CAMDEN, Maine, Jan. 29, 2019 /PRNewswire/ -- Camden National
Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a
$4.3 billion bank holding company
headquartered in Camden, Maine,
reported net income for 2018 of $53.1
million and diluted earnings per share ("EPS") of
$3.39, representing an increase of
86% over 2017. Net income and diluted EPS for 2018 each grew 24%
over last year, adjusted for a $14.3
million income tax charge recorded in the fourth quarter of
2017 after the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was
enacted1. Return on average assets for 2018 was
1.28%, and return on average equity was 12.92% for the same
period.
"We are pleased to report that 2018 was a banner year for the
Company," said Gregory A. Dufour,
President and Chief Executive Officer of the Company. "We delivered
outstanding operating and financial performance driven by the
realization of many key investments we've made over the past
several years and the benefit of a lower federal income tax rate.
We experienced strong deposit growth of 15% during the year and
loan growth of 9% over the same period. At the same time, asset
quality continues to be excellent with non-performing assets
comprising just 34 basis points of total assets at year-end."
Net income for the fourth quarter of 2018 was $14.0 million and diluted EPS was $0.89, representing an increase over the fourth
quarter of 2017 of $17.2 million and
$1.09 per share, respectively, and a
slight decrease compared to the third quarter of 2018 of
$80,000 and $0.01 per share, respectively. Fourth quarter
2018 net income and diluted EPS grew $2.9
million and $0.18 per share,
respectively, over the fourth quarter of 2017, adjusted for a
$14.3 million income tax charge
recorded in the fourth quarter of 2017 due to the Tax
Act1.
"We had a great fourth quarter as loan balances grew 4% and
deposits grew 8%," said Dufour. "Our loan growth was funded by
low-cost deposits2, thus expanding net interest margin
to 3.21%, a 7 basis point increase over last quarter. Our
loan-to-deposit ratio at December 31,
2018, was 87%, positioning us well as we enter 2019."
In December 2018, the Company's
Board of Directors announced a dividend of $0.30 per share, reflecting a dividend yield of
3.34% on December 31, 2018. On
January 22, 2019, the Company
announced the approval of its common share repurchase program for
up to 775,000 shares, or approximately 5% of the Company's
outstanding common stock.
Dufour added, "In November 2018,
we announced the opening of our new prototype, state-of-the-art
banking center located in the Bill & Joan Alfond Main Street Commons in downtown
Waterville, Maine, following the
sale of the Company's Waterville
property to Colby College earlier this
year. The revitalization efforts by the City and Colby College have been nothing short of
extraordinary, and we are excited to be part of it."
Fourth Quarter
2018 Highlights:
|
|
Year-to-Date 2018
Highlights:
|
- Net income of $14.0
million and diluted EPS of $0.89
|
|
- Net income of $53.1
million and diluted EPS of $3.39
|
- Return on average
assets was 1.32% and return on average equity was
13.19%
|
|
- Return on average
assets was 1.28% and return on average equity was
12.92%
|
- Efficiency ratio on
a GAAP basis was 57.42% and on a non-GAAP basis
was 56.50%1
|
|
- Efficiency ratio on
a GAAP basis was 57.98% and on a non-GAAP basis
was 57.71%1
|
- Loan growth of 4%
and deposit growth of 8%
|
|
- Loan growth of 9%
and deposit growth of 15%
|
- Net recoveries of
$1.2 million
|
|
- Net charge-offs of
$304,000 and 0.01% of average loans
|
FINANCIAL CONDITION
Total assets at December 31, 2018,
grew 6% over last year to $4.3
billion. The loan portfolio increased $243.8 million, or 9%, in 2018 to $3.0 billion at December
31, 2018, led by residential and commercial real estate
growth of $134.5 million and
$105.5 million, respectively, while
consumer and home equity loan balances grew 2%. Over the same
period, commercial loans decreased 1% as the Healthcare
Professional Funding Corporation ("HPFC") loan portfolio continues
to run-off.
Total deposits at December 31,
2018, grew 15% over last year to $3.5
billion. Over this period, low-cost deposits2
increased $337.7 million, or 15%, to
$2.7 billion at December 31, 2018, led by an increase in checking
account deposits of $185.9 million
and savings and money market deposits of $151.8 million. At December 31, 2018, interest checking balances
included $75.0 million of temporary
funds which we anticipate will be fully withdrawn by March 31, 2019.
For 2018, average low-cost deposits2 balances grew
$221.1 million, or 10%, to
$2.4 billion for the year-ended
December 31, 2018. Over the same
period, average total borrowings decreased 10%.
The Company's capital position at December 31, 2018 was well in excess of
regulatory requirements, including a total risk-based capital ratio
of 14.36% and a Tier I leverage ratio of 9.53%. At December 31, 2018, the Company's book value per
share was $27.95, representing an 8%
increase over December 31, 2017, and
its tangible book value per share1 increased 10% over
the same period to $21.61 at
December 31, 2018.
ASSET QUALITY
Asset quality as of December 31,
2018 was very strong, continuing the trend from the previous
quarter. At December 31, 2018,
non-performing assets were 0.34% of total assets, and
non-performing loans were 0.48% of total loans, representing a
decrease of 0.12% and 0.17%, respectively, since September 30, 2018 and 0.16% and 0.25%,
respectively, since December 31,
2017. Loans 30-89 days past due were 0.29% of total loans at
December 31, 2018.
In the fourth quarter of 2018, a significant commercial credit
relationship previously on non-accrual was favorably resolved,
which drove a net recovery of $1.2
million for the quarter and net charge-offs of 0.01% of
average loans for the year. With this recovery, the provision for
credit losses was $7,000 for the
fourth quarter of 2018, and $847,000
for the year ended December 31, 2018.
At December 31, 2018, the allowance
for loan losses was 0.82% of total loans and 171.17% of
non-performing loans.
Q4 2018 FINANCIAL OPERATING RESULTS (linked quarter)
The Company reported net income of $14.0
million for the fourth quarter of 2018 and diluted EPS of
$0.89, representing a decrease of
$80,000 and $0.01 per share, respectively, compared to the
third quarter of 2018.
Net interest income of $31.6
million in the fourth quarter of 2018 increased $1.2 million over last quarter. The 4% increase
was driven by average deposits growth of $140.9 million, or 5%, between quarters. This
enabled the Company to fund its average loan growth of $75.0 million between quarters with lower-cost
funding and expand its net interest margin by 7 basis points to
3.21% for the fourth quarter of 2018.
Non-interest income of $9.5
million in the fourth quarter of 2018 decreased $913,000 compared to last quarter. The 9%
decrease was driven by (i) net losses from the sale of investment
securities of $420,000 recorded in
the fourth quarter of 2018 as a result of a portfolio re-balancing
effort, compared to net gains from the sale of investment
securities of $664,000 the previous
quarter, and (ii) a decrease in mortgage banking income of
$602,000 as we sold 36% of our
residential mortgage originations in the fourth quarter of 2018,
compared to 46% last quarter. This was partially offset by an
increase in debit card income of $666,000, of which $530,000 was attributable to an annual incentive
bonus received in the fourth quarter from VISA©.
The provision for credit losses for the fourth quarter was
$7,000, compared to $354,000 last quarter. The decrease was due to
$1.2 million in net recoveries in the
fourth quarter upon the favorable resolution of a large commercial
credit relationship.
Non-interest expense of $23.6
million for the fourth quarter of 2018 increased
$414,000 over last quarter. The 2%
increase was driven by (i) an increase in donation and
marketing-related costs of $194,000,
(ii) an increase in occupancy costs of $150,000 due to higher utility, heating and
ground maintenance costs during the winter months, and (iii) an
increase in collection-related costs of $131,000.
YEAR-TO-DATE FINANCIAL OPERATING RESULTS
The Company reported net income of $53.1
million and diluted EPS of $3.39 for the year ended December 31, 2018, representing an increase of
$24.6 million and $1.57 per share, respectively, over the same
period last year. In the fourth quarter of 2017 the Tax Act was
passed, reducing the federal income tax rate from 35% to 21%,
effective January 1, 2018, and a
$14.3 million income tax expense
charge was recorded. For the year-ended December 31, 2018, it's estimated that the lower
federal income tax rate benefit was $9.2
million.
Net interest income of $120.4
million in 2018 increased $5.1
million over 2017. The 4% increase was driven by:
- Average deposits growth of $222.4
million, or 8%, over last year.
- Average loans growth of $155.9
million, or 6%, over last year.
- Net interest margin on a fully-taxable basis for 2018 was
3.16%, compared to 3.19% last year. The decrease between periods
was due to lower accretion income on acquired loans and time
deposits of $902,000. Excluding
accretion income on acquired loans and time deposits, net interest
margin on a fully-taxable basis for 2018 was 3.10% for 2018 and
2017.
Non-interest income of $38.2
million in 2018 decreased 1% compared to 2017. The decrease
was driven by (i) a decrease in mortgage banking income of
$1.4 million as we sold 44% of our
residential mortgage originations in 2018, compared to 53% in 2017,
(ii) a decrease in loan swap fee income of $619,000, and (iii) a decrease in net gains from
the sale of investment securities of $580,000. This was partially offset by (i) an
increase in debit card income of $988,000, of which $506,000 was attributable to an increase in the
VISA© incentive bonus, and (ii) an increase in brokerage and
insurance commissions of $468,000.
The provision for credit losses for the year ended December 31, 2018, was $847,000, compared to $3.0
million for the same period last year. The decrease was due
to a decrease in non-performing loans of 29% since December 31, 2017, and net charge-offs of 0.01%
of average loans for the year ended December
31, 2018, compared to 0.07% for the same period last
year.
Non-interest expense for the year ended December 31, 2018, was $91.9 million, compared to $88.5 million for the same period last year. The
4% increase was driven by:
- An increase in compensation and related expenses of 5%, driven
by normal merit increases, additional positions added throughout
2018, and an 11% increase in health insurance costs.
- An increase in other expense of $864,000, of which $734,000 was employee- and business-related
travel costs.
- An increase in consulting and professional fees of $634,000, data processing costs of $608,000, and debit card expense of $425,000.
- The increase was partially offset by a decrease in intangible
amortization expense of $1.1
million.
1
|
This is a non-GAAP
measure. Please refer to "Reconciliation of non-GAAP to GAAP
Financial Measures" for further details.
|
2
|
Low-cost deposits
includes non-interest checking, interest checking, savings and
money market accounts.
|
ANNUAL MEETING
Camden National has scheduled its annual meeting of shareholders
for Tuesday, April 30, 2019, at
3:00 p.m. local time, at Point
Lookout Resort and Conference Center, 67 Atlantic Highway,
Northport, Maine 04849. The date
for determining the Company's shareholders of record for the annual
meeting is February 22, 2019.
CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m. Eastern Time on
January 29, 2019 to discuss our
fourth quarter and year-to-date 2018 financial results and outlook.
Participants should dial in to the call 10 - 15 minutes before it
begins. Information about the conference call is as follows:
Live dial-in (domestic): (888) 349-0139
Live dial-in (international): (412) 542-4154
Live webcast:
https://services.choruscall.com/links/cac190129.html
A link to the live webcast will be will be available on Camden
National's website under "Investor Relations" at CamdenNational.com
prior to the meeting. The transcript of the conference call will
also be available on Camden National's website approximately two
business days after the conference call.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ:CAC), headquartered in
Camden, Maine, is the largest
publicly traded bank holding company in Northern New England with
$4.3 billion in assets and nearly 650
employees. Camden National Bank, its
subsidiary, is a full-service community bank founded in 1875 that
offers an array of consumer and business financial products and
services, accompanied by the latest in digital banking technology
to empower customers to bank the way they want. The Bank provides
personalized service through a network of 60 banking centers, 71
ATMs, and lending offices in New
Hampshire and Massachusetts, all complemented by 24/7 live
phone support. Greenwich Associates named Camden National Bank a 2018 Greenwich Customer
Experience (CX) Leader in U.S. Retail Banking, a designation that
recognizes top U.S. banks in customer experience. In 2018,
Camden National Bank received the
"Lender at Work for Maine" Award from the Finance Authority of
Maine. Comprehensive wealth
management, investment, and financial planning services are
delivered by Camden National Wealth Management. To learn more,
visit CamdenNational.com. Member FDIC.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not
statements of historical fact constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended, including certain plans, expectations, goals,
projections and other statements, which are subject to numerous
risks, assumptions and uncertainties. Forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts. They often include words like
"believe," "expect," "anticipate," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could" or "may." Certain factors that could cause actual results
to differ materially from expected results include increased
competitive pressures; changes in the interest rate environment;
changes in general economic conditions; operational risks
including, but not limited to, cybersecurity, fraud and natural
disasters; legislative and regulatory changes that adversely affect
the business in which Camden National is engaged; changes in the
securities markets and other risks and uncertainties disclosed from
time to time in in Camden National's Annual Report on Form 10-K for
the year ended December 31, 2017, 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 adjusted net income, adjusted diluted
earnings per share, adjusted return on average assets, adjusted
return on average equity, and adjusted return on average tangible
equity; tangible common equity ratio; tangible book value per
share; and the efficiency ratio. 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.
Annualized data may not be indicative of any four-quarter period,
and are presented for illustrative purposes only.
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,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
926,678
|
|
|
$
|
887,835
|
|
|
$
|
907,642
|
|
|
$
|
926,678
|
|
|
$
|
907,642
|
|
Loans and loans held
for sale
|
|
3,030,625
|
|
|
2,919,001
|
|
|
2,790,542
|
|
|
3,030,625
|
|
|
2,790,542
|
|
Allowance for loan
losses
|
|
24,712
|
|
|
23,526
|
|
|
24,171
|
|
|
24,712
|
|
|
24,171
|
|
Total
assets
|
|
4,297,435
|
|
|
4,189,745
|
|
|
4,065,398
|
|
|
4,297,435
|
|
|
4,065,398
|
|
Deposits
|
|
3,464,474
|
|
|
3,220,755
|
|
|
3,000,491
|
|
|
3,464,474
|
|
|
3,000,491
|
|
Borrowings
|
|
341,515
|
|
|
479,498
|
|
|
611,498
|
|
|
341,515
|
|
|
611,498
|
|
Shareholders'
equity
|
|
435,825
|
|
|
415,686
|
|
|
403,413
|
|
|
435,825
|
|
|
403,413
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
31,587
|
|
|
$
|
30,423
|
|
|
$
|
29,659
|
|
|
$
|
120,393
|
|
|
$
|
115,300
|
|
Provision for credit
losses
|
|
7
|
|
|
354
|
|
|
238
|
|
|
847
|
|
|
3,035
|
|
Non-interest
income
|
|
9,479
|
|
|
10,392
|
|
|
9,840
|
|
|
38,176
|
|
|
38,599
|
|
Non-interest
expense
|
|
23,580
|
|
|
23,166
|
|
|
23,099
|
|
|
91,945
|
|
|
88,510
|
|
Income before income
tax expense
|
|
17,479
|
|
|
17,295
|
|
|
16,162
|
|
|
65,777
|
|
|
62,354
|
|
Income tax
expense
|
|
3,502
|
|
|
3,238
|
|
|
19,335
|
|
|
12,706
|
|
|
33,878
|
|
Net income
(loss)
|
|
$
|
13,977
|
|
|
$
|
14,057
|
|
|
$
|
(3,173)
|
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.32
|
%
|
|
1.34
|
%
|
|
(0.31)%
|
|
|
1.28
|
%
|
|
0.71
|
%
|
Return on average
equity
|
|
13.19
|
%
|
|
13.44
|
%
|
|
(3.02)%
|
|
|
12.92
|
%
|
|
7.00
|
%
|
Net interest
margin
|
|
3.21
|
%
|
|
3.14
|
%
|
|
3.20
|
%
|
|
3.16
|
%
|
|
3.19
|
%
|
Non-performing loans
to total loans
|
|
0.48
|
%
|
|
0.65
|
%
|
|
0.73
|
%
|
|
0.48
|
%
|
|
0.73
|
%
|
Non-performing assets
to total assets
|
|
0.34
|
%
|
|
0.46
|
%
|
|
0.50
|
%
|
|
0.34
|
%
|
|
0.50
|
%
|
Annualized net
(recoveries) charge-offs to average loans
|
|
(0.16)
|
%
|
|
0.07
|
%
|
|
0.07
|
%
|
|
0.01
|
%
|
|
0.07
|
%
|
Tier I leverage
capital ratio
|
|
9.53
|
%
|
|
9.42
|
%
|
|
9.07
|
%
|
|
9.53
|
%
|
|
9.07
|
%
|
Total risk-based
capital ratio
|
|
14.36
|
%
|
|
14.55
|
%
|
|
14.14
|
%
|
|
14.36
|
%
|
|
14.14
|
%
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.90
|
|
|
$
|
0.90
|
|
|
$
|
(0.20)
|
|
|
$
|
3.40
|
|
|
$
|
1.83
|
|
Diluted earnings per
share
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
(0.20)
|
|
|
$
|
3.39
|
|
|
$
|
1.82
|
|
Cash dividends
declared per share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
0.25
|
|
|
$
|
1.15
|
|
|
$
|
0.94
|
|
Book value per
share
|
|
$
|
27.95
|
|
|
$
|
26.79
|
|
|
$
|
25.99
|
|
|
$
|
27.95
|
|
|
$
|
25.99
|
|
Weighted average
number of common shares outstanding
|
|
15,589,310
|
|
|
15,580,782
|
|
|
15,521,447
|
|
|
15,571,387
|
|
|
15,509,665
|
|
Diluted weighted
average number of common shares outstanding
|
|
15,646,540
|
|
|
15,638,986
|
|
|
15,521,447
|
|
|
15,626,303
|
|
|
15,588,347
|
|
Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$
|
13,977
|
|
|
$
|
14,057
|
|
|
$
|
11,090
|
|
|
$
|
53,071
|
|
|
$
42,739
|
|
Adjusted return on
average assets
|
|
1.32
|
%
|
|
1.34
|
%
|
|
1.09
|
%
|
|
1.28
|
%
|
|
1.07
|
%
|
Adjusted return on
average equity
|
|
13.19
|
%
|
|
13.44
|
%
|
|
10.56
|
%
|
|
12.92
|
%
|
|
10.51
|
%
|
Adjusted return on
average tangible equity
|
|
17.43
|
%
|
|
17.84
|
%
|
|
14.20
|
%
|
|
17.22
|
%
|
|
14.35
|
%
|
Tangible common
equity ratio
|
|
8.02
|
%
|
|
7.74
|
%
|
|
7.66
|
%
|
|
8.02
|
%
|
|
7.66
|
%
|
Tangible book value
per share
|
|
$
|
21.61
|
|
|
$
|
20.31
|
|
|
$
|
19.57
|
|
|
$
|
21.61
|
|
|
$
19.57
|
|
Adjusted diluted
earnings per share
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
0.71
|
|
|
$
|
3.39
|
|
|
$
2.73
|
|
Efficiency
ratio
|
|
56.50
|
%
|
|
57.33
|
%
|
|
57.75
|
%
|
|
57.71
|
%
|
|
57.05
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please see
"Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
|
|
|
|
|
|
(In thousands, except number of shares)
|
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
52,240
|
|
|
$
|
48,124
|
|
|
$
|
44,057
|
|
Interest-bearing
deposits in other banks
|
|
14,759
|
|
|
50,218
|
|
|
58,914
|
|
Total cash, cash
equivalents and restricted cash
|
|
66,999
|
|
|
98,342
|
|
|
102,971
|
|
Investments:
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value(1)
|
|
910,692
|
|
|
869,626
|
|
|
789,899
|
|
Held-to-maturity
securities, at amortized cost (fair value of $1,291, $1,267 and
$94,913, respectively)(1)
|
|
1,307
|
|
|
1,308
|
|
|
94,073
|
|
Other
investments
|
|
14,679
|
|
|
16,901
|
|
|
23,670
|
|
Total
investments
|
|
926,678
|
|
|
887,835
|
|
|
907,642
|
|
Loans held for sale,
at fair value (book value of $4,315, $10,188 and $8,065,
respectively)
|
|
4,403
|
|
|
10,158
|
|
|
8,103
|
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,269,533
|
|
|
1,215,979
|
|
|
1,164,023
|
|
Residential real
estate
|
|
992,866
|
|
|
941,488
|
|
|
858,369
|
|
Commercial(2)
|
|
415,436
|
|
|
405,666
|
|
|
418,520
|
|
Consumer and home
equity
|
|
348,387
|
|
|
345,710
|
|
|
341,527
|
|
Total
loans
|
|
3,026,222
|
|
|
2,908,843
|
|
|
2,782,439
|
|
Less: allowance for
loan losses
|
|
(24,712)
|
|
|
(23,526)
|
|
|
(24,171)
|
|
Net
loans
|
|
3,001,510
|
|
|
2,885,317
|
|
|
2,758,268
|
|
Goodwill
|
|
94,697
|
|
|
94,697
|
|
|
94,697
|
|
Other intangible
assets
|
|
4,230
|
|
|
4,411
|
|
|
4,955
|
|
Bank-owned life
insurance
|
|
89,919
|
|
|
89,312
|
|
|
87,489
|
|
Premises and
equipment, net
|
|
42,495
|
|
|
41,277
|
|
|
41,891
|
|
Deferred tax
assets
|
|
23,053
|
|
|
26,241
|
|
|
22,776
|
|
Other
assets
|
|
43,451
|
|
|
52,155
|
|
|
36,606
|
|
Total
assets
|
|
$
|
4,297,435
|
|
|
$
|
4,189,745
|
|
|
$
|
4,065,398
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
592,781
|
|
|
$
|
564,113
|
|
|
$
|
478,643
|
|
Interest
checking
|
|
927,321
|
|
|
932,972
|
|
|
855,570
|
|
Savings and money
market
|
|
1,137,356
|
|
|
996,790
|
|
|
985,508
|
|
Certificates of
deposit
|
|
443,912
|
|
|
446,414
|
|
|
475,010
|
|
Brokered
deposits
|
|
363,104
|
|
|
280,466
|
|
|
205,760
|
|
Total
deposits
|
|
3,464,474
|
|
|
3,220,755
|
|
|
3,000,491
|
|
Short-term
borrowings
|
|
270,868
|
|
|
409,732
|
|
|
541,796
|
|
Long-term
borrowings
|
|
11,580
|
|
|
10,738
|
|
|
10,791
|
|
Subordinated
debentures
|
|
59,067
|
|
|
59,028
|
|
|
58,911
|
|
Accrued interest and
other liabilities
|
|
55,621
|
|
|
73,806
|
|
|
49,996
|
|
Total
liabilities
|
|
3,861,610
|
|
|
3,774,059
|
|
|
3,661,985
|
|
Shareholders'
equity
|
|
435,825
|
|
|
415,686
|
|
|
403,413
|
|
Total liabilities
and shareholders' equity
|
|
$
|
4,297,435
|
|
|
$
|
4,189,745
|
|
|
$
|
4,065,398
|
|
|
|
(1)
|
In the fourth quarter
of 2018, the Company adopted ASU 2017-12, effective January 1,
2018, and transferred its qualifying held-to maturity debt
securities to available-for-sale securities.
|
(2)
|
Includes the HPFC
loan portfolio.
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
For
The
Three Months
Ended
|
(In thousands, except per share data)
|
|
December
31,
2018
|
|
September
30,
2018
|
|
December
31,
2017
|
Interest
Income
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
34,532
|
|
|
$
|
32,813
|
|
|
$
|
29,728
|
|
Interest on U.S.
government and sponsored enterprise obligations
(taxable)
|
|
4,708
|
|
|
4,408
|
|
|
4,091
|
|
Interest on state and
political subdivision obligations (nontaxable)
|
|
659
|
|
|
659
|
|
|
685
|
|
Interest on deposits
in other banks and other investments
|
|
554
|
|
|
677
|
|
|
536
|
|
Total interest
income
|
|
40,453
|
|
|
38,557
|
|
|
35,040
|
|
Interest
Expense
|
|
|
|
|
|
|
Interest on
deposits
|
|
6,650
|
|
|
5,255
|
|
|
3,243
|
|
Interest on
borrowings
|
|
1,357
|
|
|
2,021
|
|
|
1,283
|
|
Interest on
subordinated debentures
|
|
859
|
|
|
858
|
|
|
855
|
|
Total interest
expense
|
|
8,866
|
|
|
8,134
|
|
|
5,381
|
|
Net interest
income
|
|
31,587
|
|
|
30,423
|
|
|
29,659
|
|
Provision for
credit losses
|
|
7
|
|
|
354
|
|
|
238
|
|
Net interest
income after provision for credit losses
|
|
31,580
|
|
|
30,069
|
|
|
29,421
|
|
Non-Interest
Income
|
|
|
|
|
|
|
Debit card
income
|
|
2,839
|
|
|
2,173
|
|
|
2,192
|
|
Service charges on
deposit accounts
|
|
1,984
|
|
|
1,910
|
|
|
1,897
|
|
Mortgage banking
income, net
|
|
1,156
|
|
|
1,758
|
|
|
1,797
|
|
Income from fiduciary
services
|
|
1,347
|
|
|
1,339
|
|
|
1,277
|
|
Brokerage and
insurance commissions
|
|
665
|
|
|
615
|
|
|
546
|
|
Bank-owned life
insurance
|
|
607
|
|
|
606
|
|
|
620
|
|
Other service charges
and fees
|
|
516
|
|
|
596
|
|
|
471
|
|
Net (loss) gain on
sale of securities
|
|
(420)
|
|
|
664
|
|
|
28
|
|
Other
income
|
|
785
|
|
|
731
|
|
|
1,012
|
|
Total non-interest
income
|
|
9,479
|
|
|
10,392
|
|
|
9,840
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
13,080
|
|
|
13,143
|
|
|
12,869
|
|
Furniture, equipment
and data processing
|
|
2,649
|
|
|
2,575
|
|
|
2,690
|
|
Net occupancy
costs
|
|
1,764
|
|
|
1,614
|
|
|
1,650
|
|
Consulting and
professional fees
|
|
874
|
|
|
958
|
|
|
706
|
|
Debit card
expense
|
|
841
|
|
|
833
|
|
|
721
|
|
Regulatory
assessments
|
|
490
|
|
|
447
|
|
|
559
|
|
Other real estate
owned and collection costs, net
|
|
370
|
|
|
239
|
|
|
413
|
|
Amortization of
intangible assets
|
|
181
|
|
|
182
|
|
|
392
|
|
Other
expenses
|
|
3,331
|
|
|
3,175
|
|
|
3,099
|
|
Total non-interest
expense
|
|
23,580
|
|
|
23,166
|
|
|
23,099
|
|
Income before
income tax expense
|
|
17,479
|
|
|
17,295
|
|
|
16,162
|
|
Income Tax
Expense
|
|
3,502
|
|
|
3,238
|
|
|
19,335
|
|
Net income
(loss)
|
|
$
|
13,977
|
|
|
$
|
14,057
|
|
|
$
|
(3,173)
|
|
Per Share
Data:
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.90
|
|
|
$
|
0.90
|
|
|
$
|
(0.20)
|
|
Diluted earnings per
share
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
(0.20)
|
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
Year
Ended
December
31,
|
(In thousands, except per share data)
|
|
2018
|
|
2017
|
Interest
Income
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
128,546
|
|
|
$
|
114,563
|
|
Interest on U.S.
government and sponsored enterprise obligations
(taxable)
|
|
17,727
|
|
|
16,879
|
|
Interest on state and
political subdivision obligations (nontaxable)
|
|
2,648
|
|
|
2,764
|
|
Interest on deposits
in other banks and other investments
|
|
2,456
|
|
|
1,898
|
|
Total interest
income
|
|
151,377
|
|
|
136,104
|
|
Interest
Expense
|
|
|
|
|
Interest on
deposits
|
|
20,113
|
|
|
11,811
|
|
Interest on
borrowings
|
|
7,456
|
|
|
5,585
|
|
Interest on
subordinated debentures
|
|
3,415
|
|
|
3,408
|
|
Total interest
expense
|
|
30,984
|
|
|
20,804
|
|
Net interest
income
|
|
120,393
|
|
|
115,300
|
|
Provision for
credit losses
|
|
847
|
|
|
3,035
|
|
Net interest
income after provision for credit losses
|
|
119,546
|
|
|
112,265
|
|
Non-Interest
Income
|
|
|
|
|
Debit card
income
|
|
9,067
|
|
|
8,079
|
|
Service charges on
deposit accounts
|
|
7,663
|
|
|
7,529
|
|
Mortgage banking
income, net
|
|
5,914
|
|
|
7,363
|
|
Income from fiduciary
services
|
|
5,376
|
|
|
5,108
|
|
Brokerage and
insurance commissions
|
|
2,615
|
|
|
2,147
|
|
Bank-owned life
insurance
|
|
2,430
|
|
|
2,370
|
|
Other service charges
and fees
|
|
2,080
|
|
|
2,029
|
|
Net gain on sale of
securities
|
|
275
|
|
|
855
|
|
Other
income
|
|
2,756
|
|
|
3,119
|
|
Total non-interest
income
|
|
38,176
|
|
|
38,599
|
|
Non-Interest
Expense
|
|
|
|
|
Salaries and employee
benefits
|
|
51,513
|
|
|
49,109
|
|
Furniture, equipment
and data processing
|
|
10,359
|
|
|
9,894
|
|
Net occupancy
costs
|
|
6,876
|
|
|
6,884
|
|
Consulting and
professional fees
|
|
3,752
|
|
|
3,118
|
|
Debit card
expense
|
|
3,180
|
|
|
2,755
|
|
Regulatory
assessments
|
|
1,937
|
|
|
2,166
|
|
Other real estate
owned and collection costs, net
|
|
935
|
|
|
971
|
|
Amortization of
intangible assets
|
|
725
|
|
|
1,809
|
|
Other
expenses
|
|
12,668
|
|
|
11,804
|
|
Total non-interest
expense
|
|
91,945
|
|
|
88,510
|
|
Income before
income tax expense
|
|
65,777
|
|
|
62,354
|
|
Income Tax
Expense
|
|
12,706
|
|
|
33,878
|
|
Net
income
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
Per Share
Data:
|
|
|
|
|
Basic earnings per
share
|
|
$
|
3.40
|
|
|
$
|
1.83
|
|
Diluted earnings per
share
|
|
$
|
3.39
|
|
|
$
|
1.82
|
|
Quarterly Average
Balance and Yield/Rate Analysis
(unaudited)
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
(In
thousands)
|
|
December
31,
2018
|
|
September
30,
2018
|
|
December
31,
2017
|
|
December
31,
2018
|
|
September
30,
2018
|
|
December
31,
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks(1)
|
|
$
|
24,620
|
|
|
$
|
45,824
|
|
|
$
|
49,826
|
|
|
1.57
|
%
|
|
1.85
|
%
|
|
1.11
|
%
|
Securities -
taxable
|
|
830,097
|
|
|
826,541
|
|
|
811,006
|
|
|
2.49
|
%
|
|
2.36
|
%
|
|
2.21
|
%
|
Securities -
nontaxable(2)
|
|
97,192
|
|
|
97,775
|
|
|
101,371
|
|
|
3.43
|
%
|
|
3.41
|
%
|
|
4.16
|
%
|
Loans(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,230,791
|
|
|
1,198,677
|
|
|
1,153,842
|
|
|
4.60
|
%
|
|
4.46
|
%
|
|
4.15
|
%
|
Residential real
estate
|
|
973,124
|
|
|
934,029
|
|
|
861,658
|
|
|
4.29
|
%
|
|
4.16
|
%
|
|
4.15
|
%
|
Commercial(2)
|
|
364,253
|
|
|
351,980
|
|
|
343,921
|
|
|
4.50
|
%
|
|
4.56
|
%
|
|
4.12
|
%
|
Consumer and home
equity
|
|
346,494
|
|
|
344,740
|
|
|
343,942
|
|
|
5.36
|
%
|
|
5.16
|
%
|
|
4.54
|
%
|
HPFC
|
|
35,163
|
|
|
38,356
|
|
|
46,565
|
|
|
7.66
|
%
|
|
7.64
|
%
|
|
8.14
|
%
|
Municipal(2)
|
|
17,520
|
|
|
24,603
|
|
|
18,442
|
|
|
3.28
|
%
|
|
3.06
|
%
|
|
3.73
|
%
|
Total loans
|
|
2,967,345
|
|
|
2,892,385
|
|
|
2,768,370
|
|
|
4.60
|
%
|
|
4.49
|
%
|
|
4.26
|
%
|
Total
interest-earning assets(1)
|
|
3,919,254
|
|
|
3,862,525
|
|
|
3,730,573
|
|
|
4.11
|
%
|
|
3.97
|
%
|
|
3.77
|
%
|
Other
assets(1)
|
|
294,178
|
|
|
301,489
|
|
|
308,523
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,213,432
|
|
|
$
|
4,164,014
|
|
|
$
|
4,039,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
577,177
|
|
|
$
|
517,651
|
|
|
$
|
486,753
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
941,439
|
|
|
865,012
|
|
|
824,247
|
|
|
0.80
|
%
|
|
0.54
|
%
|
|
0.28
|
%
|
Savings
|
|
483,651
|
|
|
483,577
|
|
|
497,929
|
|
|
0.06
|
%
|
|
0.06
|
%
|
|
0.06
|
%
|
Money
market
|
|
553,785
|
|
|
512,650
|
|
|
489,426
|
|
|
1.07
|
%
|
|
0.89
|
%
|
|
0.58
|
%
|
Certificates of
deposit
|
|
444,769
|
|
|
481,059
|
|
|
490,779
|
|
|
1.26
|
%
|
|
1.18
|
%
|
|
0.90
|
%
|
Total
deposits
|
|
3,000,821
|
|
|
2,859,949
|
|
|
2,789,134
|
|
|
0.65
|
%
|
|
0.53
|
%
|
|
0.36
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
307,559
|
|
|
272,471
|
|
|
217,328
|
|
|
2.28
|
%
|
|
2.07
|
%
|
|
1.35
|
%
|
Customer repurchase
agreements
|
|
265,675
|
|
|
244,189
|
|
|
254,529
|
|
|
1.22
|
%
|
|
1.08
|
%
|
|
0.50
|
%
|
Subordinated
debentures
|
|
59,048
|
|
|
59,009
|
|
|
58,892
|
|
|
5.77
|
%
|
|
5.77
|
%
|
|
5.76
|
%
|
Other
borrowings
|
|
93,181
|
|
|
249,341
|
|
|
257,420
|
|
|
2.29
|
%
|
|
2.16
|
%
|
|
1.48
|
%
|
Total
borrowings
|
|
725,463
|
|
|
825,010
|
|
|
788,169
|
|
|
2.18
|
%
|
|
2.07
|
%
|
|
1.45
|
%
|
Total funding
liabilities
|
|
3,726,284
|
|
|
3,684,959
|
|
|
3,577,303
|
|
|
0.94
|
%
|
|
0.88
|
%
|
|
0.60
|
%
|
Other
liabilities
|
|
66,805
|
|
|
64,119
|
|
|
44,979
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
420,343
|
|
|
414,936
|
|
|
416,814
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,213,432
|
|
|
$
|
4,164,014
|
|
|
$
|
4,039,096
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)(1)
|
|
3.17
|
%
|
|
3.09
|
%
|
|
3.17
|
%
|
Net interest
margin (fully-taxable equivalent)(1)
|
|
3.21
|
%
|
|
3.14
|
%
|
|
3.20
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of previously charged-off acquired
loans(1)(4)
|
|
3.14
|
%
|
|
3.09
|
%
|
|
3.13
|
%
|
|
|
(1)
|
Average balance for
the three months ended December 31, 2017, was revised to include
average interest-bearing deposits in other banks in total average
interest-earning assets.
|
(2)
|
Reported on
tax-equivalent basis calculated using the corporate federal income
tax rate in effect for the period, including certain commercial
loans.
|
(3)
|
Non-accrual loans and
loans held for sale are included in total average loans.
|
(4)
|
Excludes the impact
of the fair value mark accretion on loans and certificates of
deposit generated in purchase accounting and collection of
previously charged-off acquired loans for the three months ended
December 31, 2018, September 30, 2018, and December 31, 2017,
totaling $686,000, $434,000 and $689,000, respectively.
|
Year-to-Date
Average Balance and Yield/Rate Analysis
(unaudited)
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For the Year
Ended
|
|
For the Year
Ended
|
(In
thousands)
|
|
December
31,
2018
|
|
December
31,
2017
|
|
December
31,
2018
|
|
December
31,
2017
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks(1)
|
|
$
|
45,155
|
|
|
$
|
40,611
|
|
|
1.62
|
%
|
|
1.06
|
%
|
Securities -
taxable
|
|
829,462
|
|
|
$
|
826,749
|
|
|
2.35
|
%
|
|
2.22
|
%
|
Securities -
nontaxable(2)
|
|
98,128
|
|
|
101,898
|
|
|
3.42
|
%
|
|
4.17
|
%
|
Loans(3):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,195,544
|
|
|
1,120,591
|
|
|
4.47
|
%
|
|
4.11
|
%
|
Residential real
estate
|
|
913,593
|
|
|
838,781
|
|
|
4.19
|
%
|
|
4.12
|
%
|
Commercial(2)
|
|
354,508
|
|
|
336,685
|
|
|
4.50
|
%
|
|
4.21
|
%
|
Consumer and home
equity
|
|
343,292
|
|
|
343,457
|
|
|
5.08
|
%
|
|
4.45
|
%
|
HPFC
|
|
39,588
|
|
|
52,031
|
|
|
7.89
|
%
|
|
8.53
|
%
|
Municipal(2)
|
|
20,361
|
|
|
19,428
|
|
|
3.18
|
%
|
|
3.43
|
%
|
Total loans
|
|
2,866,886
|
|
|
2,710,973
|
|
|
4.49
|
%
|
|
4.25
|
%
|
Total
interest-earning assets(1)
|
|
3,839,631
|
|
|
3,680,231
|
|
|
3.97
|
%
|
|
3.76
|
%
|
Other
assets(1)
|
|
295,837
|
|
|
308,375
|
|
|
|
|
|
Total
assets
|
|
$
|
4,135,468
|
|
|
$
|
3,988,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
503,287
|
|
|
$
|
430,706
|
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
870,125
|
|
|
750,543
|
|
|
0.55
|
%
|
|
0.21
|
%
|
Savings
|
|
485,986
|
|
|
492,483
|
|
|
0.06
|
%
|
|
0.06
|
%
|
Money
market
|
|
515,590
|
|
|
480,119
|
|
|
0.87
|
%
|
|
0.52
|
%
|
Certificates of
deposit
|
|
467,631
|
|
|
466,418
|
|
|
1.13
|
%
|
|
0.88
|
%
|
Total
deposits
|
|
2,842,619
|
|
|
2,620,269
|
|
|
0.52
|
%
|
|
0.32
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
264,711
|
|
|
296,261
|
|
|
1.98
|
%
|
|
1.13
|
%
|
Customer repurchase
agreements
|
|
248,743
|
|
|
232,762
|
|
|
1.02
|
%
|
|
0.46
|
%
|
Subordinated
debentures
|
|
58,990
|
|
|
58,834
|
|
|
5.79
|
%
|
|
5.79
|
%
|
Other
borrowings
|
|
249,544
|
|
|
329,988
|
|
|
1.97
|
%
|
|
1.37
|
%
|
Total
borrowings
|
|
821,988
|
|
|
917,845
|
|
|
1.96
|
%
|
|
1.35
|
%
|
Total funding
liabilities
|
|
3,664,607
|
|
|
3,538,114
|
|
|
0.85
|
%
|
|
0.59
|
%
|
Other
liabilities
|
|
60,106
|
|
|
43,864
|
|
|
|
|
|
Shareholders'
equity
|
|
410,755
|
|
|
406,628
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,135,468
|
|
|
$
|
3,988,606
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)(1)
|
|
3.12
|
%
|
|
3.17
|
%
|
Net interest
margin (fully-taxable equivalent)(1)
|
|
3.16
|
%
|
|
3.19
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of previously
charged-off acquired loans(1)(4)
|
|
3.10
|
%
|
|
3.10
|
%
|
|
|
(1)
|
Average balance for
the year ended December 31, 2017, was revised to include average
interest-bearing deposits in other banks in total average
interest-earning assets.
|
(2)
|
Reported on
tax-equivalent basis calculated using the corporate federal income
tax rate in effect for the period, including certain commercial
loans.
|
(3)
|
Non-accrual loans and
loans held for sale are included in total average loans.
|
(4)
|
Excludes the impact
of the fair value mark accretion on loans and certificates of
deposit generated in purchase accounting and collection of
previously charged-off acquired loans for the years ended December
31, 2018 and 2017, totaling $2.3 million and $3.2 million,
respectively.
|
Asset Quality
Data
|
(unaudited)
|
(In
thousands)
|
|
At or For
The
Year
Ended
December 31,
2018
|
|
At or For The
Nine Months Ended
September 30, 2018
|
|
At or For The
Six Months Ended
June 30, 2018
|
|
At or For The
Three Months Ended
March 31, 2018
|
|
At or For The
Year Ended
December 31, 2017
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
5,492
|
|
|
$
|
4,720
|
|
|
$
|
5,742
|
|
|
$
|
6,185
|
|
|
$
|
4,979
|
|
Commercial real
estate
|
|
1,380
|
|
|
5,517
|
|
|
5,600
|
|
|
4,603
|
|
|
5,642
|
|
Commercial
|
|
1,279
|
|
|
2,402
|
|
|
1,934
|
|
|
1,991
|
|
|
2,000
|
|
Consumer
|
|
1,861
|
|
|
1,647
|
|
|
1,700
|
|
|
1,464
|
|
|
1,650
|
|
HPFC
|
|
518
|
|
|
591
|
|
|
834
|
|
|
655
|
|
|
1,043
|
|
Total non-accrual
loans
|
|
10,530
|
|
|
14,877
|
|
|
15,810
|
|
|
14,898
|
|
|
15,314
|
|
Loans 90 days past
due and accruing
|
|
14
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accruing
troubled-debt restructured loans
not included
above
|
|
3,893
|
|
|
4,039
|
|
|
4,000
|
|
|
4,361
|
|
|
5,012
|
|
Total
non-performing loans
|
|
14,437
|
|
|
18,930
|
|
|
19,810
|
|
|
19,259
|
|
|
20,326
|
|
Other real estate
owned
|
|
130
|
|
|
185
|
|
|
130
|
|
|
130
|
|
|
130
|
|
Total
non-performing assets
|
|
$
|
14,567
|
|
|
$
|
19,115
|
|
|
$
|
19,940
|
|
|
$
|
19,389
|
|
|
$
|
20,456
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
4,833
|
|
|
$
|
3,816
|
|
|
$
|
2,222
|
|
|
$
|
2,777
|
|
|
$
|
5,277
|
|
Commercial real
estate
|
|
2,130
|
|
|
574
|
|
|
309
|
|
|
1,121
|
|
|
1,135
|
|
Commercial
|
|
169
|
|
|
723
|
|
|
1,490
|
|
|
243
|
|
|
518
|
|
Consumer
|
|
1,467
|
|
|
902
|
|
|
1,258
|
|
|
1,190
|
|
|
1,197
|
|
HPFC
|
|
183
|
|
|
1,078
|
|
|
455
|
|
|
528
|
|
|
887
|
|
Total loans 30-89
days past due
|
|
$
|
8,782
|
|
|
$
|
7,093
|
|
|
$
|
5,734
|
|
|
$
|
5,859
|
|
|
$
|
9,014
|
|
Allowance for loan
losses at the beginning of the period
|
|
$
|
24,171
|
|
|
$
|
24,171
|
|
|
$
|
24,171
|
|
|
$
|
24,171
|
|
|
$
|
23,116
|
|
Provision (credit)
for loan losses
|
|
845
|
|
|
845
|
|
|
490
|
|
|
(500)
|
|
|
3,026
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
173
|
|
|
231
|
|
|
116
|
|
|
31
|
|
|
482
|
|
Commercial real
estate
|
|
512
|
|
|
512
|
|
|
512
|
|
|
426
|
|
|
124
|
|
Commercial
|
|
736
|
|
|
448
|
|
|
298
|
|
|
171
|
|
|
1,014
|
|
Consumer
|
|
572
|
|
|
451
|
|
|
266
|
|
|
175
|
|
|
558
|
|
HPFC
|
|
255
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
290
|
|
Total
charge-offs
|
|
2,248
|
|
|
1,851
|
|
|
1,192
|
|
|
803
|
|
|
2,468
|
|
Total
recoveries
|
|
(1,944)
|
|
|
(361)
|
|
|
(199)
|
|
|
(122)
|
|
|
(497)
|
|
Net
charge-offs
|
|
304
|
|
|
1,490
|
|
|
993
|
|
|
681
|
|
|
1,971
|
|
Allowance for loan
losses at the end of the period
|
|
$
|
24,712
|
|
|
$
|
23,526
|
|
|
$
|
23,668
|
|
|
$
|
22,990
|
|
|
$
|
24,171
|
|
Components of
allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
24,712
|
|
|
$
|
23,526
|
|
|
$
|
23,668
|
|
|
$
|
22,990
|
|
|
$
|
24,171
|
|
Liability for
unfunded credit commitments
|
|
22
|
|
|
15
|
|
|
16
|
|
|
23
|
|
|
20
|
|
Allowance for
credit losses
|
|
$
|
24,734
|
|
|
$
|
23,541
|
|
|
$
|
23,684
|
|
|
$
|
23,013
|
|
|
$
|
24,191
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.48
|
%
|
|
0.65
|
%
|
|
0.69
|
%
|
|
0.69
|
%
|
|
0.73
|
%
|
Non-performing assets
to total assets
|
|
0.34
|
%
|
|
0.46
|
%
|
|
0.48
|
%
|
|
0.47
|
%
|
|
0.50
|
%
|
Allowance for loan
losses to total loans
|
|
0.82
|
%
|
|
0.81
|
%
|
|
0.83
|
%
|
|
0.82
|
%
|
|
0.87
|
%
|
Net (recoveries)
charge-offs to average loans (annualized)
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
(0.16)%
|
|
|
0.07
|
%
|
|
0.04
|
%
|
|
0.10
|
%
|
|
0.07
|
%
|
Year-to-date
|
|
0.01
|
%
|
|
0.07
|
%
|
|
0.07
|
%
|
|
0.10
|
%
|
|
0.07
|
%
|
Allowance for loan
losses to non-performing loans
|
|
171.17
|
%
|
|
124.28
|
%
|
|
119.48
|
%
|
|
119.37
|
%
|
|
118.92
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.29
|
%
|
|
0.24
|
%
|
|
0.20
|
%
|
|
0.21
|
%
|
|
0.32
|
%
|
Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)
Adjusted Net
Income; Adjusted Diluted EPS; and Adjusted Return on Average
Assets:
|
|
|
For the
Three Months Ended
|
|
For the
Year Ended
|
(In thousands,
except per share data)
|
|
December
31,
2018
|
|
September
30,
2018
|
|
December
31,
2017
|
|
December
31,
2018
|
|
December
31,
2017
|
Adjusted Net
Income:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
presented
|
|
$
|
13,977
|
|
|
$
|
14,057
|
|
|
$
|
(3,173)
|
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
Add: impact of the
revaluation of deferred tax assets and liabilities due to the Tax
Act
|
|
—
|
|
|
—
|
|
|
14,263
|
|
|
—
|
|
|
14,263
|
|
Adjusted net
income
|
|
$
|
13,977
|
|
|
$
|
14,057
|
|
|
$
|
11,090
|
|
|
$
|
53,071
|
|
|
$
|
42,739
|
|
Adjusted
Diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, as
presented
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
(0.20)
|
|
|
$
|
3.39
|
|
|
$
|
1.82
|
|
Add: impact of the
revaluation of deferred tax assets and liabilities due to the Tax
Act
|
|
—
|
|
|
—
|
|
|
0.91
|
|
|
—
|
|
|
0.91
|
|
Adjusted diluted
EPS
|
|
$
|
0.89
|
|
|
$
|
0.90
|
|
|
$
|
0.71
|
|
|
$
|
3.39
|
|
|
$
|
2.73
|
|
Adjusted Return
on Average Assets:
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets, as presented
|
|
1.32
|
%
|
|
1.34
|
%
|
|
(0.31)%
|
|
|
1.28
|
%
|
|
0.71
|
%
|
Add: impact of the
revaluation of deferred tax assets and liabilities due to the Tax
Act
|
|
—
|
%
|
|
—
|
%
|
|
1.40
|
%
|
|
—
|
%
|
|
0.36
|
%
|
Adjusted return on
average assets
|
|
1.32
|
%
|
|
1.34
|
%
|
|
1.09
|
%
|
|
1.28
|
%
|
|
1.07
|
%
|
Adjusted Return
on Average Equity and Adjusted Return on Average Tangible
Equity:
|
|
|
For the
Three Months Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December
31,
2018
|
|
September
30,
2018
|
|
December
31,
2017
|
|
December
31,
2018
|
|
December
31,
2017
|
Net income (loss), as
presented
|
|
$
|
13,977
|
|
|
$
|
14,057
|
|
|
$
|
(3,173)
|
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
Add: impact of the
revaluation of deferred tax assets and liabilities due to the Tax
Act
|
|
—
|
|
|
—
|
|
|
14,263
|
|
|
—
|
|
|
14,263
|
|
Adjusted net
income
|
|
13,977
|
|
|
14,057
|
|
|
11,090
|
|
|
53,071
|
|
|
42,739
|
|
Add: amortization of
intangible assets, net of tax(1)
|
|
143
|
|
|
144
|
|
|
255
|
|
|
573
|
|
|
1,176
|
|
Adjusted tangible net
income
|
|
$
|
14,120
|
|
|
$
|
14,201
|
|
|
$
|
11,345
|
|
|
$
|
53,644
|
|
|
$
|
43,915
|
|
Average equity, as
presented
|
|
$
|
420,343
|
|
|
$
|
414,936
|
|
|
$
|
416,814
|
|
|
$
|
410,755
|
|
|
$
|
406,628
|
|
Less: average
goodwill and other intangible assets
|
|
(99,015)
|
|
|
(99,195)
|
|
|
(99,823)
|
|
|
(99,287)
|
|
|
(100,513)
|
|
Average tangible
equity
|
|
$
|
321,328
|
|
|
$
|
315,741
|
|
|
$
|
316,991
|
|
|
$
|
311,468
|
|
|
$
|
306,115
|
|
Return on average
equity
|
|
13.19
|
%
|
|
13.44
|
%
|
|
(3.02)%
|
|
|
12.92
|
%
|
|
7.00
|
%
|
Adjusted return on
average equity
|
|
13.19
|
%
|
|
13.44
|
%
|
|
10.56
|
%
|
|
12.92
|
%
|
|
10.51
|
%
|
Adjusted return on
average tangible equity
|
|
17.43
|
%
|
|
17.84
|
%
|
|
14.20
|
%
|
|
17.22
|
%
|
|
14.35
|
%
|
|
|
(1)
|
Reported on a
tax-equivalent basis using the corporate federal income tax rate in
effect for the respective period.
|
Efficiency
Ratio:
|
|
|
For
the
Three Months
Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
Non-interest expense,
as presented
|
|
$
|
23,580
|
|
|
$
|
23,166
|
|
|
$
|
23,099
|
|
|
$
|
91,945
|
|
|
$
|
88,510
|
|
Net interest income,
as presented
|
|
$
|
31,587
|
|
|
$
|
30,423
|
|
|
$
|
29,659
|
|
|
$
|
120,393
|
|
|
$
|
115,300
|
|
Add: effect of
tax-exempt income(1)
|
|
251
|
|
|
260
|
|
|
525
|
|
|
1,022
|
|
|
2,105
|
|
Non-interest income,
as presented
|
|
9,479
|
|
|
10,392
|
|
|
9,840
|
|
|
38,176
|
|
|
38,599
|
|
Add: net loss (gain)
on sale of securities
|
|
420
|
|
|
(664)
|
|
|
(28)
|
|
|
(275)
|
|
|
(855)
|
|
Adjusted net interest
income plus non-interest income
|
|
$
|
41,737
|
|
|
$
|
40,411
|
|
|
$
|
39,996
|
|
|
$
|
159,316
|
|
|
$
|
155,149
|
|
GAAP efficiency
ratio
|
|
57.42
|
%
|
|
56.76
|
%
|
|
58.48
|
%
|
|
57.98
|
%
|
|
57.51
|
%
|
Non-GAAP efficiency
ratio
|
|
56.50
|
%
|
|
57.33
|
%
|
|
57.75
|
%
|
|
57.71
|
%
|
|
57.05
|
%
|
|
|
(1)
|
Reported on a
tax-equivalent basis using the corporate federal income tax rate in
effect for the respective period.
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
(In thousands,
except number of shares and per share data)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
|
435,825
|
|
|
$
|
415,686
|
|
|
$
|
403,413
|
|
Less: goodwill and
other intangible assets
|
|
(98,927)
|
|
|
(99,108)
|
|
|
(99,652)
|
|
Tangible
shareholders' equity
|
|
$
|
336,898
|
|
|
$
|
316,578
|
|
|
$
|
303,761
|
|
Shares outstanding at
period end
|
|
15,591,914
|
|
|
15,584,526
|
|
|
15,524,704
|
|
Tangible book value
per share
|
|
$
|
21.61
|
|
|
$
|
20.31
|
|
|
$
|
19.57
|
|
Book value per
share
|
|
$
|
27.95
|
|
|
$
|
26.67
|
|
|
$
|
25.99
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
4,297,435
|
|
|
$
|
4,189,745
|
|
|
$
|
4,065,398
|
|
Less: goodwill and
other intangibles
|
|
(98,927)
|
|
|
(99,108)
|
|
|
(99,652)
|
|
Tangible
assets
|
|
$
|
4,198,508
|
|
|
$
|
4,090,637
|
|
|
$
|
3,965,746
|
|
Common equity
ratio
|
|
10.14
|
%
|
|
9.92
|
%
|
|
9.92
|
%
|
Tangible common
equity ratio
|
|
8.02
|
%
|
|
7.74
|
%
|
|
7.66
|
%
|
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