CAMDEN, Maine, Oct. 27, 2020 /PRNewswire/ -- Camden
National Corporation (NASDAQ: CAC; "Camden National" or the
"Company"), a $5.2 billion bank
holding company headquartered in Camden,
Maine, reported net income for the third quarter of 2020 of
$16.8 million, an increase of
$2.3 million, or 16%, compared to the
third quarter of 2019. Diluted earnings per share ("EPS") for the
third quarter of 2020 was $1.11, an
increase of $0.17, or 18%, over the
third quarter of 2019.
"This quarter's results demonstrate that our core business is
solid and resilient. Our strong earnings for the quarter reflect
the collective efforts and tireless work across our Company as we
continue to focus on our customers' needs while maintaining our
strategic focus," said Gregory A.
Dufour, President and Chief Executive Officer of the
Company. "Although the last six months have presented unprecedented
economic conditions, we took the necessary actions early to
preserve the strength of our balance sheet by increasing loan loss
reserves over $11 million
year-to-date. At the end of the third quarter, our allowance for
losses was 1.11% of total loans and 1.19% of total loans when
excluding SBA PPP loans1 originated this year, up from
0.81% at the beginning of the year."
Dufour added, "At September 30,
2020, COVID-19-related short-term loan deferrals were 5.5%
of total loans, which included nearly $68
million of consumer loans that we automatically deferred for
another 90 days after the initial 90-day deferral period matured.
This is a significant decrease from June 30,
2020, where our total short-term loan deferrals were 16.4%
of total loans at June 30, 2020.
Through September 30, 2020, our asset
quality continues to be very strong, highlighted by non-performing
loans totaling 0.34% and past due loans of 0.18% of total loans at
quarter-end, as well as annualized net charge-offs year-to-date of
0.04% of average loans."
______________________________
1 This is a non-GAAP measure. Please refer to
"Reconciliation of non-GAAP to GAAP Financial Measures" for further
details.
THIRD QUARTER 2020 HIGHLIGHTS
- Net income increased by $2.3
million, or 16%, over the third quarter of 2019 and by
$5.8 million, or 53%, over the second
quarter of 2020.
- Pre-tax, pre-provision earnings1 increased
$3.0 million, or 16%, over the third
quarter of 2019 and decreased $1.1
million, or 5%, from the second quarter of 2020.
- Net interest margin on a fully-taxable equivalent basis ("net
interest margin") for the third quarter of 2020 was 3.00%, compared
to 3.09% for the third quarter of 2019 and 3.11% for the second
quarter of 2020.
- 5.5% of total loans were operating under a short-term deferral
due to COVID-19 at September 30,
2020, compared to 16.4% at June 30,
2020.
- Allowance for loan losses was 1.11% of total loans at
September 30, 2020, up from 1.07% at
June 30, 2020 and 0.81% at
December 31, 2019.
- Non-performing assets were 0.22% of total assets as of
September 30, 2020, and annualized
net charge-offs were 0.01% and 0.04% of average loans for the three
and nine months ended September 30,
2020, respectively.
- Capital remains a source of strength, highlighted by regulatory
capital ratios well in excess of requirements, including a Total
risk-based capital ratio of 15.15% and Tier 1 leverage ratio of
8.96% at September 30, 2020.
FINANCIAL CONDITION
Assets. Total assets increased 16% since
December 31, 2019, to $5.2 billion at September
30, 2020. Asset growth for the nine months ended
September 30, 2020, was driven by
increases in cash, investments and loans.
Cash and Investments. Deposit growth for the nine
months ended September 30, 2020, of
$686.3 million, or 19%, led to
elevated cash and investment balances. Federal stimulus provided to
businesses and consumers in response to the COVID-19 pandemic has
driven deposit growth and resulted in excess liquidity. At
September 30, 2020, cash and
investment balances totaled $346.4
million and $1.1 billion,
respectively, compared to $75.6
million and $933.1 million at
December 31, 2019. At September 30, 2020, the Company's investments
designated as available-for-sale ("AFS") were in an unrealized gain
position of $28.7 million, net of
tax, compared to $3.3 million, net of
tax, at December 31, 2019.
Loans. At September 30,
2020, the Company's loan portfolio totaled $3.3 billion, compared to $3.1 billion at December
31, 2019. Loan growth for the nine months ended September 30, 2020, was $179.8 million, or 6%, led by (1) Small Business
Administration Paycheck Protection Program ("SBA PPP") loans, which
had outstanding loan balances of $223.8
million at September 30, 2020,
and (2) commercial real estate loan growth of $90.3 million, or 7%, over this period.
Since the commencement of the SBA PPP in early April 2020, the Company has proudly originated
3,034 loans totaling $244.8 million
through September 30, 2020, to
businesses across our markets that are in need of support due to
the COVID-19 pandemic.
For the nine months ended September 30,
2020, consumer and home equity loans decreased 12% to
$297.6 million at September 30, 2020, while residential mortgage
loans decreased 2% over the same period to $1.0 billion at September
30, 2020.
For the nine months ended September 30,
2020, the Company originated $727.9
million of residential mortgages and sold 62% of its
production to the secondary market. In comparison, for the same
period last year, the Company originated $387.8 million and sold 48% of its production.
Residential mortgage refinance activity was 59% of originations for
the nine months ended September 30,
2020, compared to 31% for the same period last year.
The increase in residential mortgage originations and refinance
activity between periods was driven by historically low interest
rates for the nine months ended September
30, 2020, highlighted by an average 10-year U.S. Treasury
rate of 0.90% over this period.
Deposits and Borrowings. Deposits increased 19%
since December 31, 2019, to
$4.2 billion at September 30, 2020. The increase in deposits was
driven by federal stimulus to businesses and consumers in response
to the COVID-19 pandemic, as well as a shift in consumer habits in
response to the COVID-19 pandemic, highlighted by the national
personal savings rate nearly doubling to 14.1% in August 2020 compared to December 2019. For the nine months ended
September 30, 2020, checking account
balances grew $514.3 million, or 30%,
savings and money market balances grew $187.7 million, or 17%, and brokered deposits
grew $100.6 million, or 53%. Over
this same period, certificates of deposit ("CDs") decreased
$116.3 million, or 22%.
The Company's loan-to-deposit ratio was 78% at September 30, 2020, compared to 87% at
December 31, 2019.
Total borrowings decreased 13% since December 31, 2019 to $294.4 million at September 30, 2020. At September 30, 2020, short-term borrowings of
$210.1 million are entirely made up
of repurchase agreements.
Shareholders' Equity. At September 30, 2020, the Company's capital
position remained well in excess of regulatory requirements,
including a Total risk-based capital ratio of 15.15% and a Tier 1
leverage ratio of 8.96%. Additionally, at September 30, 2020, the Company's common equity
ratio was 10.04% and tangible common equity
ratio1 was 8.30%.
In September 2020, the Company
announced a cash dividend to shareholders of $0.33 per share, consistent with that issued for
the second quarter of 2020. The cash dividend is payable on
October 30, 2020, to shareholders of
record as of October 15, 2020. As of
September 30, 2020, the Company's
annualized dividend yield was 4.37% based on Camden National's
closing share price of $30.23, as
reported by NASDAQ.
The Company temporarily suspended its share repurchase program
during the first quarter of 2020 in response to the COVID-19
pandemic. In September 2020, the
Company lifted its suspension and repurchased 47,915 shares. For
the nine months ended September 30,
2020, the Company has repurchased 264,946 shares of its
common stock. The Company will continue to evaluate its use of the
share repurchase program as the impact and our response to the
COVID-19 pandemic develops.
ASSET QUALITY
As of September 30, 2020, the
Company's asset quality metrics continue to be stable and
consistent with past quarters.
- Non-performing assets were 0.22% of total assets at
September 30, 2020, compared to 0.23%
and 0.25% at June 30, 2020 and
December 31, 2019, respectively.
- Past due loans were 0.18% of total loans at September 30, 2020, compared to 0.19% and 0.17%
at June 30, 2020 and December 31, 2019, respectively.
- Net charge-offs (annualized) for the third quarter of 2020 were
0.01% of average loans, compared to 0.05% for the second quarter of
2020 and 0.16% for the third quarter of 2019.
COVID-19 Short-Term Deferment Program. In
March 2020, the Company began
offering temporary debt relief to business and retail customers
impacted by the COVID-19 pandemic. 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 individually assessed, designated or accounted
for as troubled-debt restructurings.
Short-term debt payment relief was provided to commercial and
retail customers for periods up to 180 days, including full and
partial principal and/or interest payment relief. At September 30, 2020, loans operating under a
short-term deferral arrangement totaled $181.2 million, or 5.5% of total loans at
September 30, 2020, of which
$67.7 million were retail loans that
were provided an automatic 90-day deferment extension upon maturity
of the initial 90-day deferment period. In comparison, at
June 30, 2020, loan operating under a
short-term deferral arrangement totaled $546.7 million, or 16.4% of total loans.
Allowance for Credit Losses and Provision Expense.
The provision for credit losses for the three and nine months ended
September 30, 2020 was $987,000 and $12.2
million, respectively, compared to $730,000 and $2.6
million for the three and nine months ended September 30, 2019. At September 30, 2020, the Company's allowance for
loan losses was $36.4 million, or
1.11% of total loans (1.19% of total loans, excluding SBA PPP
loans1), and 3.3 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. Although asset quality at
September 30, 2020 remains strong and
COVID-19 deferments have steadily decreased, there continues to be
an elevated credit risk throughout the industry given current
market conditions, as well as the level of economic, political, and
medical uncertainty that remains.
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
nine months ended September 30, 2020
was accounted for under the incurred loss model. In accordance with
the CARES Act, the Company will effectively adopt CECL on
December 31, 2020, retroactively
effective as of January 1, 2020.
While the Company has not yet adopted CECL, it estimates that as
of September 30, 2020, the allowance
for credit losses under CECL, which is comprised of allowance for
loan losses and unfunded commitments, would have been $39.0 million to $43.0
million, or 1.19% to 1.31% of total loans, at September 30, 2020.
FINANCIAL OPERATING RESULTS (Q3 2020 vs. Q3 2019)
Net income for the third quarter of 2020 was $16.8 million, an increase of $2.3 million, or 16%, over the third quarter of
2019. Diluted EPS for the third quarter of 2020 was $1.11, an increase of $0.17, or 18%, over the same period last
year.
Net Interest Income. Net interest income for the
third quarter of 2020 was $34.5
million, an increase of $2.6
million, or 8%, over the third quarter of 2019 due to an
increase in average interest-earning assets of 11%, partially
offset by a compressed net interest margin of 9 basis points
between periods to 3.00% for the third quarter of 2020.
Average interest-earning assets for the third quarter of 2020
were $4.6 billion, an increase of
$465.8 million over the third quarter
of 2019. Average loans grew 7% between periods to $3.3 billion for the third quarter of 2020,
primarily driven by average SBA PPP loans of $221.7 million for the third quarter of 2020,
while average cash and investment balances grew 25% to $1.2 billion for the third quarter of 2020.
Net interest margin for the third quarter of 2020 was 3.00%, a
decrease of 9 basis points from the third quarter of 2019. The
decrease in net interest margin was driven by the current low
interest rate environment and change in the mix of interest-earning
assets driving down the yield on interest-earning assets by 74
basis points between periods to 3.37% for the third quarter of
2020, whereas the cost of funds decreased 70 basis points between
periods to 0.38% for the third quarter of 2020.
Provision for Credit Losses. The provision for
credit losses for the third quarter of 2020 was $987,000, an increase of $257,000 compared to the third quarter of
2019.
Non-Interest Income. Non-interest income for the
third quarter of 2020 was $12.7
million, an increase of $2.0
million, or 18%, over the third quarter of 2019. The
increase was primarily driven by an increase in mortgage banking
income between periods of $2.0
million as the Company's sold loan production grew by 110%
between periods. This increase was partially offset by a
decrease in service charges on deposit accounts between periods of
$364,000, or 18%. Service charges on
deposit accounts primarily decreased between periods due to lower
overdraft fees because of elevated deposits across our
customers.
Non-Interest Expense. Non-interest expense for the
third quarter of 2020 was $25.2
million, an increase of $1.5
million, or 6%, compared to the third quarter of 2019. In
the third quarter of 2020, the Company accrued $1.2 million within other expenses for a legal
settlement to avoid the burden and expense of litigation. The
Company's efficiency ratio calculated in accordance with generally
accepted accounting principles in the
United States ("GAAP") was 53.46% for the third quarter of
2020 and 50.60%1 for the third quarter of 2020 on a non-GAAP
basis.
FINANCIAL OPERATING RESULTS (Q3 2020 vs. Q2 2020)
Net income for the third quarter 2020 increased $5.8 million, or 53%, and diluted EPS increased
$0.38, or 52%, over the second
quarter 2020. The increase between quarters was driven by a
decrease in provision expense of $8.4
million.
Net Interest Income. Net interest income for the
third quarter 2020 decreased $58,000,
compared to the second quarter 2020. The decrease between periods
was driven by net interest margin compression of 11 basis points as
average cash balances increased $47.8
million, or 28%, to $216.0
million for the third quarter of 2020.
Provision for Credit Losses. Provision for credit
losses for the third quarter 2020 decreased $8.4 million, compared to the second quarter
2020. In the second quarter 2020, higher provisions were provided
for as reserve levels increased due to the economic environment
created by the COVID-19 pandemic, and the Company worked through
its COVID-19 loan modifications.
Non-Interest Income. Non-interest income for the
third quarter 2020 increased $636,000, or 5%, over the second quarter 2020.
The increase between periods was primarily attributable to an
increase in service charges on deposit accounts of $269,000 and debit card income of $236,000.
Non-Interest Expense. Non-interest expense for the
third quarter 2020 increased $1.7
million, or 7%, over the second quarter 2020. Included in
the third quarter 2020, the Company accrued $1.2 million for a legal settlement to avoid the
burden and expense of litigation. This was presented within other
expenses on the consolidated statements of income.
CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m., Eastern Time, on
Tuesday, October 27, 2020 to discuss
its third 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/cac201027.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
$5.2 billion in assets and
approximately 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 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 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; and allowance for loan losses
to total loans, excluding SBA PPP loans. 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.
Selected Financial
Data
(unaudited)
|
|
|
|
At or For
The
Three Months Ended
|
|
At or For
The
Nine Months Ended
|
(In thousands,
except number of shares and per share data)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,121,712
|
|
|
$
|
1,064,089
|
|
|
$
|
926,444
|
|
|
$
|
1,121,712
|
|
|
$
|
926,444
|
|
Loans and loans held
for sale
|
|
3,312,777
|
|
|
3,362,631
|
|
|
3,127,083
|
|
|
3,312,777
|
|
|
3,127,083
|
|
Allowance for loan
losses
|
|
36,414
|
|
|
35,539
|
|
|
25,688
|
|
|
36,414
|
|
|
25,688
|
|
Total
assets
|
|
5,153,793
|
|
|
4,959,016
|
|
|
4,520,315
|
|
|
5,153,793
|
|
|
4,520,315
|
|
Deposits
|
|
4,224,044
|
|
|
3,996,358
|
|
|
3,617,963
|
|
|
4,224,044
|
|
|
3,617,963
|
|
Borrowings
|
|
294,361
|
|
|
330,229
|
|
|
342,459
|
|
|
294,361
|
|
|
342,459
|
|
Shareholders'
equity
|
|
517,522
|
|
|
506,467
|
|
|
471,672
|
|
|
517,522
|
|
|
471,672
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
34,481
|
|
|
$
|
34,539
|
|
|
$
|
31,923
|
|
|
$
|
100,846
|
|
|
$
|
95,391
|
|
Provision for credit
losses
|
|
987
|
|
|
9,398
|
|
|
730
|
|
|
12,160
|
|
|
2,647
|
|
Non-interest
income
|
|
12,696
|
|
|
12,060
|
|
|
10,739
|
|
|
36,159
|
|
|
30,165
|
|
Non-interest
expense
|
|
25,221
|
|
|
23,509
|
|
|
23,748
|
|
|
73,291
|
|
|
70,489
|
|
Income before income
tax expense
|
|
20,969
|
|
|
13,692
|
|
|
18,184
|
|
|
51,554
|
|
|
52,420
|
|
Income tax
expense
|
|
4,194
|
|
|
2,752
|
|
|
3,696
|
|
|
10,346
|
|
|
10,455
|
|
Net income
|
|
$
|
16,775
|
|
|
$
|
10,940
|
|
|
$
|
14,488
|
|
|
$
|
41,208
|
|
|
$
|
41,965
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.34
|
%
|
|
0.90
|
%
|
|
1.29
|
%
|
|
1.15
|
%
|
|
1.28
|
%
|
Return on average
equity
|
|
13.01
|
%
|
|
8.81
|
%
|
|
12.26
|
%
|
|
11.06
|
%
|
|
12.32
|
%
|
GAAP efficiency
ratio
|
|
53.46
|
%
|
|
50.45
|
%
|
|
55.67
|
%
|
|
53.50
|
%
|
|
56.14
|
%
|
Net interest margin
(fully-taxable equivalent)
|
|
3.00
|
%
|
|
3.11
|
%
|
|
3.09
|
%
|
|
3.06
|
%
|
|
3.13
|
%
|
Non-performing assets
to total assets
|
|
0.22
|
%
|
|
0.23
|
%
|
|
0.30
|
%
|
|
0.22
|
%
|
|
0.30
|
%
|
Common equity
ratio
|
|
10.04
|
%
|
|
10.21
|
%
|
|
10.43
|
%
|
|
10.04
|
%
|
|
10.43
|
%
|
Tier 1 leverage
capital ratio
|
|
8.96
|
%
|
|
8.95
|
%
|
|
9.39
|
%
|
|
8.96
|
%
|
|
9.39
|
%
|
Common equity tier 1
risk-based capital ratio
|
|
12.21
|
%
|
|
11.69
|
%
|
|
11.36
|
%
|
|
12.21
|
%
|
|
11.36
|
%
|
Tier 1 risk-based
capital ratio
|
|
13.55
|
%
|
|
13.01
|
%
|
|
12.70
|
%
|
|
13.55
|
%
|
|
12.70
|
%
|
Total risk-based
capital ratio
|
|
15.15
|
%
|
|
14.56
|
%
|
|
13.97
|
%
|
|
15.15
|
%
|
|
13.97
|
%
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.12
|
|
|
$
|
0.73
|
|
|
$
|
0.94
|
|
|
$
|
2.74
|
|
|
$
|
2.70
|
|
Diluted earnings per
share
|
|
$
|
1.11
|
|
|
$
|
0.73
|
|
|
$
|
0.94
|
|
|
$
|
2.73
|
|
|
$
|
2.70
|
|
Cash dividends
declared per share
|
|
$
|
0.33
|
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.99
|
|
|
$
|
0.90
|
|
Book value per
share
|
|
$
|
34.69
|
|
|
$
|
33.85
|
|
|
$
|
30.98
|
|
|
$
|
34.69
|
|
|
$
|
30.98
|
|
Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
|
16.21
|
%
|
|
11.09
|
%
|
|
15.67
|
%
|
|
13.91
|
%
|
|
15.89
|
%
|
Efficiency
ratio
|
|
50.60
|
%
|
|
50.13
|
%
|
|
55.32
|
%
|
|
52.29
|
%
|
|
55.82
|
%
|
Pre-tax,
pre-provision earnings
|
|
$
|
21,956
|
|
|
$
|
23,090
|
|
|
$
|
18,914
|
|
|
$
|
63,714
|
|
|
$
|
55,067
|
|
Allowance for loan
losses to total loans, excluding
SBA PPP loans
|
|
1.19
|
%
|
|
1.14
|
%
|
|
0.83
|
%
|
|
1.19
|
%
|
|
0.83
|
%
|
Tangible common
equity ratio
|
|
8.30
|
%
|
|
8.41
|
%
|
|
8.44
|
%
|
|
8.30
|
%
|
|
8.44
|
%
|
Tangible book value
per share
|
|
$
|
28.14
|
|
|
$
|
27.31
|
|
|
$
|
24.52
|
|
|
$
|
28.14
|
|
|
$
|
24.52
|
|
|
(1) Please see
"Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
(In thousands)
|
|
September
30,
2020
|
|
December
31,
2019
|
|
September
30,
2019
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
42,119
|
|
|
$
|
39,586
|
|
|
$
|
63,620
|
|
Interest-bearing
deposits in other banks (including restricted cash)
|
|
304,270
|
|
|
36,050
|
|
|
73,912
|
|
Total cash, cash
equivalents and restricted cash
|
|
346,389
|
|
|
75,636
|
|
|
137,532
|
|
Investments:
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value (book value of $1,070,479, $913,978 and
$903,988, respectively)
|
|
1,107,069
|
|
|
918,118
|
|
|
913,523
|
|
Held-to-maturity
securities, at amortized cost (fair value of $1,403, $1,359 and
$1,352, respectively)
|
|
1,298
|
|
|
1,302
|
|
|
1,303
|
|
Other
investments
|
|
13,345
|
|
|
13,649
|
|
|
11,618
|
|
Total
investments
|
|
1,121,712
|
|
|
933,069
|
|
|
926,444
|
|
Loans held for sale,
at fair value (book value of $37,301, $11,915 and $16,630,
respectively)
|
|
37,935
|
|
|
11,854
|
|
|
16,449
|
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,333,733
|
|
|
1,243,397
|
|
|
1,255,519
|
|
Commercial(1)
|
|
375,548
|
|
|
442,701
|
|
|
445,466
|
|
SBA PPP
|
|
223,838
|
|
|
—
|
|
|
—
|
|
Residential real
estate
|
|
1,044,103
|
|
|
1,070,374
|
|
|
1,061,898
|
|
Consumer and home
equity
|
|
297,620
|
|
|
338,551
|
|
|
347,751
|
|
Total loans
|
|
3,274,842
|
|
|
3,095,023
|
|
|
3,110,634
|
|
Less: allowance for
loan losses
|
|
(36,414)
|
|
|
(25,171)
|
|
|
(25,688)
|
|
Net
loans
|
|
3,238,428
|
|
|
3,069,852
|
|
|
3,084,946
|
|
Goodwill
|
|
94,697
|
|
|
94,697
|
|
|
94,697
|
|
Core deposit
intangible assets
|
|
3,014
|
|
|
3,525
|
|
|
3,701
|
|
Bank-owned life
insurance
|
|
94,262
|
|
|
92,344
|
|
|
91,729
|
|
Premises and
equipment, net
|
|
40,517
|
|
|
41,836
|
|
|
40,930
|
|
Deferred tax
assets
|
|
11,195
|
|
|
16,823
|
|
|
15,656
|
|
Other
assets
|
|
165,644
|
|
|
89,885
|
|
|
108,231
|
|
Total
assets
|
|
$
|
5,153,793
|
|
|
$
|
4,429,521
|
|
|
$
|
4,520,315
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
800,582
|
|
|
$
|
552,590
|
|
|
$
|
573,621
|
|
Interest
checking
|
|
1,419,544
|
|
|
1,153,203
|
|
|
1,147,627
|
|
Savings and money
market
|
|
1,306,868
|
|
|
1,119,193
|
|
|
1,105,290
|
|
Certificates of
deposit
|
|
405,434
|
|
|
521,752
|
|
|
541,199
|
|
Brokered
deposits
|
|
291,616
|
|
|
191,005
|
|
|
250,226
|
|
Total
deposits
|
|
4,224,044
|
|
|
3,537,743
|
|
|
3,617,963
|
|
Short-term
borrowings
|
|
210,055
|
|
|
268,809
|
|
|
273,454
|
|
Long-term
borrowings
|
|
25,000
|
|
|
10,000
|
|
|
10,000
|
|
Subordinated
debentures
|
|
59,306
|
|
|
59,080
|
|
|
59,005
|
|
Accrued interest and
other liabilities
|
|
117,866
|
|
|
80,474
|
|
|
88,221
|
|
Total
liabilities
|
|
4,636,271
|
|
|
3,956,106
|
|
|
4,048,643
|
|
Shareholders'
equity
|
|
517,522
|
|
|
473,415
|
|
|
471,672
|
|
Total liabilities
and shareholders' equity
|
|
$
|
5,153,793
|
|
|
$
|
4,429,521
|
|
|
$
|
4,520,315
|
|
|
(1) Includes the HPFC
loan portfolio.
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
|
For The
Three Months Ended
|
|
For The
Nine Months Ended
|
(In thousands, except per
share data)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
33,025
|
|
|
$
|
33,120
|
|
|
$
|
36,207
|
|
|
$
|
100,190
|
|
|
$
|
108,020
|
|
Taxable interest on
investments
|
|
4,480
|
|
|
4,883
|
|
|
4,794
|
|
|
14,241
|
|
|
14,729
|
|
Nontaxable interest
on investments
|
|
823
|
|
|
828
|
|
|
675
|
|
|
2,438
|
|
|
1,943
|
|
Dividend
income
|
|
163
|
|
|
167
|
|
|
158
|
|
|
498
|
|
|
562
|
|
Other interest
income
|
|
176
|
|
|
180
|
|
|
686
|
|
|
691
|
|
|
1,712
|
|
Total interest
income
|
|
38,667
|
|
|
39,178
|
|
|
42,520
|
|
|
118,058
|
|
|
126,966
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,899
|
|
|
3,392
|
|
|
8,963
|
|
|
12,953
|
|
|
26,542
|
|
Interest on
borrowings
|
|
394
|
|
|
359
|
|
|
801
|
|
|
1,591
|
|
|
2,660
|
|
Interest on
subordinated debentures
|
|
893
|
|
|
888
|
|
|
833
|
|
|
2,668
|
|
|
2,373
|
|
Total interest
expense
|
|
4,186
|
|
|
4,639
|
|
|
10,597
|
|
|
17,212
|
|
|
31,575
|
|
Net interest
income
|
|
34,481
|
|
|
34,539
|
|
|
31,923
|
|
|
100,846
|
|
|
95,391
|
|
Provision for
credit losses
|
|
987
|
|
|
9,398
|
|
|
730
|
|
|
12,160
|
|
|
2,647
|
|
Net interest income
after provision for credit losses
|
|
33,494
|
|
|
25,141
|
|
|
31,193
|
|
|
88,686
|
|
|
92,744
|
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income, net
|
|
4,664
|
|
|
4,691
|
|
|
2,668
|
|
|
12,889
|
|
|
5,662
|
|
Debit card
income
|
|
2,627
|
|
|
2,391
|
|
|
2,432
|
|
|
7,159
|
|
|
6,723
|
|
Service charges on
deposit accounts
|
|
1,606
|
|
|
1,337
|
|
|
1,970
|
|
|
4,955
|
|
|
6,202
|
|
Income from fiduciary
services
|
|
1,504
|
|
|
1,603
|
|
|
1,444
|
|
|
4,609
|
|
|
4,381
|
|
Brokerage and
insurance commissions
|
|
755
|
|
|
622
|
|
|
625
|
|
|
2,034
|
|
|
1,942
|
|
Bank-owned life
insurance
|
|
615
|
|
|
614
|
|
|
613
|
|
|
1,918
|
|
|
1,810
|
|
Customer loan swap
fees
|
|
51
|
|
|
57
|
|
|
109
|
|
|
222
|
|
|
919
|
|
Net gain on sale of
securities
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
28
|
|
Other
income
|
|
874
|
|
|
745
|
|
|
877
|
|
|
2,373
|
|
|
2,498
|
|
Total non-interest
income
|
|
12,696
|
|
|
12,060
|
|
|
10,739
|
|
|
36,159
|
|
|
30,165
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
13,739
|
|
|
13,627
|
|
|
13,604
|
|
|
41,693
|
|
|
40,043
|
|
Furniture, equipment
and data processing
|
|
3,076
|
|
|
2,710
|
|
|
2,708
|
|
|
8,576
|
|
|
8,111
|
|
Net occupancy
costs
|
|
1,785
|
|
|
1,997
|
|
|
1,710
|
|
|
5,785
|
|
|
5,263
|
|
Consulting and
professional fees
|
|
913
|
|
|
1,181
|
|
|
892
|
|
|
2,877
|
|
|
2,679
|
|
Debit card
expense
|
|
972
|
|
|
878
|
|
|
960
|
|
|
2,784
|
|
|
2,666
|
|
Regulatory
assessments
|
|
510
|
|
|
299
|
|
|
182
|
|
|
971
|
|
|
1,091
|
|
Amortization of core
deposit intangible assets
|
|
170
|
|
|
171
|
|
|
177
|
|
|
511
|
|
|
529
|
|
Other real estate
owned and collection costs, net
|
|
71
|
|
|
98
|
|
|
251
|
|
|
270
|
|
|
353
|
|
Other
expenses
|
|
3,985
|
|
|
2,548
|
|
|
3,264
|
|
|
9,824
|
|
|
9,754
|
|
Total non-interest
expense
|
|
25,221
|
|
|
23,509
|
|
|
23,748
|
|
|
73,291
|
|
|
70,489
|
|
Income before
income tax expense
|
|
20,969
|
|
|
13,692
|
|
|
18,184
|
|
|
51,554
|
|
|
52,420
|
|
Income Tax
Expense
|
|
4,194
|
|
|
2,752
|
|
|
3,696
|
|
|
10,346
|
|
|
10,455
|
|
Net
Income
|
|
$
|
16,775
|
|
|
$
|
10,940
|
|
|
$
|
14,488
|
|
|
$
|
41,208
|
|
|
$
|
41,965
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.12
|
|
|
$
|
0.73
|
|
|
$
|
0.94
|
|
|
$
|
2.74
|
|
|
$
|
2.70
|
|
Diluted earnings per
share
|
|
$
|
1.11
|
|
|
$
|
0.73
|
|
|
$
|
0.94
|
|
|
$
|
2.73
|
|
|
$
|
2.70
|
|
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)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks
and other interest-earning assets
|
|
$
|
216,027
|
|
|
$
|
168,221
|
|
|
$
|
92,352
|
|
|
0.09
|
%
|
|
0.06
|
%
|
|
2.24
|
%
|
Investments -
taxable
|
|
906,374
|
|
|
836,885
|
|
|
807,591
|
|
|
2.11
|
%
|
|
2.49
|
%
|
|
2.53
|
%
|
Investments -
nontaxable(1)
|
|
122,204
|
|
|
124,101
|
|
|
98,378
|
|
|
3.41
|
%
|
|
3.38
|
%
|
|
3.47
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
1,315,958
|
|
|
1,302,393
|
|
|
1,255,417
|
|
|
3.74
|
%
|
|
3.83
|
%
|
|
4.56
|
%
|
Commercial(1)
|
|
372,416
|
|
|
404,545
|
|
|
399,689
|
|
|
3.73
|
%
|
|
3.78
|
%
|
|
4.65
|
%
|
SBA
PPP
|
|
221,672
|
|
|
178,119
|
|
|
—
|
|
|
4.16
|
%
|
|
3.79
|
%
|
|
—
|
%
|
Municipal(1)
|
|
19,072
|
|
|
19,567
|
|
|
22,730
|
|
|
3.52
|
%
|
|
3.62
|
%
|
|
3.60
|
%
|
HPFC
|
|
16,104
|
|
|
17,659
|
|
|
25,973
|
|
|
8.09
|
%
|
|
9.28
|
%
|
|
8.40
|
%
|
Residential real estate
|
|
1,083,052
|
|
|
1,084,931
|
|
|
1,062,728
|
|
|
4.00
|
%
|
|
4.06
|
%
|
|
4.31
|
%
|
Consumer
and home equity
|
|
305,194
|
|
|
321,019
|
|
|
347,405
|
|
|
4.31
|
%
|
|
4.29
|
%
|
|
5.38
|
%
|
Total loans
|
|
3,333,468
|
|
|
3,328,233
|
|
|
3,113,942
|
|
|
3.92
|
%
|
|
3.97
|
%
|
|
4.60
|
%
|
Total
interest-earning assets
|
|
4,578,073
|
|
|
4,457,440
|
|
|
4,112,263
|
|
|
3.37
|
%
|
|
3.53
|
%
|
|
4.11
|
%
|
Other
assets
|
|
417,956
|
|
|
414,225
|
|
|
345,618
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
4,996,029
|
|
|
$
|
4,871,665
|
|
|
$
|
4,457,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
741,757
|
|
|
$
|
664,605
|
|
|
$
|
540,542
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,339,389
|
|
|
1,298,468
|
|
|
1,130,632
|
|
|
0.26
|
%
|
|
0.28
|
%
|
|
0.96
|
%
|
Savings
|
|
557,718
|
|
|
518,803
|
|
|
474,096
|
|
|
0.06
|
%
|
|
0.06
|
%
|
|
0.08
|
%
|
Money
market
|
|
737,782
|
|
|
717,056
|
|
|
622,219
|
|
|
0.35
|
%
|
|
0.37
|
%
|
|
1.32
|
%
|
Certificates of
deposit
|
|
417,788
|
|
|
477,068
|
|
|
533,110
|
|
|
1.07
|
%
|
|
1.34
|
%
|
|
1.64
|
%
|
Total
deposits
|
|
3,794,434
|
|
|
3,676,000
|
|
|
3,300,599
|
|
|
0.29
|
%
|
|
0.35
|
%
|
|
0.85
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
242,390
|
|
|
234,823
|
|
|
305,019
|
|
|
0.26
|
%
|
|
0.28
|
%
|
|
2.42
|
%
|
Customer repurchase
agreements
|
|
194,937
|
|
|
209,302
|
|
|
234,362
|
|
|
0.42
|
%
|
|
0.56
|
%
|
|
1.26
|
%
|
Subordinated
debentures
|
|
59,269
|
|
|
59,194
|
|
|
58,998
|
|
|
6.00
|
%
|
|
6.03
|
%
|
|
5.60
|
%
|
Other
borrowings
|
|
73,370
|
|
|
76,983
|
|
|
11,273
|
|
|
1.02
|
%
|
|
0.35
|
%
|
|
1.96
|
%
|
Total
borrowings
|
|
569,966
|
|
|
580,302
|
|
|
609,652
|
|
|
1.01
|
%
|
|
0.98
|
%
|
|
2.27
|
%
|
Total funding
liabilities
|
|
4,364,400
|
|
|
4,256,302
|
|
|
3,910,251
|
|
|
0.38
|
%
|
|
0.44
|
%
|
|
1.08
|
%
|
Other
liabilities
|
|
118,727
|
|
|
115,914
|
|
|
78,710
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
512,902
|
|
|
499,449
|
|
|
468,920
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,996,029
|
|
|
$
|
4,871,665
|
|
|
$
|
4,457,881
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.99
|
%
|
|
3.09
|
%
|
|
3.03
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.00
|
%
|
|
3.11
|
%
|
|
3.09
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection
of previously charged-off acquired
loans(3)
|
|
2.96
|
%
|
|
3.07
|
%
|
|
3.05
|
%
|
|
|
(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
September 30, 2020, June 30, 2020 and September 30, 2019 totaling
$453,000, $403,000 and $409,000, respectively.
|
Year-to-Date
Average Balance and Yield/Rate Analysis
(unaudited)
|
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For The Nine
Months Ended
|
|
For The Nine
Months Ended
|
(Dollars in
thousands)
|
|
September
30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
|
150,383
|
|
|
$
|
63,146
|
|
|
0.25
|
%
|
|
2.26
|
%
|
Investments -
taxable
|
|
850,970
|
|
|
832,780
|
|
|
2.37
|
%
|
|
2.55
|
%
|
Investments -
nontaxable(1)
|
|
121,284
|
|
|
94,405
|
|
|
3.39
|
%
|
|
3.47
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
1,297,364
|
|
|
1,263,934
|
|
|
3.93
|
%
|
|
4.66
|
%
|
Commercial(1)
|
|
397,754
|
|
|
386,338
|
|
|
3.91
|
%
|
|
4.69
|
%
|
SBA
PPP
|
|
133,569
|
|
|
—
|
|
|
4.00
|
%
|
|
—
|
%
|
Municipal(1)
|
|
18,545
|
|
|
19,421
|
|
|
3.60
|
%
|
|
3.56
|
%
|
HPFC
|
|
18,026
|
|
|
29,183
|
|
|
8.38
|
%
|
|
8.03
|
%
|
Residential real estate
|
|
1,082,276
|
|
|
1,034,609
|
|
|
4.08
|
%
|
|
4.31
|
%
|
Consumer
and home equity
|
|
320,273
|
|
|
347,201
|
|
|
4.55
|
%
|
|
5.43
|
%
|
Total loans
|
|
3,267,807
|
|
|
3,080,686
|
|
|
4.06
|
%
|
|
4.66
|
%
|
Total
interest-earning assets
|
|
4,390,444
|
|
|
4,071,017
|
|
|
3.59
|
%
|
|
4.16
|
%
|
Other
assets
|
|
395,621
|
|
|
321,060
|
|
|
|
|
|
Total
assets
|
|
$
|
4,786,065
|
|
|
$
|
4,392,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
645,640
|
|
|
$
|
505,733
|
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,261,831
|
|
|
1,108,999
|
|
|
0.40
|
%
|
|
0.98
|
%
|
Savings
|
|
517,936
|
|
|
478,573
|
|
|
0.06
|
%
|
|
0.08
|
%
|
Money
market
|
|
701,872
|
|
|
595,659
|
|
|
0.55
|
%
|
|
1.27
|
%
|
Certificates of
deposit
|
|
482,076
|
|
|
498,059
|
|
|
1.36
|
%
|
|
1.54
|
%
|
Total
deposits
|
|
3,609,355
|
|
|
3,187,023
|
|
|
0.44
|
%
|
|
0.83
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
228,483
|
|
|
360,066
|
|
|
0.65
|
%
|
|
2.49
|
%
|
Customer repurchase
agreements
|
|
213,463
|
|
|
239,917
|
|
|
0.71
|
%
|
|
1.27
|
%
|
Subordinated
debentures
|
|
59,195
|
|
|
58,997
|
|
|
6.02
|
%
|
|
5.38
|
%
|
Other
borrowings
|
|
69,883
|
|
|
23,847
|
|
|
0.88
|
%
|
|
2.17
|
%
|
Total
borrowings
|
|
571,024
|
|
|
682,827
|
|
|
1.26
|
%
|
|
2.30
|
%
|
Total funding
liabilities
|
|
4,180,379
|
|
|
3,869,850
|
|
|
0.55
|
%
|
|
1.09
|
%
|
Other
liabilities
|
|
108,122
|
|
|
66,966
|
|
|
|
|
|
Shareholders'
equity
|
|
497,564
|
|
|
455,261
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,786,065
|
|
|
$
|
4,392,077
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.04
|
%
|
|
3.07
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.06
|
%
|
|
3.13
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of previously
charged-off acquired
loans(3)
|
|
3.03
|
%
|
|
3.09
|
%
|
|
|
(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 nine months ended
September 30, 2020 and September 30, 2019 totaling $1.1 million and
$1.2 million, respectively.
|
Asset Quality
Data
|
(unaudited)
|
(In
thousands)
|
|
At or For
The
Nine Months Ended
September 30, 2020
|
|
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
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
4,017
|
|
|
$
|
4,664
|
|
|
$
|
3,499
|
|
|
$
|
4,096
|
|
|
$
|
5,152
|
|
Commercial real
estate
|
|
565
|
|
|
432
|
|
|
646
|
|
|
1,122
|
|
|
1,156
|
|
Commercial
|
|
605
|
|
|
699
|
|
|
748
|
|
|
420
|
|
|
751
|
|
Consumer and home
equity
|
|
2,503
|
|
|
2,371
|
|
|
2,102
|
|
|
2,154
|
|
|
2,616
|
|
HPFC
|
|
509
|
|
|
392
|
|
|
322
|
|
|
364
|
|
|
450
|
|
Total non-accrual
loans
|
|
8,199
|
|
|
8,558
|
|
|
7,317
|
|
|
8,156
|
|
|
10,125
|
|
Accruing
troubled-debt restructured loans not
included above
|
|
2,952
|
|
|
2,874
|
|
|
3,008
|
|
|
2,993
|
|
|
3,259
|
|
Total
non-performing loans
|
|
11,151
|
|
|
11,432
|
|
|
10,325
|
|
|
11,149
|
|
|
13,384
|
|
Other real estate
owned
|
|
—
|
|
|
118
|
|
|
94
|
|
|
94
|
|
|
94
|
|
Total
non-performing assets
|
|
$
|
11,151
|
|
|
$
|
11,550
|
|
|
$
|
10,419
|
|
|
$
|
11,243
|
|
|
$
|
13,478
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
1,784
|
|
|
$
|
4,016
|
|
|
$
|
1,781
|
|
|
$
|
2,227
|
|
|
$
|
1,447
|
|
Commercial real
estate
|
|
2,056
|
|
|
1,625
|
|
|
2,641
|
|
|
1,582
|
|
|
2,242
|
|
Commercial
|
|
1,315
|
|
|
95
|
|
|
1,560
|
|
|
548
|
|
|
1,135
|
|
Consumer and home
equity
|
|
434
|
|
|
388
|
|
|
1,379
|
|
|
750
|
|
|
822
|
|
HPFC
|
|
323
|
|
|
128
|
|
|
165
|
|
|
243
|
|
|
193
|
|
Total loans 30-89
days past due
|
|
$
|
5,912
|
|
|
$
|
6,252
|
|
|
$
|
7,526
|
|
|
$
|
5,350
|
|
|
$
|
5,839
|
|
Allowance for loan
losses at the beginning of
the period
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
|
$
|
24,712
|
|
|
$
|
24,712
|
|
Provision for loan
losses
|
|
12,172
|
|
|
11,172
|
|
|
1,772
|
|
|
2,862
|
|
|
2,658
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
121
|
|
|
96
|
|
|
96
|
|
|
462
|
|
|
436
|
|
Commercial real
estate
|
|
104
|
|
|
71
|
|
|
50
|
|
|
300
|
|
|
157
|
|
Commercial
|
|
857
|
|
|
673
|
|
|
253
|
|
|
1,167
|
|
|
636
|
|
Consumer and home
equity
|
|
199
|
|
|
134
|
|
|
91
|
|
|
713
|
|
|
670
|
|
HPFC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
11
|
|
Total
charge-offs
|
|
1,281
|
|
|
974
|
|
|
490
|
|
|
2,713
|
|
|
1,910
|
|
Total
recoveries
|
|
(352)
|
|
|
(170)
|
|
|
(68)
|
|
|
(310)
|
|
|
(228)
|
|
Net
charge-offs
|
|
929
|
|
|
804
|
|
|
422
|
|
|
2,403
|
|
|
1,682
|
|
Allowance for loan
losses at the end of the
period
|
|
$
|
36,414
|
|
|
$
|
35,539
|
|
|
$
|
26,521
|
|
|
$
|
25,171
|
|
|
$
|
25,688
|
|
Components of
allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
|
36,414
|
|
|
$
|
35,539
|
|
|
$
|
26,521
|
|
|
$
|
25,171
|
|
|
$
|
25,688
|
|
Liability for unfunded
credit commitments
|
|
9
|
|
|
22
|
|
|
24
|
|
|
21
|
|
|
11
|
|
Allowance for
credit losses
|
|
$
|
36,423
|
|
|
$
|
35,561
|
|
|
$
|
26,545
|
|
|
$
|
25,192
|
|
|
$
|
25,699
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.34
|
%
|
|
0.34
|
%
|
|
0.33
|
%
|
|
0.36
|
%
|
|
0.43
|
%
|
Non-performing assets
to total assets
|
|
0.22
|
%
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.25
|
%
|
|
0.30
|
%
|
Allowance for loan
losses to total loans
|
|
1.11
|
%
|
|
1.07
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
|
0.83
|
%
|
Allowance for loan
losses to total loans, excluding
SBA PPP loans(1)
|
|
1.19
|
%
|
|
1.14
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
|
0.83
|
%
|
Net charge-offs to
average loans (annualized):
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.01
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.09
|
%
|
|
0.16
|
%
|
Year-to-date
|
|
0.04
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.08
|
%
|
|
0.07
|
%
|
Allowance for loan
losses to non-performing loans
|
|
326.55
|
%
|
|
310.87
|
%
|
|
256.86
|
%
|
|
225.77
|
%
|
|
191.93
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.18
|
%
|
|
0.19
|
%
|
|
0.24
|
%
|
|
0.17
|
%
|
|
0.19
|
%
|
|
|
(1)
|
This is a non-GAAP
measure. Please refer to "Reconciliation of non-GAAP to GAAP
Financial Measures (unaudited)" for further details.
|
Reconciliation of
non-GAAP to GAAP Financial Measures (unaudited)
|
|
Return on
Average Tangible Equity:
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(Dollars in
thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Net income, as
presented
|
|
$
|
16,775
|
|
|
$
|
10,940
|
|
|
$
|
14,488
|
|
|
$
|
41,208
|
|
|
$
|
41,965
|
|
Add: amortization of
core deposit
intangible assets, net of tax(1)
|
|
134
|
|
|
135
|
|
|
140
|
|
|
404
|
|
|
418
|
|
Net income, adjusted
for amortization of
core deposit intangible assets
|
|
$
|
16,909
|
|
|
$
|
11,075
|
|
|
$
|
14,628
|
|
|
$
|
41,612
|
|
|
$
|
42,383
|
|
Average equity, as
presented
|
|
$
|
512,902
|
|
|
$
|
499,449
|
|
|
$
|
468,920
|
|
|
$
|
497,564
|
|
|
$
|
455,261
|
|
Less: average goodwill
and core deposit
intangible assets
|
|
(97,794)
|
|
|
(97,965)
|
|
|
(98,484)
|
|
|
(97,967)
|
|
|
(98,659)
|
|
Average tangible
equity
|
|
$
|
415,108
|
|
|
$
|
401,484
|
|
|
$
|
370,436
|
|
|
$
|
399,597
|
|
|
$
|
356,602
|
|
Return on average
equity
|
|
13.01
|
%
|
|
8.81
|
%
|
|
12.26
|
%
|
|
11.06
|
%
|
|
12.32
|
%
|
Return on average
tangible equity
|
|
16.21
|
%
|
|
11.09
|
%
|
|
15.67
|
%
|
|
13.91
|
%
|
|
15.89
|
%
|
|
(1) Assumed a 21% tax
rate.
|
|
|
Efficiency
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(Dollars in
thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Non-interest expense,
as presented
|
|
$
|
25,221
|
|
|
$
|
23,509
|
|
|
$
|
23,748
|
|
|
$
|
73,291
|
|
|
$
|
70,489
|
|
Less: legal
settlement
|
|
(1,200)
|
|
|
—
|
|
|
—
|
|
|
(1,200)
|
|
|
—
|
|
Adjusted non-interest
expense
|
|
$
|
24,021
|
|
|
$
|
23,509
|
|
|
$
|
23,748
|
|
|
$
|
72,091
|
|
|
$
|
70,489
|
|
Net interest income,
as presented
|
|
$
|
34,481
|
|
|
$
|
34,539
|
|
|
$
|
31,923
|
|
|
$
|
100,846
|
|
|
$
|
95,391
|
|
Add: effect of
tax-exempt income(1)
|
|
292
|
|
|
295
|
|
|
264
|
|
|
865
|
|
|
752
|
|
Non-interest income,
as presented
|
|
12,696
|
|
|
12,060
|
|
|
10,739
|
|
|
36,159
|
|
|
30,165
|
|
Less: net gain on sale
of securities
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(28)
|
|
Adjusted net interest
income plus non-
interest income
|
|
$
|
47,469
|
|
|
$
|
46,894
|
|
|
$
|
42,925
|
|
|
$
|
137,870
|
|
|
$
|
126,280
|
|
GAAP efficiency
ratio
|
|
53.46
|
%
|
|
50.45
|
%
|
|
55.67
|
%
|
|
53.50
|
%
|
|
56.14
|
%
|
Non-GAAP efficiency
ratio
|
|
50.60
|
%
|
|
50.13
|
%
|
|
55.32
|
%
|
|
52.29
|
%
|
|
55.82
|
%
|
|
(1) Assumed a 21% tax
rate.
|
|
|
Pre-tax,
Pre-provision Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(In
thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Net income, as
presented
|
|
$
|
16,775
|
|
|
$
|
10,940
|
|
|
$
|
14,488
|
|
|
$
|
41,208
|
|
|
$
|
41,965
|
|
Add: provision for
credit losses
|
|
987
|
|
|
9,398
|
|
|
730
|
|
|
12,160
|
|
|
2,647
|
|
Add: income tax
expense
|
|
4,194
|
|
|
2,752
|
|
|
3,696
|
|
|
10,346
|
|
|
10,455
|
|
Pre-tax,
pre-provision earnings
|
|
$
|
21,956
|
|
|
$
|
23,090
|
|
|
$
|
18,914
|
|
|
$
|
63,714
|
|
|
$
|
55,067
|
|
Allowance for
loan losses to total loans, excluding SBA PPP
loans:
|
|
|
|
|
|
|
(In
thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
Allowance for loan
losses, as presented
|
|
$
|
36,414
|
|
|
$
|
35,539
|
|
|
$
|
25,688
|
|
Less: allowance for
loan losses on SBA PPP loans
|
|
(115)
|
|
|
(113)
|
|
|
—
|
|
Adjusted allowance
for loan losses
|
|
$
|
36,299
|
|
|
$
|
35,426
|
|
|
$
|
25,688
|
|
Total loans, as
presented
|
|
$
|
3,274,842
|
|
|
$
|
3,326,041
|
|
|
$
|
3,110,634
|
|
Less: SBA PPP
loans
|
|
(223,838)
|
|
|
(218,803)
|
|
|
—
|
|
Adjusted total
loans
|
|
$
|
3,051,004
|
|
|
$
|
3,107,238
|
|
|
$
|
3,110,634
|
|
Allowance for loan
losses to total loans
|
|
1.11
|
%
|
|
1.07
|
%
|
|
0.83
|
%
|
Allowance for loan
losses to total loans, excluding SBA PPP loans
|
|
1.19
|
%
|
|
1.14
|
%
|
|
0.83
|
%
|
|
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
(In thousands,
except number of shares, per share data and ratios)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
|
517,522
|
|
|
$
|
506,467
|
|
|
$
|
471,672
|
|
Less: goodwill and
other intangible assets
|
|
(97,711)
|
|
|
(97,881)
|
|
|
(98,398)
|
|
Tangible
shareholders' equity
|
|
$
|
419,811
|
|
|
$
|
408,586
|
|
|
$
|
373,274
|
|
Shares outstanding at
period end
|
|
14,917,344
|
|
|
14,963,041
|
|
|
15,224,903
|
|
Book value per
share
|
|
$
|
34.69
|
|
|
$
|
33.85
|
|
|
$
|
30.98
|
|
Tangible book value
per share
|
|
$
|
28.14
|
|
|
$
|
27.31
|
|
|
$
|
24.52
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
5,153,793
|
|
|
$
|
4,959,016
|
|
|
$
|
4,520,315
|
|
Less: goodwill and
other intangible assets
|
|
(97,711)
|
|
|
(97,881)
|
|
|
(98,398)
|
|
Tangible
assets
|
|
$
|
5,056,082
|
|
|
$
|
4,861,135
|
|
|
$
|
4,421,917
|
|
Common equity
ratio
|
|
10.04
|
%
|
|
10.21
|
%
|
|
10.43
|
%
|
Tangible common
equity ratio
|
|
8.30
|
%
|
|
8.41
|
%
|
|
8.44
|
%
|
|
|
Core
Deposits:
|
(In
thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
Total
deposits
|
|
$
|
4,224,044
|
|
|
$
|
3,996,358
|
|
|
$
|
3,617,963
|
|
Less: certificates of
deposit
|
|
(405,434)
|
|
|
(431,376)
|
|
|
(541,199)
|
|
Less: brokered
deposits
|
|
(291,616)
|
|
|
(224,777)
|
|
|
(250,226)
|
|
Core
deposits
|
|
$
|
3,526,994
|
|
|
$
|
3,340,205
|
|
|
$
|
2,826,538
|
|
|
|
|
|
|
|
|
|
|
|
Average Core
Deposits:
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Nine Months Ended
|
(In
thousands)
|
|
September
30,
2020
|
|
June 30,
2020
|
|
September
30,
2019
|
|
September
30,
2020
|
|
September
30,
2019
|
Total average
deposits
|
|
$
|
3,794,434
|
|
|
$
|
3,676,000
|
|
|
$
|
3,300,599
|
|
|
$
|
3,609,355
|
|
|
$
|
3,187,023
|
|
Less: average
certificates of deposit
|
|
(417,788)
|
|
|
(477,068)
|
|
|
(533,110)
|
|
|
(482,076)
|
|
|
(498,059)
|
|
Average core
deposits
|
|
$
|
3,376,646
|
|
|
$
|
3,198,932
|
|
|
$
|
2,767,489
|
|
|
$
|
3,127,279
|
|
|
$
|
2,688,964
|
|
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SOURCE Camden National Corporation