Camden National Corporation Reports Second Quarter 2024 Earnings of $12.0 Million and Diluted EPS of $0.81

Rhea-AI Summary

Camden National (NASDAQ: CAC) reported Q2 2024 earnings of $12.0 million and diluted EPS of $0.81, down from $13.3 million and $0.91 in Q1 2024. Key highlights include:

- Net interest margin increased to 2.36% from 2.30% in Q1
- Strong asset quality with non-performing loans at 0.23% of total loans
- Common equity ratio of 8.88% and tangible common equity ratio of 7.34%
- Total assets decreased 1% to $5.7 billion
- Loans increased by $18.3 million, driven by commercial and consumer growth
- Deposits decreased 1% to $4.5 billion
- Announced cash dividend of $0.42 per share

The company's performance reflects its strong capital position, disciplined credit culture, and expense management in a challenging economic environment.

Positive

• Net interest margin expanded to 2.36% from 2.30% in Q1 2024
• Strong asset quality with non-performing loans at only 0.23% of total loans
• Loans increased by $18.3 million, driven by 3% growth in commercial loans
• Pre-tax, pre-provision income increased 9% to $15.5 million
• Regulatory capital ratios remained well above required levels

Negative

• Net income decreased 10% to $12.0 million compared to Q1 2024
• Diluted EPS declined to $0.81 from $0.91 in Q1 2024
• Total assets decreased 1% to $5.7 billion
• Deposits decreased 1% to $4.5 billion
• Provision expense of $650,000 in Q2 compared to negative provision of $2.1 million in Q1

Insights

Financial Analyst

Camden National 's Q2 2024 results demonstrate resilience in a challenging economic environment. The bank reported $12.0 million in earnings and diluted EPS of $0.81, down from $13.3 million and $0.91 in Q1 2024. However, there are several positive indicators worth noting:

• Net interest margin expanded to 2.36% from 2.30% in Q1, indicating improved profitability on lending activities.
• Asset quality remains strong, with non-performing loans at just 0.23% of total loans.
• The bank's capital position is robust, with regulatory ratios well above required levels.
• Pre-tax, pre-provision income increased by 9% to $15.5 million, showing underlying operational strength.

The slight decrease in earnings can be attributed to a $650,000 provision expense in Q2, compared to a $2.1 million negative provision in Q1. This prudent approach to risk management is commendable given the uncertain economic outlook.

The bank's focus on relationship banking and customer service appears to be paying off, as evidenced by the 8% growth in savings deposits through a new high-yield product. This strategy could help mitigate funding cost pressures in the future.

Overall, Camden National's performance suggests a well-managed institution navigating effectively through a complex financial landscape.

Market Research Analyst

Camden National's Q2 results offer intriguing insights into regional banking trends. The bank's ability to grow its loan portfolio by $18.3 million in a challenging environment is noteworthy, particularly the 3% increase in commercial loans and 2% rise in consumer and home equity loans. This suggests continued demand for credit in the Northern New England region, despite economic headwinds.

The launch of a high-yield savings product, resulting in 8% savings deposit growth, indicates a competitive deposit market. Banks are increasingly turning to such products to attract and retain deposits, which could pressure net interest margins industry-wide in the coming quarters.

Camden National's decision to sell 52% of its residential mortgage production reflects a broader trend among regional banks to manage interest rate risk and generate fee income. This strategy could prove beneficial if interest rates remain elevated or increase further.

The bank's strong capital position, with a common equity ratio of 8.88% and tangible common equity ratio of 7.34%, provides a solid foundation for potential growth opportunities or to weather economic uncertainties. This strength is particularly relevant given recent concerns about regional bank stability in the broader market.

The 5.09% annualized dividend yield is likely to be attractive to income-focused investors in the current market environment, potentially supporting the stock price.

Net Interest Margin Expands, Asset Quality Remains Strong

CAMDEN, Maine, July 30, 2024 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company") today reported earnings for the quarter ended June 30, 2024 of $12.0 million and diluted earnings per share ("EPS") of $0.81, compared to $13.3 million and $0.91, respectively, for the first quarter of 2024.

On a non-GAAP-basis, earnings before provision expense and income tax expense ("Pre-tax, pre-provision income") for the second quarter of 2024 was $15.5 million, compared to $14.2 million for the first quarter of 2024.

"This quarter's results highlight the strength and stability of our long-standing organization," said Simon Griffiths, president and chief executive officer of Camden National Corporation. "We're benefiting from our strong capital position, disciplined credit culture and expense management. Our well-diversified and stable funding mix positions us well to win new client relationships and deepen existing ones through our relationship banking approach and exceptional customer service."

For the first six months of 2024, the Company reported net income of $25.3 million and diluted EPS of $1.72, compared to $25.1 million and $1.72, respectively, for the six months ended June 30, 2023.

SECOND QUARTER 2024 HIGHLIGHTS

• Our return on average assets was 0.84% for the second quarter of 2024, and our return on average equity was 9.60% and, on a non-GAAP basis, our return on average tangible equity was 11.96%.
• Our net interest margin increased to 2.36% for the second quarter of 2024 from 2.30% for the first quarter of 2024.
• Our asset quality continues to be very strong, highlighted by loans 30-89 days past due of 0.05% of total loans and non-performing loans of 0.23% of total loans at June 30, 2024.
• Our capital position remained strong with regulatory capital ratios well in excess of required regulatory levels. At June 30, 2024, our common equity ratio was 8.88% and, on a non-GAAP basis, tangible common equity ratio was 7.34%.
• At June 30, 2024, uninsured and uncollateralized¹ deposits accounted for 14.6% of total deposits, and available liquidity sources were 2.0 times uninsured and uncollateralized deposits.

FINANCIAL CONDITION

As of June 30, 2024, total assets were $5.7 billion, a decrease of 1% since March 31, 2024. The decrease was driven by lower cash balances of $71.2 million between periods.

Investments totaled $1.1 billion on June 30, 2024, a decrease of 2% since March 31, 2024. We continue to redeploy monthly cash flows from the investment portfolio to fund loan growth to maximize our earning-asset yield. The investment portfolio represented 20% of total assets on June 30, 2024, and March 31, 2024. As of June 30, 2024, and March 31, 2024, the duration of the Company's securities was 5.5 years, and the weighted average life was 7.2 years at each date.

Loans totaled $4.1 billion on June 30, 2024, an increase of $18.3 million since March 31, 2024, driven by a 3% increase in our commercial loans and a 2% increase in consumer and home equity loans during the quarter. In the second quarter of 2024, we sold 52% of our residential mortgage production.

Asset quality through the second quarter of 2024 remained strong. We continue to review our loan portfolio and, to-date, we have not identified any signs of systemic stress. On June 30, 2024, loans 30-89 days past due to total loans remained flat from March 31, 2024 at 0.05% of total loans. Annualized net charge-offs for the second quarter of 2024 increased 2 basis points from the first quarter of 2024 to 0.04% of average loans. The Company's allowance for credit losses ("ACL") on loans was 0.86% as of June 30, 2024, and March 31, 2024. On June 30, 2024, the ACL was 3.7 times the total non-performing loans, compared to 4.7 times on March 31, 2024.

Deposits totaled $4.5 billion on June 30, 2024, a decrease of 1% since March 31, 2024. Checking account balances decreased by 2% during the second quarter of 2024, primarily due to normal business activities of one of our large commercial relationships and managed outflow of high-cost municipal deposits to optimize our funding costs. In the second quarter of 2024, we launched a high-yield savings deposit product in an effort to raise cost effective deposits and drive new customer acquisition. Through this new product, we drove savings deposit growth of 8% during the second quarter of 2024.

In June 2024, we prepaid a portion of our Bank Term Funding Program ("BTFP") funding totaling $55.0 million. As of June 30, 2024, the Company had remaining BTFP funding of $170.0 million at a fixed interest rate of 4.76% that is scheduled to mature in January 2025.

As of June 30, 2024, the Company's regulatory capital ratios were each well in excess of regulatory capital requirements. The Company's common equity ratio was 8.88%, and, on a non-GAAP basis, its tangible common equity ratio was 7.34%, compared to 8.66% and 7.12%, respectively, at March 31, 2024.

The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 5.09%, based on the Company's closing share price of $33.00, as reported by NASDAQ on June 28, 2024 (the last trading day of the second quarter of 2024), payable on July 31, 2024, to shareholders of record on July 15, 2024.

The Company repurchased 50,000 shares of its common stock at an average price of $32.19 per share through the first six months of 2024.

1 Uncollateralized deposits are customer deposits for which the Company has not pledged any of its assets, including investment securities, or provided any other type of guarantee

FINANCIAL OPERATING RESULTS (Q2 2024 vs. Q1 2024)

Net income for the second quarter of 2024 was $12.0 million, a decrease of $1.3 million, or 10%, compared to the first quarter of 2024. The decrease was driven by negative provision expense in the first quarter of 2024 of $2.1 million compared to provision expense of $650,000 for the second quarter. On a non-GAAP basis, pre-tax, pre-provision income was $15.5 million an increase $1.3 million, or 9%, between the same periods.

Net interest income for the second quarter of 2024 was $32.2 million, an increase of $911,000, or 3%, compared to the first quarter of 2024. The increase was driven by net interest margin expansion of six basis points between periods to 2.36% for the second quarter of 2024. Interest-earning asset yields increased 14 basis points to 4.58% for the second quarter of 2024, primarily due to the deployment of investment cash flows to fund new loan originations at current market interest rates and the maturity of a $100.0 million balance sheet derivative in June 2024 that contributed to the yield increase in the commercial real estate loan portfolio. The increase in our earning-asset yield more than offset the increase in funding costs, which increased eight basis points to 2.35% for the second quarter of 2024, led by an eight basis point increase in deposit costs to 2.05% over the same period.

Provision expense of $650,000 was recorded for the second quarter of 2024, consisting of provision for loan losses of $188,000 and the provision for unfunded commitments of $462,000. The provision for loan losses for the second quarter of 2024 was driven by modest loan growth. The provision for unfunded commitment for the second quarter of 2024 was driven by the increase in the committed commercial loan pipeline to $148.4 million as of June 30, 2024 compared to $86.0 million as of March 31, 2024.

Non-interest income for the second quarter of 2024 was $10.6 million, an increase of $323,000, or 3%, over the first quarter of 2024. The increase between periods was driven by an increase in debit card income of $203,000, and brokerage and wealth management income of $323,000 in total. Mortgage banking income was lower by $292,000 between periods and was driven by the change in fair value on loans held for sale and loan pipelines.

Non-interest expense for the second quarter of 2024 was $27.3 million, a decrease of $52,000, compared to the first quarter of 2024. We continue to manage costs in response to revenue pressures from the current economic environment. Our GAAP efficiency ratio for the second quarter of 2024 was 63.77% and non-GAAP efficiency ratio was 63.53%, compared to 65.78% and 65.55% for the first quarter of 2024, respectively.

Q2 2024 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, July 30, 2024 to discuss its second quarter 2024 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (Domestic):	(833) 470-1428
Live dial-in (All other locations):	(929) 526-1599
Participant access code:	401866
Live webcast:	https://events.q4inc.com/attendee/309824299

A link to the live webcast will be available on Camden National's website under "About — Investor Relations" at CamdenNational.bank prior to the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company, with $5.7 billion in assets and 57 banking centers in Maine and New Hampshire. Founded in 1875, Camden National Bank is a full-service community bank, offering the latest digital banking, complemented by award-winning, personalized service. Camden National Bank has been recognized as one of the Best Places to Work by Best Companies Group for three years in a row. To learn more, visit CamdenNational.bank. Member FDIC. Equal Housing Lender.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National's ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements in response to recent developments affecting the banking sector; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National's Annual Report on Form 10-K for the year ended December 31, 2023, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of the war in Ukraine, conflict in the Middle East and other notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possible materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; tangible book value per share; core deposits and average core deposits. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.

 

Selected Financial Data (unaudited)
		At or For The Three Months Ended						At or For The Six Months Ended
(In thousands, except number of shares and per share data)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Financial Condition Data
Loans		$  4,139,361		$   4,121,040		$   4,100,131		$   4,139,361		$   4,100,131
Total assets		5,724,380		5,794,785		5,743,931		5,724,380		5,743,931
Deposits		4,514,020		4,551,524		4,693,745		4,514,020		4,693,745
Shareholders' equity		508,286		501,577		467,376		508,286		467,376
Operating Data and Per Share Data
Net income		$       11,993		$        13,272		$        12,389		$        25,265		$        25,116
Adjusted net income (non-GAAP)(1)		11,993		12,553		12,389		24,546		27,340
Pre-tax, pre-provision income (non-GAAP)(1)		15,519		14,233		15,657		29,752		33,638
Diluted EPS		0.81		0.91		0.85		1.72		1.72
Adjusted diluted EPS (non-GAAP)(1)		0.81		0.86		0.85		1.67		1.82
Profitability Ratios
Return on average assets		0.84 %		0.93 %		0.87 %		0.89 %		0.89 %
Adjusted return on average assets (non-GAAP)(1)		0.84 %		0.88 %		0.87 %		0.87 %		0.95 %
Return on average equity		9.60 %		10.77 %		10.66 %		10.18 %		10.91 %
Adjusted return on average equity (non-GAAP)(1)		9.60 %		10.19 %		10.66 %		9.89 %		11.54 %
Return on average tangible equity (non-GAAP)(1)		11.96 %		13.46 %		13.55 %		12.70 %		13.88 %
Adjusted return on average tangible equity (non-GAAP)(1)		11.96 %		12.74 %		13.55 %		12.34 %		15.10 %
GAAP efficiency ratio		63.77 %		65.78 %		63.42 %		64.76 %		61.31 %
Efficiency ratio (non-GAAP)(1)		63.53 %		65.55 %		63.07 %		64.52 %		60.99 %
Net interest margin (fully-taxable equivalent)		2.36 %		2.30 %		2.40 %		2.32 %		2.47 %
Asset Quality Ratios
ACL on loans to total loans		0.86 %		0.86 %		0.90 %		0.86 %		0.90 %
Non-performing loans to total loans		0.23 %		0.19 %		0.13 %		0.23 %		0.13 %
Annualized net charge-offs to average loans		0.04 %		0.02 %		0.04 %		0.03 %		0.03 %
Capital Ratios
Common equity ratio		8.88 %		8.66 %		8.14 %		8.88 %		8.14 %
Tangible common equity ratio (non-GAAP)(1)		7.34 %		7.12 %		6.58 %		7.34 %		6.58 %
Tier 1 leverage capital ratio		9.64 %		9.59 %		9.29 %		9.64 %		9.29 %
Total risk-based capital ratio		14.46 %		14.52 %		13.95 %		14.46 %		13.95 %

(1)  This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).

 

Consolidated Statements of Condition Data (unaudited)
(In thousands)		June 30, 2024		March 30, 2024		June 30, 2023		% Change Jun 2024 vs. Mar 2024		% Change Jun 2024 vs. Jun 2023
ASSETS
Cash, cash equivalents and restricted cash		$          105,560		$          176,719		$            94,278		(40) %		12 %
Investments:
Trading securities		4,959		4,847		4,235		2 %		17 %
Available-for-sale securities, at fair value		579,534		601,576		658,205		(4) %		(12) %
Held-to-maturity securities, at amortized cost		533,600		540,349		534,584		(1) %		— %
Other investments		17,105		16,392		14,655		4 %		17 %
Total investments		1,135,198		1,163,164		1,211,679		(2) %		(6) %
Loans held for sale, at fair value		14,321		9,524		12,036		50 %		19 %
Loans:
Commercial real estate		1,697,979		1,702,952		1,677,002		— %		1 %
Commercial		409,682		397,395		422,437		3 %		(3) %
Residential real estate		1,768,357		1,762,482		1,748,303		— %		1 %
Consumer and home equity		263,343		258,211		252,389		2 %		4 %
Total loans		4,139,361		4,121,040		4,100,131		— %		1 %
Less: allowance for credit losses on loans		(35,412)		(35,613)		(36,983)		(1) %		(4) %
Net loans		4,103,949		4,085,427		4,063,148		— %		1 %
Goodwill and core deposit intangible assets		95,390		95,529		95,964		— %		(1) %
Other assets		269,962		264,422		266,826		2 %		1 %
Total assets		$       5,724,380		$       5,794,785		$       5,743,931		(1) %		— %
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest checking		$          921,605		$          929,314		$       1,015,184		(1) %		(9) %
Interest checking		1,465,560		1,503,045		1,627,250		(2) %		(10) %
Savings and money market		1,399,464		1,379,437		1,377,791		1 %		2 %
Certificates of deposit		576,563		585,786		449,265		(2) %		28 %
Brokered deposits		150,828		153,942		224,255		(2) %		(33) %
Total deposits		4,514,020		4,551,524		4,693,745		(1) %		(4) %
Short-term borrowings		552,606		601,499		448,182		(8) %		23 %
Junior subordinated debentures		44,331		44,331		44,331		— %		— %
Accrued interest and other liabilities		105,137		95,854		90,297		10 %		16 %
Total liabilities		5,216,094		5,293,208		5,276,555		(1) %		(1) %
Commitments and Contingencies
Shareholders' Equity
Common stock, no par value		115,543		116,449		114,302		(1) %		1 %
Retained earnings		493,974		488,143		475,008		1 %		4 %
Accumulated other comprehensive loss:
Net unrealized loss on debt securities, net of tax		(110,308)		(111,357)		(127,829)		(1) %		(14) %
Net unrealized gain on cash flow hedging derivative instruments, net of tax		9,327		8,587		6,213		9 %		50 %
Net unrecognized loss on postretirement plans, net of tax		(250)		(245)		(318)		2 %		(21) %
Total accumulated other comprehensive loss		(101,231)		(103,015)		(121,934)		(2) %		(17) %
Total shareholders' equity		508,286		501,577		467,376		1 %		9 %
Total liabilities and shareholders' equity		$       5,724,380		$       5,794,785		$       5,743,931		(1) %		— %

 

Consolidated Statements of Income Data (unaudited)
		For The Three Months Ended
(In thousands, except per share data)		June 30, 2024		March 31, 2024		June 30, 2023		% Change Jun 2024 vs. Mar 2024		% Change Jun 2024 vs. Jun 2023
Interest Income
Interest and fees on loans		$            53,422		$            51,709		$            48,645		3 %		10 %
Taxable interest on investments		6,807		7,027		5,852		(3) %		16 %
Nontaxable interest on investments		461		465		762		(1) %		(40) %
Dividend income		521		312		267		67 %		95 %
Other interest income		951		670		529		42 %		80 %
Total interest income		62,162		60,183		56,055		3 %		11 %
Interest Expense
Interest on deposits		24,169		23,178		19,245		4 %		26 %
Interest on borrowings		5,285		5,198		3,587		2 %		47 %
Interest on junior subordinated debentures		524		534		533		(2) %		(2) %
Total interest expense		29,978		28,910		23,365		4 %		28 %
Net interest income		32,184		31,273		32,690		3 %		(2) %
Provision (credit) for credit losses		650		(2,102)		103		131 %		531 %
Net interest income after provision (credit) for credit losses		31,534		33,375		32,587		(6) %		(3) %
Non-Interest Income
Debit card income		3,069		2,866		3,079		7 %		— %
Service charges on deposit accounts		2,113		2,027		1,935		4 %		9 %
Income from fiduciary services		1,870		1,749		1,775		7 %		5 %
Brokerage and insurance commissions		1,441		1,239		1,152		16 %		25 %
Bank-owned life insurance		694		683		613		2 %		13 %
Mortgage banking income, net		516		808		590		(36) %		(13) %
Other income		942		950		966		(1) %		(2) %
Total non-interest income		10,645		10,322		10,110		3 %		5 %
Non-Interest Expense
Salaries and employee benefits		15,601		15,954		15,288		(2) %		2 %
Furniture, equipment and data processing		3,497		3,629		3,179		(4) %		10 %
Net occupancy costs		1,981		2,070		1,852		(4) %		7 %
Debit card expense		1,311		1,264		1,262		4 %		4 %
Consulting and professional fees		1,149		860		1,375		34 %		(16) %
Regulatory assessments		813		857		868		(5) %		(6) %
Amortization of core deposit intangible assets		139		139		148		— %		(6) %
Other real estate owned and collection costs, net		47		10		4		N.M.		N.M.
Other expenses		2,772		2,579		3,167		7 %		(12) %
Total non-interest expense		27,310		27,362		27,143		— %		1 %
Income before income tax expense		14,869		16,335		15,554		(9) %		(4) %
Income Tax Expense		2,876		3,063		3,165		(6) %		(9) %
Net Income		$            11,993		$            13,272		$            12,389		(10) %		(3) %
Per Share Data
Basic earnings per share		$                 0.82		$                 0.91		$                 0.85		(10) %		(4) %
Diluted earnings per share		$                 0.81		$                 0.91		$                 0.85		(11) %		(5) %
N.M. = Not meaningful

 

Consolidated Statements of Income Data (unaudited)
		For the Six Months Ended
(In thousands, except per share data)		June 30, 2024		June 30, 2023		% Change Jun 2024 vs. Jun 2023
Interest Income
Interest and fees on loans		$          105,131		$            93,977		12 %
Taxable interest on investments		13,834		11,815		17 %
Nontaxable interest on investments		926		1,525		(39) %
Dividend income		833		486		71 %
Other interest income		1,621		977		66 %
Total interest income		122,345		108,780		12 %
Interest Expense
Interest on deposits		47,347		35,077		35 %
Interest on borrowings		10,483		5,672		85 %
Interest on junior subordinated debentures		1,058		1,061		— %
Total interest expense		58,888		41,810		41 %
Net interest income		63,457		66,970		(5) %
(Credit) provision for credit losses		(1,452)		2,105		(169) %
Net interest income after (credit) provision for credit losses		64,909		64,865		— %
Non-Interest Income
Debit card income		5,935		6,017		(1) %
Service charges on deposit accounts		4,140		3,697		12 %
Income from fiduciary services		3,619		3,375		7 %
Brokerage and insurance commissions		2,680		2,245		19 %
Bank-owned life insurance		1,377		1,205		14 %
Mortgage banking income, net		1,324		1,306		1 %
Other income		1,892		2,131		(11) %
Total non-interest income		20,967		19,976		5 %
Non-Interest Expense
Salaries and employee benefits		31,555		29,861		6 %
Furniture, equipment and data processing		7,126		6,390		12 %
Net occupancy costs		4,051		3,931		3 %
Debit card expense		2,575		2,463		5 %
Consulting and professional fees		2,009		2,430		(17) %
Regulatory assessments		1,670		1,713		(3) %
Amortization of core deposit intangible assets		278		296		(6) %
Other real estate owned and collection costs, net		57		9		533 %
Other expenses		5,351		6,215		(14) %
Total non-interest expense		54,672		53,308		3 %
Income before income tax expense		31,204		31,533		(1) %
Income Tax Expense		5,939		6,417		(7) %
Net Income		$            25,265		$            25,116		1 %
Per Share Data
Basic earnings per share		$                1.73		$                1.72		1 %
Diluted earnings per share		$                1.72		$                1.72		— %

 

Quarterly Average Balance and Yield/Rate Analysis (unaudited)
		Average Balance						Yield/Rate
		For The Three Months Ended						For The Three Months Ended
(Dollars in thousands)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		March 31, 2024		June 30, 2023
Assets
Interest-earning assets:
Interest-bearing deposits in other banks and other interest-earning assets		$          50,266		$           44,487		$           27,008		6.06 %		4.34 %		4.90 %
Investments - taxable		1,162,941		1,187,699		1,212,942		2.58 %		2.53 %		2.08 %
Investments - nontaxable(1)		61,794		62,385		105,210		3.78 %		3.78 %		3.67 %
Loans(2):
Commercial real estate		1,701,431		1,682,599		1,670,299		5.09 %		4.94 %		4.75 %
Commercial(1)		387,093		389,695		405,485		6.51 %		6.05 %		5.83 %
SBA PPP		244		324		512		2.29 %		4.46 %		4.27 %
Municipal(1)		16,351		14,653		17,484		4.84 %		4.40 %		3.98 %
Residential real estate		1,772,707		1,773,077		1,748,443		4.48 %		4.41 %		4.06 %
Consumer and home equity		260,384		257,305		253,308		7.93 %		7.89 %		7.53 %
Total loans		4,138,210		4,117,653		4,095,531		5.14 %		5.00 %		4.73 %
Total interest-earning assets		5,413,211		5,412,224		5,440,691		4.58 %		4.44 %		4.12 %
Other assets		323,065		305,756		271,822
Total assets		$     5,736,276		$      5,717,980		$      5,712,513
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking		$        901,774		$         933,321		$         999,809		— %		— %		— %
Interest checking		1,479,201		1,490,185		1,638,677		2.52 %		2.53 %		2.28 %
Savings		624,034		599,791		685,282		0.52 %		0.20 %		0.10 %
Money market		760,844		764,585		692,330		3.41 %		3.29 %		2.47 %
Certificates of deposit		583,282		582,806		410,272		3.90 %		3.77 %		2.55 %
Total deposits		4,349,135		4,370,688		4,426,370		2.05 %		1.97 %		1.48 %
Borrowings:
Brokered deposits		150,799		133,385		237,083		5.28 %		5.31 %		4.89 %
Customer repurchase agreements		185,729		182,487		192,428		1.81 %		1.60 %		1.47 %
Junior subordinated debentures		44,331		44,331		44,331		4.75 %		4.85 %		4.83 %
Other borrowings		401,144		401,683		272,737		4.46 %		4.40 %		4.23 %
Total borrowings		782,003		761,886		746,579		4.00 %		3.96 %		3.77 %
Total funding liabilities		5,131,138		5,132,574		5,172,949		2.35 %		2.27 %		1.81 %
Other liabilities		102,658		89,893		73,366
Shareholders' equity		502,480		495,513		466,198
Total liabilities & shareholders' equity		$     5,736,276		$      5,717,980		$      5,712,513
Net interest rate spread (fully-taxable equivalent)								2.23 %		2.17 %		2.31 %
Net interest margin (fully-taxable equivalent)								2.36 %		2.30 %		2.40 %

(1)  Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

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

 

Year-to-Date Average Balance and Yield/Rate Analysis (unaudited)
		Average Balance				Yield/Rate
		For The Six Months Ended				For The Six Months Ended
(Dollars in thousands)		June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Assets
Interest-earning assets:
Interest-bearing deposits in other banks and other interest-earning assets		$           47,376		$           26,515		5.25 %		4.41 %
Investments - taxable		1,175,320		1,225,079		2.56 %		2.07 %
Investments - nontaxable(1)		62,090		105,355		3.78 %		3.67 %
Loans(2):
Commercial real estate		1,692,015		1,658,219		5.02 %		4.68 %
Commercial(1)		388,394		407,288		6.28 %		5.66 %
SBA PPP		284		553		3.53 %		3.35 %
Municipal(1)		15,502		16,744		4.63 %		3.78 %
Residential real estate		1,772,892		1,731,911		4.45 %		3.92 %
Consumer and home equity		258,844		253,533		7.91 %		7.31 %
Total loans		4,127,931		4,068,248		5.07 %		4.61 %
Total interest-earning assets		5,412,717		5,425,197		4.51 %		4.02 %
Other assets		314,411		274,961
Total assets		$      5,727,128		$      5,700,158
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking		$         917,547		$      1,037,927		— %		— %
Interest checking		1,484,693		1,664,128		2.53 %		2.14 %
Savings		611,913		709,907		0.37 %		0.09 %
Money market		762,715		695,687		3.35 %		2.33 %
Certificates of deposit		583,044		365,489		3.84 %		2.19 %
Total deposits		4,359,912		4,473,138		2.01 %		1.35 %
Borrowings:
Brokered deposits		142,092		228,866		5.29 %		4.49 %
Customer repurchase agreements		184,108		187,618		1.71 %		1.28 %
Junior subordinated debentures		44,331		44,331		4.80 %		4.83 %
Other borrowings		401,413		224,249		4.47 %		4.03 %
Total borrowings		771,944		685,064		3.98 %		3.48 %
Total funding liabilities		5,131,856		5,158,202		2.31 %		1.63 %
Other liabilities		96,275		77,522
Shareholders' equity		498,997		464,434
Total liabilities & shareholders' equity		$      5,727,128		$      5,700,158
Net interest rate spread (fully-taxable equivalent)						2.20 %		2.39 %
Net interest margin (fully-taxable equivalent)						2.32 %		2.47 %

(1)  Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

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

 

Asset Quality Data (unaudited)
(In thousands)		At or for the Six Months Ended June 30, 2024		At or for the Three Months Ended March 31, 2024		At or for the Year Ended December 31, 2023		At or for the Nine Months Ended September 30, 2023		At or for the Six Months Ended June 30, 2023
Non-accrual loans:
Residential real estate		$              2,497		$              2,473		$              2,539		$              2,775		$              1,781
Commercial real estate		79		205		386		92		56
Commercial		4,409		1,980		1,725		1,083		729
Consumer and home equity		810		1,000		798		674		482
Total non-accrual loans		7,795		5,658		5,448		4,624		3,048
Accruing troubled-debt restructured loans prior to adoption of ASU 2022-02		1,846		1,973		1,990		1,997		2,140
Total non-performing loans		9,641		7,631		7,438		6,621		5,188
Other real estate owned		—		—		—		—		—
Total non-performing assets		$              9,641		$              7,631		$              7,438		$              6,621		$              5,188
Loans 30-89 days past due:
Residential real estate		$                 400		$                 797		$              1,290		$                 751		$              1,192
Commercial real estate		678		92		740		188		112
Commercial		539		537		2,007		2,260		294
Consumer and home equity		628		618		922		603		653
Total loans 30-89 days past due		$              2,245		$              2,044		$              4,959		$              3,802		$              2,251
ACL on loans at the beginning of the period		$            36,935		$            36,935		$            36,922		$            36,922		$            36,922
(Credit) provision for loan losses		(976)		(1,164)		1,174		288		744
Charge-offs:
Residential real estate		—		—		18		18		18
Commercial real estate		—		—		58		58		—
Commercial		763		309		1,560		1,101		846
Consumer and home equity		55		36		91		63		31
Total charge-offs		818		345		1,727		1,240		895
Total recoveries		(271)		(187)		(566)		(437)		(212)
Net charge-offs		547		158		1,161		803		683
ACL on loans at the end of the period		$            35,412		$            35,613		$            36,935		$            36,407		$            36,983
Components of ACL:
ACL on loans		$            35,412		$            35,613		$            36,935		$            36,407		$            36,983
ACL on off-balance sheet credit exposures(1)		2,787		2,325		2,353		2,670		2,788
ACL, end of period		$            38,199		$            37,938		$            39,288		$            39,077		$            39,771
Ratios:
Non-performing loans to total loans		0.23 %		0.19 %		0.18 %		0.16 %		0.13 %
Non-performing assets to total assets		0.17 %		0.13 %		0.13 %		0.11 %		0.09 %
ACL on loans to total loans		0.86 %		0.86 %		0.90 %		0.90 %		0.90 %
Net charge-offs to average loans (annualized):
Quarter-to-date		0.04 %		0.02 %		0.04 %		0.01 %		0.04 %
Year-to-date		0.03 %		0.02 %		0.03 %		0.03 %		0.03 %
ACL on loans to non-performing loans		367.31 %		466.69 %		496.57 %		549.87 %		712.86 %
Loans 30-89 days past due to total loans		0.05 %		0.05 %		0.12 %		0.09 %		0.05 %

(1)  Presented within accrued interest and other liabilities on the consolidated statements of condition.

 

Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)
Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity:
		For the Three Months Ended						For the Six Months Ended
(In thousands, except number of shares, per share data and ratios)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Adjusted Net Income:
Net income, as presented		$           11,993		$           13,272		$           12,389		$           25,265		$           25,116
Adjustment for Signature Bank bond (recovery) write-off		—		(910)		—		(910)		1,838
Tax impact of above adjustments(1)		—		191		—		191		386
Adjusted net income		$           11,993		$           12,553		$           12,389		$           24,546		$           27,340
Adjusted Diluted Earnings per Share:
Diluted earnings per share, as presented		$               0.81		$               0.91		$               0.85		$               1.72		$               1.72
Adjustment for Signature Bank bond (recovery) write-off		—		(0.06)		—		(0.06)		0.13
Tax impact of above adjustments(1)		—		0.01		—		0.01		(0.03)
Adjusted diluted earnings per share		$               0.81		$               0.86		$               0.85		$               1.67		$               1.82
Adjusted Return on Average Assets:
Return on average assets, as presented		0.84 %		0.93 %		0.87 %		0.89 %		0.89 %
Adjustment for Signature Bank bond (recovery) write-off		—		(0.06) %		—		(0.03) %		0.07 %
Tax impact of above adjustments(1)		—		0.01 %		—		0.01 %		(0.01) %
Adjusted return on average assets		0.84 %		0.88 %		0.87 %		0.87 %		0.95 %
Adjusted Return on Average Equity:
Return on average equity, as presented		9.60 %		10.77 %		10.66 %		10.18 %		10.91 %
Adjustment for Signature Bank bond (recovery) write-off		—		(0.74) %		—		(0.37) %		0.80 %
Tax impact of above adjustments(1)		—		0.16 %		—		0.08 %		(0.17) %
Adjusted return on average equity		9.60 %		10.19 %		10.66 %		9.89 %		11.54 %
(1)  Assumed a 21% tax rate.
Pre-Tax, Pre-Provision Income:
		For the Three Months Ended						For the Six Months Ended
(In thousands)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net income, as presented		$              11,993		$              13,272		$              12,389		$              25,265		$              25,116
Adjustment for provision (credit) for credit losses		650		(2,102)		103		(1,452)		2,105
Adjustment for income tax expense		2,876		3,063		3,165		5,939		6,417
Pre-tax, pre-provision income		$              15,519		$              14,233		$              15,657		$              29,752		$              33,638
Efficiency Ratio:
		For the Three Months Ended						For the Six Months Ended
(Dollars in thousands)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Non-interest expense, as presented		$           27,310		$           27,362		$           27,143		$           54,672		$           53,308
Net interest income, as presented		$           32,184		$           31,273		$           32,690		$           63,457		$           66,970
Adjustment for the effect of tax-exempt income(1)		159		150		235		309		464
Non-interest income, as presented		10,645		10,322		10,110		20,967		19,976
Adjusted net interest income plus non-interest income		$           42,988		$           41,745		$           43,035		$           84,733		$           87,410
GAAP efficiency ratio		63.77 %		65.78 %		63.42 %		64.76 %		61.31 %
Non-GAAP efficiency ratio		63.53 %		65.55 %		63.07 %		64.52 %		60.99 %
(1)  Assumed a 21% tax rate.
Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity:
		For the Three Months Ended						For the Six Months Ended
(Dollars in thousands)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Return on Average Tangible Equity:
Net income, as presented		$           11,993		$           13,272		$           12,389		$           25,265		$           25,116
Adjustment for amortization of core deposit intangible assets		139		139		148		278		296
Tax impact of above adjustment(1)		(29)		(29)		(31)		(58)		(62)
Net income, adjusted for amortization of core deposit intangible assets		$           12,103		$           13,382		$           12,506		$           25,485		$           25,350
Average equity, as presented		$         502,480		$         495,513		$         466,198		$         498,997		$         464,434
Adjustment for average goodwill and core deposit intangible assets		(95,458)		(95,604)		(96,036)		(95,531)		(96,113)
Average tangible equity		$         407,022		$         399,909		$         370,162		$         403,466		$         368,321
Return on average equity		9.60 %		10.77 %		10.66 %		10.18 %		10.91 %
Return on average tangible equity		11.96 %		13.46 %		13.55 %		12.70 %		13.88 %
Adjusted Return on Average Tangible Equity:
Adjusted net income (see "Adjusted Net Income" table above)		$           11,993		$           12,553		$           12,389		$           24,546		$           27,340
Adjustment for amortization of core deposit intangible assets		139		139		148		278		296
Tax impact of above adjustment(1)		(29)		(29)		(31)		(58)		(62)
Adjusted net income, adjusted for amortization of core deposit intangible assets		$           12,103		$           12,663		$           12,506		$           24,766		$           27,574
Adjusted return on average tangible equity		11.96 %		12.74 %		13.55 %		12.34 %		15.10 %
(1)  Assumed a 21% tax rate.

 

Tangible Book Value Per Share and Tangible Common Equity Ratio:
		June 30, 2024		March 31, 2024		June 30, 2023
(In thousands, except number of shares, per share data and ratios)
Tangible Book Value Per Share:
Shareholders' equity, as presented		$         508,286		$         501,577		$         467,376
Adjustment for goodwill and core deposit intangible assets		(95,390)		(95,529)		(95,964)
Tangible shareholders' equity		$         412,896		$         406,048		$         371,412
Shares outstanding at period end		14,569,262		14,593,830		14,554,778
Book value per share		$             34.89		$             34.37		$             32.11
Tangible book value per share		28.34		27.82		25.52
Tangible Common Equity Ratio:
Total assets		$      5,724,380		$      5,794,785		$      5,743,931
Adjustment for goodwill and core deposit intangible assets		(95,390)		(95,529)		(95,964)
Tangible assets		$      5,628,990		$      5,699,256		$      5,647,967
Common equity ratio		8.88 %		8.66 %		8.14 %
Tangible common equity ratio		7.34 %		7.12 %		6.58 %
Core Deposits:
(In thousands)		June 30, 2024		March 31, 2024		June 30, 2023
Total deposits		$         4,514,020		$         4,551,524		$         4,693,745
Adjustment for certificates of deposit		(576,563)		(585,786)		(449,265)
Adjustment for brokered deposits		(150,828)		(153,942)		(224,255)
Core deposits		$         3,786,629		$         3,811,796		$         4,020,225

Average Core Deposits:
		For the Three Months Ended						For the Six Months Ended
(In thousands)		June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Total average deposits, as presented(1)		$         4,349,135		$         4,370,688		$         4,426,370		$         4,359,912		$         4,473,138
Adjustment for average certificates of deposit		(583,282)		(582,806)		(410,272)		(583,044)		(365,489)
Average core deposits		$         3,765,853		$         3,787,882		$         4,016,098		$         3,776,868		$         4,107,649

(1)  Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/camden-national-corporation-reports-second-quarter-2024-earnings-of-12-0-million-and-diluted-eps-of-0-81--302208966.html

SOURCE Camden National Corporation

FAQ

What was Camden National 's (CAC) earnings per share in Q2 2024?

Camden National reported diluted earnings per share (EPS) of $0.81 for Q2 2024.

How did Camden National's (CAC) net interest margin change in Q2 2024?

Camden National's net interest margin increased to 2.36% in Q2 2024 from 2.30% in Q1 2024.

What was the total loan growth for Camden National (CAC) in Q2 2024?

Camden National's total loans increased by $18.3 million in Q2 2024, driven by a 3% increase in commercial loans and a 2% increase in consumer and home equity loans.

How much did Camden National (CAC) pay in dividends for Q2 2024?

Camden National announced a cash dividend of $0.42 per share for Q2 2024, payable on July 31, 2024.

What was Camden National's (CAC) provision for loan losses in Q2 2024?

Camden National recorded a provision expense of $650,000 for Q2 2024, consisting of $188,000 for loan losses and $462,000 for unfunded commitments.