CAMDEN, Maine, Jan. 26, 2021 /PRNewswire/ -- Camden National
Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a
$4.9 billion bank holding company
headquartered in Camden, Maine,
reported net income of $18.3 million
and diluted earnings per share ("EPS") of $1.22 for the fourth quarter of 2020, an increase
of 20% and 23% over the fourth quarter of 2019, respectively.
Net income for the year ended 2020 was $59.5 million, an increase of 4% over the year
ended 2019. Over the same period, diluted EPS increased 7% to
$3.95 for the year ended 2020. Strong
earnings translated into a return on average assets of 1.23%, a
return on average equity of 11.81%, and a return on average
tangible equity (non-GAAP) of 14.79% for the year ended 2020.
"We have a lot to be proud about at Camden National this year,"
said Gregory A. Dufour, President
and Chief Executive Officer of the Company. "2020 was a year unlike
any other with so many personal and professional challenges, as the
COVID-19 health crisis disrupted the lives of the people and
businesses across all communities we serve. Despite these
challenges, we were able to support our employees, as well as
provide outstanding service to our customers and communities in
their time of need through various offerings, including our
Employee Assistance Program, SBA Paycheck Protection Program,
short-term loan deferrals, and continued generous donations to our
communities."
"Our annual financial results speak to the dedication, hard work
and resiliency of our employees across all areas of our company.
One great example that highlights the effort and teamwork across
the organization is from our residential mortgage team. The team
worked tirelessly this past year to support our customers as
interest rates hit a historical low, and we were able reach a new
record of $1 billion in mortgage
originations this past year." Dufour added, "While our methods for
conducting business may have changed this year in response to
COVID-19, our focus on and ability to deliver an excellent customer
experience didn't. Recently, we were named a Customer Experience
Leader by a leading independent research firm, Greenwich
Associates, for U.S. Retail Banking and U.S. Commercial Small
Business."
The Company ended 2020 with excellent asset quality, including
non-performing assets of 0.22% of total assets and short-term loan
modifications of 0.8% of total loans.
Q4 2020 FINANCIAL HIGHLIGHTS
- Fourth quarter 2020 net income and diluted EPS increased 20%
and 23% over the fourth quarter of 2019, respectively, and 9% and
10% over the third quarter of 2020, respectively.
- Fourth quarter 2020 pre-tax, pre-provision earnings (non-GAAP)
increased 19% over the fourth quarter of 2019 and 5% over the third
quarter of 2020.
- Fourth quarter 2020 return on average assets was 1.45%, return
on average equity was 13.94%, and return on average tangible equity
(non-GAAP) was 17.27%.
- Fourth quarter 2020 net interest margin was 3.06%, compared to
3.12% for the fourth quarter of 2019 and 3.00% for the third
quarter of 2020.
- In the fourth quarter of 2020, the Company adopted the new
accounting standard for credit loss provisions, commonly referred
to as "CECL" (Current Expected Credit Losses), effective as of
January 1, 2020. Under CECL, the
allowance for loan losses was 1.18% of total loans at December 31, 2020.
- At December 31, 2020, loans
operating under a short-term deferral arrangement due to COVID-19
were negligible at 0.8% of total loans, compared to 5.5% at
September 30, 2020.
- Non-performing assets were 0.22% of total assets at
December 31, 2020, and annualized net
(recoveries) / charge-offs were (0.02)% and 0.02% of average loans
for the fourth quarter and year ended 2020, respectively.
- Repurchased 9,408 shares of Camden National common stock in the
fourth quarter of 2020 and 274,354 shares for the year ended
2020.
FINANCIAL CONDITION
As of December 31, 2020, total
assets were $4.9 billion, an 11%
increase over last year. Asset growth during 2020 was driven by an
increase in investment balances of $195.6
million, or 21%, loan balances of $124.8 million, or 4%, and cash balances of
$70.1 million, or 93%. The increase
in cash and investment balances during the year was primarily
driven by elevated deposits resulting from government stimulus in
response to COVID-19, and loan balances increased primarily due to
PPP loans. Commercial and commercial real estate loan originations
slowed during the year in response to COVID-19, while residential
mortgage loan originations soared and reached a new record during
the year of $1.0 billion, an increase
of 79% over 2019. The increase was largely driven by refinancing
activities as interest rates hit record lows in response to
economic uncertainty related to COVID-19. For the fourth quarter
and year ended 2020, the Company sold 59% and 61% of its
residential mortgage originations to the secondary market,
respectively, compared to 59% for the fourth quarter of 2019, 69%
for the third quarter of 2020, and 51% for the year ended 2019.
As of December 31, 2020, deposits
totaled $4.0 billion, an increase of
13% during the year. The increase was driven by core deposit
(non-GAAP) growth of $539.0 million,
or 19%, which was fueled by government stimulus programs in
response to COVID-19. Over the same period, certificates of
deposits ("CD's") and total borrowings decreased $164.1 million, or 31%, and $91.1 million, or 27%, respectively, given the
influx of core deposits.
The Company's total loan-to-deposit ratio at December 31, 2020 was 80%, compared to 87% at
December 31, 2019.
At December 31, 2020, the
Company's capital position remained well in excess of regulatory
requirements, including a total risk-based capital ratio of 15.40%
and a tier 1 leverage ratio of 9.13%.
In December 2020, the Company
announced a cash dividend to shareholders of $0.33 per share, payable on January 29, 2021, to shareholders of record as of
January 15, 2021. As of December 31, 2020, the Company's annualized
dividend yield was 3.69% based on Camden National's closing share
price of $35.78, as reported by
NASDAQ.
For the year ended 2020, the Company repurchased 274,354 shares
of its common stock. The Company continues to monitor and evaluate
its use of capital, particularly during these volatile and
uncertain times.
ASSET QUALITY AND COVID-19 SHORT TERM LOAN DEFERMENTS
As of December 31, 2020, the
Company's asset quality metrics remained very strong with
non-performing assets of 0.22% of total assets and loans 30-89 days
past due of 0.10% of total loans. In comparison, at September 30, 2020 and December 31, 2019, non-performing assets were
0.22% and 0.25% of total assets, respectively, and loans 30-89 days
past due were 0.18% and 0.17% of total loans, respectively.
In March 2020, the Company began
offering temporary debt relief to business and retail customers
impacted by COVID-19. 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 December 31, 2020, loans operating under a
short-term deferral arrangement totaled $26.5 million, or 0.8% of total loans, in
comparison to 5.5% of total loans at September 30, 2020.
In late December 2020, another
stimulus package was signed into law to provide additional COVID-19
relief for business and consumers. This stimulus package allows the
Company the opportunity to again provide temporary debt relief to
those impacted by COVID-19. At this time, the Company believes that
any additional temporary debt relief would be made on a
case-by-case basis.
CECL ADOPTION
In the fourth quarter of 2020, the Company adopted the CECL
methodology for accounting for provision for loan losses and
certain off-balance credit exposures, effective as of January 1, 2020. Upon the adoption of CECL, the
Company recorded a net cumulative-effect adjustment that decreased
retained earnings by $2.8 million.
This adjustment was the net result of: (1) a $233,000 increase in the allowance for loan
losses, (2) a $3.3 million increase
in other liabilities related to the allowance for off-balance sheet
credit exposures, and (3) a $769,000
increase in deferred tax assets. Interim period financial
statements for 2020 were not restated for CECL adoption, but rather
continue to be reported under the incurred loss methodology.
The adoption of CECL did not result in the recording of an
allowance for credit losses on the Company's held-to-maturity debt
securities.
FINANCIAL OPERATING RESULTS (Q4 2020 vs. Q3 2020)
Net income for the fourth quarter of 2020 was $18.3 million, an increase of $1.5 million, or 9%, over the third quarter of
2020. Diluted EPS for the fourth quarter of 2020 was $1.22, an increase of $0.11, or 10%, over the previous quarter.
Net Interest Income. Net interest income for the
fourth quarter of 2020 was $35.5
million, an increase of $980,000, or 3%, over the third quarter of 2020.
The increase was driven by PPP loan income earned during the fourth
quarter of $3.7 million, an increase
of $1.3 million over the prior
quarter.
Net interest margin for the fourth quarter of 2020 was 3.06%, an
increase of 6 basis points over the third quarter of 2020. The
increase between periods was driven by higher PPP loan contribution
of 14 basis points and a decrease in costs of funds of 5 basis
points, partially offset by an increase in excess liquidity of 4
basis points and a decrease in interest-earning asset yields given
the low interest rate environment.
Our net interest margin, excluding PPP loans and excess
liquidity (non-GAAP), for the fourth quarter of 2020 was 2.99%,
compared to 3.03% for the third quarter of 2020.
Provision for Credit Losses. The provision for
credit losses for the fourth quarter of 2020 was reported using the
CECL loss methodology, whereas the third quarter 2020 provision for
credit losses was reported using the incurred loss methodology.
The change in provision for credit losses between periods is
highlighted in the table below:
|
|
CECL
|
|
Incurred
|
|
Change
|
($ in
thousands)
|
|
Q4
2020
|
|
Q3
2020
|
|
Increase /
(Decrease)
|
Provision for credit
losses - loans
|
|
$
|
1,043
|
|
|
$
|
1,000
|
|
|
$
|
43
|
|
Credit for credit
losses - off-balance sheet credit
exposures
|
|
(785)
|
|
|
(13)
|
|
|
(772)
|
|
Provision for
credit losses
|
|
$
|
258
|
|
|
$
|
987
|
|
|
$
|
(729)
|
|
Non-Interest Income. Non-interest income for the
fourth quarter of 2020 was $14.3
million, an increase of $1.6
million, or 13%, over the third quarter of 2020. The
increase between periods was driven by an increase in mortgage
banking income of $934,000 and
recognition of our annual debit card income bonus of $555,000 in the fourth quarter of 2020.
Non-Interest Expense. Non-interest expense for the
fourth quarter of 2020 was $26.7
million, an increase of $1.5
million, or 6%, compared to the third quarter of 2020.
Compensation-related expenses increased $2.5
million between periods primarily due to incentive
compensation due to strong Company performance for the year ended
2020. This was partially offset by a decrease in other expenses of
$1.2 million between periods as the
Company accrued $1.2 million for a
legal matter settlement in the third quarter of 2020. The Company's
efficiency ratio calculated in accordance with generally accepted
accounting principles in the United
States ("GAAP") was 53.61% for the fourth quarter of 2020
and 53.30% for the fourth quarter of 2020 on a non-GAAP basis.
FINANCIAL OPERATING RESULTS (Q4 2020 vs. Q4 2019)
Net income for the fourth quarter 2020 increased $3.0 million, or 20%, over the fourth quarter of
2019. Diluted EPS increased $0.23, or
23%, over the same period.
Net Interest Income. Net interest income for the
fourth quarter of 2020 increased $3.2
million, or 10%, over the fourth quarter 2019. The increase
was led by PPP loan income of $3.7
million in the fourth quarter of 2020.
Net interest margin for the fourth quarter of 2020 decreased 6
basis points compared to the fourth quarter of 2019. Net interest
margin compression between periods was driven by the change in the
interest rate environment and the build of cash balances both
pressuring our yield on interest-earning assets. Our yield on
interest-earning assets for the fourth quarter of 2020 was 3.38%,
which included a 19 basis point contribution from PPP loans and a
15 basis point drag from excess liquidity, compared to 4.02%, which
included a 1 basis point drag from excess liquidity, for the fourth
quarter of 2019. Over this same period, our cost of funds decreased
61 basis points to 0.33% for the fourth quarter of 2020.
Our net interest margin, excluding PPP loans and excess
liquidity (non-GAAP), for the fourth quarter of 2020 was 2.99%,
compared to 3.13% for the fourth quarter of 2019.
Provision for Credit Losses. The provision for
credit losses for the fourth quarter of 2020 was reported using the
CECL loss methodology, whereas the fourth quarter 2019 provision
for credit losses was reported using the incurred loss
methodology.
The change in provision for credit losses between periods is
highlighted in the table below:
|
|
CECL
|
|
Incurred
|
|
Change
|
($ in
thousands)
|
|
Q4
2020
|
|
Q4
2019
|
|
Increase /
(Decrease)
|
Provision for credit
losses - loans
|
|
$
|
1,043
|
|
|
$
|
204
|
|
|
$
|
839
|
|
(Credit) provision
for credit losses - off-balance
sheet credit exposures
|
|
(785)
|
|
|
10
|
|
|
(795)
|
|
Provision for
credit losses
|
|
$
|
258
|
|
|
$
|
214
|
|
|
$
|
44
|
|
Non-Interest Income. Non-interest income for the
fourth quarter 2020 increased $2.4
million, or 20%, over the fourth quarter of 2019. The
increase between periods was led by an increase in mortgage banking
income of $3.4 million driven by an
increase in residential mortgage sales of 64%, and was partially
offset by a one-time unrealized gain of $866,000 recognized in the fourth quarter of
2019, lower service charge income of $449,000 and lower customer loan swap fees of
$247,000.
Non-Interest Expense. Non-interest expense for the
fourth quarter of 2020 increased $1.9
million, or 8%, over the fourth quarter of 2019. The net
increase was driven by: (1) an increase in compensation-related
expenses of $1.8 million driven by
normal merit increases and higher incentive accruals based on
performance, (2) an increase in furniture, equipment, and data
processing costs of $410,000 driven
by new systems and technologies, (3) an increase in regulatory
assessment costs of $309,000 as the
assessment credits received in 2019 were fully utilized prior to
the fourth quarter of 2020, and (4) lower employment and
travel-related costs of $432,000
driven by changes due to COVID-19.
CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m., Eastern Time, on
Tuesday, January 26, 2021 to discuss
its fourth quarter and fiscal year 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/cac210126.html
|
A link to the live webcast will be available on Camden
National's website under "Investor Relations" at 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
approximately $4.9 billion in assets
and approximately 610 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 three years,
Camden National Bank was named a
Customer Experience (CX) Leader by a leading independent research
firm, Greenwich Associates. In 2020, it received awards in two CX
categories: U.S. Retail Banking and U.S. Commercial Small Business.
The Finance Authority of Maine has
awarded Camden National Bank as
"Lender at Work for Maine" for
eleven 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 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; adjusted yield on
interest-earning assets and adjusted net interest margin
(fully-taxable equivalent); 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
Year
Ended
|
(In thousands, except number of shares
and per share
data)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,128,651
|
|
|
$
|
1,121,712
|
|
|
$
|
933,069
|
|
|
$
|
1,128,651
|
|
|
$
|
933,069
|
|
Loans and loans held
for sale
|
|
3,261,379
|
|
|
3,312,777
|
|
|
3,106,877
|
|
|
3,261,379
|
|
|
3,106,877
|
|
Allowance for loan
losses
|
|
37,865
|
|
|
36,414
|
|
|
25,171
|
|
|
37,865
|
|
|
25,171
|
|
Total
assets
|
|
4,898,745
|
|
|
5,153,793
|
|
|
4,429,521
|
|
|
4,898,745
|
|
|
4,429,521
|
|
Deposits
|
|
4,005,244
|
|
|
4,224,044
|
|
|
3,537,743
|
|
|
4,005,244
|
|
|
3,537,743
|
|
Borrowings
|
|
246,770
|
|
|
294,361
|
|
|
337,889
|
|
|
246,770
|
|
|
337,889
|
|
Shareholders'
equity
|
|
529,314
|
|
|
517,522
|
|
|
473,415
|
|
|
529,314
|
|
|
473,415
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
35,461
|
|
|
$
|
34,481
|
|
|
$
|
32,239
|
|
|
$
|
136,307
|
|
|
$
|
127,630
|
|
Provision for credit
losses
|
|
258
|
|
|
987
|
|
|
214
|
|
|
12,418
|
|
|
2,861
|
|
Non-interest
income
|
|
14,331
|
|
|
12,696
|
|
|
11,948
|
|
|
50,490
|
|
|
42,113
|
|
Non-interest
expense
|
|
26,692
|
|
|
25,221
|
|
|
24,814
|
|
|
99,983
|
|
|
95,303
|
|
Income before income
tax expense
|
|
22,842
|
|
|
20,969
|
|
|
19,159
|
|
|
74,396
|
|
|
71,579
|
|
Income tax
expense
|
|
4,564
|
|
|
4,194
|
|
|
3,921
|
|
|
14,910
|
|
|
14,376
|
|
Net income
|
|
$
|
18,278
|
|
|
$
|
16,775
|
|
|
$
|
15,238
|
|
|
$
|
59,486
|
|
|
$
|
57,203
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.45
|
%
|
|
1.34
|
%
|
|
1.35
|
%
|
|
1.23
|
%
|
|
1.30
|
%
|
Return on average
equity
|
|
13.94
|
%
|
|
13.01
|
%
|
|
12.77
|
%
|
|
11.81
|
%
|
|
12.44
|
%
|
GAAP efficiency
ratio
|
|
53.61
|
%
|
|
53.46
|
%
|
|
56.16
|
%
|
|
53.52
|
%
|
|
56.15
|
%
|
Net interest margin
(fully-taxable equivalent)
|
|
3.06
|
%
|
|
3.00
|
%
|
|
3.12
|
%
|
|
3.09
|
%
|
|
3.15
|
%
|
Non-performing assets
to total assets
|
|
0.22
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
Common equity
ratio
|
|
10.81
|
%
|
|
10.04
|
%
|
|
10.69
|
%
|
|
10.81
|
%
|
|
10.69
|
%
|
Tier 1 leverage
capital ratio
|
|
9.13
|
%
|
|
8.96
|
%
|
|
9.55
|
%
|
|
9.13
|
%
|
|
9.55
|
%
|
Common equity tier 1
risk-based capital ratio
|
|
12.45
|
%
|
|
12.21
|
%
|
|
11.80
|
%
|
|
12.45
|
%
|
|
11.80
|
%
|
Tier 1 risk-based
capital ratio
|
|
13.78
|
%
|
|
13.55
|
%
|
|
13.16
|
%
|
|
13.78
|
%
|
|
13.16
|
%
|
Total risk-based
capital ratio
|
|
15.40
|
%
|
|
15.15
|
%
|
|
14.44
|
%
|
|
15.40
|
%
|
|
14.44
|
%
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.22
|
|
|
$
|
1.12
|
|
|
$
|
1.00
|
|
|
$
|
3.96
|
|
|
$
|
3.70
|
|
Diluted earnings per
share
|
|
$
|
1.22
|
|
|
$
|
1.11
|
|
|
$
|
0.99
|
|
|
$
|
3.95
|
|
|
$
|
3.69
|
|
Cash dividends
declared per share
|
|
$
|
0.33
|
|
|
$
|
0.33
|
|
|
$
|
0.33
|
|
|
$
|
1.32
|
|
|
$
|
1.23
|
|
Book value per
share
|
|
$
|
35.50
|
|
|
$
|
34.69
|
|
|
$
|
31.26
|
|
|
$
|
35.50
|
|
|
$
|
31.26
|
|
Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
|
17.27
|
%
|
|
16.21
|
%
|
|
16.26
|
%
|
|
14.79
|
%
|
|
15.99
|
%
|
Efficiency
ratio
|
|
53.30
|
%
|
|
50.60
|
%
|
|
55.64
|
%
|
|
52.56
|
%
|
|
55.77
|
%
|
Pre-tax,
pre-provision earnings
|
|
$
|
23,100
|
|
|
$
|
21,956
|
|
|
$
|
19,373
|
|
|
$
|
86,814
|
|
|
$
|
74,440
|
|
Allowance for loan
losses to total loans, excluding SBA PPP
loans
|
|
1.23
|
%
|
|
1.19
|
%
|
|
0.81
|
%
|
|
1.23
|
%
|
|
0.81
|
%
|
Tangible common
equity ratio
|
|
8.99
|
%
|
|
8.30
|
%
|
|
8.66
|
%
|
|
8.99
|
%
|
|
8.66
|
%
|
Tangible book value
per share
|
|
$
|
28.96
|
|
|
$
|
28.14
|
|
|
$
|
24.77
|
|
|
$
|
28.96
|
|
|
$
|
24.77
|
|
|
(1)
|
Please see
"Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
(In thousands)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
49,524
|
|
|
$
|
42,119
|
|
|
$
|
39,586
|
|
Interest-bearing
deposits in other banks (including restricted cash)
|
|
96,250
|
|
|
304,270
|
|
|
36,050
|
|
Total cash, cash
equivalents and restricted cash
|
|
145,774
|
|
|
346,389
|
|
|
75,636
|
|
Investments:
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value (book value of $1,078,474, $1,070,479 and
$913,978,
respectively)
|
|
1,115,813
|
|
|
1,107,069
|
|
|
918,118
|
|
Held-to-maturity
securities, at amortized cost (fair value of $1,411, $1,403 and
$1,359, respectively)
|
|
1,297
|
|
|
1,298
|
|
|
1,302
|
|
Other
investments
|
|
11,541
|
|
|
13,345
|
|
|
13,649
|
|
Total
investments
|
|
1,128,651
|
|
|
1,121,712
|
|
|
933,069
|
|
Loans held for sale,
at fair value (book value of $40,499, $37,301 and $11,915,
respectively)
|
|
41,557
|
|
|
37,935
|
|
|
11,854
|
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,369,470
|
|
|
1,333,733
|
|
|
1,243,397
|
|
Commercial(1)
|
|
381,494
|
|
|
375,548
|
|
|
442,701
|
|
SBA PPP
|
|
135,095
|
|
|
223,838
|
|
|
—
|
|
Residential real
estate
|
|
1,054,798
|
|
|
1,044,103
|
|
|
1,070,374
|
|
Consumer and home
equity
|
|
278,965
|
|
|
297,620
|
|
|
338,551
|
|
Total loans
|
|
3,219,822
|
|
|
3,274,842
|
|
|
3,095,023
|
|
Less: allowance for
loan losses(2)
|
|
(37,865)
|
|
|
(36,414)
|
|
|
(25,171)
|
|
Net
loans
|
|
3,181,957
|
|
|
3,238,428
|
|
|
3,069,852
|
|
Goodwill
|
|
94,697
|
|
|
94,697
|
|
|
94,697
|
|
Core deposit
intangible assets
|
|
2,843
|
|
|
3,014
|
|
|
3,525
|
|
Bank-owned life
insurance
|
|
94,877
|
|
|
94,262
|
|
|
92,344
|
|
Premises and
equipment, net
|
|
39,884
|
|
|
40,517
|
|
|
41,836
|
|
Deferred tax
assets
|
|
11,956
|
|
|
11,195
|
|
|
16,823
|
|
Other
assets
|
|
156,549
|
|
|
165,644
|
|
|
89,885
|
|
Total
assets
|
|
$
|
4,898,745
|
|
|
$
|
5,153,793
|
|
|
$
|
4,429,521
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
792,550
|
|
|
$
|
800,582
|
|
|
$
|
552,590
|
|
Interest
checking
|
|
1,288,575
|
|
|
1,419,544
|
|
|
1,153,203
|
|
Savings and money
market
|
|
1,282,886
|
|
|
1,306,868
|
|
|
1,119,193
|
|
Certificates of
deposit
|
|
357,666
|
|
|
405,434
|
|
|
521,752
|
|
Brokered
deposits
|
|
283,567
|
|
|
291,616
|
|
|
191,005
|
|
Total
deposits
|
|
4,005,244
|
|
|
4,224,044
|
|
|
3,537,743
|
|
Short-term
borrowings
|
|
162,439
|
|
|
210,055
|
|
|
268,809
|
|
Long-term
borrowings
|
|
25,000
|
|
|
25,000
|
|
|
10,000
|
|
Subordinated
debentures
|
|
59,331
|
|
|
59,306
|
|
|
59,080
|
|
Accrued interest and
other liabilities(2)
|
|
117,417
|
|
|
117,866
|
|
|
80,474
|
|
Total
liabilities
|
|
4,369,431
|
|
|
4,636,271
|
|
|
3,956,106
|
|
Shareholders'
equity
|
|
529,314
|
|
|
517,522
|
|
|
473,415
|
|
Total liabilities
and shareholders' equity
|
|
$
|
4,898,745
|
|
|
$
|
5,153,793
|
|
|
$
|
4,429,521
|
|
|
(1)
|
Includes the
Healthcare Professional Funding Corporation ("HPFC") loan
portfolio.
|
(2)
|
At December 31, 2020,
the reported balance has been accounted for under the CECL model.
Periods reported prior to December 31, 2020, have been accounted
for under the incurred loss model.
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
|
For
The
Three Months
Ended
|
|
For
the
Year
Ended
|
(In thousands, except per share data)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
33,810
|
|
|
$
|
33,025
|
|
|
$
|
35,379
|
|
|
$
|
134,000
|
|
|
$
|
143,399
|
|
Taxable interest on
investments
|
|
4,158
|
|
|
4,480
|
|
|
4,780
|
|
|
18,399
|
|
|
19,509
|
|
Nontaxable interest
on investments
|
|
815
|
|
|
823
|
|
|
758
|
|
|
3,253
|
|
|
2,701
|
|
Dividend
income
|
|
157
|
|
|
163
|
|
|
160
|
|
|
655
|
|
|
722
|
|
Other interest
income
|
|
202
|
|
|
176
|
|
|
475
|
|
|
893
|
|
|
2,187
|
|
Total interest
income
|
|
39,142
|
|
|
38,667
|
|
|
41,552
|
|
|
157,200
|
|
|
168,518
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,591
|
|
|
2,899
|
|
|
7,459
|
|
|
15,544
|
|
|
34,001
|
|
Interest on
borrowings
|
|
246
|
|
|
394
|
|
|
961
|
|
|
1,837
|
|
|
3,621
|
|
Interest on
subordinated debentures
|
|
844
|
|
|
893
|
|
|
893
|
|
|
3,512
|
|
|
3,266
|
|
Total interest
expense
|
|
3,681
|
|
|
4,186
|
|
|
9,313
|
|
|
20,893
|
|
|
40,888
|
|
Net interest
income
|
|
35,461
|
|
|
34,481
|
|
|
32,239
|
|
|
136,307
|
|
|
127,630
|
|
Provision for
credit losses(1)
|
|
258
|
|
|
987
|
|
|
214
|
|
|
12,418
|
|
|
2,861
|
|
Net interest income
after provision for credit losses
|
|
35,203
|
|
|
33,494
|
|
|
32,025
|
|
|
123,889
|
|
|
124,769
|
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income, net
|
|
5,598
|
|
|
4,664
|
|
|
2,175
|
|
|
18,487
|
|
|
7,837
|
|
Debit card
income
|
|
3,261
|
|
|
2,627
|
|
|
2,978
|
|
|
10,420
|
|
|
9,701
|
|
Service charges on
deposit accounts
|
|
1,742
|
|
|
1,606
|
|
|
2,191
|
|
|
6,697
|
|
|
8,393
|
|
Income from fiduciary
services
|
|
1,506
|
|
|
1,504
|
|
|
1,520
|
|
|
6,115
|
|
|
5,901
|
|
Brokerage and
insurance commissions
|
|
798
|
|
|
755
|
|
|
683
|
|
|
2,832
|
|
|
2,625
|
|
Bank-owned life
insurance
|
|
615
|
|
|
615
|
|
|
615
|
|
|
2,533
|
|
|
2,425
|
|
Customer loan swap
fees
|
|
—
|
|
|
51
|
|
|
247
|
|
|
222
|
|
|
1,166
|
|
Net loss on sale of
securities
|
|
—
|
|
|
—
|
|
|
(133)
|
|
|
—
|
|
|
(105)
|
|
Other
income
|
|
811
|
|
|
874
|
|
|
1,672
|
|
|
3,184
|
|
|
4,170
|
|
Total non-interest
income
|
|
14,331
|
|
|
12,696
|
|
|
11,948
|
|
|
50,490
|
|
|
42,113
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
16,245
|
|
|
13,739
|
|
|
14,446
|
|
|
57,938
|
|
|
54,489
|
|
Furniture, equipment
and data processing
|
|
3,180
|
|
|
3,076
|
|
|
2,770
|
|
|
11,756
|
|
|
10,881
|
|
Net occupancy
costs
|
|
1,800
|
|
|
1,785
|
|
|
1,784
|
|
|
7,585
|
|
|
7,047
|
|
Consulting and
professional fees
|
|
956
|
|
|
913
|
|
|
1,027
|
|
|
3,833
|
|
|
3,706
|
|
Debit card
expense
|
|
969
|
|
|
972
|
|
|
947
|
|
|
3,753
|
|
|
3,613
|
|
Regulatory
assessments
|
|
479
|
|
|
510
|
|
|
170
|
|
|
1,450
|
|
|
1,261
|
|
Amortization of core
deposit intangible assets
|
|
171
|
|
|
170
|
|
|
176
|
|
|
682
|
|
|
705
|
|
Other real estate
owned and collection costs, net
|
|
112
|
|
|
71
|
|
|
127
|
|
|
382
|
|
|
480
|
|
Other
expenses
|
|
2,780
|
|
|
3,985
|
|
|
3,367
|
|
|
12,604
|
|
|
13,121
|
|
Total non-interest
expense
|
|
26,692
|
|
|
25,221
|
|
|
24,814
|
|
|
99,983
|
|
|
95,303
|
|
Income before
income tax expense
|
|
22,842
|
|
|
20,969
|
|
|
19,159
|
|
|
74,396
|
|
|
71,579
|
|
Income Tax
Expense
|
|
4,564
|
|
|
4,194
|
|
|
3,921
|
|
|
14,910
|
|
|
14,376
|
|
Net
Income
|
|
$
|
18,278
|
|
|
$
|
16,775
|
|
|
$
|
15,238
|
|
|
$
|
59,486
|
|
|
$
|
57,203
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
1.22
|
|
|
$
|
1.12
|
|
|
$
|
1.00
|
|
|
$
|
3.96
|
|
|
$
|
3.70
|
|
Diluted earnings per
share
|
|
$
|
1.22
|
|
|
$
|
1.11
|
|
|
$
|
0.99
|
|
|
$
|
3.95
|
|
|
$
|
3.69
|
|
|
(1)
|
Reported balances for
the three and 12 months ended December 31, 2020, have been
accounted for under the CECL model. Reported balances for the three
months ended September 30, 2020 and December 31, 2019, and 12
months ended December 31, 2019, have been accounted for under the
incurred loss method.
|
Quarterly Average
Balance and Yield/Rate Analysis
(unaudited)
|
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
(In
thousands)
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and
other interest-earning assets
|
|
$
|
267,083
|
|
|
$
|
216,027
|
|
|
$
|
79,578
|
|
|
0.09
|
%
|
|
0.09
|
%
|
|
1.74
|
%
|
Investments -
taxable
|
|
945,866
|
|
|
906,374
|
|
|
804,587
|
|
|
1.88
|
%
|
|
2.11
|
%
|
|
2.52
|
%
|
Investments -
nontaxable(1)
|
|
121,354
|
|
|
122,204
|
|
|
112,730
|
|
|
3.40
|
%
|
|
3.41
|
%
|
|
3.40
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
|
1,348,269
|
|
|
1,315,958
|
|
|
1,249,961
|
|
|
3.65
|
%
|
|
3.74
|
%
|
|
4.40
|
%
|
Commercial(1)
|
|
331,707
|
|
|
372,416
|
|
|
403,601
|
|
|
3.89
|
%
|
|
3.73
|
%
|
|
4.41
|
%
|
SBA
PPP
|
|
186,416
|
|
|
221,672
|
|
|
—
|
|
|
7.74
|
%
|
|
4.16
|
%
|
|
—
|
%
|
Municipal(1)
|
|
20,645
|
|
|
19,072
|
|
|
18,469
|
|
|
3.46
|
%
|
|
3.52
|
%
|
|
3.66
|
%
|
HPFC
|
|
13,947
|
|
|
16,104
|
|
|
22,516
|
|
|
6.98
|
%
|
|
8.09
|
%
|
|
7.56
|
%
|
Residential real estate
|
|
1,093,367
|
|
|
1,083,052
|
|
|
1,078,485
|
|
|
3.96
|
%
|
|
4.00
|
%
|
|
4.38
|
%
|
Consumer
and home equity
|
|
287,665
|
|
|
305,194
|
|
|
345,487
|
|
|
4.25
|
%
|
|
4.31
|
%
|
|
5.11
|
%
|
Total
loans
|
|
3,282,016
|
|
|
3,333,468
|
|
|
3,118,519
|
|
|
4.07
|
%
|
|
3.92
|
%
|
|
4.49
|
%
|
Total
interest-earning assets
|
|
4,616,319
|
|
|
4,578,073
|
|
|
4,115,414
|
|
|
3.38
|
%
|
|
3.37
|
%
|
|
4.02
|
%
|
Other
assets
|
|
405,976
|
|
|
417,956
|
|
|
349,786
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,022,295
|
|
|
$
|
4,996,029
|
|
|
$
|
4,465,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
800,391
|
|
|
$
|
741,757
|
|
|
$
|
558,677
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,371,910
|
|
|
1,339,389
|
|
|
1,165,610
|
|
|
0.23
|
%
|
|
0.26
|
%
|
|
0.79
|
%
|
Savings
|
|
589,856
|
|
|
557,718
|
|
|
471,777
|
|
|
0.04
|
%
|
|
0.06
|
%
|
|
0.08
|
%
|
Money
market
|
|
700,949
|
|
|
737,782
|
|
|
642,174
|
|
|
0.33
|
%
|
|
0.35
|
%
|
|
1.16
|
%
|
Certificates of
deposit
|
|
373,364
|
|
|
417,788
|
|
|
533,416
|
|
|
0.89
|
%
|
|
1.07
|
%
|
|
1.66
|
%
|
Total
deposits
|
|
3,836,470
|
|
|
3,794,434
|
|
|
3,371,654
|
|
|
0.23
|
%
|
|
0.29
|
%
|
|
0.77
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
286,038
|
|
|
242,390
|
|
|
187,125
|
|
|
0.46
|
%
|
|
0.26
|
%
|
|
2.02
|
%
|
Customer repurchase
agreements
|
|
183,337
|
|
|
194,937
|
|
|
247,780
|
|
|
0.40
|
%
|
|
0.42
|
%
|
|
1.20
|
%
|
Subordinated
debentures
|
|
59,327
|
|
|
59,269
|
|
|
59,037
|
|
|
5.66
|
%
|
|
6.00
|
%
|
|
6.01
|
%
|
Other
borrowings
|
|
25,000
|
|
|
73,370
|
|
|
44,816
|
|
|
1.00
|
%
|
|
1.02
|
%
|
|
1.88
|
%
|
Total
borrowings
|
|
553,702
|
|
|
569,966
|
|
|
538,758
|
|
|
1.02
|
%
|
|
1.01
|
%
|
|
2.07
|
%
|
Total funding
liabilities
|
|
4,390,172
|
|
|
4,364,400
|
|
|
3,910,412
|
|
|
0.33
|
%
|
|
0.38
|
%
|
|
0.94
|
%
|
Other
liabilities
|
|
110,452
|
|
|
118,727
|
|
|
81,261
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
521,671
|
|
|
512,902
|
|
|
473,527
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
5,022,295
|
|
|
$
|
4,996,029
|
|
|
$
|
4,465,200
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.05
|
%
|
|
2.99
|
%
|
|
3.08
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.06
|
%
|
|
3.00
|
%
|
|
3.12
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of
previously charged-off acquired
loans(3)
|
|
3.03
|
%
|
|
2.96
|
%
|
|
3.09
|
%
|
|
(1)
|
Reported on
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
December 31, 2020, September 30, 2020, and December 31, 2019,
totaling $339,000, $453,000 and $326,000, respectively.
|
Year-to-Date
Average Balance and Yield/Rate Analysis
(unaudited)
|
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For the Year
Ended
|
|
For the Year
Ended
|
(In
thousands)
|
|
December
31,
2020
|
|
December
31,
2019
|
|
December
31,
2020
|
|
December
31,
2019
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
|
179,718
|
|
|
$
|
67,288
|
|
|
0.19
|
%
|
|
2.13
|
%
|
Investments -
taxable
|
|
874,823
|
|
|
825,674
|
|
|
2.24
|
%
|
|
2.54
|
%
|
Investments -
nontaxable(1)
|
|
121,302
|
|
|
99,024
|
|
|
3.39
|
%
|
|
3.45
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
Commercial
real estate
|
|
1,310,160
|
|
|
1,260,412
|
|
|
3.92
|
%
|
|
4.66
|
%
|
Commercial(1)
|
|
381,087
|
|
|
390,689
|
|
|
3.97
|
%
|
|
4.68
|
%
|
SBA
PPP
|
|
146,918
|
|
|
—
|
|
|
5.28
|
%
|
|
—
|
%
|
Municipal(1)
|
|
19,073
|
|
|
19,181
|
|
|
3.56
|
%
|
|
3.59
|
%
|
HPFC
|
|
17,000
|
|
|
27,502
|
|
|
8.23
|
%
|
|
8.05
|
%
|
Residential real estate
|
|
1,085,064
|
|
|
1,045,668
|
|
|
4.05
|
%
|
|
4.33
|
%
|
Consumer
and home equity
|
|
312,076
|
|
|
346,769
|
|
|
4.48
|
%
|
|
5.35
|
%
|
Total
loans
|
|
3,271,378
|
|
|
3,090,221
|
|
|
4.11
|
%
|
|
4.65
|
%
|
Total
interest-earning assets
|
|
4,447,221
|
|
|
4,082,207
|
|
|
3.56
|
%
|
|
4.15
|
%
|
Other
assets
|
|
398,224
|
|
|
328,301
|
|
|
|
|
|
Total
assets
|
|
$
|
4,845,445
|
|
|
$
|
4,410,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
684,539
|
|
|
$
|
519,078
|
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,289,501
|
|
|
1,123,268
|
|
|
0.35
|
%
|
|
0.93
|
%
|
Savings
|
|
536,014
|
|
|
476,860
|
|
|
0.06
|
%
|
|
0.08
|
%
|
Money
market
|
|
701,640
|
|
|
607,383
|
|
|
0.50
|
%
|
|
1.24
|
%
|
Certificates of
deposit
|
|
454,750
|
|
|
506,971
|
|
|
1.27
|
%
|
|
1.57
|
%
|
Total
deposits
|
|
3,666,444
|
|
|
3,233,560
|
|
|
0.38
|
%
|
|
0.81
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
242,951
|
|
|
316,475
|
|
|
0.60
|
%
|
|
2.42
|
%
|
Customer repurchase
agreements
|
|
205,890
|
|
|
241,899
|
|
|
0.64
|
%
|
|
1.25
|
%
|
Subordinated
debentures
|
|
59,228
|
|
|
59,007
|
|
|
5.93
|
%
|
|
5.54
|
%
|
Other
borrowings
|
|
58,601
|
|
|
29,132
|
|
|
0.89
|
%
|
|
2.05
|
%
|
Total
borrowings
|
|
566,670
|
|
|
646,513
|
|
|
1.20
|
%
|
|
2.25
|
%
|
Total funding
liabilities
|
|
4,233,114
|
|
|
3,880,073
|
|
|
0.49
|
%
|
|
1.05
|
%
|
Other
liabilities
|
|
108,707
|
|
|
70,570
|
|
|
|
|
|
Shareholders'
equity
|
|
503,624
|
|
|
459,865
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
4,845,445
|
|
|
$
|
4,410,508
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
3.07
|
%
|
|
3.10
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
3.09
|
%
|
|
3.15
|
%
|
Net interest
margin (fully-taxable equivalent), excluding fair value mark
accretion and collection of previously
charged-off acquired loans(3)
|
|
3.06
|
%
|
|
3.11
|
%
|
|
(1)
|
Reported on
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 years ended December
31, 2020 and 2019, totaling $1.5 million and $1.6 million,
respectively.
|
Asset Quality
Data
(unaudited)
|
|
(In
thousands)
|
|
At or For
The
Year
Ended
December 31,
2020
|
|
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
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
3,531
|
|
|
$
|
4,017
|
|
|
$
|
4,664
|
|
|
$
|
3,499
|
|
|
$
|
4,096
|
|
Commercial real
estate
|
|
518
|
|
|
565
|
|
|
432
|
|
|
646
|
|
|
1,122
|
|
Commercial(1)
|
|
1,607
|
|
|
1,114
|
|
|
1,091
|
|
|
1,070
|
|
|
784
|
|
Consumer and home
equity
|
|
1,996
|
|
|
2,503
|
|
|
2,371
|
|
|
2,102
|
|
|
2,154
|
|
Total non-accrual
loans
|
|
7,652
|
|
|
8,199
|
|
|
8,558
|
|
|
7,317
|
|
|
8,156
|
|
Accruing
troubled-debt restructured loans not
included above
|
|
2,818
|
|
|
2,952
|
|
|
2,874
|
|
|
3,008
|
|
|
2,993
|
|
Total
non-performing loans
|
|
10,470
|
|
|
11,151
|
|
|
11,432
|
|
|
10,325
|
|
|
11,149
|
|
Other real estate
owned
|
|
236
|
|
|
—
|
|
|
118
|
|
|
94
|
|
|
94
|
|
Total
non-performing assets
|
|
$
|
10,706
|
|
|
$
|
11,151
|
|
|
$
|
11,550
|
|
|
$
|
10,419
|
|
|
$
|
11,243
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
2,297
|
|
|
$
|
1,784
|
|
|
$
|
4,016
|
|
|
$
|
1,781
|
|
|
$
|
2,227
|
|
Commercial real
estate
|
|
50
|
|
|
2,056
|
|
|
1,625
|
|
|
2,641
|
|
|
1,582
|
|
Commercial(1)
|
|
430
|
|
|
1,638
|
|
|
223
|
|
|
1,725
|
|
|
791
|
|
Consumer and home
equity
|
|
440
|
|
|
434
|
|
|
388
|
|
|
1,379
|
|
|
750
|
|
Total loans 30-89
days past due
|
|
$
|
3,217
|
|
|
$
|
5,912
|
|
|
$
|
6,252
|
|
|
$
|
7,526
|
|
|
$
|
5,350
|
|
Allowance for loan
losses at the beginning of the
period
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
|
$
|
24,712
|
|
Impact of adopting
CECL
|
|
233
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Provision for loan
losses
|
|
13,215
|
|
|
12,172
|
|
|
11,172
|
|
|
1,772
|
|
|
2,862
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
121
|
|
|
121
|
|
|
96
|
|
|
96
|
|
|
462
|
|
Commercial real
estate
|
|
103
|
|
|
104
|
|
|
71
|
|
|
50
|
|
|
300
|
|
Commercial(1)
|
|
1,130
|
|
|
857
|
|
|
673
|
|
|
253
|
|
|
1,238
|
|
Consumer and home
equity
|
|
484
|
|
|
199
|
|
|
134
|
|
|
91
|
|
|
713
|
|
Total
charge-offs
|
|
1,838
|
|
|
1,281
|
|
|
974
|
|
|
490
|
|
|
2,713
|
|
Total
recoveries
|
|
(1,084)
|
|
|
(352)
|
|
|
(170)
|
|
|
(68)
|
|
|
(310)
|
|
Net
charge-offs
|
|
754
|
|
|
929
|
|
|
804
|
|
|
422
|
|
|
2,403
|
|
Allowance for loan
losses at the end of the period
|
|
37,865
|
|
|
36,414
|
|
|
35,539
|
|
|
26,521
|
|
|
25,171
|
|
Allowance for
off-balance sheet credit
exposures(2)(3)
|
|
2,568
|
|
|
9
|
|
|
22
|
|
|
24
|
|
|
21
|
|
Allowance for
credit losses
|
|
$
|
40,433
|
|
|
$
|
36,423
|
|
|
$
|
35,561
|
|
|
$
|
26,545
|
|
|
$
|
25,192
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.33
|
%
|
|
0.34
|
%
|
|
0.34
|
%
|
|
0.33
|
%
|
|
0.36
|
%
|
Non-performing assets
to total assets
|
|
0.22
|
%
|
|
0.22
|
%
|
|
0.23
|
%
|
|
0.23
|
%
|
|
0.25
|
%
|
Allowance for loan
losses to total loans
|
|
1.18
|
%
|
|
1.11
|
%
|
|
1.07
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
Allowance for loan
losses to total loans, excluding
SBA PPP loans(4)
|
|
1.23
|
%
|
|
1.19
|
%
|
|
1.14
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
Net (recoveries)
charge-offs to average loans (annualized)
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
(0.02)
|
%
|
|
0.01
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.09
|
%
|
Year-to-date
|
|
0.02
|
%
|
|
0.04
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.08
|
%
|
Allowance for loan
losses to non-performing loans
|
|
361.65
|
%
|
|
326.55
|
%
|
|
310.87
|
%
|
|
256.86
|
%
|
|
225.77
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.10
|
%
|
|
0.18
|
%
|
|
0.19
|
%
|
|
0.24
|
%
|
|
0.17
|
%
|
|
(1)
|
Includes the HPFC
loan portfolio.
|
(2)
|
Period ended December
31, 2020, includes a $3.3 million increase upon adoption of CECL.
Prior periods were not restated for CECL.
|
(3)
|
Presented within
accrued interest and other liabilities on the consolidated
statements of condition.
|
(4)
|
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 Year Ended
|
(In
thousands)
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
Net income, as
presented
|
|
$
|
18,278
|
|
|
$
|
16,775
|
|
|
$
|
15,238
|
|
|
$
|
59,486
|
|
|
$
|
57,203
|
|
Add: amortization of
core deposit
intangible assets, net of tax(1)
|
|
135
|
|
|
134
|
|
|
139
|
|
|
539
|
|
|
557
|
|
Net income, adjusted
for amortization of
core deposit intangible assets
|
|
$
|
18,413
|
|
|
$
|
16,909
|
|
|
$
|
15,377
|
|
|
$
|
60,025
|
|
|
$
|
57,760
|
|
Average equity, as
presented
|
|
$
|
521,671
|
|
|
$
|
512,902
|
|
|
$
|
473,527
|
|
|
$
|
503,624
|
|
|
$
|
459,865
|
|
Less: average goodwill
and core deposit
intangible assets
|
|
(97,622)
|
|
|
(97,794)
|
|
|
(98,307)
|
|
|
(97,880)
|
|
|
(98,570)
|
|
Average tangible
equity
|
|
$
|
424,049
|
|
|
$
|
415,108
|
|
|
$
|
375,220
|
|
|
$
|
405,744
|
|
|
$
|
361,295
|
|
Return on average
equity
|
|
13.94
|
%
|
|
13.01
|
%
|
|
12.77
|
%
|
|
11.81
|
%
|
|
12.44
|
%
|
Return on average
tangible equity
|
|
17.27
|
%
|
|
16.21
|
%
|
|
16.26
|
%
|
|
14.79
|
%
|
|
15.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Assumed a 21% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
Ratio:
|
|
|
For
the Three Months Ended
|
|
For
the Year Ended
|
(In
thousands)
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
Non-interest expense,
as presented
|
|
$
|
26,692
|
|
|
$
|
25,221
|
|
|
$
|
24,814
|
|
|
$
|
99,983
|
|
|
$
|
95,303
|
|
Less: legal
settlement
|
|
—
|
|
|
(1,200)
|
|
|
—
|
|
|
(1,200)
|
|
|
—
|
|
Adjusted non-interest
expense
|
|
$
|
26,692
|
|
|
$
|
24,021
|
|
|
$
|
24,814
|
|
|
$
|
98,783
|
|
|
$
|
95,303
|
|
Net interest income,
as presented
|
|
$
|
35,461
|
|
|
$
|
34,481
|
|
|
$
|
32,239
|
|
|
$
|
136,307
|
|
|
$
|
127,630
|
|
Add: effect of
tax-exempt income(1)
|
|
290
|
|
|
292
|
|
|
277
|
|
|
1,155
|
|
|
1,029
|
|
Non-interest income,
as presented
|
|
14,331
|
|
|
12,696
|
|
|
11,948
|
|
|
50,490
|
|
|
42,113
|
|
Add: net loss on sale
of securities
|
|
—
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
105
|
|
Adjusted net interest
income plus non-
interest income
|
|
$
|
50,082
|
|
|
$
|
47,469
|
|
|
$
|
44,597
|
|
|
$
|
187,952
|
|
|
$
|
170,877
|
|
GAAP efficiency
ratio
|
|
53.61
|
%
|
|
53.46
|
%
|
|
56.16
|
%
|
|
53.52
|
%
|
|
56.15
|
%
|
Non-GAAP efficiency
ratio
|
|
53.30
|
%
|
|
50.60
|
%
|
|
55.64
|
%
|
|
52.56
|
%
|
|
55.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Assumed a 21% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax,
Pre-provision Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended
|
|
For
the Year Ended
|
(In
thousands)
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
Net income, as
presented
|
|
$
|
18,278
|
|
|
$
|
16,775
|
|
|
$
|
15,238
|
|
|
$
|
59,486
|
|
|
$
|
57,203
|
|
Add: provision for
credit losses
|
|
258
|
|
|
987
|
|
|
214
|
|
|
12,418
|
|
|
2,861
|
|
Add: income tax
expense
|
|
4,564
|
|
|
4,194
|
|
|
3,921
|
|
|
14,910
|
|
|
14,376
|
|
Pre-tax,
pre-provision earnings
|
|
$
|
23,100
|
|
|
$
|
21,956
|
|
|
$
|
19,373
|
|
|
$
|
86,814
|
|
|
$
|
74,440
|
|
Adjusted Yield
on Interest-Earning Assets:
|
|
|
For
the Three Months Ended
|
|
For
the Year Ended
|
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
Yield on
interest-earning assets, as presented
|
|
3.38
|
%
|
|
3.37
|
%
|
|
4.02
|
%
|
|
3.56
|
%
|
|
4.15
|
%
|
Add: effect of excess
liquidity on yield
on interest-earning assets
|
|
0.15
|
%
|
|
0.11
|
%
|
|
0.01
|
%
|
|
0.09
|
%
|
|
0.01
|
%
|
Less: effect of SBA
PPP loans on yield
on interest-earning assets
|
|
(0.19)
|
%
|
|
(0.04)
|
%
|
|
—
|
%
|
|
(0.06)
|
%
|
|
—
|
%
|
Adjusted yield on
interest-earning assets
|
|
3.34
|
%
|
|
3.44
|
%
|
|
4.03
|
%
|
|
3.59
|
%
|
|
4.16
|
%
|
|
Adjusted Net
Interest Margin (Fully-Taxable Equivalent):
|
|
|
For
the Three Months Ended
|
|
For
the Year Ended
|
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
Net interest margin
(fully-taxable
equivalent), as presented
|
|
3.06
|
%
|
|
3.00
|
%
|
|
3.12
|
%
|
|
3.09
|
%
|
|
3.15
|
%
|
Add: effect of excess
liquidity on net
interest margin (fully-taxable
equivalent)
|
|
0.13
|
%
|
|
0.09
|
%
|
|
0.01
|
%
|
|
0.08
|
%
|
|
0.01
|
%
|
Less: effect of SBA
PPP loans on net
interest margin (fully-taxable
equivalent)
|
|
(0.20)
|
%
|
|
(0.06)
|
%
|
|
—
|
%
|
|
(0.07)
|
%
|
|
—
|
%
|
Adjusted net interest
margin (fully-taxable
equivalent)
|
|
2.99
|
%
|
|
3.03
|
%
|
|
3.13
|
%
|
|
3.10
|
%
|
|
3.16
|
%
|
Allowance for
Loan Losses to Total Loans, excluding SBA PPP
Loans:
|
|
|
|
|
|
|
(In
thousands)
|
|
December
31, 2020
|
|
September 30,
2020
|
|
December 31,
2019
|
Allowance for loan
losses, as presented
|
|
$
|
37,865
|
|
|
$
|
36,414
|
|
|
$
|
25,171
|
|
Less: allowance for
loan losses on SBA PPP loans
|
|
(69)
|
|
|
(115)
|
|
|
—
|
|
Adjusted allowance
for loan losses
|
|
$
|
37,796
|
|
|
$
|
36,299
|
|
|
$
|
25,171
|
|
Total loans, as
presented
|
|
$
|
3,219,822
|
|
|
$
|
3,274,842
|
|
|
$
|
3,095,023
|
|
Less: SBA PPP
loans
|
|
(135,095)
|
|
|
(223,838)
|
|
|
—
|
|
Adjusted total
loans
|
|
$
|
3,084,727
|
|
|
$
|
3,051,004
|
|
|
$
|
3,095,023
|
|
Allowance for loan
losses to total loans
|
|
1.18
|
%
|
|
1.11
|
%
|
|
0.81
|
%
|
Allowance for loan
losses to total loans, excluding SBA PPP loans
|
|
1.23
|
%
|
|
1.19
|
%
|
|
0.81
|
%
|
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
(In thousands,
except number of shares and per share data)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
|
529,314
|
|
|
$
|
517,522
|
|
|
$
|
473,415
|
|
Less: goodwill and
core deposit intangible assets
|
|
(97,540)
|
|
|
(97,711)
|
|
|
(98,222)
|
|
Tangible
shareholders' equity
|
|
$
|
431,774
|
|
|
$
|
419,811
|
|
|
$
|
375,193
|
|
Shares outstanding at
period end
|
|
14,909,097
|
|
|
14,917,344
|
|
|
15,144,719
|
|
Book value per
share
|
|
$
|
35.50
|
|
|
$
|
34.69
|
|
|
$
|
31.26
|
|
Tangible book value
per share
|
|
$
|
28.96
|
|
|
$
|
28.14
|
|
|
$
|
24.77
|
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
4,898,745
|
|
|
$
|
5,153,793
|
|
|
$
|
4,429,521
|
|
Less: goodwill and
core deposit intangible assets
|
|
(97,540)
|
|
|
(97,711)
|
|
|
(98,222)
|
|
Tangible
assets
|
|
$
|
4,801,205
|
|
|
$
|
5,056,082
|
|
|
$
|
4,331,299
|
|
Common equity
ratio
|
|
10.81
|
%
|
|
10.04
|
%
|
|
10.69
|
%
|
Tangible common
equity ratio
|
|
8.99
|
%
|
|
8.30
|
%
|
|
8.66
|
%
|
|
Core
Deposits:
|
(In
thousands)
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
Total
deposits
|
|
$
|
4,005,244
|
|
|
$
|
4,224,044
|
|
|
$
|
3,537,743
|
|
Less: certificates of
deposit
|
|
(357,666)
|
|
|
(405,434)
|
|
|
(521,752)
|
|
Less: brokered
deposits
|
|
(283,567)
|
|
|
(291,616)
|
|
|
(191,005)
|
|
Core
deposits
|
|
$
|
3,364,011
|
|
|
$
|
3,526,994
|
|
|
$
|
2,824,986
|
|
Average Core
Deposits:
|
|
|
For the
Three Months Ended
|
|
For the
Year Ended
|
(In
thousands)
|
|
December
31, 2020
|
|
September
30, 2020
|
|
December
31, 2019
|
|
December
31, 2020
|
|
December
31, 2019
|
Total average
deposits
|
|
$
|
3,836,470
|
|
|
$
|
3,794,434
|
|
|
$
|
3,371,654
|
|
|
$
|
3,666,444
|
|
|
$
|
3,233,560
|
|
Less: average
certificates of deposit
|
|
(373,364)
|
|
|
(417,788)
|
|
|
(533,416)
|
|
|
(454,750)
|
|
|
(506,971)
|
|
Average core
deposits
|
|
$
|
3,463,106
|
|
|
$
|
3,376,646
|
|
|
$
|
2,838,238
|
|
|
$
|
3,211,694
|
|
|
$
|
2,726,589
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/camden-national-corporation-reports-fourth-quarter-and-year-end-2020-financial-results-301214897.html
SOURCE Camden National Corporation