CAMDEN, Maine, Jan. 31, 2017 /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 fourth quarter of 2016 of
$10.9 million and diluted earnings
per share ("EPS")1 of $0.70 per share, which was consistent with the
previous quarter's performance.
For the year ended December 31,
2016, the Company reported net income of $40.1 million and diluted EPS of $2.57, representing a 91% increase in net income
and a 49% increase in diluted EPS over last year. The Company's
return on average assets and return on average equity for the year
ended December 31, 2016 was 1.04% and
10.47%, respectively.
"We had strong financial results in 2016, which was our first
full year after our merger with The Bank of Maine. We are extremely pleased with our many
accomplishments and growth throughout the year," said Gregory A. Dufour, President and Chief Executive
Officer of the Company. "We successfully executed our integration
strategy to achieve the synergies and cost savings we had committed
to by delivering on an efficiency ratio2 of 57.53%, and
increasing tangible book value2 by 11% over last
year."
Dufour added, "In addition to our strong financial performance
in 2016, we also took steps to provide our shareholders with
additional returns, through a 15% increase in our fourth quarter
dividend, and increasing our stock liquidity through completion of
a three-for-two stock split during the third quarter."
The Company reported adjusted net income2 for the
fourth quarter of 2016 of $10.9
million and adjusted diluted EPS2 of $0.70 per share, representing increases over the
same period last year of 42% and 35%, respectively. For the year
ended December 31, 2016, the Company
reported adjusted net income2 of $40.6 million and adjusted diluted
EPS2 of $2.61,
representing increases over last year of 44% and 12%,
respectively.
FOURTH QUARTER 2016 HIGHLIGHTS
- Net income of $10.9 million and
diluted EPS of $0.70 per share
- Return on average assets of 1.12%, return on average equity of
11.01%, and an efficiency ratio2 of 57.89%
- Dividend increase of $0.03 per
share, or 15%, over last quarter
- Completed merger of Camden National's wholly-owned subsidiary,
Acadia Trust, N.A., into Camden National
Bank creating Camden National Wealth Management, a division
of Camden National Bank
YEAR-END DECEMBER 31, 2016
HIGHLIGHTS
- Net income of $40.1 million and
diluted EPS of $2.57 per share
- Return on average assets of 1.04%, return on average equity of
10.47% and an efficiency ratio2 of 57.53%
- Loan growth of 4% driven by growth of 11% within our commercial
loan portfolio
- Residential mortgage production of approximately $370.0 million, of which approximately 65% was
sold to the secondary market
- Core deposits growth (demand, interest checking, saving and
money market) of 4%
- Tangible book value accretion of 11% in 2016
- Completion of a three-for-two stock split
|
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.
|
2 This is
a non-GAAP measure. Please refer to the "Reconciliation of non-GAAP
to GAAP Financial Measures" for further details.
|
FINANCIAL CONDITION
Total assets at December 31, 2016
were $3.9 billion, compared to
$3.7 billion last year. Total asset
growth of 4% over last year was driven by loan growth (excluding
loans held for sale) of $104.4
million, or 4%, and, secondarily, by growth of our
investment portfolio of $41.7
million, or 5%. At both December 31,
2016 and 2015, our ratio of loans to total assets was 67%
and investments to total assets was 23%.
Total loans at December 31, 2016
(excluding loans held for sale) were $2.6
billion, compared to $2.5
billion last year. Our 2016 loan growth, excluding the
Healthcare Professional Funding Corporation ("HPFC") loan
portfolio, was 5%. The HPFC loan portfolio was acquired as part of
the acquisition of SBM Financial, Inc. ("SBM"), the parent company
of The Bank of Maine, and shortly
thereafter HPFC's operations were discontinued in the first quarter
of 2016. Our 2016 loan growth was centered in commercial real
estate loans and commercial loans with growth of 13% and 12%,
respectively, driving commercial real estate loans to $1.1 billion and commercial loans to $333.6 million at December
31, 2016. Our retail portfolio at December 31, 2016 decreased 3% since last year to
$1.1 billion. The decrease in our
retail portfolio in 2016 was the result of our home equity
portfolio declining by 5% and residential mortgages decreasing 2%.
We focused our attention on residential mortgage production that
translated into originations of approximately $370.0 million in 2016, of which we sold
approximately 65%.
Total deposits at December 31,
2016 grew 4% over last year to $2.8
billion. Core deposits (demand, interest checking, saving
and money market) increased 4% over last year to $2.1 billion. The decrease in certificate of
deposit balances of 9% since last year was supplemented by an
increase in brokered deposits of $73.5
million. Total borrowings increased 5% over last year to
$600.0 million at December 31, 2016.
Our asset quality continues to remain strong with non-performing
assets to total assets of 0.67% and non-performing loans to total
loans of 0.97%, representing slight increases over last year of 1
basis point and 4 basis points, respectively. Our ratio of loans
30-89 days past due to total loans at December 31, 2016 was 0.24%, compared to 0.40%
last year.
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
December 31, 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 14.04%, 12.59%, 11.27%, and 8.83%,
respectively.
FINANCIAL OPERATING RESULTS
FOURTH QUARTER 2016 COMPARED TO THIRD QUARTER
2016:
Net income for the third and fourth quarter of 2016 was
$10.9 million, and diluted EPS for
each period was $0.70 per share.
Total revenues3 for the fourth quarter of 2016 of
$38.4 million decreased 2% compared
to the third quarter of 2016. The decrease in total revenues was
driven by an 8% decrease in non-interest income and a less than 1%
decrease in net interest income as detailed below.
- The decrease in non-interest income of $850,000 was primarily due to lower mortgage
banking income of $1.1 million, which
was driven by a decrease in our interest rate locked residential
mortgage loan pipeline of $18.1
million compared to September 30,
2016, partially offset by one-time proceeds received of
$577,000 upon liquidation of a
mortgage insurance exchange in the fourth quarter of 2016.
|
3 Revenue
is defined as the sum of net interest income and non-interest
income.
|
- The decrease in net interest income of $128,000 was driven by a decrease in average
interest-earning assets of 1% compared to the third quarter of
2016. Average investment and loan balances for the fourth quarter
of 2016 decreased $18.9 million and
$13.5 million, respectively, compared
to last quarter, partially offset by a 2 basis points increase in
net interest margin to 3.26%.
Non-interest expense for the fourth quarter of 2016 increased
$359,000, or 2%, to $22.5 million over last quarter. Our efficiency
ratio2 for the fourth quarter of 2016 was 57.89%,
compared to 55.39% last quarter. The net increase in non-interest
expense was driven by:
- An increase in salary and benefits costs of $394,000, or 3%, primarily due to an increase in
incentive compensation based on 2016 financial performance;
and
- An increase in other real estate owned and collection costs of
$222,000 was related to higher
sub-servicing costs, as one major relationship terminated on
December 31, 2016, and the write-down
of other real estate owned properties based on current
appraisals.
- Partially offsetting the increases were lower consulting and
professional fees of $117,000 and
lower debit card expense of $192,000.
The provision for credit losses was $255,000 for the fourth quarter of 2016,
representing a decrease of $1.0
million compared to last quarter. The decrease was due to
lower net charge-offs during the fourth quarter of $432,000 compared to $1.7
million in the third quarter of 2016, translating to an
annualized net charge-offs ratio for the fourth quarter of 0.07%.
Additionally, in the fourth quarter one large loan was upgraded
from criticized to a pass rating, reducing the required allowance
for loan loss by $201,000.
Our effective tax rate for the fourth quarter of 2016 of 30.3%
was 1.3% lower than last quarter resulting in lower income tax
expense of $210,000 compared to last
quarter. The decrease in our effective tax rate for the quarter was
driven by tax benefits generated upon exercise of stock options and
vesting of restricted shares. Excluding these tax benefits, the
Company's net income for the fourth quarter of 2016 was
$10.7 million and its diluted EPS was
$0.68 per share.
YEAR ENDED DECEMBER 31, 2016
COMPARED TO YEAR ENDED DECEMBER 31,
2015:
Net income for the year ended December
31, 2016 was $40.1 million
compared to $21.0 million reported
last year, representing an increase of $19.1
million, or 91%. Diluted EPS for the year ended December 31, 2016 was $2.57 per share compared to $1.73 per share reported last year, representing
an increase of $0.84 per share, or
49%.
Our return on average assets, average equity and average
tangible equity2 for the year ended December 31, 2016 was 1.04%, 10.47% and 14.76%,
respectively, compared to 0.70%, 7.54% and 9.91% last year. Our
efficiency ratio2 for the year ended December 31, 2016 was 57.53% compared to 61.13%
last year.
The improvement in our financial performance and related key
metrics for the year ended December 31,
2016 compared to last year highlights the benefits of the
acquisition of SBM completed in the fourth quarter of 2015. Through
the successful integration and execution of our acquisition
strategy we were able to achieve the synergies and cost savings
anticipated.
FOURTH QUARTER 2016 DIVIDEND
The Company increased its fourth quarter 2016 dividend by
$0.03 per share, or 15%, to
$0.23 per share, payable on
January 31, 2017, to shareholders of
record as of January 17, 2017. This
distribution represents an annualized dividend yield of 2.07%,
based on the December 30, 2016 (last
business day) closing price of Camden National's common stock at
$44.45 per share as reported by
NASDAQ.
|
2 This is
a non-GAAP measure. Please refer to the "Reconciliation of non-GAAP
to GAAP Financial Measures" for further details.
|
ANNUAL MEETING
Camden National has scheduled its annual meeting of shareholders
for Tuesday, April 25, 2017, at
3:00 p.m. local time, at Point
Lookout Resort and Conference Center, 67 Atlantic Highway,
Lincolnville, Maine 04849. The
date for determining the Company's shareholders of record for the
annual meeting is March 3, 2017.
CONFERENCE CALL
Camden National will host a conference call and webcast at
3:30 p.m. eastern time on
January 31, 2017 to discuss our
fourth quarter and year-to-date 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/cac170131.html
|
A link to the live webcast will be will be available on Camden
National's website under "Investors" 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.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ: CAC) is the holding company
of Camden National Bank.
Headquartered in Camden, Maine,
the Company had approximately $3.9
billion in assets as of December 31,
2016 and is the largest publicly traded bank holding company
in Northern New England. Camden National
Bank, a leading financial services company offering
financial products for consumers, businesses and wealth management
clients, is a full-service community bank that employs over 625
people, features a network of 61 banking centers and 84 ATMs in
Maine. Camden National Bank offers state-of-the-art
online and mobile banking resources as well as comprehensive wealth
management, and investment, insurance and financial planning
services through Camden National Wealth Management and Camden
Financial Consultants. 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 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 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,
return on average tangible equity and adjusted return ratios;
adjusted net income; adjusted diluted EPS; adjusted 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
Year Ended
|
(In thousands, except number of shares
and per share data)
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
897,679
|
|
|
$
|
906,286
|
|
|
$
|
855,995
|
|
|
$
|
897,679
|
|
|
$
|
855,995
|
|
Loans and loans held
for sale
|
|
2,609,400
|
|
|
2,616,653
|
|
|
2,501,164
|
|
|
2,609,400
|
|
|
2,501,164
|
|
Allowance for loan
losses
|
|
(23,116)
|
|
|
(23,290)
|
|
|
(21,166)
|
|
|
(23,116)
|
|
|
(21,166)
|
|
Total
assets
|
|
3,864,230
|
|
|
3,903,966
|
|
|
3,709,344
|
|
|
3,864,230
|
|
|
3,709,344
|
|
Deposits
|
|
2,828,529
|
|
|
2,889,225
|
|
|
2,726,379
|
|
|
2,828,529
|
|
|
2,726,379
|
|
Borrowings
|
|
599,675
|
|
|
559,273
|
|
|
572,362
|
|
|
599,675
|
|
|
572,362
|
|
Shareholders'
equity
|
|
391,547
|
|
|
393,181
|
|
|
363,190
|
|
|
391,547
|
|
|
363,190
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
28,244
|
|
|
$
|
28,372
|
|
|
$
|
26,371
|
|
|
$
|
113,072
|
|
|
$
|
86,452
|
|
Provision for credit
losses
|
|
255
|
|
|
1,279
|
|
|
957
|
|
|
5,258
|
|
|
1,936
|
|
Non-interest
income
|
|
10,151
|
|
|
11,001
|
|
|
8,464
|
|
|
39,621
|
|
|
27,482
|
|
Non-interest
expense
|
|
22,508
|
|
|
22,149
|
|
|
31,470
|
|
|
89,896
|
|
|
81,139
|
|
Income before income
tax expense
|
|
15,632
|
|
|
15,945
|
|
|
2,408
|
|
|
57,539
|
|
|
30,859
|
|
Income tax
expense
|
|
4,730
|
|
|
5,042
|
|
|
716
|
|
|
17,472
|
|
|
9,907
|
|
Net income
|
|
$
|
10,902
|
|
|
$
|
10,903
|
|
|
$
|
1,692
|
|
|
$
|
40,067
|
|
|
$
|
20,952
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.12
|
%
|
|
1.11
|
%
|
|
0.19
|
%
|
|
1.04
|
%
|
|
0.70
|
%
|
Return on average
equity
|
|
11.01
|
%
|
|
11.18
|
%
|
|
1.91
|
%
|
|
10.47
|
%
|
|
7.54
|
%
|
Yield on average
interest-earning assets
|
|
3.72
|
%
|
|
3.72
|
%
|
|
3.74
|
%
|
|
3.80
|
%
|
|
3.65
|
%
|
Average cost of
funds
|
|
0.47
|
%
|
|
0.49
|
%
|
|
0.46
|
%
|
|
0.49
|
%
|
|
0.47
|
%
|
Net interest
margin
|
|
3.26
|
%
|
|
3.24
|
%
|
|
3.30
|
%
|
|
3.32
|
%
|
|
3.19
|
%
|
Non-performing loans
to total loans
|
|
0.97
|
%
|
|
0.98
|
%
|
|
0.93
|
%
|
|
0.97
|
%
|
|
0.93
|
%
|
Non-performing assets
to total assets
|
|
0.67
|
%
|
|
0.67
|
%
|
|
0.66
|
%
|
|
0.67
|
%
|
|
0.66
|
%
|
Annualized
charge-offs to average loans
|
|
0.07
|
%
|
|
0.26
|
%
|
|
0.16
|
%
|
|
0.13
|
%
|
|
0.10
|
%
|
Tier I leverage
capital ratio
|
|
8.83
|
%
|
|
8.48
|
%
|
|
8.74
|
%
|
|
8.83
|
%
|
|
8.74
|
%
|
Common equity Tier I
risk-based capital ratio
|
|
11.27
|
%
|
|
10.86
|
%
|
|
10.42
|
%
|
|
11.27
|
%
|
|
10.42
|
%
|
Tier I risk-based
capital ratio
|
|
12.59
|
%
|
|
12.16
|
%
|
|
11.58
|
%
|
|
12.59
|
%
|
|
11.58
|
%
|
Total risk-based
capital ratio
|
|
14.04
|
%
|
|
13.60
|
%
|
|
12.98
|
%
|
|
14.04
|
%
|
|
12.98
|
%
|
Per Share Data
(1)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.11
|
|
|
$
|
2.59
|
|
|
$
|
1.73
|
|
Diluted earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.11
|
|
|
$
|
2.57
|
|
|
$
|
1.73
|
|
Cash dividends
declared per share
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.83
|
|
|
$
|
0.80
|
|
Book value per
share
|
|
$
|
25.30
|
|
|
$
|
25.47
|
|
|
$
|
23.69
|
|
|
$
|
25.30
|
|
|
$
|
23.69
|
|
Weighted average
number of common shares outstanding
|
|
15,457,498
|
|
|
15,425,452
|
|
|
14,601,030
|
|
|
15,422,160
|
|
|
12,031,294
|
|
Diluted weighted
average number of common shares outstanding
|
|
15,569,346
|
|
|
15,507,561
|
|
|
14,683,769
|
|
|
15,504,239
|
|
|
12,074,579
|
|
Non-GAAP
Measures(2)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$
|
10,872
|
|
|
$
|
10,933
|
|
|
$
|
7,662
|
|
|
$
|
40,597
|
|
|
$
|
28,186
|
|
Adjusted return on
average tangible equity
|
|
15.22
|
%
|
|
15.65
|
%
|
|
11.96
|
%
|
|
14.95
|
%
|
|
13.20
|
%
|
Return on average
tangible equity
|
|
15.26
|
%
|
|
15.61
|
%
|
|
2.98
|
%
|
|
14.76
|
%
|
|
9.91
|
%
|
Tangible common
equity ratio
|
|
7.71
|
%
|
|
7.66
|
%
|
|
7.18
|
%
|
|
7.71
|
%
|
|
7.18
|
%
|
Efficiency
ratio
|
|
57.89
|
%
|
|
55.39
|
%
|
|
64.16
|
%
|
|
57.53
|
%
|
|
61.13
|
%
|
Adjusted diluted
earnings per share(1)
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.52
|
|
|
$
|
2.61
|
|
|
$
|
2.33
|
|
Tangible book value
per share(1)
|
|
$
|
18.74
|
|
|
$
|
18.87
|
|
|
$
|
16.89
|
|
|
$
|
18.74
|
|
|
$
|
16.89
|
|
|
(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)
|
|
December 31,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
|
$
|
87,707
|
|
|
$
|
79,488
|
|
Securities:
|
|
|
|
|
Available-for-sale
securities, at fair value
|
|
779,867
|
|
|
750,338
|
|
Held-to-maturity
securities, at amortized cost
|
|
94,609
|
|
|
84,144
|
|
Federal Home Loan
Bank and Federal Reserve Bank stock, at cost
|
|
23,203
|
|
|
21,513
|
|
Total
securities
|
|
897,679
|
|
|
855,995
|
|
Loans held for sale,
at fair value
|
|
14,836
|
|
|
10,958
|
|
Loans
|
|
2,594,564
|
|
|
2,490,206
|
|
Less: allowance for
loan losses
|
|
(23,116)
|
|
|
(21,166)
|
|
Net
loans
|
|
2,571,448
|
|
|
2,469,040
|
|
Goodwill
|
|
94,697
|
|
|
95,657
|
|
Other intangible
assets
|
|
6,764
|
|
|
8,667
|
|
Bank-owned life
insurance
|
|
78,119
|
|
|
59,917
|
|
Premises and
equipment, net
|
|
42,873
|
|
|
45,959
|
|
Deferred tax
assets
|
|
39,263
|
|
|
39,716
|
|
Interest receivable
|
|
8,654
|
|
|
7,985
|
|
Other real estate
owned
|
|
922
|
|
|
1,304
|
|
Other
assets
|
|
21,268
|
|
|
34,658
|
|
Total
assets
|
|
$
|
3,864,230
|
|
|
$
|
3,709,344
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits:
|
|
|
|
|
Demand
|
|
$
|
406,934
|
|
|
$
|
357,673
|
|
Interest
checking
|
|
701,494
|
|
|
740,084
|
|
Savings and money
market
|
|
979,263
|
|
|
912,668
|
|
Certificates of
deposit
|
|
468,203
|
|
|
516,867
|
|
Brokered
deposits
|
|
272,635
|
|
|
199,087
|
|
Total
deposits
|
|
2,828,529
|
|
|
2,726,379
|
|
Short-term
borrowings
|
|
530,129
|
|
|
477,852
|
|
Long-term
borrowings
|
|
10,791
|
|
|
35,911
|
|
Subordinated
debentures
|
|
58,755
|
|
|
58,599
|
|
Accrued interest and
other liabilities
|
|
44,479
|
|
|
47,413
|
|
Total
liabilities
|
|
3,472,683
|
|
|
3,346,154
|
|
Commitments and
Contingencies
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common stock, no par
value: authorized 20,000,000 shares, issued and outstanding
15,476,379 and 15,330,717 on December 31, 2016 and 2015,
respectively
|
|
156,041
|
|
|
153,083
|
|
Retained
earnings
|
|
249,415
|
|
|
222,329
|
|
Accumulated other
comprehensive loss:
|
|
|
|
|
Net unrealized losses
on available-for-sale securities, net of tax
|
|
(6,085)
|
|
|
(3,801)
|
|
Net unrealized losses
on cash flow hedging derivative instruments, net of tax
|
|
(5,694)
|
|
|
(6,374)
|
|
Net unrecognized
losses on postretirement plans, net of tax
|
|
(2,130)
|
|
|
(2,047)
|
|
Total
accumulated other comprehensive loss
|
|
(13,909)
|
|
|
(12,222)
|
|
Total
shareholders' equity
|
|
391,547
|
|
|
363,190
|
|
Total
liabilities and shareholders' equity
|
|
$
|
3,864,230
|
|
|
$
|
3,709,344
|
|
Consolidated
Statements of Income Data (unaudited)
|
|
|
|
For
The
Three Months
Ended
|
(In thousands, except per share data)
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
Interest
Income
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
27,107
|
|
|
$
|
27,395
|
|
|
$
|
25,144
|
|
Interest on U.S.
government and sponsored enterprise obligations
|
|
4,027
|
|
|
4,049
|
|
|
3,904
|
|
Interest on state and
political subdivision obligations
|
|
709
|
|
|
702
|
|
|
704
|
|
Interest on federal
funds sold and other investments
|
|
433
|
|
|
448
|
|
|
231
|
|
Total interest
income
|
|
32,276
|
|
|
32,594
|
|
|
29,983
|
|
Interest
Expense
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,278
|
|
|
2,204
|
|
|
1,881
|
|
Interest on
borrowings
|
|
896
|
|
|
1,161
|
|
|
901
|
|
Interest on
subordinated debentures
|
|
858
|
|
|
857
|
|
|
830
|
|
Total interest
expense
|
|
4,032
|
|
|
4,222
|
|
|
3,612
|
|
Net interest
income
|
|
28,244
|
|
|
28,372
|
|
|
26,371
|
|
Provision for
credit losses
|
|
255
|
|
|
1,279
|
|
|
957
|
|
Net interest
income after provision for credit losses
|
|
27,989
|
|
|
27,093
|
|
|
25,414
|
|
Non-Interest
Income
|
|
|
|
|
|
|
Debit card
income
|
|
1,928
|
|
|
1,894
|
|
|
1,625
|
|
Service charges on
deposit accounts
|
|
1,854
|
|
|
1,799
|
|
|
1,789
|
|
Mortgage banking
income, net
|
|
1,337
|
|
|
2,407
|
|
|
1,056
|
|
Income from fiduciary
services
|
|
1,224
|
|
|
1,225
|
|
|
1,193
|
|
Bank-owned life
insurance
|
|
695
|
|
|
585
|
|
|
413
|
|
Brokerage and
insurance commissions
|
|
505
|
|
|
594
|
|
|
337
|
|
Other service charges
and fees
|
|
468
|
|
|
591
|
|
|
449
|
|
Net gain on sale of
securities
|
|
47
|
|
|
—
|
|
|
—
|
|
Other
income
|
|
2,093
|
|
|
1,906
|
|
|
1,602
|
|
Total non-interest
income
|
|
10,151
|
|
|
11,001
|
|
|
8,464
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
12,438
|
|
|
12,044
|
|
|
11,670
|
|
Furniture, equipment
and data processing
|
|
2,400
|
|
|
2,349
|
|
|
2,527
|
|
Net occupancy
costs
|
|
1,736
|
|
|
1,685
|
|
|
1,790
|
|
Consulting and
professional fees
|
|
625
|
|
|
742
|
|
|
891
|
|
Other real estate
owned and collection costs
|
|
1,099
|
|
|
877
|
|
|
937
|
|
Regulatory
assessments
|
|
615
|
|
|
667
|
|
|
650
|
|
Debit card
expense
|
|
477
|
|
|
669
|
|
|
637
|
|
Amortization of
intangible assets
|
|
476
|
|
|
475
|
|
|
444
|
|
Merger and
acquisition costs
|
|
—
|
|
|
45
|
|
|
8,786
|
|
Other
expenses
|
|
2,642
|
|
|
2,596
|
|
|
3,138
|
|
Total non-interest
expense
|
|
22,508
|
|
|
22,149
|
|
|
31,470
|
|
Income before
income tax expense
|
|
15,632
|
|
|
15,945
|
|
|
2,408
|
|
Income tax
expense
|
|
4,730
|
|
|
5,042
|
|
|
716
|
|
Net
income
|
|
$
|
10,902
|
|
|
$
|
10,903
|
|
|
$
|
1,692
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.11
|
|
Diluted earnings per
share
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.11
|
|
Consolidated
Statements of Income Data (unaudited)
|
|
|
|
Year
Ended
December
31,
|
(In thousands, except per share data)
|
|
2016
|
|
2015
|
Interest
Income
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
109,224
|
|
|
$
|
81,221
|
|
Interest on U.S.
government and sponsored enterprise obligations
|
|
16,082
|
|
|
15,091
|
|
Interest on state and
political subdivision obligations
|
|
2,836
|
|
|
2,208
|
|
Interest on federal
funds sold and other investments
|
|
1,484
|
|
|
624
|
|
Total interest
income
|
|
129,626
|
|
|
99,144
|
|
Interest
Expense
|
|
|
|
|
Interest on
deposits
|
|
8,633
|
|
|
6,511
|
|
Interest on
borrowings
|
|
4,506
|
|
|
3,457
|
|
Interest on
subordinated debentures
|
|
3,415
|
|
|
2,724
|
|
Total interest
expense
|
|
16,554
|
|
|
12,692
|
|
Net interest
income
|
|
113,072
|
|
|
86,452
|
|
Provision for
credit losses
|
|
5,258
|
|
|
1,936
|
|
Net interest
income after provision for credit losses
|
|
107,814
|
|
|
84,516
|
|
Non-Interest
Income
|
|
|
|
|
Debit card
income
|
|
7,578
|
|
|
5,277
|
|
Service charges on
deposit accounts
|
|
7,210
|
|
|
6,423
|
|
Mortgage banking
income, net
|
|
6,258
|
|
|
2,031
|
|
Income from fiduciary
services
|
|
4,960
|
|
|
4,918
|
|
Bank-owned life
insurance
|
|
2,594
|
|
|
1,680
|
|
Brokerage and
insurance commissions
|
|
2,074
|
|
|
1,699
|
|
Other service charges
and fees
|
|
1,962
|
|
|
1,573
|
|
Net gain on sale of
securities
|
|
51
|
|
|
4
|
|
Other
income
|
|
6,934
|
|
|
3,877
|
|
Total non-interest
income
|
|
39,621
|
|
|
27,482
|
|
Non-Interest
Expense
|
|
|
|
|
Salaries and employee
benefits
|
|
48,072
|
|
|
37,220
|
|
Furniture, equipment
and data processing
|
|
9,557
|
|
|
8,057
|
|
Net occupancy
costs
|
|
7,088
|
|
|
5,695
|
|
Consulting and
professional fees
|
|
3,234
|
|
|
2,625
|
|
Other real estate
owned and collection costs
|
|
3,128
|
|
|
2,491
|
|
Regulatory
assessments
|
|
2,777
|
|
|
2,184
|
|
Debit card
expense
|
|
2,584
|
|
|
1,936
|
|
Amortization of
intangible assets
|
|
1,903
|
|
|
1,306
|
|
Merger and
acquisition costs
|
|
866
|
|
|
10,415
|
|
Other
expenses
|
|
10,687
|
|
|
9,210
|
|
Total non-interest
expense
|
|
89,896
|
|
|
81,139
|
|
Income before
income tax expense
|
|
57,539
|
|
|
30,859
|
|
Income tax
expense
|
|
17,472
|
|
|
9,907
|
|
Net
income
|
|
$
|
40,067
|
|
|
$
|
20,952
|
|
Per Share
Data
|
|
|
|
|
Basic earnings per
share
|
|
$
|
2.59
|
|
|
$
|
1.73
|
|
Diluted earnings per
share
|
|
$
|
2.57
|
|
|
$
|
1.73
|
|
Quarterly Average
Balance, Interest and Yield/Rate Analysis
(unaudited)
|
|
|
|
For the
Three Months Ended
|
|
|
December 31,
2016
|
|
December 31,
2015
|
(In
thousands)
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities -
taxable
|
|
$
|
791,565
|
|
|
$
|
4,460
|
|
|
2.25
|
%
|
|
$
|
748,341
|
|
|
$
|
4,135
|
|
|
2.21
|
%
|
Securities -
nontaxable(1)
|
|
103,904
|
|
|
1,090
|
|
|
4.20
|
%
|
|
99,281
|
|
|
1,084
|
|
|
4.37
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
real estate
|
|
813,846
|
|
|
8,451
|
|
|
4.15
|
%
|
|
787,441
|
|
|
8,418
|
|
|
4.28
|
%
|
Commercial
real estate
|
|
1,051,346
|
|
|
10,538
|
|
|
3.92
|
%
|
|
873,620
|
|
|
9,540
|
|
|
4.27
|
%
|
Commercial(1)
|
|
299,425
|
|
|
3,032
|
|
|
3.96
|
%
|
|
279,399
|
|
|
2,526
|
|
|
3.54
|
%
|
Municipal(1)
|
|
20,971
|
|
|
153
|
|
|
2.90
|
%
|
|
13,866
|
|
|
122
|
|
|
3.49
|
%
|
Consumer
|
|
349,202
|
|
|
3,712
|
|
|
4.23
|
%
|
|
359,851
|
|
|
3,500
|
|
|
3.86
|
%
|
HPFC
|
|
63,662
|
|
|
1,373
|
|
|
8.44
|
%
|
|
67,911
|
|
|
1,181
|
|
|
6.90
|
%
|
Total
loans
|
|
2,598,452
|
|
|
27,259
|
|
|
4.14
|
%
|
|
2,382,088
|
|
|
25,287
|
|
|
4.19
|
%
|
Total
interest-earning assets
|
|
3,493,921
|
|
|
32,809
|
|
|
3.72
|
%
|
|
3,229,710
|
|
|
30,506
|
|
|
3.74
|
%
|
Cash and due from
banks
|
|
87,532
|
|
|
|
|
|
|
72,588
|
|
|
|
|
|
Other
assets
|
|
304,114
|
|
|
|
|
|
|
264,503
|
|
|
|
|
|
Less: allowance for
loan losses
|
|
(23,323)
|
|
|
|
|
|
|
(21,216)
|
|
|
|
|
|
Total
assets
|
|
$
|
3,862,244
|
|
|
|
|
|
|
$
|
3,545,585
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
428,057
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
355,421
|
|
|
$
|
—
|
|
|
—
|
%
|
Interest
checking
|
|
728,563
|
|
|
272
|
|
|
0.15
|
%
|
|
691,191
|
|
|
136
|
|
|
0.08
|
%
|
Savings
|
|
481,630
|
|
|
74
|
|
|
0.06
|
%
|
|
406,723
|
|
|
61
|
|
|
0.06
|
%
|
Money
market
|
|
503,688
|
|
|
521
|
|
|
0.41
|
%
|
|
441,431
|
|
|
388
|
|
|
0.35
|
%
|
Certificates of
deposit
|
|
477,569
|
|
|
958
|
|
|
0.80
|
%
|
|
489,329
|
|
|
952
|
|
|
0.77
|
%
|
Total
deposits
|
|
2,619,507
|
|
|
1,825
|
|
|
0.28
|
%
|
|
2,384,095
|
|
|
1,537
|
|
|
0.26
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
276,347
|
|
|
453
|
|
|
0.65
|
%
|
|
203,046
|
|
|
344
|
|
|
0.67
|
%
|
Subordinated
debentures
|
|
58,736
|
|
|
858
|
|
|
5.81
|
%
|
|
57,973
|
|
|
830
|
|
|
5.68
|
%
|
Other
borrowings
|
|
460,708
|
|
|
896
|
|
|
0.77
|
%
|
|
503,606
|
|
|
901
|
|
|
0.71
|
%
|
Total
borrowings
|
|
795,791
|
|
|
2,207
|
|
|
1.10
|
%
|
|
764,625
|
|
|
2,075
|
|
|
1.08
|
%
|
Total funding
liabilities
|
|
3,415,298
|
|
|
4,032
|
|
|
0.47
|
%
|
|
3,148,720
|
|
|
3,612
|
|
|
0.46
|
%
|
Other
liabilities
|
|
52,942
|
|
|
|
|
|
|
45,223
|
|
|
|
|
|
Shareholders'
equity
|
|
394,004
|
|
|
|
|
|
|
351,642
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
3,862,244
|
|
|
|
|
|
|
$
|
3,545,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(fully-taxable equivalent)
|
|
|
|
28,777
|
|
|
|
|
|
|
26,894
|
|
|
|
Less: fully-taxable
equivalent adjustment
|
|
|
|
(533)
|
|
|
|
|
|
|
(523)
|
|
|
|
Net interest
income
|
|
|
|
$
|
28,244
|
|
|
|
|
|
|
$
|
26,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.25
|
%
|
|
|
|
|
|
3.28
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.26
|
%
|
|
|
|
|
|
3.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Year
Ended
|
|
|
December 31,
2016
|
|
December 31,
2015
|
(In
thousands)
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average
Balance
|
|
Interest
|
|
Yield/Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities -
taxable
|
|
$
|
796,423
|
|
|
$
|
17,566
|
|
|
2.21
|
%
|
|
$
|
739,168
|
|
|
$
|
15,715
|
|
|
2.13
|
%
|
Securities -
nontaxable(1)
|
|
103,086
|
|
|
4,363
|
|
|
4.23
|
%
|
|
76,779
|
|
|
3,397
|
|
|
4.42
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
real estate
|
|
822,690
|
|
|
34,366
|
|
|
4.18
|
%
|
|
636,516
|
|
|
26,505
|
|
|
4.16
|
%
|
Commercial
real estate(3)
|
|
1,004,169
|
|
|
41,228
|
|
|
4.11
|
%
|
|
716,112
|
|
|
31,859
|
|
|
4.45
|
%
|
Commercial(1)
|
|
292,709
|
|
|
12,350
|
|
|
4.22
|
%
|
|
254,514
|
|
|
9,726
|
|
|
3.82
|
%
|
Municipal(1)
|
|
19,238
|
|
|
572
|
|
|
2.97
|
%
|
|
13,698
|
|
|
471
|
|
|
3.44
|
%
|
Consumer
|
|
358,098
|
|
|
15,111
|
|
|
4.22
|
%
|
|
310,664
|
|
|
12,053
|
|
|
3.88
|
%
|
HPFC
|
|
70,188
|
|
|
6,191
|
|
|
8.82
|
%
|
|
17,117
|
|
|
1,181
|
|
|
6.90
|
%
|
Total
loans
|
|
2,567,092
|
|
|
109,818
|
|
|
4.28
|
%
|
|
1,948,621
|
|
|
81,795
|
|
|
4.20
|
%
|
Total
interest-earning assets
|
|
3,466,601
|
|
|
131,747
|
|
|
3.80
|
%
|
|
2,764,568
|
|
|
100,907
|
|
|
3.65
|
%
|
Cash and due from
banks
|
|
87,319
|
|
|
|
|
|
|
55,256
|
|
|
|
|
|
Other
assets
|
|
305,440
|
|
|
|
|
|
|
200,857
|
|
|
|
|
|
Less: allowance for
loan losses
|
|
(22,663)
|
|
|
|
|
|
|
(21,281)
|
|
|
|
|
|
Total
assets
|
|
$
|
3,836,697
|
|
|
|
|
|
|
$
|
2,999,400
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
386,189
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
292,776
|
|
|
$
|
—
|
|
|
—
|
%
|
Interest
checking
|
|
724,222
|
|
|
921
|
|
|
0.13
|
%
|
|
543,330
|
|
|
427
|
|
|
0.08
|
%
|
Savings
|
|
461,794
|
|
|
278
|
|
|
0.06
|
%
|
|
306,536
|
|
|
180
|
|
|
0.06
|
%
|
Money
market
|
|
490,155
|
|
|
2,053
|
|
|
0.42
|
%
|
|
394,367
|
|
|
1,283
|
|
|
0.33
|
%
|
Certificates of
deposit
|
|
489,040
|
|
|
3,793
|
|
|
0.78
|
%
|
|
357,972
|
|
|
3,126
|
|
|
0.87
|
%
|
Total
deposits
|
|
2,551,400
|
|
|
7,045
|
|
|
0.28
|
%
|
|
1,894,981
|
|
|
5,016
|
|
|
0.26
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
231,610
|
|
|
1,588
|
|
|
0.69
|
%
|
|
229,079
|
|
|
1,495
|
|
|
0.65
|
%
|
Subordinated
debentures
|
|
58,718
|
|
|
3,415
|
|
|
5.82
|
%
|
|
47,569
|
|
|
2,724
|
|
|
5.73
|
%
|
Other
borrowings
|
|
557,684
|
|
|
4,506
|
|
|
0.81
|
%
|
|
511,632
|
|
|
3,457
|
|
|
0.68
|
%
|
Total
borrowings
|
|
848,012
|
|
|
9,509
|
|
|
1.12
|
%
|
|
788,280
|
|
|
7,676
|
|
|
0.97
|
%
|
Total funding
liabilities
|
|
3,399,412
|
|
|
16,554
|
|
|
0.49
|
%
|
|
2,683,261
|
|
|
12,692
|
|
|
0.47
|
%
|
Other
liabilities
|
|
54,778
|
|
|
|
|
|
|
38,423
|
|
|
|
|
|
Shareholders'
equity
|
|
382,507
|
|
|
|
|
|
|
277,716
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
3,836,697
|
|
|
|
|
|
|
$
|
2,999,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(fully-taxable equivalent)
|
|
|
|
115,193
|
|
|
|
|
|
|
88,215
|
|
|
|
Less: fully-taxable equivalent
adjustment
|
|
|
|
(2,121)
|
|
|
|
|
|
|
(1,763)
|
|
|
|
Net interest
income
|
|
|
|
$
|
113,072
|
|
|
|
|
|
|
$
|
86,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.31
|
%
|
|
|
|
|
|
3.18
|
%
|
Net interest margin
(fully-taxable equivalent)
|
|
3.32
|
%
|
|
|
|
|
|
3.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
Year
Ended
December 31,
2016
|
|
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
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
3,945
|
|
|
$
|
3,986
|
|
|
$
|
4,697
|
|
|
$
|
6,275
|
|
|
$
|
7,253
|
|
Commercial real
estate
|
|
12,849
|
|
|
12,917
|
|
|
13,752
|
|
|
3,044
|
|
|
4,529
|
|
Commercial
|
|
2,088
|
|
|
2,259
|
|
|
3,539
|
|
|
4,128
|
|
|
4,489
|
|
Consumer
|
|
1,624
|
|
|
1,650
|
|
|
1,615
|
|
|
1,572
|
|
|
2,051
|
|
HPFC
|
|
207
|
|
|
216
|
|
|
110
|
|
|
357
|
|
|
—
|
|
Total non-accrual
loans
|
|
20,713
|
|
|
21,028
|
|
|
23,713
|
|
|
15,376
|
|
|
18,322
|
|
Loans 90 days past
due and accruing
|
|
—
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
Accruing
troubled-debt restructured loans not included above
|
|
4,338
|
|
|
4,468
|
|
|
4,509
|
|
|
4,594
|
|
|
4,861
|
|
Total
non-performing loans
|
|
25,051
|
|
|
25,496
|
|
|
28,334
|
|
|
19,970
|
|
|
23,183
|
|
Other real estate
owned:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
14
|
|
|
75
|
|
|
80
|
|
|
273
|
|
|
407
|
|
Commercial real
estate
|
|
908
|
|
|
736
|
|
|
775
|
|
|
955
|
|
|
897
|
|
Total other real
estate owned
|
|
922
|
|
|
811
|
|
|
855
|
|
|
1,228
|
|
|
1,304
|
|
Total
non-performing assets
|
|
$
|
25,973
|
|
|
$
|
26,307
|
|
|
$
|
29,189
|
|
|
$
|
21,198
|
|
|
$
|
24,487
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
2,470
|
|
|
$
|
2,228
|
|
|
$
|
2,159
|
|
|
$
|
1,109
|
|
|
$
|
3,590
|
|
Commercial real
estate
|
|
971
|
|
|
599
|
|
|
2,267
|
|
|
4,201
|
|
|
4,295
|
|
Commercial
|
|
851
|
|
|
463
|
|
|
630
|
|
|
667
|
|
|
637
|
|
Consumer
|
|
1,018
|
|
|
552
|
|
|
1,090
|
|
|
808
|
|
|
1,255
|
|
HPFC
|
|
1,029
|
|
|
492
|
|
|
876
|
|
|
624
|
|
|
165
|
|
Total loans 30-89
days past due
|
|
$
|
6,339
|
|
|
$
|
4,334
|
|
|
$
|
7,022
|
|
|
$
|
7,409
|
|
|
$
|
9,942
|
|
Allowance for loan
losses at the beginning of the period
|
|
$
|
21,166
|
|
|
$
|
21,166
|
|
|
$
|
21,166
|
|
|
$
|
21,166
|
|
|
$
|
21,116
|
|
Provision for loan
losses
|
|
5,269
|
|
|
5,011
|
|
|
3,724
|
|
|
870
|
|
|
1,938
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
356
|
|
|
229
|
|
|
229
|
|
|
210
|
|
|
801
|
|
Commercial real
estate
|
|
315
|
|
|
273
|
|
|
241
|
|
|
222
|
|
|
481
|
|
Commercial
|
|
2,218
|
|
|
1,970
|
|
|
429
|
|
|
226
|
|
|
655
|
|
Consumer
|
|
409
|
|
|
289
|
|
|
226
|
|
|
143
|
|
|
679
|
|
HPFC
|
|
507
|
|
|
507
|
|
|
302
|
|
|
—
|
|
|
—
|
|
Total
charge-offs
|
|
3,805
|
|
|
3,268
|
|
|
1,427
|
|
|
801
|
|
|
2,616
|
|
Total
recoveries
|
|
486
|
|
|
381
|
|
|
254
|
|
|
104
|
|
|
728
|
|
Net
charge-offs
|
|
3,319
|
|
|
2,887
|
|
|
1,173
|
|
|
697
|
|
|
1,888
|
|
Allowance for loan
losses at the end of the period
|
|
$
|
23,116
|
|
|
$
|
23,290
|
|
|
$
|
23,717
|
|
|
$
|
21,339
|
|
|
$
|
21,166
|
|
Components of
allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
23,116
|
|
|
$
|
23,290
|
|
|
$
|
23,717
|
|
|
$
|
21,339
|
|
|
$
|
21,166
|
|
Liability for
unfunded credit commitments
|
|
11
|
|
|
14
|
|
|
22
|
|
|
24
|
|
|
22
|
|
Allowance for
credit losses
|
|
$
|
23,127
|
|
|
$
|
23,304
|
|
|
$
|
23,739
|
|
|
$
|
21,363
|
|
|
$
|
21,188
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.97
|
%
|
|
0.98
|
%
|
|
1.10
|
%
|
|
0.80
|
%
|
|
0.93
|
%
|
Non-performing assets
to total assets
|
|
0.67
|
%
|
|
0.67
|
%
|
|
0.75
|
%
|
|
0.56
|
%
|
|
0.66
|
%
|
Allowance for loan
losses to total loans
|
|
0.89
|
%
|
|
0.90
|
%
|
|
0.92
|
%
|
|
0.86
|
%
|
|
0.85
|
%
|
Net charge-offs to
average loans (annualized)
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.07
|
%
|
|
0.26
|
%
|
|
0.07
|
%
|
|
0.11
|
%
|
|
0.16
|
%
|
Year-to-date
|
|
0.13
|
%
|
|
0.15
|
%
|
|
0.09
|
%
|
|
0.11
|
%
|
|
0.10
|
%
|
Allowance for loan
losses to non-performing loans
|
|
92.28
|
%
|
|
91.35
|
%
|
|
85.71
|
%
|
|
106.86
|
%
|
|
91.30
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.24
|
%
|
|
0.17
|
%
|
|
0.27
|
%
|
|
0.30
|
%
|
|
0.40
|
%
|
Reconciliation of
non-GAAP to GAAP Financial Measures
|
|
Efficiency
Ratio:
|
|
|
For
the
Three Months
Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Non-interest expense,
as presented
|
|
$
|
22,508
|
|
|
$
|
22,149
|
|
|
$
|
31,470
|
|
|
$
|
89,896
|
|
|
$
|
81,139
|
|
Less: merger and
acquisition costs
|
|
—
|
|
|
(45)
|
|
|
(8,786)
|
|
|
(866)
|
|
|
(10,415)
|
|
Adjusted non-interest
expense
|
|
$
|
22,508
|
|
|
$
|
22,104
|
|
|
$
|
22,684
|
|
|
$
|
89,030
|
|
|
$
|
70,724
|
|
Net interest income,
as presented
|
|
$
|
28,244
|
|
|
$
|
28,372
|
|
|
$
|
26,371
|
|
|
$
|
113,072
|
|
|
$
|
86,452
|
|
Add: effect of
tax-exempt income(1)
|
|
533
|
|
|
533
|
|
|
523
|
|
|
2,121
|
|
|
1,763
|
|
Non-interest income,
as presented
|
|
10,151
|
|
|
11,001
|
|
|
8,464
|
|
|
39,621
|
|
|
27,482
|
|
Less: net gain on
sale of securities
|
|
(47)
|
|
|
—
|
|
|
—
|
|
|
(51)
|
|
|
(4)
|
|
Adjusted net interest
income plus non-
interest income
|
|
$
|
38,881
|
|
|
$
|
39,906
|
|
|
$
|
35,358
|
|
|
$
|
154,763
|
|
|
$
|
115,693
|
|
Non-GAAP efficiency
ratio(2)
|
|
57.89
|
%
|
|
55.39
|
%
|
|
64.16
|
%
|
|
57.53
|
%
|
|
61.13
|
%
|
GAAP efficiency
ratio
|
|
58.62
|
%
|
|
56.25
|
%
|
|
90.34
|
%
|
|
58.87
|
%
|
|
71.22
|
%
|
(1) Assumed a 35% tax
rate.
|
(2) For the three
months and nine months ended September 30, 2016 non-GAAP efficiency
ratio has been adjusted from what was previously reported to remove
the adjustments to non-interest expense for bank-owned life
insurance death benefits and legal settlement proceeds. The Company
had previously reported a non-GAAP efficiency ratio for the three
and nine months ended of 56.29% and 57.92%, respectively, and as
revised was 55.39% and 57.40%.
|
|
|
Tax-Equivalent
Net Interest Income:
|
|
|
|
For
the
Three Months
Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Net interest income,
as presented
|
|
$
|
28,244
|
|
|
$
|
28,372
|
|
|
$
|
26,371
|
|
|
$
|
113,072
|
|
|
$
|
86,452
|
|
Add: effect of
tax-exempt income(1)
|
|
533
|
|
|
533
|
|
|
523
|
|
|
2,121
|
|
|
1,763
|
|
Net interest income,
tax equivalent
|
|
$
|
28,777
|
|
|
$
|
28,905
|
|
|
$
|
26,894
|
|
|
$
|
115,193
|
|
|
$
|
88,215
|
|
(1) Assumed a 35.0%
tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
(In thousands,
except number of shares and per share data)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
|
391,547
|
|
|
$
|
393,181
|
|
|
$
|
363,190
|
|
Less: goodwill and
other intangible assets
|
|
(101,461)
|
|
|
(101,937)
|
|
|
(104,324)
|
|
Tangible
equity
|
|
$
|
290,086
|
|
|
$
|
291,244
|
|
|
$
|
258,866
|
|
Shares outstanding at
period end
|
|
15,476,379
|
|
|
15,434,856
|
|
|
15,330,717
|
|
Tangible book value
per share
|
|
$
|
18.74
|
|
|
$
|
18.87
|
|
|
$
|
16.89
|
|
Book value per
share
|
|
$
|
25.30
|
|
|
$
|
25.47
|
|
|
$
|
23.69
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
3,864,230
|
|
|
$
|
3,903,966
|
|
|
$
|
3,709,344
|
|
Less: goodwill and
other intangibles
|
|
(101,461)
|
|
|
(101,937)
|
|
|
(104,324)
|
|
Tangible
assets
|
|
$
|
3,762,769
|
|
|
$
|
3,802,029
|
|
|
$
|
3,605,020
|
|
Tangible common
equity ratio
|
|
7.71
|
%
|
|
7.66
|
%
|
|
7.18
|
%
|
Shareholders' equity
to total assets
|
|
10.13
|
%
|
|
10.07
|
%
|
|
9.79
|
%
|
|
|
Adjusted Net
Income and Adjusted Diluted EPS:
|
|
|
For the
Three Months Ended
|
|
For the
Year Ended
|
(In thousands,
except per share data)
|
|
December 31,
2016
|
|
September
30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Adjusted Net
Income:
|
|
|
|
|
|
|
|
|
|
|
Net income, as
presented
|
|
$
|
10,902
|
|
|
$
|
10,903
|
|
|
$
|
1,692
|
|
|
$
|
40,067
|
|
|
$
|
20,952
|
|
Merger and
acquisition costs, net of tax(1)
|
|
—
|
|
|
30
|
|
|
5,970
|
|
|
563
|
|
|
7,237
|
|
Net gain on
sale of securities, net of tax(1)
|
|
(30)
|
|
|
—
|
|
|
—
|
|
|
(33)
|
|
|
(3)
|
|
Adjusted net
income
|
|
$
|
10,872
|
|
|
$
|
10,933
|
|
|
$
|
7,662
|
|
|
$
|
40,597
|
|
|
$
|
28,186
|
|
Adjusted
Diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
presented
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.11
|
|
|
$
|
2.57
|
|
|
$
|
1.73
|
|
Adjusted net income
impact
|
|
—
|
|
|
—
|
|
|
0.41
|
|
|
0.04
|
|
|
0.60
|
|
Adjusted diluted
EPS
|
|
$
|
0.70
|
|
|
$
|
0.70
|
|
|
$
|
0.52
|
|
|
$
|
2.61
|
|
|
$
|
2.33
|
|
(1) Assumed a 35% tax
rate for deductible expenses.
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return
on Average Tangible Equity and Adjusted Return on Average Tangible
Equity:
|
|
|
For the
Three Months Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December 31,
2016
|
|
September
30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Net income, as
presented
|
|
$
|
10,902
|
|
|
$
|
10,903
|
|
|
$
|
1,692
|
|
|
$
|
40,067
|
|
|
$
|
20,952
|
|
Amortization of
intangible assets, net of
tax(1)
|
|
309
|
|
|
309
|
|
|
289
|
|
|
1,237
|
|
|
849
|
|
Net income, adjusted
for amortization of
intangible assets
|
|
11,211
|
|
|
11,212
|
|
|
1,981
|
|
|
41,304
|
|
|
21,801
|
|
Merger and
acquisition costs, net of tax(2)
|
|
—
|
|
|
30
|
|
|
5,970
|
|
|
563
|
|
|
7,237
|
|
Net gain on
sale of securities, net of tax(1)
|
|
(30)
|
|
|
—
|
|
|
—
|
|
|
(33)
|
|
|
(3)
|
|
Adjusted tangible net
income
|
|
$
|
11,181
|
|
|
$
|
11,242
|
|
|
$
|
7,951
|
|
|
$
|
41,834
|
|
|
$
|
29,035
|
|
Average
equity
|
|
$
|
394,004
|
|
|
$
|
387,972
|
|
|
$
|
351,642
|
|
|
$
|
382,507
|
|
|
$
|
277,716
|
|
Less: average goodwill
and other
intangible assets
|
|
(101,689)
|
|
|
(102,168)
|
|
|
(87,814)
|
|
|
(102,711)
|
|
|
(57,833)
|
|
Average tangible
equity
|
|
$
|
292,315
|
|
|
$
|
285,804
|
|
|
$
|
263,828
|
|
|
$
|
279,796
|
|
|
$
|
219,883
|
|
Adjusted return on
average tangible equity
|
|
15.22
|
%
|
|
15.65
|
%
|
|
11.96
|
%
|
|
14.95
|
%
|
|
13.20
|
%
|
Return on average
tangible equity
|
|
15.26
|
%
|
|
15.61
|
%
|
|
2.98
|
%
|
|
14.76
|
%
|
|
9.91
|
%
|
Return on average
equity
|
|
11.01
|
%
|
|
11.18
|
%
|
|
1.91
|
%
|
|
10.47
|
%
|
|
7.54
|
%
|
(1) Assumed a 35% tax
rate.
|
(2) Assumed a 35% tax
rate for tax deductible expenses.
|
|
|
Adjusted Net
Interest Margin
|
|
|
For the
Three Months Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December 31,
2016
|
|
September
30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Net interest income,
tax equivalent, as
presented
|
|
$
|
28,777
|
|
|
$
|
28,905
|
|
|
$
|
26,894
|
|
|
$
|
115,193
|
|
|
$
|
88,215
|
|
Less: fair value mark
accretion from
purchase accounting
|
|
(912)
|
|
|
(1,030)
|
|
|
(737)
|
|
|
(5,082)
|
|
|
(812)
|
|
Less: collection of
previously charged-off
acquired loans
|
|
(94)
|
|
|
(208)
|
|
|
(52)
|
|
|
(1,078)
|
|
|
(52)
|
|
Adjusted net interest
income, tax equivalent
|
|
$
|
27,771
|
|
|
$
|
27,667
|
|
|
$
|
26,105
|
|
|
$
|
109,033
|
|
|
$
|
87,351
|
|
Average total
interest-earnings assets
|
|
$
|
3,493,921
|
|
|
$
|
3,526,353
|
|
|
$
|
3,229,710
|
|
|
$
|
3,466,601
|
|
|
$
|
2,764,568
|
|
Net interest margin
(fully-taxable
equivalent)(1)
|
|
3.26
|
%
|
|
3.24
|
%
|
|
3.30
|
%
|
|
3.32
|
%
|
|
3.19
|
%
|
Adjusted net interest
margin (fully-taxable
equivalent)(1)
|
|
3.14
|
%
|
|
3.10
|
%
|
|
3.22
|
%
|
|
3.15
|
%
|
|
3.16
|
%
|
(1)
Annualized.
|
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SOURCE Camden National Corporation