
Less allowance for loan losses
   
90,000
     
92,000
 
Net loans
 
$
7,559,826
   
$
7,406,459
 
Premises and equipment, net
   
71,030
     
72,093
 
Goodwill
   
280,541
     
280,541
 
Intangible assets, net
   
8,291
     
8,927
 
Bank owned life insurance
   
228,979
     
228,238
 
Other assets
   
289,462
     
266,733
 
Total assets
 
$
12,147,833
   
$
12,012,111
 
Liabilities
               
Demand (noninterest bearing)
 
$
3,751,268
   
$
3,689,556
 
Savings, NOW and money market
   
6,222,378
     
6,043,441
 
Time
   
487,977
     
501,472
 
Total deposits
 
$
10,461,623
   
$
10,234,469
 
Short-term borrowings
   
65,022
     
97,795
 
Long-term debt
   
13,971
     
13,995
 
Subordinated debt, net
   
98,599
     
98,490
 
Junior subordinated debt
   
101,196
     
101,196
 
Other liabilities
   
205,172
     
215,713
 
Total liabilities
 
$
10,945,583
   
$
10,761,658
 
Stockholders’ equity
               
Preferred stock, $0.01 par value. Authorized 2,500,000 shares at March 31, 2022 and December 31, 2021
 
$
-
   
$
-
 
Common stock, $0.01 par value. Authorized 100,000,000 shares at March 31, 2022 and December 31, 2021, issued 49,651,493 at March 31, 2022 and December 31, 2021
   
497
     
497
 
Additional paid-in-capital
   
577,374
     
576,976
 
Retained earnings
   
883,246
     
856,203
 
Accumulated other comprehensive loss
   
(91,375
)
   
(23,344
)
Common stock in treasury, at cost, 6,659,170 and 6,483,481 shares at March 31, 2022 and December 31, 2021, respectively
   
(167,492
)
   
(159,879
)
Total stockholders’ equity
 
$
1,202,250
   
$
1,250,453
 
Total liabilities and stockholders’ equity
 
$
12,147,833
   
$
12,012,111
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income (unaudited)

 
Three Months Ended
March 31,
 
   
2022
   
2021
 
(In thousands, except per share data)
           
Interest, fee and dividend income
           
Interest and fees on loans
 
$
73,343
   
$
75,093
 
Securities available for sale
   
6,840
     
5,544
 
Securities held to maturity
   
3,493
     
3,382
 
Other
   
525
     
291
 
Total interest, fee and dividend income
 
$
84,201
   
$
84,310
 
Interest expense
               
Deposits
 
$
1,842
   
$
3,172
 
Short-term borrowings
   
16
     
70
 
Long-term debt
   
87
     
124
 
Subordinated debt
   
1,359
     
1,359
 
Junior subordinated debt
   
549
     
530
 
Total interest expense
 
$
3,853
   
$
5,255
 
Net interest income
 
$
80,348
   
$
79,055
 
Provision for loan losses
   
596
     
(2,796
)
Net interest income after provision for loan losses
 
$
79,752
   
$
81,851
 
Noninterest income
               
Service charges on deposit accounts
 
$
3,688
   
$
3,027
 
Card services income
   
8,695
     
7,550
 
Retirement plan administration fees
   
13,279
     
10,098
 
Wealth management
   
8,640
     
7,910
 
Insurance services
   
3,788
     
3,461
 
Bank owned life insurance income
   
1,654
     
1,381
 
Net securities (losses) gains
   
(179
)
   
467
 
Other
   
3,094
     
3,144
 
Total noninterest income
 
$
42,659
   
$
37,038
 
Noninterest expense
               
Salaries and employee benefits
 
$
45,508
   
$
41,601
 
Technology and data services
    8,547       8,892  
Occupancy
   
6,793
     
6,889
 
Professional fees and outside services
   
4,276
     
3,589
 
Office supplies and postage
   
1,424
     
1,499
 
FDIC expenses
   
802
     
808
 
Advertising
   
654
     
451
 
Amortization of intangible assets
   
636
     
812
 
Loan collection and other real estate owned, net
   
384
     
590
 
Other
   
3,119
     
2,757
 
Total noninterest expense
 
$
72,143
   
$
67,888
 
Income before income tax expense
 
$
50,268
   
$
51,001
 
Income tax expense
   
11,142
     
11,155
 
Net income
 
$
39,126
   
$
39,846
 
Earnings per share
               
Basic
 
$
0.91
   
$
0.91
 
Diluted
 
$
0.90
   
$
0.91
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (unaudited)

 
Three Months Ended
March 31,
 
   
2022
   
2021
 
(In thousands)
           
Net income
 
$
39,126
   
$
39,846
 
Other comprehensive (loss) income, net of tax:
               
                 
Securities available for sale:
               
Unrealized net holding (losses) arising during the period, gross
 
$
(91,030
)
 
$
(23,311
)
Tax effect
   
22,758
     
5,827
 
Unrealized net holding (losses) arising during the period, net
 
$
(68,272
)
 
$
(17,484
)
                 
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross
 
$
137
   
$
142
 
Tax effect
   
(35
)
   
(35
)
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net
 
$
102
   
$
107
 
                 
Total securities available for sale, net
 
$
(68,170
)
 
$
(17,377
)
                 
Cash flow hedges:
               
Reclassification of net unrealized losses on cash flow hedges to interest expense, gross
 
$
-
   
$
21
 
Tax effect
   
-
     
(5
)
Reclassification of net unrealized losses on cash flow hedges to interest expense, net
 
$
-
   
$
16
 
                 
Total cash flow hedges, net
 
$
-
   
$
16
 
                 
Pension and other benefits:
               
Amortization of prior service cost and actuarial losses, gross
 
$
186
   
$
326
 
Tax effect
   
(47
)
   
(81
)
Amortization of prior service cost and actuarial losses, net
 
$
139
   
$
245
 
                 
Total pension and other benefits, net
 
$
139
   
$
245
 
                 
Total other comprehensive (loss)
 
$
(68,031
)
 
$
(17,116
)
Comprehensive (loss) income
 
$
(28,905
)
 
$
22,730
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity (unaudited)

 
Common
Stock
   
Additional
Paid-in-
Capital
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
(Loss) Income
   
Common
Stock in
Treasury
   
Total
 
(In thousands, except share and per share data)
                                   
Balance at December 31, 2021
 
$
497
   
$
576,976
   
$
856,203
   
$
(23,344
)
 
$
(159,879
)
 
$
1,250,453
 
Net income
   
-
     
-
     
39,126
     
-
     
-
     
39,126
 
Cash dividends - $0.28 per share
   
-
     
-
     
(12,083
)
   
-
     
-
     
(12,083
)
Purchase of 217,100 treasury shares
   
-
     
-
     
-
     
-
     
(8,152
)
   
(8,152
)
Net issuance of 41,411 shares to employee and other stock plans
   
-
     
(2,074
)
   
-
     
-
     
539
     
(1,535
)
Stock-based compensation
   
-
     
2,472
     
-
     
-
     
-
     
2,472
 
Other comprehensive (loss)
   
-
     
-
     
-
     
(68,031
)
   
-
     
(68,031
)
Balance at March 31, 2022
 
$
497
   
$
577,374
   
$
883,246
   
$
(91,375
)
 
$
(167,492
)
 
$
1,202,250
 
                                                 
Balance at December 31, 2020
 
$
497
   
$
578,082
   
$
749,056
   
$
417
   
$
(140,434
)
 
$
1,187,618
 
Net income
   
-
     
-
     
39,846
     
-
     
-
     
39,846
 
Cash dividends - $0.27 per share
   
-
     
-
     
(11,732
)
   
-
     
-
     
(11,732
)
Purchase of 257,031 treasury shares
   
-
     
-
     
-
     
-
     
(9,020
)
   
(9,020
)
Net issuance of 53,139 shares to employee and other stock plans
   
-
     
(2,153
)
   
-
     
-
     
870
     
(1,283
)
Stock-based compensation
   
-
     
2,668
     
-
     
-
     
-
     
2,668
 
Other comprehensive (loss)
   
-
      -      
-
     
(17,116
)
   
-
     
(17,116
)
Balance at March 31, 2021
 
$
497
   
$
578,597
   
$
777,170
   
$
(16,699
)
 
$
(148,584
)
 
$
1,190,981
 

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,
 
   
2022
   
2021
 
(In thousands)
           
Operating activities
           
Net income
 
$
39,126
   
$
39,846
 
Adjustments to reconcile net income to net cash provided by operating activities
               
Provision for loan losses
   
596
     
(2,796
)
Depreciation and amortization of premises and equipment
   
2,420
     
2,441
 
Net amortization on securities
   
1,036
     
1,477
 
Amortization of intangible assets
   
636
     
812
 
Amortization of operating lease right-of-use assets
   
1,688
     
1,821
 
Excess tax benefit on stock-based compensation
   
(168
)
   
(107
)
Stock-based compensation expense
   
2,472
     
2,668
 
Bank owned life insurance income
   
(1,654
)
   
(1,381
)
Amortization of subordinated debt issuance costs
   
109
     
110
 
Proceeds from sale of loans held for sale
   
2,106
     
13,877
 
Originations of loans held for sale
   
(1,479
)
   
(13,943
)
Net gain on sale of loans held for sale
   
(60
)
   
(110
)
Net security losses (gains)
   
179
     
(467
)
Net gains on sale of other real estate owned
   
(211
)
   
-
 
Net change in other assets and other liabilities
   
(11,652
)
   
(1,946
)
Net cash provided by operating activities
 
$
35,144
   
$
42,302
 
Investing activities
               
Securities available for sale:
               
Proceeds from maturities, calls and principal paydowns
 
$
72,281
   
$
95,274
 
Purchases
   
(139,273
)
   
(158,196
)
Securities held to maturity:
               
Proceeds from maturities, calls and principal paydowns
   
29,028
     
66,282
 
Purchases
   
(191,092
)
   
(42,760
)
Other:
               
Net increase in loans
   
(153,963
)
   
(136,778
)
Proceeds from Federal Home Loan Bank stock redemption
   
93
     
2,252
 
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock
   
-
     
(26
)
Proceeds from settlement of bank owned life insurance
   
913
     
357
 
Purchases of premises and equipment, net
   
(1,312
)
   
(901
)
Proceeds from sales of other real estate owned
   
378
     
140
 
Net cash used in investing activities
 
$
(382,947
)
 
$
(174,356
)
Financing activities
               
Net increase in deposits
 
$
227,154
   
$
734,238
 
Net decrease in short-term borrowings
   
(32,773
)
   
(73,048
)
Repayments of long-term debt
   
(24
)
   
(25,027
)
Proceeds from the issuance of shares to employee and other stock plans
   
-
     
112
 
Cash paid by employer for tax-withholding on stock issuance
   
(1,210
)
   
(1,125
)
Purchase of treasury stock
   
(8,152
)
   
(9,020
)
Cash dividends
   
(12,083
)
   
(11,732
)
Net cash provided by financing activities
 
$
172,912
   
$
614,398
 
Net (decrease) increase in cash and cash equivalents
 
$
(174,891
)
 
$
482,344
 
Cash and cash equivalents at beginning of period
   
1,269,071
     
672,681
 
Cash and cash equivalents at end of period
 
$
1,094,180
   
$
1,155,025
 

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

 
Three Months Ended
March 31,
 
   
2022
   
2021
 
Supplemental disclosure of cash flow information
           
Cash paid during the period for:
           
Interest expense
 
$
5,238
   
$
7,105
 
Income taxes paid, net of refund
   
2,448
     
2,540
 

See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Notes to Unaudited Interim Consolidated Financial Statements
March 31, 2022

1.
Description of Business

NBT Bancorp Inc. (the “Company”) 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 the Company 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 Company’s principal sources of revenue are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings.

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 central and upstate New York, northeastern Pennsylvania, New Hampshire, Massachusetts, Vermont, Maine and 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. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as (the “Company”). In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in accordance with generally accepted accounting principles in the United States of America (“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 2021 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 combined ATM and debit cards fees with card related income previously reported in Other noninterest income which is now disclosed as Card services income. The Company reclassified Data processing and communications expense into Technology and data services expense. The Company reclassified Equipment expense into Occupancy expense and Technology and data services expense. 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.

3.
Recent Accounting Pronouncements

Accounting Standards Issued Not Yet Adopted

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. On January 7, 2021, the FASB issued ASU 2021-01, which refines the scope of Accounting Standards Codification (“ASC 848”) and clarifies some of its guidance. The ASU and related amendments provide temporary optional expedients and exceptions to the existing guidance for applying GAAP to affected contract modifications and hedge accounting relationships in the transition away from the London Interbank Offered Rate (“LIBOR”) or other interbank offered rate on financial reporting. The guidance also allows a one-time election to sell and/or reclassify to available for sale (“AFS”) or trading held to maturity (“HTM”) debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective March 12, 2020 through December 31, 2022 and permits relief solely for reference rate reform actions and permits different elections over the effective date for legacy and new activity. The Company does not expect that the impact of adopting the new guidance on the consolidated financial statements will have a material impact on the consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the guidance on Troubled Debt Restructurings (“TDRs”) and requires an evaluation on all loan modifications to determine if they result in a new loan or a continuation of the existing loan. The ASU also requires that entities disclose current-period gross charge-offs by year of origination. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. The amendments in this ASU are effective for the Company on January 1, 2023, with early adoption permitted. The Company is evaluating the impact of adopting the new guidance on the consolidated financial statements and does not expect it will 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, 2022
                       
U.S. treasury
  $ 122,444     $
-     $
4,809     $
117,635  
Federal agency


248,445
   

-
   

22,833
   

225,612
 
State & municipal
   
95,339
     
-
     
7,037
     
88,302
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
510,500
     
355
     
25,782
     
485,073
 
U.S. government agency securities
   
75,846
     
59
     
2,581
     
73,324
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
462,288
     
149
     
26,908
     
435,529
 
U.S. government agency securities
   
190,310
     
57
     
7,897
     
182,470
 
Corporate
   
56,000
     
246
     
1,494
     
54,752
 
Total AFS securities
 
$
1,761,172
   
$
866
   
$
99,341
   
$
1,662,697
 
As of December 31, 2021
                               
U.S. treasury
  $ 73,016     $ 59
  $ 6     $ 73,069  
Federal agency
 

248,454
   

-
   

8,523
   

239,931
 
State & municipal
   
95,531
     
116
     
1,559
     
94,088
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
538,036
     
8,036
     
5,589
     
540,483
 
U.S. government agency securities
   
65,339
     
1,108
     
255
     
66,192
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
484,550
     
2,723
     
5,113
     
482,160
 
U.S. government agency securities
   
139,380
     
939
     
884
     
139,435
 
Corporate
   
50,500
     
1,516
     
13
     
52,003
 
Total AFS securities
 
$
1,694,806
   
$
14,497
   
$
21,942
   
$
1,687,361
 

There was no allowance for credit losses on AFS securities as of March 31, 2022 and December 31, 2021.

During the three months ended March 31, 2022 and 2021 there were no gains or losses reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings.

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

(In thousands)
 
Amortized
Cost
   
Unrealized
Gains
   
Unrealized
Losses
   
Estimated
Fair Value
 
As of March 31, 2022
                       
Federal agency
 
$
100,000
   
$
-
   
$
10,872
   
$
89,128
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
269,153
     
137
     
16,499
     
252,791
 
U.S. government agency securities
   
7,425
     
50
     
6
     
7,469
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
111,254
     
105
     
2,722
     
108,637
 
U.S. government agency securities
   
74,596
     
76
     
3,755
     
70,917
 
State & municipal
   
332,577
     
394
     
10,278
     
322,693
 
Total HTM securities
 
$
895,005
   
$
762
   
$
44,132
   
$
851,635
 
As of December 31, 2021
                               
Federal agency
 
$
100,000
   
$
-
   
$
4,365
   
$
95,635
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
161,462
     
2,232
     
1,319
     
162,375
 
U.S. government agency securities
   
9,112
     
514
     
-
     
9,626
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
94,342
     
1,932
     
129
     
96,145
 
U.S. government agency securities
   
44,473
     
336
     
674
     
44,135
 
State & municipal
   
323,821
     
5,026
     
1,503
     
327,344
 
Total HTM securities
 
$
733,210
   
$
10,040
   
$
7,990
   
$
735,260
 

At March 31, 2022 and December 31, 2021, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and Government-sponsored enterprises securities. There was no allowance for credit losses on HTM securities as of March 31, 2022 and December 31, 2021 because the expectations of nonrepayment of the amortized cost is zero, except for State & municipal which is inconsequential.

Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $4 thousand and $15 thousand for the three months ended March 31, 2021 and 2022, respectively.

AFS and HTM securities with amortized costs totaling $1.8 billion at March 31, 2022 and $1.6 billion at December 31, 2021 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at March 31, 2022 and December 31, 2021, AFS and HTM securities with an amortized cost of $144.9 million and $162.1 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)
 
2022
   
2021
 
Net (losses) and gains recognized on equity securities
 
$
(183
)
 
$
452
 
Less: Net (losses) and gains recognized on equity securities sold during the period
   
-
     
-
 
Unrealized (losses) and gains recognized on equity securities still held
 
$
(183
)
 
$
452
 

As of March 31, 2022 and December 31, 2021, 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, 2022 and 2021. There were no impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the three months ended March 31, 2022 and 2021.

The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2022:

(In thousands)
 
Amortized
Cost
   
Estimated
Fair Value
 
AFS debt securities:
           
Within one year
 
$
112
   
$
116
 
From one to five years
   
159,032
     
151,684
 
From five to ten years
   
780,821
     
732,172
 
After ten years
   
821,207
     
778,725
 
Total AFS debt securities
 
$
1,761,172
   
$
1,662,697
 
HTM debt securities:
               
Within one year
 
$
103,973
   
$
103,988
 
From one to five years
   
67,047
     
67,061
 
From five to ten years
   
242,804
     
228,349
 
After ten years
   
481,181
     
452,237
 
Total HTM debt securities
 
$
895,005
   
$
851,635
 

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. Government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at March 31, 2022 and December 31, 2021.

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities had been in a continuous unrealized loss position:

 
Less Than 12 Months
   
12 Months or Longer
   
Total
 
(In thousands)
 
Fair
Value
   
Unrealized
Losses
   
Number
of Positions
   
Fair
Value
   
Unrealized
Losses
   
Number
of Positions
   
Fair
Value
   
Unrealized
Losses
   
Number
of Positions
 
As of March 31, 2022
                                                     
AFS securities:
                                                     
U.S. treasury
  $ 117,635     $ (4,809 )     7     $ -     $ -       -     $ 117,635     $ (4,809 )     7  
Federal agency
   
2,586
     
(269
)
   
1
     
223,026
     
(22,564
)
   
15
     
225,612
     
(22,833
)
   
16
 
State & municipal
   
74,201
     
(5,690
)
   
55
     
14,097