CAMDEN, Maine, Jan. 25, 2022 /PRNewswire/ -- Camden National
Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a
$5.5 billion bank holding company
headquartered in Camden, Maine,
reported record net income for the year ended 2021 of $69.0 million and diluted earnings per share
("EPS") of $4.60, each an increase of
16% over the year ended 2020. The Company finished off the year
strong with solid fourth quarter 2021 earnings of $16.5 million, an increase of 13% over the third
quarter of 2021. For the year ended 2021, the Company's return on
average equity was 12.72% and return on average tangible equity
(non-GAAP) was 15.61%, compared to 11.81% and 14.79% for the year
ended 2020, respectively.
"We're excited and grateful to report a new high-water mark this
year with record earnings of $69.0
million. Our success is a direct reflection of the
outstanding team we have across all facets of our organization and
their commitment to delivering exceptional customer experiences,"
said Gregory A. Dufour, President
and Chief Executive Officer of the Company. "We're entering 2022 in
great financial standing, highlighted by strong capital and reserve
levels, a well-positioned balance sheet and significant momentum
fueled by our dedicated team."
Dufour added, "In addition to our financial success this past
year, I'm equally excited to share that we have taken several
important steps and actions throughout the year to continue our
efforts to promote fair and equitable treatment of all of our
constituents, including our employees and communities. While
certainly not a comprehensive list, a few highlights include: (1)
we increased our minimum wage for all employees to $17.00 per hour and provided a wage increase of
3.0% or more to all employees, (2) the Board of Directors adopted a
diversity statement outlining our commitment to diversity at the
board-level, and (3) we formed a Diversity, Equity and Inclusion
Council made up of employees at all levels across the Company and
is sponsored by myself. We also continued to support our
communities through charitable giving and volunteering, with an
emphasis on homelessness and victims of domestic violence."
Net income for the fourth quarter of 2021 was $16.5 million and diluted EPS was $1.11, an increase of 13% and 14%, respectively,
over the third quarter of 2021 and a decrease of 10% and 9%,
respectively, compared to the fourth quarter of 2020. The decrease
compared to the fourth quarter of 2020 was the result of (1) a
strategic shift to hold more of our residential mortgage production
in 2021, (2) lower Small Business Administration Paycheck
Protection Program ("SBA PPP") loan income, and (3) strong loan
growth in the fourth quarter of 2021 that led to higher provisions
for loans.
"In December, we announced a $0.04
increase in our quarterly cash dividend rate to $0.40 per share, representing our second dividend
increase this year and bringing our total cash dividend per share
for the year to $1.48," said Dufour.
"We continue to take measured steps to manage our capital, and this
year we did so through returning capital to our shareholders in the
form of dividend increases and repurchases of the Company's common
stock. As we move into 2022, we'll continue to actively monitor and
manage capital with a focus on shareholder return."
During 2021, through the combination of cash dividends and share
repurchases, the Company returned $31.2
million of capital to shareholders. For the year ended 2021,
the Company repurchased 217,931 shares of its outstanding common
stock at a weighted average price of $46.25.
FOURTH QUARTER 2021 HIGHLIGHTS
- Net income increased by $1.9
million, or 13%, over the third quarter of 2021, and
decreased $1.8 million, or 10%,
compared to the fourth quarter of 2020.
- Earnings before income taxes and provision (non-GAAP) increased
$2.3 million, or 12%, over the third
quarter of 2021, and decreased $1.2
million, or 5%, compared to the fourth quarter of 2020,
which was driven by: (1) a decrease in mortgage banking income of
$3.5 million as the Company shifted
its strategy in 2021 to hold more of its residential mortgage
production in its loan portfolio and (2) lower SBA PPP income of
$1.0 million.
- Loans grew $116.2 million, or 4%,
during the fourth quarter of 2021, and $162.2 million, or 5%, excluding SBA PPP loans
(non-GAAP). Loans grew $211.7
million, or 7%, for the year ended 2021, and $310.8 million, or 10%, excluding SBA PPP
loans.
- Residential mortgage loan originations reached a new record in
2021 with $1.1 billion of volume, an
increase of 5% over the previous record set just last year.
- Fourth quarter 2021 dividend payable to shareholders increased
$0.04, or 11%, to $0.40 per share, and was the Company's second
dividend increase during 2021 for a total of $0.07 per share, or 21%. The Company's annualized
dividend yield at December 30, 2021
(last business day) was 3.32%, based on the Company's closing stock
price of $48.16.
- Allowance for credit losses on loans ("ACL") coverage ratio was
0.97% to total loans at December 31,
2021, compared to 1.18% a year ago, but still above
pre-pandemic levels of 0.81% at December 31,
2019.
FINANCIAL CONDITION
Total assets grew 12% during 2021 to $5.5
billion as of December 31,
2021. Asset growth for the year ended 2021 was driven by an
increase in investment balances of $390.7
million, or 34%, and an increase in loan balances of
$211.7 million, or 7%.
- For the year ended 2021, investment balances grew 34% to
$1.5 billion at December 31, 2021, and were 28% of total assets
at December 31, 2021, compared to 23%
a year ago. The increase in investment balances during 2021 was
directly tied to the run-up in liquidity across the industry as
deposits grew 15% over this period. For the year ended 2021, the
Company purchased $758.8 million of
debt securities, which continue to be primarily mortgage-backed
securities and collateralized mortgage obligations. As of
December 31, 2021, the
weighted-average life of the Company's debt securities portfolio
was 5.9 years compared to 5.1 years as of December 31, 2020.
- For the year ended 2021, loan balances grew 7% (and excluding
SBA PPP loans grew 10%) to $3.4
billion at December 31, 2021.
Loan growth occurred within the residential real estate loan
portfolio – increasing $251.6
million, or 24%, to $1.3
billion at December 31, 2021 –
and within the commercial real estate loan portfolio – increasing
$126.0 million, or 9%, to
$1.5 billion at December 31, 2021. The increase in these two loan
portfolios more than offset the decreases across the commercial,
consumer and home equity, and SBA PPP loan portfolios, which
decreased 5%, 18% and 73%, respectively. At December 31, 2021, remaining SBA PPP loan
balances were $36.0 million, which
are net of unearned origination fees of $1.2
million yet to be recognized. The Company anticipates that
its SBA PPP loan portfolio will continue to pay-down at an
accelerated pace as borrowers apply for forgiveness.
As previously reported, during the first half of 2021 the
Company shifted its strategy to hold more of its fixed rate
residential mortgage production within its loan portfolio. For the
year ended 2021, the Company held 56%, or $609.3 million, of its residential mortgage
production within its loan portfolio, which includes holding 67% of
its originations for the fourth quarter of 2021. As of December 31, 2021, 73% of the Company's
residential mortgage pipeline was designated to be held in its
portfolio.
Total deposits grew $603.6
million, or 15%, during 2021 to $4.6
billion as of December 31,
2021. Core deposits grew $726.8
million, or 22%, led by annual checking account growth of
$550.1 million, or 26%, and annual
savings and money market account growth of $176.6 million, or 14%. Core deposit growth
during the year was driven by additional government stimulus
programs in response to the COVID-19 pandemic. Given the increase
in core deposits during 2021, other funding channels were closely
managed in an effort to reduce more costly funding, including: (1)
a decrease in certificates of deposit balances and brokered deposit
balances of $48.0 million and
$75.1 million, respectively, (2) the
early termination of a $25.0 million
long-term borrowing contract during the first quarter of 2021 and
(3) full redemption of the Company's $15.0
million of subordinated notes during the second quarter of
2021, at par plus accrued interest.
The Company's loan-to-deposit ratio was 74% at December 31, 2021, compared to 80% at
December 31, 2020.
As of December 31, 2021, the
Company's capital position was strong, highlighted by:
- Total risk-based capital ratio of 14.71% and a tier 1 leverage
ratio of 8.92%, each well in excess of regulatory capital
requirements.
- Shareholders' equity to total assets ratio and tangible common
equity ratio (non-GAAP) were 9.84% and 8.22%, respectively.
- Book value per share of $36.72 at
December 31, 2021, an increase of
$1.22, or 3%, during 2021. Tangible
book value per share (non-GAAP) increased $1.19, or 4%, during 2021 to $30.15 at December 31,
2021.
The Company repurchased 111,429 shares of its outstanding common
stock during the fourth quarter and 217,931 shares for the year
ended 2021. In January 2022, the
Company announced a new share repurchase program for 750,000 shares
of Company common stock, or approximately 5% of outstanding stock
at December 31, 2021. The new share
repurchase program replaces the prior program, which expired upon
the announcement of the new program.
ASSET QUALITY
As of December 31, 2021, the
Company's asset quality metrics remained very strong with
non-performing assets of 0.13% of total assets and loans 30-89 days
past due of 0.04% 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.
As of December 31, 2021, the
Company did not have any loans operating under a temporary
deferment arrangement as permitted under the Coronavirus Aid,
Relief and Economic Security Act, commonly referred to as the CARES
Act, and the Consolidated Appropriations Act, 2021.
ALLOWANCE FOR CREDIT LOSSES ("ACL")
As of December 31, 2021 and 2020,
the Company accounted for its ACL on loans in accordance with the
current expected credit losses model, commonly referred to as
"CECL." At December 31, 2021, the ACL
on loans was $33.3 million, or 0.97%
of total loans, compared to $32.3
million, or 0.97% of total loans, at September 30, 2021 and $37.9 million, or 1.18% of total loans, at
December 31, 2020. In estimating the
ACL on loans at December 31, 2021,
the Company considered portfolio make-up and loan balances, current
and forecasted macroeconomic and credit trends, as well as
Company-specific factors. The decrease in the ACL on loans over
this period reflects the general improvement across many of the
macroeconomic factors observed, as well as accounts for the strong
loan growth during 2021 of 7% (or 10% excluding SBA PPP loans). At
December 31, 2021, the ACL on loans
to total loans ratio of 0.97% accounts for the overall
macroeconomic improvement and continued strong overall asset
quality, as well as the continued dynamic environment and unique
challenges that persist largely due to the pandemic.
FINANCIAL OPERATING RESULTS (Q4 2021 vs. Q3 2021)
Net income for the fourth quarter of 2021 was $16.5 million, an increase of $1.9 million, or 13%, over the third quarter of
2021. Diluted EPS for the fourth quarter of 2021 was $1.11, an increase of $0.14, or 14%, on a linked quarter-basis.
Earnings before income taxes, provision and SBA PPP income for
the fourth quarter was $19.2 million,
an increase of $1.6 million, or 9%,
over the third quarter of 2021.
Net Interest Income and Net Interest Margin. Net
interest income for the fourth quarter of 2021 was $36.8 million, an increase of $2.1 million, or 6%, over the third quarter of
2021. On a linked quarter-basis, interest income increased
$2.1 million, or 6%, and interest
expense was stable, increasing only $21,000, or 1%.
- The increase in interest income between periods was driven by:
(1) an increase in SBA PPP income of $734,000 as average SBA PPP loan balances
decreased 47% during the fourth quarter of 2021, (2) an increase in
average investment balances of $107.2
million, or 8%, and (3) an increase in average loan balances
of $69.3 million, or 2%. The yield on
average interest-earning assets for the fourth quarter was 3.02%,
an increase of 5 basis points over the third quarter of 2021.
However, adjusting for SBA PPP loans and excess liquidity, the
yield on average-interest earning assets for the fourth quarter was
3.01%, a decrease of 3 basis points compared to the third quarter
of 2021, driven primarily by lower residential real estate loan
yields of 6 basis points between periods.
- The increase in interest expense between periods was driven by
an increase in average deposits of $175.0
million, or 4%, to $4.4
billion, but was partially offset by a decrease in costs of
funds of 1 basis point to 0.21%.
Net interest margin for the fourth quarter of 2021 was 2.82%, an
increase of 6 basis points over the third quarter of 2021. Adjusted
net interest margin, which excludes SBA PPP loans and excess
liquidity (non-GAAP), for the fourth quarter of 2021 was 2.79%, a
decrease of 3 basis points compared to the third quarter of
2021.
Provision for Credit Losses. The change in
provision for credit losses between periods is highlighted in the
table below:
($ in
thousands)
|
|
Q4
2021
|
|
Q3
2021
|
|
Increase
/
(Decrease)
|
Provision for credit
losses - loans
|
|
$
1,220
|
|
$
269
|
|
$
951
|
Provision for credit
losses - off-balance sheet credit exposures
|
|
10
|
|
670
|
|
(660)
|
Provision (credit) for
credit losses
|
|
$
1,230
|
|
$
939
|
|
$
291
|
On a linked quarter-basis, the increase in provision for credit
losses on loans was primarily due to loan growth, excluding SBA PPP
loans, of $162.2 million, or 5%, and
was partially offset by continued improving current and forecasted
market conditions.
The provision for credit losses on off-balance sheet credit
exposures 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. On a linked quarter-basis, the
Company's ACL on off-balance sheet credit exposures was stable,
increasing $10,000 to $3.2 million at December
31, 2021.
Non-Interest Income. Non-interest income for the
fourth quarter of 2021 was $12.1
million, an increase of $1.0
million, or 9%, over the third quarter of 2021. The increase
was driven by an increase in debit card income of $701,000, which was primarily due to receipt of
our annual incentive bonus of $741,000 and an increase in mortgage banking
income of $171,000.
Non-Interest Expense. Non-interest expense for the
fourth quarter of 2021 was $27.0
million, an increase of $705,000, or 3%, compared to the third quarter of
2021. The increase was driven by: (1) higher other expenses of
$555,000 primarily due to a valuation
adjustment on the Company's back-to-back loan swap program of
$188,000, and an increase in
marketing- and employee-related costs of $140,000 and $130,000, respectively, (2) higher furniture,
equipment and data processing costs of $313,000, which includes timing of the annual
core system upgrade in the fourth quarter and continued investments
in information security infrastructure, (3) higher consulting and
professional fees of $247,000, and
(4) higher net occupancy costs of $150,000 due to the change in seasons and
employees returning to the office in September 2021. These increases were partially
offset by a decrease in salaries and benefits expense of
$637,000 primarily driven by a
decrease in bonus and incentive accruals between quarters, net of
an increase in wages due to the off-cycle merit increase in
early-October 2021 that provided
employees with a wage increase of 3% or more and increased
minimum wage by $2 to $17 per hour.
FINANCIAL OPERATING RESULTS (Q4 2021 vs. Q4 2020)
Net income for the fourth quarter of 2021 decreased $1.8 million, or 10%, compared to the fourth
quarter of 2020. Diluted EPS for the fourth quarter of 2021
decreased of $0.11, or 9%, compared
to the same period last year. The highlights include:
- An increase in net interest income between periods of
$1.3 million, or 4%, driven by higher
average investment balances of 41%, and a decrease in cost of funds
of 12 basis points, partially offset by lower SBA PPP loan income
of $1.0 million.
- A decrease in net interest margin between periods of 24 basis
points to 2.82% for the fourth quarter of 2021. Adjusted net
interest margin, which excludes SBA PPP loans and excess liquidity
(non-GAAP), for the fourth quarter of 2021 was 2.79%, a decrease of
20 basis points compared to the fourth quarter of 2020.
- An increase in provision for credit losses between periods of
$972,000.
- A decrease in non-interest income between periods of
$2.2 million, or 16%, driven by a
shift in strategy to hold more residential mortgage loans in 2021,
which resulted in a decrease in mortgage banking income of
$3.5 million, partially offset by an
increase in debit card income of $718,000.
- An increase in non-interest expense between periods of
$276,000, or 1%. For the fourth
quarter of 2021, our annualized ratio of non-interest expense to
average assets was 1.94%, compared to 2.13% for the fourth quarter
of 2020.
Q4 2021 CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m., Eastern Time, on
Tuesday, January 25, 2022 to discuss
its fourth quarter and year ended 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:
|
160478
|
Live
webcast:
|
https://events.q4inc.com/attendee/636180084
|
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 2021, 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 earnings before income taxes and
provision and earnings before income taxes, provision and SBA PPP
loan income; 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
Year
Ended
|
(In thousands, except number of shares
and per share data)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Financial
Condition Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
1,523,485
|
|
$
1,471,118
|
|
$
1,132,812
|
|
$
1,523,485
|
|
$
1,132,812
|
Loans and loans held
for sale
|
|
3,437,289
|
|
3,326,129
|
|
3,261,379
|
|
3,437,289
|
|
3,261,379
|
Allowance for credit
losses on loans
|
|
33,256
|
|
32,272
|
|
37,865
|
|
33,256
|
|
37,865
|
Total
assets
|
|
5,500,356
|
|
5,502,902
|
|
4,898,745
|
|
5,500,356
|
|
4,898,745
|
Deposits
|
|
4,608,889
|
|
4,605,180
|
|
4,005,244
|
|
4,608,889
|
|
4,005,244
|
Borrowings
|
|
255,939
|
|
255,883
|
|
246,770
|
|
255,939
|
|
246,770
|
Shareholders'
equity
|
|
541,294
|
|
545,984
|
|
529,314
|
|
541,294
|
|
529,314
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
36,797
|
|
$
34,746
|
|
$
35,461
|
|
$
137,436
|
|
$
136,307
|
Provision (credit)
for credit losses
|
|
1,230
|
|
939
|
|
258
|
|
(3,190)
|
|
12,418
|
Non-interest
income
|
|
12,101
|
|
11,099
|
|
14,331
|
|
49,735
|
|
50,490
|
Non-interest
expense
|
|
26,968
|
|
26,263
|
|
26,692
|
|
103,720
|
|
99,983
|
Income before income
tax expense
|
|
20,700
|
|
18,643
|
|
22,842
|
|
86,641
|
|
74,396
|
Income tax
expense
|
|
4,209
|
|
4,003
|
|
4,564
|
|
17,627
|
|
14,910
|
Net income
|
|
$
16,491
|
|
$
14,640
|
|
$
18,278
|
|
$
69,014
|
|
$
59,486
|
Key
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.18 %
|
|
1.08 %
|
|
1.45 %
|
|
1.31 %
|
|
1.23 %
|
Return on average
equity
|
|
12.00 %
|
|
10.51 %
|
|
13.94%
|
|
12.72 %
|
|
11.81 %
|
GAAP efficiency
ratio
|
|
55.15 %
|
|
57.29 %
|
|
53.61 %
|
|
55.41 %
|
|
53.52 %
|
Net interest margin
(fully-taxable equivalent)
|
|
2.82 %
|
|
2.76 %
|
|
3.06 %
|
|
2.84 %
|
|
3.09 %
|
Non-performing assets
to total assets
|
|
0.13 %
|
|
0.14 %
|
|
0.22 %
|
|
0.13 %
|
|
0.22 %
|
Common equity
ratio
|
|
9.84 %
|
|
9.92 %
|
|
10.81 %
|
|
9.84 %
|
|
10.81 %
|
Tier 1 leverage
capital ratio
|
|
8.92 %
|
|
9.13 %
|
|
9.13 %
|
|
8.92 %
|
|
9.13 %
|
Total risk-based
capital ratio
|
|
14.71 %
|
|
15.06 %
|
|
15.40
%
|
|
14.71 %
|
|
15.40 %
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
1.11
|
|
$
0.98
|
|
$
1.22
|
|
$
4.62
|
|
$
3.96
|
Diluted earnings per
share
|
|
$
1.11
|
|
$
0.97
|
|
$
1.22
|
|
$
4.60
|
|
$
3.95
|
Cash dividends
declared per share
|
|
$
0.40
|
|
$
0.36
|
|
$
0.33
|
|
$
1.48
|
|
$
1.32
|
Book value per
share
|
|
$
36.72
|
|
$
36.77
|
|
$
35.50
|
|
$
36.72
|
|
$
35.50
|
Non-GAAP
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
|
14.71 %
|
|
12.86 %
|
|
17.27 %
|
|
15.61 %
|
|
14.79 %
|
Efficiency
ratio
|
|
54.90 %
|
|
57.00 %
|
|
53.30 %
|
|
54.85 %
|
|
52.56 %
|
Adjusted net interest
margin (fully-taxable equivalent)
|
|
2 .79
%
|
|
2.82
%
|
|
2.99 %
|
|
2.87 %
|
|
3.10 %
|
Earnings before
income taxes and provision for credit losses
|
|
$
21,930
|
|
$
19,582
|
|
$
23,100
|
|
$
83,451
|
|
$
86,814
|
Earnings before
income taxes, provision for credit losses and SBA PPP loan
income
|
|
$
19,246
|
|
$
17,632
|
|
$
19,413
|
|
$
75,281
|
|
$
79,064
|
Tangible common
equity ratio
|
|
8.22 %
|
|
8.30 %
|
|
8.99 %
|
|
8.22 %
|
|
8.99 %
|
Tangible book value
per share
|
|
$
30.15
|
|
$
30.23
|
|
$
28.96
|
|
$
30.15
|
|
$
28.96
|
|
|
(1)
|
Please see
"Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
(In thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
ASSETS
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
$
220,625
|
|
$
379,656
|
|
$
145,774
|
Investments:
|
|
|
|
|
|
|
Trading
securities
|
|
4,428
|
|
4,335
|
|
4,161
|
Available-for-sale
securities, at fair value (book value of $1,508,981, $1,443,800 and
$1,078,474, respectively)
|
|
1,507,486
|
|
1,455,210
|
|
1,115,813
|
Held-to-maturity
securities, at amortized cost (fair value of $1,380, $1,390, and
$1,411, respectively)
|
|
1,291
|
|
1,293
|
|
1,297
|
Other
investments
|
|
10,280
|
|
10,280
|
|
11,541
|
Total
investments
|
|
1,523,485
|
|
1,471,118
|
|
1,132,812
|
Loans held for sale,
at fair value (book value of $5,786, 10,789, and $40,499
respectively)
|
|
5,815
|
|
10,826
|
|
41,557
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,495,460
|
|
1,419,677
|
|
1,369,470
|
Commercial(1)
|
|
363,695
|
|
352,533
|
|
381,494
|
SBA PPP
|
|
35,953
|
|
81,959
|
|
135,095
|
Residential real
estate
|
|
1,306,447
|
|
1,222,084
|
|
1,054,798
|
Consumer and home
equity
|
|
229,919
|
|
239,050
|
|
278,965
|
Total loans
|
|
3,431,474
|
|
3,315,303
|
|
3,219,822
|
Less: allowance for
credit losses on loans
|
|
(33,256)
|
|
(32,272)
|
|
(37,865)
|
Net
loans
|
|
3,398,218
|
|
3,283,031
|
|
3,181,957
|
Goodwill and core
deposit intangible assets
|
|
96,885
|
|
97,049
|
|
97,540
|
Other
assets
|
|
255,328
|
|
261,222
|
|
299,105
|
Total
assets
|
|
$
5,500,356
|
|
$
5,502,902
|
|
$
4,898,745
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
1,279,565
|
|
1,289,018
|
|
$
792,550
|
Interest
checking
|
|
1,351,736
|
|
1,266,242
|
|
1,288,575
|
Savings and money
market
|
|
1,459,472
|
|
1,437,550
|
|
1,282,886
|
Certificates of
deposit
|
|
309,648
|
|
323,395
|
|
357,666
|
Brokered
deposits
|
|
208,468
|
|
288,975
|
|
283,567
|
Total
deposits
|
|
4,608,889
|
|
4,605,180
|
|
4,005,244
|
Short-term
borrowings
|
|
211,608
|
|
211,552
|
|
162,439
|
Long-term
borrowings
|
|
—
|
|
—
|
|
25,000
|
Subordinated
debentures
|
|
44,331
|
|
44,331
|
|
59,331
|
Accrued interest and
other liabilities
|
|
94,234
|
|
95,855
|
|
117,417
|
Total
liabilities
|
|
4,959,062
|
|
4,956,918
|
|
4,369,431
|
Shareholders'
equity
|
|
541,294
|
|
545,984
|
|
529,314
|
Total liabilities
and shareholders' equity
|
|
$
5,500,356
|
|
$
5,502,902
|
|
$
4,898,745
|
|
|
(1)
|
Includes the
Healthcare Professional Funding Corporation ("HPFC") loan
portfolio.
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
|
For
the
Three Months
Ended
|
|
For
the
Year
Ended
|
(In thousands, except per share data)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
32,827
|
|
$
31,185
|
|
$
33,810
|
|
$
125,437
|
|
$
134,000
|
Taxable interest on
investments
|
|
5,507
|
|
5,157
|
|
4,158
|
|
18,869
|
|
18,399
|
Nontaxable interest
on investments
|
|
754
|
|
756
|
|
815
|
|
3,001
|
|
3,253
|
Dividend
income
|
|
106
|
|
99
|
|
157
|
|
412
|
|
655
|
Other interest
income
|
|
257
|
|
182
|
|
202
|
|
765
|
|
893
|
Total interest
income
|
|
39,451
|
|
37,379
|
|
39,142
|
|
148,484
|
|
157,200
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,963
|
|
1,973
|
|
2,591
|
|
7,920
|
|
15,544
|
Interest on
borrowings
|
|
151
|
|
122
|
|
246
|
|
605
|
|
1,837
|
Interest on
subordinated debentures
|
|
540
|
|
538
|
|
844
|
|
2,523
|
|
3,512
|
Total interest
expense
|
|
2,654
|
|
2,633
|
|
3,681
|
|
11,048
|
|
20,893
|
Net interest
income
|
|
36,797
|
|
34,746
|
|
35,461
|
|
137,436
|
|
136,307
|
Provision (credit)
for credit losses(1)
|
|
1,230
|
|
939
|
|
258
|
|
(3,190)
|
|
12,418
|
Net interest income
after provision (credit) for credit losses
|
|
35,567
|
|
33,807
|
|
35,203
|
|
140,626
|
|
123,889
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income, net
|
|
2,084
|
|
1,913
|
|
5,598
|
|
13,704
|
|
18,487
|
Debit card
income
|
|
3,979
|
|
3,278
|
|
3,261
|
|
13,105
|
|
10,420
|
Service charges on
deposit accounts
|
|
1,826
|
|
1,744
|
|
1,742
|
|
6,626
|
|
6,697
|
Income from fiduciary
services
|
|
1,656
|
|
1,627
|
|
1,506
|
|
6,516
|
|
6,115
|
Brokerage and
insurance commissions
|
|
1,028
|
|
993
|
|
798
|
|
3,913
|
|
2,832
|
Bank-owned life
insurance
|
|
590
|
|
589
|
|
615
|
|
2,364
|
|
2,533
|
Customer loan swap
fees
|
|
—
|
|
—
|
|
—
|
|
—
|
|
222
|
Other
income
|
|
938
|
|
955
|
|
811
|
|
3,507
|
|
3,184
|
Total non-interest
income
|
|
12,101
|
|
11,099
|
|
14,331
|
|
49,735
|
|
50,490
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
15,265
|
|
15,902
|
|
16,245
|
|
61,007
|
|
57,938
|
Furniture, equipment
and data processing
|
|
3,293
|
|
2,980
|
|
3,180
|
|
12,247
|
|
11,756
|
Net occupancy
costs
|
|
1,963
|
|
1,813
|
|
1,800
|
|
7,532
|
|
7,585
|
Debit card
expense
|
|
1,147
|
|
1,106
|
|
969
|
|
4,313
|
|
3,753
|
Consulting and
professional fees
|
|
1,039
|
|
792
|
|
956
|
|
3,691
|
|
3,833
|
Regulatory
assessments
|
|
562
|
|
522
|
|
479
|
|
2,074
|
|
1,450
|
Amortization of core
deposit intangible assets
|
|
164
|
|
163
|
|
171
|
|
655
|
|
682
|
Other real estate
owned and collection costs (recoveries), net
|
|
55
|
|
60
|
|
112
|
|
(101)
|
|
382
|
Other
expenses
|
|
3,480
|
|
2,925
|
|
2,780
|
|
12,302
|
|
12,604
|
Total non-interest
expense
|
|
26,968
|
|
26,263
|
|
26,692
|
|
103,720
|
|
99,983
|
Income before
income tax expense
|
|
20,700
|
|
18,643
|
|
22,842
|
|
86,641
|
|
74,396
|
Income Tax
Expense
|
|
4,209
|
|
4,003
|
|
4,564
|
|
17,627
|
|
14,910
|
Net
Income
|
|
$
16,491
|
|
$
14,640
|
|
$
18,278
|
|
$
69,014
|
|
$
59,486
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
1.11
|
|
$
0.98
|
|
$
1.22
|
|
$
4.62
|
|
$
3.96
|
Diluted earnings per
share
|
|
$
1.11
|
|
$
0.97
|
|
$
1.22
|
|
$
4.60
|
|
$
3.95
|
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,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and
other interest-earning assets
|
|
$
322,779
|
|
$
304,594
|
|
$
267,083
|
|
0.15 %
|
|
0.12 %
|
|
0.09 %
|
Investments -
taxable
|
|
1,392,645
|
|
1,284,851
|
|
945,866
|
|
1.65 %
|
|
1.66 %
|
|
1.88 %
|
Investments -
nontaxable(1)
|
|
113,429
|
|
114,033
|
|
121,354
|
|
3.36 %
|
|
3.36 %
|
|
3.40 %
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,450,454
|
|
1,410,201
|
|
1,348,269
|
|
3.61 %
|
|
3.59 %
|
|
3.65 %
|
Commercial(1)
|
|
331,405
|
|
339,638
|
|
331,707
|
|
3.50 %
|
|
3.49 %
|
|
3.89 %
|
SBA PPP
|
|
55,982
|
|
105,742
|
|
186,416
|
|
18.76 %
|
|
7.22 %
|
|
7.74 %
|
Municipal(1)
|
|
14,966
|
|
17,021
|
|
20,645
|
|
3.56 %
|
|
3.41 %
|
|
3.46 %
|
HPFC
|
|
6,997
|
|
8,981
|
|
13,947
|
|
7.50 %
|
|
7.45 %
|
|
6.98 %
|
Residential real
estate
|
|
1,273,342
|
|
1,174,559
|
|
1,093,367
|
|
3.47 %
|
|
3.53 %
|
|
3.96 %
|
Consumer and home
equity
|
|
235,232
|
|
242,921
|
|
287,665
|
|
4.24 %
|
|
4.27 %
|
|
4.25 %
|
Total
loans
|
|
3,368,378
|
|
3,299,063
|
|
3,282,016
|
|
3.85 %
|
|
3.73 %
|
|
4.07 %
|
Total
interest-earning assets
|
|
5,197,231
|
|
5,002,541
|
|
4,616,319
|
|
3.02
%
|
|
2.97
%
|
|
3.38
%
|
Other
assets
|
|
361,169
|
|
384,766
|
|
405,976
|
|
|
|
|
|
|
Total
assets
|
|
$
5,558,400
|
|
$
5,387,307
|
|
$
5,022,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
1,286,858
|
|
$
1,251,492
|
|
$
800,391
|
|
— %
|
|
— %
|
|
— %
|
Interest
checking
|
|
1,343,206
|
|
1,246,634
|
|
1,371,910
|
|
0.20 %
|
|
0.20 %
|
|
0.23 %
|
Savings
|
|
726,085
|
|
688,331
|
|
589,856
|
|
0.04 %
|
|
0.04 %
|
|
0.04 %
|
Money
market
|
|
726,890
|
|
709,705
|
|
700,949
|
|
0.29 %
|
|
0.29 %
|
|
0.33 %
|
Certificates of
deposit
|
|
315,908
|
|
327,802
|
|
373,364
|
|
0.47 %
|
|
0.49 %
|
|
0.89 %
|
Total
deposits
|
|
4,398,947
|
|
4,223,964
|
|
3,836,470
|
|
0.15
%
|
|
0.15
%
|
|
0.23
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
271,474
|
|
289,374
|
|
286,038
|
|
0.46 %
|
|
0.45 %
|
|
0.46 %
|
Customer repurchase
agreements
|
|
208,055
|
|
182,114
|
|
183,337
|
|
0.29 %
|
|
0.26 %
|
|
0.40 %
|
Subordinated
debentures
|
|
44,331
|
|
44,331
|
|
59,327
|
|
4.84 %
|
|
4.81 %
|
|
5.66 %
|
Other
borrowings
|
|
1
|
|
—
|
|
25,000
|
|
0.40 %
|
|
— %
|
|
1.00 %
|
Total
borrowings
|
|
523,861
|
|
515,819
|
|
553,702
|
|
0.76
%
|
|
0.76
%
|
|
1.02
%
|
Total funding
liabilities
|
|
4,922,808
|
|
4,739,783
|
|
4,390,172
|
|
0.21
%
|
|
0.22
%
|
|
0.33
%
|
Other
liabilities
|
|
90,245
|
|
94,803
|
|
110,452
|
|
|
|
|
|
|
Shareholders'
equity
|
|
545,347
|
|
552,721
|
|
521,671
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
5,558,400
|
|
$
5,387,307
|
|
$
5,022,295
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.81
%
|
|
2.75
%
|
|
3.05
%
|
Net interest
margin (fully-taxable equivalent)
|
|
2.82
%
|
|
2.76
%
|
|
3.06
%
|
Adjusted net
interest margin (fully-taxable equivalent)
(non-GAAP)
|
|
2.79
%
|
|
2.82
%
|
|
2.99
%
|
|
|
(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.
|
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,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
268,879
|
|
$
179,718
|
|
0.12 %
|
|
0.19 %
|
Investments -
taxable
|
|
1,189,895
|
|
874,823
|
|
1.66 %
|
|
2.24 %
|
Investments -
nontaxable(1)
|
|
115,169
|
|
121,302
|
|
3.30 %
|
|
3.39 %
|
Loans(2):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,412,884
|
|
1,310,160
|
|
3.64 %
|
|
3.92 %
|
Commercial(1)
|
|
330,919
|
|
381,087
|
|
3.67 %
|
|
3.97 %
|
SBA PPP
|
|
118,414
|
|
146,918
|
|
6.90 %
|
|
5.28 %
|
Municipal(1)
|
|
20,529
|
|
19,073
|
|
3.37 %
|
|
3.56 %
|
HPFC
|
|
9,808
|
|
17,000
|
|
8.15 %
|
|
8.23 %
|
Residential real
estate
|
|
1,156,698
|
|
1,085,064
|
|
3.61 %
|
|
4.05 %
|
Consumer and home
equity
|
|
250,061
|
|
312,076
|
|
4.21 %
|
|
4.48 %
|
Total
loans
|
|
3,299,313
|
|
3,271,378
|
|
3.81 %
|
|
4.11 %
|
Total
interest-earning assets
|
|
4,873,256
|
|
4,447,221
|
|
3.07
%
|
|
3.56
%
|
Other
assets
|
|
382,290
|
|
398,224
|
|
|
|
|
Total
assets
|
|
$
5,255,546
|
|
$
4,845,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
1,083,357
|
|
$
684,539
|
|
— %
|
|
— %
|
Interest
checking
|
|
1,297,695
|
|
1,289,501
|
|
0.19 %
|
|
0.35 %
|
Savings
|
|
675,533
|
|
536,014
|
|
0.04 %
|
|
0.06 %
|
Money
market
|
|
706,474
|
|
701,640
|
|
0.29 %
|
|
0.50 %
|
Certificates of
deposit
|
|
333,352
|
|
454,750
|
|
0.53 %
|
|
1.27 %
|
Total
deposits
|
|
4,096,411
|
|
3,666,444
|
|
0.16
%
|
|
0.38
%
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
282,399
|
|
242,951
|
|
0.45 %
|
|
0.60 %
|
Customer repurchase
agreements
|
|
185,246
|
|
205,890
|
|
0.31 %
|
|
0.64 %
|
Subordinated
debentures
|
|
48,605
|
|
59,228
|
|
5.19 %
|
|
5.93 %
|
Other
borrowings
|
|
3,562
|
|
58,601
|
|
0.99 %
|
|
0.89 %
|
Total
borrowings
|
|
519,812
|
|
566,670
|
|
0.85
%
|
|
1.20
%
|
Total funding
liabilities
|
|
4,616,223
|
|
4,233,114
|
|
0.24
%
|
|
0.49
%
|
Other
liabilities
|
|
96,598
|
|
108,707
|
|
|
|
|
Shareholders'
equity
|
|
542,725
|
|
503,624
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
5,255,546
|
|
$
4,845,445
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.83
%
|
|
3.07
%
|
Net interest
margin (fully-taxable equivalent)
|
|
2.84
%
|
|
3.09
%
|
Adjusted net
interest margin (fully-taxable equivalent)
(non-GAAP)
|
|
2.87
%
|
|
3.10
%
|
|
|
(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.
|
Asset Quality
Data
(unaudited)
|
|
(In
thousands)
|
|
At or For
The
Year
Ended
December 31,
2021
|
|
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)
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
2,107
|
|
$
2,576
|
|
$
2,725
|
|
$
3,637
|
|
$
3,477
|
Commercial real
estate
|
|
184
|
|
207
|
|
222
|
|
309
|
|
512
|
Commercial(2)
|
|
829
|
|
860
|
|
1,511
|
|
1,737
|
|
1,607
|
Consumer and home
equity
|
|
1,207
|
|
1,429
|
|
1,424
|
|
1,897
|
|
2,000
|
Total non-accrual
loans
|
|
4,327
|
|
5,072
|
|
5,882
|
|
7,580
|
|
7,596
|
Accruing
troubled-debt restructured loans not
included
above
|
|
2,392
|
|
2,564
|
|
2,519
|
|
2,579
|
|
2,818
|
Total
non-performing loans
|
|
6,719
|
|
7,636
|
|
8,401
|
|
10,159
|
|
10,414
|
Other real estate
owned
|
|
165
|
|
165
|
|
165
|
|
204
|
|
236
|
Total
non-performing assets
|
|
$
6,884
|
|
$
7,801
|
|
$
8,566
|
|
$
10,363
|
|
$
10,650
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
400
|
|
$
1,195
|
|
$
303
|
|
$
772
|
|
$
2,297
|
Commercial real
estate
|
|
47
|
|
—
|
|
99
|
|
177
|
|
50
|
Commercial(2)
|
|
552
|
|
557
|
|
183
|
|
425
|
|
430
|
Consumer and home
equity
|
|
509
|
|
386
|
|
214
|
|
264
|
|
440
|
Total loans 30-89
days past due
|
|
$
1,508
|
|
$
2,138
|
|
$
799
|
|
$
1,638
|
|
$
3,217
|
ACL on loans at
the beginning of the period
|
|
$
37,865
|
|
$
37,865
|
|
$
37,865
|
|
$
37,865
|
|
$
25,171
|
Impact of CECL
adoption
|
|
—
|
|
—
|
|
—
|
|
—
|
|
233
|
(Credit) provision
for loan losses
|
|
(3,817)
|
|
(5,037)
|
|
(5,306)
|
|
(1,854)
|
|
13,215
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
92
|
|
92
|
|
88
|
|
53
|
|
121
|
Commercial real
estate
|
|
—
|
|
—
|
|
—
|
|
—
|
|
103
|
Commercial(2)
|
|
799
|
|
503
|
|
406
|
|
147
|
|
1,130
|
Consumer and home
equity
|
|
273
|
|
233
|
|
213
|
|
87
|
|
484
|
Total
charge-offs
|
|
1,164
|
|
828
|
|
707
|
|
287
|
|
1,838
|
Total
recoveries
|
|
(372)
|
|
(272)
|
|
(208)
|
|
(51)
|
|
(1,084)
|
Net
charge-offs
|
|
792
|
|
556
|
|
499
|
|
236
|
|
754
|
ACL on loans at
the end of the period
|
|
$
33,256
|
|
$
32,272
|
|
$
32,060
|
|
$
35,775
|
|
$
37,865
|
Components of
ACL:
|
|
|
|
|
|
|
|
|
|
|
ACL on
loans
|
|
$
33,256
|
|
$
32,272
|
|
$
32,060
|
|
$
35,775
|
|
$
37,865
|
ACL on off-balance
sheet credit exposures(3)
|
|
3,195
|
|
3,185
|
|
2,515
|
|
2,466
|
|
2,568
|
ACL, end of
period
|
|
$
36,451
|
|
$
35,457
|
|
$
34,575
|
|
$
38,241
|
|
$
40,433
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
|
0.20 %
|
|
0.23 %
|
|
0.26 %
|
|
0.31 %
|
|
0.32 %
|
Non-performing assets
to total assets
|
|
0.13 %
|
|
0.14 %
|
|
0.17 %
|
|
0.20 %
|
|
0.22 %
|
ACL on loans to total
loans
|
|
0.97 %
|
|
0.97 %
|
|
0.98 %
|
|
1.11 %
|
|
1.18 %
|
Net charge-offs
(recoveries) to average loans (annualized)
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.03 %
|
|
0.01 %
|
|
0.03 %
|
|
0.03 %
|
|
(0.02)
%
|
Year-to-date
|
|
0.02 %
|
|
0.02 %
|
|
0.03 %
|
|
0.03 %
|
|
0.02 %
|
ACL on loans to
non-performing loans
|
|
494.95 %
|
|
422.63 %
|
|
381.62 %
|
|
352.15 %
|
|
363.60 %
|
Loans 30-89 days past
due to total loans
|
|
0.04 %
|
|
0.06 %
|
|
0.02 %
|
|
0.05 %
|
|
0.10 %
|
|
|
(1)
|
Period ended December
31, 2020, includes a $3.3 million increase upon adoption of
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
Year
Ended
|
(In
thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Net income, as
presented
|
|
$
16,491
|
|
$
14,640
|
|
$
18,278
|
|
$
69,014
|
|
$
59,486
|
Add: amortization of
core
deposit intangible assets, net of
tax(1)
|
|
130
|
|
129
|
|
135
|
|
517
|
|
539
|
Net income, adjusted
for amortization of core
deposit intangible assets
|
|
$
16,621
|
|
$
14,769
|
|
$
18,413
|
|
$
69,531
|
|
$
60,025
|
Average equity, as
presented
|
|
$
545,347
|
|
$
552,721
|
|
$
521,671
|
|
$
542,725
|
|
$
503,624
|
Less: average goodwill
and core deposit
intangible assets
|
|
(96,965)
|
|
(97,128)
|
|
(97,622)
|
|
(97,211)
|
|
(97,880)
|
Average tangible
equity
|
|
$
448,382
|
|
$
455,593
|
|
$
424,049
|
|
$
445,514
|
|
$
405,744
|
Return on average
equity
|
|
12.00 %
|
|
10.51 %
|
|
13.94 %
|
|
12.72 %
|
|
11.81 %
|
Return on average
tangible equity
|
|
14.71 %
|
|
12.86 %
|
|
17.27 %
|
|
15.61 %
|
|
14.79 %
|
(1)
Assumed a 21% tax rate.
|
|
Efficiency
Ratio:
|
|
|
For
the
Three Months
Ended
|
|
For
the
Year
Ended
|
(In
thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Non-interest expense,
as presented
|
|
$
26,968
|
|
$
26,263
|
|
$
26,692
|
|
$
103,720
|
|
$
99,983
|
Less: legal
settlement
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,200)
|
Less prepayment fees
on borrowings
|
|
—
|
|
—
|
|
—
|
|
(514)
|
|
—
|
Adjusted non-interest
expense
|
|
$
26,968
|
|
$
26,263
|
|
$
26,692
|
|
$
103,206
|
|
$
98,783
|
Net interest income,
as presented
|
|
$
36,797
|
|
$
34,746
|
|
$
35,461
|
|
$
137,436
|
|
$
136,307
|
Add: effect of
tax-exempt income(1)
|
|
224
|
|
228
|
|
290
|
|
988
|
|
1,155
|
Non-interest income,
as presented
|
|
12,101
|
|
11,099
|
|
14,331
|
|
49,735
|
|
50,490
|
Adjusted net interest
income plus non-
interest income
|
|
$
49,122
|
|
$
46,073
|
|
$
50,082
|
|
$
188,159
|
|
$
187,952
|
GAAP efficiency
ratio
|
|
55.15 %
|
|
57.29 %
|
|
53.61 %
|
|
55.41 %
|
|
53.52 %
|
Non-GAAP efficiency
ratio
|
|
54.90 %
|
|
57.00 %
|
|
53.30 %
|
|
54.85 %
|
|
52.56 %
|
(1) Assumed a
21% tax rate.
|
|
Earnings before
Income Taxes and Provision, and Earnings before Income Taxes,
Provision and SBA PPP Loan Income:
|
|
|
For
the
Three Months
Ended
|
|
For
the
Year
Ended
|
(In
thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Net income, as
presented
|
|
$
16,491
|
|
$
14,640
|
|
$
18,278
|
|
$
69,014
|
|
$
59,486
|
Add: provision
(credit) for credit losses
|
|
1,230
|
|
939
|
|
258
|
|
(3,190)
|
|
12,418
|
Add: income tax
expense
|
|
4,209
|
|
4,003
|
|
4,564
|
|
17,627
|
|
14,910
|
Earnings before
income taxes and provision
for credit losses
|
|
$
21,930
|
|
$
19,582
|
|
$
23,100
|
|
$
83,451
|
|
$
86,814
|
Less: SBA PPP loan
income
|
|
(2,684)
|
|
(1,950)
|
|
(3,687)
|
|
(8,170)
|
|
(7,750)
|
Earnings before
income taxes, provision for
credit losses and SBA PPP loan income
|
|
$
19,246
|
|
$
17,632
|
|
$
19,413
|
|
$
75,281
|
|
$
79,064
|
|
Adjusted Yield
on Interest-Earning Assets:
|
|
|
For
the
Three Months
Ended
|
|
For
the
Year
Ended
|
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Yield on
interest-earning assets, as presented
|
|
3.02 %
|
|
2.97 %
|
|
3.38 %
|
|
3.07 %
|
|
3.56 %
|
Add: effect of excess
liquidity on yield on
interest-earning assets
|
|
0.16 %
|
|
0.16 %
|
|
0.15 %
|
|
0.13 %
|
|
0.09 %
|
Less: effect of SBA
PPP loans on yield on
interest-earning assets
|
|
(0.17) %
|
|
(0.09) %
|
|
(0.19) %
|
|
(0.10) %
|
|
(0.06) %
|
Adjusted yield on
interest-earning assets
|
|
3.01 %
|
|
3.04 %
|
|
3.34 %
|
|
3.10 %
|
|
3.59 %
|
|
Adjusted Net
Interest Margin (Fully-Taxable Equivalent):
|
|
|
For
the
Three Months
Ended
|
|
For
the
Year
Ended
|
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Net interest margin
(fully-taxable
equivalent), as presented
|
|
2.82 %
|
|
2.76 %
|
|
3.06 %
|
|
2.84 %
|
|
3.09 %
|
Add: effect of excess
liquidity on net
interest margin (fully-taxable
equivalent)
|
|
0.15 %
|
|
0.15 %
|
|
0.13 %
|
|
0.13 %
|
|
0.08 %
|
Less: effect of SBA
PPP loans on net
interest margin (fully-taxable
equivalent)
|
|
(0.18) %
|
|
(0.09) %
|
|
(0.20) %
|
|
(0.10) %
|
|
(0.07) %
|
Adjusted net interest
margin (fully-taxable equivalent)
|
|
2.79 %
|
|
2.82 %
|
|
2.99 %
|
|
2.87 %
|
|
3.10 %
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
(In thousands,
except number of shares and per share data)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$
541,294
|
|
$
545,984
|
|
$
529,314
|
Less: goodwill and
core deposit intangible assets
|
|
(96,885)
|
|
(97,049)
|
|
(97,540)
|
Tangible
shareholders' equity
|
|
$
444,409
|
|
$
448,935
|
|
$
431,774
|
Shares outstanding at
period end
|
|
14,739,956
|
|
14,849,327
|
|
14,909,097
|
Book value per
share
|
|
$
36.72
|
|
$
36.77
|
|
$
35.50
|
Tangible book value
per share
|
|
$
30.15
|
|
$
30.23
|
|
$
28.96
|
Tangible Common
Equity Ratio:
|
Total
assets
|
|
$
5,500,356
|
|
$
5,502,902
|
|
$
4,898,745
|
Less: goodwill and
core deposit intangible assets
|
|
(96,885)
|
|
(97,049)
|
|
(97,540)
|
Tangible
assets
|
|
$
5,403,471
|
|
$
5,405,853
|
|
$
4,801,205
|
Common equity
ratio
|
|
9.84 %
|
|
9.92 %
|
|
10.81 %
|
Tangible common
equity ratio
|
|
8.22 %
|
|
8.30 %
|
|
8.99 %
|
|
|
Core
Deposits:
|
(In
thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
Total
deposits
|
|
$
4,608,889
|
|
$
4,605,180
|
|
$
4,005,244
|
Less: certificates of
deposit
|
|
(309,648)
|
|
(323,395)
|
|
(357,666)
|
Less: brokered
deposits
|
|
(208,468)
|
|
(288,975)
|
|
(283,567)
|
Core
deposits
|
|
$
4,090,773
|
|
$
3,992,810
|
|
$
3,364,011
|
|
|
Average Core
Deposits:
|
|
|
For
the
Three Months
Ended
|
|
For
the
Year
Ended
|
(In
thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
Total average
deposits
|
|
$
4,398,947
|
|
$
4,223,964
|
|
$
3,836,470
|
|
$
4,096,411
|
|
$
3,666,444
|
Less: average
certificates of deposit
|
|
(315,908)
|
|
(327,802)
|
|
(373,364)
|
|
(333,352)
|
|
(454,750)
|
Average core
deposits
|
|
$
4,083,039
|
|
$
3,896,162
|
|
$
3,463,106
|
|
$
3,763,059
|
|
$
3,211,694
|
|
|
Total loans,
excluding SBA PPP loans:
|
(In
thousands)
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
Total loans, as
presented
|
|
$
3,431,474
|
|
$
3,315,303
|
|
$
3,219,822
|
Less: SBA PPP
loans
|
|
(35,953)
|
|
(81,959)
|
|
(135,095)
|
Total loans,
excluding SBA PPP loans
|
|
$
3,395,521
|
|
$
3,233,344
|
|
$
3,084,727
|
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