CAMDEN, Maine, July 28, 2020 /PRNewswire/ -- Camden
National Corporation (NASDAQ: CAC; "Camden National" or the
"Company"), a $5.0 billion bank
holding company headquartered in Camden,
Maine, reported net income for the second quarter 2020 of
$10.9 million, a decrease of 17%
compared to the second quarter of 2019, and diluted earnings per
share ("EPS") of $0.73, a decrease of
14% over the same period. The decrease in net income between
periods was driven by higher provision expense in response to the
COVID-19 pandemic. Second quarter 2020 pre-tax, pre-provision
earnings1 increased $5.4
million, or 31%, over the second quarter of 2019.
"Over the past several months, we have navigated new economic
and social challenges as a result of the COVID-19 pandemic," said
Gregory A. Dufour, President and
Chief Executive Officer of the Company. "The health and financial
well-being of our customers, employees, and communities has been
top of mind and a significant factor in the decisions made to date.
We recognize these are trying times for many, and we continue to
diligently support our constituents, which included providing over
2,900 Paycheck Protection Program loans to small businesses and
over 2,000 temporary loan payment deferrals to business and retail
customers through June 30."
Dufour added, "While the total financial impact of the COVID-19
pandemic remains unclear, we remain well-positioned to withstand
the uncertainty. We are fortifying our balance sheet as shown by
our pre-tax, pre-provision earnings1 contribution, which
is allowing us to build our reserves for loan losses that may occur
due to the changing economy."
SECOND QUARTER 2020 HIGHLIGHTS
- Net income decreased by 17% compared to the second quarter of
2019 and by 19% compared to the first quarter of 2020
- Second quarter 2020 pre-tax, pre-provision earnings1
increased 31% over the second quarter of 2019 and 24% over the
first quarter of 2020
- We continue to support our communities and customers through
the COVID-19 pandemic, highlighted by our lending and relief
efforts, which included originating 10% of the Small Business
Administration ("SBA") Paycheck Protection Program ("PPP") loans to
small businesses across Maine,
according to SBA data, and providing temporary debt relief on over
2,000 loans to business and retail customers through June 30, 2020
- Asset quality remains strong with non-performing assets of
0.23% of total loans as of June 30,
2020 and second quarter 2020 annualized net charge-offs of
0.05% of average loans
- Capital remains a source of strength with capital ratios well
in excess of regulatory capital thresholds and an allowance for
loan losses of 3.1 times non-performing loans as of June 30, 2020
FINANCIAL CONDITION
Assets. Total assets increased 12% since
December 31, 2019, to $5.0 billion at June 30,
2020. Asset growth was driven by loan growth, including
loans held for sale, of $255.8
million, or 8%, investments growth of $131.0 million, or 14%, and an increase in cash
balances of $80.2 million, or
106%.
Loans. For the six months ended June 30, 2020, commercial loans grew
$204.3 million, or 46%, driven by SBA
PPP loans. Through June 30, 2020, the
Company originated 2,919 PPP loans with total balances of
$237.0 million. At June 30, 2020, outstanding PPP loan balances were
$225.8 million.
Over the same period, commercial real estate loans grew
$67.6 million, or 5%, driven by
funding of prior period loan commitments, while consumer and home
equity loans decreased 7% and residential mortgage loans decreased
2%.
Through the first six months of 2020, the Company originated
$461.5 million of residential
mortgages and sold 58% of its production to the secondary market.
In comparison, for the same period last year, the Company
originated $214.5 million and sold
46% of its production. Residential mortgage refinance activity was
67% of total production for the six months ended June 30, 2020, compared to 28% for the same
period last year.
Cash and Investments. Strong deposit growth in the
first half of 2020 of $458.6 million,
or 13%, led to an increase in cash and investments. The Company
designated its investment purchases as available-for-sale ("AFS")
to secure its liquidity position. At June
30, 2020, the Company's AFS investments were in an
unrealized gain position of $37.3
million, compared to $4.1
million at December 31, 2019,
driven by the lower interest rate environment between periods.
Goodwill. In light of recent events related to the
COVID-19 pandemic and its impact on the broad equity markets and
economy, the Company assessed its goodwill for impairment in the
second quarter of 2020 by calculating its estimated fair value and
comparing to its book value. As of June 30,
2020, the Company concluded its goodwill was not
impaired.
Deposits and Borrowings. Deposits increased 13% since
December 31, 2019, to $4.0 billion at June 30,
2020. For the six months ended June
30, 2020, checking account balances grew $355.8 million, or 21%, and savings and money
market balances grew $159.4 million,
or 14%. The increase in deposits was driven by various factors in
response to the COVID-19 pandemic, including the federal government
stimulus programs and a shift in consumer habits as the national
personal savings rate reached 23% in May
2020.
The Company's loan-to-deposit ratio was 83% at June 30, 2020, compared to 87% at December 31, 2019 and 86% at June 30, 2019.
Total borrowings decreased 2% since December 31, 2019 to $330.2 million at June 30,
2020. The Company continues to primarily use short-term
borrowings to supplement funding in the current low interest rate
environment. In the first half of 2020, it also locked-in long-term
funding at interest rates below 1%.
Shareholders' Equity. The Company continues to be
well-positioned from a capital perspective to withstand the
economic uncertainty surrounding the COVID-19 pandemic. At
June 30, 2020, the Company's capital
position was well in excess of regulatory requirements, including a
total risk-based capital ratio of 14.56%, a tier 1 risk-based
capital ratio of 13.01%, common equity tier 1 risk-based capital
ratio of 11.69%, and a tier 1 leverage ratio of 8.95%.
Additionally, at June 30, 2020, the
Company's common equity ratio was 10.21% and tangible common equity
ratio1 was 8.41%.
In June 2020, the Company
announced a cash dividend to shareholders of $0.33 per share, consistent with that issued for
the first quarter of 2020. The cash dividend is payable to
shareholders of record as of July 15,
2020, and shareholders will begin receiving payments on
July 31, 2020. As of June 30, 2020, the Company's annualized dividend
yield was 3.82% based on Camden National's closing share price of
$34.54, as reported by NASDAQ.
The Company suspended its share repurchase program during the
first quarter of 2020 in response to the COVID-19 pandemic. We will
continue to evaluate our use of the share repurchase program as the
impact and our response to the COVID-19 pandemic develops.
ASSET QUALITY
As of June 30, 2020, the Company's
asset quality metrics continue to be stable and consistent with
past quarters.
- Non-performing assets were 0.23% of total assets at
June 30, 2020, compared to 0.23% and
0.25% at March 31, 2020 and
December 31, 2019, respectively.
- Past due loans were 0.19% of total loans at June 30, 2020, compared to 0.24% and 0.17% at
March 31, 2020 and December 31, 2019, respectively.
- Net charge-offs (annualized) for the second quarter of 2020
were 0.05% of average loans, compared to 0.05% for the first
quarter of 2020 and 0.09% for the fourth quarter of 2019.
COVID-19 Loan Modification Program. In March 2020, the Company began offering temporary
debt relief to business and retail customers impacted by the
COVID-19 pandemic. Generally, the terms of this initial temporary
debt relief program provided customers with 90 to 180 days of
payment deferral. All loan modifications made by the Company
complied with the terms of the Coronavirus Aid, Relief, and
Economic Security Act ("CARES Act") or bank regulator guidance,
and, thus, were not designated or accounted for as troubled-debt
restructurings.
Through June 30, 2020, the Company
had modified 2,064 business and retail customer loans to provide
temporary debt relief to customers impacted by the COVID-19
pandemic. As of June 30, 2020, 1,763
customer loans with total loan balances of $546.7 million were still under the terms of a
COVID-19 loan modification. As the original loan modification term
matures, the Company may, at its discretion, extend or modify the
loan terms again. With many of the original loan modifications
maturing in July, the Company is currently engaged in discussion
with these customers to determine if further payment relief is
needed. The terms of those loan modifications will be on a
case-by-case assessment, and may include an extension of payment
deferral in full or in part.
Allowance for Credit Losses and Provision Expense.
The provision for credit losses for the three and six months ended
June 30, 2020 was $9.4 million and $11.2
million, respectively, compared to $1.2 million and $1.9
million for the three and six months ended June 30, 2019. While asset quality was strong at
June 30, 2020, the increase in
provision expense between periods reflects a measure of impact
attributed to the COVID-19 pandemic, based on available information
at that time, which includes consideration of loan modification
levels and industry risk.
At June 30, 2020, the Company's
allowance for loan losses was $35.5
million, or 1.07% of total loans and 3.1 times
non-performing loans, compared to $25.2
million, or 0.81% of total loans and 2.3 times
non-performing loans, at December 31,
2019.
CECL. In the first quarter of 2020, the Company
chose to delay its implementation of the current expected credit
losses model, commonly referred to as "CECL," in accordance with
the provisions of the CARES Act. As such, the reported allowance
for credit losses and related provision expense for the three and
six months ended June 30, 2020 was
accounted for under the incurred loss model. In accordance with the
CARES Act, the Company will delay implementation of CECL until the
earlier of (i) the date on which the national emergency concerning
the COVID-19 pandemic terminates, or (ii) December 31, 2020.
While the Company has not yet adopted CECL, it estimates that as
of June 30, 2020, the allowance for
credit losses under CECL, which is comprised of allowance for loan
losses and unfunded commitments, would have been $40.0 million to $44.0
million, or 1.20% to 1.32% of loans at June 30, 2020.
FINANCIAL OPERATING RESULTS (Q2 2020 vs. Q2 2019)
Net income for the second quarter of 2020 was $10.9 million, a decrease of $2.3 million, or 17%, compared to the second
quarter of 2019. Diluted EPS for the second quarter of 2020 was
$0.73, a decrease of $0.12, or 14%. Lower earnings between periods was
driven by an increase in provision expense of $8.2 million.
Net Interest Income. Net interest income for the
second quarter of 2020 was $34.5
million, an increase of $3.0
million, or 9%, over the second quarter of 2019 due to an
increase in average interest-earning assets of 10%. Net interest
margin for the second quarter of 2020 and 2019 was 3.11%.
Average interest-earning assets for the second quarter of 2020
were $4.5 billion, an increase of
$394.5 million over the second
quarter of 2019. The primary drivers for the growth between periods
included (i) average loan growth of 8% and (ii) an increase in
average cash and investment balances of 14%. The largest driver of
average loan growth between periods was an increase in average PPP
loans of $178.1 million during the
second quarter of 2020.
Net interest margin for the second quarter of 2020 and 2019 was
3.11%. The make-up of net interest margin between periods varied
significantly due to the change in interest rates and the roll-out
of PPP loans in the second quarter of 2020.
- The 10-year U.S. Treasury rate averaged 0.69% in the second
quarter of 2020, compared to 2.34% for the second quarter of 2019.
The decrease in benchmark interest rates drove a decrease in yield
on interest-earnings assets of 0.65% to 3.53% for the second
quarter of 2020, and was partially offset by $1.7 million of PPP loan income recognized in the
second quarter of 2020 with an average yield of 3.79%.
- The Federal Funds rate throughout the quarter was 0.25%,
compared to 2.50% for the second quarter of 2019. In response to
decreasing asset yields and funding rates, the Company effectively
managed its cost of funds down to minimize the impact of the
interest rate environment on net interest margin. Deposit costs
decreased 0.51% between periods to 0.35% for the second quarter of
2020. Our cost of funds for the second quarter of 2020 was 0.44%,
compared to 1.13% for the second quarter of 2019.
Provision for Credit Losses. The provision for
credit losses for the second quarter of 2020 was $9.4 million, compared to $1.2 million for the second quarter of 2019. The
increase in provision expense between periods was driven by an
increase in allowance for loan losses due to estimates attributed
to the COVID-19 pandemic.
Non-Interest Income. Non-interest income for the
second quarter of 2020 was $12.1
million, an increase of $2.0
million, or 20%, over the second quarter of 2019.
- Mortgage banking income for the second quarter of 2020
increased $2.9 million over the
second quarter of 2019 as mortgage refinance activity was strong
due to the low interest rate environment. Refinance activity was
71% of unit production in the second quarter of 2020, compared to
25% for the second quarter of 2019.
- Service charges on deposit accounts for the second quarter of
2020 decreased $872,000, compared to
the second quarter of 2019 due to lower overdraft fees and deposit
account fees as customer deposit balances increased but the number
of customer transactions decreased.
Non-Interest Expense. Non-interest expense for the
second quarter of 2020 was $23.5
million, a decrease of $449,000, or 2%, compared to the second quarter
of 2019. Certain costs were lower between periods as priorities
shifted and employees transitioned to working remotely in response
to the COVID-19 pandemic, while other costs increased to ensure the
safety and health of our employees during this unprecedented
time.
FINANCIAL OPERATING RESULTS (Q2 2020 vs. Q1 2020)
Net income between quarters decreased $2.6 million, or 19%, and diluted EPS decreased
$0.16, or 18%, over the same period.
Lower earnings between quarters was driven by an increase in
provision expense of $7.6
million.
Net Interest Income. Net interest income increased
$2.7 million, or 9%, between quarters
as net interest margin increased 3 basis points to 3.11% for the
second quarter of 2020 and average loan growth was $187.2 million, or 6%. The decrease in cost
of funds between quarters of 0.42% outpaced the decrease in yield
on interest-earning assets of 0.37%. The decrease in yields and
cost of funds reflects the current interest rate environment as
loans and deposits are originated and reprice to historically low
levels. Average loan growth between periods was driven by PPP loan
originations, which averaged $178.1
million for the second quarter of 2020.
Provision for Credit Losses. The provision for
credit losses increased $7.6 million
between quarters. The increase in provision expense between periods
was driven by an increase in allowance for loan losses due to
estimates attributed to the COVID-19 pandemic.
Non-Interest Income. Non-interest income increased
$657,000, or 6%, between
quarters.
- Mortgage banking income increased $1.2
million, or 33%, between periods as mortgage and refinance
activity momentum continued into the second quarter of 2020 and
interest rates remained low.
- Debit card income increased $250,000, or 12%, driven by higher customer
spending as the increase in the average spend per transaction more
than offset the decrease in the number of transactions.
- Service charges on deposit accounts between quarters decreased
$675,000, or 34%, due to lower
overdraft fees and deposit account fees as customer deposit
balances increased but the number of customer transactions
decreased.
Non-Interest Expense. Non-interest expense
decreased $1.1 million, or 4%,
between quarters. The decrease was driven by (i) lower
employee-related costs as employees transitioned to remote working
in the second quarter of 2020; (ii) lower marketing costs; and
(iii) a decrease in incentive accruals. This was partially offset
by the annual equity award grant to Company directors in the second
quarter of 2020.
CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m., Eastern Time, on
Tuesday, July 28, 2020 to discuss its
second quarter 2020 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/cac200728.html
A link to the live webcast will be available on Camden
National's website under "Investor Relations" at
www.CamdenNational.com prior to the meeting, and a replay of the
webcast will be available on Camden National's website following
the conference call. The transcript of the conference call will
also be available on Camden National's website approximately two
days after the conference call.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ:CAC) is the largest publicly
traded bank holding company in Northern New England with
$5.0 billion in assets and 650
employees. Camden National Bank, its
subsidiary, is a full-service community bank founded in 1875 in
Camden, Maine. Dedicated to
customers at every stage of their financial journey, the bank
offers the latest in digital banking, complemented by personalized
service with 58 banking centers, 24/7 live phone support, 68 ATMs,
and additional lending offices in New
Hampshire and Massachusetts. For the past two years,
Camden National Bank was named
"Customer Experience Leader in U.S. Retail Banking" by Greenwich
Associates, and in 2019, it was the only New England based
organization included in Sandler O'Neill's "Bank and Thrift Sm-All
Star" list of high-performing financial institutions. The Finance
Authority of Maine has awarded
Camden National Bank as "Lender at
Work for Maine" for ten years.
Comprehensive wealth management, investment and financial planning
services are delivered by Camden National Wealth Management. To
learn more, visit CamdenNational.com. Member FDIC.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not
statements of historical fact constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended, including certain plans, expectations, goals,
projections and other statements, which are subject to numerous
risks, assumptions and uncertainties. Forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts. They often include words like
"believe," "expect," "anticipate," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could" or "may." Certain factors that could cause actual results
to differ materially from expected results include increased
competitive pressures; changes in the interest rate environment;
changes in general economic conditions; operational risks
including, but not limited to, cybersecurity, fraud and natural
disasters; legislative and regulatory changes that adversely affect
the business in which Camden National is engaged; changes in the
securities markets and other risks and uncertainties disclosed from
time to time in in Camden National's Annual Report on Form 10-K for
the year ended December 31, 2019, as
updated by other filings with the Securities and Exchange
Commission ("SEC"). Further, statements about the potential effects
of the COVID-19 pandemic on our business, results of operations and
financial condition may constitute forward-looking statements and
are subject to the risk that the actual effects may differ,
possibly materially, from what is reflected in those
forward-looking statements due to factors and future developments
that are uncertain, unpredictable and in many cases beyond our
control, including the scope and duration of the pandemic, action
taken by government authorities in response to the pandemic, and
the direct and indirect impact of the pandemic on our customers,
service providers and on economies and markets more generally.
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 pre-tax, pre-provision earnings; return
on average tangible equity; the efficiency and tangible common
equity ratios; tangible book value per share; core deposits and
average core deposits. Management utilizes these non-GAAP financial
measures for purposes of measuring our performance against our peer
group and other financial institutions and analyzing our internal
performance. We also believe these non-GAAP financial measure help
investors better understand the Company's operating performance and
trends and allow for better performance comparisons to other
financial institutions. In addition, these non-GAAP financial
measures remove the impact of unusual items that may obscure trends
in the Company's underlying performance. These disclosures should
not be viewed as a substitute for GAAP operating results, nor are
they necessarily comparable to non-GAAP performance measures that
may be presented by other financial institutions. Reconciliation to
the comparable GAAP financial measure can be found in this
document.
ANNUALIZED DATA
Certain returns, yields and performance ratios are presented on
an "annualized" basis. This is done for analytical and
decision-making purposes to better discern underlying performance
trends when compared to full-year or year-over-year amounts.
Annualized data may not be indicative of any four-quarter period,
and are presented for illustrative purposes only.
|
|
1
|
This is a non-GAAP
measure. Please refer to "Reconciliation of non-GAAP to GAAP
Financial Measures" for further details.
|
Selected Financial
Data
(unaudited)
|
|
|
|
At or For
The
Three Months
Ended
|
|
At or For The
Six Months Ended
|
(In thousands,
except number of shares and per share data)
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,064,089
|
|
|
$
|
976,487
|
|
|
$
|
933,100
|
|
|
$
|
1,064,089
|
|
|
$
|
933,100
|
|
Loans and loans held
for sale
|
|
3,362,631
|
|
|
3,185,492
|
|
|
3,113,437
|
|
|
3,362,631
|
|
|
3,113,437
|
|
Allowance for loan
losses
|
|
35,539
|
|
|
26,521
|
|
|
26,163
|
|
|
35,539
|
|
|
26,163
|
|
Total
assets
|
|
4,959,016
|
|
|
4,594,539
|
|
|
4,447,038
|
|
|
4,959,016
|
|
|
4,447,038
|
|
Deposits
|
|
3,996,358
|
|
|
3,563,705
|
|
|
3,591,610
|
|
|
3,996,358
|
|
|
3,591,610
|
|
Borrowings
|
|
330,229
|
|
|
420,877
|
|
|
310,638
|
|
|
330,229
|
|
|
310,638
|
|
Shareholders'
equity
|
|
506,467
|
|
|
492,680
|
|
|
467,759
|
|
|
506,467
|
|
|
467,759
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
34,539
|
|
|
$
|
31,826
|
|
|
$
|
31,573
|
|
|
$
|
66,365
|
|
|
$
|
63,468
|
|
Provision for credit
losses
|
|
9,398
|
|
|
1,775
|
|
|
1,173
|
|
|
11,173
|
|
|
1,917
|
|
Non-interest
income
|
|
12,060
|
|
|
11,403
|
|
|
10,037
|
|
|
23,463
|
|
|
19,426
|
|
Non-interest
expense
|
|
23,509
|
|
|
24,561
|
|
|
23,958
|
|
|
48,070
|
|
|
46,741
|
|
Income before income
tax expense
|
|
13,692
|
|
|
16,893
|
|
|
16,479
|
|
|
30,585
|
|
|
34,236
|
|
Income tax
expense
|
|
2,752
|
|
|
3,400
|
|
|
3,275
|
|
|
6,152
|
|
|
6,759
|
|
Net income
|
|
$
|
10,940
|
|
|
$
|
13,493
|
|
|
$
|
13,204
|
|
|
$
|
24,433
|
|
|
$
|
27,477
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.90
|
%
|
|
1.21
|
%
|
|
1.21
|
%
|
|
1.05
|
%
|
|
1.27
|
%
|
Return on average
equity
|
|
8.81
|
%
|
|
11.30
|
%
|
|
11.63
|
%
|
|
10.03
|
%
|
|
12.36
|
%
|
GAAP efficiency
ratio
|
|
50.45
|
%
|
|
56.82
|
%
|
|
57.58
|
%
|
|
53.51
|
%
|
|
56.39
|
%
|
Net interest margin
(fully-taxable equivalent)
|
|
3.11
|
%
|
|
3.08
|
%
|
|
3.11
|
%
|
|
3.10
|
%
|
|
3.14
|
%
|
Non-performing assets
to total assets
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.34
|
%
|
|
0.23
|
%
|
|
0.34
|
%
|
Common equity
ratio
|
|
10.21
|
%
|
|
10.72
|
%
|
|
10.52
|
%
|
|
10.21
|
%
|
|
10.52
|
%
|
Tier 1 leverage
capital ratio
|
|
8.95
|
%
|
|
9.53
|
%
|
|
9.51
|
%
|
|
8.95
|
%
|
|
9.51
|
%
|
Common equity tier 1
risk-based capital ratio
|
|
11.69
|
%
|
|
11.27
|
%
|
|
11.47
|
%
|
|
11.69
|
%
|
|
11.47
|
%
|
Tier 1 risk-based
capital ratio
|
|
13.01
|
%
|
|
12.56
|
%
|
|
12.82
|
%
|
|
13.01
|
%
|
|
12.82
|
%
|
Total risk-based
capital ratio
|
|
14.56
|
%
|
|
13.81
|
%
|
|
14.12
|
%
|
|
14.56
|
%
|
|
14.12
|
%
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.73
|
|
|
$
|
0.89
|
|
|
$
|
0.85
|
|
|
$
|
1.62
|
|
|
$
|
1.76
|
|
Diluted earnings per
share
|
|
$
|
0.73
|
|
|
$
|
0.89
|
|
|
$
|
0.85
|
|
|
$
|
1.62
|
|
|
$
|
1.76
|
|
Cash dividends
declared per share
|
|
$
|
0.33
|
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.66
|
|
|
$
|
0.60
|
|
Book value per
share
|
|
$
|
33.85
|
|
|
$
|
32.95
|
|
|
$
|
30.26
|
|
|
$
|
33.85
|
|
|
$
|
30.26
|
|
Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
|
11.09
|
%
|
|
14.35
|
%
|
|
15.00
|
%
|
|
12.68
|
%
|
|
16.01
|
%
|
Efficiency
ratio
|
|
50.13
|
%
|
|
56.45
|
%
|
|
57.27
|
%
|
|
53.17
|
%
|
|
56.07
|
%
|
Pre-tax,
pre-provision earnings
|
|
$
|
23,090
|
|
|
$
|
18,668
|
|
|
$
|
17,652
|
|
|
$
|
41,758
|
|
|
$
|
36,153
|
|
Tangible common
equity ratio
|
|
8.41
|
%
|
|
8.78
|
%
|
|
8.49
|
%
|
|
8.41
|
%
|
|
8.49
|
%
|
Tangible book value
per share
|
|
$
|
27.31
|
|
|
$
|
26.39
|
|
|
$
|
23.88
|
|
|
$
|
27.31
|
|
|
$
|
23.88
|
|
|
|
(1)
|
Please see
"Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
|
|
(In thousands)
|
|
June 30,
2020
|
|
December 31,
2019
|
|
June 30,
2019
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
56,292
|
|
|
$
|
39,586
|
|
|
$
|
48,153
|
|
Interest-bearing
deposits in other banks (including restricted cash)
|
|
99,536
|
|
|
36,050
|
|
|
38,083
|
|
Total cash, cash
equivalents and restricted cash
|
|
155,828
|
|
|
75,636
|
|
|
86,236
|
|
Investments:
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value (book value of $1,010,325, $913,978 and
$915,099, respectively)
|
|
1,047,663
|
|
|
918,118
|
|
|
920,083
|
|
Held-to-maturity
securities, at amortized cost (fair value of $1,388, $1,359 and
$1,335, respectively)
|
|
1,299
|
|
|
1,302
|
|
|
1,304
|
|
Other
investments
|
|
15,127
|
|
|
13,649
|
|
|
11,713
|
|
Total
investments
|
|
1,064,089
|
|
|
933,069
|
|
|
933,100
|
|
Loans held for sale,
at fair value (book value of $35,909, $11,915 and $13,088,
respectively)
|
|
36,590
|
|
|
11,854
|
|
|
13,113
|
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,310,985
|
|
|
1,243,397
|
|
|
1,260,639
|
|
Commercial(1)
|
|
428,186
|
|
|
442,701
|
|
|
456,692
|
|
SBA PPP
|
|
218,803
|
|
|
—
|
|
|
—
|
|
Residential real
estate
|
|
1,054,333
|
|
|
1,070,374
|
|
|
1,035,792
|
|
Consumer and home
equity
|
|
313,734
|
|
|
338,551
|
|
|
347,201
|
|
Total
loans
|
|
3,326,041
|
|
|
3,095,023
|
|
|
3,100,324
|
|
Less: allowance for
loan losses
|
|
(35,539)
|
|
|
(25,171)
|
|
|
(26,163)
|
|
Net
loans
|
|
3,290,502
|
|
|
3,069,852
|
|
|
3,074,161
|
|
Goodwill
|
|
94,697
|
|
|
94,697
|
|
|
94,697
|
|
Core deposit
intangible assets
|
|
3,184
|
|
|
3,525
|
|
|
3,877
|
|
Bank-owned life
insurance
|
|
93,647
|
|
|
92,344
|
|
|
91,116
|
|
Premises and
equipment, net
|
|
41,109
|
|
|
41,836
|
|
|
41,402
|
|
Deferred tax
assets
|
|
10,705
|
|
|
16,823
|
|
|
16,836
|
|
Other
assets
|
|
168,665
|
|
|
89,885
|
|
|
92,500
|
|
Total
assets
|
|
$
|
4,959,016
|
|
|
$
|
4,429,521
|
|
|
$
|
4,447,038
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
712,146
|
|
|
$
|
552,590
|
|
|
$
|
505,355
|
|
Interest
checking
|
|
1,349,456
|
|
|
1,153,203
|
|
|
1,111,424
|
|
Savings and money
market
|
|
1,278,603
|
|
|
1,119,193
|
|
|
1,074,094
|
|
Certificates of
deposit
|
|
431,376
|
|
|
521,752
|
|
|
547,786
|
|
Brokered
deposits
|
|
224,777
|
|
|
191,005
|
|
|
352,951
|
|
Total
deposits
|
|
3,996,358
|
|
|
3,537,743
|
|
|
3,591,610
|
|
Short-term
borrowings
|
|
245,998
|
|
|
268,809
|
|
|
241,647
|
|
Long-term
borrowings
|
|
25,000
|
|
|
10,000
|
|
|
10,000
|
|
Subordinated
debentures
|
|
59,231
|
|
|
59,080
|
|
|
58,991
|
|
Accrued interest and
other liabilities
|
|
125,962
|
|
|
80,474
|
|
|
77,031
|
|
Total
liabilities
|
|
4,452,549
|
|
|
3,956,106
|
|
|
3,979,279
|
|
Shareholders'
equity
|
|
506,467
|
|
|
473,415
|
|
|
467,759
|
|
Total liabilities
and shareholders' equity
|
|
$
|
4,959,016
|
|
|
$
|
4,429,521
|
|
|
$
|
4,447,038
|
|
|
|
(1)
|
Includes the
HPFC loan portfolio.
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
|
For
The
Three Months
Ended
|
(In thousands, except per share data)
|
|
June 30,
2020
|
|
March
31,
2020
|
|
June 30,
2019
|
Interest
Income
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
33,120
|
|
|
$
|
34,045
|
|
|
$
|
36,092
|
|
Taxable interest on
investments
|
|
4,883
|
|
|
4,878
|
|
|
4,941
|
|
Nontaxable interest
on investments
|
|
828
|
|
|
787
|
|
|
624
|
|
Dividend
income
|
|
167
|
|
|
168
|
|
|
174
|
|
Other interest
income
|
|
180
|
|
|
335
|
|
|
606
|
|
Total interest
income
|
|
39,178
|
|
|
40,213
|
|
|
42,437
|
|
Interest
Expense
|
|
|
|
|
|
|
Interest on
deposits
|
|
3,392
|
|
|
6,662
|
|
|
9,156
|
|
Interest on
borrowings
|
|
359
|
|
|
838
|
|
|
885
|
|
Interest on
subordinated debentures
|
|
888
|
|
|
887
|
|
|
823
|
|
Total interest
expense
|
|
4,639
|
|
|
8,387
|
|
|
10,864
|
|
Net interest
income
|
|
34,539
|
|
|
31,826
|
|
|
31,573
|
|
Provision for
credit losses
|
|
9,398
|
|
|
1,775
|
|
|
1,173
|
|
Net interest
income after provision for credit losses
|
|
25,141
|
|
|
30,051
|
|
|
30,400
|
|
Non-Interest
Income
|
|
|
|
|
|
|
Mortgage banking
income, net
|
|
4,691
|
|
|
3,534
|
|
|
1,742
|
|
Debit card
income
|
|
2,391
|
|
|
2,141
|
|
|
2,281
|
|
Service charges on
deposit accounts
|
|
1,337
|
|
|
2,012
|
|
|
2,209
|
|
Income from fiduciary
services
|
|
1,603
|
|
|
1,502
|
|
|
1,545
|
|
Bank-owned life
insurance
|
|
614
|
|
|
689
|
|
|
603
|
|
Brokerage and
insurance commissions
|
|
622
|
|
|
657
|
|
|
732
|
|
Customer loan swap
fees
|
|
57
|
|
|
114
|
|
|
285
|
|
Net gain on sale of
securities
|
|
—
|
|
|
—
|
|
|
27
|
|
Other
income
|
|
745
|
|
|
754
|
|
|
613
|
|
Total non-interest
income
|
|
12,060
|
|
|
11,403
|
|
|
10,037
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
13,627
|
|
|
14,327
|
|
|
13,461
|
|
Furniture, equipment
and data processing
|
|
2,710
|
|
|
2,790
|
|
|
2,723
|
|
Net occupancy
costs
|
|
1,997
|
|
|
2,003
|
|
|
1,639
|
|
Consulting and
professional fees
|
|
1,181
|
|
|
783
|
|
|
974
|
|
Debit card
expense
|
|
878
|
|
|
934
|
|
|
883
|
|
Regulatory
assessments
|
|
299
|
|
|
162
|
|
|
437
|
|
Amortization of core
deposit intangible assets
|
|
171
|
|
|
170
|
|
|
176
|
|
Other real estate
owned and collection costs, net
|
|
98
|
|
|
101
|
|
|
409
|
|
Other
expenses
|
|
2,548
|
|
|
3,291
|
|
|
3,256
|
|
Total non-interest
expense
|
|
23,509
|
|
|
24,561
|
|
|
23,958
|
|
Income before
income tax expense
|
|
13,692
|
|
|
16,893
|
|
|
16,479
|
|
Income Tax
Expense
|
|
2,752
|
|
|
3,400
|
|
|
3,275
|
|
Net
Income
|
|
$
|
10,940
|
|
|
$
|
13,493
|
|
|
$
|
13,204
|
|
Per Share
Data
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.73
|
|
|
$
|
0.89
|
|
|
$
|
0.85
|
|
Diluted earnings per
share
|
|
$
|
0.73
|
|
|
$
|
0.89
|
|
|
$
|
0.85
|
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
|
For
The
Six Months
Ended
June 30,
|
(In thousands, except per
share data)
|
|
2020
|
|
2019
|
Interest
Income
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
67,165
|
|
|
$
|
71,813
|
|
Taxable interest on
investments
|
|
9,761
|
|
|
9,935
|
|
Nontaxable interest
on investments
|
|
1,615
|
|
|
1,268
|
|
Dividend
income
|
|
335
|
|
|
404
|
|
Other interest
income
|
|
515
|
|
|
1,026
|
|
Total interest
income
|
|
79,391
|
|
|
84,446
|
|
Interest
Expense
|
|
|
|
|
Interest on
deposits
|
|
10,054
|
|
|
17,579
|
|
Interest on
borrowings
|
|
1,197
|
|
|
1,859
|
|
Interest on
subordinated debentures
|
|
1,775
|
|
|
1,540
|
|
Total interest
expense
|
|
13,026
|
|
|
20,978
|
|
Net interest
income
|
|
66,365
|
|
|
63,468
|
|
Provision for
credit losses
|
|
11,173
|
|
|
1,917
|
|
Net interest
income after provision for credit losses
|
|
55,192
|
|
|
61,551
|
|
Non-Interest
Income
|
|
|
|
|
Mortgage banking
income, net
|
|
8,225
|
|
|
2,994
|
|
Debit card
income
|
|
4,532
|
|
|
4,291
|
|
Service charges on
deposit accounts
|
|
3,349
|
|
|
4,232
|
|
Income from fiduciary
services
|
|
3,105
|
|
|
2,937
|
|
Bank-owned life
insurance
|
|
1,303
|
|
|
1,197
|
|
Brokerage and
insurance commissions
|
|
1,279
|
|
|
1,317
|
|
Customer loan swap
fees
|
|
171
|
|
|
810
|
|
Net gain on sale of
securities
|
|
—
|
|
|
27
|
|
Other
income
|
|
1,499
|
|
|
1,621
|
|
Total non-interest
income
|
|
23,463
|
|
|
19,426
|
|
Non-Interest
Expense
|
|
|
|
|
Salaries and employee
benefits
|
|
27,954
|
|
|
26,439
|
|
Furniture, equipment
and data processing
|
|
5,500
|
|
|
5,403
|
|
Net occupancy
costs
|
|
4,000
|
|
|
3,553
|
|
Consulting and
professional fees
|
|
1,964
|
|
|
1,787
|
|
Debit card
expense
|
|
1,812
|
|
|
1,706
|
|
Regulatory
assessments
|
|
461
|
|
|
909
|
|
Amortization of core
deposit intangible assets
|
|
341
|
|
|
352
|
|
Other real estate
owned and collection costs, net
|
|
199
|
|
|
102
|
|
Other
expenses
|
|
5,839
|
|
|
6,490
|
|
Total non-interest
expense
|
|
48,070
|
|
|
46,741
|
|
Income before
income tax expense
|
|
30,585
|
|
|
34,236
|
|
Income Tax
Expense
|
|
6,152
|
|
|
6,759
|
|
Net
Income
|
|
$
|
24,433
|
|
|
$
|
27,477
|
|
Per Share
Data
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.62
|
|
|
$
|
1.76
|
|
Diluted earnings per
share
|
|
$
|
1.62
|
|
|
$
|
1.76
|
|
Quarterly Average
Balance and Yield/Rate Analysis
(unaudited)
|
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For The Three
Months Ended
|
|
For The Three
Months Ended
|
(Dollars in
thousands)
|
|
June 30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
|
168,221
|
|
|
$
|
66,180
|
|
|
$
|
59,901
|
|
|
0.06
|
%
|
|
1.24
|
%
|
|
2.34
|
%
|
Investments -
taxable
|
|
836,885
|
|
|
809,041
|
|
|
839,714
|
|
|
2.49
|
%
|
|
2.56
|
%
|
|
2.56
|
%
|
Investments -
nontaxable(1)
|
|
124,101
|
|
|
117,537
|
|
|
90,087
|
|
|
3.38
|
%
|
|
3.39
|
%
|
|
3.51
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,302,393
|
|
|
1,273,538
|
|
|
1,255,172
|
|
|
3.83
|
%
|
|
4.24
|
%
|
|
4.68
|
%
|
Residential real
estate
|
|
1,084,931
|
|
|
1,078,836
|
|
|
1,032,215
|
|
|
4.06
|
%
|
|
4.19
|
%
|
|
4.34
|
%
|
Commercial(1)
|
|
404,545
|
|
|
416,527
|
|
|
389,166
|
|
|
3.78
|
%
|
|
4.21
|
%
|
|
4.72
|
%
|
Consumer and home
equity
|
|
321,019
|
|
|
334,771
|
|
|
347,141
|
|
|
4.29
|
%
|
|
5.03
|
%
|
|
5.47
|
%
|
SBA PPP
|
|
178,119
|
|
|
—
|
|
|
—
|
|
|
3.79
|
%
|
|
—
|
%
|
|
—
|
%
|
HPFC
|
|
17,659
|
|
|
20,336
|
|
|
29,472
|
|
|
9.28
|
%
|
|
7.83
|
%
|
|
7.83
|
%
|
Municipal(1)
|
|
19,567
|
|
|
16,990
|
|
|
20,117
|
|
|
3.62
|
%
|
|
3.67
|
%
|
|
3.56
|
%
|
Total loans
|
|
3,328,233
|
|
|
3,140,998
|
|
|
3,073,283
|
|
|
3.97
|
%
|
|
4.32
|
%
|
|
4.68
|
%
|
Total
interest-earning assets
|
|
4,457,440
|
|
|
4,133,756
|
|
|
4,062,985
|
|
|
3.53
|
%
|
|
3.90
|
%
|
|
4.18
|
%
|
Other
assets
|
|
414,225
|
|
|
354,436
|
|
|
315,604
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,871,665
|
|
|
$
|
4,488,192
|
|
|
$
|
4,378,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
664,605
|
|
|
$
|
529,501
|
|
|
$
|
485,724
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,298,468
|
|
|
1,146,783
|
|
|
1,110,567
|
|
|
0.28
|
%
|
|
0.70
|
%
|
|
1.01
|
%
|
Savings
|
|
518,803
|
|
|
476,849
|
|
|
476,104
|
|
|
0.06
|
%
|
|
0.07
|
%
|
|
0.09
|
%
|
Money
market
|
|
717,056
|
|
|
650,383
|
|
|
581,638
|
|
|
0.37
|
%
|
|
0.98
|
%
|
|
1.28
|
%
|
Certificates of
deposit
|
|
477,068
|
|
|
552,079
|
|
|
516,972
|
|
|
1.34
|
%
|
|
1.61
|
%
|
|
1.60
|
%
|
Total
deposits
|
|
3,676,000
|
|
|
3,355,595
|
|
|
3,171,005
|
|
|
0.35
|
%
|
|
0.70
|
%
|
|
0.86
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
234,823
|
|
|
208,084
|
|
|
370,448
|
|
|
0.28
|
%
|
|
1.54
|
%
|
|
2.53
|
%
|
Customer repurchase
agreements
|
|
209,302
|
|
|
236,351
|
|
|
246,935
|
|
|
0.56
|
%
|
|
1.08
|
%
|
|
1.30
|
%
|
Subordinated
debentures
|
|
59,194
|
|
|
59,119
|
|
|
58,985
|
|
|
6.03
|
%
|
|
6.04
|
%
|
|
5.60
|
%
|
Other
borrowings
|
|
76,983
|
|
|
59,257
|
|
|
15,940
|
|
|
0.35
|
%
|
|
1.39
|
%
|
|
2.17
|
%
|
Total
borrowings
|
|
580,302
|
|
|
562,811
|
|
|
692,308
|
|
|
0.98
|
%
|
|
1.80
|
%
|
|
2.34
|
%
|
Total funding
liabilities
|
|
4,256,302
|
|
|
3,918,406
|
|
|
3,863,313
|
|
|
0.44
|
%
|
|
0.86
|
%
|
|
1.13
|
%
|
Other
liabilities
|
|
115,914
|
|
|
89,612
|
|
|
59,747
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
499,449
|
|
|
480,174
|
|
|
455,529
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,871,665
|
|
|
$
|
4,488,192
|
|
|
$
|
4,378,589
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.09
|
%
|
|
3.04
|
%
|
|
3.05
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.11
|
%
|
|
3.08
|
%
|
|
3.11
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of previously charged-off acquired
loans(3)
|
|
3.07
|
%
|
|
3.06
|
%
|
|
3.07
|
%
|
|
|
(1)
|
Reported on a
tax-equivalent basis calculated using the federal corporate income
tax rate of 21%, including certain commercial loans.
|
(2)
|
Non-accrual loans and
loans held for sale are included in total average loans.
|
(3)
|
Excludes the impact
of the fair value mark accretion on loans and certificates of
deposit generated in purchase accounting and collection of
previously charged-off acquired loans for the three months ended
June 30, 2020, March 31, 2020 and June 30, 2019 totaling $403,000,
$283,000 and $439,000, respectively.
|
Year-to-Date
Average Balance and Yield/Rate Analysis
(unaudited)
|
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For The Six Months
Ended
|
|
For The Six Months
Ended
|
(Dollars in
thousands)
|
|
June
30,
2020
|
|
June
30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
|
117,201
|
|
|
$
|
48,301
|
|
|
0.39
|
%
|
|
2.27
|
%
|
Investments -
taxable
|
|
822,963
|
|
|
845,583
|
|
|
2.52
|
%
|
|
2.56
|
%
|
Investments -
nontaxable(1)
|
|
120,819
|
|
|
92,386
|
|
|
3.38
|
%
|
|
3.48
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,287,965
|
|
|
1,268,264
|
|
|
4.03
|
%
|
|
4.71
|
%
|
Residential real
estate
|
|
1,081,884
|
|
|
1,020,316
|
|
|
4.12
|
%
|
|
4.32
|
%
|
Commercial(1)
|
|
410,563
|
|
|
379,552
|
|
|
4.00
|
%
|
|
4.71
|
%
|
Consumer and home
equity
|
|
327,895
|
|
|
347,097
|
|
|
4.66
|
%
|
|
5.46
|
%
|
SBA PPP
|
|
89,033
|
|
|
—
|
|
|
3.79
|
%
|
|
—
|
%
|
HPFC
|
|
18,997
|
|
|
30,814
|
|
|
8.50
|
%
|
|
7.87
|
%
|
Municipal(1)
|
|
18,279
|
|
|
17,738
|
|
|
3.64
|
%
|
|
3.58
|
%
|
Total loans
|
|
3,234,616
|
|
|
3,063,781
|
|
|
4.14
|
%
|
|
4.69
|
%
|
Total
interest-earning assets
|
|
4,295,599
|
|
|
4,050,051
|
|
|
3.71
|
%
|
|
4.19
|
%
|
Other
assets
|
|
384,330
|
|
|
308,579
|
|
|
|
|
|
Total
assets
|
|
$
|
4,679,929
|
|
|
$
|
4,358,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
597,053
|
|
|
$
|
488,040
|
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,222,626
|
|
|
1,098,003
|
|
|
0.48
|
%
|
|
0.99
|
%
|
Savings
|
|
497,826
|
|
|
480,849
|
|
|
0.07
|
%
|
|
0.08
|
%
|
Money
market
|
|
683,720
|
|
|
582,158
|
|
|
0.66
|
%
|
|
1.25
|
%
|
Certificates of
deposit
|
|
514,573
|
|
|
480,244
|
|
|
1.48
|
%
|
|
1.48
|
%
|
Total
deposits
|
|
3,515,798
|
|
|
3,129,294
|
|
|
0.52
|
%
|
|
0.82
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
221,454
|
|
|
388,045
|
|
|
0.87
|
%
|
|
2.51
|
%
|
Customer repurchase
agreements
|
|
222,827
|
|
|
242,740
|
|
|
0.83
|
%
|
|
1.27
|
%
|
Subordinated
debentures
|
|
59,157
|
|
|
58,996
|
|
|
6.03
|
%
|
|
5.26
|
%
|
Other
borrowings
|
|
68,120
|
|
|
30,237
|
|
|
0.80
|
%
|
|
2.21
|
%
|
Total
borrowings
|
|
571,558
|
|
|
720,018
|
|
|
1.38
|
%
|
|
2.31
|
%
|
Total funding
liabilities
|
|
4,087,356
|
|
|
3,849,312
|
|
|
0.64
|
%
|
|
1.10
|
%
|
Other
liabilities
|
|
102,762
|
|
|
61,000
|
|
|
|
|
|
Shareholders'
equity
|
|
489,811
|
|
|
448,318
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,679,929
|
|
|
$
|
4,358,630
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.07
|
%
|
|
3.09
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.10
|
%
|
|
3.14
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of previously charged-off acquired
loans(3)
|
|
3.06
|
%
|
|
3.10
|
%
|
|
|
(1)
|
Reported on a
tax-equivalent basis calculated using the federal corporate income
tax rate of 21%, including certain commercial loans.
|
(2)
|
Non-accrual loans and
loans held for sale are included in total average loans.
|
(3)
|
Excludes the impact
of the fair value mark accretion on loans and certificates of
deposit generated in purchase accounting and collection of
previously charged-off acquired loans for the six months ended June
30, 2020 and June 30, 2019 totaling $687,000 and $829,000,
respectively.
|
Asset Quality
Data
|
(unaudited)
|
|
(In
thousands)
|
|
At or For The
Six Months Ended
June 30, 2020
|
|
At or For The
Three Months Ended
March 31, 2020
|
|
At or For The
Year Ended
December 31, 2019
|
|
At or For The
Nine Months Ended
September 30, 2019
|
|
At or For The
Six Months Ended
June 30, 2019
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
4,664
|
|
|
$
|
3,499
|
|
|
$
|
4,096
|
|
|
$
|
5,152
|
|
|
$
|
5,566
|
|
Commercial real
estate
|
|
432
|
|
|
646
|
|
|
1,122
|
|
|
1,156
|
|
|
1,590
|
|
Commercial
|
|
699
|
|
|
748
|
|
|
420
|
|
|
751
|
|
|
785
|
|
Consumer and home
equity
|
|
2,371
|
|
|
2,102
|
|
|
2,154
|
|
|
2,616
|
|
|
3,039
|
|
HPFC
|
|
392
|
|
|
322
|
|
|
364
|
|
|
450
|
|
|
465
|
|
Total non-accrual
loans
|
|
8,558
|
|
|
7,317
|
|
|
8,156
|
|
|
10,125
|
|
|
11,445
|
|
Loans 90 days past
due and accruing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
Accruing
troubled-debt restructured loans not
included above
|
|
2,874
|
|
|
3,008
|
|
|
2,993
|
|
|
3,259
|
|
|
3,511
|
|
Total
non-performing loans
|
|
11,432
|
|
|
10,325
|
|
|
11,149
|
|
|
13,384
|
|
|
14,970
|
|
Other real estate
owned
|
|
118
|
|
|
94
|
|
|
94
|
|
|
94
|
|
|
130
|
|
Total
non-performing assets
|
|
$
|
11,550
|
|
|
$
|
10,419
|
|
|
$
|
11,243
|
|
|
$
|
13,478
|
|
|
$
|
15,100
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
4,016
|
|
|
$
|
1,781
|
|
|
$
|
2,227
|
|
|
$
|
1,447
|
|
|
$
|
2,536
|
|
Commercial real
estate
|
|
1,625
|
|
|
2,641
|
|
|
1,582
|
|
|
2,242
|
|
|
3,378
|
|
Commercial
|
|
95
|
|
|
1,560
|
|
|
548
|
|
|
1,135
|
|
|
1,400
|
|
Consumer and home
equity
|
|
388
|
|
|
1,379
|
|
|
750
|
|
|
822
|
|
|
907
|
|
HPFC
|
|
128
|
|
|
165
|
|
|
243
|
|
|
193
|
|
|
171
|
|
Total loans 30-89
days past due
|
|
$
|
6,252
|
|
|
$
|
7,526
|
|
|
$
|
5,350
|
|
|
$
|
5,839
|
|
|
$
|
8,392
|
|
Allowance for loan
losses at the beginning of the period
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
|
$
|
24,712
|
|
|
$
|
24,712
|
|
|
$
|
24,712
|
|
Provision for loan
losses
|
|
11,172
|
|
|
1,772
|
|
|
2,862
|
|
|
2,658
|
|
|
1,925
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
96
|
|
|
96
|
|
|
462
|
|
|
436
|
|
|
25
|
|
Commercial real
estate
|
|
71
|
|
|
50
|
|
|
300
|
|
|
157
|
|
|
65
|
|
Commercial
|
|
673
|
|
|
253
|
|
|
1,167
|
|
|
636
|
|
|
453
|
|
Consumer and
home equity
|
|
134
|
|
|
91
|
|
|
713
|
|
|
670
|
|
|
64
|
|
HPFC
|
|
—
|
|
|
—
|
|
|
71
|
|
|
11
|
|
|
—
|
|
Total
charge-offs
|
|
974
|
|
|
490
|
|
|
2,713
|
|
|
1,910
|
|
|
607
|
|
Total
recoveries
|
|
(170)
|
|
|
(68)
|
|
|
(310)
|
|
|
(228)
|
|
|
(133)
|
|
Net
charge-offs
|
|
804
|
|
|
422
|
|
|
2,403
|
|
|
1,682
|
|
|
474
|
|
Allowance for loan
losses at the end of the period
|
|
$
|
35,539
|
|
|
$
|
26,521
|
|
|
$
|
25,171
|
|
|
$
|
25,688
|
|
|
$
|
26,163
|
|
Components of
allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
35,539
|
|
|
$
|
26,521
|
|
|
$
|
25,171
|
|
|
$
|
25,688
|
|
|
$
|
26,163
|
|
Liability for
unfunded credit commitments
|
|
22
|
|
|
24
|
|
|
21
|
|
|
11
|
|
|
14
|
|
Allowance for
credit losses
|
|
$
|
35,561
|
|
|
$
|
26,545
|
|
|
$
|
25,192
|
|
|
$
|
25,699
|
|
|
$
|
26,177
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.34
|
%
|
|
0.33
|
%
|
|
0.36
|
%
|
|
0.43
|
%
|
|
0.48
|
%
|
Non-performing assets
to total assets
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.25
|
%
|
|
0.30
|
%
|
|
0.34
|
%
|
Allowance for loan
losses to total loans
|
|
1.07
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
|
0.83
|
%
|
|
0.84
|
%
|
Net charge-offs to
average loans (annualized):
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.09
|
%
|
|
0.16
|
%
|
|
0.03
|
%
|
Year-to-date
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.08
|
%
|
|
0.07
|
%
|
|
0.03
|
%
|
Allowance for loan
losses to non-performing loans
|
|
310.87
|
%
|
|
256.86
|
%
|
|
225.77
|
%
|
|
191.93
|
%
|
|
174.77
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.19
|
%
|
|
0.24
|
%
|
|
0.17
|
%
|
|
0.19
|
%
|
|
0.27
|
%
|
Reconciliation of
non-GAAP to GAAP Financial Measures (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
Average Tangible Equity:
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Six Months Ended
|
(Dollars in
thousands)
|
|
June
30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
|
June
30,
2020
|
|
June
30,
2019
|
Net income, as
presented
|
|
$
|
10,940
|
|
|
$
|
13,493
|
|
|
$
|
13,204
|
|
|
$
|
24,433
|
|
|
$
|
27,477
|
|
Add: amortization of
intangible assets, net of tax(1)
|
|
135
|
|
|
134
|
|
|
139
|
|
|
269
|
|
|
278
|
|
Net income, adjusted
for amortization of intangible assets
|
|
$
|
11,075
|
|
|
$
|
13,627
|
|
|
$
|
13,343
|
|
|
$
|
24,702
|
|
|
$
|
27,755
|
|
Average equity, as
presented
|
|
$
|
499,449
|
|
|
$
|
480,174
|
|
|
$
|
455,529
|
|
|
$
|
489,811
|
|
|
$
|
448,318
|
|
Less: average goodwill
and other intangible assets
|
|
(97,965)
|
|
|
(98,143)
|
|
|
(98,660)
|
|
|
(98,054)
|
|
|
(98,749)
|
|
Average tangible
equity
|
|
$
|
401,484
|
|
|
$
|
382,031
|
|
|
$
|
356,869
|
|
|
$
|
391,757
|
|
|
$
|
349,569
|
|
Return on average
equity
|
|
8.81
|
%
|
|
11.30
|
%
|
|
11.63
|
%
|
|
10.03
|
%
|
|
12.36
|
%
|
Return on average
tangible equity
|
|
11.09
|
%
|
|
14.35
|
%
|
|
15.00
|
%
|
|
12.68
|
%
|
|
16.01
|
%
|
|
|
(1)
|
Assumed a 21% tax
rate.
|
Efficiency
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For the
Six Months Ended
|
(Dollars in
thousands)
|
|
June 30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
|
June
30,
2020
|
|
June 30,
2019
|
Non-interest expense,
as presented
|
|
$
|
23,509
|
|
|
$
|
24,561
|
|
|
$
|
23,958
|
|
|
$
|
48,070
|
|
|
$
|
46,741
|
|
Net interest income,
as presented
|
|
$
|
34,539
|
|
|
$
|
31,826
|
|
|
$
|
31,573
|
|
|
$
|
66,365
|
|
|
$
|
63,468
|
|
Add: effect of
tax-exempt income(1)
|
|
295
|
|
|
280
|
|
|
248
|
|
|
574
|
|
|
491
|
|
Non-interest income,
as presented
|
|
12,060
|
|
|
11,403
|
|
|
10,037
|
|
|
23,463
|
|
|
19,426
|
|
Less: net gain on
sale of securities
|
|
—
|
|
|
—
|
|
|
(27)
|
|
|
—
|
|
|
(27)
|
|
Adjusted net interest
income plus non-interest income
|
|
$
|
46,894
|
|
|
$
|
43,509
|
|
|
$
|
41,831
|
|
|
$
|
90,402
|
|
|
$
|
83,358
|
|
GAAP efficiency
ratio
|
|
50.45
|
%
|
|
56.82
|
%
|
|
57.58
|
%
|
|
53.51
|
%
|
|
56.39
|
%
|
Non-GAAP efficiency
ratio
|
|
50.13
|
%
|
|
56.45
|
%
|
|
57.27
|
%
|
|
53.17
|
%
|
|
56.07
|
%
|
|
|
(1)
|
Assumed a 21% tax
rate.
|
Pre-tax,
Pre-provision Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For the
Six Months Ended
|
(In
thousands)
|
|
June 30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
|
June
30,
2020
|
|
June 30,
2019
|
Net income, as
presented
|
|
$
|
10,940
|
|
|
$
|
13,493
|
|
|
$
|
13,204
|
|
|
$
|
24,433
|
|
|
$
|
27,477
|
|
Add: provision for
credit losses
|
|
9,398
|
|
|
1,775
|
|
|
1,173
|
|
|
11,173
|
|
|
1,917
|
|
Add: income tax
expense
|
|
2,752
|
|
|
3,400
|
|
|
3,275
|
|
|
6,152
|
|
|
6,759
|
|
Pre-tax,
pre-provision earnings
|
|
$
|
23,090
|
|
|
$
|
18,668
|
|
|
$
|
17,652
|
|
|
$
|
41,758
|
|
|
$
|
36,153
|
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
June
30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
(In thousands,
except number of shares, per share data and ratios)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
|
506,467
|
|
|
$
|
492,680
|
|
|
$
|
467,759
|
|
Less: goodwill and
other intangible assets
|
|
(97,881)
|
|
|
(98,052)
|
|
|
(98,574)
|
|
Tangible
shareholders' equity
|
|
$
|
408,586
|
|
|
$
|
394,628
|
|
|
$
|
369,185
|
|
Shares outstanding at
period end
|
|
14,963,041
|
|
|
14,951,597
|
|
|
15,457,480
|
|
Book value per
share
|
|
$
|
33.85
|
|
|
$
|
32.95
|
|
|
$
|
30.26
|
|
Tangible book value
per share
|
|
$
|
27.31
|
|
|
$
|
26.39
|
|
|
$
|
23.88
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
4,959,016
|
|
|
$
|
4,594,539
|
|
|
$
|
4,447,038
|
|
Less: goodwill and
other intangible assets
|
|
(97,881)
|
|
|
(98,052)
|
|
|
(98,574)
|
|
Tangible
assets
|
|
$
|
4,861,135
|
|
|
$
|
4,496,487
|
|
|
$
|
4,348,464
|
|
Common equity
ratio
|
|
10.21
|
%
|
|
10.72
|
%
|
|
10.52
|
%
|
Tangible common
equity ratio
|
|
8.41
|
%
|
|
8.78
|
%
|
|
8.49
|
%
|
Core
Deposits:
|
(In
thousands)
|
|
June
30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
Total
deposits
|
|
$
|
3,996,358
|
|
|
$
|
3,563,705
|
|
|
$
|
3,591,610
|
|
Less: certificates of
deposit
|
|
(431,376)
|
|
|
(545,013)
|
|
|
(547,786)
|
|
Less: brokered
deposits
|
|
(224,777)
|
|
|
(188,758)
|
|
|
(352,951)
|
|
Core
deposits
|
|
$
|
3,340,205
|
|
|
$
|
2,829,934
|
|
|
$
|
2,690,873
|
|
Average Core
Deposits:
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For
the
Six Months
Ended
|
(In
thousands)
|
|
June
30,
2020
|
|
March
31,
2020
|
|
June
30,
2019
|
|
June
30,
2020
|
|
June
30,
2019
|
Total average
deposits
|
|
$
|
3,676,000
|
|
|
$
|
3,355,595
|
|
|
$
|
3,171,005
|
|
|
$
|
3,515,798
|
|
|
$
|
3,129,294
|
|
Less: average
certificates of deposit
|
|
(477,068)
|
|
|
(552,079)
|
|
|
(516,972)
|
|
|
(514,573)
|
|
|
(480,244)
|
|
Average core
deposits
|
|
$
|
3,198,932
|
|
|
$
|
2,803,516
|
|
|
$
|
2,654,033
|
|
|
$
|
3,001,225
|
|
|
$
|
2,649,050
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/camden-national-corporation-reports-second-quarter-2020-financial-results-301100513.html
SOURCE Camden National Corporation