CAMDEN NATIONAL CORPORATION CAMDEN, Maine, Oct. 31, 2017 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a $4.0 billion bank holding company headquartered in Camden, Maine, reported net income for the third quarter of 2017 of $11.3 million and diluted earnings per share ("EPS") of $0.72 per share, representing increases over the third quarter of 2016 of 4% and 3%, respectively.
For the nine months ended September 30, 2017, the Company reported net income of $31.6 million and diluted EPS of $2.02 per share, representing increases over the same period last year of 9% and 7%, respectively. For the nine months ended September 30, 2017, the Company reported a return on average assets of 1.07%, a return on average tangible equity (non-GAAP) of 14.40% and an efficiency ratio (non-GAAP) of 56.80%.
"We are extremely pleased to report another quarter with great results," said Gregory A. Dufour, President and Chief Executive Officer of Camden National. "We're seeing the benefits of our investments in people and technology over the past 18 months as Camden National moved up to #2 in deposit market share rankings in the State of Maine, which is the highest of any Maine headquartered bank. We recently enhanced our online treasury management platform, TreasuryLink (SM), to expand the depth of our product capabilities for corporate customers. This powerful tool has been instrumental as we onboard several new large deposit relationships, as they now have simple, secure and customizable access to all their banking needs."
Dufour added, "We announced in September two great additions to our senior management team at Camden National -- Patricia "Trish" Rose was named Executive Vice President of Retail and Mortgage Banking and Jennifer Mirabile was named Managing Director of Camden National Wealth Management. Both Trish and Jennifer join Camden National with significant backgrounds and experience within their respective industries and we're excited to have them join our team."
During the quarter, Lawrence "Larry" Sterrs was named chair of the Board of Directors of Camden National Corporation and Camden National Bank as the previous chair, Karen Stanley, reached the Company's mandatory retirement age for directors. "Larry is a seasoned business executive with great experience in board governance and strategic planning," said Dufour. "We are also grateful for the superb leadership Karen provided the Company for the past 10 years."
THIRD QUARTER 2017 FINANCIAL HIGHLIGHTS
-- Third quarter 2017 return on average assets was 1.12% and return on
average tangible equity (non-GAAP) was 14.85%.
-- Third quarter 2017 efficiency ratio (non-GAAP) was 55.72%.
-- Loan growth was flat during the quarter with year-to-date loan growth of
6%.
FINANCIAL CONDITION
Total assets were $4.0 billion at September 30, 2017, representing an increase of $175.7 million since December 31, 2016. Total loans grew $153.7 million, or 6%, and investment securities increased $18.3 million over the same period last year. On the funding side, total deposits grew $127.9 million, or 5%, while borrowings increased $8.9 million since December 31, 2016.
During the third quarter of 2017, loan balances increased $12.0 million with growth centered in residential mortgages. Year-to-date residential mortgage originations totaled $302.2 million with 51% of the production designated for sale. The Company's focus on low cost deposits has translated into solid growth in average demand and interest checking balance of $41.3 million, or 4%, for the third quarter of 2017 compared to the same period last year.
The Company's asset quality ratios improved in the third quarter of 2017 with the resolution of a large commercial real estate relationship. Non-performing assets decreased $10.8 million in the third quarter of 2017 to $20.1 million at September 30, 2017. Non-performing assets at September 30, 2017 were 0.50% of total assets compared to 0.67% at December 31, 2016. Net charge-offs remained minimal with an annualized net charge-off ratio of 0.07% year-to-date.
Total shareholders' equity at September 30, 2017 increased 6% to $414.4 million since December 31, 2016. The Company's capital position remains in excess of regulatory requirements for "well capitalized" status with a total risk-based capital ratio of 14.09%.
FINANCIAL OPERATING RESULTS (linked quarter)
Net income for the third quarter of 2017 was $11.3 million, representing an increase over the second quarter of 2017 of $1.1 million, or 11%. The increase was driven by an increase in revenues (net interest income and non-interest income) of $945,000, a decrease in provision for credit losses of $584,000 and a decrease in non-interest expense of $333,000. The major changes between the third quarter and second quarter of 2017 include:
-- A 2% increase in net interest income primarily due to an increase in
average loan balances of $66.9 million, or 2%, which was driven by
strong second quarter 2017 loan growth combined with a stable net
interest margin of 3.19% for each quarter.
-- A 4% increase in non-interest income to $10.3 million primarily due to
the sale of several small lot investment positions totaling $19.4
million in balances that resulted in gains of $827,000 and an increase
in mortgage banking income of $139,000. These were partially offset by a
decrease of $646,000 in fee income generated from the back-to-back
commercial loan swap program.
-- A 42% decrease in provision for credit losses to $817,000 due to an
improvement in asset quality with non-performing loans to total loans
declining 40 basis points between quarters as well as the incremental
provision necessary in the second quarter due to strong loan volume.
-- A 2% decrease in non-interest expense with a number of expense areas
trending lower during the quarter driving the efficiency ratio
(non-GAAP) to 55.72%.
-- An increase in the effective income tax rate to 32.6%, compared to 31.6%
last quarter. The increase in the effective income tax rate was driven
by the Company's change in its estimated annual effective tax rate for
calendar year 2017 due to an increase in estimated state
income/franchise taxes as its business outside of Maine expands and a
lower mix of tax-exempt income as a percentage of pre-tax income.
FINANCIAL OPERATING RESULTS (third quarter 2017 compared to third quarter 2016)
Net income for the third quarter of 2017 increased $436,000, or 4%, over the third quarter of 2016. The increase was driven by a decrease in provision for credit losses of $462,000, a decrease in non-interest expense of $324,000 and an increase in revenues of $86,000. The major changes between the third quarter of 2017 and third quarter of 2016 include:
-- A 36% decrease in provision for credit losses driven by lower net
charge-offs and improved asset quality.
-- A 1% decrease in non-interest expense driven by a decline in collection
costs of $619,000 as the Company exited a significant sub-servicer
relationship on December 31, 2016 and no longer incurs related costs.
-- A $788,000, or 3%, increase in net interest income driven by average
loan growth of 6%, partially offset by a decrease in the net interest
margin of 5 basis points due to a decline in fair value mark accretion
and collections on previously charged-off acquired loans. Excluding this
non-core income, the Company's net interest margin for the third quarter
of 2017 was 3.11% compared to 3.10% for the third quarter of 2016.
-- A $702,000, or 6%, decrease in non-interest income driven by (i)
one-time legal proceeds of $638,000 received in the third quarter of
2016; (ii) a decrease in fee income generated from the back-to-back
commercial loan swap program of $426,000; (iii) a decrease in mortgage
banking income of $331,000; and (iv) a decrease in income from the
exiting of a significant sub-servicer relationship. These were partially
offset by gains on investment securities in the third quarter of 2017
and an increase in debit card income.
CONFERENCE CALL
Camden National will host a conference call and webcast at 3:30 p.m. eastern time on October 31, 2017 to discuss its third quarter 2017 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: http://services.choruscall.com/links/cac171031.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 $4.0 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. Camden National Bank provides personalized service through a network of 60 banking centers, 76 ATMs, and lending offices in New Hampshire and Massachusetts, all complemented by 24/7 live phone support. 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, 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, 2016, 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 the efficiency, and tangible common equity ratios; return on average tangible equity; tangible book value per share; and tax-equivalent net interest income. Management believes these non-GAAP financial measures help investors in understanding 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.
Selected Financial Data (unaudited)
At or For The At or For The
Nine Months Ended
Three Months Ended
(In thousands, except number of shares and per share September 30, June 30, September 30, September 30, September 30,
data) 2017 2017 2016 2017 2016
---- ---- ---- ---- ---- ----
Financial Condition Data
Investments $916,018 $932,338 $906,286 $916,018 $906,286
Loans and loans held for sale 2,761,287 2,747,053 2,616,653 2,761,287 2,616,653
Allowance for loan losses 24,413 24,394 23,290 24,413 23,290
Total assets 4,039,943 4,036,367 3,903,966 4,039,943 3,903,966
Deposits 2,956,413 2,940,866 2,889,225 2,956,413 2,889,225
Borrowings 608,607 641,662 559,273 608,607 559,273
Shareholders' equity 414,366 406,960 393,181 414,366 393,181
Operating Data
Net interest income $29,160 $28,626 $28,372 $85,641 $84,828
Provision for credit losses 817 1,401 1,279 2,797 5,003
Non-interest income 10,299 9,888 11,001 28,759 29,470
Non-interest expense 21,825 22,158 22,149 65,411 67,388
------
Income before income tax expense 16,817 14,955 15,945 46,192 41,907
Income tax expense 5,478 4,721 5,042 14,543 12,742
------
Net income $11,339 $10,234 $10,903 $31,649 $29,165
======= ======= ======= ======= =======
Key Ratios
Return on average assets 1.12% 1.03% 1.11% 1.07% 1.02%
Return on average equity 10.93% 10.17% 11.18% 10.49% 10.29%
Net interest margin 3.19% 3.19% 3.24% 3.19% 3.31%
Non-performing loans to total loans 0.72% 1.12% 0.98% 0.72% 0.98%
Non-performing assets to total assets 0.50% 0.77% 0.67% 0.50% 0.67%
Annualized net charge-offs to average loans 0.11% 0.11% 0.26% 0.07% 0.15%
Tier I leverage capital ratio 9.01% 8.92% 8.48% 9.01% 8.48%
Total risk-based capital ratio 14.09% 13.87% 13.60% 14.09% 13.60%
Per Share Data
Basic earnings per share $0.72 $0.66 $0.70 $2.03 $1.88
Diluted earnings per share $0.72 $0.66 $0.70 $2.02 $1.88
Cash dividends declared per share $0.23 $0.23 $0.20 $0.69 $0.60
Book value per share $26.71 $26.23 $25.47 $26.71 $25.47
Weighted average number of common shares outstanding 15,515,189 15,512,761 15,425,452 15,505,698 15,410,310
Diluted weighted average number of common shares outstanding 15,589,008 15,586,571 15,507,561 15,580,072 15,483,320
Non-GAAP Measures(1)
Return on average tangible equity 14.85% 13.96% 15.61% 14.40% 14.59%
Tangible common equity ratio 7.98% 7.79% 7.66% 7.98% 7.66%
Efficiency ratio 55.72% 56.76% 55.39% 56.80% 57.40%
Tangible book value per share $20.26 $19.75 $18.87 $20.26 $18.87
(1) Please see "Reconciliation of non-
GAAP to GAAP Financial Measures."
Consolidated Statements of Condition Data (unaudited)
(In thousands, except number of shares) September 30, December 31, September 30,
2017 2016
2016
--- ----
ASSETS
Cash and due from banks $89,435 $87,707 $99,458
Investments:
Available-for-sale securities, at fair value 797,251 779,867 788,880
Held-to-maturity securities, at amortized cost 94,207 94,609 94,205
Federal Home Loan Bank and Federal Reserve Bank stock, at cost 24,560 23,203 23,201
------
Total investments 916,018 897,679 906,286
Loans held for sale, at fair value 12,997 14,836 24,644
Loans:
Residential real estate 852,851 802,494 797,036
Commercial real estate 1,131,883 1,050,780 1,054,307
Commercial(1) 417,105 394,051 390,155
Consumer and home equity 346,451 347,239 350,511
Total loans 2,748,290 2,594,564 2,592,009
Less: allowance for loan losses (24,413) (23,116) (23,290)
Net loans 2,723,877 2,571,448 2,568,719
Goodwill 94,697 94,697 94,697
Other intangible assets 5,347 6,764 7,240
Bank-owned life insurance 86,869 78,119 77,937
Premises and equipment, net 42,422 42,873 43,934
Deferred tax assets 36,344 39,263 34,632
Other assets 31,937 30,844 46,419
------ ------ ------
Total assets $4,039,943 $3,864,230 $3,903,966
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Demand $476,386 $406,934 $427,349
Interest checking 758,568 701,494 763,710
Savings and money market 976,246 979,263 979,085
Certificates of deposit 498,965 468,203 489,856
Brokered deposits 246,248 272,635 229,225
-------
Total deposits 2,956,413 2,828,529 2,889,225
Short-term borrowings 538,997 530,129 489,749
Long-term borrowings 10,738 10,791 10,808
Subordinated debentures 58,872 58,755 58,716
Accrued interest and other liabilities 60,557 44,479 62,287
------ ------ ------
Total liabilities 3,625,577 3,472,683 3,510,785
--------- --------- ---------
Shareholders' equity 414,366 391,547 393,181
------- ------- -------
Total liabilities and shareholders' equity $4,039,943 $3,864,230 $3,903,966
========== ========== ==========
(1) Includes the Healthcare
Professional Funding
Corporation ("HPFC") loan
portfolio.
Consolidated Statements of Income Data (unaudited)
For The
Three Months Ended
(In thousands, except per share data) September 30, June 30, September 30,
2017
2017 2016
--- ---- ----
Interest Income
Interest and fees on loans $29,350 $28,423 $27,395
Interest on U.S. government and sponsored enterprise obligations 4,177 4,355 4,049
Interest on state and political subdivision obligations 686 691 702
Interest on federal funds sold and other investments 497 471 448
--- --- ---
Total interest income 34,710 33,940 32,594
------ ------ ------
Interest Expense
Interest on deposits 3,027 2,987 2,204
Interest on borrowings 1,665 1,476 1,161
Interest on subordinated debentures 858 851 857
--- --- ---
Total interest expense 5,550 5,314 4,222
----- ----- -----
Net interest income 29,160 28,626 28,372
Provision for credit losses 817 1,401 1,279
--- ----- -----
Net interest income after provision for credit losses 28,343 27,225 27,093
------ ------ ------
Non-Interest Income
Debit card income 2,061 1,992 1,894
Service charges on deposit accounts 1,852 1,957 1,799
Mortgage banking income, net 2,076 1,937 2,407
Income from fiduciary services 1,229 1,355 1,225
Bank-owned life insurance 603 570 585
Brokerage and insurance commissions 600 548 594
Other service charges and fees 589 501 591
Net gain on sale of securities 827 - -
Other income 462 1,028 1,906
--- ----- -----
Total non-interest income 10,299 9,888 11,001
------ ----- ------
Non-Interest Expense
Salaries and employee benefits 12,359 12,376 12,044
Furniture, equipment and data processing 2,429 2,450 2,349
Net occupancy costs 1,599 1,689 1,685
Consulting and professional fees 714 853 742
Debit card expense 662 712 669
Regulatory assessments 574 488 667
Amortization of intangible assets 473 472 475
Other real estate owned and collection costs, net 258 344 877
Merger and acquisition costs - - 45
Other expenses 2,757 2,774 2,596
----- ----- -----
Total non-interest expense 21,825 22,158 22,149
------ ------ ------
Income before income tax expense 16,817 14,955 15,945
Income tax expense 5,478 4,721 5,042
----- ----- -----
Net Income $11,339 $10,234 $10,903
======= ======= =======
Per Share Data
Basic earnings per share $0.72 $0.66 $0.70
Diluted earnings per share $0.72 $0.66 $0.70
Consolidated Statements of Income Data (unaudited)
For The
Nine Months Ended
September 30,
(In thousands, except per share
data) 2017 2016
------------------------------- ---- ----
Interest Income
Interest and fees on loans $84,835 $82,117
Interest on U.S. government and
sponsored enterprise obligations 12,788 12,055
Interest on state and political
subdivision obligations 2,079 2,127
Interest on federal funds sold and
other investments 1,362 1,051
----- -----
Total interest income 101,064 97,350
------- ------
Interest Expense
Interest on deposits 8,568 6,355
Interest on borrowings 4,302 3,610
Interest on junior subordinated
debentures 2,553 2,557
----- -----
Total interest expense 15,423 12,522
------ ------
Net interest income 85,641 84,828
Provision for credit losses 2,797 5,003
----- -----
Net interest income after provision
for credit losses 82,844 79,825
------ ------
Non-Interest Income
Debit card income 5,887 5,650
Service charges on deposit accounts 5,632 5,356
Mortgage banking income, net 5,566 4,921
Income from fiduciary services 3,831 3,736
Bank-owned life insurance 1,750 1,899
Brokerage and insurance commissions 1,601 1,569
Other service charges and fees 1,558 1,494
Net gain on sale of securities 827 4
Other income 2,107 4,841
----- -----
Total non-interest income 28,759 29,470
------ ------
Non-Interest Expense
Salaries and employee benefits 36,882 35,634
Furniture, equipment and data
processing 7,204 7,157
Net occupancy costs 5,234 5,352
Consulting and professional fees 2,412 2,609
Debit card expense 2,034 2,107
Regulatory assessments 1,607 2,162
Amortization of intangible assets 1,417 1,427
Other real estate owned and
collection costs 558 2,029
Merger and acquisition costs - 866
Other expenses 8,063 8,045
----- -----
Total non-interest expense 65,411 67,388
------ ------
Income before income tax expense 46,192 41,907
Income tax expense 14,543 12,742
------ ------
Net Income $31,649 $29,165
======= =======
Per Share Data
Basic earnings per share $2.03 $1.88
Diluted earnings per share $2.02 $1.88
Quarterly Average Balance and Yield/Rate Analysis (unaudited)
For The Three Months Ended
Average Balance Yield/Rate
(In thousands) September 30, June 30, September 30, September June 30, September
2017 2016 30, 2017 30, 2016
2017 2017
--- ---- ----
Assets
Interest-earning assets:
Securities - taxable $819,778 $843,370 $810,747 2.28% 2.29% 2.22%
Securities - nontaxable(1) 101,507 101,807 103,657 4.16% 4.17% 4.17%
Loans(2)(3):
Residential real estate 851,828 826,353 824,985 4.09% 4.12% 4.20%
Commercial real estate 1,136,851 1,114,508 1,031,674 4.07% 4.05% 3.94%
Commercial(1) 347,469 334,761 307,184 4.18% 4.23% 3.89%
Municipal(1) 24,847 18,268 24,628 3.24% 3.42% 2.66%
Consumer and home equity 345,533 341,544 355,144 4.58% 4.36% 4.32%
HPFC 49,619 53,843 68,334 8.38% 8.78% 8.13%
---- ---- ----
Total loans 2,756,147 2,689,277 2,611,949 4.23% 4.23% 4.17%
--------- --------- ---------
Total interest-earning assets 3,677,432 3,634,454 3,526,353 3.79% 3.77% 3.72%
--------- --------- --------- ==== ==== ====
Other assets 352,711 344,945 387,833
------- ------- -------
Total assets $4,030,143 $3,979,399 $3,914,186
========== ========== ==========
Liabilities & Shareholders' Equity
Deposits:
Demand $450,350 $392,789 $415,558 - % - % - %
Interest checking 727,959 732,096 721,459 0.19% 0.18% 0.14%
Savings 493,447 489,408 466,113 0.07% 0.06% 0.06%
Money market 469,458 477,734 488,793 0.53% 0.49% 0.43%
Certificates of deposit(3) 454,013 456,933 486,698 0.83% 0.92% 0.79%
------- ------- ------- ---- ---- ----
Total deposits 2,595,227 2,548,960 2,578,621 0.31% 0.32% 0.28%
--------- --------- --------- ---- ---- ----
Borrowings:
Brokered deposits 310,207 349,762 239,975 1.30% 1.08% 0.63%
Customer repurchase agreements 222,386 232,295 189,539 0.51% 0.49% 0.29%
Subordinated debentures 58,853 58,814 58,697 5.78% 5.80% 5.81%
Other borrowings 386,643 345,155 396,828 1.42% 1.38% 1.02%
------- ------- ------- ---- ---- ----
Total borrowings 978,089 986,026 885,039 1.43% 1.33% 1.08%
Total funding liabilities 3,573,316 3,534,986 3,463,660 0.62% 0.60% 0.49%
--------- --------- --------- ==== ==== ====
Other liabilities 45,330 40,790 62,554
Shareholders' equity 411,497 403,623 387,972
Total liabilities & Shareholders' Equity $4,030,143 $3,979,399 $3,914,186
========== ========== ==========
Net interest rate spread (fully-taxable equivalent) 3.17% 3.17% 3.23%
==== ==== ====
Net interest margin (fully-taxable equivalent) 3.19% 3.19% 3.24%
==== ==== ====
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) 3.11% 3.09% 3.10%
==== ==== ====
(1) Reported on tax-equivalent basis calculated using a tax rate of 35%, 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 CDs generated in purchase accounting and collection of previously charged-off acquired loans
for the three months ended September 30, 2017, June 30, 2017 and September 30, 2016 totaling $804,000, $861,000 and $1.2 million, respectively.
Year-To-Date Average Balance and Yield/Rate Analysis (unaudited)
For The Nine Months Ended
Average Balance Yield/Rate
(In thousands) September 30, September 30, September 30, September 30,
2017 2016 2017 2016
--- ---- ---- ---- ----
Assets
Interest-earning assets:
Securities - taxable $832,054 $798,054 2.27% 2.19%
Securities - nontaxable(1) 102,075 102,812 4.18% 4.24%
Loans(2)(3):
Residential real estate 831,072 825,660 4.10% 4.18%
Commercial real estate 1,109,386 988,329 4.02% 4.08%
Commercial(1) 334,247 290,459 4.17% 4.21%
Municipal(1) 19,761 18,655 3.34% 3.00%
Consumer and home equity 343,294 361,085 4.42% 4.22%
HPFC 53,873 72,380 8.50% 8.75%
---- ----
Total loans 2,691,633 2,556,568 4.20% 4.27%
--------- --------- ---- ----
Total interest-earning assets 3,625,762 3,457,434 3.76% 3.79%
--------- --------- ==== ====
Other assets 345,827 370,692
------- -------
Total assets $3,971,589 $3,828,126
========== ==========
Liabilities & Shareholders' Equity
Deposits:
Demand $411,818 $372,131 - % - %
Interest checking 725,705 722,764 0.18% 0.12%
Savings 490,648 455,134 0.06% 0.06%
Money market 476,983 485,611 0.49% 0.42%
Certificates of deposit(3) 458,208 492,892 0.88% 0.77%
------- ------- ---- ----
Total deposits 2,563,362 2,528,532 0.31% 0.28%
--------- --------- ---- ----
Borrowings:
Brokered deposits 322,860 216,589 1.09% 0.70%
Customer repurchase agreements 225,426 188,124 0.44% 0.27%
Junior subordinated debentures 58,814 58,712 5.80% 5.82%
Other borrowings 354,443 402,121 1.34% 1.07%
------- ------- ---- ----
Total borrowings 961,543 865,546 1.32% 1.13%
------- ------- ---- ----
Total funding liabilities 3,524,905 3,394,078 0.58% 0.49%
--------- --------- ==== ====
Other liabilities 43,489 55,401
Shareholders' equity 403,195 378,647
------- -------
Total liabilities & shareholders' equity $3,971,589 $3,828,126
========== ==========
Net interest rate spread (fully-taxable equivalent) 3.18% 3.30%
==== ====
Net interest margin (fully-taxable equivalent) 3.19% 3.31%
==== ====
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) 3.10% 3.11%
==== ====
(1) Reported on tax-equivalent basis calculated using a tax rate of 35%, 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 CDs generated in purchase accounting and collection of
previously charged-off acquired loans for the nine months ended September 30, 2017 and 2016 totaling $2.5 million and
$5.2 million, respectively.
Asset Quality Data (unaudited)
(In thousands) At or For The At or For The At or For The At or For The At or For The
Nine Months Ended Six Months Ended Three Months Ended Year Ended Nine Months Ended
September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016
--- ------------------ ------------- -------------- ----------------- ------------------
Non-accrual loans:
Residential real estate $4,465 $4,890 $4,105 $3,945 $3,986
Commercial real estate 5,887 16,291 12,858 12,849 12,917
Commercial 1,830 2,056 1,994 2,088 2,259
Consumer 1,626 1,371 1,552 1,624 1,650
HPFC 838 1,083 1,014 207 216
Total non-accrual loans 14,646 25,691 21,523 20,713 21,028
------ ------ ------ ------ ------
Loans 90 days past due and accruing - 76 - - -
Accruing troubled-debt restructured loans not included above 5,154 4,809 4,558 4,338 4,468
----- ----- ----- ----- -----
Total non-performing loans 19,800 30,576 26,081 25,051 25,496
------ ------ ------ ------ ------
Other real estate owned:
Residential real estate - - 14 14 75
Commercial real estate 341 341 607 908 736
--- --- --- --- ---
Total other real estate owned 341 341 621 922 811
--- --- --- --- ---
Total non-performing assets $20,141 $30,917 $26,702 $25,973 $26,307
======= ======= ======= ======= =======
Loans 30-89 days past due:
Residential real estate $3,169 $3,020 $2,379 $2,470 $2,228
Commercial real estate 2,297 3,442 2,531 971 599
Commercial 712 269 168 851 463
Consumer 1,256 1,378 1,008 1,018 552
HPFC 938 639 777 1,029 492
--- --- --- ----- ---
Total loans 30-89 days past due $8,372 $8,748 $6,863 $6,339 $4,334
====== ====== ====== ====== ======
Allowance for loan losses at the beginning of the period $23,116 $23,116 $23,116 $21,166 $21,166
Provision for loan losses 2,786 1,984 581 5,269 5,011
Charge-offs:
Residential real estate 433 195 5 356 229
Commercial real estate 81 12 3 315 273
Commercial 650 281 136 2,218 1,970
Consumer 493 454 15 409 289
HPFC 274 81 - 507 507
Total charge-offs 1,931 1,023 159 3,805 3,268
----- ----- --- ----- -----
Total recoveries 442 317 183 486 381
--- --- --- --- ---
Net charge-offs (recoveries) 1,489 706 (24) 3,319 2,887
----- --- --- ----- -----
Allowance for loan losses at the end of the period $24,413 $24,394 $23,721 $23,116 $23,290
======= ======= ======= ======= =======
Components of allowance for credit losses:
Allowance for loan losses $24,413 $24,394 $23,721 $23,116 $23,290
Liability for unfunded credit commitments 22 7 9 11 14
--- --- --- --- ---
Allowance for credit losses $24,435 $24,401 $23,730 $23,127 $23,304
======= ======= ======= ======= =======
Ratios:
Non-performing loans to total loans 0.72% 1.12% 0.99% 0.97% 0.98%
Non-performing assets to total assets 0.50% 0.77% 0.68% 0.67% 0.67%
Allowance for loan losses to total loans 0.89% 0.89% 0.90% 0.89% 0.90%
Net charge-offs to average loans (annualized):
Quarter-to-date 0.11% 0.11% - % 0.07% 0.26%
Year-to-date 0.07% 0.05% - % 0.13% 0.15%
Allowance for loan losses to non-performing loans 123.30% 79.78% 90.95% 92.28% 91.35%
Loans 30-89 days past due to total loans 0.30% 0.32% 0.26% 0.24% 0.17%
Reconciliation of non-GAAP to GAAP Financial Measures
-----------------------------------------------------
Efficiency Ratio:
-----------------
For the For the
Nine Months Ended
Three Months Ended
(In thousands) September 30, June 30, September 30, September 30, September 30,
2017 2017 2016 2017 2016
--- ---- ---- ---- ---- ----
Non-interest expense, as presented $21,825 $22,158 $22,149 $65,411 $67,388
Less: merger and acquisition costs - - (45) - (866)
Adjusted non-interest expense $21,825 $22,158 $22,104 $65,411 $66,522
======= ======= ======= ======= =======
Net interest income, as presented $29,160 $28,626 $28,372 $85,641 $84,828
Add: effect of tax-exempt income(1) 535 525 533 1,580 1,588
Non-interest income, as presented 10,299 9,888 11,001 28,759 29,470
Less: net gain on sale of securities (827) - - (827) (4)
---
Adjusted net interest income plus non-interest income $39,167 $39,039 $39,906 $115,153 $115,882
======= ======= ======= ======== ========
Non-GAAP efficiency ratio 55.72% 56.76% 55.39% 56.80% 57.40%
GAAP efficiency ratio 55.31% 57.53% 56.25% 57.18% 58.96%
(1) Assumed a 35% tax rate.
Tax-Equivalent Net Interest Income:
-----------------------------------
For the For the
Three Months Ended Nine Months Ended
(In thousands) September 30, June 30, September 30, September 30, September 30,
2017 2017 2016 2017 2016
--- ---- ---- ---- ---- ----
Net interest income, as presented $29,160 $28,626 $28,372 $85,641 $84,828
Add: effect of tax-exempt income(1) 535 525 533 1,580 1,588
--- --- --- ----- -----
Net interest income, tax equivalent $29,695 $29,151 $28,905 $87,221 $86,416
======= ======= ======= ======= =======
(1) Assumed a 35% tax rate.
Tangible Book Value Per Share and Tangible Common Equity Ratio:
---------------------------------------------------------------
September 30, June 30, September 30,
2017 2016
2017
----
(In thousands, except number of shares and per share data)
---------------------------------------------------------
Tangible Book Value Per Share:
------------------------------
Shareholders' equity, as presented $414,366 $406,960 $393,181
Less: goodwill and other intangible assets (100,044) (100,517) (101,937)
-------- -------- --------
Tangible equity $314,322 $306,443 $291,244
======== ======== ========
Shares outstanding at period end 15,515,577 15,512,914 15,434,856
Tangible book value per share $20.26 $19.75 $18.87
Book value per share $26.71 $26.23 $25.47
Tangible Common Equity Ratio:
-----------------------------
Total assets $4,039,943 $4,036,367 $3,903,966
Less: goodwill and other intangibles (100,044) (100,517) (101,937)
-------- -------- --------
Tangible assets $3,939,899 $3,935,850 $3,802,029
========== ========== ==========
Tangible common equity ratio 7.98% 7.79% 7.66%
Shareholders' equity to total assets 10.26% 10.08% 10.07%
Return on Average Tangible Equity:
----------------------------------
For the For the
Three Months Ended Nine Months Ended
(In thousands) September 30, June 30, September 30, September 30, September 30,
2017 2017 2016 2017 2016
--- ---- ---- ---- ---- ----
Net income, as presented $11,339 $10,234 $10,903 $31,649 $29,165
Amortization of intangible assets, net of tax(1) 307 307 309 921 928
--- --- --- --- ---
Net income, adjusted for amortization of intangible assets $11,646 $10,541 $11,212 $32,570 $30,093
======= ======= ======= ======= =======
Average equity $411,497 $403,623 $387,972 $403,195 $378,647
Less: average goodwill and other intangible assets (100,273) (100,745) (102,168) (100,746) (103,054)
-------- -------- -------- -------- --------
Average tangible equity $311,224 $302,878 $285,804 $302,449 $275,593
======== ======== ======== ======== ========
Return on average tangible equity 14.85% 13.96% 15.61% 14.40% 14.59%
Return on average equity 10.93% 10.17% 11.18% 10.49% 10.29%
(1) Assumed a 35% tax rate.
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SOURCE Camden National Corporation
