Camden National Corporation Reports a 16% Increase in 2015 Core Operating Earnings
CAMDEN, Maine, Feb. 4, 2016 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a $3.7 billion bank holding company headquartered in Camden, Maine, reported a 16% increase in core operating earnings1 for the year ended December 31, 2015 over 2014 to $28.2 million and an 8% increase in core diluted earnings per share ("EPS")1 for 2015 over 2014 to $3.49 per share. Fourth quarter 2015 core operating earnings increased 26% to $7.7 million over fourth quarter 2014, while fourth quarter 2015 core diluted EPS decreased 5% to $0.78 per share compared to fourth quarter 2014, reflecting the issuance of 2.7 million common shares in connection with the acquisition of SBM Financial, Inc. ("SBM"), which was completed on October 16, 2015.
"We are extremely pleased that we reached two significant milestones in 2015 — the completion of the merger with SBM while at the same time achieving record core operating earnings," said Gregory A. Dufour, president and chief executive officer of the Company. "We reached new heights with total assets of $3.7 billion, loans of $2.5 billion and core deposits of $2.0 billion at December 31, 2015. As a combined organization with 64 banking centers and three lending offices, we are looking forward to the future with our franchise's newly expanded footprint in Southern Maine and Massachusetts."
Dufour added, "In under eight months our team worked diligently to integrate the infrastructure of the two banks while always focusing on the customer and shareholder value. We never lost sight of our core business along the way, which speaks to our increase in core operating earnings for 2015 of 16% over 2014. The Company's core return on average equity for the year ended December 31, 2015 was 10.15% and core return on average assets was 0.94%. This performance positions us to meet the long-term financial objectives we set when we announced the merger in March 2015, while also aligning with our five-year strategic plan."
Net income, as presented in accordance with generally accepted accounting principles in the United States ("GAAP"), for the year ended December 31, 2015 and the fourth quarter of 2015 was $21.0 million and $1.7 million, respectively, each representing decreases compared to their respective period of 2014 due to one-time acquisition-related costs recorded in 2015. Diluted EPS for the year ended December 31, 2015 and the fourth quarter of 2015 were $2.60 per share and $0.17 per share, respectively, which reflects the lower GAAP net income and the issuance of 2.7 million shares of Company common stock in October 2015 as consideration for the SBM transaction.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
- Completed the acquisition of SBM on October 16, 2015 — total assets acquired (including goodwill and core deposit intangible assets generated) were $840.1 million, total loans acquired were $615.2 million, and total deposits acquired were $687.0 million (of which $497.4 million were core deposits)
- Fourth quarter 2015 core operating earnings increased $1.6 million, or 26%, over fourth quarter 2014
- Fourth quarter 2015 core diluted EPS decreased $0.04 per share, or 5%, compared to fourth quarter 2014 due to the dilution associated with issuance of 2.7 million shares in the fourth quarter of 2015 combined with the timing of cost savings associated with the SBM acquisition that will be fully achieved in the first quarter of 2016
- Organic loan growth (excluding SBM acquired loans) for the fourth quarter 2015 was $44.8 million, or 10% annualized
- Organic deposit growth (excluding SBM acquired deposits) for the fourth quarter 2015 was $32.6 million, or 6% annualized, led by core deposit growth of $75.2 million, or 21% annualized
1 This is a non-GAAP measure. Please refer to the "Reconciliation of non-GAAP to GAAP Financial Measures" for further details.
FINANCIAL CONDITION
Total assets at December 31, 2015 reached $3.7 billion compared to $2.8 billion last year. The significant increase over the last year was due to the SBM acquisition with total assets acquired of $840.1 million and organic asset growth during the year of $80.0 million, or 3%. Our loan portfolio grew $102.4 million in 2015 when excluding SBM acquired loans and loans held for sale. Our commercial portfolio at December 31, 2015 totaled $1.3 billion, representing organic loan growth of 11% for the year, while our retail loan portfolio increased modestly by $4.7 million over the same period. The changes within our loan portfolio mix over the past year highlights our focus on business lending and ramp-up of our mortgage banking division. The Company's mortgage sales in 2015 totaled $61.2 million compared to $799,000 for 2014.
Total deposits (excluding brokered deposits) at December 31, 2015 reached $2.5 billion compared to $1.7 billion last year. The significant increase not only reflects the deposits acquired from SBM but, also, strong organic core deposit growth in 2015 of $117.3 million, or 8%. Total borrowings (including brokered deposits) decreased $22.8 million in 2015 compared to December 31, 2014, which includes $15.0 million of subordinated notes issued in the fourth quarter of 2015 associated with the closing of the SBM acquisition.
Our asset quality continues to remain strong with year-to-date net charge-offs to average loans of 0.10% in 2015 compared to 0.16% in 2014 and a 26 basis point decrease in non-performing loans to total loans to 0.93% compared to a year-ago. The annualized net charge-off ratio increased to 0.16% for the fourth quarter 2015 due to the resolution of non-performing loans.
The Company and its wholly-owned subsidiary Camden National Bank continue to maintain risk-based capital ratios in excess of the regulatory levels required for an institution to be considered "well capitalized". At December 31, 2015, the Company's total risk-based capital ratio, Tier I risk-based capital ratio, common equity Tier I risk-based capital ratio, and Tier I leverage capital ratio was 12.98%, 11.58%, 10.42%, and 8.74%, respectively.
As part of the SBM acquisition, the Company acquired Healthcare Professional Funding Corporation ("HPFC"), which provides lending services to dentists, veterinarians, and optometrists across the United States. After an extensive analysis it was determined that at this time the capital and operational resources required to allow HPFC to reach its full potential did not align with our need to focus on ensuring we meet the profitability targets of the merger. Operations at HPFC will be discontinued during the first quarter of 2016. The Company will continue to earn revenues from HPFC's loan portfolio as it naturally runs off over the next five to ten years.
FINANCIAL OPERATING RESULTS
Core operating earnings for the fourth quarter of 2015 were $7.7 million compared to $6.1 million for the fourth quarter of 2014 and $7.0 million last quarter. Core diluted EPS for the fourth quarter of 2015 was $0.78 per share compared to $0.82 per share for the fourth quarter of 2014 and $0.93 per share last quarter. The dilution of core diluted EPS in the fourth quarter of 2015 reflects the issuance of 2.7 million shares to SBM shareholders as part of the acquisition.
Generally, revenues and expenses for the fourth quarter of 2015 increased compared to prior quarters due to the acquisition of SBM in the fourth quarter of 2015. Total revenues (including net interest income and non-interest income) for the fourth quarter of 2015 increased 37% over the fourth quarter of 2014 and 31% over the prior quarter, while total non-interest expenses (excluding acquisition-related costs) for the fourth quarter of 2015 increased 39% over the fourth quarter of 2014 and 42% over the prior quarter.
The Company's exposure to rising interest rate risk reduced significantly as of December 31, 2015 due to the level of floating rate loans acquired as part of the SBM acquisition, the reduction in borrowings resulting from the increase in our core deposit base (both organically and due to the SBM acquisition), and our continued use of back-to- back loan swaps.
Net interest income for the fourth quarter of 2015 increased 37% to $26.4 million over the fourth quarter of 2014 and 32% over the prior quarter. Net interest margin for the fourth quarter of 2015 was 3.30%, which represents an increase over fourth quarter 2014 and prior quarter of 24 basis points and 22 basis points, respectively. The net interest margin lift was driven by an increase in the loan yields and the benefit of loan accretion income of $531,000 generated from the discount on SBM's acquired loan portfolio and a $180,000 reduction of interest expense on certificates of deposit due to the amortization of the fair value mark on the acquired SBM time deposits. Excluding the impact of loan accretion income and the interest expense reduction on certificates of deposit, the Company's fourth quarter 2015 net interest margin was 3.21%.
The provision for credit losses was $957,000 for the fourth quarter of 2015, representing an increase of $412,000 and $678,000 over the fourth quarter of 2014 and prior quarter, respectively. The increase reflects the timing of auction activity in the fourth quarter of 2015 on Camden National Bank's legacy non-performing loans.
Non-interest income for the fourth quarter of 2015 totaled $8.5 million, representing an increase of 36% and 29% over the fourth quarter of 2014 and prior quarter, respectively. Non-interest income growth was driven by increases in mortgage banking income, loan swap fees and additional service charges and fees from the acquired SBM deposit customers.
Core operating expenses (excluding one-time acquisition-related costs) for the fourth quarter of 2015 totaled $22.7 million, representing increases over the fourth quarter of 2014 and prior quarter of $6.4 million and $6.7 million, respectively. The increases reflect the incremental operating expenses associated with 55,000 new customers, 24 additional banking and loan centers and 168 new employees associated with the SBM transaction. The core operating expense to total average assets ratio was 0.64% for the fourth quarter of 2015 compared to 0.60% and 0.56% for the fourth quarter of 2014 and prior quarter, respectively.
FOURTH QUARTER DIVIDEND
The board of directors approved a dividend of $0.30 per share, payable on January 29, 2016, to shareholders of record as of January 15, 2016. This distribution represents an annualized dividend yield of 2.72%, based on the December 31, 2015 closing price of Camden National's common stock at $44.09 per share as reported by NASDAQ.
CONFERENCE CALL
Camden National will host a conference call and webcast at 11:00 a.m. eastern time on February 5, 2016 to discuss our fourth quarter and year-to-date 2015 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:
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Live dial-in (domestic): |
(888) 349-0139 |
|
Live dial-in (international): |
(412) 542-4154 |
|
Live webcast: |
A link to the live webcast will be will be available on Camden National's website under "Investors" at www.CamdenNational.com prior to the meeting. 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 headquartered in Camden, Maine, and listed on the NASDAQ® Global Select Market (NASDAQ®) under the symbol CAC, is the holding company employing more than 650 employees for 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 64 banking centers and 85 ATMs throughout Maine and lending offices in Massachusetts and New Hampshire. Located at Camden National Bank, Camden Financial Consultants offers full-service brokerage and insurance services. Acadia Trust, N.A. offers investment management and fiduciary services through offices in Portland, Bangor, and Ellsworth, Maine. To learn more, visit www.CamdenNational.com.
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, 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 difficulties in achieving cost savings in connection with the recent acquisition of SBM or in achieving such cost savings within the expected time frame, increased competitive pressures, changes in the interest rate environment, changes in general economic conditions, 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 in Camden National's Annual Report on Form 10-K for the year ended December 31, 2014, as updated by other filings with the Securities and Exchange Commission ("SEC"). 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 GAAP, management supplements this evaluation with certain non-GAAP financial measures, such as the efficiency, tangible equity to tangible assets, and core return ratios; core operating earnings; core diluted EPS; 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. Reconciliation to the comparable GAAP financial measure can be found in this document or the Form 8-K related to this document, all of which can be found on Camden National's website at www.CamdenNational.com.
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) | ||||||||||||||||||||
|
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, |
September 30, |
December 31, |
December 31, |
December 31, | |||||||||||||||
|
Investments |
$ |
855,995 |
$ |
820,052 |
$ |
803,633 |
$ |
855,995 |
$ |
803,633 |
||||||||||
|
Loans and loans held for sale |
2,501,164 |
1,831,033 |
1,772,610 |
2,501,164 |
1,772,610 |
|||||||||||||||
|
Allowance for loan losses |
21,166 |
21,132 |
21,116 |
21,166 |
21,116 |
|||||||||||||||
|
Total assets |
3,709,871 |
2,871,798 |
2,789,853 |
3,709,871 |
2,789,853 |
|||||||||||||||
|
Deposits |
2,727,836 |
2,008,177 |
1,932,097 |
2,727,836 |
1,932,097 |
|||||||||||||||
|
Borrowings |
572,889 |
563,905 |
577,002 |
572,889 |
577,002 |
|||||||||||||||
|
Shareholders' equity |
363,190 |
259,403 |
245,109 |
363,190 |
245,109 |
|||||||||||||||
|
Operating Data |
||||||||||||||||||||
|
Net interest income |
$ |
26,371 |
$ |
20,012 |
$ |
19,236 |
$ |
86,452 |
$ |
76,257 |
||||||||||
|
Provision for credit losses |
957 |
279 |
545 |
1,936 |
2,220 |
|||||||||||||||
|
Non-interest income |
8,464 |
6,561 |
6,221 |
27,482 |
24,370 |
|||||||||||||||
|
Non-interest expense |
31,470 |
16,711 |
16,301 |
81,139 |
62,397 |
|||||||||||||||
|
Income before income taxes |
2,408 |
9,583 |
8,611 |
30,859 |
36,010 |
|||||||||||||||
|
Income tax expense |
716 |
3,127 |
2,523 |
9,907 |
11,440 |
|||||||||||||||
|
Net income |
$ |
1,692 |
$ |
6,456 |
$ |
6,088 |
$ |
20,952 |
$ |
24,570 |
||||||||||
|
Core operating earnings(1) |
$ |
7,662 |
$ |
6,951 |
$ |
6,088 |
$ |
28,186 |
$ |
24,277 |
||||||||||
|
Key Ratios |
||||||||||||||||||||
|
Return on average assets |
0.19 |
% |
0.90 |
% |
0.88 |
% |
0.70 |
% |
0.92 |
% | ||||||||||
|
Core return on average assets(1) |
0.86 |
% |
0.97 |
% |
0.88 |
% |
0.94 |
% |
0.90 |
% | ||||||||||
|
Return on average equity |
1.91 |
% |
9.99 |
% |
9.92 |
% |
7.54 |
% |
10.37 |
% | ||||||||||
|
Core return on average equity(1) |
8.64 |
% |
10.76 |
% |
9.92 |
% |
10.15 |
% |
10.25 |
% | ||||||||||
|
Core return on average tangible equity(1) |
11.96 |
% |
13.56 |
% |
12.75 |
% |
13.20 |
% |
13.30 |
% | ||||||||||
|
Tangible equity to tangible assets(1) |
7.18 |
% |
7.51 |
% |
7.18 |
% |
7.18 |
% |
7.18 |
% | ||||||||||
|
Efficiency ratio(1) |
64.16 |
% |
58.94 |
% |
63.24 |
% |
61.13 |
% |
61.58 |
% | ||||||||||
|
Yield on average interest-earning assets |
3.74 |
% |
3.54 |
% |
3.54 |
% |
3.65 |
% |
3.60 |
% | ||||||||||
|
Average cost of funds |
0.46 |
% |
0.47 |
% |
0.49 |
% |
0.47 |
% |
0.50 |
% | ||||||||||
|
Net interest margin |
3.30 |
% |
3.08 |
% |
3.06 |
% |
3.19 |
% |
3.11 |
% | ||||||||||
|
Non-performing loans to total loans |
0.93 |
% |
0.83 |
% |
1.19 |
% |
0.93 |
% |
1.19 |
% | ||||||||||
|
Non-performing assets to total assets |
0.66 |
% |
0.54 |
% |
0.82 |
% |
0.66 |
% |
0.82 |
% | ||||||||||
|
Annualized charge-offs to average loans |
0.16 |
% |
0.08 |
% |
0.23 |
% |
0.10 |
% |
0.16 |
% | ||||||||||
|
Tier I leverage capital ratio(2) |
8.74 |
% |
9.41 |
% |
9.26 |
% |
8.74 |
% |
9.26 |
% | ||||||||||
|
Common equity tier I risk-based capital ratio(2) |
10.42 |
% |
11.44 |
% |
— |
10.42 |
% |
— |
||||||||||||
|
Tier I risk-based capital ratio(2) |
11.58 |
% |
13.67 |
% |
13.97 |
% |
11.58 |
% |
13.97 |
% | ||||||||||
|
Total risk-based capital ratio(2) |
12.98 |
% |
14.76 |
% |
15.16 |
% |
12.98 |
% |
15.16 |
% | ||||||||||
|
Per Share Data |
||||||||||||||||||||
|
Basic earnings per share |
$ |
0.17 |
$ |
0.86 |
$ |
0.82 |
$ |
2.60 |
$ |
3.29 |
||||||||||
|
Diluted earnings per share |
$ |
0.17 |
$ |
0.86 |
$ |
0.82 |
$ |
2.60 |
$ |
3.28 |
||||||||||
|
Core diluted earnings per share(1) |
$ |
0.78 |
$ |
0.93 |
$ |
0.82 |
$ |
3.49 |
$ |
3.24 |
||||||||||
|
Cash dividends declared per share |
$ |
0.30 |
$ |
0.30 |
$ |
0.30 |
$ |
1.20 |
$ |
1.11 |
||||||||||
|
Book value per share |
$ |
35.54 |
$ |
34.80 |
$ |
33.01 |
$ |
35.54 |
$ |
33.01 |
||||||||||
|
Tangible book value per share(1) |
$ |
25.33 |
$ |
28.45 |
$ |
26.52 |
$ |
25.33 |
$ |
26.52 |
||||||||||
|
Weighted average number of common shares outstanding |
9,734,020 |
7,453,222 |
7,424,319 |
8,020,851 |
7,450,980 |
|||||||||||||||
|
Diluted weighted average number of common shares outstanding |
9,789,179 |
7,477,039 |
7,447,550 |
8,049,708 |
7,470,593 |
|||||||||||||||
|
(1) Please see "Reconciliation of non-GAAP to GAAP Financial Measures." |
|
(2) Beginning March 31, 2015, reported regulatory capital ratios reflect Basel III regulatory capital rule and framework. |
|
Consolidated Statement of Condition Data (unaudited) | ||||||||
|
(In thousands, except number of shares) |
December 31, |
December 31, | ||||||
|
ASSETS |
||||||||
|
Cash and due from banks |
$ |
79,488 |
$ |
60,813 |
||||
|
Securities: |
||||||||
|
Available-for-sale securities, at fair value |
750,338 |
763,063 |
||||||
|
Held-to-maturity securities, at amortized cost |
84,144 |
20,179 |
||||||
|
Federal Home Loan Bank and Federal Reserve Bank stock, at cost |
21,513 |
20,391 |
||||||
|
Total securities |
855,995 |
803,633 |
||||||
|
Loans held for sale |
10,958 |
— |
||||||
|
Loans |
2,490,206 |
1,772,610 |
||||||
|
Less: allowance for loan losses |
(21,166) |
(21,116) |
||||||
|
Net loans |
2,469,040 |
1,751,494 |
||||||
|
Goodwill and other intangible assets |
104,324 |
48,171 |
||||||
|
Bank-owned life insurance |
59,917 |
57,800 |
||||||
|
Premises and equipment, net |
45,959 |
23,886 |
||||||
|
Deferred tax assets |
39,716 |
14,434 |
||||||
|
Interest receivable |
7,985 |
6,017 |
||||||
|
Other real estate owned |
1,304 |
1,587 |
||||||
|
Other assets |
35,185 |
22,018 |
||||||
|
Total assets |
$ |
3,709,871 |
$ |
2,789,853 |
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
|
Liabilities |
||||||||
|
Deposits: |
||||||||
|
Demand |
$ |
359,130 |
$ |
263,013 |
||||
|
Interest checking |
740,084 |
480,521 |
||||||
|
Savings and money market |
912,668 |
653,708 |
||||||
|
Certificates of deposit |
516,867 |
317,123 |
||||||
|
Brokered deposits |
199,087 |
217,732 |
||||||
|
Total deposits |
2,727,836 |
1,932,097 |
||||||
|
Federal Home Loan Bank advances |
55,000 |
56,039 |
||||||
|
Other borrowed funds |
458,763 |
476,939 |
||||||
|
Subordinated debentures |
59,126 |
44,024 |
||||||
|
Accrued interest and other liabilities |
45,956 |
35,645 |
||||||
|
Total liabilities |
3,346,681 |
2,544,744 |
||||||
|
Shareholders' Equity |
||||||||
|
Common stock, no par value: authorized 20,000,000 shares, issued and outstanding 10,220,478 and 7,426,222 on December 31, 2015 and 2014, respectively |
153,083 |
41,555 |
||||||
|
Retained earnings |
222,329 |
211,979 |
||||||
|
Accumulated other comprehensive loss: |
||||||||
|
Net unrealized losses on securities available-for-sale, net of tax |
(3,801) |
(319) |
||||||
|
Net unrealized losses on derivative instruments, net of tax |
(6,374) |
(5,943) |
||||||
|
Net unrecognized losses on postretirement plans, net of tax |
(2,047) |
(2,163) |
||||||
|
Total accumulated other comprehensive loss |
(12,222) |
(8,425) |
||||||
|
Total shareholders' equity |
363,190 |
245,109 |
||||||
|
Total liabilities and shareholders' equity |
$ |
3,709,871 |
$ |
2,789,853 |
||||
|
Consolidated Statements of Income Data (unaudited) | ||||||||
|
Three Months Ended December 31, | ||||||||
|
(In thousands, except per share data) |
2015 |
2014 | ||||||
|
Interest Income |
||||||||
|
Interest and fees on loans |
$ |
25,144 |
$ |
18,005 |
||||
|
Interest on U.S. government and sponsored enterprise obligations |
3,904 |
3,868 |
||||||
|
Interest on state and political subdivision obligations |
704 |
329 |
||||||
|
Interest on federal funds sold and other investments |
231 |
90 |
||||||
|
Total interest income |
29,983 |
22,292 |
||||||
|
Interest Expense |
||||||||
|
Interest on deposits |
1,881 |
1,589 |
||||||
|
Interest on borrowings |
901 |
829 |
||||||
|
Interest on subordinated debentures |
830 |
638 |
||||||
|
Total interest expense |
3,612 |
3,056 |
||||||
|
Net interest income |
26,371 |
19,236 |
||||||
|
Provision for credit losses |
957 |
545 |
||||||
|
Net interest income after provision for credit losses |
25,414 |
18,691 |
||||||
|
Non-Interest Income |
||||||||
|
Service charges on deposit accounts |
1,789 |
1,540 |
||||||
|
Other service charges and fees |
2,074 |
1,552 |
||||||
|
Income from fiduciary services |
1,193 |
1,244 |
||||||
|
Mortgage banking income, net |
1,056 |
85 |
||||||
|
Brokerage and insurance commissions |
337 |
388 |
||||||
|
Bank-owned life insurance |
413 |
462 |
||||||
|
Other income |
1,602 |
950 |
||||||
|
Total non-interest income |
8,464 |
6,221 |
||||||
|
Non-Interest Expenses |
||||||||
|
Salaries and employee benefits |
11,670 |
8,310 |
||||||
|
Furniture, equipment and data processing |
2,527 |
2,080 |
||||||
|
Net occupancy |
1,790 |
1,230 |
||||||
|
Consulting and professional fees |
891 |
600 |
||||||
|
Other real estate owned and collection costs |
937 |
624 |
||||||
|
Regulatory assessments |
650 |
505 |
||||||
|
Amortization of intangible assets |
444 |
287 |
||||||
|
Merger and acquisition costs |
8,786 |
— |
||||||
|
Other expenses |
3,775 |
2,665 |
||||||
|
Total non-interest expenses |
31,470 |
16,301 |
||||||
|
Income before income taxes |
2,408 |
8,611 |
||||||
|
Income Taxes |
716 |
2,523 |
||||||
|
Net income |
$ |
1,692 |
$ |
6,088 |
||||
|
Per Share Data |
||||||||
|
Basic earnings per share |
$ |
0.17 |
$ |
0.82 |
||||
|
Diluted earnings per share |
$ |
0.17 |
$ |
0.82 |
||||
|
Consolidated Statements of Income Data (unaudited) | ||||||||
|
Year Ended December 31, | ||||||||
|
(In thousands, except per share data) |
2015 |
2014 | ||||||
|
Interest Income |
||||||||
|
Interest and fees on loans |
$ |
81,221 |
$ |
70,654 |
||||
|
Interest on U.S. government and sponsored enterprise obligations |
15,091 |
16,118 |
||||||
|
Interest on state and political subdivision obligations |
2,208 |
1,256 |
||||||
|
Interest on federal funds sold and other investments |
624 |
357 |
||||||
|
Total interest income |
99,144 |
88,385 |
||||||
|
Interest Expense |
||||||||
|
Interest on deposits |
6,511 |
6,267 |
||||||
|
Interest on borrowings |
3,457 |
3,329 |
||||||
|
Interest on subordinated debentures |
2,724 |
2,532 |
||||||
|
Total interest expense |
12,692 |
12,128 |
||||||
|
Net interest income |
86,452 |
76,257 |
||||||
|
Provision for credit losses |
1,936 |
2,220 |
||||||
|
Net interest income after provision for credit losses |
84,516 |
74,037 |
||||||
|
Non-Interest Income |
||||||||
|
Service charges on deposit accounts |
6,423 |
6,229 |
||||||
|
Other service charges and fees |
6,850 |
6,136 |
||||||
|
Income from fiduciary services |
4,918 |
4,989 |
||||||
|
Mortgage banking income, net |
2,031 |
282 |
||||||
|
Brokerage and insurance commissions |
1,699 |
1,766 |
||||||
|
Bank-owned life insurance |
1,680 |
1,437 |
||||||
|
Net gain on sale of securities |
4 |
451 |
||||||
|
Other income |
3,877 |
3,080 |
||||||
|
Total non-interest income |
27,482 |
24,370 |
||||||
|
Non-Interest Expenses |
||||||||
|
Salaries and employee benefits |
37,220 |
32,669 |
||||||
|
Furniture, equipment and data processing |
8,057 |
7,316 |
||||||
|
Net occupancy |
5,695 |
5,055 |
||||||
|
Consulting and professional fees |
2,625 |
2,368 |
||||||
|
Other real estate owned and collection costs |
2,491 |
2,289 |
||||||
|
Regulatory assessments |
2,184 |
1,982 |
||||||
|
Amortization of intangible assets |
1,306 |
1,148 |
||||||
|
Merger and acquisition costs |
10,415 |
— |
||||||
|
Other expenses |
11,146 |
9,570 |
||||||
|
Total non-interest expenses |
81,139 |
62,397 |
||||||
|
Income before income taxes |
30,859 |
36,010 |
||||||
|
Income Taxes |
9,907 |
11,440 |
||||||
|
Net income |
$ |
20,952 |
$ |
24,570 |
||||
|
Per Share Data |
||||||||
|
Basic earnings per share |
$ |
2.60 |
$ |
3.29 |
||||
|
Diluted earnings per share |
$ |
2.60 |
$ |
3.28 |
||||
|
Quarterly Average Balance, Interest and Yield/Rate Analysis (unaudited) | ||||||||||||||||||||||
|
At or For The Three Months Ended | ||||||||||||||||||||||
|
December 31, 2015 |
December 31, 2014 | |||||||||||||||||||||
|
(In thousands) |
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate | ||||||||||||||||
|
Assets |
||||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||
|
Securities - taxable |
$ |
748,341 |
$ |
4,135 |
2.21 |
% |
$ |
754,660 |
$ |
3,959 |
2.10 |
% | ||||||||||
|
Securities - nontaxable(1) |
99,281 |
1,084 |
4.37 |
% |
40,913 |
506 |
4.94 |
% | ||||||||||||||
|
Loans(2)(3): |
||||||||||||||||||||||
|
Residential real estate |
787,441 |
8,418 |
4.28 |
% |
581,225 |
6,025 |
4.15 |
% | ||||||||||||||
|
Commercial real estate |
873,620 |
9,540 |
4.27 |
% |
617,105 |
6,894 |
4.37 |
% | ||||||||||||||
|
Commercial(1) |
347,310 |
3,707 |
4.18 |
% |
232,231 |
2,252 |
3.79 |
% | ||||||||||||||
|
Municipal(1) |
13,866 |
122 |
3.49 |
% |
11,687 |
107 |
3.65 |
% | ||||||||||||||
|
Consumer |
359,851 |
3,500 |
3.86 |
% |
291,435 |
2,869 |
3.91 |
% | ||||||||||||||
|
Total loans |
2,382,088 |
25,287 |
4.19 |
% |
1,733,683 |
18,147 |
4.14 |
% | ||||||||||||||
|
Total interest-earning assets |
3,229,710 |
30,506 |
3.74 |
% |
2,529,256 |
22,612 |
3.54 |
% | ||||||||||||||
|
Cash and due from banks |
72,588 |
45,270 |
||||||||||||||||||||
|
Other assets |
264,503 |
176,942 |
||||||||||||||||||||
|
Less: allowance for loan losses |
(21,216) |
(21,440) |
||||||||||||||||||||
|
Total assets |
$ |
3,545,585 |
$ |
2,730,028 |
||||||||||||||||||
|
Liabilities & Shareholders' Equity |
||||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||||
|
Demand |
$ |
355,421 |
$ |
— |
— |
$ |
282,333 |
$ |
— |
— |
||||||||||||
|
Interest checking |
691,191 |
136 |
0.08 |
% |
479,685 |
88 |
0.07 |
% | ||||||||||||||
|
Savings |
406,723 |
61 |
0.06 |
% |
260,020 |
38 |
0.06 |
% | ||||||||||||||
|
Money market |
441,431 |
388 |
0.35 |
% |
403,749 |
291 |
0.29 |
% | ||||||||||||||
|
Certificates of deposit(3) |
489,329 |
952 |
0.77 |
% |
319,752 |
780 |
0.97 |
% | ||||||||||||||
|
Total deposits |
2,384,095 |
1,537 |
0.26 |
% |
1,745,539 |
1,197 |
0.27 |
% | ||||||||||||||
|
Borrowings: |
||||||||||||||||||||||
|
Brokered deposits |
203,046 |
344 |
0.67 |
% |
191,292 |
392 |
0.81 |
% | ||||||||||||||
|
Subordinated debentures |
57,973 |
830 |
5.68 |
% |
44,012 |
638 |
5.75 |
% | ||||||||||||||
|
Other borrowings |
503,606 |
901 |
0.71 |
% |
473,409 |
829 |
0.69 |
% | ||||||||||||||
|
Total borrowings |
764,625 |
2,075 |
1.08 |
% |
708,713 |
1,859 |
1.04 |
% | ||||||||||||||
|
Total funding liabilities |
3,148,720 |
3,612 |
0.46 |
% |
2,454,252 |
3,056 |
0.49 |
% | ||||||||||||||
|
Other liabilities |
45,223 |
32,178 |
||||||||||||||||||||
|
Shareholders' equity |
351,642 |
243,598 |
||||||||||||||||||||
|
Total liabilities & shareholders' equity |
$ |
3,545,585 |
$ |
2,730,028 |
||||||||||||||||||
|
Net interest income (fully-taxable equivalent) |
26,894 |
19,556 |
||||||||||||||||||||
|
Less: fully-taxable equivalent adjustment |
(523) |
(320) |
||||||||||||||||||||
|
Net interest income |
$ |
26,371 |
$ |
19,236 |
||||||||||||||||||
|
Net interest rate spread (fully-taxable equivalent) |
3.28 |
% |
3.05 |
% | ||||||||||||||||||
|
Net interest margin (fully-taxable equivalent)(3) |
3.30 |
% |
3.06 |
% | ||||||||||||||||||
|
(1) Reported on tax-equivalent basis calculated using a tax rate of 35%, including certain commercial loans. | ||||||||||||||||||||||
|
(2) Non-accrual loans and loans held for sale are included in total average loans. | ||||||||||||||||||||||
|
(3) The accounting for the SBM acquisition required loans and time deposits to be recorded at fair value. The fair value marks on the loans and time deposits acquired accrete and amortize into net interest income over time. For the fourth quarter of 2015, the loan accretion income and interest expense reduction on time deposits related to the SBM acquisition totaled $531,000 and $180,000, respectively. Excluding these items, net interest margin for the fourth quarter of 2015 was 3.21%. | ||||||||||||||||||||||
|
Year-to-Date Average Balance, Interest and Yield/Rate Analysis (unaudited) | ||||||||||||||||||||||
|
At or For The Year Ended | ||||||||||||||||||||||
|
December 31, 2015 |
December 31, 2014 | |||||||||||||||||||||
|
(In thousands) |
Average Balance |
Interest |
Yield/Rate |
Average Balance |
Interest |
Yield/Rate | ||||||||||||||||
|
Assets |
||||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||
|
Securities - taxable |
$ |
739,168 |
$ |
15,715 |
2.13 |
% |
$ |
770,202 |
$ |
16,474 |
2.14 |
% | ||||||||||
|
Securities - nontaxable(1) |
76,779 |
3,397 |
4.42 |
% |
37,499 |
1,932 |
5.15 |
% | ||||||||||||||
|
Loans(2)(3): |
||||||||||||||||||||||
|
Residential real estate |
636,516 |
26,505 |
4.16 |
% |
571,593 |
24,036 |
4.21 |
% | ||||||||||||||
|
Commercial real estate |
716,112 |
31,859 |
4.45 |
% |
594,224 |
26,976 |
4.54 |
% | ||||||||||||||
|
Commercial(1) |
271,631 |
10,907 |
4.02 |
% |
211,722 |
8,346 |
3.94 |
% | ||||||||||||||
|
Municipal(1) |
13,698 |
471 |
3.44 |
% |
13,794 |
486 |
3.52 |
% | ||||||||||||||
|
Consumer |
310,664 |
12,053 |
3.88 |
% |
289,964 |
11,292 |
3.89 |
% | ||||||||||||||
|
Total loans |
1,948,621 |
81,795 |
4.20 |
% |
1,681,297 |
71,136 |
4.23 |
% | ||||||||||||||
|
Total interest-earning assets |
2,764,568 |
100,907 |
3.65 |
% |
2,488,998 |
89,542 |
3.60 |
% | ||||||||||||||
|
Cash and due from banks |
55,256 |
44,276 |
||||||||||||||||||||
|
Other assets |
200,857 |
171,204 |
||||||||||||||||||||
|
Less: allowance for loan losses |
(21,281) |
(21,691) |
||||||||||||||||||||
|
Total assets |
$ |
2,999,400 |
$ |
2,682,787 |
||||||||||||||||||
|
Liabilities & Shareholders' Equity |
||||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||||
|
Demand |
$ |
292,776 |
$ |
— |
— |
$ |
251,609 |
$ |
— |
— |
||||||||||||
|
Interest checking |
543,330 |
427 |
0.08 |
% |
465,740 |
325 |
0.07 |
% | ||||||||||||||
|
Savings |
306,536 |
180 |
0.06 |
% |
250,148 |
142 |
0.06 |
% | ||||||||||||||
|
Money market |
394,367 |
1,283 |
0.33 |
% |
413,712 |
1,206 |
0.29 |
% | ||||||||||||||
|
Certificates of deposit(3) |
357,972 |
3,126 |
0.87 |
% |
328,887 |
3,116 |
0.95 |
% | ||||||||||||||
|
Total deposits |
1,894,981 |
5,016 |
0.26 |
% |
1,710,096 |
4,789 |
0.28 |
% | ||||||||||||||
|
Borrowings: |
||||||||||||||||||||||
|
Brokered deposits |
229,079 |
1,495 |
0.65 |
% |
157,265 |
1,478 |
0.94 |
% | ||||||||||||||
|
Subordinated debentures |
47,569 |
2,724 |
5.73 |
% |
43,973 |
2,532 |
5.76 |
% | ||||||||||||||
|
Other borrowings |
511,632 |
3,457 |
0.68 |
% |
504,803 |
3,329 |
0.66 |
% | ||||||||||||||
|
Total borrowings |
788,280 |
7,676 |
0.97 |
% |
706,041 |
7,339 |
1.04 |
% | ||||||||||||||
|
Total funding liabilities |
2,683,261 |
12,692 |
0.47 |
% |
2,416,137 |
12,128 |
0.50 |
% | ||||||||||||||
|
Other liabilities |
38,423 |
29,801 |
||||||||||||||||||||
|
Shareholders' equity |
277,716 |
236,849 |
||||||||||||||||||||
|
Total liabilities & shareholders' equity |
$ |
2,999,400 |
$ |
2,682,787 |
||||||||||||||||||
|
Net interest income (fully-taxable equivalent) |
88,215 |
77,414 |
||||||||||||||||||||
|
Less: fully-taxable equivalent adjustment |
(1,763) |
(1,157) |
||||||||||||||||||||
|
Net interest income |
$ |
86,452 |
$ |
76,257 |
||||||||||||||||||
|
Net interest rate spread (fully-taxable equivalent) |
3.18 |
% |
3.10 |
% | ||||||||||||||||||
|
Net interest margin (fully-taxable equivalent)(3) |
3.19 |
% |
3.11 |
% | ||||||||||||||||||
|
(1) Reported on tax-equivalent basis calculated using a tax rate of 35%, including certain commercial loans. | ||||||||||||||||||||||
|
(2) Non-accrual loans and loans held for sale are included in total average loans. |
||||||||||||||||||||||
|
(3) The accounting for the SBM acquisition required loans and time deposits to be recorded at fair value. The fair value marks on the loans and time deposits acquired accrete and amortize into net interest income over time. For the year ended December 31, 2015, the loan accretion income and interest expense reduction on time deposits related to the SBM acquisition totaled $531,000 and $180,000, respectively. Additionally, in the second quarter of 2015 one loan paid-off that was on non-accrual status and resulted in income of $734,000. Excluding these items, net interest margin for the year ended ended December 31, 2015 was 3.14%. | ||||||||||||||||||||||
|
Loan and Deposit Organic Growth Data (unaudited) | |||||||||||||||||||
|
(A) |
(B) |
(C) |
(D) = (A) - (B) - (C) | ||||||||||||||||
|
(In thousands) |
December 31, 2015 |
September 30, 2015 |
SBM Acquisition |
Three Months Ended December 31, 2015 Organic Growth (Annualized) | |||||||||||||||
|
Loans: |
|||||||||||||||||||
|
Residential |
$ |
820,704 |
$ |
583,076 |
$ |
234,619 |
$ |
3,009 |
2 |
% | |||||||||
|
Commercial real estate |
927,951 |
690,935 |
193,883 |
43,133 |
25 |
% | |||||||||||||
|
Commercial |
374,964 |
258,105 |
113,190 |
3,669 |
6 |
% | |||||||||||||
|
Home equity |
348,634 |
281,492 |
71,005 |
(3,863) |
(5) |
% | |||||||||||||
|
Consumer |
17,953 |
16,535 |
2,526 |
(1,108) |
(27) |
% | |||||||||||||
|
Total loans |
$ |
2,490,206 |
$ |
1,830,143 |
$ |
615,223 |
$ |
44,840 |
10 |
% | |||||||||
|
Deposits: |
|||||||||||||||||||
|
Demand |
$ |
359,130 |
$ |
308,576 |
$ |
30,139 |
$ |
20,415 |
26 |
% | |||||||||
|
Interest checking |
740,084 |
480,065 |
247,834 |
12,185 |
10 |
% | |||||||||||||
|
Savings and money market |
912,668 |
650,701 |
219,385 |
42,582 |
26 |
% | |||||||||||||
|
Certificates of deposit |
516,867 |
339,937 |
189,659 |
(12,729) |
(15) |
% | |||||||||||||
|
Brokered deposits |
199,087 |
228,898 |
— |
(29,811) |
(52) |
% | |||||||||||||
|
Total deposits |
$ |
2,727,836 |
$ |
2,008,177 |
$ |
687,017 |
$ |
32,642 |
6 |
% | |||||||||
|
(A) |
(B) |
(C) |
(D) = (A) - (B) - (C) | ||||||||||||||||
|
(In thousands) |
December 31, 2015 |
December 31, 2014 |
SBM Acquisition |
Year Ended December 31, 2015 Organic Growth | |||||||||||||||
|
Loans: |
|||||||||||||||||||
|
Residential |
$ |
820,704 |
$ |
585,468 |
$ |
234,619 |
$ |
617 |
— |
% | |||||||||
|
Commercial real estate |
927,951 |
640,661 |
193,883 |
93,407 |
15 |
% | |||||||||||||
|
Commercial |
374,964 |
257,515 |
113,190 |
4,259 |
2 |
% | |||||||||||||
|
Home equity |
348,634 |
271,709 |
71,005 |
5,920 |
2 |
% | |||||||||||||
|
Consumer |
17,953 |
17,257 |
2,526 |
(1,830) |
(11) |
% | |||||||||||||
|
Total loans |
$ |
2,490,206 |
$ |
1,772,610 |
$ |
615,223 |
$ |
102,373 |
6 |
% | |||||||||
|
Deposits: |
|||||||||||||||||||
|
Demand |
$ |
359,130 |
$ |
263,013 |
$ |
30,139 |
$ |
65,978 |
25 |
% | |||||||||
|
Interest checking |
740,084 |
480,521 |
247,834 |
11,729 |
2 |
% | |||||||||||||
|
Savings and money market |
912,668 |
653,708 |
219,385 |
39,575 |
6 |
% | |||||||||||||
|
Certificates of deposit |
516,867 |
317,123 |
189,659 |
10,085 |
3 |
% | |||||||||||||
|
Brokered deposits |
199,087 |
217,732 |
— |
(18,645) |
(9) |
% | |||||||||||||
|
Total deposits |
$ |
2,727,836 |
$ |
1,932,097 |
$ |
687,017 |
$ |
108,722 |
6 |
% | |||||||||
|
Asset Quality Data (unaudited) | ||||||||||||||||||||
|
(In thousands) |
At or For The Year Ended December 31, 2015 |
At or For The Nine Months Ended September 30, 2015 |
At or For The Six Months Ended June 30, 2015 |
At or For The Three Months Ended March 31, 2015 |
At or For The | |||||||||||||||
|
Non-accrual loans(1): |
||||||||||||||||||||
|
Residential real estate |
$ |
7,253 |
$ |
4,149 |
$ |
4,498 |
$ |
5,630 |
$ |
6,056 |
||||||||||
|
Commercial real estate |
4,529 |
3,384 |
2,813 |
4,083 |
7,043 |
|||||||||||||||
|
Commercial |
4,489 |
1,383 |
1,425 |
1,442 |
1,529 |
|||||||||||||||
|
Consumer |
2,051 |
1,243 |
1,957 |
1,942 |
2,011 |
|||||||||||||||
|
Total non-accrual loans |
18,322 |
10,159 |
10,693 |
13,097 |
16,639 |
|||||||||||||||
|
Loans 90 days past due and accruing |
— |
— |
— |
— |
— |
|||||||||||||||
|
Renegotiated loans not included above |
4,861 |
5,013 |
5,313 |
4,433 |
4,539 |
|||||||||||||||
|
Total non-performing loans |
23,183 |
15,172 |
16,006 |
17,530 |
21,178 |
|||||||||||||||
|
Other real estate owned(2): |
||||||||||||||||||||
|
Residential real estate |
407 |
204 |
300 |
533 |
575 |
|||||||||||||||
|
Commercial real estate |
897 |
— |
351 |
848 |
1,012 |
|||||||||||||||
|
Total other real estate owned |
1,304 |
204 |
651 |
1,381 |
1,587 |
|||||||||||||||
|
Total non-performing assets |
$ |
24,487 |
$ |
15,376 |
$ |
16,657 |
$ |
18,911 |
$ |
22,765 |
||||||||||
|
Loans 30-89 days past due: |
||||||||||||||||||||
|
Residential real estate |
$ |
3,590 |
$ |
1,153 |
$ |
1,287 |
$ |
798 |
$ |
1,303 |
||||||||||
|
Commercial real estate |
4,295 |
1,281 |
586 |
959 |
381 |
|||||||||||||||
|
Commercial |
802 |
497 |
718 |
144 |
656 |
|||||||||||||||
|
Consumer |
1,255 |
315 |
897 |
707 |
891 |
|||||||||||||||
|
Total loans 30-89 days past due |
$ |
9,942 |
$ |
3,246 |
$ |
3,488 |
$ |
2,608 |
$ |
3,231 |
||||||||||
|
Allowance for loan losses at the beginning of the period |
$ |
21,116 |
$ |
21,116 |
$ |
21,116 |
$ |
21,116 |
$ |
21,590 |
||||||||||
|
Provision for loan losses |
1,938 |
972 |
691 |
440 |
2,224 |
|||||||||||||||
|
Charge-offs: |
||||||||||||||||||||
|
Residential real estate |
801 |
468 |
292 |
113 |
785 |
|||||||||||||||
|
Commercial real estate |
481 |
174 |
103 |
55 |
361 |
|||||||||||||||
|
Commercial |
655 |
387 |
243 |
159 |
1,544 |
|||||||||||||||
|
Consumer |
679 |
481 |
260 |
97 |
754 |
|||||||||||||||
|
Total charge-offs |
2,616 |
1,510 |
898 |
424 |
3,444 |
|||||||||||||||
|
Total recoveries |
728 |
554 |
285 |
133 |
746 |
|||||||||||||||
|
Net charge-offs |
1,888 |
956 |
613 |
291 |
2,698 |
|||||||||||||||
|
Allowance for loan losses at the end of the period |
$ |
21,166 |
$ |
21,132 |
$ |
21,194 |
$ |
21,265 |
$ |
21,116 |
||||||||||
|
Components of allowance for credit losses: |
||||||||||||||||||||
|
Allowance for loan losses |
$ |
21,166 |
$ |
21,132 |
$ |
21,194 |
$ |
21,265 |
$ |
21,116 |
||||||||||
|
Liability for unfunded credit commitments |
22 |
24 |
26 |
23 |
17 |
|||||||||||||||
|
Allowance for credit losses |
$ |
21,188 |
$ |
21,156 |
$ |
21,220 |
$ |
21,288 |
$ |
21,133 |
||||||||||
|
Ratios: |
||||||||||||||||||||
|
Non-performing loans to total loans |
0.93 |
% |
0.83 |
% |
0.89 |
% |
0.98 |
% |
1.19 |
% | ||||||||||
|
Non-performing assets to total assets |
0.66 |
% |
0.54 |
% |
0.59 |
% |
0.67 |
% |
0.82 |
% | ||||||||||
|
Allowance for loan losses to total loans |
0.85 |
% |
1.15 |
% |
1.17 |
% |
1.19 |
% |
1.19 |
% | ||||||||||
|
Net charge-offs to average loans (annualized) |
||||||||||||||||||||
|
Quarter-to-date |
0.16 |
% |
0.08 |
% |
0.07 |
% |
0.07 |
% |
0.23 |
% | ||||||||||
|
Year-to-date |
0.10 |
% |
0.07 |
% |
0.07 |
% |
0.07 |
% |
0.16 |
% | ||||||||||
|
Allowance for loan losses to non-performing loans |
91.30 |
% |
139.27 |
% |
132.41 |
% |
121.30 |
% |
99.70 |
% | ||||||||||
|
Loans 30-89 days past due to total loans |
0.40 |
% |
0.18 |
% |
0.19 |
% |
0.15 |
% |
0.18 |
% | ||||||||||
|
(1) As part of the SBM acquisition, the Company acquired $10.6 million of loans designated as non-accrual. | ||||||||||||||||||||
|
(2) As part of the SBM acquisition, the Company acquired properties designated as real estate owned totaling $729,000. In conjunction with the SBM acquisition, the Company consolidated certain branch locations and two of these branches were designated as real estate owned totaling $401,000. | ||||||||||||||||||||
|
Reconciliation of non-GAAP to GAAP Financial Measures | ||||||||||||||||||||
|
Efficiency Ratio: | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
(In thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | |||||||||||||||
|
Non-interest expense, as presented |
$ |
31,470 |
$ |
16,711 |
$ |
16,301 |
$ |
81,139 |
$ |
62,397 |
||||||||||
|
Less: merger and acquisition costs |
8,786 |
766 |
— |
10,415 |
— |
|||||||||||||||
|
Adjusted non-interest expense |
$ |
22,684 |
$ |
15,945 |
$ |
16,301 |
$ |
70,724 |
$ |
62,397 |
||||||||||
|
Net interest income, as presented |
$ |
26,371 |
$ |
20,012 |
$ |
19,236 |
$ |
86,452 |
$ |
76,257 |
||||||||||
|
Add: effect of tax-exempt income(1) |
523 |
483 |
320 |
1,763 |
1,157 |
|||||||||||||||
|
Non-interest income, as presented |
8,464 |
6,561 |
6,221 |
27,482 |
24,370 |
|||||||||||||||
|
Less: net gain on sale of securities |
— |
4 |
— |
4 |
451 |
|||||||||||||||
|
Adjusted net interest income plus non-interest income |
$ |
35,358 |
$ |
27,052 |
$ |
25,777 |
$ |
115,693 |
$ |
101,333 |
||||||||||
|
Non-GAAP efficiency ratio |
64.16 |
% |
58.94 |
% |
63.24 |
% |
61.13 |
% |
61.58 |
% | ||||||||||
|
GAAP efficiency ratio |
90.34 |
% |
62.89 |
% |
64.03 |
% |
71.22 |
% |
62.01 |
% | ||||||||||
|
(1) Assumed a 35.0% tax rate. | ||||||||||||||||||||
|
Tax-Equivalent Net Interest Income: | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
(In thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | |||||||||||||||
|
Net interest income, as presented |
$ |
26,371 |
$ |
20,012 |
$ |
19,236 |
$ |
86,452 |
$ |
76,257 |
||||||||||
|
Add: effect of tax-exempt income(1) |
523 |
483 |
320 |
1,763 |
1,157 |
|||||||||||||||
|
Net interest income, tax equivalent |
$ |
26,894 |
$ |
20,495 |
$ |
19,556 |
$ |
88,215 |
$ |
77,414 |
||||||||||
|
(1) Assumed a 35.0% tax rate. |
||||||||||||||||||||
|
Tangible Book Value Per Share and Tangible Equity To Tangible Assets: | ||||||||||||
|
(In thousands, except number of shares and per share data) |
December 31, |
September 30, |
December 31, | |||||||||
|
Tangible Book Value Per Share: |
||||||||||||
|
Shareholders' equity, as presented |
$ |
363,190 |
$ |
259,403 |
$ |
245,109 |
||||||
|
Less: goodwill and other intangible assets |
104,324 |
47,309 |
48,171 |
|||||||||
|
Tangible equity |
$ |
258,866 |
$ |
212,094 |
$ |
196,938 |
||||||
|
Shares outstanding at period end |
10,220,478 |
7,454,045 |
7,426,222 |
|||||||||
|
Tangible book value per share |
$ |
25.33 |
$ |
28.45 |
$ |
26.52 |
||||||
|
Book value per share |
$ |
35.54 |
$ |
34.80 |
$ |
33.01 |
||||||
|
Tangible Equity to Tangible Assets: |
||||||||||||
|
Total assets |
$ |
3,709,871 |
$ |
2,871,798 |
$ |
2,789,853 |
||||||
|
Less: goodwill and other intangibles |
104,324 |
47,309 |
48,171 |
|||||||||
|
Tangible assets |
$ |
3,605,547 |
$ |
2,824,489 |
$ |
2,741,682 |
||||||
|
Tangible equity to tangible assets |
7.18 |
% |
7.51 |
% |
7.18 |
% | ||||||
|
Shareholders' equity to total assets |
9.79 |
% |
9.03 |
% |
8.79 |
% | ||||||
|
Core Operating Earnings, Core Diluted EPS, Core Return on Average Assets, and Core Return on Average Equity: | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
(In thousands, except per share data) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | |||||||||||||||
|
Core Operating Earnings: |
||||||||||||||||||||
|
Net income, as presented |
$ |
1,692 |
$ |
6,456 |
$ |
6,088 |
$ |
20,952 |
$ |
24,570 |
||||||||||
|
Merger and acquisition costs, net of tax(1) |
5,970 |
498 |
— |
7,237 |
— |
|||||||||||||||
|
Gains on sale of securities, net of tax(2) |
— |
(3) |
— |
(3) |
(293) |
|||||||||||||||
|
Core operating earnings |
$ |
7,662 |
$ |
6,951 |
$ |
6,088 |
$ |
28,186 |
$ |
24,277 |
||||||||||
|
Core Diluted EPS: |
||||||||||||||||||||
|
Diluted EPS, as presented |
$ |
0.17 |
$ |
0.86 |
$ |
0.82 |
$ |
2.60 |
$ |
3.28 |
||||||||||
|
Non-core transactions impact |
0.61 |
0.07 |
— |
0.89 |
(0.04) |
|||||||||||||||
|
Core diluted EPS |
$ |
0.78 |
$ |
0.93 |
$ |
0.82 |
$ |
3.49 |
$ |
3.24 |
||||||||||
|
Core Return on Average Assets: |
||||||||||||||||||||
|
Return on average assets, as presented |
0.19 |
% |
0.90 |
% |
0.88 |
% |
0.70 |
% |
0.92 |
% | ||||||||||
|
Non-core transactions impact |
0.67 |
% |
0.07 |
% |
— |
0.24 |
% |
(0.02) |
% | |||||||||||
|
Core return on average assets |
0.86 |
% |
0.97 |
% |
0.88 |
% |
0.94 |
% |
0.90 |
% | ||||||||||
|
Core Return on Average Equity: |
||||||||||||||||||||
|
Return on average equity, as presented |
1.91 |
% |
9.99 |
% |
9.92 |
% |
7.54 |
% |
10.37 |
% | ||||||||||
|
Non-core transactions impact |
6.73 |
% |
0.77 |
% |
— |
2.61 |
% |
(0.12) |
% | |||||||||||
|
Core return on average equity |
8.64 |
% |
10.76 |
% |
9.92 |
% |
10.15 |
% |
10.25 |
% | ||||||||||
|
(1) Assumed 35.0% tax rate for deductible expenses. |
||||||||||||||||||||
|
(2) Assumed 35.0% tax rate. |
||||||||||||||||||||
|
Core Return on Average Tangible Equity: | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
(In thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | |||||||||||||||
|
Net income, as presented |
$ |
1,692 |
$ |
6,456 |
$ |
6,088 |
$ |
20,952 |
$ |
24,570 |
||||||||||
|
Amortization of intangible assets, net of tax(1) |
289 |
187 |
187 |
849 |
746 |
|||||||||||||||
|
Merger and acquisition costs, net of tax(2) |
5,970 |
498 |
— |
7,237 |
— |
|||||||||||||||
|
Gains on sale of securities, net of tax(1) |
— |
(3) |
— |
(3) |
(293) |
|||||||||||||||
|
Core tangible operating earnings |
$ |
7,951 |
$ |
7,138 |
$ |
6,275 |
$ |
29,035 |
$ |
25,023 |
||||||||||
|
Average equity |
$ |
351,642 |
$ |
256,326 |
$ |
243,598 |
$ |
277,716 |
$ |
236,849 |
||||||||||
|
Less: average goodwill and other intangible assets |
87,814 |
47,446 |
48,306 |
57,833 |
48,735 |
|||||||||||||||
|
Average tangible equity |
$ |
263,828 |
$ |
208,880 |
$ |
195,292 |
$ |
219,883 |
$ |
188,114 |
||||||||||
|
Core return on average tangible equity |
11.96 |
% |
13.56 |
% |
12.75 |
% |
13.20 |
% |
13.30 |
% | ||||||||||
|
Return on average equity |
1.91 |
% |
9.99 |
% |
9.92 |
% |
7.54 |
% |
10.37 |
% | ||||||||||
|
(1) Assumed 35.0% tax rate. |
||||||||||||||||||||
|
(2) Assumed 35.0% tax rate for deductible expenses. |
||||||||||||||||||||
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SOURCE Camden National Corporation
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