CAMDEN, Maine, Oct. 25, 2016 /PRNewswire/ -- Camden
National Corporation (NASDAQ: CAC; "Camden National" or the
"Company"), a $3.9 billion bank
holding company headquartered in Camden,
Maine, reported net income for the third quarter of 2016 of
$10.9 million and diluted earnings
per share ("EPS")1 of $0.70 per share, representing an increase over
the second quarter of 2016 of 13%. For the third quarter of 2016,
the Company's return on average assets was 1.11%, return on average
tangible equity2 was 15.61%, and efficiency
ratio2 was 56.29%.
"We had another strong quarter leading to year-to-date net
income of $29.2 million and driving
year-to-date diluted EPS growth of 10% over the same period last
year," said Gregory A. Dufour, chief
executive officer and president of Camden National. "Our strong
performance reflects the growth from our acquisition of SBM
Financial, Inc. in October 2015 and
within our traditional markets, as well as our continued focus on
operating efficiencies."
For the nine months ended September 30,
2016, the Company's return on average assets was 1.02%,
return on average tangible equity was 14.59%, and efficiency ratio
was 57.92%.
Dufour added, "This past quarter we announced two major
strategic initiatives — we completed a three-for-two split of the
Company's common stock effective September
30, 2016 and announced the proposed merger of Camden
National's wholly-owned subsidiary, Acadia Trust, N.A., into
Camden National Bank creating Camden
National Wealth Management. This will align all of our brands,
including our brokerage group, Camden Financial Consultants, to
provide a comprehensive offering of banking, wealth management and
brokerage products and services."
Subject to regulatory approval, the Company expects to complete
the proposed merger of Acadia Trust, N.A. into Camden National Bank in the fourth quarter of
2016.
THIRD QUARTER 2016 FINANCIAL HIGHLIGHTS (compared to the
second quarter of 2016, unless otherwise stated)
- Net income reached $10.9 million,
representing a $1.3 million, or 13%,
increase over last quarter.
- Diluted EPS reached $0.70 per
share, representing an $0.08 per
share, or 13%, increase over last quarter.
- The return on average assets was 1.11% compared to 1.01% last
quarter.
- The return on average tangible equity was 15.61% compared to
14.50% last quarter.
- Tangible book value per share2 increased 3% to
$18.87 since last quarter.
- Tangible common equity ratio2 of 7.66% at
September 30, 2016 exceeds the
pre-acquisition level from a year ago.
FINANCIAL CONDITION
Total assets at September 30, 2016
were $3.9 billion compared to
$3.7 billion at December 31, 2015, representing an increase of
$194.6 million, or 7% annualized. Our
asset growth for the nine months ended September 30, 2016 was driven by strong loan
growth, including loans held for sale, of $115.5 million, and a $50.3 million increase in our investment
portfolio.
1
|
All share and per
share data has been adjusted for all periods presented to reflect
the three-for-two stock split on September 30, 2016. Refer to the
"Stock split and Dividend" section of the earnings release for
further information.
|
2
|
This is a non-GAAP
measure. Please refer to "Reconciliation of non-GAAP to GAAP
Financial Measures" for further details.
|
Loan growth (excluding loans held for sale) of $101.8 million for the nine months ended
September 30, 2016, or 5% annualized,
was driven by our commercial loan portfolio, which increased
$141.5 million since year-end. The
growth within our commercial loan portfolio was centered in
commercial real estate, which increased $126.4 million since year-end. Our retail loan
portfolio decreased $39.7 million
since year-end with a decline in our residential and consumer loan
portfolio of 3% and 4%, respectively, since year-end. For the
nine months ended September 30, 2016,
the Company originated $291.6 million
of residential mortgages and sold approximately 70% of this
production.
Total deposits at September 30,
2016 were $2.9 billion,
representing an increase of $162.8
million since year-end. Core deposits (demand, interest
checking, savings and money market) at September 30, 2016 totaled $2.2 billion, representing an increase of
$159.7 million, or 11% annualized,
since year-end. Total borrowings at September 30, 2016 were $559.3 million, representing $13.1 million decrease since year-end.
The Company and its wholly-owned subsidiary Camden National Bank, continue to maintain
risk-based capital ratios in excess of the regulatory levels
required for an institution to be considered "well capitalized." At
September 30, 2016, the Company's
total risk-based capital ratio, Tier I risk-based capital ratio,
common equity Tier I risk-based capital ratio, and Tier I leverage
capital ratio were 13.60%, 12.16%, 10.86%, and 8.48%,
respectively.
FINANCIAL OPERATING RESULTS
THIRD QUARTER 2016 COMPARED TO SECOND QUARTER
2016:
Net income for the third quarter of 2016 was $10.9 million, representing an increase of
$1.3 million, or 13%, over the prior
quarter, which was driven by a $1.6
million decrease in provision for loan losses. Diluted EPS
for the third quarter of 2016 was $0.70 per share compared to $0.62 per share last quarter.
Core operating earnings2 for the third quarter of
2016 was $10.9 million, representing
an increase over last quarter of $1.2
million, or 12%. Core diluted EPS1 for the third
quarter of 2016 increased $0.07 per
share to $0.70 per share over last
quarter.
Total revenue3 increased $317,000, or 1%, in the third quarter of 2016 to
$39.4 million over last quarter. The
increase was due to a $449,000
increase in non-interest income, but was partially offset by a
$132,000 decrease in net interest
income.
- Non-interest income of $11.0
million increased 4% due to:
- An increase in mortgage banking income of $701,000 primarily due to an increase in mortgage
gains of $763,000 as a result of
higher loan sale volume in the third quarter of 2016 of
$15.1 million; and
- Legal settlement proceeds of $638,000 related to a previously charged-off
acquired loan, which increased third quarter diluted EPS
$0.03 per share.
- Partially offset by:
- A decrease in fee income generated from commercial back-to-back
loans swaps of $747,000. Total fees
generated in the third quarter of 2016 were $443,000 on $46.5
million of back-to-back loan swap agreements; and
- A decrease in bank-owned life insurance ("BOLI") income of
$307,000 driven by death benefits of
$394,000 received on an insured last
quarter, which increased second quarter 2016 diluted EPS
$0.03 per share.
2
|
This is a non-GAAP
measure. Please refer to "Reconciliation of non-GAAP to GAAP
Financial Measures" for further details.
|
3
|
Revenue is defined as
the sum of net interest income and non-interest income.
|
- Net interest income on a fully-taxable basis for the third
quarter of 2016 was $28.9 million,
representing a decrease of $128,000
on a fully-taxable basis compared to last quarter. The decrease was
due to:
- Net interest margin decreased 10 basis points to 3.24% in the
third quarter of 2016 compared to last quarter. The decrease in our
net interest margin was driven by lower fair value mark accretion
from purchase accounting and collection of previously charged-off
acquired loans of $883,000 compared
to last quarter. Excluding the effects of such, our normalized net
interest margin1 for the third quarter of 2016 was 3.10%
compared to 3.09% last quarter.
- Our loan yield for the third quarter of 2016, excluding the
effects of fair value mark accretion from purchase accounting and
collection of previously charged-off acquired loans, was 4.01%,
representing a decrease of three basis points compared to last
quarter.
- Our investments yield for the third quarter of 2016 was 2.44%,
which included prepayment income contributing three basis points to
our third quarter 2016 yield, compared to 2.41% last quarter.
- Our cost of funds for the third quarter of 2016 was 0.49%,
representing a decrease of two basis points compared to last
quarter.
- Partially offset by average interest-earning assets growth of
$66.2 million, or 2%, for the third
quarter of 2016 compared to last quarter driven by higher average
loan balances of $56.3 million.
Non-interest expense for the third quarter of 2016 totaled
$22.1 million, representing a
decrease of $181,000, or 1%, compared
to last quarter. Our efficiency ratio for the third quarter of 2016
was 56.29% compared to 56.53% last quarter. The decrease in
non-interest expense was driven by:
- Lower consulting and professional fees of $240,000 as last quarter included the issuance of
Company equity awards to its Board of Directors;
- Lower merger and acquisition costs of $132,000 as non-recurring costs associated with
the SBM acquisition in October 2015
wind-down; and
- Lower net occupancy costs of $105,000 and regulatory assessment of
$107,000 driven by the change in the
Federal Deposit Insurance Corporation's ("FDIC") assessment
calculation effective for the third quarter of 2016.
- Partially offset by higher other real estate owned and
collection costs of $381,000 driven
by an increase in sub-servicer costs of $333,000.
NINE MONTHS ENDED SEPTEMBER 30,
2016 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2015:
Net income for the nine months ended September 30, 2016 was $29.2 million compared to $19.3 million for the same period in 2015,
representing an increase of $9.9
million, or 51%. Diluted EPS for the nine months ended
September 30, 2016 was $1.88 per share compared to $1.71 per share for the same period in 2015,
representing an increase of $0.17 per
share, or 10%.
Our return on average assets and average tangible equity for the
nine months ended September 30, 2016
was 1.02% and 14.59%, respectively, compared to 0.91% and 12.92%
for the nine months ended September 30,
2015. Our efficiency ratio for the nine months ended
September 30, 2016 was 57.92%
compared to 59.80% for the same period a year ago.
Core operating earnings for the nine months ended September 30, 2016 was $29.7 million, representing an increase over the
same period last year of $9.2
million, or 45%. Core diluted EPS for the nine months ended
September 30, 2016 and 2015 was
$1.91 and $1.83 per share, respectively. Our core return on
average tangible equity2 for the nine months ended
September 30, 2016 was 14.86%
compared to 13.75% for the same period last year.
ASSET QUALITY
The provision for credit losses was $1.3
million for the third quarter of 2016, representing a
decrease of $1.6 million over last
quarter. In the second quarter of 2016, the Company recorded a
$2.3 million provision for a
commercial real estate loan and a commercial loan. In the third
quarter of 2016, we charged-off $1.4
million related to the aforementioned commercial loan, for
which a reserve had previously been established, that resulted in a
19 basis point increase in the annualized quarter-to-date net
charge-off to average loans ratio compared to last quarter.
Overall, the Company's asset quality within its loan portfolio
remains stable with non-performing assets to total assets of 0.67%,
loans 30-89 days past due to total loans of 0.17%, and annualized
year-to-date net charge-offs to average loans of 0.15%.
STOCK SPLIT AND DIVIDEND
On August 30, 2016, the Company's
Board of Directors approved a three-for-two stock split to be
effected in the form of a stock dividend on the Company's common
stock. The three-for-two stock split was payable September 30, 2016, to the Company's common
shareholders of record on September 15,
2016. As a result of the three-for-two stock split, the
Company's historical and current period per share financial
information and ratios were adjusted.
The Board of Directors approved a dividend of $0.20 per share, payable on October 31, 2016, to shareholders of record as of
October 17, 2016. The third quarter
2016 dividend was adjusted for the three-for-two stock split. This
distribution represents an annualized dividend yield of 2.51%,
based on the September 30, 2016
closing price of Camden National's common stock at $31.83 per share, as adjusted for the
three-for-two stock split, as reported by NASDAQ.
CONFERENCE CALL
Camden National will host a conference call and webcast at
3:30 p.m. eastern time on
October 25, 2016 to discuss our third
quarter 2016 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/cac161025.html
|
A link to the live webcast will be will be available on Camden
National's website under "Investor Relations" at
www.CamdenNational.com prior to the meeting. The transcript of
the conference call will also be available on Camden National's
website approximately two days after the conference call.
2
|
This is a
non-GAAP measure. Please refer to "Reconciliation of non-GAAP to
GAAP Financial Measures" for further details.
|
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation is the holding company of
Camden National Bank and Acadia
Trust, N.A. Headquartered in Camden,
Maine, Camden National Corporation has $3.9 billion in assets and is the largest
publicly traded bank holding company in Northern New England
(NASDAQ: CAC). Camden National Bank
is a full-service community bank that employs over 650 people,
features a network of 63 banking centers and 85 ATMs in
Maine, and offers state-of-the-art
online and mobile banking resources as well as investment,
insurance and financial planning services through its division,
Camden Financial Consultants. With offices in Portland, Bangor, and Ellsworth, Acadia Trust, N.A. provides
comprehensive wealth management, investment management and trust
services to individual and institutional clients throughout
Maine and New England. To learn
more, visit www.CamdenNational.com.
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 difficulties in
achieving cost savings in connection with the recent acquisition of
SBM or in achieving such cost savings within the expected time
frame, increased competitive pressures, changes in the interest
rate environment, changes in general economic conditions,
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, 2015, 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, tangible common equity,
and core return ratios; core operating earnings; core diluted EPS;
normalized net interest margin; 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 banks. 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
Three Months
Ended
|
|
At or For The
Nine Months Ended
|
(In thousands,
except number of shares and per share data)
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
906,286
|
|
|
$
|
921,989
|
|
|
$
|
820,052
|
|
|
$
|
906,286
|
|
|
$
|
820,052
|
|
Loans and loans held
for sale
|
|
2,616,653
|
|
|
2,608,228
|
|
|
1,831,033
|
|
|
2,616,653
|
|
|
1,831,033
|
|
Allowance for loan
losses
|
|
(23,290)
|
|
|
(23,717)
|
|
|
(21,132)
|
|
|
(23,290)
|
|
|
(21,132)
|
|
Total
assets
|
|
3,903,966
|
|
|
3,910,386
|
|
|
2,871,798
|
|
|
3,903,966
|
|
|
2,871,798
|
|
Deposits
|
|
2,889,225
|
|
|
2,773,487
|
|
|
2,008,177
|
|
|
2,889,225
|
|
|
2,008,177
|
|
Borrowings
|
|
559,273
|
|
|
690,476
|
|
|
563,905
|
|
|
559,273
|
|
|
563,905
|
|
Shareholders'
equity
|
|
393,181
|
|
|
384,856
|
|
|
259,403
|
|
|
393,181
|
|
|
259,403
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
28,372
|
|
|
$
|
28,504
|
|
|
$
|
20,012
|
|
|
$
|
84,828
|
|
|
$
|
60,081
|
|
Provision for credit
losses
|
|
1,279
|
|
|
2,852
|
|
|
279
|
|
|
5,003
|
|
|
979
|
|
Non-interest
income
|
|
11,001
|
|
|
10,552
|
|
|
6,561
|
|
|
29,470
|
|
|
19,018
|
|
Non-interest
expense
|
|
22,149
|
|
|
22,330
|
|
|
16,711
|
|
|
67,388
|
|
|
49,669
|
|
Income before income
taxes
|
|
15,945
|
|
|
13,874
|
|
|
9,583
|
|
|
41,907
|
|
|
28,451
|
|
Income tax
expense
|
|
5,042
|
|
|
4,258
|
|
|
3,127
|
|
|
12,742
|
|
|
9,191
|
|
Net income
|
|
$
|
10,903
|
|
|
$
|
9,616
|
|
|
$
|
6,456
|
|
|
$
|
29,165
|
|
|
$
|
19,260
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.11
|
%
|
|
1.01
|
%
|
|
0.90
|
%
|
|
1.02
|
%
|
|
0.91
|
%
|
Return on average
equity
|
|
11.18
|
%
|
|
10.22
|
%
|
|
9.99
|
%
|
|
10.29
|
%
|
|
10.19
|
%
|
Yield on average
interest-earning assets
|
|
3.72
|
%
|
|
3.83
|
%
|
|
3.54
|
%
|
|
3.79
|
%
|
|
3.58
|
%
|
Average cost of
funds
|
|
0.49
|
%
|
|
0.51
|
%
|
|
0.47
|
%
|
|
0.49
|
%
|
|
0.48
|
%
|
Net interest
margin
|
|
3.24
|
%
|
|
3.34
|
%
|
|
3.08
|
%
|
|
3.31
|
%
|
|
3.12
|
%
|
Non-performing loans
to total loans
|
|
0.98
|
%
|
|
1.10
|
%
|
|
0.83
|
%
|
|
0.98
|
%
|
|
0.83
|
%
|
Non-performing assets
to total assets
|
|
0.67
|
%
|
|
0.75
|
%
|
|
0.54
|
%
|
|
0.67
|
%
|
|
0.54
|
%
|
Annualized net
charge-offs to average loans
|
|
0.26
|
%
|
|
0.07
|
%
|
|
0.08
|
%
|
|
0.15
|
%
|
|
0.07
|
%
|
Tier I leverage
capital ratio
|
|
8.48
|
%
|
|
8.44
|
%
|
|
9.41
|
%
|
|
8.48
|
%
|
|
9.41
|
%
|
Common equity Tier I
risk-based capital ratio
|
|
10.86
|
%
|
|
10.25
|
%
|
|
11.44
|
%
|
|
10.86
|
%
|
|
11.44
|
%
|
Tier I risk-based
capital ratio
|
|
12.16
|
%
|
|
11.51
|
%
|
|
13.67
|
%
|
|
12.16
|
%
|
|
13.67
|
%
|
Total risk-based
capital ratio
|
|
13.60
|
%
|
|
12.94
|
%
|
|
14.76
|
%
|
|
13.60
|
%
|
|
14.76
|
%
|
Per Share
Data(1)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
$
|
0.58
|
|
|
$
|
1.88
|
|
|
$
|
1.72
|
|
Diluted earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
$
|
0.57
|
|
|
$
|
1.88
|
|
|
$
|
1.71
|
|
Cash dividends
declared per share
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.60
|
|
|
$
|
0.60
|
|
Book value per
share
|
|
$
|
25.47
|
|
|
$
|
24.96
|
|
|
$
|
23.20
|
|
|
$
|
25.47
|
|
|
$
|
23.20
|
|
Weighted average
number of common shares outstanding
|
|
15,425,452
|
|
|
15,415,308
|
|
|
11,179,821
|
|
|
15,410,310
|
|
|
11,165,297
|
|
Diluted weighted
average number of common shares outstanding
|
|
15,507,561
|
|
|
15,491,010
|
|
|
11,215,844
|
|
|
15,483,320
|
|
|
11,196,749
|
|
Non-GAAP
Measures(2)
|
|
|
|
|
|
|
|
|
|
|
Core operating
earnings
|
|
$
|
10,933
|
|
|
$
|
9,731
|
|
|
$
|
6,954
|
|
|
$
|
29,727
|
|
|
$
|
20,526
|
|
Core return on
average tangible equity
|
|
15.65
|
%
|
|
14.67
|
%
|
|
13.56
|
%
|
|
14.86
|
%
|
|
13.75
|
%
|
Return on average
tangible equity
|
|
15.61
|
%
|
|
14.50
|
%
|
|
12.62
|
%
|
|
14.59
|
%
|
|
12.92
|
%
|
Tangible common
equity ratio
|
|
7.66
|
%
|
|
7.42
|
%
|
|
7.51
|
%
|
|
7.66
|
%
|
|
7.51
|
%
|
Efficiency
ratio
|
|
56.29
|
%
|
|
56.53
|
%
|
|
58.94
|
%
|
|
57.92
|
%
|
|
59.80
|
%
|
Core diluted earnings
per share(1)
|
|
$
|
0.70
|
|
|
$
|
0.63
|
|
|
$
|
0.62
|
|
|
$
|
1.91
|
|
|
$
|
1.83
|
|
Tangible book value
per share(1)
|
|
$
|
18.87
|
|
|
$
|
18.31
|
|
|
$
|
18.97
|
|
|
$
|
18.87
|
|
|
$
|
18.97
|
|
(1)
|
Per share data
adjusted for three-for-two stock split effective September 30,
2016.
|
(2)
|
Please see
"Reconciliation of non-GAAP to GAAP Financial Measures."
|
Consolidated
Statements of Condition Data (unaudited)
|
|
|
|
(In thousands, except number of shares)
|
|
September 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
|
$
|
99,458
|
|
|
$
|
79,488
|
|
Securities:
|
|
|
|
|
Available-for-sale
securities, at fair value
|
|
788,880
|
|
|
750,338
|
|
Held-to-maturity
securities, at amortized cost
|
|
94,205
|
|
|
84,144
|
|
Federal Home Loan
Bank and Federal Reserve Bank stock, at cost
|
|
23,201
|
|
|
21,513
|
|
Total
securities
|
|
906,286
|
|
|
855,995
|
|
Loans held for
sale
|
|
24,644
|
|
|
10,958
|
|
Loans
|
|
2,592,009
|
|
|
2,490,206
|
|
Less: allowance for
loan losses
|
|
(23,290)
|
|
|
(21,166)
|
|
Net
loans
|
|
2,568,719
|
|
|
2,469,040
|
|
Goodwill
|
|
94,697
|
|
|
95,657
|
|
Other intangible
assets
|
|
7,240
|
|
|
8,667
|
|
Bank-owned life
insurance
|
|
77,937
|
|
|
59,917
|
|
Premises and
equipment, net
|
|
43,934
|
|
|
45,959
|
|
Deferred tax
assets
|
|
34,632
|
|
|
39,716
|
|
Interest receivable
|
|
8,364
|
|
|
7,985
|
|
Other real estate
owned
|
|
811
|
|
|
1,304
|
|
Other
assets
|
|
37,244
|
|
|
34,658
|
|
Total
assets
|
|
$
|
3,903,966
|
|
|
$
|
3,709,344
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Demand
|
|
$
|
427,349
|
|
|
$
|
357,673
|
|
Interest
checking
|
|
763,710
|
|
|
740,084
|
|
Savings and money
market
|
|
979,085
|
|
|
912,668
|
|
Certificates of
deposit
|
|
489,856
|
|
|
516,867
|
|
Brokered
deposits
|
|
229,225
|
|
|
199,087
|
|
Total
deposits
|
|
2,889,225
|
|
|
2,726,379
|
|
Short-term
borrowings
|
|
489,749
|
|
|
477,852
|
|
Long-term
borrowings
|
|
10,808
|
|
|
35,911
|
|
Subordinated
debentures
|
|
58,716
|
|
|
58,599
|
|
Accrued interest and
other liabilities
|
|
62,287
|
|
|
47,413
|
|
Total
liabilities
|
|
3,510,785
|
|
|
3,346,154
|
|
Shareholders'
Equity
|
|
|
|
|
Common stock, no par
value; authorized 20,000,000 shares, issued and outstanding
15,434,856 and
15,330,717 shares as of September 30, 2016 and December 31, 2015,
respectively
|
|
155,264
|
|
|
153,083
|
|
Retained
earnings
|
|
242,092
|
|
|
222,329
|
|
Accumulated other
comprehensive loss:
|
|
|
|
|
Net unrealized gains
(losses) on available-for-sale securities, net of tax
|
|
6,595
|
|
|
(3,801)
|
|
Net unrealized losses
on cash flow hedging derivative instruments, net of tax
|
|
(8,838)
|
|
|
(6,374)
|
|
Net unrecognized
losses on postretirement plans, net of tax
|
|
(1,932)
|
|
|
(2,047)
|
|
Total
accumulated other comprehensive loss
|
|
(4,175)
|
|
|
(12,222)
|
|
Total
shareholders' equity
|
|
393,181
|
|
|
363,190
|
|
Total
liabilities and shareholders' equity
|
|
$
|
3,903,966
|
|
|
$
|
3,709,344
|
|
Consolidated
Statements of Income Data (unaudited)
|
|
|
For
The
Three Months
Ended
|
(In thousands, except per share data)
|
|
September
30,
2016
|
|
June
30,
2016
|
|
September
30,
2015
|
Interest
Income
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
27,395
|
|
|
$
|
27,706
|
|
|
$
|
18,651
|
|
Interest on U.S.
government and sponsored enterprise obligations
|
|
4,049
|
|
|
4,016
|
|
|
3,598
|
|
Interest on state and
political subdivision obligations
|
|
702
|
|
|
711
|
|
|
624
|
|
Interest on federal
funds sold and other investments
|
|
448
|
|
|
342
|
|
|
183
|
|
Total interest
income
|
|
32,594
|
|
|
32,775
|
|
|
23,056
|
|
Interest
Expense
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,204
|
|
|
2,109
|
|
|
1,557
|
|
Interest on
borrowings
|
|
1,161
|
|
|
1,313
|
|
|
849
|
|
Interest on
subordinated debentures
|
|
857
|
|
|
849
|
|
|
638
|
|
Total interest
expense
|
|
4,222
|
|
|
4,271
|
|
|
3,044
|
|
Net interest
income
|
|
28,372
|
|
|
28,504
|
|
|
20,012
|
|
Provision for
credit losses
|
|
1,279
|
|
|
2,852
|
|
|
279
|
|
Net interest
income after provision for credit losses
|
|
27,093
|
|
|
25,652
|
|
|
19,733
|
|
Non-Interest
Income
|
|
|
|
|
|
|
Debit card
income
|
|
1,894
|
|
|
1,854
|
|
|
1,266
|
|
Service charges on
deposit accounts
|
|
1,799
|
|
|
1,833
|
|
|
1,554
|
|
Other service charges
and fees
|
|
591
|
|
|
477
|
|
|
416
|
|
Mortgage banking
income, net
|
|
2,407
|
|
|
1,706
|
|
|
390
|
|
Income from fiduciary
services
|
|
1,225
|
|
|
1,342
|
|
|
1,177
|
|
Bank-owned life
insurance
|
|
585
|
|
|
892
|
|
|
443
|
|
Brokerage and
insurance commissions
|
|
594
|
|
|
517
|
|
|
411
|
|
Net gain on sale of
securities
|
|
—
|
|
|
4
|
|
|
4
|
|
Other
income
|
|
1,906
|
|
|
1,927
|
|
|
900
|
|
Total non-interest
income
|
|
11,001
|
|
|
10,552
|
|
|
6,561
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
12,044
|
|
|
11,999
|
|
|
8,691
|
|
Furniture, equipment
and data processing
|
|
2,349
|
|
|
2,381
|
|
|
1,705
|
|
Net occupancy
costs
|
|
1,685
|
|
|
1,790
|
|
|
1,194
|
|
Consulting and
professional fees
|
|
742
|
|
|
982
|
|
|
470
|
|
Regulatory
assessments
|
|
667
|
|
|
774
|
|
|
513
|
|
Debit card
expense
|
|
669
|
|
|
718
|
|
|
431
|
|
Other real estate
owned and collection costs
|
|
877
|
|
|
496
|
|
|
543
|
|
Amortization of
intangible assets
|
|
475
|
|
|
476
|
|
|
288
|
|
Merger and
acquisition costs
|
|
45
|
|
|
177
|
|
|
766
|
|
Other
expenses
|
|
2,596
|
|
|
2,537
|
|
|
2,110
|
|
Total non-interest
expense
|
|
22,149
|
|
|
22,330
|
|
|
16,711
|
|
Income before
income taxes
|
|
15,945
|
|
|
13,874
|
|
|
9,583
|
|
Income
Taxes
|
|
5,042
|
|
|
4,258
|
|
|
3,127
|
|
Net
Income
|
|
$
|
10,903
|
|
|
$
|
9,616
|
|
|
$
|
6,456
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
$
|
0.58
|
|
Diluted earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
$
|
0.57
|
|
Consolidated
Statements of Income Data (unaudited)
|
|
|
For
The
Nine Months
Ended
September 30,
|
(In thousands, except per
share data)
|
|
2016
|
|
2015
|
Interest
Income
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
82,117
|
|
|
$
|
56,077
|
|
Interest on U.S.
government and sponsored enterprise obligations
|
|
12,055
|
|
|
11,187
|
|
Interest on state and
political subdivision obligations
|
|
2,127
|
|
|
1,504
|
|
Interest on federal
funds sold and other investments
|
|
1,051
|
|
|
393
|
|
Total interest
income
|
|
97,350
|
|
|
69,161
|
|
Interest
Expense
|
|
|
|
|
Interest on
deposits
|
|
6,355
|
|
|
4,630
|
|
Interest on
borrowings
|
|
3,610
|
|
|
2,556
|
|
Interest on junior
subordinated debentures
|
|
2,557
|
|
|
1,894
|
|
Total interest
expense
|
|
12,522
|
|
|
9,080
|
|
Net interest
income
|
|
84,828
|
|
|
60,081
|
|
Provision for
credit losses
|
|
5,003
|
|
|
979
|
|
Net interest
income after provision for credit losses
|
|
79,825
|
|
|
59,102
|
|
Non-Interest
Income
|
|
|
|
|
Debit card
income
|
|
5,650
|
|
|
3,652
|
|
Service charges on
deposit accounts
|
|
5,356
|
|
|
4,634
|
|
Other service charges
and fees
|
|
1,494
|
|
|
1,124
|
|
Mortgage banking
income, net
|
|
4,921
|
|
|
975
|
|
Income from fiduciary
services
|
|
3,736
|
|
|
3,725
|
|
Bank-owned life
insurance
|
|
1,899
|
|
|
1,267
|
|
Brokerage and
insurance commissions
|
|
1,569
|
|
|
1,362
|
|
Net gain on sale of
securities
|
|
4
|
|
|
4
|
|
Other
income
|
|
4,841
|
|
|
2,275
|
|
Total non-interest
income
|
|
29,470
|
|
|
19,018
|
|
Non-Interest
Expense
|
|
|
|
|
Salaries and employee
benefits
|
|
35,634
|
|
|
25,550
|
|
Furniture, equipment
and data processing
|
|
7,157
|
|
|
5,530
|
|
Net occupancy
costs
|
|
5,352
|
|
|
3,905
|
|
Consulting and
professional fees
|
|
2,609
|
|
|
1,734
|
|
Regulatory
assessments
|
|
2,162
|
|
|
1,534
|
|
Debit card
expense
|
|
2,107
|
|
|
1,299
|
|
Other real estate
owned and collection costs
|
|
2,029
|
|
|
1,554
|
|
Amortization of
intangible assets
|
|
1,427
|
|
|
862
|
|
Merger and
acquisition costs
|
|
866
|
|
|
1,629
|
|
Other
expenses
|
|
8,045
|
|
|
6,072
|
|
Total non-interest
expense
|
|
67,388
|
|
|
49,669
|
|
Income before
income taxes
|
|
41,907
|
|
|
28,451
|
|
Income
Taxes
|
|
12,742
|
|
|
9,191
|
|
Net
Income
|
|
$
|
29,165
|
|
|
$
|
19,260
|
|
Per Share
Data
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.88
|
|
|
$
|
1.72
|
|
Diluted earnings per
share
|
|
$
|
1.88
|
|
|
$
|
1.71
|
|
Quarterly Average
Balance, Interest and Yield/Rate Analysis
(unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
(In
thousands)
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities -
taxable
|
|
$
|
810,747
|
|
|
$
|
4,497
|
|
|
2.22
|
%
|
|
$
|
723,549
|
|
|
$
|
3,781
|
|
|
2.09
|
%
|
Securities -
nontaxable(1)
|
|
103,657
|
|
|
1,081
|
|
|
4.17
|
%
|
|
87,390
|
|
|
959
|
|
|
4.39
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate
|
|
824,985
|
|
|
8,664
|
|
|
4.20
|
%
|
|
586,631
|
|
|
6,019
|
|
|
4.10
|
%
|
Commercial real estate
|
|
1,031,674
|
|
|
10,394
|
|
|
3.94
|
%
|
|
677,329
|
|
|
7,326
|
|
|
4.23
|
%
|
Commercial(1)
|
|
307,184
|
|
|
3,052
|
|
|
3.89
|
%
|
|
245,482
|
|
|
2,427
|
|
|
3.87
|
%
|
Municipal(1)
|
|
24,628
|
|
|
165
|
|
|
2.66
|
%
|
|
16,379
|
|
|
131
|
|
|
3.16
|
%
|
Consumer
|
|
355,144
|
|
|
3,854
|
|
|
4.32
|
%
|
|
297,721
|
|
|
2,896
|
|
|
3.86
|
%
|
HPFC
|
|
68,334
|
|
|
1,420
|
|
|
8.13
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
Total
loans
|
|
2,611,949
|
|
|
27,549
|
|
|
4.17
|
%
|
|
1,823,542
|
|
|
18,799
|
|
|
4.07
|
%
|
Total
interest-earning assets
|
|
3,526,353
|
|
|
33,127
|
|
|
3.72
|
%
|
|
2,634,481
|
|
|
23,539
|
|
|
3.54
|
%
|
Cash and due from
banks
|
|
97,755
|
|
|
|
|
|
|
54,497
|
|
|
|
|
|
Other
assets
|
|
314,062
|
|
|
|
|
|
|
178,119
|
|
|
|
|
|
Less: allowance for
loan losses
|
|
(23,984)
|
|
|
|
|
|
|
(21,279)
|
|
|
|
|
|
Total
assets
|
|
$
|
3,914,186
|
|
|
|
|
|
|
$
|
2,845,818
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
415,558
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
299,506
|
|
|
$
|
—
|
|
|
—
|
%
|
Interest
checking
|
|
721,459
|
|
|
255
|
|
|
0.14
|
%
|
|
503,417
|
|
|
104
|
|
|
0.08
|
%
|
Savings
|
|
466,113
|
|
|
71
|
|
|
0.06
|
%
|
|
281,556
|
|
|
42
|
|
|
0.06
|
%
|
Money
market
|
|
488,793
|
|
|
528
|
|
|
0.43
|
%
|
|
369,983
|
|
|
310
|
|
|
0.33
|
%
|
Certificates of
deposit
|
|
486,698
|
|
|
971
|
|
|
0.79
|
%
|
|
315,390
|
|
|
732
|
|
|
0.92
|
%
|
Total
deposits
|
|
2,578,621
|
|
|
1,825
|
|
|
0.28
|
%
|
|
1,769,852
|
|
|
1,188
|
|
|
0.27
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
239,975
|
|
|
379
|
|
|
0.63
|
%
|
|
237,308
|
|
|
369
|
|
|
0.62
|
%
|
Subordinated
debentures
|
|
58,697
|
|
|
857
|
|
|
5.81
|
%
|
|
44,088
|
|
|
638
|
|
|
5.74
|
%
|
Other
borrowings
|
|
586,367
|
|
|
1,161
|
|
|
0.79
|
%
|
|
503,542
|
|
|
849
|
|
|
0.67
|
%
|
Total
borrowings
|
|
885,039
|
|
|
2,397
|
|
|
1.08
|
%
|
|
784,938
|
|
|
1,856
|
|
|
0.94
|
%
|
Total funding
liabilities
|
|
3,463,660
|
|
|
4,222
|
|
|
0.49
|
%
|
|
2,554,790
|
|
|
3,044
|
|
|
0.47
|
%
|
Other
liabilities
|
|
62,554
|
|
|
|
|
|
|
34,702
|
|
|
|
|
|
Shareholders'
equity
|
|
387,972
|
|
|
|
|
|
|
256,326
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
3,914,186
|
|
|
|
|
|
|
$
|
2,845,818
|
|
|
|
|
|
Net interest income
(fully-taxable equivalent)
|
|
|
|
28,905
|
|
|
|
|
|
|
20,495
|
|
|
|
Less: fully-taxable equivalent
adjustment
|
|
|
|
(533)
|
|
|
|
|
|
|
(483)
|
|
|
|
Net interest
income
|
|
|
|
$
|
28,372
|
|
|
|
|
|
|
$
|
20,012
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.23
|
%
|
|
|
|
|
|
3.07
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.24
|
%
|
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
(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.
|
Year-To-Date
Average Balance, Interest and Yield/Rate Analysis
(unaudited)
|
|
|
For the Nine
Months Ended
|
|
For the Nine
Months Ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
(In
thousands)
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities -
taxable
|
|
$
|
798,054
|
|
|
$
|
13,106
|
|
|
2.19
|
%
|
|
$
|
736,077
|
|
|
$
|
11,580
|
|
|
2.10
|
%
|
Securities -
nontaxable(1)
|
|
102,812
|
|
|
3,273
|
|
|
4.24
|
%
|
|
69,195
|
|
|
2,313
|
|
|
4.46
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
real estate
|
|
825,660
|
|
|
25,915
|
|
|
4.18
|
%
|
|
585,655
|
|
|
18,087
|
|
|
4.12
|
%
|
Commercial
real estate(3)
|
|
988,329
|
|
|
30,690
|
|
|
4.08
|
%
|
|
663,032
|
|
|
22,319
|
|
|
4.44
|
%
|
Commercial(1)
|
|
290,459
|
|
|
9,318
|
|
|
4.21
|
%
|
|
246,128
|
|
|
7,200
|
|
|
3.86
|
%
|
Municipal(1)
|
|
18,655
|
|
|
419
|
|
|
3.00
|
%
|
|
13,641
|
|
|
349
|
|
|
3.42
|
%
|
Consumer
|
|
361,085
|
|
|
11,399
|
|
|
4.22
|
%
|
|
294,088
|
|
|
8,552
|
|
|
3.89
|
%
|
HPFC
|
|
72,380
|
|
|
4,818
|
|
|
8.75
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
Total
loans
|
|
2,556,568
|
|
|
82,559
|
|
|
4.27
|
%
|
|
1,802,544
|
|
|
56,507
|
|
|
4.16
|
%
|
Total
interest-earning assets
|
|
3,457,434
|
|
|
98,938
|
|
|
3.79
|
%
|
|
2,607,816
|
|
|
70,400
|
|
|
3.58
|
%
|
Cash and due from
banks
|
|
87,248
|
|
|
|
|
|
|
49,415
|
|
|
|
|
|
Other
assets
|
|
305,890
|
|
|
|
|
|
|
179,408
|
|
|
|
|
|
Less: allowance for
loan losses
|
|
(22,446)
|
|
|
|
|
|
|
(21,303)
|
|
|
|
|
|
Total
assets
|
|
$
|
3,828,126
|
|
|
|
|
|
|
$
|
2,815,336
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
372,131
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
271,665
|
|
|
$
|
—
|
|
|
—
|
%
|
Interest
checking
|
|
722,764
|
|
|
649
|
|
|
0.12
|
%
|
|
493,501
|
|
|
291
|
|
|
0.08
|
%
|
Savings
|
|
455,134
|
|
|
204
|
|
|
0.06
|
%
|
|
272,773
|
|
|
119
|
|
|
0.06
|
%
|
Money
market
|
|
485,611
|
|
|
1,532
|
|
|
0.42
|
%
|
|
378,507
|
|
|
895
|
|
|
0.32
|
%
|
Certificates of
deposit
|
|
492,892
|
|
|
2,835
|
|
|
0.77
|
%
|
|
313,705
|
|
|
2,172
|
|
|
0.93
|
%
|
Total
deposits
|
|
2,528,532
|
|
|
5,220
|
|
|
0.28
|
%
|
|
1,730,151
|
|
|
3,477
|
|
|
0.27
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
216,589
|
|
|
1,135
|
|
|
0.70
|
%
|
|
237,852
|
|
|
1,153
|
|
|
0.65
|
%
|
Junior subordinated
debentures
|
|
58,712
|
|
|
2,557
|
|
|
5.82
|
%
|
|
44,063
|
|
|
1,894
|
|
|
5.75
|
%
|
Other
borrowings
|
|
590,245
|
|
|
3,610
|
|
|
0.82
|
%
|
|
514,336
|
|
|
2,556
|
|
|
0.66
|
%
|
Total
borrowings
|
|
865,546
|
|
|
7,302
|
|
|
1.13
|
%
|
|
796,251
|
|
|
5,603
|
|
|
0.94
|
%
|
Total funding
liabilities
|
|
3,394,078
|
|
|
12,522
|
|
|
0.49
|
%
|
|
2,526,402
|
|
|
9,080
|
|
|
0.48
|
%
|
Other
liabilities
|
|
55,401
|
|
|
|
|
|
|
36,132
|
|
|
|
|
|
Shareholders'
equity
|
|
378,647
|
|
|
|
|
|
|
252,802
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
3,828,126
|
|
|
|
|
|
|
$
|
2,815,336
|
|
|
|
|
|
Net interest income
(fully-taxable equivalent)
|
|
|
|
86,416
|
|
|
|
|
|
|
61,320
|
|
|
|
Less: fully-taxable equivalent
adjustment
|
|
|
|
(1,588)
|
|
|
|
|
|
|
(1,239)
|
|
|
|
Net interest
income
|
|
|
|
$
|
84,828
|
|
|
|
|
|
|
$
|
60,081
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.30
|
%
|
|
|
|
|
|
3.10
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.31
|
%
|
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
(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) Includes
$734,000 of income recognized in the second quarter of 2015 upon
payoff of one loan that was on non-accrual status.
|
Asset Quality Data
(unaudited)
|
(In
thousands)
|
|
At or For The
Nine Months Ended
September 30, 2016
|
|
At or For The
Six Months Ended
June 30, 2016
|
|
At or For The
Three Months Ended
March 31, 2016
|
|
At or For The
Year Ended
December 31, 2015
|
|
At or For The
Nine Months Ended
September 30, 2015
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
3,986
|
|
|
$
|
4,697
|
|
|
$
|
6,275
|
|
|
$
|
7,253
|
|
|
$
|
4,149
|
|
Commercial real
estate
|
|
12,917
|
|
|
13,752
|
|
|
3,044
|
|
|
4,529
|
|
|
3,384
|
|
Commercial
|
|
2,259
|
|
|
3,539
|
|
|
4,128
|
|
|
4,489
|
|
|
1,383
|
|
Consumer
|
|
1,650
|
|
|
1,615
|
|
|
1,572
|
|
|
2,051
|
|
|
1,243
|
|
HPFC
|
|
216
|
|
|
110
|
|
|
357
|
|
|
—
|
|
|
—
|
|
Total non-accrual
loans
|
|
21,028
|
|
|
23,713
|
|
|
15,376
|
|
|
18,322
|
|
|
10,159
|
|
Loans 90 days past
due and accruing
|
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accruing
troubled-debt restructured loans not
included above
|
|
4,468
|
|
|
4,509
|
|
|
4,594
|
|
|
4,861
|
|
|
5,013
|
|
Total
non-performing loans
|
|
25,496
|
|
|
28,334
|
|
|
19,970
|
|
|
23,183
|
|
|
15,172
|
|
Other real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
75
|
|
|
80
|
|
|
273
|
|
|
407
|
|
|
204
|
|
Commercial real
estate
|
|
736
|
|
|
775
|
|
|
955
|
|
|
897
|
|
|
—
|
|
Total other real
estate owned
|
|
811
|
|
|
855
|
|
|
1,228
|
|
|
1,304
|
|
|
204
|
|
Total
non-performing assets
|
|
$
|
26,307
|
|
|
$
|
29,189
|
|
|
$
|
21,198
|
|
|
$
|
24,487
|
|
|
$
|
15,376
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
2,228
|
|
|
$
|
2,159
|
|
|
$
|
1,109
|
|
|
$
|
3,590
|
|
|
$
|
1,153
|
|
Commercial real
estate
|
|
599
|
|
|
2,267
|
|
|
4,201
|
|
|
4,295
|
|
|
1,281
|
|
Commercial
|
|
463
|
|
|
630
|
|
|
667
|
|
|
637
|
|
|
497
|
|
Consumer
|
|
552
|
|
|
1,090
|
|
|
808
|
|
|
1,255
|
|
|
315
|
|
HPFC
|
|
492
|
|
|
876
|
|
|
624
|
|
|
165
|
|
|
—
|
|
Total loans 30-89
days past due
|
|
$
|
4,334
|
|
|
$
|
7,022
|
|
|
$
|
7,409
|
|
|
$
|
9,942
|
|
|
$
|
3,246
|
|
Allowance for loan
losses at the beginning of
the period
|
|
$
|
21,166
|
|
|
$
|
21,166
|
|
|
$
|
21,166
|
|
|
$
|
21,116
|
|
|
$
|
21,116
|
|
Provision for loan
losses
|
|
5,011
|
|
|
3,724
|
|
|
870
|
|
|
1,938
|
|
|
972
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
229
|
|
|
229
|
|
|
210
|
|
|
801
|
|
|
468
|
|
Commercial real
estate
|
|
273
|
|
|
241
|
|
|
222
|
|
|
481
|
|
|
174
|
|
Commercial
|
|
1,970
|
|
|
429
|
|
|
226
|
|
|
655
|
|
|
387
|
|
Consumer
|
|
289
|
|
|
226
|
|
|
143
|
|
|
679
|
|
|
481
|
|
HPFC
|
|
507
|
|
|
302
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
charge-offs
|
|
3,268
|
|
|
1,427
|
|
|
801
|
|
|
2,616
|
|
|
1,510
|
|
Total
recoveries
|
|
381
|
|
|
254
|
|
|
104
|
|
|
728
|
|
|
554
|
|
Net
charge-offs
|
|
2,887
|
|
|
1,173
|
|
|
697
|
|
|
1,888
|
|
|
956
|
|
Allowance for loan
losses at the end of the
period
|
|
$
|
23,290
|
|
|
$
|
23,717
|
|
|
$
|
21,339
|
|
|
$
|
21,166
|
|
|
$
|
21,132
|
|
Components of
allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
23,290
|
|
|
$
|
23,717
|
|
|
$
|
21,339
|
|
|
$
|
21,166
|
|
|
$
|
21,132
|
|
Liability for
unfunded credit commitments
|
|
14
|
|
|
22
|
|
|
24
|
|
|
22
|
|
|
24
|
|
Allowance for
credit losses
|
|
$
|
23,304
|
|
|
$
|
23,739
|
|
|
$
|
21,363
|
|
|
$
|
21,188
|
|
|
$
|
21,156
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.98
|
%
|
|
1.10
|
%
|
|
0.80
|
%
|
|
0.93
|
%
|
|
0.83
|
%
|
Non-performing assets
to total assets
|
|
0.67
|
%
|
|
0.75
|
%
|
|
0.56
|
%
|
|
0.66
|
%
|
|
0.54
|
%
|
Allowance for loan
losses to total loans
|
|
0.90
|
%
|
|
0.92
|
%
|
|
0.86
|
%
|
|
0.85
|
%
|
|
1.15
|
%
|
Net charge-offs to
average loans (annualized):
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.26
|
%
|
|
0.07
|
%
|
|
0.11
|
%
|
|
0.16
|
%
|
|
0.08
|
%
|
Year-to-date
|
|
0.15
|
%
|
|
0.09
|
%
|
|
0.11
|
%
|
|
0.10
|
%
|
|
0.07
|
%
|
Allowance for loan
losses to non-performing loans
|
|
91.35
|
%
|
|
85.71
|
%
|
|
106.86
|
%
|
|
91.30
|
%
|
|
139.27
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.17
|
%
|
|
0.27
|
%
|
|
0.30
|
%
|
|
0.40
|
%
|
|
0.18
|
%
|
Reconciliation of
non-GAAP to GAAP Financial Measures
|
|
Efficiency Ratio:
|
|
|
For
the
Three Months
Ended
|
|
For the
Nine Months Ended
|
(In
thousands)
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Non-interest expense,
as presented
|
|
$
|
22,149
|
|
|
$
|
22,330
|
|
|
$
|
16,711
|
|
|
$
|
67,388
|
|
|
$
|
49,669
|
|
Less: merger and
acquisition costs
|
|
(45)
|
|
|
(177)
|
|
|
(766)
|
|
|
(866)
|
|
|
(1,629)
|
|
Adjusted non-interest
expense
|
|
$
|
22,104
|
|
|
$
|
22,153
|
|
|
$
|
15,945
|
|
|
$
|
66,522
|
|
|
$
|
48,040
|
|
Net interest income,
as presented
|
|
$
|
28,372
|
|
|
$
|
28,504
|
|
|
$
|
20,012
|
|
|
$
|
84,828
|
|
|
$
|
60,081
|
|
Add: effect of
tax-exempt income(1)
|
|
533
|
|
|
529
|
|
|
483
|
|
|
1,588
|
|
|
1,239
|
|
Non-interest income,
as presented
|
|
11,001
|
|
|
10,552
|
|
|
6,561
|
|
|
29,470
|
|
|
19,018
|
|
Less: net gain on
sale of securities
|
|
—
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
|
(4)
|
|
Less: bank-owned life
insurance death
benefit
|
|
—
|
|
|
(394)
|
|
|
—
|
|
|
(394)
|
|
|
—
|
|
Less: legal
settlement proceeds
|
|
(638)
|
|
|
—
|
|
|
—
|
|
|
(638)
|
|
|
—
|
|
Adjusted net interest
income plus non-
interest income
|
|
$
|
39,268
|
|
|
$
|
39,187
|
|
|
$
|
27,052
|
|
|
$
|
114,850
|
|
|
$
|
80,334
|
|
Non-GAAP efficiency
ratio
|
|
56.29
|
%
|
|
56.53
|
%
|
|
58.94
|
%
|
|
57.92
|
%
|
|
59.80
|
%
|
GAAP efficiency
ratio
|
|
56.25
|
%
|
|
57.17
|
%
|
|
62.89
|
%
|
|
58.96
|
%
|
|
62.79
|
%
|
(1) Assumed a 35% tax
rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-Equivalent
Net Interest Income:
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(In
thousands)
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Net interest income,
as presented
|
|
$
|
28,372
|
|
|
$
|
28,504
|
|
|
$
|
20,012
|
|
|
$
|
84,828
|
|
|
$
|
60,081
|
|
Add: effect of
tax-exempt income(1)
|
|
533
|
|
|
529
|
|
|
483
|
|
|
1,588
|
|
|
1,239
|
|
Net interest income,
tax equivalent
|
|
$
|
28,905
|
|
|
$
|
29,033
|
|
|
$
|
20,495
|
|
|
$
|
86,416
|
|
|
$
|
61,320
|
|
(1) Assumed a 35% tax
rate.
|
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
(In thousands, except
number of shares and per share data) Tangible Book
Value Per Share:
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
Shareholders' equity,
as presented
|
|
$
|
393,181
|
|
|
$
|
384,856
|
|
|
$
|
259,403
|
|
Less: goodwill and
other intangible assets
|
|
(101,937)
|
|
|
(102,413)
|
|
|
(47,309)
|
|
Tangible
equity
|
|
$
|
291,244
|
|
|
$
|
282,443
|
|
|
$
|
212,094
|
|
Shares outstanding at
period end
|
|
15,434,856
|
|
|
15,421,651
|
|
|
11,181,055
|
|
Tangible book value
per share
|
|
$
|
18.87
|
|
|
$
|
18.31
|
|
|
$
|
18.97
|
|
Book value per
share
|
|
$
|
25.47
|
|
|
$
|
24.96
|
|
|
$
|
23.20
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
3,903,966
|
|
|
$
|
3,910,386
|
|
|
$
|
2,871,798
|
|
Less: goodwill and
other intangibles
|
|
(101,937)
|
|
|
(102,413)
|
|
|
(47,309)
|
|
Tangible
assets
|
|
$
|
3,802,029
|
|
|
$
|
3,807,973
|
|
|
$
|
2,824,489
|
|
Tangible common
equity ratio
|
|
7.66
|
%
|
|
7.42
|
%
|
|
7.51
|
%
|
Shareholders' equity
to total assets
|
|
10.07
|
%
|
|
9.84
|
%
|
|
9.03
|
%
|
Core Operating
Earnings and Core Diluted EPS:
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(In thousands,
except per share data)
|
|
September 30,
2016
|
|
June
30, 2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Core Operating
Earnings:
|
|
|
|
|
|
|
|
|
|
|
Net income, as
presented
|
|
$
|
10,903
|
|
|
$
|
9,616
|
|
|
$
|
6,456
|
|
|
$
|
29,165
|
|
|
$
|
19,260
|
|
Merger and
acquisition costs, net of tax(1)
|
|
30
|
|
|
115
|
|
|
498
|
|
|
562
|
|
|
1,266
|
|
Core operating
earnings
|
|
$
|
10,933
|
|
|
$
|
9,731
|
|
|
$
|
6,954
|
|
|
$
|
29,727
|
|
|
$
|
20,526
|
|
Core Diluted
EPS:
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
presented
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
$
|
0.57
|
|
|
$
|
1.88
|
|
|
$
|
1.71
|
|
Non-core transactions
impact
|
|
—
|
|
|
0.01
|
|
|
0.05
|
|
|
0.03
|
|
|
0.12
|
|
Core diluted
EPS
|
|
$
|
0.70
|
|
|
$
|
0.63
|
|
|
$
|
0.62
|
|
|
$
|
1.91
|
|
|
$
|
1.83
|
|
(1) Assumed a 35% tax
rate for deductible expenses.
|
|
|
|
|
|
|
|
|
Core Return on
Average Tangible Equity and Return on Average Tangible
Equity:
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(In
thousands)
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Net income, as
presented
|
|
$
|
10,903
|
|
|
$
|
9,616
|
|
|
$
|
6,456
|
|
|
$
|
29,165
|
|
|
$
|
19,260
|
|
Amortization of
intangible assets, net of
tax(1)
|
|
309
|
|
|
309
|
|
|
187
|
|
|
928
|
|
|
560
|
|
Net income,
adjusted
|
|
11,212
|
|
|
9,925
|
|
|
6,643
|
|
|
30,093
|
|
|
19,820
|
|
Merger and
acquisition costs, net of tax(2)
|
|
30
|
|
|
115
|
|
|
498
|
|
|
562
|
|
|
1,266
|
|
Core tangible
operating earnings
|
|
$
|
11,242
|
|
|
$
|
10,040
|
|
|
$
|
7,141
|
|
|
$
|
30,655
|
|
|
$
|
21,086
|
|
Average
equity
|
|
$
|
387,972
|
|
|
$
|
378,409
|
|
|
$
|
256,326
|
|
|
$
|
378,647
|
|
|
$
|
252,802
|
|
Less: average goodwill
and other
intangible assets
|
|
(102,168)
|
|
|
(103,203)
|
|
|
(47,446)
|
|
|
(103,054)
|
|
|
(47,730)
|
|
Average tangible
equity
|
|
$
|
285,804
|
|
|
$
|
275,206
|
|
|
$
|
208,880
|
|
|
$
|
275,593
|
|
|
$
|
205,072
|
|
Core return on
average tangible equity
|
|
15.65
|
%
|
|
14.67
|
%
|
|
13.56
|
%
|
|
14.86
|
%
|
|
13.75
|
%
|
Return on average
tangible equity
|
|
15.61
|
%
|
|
14.50
|
%
|
|
12.62
|
%
|
|
14.59
|
%
|
|
12.92
|
%
|
Return on average
equity
|
|
11.18
|
%
|
|
10.22
|
%
|
|
9.99
|
%
|
|
10.29
|
%
|
|
10.19
|
%
|
(1) Assumed a 35% tax
rate.
|
(2) Assumed a 35% tax
rate for tax deductible expenses.
|
|
|
Normalized Net
Interest Margin
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(In
thousands)
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Net interest income,
tax equivalent, as
presented
|
|
$
|
28,905
|
|
|
$
|
29,033
|
|
|
$
|
20,495
|
|
|
$
|
86,416
|
|
|
$
|
61,320
|
|
Less: fair value mark
accretion from
purchase accounting
|
|
(1,030)
|
|
|
(1,731)
|
|
|
(23)
|
|
|
(4,170)
|
|
|
(75)
|
|
Less: collection of
previously charged-off
acquired loans
|
|
(208)
|
|
|
(406)
|
|
|
—
|
|
|
(984)
|
|
|
—
|
|
Normalized net
interest income, tax
equivalent
|
|
$
|
27,667
|
|
|
$
|
26,896
|
|
|
$
|
20,472
|
|
|
$
|
81,262
|
|
|
$
|
61,245
|
|
Average total
interest-earnings assets
|
|
$
|
3,526,353
|
|
|
$
|
3,460,131
|
|
|
$
|
2,634,481
|
|
|
$
|
3,457,434
|
|
|
$
|
2,607,816
|
|
Net interest margin
(fully-taxable
equivalent)(1)
|
|
3.24
|
%
|
|
3.34
|
%
|
|
3.08
|
%
|
|
3.31
|
%
|
|
3.12
|
%
|
Normalized net
interest margin (fully-
taxable equivalent)(1)
|
|
3.10
|
%
|
|
3.09
|
%
|
|
3.08
|
%
|
|
3.11
|
%
|
|
3.12
|
%
|
(1)
Annualized.
|
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SOURCE Camden National Corporation