Camden National Corporation Reports An 11% Increase In First Quarter 2019 Earnings

Q1 2019 Net Income of $14.3 Million Sets Company Record

Company Release - 4/30/2019 8:30 AM ET

CAMDEN, Maine, April 30, 2019 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a $4.4 billion bank holding company headquartered in Camden, Maine, reported net income for the first quarter of 2019 of $14.3 million and diluted earnings per share ("EPS") of $0.91, representing increases over the first quarter of 2018 of 11%. The Company's return on average assets was 1.33% and return on average equity was 13.13% for the first quarter of 2019.

"We are thrilled to start 2019 on such a strong note, reporting record earnings for the quarter of $14.3 million," said Gregory A. Dufour, President and Chief Executive Officer of the Company. "Our financial results are the culmination of the strategic investments we have made in products, technology and talent, all focused to continuously expand our customer base and enhance the customer experience. These investments have translated into strong loan and deposit growth that includes a 10% increase in average loans and 17% increase in average core deposits1 in the first quarter of 2019 over the first quarter last year."

Dufour added, "In the first quarter of 2019, our net interest margin on a fully-taxable basis reached 3.18%, an increase of 8 basis points over the first quarter last year, as our core deposit growth outpaced loan growth. However, because we are asset sensitive, we anticipate that if interest rates remain at current levels or decrease there will be downward pressure on our net interest margin in future periods as funding costs continue to increase."

For the first quarter of 2019, Camden National declared a $0.30 dividend per share, which represents a $0.05 per share, or 20%, increase over the first quarter of 2018, and a dividend yield of 2.88% as of March 29, 2019 (the last business day of the first quarter).

"In January, we announced a stock repurchase plan of up to 775,000 shares of the Company's common stock. Through April 26, 2019, we repurchased 95,967 shares at an average price of $41.87 per share. We continue to be active in the market and prudently repurchase shares based on our market price," said Dufour.

FIRST QUARTER 2019 FINANCIAL HIGHLIGHTS

  • Net income and diluted EPS increased 11% over the first quarter of 2018 and 2% over last quarter.
  • Loan growth of $16.2 million and deposit growth of $113.7 million since December 31, 2018.
  • Average loan growth of 10% and deposit growth (excluding brokered deposits) of 13% over the first quarter of 2018, and a 3% increase over last quarter.
  • Net interest margin on a fully-taxable basis of 3.18% increased 8 basis points over the first quarter of 2018 and decreased 3 basis points over last quarter.

FINANCIAL CONDITION

Total assets increased 3% since December 31, 2018 to $4.4 billion at March 31, 2019. Loans grew $16.2 million, or less than 1%, over the same period, led by residential real estate loan growth of 2% and commercial loan growth of 2%. Commercial real estate loans decreased 1% over this same period, driven by larger loan prepayment activity that included a $39.2 million payout financed directly by a government-sponsored entity.

Total deposits increased 3% since December 31, 2018 to $3.6 billion at March 31, 2019. Checking balances grew 9% over this period while savings and money market balances decreased 7%. Our core deposit growth in the first quarter of 2019 was primarily driven by our larger commercial deposit relationships. These deposit relationships are subject to more variability in balances due to dependence on business-specific cash flow needs, interest rates and pricing, and other factors. Brokered deposits increased 19% over this same period, as this option provided a more cost efficient source of short-term funding.

At March 31, 2019, our loan-to-deposit ratio improved to 85%, compared to 87% at December 31, 2018 and 92% at March 31, 2018.

The Company's capital position at March 31, 2019 was well in excess of regulatory requirements, including a total risk-based capital ratio of 14.46% and a Tier I leverage ratio of 9.47%. At March 31, 2019, the Company's common equity ratio was 10.26% and tangible common equity ratio2 was 8.21%.

ASSET QUALITY

Asset quality remained strong throughout the first quarter of 2019. At March 31, 2019, non-performing assets to total assets was 0.33%, a decrease of 0.01% since December 31, 2018. Loans past due 30-89 days to total loans improved 0.03% at March 31, 2019 to 0.26%, since year-end.

At March 31, 2019, the allowance for loan losses was 0.83% of total loans and 180.81% of non-performing loans, compared to 0.82% and 171.17%, respectively, at December 31, 2018.

OPERATING RESULTS (First Quarter 2019 vs. First Quarter 2018)

Net income for the first quarter of 2019 was $14.3 million, an increase of $1.5 million, or 11%, over the first quarter of 2018. Over the same period, diluted EPS increased $0.09, or 11%, to $0.91 for the first quarter of 2019.

Net interest income for the first quarter of 2019 was $31.9 million, an increase of $3.0 million, or 10%, over the same period last year. The increase was driven by average loan growth of $269.7 million, or 10%, and strong average core deposit growth of $376.6 million, or 17%, over this period. Net interest margin on a fully-taxable basis increased 8 basis points to 3.18% for the first quarter of 2019 as deposit growth outpaced loan growth resulting in a reduction in borrowings.

The provision for credit losses for the first quarter of 2019 was $744,000, or 10 basis points of average loans for the quarter on an annualized basis, an increase of $1.2 million over the first quarter of 2018. In the first quarter of 2018, a large commercial real estate loan that was previously on non-accrual status was favorably resolved and resulted in a $978,000 release of provision expense for this loan.

Non-interest income for the first quarter of 2019 was $9.4 million, an increase of $585,000, or 7%, over the same period last year. The increase was primarily driven by an increase in customer loan swap fees of $438,000.

Non-interest expense for the first quarter of 2019 was $22.8 million, an increase of $479,000, or 2%, over the same period last year. Compensation-related costs increased 3% over this period primarily due to normal merit increases and an increase in health insurance premiums. Partially offsetting these increases was the recovery of certain collection costs in the first quarter of 2019 that resulted in a net recovery of other real estate and collection costs for the quarter of $307,000. The Company's efficiency ratio calculated in accordance with generally accepted accounting principles ("GAAP") for the first quarter was 55.19%, compared to 59.15% for the same period last year. The Company's non-GAAP efficiency ratio for the first quarter of 2019 was 54.86% compared to 58.76% for the same period last year.

OPERATING RESULTS (Linked Quarter)

Net income for the first quarter of 2019 increased $296,000, or 2%, and diluted EPS increased $0.02, or 2%, compared to the previous quarter. The increase between periods was led by a reduction in non-interest expense of $797,000 and revenue growth of $218,000.

Net interest income for the first quarter of 2019 increased $308,000, or 1%, over the last quarter. The increase was driven by an increase in average loans and deposits of 3%, and was partially offset by a decrease in net interest margin on a fully-taxable basis of 3 basis points to 3.18% for the first quarter of 2019. The decrease in net interest margin on a fully-taxable basis between periods was due to a decrease in fair value mark accretion income of $296,000. Net interest margin on a fully-taxable basis, excluding fair value mark accretion, remained consistent at 3.14% for the first quarter of 2019 and the fourth quarter of 2018.

The provision for credit losses for the first quarter of 2019 increased $737,000 over the last quarter primarily as the Company recorded $1.2 million of net recoveries in the fourth quarter upon the favorable resolution of a large commercial credit relationship.

Non-interest income for the first quarter of 2019 decreased $90,000, or 1%, over the last quarter. The decrease was driven by a decrease in debit card income of $829,000 as debit card activity peaks in the fourth quarter and fourth quarter debit card income includes an annual debit card incentive bonus. This was partially offset by an increase in customer loan swap fees of $124,000 and investment losses of $420,000 recorded in the fourth quarter of 2018.

Non-interest expense for the first quarter of 2019 decreased $797,000, or 3%, over last quarter. The decrease was largely driven by a decrease in other real estate and collection costs of $677,000 between periods as the Company recovered certain collection costs in the first quarter of 2019 that were incurred in prior periods.

ANNUAL MEETING

Camden National has scheduled its annual meeting of shareholders for Tuesday, April 30, 2019, at 3:00 p.m. local time, at Point Lookout Conference Center, The Summit, 67 Atlantic Highway, Northport, Maine 04849. The date for determining the Company's shareholders of record for the annual meeting was February 22, 2019.

CONFERENCE CALL

Camden National will host a conference call and webcast at 1:00 p.m., Eastern Time, on Tuesday, April 30, 2019 to discuss its first quarter 2019 financial results and outlook. Participants should dial in to the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (domestic):     

(888) 349-0139

Live dial-in (international):

(412) 542-4154

Live webcast:                       

https://services.choruscall.com/links/cac190430.html

A link to the live webcast will be available on Camden National's website under "Investor Relations" at www.CamdenNational.com prior to the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ:CAC), headquartered in Camden, Maine, is the largest publicly traded bank holding company in Northern New England with $4.4 billion in assets and nearly 650 employees. Camden National Bank, its subsidiary, is a full-service community bank founded in 1875 that offers an array of consumer and business financial products and services, accompanied by the latest in digital banking technology to empower customers to bank the way they want. The Bank provides personalized service through a network of 60 banking centers, 71 ATMs, and lending offices in New Hampshire and Massachusetts, all complemented by 24/7 live phone support. Greenwich Associates named Camden National Bank a 2018 Greenwich Customer Experience (CX) Leader in U.S. Retail Banking, a designation that recognizes top U.S. banks in customer experience. In 2018, Camden National Bank received the "Lender at Work for Maine" Award from the Finance Authority of Maine. Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management. To learn more, visit www.CamdenNational.com. Member FDIC.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections and other statements, which are subject to numerous risks, assumptions and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; changes in the interest rate environment; changes in general economic conditions; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; changes in the securities markets and other risks and uncertainties disclosed from time to time in in Camden National's Annual Report on Form 10-K for the year ended December 31, 2018, as updated by other filings with the Securities and Exchange Commission ("SEC"). Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures, such as return on average tangible equity; the efficiency and tangible common equity ratios; and tangible book value per share. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliation to the comparable GAAP financial measure can be found in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period, and are presented for illustrative purposes only.

 




1

Core deposits includes non-interest checking, interest checking, savings and money market accounts.



2

This is a non-GAAP measure. Please refer to "Reconciliation of non-GAAP to GAAP Financial Measures" for further details.

 


Selected Financial Data

(unaudited)

 



At or For The

Three Months Ended

(In thousands, except number of shares and per share data)


March 31,
 2019


December 31,
 2018


March 31,
 2018

Financial Condition Data







Investments


$

936,859


$

926,678


$

912,368

Loans and loans held for sale


3,051,237


3,030,625


2,798,696

Allowance for loan losses


25,201


24.712


22,990

Total assets


4,421,189


4,297,435


4,112,176

Deposits


3,578,197


3,464,474


3,025,580

Borrowings


325,159


341,515


622,347

Shareholders' equity


453,718


435,825


403,046

Operating Data







Net interest income


$

31,895


$

31,587


$

28,902

Provision (credit) for credit losses



744


7


(497)

Non-interest income


9,389


9,479


8,804

Non-interest expense



22,783



23,580


22,304

Income before income tax expense


17,757


17,479


15,899

Income tax expense


3,484


3,502


3,079

Net income


$

14,273


$

13,977


$

12,820

Key Ratios







Return on average assets


1.33%


1.32%


1.28%

Return on average equity


13.13%


13.19%


12.91%

Net interest margin (fully-taxable equivalent)


3.18%


3.21%


3.10%

Non-performing loans to total loans


0.46%


0.48%


0.69%

Non-performing assets to total assets


0.33%


0.34%


0.47%

Annualized net charge-offs (recoveries) to average loans


0.03%


(0.16)%


0.10%

Tier I leverage capital ratio


9.47%


9.53%


9.23%

Total risk-based capital ratio


14.46%


14.36%


14.32%

Per Share Data







Basic earnings per share


$

0.91


$

0.90


$

0.82

Diluted earnings per share


$

0.91


$

0.89


$

0.82

Cash dividends declared per share


$

0.30


$

0.30


$

0.25

Book value per share


$

29.16


$

27.95


$

25.89

Weighted average number of common shares outstanding


15,592,141


15,589,310


15,541,975

Diluted weighted average number of common shares outstanding


15,634,126


15,646,540


15,603,380

Non-GAAP Measures(1)







Return on average tangible equity


17.08%


17.43%


17.35%

Efficiency ratio


54.86%


56.50%


58.76%

Tangible common equity ratio


8.21%


8.02%


7.57%

Tangible book value per share


$

22.81


$

21.61


$

19.50



(1)

 Please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."

 


 

Consolidated Statements of Condition Data

(unaudited)




(In thousands, except number of shares)


March 31,
 2019


December 31,
 2018


March 31,
 2018

ASSETS







Cash and due from banks


$

43,722


$

52,240


$

48,159

Interest-bearing deposits in other banks (including restricted cash)



95,846



14,759


76,950

Total cash, cash equivalents and restricted cash


139,568


66,999


125,109

Investments:







Available-for-sale securities, at fair value (book value of $933,135, $933,399 and
$914,335, respectively)


924,311


910,692


887,283

Held-to-maturity securities, at amortized cost (fair value of $1,324, $1,291 and $1,277,
   respectively)


1,306


1,307


1,311

Other investments


11,242


14,679


23,774

Total investments


936,859


926,678


912,368

Loans held for sale, at fair value (book value of $8,711, $4,314 and $9,502, respectively)


8,795


4,403


9,548

Loans:







Commercial real estate


1,258,474


1,269,533


1,169,533

Residential real estate


1,017,442


992,866


860,533

Commercial(1)


421,824


415,436


420,429

Consumer and home equity


344,702


348,387


338,653

Total loans


3,042,442


3,026,222


2,789,148

      Less: allowance for loan losses


(25,201)


(24,712)


(22,990)

       Net loans


3,017,241


3,001,510


2,766,158

Goodwill


94,697


94,697


94,697

Other intangible assets


4,054


4,230


4,774

Bank-owned life insurance


90,513


89,919


88,097

Premises and equipment, net


42,033


42,495


41,545

Deferred tax assets


18,854


23,053


23,457

Other assets


68,575


43,451


46,423

Total assets


$

4,421,189


$

4,297,435


$

4,112,176

LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities







Deposits:







Non-interest checking


$

492,306


$

496,729


$

463,496

Interest checking


1,163,678


1,023,373


840,054

Savings and money market


1,059,897


1,137,356


1,005,329

Certificates of deposit


428,487


443,912


471,155

Brokered deposits


433,829


363,104


245,546

Total deposits


3,578,197


3,464,474


3,025,580

Short-term borrowings


256,181


270,868


552,624

Long-term borrowings


10,000


11,580


10,773

Subordinated debentures


58,978


59,067


58,950

Accrued interest and other liabilities


64,115


55,621


61,203

Total liabilities


3,967,471


3,861,610


3,709,130

Shareholders' equity


453,718


435,825


403,046

Total liabilities and shareholders' equity


$

4,421,189


$

4,297,435


$

4,112,176



(1)

 Includes the HPFC loan portfolio.

 

 

Consolidated Statements of Income Data

(unaudited)



For The

Three Months Ended

(In thousands, except per share data)


March 31,
 2019


December 31,

2018


March 31,

2018

Interest Income







Interest and fees on loans


$

35,721


$

34,532


$

29,834

Taxable interest on investments


4,994


4,708


4,225

Nontaxable interest on investments


644


659


672

Dividend income


230


319


286

Other interest income



420



235


261

Total interest income


42,009


40,453


35,278

Interest Expense







Interest on deposits


8,423


6,650


3,749

Interest on borrowings


974


1,357


1,780

Interest on subordinated debentures


717


859


847

Total interest expense


10,114


8,866


6,376

Net interest income


31,895


31,587


28,902

Provision (credit) for credit losses


744


7


(497)

Net interest income after provision (credit) for credit losses


31,151


31,580


29,399

Non-Interest Income






Service charges on deposit accounts


2,023


2,145


1,967

Debit card income


2,010


2,839


1,929

Income from fiduciary services


1,392


1,347


1,283

Mortgage banking income, net


1,252


1,156


1,391

Bank-owned life insurance


594


607


608

Brokerage and insurance commissions


585


665


650

Customer loan swap fees


525


401


87

Net loss on sale of securities



(420)


Other income


1,008


739


889

Total non-interest income


9,389


9,479


8,804

Non-Interest Expense







Salaries and employee benefits


12,978


13,080


12,562

Furniture, equipment and data processing


2,680


2,649


2,586

Net occupancy costs


1,914


1,764


1,873

Debit card expense


823


841


730

Consulting and professional fees


813


874


804

Regulatory assessments


472


490


499

Amortization of intangible assets


176


181


181

Other real estate owned and collection (recoveries) costs, net


(307)


370


75

Other expenses


3,234


3,331


2,994

Total non-interest expense


22,783


23,580


22,304

Income before income tax expense


17,757


17,479


15,899

Income tax expense


3,484


3,502


3,079

Net Income


$

14,273


$

13,977


$

12,820

Per Share Data







Basic earnings per share


$

0.91


$

0.90


$

0.82

Diluted earnings per share


$

0.91


$

0.89


$

0.82

 

 

Quarterly Average Balance and Yield/Rate Analysis

(unaudited)




Average Balance


Yield/Rate



For The Three Months Ended


For The Three Months Ended

(In thousands)


March 31,
 2019


December 31,

2018


March 31,

2018


March 31,
 2019


December 31,

2018

March 31,

2018

Assets












Interest-earning assets:












Interest-bearing deposits in other banks


$

29,985


$

24,620


$

52,510


2.63%


1.57%

1.40%

Investments - taxable


851,516


830,097


826,529


2.56%


2.49%

2.22%

Investments - nontaxable(1)


94,710


97,192


99,560


3.44%


3.43%

3.42%

Loans(2):












Commercial real estate


1,281,501


1,230,791


1,171,598


4.73%


4.60%

4.20%

Residential real estate


1,008,285


973,124


860,783


4.30%


4.29%

4.12%

Commercial(1)


369,832


364,253


349,963


4.70%


4.50%

4.27%

Consumer and home equity


347,052


346,494


341,078


5.46%


5.36%

4.76%

HPFC


32,171


35,163


43,757


7.91%


7.66%

7.99%

Municipal(1)



15,333



17,520



17,277


3.60%


3.28%



3.33%

     Total loans


3,054,174


2,967,345


2,784,456


4.70%


4.60%



4.30%

Total interest-earning assets


4,030,385


3,919,254


3,763,055


4.20%


4.11%



3.78%

Other assets


308,064


294,178


292,312






Total assets


$

4,338,449


$

4,213,432


$

4,055,367


















Liabilities & Shareholders' Equity












Deposits:












Non-interest checking


$

490,382


$

523,283


$

452,629


—%


—%

—%

Interest checking


1,085,301


995,333


833,410


0.98%


0.76%

0.38%

Savings


485,646


483,651


493,660


0.08%


0.06%

0.06%

Money market


582,685


553,785


487,685


1.21%


1.07%

0.66%

Certificates of deposit


443,107


444,769


472,213


1.34%


1.26%


1.00%

Total deposits


3,087,121


3,000,821


2,739,597


0.78%


0.65%


0.42%

Borrowings:












Brokered deposits


405,837


307,559


238,870


2.50%


2.28%

1.59%

Customer repurchase agreements


238,499


265,675


237,056


1.24%


1.22%

0.72%

Subordinated debentures


59,007


59,048


58,930


4.93%


5.77%

5.83%

Other borrowings


44,711


93,181


328,141


2.22%


2.29%


1.68%

Total borrowings


748,054


725,463


862,997


2.27%


2.18%


1.68%

Total funding liabilities


3,835,175


3,726,284


3,602,594


1.07%


0.94%


0.72%

Other liabilities


62,247


66,805


50,147






Shareholders' equity


441,027


420,343


402,626






Total liabilities & shareholders' equity


$

4,338,449


$

4,213,432


$

4,055,367






Net interest rate spread (fully-taxable equivalent)


3.13%


3.17%


3.06%

Net interest margin (fully-taxable equivalent)


3.18%


3.21%


3.10%

Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection
of previously charged-off acquired loans(3)


3.14%


3.14%


3.04%



(1)

Reported on a tax-equivalent basis calculated using a federal tax rate of 21%, including certain commercial loans.

(2)

Non-accrual loans and loans held for sale are included in total average loans.

(3)

Excludes the impact of the fair value mark accretion on loans and certificates of deposit generated in purchase accounting and collection of previously charged-off acquired loans for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018 totaling $390,000, $686,000 and $558,000, respectively.

 

 

Asset Quality Data

(unaudited)


(In thousands)


At or For The
Three Months Ended
March 31, 2019


At or For The
Year Ended
December 31, 2018


At or For The
Nine Months Ended
September 30, 2018


At or For The
Six Months Ended
June 30, 2018


At or For The
Three Months Ended
March 31, 2018

Non-accrual loans:











Residential real estate


$

5,415


$

5,492


$

4,720


$

5,742


$

6,185

Commercial real estate


975


1,380


5,517


5,600


4,603

Commercial


802


1,279


2,402


1,934


1,991

Consumer and home equity


2,476


1,861


1,647


1,700


1,464

HPFC



485



518



591



834


655

Total non-accrual loans


10,153


10,530


14,877


15,810


14,898

Loans 90 days past due and accruing


14


14


14



 Accruing troubled-debt restructured loans not
    included above


3,771


3,893


4,039


4,000


4,361

Total non-performing loans


13,938


14,437


18,930


19,810


19,259

Other real estate owned


673


130


185


130


130

Total non-performing assets


$

14,611


$

14,567


$

19,115


$

19,940


$

19,389

Loans 30-89 days past due:











Residential real estate


$

2,265


$

4,833


$

3,816


$

2,222


$

2,777

Commercial real estate


2,947


2,130


574


309


1,121

Commercial


1,205


169


723


1,490


243

Consumer and home equity


1,430


1,467


902


1,258


1,190

HPFC


187


183


1,078


455


528

Total loans 30-89 days past due


$

8,034


$

8,782


$

7,093


$

5,734


$

5,859

Allowance for loan losses at the beginning of the 
   period


$

24,712


$

24,171


$

24,171


$

24,171


$

24,171

Provision (credit) for loan losses


750


845


845


490


(500)

Charge-offs:











Residential real estate


11


173


231


116


31

Commercial real estate


65


512


512


512


426

Commercial


236


736


448


298


171

Consumer and home equity


24


572


451


266


175

HPFC



255


209



Total charge-offs


336


2,248


1,851


1,192


803

Total recoveries


(75)


(1,944)


(361)


(199)


(122)

Net charge-offs


261


304


1,490


993


681

Allowance for loan losses at the end of the
   period


$

25,201


$

24,712


$

23,526


$

23,668


$

22,990

Components of allowance for credit losses:











Allowance for loan losses


$

25,201


$

24,712


$

23,526


$

23,668


$

22,990

Liability for unfunded credit commitments


16


22


15


16


23

Allowance for credit losses


$

25,217


$

24,734


$

23,541


$

23,684


$

23,013

Ratios:











Non-performing loans to total loans


0.46%


0.48%


0.65%


0.69%


0.69%

Non-performing assets to total assets


0.33%


0.34%


0.46%


0.48%


0.47%

Allowance for loan losses to total loans


0.83%


0.82%


0.81%


0.83%


0.82%

Net charge-offs (recoveries) to average loans
   (annualized):











Quarter-to-date


0.03%


(0.16)%


0.07%


0.04%


0.10%

Year-to-date


0.03%


0.01%


0.07%


0.07%


0.10%

Allowance for loan losses to non-performing loans


180.81%


171.17%


124.28%


119.48%


119.37%

Loans 30-89 days past due to total loans


0.26%


0.29%


0.24%


0.20%


0.21%

 

 

Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)


Return on Average Tangible Equity:



For the
Three Months Ended

(In thousands)


March 31,

2019


December 31,

2018


March 31,

2018

Net income, as presented


$

14,273


$

13,977


$

12,820

Add: amortization of intangible assets, net of tax(1)



139



143


143

Net income, adjusted for amortization of intangible assets


$

14,412


$

14,120


$

12,963

Average equity, as presented


$

441,027


$

420,343


$

402,626

Less: average goodwill and other intangible assets


(98,838)


(99,015)


(99,568)

Average tangible equity


$

342,189


$

321,328


$

303,058

Return on average equity


13.13%


13.19%


12.91%

Return on average tangible equity


17.08%


17.43%


17.35%

(1) Assumed a 21% tax rate.



Efficiency Ratio:



For the

Three Months Ended

(In thousands)


March 31,
 2019


December 31,

2018


March 31,

2018

Non-interest expense, as presented


$

22,783


$

23,580


$

22,304

Net interest income, as presented


$

31,895


$

31,587


$

28,902

Add: effect of tax-exempt income(1)


244


251


254

Non-interest income, as presented


9,389


9,479


8,804

Add: net loss on sale of securities



420


Adjusted net interest income plus non-interest income


$

41,528


$

41,737


$

37,960

GAAP efficiency ratio


55.19%


57.42%


59.15%

Non-GAAP efficiency ratio


54.86%


56.50%


58.76%

(1) Assumed a 21% tax rate.



Tangible Book Value Per Share and Tangible Common Equity Ratio:



March 31,

2019


December 31,

2018


March 31,

2018

(In thousands, except number of shares and per share data)


Tangible Book Value Per Share:







Shareholders' equity, as presented


$

453,718


$

435,825


$

403,046

Less: goodwill and other intangible assets



(98,751)



(98,927)


(99,471)

Tangible shareholders' equity


$

354,967


$

336,898


$

303,575

Shares outstanding at period end


15,560,565


15,591,914


15,565,868

Tangible book value per share


$

22.81


$

21.61


$

19.50

Book value per share


$

29.16


$

27.95


$

25.89

Tangible Common Equity Ratio:

Total assets


$

4,421,189


$

4,297,435


$

4,112,176

Less: goodwill and other intangibles


(98,751)


(98,927)


(99,471)

Tangible assets


$

4,322,438


$

4,198,508


$

4,012,705

Common equity ratio


10.26%


10.14%


9.80%

Tangible common equity ratio


8.21%


8.02%


7.57%

 

 

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SOURCE Camden National Corporation