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.
|
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SOURCE Camden National Corporation
