CAMDEN, Maine, Oct. 26, 2021 /PRNewswire/ -- Camden National
Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a
$5.5 billion bank holding company
headquartered in Camden, Maine,
reported net income of $52.5 million
and diluted earnings per share ("EPS") of $3.49 for the nine months ended September 30, 2021, an increase of 27% and 28%,
respectively, compared to the same period in 2020. The Company's
solid year-to-date earnings translated into a return on average
equity of 12.96% and return on average tangible equity (non-GAAP)
of 15.91% for the same period.
"We have much to be proud of here at Camden National," said
Gregory A. Dufour, President and
Chief Executive Officer. "We were recently named as one of the best
places to work in Maine for 2021
by an independent group and we just received our latest internal
engagement scores showing positive growth and momentum. The
commitment and dedication of our team here at Camden National
resonates loud and clear, and it translated directly into
shareholder value through record earnings for the first nine months
of the year with net income of $52.5
million and diluted earnings per share of $3.49."
Dufour added, "In response to the historically challenging job
market we find ourselves facing, in late-September, we communicated
to our employees that effective early-October their wages were
increasing at a minimum of 3%, and our starting minimum wage was
increasing from $15 to $17 per hour. These adjustments were made to
attract new talent, and retain and recognize the value our current
employees continuously provide."
Net income for the third quarter of 2021 was $14.6 million and diluted earnings per share
("EPS") was $0.97, a decrease of 13%,
respectively, compared to the third quarter of 2020. The decrease
was driven by a shift in the Company's strategy to hold more of its
residential mortgage production within its loan portfolio.
Net income and diluted EPS for the third quarter of 2021
decreased 19% and 20%, respectively, compared to the second quarter
of 2021. The decrease was driven by growth within our loan
portfolio and pipeline that resulted in provision expense for the
third quarter of 2021 of $939,000,
compared to a provision release of $3.4
million last quarter. On a pre-tax, pre-provision-basis
(non-GAAP), third quarter 2021 earnings increased 2% over last
quarter.
In September, the Company announced a cash dividend of
$0.36 per share, payable on
October 29, 2021, to shareholders of
record on October 15, 2021,
representing an annualized dividend yield of 3.01%, based on the
Company's closing share price of $47.90, as reported by NASDAQ as of September 30, 2021.
THIRD QUARTER 2021 HIGHLIGHTS
- Net income decreased by $2.1
million, or 13%, compared to the third quarter of 2020 and
decreased $3.5 million, or 19%,
compared to the second quarter of 2021.
- Pre-tax, pre-provision earnings (non-GAAP) decreased
$2.4 million, or 11%, compared to
third quarter of 2020, and increased $323,000, or 2%, over the second quarter of
2021.
- Net interest margin on a fully-taxable equivalent basis ("net
interest margin") for the third quarter of 2021 was 2.76%, compared
to 3.00% for the third quarter of 2020 and 2.83% for the second
quarter of 2021.
- Adjusted net interest margin (non-GAAP), which excludes Small
Business Administration Paycheck Protection Program ("SBA PPP")
average loans and related income, and average excess liquidity and
related income, for the third quarter of 2021 was 2.82%, compared
to 3.04% for the third quarter of 2020 and 2.89% for the second
quarter of 2021.
- Loans grew 3% during the nine months ended September 30, 2021, and excluding SBA PPP loans
(non-GAAP), grew 5% during the same period.
- Non-performing assets were 0.14% of total assets and loans
30-89 days past due were 0.06% of total loans at September 30, 2021, compared to 0.22% and 0.10%
at December 31, 2020,
respectively.
- Repurchased 106,502 shares of the Company's common stock during
the third quarter of 2021.
FINANCIAL CONDITION
As of September 30,
2021, total assets were $5.5
billion, an increase of $604.2
million, or 12%, since December 31,
2020. Asset growth for the nine months ended September 30, 2021 was driven by: (1) an increase
in investment balances of $338.3
million, or 30%, (2) an increase in cash balances of
$233.9 million, or 160%, and (3) an
increase in loan balances of $95.5
million, or 3%.
- Through the nine months ended September
30, 2021, the Company purchased $618.7 million of debt securities, which continue
to be primarily mortgage-backed securities and collateralized
mortgage obligations. As of September 30,
2021, the weighted-average life of the Company's debt
securities portfolio was 6.0 years compared to 5.1 years as of
December 31, 2020. At September 30, 2021, the investment portfolio was
27% of total assets, compared to 23% as of December 31, 2020.
- The increase in cash balances was driven by strong deposit
growth of 15% since December 31,
2020. The Company has and continues to take certain actions
to manage its liquidity position, including paying-off borrowings,
managing depositor relationships, increasing investments and
growing loans.
- Loan balances grew 3% during the nine months ended September 30, 2021, and excluding SBA PPP loans
(non-GAAP), grew $148.6 million, or
5% over the same period. During the nine months ended September 30, 2021, residential loans grew
$167.3 million, or 16%, and
commercial real estate loans grew $50.2
million, or 4%. Loan growth within these two loan portfolios
was partially offset by a decrease across the other product lines,
including a decrease in SBA PPP loans of $53.1 million, consumer and home equity loans of
$39.9 million, and commercial loans
of $29.0 million during the same
period.
In response to the Company's interest rate risk and liquidity
positions, in recent quarters the Company began holding more of its
residential mortgage production within its loan portfolio. For the
nine months ended September 30, 2021,
the Company held 53%, or $441.2
million, of its residential mortgage production within its
loan portfolio, which includes holding 67% of its originations for
the third quarter of 2021. As of September
30, 2021, 69% of the Company's residential mortgage pipeline
was designated to be held in its portfolio.
As of September 30, 2021, the
Company's loan pipelines were robust and included $222.0 million of residential and home equity
loans, and $147.1 million of
commercial and commercial real estate loans, of which $55.8 million were construction loans and credit
lines. Loan prepayments continue to run at elevated levels,
particularly within the commercial loan portfolios primarily due to
customers having excess liquidity and business sales. Based on
current conditions, the Company expects continued pressure from
prepayment activity.
As of September 30, 2021, total
deposits were $4.6 billion, an
increase of $599.9 million, or 15%,
since December 31, 2020. Deposit
growth for the nine months ended September
30, 2021 was primarily due to core deposit (non-GAAP) growth
of $628.8 million, or 19%, which was
driven by additional government stimulus programs in response to
the COVID-19 pandemic during the first quarter of 2021 and seasonal
inflows throughout the summer months. The Company's loan-to-deposit
ratio was 72% at September 30, 2021,
compared to 80% at December 31,
2020.
As of September 30, 2021, total
borrowings were $255.9 million, an
increase of $9.1 million, or 4%,
since December 31, 2020. Repurchase
agreements increased $49.1 million
over this period, offsetting other actions taken by the Company in
light of its capital and liquidity position, including early
termination of a $25.0 million
long-term borrowing contract during the first quarter of 2021, and
full redemption of its $15.0 million
of subordinated notes during the second quarter of 2021.
As of September 30, 2021, the
Company's capital position remained well in excess of regulatory
requirements, including a total risk-based capital ratio of 15.06%
and a tier 1 leverage ratio of 9.13%. The Company's shareholders'
equity to total assets position and tangible common equity ratio
(non-GAAP) was 9.92% and 8.30% at September
30, 2021, respectively, compared to 10.81% and 8.99% at
December 31, 2020.
In the first quarter of 2021, the Company initiated a new share
repurchase program for up to 750,000 shares of its common stock, or
approximately 5% of the Company's shares outstanding. This share
repurchase program replaces the program that terminated in
January 2021. For the three and nine
months ended September 30, 2021, the
Company repurchased 106,502 shares for $4.9
million.
ASSET QUALITY
As of September 30, 2021, the
Company's asset quality metrics remained very strong with
non-performing assets of 0.14% of total assets and loans 30-89 days
past due of 0.06% of total loans. In comparison, at December 31, 2020, non-performing assets were
0.22% of total assets, and loans 30-89 days past due were 0.10% of
total loans.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
In the fourth quarter of 2020, the Company adopted the current
expected credit loss methodology, commonly referred to as "CECL,"
to account for the ACL on loans and certain off-balance credit
exposures, effective as of January 1,
2020. Interim periods prior to the fourth quarter of 2020
continue to be presented under the incurred loss methodology.
At September 30, 2021, the ACL on
loans was $32.3 million, or 0.97% of
total loans, compared to $37.9
million, or 1.18% of total loans, at December 31, 2020. The decrease in the allowance
reflects the Company's strong asset quality and overall improvement
in the current and forecasted market conditions over its forecast
period. There have been no significant changes in the Company's
CECL methodology since year-end.
FINANCIAL OPERATING RESULTS (Q3 2021 vs. Q3 2020)
Net income for the third quarter of 2021 was $14.6 million, a decrease of $2.1 million, or 13%, compared to the third
quarter of 2020. Diluted EPS for the third quarter of 2021 was
$0.97, a decrease of $0.14, or 13%, compared to the same period last
year.
Net Interest Income and Net Interest Margin. Net
interest income for the third quarter of 2021 was $34.7 million, an increase of $265,000, or 1%, over the third quarter of 2020.
Interest income decreased $1.3
million, or 3%, between periods, but was offset by a
decrease in interest expense of $1.6
million, or 37%.
- The decrease in interest income between periods was driven by a
40 basis point decrease in the Company's interest-earning asset
yield to 2.97% for the third quarter of 2021. The pressure on asset
yields was driven by higher cash balances, and the current interest
rate environment as assets reprice, customers refinance and new
assets are originated at lower yields. Additionally, SBA PPP income
earned for the third quarter of 2021 of $2.0
million, was $407,000 lower
than that earned for the same period last year.
- The decrease in interest expense between periods was driven by
a lower cost of funds of 16 basis points falling to 0.22% for the
third quarter of 2021. The decrease in cost of funds between
periods reflects certain actions taken to manage deposit and
borrowing costs lower.
Net interest margin for the third quarter of 2021 was 2.76%, a
decrease of 24 basis points compared to the third quarter of 2020.
Adjusted net interest margin, which excludes SBA PPP loans and
excess liquidity (non-GAAP), for the third quarter of 2021 was
2.82%, decreased 22 basis points compared to the third quarter of
2020.
Provision for Credit Losses. The provision for
credit losses for the third quarter of 2021 was reported using the
CECL methodology, whereas the provision for credit losses for the
third quarter of 2020 was reported using the incurred loss
methodology.
The change in provision for credit losses between periods is
highlighted in the table below:
($ in
thousands)
|
|
CECL
Q3
2021
|
|
Incurred
Q3
2020
|
|
Increase
/
(Decrease)
|
Provision for credit
losses - loans
|
|
$
|
269
|
|
|
$
|
1,000
|
|
|
$
|
(731)
|
|
Provision (credit)
for credit losses - off-
balance sheet credit exposures
|
|
670
|
|
|
(13)
|
|
|
683
|
|
Provision for credit
losses
|
|
$
|
939
|
|
|
$
|
987
|
|
|
$
|
(48)
|
|
For the third quarter of 2021, the Company recorded $269,000 in provision for credit losses on loans.
The provision expense for the quarter accounts for the increase in
loan balances, excluding SBA PPP loans (non-GAAP), the Company's
strong asset quality and minimal net charge-offs for the quarter of
$57,000 and improved economic
conditions. In comparison, at this time last year, the Company was
still operating in very volatile and uncertain market conditions,
and although its asset quality remained strong and net charge-offs
were not elevated, $1.0 million of
provision expense related to loan balances was recognized to
reflect current market conditions at that time.
The provision (credit) for credit losses on off-balance sheet
credit exposures accounts reflects the change between periods on
the Company's future expected credit losses on funding commitments,
which includes the unfunded portion of its construction loans,
credit lines, and committed loan pipeline. As of September 30, 2021, the allowance for credit
losses on its off-balance sheet credit exposures was $3.2 million, compared to $2.5 million as of June
30, 2021 and $9,000 as of
September 30, 2020.
Non-Interest Income. Non-interest income for the
third quarter of 2021 was $11.1
million, a decrease of $1.6
million, or 13%, compared to the third quarter of 2020. The
decrease was driven by lower mortgage banking income of
$2.8 million. In early-2021, the
Company shifted its strategy to hold more residential mortgage
loans within its loan portfolio, and, as a result, the Company sold
33% of its residential mortgage production during the third quarter
of 2021, compared to 69% for the third quarter of 2020. The
decrease in mortgage banking income was partially offset by an
increase in debit card income of $651,000, an increase in both fiduciary income
and brokerage income totaling $361,000, and an increase in service charges fees
of $138,000.
Non-Interest Expense. Non-interest expense for the
third quarter of 2021 was $26.3
million, an increase of $1.0
million, or 4%, compared to the third quarter of 2020.
Compensation and related costs for the third quarter of 2021
increased $2.2 million, or 16%, over
the third quarter of 2020 and was driven by: (1) higher
performance-based incentive accruals of $1.2
million due to the Company's year-to-date financial
performance, and (2) higher wages of $545,000, or 6%. The increase in compensation and
related costs was partially offset by a decrease in other expenses
between periods of $1.1 million as
the Company accrued in the third quarter of 2020 $1.2 million for a legal matter.
Effective October 3, 2021, the
Company provided a minimum 3% wage increase to all of its employees
and increased its starting minimum wage $2 per hour to $17
per hour. The off-cycle wage adjustment was in response to the
challenging job market and need to retain and attract talent. This
off-cycle wage adjustment is not in replacement of the Company's
normal merit cycle in March each year. Beginning in 2022, the
Company will suspend its profit sharing contribution to employees'
401(k) accounts to partially fund the impact of the off-cycle wage
adjustment.
FINANCIAL OPERATING RESULTS (Q3 2021 vs. Q2 2021)
Net income for the third quarter of 2021 decreased $3.5 million, or 19%, compared to the second
quarter of 2021. On a linked-quarter-basis, diluted EPS decreased
$0.24, or 20%.
Net Interest Income and Net Interest Margin. Net
interest income for the third quarter of 2021 increased
$1.2 million, or 4%, compared to the
second quarter of 2021. On a linked-quarter basis, interest income
increased $1.1 million, or 3%, and
interest expense decreased $104,000,
or 4%.
- The increase in interest income between periods was driven by:
(1) an increase in average investment balances of $154.4 million, or 12%, and an increase in
average loan balances of $30.1
million, or 1%, and (2) an increase in SBA PPP income of
$291,000 due to elevated payoffs,
offsetting continued yield pressures on the Company's core loan
segments, including residential real estate, commercial real estate
and commercial loans.
- The decrease in interest expense between periods was driven by
a decrease in cost of funds of 2 basis points to 0.22% led by lower
interest rates on certificates of deposit, repurchase agreements
and subordinated debentures, as the Company called its subordinated
notes in the second quarter of 2021.
Net interest margin for the third quarter of 2021 decreased 7
basis points compared to the second quarter of 2021. Adjusted net
interest margin, which excludes SBA PPP loans and excess liquidity
(non-GAAP), for the third quarter of 2021 was 2.82%, a decrease of
7 basis points compared to the second quarter of 2021.
Provision for Credit Losses. The change in
provision for credit losses between periods is highlighted in the
table below:
($ in
thousands)
|
|
CECL
Q3
2021
|
|
CECL
Q2
2021
|
|
Increase
/
(Decrease)
|
Provision (credit)
for credit losses - loans
|
|
$
|
269
|
|
|
$
|
(3,452)
|
|
|
$
|
3,721
|
|
Provision for credit
losses - off-balance
sheet credit exposures
|
|
670
|
|
|
49
|
|
|
621
|
|
Provision (credit) for
credit losses
|
|
$
|
939
|
|
|
$
|
(3,403)
|
|
|
$
|
4,342
|
|
For the third quarter of 2021, the Company recorded $269,000 of provision for credit losses on loans
primarily due to loan growth, excluding SBA PPP loans (non-GAAP),
of $73.5 million, whereas the
previous quarter it recorded a credit for provision expense of
$3.5 million related to its loan
balances because of improving current and forecasted market
conditions.
On a linked-quarter-basis, the increase in the provision for
credit losses on off-balance sheet credit exposures was driven by
strong growth within its unfunded loan commitments and loan
pipeline of $96.5 million led by the
commercial and commercial real estate loan pipelines.
Non-Interest Income. Non-interest income for the
third quarter of 2021 decreased $221,000, or 2%, compared to the second quarter
of 2021. The decrease between periods was driven by lower mortgage
banking income of $685,000 as the
Company sold 33% of its residential mortgage loan production during
the third quarter of 2021, compared to 40% during the second
quarter of 2021. The change in percentage sold reflects the
Company's shift in strategy as it looks to hold more residential
mortgages within its loan portfolio. The decrease in mortgage
banking income was partially offset by: (1) an increase service
charge income of $227,000 due to the
redesign of its consumer checking products in the second quarter of
2021, and (2) debit card income of $166,000.
Non-Interest Expense. Non-interest expense for the
third quarter of 2021 increased $673,000, or 3%, compared to the second quarter
of 2021. The increase was driven by an increase in
compensation-related expenses of $584,000, or 4%, which was driven by an increase
in incentive-based accruals of $366,000 based on year-to-date financial
performance.
Q3 2021 CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m., Eastern Time, on
Tuesday, October 26, 2021 to discuss
its third quarter 2021 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):
|
(844)
200-6205
|
Live dial-in
(international):
|
(929)
526-1599
|
Participant access
code:
|
175893
|
Live
webcast:
|
https://services.choruscall.com/links/cac211026.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
$5.5 billion in assets and
approximately 600 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 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, and the bank was included in the 2021 list of Best
Places to Work in Maine.
Comprehensive wealth management, investment and financial planning
services are delivered by Camden National Wealth Management. To
learn more, visit CamdenNational.com. Member FDIC.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not
statements of historical fact constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended, including certain plans, expectations, goals,
projections and other statements, which are subject to numerous
risks, assumptions and uncertainties. Forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts. They often include words like
"believe," "expect," "anticipate," "estimate," and "intend" or
future or conditional verbs such as "will," "would," "should,"
"could" or "may." Certain factors that could cause actual results
to differ materially from expected results include increased
competitive pressures; changes in the interest rate environment;
changes in general economic conditions; operational risks
including, but not limited to, cybersecurity, fraud and natural
disasters; legislative and regulatory changes that adversely affect
the business in which Camden National is engaged; changes in the
securities markets and other risks and uncertainties disclosed from
time to time in Camden National's Annual Report on Form 10-K for
the year ended December 31, 2020, as
updated by other filings with the Securities and Exchange
Commission ("SEC"). Further, statements about the potential effects
of the COVID-19 pandemic on our business, results of operations and
financial condition may constitute forward-looking statements and
are subject to the risk that the actual effects may differ,
possibly materially, from what is reflected in those
forward-looking statements due to factors and future developments
that are uncertain, unpredictable and in many cases beyond our
control, including the scope and duration of the pandemic, action
taken by government authorities in response to the pandemic, and
the direct and indirect impact of the pandemic on our customers,
service providers and on economies and markets more generally.
Camden National does not have any obligation to update
forward-looking statements.
USE OF NON-GAAP MEASURES
In addition to evaluating the Company's results of operations in
accordance with generally accepted accounting principles in
the United States ("GAAP"),
management supplements this evaluation with certain non-GAAP
financial measures, such as pre-tax, pre-provision earnings; return
on average tangible equity; the efficiency and tangible common
equity ratios; tangible book value per share; core deposits and
average core deposits; adjusted yield on interest-earning assets
and adjusted net interest margin (fully-taxable equivalent); and
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,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,471,118
|
|
|
1,415,695
|
|
|
$
|
1,125,360
|
|
|
$
|
1,471,118
|
|
|
$
|
1,125,360
|
|
Loans and loans held
for sale
|
|
3,326,129
|
|
|
3,301,056
|
|
|
3,312,777
|
|
|
3,326,129
|
|
|
3,312,777
|
|
Allowance for credit
losses on loans
|
|
32,272
|
|
|
32,060
|
|
|
36,414
|
|
|
32,272
|
|
|
36,414
|
|
Total
assets
|
|
5,502,902
|
|
|
5,152,069
|
|
|
5,153,793
|
|
|
5,502,902
|
|
|
5,153,793
|
|
Deposits
|
|
4,605,180
|
|
|
4,294,114
|
|
|
4,224,044
|
|
|
4,605,180
|
|
|
4,224,044
|
|
Borrowings
|
|
255,883
|
|
|
214,744
|
|
|
294,361
|
|
|
255,883
|
|
|
294,361
|
|
Shareholders'
equity
|
|
545,984
|
|
|
545,548
|
|
|
517,522
|
|
|
545,984
|
|
|
517,522
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
34,746
|
|
|
$
|
33,529
|
|
|
$
|
34,481
|
|
|
$
|
100,639
|
|
|
$
|
100,846
|
|
Provision (credit)
for credit losses
|
|
939
|
|
|
(3,403)
|
|
|
987
|
|
|
(4,420)
|
|
|
12,160
|
|
Non-interest
income
|
|
11,099
|
|
|
11,320
|
|
|
12,696
|
|
|
37,634
|
|
|
36,159
|
|
Non-interest
expense
|
|
26,263
|
|
|
25,590
|
|
|
25,221
|
|
|
76,752
|
|
|
73,291
|
|
Income before income
tax expense
|
|
18,643
|
|
|
22,662
|
|
|
20,969
|
|
|
65,941
|
|
|
51,554
|
|
Income tax
expense
|
|
4,003
|
|
|
4,519
|
|
|
4,194
|
|
|
13,418
|
|
|
10,346
|
|
Net income
|
|
$
|
14,640
|
|
|
$
|
18,143
|
|
|
$
|
16,775
|
|
|
$
|
52,523
|
|
|
$
|
41,208
|
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.08
|
%
|
|
1.42
|
%
|
|
1.34
|
%
|
|
1.36
|
%
|
|
1.15
|
%
|
Return on average
equity
|
|
10.51
|
%
|
|
13.50
|
%
|
|
13.01
|
%
|
|
12.96
|
%
|
|
11.06
|
%
|
GAAP efficiency
ratio
|
|
57.29
|
%
|
|
57.06
|
%
|
|
53.46
|
%
|
|
55.51
|
%
|
|
53.50
|
%
|
Net interest margin
(fully-taxable equivalent)
|
|
2.76
|
%
|
|
2.83
|
%
|
|
3.00
|
%
|
|
2.82
|
%
|
|
3.06
|
%
|
Non-performing assets
to total assets
|
|
0.14
|
%
|
|
0.17
|
%
|
|
0.22
|
%
|
|
0.14
|
%
|
|
0.22
|
%
|
Common equity
ratio
|
|
9.92
|
%
|
|
10.59
|
%
|
|
10.04
|
%
|
|
9.92
|
%
|
|
10.04
|
%
|
Tier 1 leverage
capital ratio
|
|
9.13
|
%
|
|
9.48
|
%
|
|
8.96
|
%
|
|
9.13
|
%
|
|
8.96
|
%
|
Total risk-based
capital ratio
|
|
15.06
|
%
|
|
15.26
|
%
|
|
15.15
|
%
|
|
15.06
|
%
|
|
15.15
|
%
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.98
|
|
|
$
|
1.21
|
|
|
$
|
1.12
|
|
|
$
|
3.51
|
|
|
$
|
2.74
|
|
Diluted earnings per
share
|
|
$
|
0.97
|
|
|
$
|
1.21
|
|
|
$
|
1.11
|
|
|
$
|
3.49
|
|
|
$
|
2.73
|
|
Cash dividends
declared per share
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
0.33
|
|
|
$
|
1.08
|
|
|
$
|
0.99
|
|
Book value per
share
|
|
$
|
36.77
|
|
|
$
|
36.49
|
|
|
$
|
34.69
|
|
|
$
|
36.77
|
|
|
$
|
34.69
|
|
Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
|
12.86
|
%
|
|
16.60
|
%
|
|
16.21
|
%
|
|
15.91
|
%
|
|
13.91
|
%
|
Efficiency
ratio
|
|
57.00
|
%
|
|
56.72
|
%
|
|
50.60
|
%
|
|
54.83
|
%
|
|
52.29
|
%
|
Adjusted net interest
margin (fully-taxable equivalent)
|
|
2.82
|
%
|
|
2.89
|
%
|
|
3.04
|
%
|
|
2.87
|
%
|
|
3.10
|
%
|
Pre-tax,
pre-provision earnings
|
|
$
|
19,582
|
|
|
$
|
19,259
|
|
|
$
|
21,956
|
|
|
$
|
61,521
|
|
|
$
|
63,714
|
|
Tangible common
equity ratio
|
|
8.30
|
%
|
|
8.87
|
%
|
|
8.30
|
%
|
|
8.30
|
%
|
|
8.30
|
%
|
Tangible book value
per share
|
|
$
|
30.23
|
|
|
$
|
29.99
|
|
|
$
|
28.14
|
|
|
$
|
30.23
|
|
|
$
|
28.14
|
|
|
|
(1)
|
Please see
"Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
(In thousands)
|
|
September
30,
2021
|
|
December
31,
2020
|
|
September
30,
2020
|
ASSETS
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
379,656
|
|
|
$
|
145,774
|
|
|
$
|
346,389
|
|
Investments:
|
|
|
|
|
|
|
Trading
securities
|
|
4,335
|
|
|
4,161
|
|
|
3,648
|
|
Available-for-sale
securities, at fair value (book value of $1,443,800, $1,078,474
and
$1,070,479, respectively)
|
|
1,455,210
|
|
|
1,115,813
|
|
|
1,107,069
|
|
Held-to-maturity
securities, at amortized cost (fair value of $1,390, $1,411 and
$1,403,
respectively)
|
|
1,293
|
|
|
1,297
|
|
|
1,298
|
|
Other
investments
|
|
10,280
|
|
|
11,541
|
|
|
13,345
|
|
Total
investments
|
|
1,471,118
|
|
|
1,132,812
|
|
|
1,125,360
|
|
Loans held for sale,
at fair value (book value of $10,789, $40,499 and $37,301,
respectively)
|
|
10,826
|
|
|
41,557
|
|
|
37,935
|
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,419,677
|
|
|
1,369,470
|
|
|
1,333,733
|
|
Commercial(1)
|
|
352,533
|
|
|
381,494
|
|
|
375,548
|
|
SBA PPP
|
|
81,959
|
|
|
135,095
|
|
|
223,838
|
|
Residential real
estate
|
|
1,222,084
|
|
|
1,054,798
|
|
|
1,044,103
|
|
Consumer and home
equity
|
|
239,050
|
|
|
278,965
|
|
|
297,620
|
|
Total loans
|
|
3,315,303
|
|
|
3,219,822
|
|
|
3,274,842
|
|
Less: allowance for
credit losses on loans
|
|
(32,272)
|
|
|
(37,865)
|
|
|
(36,414)
|
|
Net
loans
|
|
3,283,031
|
|
|
3,181,957
|
|
|
3,238,428
|
|
Goodwill and core
deposit intangible assets
|
|
97,049
|
|
|
97,540
|
|
|
97,711
|
|
Other
assets
|
|
261,222
|
|
|
299,105
|
|
|
307,970
|
|
Total
assets
|
|
$
|
5,502,902
|
|
|
$
|
4,898,745
|
|
|
$
|
5,153,793
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
1,289,018
|
|
|
$
|
792,550
|
|
|
$
|
800,582
|
|
Interest
checking
|
|
1,266,242
|
|
|
1,288,575
|
|
|
1,419,544
|
|
Savings and money
market
|
|
1,437,550
|
|
|
1,282,886
|
|
|
1,306,868
|
|
Certificates of
deposit
|
|
323,395
|
|
|
357,666
|
|
|
405,434
|
|
Brokered
deposits
|
|
288,975
|
|
|
283,567
|
|
|
291,616
|
|
Total
deposits
|
|
4,605,180
|
|
|
4,005,244
|
|
|
4,224,044
|
|
Short-term
borrowings
|
|
211,552
|
|
|
162,439
|
|
|
210,055
|
|
Long-term
borrowings
|
|
—
|
|
|
25,000
|
|
|
25,000
|
|
Subordinated
debentures
|
|
44,331
|
|
|
59,331
|
|
|
59,306
|
|
Accrued interest and
other liabilities
|
|
95,855
|
|
|
117,417
|
|
|
117,866
|
|
Total
liabilities
|
|
4,956,918
|
|
|
4,369,431
|
|
|
4,636,271
|
|
Shareholders'
equity
|
|
545,984
|
|
|
529,314
|
|
|
517,522
|
|
Total liabilities
and shareholders' equity
|
|
$
|
5,502,902
|
|
|
$
|
4,898,745
|
|
|
$
|
5,153,793
|
|
|
|
(1)
|
Includes the
Healthcare Professional Funding Corporation ("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,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
31,185
|
|
|
$
|
30,865
|
|
|
$
|
33,025
|
|
|
$
|
92,610
|
|
|
$
|
100,190
|
|
Taxable interest on
investments
|
|
5,157
|
|
|
4,376
|
|
|
4,480
|
|
|
13,362
|
|
|
14,241
|
|
Nontaxable interest
on investments
|
|
756
|
|
|
763
|
|
|
823
|
|
|
2,247
|
|
|
2,438
|
|
Dividend
income
|
|
99
|
|
|
102
|
|
|
163
|
|
|
306
|
|
|
498
|
|
Other interest
income
|
|
182
|
|
|
160
|
|
|
176
|
|
|
508
|
|
|
691
|
|
Total interest
income
|
|
37,379
|
|
|
36,266
|
|
|
38,667
|
|
|
109,033
|
|
|
118,058
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,973
|
|
|
1,921
|
|
|
2,899
|
|
|
5,957
|
|
|
12,953
|
|
Interest on
borrowings
|
|
122
|
|
|
176
|
|
|
394
|
|
|
454
|
|
|
1,591
|
|
Interest on
subordinated debentures
|
|
538
|
|
|
640
|
|
|
893
|
|
|
1,983
|
|
|
2,668
|
|
Total interest
expense
|
|
2,633
|
|
|
2,737
|
|
|
4,186
|
|
|
8,394
|
|
|
17,212
|
|
Net interest
income
|
|
34,746
|
|
|
33,529
|
|
|
34,481
|
|
|
100,639
|
|
|
100,846
|
|
Provision (credit)
for credit losses(1)
|
|
939
|
|
|
(3,403)
|
|
|
987
|
|
|
(4,420)
|
|
|
12,160
|
|
Net interest income
after provision (credit) for credit
losses
|
|
33,807
|
|
|
36,932
|
|
|
33,494
|
|
|
105,059
|
|
|
88,686
|
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income, net
|
|
1,913
|
|
|
2,598
|
|
|
4,664
|
|
|
11,620
|
|
|
12,889
|
|
Debit card
income
|
|
3,278
|
|
|
3,112
|
|
|
2,627
|
|
|
9,126
|
|
|
7,159
|
|
Income from fiduciary
services
|
|
1,627
|
|
|
1,707
|
|
|
1,504
|
|
|
4,860
|
|
|
4,609
|
|
Service charges on
deposit accounts
|
|
1,744
|
|
|
1,517
|
|
|
1,606
|
|
|
4,800
|
|
|
4,955
|
|
Brokerage and
insurance commissions
|
|
993
|
|
|
939
|
|
|
755
|
|
|
2,885
|
|
|
2,034
|
|
Bank-owned life
insurance
|
|
589
|
|
|
591
|
|
|
615
|
|
|
1,774
|
|
|
1,918
|
|
Customer loan swap
fees
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
222
|
|
Other
income
|
|
955
|
|
|
856
|
|
|
874
|
|
|
2,569
|
|
|
2,373
|
|
Total non-interest
income
|
|
11,099
|
|
|
11,320
|
|
|
12,696
|
|
|
37,634
|
|
|
36,159
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
15,902
|
|
|
15,318
|
|
|
13,739
|
|
|
45,742
|
|
|
41,693
|
|
Furniture, equipment
and data processing
|
|
2,980
|
|
|
2,947
|
|
|
3,076
|
|
|
8,954
|
|
|
8,576
|
|
Net occupancy
costs
|
|
1,813
|
|
|
1,805
|
|
|
1,785
|
|
|
5,569
|
|
|
5,785
|
|
Debit card
expense
|
|
1,106
|
|
|
1,074
|
|
|
972
|
|
|
3,166
|
|
|
2,784
|
|
Consulting and
professional fees
|
|
792
|
|
|
997
|
|
|
913
|
|
|
2,652
|
|
|
2,877
|
|
Regulatory
assessments
|
|
522
|
|
|
487
|
|
|
510
|
|
|
1,512
|
|
|
971
|
|
Amortization of core
deposit intangible assets
|
|
163
|
|
|
164
|
|
|
170
|
|
|
491
|
|
|
511
|
|
Other real estate
owned and collection costs (recoveries), net
|
|
60
|
|
|
(25)
|
|
|
71
|
|
|
(156)
|
|
|
270
|
|
Other
expenses
|
|
2,925
|
|
|
2,823
|
|
|
3,985
|
|
|
8,822
|
|
|
9,824
|
|
Total non-interest
expense
|
|
26,263
|
|
|
25,590
|
|
|
25,221
|
|
|
76,752
|
|
|
73,291
|
|
Income before
income tax expense
|
|
18,643
|
|
|
22,662
|
|
|
20,969
|
|
|
65,941
|
|
|
51,554
|
|
Income Tax
Expense
|
|
4,003
|
|
|
4,519
|
|
|
4,194
|
|
|
13,418
|
|
|
10,346
|
|
Net
Income
|
|
$
|
14,640
|
|
|
$
|
18,143
|
|
|
$
|
16,775
|
|
|
$
|
52,523
|
|
|
$
|
41,208
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.98
|
|
|
$
|
1.21
|
|
|
$
|
1.12
|
|
|
$
|
3.51
|
|
|
$
|
2.74
|
|
Diluted earnings per
share
|
|
$
|
0.97
|
|
|
$
|
1.21
|
|
|
$
|
1.11
|
|
|
$
|
3.49
|
|
|
$
|
2.73
|
|
|
|
(1)
|
Reported balances for
the three months ended September 30 and June 30, 2021, and the nine
months ended September 30, 2021, have been
accounted for under the CECL model. Reported balances for the three
and nine months ended September 30, 2020 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
|
(Dollars in
thousands)
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks
and other interest-earning assets
|
|
$
|
304,594
|
|
|
$
|
235,676
|
|
|
$
|
216,027
|
|
|
0.12
|
%
|
|
0.09
|
%
|
|
0.09
|
%
|
Investments -
taxable
|
|
1,284,851
|
|
|
1,129,682
|
|
|
906,374
|
|
|
1.66
|
%
|
|
1.62
|
%
|
|
2.11
|
%
|
Investments -
nontaxable(1)
|
|
114,033
|
|
|
114,811
|
|
|
122,204
|
|
|
3.36
|
%
|
|
3.36
|
%
|
|
3.41
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,410,201
|
|
|
1,407,374
|
|
|
1,315,958
|
|
|
3.59
|
%
|
|
3.60
|
%
|
|
3.74
|
%
|
Commercial(1)
|
|
339,638
|
|
|
319,100
|
|
|
372,416
|
|
|
3.49
|
%
|
|
3.78
|
%
|
|
3.73
|
%
|
SBA PPP
|
|
105,742
|
|
|
158,258
|
|
|
221,672
|
|
|
7.22
|
%
|
|
4.15
|
%
|
|
4.16
|
%
|
Municipal(1)
|
|
17,021
|
|
|
26,137
|
|
|
19,072
|
|
|
3.41
|
%
|
|
3.26
|
%
|
|
3.52
|
%
|
HPFC
|
|
8,981
|
|
|
10,775
|
|
|
16,104
|
|
|
7.45
|
%
|
|
9.89
|
%
|
|
8.09
|
%
|
Residential real
estate
|
|
1,174,559
|
|
|
1,093,502
|
|
|
1,083,052
|
|
|
3.53
|
%
|
|
3.77
|
%
|
|
4.00
|
%
|
Consumer and home
equity
|
|
242,921
|
|
|
253,825
|
|
|
305,194
|
|
|
4.27
|
%
|
|
4.17
|
%
|
|
4.31
|
%
|
Total loans
|
|
3,299,063
|
|
|
3,268,971
|
|
|
3,333,468
|
|
|
3.73
|
%
|
|
3.76
|
%
|
|
3.92
|
%
|
Total
interest-earning assets
|
|
5,002,541
|
|
|
4,749,140
|
|
|
4,578,073
|
|
|
2.97
|
%
|
|
3.06
|
%
|
|
3.37
|
%
|
Other
assets
|
|
384,766
|
|
|
381,677
|
|
|
417,956
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
5,387,307
|
|
|
$
|
5,130,817
|
|
|
$
|
4,996,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
1,251,492
|
|
|
$
|
970,446
|
|
|
$
|
741,757
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,246,634
|
|
|
1,311,400
|
|
|
1,339,389
|
|
|
0.20
|
%
|
|
0.18
|
%
|
|
0.26
|
%
|
Savings
|
|
688,331
|
|
|
659,892
|
|
|
557,718
|
|
|
0.04
|
%
|
|
0.04
|
%
|
|
0.06
|
%
|
Money
market
|
|
709,705
|
|
|
703,780
|
|
|
737,782
|
|
|
0.29
|
%
|
|
0.29
|
%
|
|
0.35
|
%
|
Certificates of
deposit
|
|
327,802
|
|
|
338,595
|
|
|
417,788
|
|
|
0.49
|
%
|
|
0.53
|
%
|
|
1.07
|
%
|
Total
deposits
|
|
4,223,964
|
|
|
3,984,113
|
|
|
3,794,434
|
|
|
0.15
|
%
|
|
0.16
|
%
|
|
0.29
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
289,374
|
|
|
284,194
|
|
|
242,390
|
|
|
0.45
|
%
|
|
0.44
|
%
|
|
0.26
|
%
|
Customer repurchase
agreements
|
|
182,114
|
|
|
184,663
|
|
|
194,937
|
|
|
0.26
|
%
|
|
0.38
|
%
|
|
0.42
|
%
|
Subordinated
debentures
|
|
44,331
|
|
|
46,639
|
|
|
59,269
|
|
|
4.81
|
%
|
|
5.50
|
%
|
|
6.00
|
%
|
Other
borrowings
|
|
—
|
|
|
—
|
|
|
73,370
|
|
|
—
|
%
|
|
—
|
%
|
|
1.02
|
%
|
Total
borrowings
|
|
515,819
|
|
|
515,496
|
|
|
569,966
|
|
|
0.76
|
%
|
|
0.88
|
%
|
|
1.01
|
%
|
Total funding
liabilities
|
|
4,739,783
|
|
|
4,499,609
|
|
|
4,364,400
|
|
|
0.22
|
%
|
|
0.24
|
%
|
|
0.38
|
%
|
Other
liabilities
|
|
94,803
|
|
|
92,261
|
|
|
118,727
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
552,721
|
|
|
538,947
|
|
|
512,902
|
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
5,387,307
|
|
|
$
|
5,130,817
|
|
|
$
|
4,996,029
|
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.75
|
%
|
|
2.82
|
%
|
|
2.99
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
2.76
|
%
|
|
2.83
|
%
|
|
3.00
|
%
|
Adjusted net
interest margin (fully-taxable equivalent)
(non-GAAP)
|
|
2.82
|
%
|
|
2.89
|
%
|
|
3.04
|
%
|
|
|
(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.
|
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,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
|
250,715
|
|
|
$
|
150,383
|
|
|
0.10
|
%
|
|
0.25
|
%
|
Investments -
taxable
|
|
1,121,569
|
|
|
850,970
|
|
|
1.66
|
%
|
|
2.37
|
%
|
Investments -
nontaxable(1)
|
|
115,755
|
|
|
121,284
|
|
|
3.28
|
%
|
|
3.39
|
%
|
Loans(2):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,400,224
|
|
|
1,297,364
|
|
|
3.59
|
%
|
|
3.93
|
%
|
Commercial(1)
|
|
330,755
|
|
|
397,754
|
|
|
3.67
|
%
|
|
3.91
|
%
|
SBA PPP
|
|
139,453
|
|
|
133,569
|
|
|
5.19
|
%
|
|
4.00
|
%
|
Municipal(1)
|
|
22,404
|
|
|
18,545
|
|
|
3.32
|
%
|
|
3.60
|
%
|
HPFC
|
|
10,755
|
|
|
18,026
|
|
|
8.16
|
%
|
|
8.38
|
%
|
Residential real
estate
|
|
1,117,389
|
|
|
1,082,276
|
|
|
3.67
|
%
|
|
4.08
|
%
|
Consumer and home
equity
|
|
255,058
|
|
|
320,273
|
|
|
4.20
|
%
|
|
4.55
|
%
|
Total loans
|
|
3,276,038
|
|
|
3,267,807
|
|
|
3.75
|
%
|
|
4.06
|
%
|
Total
interest-earning assets
|
|
4,764,077
|
|
|
4,390,444
|
|
|
3.06
|
%
|
|
3.59
|
%
|
Other
assets
|
|
389,409
|
|
|
395,621
|
|
|
|
|
|
Total
assets
|
|
$
|
5,153,486
|
|
|
$
|
4,786,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
|
1,014,778
|
|
|
$
|
645,640
|
|
|
—
|
%
|
|
—
|
%
|
Interest
checking
|
|
1,282,358
|
|
|
1,261,831
|
|
|
0.19
|
%
|
|
0.40
|
%
|
Savings
|
|
658,497
|
|
|
517,936
|
|
|
0.04
|
%
|
|
0.06
|
%
|
Money
market
|
|
699,594
|
|
|
701,872
|
|
|
0.30
|
%
|
|
0.55
|
%
|
Certificates of
deposit
|
|
339,230
|
|
|
482,076
|
|
|
0.55
|
%
|
|
1.36
|
%
|
Total
deposits
|
|
3,994,457
|
|
|
3,609,355
|
|
|
0.17
|
%
|
|
0.44
|
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
286,080
|
|
|
228,483
|
|
|
0.45
|
%
|
|
0.65
|
%
|
Customer repurchase
agreements
|
|
177,559
|
|
|
213,463
|
|
|
0.31
|
%
|
|
0.71
|
%
|
Subordinated
debentures
|
|
50,045
|
|
|
59,195
|
|
|
5.30
|
%
|
|
6.02
|
%
|
Other
borrowings
|
|
4,762
|
|
|
69,883
|
|
|
0.99
|
%
|
|
0.88
|
%
|
Total
borrowings
|
|
518,446
|
|
|
571,024
|
|
|
0.88
|
%
|
|
1.26
|
%
|
Total funding
liabilities
|
|
4,512,903
|
|
|
4,180,379
|
|
|
0.25
|
%
|
|
0.55
|
%
|
Other
liabilities
|
|
98,742
|
|
|
108,122
|
|
|
|
|
|
Shareholders'
equity
|
|
541,841
|
|
|
497,564
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
|
5,153,486
|
|
|
$
|
4,786,065
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.81
|
%
|
|
3.04
|
%
|
Net interest
margin (fully-taxable equivalent)
|
|
2.82
|
%
|
|
3.06
|
%
|
Adjusted net
interest margin (fully-taxable equivalent)
(non-GAAP)
|
|
2.87
|
%
|
|
3.10
|
%
|
|
|
(1)
|
Reported on a
tax-equivalent basis calculated using the federal corporate income
tax rate of 21%, including certain commercial loans.
|
(2)
|
Non-accrual loans and
loans held for sale are included in total average loans.
|
Asset Quality
Data
|
(unaudited)
|
(In
thousands)
|
|
At or For
The
Nine Months
Ended
September 30,
2021
|
|
At or For
The
Six Months
Ended
June 30,
2021
|
|
At or For
The
Three Months
Ended
March 31,
2021
|
|
At or For
The
Year
Ended
December 31,
2020(1)
|
|
At or For
The
Nine Months
Ended
September 30,
2020
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
2,576
|
|
|
$
|
2,725
|
|
|
$
|
3,637
|
|
|
$
|
3,477
|
|
|
$
|
4,017
|
|
Commercial real
estate
|
|
207
|
|
|
222
|
|
|
309
|
|
|
512
|
|
|
565
|
|
Commercial(1)
|
|
860
|
|
|
1,511
|
|
|
1,737
|
|
|
1,607
|
|
|
1,114
|
|
Consumer and home
equity
|
|
1,429
|
|
|
1,424
|
|
|
1,897
|
|
|
2,000
|
|
|
2,503
|
|
Total non-accrual
loans
|
|
5,072
|
|
|
5,882
|
|
|
7,580
|
|
|
7,596
|
|
|
8,199
|
|
Accruing troubled-debt
restructured loans not
included above
|
|
2,564
|
|
|
2,519
|
|
|
2,579
|
|
|
2,818
|
|
|
2,952
|
|
Total
non-performing loans
|
|
7,636
|
|
|
8,401
|
|
|
10,159
|
|
|
10,414
|
|
|
11,151
|
|
Other real estate
owned
|
|
165
|
|
|
165
|
|
|
204
|
|
|
236
|
|
|
—
|
|
Total
non-performing assets
|
|
$
|
7,801
|
|
|
$
|
8,566
|
|
|
$
|
10,363
|
|
|
$
|
10,650
|
|
|
$
|
11,151
|
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
|
1,195
|
|
|
$
|
303
|
|
|
$
|
772
|
|
|
$
|
2,297
|
|
|
$
|
1,784
|
|
Commercial real
estate
|
|
—
|
|
|
99
|
|
|
177
|
|
|
50
|
|
|
2,056
|
|
Commercial(2)
|
|
557
|
|
|
183
|
|
|
425
|
|
|
430
|
|
|
1,638
|
|
Consumer and home
equity
|
|
386
|
|
|
214
|
|
|
264
|
|
|
440
|
|
|
434
|
|
Total loans 30-89
days past due
|
|
$
|
2,138
|
|
|
$
|
799
|
|
|
$
|
1,638
|
|
|
$
|
3,217
|
|
|
$
|
5,912
|
|
ACL on loans at
the beginning of the period
|
|
$
|
37,865
|
|
|
$
|
37,865
|
|
|
$
|
37,865
|
|
|
$
|
25,171
|
|
|
$
|
25,171
|
|
Impact of CECL
adoption
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
—
|
|
(Credit) provision
for loan losses
|
|
(5,037)
|
|
|
(5,306)
|
|
|
(1,854)
|
|
|
13,215
|
|
|
12,172
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
92
|
|
|
88
|
|
|
53
|
|
|
121
|
|
|
121
|
|
Commercial real
estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
104
|
|
Commercial(1)
|
|
503
|
|
|
406
|
|
|
147
|
|
|
1,130
|
|
|
857
|
|
Consumer and home
equity
|
|
233
|
|
|
213
|
|
|
87
|
|
|
484
|
|
|
199
|
|
Total
charge-offs
|
|
828
|
|
|
707
|
|
|
287
|
|
|
1,838
|
|
|
1,281
|
|
Total
recoveries
|
|
(272)
|
|
|
(208)
|
|
|
(51)
|
|
|
(1,084)
|
|
|
(352)
|
|
Net
charge-offs
|
|
556
|
|
|
499
|
|
|
236
|
|
|
754
|
|
|
929
|
|
ACL on loans at
the end of the period
|
|
$
|
32,272
|
|
|
$
|
32,060
|
|
|
$
|
35,775
|
|
|
$
|
37,865
|
|
|
$
|
36,414
|
|
Components of
ACL:
|
|
|
|
|
|
|
|
|
|
|
ACL on
loans
|
|
$
|
32,272
|
|
|
$
|
32,060
|
|
|
$
|
35,775
|
|
|
$
|
37,865
|
|
|
$
|
36,414
|
|
ACL on off-balance
sheet credit exposures(3)
|
|
3,185
|
|
|
2,515
|
|
|
2,466
|
|
|
2,568
|
|
|
9
|
|
ACL, end of
period
|
|
$
|
35,457
|
|
|
$
|
34,575
|
|
|
$
|
38,241
|
|
|
$
|
40,433
|
|
|
$
|
36,423
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.23
|
%
|
|
0.26
|
%
|
|
0.31
|
%
|
|
0.32
|
%
|
|
0.34
|
%
|
Non-performing assets
to total assets
|
|
0.14
|
%
|
|
0.17
|
%
|
|
0.20
|
%
|
|
0.22
|
%
|
|
0.22
|
%
|
ACL on loans to total
loans
|
|
0.97
|
%
|
|
0.98
|
%
|
|
1.11
|
%
|
|
1.18
|
%
|
|
1.11
|
%
|
Net charge-offs
(recoveries) to average loans
(annualized):
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.01
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
|
(0.02)
|
%
|
|
0.01
|
%
|
Year-to-date
|
|
0.02
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
|
0.02
|
%
|
|
0.04
|
%
|
ACL on loans to
non-performing loans
|
|
422.63
|
%
|
|
381.62
|
%
|
|
352.15
|
%
|
|
363.60
|
%
|
|
326.55
|
%
|
Loans 30-89 days past
due to total loans
|
|
0.06
|
%
|
|
0.02
|
%
|
|
0.05
|
%
|
|
0.10
|
%
|
|
0.18
|
%
|
|
|
(1)
|
Period ended December
31, 2020, includes a $3.3 million increase upon adoption of CECL.
Prior interim periods were not restated for CECL.
|
(2)
|
Includes the HPFC
loan portfolio.
|
(3)
|
Presented within
accrued interest and other liabilities on the consolidated
statements of condition.
|
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,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Net income, as
presented
|
|
$
|
14,640
|
|
|
$
|
18,143
|
|
|
$
|
16,775
|
|
|
$
|
52,523
|
|
|
$
|
41,208
|
|
Add: amortization of
core deposit
intangible assets, net of tax(1)
|
|
129
|
|
|
130
|
|
|
134
|
|
|
388
|
|
|
404
|
|
Net income, adjusted
for amortization of
core deposit intangible assets
|
|
$
|
14,769
|
|
|
$
|
18,273
|
|
|
$
|
16,909
|
|
|
$
|
52,911
|
|
|
$
|
41,612
|
|
Average equity, as
presented
|
|
$
|
552,721
|
|
|
$
|
538,947
|
|
|
$
|
512,902
|
|
|
$
|
541,841
|
|
|
$
|
497,564
|
|
Less: average goodwill
and core deposit
intangible assets
|
|
(97,128)
|
|
|
(97,292)
|
|
|
(97,794)
|
|
|
(97,293)
|
|
|
(97,967)
|
|
Average tangible
equity
|
|
$
|
455,593
|
|
|
$
|
441,655
|
|
|
$
|
415,108
|
|
|
$
|
444,548
|
|
|
$
|
399,597
|
|
Return on average
equity
|
|
10.51
|
%
|
|
13.50
|
%
|
|
13.01
|
%
|
|
12.96
|
%
|
|
11.06
|
%
|
Return on average
tangible equity
|
|
12.86
|
%
|
|
16.60
|
%
|
|
16.21
|
%
|
|
15.91
|
%
|
|
13.91
|
%
|
|
|
(1)
|
Assumed a 21%
tax rate.
|
Efficiency
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For
the
Nine Months
Ended
|
(Dollars in
thousands)
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Non-interest expense,
as presented
|
|
$
|
26,263
|
|
|
$
|
25,590
|
|
|
$
|
25,221
|
|
|
$
|
76,752
|
|
|
$
|
73,291
|
|
Less: legal
settlement
|
|
—
|
|
|
—
|
|
|
(1,200)
|
|
|
—
|
|
|
(1,200)
|
|
Less: prepayment
penalty on borrowings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(514)
|
|
|
—
|
|
Adjusted non-interest
expense
|
|
$
|
26,263
|
|
|
$
|
25,590
|
|
|
$
|
24,021
|
|
|
$
|
76,238
|
|
|
$
|
72,091
|
|
Net interest income,
as presented
|
|
$
|
34,746
|
|
|
$
|
33,529
|
|
|
$
|
34,481
|
|
|
$
|
100,639
|
|
|
$
|
100,846
|
|
Add: effect of
tax-exempt income(1)
|
|
228
|
|
|
265
|
|
|
292
|
|
|
764
|
|
|
865
|
|
Non-interest income,
as presented
|
|
11,099
|
|
|
11,320
|
|
|
12,696
|
|
|
37,634
|
|
|
36,159
|
|
Adjusted net interest
income plus non-interest income
|
|
$
|
46,073
|
|
|
$
|
45,114
|
|
|
$
|
47,469
|
|
|
$
|
139,037
|
|
|
$
|
137,870
|
|
GAAP efficiency
ratio
|
|
57.29
|
%
|
|
57.06
|
%
|
|
53.46
|
%
|
|
55.51
|
%
|
|
53.50
|
%
|
Non-GAAP efficiency
ratio
|
|
57.00
|
%
|
|
56.72
|
%
|
|
50.60
|
%
|
|
54.83
|
%
|
|
52.29
|
%
|
|
|
(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,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Net income, as
presented
|
|
$
|
14,640
|
|
|
$
|
18,143
|
|
|
$
|
16,775
|
|
|
$
|
52,523
|
|
|
$
|
41,208
|
|
Add: provision
(credit) for credit losses
|
|
939
|
|
|
(3,403)
|
|
|
987
|
|
|
(4,420)
|
|
|
12,160
|
|
Add: income tax
expense
|
|
4,003
|
|
|
4,519
|
|
|
4,194
|
|
|
13,418
|
|
|
10,346
|
|
Pre-tax,
pre-provision earnings
|
|
$
|
19,582
|
|
|
$
|
19,259
|
|
|
$
|
21,956
|
|
|
$
|
61,521
|
|
|
$
|
63,714
|
|
Adjusted Yield
on Interest-Earning Assets:
|
|
|
For
the
Three Months
Ended
|
|
For
the
Nine Months
Ended
|
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Yield on
interest-earning assets, as presented
|
|
2.97
|
%
|
|
3.06
|
%
|
|
3.37
|
%
|
|
3.06
|
%
|
|
3.59
|
%
|
Add: effect of excess
liquidity on
yield on interest-earning assets
|
|
0.16
|
%
|
|
0.12
|
%
|
|
0.10
|
%
|
|
0.12
|
%
|
|
0.06
|
%
|
Less: effect of SBA
PPP loans on
yield on interest-earning assets
|
|
(0.09)
|
%
|
|
(0.04)
|
%
|
|
(0.04)
|
%
|
|
(0.06)
|
%
|
|
(0.01)
|
%
|
Adjusted yield on
interest-earning assets
|
|
3.04
|
%
|
|
3.14
|
%
|
|
3.43
|
%
|
|
3.12
|
%
|
|
3.64
|
%
|
Adjusted Net
Interest Margin (Fully-Taxable Equivalent):
|
|
|
For
the
Three Months
Ended
|
|
For
the
Nine Months
Ended
|
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Net interest margin
(fully-taxable equivalent), as presented
|
|
2.76
|
%
|
|
2.83
|
%
|
|
3.00
|
%
|
|
2.82
|
%
|
|
3.06
|
%
|
Add: effect of excess
liquidity on net
interest margin (fully-taxable equivalent)
|
|
0.15
|
%
|
|
0.11
|
%
|
|
0.10
|
%
|
|
0.12
|
%
|
|
0.06
|
%
|
Less: effect of SBA
PPP loans on net
interest margin (fully-taxable equivalent)
|
|
(0.09)
|
%
|
|
(0.05)
|
%
|
|
(0.06)
|
%
|
|
(0.07)
|
%
|
|
(0.02)
|
%
|
Adjusted net interest
margin (fully-taxable equivalent)
|
|
2.82
|
%
|
|
2.89
|
%
|
|
3.04
|
%
|
|
2.87
|
%
|
|
3.10
|
%
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
(In thousands,
except number of shares, per share data and ratios)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
|
545,984
|
|
|
$
|
545,548
|
|
|
$
|
517,522
|
|
Less: goodwill and
other intangible assets
|
|
(97,049)
|
|
|
(97,213)
|
|
|
(97,711)
|
|
Tangible
shareholders' equity
|
|
$
|
448,935
|
|
|
$
|
448,335
|
|
|
$
|
419,811
|
|
Shares outstanding at
period end
|
|
14,849,327
|
|
|
14,951,067
|
|
|
14,917,344
|
|
Book value per
share
|
|
$
|
36.77
|
|
|
$
|
36.49
|
|
|
$
|
34.69
|
|
Tangible book value
per share
|
|
$
|
30.23
|
|
|
$
|
29.99
|
|
|
$
|
28.14
|
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
|
5,502,902
|
|
|
$
|
5,152,069
|
|
|
$
|
5,153,793
|
|
Less: goodwill and
other intangible assets
|
|
(97,049)
|
|
|
(97,213)
|
|
|
(97,711)
|
|
Tangible
assets
|
|
$
|
5,405,853
|
|
|
$
|
5,054,856
|
|
|
$
|
5,056,082
|
|
Common equity
ratio
|
|
9.92
|
%
|
|
10.59
|
%
|
|
10.04
|
%
|
Tangible common
equity ratio
|
|
8.30
|
%
|
|
8.87
|
%
|
|
8.30
|
%
|
Core
Deposits:
|
(In
thousands)
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
Total
deposits
|
|
$
|
4,605,180
|
|
|
$
|
4,294,114
|
|
|
$
|
4,224,044
|
|
Less: certificates of
deposit
|
|
(323,395)
|
|
|
(334,336)
|
|
|
(405,434)
|
|
Less: brokered
deposits
|
|
(288,975)
|
|
|
(282,786)
|
|
|
(291,616)
|
|
Core
deposits
|
|
$
|
3,992,810
|
|
|
$
|
3,676,992
|
|
|
$
|
3,526,994
|
|
Average Core
Deposits:
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For
the
Nine Months
Ended
|
(In
thousands)
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
|
September
30,
2021
|
|
September
30,
2020
|
Total average
deposits
|
|
$
|
4,223,964
|
|
|
$
|
3,984,113
|
|
|
$
|
3,794,434
|
|
|
$
|
3,994,457
|
|
|
$
|
3,609,355
|
|
Less: average
certificates of deposit
|
|
(327,802)
|
|
|
(338,595)
|
|
|
(417,788)
|
|
|
(339,230)
|
|
|
(482,076)
|
|
Average core
deposits
|
|
$
|
3,896,162
|
|
|
$
|
3,645,518
|
|
|
$
|
3,376,646
|
|
|
$
|
3,655,227
|
|
|
$
|
3,127,279
|
|
Total loans,
excluding SBA PPP loans:
|
|
|
|
|
|
|
(In
thousands)
|
|
September
30,
2021
|
|
June
30,
2021
|
|
September
30,
2020
|
Total loans, as
presented
|
|
$
|
3,315,303
|
|
|
$
|
3,285,916
|
|
|
$
|
3,274,842
|
|
Less: SBA PPP
loans
|
|
(81,959)
|
|
|
(126,064)
|
|
|
(223,838)
|
|
Total loans,
excluding SBA PPP loans
|
|
$
|
3,233,344
|
|
|
$
|
3,159,852
|
|
|
$
|
3,051,004
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/camden-national-corporation-reports-third-quarter-2021-financial-results-301407784.html
SOURCE Camden National Corporation