Camden National Corporation Reports an 8% Increase in Second Quarter 2019 Earnings

Second Quarter 2019 Net Income of $13.2 Million and Diluted Earnings Per Share of $0.85

Company Release - 7/30/2019 8:30 AM ET

CAMDEN, Maine, July 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 second quarter of 2019 of $13.2 million, an increase of 8% over the second quarter of 2018, and diluted earnings per share ("EPS") of $0.85, an increase of 9% over the same period. For the second quarter of 2019, the Company's return on average assets was 1.21% and return on average equity was 11.63%.

"We continue to deliver very strong financial performance, highlighted by 10% growth in net income and diluted EPS for the first half of 2019 over the same period last year," said Gregory A. Dufour, President and Chief Executive Officer of the Company. "Over the past 12 months, loans grew 8% and core deposits1 increased 14%, while our net interest margin for the first half of 2019 expanded 4 basis points to 3.14%, compared to the first six months last year."

For the second quarter of 2019, Camden National declared a $0.30 dividend per share, representing an annualized dividend yield of 2.62% as of June 28, 2019 (the last business day of the second quarter).

During the first half of 2019, the Company repurchased 166,778 shares of its common stock at a weighted-average price per share of $42.62.

SECOND QUARTER 2019 FINANCIAL HIGHLIGHTS

  • Net income increased 8% over the second quarter of 2018 and diluted EPS increased 9% over the same period, while net income and diluted EPS both decreased 7% compared to the previous quarter
  • Average loans grew 9% over the second quarter of 2018 and 1% over the previous quarter
  • Average deposits grew 15% over the second quarter of 2018 and 3% over the previous quarter
  • Net interest margin on a fully-taxable basis of 3.11% increased 1 basis point over the second quarter of 2018 and decreased 7 basis points compared to the previous quarter
  • Repurchased 111,221 shares of Camden National common stock in the second quarter of 2019 at a weighted-average price per share of $43.18

FINANCIAL CONDITION

Total assets increased 3% since December 31, 2018 to $4.4 billion at June 30, 2019, which includes loan growth of  $74.1 million, or 2%, during the first half of 2019.

  • The residential real estate loan portfolio grew $42.9 million, or 4%, with 57% of mortgage originations held in the portfolio, and the commercial loan portfolio grew $41.3 million, or 10%, over this same period.
  • The commercial real estate loan portfolio decreased 1% during the first half of 2019, despite very strong commercial real estate loan production, due to elevated loan prepayments. Consumer and home equity loans decreased less than 1% over this same period.

Total deposits increased 4% since December 31, 2018 to $3.6 billion at June 30, 2019. Strong deposit growth in the first half of 2019 drove a 9% decrease in total borrowings and improved the Company's loan-to-deposit ratio to 86% at June 30, 2019, compared to 87% at December 31, 2018.

  • In the first half of 2019, core deposits grew 1% and certificates of deposits ("CDs") grew 23%. In the second quarter of 2019, one large depositor shifted $70.0 million of funding from interest checking to CDs. Adjusted for this shift of funding between deposit accounts, core deposits grew 4% and CDs grew 8% over the first half of 2019.

The Company's capital position at June 30, 2019 was well in excess of regulatory requirements, including a total risk-based capital ratio of 14.12% and a Tier I leverage ratio of 9.51%. At June 30, 2019, the Company's common equity ratio was 10.52% and tangible common equity ratio2 was 8.49%.

ASSET QUALITY

At June 30, 2019, the Company's strong asset quality trend continued from prior periods.

  • At June 30, 2019, the allowance for loan losses was 0.84% of total loans, compared to 0.83% at March 31, 2019 and June 30, 2018.
  • Non-performing assets to total assets at June 30, 2019, was 0.34%, compared to 0.33% at March 31, 2019 and 0.48% at June 30, 2018.
  • Loans past due 30-89 days to total loans at June 30, 2019, were 0.27%, compared to 0.26% at March 31, 2019 and 0.20% at June 30, 2018.
  • Annualized net charge-offs to average loans for the three and six months ended June 30, 2019 were 0.03%, compared to 0.04% and 0.07% for three and six months ended June 30, 2018.

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

Net income for the second quarter of 2019 was $13.2 million, representing an increase of $987,000, or 8%, over the second quarter of 2018. The increase was driven by revenue3 growth of $2.6 million, or 7%, net of an increase in non-interest expense of $1.1 million, or 5%.

Net interest income for the second quarter of 2019 was $31.6 million, an increase of $2.1 million, or 7%, over the same period last year.

  • Average loans for the second quarter of 2019 grew $252.2 million, or 9%, and average core deposits grew $359.6 million, or 16%, over the second quarter of 2018.
  • Net interest margin on a fully-taxable basis increased 1 basis point to 3.11% for the second quarter of 2019 compared to the second quarter of 2018.

Non-interest income increased $536,000, or 6%, to $10.0 million for the second quarter of 2019 over the second quarter of 2018. Most fee income categories increased between categories, including debit card income, services charges on deposit accounts, mortgage banking income, income from fiduciary services and customer loan swap fees.

Non-interest expense increased 5% to $24.0 million for the second quarter of 2019 over the second quarter of 2018.

  • Compensation-related costs increased 6%, data processing costs increased 7% and other real estate and collection costs increased $158,000 between periods.
  • The Company's efficiency ratio calculated in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2019 was 57.58%, compared to 58.73% for the second quarter of 2018. The Company's non-GAAP efficiency ratio2 for the second quarter of 2019 was 57.27%, compared to 58.39% for the same period last year.

The provision for credit losses for the second quarter of 2019 was $1.2 million, or 15 basis points of average loans on an annualized basis, an increase of $190,000 over the second quarter of 2018.

OPERATING RESULTS (Linked Quarter)

Net income for the second quarter of 2019 decreased $1.1 million, or 7%, compared to the first quarter of 2019. The decrease in net income between periods was primarily driven by the increase in non-interest expense of $1.2 million, or 5%.

  • Other real estate and collection costs increased $716,000 between periods driven by one matter that resulted in additional expense of $360,000 in the second quarter of 2019 and the favorable resolution of a matter in the first quarter of 2019 that led to a $378,000 reimbursement of costs.
  • Compensation-related costs increased 4% between periods primarily driven by a full quarter of merit increases that are granted annually in the first quarter.

The provision for credit losses for the second quarter of 2019 increased $429,000 over the last quarter, primarily due to loan growth during the second quarter of 2019 of $57.9 million.

Net interest income for the second quarter of 2019 decreased $322,000, or 1%, compared to last quarter. Average loan and deposit growth for the second quarter of 2019 of 1% and 3%, respectively, over last quarter was offset by an increase in funding costs of 6 basis points and a lower asset yield of 2 basis points over the same period. Net interest margin on a fully-taxable equivalent basis between periods decreased 7 basis points to 3.11% for the second quarter of 2019.

Non-interest income for the second quarter of 2019 increased $648,000, or 7%, over the last quarter. Most fee income categories increased over last quarter, reflective of the seasonality within our markets.

CONFERENCE CALL

Camden National will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, July 30, 2019 to discuss its second 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/cac190730.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. Camden National Bank has received nine "Lender at Work for Maine" Awards from the Finance Authority of Maine and Greenwich Associates named the bank a Customer Experience Leader in U.S. Retail Banking.  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 include non-interest checking, interest checking, savings and money market deposits.

2

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

3

Revenue is the sum of net interest income and non-interest income.

 

 


Selected Financial Data

(unaudited)

 



At or For The

Three Months Ended


At or For The
Six Months Ended

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


June 30,
2019


March 31,
 2019


June 30,
2018


June 30,
2019


June 30,
2018

Financial Condition Data











Investments


$

933,100



$

936,859



$

916,977



$

933,100



$

916,977


Loans and loans held for sale


3,113,437



3,051,237



2,880,185



3,113,437



2,880,185


Allowance for loan losses


26,163



25,201



23,668



26,163



23,668


Total assets


4,447,038



4,421,189



4,192,662



4,447,038



4,192,662


Deposits


3,591,610



3,578,197



3,056,119



3,591,610



3,056,119


Borrowings


310,638



325,159



661,393



310,638



661,393


Shareholders' equity


467,759



453,718



408,819



467,759



408,819


Operating Data











Net interest income


$

31,573



$

31,895



$

29,481



$

63,468



$

58,383


Provision for credit losses


1,173



744



983



1,917



486


Non-interest income


10,037



9,389



9,501



19,426



18,305


Non-interest expense


23,958



22,783



22,895



46,741



45,199


Income before income tax expense


16,479



17,757



15,104



34,236



31,003


Income tax expense


3,275



3,484



2,887



6,759



5,966


Net income


$

13,204



$

14,273



$

12,217



$

27,477



$

25,037


Key Ratios











Return on average assets


1.21

%


1.33

%


1.19

%


1.27

%


1.24

%

Return on average equity


11.63

%


13.13

%


12.10

%


12.36

%


12.50

%

GAAP efficiency ratio


57.58

%


55.19

%


58.73

%


56.39

%


58.94

%

Common equity ratio


10.52

%


10.26

%


9.75

%


10.52

%


9.75

%

Net interest margin (fully-taxable equivalent)


3.11

%


3.18

%


3.10

%


3.14

%


3.10

%

Non-performing assets to total assets


0.34

%


0.33

%


0.48

%


0.34

%


0.48

%

Tier I leverage capital ratio


9.51

%


9.47

%


9.30

%


9.51

%


9.30

%

Total risk-based capital ratio


14.12

%


14.46

%


14.33

%


14.12

%


14.33

%

Per Share Data











Basic earnings per share


$

0.85



$

0.91



$

0.78



$

1.76



$

1.60


Diluted earnings per share


$

0.85



$

0.91



$

0.78



$

1.76



$

1.60


Cash dividends declared per share


$

0.30



$

0.30



$

0.30



$

0.60



$

0.55


Book value per share


$

30.26



$

29.16



$

26.25



$

30.26



$

26.25


Non-GAAP Measures(1)











Return on average tangible equity


15.00

%


17.08

%


16.23

%


16.01

%


16.78

%

Efficiency ratio


57.27

%


54.86

%


58.39

%


56.07

%


58.57

%

Tangible common equity ratio


8.49

%


8.21

%


7.56

%


8.49

%


7.56

%

Tangible book value per share


$

23.88



$

22.81



$

19.87



$

23.88



$

19.87



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

 

 


Consolidated Statements of Condition Data

(unaudited)




(In thousands, except number of shares)


June 30,
2019


December 31,
2018


June 30,
2018

ASSETS







Cash and due from banks


$

48,153



$

52,240



$

49,542


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


38,083



14,759



67,604


Total cash, cash equivalents and restricted cash


86,236



66,999



117,146


Investments:







Available-for-sale securities, at fair value (book value of $915,099, $933,399 and 
     $920,302, respectively)


920,083



910,692



889,325


Held-to-maturity securities, at amortized cost (fair value of $1,335, $1,291 and $1,276, 
     respectively)


1,304



1,307



1,310


Other investments


11,713



14,679



26,342


Total investments


933,100



926,678



916,977


Loans held for sale, at fair value (book value of $13,088, $4,314 and $12,587, 
     respectively)


13,113



4,403



12,656


Loans:







Commercial real estate


1,260,639



1,269,533



1,190,052


Residential real estate


1,035,792



992,866



907,910


Commercial(1)


456,692



415,436



426,390


Consumer and home equity


347,201



348,387



343,177


Total loans


3,100,324



3,026,222



2,867,529


      Less: allowance for loan losses


(26,163)



(24,712)



(23,668)


       Net loans


3,074,161



3,001,510



2,843,861


Goodwill


94,697



94,697



94,697


Other intangible assets


3,877



4,230



4,592


Bank-owned life insurance


91,116



89,919



88,706


Premises and equipment, net


41,402



42,495



41,017


Deferred tax assets


16,836



23,053



25,813


Other assets


92,500



43,451



47,197


Total assets


$

4,447,038



$

4,297,435



$

4,192,662


LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities







Deposits:







Non-interest checking


$

505,355



$

496,729



$

496,368


Interest checking


1,111,424



1,023,373



879,668


Savings and money market


1,074,094



1,137,356



990,408


Certificates of deposit


547,786



443,912



472,215


Brokered deposits


352,951



363,104



217,460


Total deposits


3,591,610



3,464,474



3,056,119


Short-term borrowings


241,647



270,868



591,648


Long-term borrowings


10,000



11,580



10,756


Subordinated debentures


58,991



59,067



58,989


Accrued interest and other liabilities


77,031



55,621



66,331


Total liabilities


3,979,279



3,861,610



3,783,843


Shareholders' equity


467,759



435,825



408,819


Total liabilities and shareholders' equity


$

4,447,038



$

4,297,435



$

4,192,662



(1) Includes the HPFC loan portfolio.

 

 

Consolidated Statements of Income Data

(unaudited)



For The

Three Months Ended

(In thousands, except per share data)


June 30,
2019


March 31,

2019


June 30,

2018

Interest Income







Interest and fees on loans


$

36,092



$

35,721



$

31,367


Taxable interest on investments


4,941



4,994



4,386


Nontaxable interest on investments


624



644



658


Dividend income


174



230



343


Other interest income


606



420



335


Total interest income


42,437



42,009



37,089


Interest Expense







Interest on deposits


9,156



8,423



4,459


Interest on borrowings


885



974



2,298


Interest on subordinated debentures


823



717



851


Total interest expense


10,864



10,114



7,608


Net interest income


31,573



31,895



29,481


Provision for credit losses


1,173



744



983


Net interest income after provision for credit losses


30,400



31,151



28,498


Non-Interest Income







Debit card income


2,281



2,010



2,126


Service charges on deposit accounts


2,209



2,023



2,069


Mortgage banking income, net


1,742



1,252



1,609


Income from fiduciary services


1,545



1,392



1,407


Brokerage and insurance commissions


732



585



685


Bank-owned life insurance


603



594



609


Customer loan swap fees


285



525



180


Net gain on sale of securities


27





31


Other income


613



1,008



785


Total non-interest income


10,037



9,389



9,501


Non-Interest Expense







Salaries and employee benefits


13,461



12,978



12,728


Furniture, equipment and data processing


2,723



2,680



2,549


Net occupancy costs


1,639



1,914



1,625


Consulting and professional fees


974



813



1,116


Debit card expense


883



823



776


Regulatory assessments


437



472



501


Amortization of intangible assets


176



176



181


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


409



(307)



251


Other expenses


3,256



3,234



3,168


Total non-interest expense


23,958



22,783



22,895


Income before income tax expense


16,479



17,757



15,104


Income tax expense


3,275



3,484



2,887


Net Income


$

13,204



$

14,273



$

12,217


Per Share Data







Basic earnings per share


$

0.85



$

0.91



$

0.78


Diluted earnings per share


$

0.85



$

0.91



$

0.78


 

 

 

Consolidated Statements of Income Data

(unaudited)



For The

Six Months Ended
June 30,

(In thousands, except per share data)


2019


2018

Interest Income





Interest and fees on loans


$

71,813



$

61,201


Taxable interest on investments


9,935



8,611


Nontaxable interest on investments


1,268



1,330


Dividend income


404



629


Other interest income


1,026



596


Total interest income


84,446



72,367


Interest Expense





Interest on deposits


17,579



8,208


Interest on borrowings


1,859



4,078


Interest on subordinated debentures


1,540



1,698


Total interest expense


20,978



13,984


Net interest income


63,468



58,383


Provision for credit losses


1,917



486


Net interest income after provision for credit losses


61,551



57,897


Non-Interest Income





Debit card income


4,291



4,055


Service charges on deposit accounts


4,232



4,036


Mortgage banking income, net


2,994



3,000


Income from fiduciary services


2,937



2,690


Brokerage and insurance commissions


1,317



1,335


Bank-owned life insurance


1,197



1,217


Customer loan swap fees


810



267


Net gain on sale of securities


27



31


Other income


1,621



1,674


Total non-interest income


19,426



18,305


Non-Interest Expense





Salaries and employee benefits


26,439



25,290


Furniture, equipment and data processing


5,403



5,135


Net occupancy costs


3,553



3,498


Consulting and professional fees


1,787



1,920


Debit card expense


1,706



1,506


Regulatory assessments


909



1,000


Amortization of intangible assets


352



362


Other real estate owned and collection costs, net


102



326


Other expenses


6,490



6,162


Total non-interest expense


46,741



45,199


Income before income tax expense


34,236



31,003


Income tax expense


6,759



5,966


Net Income


$

27,477



$

25,037


Per Share Data





Basic earnings per share


$

1.76



$

1.60


Diluted earnings per share


$

1.76



$

1.60


 


 

Quarterly Average Balance and Yield/Rate Analysis

(unaudited)




Average Balance


Yield/Rate



For The Three Months Ended


For The Three Months Ended

(In thousands)


June 30,
2019


March 31,

2019


June 30,

2018


June 30,
2019


March 31,

2019


June 30,

2018

Assets













Interest-earning assets:













Interest-bearing deposits in other banks
  and other interest-earning assets


$

59,901



$

29,985



$

58,500



2.34

%


2.63

%


1.57

%

Investments - taxable


839,714



851,516



834,675



2.56

%


2.56

%


2.32

%

Investments - nontaxable(1)


90,087



94,710



98,015



3.51

%


3.44

%


3.40

%

Loans(2):













Commercial real estate


1,255,172



1,281,501



1,180,421



4.68

%


4.73

%


4.35

%

Residential real estate


1,032,215



1,008,285



884,977



4.34

%


4.30

%


4.20

%

Commercial(1)


389,166



369,832



351,711



4.72

%


4.70

%


4.42

%

Consumer and home equity


347,141



347,052



340,782



5.47

%


5.46

%


5.01

%

HPFC


29,472



32,171



41,182



7.83

%


7.91

%


7.80

%

Municipal(1)


20,117



15,333



21,993



3.56

%


3.60

%


3.13

%

     Total loans


3,073,283



3,054,174



2,821,066



4.68

%


4.70

%


4.43

%

Total interest-earning assets


4,062,985



4,030,385



3,812,256



4.18

%


4.20

%


3.90

%

Other assets


315,604



308,064



294,752








Total assets


$

4,378,589



$

4,338,449



$

4,107,008





















Liabilities & Shareholders' Equity













Deposits:













Non-interest checking


$

485,724



$

490,382



$

464,164



%


%


%

Interest checking


1,110,567



1,085,301



839,510



1.01

%


0.98

%


0.47

%

Savings


476,104



485,646



483,192



0.09

%


0.08

%


0.06

%

Money market


581,638



582,685



507,545



1.28

%


1.21

%


0.82

%

Certificates of deposit


516,972



443,107



472,637



1.60

%


1.34

%


1.06

%

Total deposits


3,171,005



3,087,121



2,767,048



0.86

%


0.78

%


0.48

%

Borrowings:













Brokered deposits


370,448



405,837



239,105



2.53

%


2.50

%


1.89

%

Customer repurchase agreements


246,935



238,499



247,789



1.30

%


1.24

%


1.03

%

Subordinated debentures


58,985



59,007



58,970



5.60

%


4.93

%


5.79

%

Other borrowings


15,940



44,711



330,096



2.17

%


2.22

%


2.02

%

Total borrowings


692,308



748,054



875,960



2.34

%


2.27

%


1.96

%

Total funding liabilities


3,863,313



3,835,175



3,643,008



1.13

%


1.07

%


0.84

%

Other liabilities


59,747



62,247



59,126








Shareholders' equity


455,529



441,027



404,874








Total liabilities & shareholders' equity


$

4,378,589



$

4,338,449



$

4,107,008








Net interest rate spread (fully-taxable equivalent)


3.05

%


3.13

%


3.06

%

Net interest margin (fully-taxable equivalent)


3.11

%


3.18

%


3.10

%

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


3.07

%


3.14

%


3.04

%


(1)   Reported on a tax-equivalent basis calculated using the federal corporate income 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 June 30, 2019, March 31, 2019 and June 30, 2018 totaling $439,000, $390,000 and $578,000, 
       respectively.

 

 

Year-to-Date Average Balance and Yield/Rate Analysis

(unaudited)




Average Balance


Yield/Rate



For The Six Months Ended


For The Six Months Ended

(In thousands)


June 30,

2019


June 30,

2018


June 30,

2019


June 30,

2018

Assets









Interest-earning assets:









Interest-bearing deposits in other banks and other interest-earning assets


$

48,301



$

55,254



2.27

%


1.50

%

Investments - taxable


845,583



830,624



2.56

%


2.27

%

Investments - nontaxable(1)


92,386



98,783



3.48

%


3.41

%

Loans(2):









Commercial real estate


1,268,264



1,176,034



4.71

%


4.28

%

Residential real estate


1,020,316



872,947



4.32

%


4.16

%

Commercial(1)


379,552



350,842



4.71

%


4.35

%

Consumer and home equity


347,097



340,929



5.46

%


4.88

%

HPFC


30,814



42,462



7.87

%


7.89

%

Municipal(1)


17,738



19,648



3.58

%


3.22

%

     Total loans


3,063,781



2,802,862



4.69

%


4.37

%

Total interest-earning assets


4,050,051



3,787,523



4.19

%


3.84

%

Other assets


308,579



293,807






Total assets


$

4,358,630



$

4,081,330















Liabilities & Shareholders' Equity









Deposits:









Non-interest checking


$

488,040



$

458,428



%


%

Interest checking


1,098,003



836,477



0.99

%


0.42

%

Savings


480,849



488,397



0.08

%


0.06

%

Money market


582,158



497,670



1.25

%


0.74

%

Certificates of deposit


480,244



472,426



1.48

%


1.03

%

Total deposits


3,129,294



2,753,398



0.82

%


0.45

%

Borrowings:









Brokered deposits


388,045



238,988



2.51

%


1.74

%

Customer repurchase agreements


242,740



242,452



1.27

%


0.88

%

Subordinated debentures


58,996



58,950



5.26

%


5.81

%

Other borrowings


30,237



329,124



2.21

%


1.85

%

Total borrowings


720,018



869,514



2.31

%


1.82

%

Total funding liabilities


3,849,312



3,622,912



1.10

%


0.78

%

Other liabilities


61,000



54,662






Shareholders' equity


448,318



403,756






Total liabilities & shareholders' equity


$

4,358,630



$

4,081,330






Net interest rate spread (fully-taxable equivalent)


3.09

%


3.06

%

Net interest margin (fully-taxable equivalent)


3.14

%


3.10

%

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


3.10

%


3.04

%


(1)   Reported on a tax-equivalent basis calculated using the federal corporate income 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 six months ended June 30, 2019 and June 30, 2018 totaling $829,000 and $1.1 million, respectively.

 

 


Asset Quality Data

(unaudited)


(In thousands)


At or For The
Six Months Ended
June 30, 2019


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

Non-accrual loans:











Residential real estate


$

5,566



$

5,415



$

5,492



$

4,720



$

5,742


Commercial real estate


1,590



975



1,380



5,517



5,600


Commercial


785



802



1,279



2,402



1,934


Consumer and home equity


3,039



2,476



1,861



1,647



1,700


HPFC


465



485



518



591



834


Total non-accrual loans


11,445



10,153



10,530



14,877



15,810


Loans 90 days past due and accruing


14



14



14



14




   Accruing troubled-debt restructured loans not
     included above


3,511



3,771



3,893



4,039



4,000


Total non-performing loans


14,970



13,938



14,437



18,930



19,810


Other real estate owned


130



673



130



185



130


Total non-performing assets


$

15,100



$

14,611



$

14,567



$

19,115



$

19,940


Loans 30-89 days past due:











Residential real estate


$

2,536



$

2,265



$

4,833



$

3,816



$

2,222


Commercial real estate


3,378



2,947



2,130



574



309


Commercial


1,400



1,205



169



723



1,490


Consumer and home equity


907



1,430



1,467



902



1,258


HPFC


171



187



183



1,078



455


Total loans 30-89 days past due


$

8,392



$

8,034



$

8,782



$

7,093



$

5,734


Allowance for loan losses at the beginning of the
  period


$

24,712



$

24,712



$

24,171



$

24,171



$

24,171


Provision for loan losses


1,925



750



845



845



490


Charge-offs:











Residential real estate


25



11



173



231



116


Commercial real estate


65



65



512



512



512


Commercial


453



236



736



448



298


Consumer and home equity


64



24



572



451



266


HPFC






255



209




Total charge-offs


607



336



2,248



1,851



1,192


Total recoveries


(133)



(75)



(1,944)



(361)



(199)


Net charge-offs


474



261



304



1,490



993


Allowance for loan losses at the end of the period


$

26,163



$

25,201



$

24,712



$

23,526



$

23,668


Components of allowance for credit losses:











Allowance for loan losses


$

26,163



$

25,201



$

24,712



$

23,526



$

23,668


Liability for unfunded credit commitments


14



16



22



15



16


Allowance for credit losses


$

26,177



$

25,217



$

24,734



$

23,541



$

23,684


Ratios:











Non-performing loans to total loans


0.48

%


0.46

%


0.48

%


0.65

%


0.69

%

Non-performing assets to total assets


0.34

%


0.33

%


0.34

%


0.46

%


0.48

%

Allowance for loan losses to total loans


0.84

%


0.83

%


0.82

%


0.81

%


0.83

%

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











Quarter-to-date


0.03

%


0.03

%


(0.16)

%


0.07

%


0.04

%

Year-to-date


0.03

%


0.03

%


0.01

%


0.07

%


0.07

%

Allowance for loan losses to non-performing loans


174.77

%


180.81

%


171.17

%


124.28

%


119.48

%

Loans 30-89 days past due to total loans


0.27

%


0.26

%


0.29

%


0.24

%


0.20

%

 

 

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


Return on Average Tangible Equity:







For the
Three Months Ended


For the
Six Months Ended

(In thousands)


June 30,

2019


March 31,

2019


June 30,

2018


June 30,

 2019


June 30,

 2018

Net income, as presented


$

13,204



$

14,273



$

12,217



$

27,477



$

25,037


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


139



139



143



278



286


Net income, adjusted for amortization of 
   intangible assets


$

13,343



$

14,412



$

12,360



$

27,755



$

25,323


Average equity, as presented


$

455,529



$

441,027



$

404,874



$

448,318



$

403,756


Less: average goodwill and other 
   intangible assets


(98,660)



(98,838)



(99,377)



(98,749)



(99,472)


Average tangible equity


$

356,869



$

342,189



$

305,497



$

349,569



$

304,284


Return on average tangible equity


15.00

%


17.08

%


16.23

%


16.01

%


16.78

%

Return on average equity


11.63

%


13.13

%


12.10

%


12.36

%


12.50

%


(1) Assumed a 21% tax rate.


































Efficiency Ratio:













For the

Three Months Ended


For the
Six Months Ended

(In thousands)


June 30,
2019


March 31,

2019


June 30,

2018


June 30,
 2019


June 30,
 2018

Non-interest expense, as presented


$

23,958



$

22,783



$

22,895



$

46,741



$

45,199


Net interest income, as presented


$

31,573



$

31,895



$

29,481



$

63,468



$

58,383


Add: effect of tax-exempt income(1)


248



244



257



491



511


Non-interest income, as presented


10,037



9,389



9,501



19,426



18,305


Less: net gain on sale of securities


(27)





(31)



(27)



(31)


Adjusted net interest income plus non-
   interest income


$

41,831



$

41,528



$

39,208



$

83,358



$

77,168


GAAP efficiency ratio


57.58

%


55.19

%


58.73

%


56.39

%


58.94

%

Non-GAAP efficiency ratio


57.27

%


54.86

%


58.39

%


56.07

%


58.57

%


(1) Assumed a 21% tax rate.

 

 

Tangible Book Value Per Share and Tangible Common Equity Ratio:















June 30,

2019


March 31,

2019


June 30,

2018

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


Tangible Book Value Per Share:







Shareholders' equity, as presented


$

467,759



$

453,718



$

408,819


Less: goodwill and other intangible assets


(98,574)



(98,751)



(99,289)


Tangible shareholders' equity


$

369,185



$

354,967



$

309,530


Shares outstanding at period end


15,457,480



15,560,565



15,576,249


Book value per share


$

30.26



$

29.16



$

26.25


Tangible book value per share


$

23.88



$

22.81



$

19.87


Tangible Common Equity Ratio:

Total assets


$

4,447,038



$

4,421,189



$

4,192,662


Less: goodwill and other intangibles


(98,574)



(98,751)



(99,289)


Tangible assets


$

4,348,464



$

4,322,438



$

4,093,373


Common equity ratio


10.52

%


10.26

%


9.75

%

Tangible common equity ratio


8.49

%


8.21

%


7.56

%

 

www.camdennational.com.  (PRNewsFoto/Camden National Corporation) (PRNewsfoto/Camden National Corporation)

 

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SOURCE Camden National Corporation