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

CAMDEN, Maine, Oct. 29, 2019 /PRNewswire/ -- Camden National Corporation 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 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)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/camden-national-corporation-reports-a-3-increase-in-third-quarter-2019-earnings-over-last-year-300946496.html

SOURCE Camden National Corporation

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