CAMDEN NATIONAL CORPORATION REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS
Camden National Corporation (NASDAQ: CAC) reported a third-quarter net income of $14.3 million, down 5% from the previous quarter, with diluted earnings per share (EPS) at $0.97. For the first nine months of 2022, net income totaled $46.1 million, marking a 12% decline year-over-year. Key drivers include a $8.5 million increase in provision for credit losses and $4.2 million less SBA PPP income. Despite the challenges, revenues grew 2% year-to-date. The bank announced a $0.40 per share cash dividend, reflecting a 3.76% yield. Total assets reached $5.6 billion.
- 9M 2022 revenues grew 2% year-over-year.
- Net interest margin increased by 4 basis points to 2.88%.
- Loan growth of 13% year-to-date, with a 4% increase in Q3.
- Net income for Q3 decreased by 5% compared to Q2.
- EPS for 9M 2022 down 11% year-over-year.
- Increase in provision for credit losses by $8.5 million year-to-date.
Camden National Corporation Reports Net Income of
CAMDEN, Maine, Oct. 25, 2022 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company"), a
"Our revenues for the first nine months of the year grew
"We will prioritize maintaining our allowance for credit losses in light of macro-economic conditions although current asset quality remains extremely strong," Dufour added. "We added nearly
Net income for the nine months ended September 30, 2022, was
"In late-September, we announced the appointment of Rebecca Hatfield as a director of the Company, effective December 31, 2022. We are excited to welcome her aboard as she brings a great knowledge of our markets and the needs across our state in her role as President and Chief Executive Officer of Avesta Housing, along with her leadership and banking experience. Rebecca's experience will help advance and expand our corporate strategy while enhancing shareholder value. We look forward to her contributions," said Dufour.
In September, the Company announced a cash dividend of
Through the nine months ended September 30, 2022, the Company repurchased 225,245 shares of its common stock at an average price of
THIRD QUARTER 2022 HIGHLIGHTS
- Net income decreased by
$759,000 , or5% , over the second quarter of 2022, while earnings before income taxes, provision and SBA PPP loan income (non-GAAP) decreased$328,000 , or2% , compared to the second quarter of 2022. - Return on average equity of
12.50% and return on average tangible equity (non-GAAP) of16.02% , compared to13.16% and16.83% , respectively, for the second quarter of 2022. - Net interest margin increased 4 basis points to
2.88% , compared to the second quarter of 2022, while adjusted net interest margin (non-GAAP) expanded 3 basis points to2.88% over the same period. - Deposit beta, which is calculated using core deposits and certificates of deposits, was
14.2% through the nine months ended September 30, 2022, and its overall funding beta was15.2% over the same period. - Loans grew
$136.5 million , or4% , during the third quarter of 2022, resulting in loan growth of13% through the nine months ended September 30, 2022. - The allowance for credit losses ("ACL") on loans to total loans ratio increased 3 basis points in the third quarter of 2022 to
0.95% of total loans at September 30, 2022, driven by strong loan growth and the continued risk of a broad economic slowdown, despite overall asset quality remaining strong with non-performing assets totaling0.09% of total assets. - Repurchased 63,689 shares of the Company's common stock at a weighted average price
$44.38 during the third quarter of 2022.
FINANCIAL CONDITION
As of September 30, 2022, total assets were
As of September 30, 2022, loans totaled
Through the nine months ended September 30 2022, the Company held
As of September 30, 2022, our residential mortgage loan pipeline stood at
As of September 30, 2022, investments totaled
As of September 30, 2022, the weighted-average life and duration of the AFS investment portfolio was 5.8 years and 4.8 years, respectively, and the weighted-average life and duration of the held-to-maturity investment portfolio was 8.8 years and 7.1 years, respectively. As of September 30, 2022, agency-issued mortgage-backed, collateralized mortgage obligations and debt securities comprised
As of September 30, 2022, deposits totaled
The Company's loan-to-deposit ratio was
As of September 30, 2022, total borrowings were
As of September 30, 2022, the Company's regulatory capital ratios were each well in excess of regulatory capital requirements. Despite the Company's regulatory capital ratios remaining strong, the continued decreases in the market value of the AFS investment portfolio due to the sharp rise in interest rates through the nine months ended September 30, 2022, caused decreases across the common equity ratio and tangible common equity ratio (non-GAAP), as well as book value per share and tangible book value per share (non-GAAP) over this period. These decreases are temporary and not reflective of underlying credit risk within the investment portfolio. The Company's non-regulatory capital ratios and book value as of the dates indicated were as follows:
- As of September 30, 2022, the Company's common equity ratio was
7.76% and its tangible common equity ratio (non-GAAP) was6.13% , compared to8.17% and6.51% as of June 30, 2022, respectively, and9.84% and8.22% as of December 31, 2021, respectively. - As of September 30, 2022, the Company's book value per share was
$29.59 and its tangible book value per share (non-GAAP) was$22.97 , compared to$30.52 and$23.92 as of June 30, 2022, respectively, and$36.72 and$30.15 as of December 31, 2021, respectively.
Under the 2022 share repurchase program, the Company repurchased 225,245 shares of its outstanding common stock at a weighted-average price of
ASSET QUALITY
As of September 30, 2022, the Company's asset quality metrics remained very strong with non-performing assets strengthening to
ALLOWANCE FOR CREDIT LOSSES ("ACL")
At September 30, 2022, the ACL on loans was
Overall, the global and national markets continue to be volatile and carry a high degree of uncertainty. These factors are currently forecasted using external economic data in the ACL model and subject our ACL estimate under the current expected credit losses ("CECL") accounting model to a higher risk of fluctuation between periods based on actual macroeconomic conditions and changes to updated forecasted factors. The Company continues to monitor these economic factors, and is proactively assessing the portfolio for any future risk in specific industries that could be materially impacted by these forecasts.
FINANCIAL OPERATING RESULTS (Q3 2022 vs. Q2 2022)
Net income for the third quarter of 2022 was
Net Interest Income and Net Interest Margin. Net interest income for the third quarter of 2022 was
- Interest income for the third quarter of 2022 of
$44.6 million was$4.6 million , or11% , higher than the previous quarter. Our yield on average interest-earning assets for the third quarter increased 29 basis points to3.40% over the second quarter of 2022 driven by a rise in our loan yield of 27 basis points over this same period to3.91% for the third quarter of 2022. The increase in interest-earning asset yields reflects the continued increase in interest rates through the third quarter of 2022 and continued redeployment of lower yielding cash and investments to fund strong average loan growth between quarters of$174.8 million , or5% . - Interest expense for the third quarter of 2022 of
$6.8 million was$3.3 million , or94% , higher than the second quarter of 2022 driven by higher funding costs as short-term interest rates continued to rise sharply in the third quarter of 2022, highlighted by a 150 basis points increase in the Federal Fund rate in the third quarter bringing the range at the end of the third quarter of 2022 to3.00% -3.25% . Cost of deposits for the third quarter of 2022 were0.45% , an increase of 24 basis points over the previous quarter, primarily the result of interest checking costs increasing 53 basis points between periods to0.85% and money market funds increasing 42 basis points to0.84% in 2022. Total borrowing costs also increased during this period, increasing 41 basis points between quarters to1.38% for the third quarter of 2022.
Net interest margin for the third quarter of 2022 was
Provision for Credit Losses. The change in provision for credit losses between periods is highlighted in the table below:
($ in thousands) | Q3 2022 | Q2 2022 | Increase / (Decrease) | |||
Provision for credit losses - loans | $ 2,513 | $ 2,511 | $ 2 | |||
Provision (credit) for credit losses - off- | 251 | (166) | 417 | |||
Provision for credit losses | $ 2,764 | $ 2,345 | $ 419 |
For the third quarter of 2022, a
For the second quarter of 2022, the Company recorded
Non-Interest Income. Non-interest income for the third quarter of 2022 was
Mortgage banking activity slowed during the third quarter as interest rates continued to rise sharply driving lower purchase activity and refinance activity. For the third quarter of 2022, the Company sold
Non-Interest Expense. Non-interest expense for the third quarter of 2022 was
The Company's GAAP efficiency ratio and non-GAAP efficiency ratio for the third quarter of 2022 was
SUMMARY OF FINANCIAL OPERATING RESULTS (Q3 2022 vs. Q3 2021)
Net income for the third quarter of 2022 decreased
Net interest income increased
Provision for credit losses for the third quarter of 2022 increased
Non-interest income for the third quarter of 2022 decreased
Non-interest expense for the third quarter of 2022 increased
Q3 2022 CONFERENCE CALL
Camden National will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, October 25, 2022 to discuss its third quarter 2022 financial results and outlook. Participants should dial in to the call 10 - 15 minutes before it begins. Information about the conference call is as follows:
Live dial-in (Domestic): | (844) 200-6205 |
Live dial-in (Canada): | (833) 950-0062 |
Live dial-in (All other locations): | (929) 526-1599 |
Participant access code: | 242036 |
Live webcast: |
A link to the live webcast will be available on Camden National's website under "Investor Relations" at CamdenNationalCorporation.com prior to the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ:CAC) is the largest publicly traded bank holding company in Northern New England with
Comprehensive wealth management, investment and financial planning services are delivered by Camden National Wealth Management. To learn more, visit CamdenNational.bank.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections and other statements, which are subject to numerous risks, assumptions and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; 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, 2021, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of the war in Ukraine, the COVID-19 pandemic and other notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possible materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Camden National does not have any obligation to update forward-looking statements.
USE OF NON-GAAP MEASURES
In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures, such as earnings before income taxes and provision and earnings before income taxes, provision and SBA PPP loan income; return on average tangible equity; the efficiency and tangible common equity ratios; tangible book value per share; core deposits and average core deposits; adjusted yield on interest-earning assets and adjusted net interest margin (fully-taxable equivalent); and total loans, excluding SBA PPP loans. 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 measure 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. Reconciliation to the comparable GAAP financial measure can be found in this document.
ANNUALIZED DATA
Certain returns, yields and performance ratios are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period, and are presented for illustrative purposes only.
Selected Financial Data (unaudited) | ||||||||||
At or For The Three Months Ended | At or For The Nine Months Ended | |||||||||
(In thousands, except number of shares and per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | |||||
Financial Condition Data | ||||||||||
Investments | $ 1,276,762 | $ 1,352,882 | $ 1,471,118 | $ 1,276,762 | $ 1,471,118 | |||||
Loans and loans held for sale | $ 3,865,309 | $ 3,727,567 | $ 3,326,129 | $ 3,865,309 | $ 3,326,129 | |||||
Allowance for credit losses on loans | $ 36,542 | $ 34,244 | $ 32,272 | $ 36,542 | $ 32,272 | |||||
Total assets | $ 5,551,724 | $ 5,466,496 | $ 5,502,902 | $ 5,551,724 | $ 5,502,902 | |||||
Deposits | $ 4,568,604 | $ 4,527,061 | $ 4,605,180 | $ 4,568,604 | $ 4,605,180 | |||||
Borrowings | $ 465,432 | $ 415,833 | $ 255,883 | $ 465,432 | $ 255,883 | |||||
Shareholders' equity | $ 431,007 | $ 446,381 | $ 545,984 | $ 431,007 | $ 545,984 | |||||
Operating Data | ||||||||||
Net interest income | $ 37,813 | $ 36,534 | $ 34,746 | $ 110,712 | $ 100,639 | |||||
Provision (credit) for credit losses | 2,764 | 2,345 | 939 | 4,034 | (4,420) | |||||
Non-interest income | 9,954 | 11,141 | 11,099 | 30,920 | 37,634 | |||||
Non-interest expense | 27,091 | 26,556 | 26,263 | 79,856 | 76,752 | |||||
Income before income tax expense | 17,912 | 18,774 | 18,643 | 57,742 | 65,941 | |||||
Income tax expense | 3,645 | 3,748 | 4,003 | 11,654 | 13,418 | |||||
Net income | $ 14,267 | $ 15,026 | $ 14,640 | $ 46,088 | $ 52,523 | |||||
Key Ratios | ||||||||||
Return on average assets | 1.03 % | 1.11 % | 1.08 % | 1.13 % | 1.36 % | |||||
Return on average equity | 12.50 % | 13.16 % | 10.51 % | 12.88 % | 12.96 % | |||||
GAAP efficiency ratio | 56.71 % | 55.70 % | 57.29 % | 56.38 % | 55.51 % | |||||
Net interest margin (fully-taxable equivalent) | 2.88 % | 2.84 % | 2.76 % | 2.86 % | 2.82 % | |||||
Non-performing assets to total assets | 0.09 % | 0.11 % | 0.14 % | 0.09 % | 0.14 % | |||||
Common equity ratio | 7.76 % | 8.17 % | 9.92 % | 7.76 % | 9.92 % | |||||
Tier 1 leverage capital ratio | 9.24 % | 9.25 % | 9.13 % | 9.24 % | 9.13 % | |||||
Common equity tier 1 risk-based capital ratio | 11.72 % | 12.04 % | 12.77 % | 11.72 % | 12.77 % | |||||
Total risk-based capital ratio | 13.81 % | 14.15 % | 15.06 % | 13.81 % | 15.06 % | |||||
Per Share Data | ||||||||||
Basic earnings per share | $ 0.97 | $ 1.02 | $ 0.98 | $ 3.13 | $ 3.51 | |||||
Diluted earnings per share | $ 0.97 | $ 1.02 | $ 0.97 | $ 3.12 | $ 3.49 | |||||
Cash dividends declared per share | $ 0.40 | $ 0.40 | $ 0.36 | $ 1.20 | $ 1.08 | |||||
Book value per share | $ 29.59 | $ 30.52 | $ 36.77 | $ 29.59 | $ 36.77 | |||||
Non-GAAP Measures(1) | ||||||||||
Earnings before income taxes and provision for credit | $ 20,676 | $ 21,119 | $ 19,582 | $ 61,776 | $ 61,521 | |||||
Earnings before income taxes, provision for credit losses | $ 20,626 | $ 20,954 | $ 17,631 | $ 60,528 | $ 56,034 | |||||
Tangible book value per share | $ 22.97 | $ 23.92 | $ 30.23 | $ 22.97 | $ 30.23 | |||||
Tangible common equity ratio | 6.13 % | 6.51 % | 8.30 % | 6.13 % | 8.30 % | |||||
Return on average tangible equity | 16.02 % | 16.83 % | 12.86 % | 16.27 % | 15.91 % | |||||
Efficiency ratio | 56.43 % | 55.42 % | 57.00 % | 56.10 % | 54.83 % | |||||
Adjusted net interest margin (fully-taxable equivalent) | 2.88 % | 2.85 % | 2.82 % | 2.86 % | 2.87 % | |||||
(1) Please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)." |
Consolidated Statements of Condition Data | ||||||
(In thousands) | September 30, | December 31, | September 30, | |||
ASSETS | ||||||
Cash, cash equivalents and restricted cash | $ 82,012 | $ 220,625 | $ 379,656 | |||
Investments: | ||||||
Trading securities | 3,727 | 4,428 | 4,335 | |||
Available-for-sale securities, at fair value (amortized cost of | 723,618 | 1,507,486 | 1,455,210 | |||
Held-to-maturity securities, at amortized cost (fair value of | 534,309 | 1,291 | 1,293 | |||
Other investments | 15,108 | 10,280 | 10,280 | |||
Total investments | 1,276,762 | 1,523,485 | 1,471,118 | |||
Loans held for sale, at fair value (book value of | 4,629 | 5,815 | 10,826 | |||
Loans: | ||||||
Commercial real estate | 1,562,887 | 1,495,460 | 1,419,677 | |||
Commercial | 423,325 | 363,695 | 352,533 | |||
SBA PPP | 685 | 35,953 | 81,959 | |||
Residential real estate | 1,619,409 | 1,306,447 | 1,222,084 | |||
Consumer and home equity | 254,374 | 229,919 | 239,050 | |||
Total loans | 3,860,680 | 3,431,474 | 3,315,303 | |||
Less: allowance for credit losses on loans | (36,542) | (33,256) | (32,272) | |||
Net loans | 3,824,138 | 3,398,218 | 3,283,031 | |||
Goodwill and core deposit intangible assets | 96,416 | 96,885 | 97,049 | |||
Other assets | 267,767 | 255,328 | 261,222 | |||
Total assets | $ 5,551,724 | $ 5,500,356 | $ 5,502,902 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Deposits: | ||||||
Non-interest checking | $ 1,245,137 | $ 1,279,565 | $ 1,289,018 | |||
Interest checking | 1,460,571 | 1,351,736 | 1,266,242 | |||
Savings and money market | 1,493,518 | 1,459,472 | 1,437,550 | |||
Certificates of deposit | 279,603 | 309,648 | 323,395 | |||
Brokered deposits | 89,775 | 208,468 | 288,975 | |||
Total deposits | 4,568,604 | 4,608,889 | 4,605,180 | |||
Short-term borrowings | 421,101 | 211,608 | 211,552 | |||
Subordinated debentures | 44,331 | 44,331 | 44,331 | |||
Accrued interest and other liabilities | 86,681 | 94,234 | 95,855 | |||
Total liabilities | 5,120,717 | 4,959,062 | 4,956,918 | |||
Commitments and Contingencies | ||||||
Shareholders' equity | ||||||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding | 114,536 | 123,111 | 127,925 | |||
Retained earnings | 452,927 | 424,412 | 413,892 | |||
Accumulated other comprehensive (loss) income: | ||||||
Net unrealized (loss) gain on debt securities, net of tax | (140,268) | (1,173) | 8,958 | |||
Net unrealized gain (loss) on cash flow hedging derivative instruments, net of tax | 6,545 | (1,779) | (1,359) | |||
Net unrecognized loss on postretirement plans, net of tax | (2,733) | (3,277) | (3,432) | |||
Total accumulated other comprehensive (loss) income | (136,456) | (6,229) | 4,167 | |||
Total shareholders' equity | 431,007 | 541,294 | 545,984 | |||
Total liabilities and shareholders' equity | $ 5,551,724 | $ 5,500,356 | $ 5,502,902 |
Consolidated Statements of Income Data (unaudited) | ||||||||||
For The Three Months Ended | For The Nine Months Ended | |||||||||
(In thousands, except per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | |||||
Interest Income | ||||||||||
Interest and fees on loans | $ 37,568 | $ 33,121 | $ 31,185 | $ 102,724 | $ 92,610 | |||||
Taxable interest on investments | 5,756 | 5,850 | 5,157 | 17,395 | 13,362 | |||||
Nontaxable interest on investments | 790 | 770 | 756 | 2,324 | 2,247 | |||||
Dividend income | 137 | 106 | 99 | 349 | 306 | |||||
Other interest income | 330 | 183 | 182 | 677 | 508 | |||||
Total interest income | 44,581 | 40,030 | 37,379 | 123,469 | 109,033 | |||||
Interest Expense | ||||||||||
Interest on deposits | 5,442 | 2,510 | 1,973 | 9,785 | 5,957 | |||||
Interest on borrowings | 787 | 454 | 122 | 1,372 | 454 | |||||
Interest on subordinated debentures | 539 | 532 | 538 | 1,600 | 1,983 | |||||
Total interest expense | 6,768 | 3,496 | 2,633 | 12,757 | 8,394 | |||||
Net interest income | 37,813 | 36,534 | 34,746 | 110,712 | 100,639 | |||||
Provision (credit) for credit losses | 2,764 | 2,345 | 939 | 4,034 | (4,420) | |||||
Net interest income after provision (credit) for | 35,049 | 34,189 | 33,807 | 106,678 | 105,059 | |||||
Non-Interest Income | ||||||||||
Debit card income | 3,234 | 3,213 | 3,278 | 9,371 | 9,126 | |||||
Service charges on deposit accounts | 1,941 | 1,931 | 1,744 | 5,705 | 4,800 | |||||
Income from fiduciary services | 1,535 | 1,681 | 1,627 | 4,847 | 4,860 | |||||
Brokerage and insurance commissions | 1,003 | 1,272 | 993 | 3,269 | 2,885 | |||||
Mortgage banking income, net | 635 | 1,517 | 1,913 | 3,186 | 11,620 | |||||
Bank-owned life insurance | 374 | 569 | 589 | 1,519 | 1,774 | |||||
Net loss on sale of securities | — | (9) | — | (9) | — | |||||
Other income | 1,232 | 967 | 955 | 3,032 | 2,569 | |||||
Total non-interest income | 9,954 | 11,141 | 11,099 | 30,920 | 37,634 | |||||
Non-Interest Expense | ||||||||||
Salaries and employee benefits | 15,849 | 15,402 | 15,902 | 46,757 | 45,742 | |||||
Furniture, equipment and data processing | 3,305 | 3,202 | 2,980 | 9,639 | 8,954 | |||||
Net occupancy costs | 1,765 | 1,806 | 1,813 | 5,715 | 5,569 | |||||
Debit card expense | 1,210 | 1,134 | 1,106 | 3,410 | 3,166 | |||||
Consulting and professional fees | 814 | 1,293 | 792 | 3,114 | 2,652 | |||||
Regulatory assessments | 575 | 515 | 522 | 1,745 | 1,512 | |||||
Amortization of core deposit intangible assets | 156 | 157 | 163 | 469 | 491 | |||||
Other real estate owned and collection costs (recoveries), | 56 | 38 | 60 | 9 | (156) | |||||
Other expenses | 3,361 | 3,009 | 2,925 | 8,998 | 8,822 | |||||
Total non-interest expense | 27,091 | 26,556 | 26,263 | 79,856 | 76,752 | |||||
Income before income tax expense | 17,912 | 18,774 | 18,643 | 57,742 | 65,941 | |||||
Income Tax Expense | 3,645 | 3,748 | 4,003 | 11,654 | 13,418 | |||||
Net Income | $ 14,267 | $ 15,026 | $ 14,640 | $ 46,088 | $ 52,523 | |||||
Per Share Data | ||||||||||
Basic earnings per share | $ 0.97 | $ 1.02 | $ 0.98 | $ 3.13 | $ 3.51 | |||||
Diluted earnings per share | $ 0.97 | $ 1.02 | $ 0.97 | $ 3.12 | $ 3.49 |
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) | September 30, | June 30, | September 30, | September 30, | June 30, | September 30, | ||||||
Assets | ||||||||||||
Interest-earning assets: | ||||||||||||
Interest-bearing deposits in other banks | $ 30,063 | $ 51,018 | $ 304,594 | 2.24 % | 0.43 % | 0.12 % | ||||||
Investments - taxable | 1,288,172 | 1,366,612 | 1,284,851 | 1.88 % | 1.78 % | 1.66 % | ||||||
Investments - nontaxable(1) | 109,661 | 112,954 | 114,033 | 3.65 % | 3.45 % | 3.36 % | ||||||
Loans(2): | ||||||||||||
Commercial real estate | 1,546,638 | 1,500,284 | 1,410,201 | 4.04 % | 3.73 % | 3.59 % | ||||||
Commercial(1) | 402,152 | 399,240 | 348,619 | 4.26 % | 3.64 % | 3.59 % | ||||||
SBA PPP | 1,254 | 4,696 | 105,742 | 15.67 % | 13.88 % | 7.22 % | ||||||
Municipal(1) | 22,574 | 18,633 | 17,021 | 3.01 % | 3.13 % | 3.41 % | ||||||
Residential real estate | 1,571,449 | 1,457,639 | 1,174,559 | 3.49 % | 3.42 % | 3.53 % | ||||||
Consumer and home equity | 252,145 | 240,967 | 242,921 | 5.21 % | 4.26 % | 4.27 % | ||||||
Total loans | 3,796,212 | 3,621,459 | 3,299,063 | 3.91 % | 3.64 % | 3.73 % | ||||||
Total interest-earning assets | 5,224,108 | 5,152,043 | 5,002,541 | 3.40 % | 3.11 % | 2.97 % | ||||||
Other assets | 292,973 | 259,592 | 384,766 | |||||||||
Total assets | $ 5,517,081 | $ 5,411,635 | $ 5,387,307 | |||||||||
Liabilities & Shareholders' Equity | ||||||||||||
Deposits: | ||||||||||||
Non-interest checking | $ 1,243,174 | $ 1,199,678 | $ 1,251,492 | — % | — % | — % | ||||||
Interest checking | 1,502,436 | 1,426,335 | 1,246,634 | 0.85 % | 0.32 % | 0.20 % | ||||||
Savings | 774,725 | 751,274 | 688,331 | 0.04 % | 0.04 % | 0.04 % | ||||||
Money market | 720,641 | 707,176 | 709,705 | 0.84 % | 0.42 % | 0.29 % | ||||||
Certificates of deposit | 290,043 | 298,335 | 327,802 | 0.45 % | 0.44 % | 0.49 % | ||||||
Total deposits | 4,531,019 | 4,382,798 | 4,223,964 | 0.45 % | 0.21 % | 0.15 % | ||||||
Borrowings: | ||||||||||||
Brokered deposits | 80,701 | 145,735 | 289,374 | 1.40 % | 0.59 % | 0.45 % | ||||||
Customer repurchase agreements | 228,495 | 223,212 | 182,114 | 0.57 % | 0.40 % | 0.26 % | ||||||
Subordinated debentures | 44,331 | 44,331 | 44,331 | 4.83 % | 4.81 % | 4.81 % | ||||||
Other borrowings | 108,084 | 85,917 | — | 1.68 % | 1.07 % | — % | ||||||
Total borrowings | 461,611 | 499,195 | 515,819 | 1.38 % | 0.97 % | 0.76 % | ||||||
Total funding liabilities | 4,992,630 | 4,881,993 | 4,739,783 | 0.54 % | 0.29 % | 0.22 % | ||||||
Other liabilities | 71,636 | 71,838 | 94,803 | |||||||||
Shareholders' equity | 452,815 | 457,804 | 552,721 | |||||||||
Total liabilities & shareholders' equity | $ 5,517,081 | $ 5,411,635 | $ 5,387,307 | |||||||||
Net interest rate spread (fully-taxable equivalent) | 2.86 % | 2.82 % | 2.75 % | |||||||||
Net interest margin (fully-taxable equivalent) | 2.88 % | 2.84 % | 2.76 % | |||||||||
Adjusted net interest margin (fully-taxable equivalent) (non-GAAP) | 2.88 % | 2.85 % | 2.82 % |
(1) | Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of |
(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 Nine Months Ended | For The Nine Months Ended | |||||||
(Dollars in thousands) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||
Assets | ||||||||
Interest-earning assets: | ||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ 60,105 | $ 250,715 | 0.57 % | 0.10 % | ||||
Investments - taxable | 1,354,339 | 1,121,569 | 1.79 % | 1.66 % | ||||
Investments - nontaxable(1) | 112,526 | 115,755 | 3.49 % | 3.28 % | ||||
Loans(2): | ||||||||
Commercial real estate | 1,512,285 | 1,400,224 | 3.81 % | 3.59 % | ||||
Commercial(1) | 391,540 | 341,510 | 3.82 % | 3.81 % | ||||
SBA PPP | 9,138 | 139,453 | 18.01 % | 5.19 % | ||||
Municipal(1) | 18,837 | 22,404 | 3.17 % | 3.32 % | ||||
Residential real estate | 1,459,659 | 1,117,389 | 3.46 % | 3.67 % | ||||
Consumer and home equity | 240,041 | 255,058 | 4.60 % | 4.20 % | ||||
Total loans | 3,631,500 | 3,276,038 | 3.75 % | 3.75 % | ||||
Total interest-earning assets | 5,158,470 | 4,764,077 | 3.19 % | 3.06 % | ||||
Other assets | 291,821 | 389,409 | ||||||
Total assets | $ 5,450,291 | $ 5,153,486 | ||||||
Liabilities & Shareholders' Equity | ||||||||
Deposits: | ||||||||
Non-interest checking | $ 1,214,263 | $ 1,014,778 | — % | — % | ||||
Interest checking | 1,448,146 | 1,282,358 | 0.46 % | 0.19 % | ||||
Savings | 759,053 | 658,497 | 0.04 % | 0.04 % | ||||
Money market | 712,729 | 699,594 | 0.52 % | 0.30 % | ||||
Certificates of deposit | 297,646 | 339,230 | 0.44 % | 0.55 % | ||||
Total deposits | 4,431,837 | 3,994,457 | 0.27 % | 0.17 % | ||||
Borrowings: | ||||||||
Brokered deposits | 133,928 | 286,080 | 0.74 % | 0.45 % | ||||
Customer repurchase agreements | 220,026 | 177,559 | 0.41 % | 0.31 % | ||||
Subordinated debentures | 44,331 | 50,045 | 4.83 % | 5.30 % | ||||
Other borrowings | 65,595 | 4,762 | 1.41 % | 0.99 % | ||||
Total borrowings | 463,880 | 518,446 | 1.07 % | 0.88 % | ||||
Total funding liabilities | 4,895,717 | 4,512,903 | 0.35 % | 0.25 % | ||||
Other liabilities | 76,154 | 98,742 | ||||||
Shareholders' equity | 478,420 | 541,841 | ||||||
Total liabilities & shareholders' equity | $ 5,450,291 | $ 5,153,486 | ||||||
Net interest rate spread (fully-taxable equivalent) | 2.84 % | 2.81 % | ||||||
Net interest margin (fully-taxable equivalent) | 2.86 % | 2.82 % | ||||||
Adjusted net interest margin (fully-taxable equivalent) (non-GAAP) | 2.86 % | 2.87 % |
(1) | Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of |
(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 Nine Months Ended September 30, 2022 | At or For The Six Months Ended June 30, 2022 | At or For The Three Months Ended March 31, 2022 | At or For The Year Ended December 31, 2021 | At or For The Nine Months Ended September 30, 2021 | |||||
Non-accrual loans: | ||||||||||
Residential real estate | $ 1,562 | $ 1,831 | $ 2,052 | $ 2,107 | $ 2,576 | |||||
Commercial real estate | 73 | 182 | 183 | 184 | 207 | |||||
Commercial | 541 | 723 | 1,045 | 829 | 860 | |||||
Consumer and home equity | 589 | 769 | 1,172 | 1,207 | 1,429 | |||||
Total non-accrual loans | 2,765 | 3,505 | 4,452 | 4,327 | 5,072 | |||||
Accruing troubled-debt restructured loans not | 2,285 | 2,316 | 2,303 | 2,392 | 2,564 | |||||
Total non-performing loans | 5,050 | 5,821 | 6,755 | 6,719 | 7,636 | |||||
Other real estate owned | — | — | — | 165 | 165 | |||||
Total non-performing assets | $ 5,050 | $ 5,821 | $ 6,755 | $ 6,884 | $ 7,801 | |||||
Loans 30-89 days past due: | ||||||||||
Residential real estate | $ 2,326 | $ 918 | $ 575 | $ 400 | $ 1,195 | |||||
Commercial real estate | 195 | 258 | 91 | 47 | — | |||||
Commercial | 1,344 | 422 | 169 | 552 | 557 | |||||
Consumer and home equity | 843 | 577 | 466 | 509 | 386 | |||||
Total loans 30-89 days past due | $ 4,708 | $ 2,175 | $ 1,301 | $ 1,508 | $ 2,138 | |||||
ACL on loans at the beginning of the period | $ 33,256 | $ 33,256 | $ 33,256 | $ 37,865 | $ 37,865 | |||||
Provision (credit) for loan losses | 3,788 | 1,275 | (1,236) | (3,817) | (5,037) | |||||
Charge-offs: | ||||||||||
Residential real estate | 65 | 16 | — | 92 | 92 | |||||
Commercial real estate | — | — | — | — | — | |||||
Commercial | 744 | 561 | 245 | 799 | 503 | |||||
Consumer and home equity | 130 | 84 | 67 | 273 | 233 | |||||
Total charge-offs | 939 | 661 | 312 | 1,164 | 828 | |||||
Total recoveries | (437) | (374) | (62) | (372) | (272) | |||||
Net charge-offs | 502 | 287 | 250 | 792 | 556 | |||||
ACL on loans at the end of the period | $ 36,542 | $ 34,244 | $ 31,770 | $ 33,256 | $ 32,272 | |||||
Components of ACL: | ||||||||||
ACL on loans | $ 36,542 | $ 34,244 | $ 31,770 | $ 33,256 | $ 32,272 | |||||
ACL on off-balance sheet credit exposures(1) | 3,441 | 3,190 | 3,356 | 3,195 | 3,185 | |||||
ACL, end of period | $ 39,983 | $ 37,434 | $ 35,126 | $ 36,451 | $ 35,457 | |||||
Ratios: | ||||||||||
Non-performing loans to total loans | 0.13 % | 0.16 % | 0.19 % | 0.20 % | 0.23 % | |||||
Non-performing assets to total assets | 0.09 % | 0.11 % | 0.12 % | 0.13 % | 0.14 % | |||||
ACL on loans to total loans | 0.95 % | 0.92 % | 0.90 % | 0.97 % | 0.97 % | |||||
Net charge-offs to average loans (annualized): | ||||||||||
Quarter-to-date | 0.02 % | 0.00 % | 0.03 % | 0.03 % | 0.01 % | |||||
Year-to-date | 0.02 % | 0.02 % | 0.03 % | 0.02 % | 0.02 % | |||||
ACL on loans to non-performing loans | 723.60 % | 588.28 % | 470.32 % | 494.95 % | 422.63 % | |||||
Loans 30-89 days past due to total loans | 0.12 % | 0.06 % | 0.04 % | 0.04 % | 0.06 % | |||||
(1) Presented within accrued interest and other liabilities on the consolidated statements of condition. |
Reconciliation of non-GAAP to GAAP Financial Measures (unaudited) | ||||||||||
Return on Average Tangible Equity: | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
(Dollars in thousands) | September 30, 2022 | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||
Net income, as presented | $ 14,267 | $ 15,026 | $ 14,640 | $ 46,088 | $ 52,523 | |||||
Add: amortization of core deposit intangible | 123 | 124 | 129 | 371 | 388 | |||||
Net income, adjusted for amortization of core | $ 14,390 | $ 15,150 | $ 14,769 | $ 46,459 | $ 52,911 | |||||
Average equity, as presented | $ 452,815 | $ 457,804 | $ 552,721 | $ 478,420 | $ 541,841 | |||||
Less: average goodwill and core deposit | (96,493) | (96,648) | (97,128) | (96,651) | (97,293) | |||||
Average tangible equity | $ 356,322 | $ 361,156 | $ 455,593 | $ 381,769 | $ 444,548 | |||||
Return on average equity | 12.50 % | 13.16 % | 10.51 % | 12.88 % | 12.96 % | |||||
Return on average tangible equity | 16.02 % | 16.83 % | 12.86 % | 16.27 % | 15.91 % | |||||
(1) Assumed a |
Efficiency Ratio: | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
(Dollars in thousands) | September 30, | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||
Non-interest expense, as presented | $ 27,091 | $ 26,556 | $ 26,263 | $ 79,856 | $ 76,752 | |||||
Less: prepayment penalty on borrowings | — | — | — | — | (514) | |||||
Adjusted non-interest expense | $ 27,091 | $ 26,556 | $ 26,263 | $ 79,856 | $ 76,238 | |||||
Net interest income, as presented | $ 37,813 | $ 36,534 | $ 34,746 | $ 110,712 | $ 100,639 | |||||
Add: effect of tax-exempt income(1) | 242 | 231 | 228 | 700 | 764 | |||||
Non-interest income, as presented | 9,954 | 11,141 | 11,099 | 30,920 | 37,634 | |||||
Add: net loss on sale of securities | — | 9 | — | 9 | — | |||||
Adjusted net interest income plus non-interest | $ 48,009 | $ 47,915 | $ 46,073 | $ 142,341 | $ 139,037 | |||||
GAAP efficiency ratio | 56.71 % | 55.70 % | 57.29 % | 56.38 % | 55.51 % | |||||
Non-GAAP efficiency ratio | 56.43 % | 55.42 % | 57.00 % | 56.10 % | 54.83 % | |||||
(1) Assumed a |
Earnings before Income Taxes and Provision, and Earnings before Income Taxes, Provision | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
(In thousands) | September 30, | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||
Net income, as presented | $ 14,267 | $ 15,026 | $ 14,640 | $ 46,088 | $ 52,523 | |||||
Add: provision (credit) for credit losses | 2,764 | 2,345 | 939 | 4,034 | (4,420) | |||||
Add: income tax expense | 3,645 | 3,748 | 4,003 | 11,654 | 13,418 | |||||
Earnings before income taxes and provision | 20,676 | 21,119 | 19,582 | 61,776 | 61,521 | |||||
Less: SBA PPP loan income | (50) | (165) | (1,951) | (1,248) | (5,487) | |||||
Earnings before income taxes and provision | $ 20,626 | $ 20,954 | $ 17,631 | $ 60,528 | $ 56,034 |
Adjusted Yield on Interest-Earning Assets: | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
September 30, | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||
Yield on interest-earning assets, as presented | 3.40 % | 3.11 % | 2.97 % | 3.19 % | 3.06 % | |||||
Add: effect of excess liquidity on yield on | — % | 0.02 % | 0.16 % | 0.03 % | 0.12 % | |||||
Less: effect of SBA PPP loans on yield on | (0.01) % | (0.01) % | (0.09) % | (0.02) % | (0.06) % | |||||
Adjusted yield on interest-earning assets | 3.39 % | 3.12 % | 3.04 % | 3.20 % | 3.12 % |
Adjusted Net Interest Margin (Fully-Taxable Equivalent): | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
September 30, | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||
Net interest margin (fully-taxable equivalent), | 2.88 % | 2.84 % | 2.76 % | 2.86 % | 2.82 % | |||||
Add: effect of excess liquidity on net | — % | 0.02 % | 0.15 % | 0.02 % | 0.12 % | |||||
Less: effect of SBA PPP loans on net | — % | (0.01) % | (0.09) % | (0.02) % | (0.07) % | |||||
Adjusted net interest margin (fully-taxable | 2.88 % | 2.85 % | 2.82 % | 2.86 % | 2.87 % |
Tangible Book Value Per Share and Tangible Common Equity Ratio: | ||||||
September 30, | June 30, 2022 | September 30, 2021 | ||||
(In thousands, except number of shares, per share data and ratios) | ||||||
Tangible Book Value Per Share: | ||||||
Shareholders' equity, as presented | $ 431,007 | $ 446,381 | $ 545,984 | |||
Less: goodwill and other intangible assets | (96,416) | (96,573) | (97,049) | |||
Tangible shareholders' equity | $ 334,591 | $ 349,808 | $ 448,935 | |||
Shares outstanding at period end | 14,563,828 | 14,625,041 | 14,849,327 | |||
Book value per share | $ 29.59 | $ 30.52 | $ 36.77 | |||
Tangible book value per share | $ 22.97 | $ 23.92 | $ 30.23 | |||
Tangible Common Equity Ratio: | ||||||
Total assets | $ 5,551,724 | $ 5,466,496 | $ 5,502,902 | |||
Less: goodwill and other intangible assets | (96,416) | (96,573) | (97,049) | |||
Tangible assets | $ 5,455,308 | $ 5,369,923 | $ 5,405,853 | |||
Common equity ratio | 7.76 % | 8.17 % | 9.92 % | |||
Tangible common equity ratio | 6.13 % | 6.51 % | 8.30 % |
Core Deposits: | ||||||
(In thousands) | September 30, | June 30, | September 30, | |||
Total deposits | $ 4,568,604 | $ 4,527,061 | $ 4,605,180 | |||
Less: certificates of deposit | (279,603) | (296,408) | (323,395) | |||
Less: brokered deposits | (89,775) | (83,379) | (288,975) | |||
Core deposits | $ 4,199,226 | $ 4,147,274 | $ 3,992,810 |
Average Core Deposits: | ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
(In thousands) | September 30, | June 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||
Total average deposits | $ 4,531,019 | $ 4,382,798 | $ 4,223,964 | $ 4,431,837 | $ 3,994,457 | |||||
Less: average certificates of deposit | (290,043) | (298,335) | (327,802) | (297,646) | (339,230) | |||||
Average core deposits | $ 4,240,976 | $ 4,084,463 | $ 3,896,162 | $ 4,134,191 | $ 3,655,227 |
Total loans, excluding SBA PPP loans: | ||||||
(In thousands) | September 30, | June 30, 2022 | September 30, 2021 | |||
Total loans, as presented | $ 3,860,680 | $ 3,724,227 | $ 3,315,303 | |||
Less: SBA PPP loans | (685) | (2,509) | (81,959) | |||
Total loans, excluding SBA PPP loans | $ 3,859,995 | $ 3,721,718 | $ 3,233,344 |
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SOURCE Camden National Corporation
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