Camden National Corporation Reports 2013 Earnings of $22.8 Million and $2.97 per Share

Jan 28, 2014, 16:05 ET from Camden National Corporation

CAMDEN, Maine, Jan. 28, 2014 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a $2.6 billion bank holding company headquartered in Camden, Maine, reported earnings for the year ended December 31, 2013 of $22.8 million, or $2.97 per share, compared to $23.4 million, or $3.05 per share, for 2012.  The Company's return on average assets was 0.88% and return on average shareholders' equity was 9.74% for the year ended December 31, 2013.

"The fourth quarter marked another major milestone for Camden National," said Gregory A. Dufour, president and chief executive officer of Camden National Corporation. "October was the one year anniversary of Camden National's acquisition of 14 branches from Bank of America.  The acquisition provided the Company with an instant increase in presence and customer-base within some of Maine's major markets with over 25,000 new customers and $287 million in low cost deposits.  Also, in October of this year, Camden National divested its five Franklin County branches, resulting in the sale of $46.0 million in loans and $80.4 million in deposits, and a pre-tax gain on the sale of $2.7 million.  Although these transactions impact short-term earnings, our strategic decision-making is focused on driving long-term shareholder value by repositioning our organization for the future."

The Company reported earnings of $4.4 million and $0.58 per share for the fourth quarter of 2013 compared to $6.4 million and $0.83 per share for the third quarter of 2013.  The Company's return on average assets was 0.68% and return on average shareholders' equity was 7.46% for the fourth quarter of 2013.

Balance Sheet The Company's total assets increased $39.1 million, or 2%, during the year to $2.6 billion at December 31, 2013.  The growth in total assets was primarily driven by an increase in loan and investment balances.  The Company's total loans grew $62.6 million, representing organic loan growth of 4% for the year, after adjusting for the impact of the Franklin County branch divestiture (the "branch divestiture") in the fourth quarter of 2013.  This loan growth was centered in the commercial real estate portfolio and home equity portfolio which increased $42.2 million and $25.6 million, respectively.  The Company's consumer loan portfolio saw a modest increase of $2.3 million during the year, while the commercial portfolio decreased by $4.8 million.

The Company's mortgage loan volume was impacted by the rise in interest rates during 2013 as Treasury rates crept up approximately 100 basis points through the course of the year, and, as a result, the refinance pipeline slowed considerably by year-end.  The residential portfolio declined $2.7 million for the year after loan sales of $33.3 million.

At December 31, 2013, total deposits were $1.8 billion, reflecting the sale of $80.4 million of deposits as part of the branch divestiture.  Core deposits (demand, interest checking, savings, and money market) represented 76% of the deposit mix compared to 73% a year ago.  Our core deposits grew $19.3 million during 2013, while certificates of deposit balances declined $52.7 million, after adjusting for the impact of the branch divestiture.

2013 Year-To-Date Operating Results Compared to 2012 The Company reported earnings of $22.8 million and $2.97 per share for the year ended December 31, 2013.  This represents an earnings decrease of $645,000 and $0.08 per share compared to 2012.  The primary factors impacting current year results as compared to prior year are:

Net Interest Income: Net interest income of $75.5 million increased $1.7 million, or 2%, in 2013.  For the year, the Company achieved average growth on interest-earnings assets of 7%; however, our yield on interest-earning assets declined 41 basis points as loans and investment portfolios continued to reprice to current market levels.  The Company has been able to partially offset the declining yield with a 26 basis points decrease in cost of funds during the year to 0.55%.  Average deposits for the year grew $230.5 million, or 15%, largely due to the low cost deposits acquired in the fourth quarter of 2012.  The Company's average cost of funds on deposits decreased 17 basis points during the year to 0.32%.  The Company's net interest margin on a fully-taxable basis decreased 16 basis points during the year to 3.20%. 

Provision for Credit Losses: The Company's provision for credit losses for the year ended December 31, 2013 was $2.0 million, which is a decrease of $1.8 million, or 47%, compared to 2012.  The decrease highlights the continued improvement in our asset quality metrics for the year ended December 31, 2013.  At December 31, 2013, our ratio of loans 30 - 89 days past due to total loans decreased 13 basis points to 0.38%, and our annual net charge-offs to average loans decreased 2 basis points to 0.22%.  While non-performing assets have increased as of December 31, 2013 compared to the prior year, it's primarily the result of one large relationship being placed on non-accrual status in the third quarter of 2013.

Non-Interest Income: Non-interest income for the year was $27.8 million, representing an increase of $4.4 million, or 19%, compared to 2012.  The increase is primarily attributable to income on deposit service-related fees generated from the new customer accounts associated with the 14 branches acquired during the fourth quarter of 2012.  In the fourth quarter of 2013, the Company recognized a gain of $2.7 million on the branch divestiture.  This gain was partially offset by $1.7 million of gains recorded on the sale of securities in 2012.

Non-Interest Expense: Non-interest expense for the year increased $7.3 million, or 12%, to $66.3 million compared to the prior year.  The increase is largely due to the full year impact of operating costs associated with the acquisition of 14 branches, including approximately 75 additional employees and over 25,000 new customer accounts, in the fourth quarter of 2012.  In the fourth quarter of 2013, the Company performed its annual goodwill impairment assessment in accordance with the applicable accounting guidance and determined that the fair value of the trust and investment services business line was less than its carrying value and, accordingly, recorded a goodwill write-down of $2.8 million.  The increase in costs for 2013 was partially offset by non-recurring costs in 2012, including the incremental acquisition and divestiture costs of $2.0 million and prepayment fees on borrowings of $2.0 million.

Fourth Quarter 2013 Operating Results Compared to Third Quarter 2013 The Company reported earnings of $4.4 million and $0.58 per share for the fourth quarter of 2013.  This represents a decrease in earnings of $1.9 million, or $0.25 per share, compared to the third quarter of 2013.  The primary factors impacting fourth quarter results are:

Net Interest Income: Net interest income of $18.4 million decreased $357,000, or 2%, during the quarter.  The decrease is primarily driven by the branch divestiture, which decreased net interest income by approximately $350,000 in the fourth quarter.  In addition, net interest margin decreased 4 basis points to 3.09% in the fourth quarter of 2013.

Release of Reserves for Credit Losses: The Company's release of reserves for credit losses for the fourth quarter of 2013 was $6,000, which is a decrease of $671,000, or 101%, from the provision for credit losses in the third quarter of 2013.  The decrease highlights the Company's continued positive trends within asset quality:

  • Non-performing loans to total loans decreased 12 basis points;
  • Non-performing assets to total assets decreased 6 basis points; and
  • Quarterly net charge-offs to average loans (annualized) decreased 6 basis points.

Non-Interest Income: Non-interest income for the quarter was $8.6 million, representing an increase of $2.1 million, or 33%, compared to prior quarter.  The increase is primarily representative of a pre-tax gain of $2.7 million recorded on the branch divestiture, partially offset by a reduction in gains recorded on the sale of investments that occurred during the third quarter of 2013 totaling $647,000.

Non-Interest Expense: Non-interest expense for the quarter increased $3.8 million, or 25%, to $19.0 million compared to prior quarter.  The increase was primarily driven by the $2.8 million goodwill write-down in the fourth quarter  and an increase of $318,000 in other real estate owned and collection costs as a number of properties went to auction during the fourth quarter.

Dividends and Capital In 2013, the Company declared dividend payments of $1.08 per share.  This is an increase of $0.08 per share, or 8%, compared to 2012 and represents an annual dividend yield of 2.58%, based on the December 31, 2013 closing price of Camden National's common stock at $41.84 per share as reported by NASDAQ.

In September 2013, the board of directors approved a common stock repurchase program (the "Repurchase Program") of up to 250,000 shares of the Company's outstanding common stock.  During the fourth quarter, the Company repurchased 68,145 shares under the Repurchase Program at a weighted-average price of $40.78 per share.  The Company has 181,855 shares remaining under the Repurchase Program at December 31, 2013.

Camden National's total risk-based capital ratio, Tier 1 risk-based capital ratio, and Tier 1 leverage capital ratio were 16.45%, 15.20%, and 9.43%, respectively, at December 31, 2013.  Camden National Corporation and its wholly-owned subsidiary, Camden National Bank, continue to exceed the minimum total and Tier 1 risk-based capital ratios of 10% and 6%, respectively, and the Tier 1 leverage capital ratio of 5% required by the Federal Reserve for an institution to be considered "well capitalized."

Annual Meeting Camden National Corporation has scheduled its annual meeting of shareholders for Tuesday, April 29, 2014, at 3:00 p.m. local time, at Point Lookout Resort and Conference Center, 67 Atlantic Highway, Lincolnville, Maine 04849. The date for determining the Company's shareholders of record for the annual meeting is March 3, 2014.

About Camden National Corporation Camden National Corporation, recognized by Forbes as one of "America's Most Trustworthy Companies" in 2012 and 2013*, is the holding company employing more than 500 Maine residents for two financial services companies including Camden National Bank and the wealth management company, Acadia Trust, N.A. Camden National Bank is a full-service community bank with a network of 44 banking offices throughout Maine.  Acadia Trust offers investment management and fiduciary services with offices in Portland and Ellsworth.  Located at Camden National Bank, Camden Financial Consultants offers full-service brokerage and insurance services. Learn more at www.camdennational.com. Member FDIC.     *From Forbes.com March 18, 2013. © 2013 Forbes.com LLC. All rights reserved. Used by permission and protected by the Copyright Laws of the United States.

Forward-Looking Statements This press release and the documents incorporated by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, projections, and statements, which are subject to numerous risks, assumptions, and uncertainties.  Forward-looking statements can be identified by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "plan," "target," or "goal," or future or conditional verbs such as "will," "may," "might," "should," "would," "could" and other expressions which predict or indicate future events or trends and which do not relate to historical matters.  Forward-looking statements should not be relied on, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Camden National.  These risks, uncertainties and other factors may cause the actual results, performance or achievements of Camden National to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include, but are not limited to, the following: continued weakness in the United States economy in general and the regional and local economies within the New England region and Maine, which could result in a deterioration of credit quality, a change in the allowance for loan losses, or a reduced demand for the Company's credit or fee-based products and services; adverse changes in the local real estate market could result in a deterioration of credit quality and an increase in the allowance for loan loss, as most of the Company's loans are concentrated in Maine, and a substantial portion of these loans have real estate as collateral; changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; competitive pressures, including continued industry consolidation, the increased financial services provided by non-banks and banking reform; continued volatility in the securities markets that could adversely affect the value or credit quality of the Company's assets, impairment of goodwill, the availability and terms of funding necessary to meet the Company's liquidity needs, and the Company's ability to originate loans and could lead to impairment in the value of securities in the Company's investment portfolios; changes in information technology that require increased capital spending; changes in consumer spending and savings habits; new laws and regulations regarding the financial services industry; changes in laws and regulations including laws and regulations concerning taxes, banking, securities and insurance; and changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters.  Additional factors that could also cause results to differ materially from those described above can be found in the Company's Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings with the SEC.  All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements.

These forward-looking statements were based on information, plans and estimates at the date of this press release, and Camden National does not promise and assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Use of Non-GAAP Financial 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 the efficiency and tangible equity ratios, tangible book value per share, and tax-equivalent net interest income.  Management believes these non-GAAP financial measures help investors in understanding the Company's operating performance and trends and allow for better performance comparisons to other banks.  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.  A 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.

Selected Financial Data (unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2013

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2012

Selected Financial and Per Share Data:

Return on average assets

0.68

%

0.66

%

0.98

%

0.88

%

0.98

%

Return on average shareholders' equity

7.46

%

7.07

%

11.03

%

9.74

%

10.31

%

Return on average tangible shareholders' equity (non-GAAP) (1)

16.12

%

9.33

%

14.74

%

14.55

%

13.19

%

Tangible equity to tangible assets (non-GAAP) (1)

7.12

%

7.19

%

7.07

%

7.12

%

7.19

%

Efficiency ratio (non-GAAP) (1)

65.79

%

65.29

%

61.25

%

62.78

%

57.45

%

Yield on average interest-earnings assets

3.61

%

3.88

%

3.65

%

3.73

%

4.14

%

Average cost of funds

0.53

%

0.71

%

0.54

%

0.55

%

0.81

%

Net interest margin

3.09

%

3.20

%

3.13

%

3.20

%

3.36

%

Tier 1 leverage capital ratio

9.43

%

8.94

%

9.24

%

9.43

%

8.94

%

Tier 1 risk-based capital ratio

15.20

%

14.31

%

14.96

%

15.20

%

14.31

%

Total risk-based capital ratio

16.45

%

15.56

%

16.21

%

16.45

%

15.56

%

Basic earnings per share

$

0.58

$

0.55

$

0.83

$

2.98

$

3.06

Diluted earnings per share

$

0.58

$

0.55

$

0.83

$

2.97

$

3.05

Cash dividends declared per share

$

0.27

$

0.25

$

0.27

$

1.08

$

1.00

Book value per share

$

30.49

$

30.67

$

30.38

$

30.49

$

30.67

Tangible book value per share (non-GAAP) (1)

$

23.98

$

23.68

$

23.52

$

23.98

$

23.68

Weighted average number of common shares outstanding

7,628,871

7,620,753

7,643,720

7,634,455

7,646,861

Diluted weighted average number of common shares outstanding

7,664,795

7,638,609

7,666,305

7,653,270

7,661,273

(1) Please see "Reconciliation of non-GAAP to GAAP Financial Measures".

 

Statement of Condition Data

 

(In Thousands, Except Number of Shares)

December 31, 2013 (unaudited)

December 31, 2012

ASSETS

Cash and due from banks

$

51,355

$

58,290

Securities

Securities available-for-sale, at fair value

808,477

781,050

Federal Home Loan Bank and Federal Reserve Bank stock, at cost

19,724

21,034

Total securities

828,201

802,084

Trading account assets

2,488

2,300

Loans

1,580,402

1,563,866

Less allowance for loan losses

(21,590)

(23,044)

Net loans

1,558,812

1,540,822

Goodwill and other intangible assets

49,319

53,299

Bank-owned life insurance

46,363

45,053

Premises and equipment, net

25,727

28,059

Deferred tax asset

16,047

7,663

Interest receivable

5,808

6,215

Other real estate owned

2,195

1,313

Other assets

17,514

19,659

Total assets

$

2,603,829

$

2,564,757

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Deposits

Demand

$

243,269

$

240,749

Interest checking, savings and money market

1,128,185

1,169,148

Retail certificates of deposit

343,034

418,442

Brokered deposits

99,336

101,130

Total deposits

1,813,824

1,929,469

Federal Home Loan Bank advances

286,112

56,404

Other borrowed funds

200,058

259,940

Junior subordinated debentures

43,922

43,819

Accrued interest and other liabilities

28,817

41,310

Total liabilities

2,372,733

2,330,942

Shareholders' Equity

Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 7,579,913 and 7,622,750 shares on December 31, 2013 and 2012, respectively

47,783

49,667

Retained earnings

195,660

181,151

Accumulated other comprehensive income (loss)

Net unrealized (losses) gains on securities available-for-sale, net of tax

(7,964)

12,943

Net unrealized losses on derivative instruments, at fair value, net of tax

(2,542)

(7,205)

Net unrecognized losses on postretirement plans, net of tax

(1,841)

(2,741)

Total accumulated other comprehensive income (loss)

(12,347)

2,997

Total shareholders' equity

231,096

233,815

Total liabilities and shareholders' equity

$

2,603,829

$

2,564,757

 

Statement of Income Data (unaudited)

Three Months Ended

(In Thousands, Except Number of Shares and Per Share Data)

December 31, 2013

December 31, 2012

September 30, 2013

Interest Income

Interest and fees on loans

$

16,938

$

18,072

$

17,470

Interest on U.S. government and sponsored enterprise obligations

4,146

4,065

4,091

Interest on state and political subdivision obligations

281

321

292

Interest on federal funds sold and other investments

54

91

38

Total interest income

21,419

22,549

21,891

Interest Expense

Interest on deposits

1,646

2,147

1,780

Interest on borrowings

785

1,199

767

Interest on junior subordinated debentures

638

642

637

Total interest expense

3,069

3,988

3,184

Net interest income

18,350

18,561

18,707

Provision for (release of) credit losses

(6)

1,108

665

Net interest income after provision for credit losses

18,356

17,453

18,042

Non-Interest Income

Service charges on deposit accounts

1,551

1,700

1,750

Other service charges and fees

1,461

1,257

1,568

Income from fiduciary services

1,184

1,155

1,149

Brokerage and insurance commissions

522

382

354

Mortgage banking income, net

155

112

93

Bank-owned life insurance

324

348

334

Gain on branch divestiture

2,742

Net gain on sale of securities and other-than-temporary impairment of securities

1,439

647

Other income

675

999

580

Total non-interest income

8,614

7,392

6,475

Non-Interest Expenses

Salaries and employee benefits

8,172

8,539

8,115

Furniture, equipment and data processing

1,848

1,524

1,668

Net occupancy

1,248

1,304

1,242

Other real estate owned and collection costs

807

590

489

Consulting and professional fees

701

467

504

Regulatory assessments

503

476

496

Amortization of intangible assets

287

224

289

Goodwill impairment

2,830

Branch acquisition and divestiture costs

95

1,620

47

Prepayment fees on borrowings

1,302

Other expenses

2,495

2,717

2,349

Total non-interest expenses

18,986

18,763

15,199

Income before income taxes

7,984

6,082

9,318

Income Taxes

3,560

1,904

2,952

Net Income

$

4,424

$

4,178

$

6,366

Per Share Data

Basic earnings per share

$

0.58

$

0.55

$

0.83

Diluted earnings per share

$

0.58

$

0.55

$

0.83

 

 

Statement of Income Data - continued

Twelve Months Ended December 31,

(In Thousands, Except Number of Shares and Per Share Data)

2013

(unaudited)

2012

Interest Income

Interest and fees on loans

$

70,262

$

72,859

Interest on U.S. government and sponsored enterprise obligations

16,587

16,452

Interest on state and political subdivision obligations

1,170

1,385

Interest on federal funds sold and other investments

198

251

Total interest income

88,217

90,947

Interest Expense

Interest on deposits

7,073

9,293

Interest on borrowings

3,137

5,363

Interest on junior subordinated debentures

2,532

2,546

Total interest expense

12,742

17,202

Net interest income

75,475

73,745

Provision for credit losses

2,028

3,816

Net interest income after provision for credit losses

73,447

69,929

Non-Interest Income

Service charges on deposit accounts

6,740

5,557

Other service charges and fees

5,971

4,061

Income from fiduciary services

4,751

5,038

Brokerage and insurance commissions

1,697

1,491

Mortgage banking income, net

1,406

588

Bank-owned life insurance

1,310

1,382

Gain on branch divestiture

2,742

Net gain on sale of securities and other-than-temporary impairment of securities

785

2,498

Other income

2,399

2,797

Total non-interest income

27,801

23,412

Non-Interest Expenses

Salaries and employee benefits

32,609

29,689

Furniture, equipment and data processing

7,051

5,079

Net occupancy

5,449

4,365

Other real estate owned and collection costs

2,162

2,284

Consulting and professional fees

2,337

1,818

Regulatory assessments

1,997

1,793

Amortization of intangible assets

1,150

657

Goodwill impairment

2,830

Branch acquisition and divestiture costs

374

2,324

Prepayment fees on borrowings

2,030

Other expenses

10,374

8,992

Total non-interest expenses

66,333

59,031

Income before income taxes

34,915

34,310

Income Taxes

12,132

10,882

Net Income

$

22,783

$

23,428

Per Share Data

Basic earnings per share

$

2.98

$

3.06

Diluted earnings per share

$

2.97

$

3.05

 

 

Quarterly Average Balance, Interest and Yield/Rate Analysis (unaudited)

At or for the Three Months Ended

At or for the Three Months Ended

December 31, 2013

December 31, 2012

(In Thousands)

Average Balance

Interest

Yield/Rate

Average Balance

Interest

Yield/Rate

Assets

Interest-earning assets:

Securities - taxable

$

777,821

$

4,181

2.15

%

$

716,862

$

4,118

2.30

%

Securities - nontaxable (1)

29,748

432

5.81

%

34,354

493

5.75

%

Trading account assets

2,406

20

3.27

%

2,271

25

4.38

%

Federal funds sold

22,283

14

0.25

%

Loans: (2)

Residential real estate

569,095

5,994

4.21

%

570,525

6,516

4.57

%

Commercial real estate

523,855

6,206

4.64

%

502,421

6,309

4.91

%

Commercial

169,067

1,786

4.13

%

173,101

1,976

4.47

%

Municipal (1)

9,828

108

4.37

%

14,314

160

4.45

%

Consumer

293,041

2,881

3.90

%

292,089

3,167

4.31

%

Total loans 

1,564,886

16,975

4.29

%

1,552,450

18,128

4.62

%

Total interest-earning assets

2,374,861

21,608

3.61

%

2,328,220

22,778

3.88

%

Cash and due from banks

42,725

55,394

Other assets

168,361

158,404

Less: allowance for loan losses

(22,181)

(22,763)

Total assets

$

2,563,766

$

2,519,255

Liabilities & Shareholders' Equity

Deposits:

Non-interest bearing demand deposits

$

266,342

$

232,966

Interest checking accounts

459,427

81

0.07

%

445,847

85

0.08

%

Savings accounts

238,290

34

0.06

%

216,657

42

0.08

%

Money market accounts

431,205

310

0.28

%

454,754

452

0.40

%

Certificates of deposit

351,035

873

0.99

%

404,874

1,212

1.19

%

Total deposits

1,746,299

1,298

0.29

%

1,755,098

1,791

0.41

%

Borrowings:

Brokered deposits

119,055

348

1.16

%

99,518

356

1.42

%

Junior subordinated debentures

43,909

638

5.76

%

43,807

642

5.83

%

Other borrowings

389,319

785

0.80

%

341,933

1,199

1.40

%

Total borrowings

552,283

1,771

1.27

%

485,258

2,197

1.80

%

Total funding liabilities

2,298,582

3,069

0.53

%

2,240,356

3,988

0.71

%

Other liabilities

29,842

43,879

Shareholders' equity

235,342

235,020

Total liabilities & shareholders' equity

$

2,563,766

$

2,519,255

Net interest income (fully-taxable equivalent)

18,539

18,790

Less:  fully-taxable equivalent adjustment

(189)

(229)

Net interest income

$

18,350

$

18,561

Net interest rate spread (fully-taxable equivalent)

3.08

%

3.17

%

Net interest margin (fully-taxable equivalent)

3.09

%

3.20

%

(1)  Reported on tax-equivalent basis calculated using a tax rate of 35%.

(2)  Non-accrual loans and loans held for sale are included in total average loans.

 

Year-to-Date Average Balance, Interest and Yield/Rate Analysis (unaudited)

At or for the Twelve Months Ended

At or for the Twelve Months Ended

December 31, 2013

December 31, 2012

(In Thousands)

Average Balance

Interest

Yield/Rate

Average Balance

Interest

Yield/Rate

Assets

Interest-earning assets:

Securities - taxable

$

772,095

$

16,751

2.17

%

$

640,779

$

16,646

2.60

%

Securities - nontaxable (1)

30,672

1,799

5.87

%

37,163

2,130

5.73

%

Trading account assets

2,295

34

1.48

%

2,214

43

1.94

%

Federal funds sold

5,601

14

0.25

%

Loans: (2)

Residential real estate

571,291

25,209

4.41

%

573,227

27,210

4.75

%

Commercial real estate

515,501

24,764

4.80

%

491,732

24,572

5.00

%

Commercial

173,933

7,591

4.36

%

169,043

7,961

4.71

%

Municipal (1)

11,799

508

4.31

%

14,473

694

4.80

%

Consumer

308,335

12,369

4.01

%

287,173

12,665

4.41

%

Total loans 

1,580,859

70,441

4.46

%

1,535,648

73,102

4.76

%

Total interest-earning assets

2,385,921

89,025

3.73

%

2,221,405

91,935

4.14

%

Cash and due from banks

43,879

42,165

Other assets

167,557

154,970

Less: allowance for loan losses

(22,968)

(23,050)

Total assets

$

2,574,389

$

2,395,490

Liabilities & Shareholders' Equity

Deposits:

Non-interest bearing demand deposits

$

246,637

$

240,369

Interest checking accounts

471,331

324

0.07

%

351,232

336

0.10

%

Savings accounts

237,110

133

0.06

%

195,800

285

0.15

%

Money market accounts

442,908

1,346

0.30

%

382,274

2,019

0.53

%

Certificates of deposit

387,816

3,856

0.99

%

385,666

4,998

1.30

%

Total deposits

1,785,802

5,659

0.32

%

1,555,341

7,638

0.49

%

Borrowings:

Brokered deposits

118,423

1,414

1.19

%

117,815

1,655

1.40

%

Junior subordinated debentures

43,871

2,532

5.77

%

43,769

2,546

5.82

%

Other borrowings

360,948

3,137

0.87

%

414,566

5,363

1.29

%

Total borrowings

523,242

7,083

1.35

%

576,150

9,564

1.66

%

Total funding liabilities

2,309,044

12,742

0.55

%

2,131,491

17,202

0.81

%

Other liabilities

31,457

36,870

Shareholders' equity

233,888

227,129

Total liabilities & shareholders' equity

$

2,574,389

$

2,395,490

Net interest income (fully-taxable equivalent)

76,283

74,733

Less:  fully-taxable equivalent adjustment

(808)

(988)

Net interest income

$

75,475

$

73,745

Net interest rate spread (fully-taxable equivalent)

3.18

%

3.33

%

Net interest margin (fully-taxable equivalent)

3.20

%

3.36

%

(1)  Reported on tax-equivalent basis calculated using a tax rate of 35%.

(2)  Non-accrual loans and loans held for sale are included in total average loans.

 

 

Asset Quality Data (unaudited)

At or for Twelve Months Ended 

At or for Nine

Months Ended 

At or for Six Months Ended 

At or for Three Months Ended 

At or for Twelve Months Ended 

(In Thousands)

December 31, 2013

September 30, 2013

June 30, 2013

March 31, 2013

December 31, 2012

Non-accrual loans:

Residential real estate

$

10,520

$

10,224

$

8,624

$

10,311

$

10,584

Commercial real estate

7,799

9,847

6,634

5,782

6,719

Commercial 

2,146

2,994

3,233

3,134

3,409

Consumer

2,012

2,018

1,945

2,341

1,771

Total non-accrual loans

22,477

25,083

20,436

21,568

22,483

Loans 90 days past due and accruing

455

24

49

611

Renegotiated loans not included above

5,468

5,379

5,701

5,491

4,674

Total non-performing loans

28,400

30,486

26,137

27,108

27,768

Other real estate owned:

Residential real estate

1,044

1,126

1,038

1,101

669

Commercial real estate

1,151

676

1,117

812

644

Total other real estate owned

2,195

1,802

2,155

1,913

1,313

Total non-performing assets

$

30,595

$

32,288

$

28,292

$

29,021

$

29,081

Loans 30-89 days past due:

Residential real estate

$

1,551

$

1,419

$

1,827

$

1,165

$

1,658

Commercial real estate

2,595

833

1,591

3,375

2,618

Commercial 

313

529

202

731

1,043

Consumer

1,571

1,207

716

962

2,721

Total loans 30-89 days past due

$

6,030

$

3,988

$

4,336

$

6,233

$

8,040

Allowance for loan losses at the beginning of the period

$

23,044

$

23,044

$

23,044

$

23,044

$

23,011

Provision for loan losses

2,052

2,051

1,384

684

3,791

Charge-offs:

Residential real estate

1,059

687

347

145

1,197

Commercial real estate

952

762

171

80

593

Commercial 

1,426

823

444

277

1,393

Consumer 

837

598

470

85

1,319

Total charge-offs 

4,274

2,870

1,432

587

4,502

Total recoveries 

768

436

325

228

744

Net charge-offs

3,506

2,434

1,107

359

3,758

Allowance for loan losses at the end of the period

$

21,590

$

22,661

$

23,321

$

23,369

$

23,044

Components of allowance for credit losses:

Allowance for loan losses

$

21,590

$

22,661

$

23,321

$

23,369

$

23,044

Liability for unfunded credit commitments

21

28

30

35

45

Balance of allowance for credit losses 

$

21,611

$

22,689

$

23,351

$

23,404

$

23,089

Ratios:

Non-performing loans to total loans

1.80

%

1.92

%

1.63

%

1.72

%

1.78

%

Non-performing assets to total assets

1.18

%

1.24

%

1.09

%

1.12

%

1.13

%

Allowance for credit losses to total loans

1.37

%

1.43

%

1.45

%

1.48

%

1.48

%

Net charge-offs to average loans (annualized)

Quarter-to-date

0.27

%

0.33

%

0.20

%

0.09

%

0.24

%

Year-to-date

0.22

%

0.20

%

0.14

%

0.09

%

0.24

%

Allowance for credit losses to non-performing loans

76.09

%

74.42

%

89.34

%

86.34

%

83.15

%

Loans 30-89 days past due to total loans

0.38

%

0.25

%

0.27

%

0.39

%

0.51

%

 

Reconciliation of non-GAAP to GAAP Financial Measures

Camden National presents its efficiency ratio using non-GAAP information. The GAAP-based efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The non-GAAP efficiency ratio excludes branch acquisition and divestiture costs, prepayment fees on borrowings, and goodwill impairment from non-interest expense, excludes net gains on sale of securities and other-than-temporary impairment, and the gain on branch divestiture from non-interest income, and adds the tax-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio:

Three Months Ended

Twelve Months Ended

(In Thousands)

December 31, 2013

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2012

Non-interest expense, as presented

$

18,986

$

18,763

$

15,199

$

66,333

$

59,031

Less: branch acquisition and divestiture costs

95

1,620

47

374

2,324

Less: prepayment fees on borrowings

1,302

2,030

Less: goodwill impairment

2,830

2,830

Adjusted non-interest expense

$

16,061

$

15,841

$

15,152

$

63,129

$

54,677

Net interest income, as presented

$

18,350

$

18,561

$

18,707

$

75,475

$

73,745

Effect of tax-exempt income

189

229

203

808

988

Non-interest income, as presented

8,614

7,392

6,475

27,801

23,412

Less: gains on sale of securities, net of other-than-temporary impairments

1,439

647

785

2,498

Less: gain on branch divestiture

2,742

2,742

Less: gain on sale of branch facility

479

479

Adjusted net interest income plus non-interest income

$

24,411

$

24,264

$

24,738

$

100,557

$

95,168

Non-GAAP efficiency ratio

65.79

%

65.29

%

61.25

%

62.78

%

57.45

%

GAAP efficiency ratio

70.41

%

72.30

%

60.36

%

64.23

%

60.76

%

 

The following table provides a reconciliation between tax-equivalent net interest income to GAAP net interest income using a 35.0% tax rate.

 

Three Months Ended

Twelve Months Ended

(In Thousands)

December 31, 2013

December 31, 2013

September 30, 2013

December 31, 2013

December 31, 2012

Net interest income, as presented

$

18,350

$

18,561

$

18,707

$

75,475

$

73,745

Effect of tax-exempt income

189

229

203

808

988

Net interest income, tax equivalent

$

18,539

$

18,790

$

18,910

$

76,283

$

74,733

 

The following table provides a reconciliation between return on average tangible shareholders' equity to GAAP return on average shareholders' equity using a 35.0% tax rate.

 

Three Months Ended

Twelve Months Ended

(In Thousands)

December 31, 2013

December 31, 2012

September 30, 2013

December 31, 2013

December 31, 2012

Net income, as presented

$

4,424

$

4,178

$

6,366

$

22,873

$

23,428

Tax affected amortization of intangible assets

186

146

188

747

427

Goodwill impairment

2,830

2,830

Net income, adjusted

$

7,440

$

4,324

$

6,554

$

26,450

$

23,855

Average shareholders' equity, as presented

235,342

235,020

228,909

233,888

227,129

Less: average goodwill and other intangibles

52,253

50,687

52,572

52,708

46,253

Average tangible shareholders' equity

$

183,089

$

184,333

$

176,337

$

181,180

$

180,876

Return on average tangible shareholders' equity

16.12

%

9.33

%

14.74

%

14.55

%

13.19

%

Return on average shareholders' equity

7.46

%

7.07

%

11.03

%

9.74

%

10.31

%

 

The following table provides a reconciliation between tangible book value per share and book value per share, which has been prepared in accordance with GAAP:

At December 31,

At December 31,

At September 30,

(In Thousands, Except Number of Shares and Per Share Data)

2013

2012

2013

Shareholders' equity, as presented

$

231,096

$

233,815

$

232,282

Less: goodwill and other intangible assets

49,319

53,299

52,436

Tangible shareholders' equity

$

181,777

$

180,516

$

179,846

Shares outstanding at period end

7,579,913

7,622,750

7,646,664

Tangible book value per share

$

23.98

$

23.68

$

23.52

Book value per share

$

30.49

$

30.67

$

30.38

The following table provides a reconciliation between tangible shareholders' equity to tangible assets and shareholders' equity to assets, which has been prepared in accordance with GAAP:

 

At December 31,

At December 31,

At September 30,

(In Thousands)

2013

2012

2013

Shareholders' equity, as presented

$

231,096

$

233,815

$

232,282

Less: goodwill and other intangibles

49,319

53,299

52,436

Tangible shareholders' equity

$

181,777

$

180,516

$

179,846

Total assets

$

2,603,829

$

2,564,757

$

2,597,255

Less: goodwill and other intangibles

49,319

53,299

52,436

Tangible assets

$

2,554,510

$

2,511,458

$

2,544,819

Tangible shareholders' equity to tangible assets

7.12

%

7.19

%

7.07

%

Shareholders' equity to assets

8.88

%

9.12

%

8.94

%

 

(Logo: http://photos.prnewswire.com/prnh/20110505/NE96304LOGO-b)

SOURCE Camden National Corporation



RELATED LINKS

http://www.camdennational.com