Camden National Corporation Reports An 8% Increase In Third Quarter 2015 Core Operating Earnings
CAMDEN, Maine, Oct. 27, 2015 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC) ("Camden National" or the "Company"), a $2.9 billion bank holding company headquartered in Camden, Maine, reported third quarter 2015 core operating earnings1 and core diluted earnings per share ("EPS")1 of $7.0 million and $0.93 per share, respectively, representing increases of 8% over the third quarter of 2014. Our third quarter 2015 net income and diluted EPS of $6.5 million and $0.86 per share, respectively, as presented in accordance with accounting principles generally accepted in the United States ("GAAP"), was flat compared to the third quarter of 2014, as it included one-time costs of $766,000 related to the merger with SBM Financial, Inc. ("SBM") in the third quarter of 2015 that closed on October 16, 2015.
"The Company continues to deliver strong financial results while overseeing the successful merger of SBM and its subsidiary bank, The Bank of Maine, into Camden National and Camden National Bank," said Gregory A. Dufour, president and chief executive officer of the Company.
Core operating earnings1 and core diluted EPS1 for the nine months ended September 30, 2015 were $20.5 million and $2.74 per share, respectively, representing increases of 13% over the same period of 2014. GAAP net income and diluted EPS for the nine months ended September 30, 2015 were $19.3 million and $2.57, respectively, representing increases of 4% over the same period of 2014.
Dufour added, "We completed the merger of SBM into Camden National on October 16, 2015, marking a significant milestone in the 140 year history of Camden National. The merger of these two companies not only creates size and scale but allows Camden to increase its visibility and viability within southern Maine markets with an immediate and already established presence, while expanding our mortgage origination capabilities across New England."
Financial Highlights
- Third quarter 2015 core operating earnings increased $500,000, or 8%, over the third quarter of 2014, while year-to-date September 30, 2015 core operating earnings increased $2.3 million, or 13%, over the same period of 2014
- Third quarter 2015 core diluted EPS increased $0.07 per share, or 8%, over the third quarter of 2014, while year-to-date September 30, 2015 core diluted EPS increased $0.32 per share, or 13%
- Asset quality continues to improve as non-performing assets to total assets of 0.54% at September 30, 2015 decreased 5 basis points since the prior quarter and 28 basis points since year-end
- On October 16, 2015, Camden National and SBM completed their merger, creating Maine's largest community bank and significantly expanding the franchise within Southern Maine
Balance Sheet
Total assets at September 30, 2015 were $2.9 billion, representing an increase of $81.9 million, or 3%, since year-end. The growth in total assets was driven primarily by an increase in loans (including loans held for sale) of $58.4 million, or 3%. Our loan growth was centered within the commercial real estate portfolio, which has increased $50.3 million since December 31, 2014. Our commercial loan portfolio now makes up 52% due to our continued focus on becoming Maine's business bank and supporting the growth and economic development across all communities that we serve. The retail loan portfolio saw modest growth of $6.7 million, or 1%, since year-end, which is in large part due to our strategic shift in 2015 to sell all 30-year mortgage production. For the nine months ended September 30, 2015, the Company has sold $24.5 million of 30-year mortgage production.
__________________________________________________________________________________
|
1 This is a non-GAAP measure. Please refer to the "Reconciliation of non-GAAP to GAAP Financial Measures" for further details. |
Total deposits (excluding brokered deposits) at September 30, 2015 were $1.8 billion, representing an increase of $64.9 million, or 4%, since year-end. Non-interest bearing demand deposits increased $45.6 million, or 17%, at September 30, 2015 compared to year-end largely due to the seasonality of core deposits within our markets across Maine, but we also experienced a $26.8 million, or 10%, increase over September 30, 2014. Certificates of deposit increased $22.8 million since year-end as one significant depositor shifted funds into a 6-month term in the third quarter of 2015. Total borrowings (including brokered deposits) were $792.8 million at September 30, 2015, representing a decrease of $1.9 million since year-end. The decrease is due to the seasonal inflow of core deposits.
Third Quarter 2015 Core Operating Results
Core operating earnings for the third quarter of 2015 totaled $7.0 million, representing an increase of $500,000, or 8%, compared to the third quarter of 2014. The primary factors driving the increase in core operating earnings were:
- Net interest income on a fully-taxable basis increased $801,000 to $20.5 million compared to the third quarter of 2014. The 4% increase in net interest income was primarily driven by an increase in average loan balances of $101.0 million, or 6%, and partially offset by a 2 basis point decrease in net interest margin to 3.08%.
- Non-interest income, excluding gains on the sale of investment securities, increased $603,000 to $6.6 million compared to the third quarter last year. This 10% increase was driven by higher mortgage banking income of $335,000 from mortgage sales and $435,000 of income recognized on loan swaps in the third quarter of 2015 that did not occur in the third quarter of 2014.
- Provision for credit losses of $279,000 for the third quarter of 2015 was $260,000 lower than the same period last year. The decrease in the provision was reflective of continued asset quality improvement, highlighted by a decrease in our non-performing loans to total loans of 52 basis points to 0.83% since September 30, 2014. Net charge-offs to average loans (annualized) for the third quarter of 2015 were 0.08%, representing a 12 basis points improvement over the same period last year, while loans 30-89 days past due to total loans at September 30, 2015 were 0.18% compared to 0.38% a year ago.
- Non-interest expense, excluding non-recurring costs associated with the merger, increased 5% to $15.9 million for the third quarter of 2015 compared to the third quarter of 2014. The increase is due to higher salaries and employee benefits of $613,000, which was driven by normal employee merit increases and higher incentive accruals due to strong year-to-date performance. Other operating expenses increased $222,000 due to costs associated with enhancing our website platform and statement mailings totaling $123,000, and higher losses associated with check and debit card fraud of $71,000.
Year-To-Date Core Operating Results
Core operating earnings for the nine-months ended September 30, 2015 totaled $20.5 million, representing an increase of $2.3 million, or 13%, compared to the same period of 2014. The primary factors driving the increase in core operating earnings were:
- Net interest income on a fully-taxable basis increased $3.5 million to $61.3 million compared to the same period last year. This 6% increase was driven by average loan portfolio growth of $138.9 million, or 8%. Net interest margin increased 2 basis points to 3.12% compared to the same period a year ago. The increase was driven by a full pay-off of one significant commercial real estate loan in the second quarter of 2015 that was on non-accrual status. The Company recognized $734,000 of interest income upon pay-off of this loan, and excluding this one-time event, net interest margin for the nine months ended September 30, 2015 decreased 2 basis points to 3.08% basis points compared to a the same period a year ago.
- Non-interest income, excluding gains on the sale of investment securities, increased $1.3 million to $19.0 million compared to the same period last year. This 7% increase was driven by higher mortgage banking income of $778,000, incremental bank-owned life insurance income of $292,000 from the additional $10.0 million investment made in the third quarter last year, and higher income on loan swaps of $458,000.
- Provision for credit losses of $979,000 for the nine months ended September 30, 2015 was $696,000 lower than the same period last year. The decrease in the provision has been due to the asset quality improvement across our loan portfolios, highlighted by a 35% decrease in non-performing loans and a 38% decrease in non-performing assets at September 30, 2015 compared to a year ago. A decrease of 6 basis points in our net charge-offs (annualized) to average loans also contributed to a lower provision compared to the same period a year ago.
- Non-interest expense, excluding non-recurring costs associated with the merger, increased 4% to $48.0 million for the nine months ended September 30, 2015 compared to the same period last year. The increase is primarily due to the increase in salaries and employee benefits of $1.2 million, or 5%, which was driven by normal employee merit increases and higher incentive accruals due to strong year-to-date performance. Other factors include an increase in systems and data processing costs of $294,000 driven by internal systems and software upgrades to enhance the functionality and experience for our customers and employees and higher losses associated with check and debit card fraud of $121,000.
Dividends and Capital
The board of directors approved a dividend of $0.30 per share, payable on October 30, 2015, to shareholders of record as of October 19, 2015. This distribution represents an annualized dividend yield of 2.97%, based on the September 30, 2015 closing price of Camden National's common stock at $40.40 per share as reported by NASDAQ.
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 14.76%, 13.67%, 11.44%, and 9.41%, respectively, at September 30, 2015. Camden National and Camden National Bank exceeded the minimum total, Tier I, and common equity Tier I risk-based capital ratios of 10%, 8%, and 6.5%, respectively, and the minimum Tier I leverage capital ratio of 5% required by the Federal Reserve for an institution to be considered "well capitalized" under Basel III capital requirements.
On October 8, 2015, the Company issued $15.0 million in aggregate principal amount of 5.50% fixed rate subordinated notes due 2025 to certain institutional accredited investors. The notes were issued at par and are redeemable, in whole or in part, on or after October 8, 2020 and at any time upon the occurrences of certain events. The Company intends to use the proceeds for general corporate purposes, including for the provision of additional liquidity and working capital. The notes qualify as Tier II capital and will be included as such within the Company's total risk-based capital ratio.
The Merger of Camden National and SBM Financial, Inc.
On October 16, 2015, the Company and SBM completed the merger of the two companies. Under the terms of the Agreement and Plan of Merger, dated as of March 29, 2015 ("Merger Agreement"), each outstanding share of SBM common stock was converted into, subject to the allocation and proration procedures described in the Merger Agreement, either: (1) $206.00 in cash, without interest, or (2) 5.421 shares of common stock of Camden National.
Based on Camden National's closing stock price on October 16, 2015 of $39.48 per share, total consideration paid for SBM was $134.7 million. As of October 16, 2015, SBM's total assets were approximately $815 million, total net loans were approximately $640 million, and total deposits and borrowings were approximately $710 million. These balances are unaudited and do not include any adjustments for purchase accounting.
Upon completion of the merger on October 16, 2015, the Company had 10,203,807 shares of common stock outstanding, which includes the 2,749,762 shares of common stock issued as consideration for the merger.
Conference Call
Camden National will host a conference call and webcast at 9:00 a.m. eastern time on October 29, 2015 to discuss our third quarter 2015 financial results, business results and outlook. Participants should dial-in to the call 10 - 15 minutes before it begins. Information about the conference call is as follows:
Live dial-in (domestic): (888) 349-0139
Live dial-in (international): (412) 542-4154
Live webcast: http://services.choruscall.com/links/cac151029
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 on October 29, 2015. 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 is the holding company of Camden National Bank and Acadia Trust, N.A. Camden National Bank is a full-service community bank with a network of 64 branches and 85 ATMs throughout Maine. Acadia Trust, N.A. offers investment management and fiduciary services through its offices in Portland, Bangor and Ellsworth. Healthcare Professional Funding Corporation, a subsidiary of Camden National Bank, is a leader in financing for providers of dental, veterinary and eye care. Camden Financial Consultants, a division of Camden National Bank, provides full-service brokerage and insurance services. 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 from the merger or in achieving such cost savings within the expected time frame, difficulties in integrating Camden National and SBM, 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 Financial Measures
In addition to evaluating the Company's results of operations in accordance with GAAP, management supplements this evaluation with certain non-GAAP financial measures, such as the efficiency, tangible assets and equity, 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 | |||||||||||||||||||
|
In thousands, except number of shares and per share data |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
|
Financial Condition Data |
||||||||||||||||||||
|
Investments |
$ |
820,052 |
$ |
822,991 |
$ |
803,675 |
$ |
820,052 |
$ |
803,675 |
||||||||||
|
Loans and loans held for sale |
1,831,033 |
1,808,433 |
1,726,227 |
1,831,033 |
1,726,227 |
|||||||||||||||
|
Allowance for loan losses |
(21,132) |
(21,194) |
(21,585) |
(21,132) |
(21,585) |
|||||||||||||||
|
Total assets |
2,871,798 |
2,837,921 |
2,741,989 |
2,871,798 |
2,741,989 |
|||||||||||||||
|
Deposits |
2,008,177 |
1,981,131 |
1,928,543 |
2,008,177 |
1,928,543 |
|||||||||||||||
|
Borrowings |
563,905 |
564,097 |
541,227 |
563,905 |
541,227 |
|||||||||||||||
|
Shareholders' equity |
259,403 |
254,540 |
239,912 |
259,403 |
239,912 |
|||||||||||||||
|
Operating Data |
||||||||||||||||||||
|
Net interest income |
$ |
20,012 |
$ |
20,635 |
$ |
19,369 |
$ |
60,081 |
$ |
57,020 |
||||||||||
|
Provision for credit losses |
279 |
254 |
539 |
979 |
1,675 |
|||||||||||||||
|
Non-interest income |
6,561 |
6,310 |
5,954 |
19,018 |
18,150 |
|||||||||||||||
|
Non-interest expense |
16,711 |
16,157 |
15,179 |
49,669 |
46,096 |
|||||||||||||||
|
Income before income taxes |
9,583 |
10,534 |
9,605 |
28,451 |
27,399 |
|||||||||||||||
|
Income tax expense |
3,127 |
3,341 |
3,154 |
9,191 |
8,917 |
|||||||||||||||
|
Net income |
$ |
6,456 |
$ |
7,193 |
$ |
6,451 |
$ |
19,260 |
$ |
18,482 |
||||||||||
|
Core operating earnings(1) |
$ |
6,951 |
$ |
7,308 |
$ |
6,451 |
$ |
20,523 |
$ |
18,189 |
||||||||||
|
Key Ratios |
||||||||||||||||||||
|
Return on average assets |
0.90 |
% |
1.02 |
% |
0.94 |
% |
0.91 |
% |
0.93 |
% | ||||||||||
|
Core return on average assets(1) |
0.97 |
% |
1.04 |
% |
0.94 |
% |
0.97 |
% |
0.91 |
% | ||||||||||
|
Return on average equity |
9.99 |
% |
11.35 |
% |
10.70 |
% |
10.19 |
% |
10.53 |
% | ||||||||||
|
Core return on average equity(1) |
10.76 |
% |
11.53 |
% |
10.70 |
% |
10.86 |
% |
10.37 |
% | ||||||||||
|
Core return on average tangible equity(1) |
13.56 |
% |
14.56 |
% |
13.82 |
% |
13.75 |
% |
13.50 |
% | ||||||||||
|
Tangible equity to tangible assets(1) |
7.51 |
% |
7.42 |
% |
7.11 |
% |
7.51 |
% |
7.11 |
% | ||||||||||
|
Efficiency ratio(1) |
58.94 |
% |
58.60 |
% |
59.18 |
% |
59.80 |
% |
61.01 |
% | ||||||||||
|
Yield on average interest-earning assets |
3.54 |
% |
3.67 |
% |
3.58 |
% |
3.58 |
% |
3.59 |
% | ||||||||||
|
Average cost of funds |
0.47 |
% |
0.48 |
% |
0.49 |
% |
0.48 |
% |
0.50 |
% | ||||||||||
|
Net interest margin |
3.08 |
% |
3.21 |
% |
3.10 |
% |
3.12 |
% |
3.10 |
% | ||||||||||
|
Non-performing loans to total loans |
0.83 |
% |
0.89 |
% |
1.35 |
% |
0.83 |
% |
1.35 |
% | ||||||||||
|
Non-performing assets to total assets |
0.54 |
% |
0.59 |
% |
0.90 |
% |
0.54 |
% |
0.90 |
% | ||||||||||
|
Annualized charge-offs to average loans |
0.08 |
% |
0.07 |
% |
0.20 |
% |
0.07 |
% |
0.13 |
% | ||||||||||
|
Tier I leverage capital ratio(2) |
9.41 |
% |
9.39 |
% |
9.15 |
% |
9.41 |
% |
9.15 |
% | ||||||||||
|
Common equity tier I risk-based capital ratio(2) |
11.44 |
% |
11.40 |
% |
— |
11.44 |
% |
— |
||||||||||||
|
Tier I risk-based capital ratio(2) |
13.67 |
% |
13.66 |
% |
13.90 |
% |
13.67 |
% |
13.90 |
% | ||||||||||
|
Total risk-based capital ratio(2) |
14.76 |
% |
14.78 |
% |
15.14 |
% |
14.76 |
% |
15.14 |
% | ||||||||||
|
Per Share Data |
||||||||||||||||||||
|
Basic earnings per share |
$ |
0.86 |
$ |
0.97 |
$ |
0.87 |
$ |
2.58 |
$ |
2.47 |
||||||||||
|
Diluted earnings per share |
$ |
0.86 |
$ |
0.96 |
$ |
0.86 |
$ |
2.57 |
$ |
2.46 |
||||||||||
|
Core diluted earnings per share(1) |
$ |
0.93 |
$ |
0.97 |
$ |
0.86 |
$ |
2.74 |
$ |
2.42 |
||||||||||
|
Cash dividends declared per share |
$ |
0.30 |
$ |
0.30 |
$ |
0.27 |
$ |
0.90 |
$ |
0.81 |
||||||||||
|
Book value per share |
$ |
34.80 |
$ |
34.17 |
$ |
32.33 |
$ |
34.80 |
$ |
32.33 |
||||||||||
|
Tangible book value per share(1) |
$ |
28.45 |
$ |
27.78 |
$ |
25.80 |
$ |
28.45 |
$ |
25.80 |
||||||||||
|
Weighted average number of common shares outstanding |
7,453,222 |
7,446,156 |
7,421,592 |
7,443,543 |
7,459,972 |
|||||||||||||||
|
Diluted weighted average number of common shares outstanding |
7,477,039 |
7,467,365 |
7,439,948 |
7,464,484 |
7,479,327 |
|||||||||||||||
|
(1) Please see "Reconciliation of non-GAAP to GAAP Financial Measures." |
|
Consolidated Statements of Condition Data (unaudited) | ||||||||
|
(In thousands, except number of shares) |
September 30, 2015 |
December 31, | ||||||
|
ASSETS |
||||||||
|
Cash and due from banks |
$ |
66,644 |
$ |
60,813 |
||||
|
Securities: |
||||||||
|
Available-for-sale securities, at fair value |
724,237 |
763,063 |
||||||
|
Held-to-maturity securities, at amortized cost |
75,368 |
20,179 |
||||||
|
Federal Home Loan Bank and Federal Reserve Bank stock, at cost |
20,447 |
20,391 |
||||||
|
Total securities |
820,052 |
803,633 |
||||||
|
Loans held for sale |
890 |
— |
||||||
|
Loans |
1,830,143 |
1,772,610 |
||||||
|
Less: allowance for loan losses |
(21,132) |
(21,116) |
||||||
|
Net loans |
1,809,011 |
1,751,494 |
||||||
|
Bank-owned life insurance |
59,090 |
57,800 |
||||||
|
Goodwill and other intangible assets |
47,309 |
48,171 |
||||||
|
Premises and equipment, net |
23,567 |
23,886 |
||||||
|
Deferred tax assets |
12,875 |
14,434 |
||||||
|
Interest receivable |
6,577 |
6,017 |
||||||
|
Other real estate owned |
204 |
1,587 |
||||||
|
Other assets |
25,579 |
22,018 |
||||||
|
Total assets |
$ |
2,871,798 |
$ |
2,789,853 |
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
|
Liabilities |
||||||||
|
Deposits: |
||||||||
|
Demand |
$ |
308,576 |
$ |
263,013 |
||||
|
Interest checking |
480,065 |
480,521 |
||||||
|
Savings and money market |
650,701 |
653,708 |
||||||
|
Certificates of deposit |
339,937 |
317,123 |
||||||
|
Brokered deposits |
228,898 |
217,732 |
||||||
|
Total deposits |
2,008,177 |
1,932,097 |
||||||
|
Federal Home Loan Bank advances |
55,000 |
56,039 |
||||||
|
Other borrowed funds |
464,804 |
476,939 |
||||||
|
Junior subordinated debentures |
44,101 |
44,024 |
||||||
|
Accrued interest and other liabilities |
40,313 |
35,645 |
||||||
|
Total liabilities |
2,612,395 |
2,544,744 |
||||||
|
Shareholders' Equity |
||||||||
|
Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 7,454,045 and 7,426,222 shares as of September 30, 2015 and December 31, 2014, respectively |
42,072 |
41,555 |
||||||
|
Retained earnings |
223,682 |
211,979 |
||||||
|
Accumulated other comprehensive income (loss): |
||||||||
|
Net unrealized gains (losses) on available-for-sale securities, net of tax |
2,880 |
(319) |
||||||
|
Net unrealized losses on derivative instruments, net of tax |
(7,184) |
(5,943) |
||||||
|
Net unrecognized losses on postretirement plans, net of tax |
(2,047) |
(2,163) |
||||||
|
Total accumulated other comprehensive (loss) |
(6,351) |
(8,425) |
||||||
|
Total shareholders' equity |
259,403 |
245,109 |
||||||
|
Total liabilities and shareholders' equity |
$ |
2,871,798 |
$ |
2,789,853 |
||||
|
Consolidated Statements of Income Data (unaudited) | ||||||||
|
For The Three Months Ended September 30, | ||||||||
|
(In thousands, except per share data) |
2015 |
2014 | ||||||
|
Interest Income |
||||||||
|
Interest and fees on loans |
$ |
18,651 |
$ |
18,112 |
||||
|
Interest on U.S. government and sponsored enterprise obligations |
3,598 |
3,896 |
||||||
|
Interest on state and political subdivision obligations |
624 |
319 |
||||||
|
Interest on federal funds sold and other investments |
183 |
90 |
||||||
|
Total interest income |
23,056 |
22,417 |
||||||
|
Interest Expense |
||||||||
|
Interest on deposits |
1,557 |
1,562 |
||||||
|
Interest on borrowings |
849 |
848 |
||||||
|
Interest on junior subordinated debentures |
638 |
638 |
||||||
|
Total interest expense |
3,044 |
3,048 |
||||||
|
Net interest income |
20,012 |
19,369 |
||||||
|
Provision for credit losses |
279 |
539 |
||||||
|
Net interest income after provision for credit losses |
19,733 |
18,830 |
||||||
|
Non-Interest Income |
||||||||
|
Service charges on deposit accounts |
1,554 |
1,600 |
||||||
|
Other service charges and fees |
1,682 |
1,646 |
||||||
|
Income from fiduciary services |
1,177 |
1,212 |
||||||
|
Brokerage and insurance commissions |
411 |
441 |
||||||
|
Bank-owned life insurance |
443 |
377 |
||||||
|
Mortgage banking income, net |
390 |
55 |
||||||
|
Net gain on sale of securities |
4 |
— |
||||||
|
Other income |
900 |
623 |
||||||
|
Total non-interest income |
6,561 |
5,954 |
||||||
|
Non-Interest Expense |
||||||||
|
Salaries and employee benefits |
8,691 |
8,078 |
||||||
|
Furniture, equipment and data processing |
1,705 |
1,704 |
||||||
|
Net occupancy costs |
1,194 |
1,175 |
||||||
|
Consulting and professional fees |
470 |
468 |
||||||
|
Other real estate owned and collection costs |
543 |
637 |
||||||
|
Regulatory assessments |
513 |
511 |
||||||
|
Amortization of intangible assets |
288 |
287 |
||||||
|
Merger and acquisition costs |
766 |
— |
||||||
|
Other expenses |
2,541 |
2,319 |
||||||
|
Total non-interest expense |
16,711 |
15,179 |
||||||
|
Income before income taxes |
9,583 |
9,605 |
||||||
|
Income Taxes |
3,127 |
3,154 |
||||||
|
Net Income |
$ |
6,456 |
$ |
6,451 |
||||
|
Per Share Data |
||||||||
|
Basic earnings per share |
$ |
0.86 |
$ |
0.87 |
||||
|
Diluted earnings per share |
$ |
0.86 |
$ |
0.86 |
||||
|
Consolidated Statements of Income Data (unaudited) | ||||||||
|
For The Nine Months Ended | ||||||||
|
(In thousands, except per share data) |
2015 |
2014 | ||||||
|
Interest Income |
||||||||
|
Interest and fees on loans |
$ |
56,077 |
$ |
52,649 |
||||
|
Interest on U.S. government and sponsored enterprise obligations |
11,187 |
12,250 |
||||||
|
Interest on state and political subdivision obligations |
1,504 |
927 |
||||||
|
Interest on federal funds sold and other investments |
393 |
266 |
||||||
|
Total interest income |
69,161 |
66,092 |
||||||
|
Interest Expense |
||||||||
|
Interest on deposits |
4,630 |
4,678 |
||||||
|
Interest on borrowings |
2,556 |
2,500 |
||||||
|
Interest on junior subordinated debentures |
1,894 |
1,894 |
||||||
|
Total interest expense |
9,080 |
9,072 |
||||||
|
Net interest income |
60,081 |
57,020 |
||||||
|
Provision for credit losses |
979 |
1,675 |
||||||
|
Net interest income after provision for credit losses |
59,102 |
55,345 |
||||||
|
Non-Interest Income |
||||||||
|
Service charges on deposit accounts |
4,634 |
4,689 |
||||||
|
Other service charges and fees |
4,776 |
4,584 |
||||||
|
Income from fiduciary services |
3,725 |
3,745 |
||||||
|
Brokerage and insurance commissions |
1,362 |
1,378 |
||||||
|
Bank-owned life insurance |
1,267 |
975 |
||||||
|
Mortgage banking income, net |
975 |
197 |
||||||
|
Net gain on sale of securities |
4 |
451 |
||||||
|
Other income |
2,275 |
2,131 |
||||||
|
Total non-interest income |
19,018 |
18,150 |
||||||
|
Non-Interest Expense |
||||||||
|
Salaries and employee benefits |
25,550 |
24,359 |
||||||
|
Furniture, equipment and data processing |
5,530 |
5,236 |
||||||
|
Net occupancy costs |
3,905 |
3,825 |
||||||
|
Consulting and professional fees |
1,734 |
1,768 |
||||||
|
Other real estate owned and collection costs |
1,554 |
1,665 |
||||||
|
Regulatory assessments |
1,534 |
1,477 |
||||||
|
Amortization of intangible assets |
862 |
861 |
||||||
|
Merger and acquisition costs |
1,629 |
— |
||||||
|
Other expenses |
7,371 |
6,905 |
||||||
|
Total non-interest expense |
49,669 |
46,096 |
||||||
|
Income before income taxes |
28,451 |
27,399 |
||||||
|
Income Taxes |
9,191 |
8,917 |
||||||
|
Net Income |
$ |
19,260 |
$ |
18,482 |
||||
|
Per Share Data |
||||||||
|
Basic earnings per share |
$ |
2.58 |
$ |
2.47 |
||||
|
Diluted earnings per share |
$ |
2.57 |
$ |
2.46 |
||||
|
Quarterly Average Balance, Interest and Yield/Rate Analysis (unaudited) | ||||||||||||||||||||||
|
At or for the Three Months Ended |
At or for the Three Months Ended | |||||||||||||||||||||
|
September 30, 2015 |
September 30, 2014 | |||||||||||||||||||||
|
(In thousands) |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate | ||||||||||||||||
|
Assets |
||||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||
|
Securities - taxable |
$ |
723,549 |
$ |
3,781 |
2.09 |
% |
$ |
755,114 |
$ |
3,986 |
2.11 |
% | ||||||||||
|
Securities - nontaxable(1) |
87,390 |
959 |
4.39 |
% |
38,884 |
491 |
5.05 |
% | ||||||||||||||
|
Loans(2): |
||||||||||||||||||||||
|
Residential real estate |
586,631 |
6,019 |
4.10 |
% |
570,737 |
6,030 |
4.23 |
% | ||||||||||||||
|
Commercial real estate |
677,329 |
7,326 |
4.23 |
% |
614,128 |
6,982 |
4.45 |
% | ||||||||||||||
|
Commercial(1) |
245,482 |
2,427 |
3.87 |
% |
229,079 |
2,257 |
3.85 |
% | ||||||||||||||
|
Municipal(1) |
16,379 |
131 |
3.16 |
% |
17,812 |
138 |
3.08 |
% | ||||||||||||||
|
Consumer |
297,721 |
2,896 |
3.86 |
% |
290,760 |
2,858 |
3.90 |
% | ||||||||||||||
|
Total loans |
1,823,542 |
18,799 |
4.07 |
% |
1,722,516 |
18,265 |
4.19 |
% | ||||||||||||||
|
Total interest-earning assets |
2,634,481 |
23,539 |
3.54 |
% |
2,516,514 |
22,742 |
3.58 |
% | ||||||||||||||
|
Cash and due from banks |
54,497 |
47,893 |
||||||||||||||||||||
|
Other assets |
178,119 |
171,639 |
||||||||||||||||||||
|
Less: allowance for loan losses |
(21,279) |
(21,829) |
||||||||||||||||||||
|
Total assets |
$ |
2,845,818 |
$ |
2,714,217 |
||||||||||||||||||
|
Liabilities & Shareholders' Equity |
||||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||||
|
Demand |
$ |
299,506 |
$ |
— |
— |
$ |
268,291 |
$ |
— |
— |
||||||||||||
|
Interest checking |
503,417 |
104 |
0.08 |
% |
456,072 |
79 |
0.07 |
% | ||||||||||||||
|
Savings |
281,556 |
42 |
0.06 |
% |
250,900 |
36 |
0.06 |
% | ||||||||||||||
|
Money market |
369,983 |
310 |
0.33 |
% |
406,084 |
295 |
0.29 |
% | ||||||||||||||
|
Certificates of deposit |
315,390 |
732 |
0.92 |
% |
325,144 |
759 |
0.93 |
% | ||||||||||||||
|
Total deposits |
1,769,852 |
1,188 |
0.27 |
% |
1,706,491 |
1,169 |
0.27 |
% | ||||||||||||||
|
Borrowings: |
||||||||||||||||||||||
|
Brokered deposits |
237,308 |
369 |
0.62 |
% |
188,420 |
393 |
0.83 |
% | ||||||||||||||
|
Junior subordinated debentures |
44,088 |
638 |
5.74 |
% |
43,986 |
638 |
5.75 |
% | ||||||||||||||
|
Other borrowings |
503,542 |
849 |
0.67 |
% |
506,268 |
848 |
0.66 |
% | ||||||||||||||
|
Total borrowings |
784,938 |
1,856 |
0.94 |
% |
738,674 |
1,879 |
1.01 |
% | ||||||||||||||
|
Total funding liabilities |
2,554,790 |
3,044 |
0.47 |
% |
2,445,165 |
3,048 |
0.49 |
% | ||||||||||||||
|
Other liabilities |
34,702 |
29,890 |
||||||||||||||||||||
|
Shareholders' equity |
256,326 |
239,162 |
||||||||||||||||||||
|
Total liabilities & shareholders' equity |
$ |
2,845,818 |
$ |
2,714,217 |
||||||||||||||||||
|
Net interest income (fully-taxable equivalent) |
20,495 |
19,694 |
||||||||||||||||||||
|
Less: fully-taxable equivalent adjustment |
(483) |
(325) |
||||||||||||||||||||
|
Net interest income |
$ |
20,012 |
$ |
19,369 |
||||||||||||||||||
|
Net interest rate spread (fully-taxable equivalent) |
3.07 |
% |
3.09 |
% | ||||||||||||||||||
|
Net interest margin (fully-taxable equivalent) |
3.08 |
% |
3.10 |
% | ||||||||||||||||||
|
(1) Reported on tax-equivalent basis calculated using a tax rate of 35.0%, including certain commercial loans. | ||||||||||||||||||||||
|
(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 Nine Months Ended |
At or for the Nine Months Ended | |||||||||||||||||||||
|
September 30, 2015 |
September 30, 2014 | |||||||||||||||||||||
|
(In thousands) |
Average |
Interest |
Yield/Rate |
Average |
Interest |
Yield/Rate | ||||||||||||||||
|
Assets |
||||||||||||||||||||||
|
Interest-earning assets: |
||||||||||||||||||||||
|
Securities - taxable |
$ |
736,077 |
$ |
11,580 |
2.10 |
% |
$ |
775,440 |
$ |
12,516 |
2.15 |
% | ||||||||||
|
Securities - nontaxable(1) |
69,195 |
2,313 |
4.46 |
% |
36,349 |
1,426 |
5.23 |
% | ||||||||||||||
|
Loans(2): |
||||||||||||||||||||||
|
Residential real estate |
585,655 |
18,087 |
4.12 |
% |
568,347 |
18,011 |
4.23 |
% | ||||||||||||||
|
Commercial real estate(3) |
663,032 |
22,319 |
4.44 |
% |
586,514 |
20,080 |
4.51 |
% | ||||||||||||||
|
Commercial(1) |
246,128 |
7,200 |
3.86 |
% |
204,811 |
6,093 |
3.92 |
% | ||||||||||||||
|
Municipal(1) |
13,641 |
349 |
3.42 |
% |
14,504 |
379 |
3.49 |
% | ||||||||||||||
|
Consumer |
294,088 |
8,552 |
3.89 |
% |
289,468 |
8,423 |
3.89 |
% | ||||||||||||||
|
Total loans |
1,802,544 |
56,507 |
4.16 |
% |
1,663,644 |
52,986 |
4.23 |
% | ||||||||||||||
|
Total interest-earning assets |
2,607,816 |
70,400 |
3.58 |
% |
2,475,433 |
66,928 |
3.59 |
% | ||||||||||||||
|
Cash and due from banks |
49,415 |
43,942 |
||||||||||||||||||||
|
Other assets |
179,408 |
169,269 |
||||||||||||||||||||
|
Less: allowance for loan losses |
(21,303) |
(21,776) |
||||||||||||||||||||
|
Total assets |
$ |
2,815,336 |
$ |
2,666,868 |
||||||||||||||||||
|
Liabilities & Shareholders' Equity |
||||||||||||||||||||||
|
Deposits: |
||||||||||||||||||||||
|
Demand |
$ |
271,665 |
$ |
— |
— |
$ |
241,255 |
$ |
— |
— |
||||||||||||
|
Interest checking |
493,501 |
291 |
0.08 |
% |
461,040 |
237 |
0.07 |
% | ||||||||||||||
|
Savings |
272,773 |
119 |
0.06 |
% |
246,822 |
104 |
0.06 |
% | ||||||||||||||
|
Money market |
378,507 |
895 |
0.32 |
% |
417,069 |
915 |
0.29 |
% | ||||||||||||||
|
Certificates of deposit |
313,705 |
2,172 |
0.93 |
% |
331,966 |
2,336 |
0.94 |
% | ||||||||||||||
|
Total deposits |
1,730,151 |
3,477 |
0.27 |
% |
1,698,152 |
3,592 |
0.28 |
% | ||||||||||||||
|
Borrowings: |
||||||||||||||||||||||
|
Brokered deposits |
237,852 |
1,153 |
0.65 |
% |
145,798 |
1,086 |
1.00 |
% | ||||||||||||||
|
Junior subordinated debentures |
44,063 |
1,894 |
5.75 |
% |
43,961 |
1,894 |
5.76 |
% | ||||||||||||||
|
Other borrowings |
514,336 |
2,556 |
0.66 |
% |
515,383 |
2,500 |
0.65 |
% | ||||||||||||||
|
Total borrowings |
796,251 |
5,603 |
0.94 |
% |
705,142 |
5,480 |
1.04 |
% | ||||||||||||||
|
Total funding liabilities |
2,526,402 |
9,080 |
0.48 |
% |
2,403,294 |
9,072 |
0.50 |
% | ||||||||||||||
|
Other liabilities |
36,132 |
29,000 |
||||||||||||||||||||
|
Shareholders' equity |
252,802 |
234,574 |
||||||||||||||||||||
|
Total liabilities & shareholders' equity |
$ |
2,815,336 |
$ |
2,666,868 |
||||||||||||||||||
|
Net interest income (fully-taxable equivalent) |
61,320 |
57,856 |
||||||||||||||||||||
|
Less: fully-taxable equivalent adjustment |
(1,239) |
(836) |
||||||||||||||||||||
|
Net interest income |
$ |
60,081 |
$ |
57,020 |
||||||||||||||||||
|
Net interest rate spread (fully-taxable equivalent) |
3.10 |
% |
3.09 |
% | ||||||||||||||||||
|
Net interest margin (fully-taxable equivalent)(3) |
3.12 |
% |
3.10 |
% | ||||||||||||||||||
|
(1) Reported on tax-equivalent basis calculated using a tax rate of 35.0%, including certain commercial loans. | ||||||||||||||||||||||
|
(2) Non-accrual loans and loans held for sale are included in total average loans. | ||||||||||||||||||||||
|
(3) Includes $734,000 of income in the second quarter of 2015 upon payoff of one loan that was on non-accrual status. Excluding this one-time pick-up, net interest margin for the nine months ended September 30, 2015 was 3.08%. | ||||||||||||||||||||||
|
Asset Quality Data (unaudited) | ||||||||||||||||||||
|
(In thousands) |
At or For The |
At or For The |
At or For The |
At or For The |
At or For The | |||||||||||||||
|
Non-accrual loans: |
||||||||||||||||||||
|
Residential real estate |
$ |
4,149 |
$ |
4,498 |
$ |
5,630 |
$ |
6,056 |
$ |
7,098 |
||||||||||
|
Commercial real estate |
3,384 |
2,813 |
4,083 |
7,043 |
5,707 |
|||||||||||||||
|
Commercial |
1,383 |
1,425 |
1,442 |
1,529 |
3,051 |
|||||||||||||||
|
Consumer |
1,243 |
1,957 |
1,942 |
2,011 |
2,169 |
|||||||||||||||
|
Total non-accrual loans |
10,159 |
10,693 |
13,097 |
16,639 |
18,025 |
|||||||||||||||
|
Loans 90 days past due and accruing |
— |
— |
— |
— |
— |
|||||||||||||||
|
Renegotiated loans not included above |
5,013 |
5,313 |
4,433 |
4,539 |
5,198 |
|||||||||||||||
|
Total non-performing loans |
15,172 |
16,006 |
17,530 |
21,178 |
23,223 |
|||||||||||||||
|
Other real estate owned: |
||||||||||||||||||||
|
Residential real estate |
204 |
300 |
533 |
575 |
554 |
|||||||||||||||
|
Commercial real estate |
— |
351 |
848 |
1,012 |
1,012 |
|||||||||||||||
|
Total other real estate owned |
204 |
651 |
1,381 |
1,587 |
1,566 |
|||||||||||||||
|
Total non-performing assets |
$ |
15,376 |
$ |
16,657 |
$ |
18,911 |
$ |
22,765 |
$ |
24,789 |
||||||||||
|
Loans 30-89 days past due: |
||||||||||||||||||||
|
Residential real estate |
$ |
1,153 |
$ |
1,287 |
$ |
798 |
$ |
1,303 |
$ |
880 |
||||||||||
|
Commercial real estate |
1,281 |
586 |
959 |
381 |
1,675 |
|||||||||||||||
|
Commercial |
497 |
718 |
144 |
656 |
2,027 |
|||||||||||||||
|
Consumer |
315 |
897 |
707 |
891 |
2,015 |
|||||||||||||||
|
Total loans 30-89 days past due |
$ |
3,246 |
$ |
3,488 |
$ |
2,608 |
$ |
3,231 |
$ |
6,597 |
||||||||||
|
Allowance for loan losses at the beginning of the period |
$ |
21,116 |
$ |
21,116 |
$ |
21,116 |
$ |
21,590 |
$ |
21,590 |
||||||||||
|
Provision for loan losses |
972 |
691 |
440 |
2,224 |
1,675 |
|||||||||||||||
|
Charge-offs: |
||||||||||||||||||||
|
Residential real estate |
468 |
292 |
113 |
785 |
370 |
|||||||||||||||
|
Commercial real estate |
174 |
103 |
55 |
361 |
276 |
|||||||||||||||
|
Commercial |
387 |
243 |
159 |
1,544 |
1,201 |
|||||||||||||||
|
Consumer |
481 |
260 |
97 |
754 |
371 |
|||||||||||||||
|
Total charge-offs |
1,510 |
898 |
424 |
3,444 |
2,218 |
|||||||||||||||
|
Total recoveries |
554 |
285 |
133 |
746 |
538 |
|||||||||||||||
|
Net charge-offs |
956 |
613 |
291 |
2,698 |
1,680 |
|||||||||||||||
|
Allowance for loan losses at the end of the period |
$ |
21,132 |
$ |
21,194 |
$ |
21,265 |
$ |
21,116 |
$ |
21,585 |
||||||||||
|
Components of allowance for credit losses: |
||||||||||||||||||||
|
Allowance for loan losses |
$ |
21,132 |
$ |
21,194 |
$ |
21,265 |
$ |
21,116 |
$ |
21,585 |
||||||||||
|
Liability for unfunded credit commitments |
24 |
26 |
23 |
17 |
21 |
|||||||||||||||
|
Balance of allowance for credit losses |
$ |
21,156 |
$ |
21,220 |
$ |
21,288 |
$ |
21,133 |
$ |
21,606 |
||||||||||
|
Ratios: |
||||||||||||||||||||
|
Non-performing loans to total loans |
0.83 |
% |
0.89 |
% |
0.98 |
% |
1.19 |
% |
1.35 |
% | ||||||||||
|
Non-performing assets to total assets |
0.54 |
% |
0.59 |
% |
0.67 |
% |
0.82 |
% |
0.90 |
% | ||||||||||
|
Allowance for loan losses to total loans |
1.15 |
% |
1.17 |
% |
1.19 |
% |
1.19 |
% |
1.25 |
% | ||||||||||
|
Net charge-offs to average loans (annualized): |
||||||||||||||||||||
|
Quarter-to-date |
0.08 |
% |
0.07 |
% |
0.07 |
% |
0.23 |
% |
0.20 |
% | ||||||||||
|
Year-to-date |
0.07 |
% |
0.07 |
% |
0.07 |
% |
0.16 |
% |
0.13 |
% | ||||||||||
|
Allowance for loan losses to non-performing loans |
139.27 |
% |
132.41 |
% |
121.30 |
% |
99.70 |
% |
92.95 |
% | ||||||||||
|
Loans 30-89 days past due to total loans |
0.18 |
% |
0.19 |
% |
0.15 |
% |
0.18 |
% |
0.38 |
% | ||||||||||
Reconciliation of non-GAAP to GAAP Financial Measures
|
Efficiency Ratio: |
||||||||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||||||
|
(In thousands) |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
|
Non-interest expense, as presented |
$ |
16,711 |
$ |
16,157 |
$ |
15,179 |
$ |
49,669 |
$ |
46,096 |
||||||||||
|
Less: merger and acquisition costs |
766 |
128 |
— |
1,629 |
— |
|||||||||||||||
|
Adjusted non-interest expense |
$ |
15,945 |
$ |
16,029 |
$ |
15,179 |
$ |
48,040 |
$ |
46,096 |
||||||||||
|
Net interest income, as presented |
$ |
20,012 |
$ |
20,635 |
$ |
19,369 |
$ |
60,081 |
$ |
57,020 |
||||||||||
|
Add: effect of tax-exempt income(1) |
483 |
410 |
325 |
1,239 |
836 |
|||||||||||||||
|
Non-interest income, as presented |
6,561 |
6,310 |
5,954 |
19,018 |
18,150 |
|||||||||||||||
|
Less: net gain on sale of securities |
4 |
— |
— |
4 |
451 |
|||||||||||||||
|
Adjusted net interest income plus non-interest income |
$ |
27,052 |
$ |
27,355 |
$ |
25,648 |
$ |
80,334 |
$ |
75,555 |
||||||||||
|
Non-GAAP efficiency ratio |
58.94 |
% |
58.60 |
% |
59.18 |
% |
59.80 |
% |
61.01 |
% | ||||||||||
|
GAAP efficiency ratio |
62.89 |
% |
59.96 |
% |
59.94 |
% |
62.79 |
% |
61.32 |
% | ||||||||||
|
(1) Assumed 35.0% tax rate. |
||||||||||||||||||||
|
Tax-Equivalent Net Interest Income: |
||||||||||||||||||||
|
For the |
For the | |||||||||||||||||||
|
(In thousands) |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
|
Net interest income, as presented |
$ |
20,012 |
$ |
20,635 |
$ |
19,369 |
$ |
60,081 |
$ |
57,020 |
||||||||||
|
Add: effect of tax-exempt income(1) |
483 |
410 |
325 |
1,239 |
836 |
|||||||||||||||
|
Net interest income, tax equivalent |
$ |
20,495 |
$ |
21,045 |
$ |
19,694 |
$ |
61,320 |
$ |
57,856 |
||||||||||
|
(1) Assumed 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) |
||||||||||||
|
Tangible Book Value Per Share: |
September 30, |
June 30, |
September 30, | |||||||||
|
Shareholders' equity, as presented |
$ |
259,403 |
$ |
254,540 |
$ |
239,912 |
||||||
|
Less: goodwill and other intangible assets |
47,309 |
47,596 |
48,458 |
|||||||||
|
Tangible equity |
$ |
212,094 |
$ |
206,944 |
$ |
191,454 |
||||||
|
Shares outstanding at period end |
7,454,045 |
7,449,645 |
7,421,595 |
|||||||||
|
Tangible book value per share |
$ |
28.45 |
$ |
27.78 |
$ |
25.80 |
||||||
|
Book value per share |
$ |
34.80 |
$ |
34.17 |
$ |
32.33 |
||||||
|
Tangible Equity to Tangible Assets: | ||||||||||||
|
Total assets |
$ |
2,871,798 |
$ |
2,837,921 |
$ |
2,741,989 |
||||||
|
Less: goodwill and other intangibles |
47,309 |
47,596 |
48,458 |
|||||||||
|
Tangible assets |
$ |
2,824,489 |
$ |
2,790,325 |
$ |
2,693,531 |
||||||
|
Tangible equity to tangible assets |
7.51 |
% |
7.42 |
% |
7.11 |
% | ||||||
|
Shareholders' equity to total assets |
9.03 |
% |
8.97 |
% |
8.75 |
% | ||||||
|
Core Operating Earnings, Core Diluted EPS, Core Return on Average Assets, and Core Return on Average Equity: | ||||||||||||||||||||
|
For the |
For the | |||||||||||||||||||
|
(In thousands, except per share data) |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
|
Core Operating Earnings: |
||||||||||||||||||||
|
Net income, as presented |
$ |
6,456 |
$ |
7,193 |
$ |
6,451 |
$ |
19,260 |
$ |
18,482 |
||||||||||
|
Merger and acquisition costs, net of tax(1) |
498 |
115 |
— |
1,266 |
— |
|||||||||||||||
|
Gains on sale of securities, net of tax(2) |
(3) |
— |
— |
(3) |
(293) |
|||||||||||||||
|
Core operating earnings |
$ |
6,951 |
$ |
7,308 |
$ |
6,451 |
$ |
20,523 |
$ |
18,189 |
||||||||||
|
Core Diluted EPS: |
||||||||||||||||||||
|
Diluted EPS, as presented |
$ |
0.86 |
$ |
0.96 |
$ |
0.86 |
$ |
2.57 |
$ |
2.46 |
||||||||||
|
Non-core transactions impact |
0.07 |
0.01 |
— |
0.17 |
(0.04) |
|||||||||||||||
|
Core diluted EPS |
$ |
0.93 |
$ |
0.97 |
$ |
0.86 |
$ |
2.74 |
$ |
2.42 |
||||||||||
|
Core Return on Average Assets: |
||||||||||||||||||||
|
Return on average assets, as presented |
0.90 |
% |
1.02 |
% |
0.94 |
% |
0.91 |
% |
0.93 |
% | ||||||||||
|
Non-core transactions impact |
0.07 |
% |
0.02 |
% |
— |
% |
0.06 |
% |
(0.02)% |
|||||||||||
|
Core return on average assets |
0.97 |
% |
1.04 |
% |
0.94 |
% |
0.97 |
% |
0.91 |
% | ||||||||||
|
Core Return on Average Equity: |
||||||||||||||||||||
|
Return on average equity, as presented |
9.99 |
% |
11.35 |
% |
10.70 |
% |
10.19 |
% |
10.53 |
% | ||||||||||
|
Non-core transactions impact |
0.77 |
% |
0.18 |
% |
— |
% |
0.67 |
% |
(0.16)% |
|||||||||||
|
Core return on average equity |
10.76 |
% |
11.53 |
% |
10.70 |
% |
10.86 |
% |
10.37 |
% | ||||||||||
|
(1) Assumed 35.0% tax rate for deductible expenses. | ||||||||||||||||||||
|
(2) Assumed 35.0% tax rate. | ||||||||||||||||||||
|
Core Return on Average Tangible Equity: |
||||||||||||||||||||
|
For the |
For the | |||||||||||||||||||
|
(In thousands) |
September 30, |
June 30, |
September 30, |
September 30, |
September 30, | |||||||||||||||
|
Net income, as presented |
$ |
6,456 |
$ |
7,193 |
$ |
6,451 |
$ |
19,260 |
$ |
18,482 |
||||||||||
|
Amortization of intangible assets, net of tax(1) |
187 |
187 |
187 |
560 |
560 |
|||||||||||||||
|
Merger and acquisition costs, net of tax(2) |
498 |
115 |
— |
1,266 |
— |
|||||||||||||||
|
Gains on sale of securities, net of tax(1) |
(3) |
— |
— |
(3) |
(293) |
|||||||||||||||
|
Core tangible operating earnings |
$ |
7,138 |
$ |
7,495 |
$ |
6,638 |
$ |
21,083 |
$ |
18,749 |
||||||||||
|
Average equity |
$ |
256,326 |
$ |
254,255 |
$ |
239,162 |
$ |
252,802 |
$ |
234,574 |
||||||||||
|
Less: average goodwill and other intangible assets |
47,446 |
47,733 |
48,596 |
47,730 |
48,879 |
|||||||||||||||
|
Average tangible equity |
$ |
208,880 |
$ |
206,522 |
$ |
190,566 |
$ |
205,072 |
$ |
185,695 |
||||||||||
|
Core return on average tangible equity |
13.56 |
% |
14.56 |
% |
13.82 |
% |
13.75 |
% |
13.50 |
% | ||||||||||
|
Return on average equity |
9.99 |
% |
11.35 |
% |
10.70 |
% |
10.19 |
% |
10.53 |
% | ||||||||||
|
(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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