Balance Sheet and Asset Quality Remain
Strong
CAMDEN,
Maine, July 25, 2023 /PRNewswire/ -- Camden
National Corporation (NASDAQ: CAC; "Camden National" or the
"Company"), a $5.8 billion bank
holding company headquartered in Camden,
Maine, reported net income of $12.4
million and diluted earnings per share of ("EPS") of
$0.85 for the second quarter of 2023,
decreases of 3% and 2%, respectively, compared to the first quarter
of 2023. The Company's second quarter operating results were
impacted by continued rising short-term interest rates driving
higher deposit and funding costs and compressing net interest
margin 14 basis points on a linked quarter basis. The Company's
return on average equity was 10.66% and return on average tangible
equity (non-GAAP) was 13.55% for the second quarter of 2023,
compared to 11.16% and 14.21%, respectively, for the first quarter
of 2023.
"Camden National is well-positioned to weather the current
turbulent markets, highlighted by prolonged and steep yield curve
inversion that has caused significant profitability pressure across
the banking industry. Our strong capital levels, asset quality, and
reserves provide us with stability for the future," said
Gregory A. Dufour, President and
Chief Executive Officer. "As I shared last quarter, our short-term
organizational priorities continue to be centered around deposits
and net interest margin optimization and maintaining our strong
asset quality through proactive management and early identification
of any credit-related trends."
For the first six months of 2023, the Company reported net
income of $25.1 million and EPS of
$1.72, decreases of 21% and 20%,
respectively, compared to the six months ended June 30, 2022. These decreases were primarily
driven by the change in interest rates between periods, highlighted
by a Federal Funds Interest Rate range of 5.00% - 5.25% at
June 30, 2023, compared to a range of
1.50% - 1.75% at June 30, 2022, as
well as the write-off of a $1.8
million Signature Bank corporate bond in the first quarter
of 2023.
At June 30, 2023, the Company's
regulatory capital ratios were well in excess of regulatory
requirements; nonperforming assets were 0.09% of total assets;
loans 30-89 days past due were 0.05% of total loans; and total
deposits increased 1% from the first quarter of 2023.
_________________________________
|
1
Uncollateralized deposits are customer deposits for which the
Company has not pledged any of its assets, including investment
securities, or provided any other type of guarantee.
|
SECOND QUARTER 2023 HIGHLIGHTS
- Net income decreased $338,000, or
3%, and diluted EPS decreased $0.02,
or 2%, compared to the first quarter.
- Net interest margin decreased 14 basis points to 2.40%,
compared to the first quarter of 2023, as funding costs increased
36 basis points, partially offset by an increase in
interest-earning asset yields of 20 basis points.
- Loans and deposits each grew 1% during the second quarter of
2023.
- Asset quality remained strong, with non-performing assets
totaling 0.09% of total assets and 0.13% of total loans, and loans
30-89 days delinquent remained 0.05% to total loans, and, as a
result, the allowance for credit losses ("ACL") on loans to total
loans ratio remained stable at 0.90% of total loans, a decrease of
1 basis point from March 31,
2023.
- Uninsured and uncollateralized1 deposits at
June 30, 2023 and March 31, 2023 totaled $699.1 million and $691.5
million, respectively, and were 15% of total deposits at
each date.
- Available liquidity sources totaled $1.4
billion, or 2.0 times, uninsured and uncollateralized
deposits, at June 30, 2023, compared
to $1.3 billion, or 1.9 times, at
March 31, 2023.
- Loan-to-deposit ratio was 88% at both June 30, 2023 and March
31, 2023.
- Announced a cash dividend of $0.42 per share, representing an annualized
dividend yield of 5.42%, based on the Company's closing share price
of $30.97, as reported by NASDAQ on
June 30, 2023, payable on
July 31, 2023, to shareholders of
record on July 14, 2023.
- Repurchased 65,692 shares of common stock at an average price
of $33.36 per share representing
capital usage of $2.2 million.
FINANCIAL CONDITION
As of June 30, 2023, total assets
were $5.8 billion, an increase of
$78.2 million, since December 31, 2022.
Loans
Loans at June 30, 2023, totaled
$4.1 billion, an increase of 3% since
December 31, 2022 and a 1% increase
since March 31, 2023.
- Residential real estate loans grew 4% and commercial real
estate loans grew 3% in the first six months of 2023.
- Residential real estate loan production decreased 56% for the
first six months of 2023 in comparison to the same period in 2022.
In light of the current interest rate environment, the Company has
made a deliberate shift in its loan pricing strategy in 2023 to
help slow on-books loan production compared to the previous years
and to drive more residential loan sales. The Company sold 37% of
residential mortgages it originated through the six months ended
June 30, 2023, compared to 21% for
the same period in 2022.
- At June 30, 2023, the committed
retail and commercial loan portfolio pipelines totaled $62.7 million and $40.4
million, respectively. As of June 30,
2023, 50% of the committed residential real estate loan
portfolio was designated for sale.
Investments
Investments totaled $1.2 billion
as of June 30, 2023, a decrease of 4%
since December 31, 2022, and
represented 21% and 22% of total assets as of June 30, 2023 and December
31, 2022, respectively.
- The Company continues to use investment cash flows to support
higher-yielding loan growth and to pay-down borrowings.
- As of June 30, 2023, the
Company's debt securities designated as available-for-sale ("AFS")
and held-to-maturity ("HTM") were in a net unrealized loss position
of $138.7 million, compared to
$141.5 million as of December 31, 2022.
- As of June 30, 2023, the
weighted-average life and duration of the Company's debt securities
were 7.7 years and 5.7 years, respectively, compared to 7.8 years
and 5.8 years at December 31,
2022.
Deposits
As of June 30, 2023, deposits
totaled $4.7 billion, a decrease of
3% since December 31, 2022, and an
increase of 1% since March 31, 2023.
While we are not able to predict deposit activity with certainty,
recent data suggests we are beginning to receive seasonal deposit
inflows as anticipated, as local market activity picks up during
the summer months.
- Deposit balances were down $133.2
million for the first half of 2023 driven by lower balances
within checking and savings of $347.1
million, or 9%, partially offset by higher money market and
certificates of deposits ("CD") balances of $170.9 million, or 17%, and brokered deposits of
$43.0 million, or 24%. Rising
short-term interest rates and competitive pressures for deposits
continued throughout the second quarter of 2023 pushing many
depositors to redeploy excess liquidity into products yielding
higher interest rates.
- Deposit balances increased $51.0
million in the second quarter of 2023 led by CDs and money
market balances which grew $89.2
million, or 25%, and $15.8
million, or 2%, respectively, partially offset by lower
savings and checking balances of $47.8
million, or 7%, and $14.4
million, or less than 1%, respectively. The Company has used
a mix of CD and money market promotions throughout the second
quarter of 2023 to attract and retain deposits.
- As of June 30, 2023 and
December 31, 2022, uninsured and
uncollateralized deposits totaled 15% of total deposits and the
Company had available liquidity of 2.0 times and 1.9 times total
uninsured and uncollateralized deposits, respectively.
- As of June 30, 2023 the Company
had $1.4 billion in available
liquidity from different sources, or 30% of total deposits (not
including brokered market availability).
- The loan-to-deposit ratio was 88% as of June 30, 2023 compared to 83% at December 31, 2022.
Borrowings
As of June 30, 2023, borrowings
totaled $492.5 million, an increase
of $183.0 million, or 59%, since
December 31, 2022, and a decrease of
$38.1 million, or 7%, since
March 31, 2023.
- In the second quarter of 2023, the Company borrowed
$135.0 million from the Bank Term
Funding Program ("BTFP") for a period of one year at a fixed rate
of 4.70%. Under the program, the Company may prepay this borrowing
at any time without penalty and the borrowing is secured by the
Company's investment securities at par. The Company utilized the
BTFP to manage borrowing costs while obtaining favorable prepayment
terms.
- Federal Home Loan Bank ("FHLB") borrowings were used to
supplement funding needed for modest asset growth for the first six
months of 2023 of 1%.
Derivatives
The Company executed five fixed-for-floating interest rate swaps
on a pool of residential mortgage loans through the first six
months of 2023 for a total of $375.0
million of notional, including one in the second quarter for
$75.0 million of notional.
- These five derivatives contributed $1.7
million of interest income through the six months ended
June 30, 2023, including $1.2 million for the second quarter of 2023.
- In early July 2023, the Company
executed a $75.0 million
floating-for-fixed interest rate swap on borrowings for a period of
18 months.
Capital
As of June 30, 2023, the Company's
regulatory capital ratios were each well in excess of regulatory
capital requirements. The Company's common equity ratio was 8.13%,
and its tangible common equity ratio (non-GAAP) was 6.57%, compared
to 8.13% and 6.56%, respectively, as of March 31, 2023.
The Company announced a cash dividend of $0.42 per share, payable on July 31, 2023, to shareholders of record on
July 14, 2023, representing an
annualized dividend yield of 5.42%, based on the Company's closing
share price of $30.97, as reported by
NASDAQ on June 30, 2023.
The Company has repurchased 65,692 shares of its common stock at
an average price of $33.36 per share
through the first six months of 2023.
ASSET QUALITY
The Company's credit quality within its loan portfolio remained
very strong throughout the second quarter of 2023. The Company
continues to actively monitor its loan portfolio, particularly its
commercial real estate loan portfolio, for signs of credit
stress.
- Loans 30-89 days past due were 0.05% of total loans at
June 30, 2023 and March 31, 2023, and 0.06% of total loans at
December 31, 2022.
- Non-performing loans were 0.13% of total loans at June 30, 2023, March 31,
2023 and December 31,
2022.
- Annualized net charge-offs to average loans were 0.04% for the
second quarter of 2023, 0.02% for the first quarter of 2023, and
0.03% for the fourth quarter of 2022. Higher net charge-offs for
the second quarter of 2023 in comparison to the previous two
quarters was not the result of any systemic trends within the loan
portfolio.
Each quarter, the Company evaluates its investment portfolio for
potential credit risk, and, through the evaluation of its holdings
there were no credit concerns identified within its investment
portfolio as of June 30, 2023. In the
first quarter of 2023 the Company wrote-off one corporate bond in
Signature Bank for $1.8 million.
- At June 30, 2023, the book value
of the Company's corporate bonds totaled $44.7 million, of which 79% carry an
investment-grade credit rating and the remaining are held in
non-rated community banks within our markets. As of June 30, 2023, the corporate bond portfolio was
comprised of 20 different companies, of which 18 were differing
banks. The banks in the portfolio range from the largest U.S. banks
to community banks, with the largest exposure being to a global
systemically important bank, or "G-SIB", with a book value of
$6.7 million as of June 30, 2023.
- At June 30, 2023, the book value
of the Company's municipal bonds totaled $105.2 million and all carry an investment-grade
credit rating.
FINANCIAL OPERATING RESULTS (Q2 2023 vs. Q1 2023)
Net income for the second quarter of 2023 was $12.4 million, a decrease of $338,000, or 3%, compared to the first quarter of
2023. Excluding income taxes and provision for credit losses,
adjusted earnings (non-GAAP) for the second quarter of 2023 was
$15.7 million, a decrease of
$2.3 million, or 13%, compared to
last quarter.
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2023 was
$32.7 million, a decrease of
$1.6 million, or 5%, compared to the
first quarter of 2023. The decrease was driven by further net
interest margin compression of 14 basis points during the second
quarter of 2023 to 2.40%.
- Funding costs rose 36 basis points on a linked quarter basis to
1.81% for the second quarter of 2023. The increase reflects the
impact of the increases in the Federal Funds Interest Rate, which
totaled 75 basis points through the first six months of 2023. The
increase in short-term interest rates has put a premium on deposits
across our markets and has led to a very competitive marketplace.
Our deposit beta, excluding brokered deposits, for the second
quarter of 2023 was 53.9%, and from January
1, 2022 to June 30, 2023 was
47.5%.
- Yield on average interest-earning assets rose 20 basis points
on a linked quarter basis to 4.12% for the second quarter of 2023
as our loan yield increased 23 basis points over this same period.
The increase reflects the repricing of existing loans, higher loan
pricing of new originations and continued redeployment of
investment cash flows to fund loan growth.
Provision for Credit Losses
Asset quality remained very strong in the second quarter of
2023, although the risk of a macroeconomic slow-down in future
periods remains consistent with the previous quarter's forecast.
The Company continues to monitor any indicators of potential credit
risk that would require additional ACL coverage should we enter
into an economic slow-down. At June 30,
2023, the ACL on loans was 0.90% of total loans and was 7.1
times total non-performing loans, compared to 0.91% and 7.3 times,
respectively, at March 31, 2023, and
0.92% and 7.2 times, respectively, at December 31, 2022.
The change in provision for credit losses between periods is
highlighted in the table below:
($ in
thousands)
|
|
Q2
2023
|
|
Q1
2023
|
|
Increase
/
(Decrease)
|
Provision for credit
losses - loans
|
|
$
305
|
|
$
439
|
|
$
(134)
|
Credit for credit
losses - off-balance sheet
credit exposures
|
|
(202)
|
|
(275)
|
|
73
|
Provision for credit
losses - HTM debt
securities
|
|
—
|
|
1,838
|
|
(1,838)
|
Provision for credit
losses
|
|
$
103
|
|
$
2,002
|
|
$
(1,899)
|
In the first quarter of 2023, the Company wrote-off its
Signature Bank corporate bond totaling $1.8
million and recognized the write-off as a provision for
credit losses on HTM debt securities.
Non-Interest Income
Non-interest income for the second quarter of 2023 was
$10.1 million, an increase of
$244,000, or 2%, over the first
quarter of 2023. The increases were across all categories with the
exception of other income, which was lower primarily due to less
back-to-back loan swap fee income of $280,000, and mortgage banking income, which was
lower primarily due to the change in fair value of the residential
mortgage loan pipeline on a linked-quarter basis.
- The Company sold $36.0 million,
or 34%, of its residential mortgage originations in the second
quarter of 2023, compared to $35.1
million, or 40%, in the previous quarter. Over the coming
quarters, the Company anticipates its sale volume as a percent of
total production will increase as it manages its on-books
production in the current interest rate environment.
Non-Interest Expense
Non-interest expense for the second quarter of 2023 was
$27.1 million, an increase of
$978,000, or 4%, compared to the
first quarter of 2023. The Company's GAAP efficiency ratio and
non-GAAP efficiency ratio for the second quarter of 2023 was 63.42%
and 63.07%, respectively, compared to 59.27% and 58.96% for the
first quarter of 2023. The increase in the GAAP and non-GAAP
efficiency ratios on a linked quarter-basis reflects the decrease
in revenues from net interest income and increased expenses. For
the second quarter of 2023, the Company's overhead ratio, which
compares annualized non-interest expense for the quarter to average
assets, was 1.90%, compared to 1.84% for the first quarter of
2023.
- Salaries and employee benefits costs increased 5% on a linked
quarter basis, primarily due to higher incentive compensation
expense due to the timing of annual incentive compensation true-ups
that were paid out last quarter.
- Consulting and other professional fees increased by
$320,000 on a linked quarter basis,
primarily due timing of the annual equity award grant to the
Company's independent directors in the second quarter of each
year.
- Net occupancy costs decreased by $227,000 on a linked quarter basis, primarily due
to seasonality between periods as we generally experience higher
heating and related costs in the first quarter during the winter
months within our markets.
Q2 2023 CONFERENCE CALL
Camden National will host a conference call and webcast at
3:00 p.m., Eastern Time, on
Tuesday, July 25, 2023 to discuss its
second quarter 2023 financial results and outlook. Participants
should dial into the call 10 - 15 minutes before it begins.
Information about the conference call is as follows:
Live dial-in (Domestic):
(833) 470-1428
Live dial-in (All other locations): (929)
526-1599
Participant access code:
366261
Live webcast:
https://events.q4inc.com/attendee/859163792
A link to the live webcast will be available on Camden
National's website under "About — Investor Relations" at
CamdenNational.bank 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
$5.8 billion in assets and
approximately 630 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 57 banking centers, 24/7
live phone support, 68 ATMs, and additional lending offices in
New Hampshire and Massachusetts. For the past four years,
Camden National Bank was named a
Customer Experience (CX) Leader by Coalition Greenwich, a division
of CRISIL. 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. Member FDIC. Equal
Housing Lender.
Comprehensive wealth management, investment and financial
planning services are delivered by Camden National Wealth
Management. To learn more, visit CamdenNational.bank
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; inflation; ongoing competition in labor
markets and employee turnover; deterioration in the value of Camden
National's investment securities; changes in consumer spending and
savings habits; 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; turmoil and
volatility in the financial services industry, including failures
or rumors of failures of other depository institutions, including
Camden National, which could affect Camden National's ability to
attract and retain depositors, and could affect the ability of
financial services providers, including the Company, to borrow or
raise capital; actions taken by governmental agencies to stabilize
the financial system and the effectiveness of such actions; changes
to regulatory capital requirements in response to recent
developments affecting the banking sector; 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, 2022, as
updated by other filings with the Securities and Exchange
Commission ("SEC"). Further, statements regarding the potential
effects of the war in Ukraine, the
COVID-19 pandemic and other notable and global current events on
the Company's business, financial condition, liquidity and results
of operations may constitute forward-looking statements and are
subject to the risk that the actual effects may differ, possible
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 the Company's
control. 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. 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 measures 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. Reconciliations to the comparable GAAP
financial measures 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 is presented for illustrative purposes only.
Selected Financial
Data
(unaudited)
|
|
|
|
|
|
|
|
At or For
The
Three Months
Ended
|
|
At or For
The
Six Months
Ended
|
(In thousands,
except number of shares and per share
data)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
Financial Condition
Data
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
1,211,679
|
|
$
1,249,882
|
|
$
1,352,882
|
|
$
1,211,679
|
|
$
1,352,882
|
Loans
|
|
4,112,271
|
|
4,073,108
|
|
3,724,227
|
|
4,112,271
|
|
3,724,227
|
Allowance for credit
losses on loans
|
|
36,983
|
|
37,134
|
|
34,244
|
|
36,983
|
|
34,244
|
Total assets
|
|
5,750,001
|
|
5,716,605
|
|
5,466,496
|
|
5,750,001
|
|
5,466,496
|
Deposits
|
|
4,693,745
|
|
4,642,734
|
|
4,527,061
|
|
4,693,745
|
|
4,527,061
|
Borrowings
|
|
492,513
|
|
530,649
|
|
415,833
|
|
492,513
|
|
415,833
|
Shareholders'
equity
|
|
467,376
|
|
464,874
|
|
446,381
|
|
467,376
|
|
446,381
|
Operating and Per
Share Data
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
12,389
|
|
$
12,727
|
|
$
15,026
|
|
$
25,116
|
|
$
31,821
|
Earnings before income
taxes and provision for credit
losses(1)
|
|
15,657
|
|
17,981
|
|
21,119
|
|
33,638
|
|
41,100
|
Diluted earnings per
share
|
|
0.85
|
|
0.87
|
|
1.02
|
|
1.72
|
|
2.15
|
Cash dividends declared
per share
|
|
0.42
|
|
0.42
|
|
0.40
|
|
0.84
|
|
0.80
|
Book value per
share
|
|
32.11
|
|
31.87
|
|
30.52
|
|
32.11
|
|
30.52
|
Tangible book value per
share(1)
|
|
25.52
|
|
25.28
|
|
23.92
|
|
25.52
|
|
23.92
|
Profitability
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.87 %
|
|
0.91 %
|
|
1.11 %
|
|
0.89 %
|
|
1.18 %
|
Return on average
equity
|
|
10.66 %
|
|
11.16 %
|
|
13.16 %
|
|
10.91 %
|
|
13.06 %
|
Return on average
tangible equity(1)
|
|
13.55 %
|
|
14.21 %
|
|
16.83 %
|
|
13.88 %
|
|
16.38 %
|
GAAP efficiency
ratio
|
|
63.42 %
|
|
59.27 %
|
|
55.70 %
|
|
61.31 %
|
|
56.21 %
|
Efficiency
ratio(1)
|
|
63.07 %
|
|
58.96 %
|
|
55.42 %
|
|
60.99 %
|
|
55.94 %
|
Net interest margin
(fully-taxable equivalent)
|
|
2.40 %
|
|
2.54 %
|
|
2.84 %
|
|
2.47 %
|
|
2.85 %
|
Asset Quality
Ratios
|
|
|
|
|
|
|
|
|
|
|
ACL on loans to total
loans
|
|
0.90 %
|
|
0.91 %
|
|
0.92 %
|
|
0.90 %
|
|
0.92 %
|
Non-performing assets
to total assets
|
|
0.09 %
|
|
0.09 %
|
|
0.11 %
|
|
0.09 %
|
|
0.11 %
|
Annualized net
charge-offs (recoveries) to average loans
|
|
0.04 %
|
|
0.02 %
|
|
— %
|
|
0.03 %
|
|
0.02 %
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
Common equity
ratio
|
|
8.13 %
|
|
8.13 %
|
|
8.17 %
|
|
8.13 %
|
|
8.17 %
|
Tangible common equity
ratio(1)
|
|
6.57 %
|
|
6.56 %
|
|
6.51 %
|
|
6.57 %
|
|
6.51 %
|
Tier 1 leverage capital
ratio
|
|
9.29 %
|
|
9.24 %
|
|
9.25 %
|
|
9.29 %
|
|
9.25 %
|
Common equity tier 1
risk-based capital ratio
|
|
11.90 %
|
|
11.90 %
|
|
12.04 %
|
|
11.90 %
|
|
12.04 %
|
Total risk-based
capital ratio
|
|
13.92 %
|
|
13.95 %
|
|
14.15 %
|
|
13.92 %
|
|
14.15 %
|
|
|
|
|
|
|
|
|
|
|
|
(1) This is
a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP
Financial Measures (unaudited)."
|
Consolidated
Statements of Condition Data
(unaudited)
|
|
|
|
|
|
|
|
(In thousands)
|
|
June 30,
2023
|
|
December 31,
2022
|
|
June 30,
2022
|
ASSETS
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$
94,278
|
|
$
75,427
|
|
$
76,423
|
Investments:
|
|
|
|
|
|
|
Trading
securities
|
|
4,235
|
|
3,990
|
|
3,808
|
Available-for-sale
securities, at fair value (amortized cost of $757,959, $796,960,
and
$864,600 respectively)
|
|
658,205
|
|
695,875
|
|
788,123
|
Held-to-maturity
securities, at amortized cost (fair value of $495,590, $506,193
and
$537,538 respectively)
|
|
534,584
|
|
546,583
|
|
546,520
|
Other
investments
|
|
14,655
|
|
12,713
|
|
14,431
|
Total
investments
|
|
1,211,679
|
|
1,259,161
|
|
1,352,882
|
Loans held for sale, at
fair value (book value of $11,685, $5,259, and $3,380
respectively)
|
|
12,036
|
|
5,197
|
|
3,340
|
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,677,002
|
|
1,624,937
|
|
1,532,914
|
Commercial
|
|
421,977
|
|
429,499
|
|
421,220
|
SBA PPP
|
|
460
|
|
632
|
|
2,509
|
Residential real
estate
|
|
1,760,443
|
|
1,700,266
|
|
1,517,239
|
Consumer and home
equity
|
|
252,389
|
|
255,019
|
|
250,345
|
Total loans
|
|
4,112,271
|
|
4,010,353
|
|
3,724,227
|
Less: allowance for
credit losses on loans
|
|
(36,983)
|
|
(36,922)
|
|
(34,244)
|
Net
loans
|
|
4,075,288
|
|
3,973,431
|
|
3,689,983
|
Goodwill and core
deposit intangible assets
|
|
95,964
|
|
96,260
|
|
96,573
|
Other assets
|
|
260,756
|
|
262,374
|
|
247,295
|
Total
assets
|
|
$
5,750,001
|
|
$
5,671,850
|
|
$
5,466,496
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
1,015,184
|
|
$
1,141,753
|
|
$
1,228,146
|
Interest
checking
|
|
1,627,250
|
|
1,763,850
|
|
1,448,408
|
Savings and money
market
|
|
1,377,791
|
|
1,439,622
|
|
1,470,720
|
Certificates of
deposit
|
|
449,265
|
|
300,451
|
|
296,408
|
Brokered
deposits
|
|
224,255
|
|
181,253
|
|
83,379
|
Total
deposits
|
|
4,693,745
|
|
4,826,929
|
|
4,527,061
|
Short-term
borrowings
|
|
448,182
|
|
265,176
|
|
371,502
|
Junior subordinated
debentures
|
|
44,331
|
|
44,331
|
|
44,331
|
Accrued interest and
other liabilities
|
|
96,367
|
|
84,136
|
|
77,221
|
Total
liabilities
|
|
5,282,625
|
|
5,220,572
|
|
5,020,115
|
Commitments and
Contingencies
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Common stock, no par
value: authorized 40,000,000 shares, issued and outstanding
14,554,778, 14,567,325 and 14,625,041 shares on June
30, 2023, December 31, 2022
and June 30, 2022, respectively
|
|
114,302
|
|
115,069
|
|
116,825
|
Retained
earnings
|
|
475,008
|
|
462,164
|
|
444,522
|
Accumulated other
comprehensive loss:
|
|
|
|
|
|
|
Net unrealized loss on
debt securities, net of tax
|
|
(127,829)
|
|
(131,539)
|
|
(116,037)
|
Net unrealized gain on
cash flow hedging derivative instruments, net of tax
|
|
6,213
|
|
5,891
|
|
3,985
|
Net unrecognized loss
on postretirement plans, net of tax
|
|
(318)
|
|
(307)
|
|
(2,914)
|
Total accumulated
other comprehensive loss
|
|
(121,934)
|
|
(125,955)
|
|
(114,966)
|
Total shareholders'
equity
|
|
467,376
|
|
451,278
|
|
446,381
|
Total liabilities
and shareholders' equity
|
|
$
5,750,001
|
|
$
5,671,850
|
|
$
5,466,496
|
Consolidated
Statements of Income Data
(unaudited)
|
|
|
|
|
|
|
|
For
The
Three Months
Ended
|
|
For
The
Six Months
Ended
|
(In thousands, except per
share data)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
48,645
|
|
$
45,332
|
|
$
33,121
|
|
$
93,977
|
|
$
65,156
|
Taxable interest on
investments
|
|
5,852
|
|
5,963
|
|
5,850
|
|
11,815
|
|
11,639
|
Nontaxable interest on
investments
|
|
762
|
|
763
|
|
770
|
|
1,525
|
|
1,534
|
Dividend
income
|
|
267
|
|
219
|
|
106
|
|
486
|
|
212
|
Other interest
income
|
|
529
|
|
448
|
|
183
|
|
977
|
|
347
|
Total interest
income
|
|
56,055
|
|
52,725
|
|
40,030
|
|
108,780
|
|
78,888
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
19,245
|
|
15,832
|
|
2,510
|
|
35,077
|
|
4,343
|
Interest on
borrowings
|
|
3,587
|
|
2,085
|
|
454
|
|
5,672
|
|
585
|
Interest on junior
subordinated debentures
|
|
533
|
|
528
|
|
532
|
|
1,061
|
|
1,061
|
Total interest
expense
|
|
23,365
|
|
18,445
|
|
3,496
|
|
41,810
|
|
5,989
|
Net interest
income
|
|
32,690
|
|
34,280
|
|
36,534
|
|
66,970
|
|
72,899
|
Provision for credit
losses
|
|
103
|
|
2,002
|
|
2,345
|
|
2,105
|
|
1,270
|
Net interest income
after provision for credit losses
|
|
32,587
|
|
32,278
|
|
34,189
|
|
64,865
|
|
71,629
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Debit card
income
|
|
3,079
|
|
2,938
|
|
3,213
|
|
6,017
|
|
6,137
|
Service charges on
deposit accounts
|
|
1,935
|
|
1,762
|
|
1,931
|
|
3,697
|
|
3,764
|
Income from fiduciary
services
|
|
1,775
|
|
1,600
|
|
1,681
|
|
3,375
|
|
3,312
|
Brokerage and insurance
commissions
|
|
1,152
|
|
1,093
|
|
1,272
|
|
2,245
|
|
2,266
|
Mortgage banking
income, net
|
|
590
|
|
716
|
|
1,517
|
|
1,306
|
|
2,551
|
Bank-owned life
insurance
|
|
613
|
|
592
|
|
569
|
|
1,205
|
|
1,145
|
Net loss on sale of
securities
|
|
—
|
|
—
|
|
(9)
|
|
—
|
|
(9)
|
Other income
|
|
966
|
|
1,165
|
|
967
|
|
2,131
|
|
1,800
|
Total non-interest
income
|
|
10,110
|
|
9,866
|
|
11,141
|
|
19,976
|
|
20,966
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
15,288
|
|
14,573
|
|
15,402
|
|
29,861
|
|
30,908
|
Furniture, equipment
and data processing
|
|
3,179
|
|
3,211
|
|
3,202
|
|
6,390
|
|
6,334
|
Net occupancy
costs
|
|
1,852
|
|
2,079
|
|
1,806
|
|
3,931
|
|
3,950
|
Debit card
expense
|
|
1,262
|
|
1,201
|
|
1,134
|
|
2,463
|
|
2,200
|
Consulting and
professional fees
|
|
1,375
|
|
1,055
|
|
1,293
|
|
2,430
|
|
2,300
|
Regulatory
assessments
|
|
868
|
|
845
|
|
515
|
|
1,713
|
|
1,170
|
Amortization of core
deposit intangible assets
|
|
148
|
|
148
|
|
157
|
|
296
|
|
313
|
Other real estate owned
and collection costs (recoveries), net
|
|
4
|
|
5
|
|
38
|
|
9
|
|
(47)
|
Other
expenses
|
|
3,167
|
|
3,048
|
|
3,009
|
|
6,215
|
|
5,637
|
Total non-interest
expense
|
|
27,143
|
|
26,165
|
|
26,556
|
|
53,308
|
|
52,765
|
Income before
income tax expense
|
|
15,554
|
|
15,979
|
|
18,774
|
|
31,533
|
|
39,830
|
Income Tax
Expense
|
|
3,165
|
|
3,252
|
|
3,748
|
|
6,417
|
|
8,009
|
Net
Income
|
|
$
12,389
|
|
$
12,727
|
|
$
15,026
|
|
$
25,116
|
|
$
31,821
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.85
|
|
$
0.87
|
|
$
1.02
|
|
$
1.72
|
|
$
2.16
|
Diluted earnings per
share
|
|
0.85
|
|
0.87
|
|
1.02
|
|
1.72
|
|
2.15
|
Quarterly Average
Balance and Yield/Rate Analysis
(unaudited)
|
|
|
|
|
|
|
|
Average
Balance
|
|
Yield/Rate
|
|
|
For The Three Months
Ended
|
|
For The Three Months
Ended
|
(Dollars in
thousands)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks
and other interest-earning assets
|
|
$
27,008
|
|
$
26,018
|
|
$
51,018
|
|
4.90 %
|
|
3.89 %
|
|
0.43 %
|
Investments -
taxable
|
|
1,212,942
|
|
1,237,351
|
|
1,366,612
|
|
2.08 %
|
|
2.06 %
|
|
1.78 %
|
Investments -
nontaxable(1)
|
|
105,210
|
|
105,502
|
|
112,954
|
|
3.67 %
|
|
3.66 %
|
|
3.45 %
|
Loans(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,670,299
|
|
1,646,005
|
|
1,500,284
|
|
4.75 %
|
|
4.61 %
|
|
3.73 %
|
Commercial(1)
|
|
405,485
|
|
409,112
|
|
399,240
|
|
5.83 %
|
|
5.49 %
|
|
3.64 %
|
SBA PPP
|
|
512
|
|
594
|
|
4,696
|
|
4.27 %
|
|
2.55 %
|
|
13.88 %
|
Municipal(1)
|
|
17,484
|
|
15,997
|
|
18,633
|
|
3.98 %
|
|
3.56 %
|
|
3.13 %
|
Residential real
estate
|
|
1,748,443
|
|
1,715,192
|
|
1,457,639
|
|
4.06 %
|
|
3.78 %
|
|
3.42 %
|
Consumer and home
equity
|
|
253,308
|
|
253,760
|
|
240,967
|
|
7.53 %
|
|
7.10 %
|
|
4.26 %
|
Total loans
|
|
4,095,531
|
|
4,040,660
|
|
3,621,459
|
|
4.73 %
|
|
4.50 %
|
|
3.64 %
|
Total
interest-earning assets
|
|
5,440,691
|
|
5,409,531
|
|
5,152,043
|
|
4.12 %
|
|
3.92 %
|
|
3.11 %
|
Other assets
|
|
271,822
|
|
278,136
|
|
259,592
|
|
|
|
|
|
|
Total
assets
|
|
$
5,712,513
|
|
$
5,687,667
|
|
$
5,411,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
999,809
|
|
$
1,076,469
|
|
$
1,199,678
|
|
— %
|
|
— %
|
|
— %
|
Interest
checking
|
|
1,638,677
|
|
1,689,862
|
|
1,426,335
|
|
2.28 %
|
|
2.00 %
|
|
0.32 %
|
Savings
|
|
685,282
|
|
734,804
|
|
751,274
|
|
0.10 %
|
|
0.08 %
|
|
0.04 %
|
Money
market
|
|
692,330
|
|
699,080
|
|
707,176
|
|
2.47 %
|
|
2.20 %
|
|
0.42 %
|
Certificates of
deposit
|
|
410,272
|
|
320,209
|
|
298,335
|
|
2.55 %
|
|
1.73 %
|
|
0.44 %
|
Total
deposits
|
|
4,426,370
|
|
4,520,424
|
|
4,382,798
|
|
1.48 %
|
|
1.22 %
|
|
0.21 %
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
237,083
|
|
220,559
|
|
145,735
|
|
4.89 %
|
|
4.05 %
|
|
0.59 %
|
Customer repurchase
agreements
|
|
192,428
|
|
182,754
|
|
223,212
|
|
1.47 %
|
|
1.07 %
|
|
0.40 %
|
Junior subordinated
debentures
|
|
44,331
|
|
44,331
|
|
44,331
|
|
4.83 %
|
|
4.83 %
|
|
4.81 %
|
Other
borrowings
|
|
272,737
|
|
175,223
|
|
85,917
|
|
4.23 %
|
|
3.71 %
|
|
1.07 %
|
Total
borrowings
|
|
746,579
|
|
622,867
|
|
499,195
|
|
3.77 %
|
|
3.13 %
|
|
0.97 %
|
Total funding
liabilities
|
|
5,172,949
|
|
5,143,291
|
|
4,881,993
|
|
1.81 %
|
|
1.45 %
|
|
0.29 %
|
Other
liabilities
|
|
73,366
|
|
81,725
|
|
71,838
|
|
|
|
|
|
|
Shareholders'
equity
|
|
466,198
|
|
462,651
|
|
457,804
|
|
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
5,712,513
|
|
$
5,687,667
|
|
$
5,411,635
|
|
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.31 %
|
|
2.47 %
|
|
2.82 %
|
Net interest margin
(fully-taxable equivalent)
|
|
2.40 %
|
|
2.54 %
|
|
2.84 %
|
|
|
|
|
|
|
|
(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 Six Months
Ended
|
|
For The Six Months
Ended
|
(Dollars in
thousands)
|
|
June
30,
2023
|
|
June
30,
2022
|
|
June
30,
2023
|
|
June
30,
2022
|
Assets
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other banks and other interest-earning
assets
|
|
$
26,515
|
|
$
75,375
|
|
4.41 %
|
|
0.23 %
|
Investments -
taxable
|
|
1,225,079
|
|
1,387,971
|
|
2.07 %
|
|
1.74 %
|
Investments -
nontaxable(1)
|
|
105,355
|
|
113,982
|
|
3.67 %
|
|
3.41 %
|
Loans(2):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,658,219
|
|
1,494,824
|
|
4.68 %
|
|
3.69 %
|
Commercial(1)
|
|
407,288
|
|
386,147
|
|
5.66 %
|
|
3.59 %
|
SBA PPP
|
|
553
|
|
13,145
|
|
3.35 %
|
|
18.12 %
|
Municipal(1)
|
|
16,744
|
|
16,937
|
|
3.78 %
|
|
3.28 %
|
Residential real
estate
|
|
1,731,911
|
|
1,402,838
|
|
3.92 %
|
|
3.44 %
|
Consumer and home
equity
|
|
253,533
|
|
233,888
|
|
7.31 %
|
|
4.26 %
|
Total loans
|
|
4,068,248
|
|
3,547,779
|
|
4.61 %
|
|
3.67 %
|
Total
interest-earning assets
|
|
5,425,197
|
|
5,125,107
|
|
4.02 %
|
|
3.09 %
|
Other assets
|
|
274,961
|
|
291,236
|
|
|
|
|
Total
assets
|
|
$
5,700,158
|
|
$
5,416,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Non-interest
checking
|
|
$
1,037,927
|
|
$
1,199,567
|
|
— %
|
|
— %
|
Interest
checking
|
|
1,664,128
|
|
1,420,552
|
|
2.14 %
|
|
0.26 %
|
Savings
|
|
709,907
|
|
751,087
|
|
0.09 %
|
|
0.04 %
|
Money
market
|
|
695,687
|
|
708,708
|
|
2.33 %
|
|
0.36 %
|
Certificates of
deposit
|
|
365,489
|
|
301,510
|
|
2.19 %
|
|
0.44 %
|
Total
deposits
|
|
4,473,138
|
|
4,381,424
|
|
1.35 %
|
|
0.18 %
|
Borrowings:
|
|
|
|
|
|
|
|
|
Brokered
deposits
|
|
228,866
|
|
160,982
|
|
4.49 %
|
|
0.57 %
|
Customer repurchase
agreements
|
|
187,618
|
|
215,721
|
|
1.28 %
|
|
0.33 %
|
Junior subordinated
debentures
|
|
44,331
|
|
44,331
|
|
4.83 %
|
|
4.83 %
|
Other
borrowings
|
|
224,249
|
|
43,998
|
|
4.03 %
|
|
1.06 %
|
Total
borrowings
|
|
685,064
|
|
465,032
|
|
3.48 %
|
|
0.91 %
|
Total funding
liabilities
|
|
5,158,202
|
|
4,846,456
|
|
1.63 %
|
|
0.25 %
|
Other
liabilities
|
|
77,522
|
|
78,453
|
|
|
|
|
Shareholders'
equity
|
|
464,434
|
|
491,434
|
|
|
|
|
Total liabilities
& shareholders' equity
|
|
$
5,700,158
|
|
$
5,416,343
|
|
|
|
|
Net interest rate
spread (fully-taxable equivalent)
|
|
2.39 %
|
|
2.84 %
|
Net interest margin
(fully-taxable equivalent)
|
|
2.47 %
|
|
2.85 %
|
|
|
|
|
|
(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
Six Months
Ended
June 30,
2023
|
|
At or For
The
Three Months
Ended
March 31,
2023
|
|
At or For
The
Year
Ended
December 31,
2022
|
|
At or For
The
Nine Months
Ended
September 30,
2022
|
|
At or For
The
Six Months
Ended
June 30,
2022
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
1,781
|
|
$
1,713
|
|
$
1,733
|
|
$
1,562
|
|
$
1,831
|
Commercial real
estate
|
|
56
|
|
56
|
|
57
|
|
73
|
|
182
|
Commercial
|
|
729
|
|
748
|
|
715
|
|
541
|
|
723
|
Consumer and home
equity
|
|
482
|
|
441
|
|
486
|
|
589
|
|
769
|
Total non-accrual
loans
|
|
3,048
|
|
2,958
|
|
2,991
|
|
2,765
|
|
3,505
|
Accruing troubled-debt
restructured loans not
included above
|
|
2,140
|
|
2,154
|
|
2,114
|
|
2,285
|
|
2,316
|
Total non-performing
loans
|
|
5,188
|
|
5,112
|
|
5,105
|
|
5,050
|
|
5,821
|
Other real estate
owned
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total non-performing
assets
|
|
$
5,188
|
|
$
5,112
|
|
$
5,105
|
|
$
5,050
|
|
$
5,821
|
Loans 30-89 days
past due:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
$
1,192
|
|
$
313
|
|
$
1,038
|
|
$
2,326
|
|
$
918
|
Commercial real
estate
|
|
112
|
|
111
|
|
323
|
|
195
|
|
258
|
Commercial
|
|
294
|
|
1,030
|
|
802
|
|
1,344
|
|
422
|
Consumer and home
equity
|
|
653
|
|
684
|
|
391
|
|
843
|
|
577
|
Total loans 30-89
days past due
|
|
$
2,251
|
|
$
2,138
|
|
$
2,554
|
|
$
4,708
|
|
$
2,175
|
ACL on loans at the
beginning of the period
|
|
$
36,922
|
|
$
36,922
|
|
$
33,256
|
|
$
33,256
|
|
$
33,256
|
Provision for loan
losses
|
|
744
|
|
439
|
|
4,430
|
|
3,788
|
|
1,275
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
|
18
|
|
18
|
|
66
|
|
65
|
|
16
|
Commercial
|
|
846
|
|
312
|
|
1,042
|
|
744
|
|
561
|
Consumer and home
equity
|
|
31
|
|
4
|
|
134
|
|
130
|
|
84
|
Total
charge-offs
|
|
895
|
|
334
|
|
1,242
|
|
939
|
|
661
|
Total
recoveries
|
|
(212)
|
|
(107)
|
|
(478)
|
|
(437)
|
|
(374)
|
Net
charge-offs
|
|
683
|
|
227
|
|
764
|
|
502
|
|
287
|
ACL on loans at the
end of the period
|
|
$
36,983
|
|
$
37,134
|
|
$
36,922
|
|
$
36,542
|
|
$
34,244
|
Components of
ACL:
|
|
|
|
|
|
|
|
|
|
|
ACL on
loans
|
|
$
36,983
|
|
$
37,134
|
|
$
36,922
|
|
$
36,542
|
|
$
34,244
|
ACL on off-balance
sheet credit exposures(1)
|
|
2,788
|
|
2,990
|
|
3,265
|
|
3,441
|
|
3,190
|
ACL, end of
period
|
|
$
39,771
|
|
$
40,124
|
|
$
40,187
|
|
$
39,983
|
|
$
37,434
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to
total loans
|
|
0.13 %
|
|
0.13 %
|
|
0.13 %
|
|
0.13 %
|
|
0.16 %
|
Non-performing assets
to total assets
|
|
0.09 %
|
|
0.09 %
|
|
0.09 %
|
|
0.09 %
|
|
0.11 %
|
ACL on loans to total
loans
|
|
0.90 %
|
|
0.91 %
|
|
0.92 %
|
|
0.95 %
|
|
0.92 %
|
Net charge-offs to
average loans (annualized):
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
0.04 %
|
|
0.02 %
|
|
0.03 %
|
|
0.02 %
|
|
— %
|
Year-to-date
|
|
0.03 %
|
|
0.02 %
|
|
0.02 %
|
|
0.02 %
|
|
0.02 %
|
ACL on loans to
non-performing loans
|
|
712.86 %
|
|
726.41 %
|
|
723.25 %
|
|
723.60 %
|
|
588.28 %
|
Loans 30-89 days past
due to total loans
|
|
0.05 %
|
|
0.05 %
|
|
0.06 %
|
|
0.12 %
|
|
0.06 %
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
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
Six Months
Ended
|
(Dollars in
thousands)
|
|
June
30,
2023
|
|
March
31,
2023
|
|
June
30,
2022
|
|
June
30,
2023
|
|
June
30,
2022
|
Net income, as
presented
|
|
$
12,389
|
|
$
12,727
|
|
$
15,026
|
|
$
25,116
|
|
$
31,821
|
Add: amortization of
core deposit intangible
assets, net of tax(1)
|
|
117
|
|
117
|
|
124
|
|
234
|
|
247
|
Net income, adjusted
for amortization of core
deposit intangible assets
|
|
$
12,506
|
|
$
12,844
|
|
$
15,150
|
|
$
25,350
|
|
$
32,068
|
Average equity, as
presented
|
|
$ 466,198
|
|
$ 462,651
|
|
$ 457,804
|
|
$ 464,434
|
|
$ 491,434
|
Less: average goodwill
and core deposit
intangible assets
|
|
(96,036)
|
|
(96,191)
|
|
(96,648)
|
|
(96,113)
|
|
(96,731)
|
Average tangible
equity
|
|
$ 370,162
|
|
$ 366,460
|
|
$ 361,156
|
|
$ 368,321
|
|
$ 394,703
|
Return on average
equity
|
|
10.66 %
|
|
11.16 %
|
|
13.16 %
|
|
10.91 %
|
|
13.06 %
|
Return on average
tangible equity
|
|
13.55 %
|
|
14.21 %
|
|
16.83 %
|
|
13.88 %
|
|
16.38 %
|
|
|
|
|
|
|
|
|
|
|
|
(1) Assumed a 21%
tax rate.
|
Efficiency
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For
the
Six Months
Ended
|
(Dollars in
thousands)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June
30,
2023
|
|
June
30,
2022
|
Non-interest expense,
as presented
|
|
$
27,143
|
|
$
26,165
|
|
$
26,556
|
|
$
53,308
|
|
$
52,765
|
Net interest income, as
presented
|
|
$
32,690
|
|
$
34,280
|
|
$
36,534
|
|
$
66,970
|
|
$
72,899
|
Add: effect of
tax-exempt income(1)
|
|
235
|
|
229
|
|
231
|
|
464
|
|
458
|
Non-interest income, as
presented
|
|
10,110
|
|
9,866
|
|
11,141
|
|
19,976
|
|
20,966
|
Add: net loss on sale
of securities
|
|
—
|
|
—
|
|
9
|
|
—
|
|
9
|
Adjusted net interest
income plus non-interest
income
|
|
$
43,035
|
|
$
44,375
|
|
$
47,915
|
|
$
87,410
|
|
$
94,332
|
GAAP efficiency
ratio
|
|
63.42 %
|
|
59.27 %
|
|
55.70 %
|
|
61.31 %
|
|
56.21 %
|
Non-GAAP efficiency
ratio
|
|
63.07 %
|
|
58.96 %
|
|
55.42 %
|
|
60.99 %
|
|
55.94 %
|
|
|
|
|
|
|
|
|
|
|
|
(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
Six Months
Ended
|
(In
thousands)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June
30,
2023
|
|
June
30,
2022
|
Net income, as
presented
|
|
$
12,389
|
|
$
12,727
|
|
$
15,026
|
|
$
25,116
|
|
$
31,821
|
Add: provision for
credit losses
|
|
103
|
|
2,002
|
|
2,345
|
|
2,105
|
|
1,270
|
Add: income tax
expense
|
|
3,165
|
|
3,252
|
|
3,748
|
|
6,417
|
|
8,009
|
Earnings before income
taxes and provision
for credit losses
|
|
15,657
|
|
17,981
|
|
21,119
|
|
33,638
|
|
41,100
|
Less: SBA PPP loan
income
|
|
(6)
|
|
(4)
|
|
(165)
|
|
(9)
|
|
(1,198)
|
Earnings before income
taxes and provision
for credit losses and SBA PPP loan income
|
|
$
15,651
|
|
$
17,977
|
|
$
20,954
|
|
$
33,629
|
|
$
39,902
|
Tangible Book
Value Per Share and Tangible Common Equity
Ratio:
|
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
(In thousands,
except number of shares, per share data and ratios)
|
|
Tangible Book
Value Per Share:
|
|
|
|
|
|
|
Shareholders' equity,
as presented
|
|
$ 467,376
|
|
$ 464,874
|
|
$ 446,381
|
Less: goodwill and
core deposit intangible assets
|
|
(95,964)
|
|
(96,112)
|
|
(96,573)
|
Tangible shareholders'
equity
|
|
$ 371,412
|
|
$ 368,762
|
|
$ 349,808
|
Shares outstanding at
period end
|
|
14,554,778
|
|
14,587,906
|
|
14,625,041
|
Book value per
share
|
|
$
32.11
|
|
$
31.87
|
|
$
30.52
|
Tangible book value per
share
|
|
25.52
|
|
25.28
|
|
23.92
|
Tangible Common
Equity Ratio:
|
Total assets
|
|
$
5,750,001
|
|
$
5,716,605
|
|
$
5,466,496
|
Less: goodwill and
core deposit intangible assets
|
|
(95,964)
|
|
(96,112)
|
|
(96,573)
|
Tangible
assets
|
|
$
5,654,037
|
|
$
5,620,493
|
|
$
5,369,923
|
Common equity
ratio
|
|
8.13 %
|
|
8.13 %
|
|
8.17 %
|
Tangible common equity
ratio
|
|
6.57 %
|
|
6.56 %
|
|
6.51 %
|
Core
Deposits:
|
(In
thousands)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
Total
deposits
|
|
$
4,693,745
|
|
$
4,642,734
|
|
$
4,527,061
|
Less: certificates of
deposit
|
|
(449,265)
|
|
(360,103)
|
|
(296,408)
|
Less: brokered
deposits
|
|
(224,255)
|
|
(215,949)
|
|
(83,379)
|
Core
deposits
|
|
$
4,020,225
|
|
$
4,066,682
|
|
$
4,147,274
|
Average Core
Deposits:
|
|
|
|
|
|
|
For
the
Three Months
Ended
|
|
For
the
Six Months
Ended
|
(In
thousands)
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June
30,
2023
|
|
June
30,
2022
|
Total average deposits,
as presented(1)
|
|
$
4,426,370
|
|
$
4,520,424
|
|
$
4,382,798
|
|
$
4,473,138
|
|
$
4,381,424
|
Less: average
certificates of deposit
|
|
(410,272)
|
|
(320,209)
|
|
(298,335)
|
|
(365,489)
|
|
(301,510)
|
Average core
deposits
|
|
$
4,016,098
|
|
$
4,200,215
|
|
$
4,084,463
|
|
$
4,107,649
|
|
$
4,079,914
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Brokered deposits are
excluded from total average deposits, as presented on the Average
Balance, Interest and Yield/Rate analysis table.
|
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SOURCE Camden National Corporation