Camden National Corporation Reports a 3% Increase in Third Quarter 2019 Earnings Over Last Year

Third Quarter 2019 Net Income of $14.5 Million and Diluted Earnings Per Share of $0.94

Company Release - 10/29/2019 8:30 AM ET

CAMDEN, Maine, Oct. 29, 2019 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a $4.5 billion bank holding company headquartered in Camden, Maine, reported net income for the third quarter of 2019 of $14.5 million, an increase of 3% over the third quarter of 2018, and diluted earnings per share ("EPS") of $0.94, an increase of 4% over the same period. For the third quarter of 2019, the Company's return on average assets was 1.29% and return on average equity was 12.26%.

"We are pleased with our financial results for the third quarter with 3% growth in net income over the third quarter last year, and 7% growth through the first nine months over the same period last year," said Gregory A. Dufour, President and Chief Executive Officer of the Company. "We look to finish 2019 strong to cap off another outstanding year, despite the challenges of a low interest rate environment and inverted yield curve. As we gear up for 2020, we will continue to focus on driving profitable growth and managing our net interest margin to promote the long-term financial success for our Company and shareholders."

In September 2019, Camden National was named to the Sandler O'Neill Sm-All Stars Class of 2019. Camden National was one of 30 publicly traded banks and thrifts—and the only bank headquartered in New England—to be recognized. To earn Sm-All Star status, companies needed to have a market capitalization below $2.5 billion, and were selected based on various financial screening criteria, including growth, profitability, credit quality and capital strength.

"Camden National is thrilled to be selected for the Sandler O'Neill Sm-All Stars from among 394 qualifying financial institutions nationwide," said Dufour. "This recognition is a testament to the success of our measured, balanced approach and to the outstanding dedication of our talented employees."

For the third quarter of 2019, Camden National declared a $0.30 dividend per share, representing an annualized dividend yield of 2.77% as of September 30, 2019.

The Company continues to actively repurchase shares of its common stock through its open share repurchase program. As of October 10, 2019, the Company repurchased 433,953 shares of its common stock, or 56% of its allotted program shares, at a weighted-average share price of $42.47.

FINANCIAL HIGHLIGHTS

  • Third quarter 2019 net income increased 3% over the third quarter of 2018 and 10% over the previous quarter.
  • Third quarter 2019 efficiency ratio, calculated as non-interest expense divided by total revenues1, was 55.67%.
  • Third quarter 2019 average deposits grew 15% over the third quarter of 2018 and 4% over the previous quarter. Average core deposits2 grew 16% over the third quarter of 2018 and 4% over the previous quarter.
  • Third quarter 2019 net interest margin was 3.09% on a fully-taxable basis, a decrease of 5 basis points compared to the third quarter of 2018 and a decrease of 2 basis points compared to the previous quarter.
  • Increased deposit market share for the State of Maine to 11.4% based on the FDIC's June 30, 2019 Summary of Deposits report, retaining our #2 ranking.

FINANCIAL CONDITION

Total assets increased 5% since December 31, 2018, to $4.5 billion at September 30, 2019. Over this period, the loan portfolio grew $84.4 million, or 3%, led by residential real estate loan growth of $69.0 million, or 7%, and commercial loan growth of $30.0 million, or 7%. The commercial real estate loan portfolio decreased $14.0 million, or 1%, since December 31, 2018, due to elevated prepayments. Commercial real estate loan activity continues to be steady within our markets. While we continue to actively review many of these commercial real estate opportunities, we remain disciplined in our lending as we are focused on the Company's long-term success, which includes appropriate credit structures and prudent management of net interest margin in the current environment.

Total deposits increased 4% since December 31, 2018, to $3.6 billion at September 30, 2019, led by checking account growth of 13% and certificates of deposits ("CDs") growth of 22%, while savings and money market balances decreased 3%. In the second half of each year, the Company typically benefits from an increase in seasonal low-cost deposits, and, as a result, checking deposits grew 6% during the third quarter of 2019. The growth in CDs for the nine months ended September 30, 2019, was primarily due to one large depositor shifting $70.0 million of funding from interest checking to CDs in the second quarter of 2019. The Company's loan-to-deposit ratio improved to 86% at September 30, 2019, compared to 87% at December 31, 2018.

The Company's capital position at September 30, 2019 was well in excess of regulatory requirements, including a total risk-based capital ratio of 13.97% and a Tier I leverage ratio of 9.39%. At September 30, 2019, the Company's common equity ratio was 10.43% and tangible common equity ratio3 was 8.44%.

ASSET QUALITY

As of September 30, 2019, the Company's asset quality remained very strong with non-performing assets of $13.5 million, or 0.30% of total assets, and past due loans of $5.8 million, or 0.19% of total loans. Net charge-offs to average loans for the third quarter 2019 increased to 0.16% primarily due to two residential foreclosures impacting the residential mortgage and home equity loan portfolios. Net charge-offs to average loans for the nine months ended September 30, 2019 and 2018 remained consistent at 0.07%.

The provision for credit losses for the third quarter of 2019 was $730,000, or 0.09% of average loans for the quarter on an annualized basis, compared to 0.15% of average loans for the previous quarter and 0.05% of average loans for the third quarter of 2018.

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

Net income for the third quarter of 2019 was $14.5 million, an increase of $431,000, or 3%, over the third quarter of 2018. Diluted EPS for the third quarter of 2019 was $0.94, an increase of $0.04, or 4%, over the third quarter of 2018.

Net interest income for the third quarter of 2019 was $31.9 million, an increase of $1.5 million, or 5%, over the third quarter of 2018.

  • Average loans grew $221.6 million, or 8%, to $3.1 billion.
  • Average deposits grew $440.7 million, or 15%, to $3.3 billion driven by average core deposit2 growth of 16%.
  • Net interest margin decreased 5 basis points to 3.09% as the cost of funds increased 20 basis points, compared to an increase in asset yield of 14 basis points.

Non-interest income for the third quarter of 2019 was $10.7 million, an increase of $347,000, or 3%, over the third quarter of 2018. Non-interest income for the third quarter of 2019 and 2018 represented 25% of total revenues1.

  • Mortgage banking income for the third quarter increased $910,000, or 52%, over the third quarter of 2018 driven by a 49% increase in loans sold between periods and a significant increase in the residential mortgage pipeline between periods.
  • An increase in debit card income of $259,000 driven by an increase in customer transactions.
  • The increase was partially offset by a $663,000 decrease in investment security gains.

Non-interest expense for the third quarter of 2019 was $23.7 million, an increase of $582,000, or 3%. The Company's non-GAAP efficiency ratio3 for the third quarter of 2019 was 55.32%, compared to 57.33% for the third quarter of 2018.

  • Compensation related costs increased $461,000, or 4%, between periods driven by normal merit increases year-over-year and additional employees.
  • Furniture, equipment and data processing costs increased $133,000, or 5%, between periods driven by our continued investment in technology solutions.
  • The increase was partially offset by a decrease in regulatory assessments of $265,000 as the Company received a Small Bank Assessment Credit from the FDIC for its second quarter 2019 fees in the third quarter of 2019. The Company anticipates further assessment fee credits in future quarters should the FDIC Deposit Insurance Fund reserve ratio continue to exceed its regulatory limit.

OPERATING RESULTS (Linked Quarter)

Net income for the third quarter of 2019 increased $1.3 million, or 10%, compared to the previous quarter. Diluted EPS increased $0.09, or 11%, over the same period.

Net interest income for the third quarter of 2019 increased $350,000, or 1%, over last quarter.

  • Average loans grew 1% over the previous quarter.
  • Average deposits grew 4% over the previous quarter driven by average checking account growth between quarters of $74.9 million, or 5%, as we benefit from seasonal deposit inflows.
  • Net interest margin on a fully-taxable equivalent basis between periods decreased 2 basis points between quarters to 3.09% for the third quarter of 2019. The asset yield declined 7 basis points between quarters reflective of the overall interest rate environment, which included (i) two Fed Funds rate cuts in the third quarter of 2019 for a total of 50 basis points and (ii) a decrease in the average 10-year treasury yield between quarters of 48 basis points to 1.86% for the third quarter of 2019. Funding costs decreased 5 basis points to 1.08% between quarters driven by the repricing of indexed deposits and borrowings, and active management of exception pricing.

Non-interest income for the third quarter of 2019 increased $702,000, or 7%, over the last quarter led by a 53% increase in mortgage banking income between quarters driven primarily by seasonality of business within our markets.

Non-interest expense for the third quarter of 2019 decreased $210,000, or 1%, compared to the previous quarter primarily due to a decrease in regulatory assessment fees of $255,000 as a result of the FDIC Small Bank Assessment Credit received in the third quarter of 2019.

CONFERENCE CALL

Camden National will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, October 29, 2019 to discuss its third 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/cac191029.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) is the largest publicly traded bank holding company in Northern New England with $4.5 billion in assets and nearly 650 employees. Camden National Bank, its subsidiary, is a full-service community bank founded in 1875 in Camden, Maine. Dedicated to customers at every stage of their financial journey, the bank offers the latest in digital banking, complemented by personalized service with 61 banking centers, 24/7 live phone support, 71 ATMs, and lending offices in New Hampshire and Massachusetts. Camden National Bank was named one of two "Customer Experience Leaders in U.S. Retail Banking" by Greenwich Associates, and in 2019, it was the only New England based organization included in Sandler O'Neill's "Bank and Thrift Sm-All Star" list of high-performing financial institutions. The Finance Authority of Maine has awarded Camden National Bank as "Lender at Work for Maine" for nine years. Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management. To learn more, visit 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 Revenue is the sum of net interest income and non-interest income.
2 Core deposits include non-interest checking, interest checking, savings and money market deposits.
3 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


At or For The
Nine Months Ended

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


September 30,
2019


June 30,
 2019


September 30,
2018


September 30,
2019


September 30,
2018

Financial Condition Data











Investments


$

926,444



$

933,100



$

887,835



$

926,444



$

887,835


Loans and loans held for sale


3,127,083



3,113,437



2,919,001



3,127,083



2,919,001


Allowance for loan losses


25,688



26,163



23,526



25,688



23,526


Total assets


4,520,315



4,447,038



4,189,745



4,520,315



4,189,745


Deposits


3,617,963



3,591,610



3,220,755



3,617,963



3,220,755


Borrowings


342,459



310,638



479,498



342,459



479,498


Shareholders' equity


471,672



467,759



415,686



471,672



415,686


Operating Data











Net interest income


$

31,923



$

31,573



$

30,423



$

95,391



$

88,806


Provision for credit losses


730



1,173



354



2,647



840


Non-interest income


10,739



10,037



10,392



30,165



28,697


Non-interest expense


23,748



23,958



23,166



70,489



68,365


Income before income tax expense


18,184



16,479



17,295



52,420



48,298


Income tax expense


3,696



3,275



3,238



10,455



9,204


Net income


$

14,488



$

13,204



$

14,057



$

41,965



$

39,094


Key Ratios











Return on average assets


1.29

%


1.21

%


1.34

%


1.28

%


1.27

%

Return on average equity


12.26

%


11.63

%


13.44

%


12.32

%


12.83

%

GAAP efficiency ratio


55.67

%


57.58

%


56.76

%


56.14

%


58.18

%

Common equity ratio


10.43

%


10.52

%


9.92

%


10.43

%


9.92

%

Net interest margin (fully-taxable equivalent)


3.09

%


3.11

%


3.14

%


3.13

%


3.11

%

Non-performing assets to total assets


0.30

%


0.34

%


0.46

%


0.30

%


0.46

%

Tier I leverage capital ratio


9.39

%


9.51

%


9.42

%


9.39

%


9.42

%

Total risk-based capital ratio


13.97

%


14.12

%


14.55

%


13.97

%


14.55

%

Per Share Data











Basic earnings per share


$

0.94



$

0.85



$

0.90



$

2.70



$

2.50


Diluted earnings per share


$

0.94



$

0.85



$

0.90



$

2.70



$

2.50


Cash dividends declared per share


$

0.30



$

0.30



$

0.30



$

0.90



$

0.85


Book value per share


$

30.98



$

30.26



$

26.67



$

30.98



$

26.67


Non-GAAP Measures(1)











Return on average tangible equity


15.67

%


15.00

%


17.84

%


15.89

%


17.15

%

Efficiency ratio


55.32

%


57.27

%


57.33

%


55.82

%


58.14

%

Tangible common equity ratio


8.44

%


8.49

%


7.74

%


8.44

%


7.74

%

Tangible book value per share


$

24.52



$

23.88



$

20.31



$

24.52



$

20.31



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

 

 

Consolidated Statements of Condition Data

(unaudited)




(In thousands, except number of shares)


September 30,
2019


December 31,
2018


September 30,
2018

ASSETS







Cash and due from banks


$

63,620



$

52,240



$

48,124


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


73,912



14,759



50,218


Total cash, cash equivalents and restricted cash


137,532



66,999



98,342


Investments:







Available-for-sale securities, at fair value (book value of $903,988, $933,399 and 
     $905,370, respectively)


913,523



910,692



869,626


Held-to-maturity securities, at amortized cost (fair value of $1,352, $1,291 and $1,267, 
     respectively)


1,303



1,307



1,308


Other investments


11,618



14,679



16,901


Total investments


926,444



926,678



887,835


Loans held for sale, at fair value (book value of $16,630, $4,314 and $10,188, 
     respectively)


16,449



4,403



10,158


Loans:







Commercial real estate


1,255,519



1,269,533



1,215,979


Residential real estate


1,061,898



992,866



941,488


Commercial(1)


445,466



415,436



405,666


Consumer and home equity


347,751



348,387



345,710


Total loans


3,110,634



3,026,222



2,908,843


      Less: allowance for loan losses


(25,688)



(24,712)



(23,526)


       Net loans


3,084,946



3,001,510



2,885,317


Goodwill


94,697



94,697



94,697


Other intangible assets


3,701



4,230



4,411


Bank-owned life insurance


91,729



89,919



89,312


Premises and equipment, net


40,930



42,495



41,277


Deferred tax assets


15,656



23,053



26,241


Other assets


108,231



43,451



52,155


Total assets


$

4,520,315



$

4,297,435



$

4,189,745


LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities







Deposits:







Non-interest checking


$

573,621



$

496,729



$

530,778


Interest checking


1,147,627



1,023,373



966,307


Savings and money market


1,105,290



1,137,356



996,790


Certificates of deposit


541,199



443,912



446,414


Brokered deposits


250,226



363,104



280,466


Total deposits


3,617,963



3,464,474



3,220,755


Short-term borrowings


273,454



270,868



409,732


Long-term borrowings


10,000



11,580



10,738


Subordinated debentures


59,005



59,067



59,028


Accrued interest and other liabilities


88,221



55,621



73,806


Total liabilities


4,048,643



3,861,610



3,774,059


Shareholders' equity


471,672



435,825



415,686


Total liabilities and shareholders' equity


$

4,520,315



$

4,297,435



$

4,189,745



(1) Includes the HPFC loan portfolio.

 

 

Consolidated Statements of Income Data

(unaudited)




For The

Three Months Ended

(In thousands, except per share data)


September 30,
2019


June 30,

2019


September 30,
 2018

Interest Income







Interest and fees on loans


$

36,207



$

36,092



$

32,813


Taxable interest on investments


4,794



4,941



4,408


Nontaxable interest on investments


675



624



659


Dividend income


158



174



367


Other interest income


686



606



310


Total interest income


42,520



42,437



38,557


Interest Expense







Interest on deposits


8,963



9,156



5,255


Interest on borrowings


801



885



2,021


Interest on subordinated debentures


833



823



858


Total interest expense


10,597



10,864



8,134


Net interest income


31,923



31,573



30,423


Provision for credit losses


730



1,173



354


Net interest income after provision for credit losses


31,193



30,400



30,069


Non-Interest Income







Debit card income


2,432



2,281



2,173


Service charges on deposit accounts


1,970



2,209



2,072


Mortgage banking income, net


2,668



1,742



1,758


Income from fiduciary services


1,444



1,545



1,339


Brokerage and insurance commissions


625



732



615


Bank-owned life insurance


613



603



606


Customer loan swap fees


109



285



288


Net gain on sale of securities


1



27



664


Other income


877



613



877


Total non-interest income


10,739



10,037



10,392


Non-Interest Expense







Salaries and employee benefits


13,604



13,461



13,143


Furniture, equipment and data processing


2,708



2,723



2,575


Net occupancy costs


1,710



1,639



1,614


Consulting and professional fees


892



974



958


Debit card expense


960



883



833


Regulatory assessments


182



437



447


Amortization of intangible assets


177



176



182


Other real estate owned and collection costs, net


251



409



239


Other expenses


3,264



3,256



3,175


Total non-interest expense


23,748



23,958



23,166


Income before income tax expense


18,184



16,479



17,295


Income tax expense


3,696



3,275



3,238


Net Income


$

14,488



$

13,204



$

14,057


Per Share Data







Basic earnings per share


$

0.94



$

0.85



$

0.90


Diluted earnings per share


$

0.94



$

0.85



$

0.90


 

 

 

Consolidated Statements of Income Data

(unaudited)



For The

Nine Months Ended
September 30,

(In thousands, except per share data)


2019


2018

Interest Income





Interest and fees on loans


$

108,020



$

94,014


Taxable interest on investments


14,729



13,019


Nontaxable interest on investments


1,943



1,989


Dividend income


562



997


Other interest income


1,712



905


Total interest income


126,966



110,924


Interest Expense





Interest on deposits


26,542



13,463


Interest on borrowings


2,660



6,099


Interest on subordinated debentures


2,373



2,556


Total interest expense


31,575



22,118


Net interest income


95,391



88,806


Provision for credit losses


2,647



840


Net interest income after provision for credit losses


92,744



87,966


Non-Interest Income





Debit card income


6,723



6,228


Service charges on deposit accounts


6,202



6,108


Mortgage banking income, net


5,662



4,758


Income from fiduciary services


4,381



4,029


Brokerage and insurance commissions


1,942



1,950


Bank-owned life insurance


1,810



1,823


Customer loan swap fees


919



555


Net gain on sale of securities


28



695


Other income


2,498



2,551


Total non-interest income


30,165



28,697


Non-Interest Expense





Salaries and employee benefits


40,043



38,433


Furniture, equipment and data processing


8,111



7,710


Net occupancy costs


5,263



5,112


Consulting and professional fees


2,679



2,878


Debit card expense


2,666



2,339


Regulatory assessments


1,091



1,447


Amortization of intangible assets


529



544


Other real estate owned and collection costs, net


353



565


Other expenses


9,754



9,337


Total non-interest expense


70,489



68,365


Income before income tax expense


52,420



48,298


Income tax expense


10,455



9,204


Net Income


$

41,965



$

39,094


Per Share Data





Basic earnings per share


$

2.70



$

2.50


Diluted earnings per share


$

2.70



$

2.50


 

 

Quarterly Average Balance and Yield/Rate Analysis

(unaudited)




Average Balance


Yield/Rate



For The Three Months Ended


For The Three Months Ended

(In thousands)


September 30,
2019


June 30,

2019


September 30,

2018


September 30,
2019


June 30,
2019


September 30,
2018

Assets













Interest-earning assets:













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


$

92,352



$

59,901



$

45,824



2.24

%


2.34

%


1.85

%

Investments - taxable


807,591



839,714



826,541



2.53

%


2.56

%


2.36

%

Investments - nontaxable(1)


98,378



90,087



97,775



3.47

%


3.51

%


3.41

%

Loans(2):













Commercial real estate


1,255,417



1,255,172



1,198,677



4.56

%


4.68

%


4.46

%

Residential real estate


1,062,728



1,032,215



934,029



4.31

%


4.34

%


4.16

%

Commercial(1)


399,689



389,166



351,980



4.65

%


4.72

%


4.56

%

Consumer and home equity


347,405



347,141



344,740



5.38

%


5.47

%


5.16

%

HPFC


25,973



29,472



38,356



8.40

%


7.83

%


7.64

%

Municipal(1)


22,730



20,117



24,603



3.60

%


3.56

%


3.06

%

     Total loans


3,113,942



3,073,283



2,892,385



4.60

%


4.68

%


4.49

%

Total interest-earning assets


4,112,263



4,062,985



3,862,525



4.11

%


4.18

%


3.97

%

Other assets


345,618



315,604



301,489








Total assets


$

4,457,881



$

4,378,589



$

4,164,014





















Liabilities & Shareholders' Equity













Deposits:













Non-interest checking


$

540,542



$

485,724



$

513,680



%


%


%

Interest checking


1,130,632



1,110,567



868,983



0.96

%


1.01

%


0.54

%

Savings


474,096



476,104



483,577



0.08

%


0.09

%


0.06

%

Money market


622,219



581,638



512,650



1.32

%


1.28

%


0.89

%

Certificates of deposit


533,110



516,972



481,059



1.64

%


1.60

%


1.18

%

Total deposits


3,300,599



3,171,005



2,859,949



0.85

%


0.86

%


0.53

%

Borrowings:













Brokered deposits


305,019



370,448



272,471



2.42

%


2.53

%


2.07

%

Customer repurchase agreements


234,362



246,935



244,189



1.26

%


1.30

%


1.08

%

Subordinated debentures


58,998



58,985



59,009



5.60

%


5.60

%


5.77

%

Other borrowings


11,273



15,940



249,341



1.96

%


2.17

%


2.16

%

Total borrowings


609,652



692,308



825,010



2.27

%


2.34

%


2.07

%

Total funding liabilities


3,910,251



3,863,313



3,684,959



1.08

%


1.13

%


0.88

%

Other liabilities


78,710



59,747



64,119








Shareholders' equity


468,920



455,529



414,936








Total liabilities & shareholders' equity


$

4,457,881



$

4,378,589



$

4,164,014








Net interest rate spread (fully-taxable equivalent)


3.03

%


3.05

%


3.09

%

Net interest margin (fully-taxable equivalent)


3.09

%


3.11

%


3.14

%

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


3.05

%


3.07

%


3.09

%



(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 September 30, 2019, June 30, 2019 and September 30, 2018 totaling $409,000, $439,000 and $434,000, respectively.

 

 

 

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

(unaudited)




Average Balance


Yield/Rate



For The Nine Months Ended


For The Nine Months Ended

(In thousands)


September 30,

2019


September 30,

2018


September 30,
2019


September 30,
2018

Assets









Interest-earning assets:









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


$

63,146



$

52,076



2.26

%


1.60

%

Investments - taxable


832,780



829,248



2.55

%


2.30

%

Investments - nontaxable(1)


94,405



98,443



3.47

%


3.41

%

Loans(2):









Commercial real estate


1,263,934



1,183,666



4.66

%


4.34

%

Residential real estate


1,034,609



893,531



4.31

%


4.16

%

Commercial(1)


386,338



351,224



4.69

%


4.42

%

Consumer and home equity


347,201



342,214



5.43

%


4.98

%

HPFC


29,183



41,079



8.03

%


7.82

%

Municipal(1)


19,421



21,318



3.56

%


3.16

%

     Total loans


3,080,686



2,833,032



4.66

%


4.41

%

Total interest-earning assets


4,071,017



3,812,799



4.16

%


3.89

%

Other assets


321,060



296,395






Total assets


$

4,392,077



$

4,109,194















Liabilities & Shareholders' Equity









Deposits:









Non-interest checking


$

505,733



$

477,048



%


%

Interest checking


1,108,999



847,431



0.98

%


0.46

%

Savings


478,573



486,773



0.08

%


0.06

%

Money market


595,659



502,719



1.27

%


0.79

%

Certificates of deposit


498,059



475,336



1.54

%


1.08

%

Total deposits


3,187,023



2,789,307



0.83

%


0.48

%

Borrowings:









Brokered deposits


360,066



250,272



2.49

%


1.86

%

Customer repurchase agreements


239,917



243,037



1.27

%


0.95

%

Subordinated debentures


58,997



58,970



5.38

%


5.80

%

Other borrowings


23,847



302,238



2.17

%


1.93

%

Total borrowings


682,827



854,517



2.30

%


1.90

%

Total funding liabilities


3,869,850



3,643,824



1.09

%


0.81

%

Other liabilities


66,966



57,846






Shareholders' equity


455,261



407,524






Total liabilities & shareholders' equity


$

4,392,077



$

4,109,194






Net interest rate spread (fully-taxable equivalent)


3.07

%


3.08

%

Net interest margin (fully-taxable equivalent)


3.13

%


3.11

%

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


3.09

%


3.06

%



(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 nine months ended September 30, 2019 and September 30, 2018 totaling $1.2 million and $1.6 million, respectively.

 

 


Asset Quality Data

(unaudited)


(In thousands)


At or For The
Nine Months Ended
September 30, 2019


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

Non-accrual loans:











Residential real estate


$

5,152



$

5,566



$

5,415



$

5,492



$

4,720


Commercial real estate


1,156



1,590



975



1,380



5,517


Commercial


751



785



802



1,279



2,402


Consumer and home equity


2,616



3,039



2,476



1,861



1,647


HPFC


450



465



485



518



591


Total non-accrual loans


10,125



11,445



10,153



10,530



14,877


Loans 90 days past due and accruing




14



14



14



14


   Accruing troubled-debt restructured loans not included above


3,259



3,511



3,771



3,893



4,039


Total non-performing loans


13,384



14,970



13,938



14,437



18,930


Other real estate owned


94



130



673



130



185


Total non-performing assets


$

13,478



$

15,100



$

14,611



$

14,567



$

19,115


Loans 30-89 days past due:











Residential real estate


$

1,447



$

2,536



$

2,265



$

4,833



$

3,816


Commercial real estate


2,242



3,378



2,947



2,130



574


Commercial


1,135



1,400



1,205



169



723


Consumer and home equity


822



907



1,430



1,467



902


HPFC


193



171



187



183



1,078


Total loans 30-89 days past due


$

5,839



$

8,392



$

8,034



$

8,782



$

7,093


Allowance for loan losses at the beginning of the period


$

24,712



$

24,712



$

24,712



$

24,171



$

24,171


Provision for loan losses


2,658



1,925



750



845



845


Charge-offs:











Residential real estate


436



25



11



173



231


Commercial real estate


157



65



65



512



512


Commercial


636



453



236



736



448


Consumer and home equity


670



64



24



572



451


HPFC


11







255



209


Total charge-offs


1,910



607



336



2,248



1,851


Total recoveries


(228)



(133)



(75)



(1,944)



(361)


Net charge-offs


1,682



474



261



304



1,490


Allowance for loan losses at the end of the period


$

25,688



$

26,163



$

25,201



$

24,712



$

23,526


Components of allowance for credit losses:











Allowance for loan losses


$

25,688



$

26,163



$

25,201



$

24,712



$

23,526


Liability for unfunded credit commitments


11



14



16



22



15


Allowance for credit losses


$

25,699



$

26,177



$

25,217



$

24,734



$

23,541


Ratios:











Non-performing loans to total loans


0.43

%


0.48

%


0.46

%


0.48

%


0.65

%

Non-performing assets to total assets


0.30

%


0.34

%


0.33

%


0.34

%


0.46

%

Allowance for loan losses to total loans


0.83

%


0.84

%


0.83

%


0.82

%


0.81

%

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











Quarter-to-date


0.16

%


0.03

%


0.03

%


(0.16)

%


0.07

%

Year-to-date


0.07

%


0.03

%


0.03

%


0.01

%


0.07

%

Allowance for loan losses to non-performing loans


191.93

%


174.77

%


180.81

%


171.17

%


124.28

%

Loans 30-89 days past due to total loans


0.19

%


0.27

%


0.26

%


0.29

%


0.24

%

 

 

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










Return on Average Tangible Equity:







For the
Three Months Ended


For the
Nine Months Ended

(In thousands)


September 30,
2019


June 30,

2019


September 30,

2018


September 30,

 2019


September 30,

 2018

Net income, as presented


$

14,488



$

13,204



$

14,057



$

41,965



$

39,094


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


140



139



144



418



430


Net income, adjusted for amortization of 
     intangible assets


$

14,628



$

13,343



$

14,201



$

42,383



$

39,524


Average equity, as presented


$

468,920



$

455,529



$

414,936



$

455,261



$

407,524


Less: average goodwill and other 
     intangible assets


(98,484)



(98,660)



(99,195)



(98,659)



(99,379)


Average tangible equity


$

370,436



$

356,869



$

315,741



$

356,602



$

308,145


Return on average tangible equity


15.67

%


15.00

%


17.84

%


15.89

%


17.15

%

Return on average equity


12.26

%


11.63

%


13.44

%


12.32

%


12.83

%


(1) Assumed a 21% tax rate.




Efficiency Ratio:













For the

Three Months Ended


For the
Nine Months Ended

(In thousands)


September 30,
2019


June 30,

2019


September 30,

2018


September 30,
 2019


September 30,
 2018

Non-interest expense, as presented


$

23,748



$

23,958



$

23,166



$

70,489



$

68,365


Net interest income, as presented


$

31,923



$

31,573



$

30,423



$

95,391



$

88,806


Add: effect of tax-exempt income(1)


264



248



260



752



771


Non-interest income, as presented


10,739



10,037



10,392



30,165



28,697


Less: net gain on sale of securities


(1)



(27)



(664)



(28)



(695)


Adjusted net interest income plus non-
     interest income


$

42,925



$

41,831



$

40,411



$

126,280



$

117,579


GAAP efficiency ratio


55.67

%


57.58

%


56.76

%


56.14

%


58.18

%

Non-GAAP efficiency ratio


55.32

%


57.27

%


57.33

%


55.82

%


58.14

%


(1) Assumed a 21% tax rate.

 

 

Tangible Book Value Per Share and Tangible Common Equity Ratio:




September 30,

2019


June 30,

2019


September 30,

2018

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


Tangible Book Value Per Share:







Shareholders' equity, as presented


$

471,672



$

467,759



$

415,686


Less: goodwill and other intangible assets


(98,398)



(98,574)



(99,108)


Tangible shareholders' equity


$

373,274



$

369,185



$

316,578


Shares outstanding at period end


15,224,903



15,457,480



15,584,526


Book value per share


$

30.98



$

30.26



$

26.67


Tangible book value per share


$

24.52



$

23.88



$

20.31


Tangible Common Equity Ratio:

Total assets


$

4,520,315



$

4,447,038



$

4,189,745


Less: goodwill and other intangibles


(98,398)



(98,574)



(99,108)


Tangible assets


$

4,421,917



$

4,348,464



$

4,090,637


Common equity ratio


10.43

%


10.52

%


9.92

%

Tangible common equity ratio


8.44

%


8.49

%


7.74

%

 

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

 

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