CAMDEN, Maine, Oct. 25, 2011 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National") reported net income for the nine months ended September 30, 2011 of $20.3 million, an increase of 11% compared to $18.3 million for the same period in 2010. Earnings per diluted share for the nine months ended September 30, 2011 and 2010 were $2.65 and $2.39, respectively.
"We are pleased to report strong financial performance for the first nine months of 2011," said Gregory A. Dufour, president and chief executive officer, "given various economic stresses such as the current low interest rate environment, continued negative impact to both revenues and expenses resulting from various changes in government regulations, and the impact of what some are terming a potential 'double dip' recession. We continue to improve on key year-to-date performance measures with return on assets increasing to 1.17% for 2011 compared to 1.08% for the same period a year ago, and return on equity increasing to 12.73% for 2011 from 12.43% for 2010."
Net income was $6.9 million for the third quarter of 2011, a decrease of $512,000 compared to the third quarter of 2010 and $141,000 compared to the second quarter of 2011. Earnings per diluted share were $0.90 for the third quarter of 2011, compared to $0.97 and $0.92 for the third quarter of 2010 and the second quarter of 2011, respectively.
"The primary reason for the decline was the impact of several non-recurring items in both the third quarter 2011 and 2010," said Dufour, further commenting on these results. "Other than non-recurring items, the performance of the third quarter of 2011 was comparable to the performance of the third quarter of 2010."
Balance Sheet Highlights
Camden National's total assets were $2.3 billion at September 30, 2011, an increase of $40.7 million compared to December 31, 2010. Total loans of $1.5 billion at September 30, 2011, decreased $17.2 million, or 1%, compared to December 31, 2010. The decrease was primarily related to the decline in the residential real estate loan portfolio of $20.7 million as Camden National has been selling all thirty-year fixed rate mortgage production given the current low interest rate environment. We have experienced mixed loan growth results since year-end with commercial loans growing 6% while commercial real estate loans decreased 1% and consumer loan balances declined 8%.
Total deposits of $1.6 billion at September 30, 2011 increased $125.4 million, or 8%, compared to December 31, 2010. Since year-end, we have experienced strong core deposit growth of $150.8 million, or 16%, while retail certificates of deposit declined $47.2 million, or 10%. The growth in checking, savings and money market accounts is primarily due to a combination of businesses and individuals maintaining higher balances in short-term deposits, the acquisition of several large deposit relationships and the typical seasonal inflow of deposits during the third quarter of each year.
Asset Quality and the Provision for Credit Losses
The provision for credit losses of $1.2 million for the third quarter of 2011 increased $212,000 compared to the second quarter of 2011 and decreased $109,000 from the third quarter of 2010. The increase in the provision from the second to the third quarter of 2011 is due to an increase in the net charge-offs between quarters and management's decision to build Camden National's allowance for credit losses to 1.52% of total loans.
Camden National's ratio of non-performing assets to total assets increased to 1.26% compared to 1.03% as of September 30, 2010, but this ratio continued to compare favorably to our national peer group's average of 3.72%, based on the most recent Bank Holding Company Performance Report dated June 30, 2011. When comparing the non-performing asset composition from a year ago, residential real estate non-accrual loans increased $3.3 million, commercial real estate non-accrual loans increased $2.9 million, restructured loans increased $1.3 million, and other real estate owned declined $871,000.
Net Interest Income
Camden National's net interest income of $18.6 million for the third quarter of 2011 decreased $916,000 and $232,000 compared to the second quarter of 2011 and the third quarter of 2010, respectively. Net interest income for the second quarter 2011 included loan related non-recurring fees of $600,000. Net interest income continues to trend downwards in the current low interest rate environment as cash flows from earning assets are replaced at today's compressed yields, while funding cost reductions are minimal. The tax equivalent net interest margin decreased to 3.51% for the third quarter of 2011, compared to 3.64% and 3.61% for the second quarter of 2011 and the third quarter of 2010, respectively.
Net interest income for the nine months ended September 30, 2011, increased $1.3 million, or 2%, to $56.8 million, compared to $55.5 million for the same period a year ago. The increase in net interest income is primarily due to an increase in our average earning assets of $66.9 million, partially offset by a decline in our net interest margin to 3.55% from 3.60% for the nine months ended September 30, 2011 and 2010, respectively.
Non-Interest Income and Non-Interest Expense
Non-interest income of $5.8 million for the third quarter of 2011 decreased $974,000, or 14%, compared to the third quarter of 2010. The decline in non-interest income was primarily due to a $1.9 million decrease in other income, partially offset by a $509,000 increase in income from bank-owned life insurance. The $1.9 million decrease in other income was primarily related to one significant event, a $2.0 million legal settlement received in the third quarter of 2010. On a linked-quarter basis (comparing current quarter results to the previous quarter), third quarter 2011 non-interest income increased $819,000, primarily related to non-recurring bank-owned life insurance proceeds of $550,000 recorded in the third quarter of 2011.
Non-interest income of $15.9 million for the nine months ended September 30, 2011, increased $153,000, or 1%, compared to the same period in 2010.
Non-interest expense of $13.3 million for the third quarter of 2011 decreased $152,000, or 1%, compared to the third quarter of 2010, primarily related to lower FDIC deposit assessments of $422,000 and declines in write-downs of other real estate owned of $119,000, partially offset by an increase in salaries and employee benefits of $488,000. The growth in salaries and employee benefits reflect an increase in employees' incentive compensation of $326,000, based on our 2011 financial performance exceeding benchmarks determined by the Board of Directors. On a linked-quarter basis, non-interest expense was unchanged.
Non-interest expense of $39.9 million for the nine months ended September 30, 2011, increased $626,000 compared to the same period in 2010. This 2% increase relates to increases in salaries and employee benefit costs and consulting fees, partially offset by a decline in write-downs of other real estate owned and lower FDIC deposit assessments.
Dividends and Capital
The Board of Directors approved a dividend of $0.25 per share, payable on October 31, 2011, to shareholders of record on October 17, 2011. This resulted in an annualized dividend yield of 3.67%, based on the September 30, 2011, closing price of Camden National's common stock of $27.23 per share as reported on NASDAQ.
Camden National's total risk-based capital ratio increased to 16.05% at September 30, 2011, compared to 14.56% at September 30, 2010, and 15.05% at December 31, 2010, as capital levels increased from retained earnings. Camden National and its wholly-owned subsidiary Camden National Bank, exceeded the minimum total risk-based, tier 1 and tier 1 leverage ratios of 10.0%, 6.0%, and 5.0%, respectively, required by the Federal Reserve for an institution to be considered "well capitalized."
The Board of Directors also authorized the 2011 Common Stock Repurchase Program ("Repurchase Program"). The Repurchase Program will allow for the repurchase of up to 500,000 shares, or approximately 6.5%, of the Company's outstanding common stock over the next year.
"One important component of our capital plan is a stock buyback program which will provide flexibility to efficiently return capital to our shareholders," Dufour explained. "The Repurchase Program allows the buyback of common shares at times when the market may not value our stock appropriately." The Repurchase Program will expire on October 1, 2012.
About Camden National Corporation
Camden National Corporation, headquartered in Camden, Maine, is the holding company employing more than 400 Maine residents for two financial services companies including Camden National Bank and the wealth management company, Acadia Trust, N.A. Camden National Bank is a full-service community bank with a network of 38 banking offices throughout Maine. Acadia Trust offers investment management and fiduciary services with offices in Portland, Bangor and Ellsworth. Located at Camden National Bank, Camden Financial Consultants, formerly known as Acadia Financial Consultants, offers full-service brokerage and insurance services.
Forward-Looking Statements
This press release and the documents incorporated by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, projections, and statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "plan," "target," or "goal," or future or conditional verbs such as "will," "may", "might", "should," "would", "could" and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements should not be relied on, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Camden National. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Camden National to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include, but are not limited to, the following: (1) general, national, regional or local economic conditions which are less favorable than anticipated; (2) changes in loan default and charge-off rates; ; including such actions resulting from worsening of credit quality performance due to a number of factors such as the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected; (3) competitive pressures on pricing of products and services; (4) success, impact, and timing of our business strategies, including market acceptance of any new products or services; (5) changes in accounting policies and principles and the accuracy of our assumptions and estimates used to prepare financial statements; (6) extended disruption of vital infrastructure; (7) the final outcome of significant litigation or threatened litigation; (8) the outcome of judicial and regulatory decisions regarding practices in the residential mortgage industry, including, among other things, the process followed for foreclosing residential mortgages; (9) declines in the securities and financial markets; (10) reductions in deposit levels; (11) declines in mortgage loan refinancing, equity loan and line of credit activity; (12) changes and movements in the domestic interest rate environment and inflation; (13) changes in the carrying value of investment securities and other assets; (14) further actions by the U.S. government and Treasury Department, including actions similar to the Federal Home Loan Mortgage Corporation conservatorship, which could have a negative impact on Camden National's investment portfolio and earnings; (15) misalignment of Camden National's interest-bearing assets and liabilities; (16) increases in loan repayment rates affecting interest income and the value of mortgage servicing rights; (17) changing business, banking, or regulatory conditions or policies, or new legislation affecting the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, and future regulations to be adopted by the relevant regulatory agencies, including the Consumer Financial Protection Bureau (CFPB), to implement the Act's provisions, any of which could lead to changes in the competitive balance among financial institutions, restrictions on bank activities; and, (18) changes in costs (including deposit insurance premiums), increased regulatory scrutiny, declines in consumer confidence in depository institutions, or changes in the secondary market for bank loan and other products; and changes in accounting rules, Federal and State laws, Internal Revenue Service regulations, and other regulations and policies governing financial holding companies and their subsidiaries which may impact our ability to take appropriate action to protect or maximize our financial interests in certain loan situations. Additional factors that could also cause results to differ materially from those described above can be found in the Company's periodic reports. For more information about these factors please see our Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings on file with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements.
These forward-looking statements were based on information, plans and estimates at the date of this press release, and Camden National does not promise and assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Use of Non-GAAP Financial Measures
This document may contain GAAP financial measures and non-GAAP financial measures where management believes it to be helpful in understanding Camden National's results of operations or financial position. If and where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can also be found in this document or the Form 8-K related to this document, all of which can be found on Camden National's website at www.camdennational.com.
Annualized Data
Certain returns, yields, and performance ratios, are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full year or year-over-year amounts. For example, net loan charge-offs to average loans, are most often expressed in terms of an annual rate like 0.20%. As such, a net loan charge-offs to average loans ratio of 0.05% for a quarter would represent 0.20%, annualized.
Statement of Condition Data (unaudited) | |
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| |
| September 30, | September 30, | December 31, | |
(In thousands, except number of shares) |
| 2011 |
|
| 2010 |
|
| 2010 | |
|
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|
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|
|
|
| |
Assets |
|
|
|
|
|
|
|
| |
Cash and due from banks | $ | 89,266 |
| $ | 33,382 |
| $ | 31,009 | |
Securities |
|
|
|
|
|
|
|
| |
Securities available for sale, at fair value |
| 591,955 |
|
| 541,235 |
|
| 553,579 | |
Securities held to maturity, at amortized cost |
| - |
|
| 36,745 |
|
| 36,102 | |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost |
| 21,962 |
|
| 21,962 |
|
| 21,962 | |
Total securities |
| 613,917 |
|
| 599,942 |
|
| 611,643 | |
Trading account assets |
| 2,162 |
|
| 2,173 |
|
| 2,304 | |
Loans held for sale |
| 762 |
|
| 2,456 |
|
| 5,528 | |
Loans |
| 1,512,312 |
|
| 1,536,077 |
|
| 1,524,752 | |
Less allowance for loan losses |
| (23,011) |
|
| (22,336) |
|
| (22,293) | |
Net loans |
| 1,489,301 |
|
| 1,513,741 |
|
| 1,502,459 | |
Goodwill and other intangible assets |
| 45,389 |
|
| 45,966 |
|
| 45,821 | |
Bank-owned life insurance |
| 44,019 |
|
| 42,796 |
|
| 43,155 | |
Premises and equipment, net |
| 23,970 |
|
| 25,884 |
|
| 25,044 | |
Deferred tax asset |
| 11,341 |
|
| 11,317 |
|
| 12,281 | |
Interest receivable |
| 6,519 |
|
| 7,337 |
|
| 6,875 | |
Prepaid FDIC assessment |
| 5,088 |
|
| 6,686 |
|
| 6,155 | |
Other real estate owned |
| 1,759 |
|
| 2,630 |
|
| 2,387 | |
Other assets |
| 13,223 |
|
| 13,692 |
|
| 11,346 | |
Total assets | $ | 2,346,716 |
| $ | 2,308,002 |
| $ | 2,306,007 | |
|
|
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| |
Liabilities |
|
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|
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|
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| |
Deposits |
|
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|
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| |
Demand | $ | 278,900 |
| $ | 226,678 |
| $ | 229,547 | |
Interest checking, savings and money market |
| 823,349 |
|
| 747,000 |
|
| 721,905 | |
Retail certificates of deposit |
| 417,456 |
|
| 492,397 |
|
| 464,662 | |
Brokered deposits |
| 121,552 |
|
| 116,173 |
|
| 99,697 | |
Total deposits |
| 1,641,257 |
|
| 1,582,248 |
|
| 1,515,811 | |
Federal Home Loan Bank advances |
| 126,953 |
|
| 164,397 |
|
| 214,236 | |
Other borrowed funds |
| 279,033 |
|
| 287,810 |
|
| 302,069 | |
Junior subordinated debentures |
| 43,691 |
|
| 43,589 |
|
| 43,614 | |
Accrued interest and other liabilities |
| 33,843 |
|
| 25,768 |
|
| 24,282 | |
Total liabilities |
| 2,124,777 |
|
| 2,103,812 |
|
| 2,100,012 | |
|
|
|
|
|
|
|
|
| |
Shareholders' Equity |
|
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|
|
|
| |
Common stock, no par value; authorized 20,000,000 shares, issued and |
|
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|
| |
outstanding 7,678,143, 7,657,098, and 7,658,496 shares on September 30, 2011 |
|
|
|
|
|
|
|
| |
and 2010 and December 31, 2010, respectively |
| 51,375 |
|
| 50,763 |
|
| 50,936 | |
Retained earnings |
| 165,300 |
|
| 146,179 |
|
| 150,730 | |
Accumulated other comprehensive income |
|
|
|
|
|
|
|
| |
Net unrealized gains on securities available for sale, net of tax |
| 13,485 |
|
| 10,817 |
|
| 6,229 | |
Net unrealized losses on derivative instruments, at fair value, net of tax |
| (7,072) |
|
| (2,636) |
|
| (709) | |
Net unrecognized losses on post-retirement plans, net of tax |
| (1,149) |
|
| (933) |
|
| (1,191) | |
Total accumulated other comprehensive income |
| 5,264 |
|
| 7,248 |
|
| 4,329 | |
Total shareholders' equity |
| 221,939 |
|
| 204,190 |
|
| 205,995 | |
Total liabilities and shareholders' equity | $ | 2,346,716 |
| $ | 2,308,002 |
| $ | 2,306,007 | |
| | | | | | | | |
Statement of Income Data (unaudited) | |
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| |
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, | |
(In thousands, except number of shares and per share data) |
| 2011 |
|
| 2010 |
|
|
| 2011 |
|
| 2010 | |
|
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| |
Interest income |
|
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|
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|
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|
|
|
|
| |
Interest and fees on loans | $ | 19,515 |
| $ | 20,685 |
|
| $ | 59,241 |
| $ | 61,725 | |
Interest on U.S. government and sponsored enterprise obligations |
| 4,439 |
|
| 5,037 |
|
|
| 14,241 |
|
| 15,366 | |
Interest on state and political subdivision obligations |
| 387 |
|
| 528 |
|
|
| 1,284 |
|
| 1,601 | |
Interest on federal funds sold and other investments |
| 45 |
|
| 28 |
|
|
| 125 |
|
| 84 | |
Total interest income |
| 24,386 |
|
| 26,278 |
|
|
| 74,891 |
|
| 78,776 | |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
| |
Interest on deposits |
| 2,842 |
|
| 3,734 |
|
|
| 8,820 |
|
| 11,812 | |
Interest on borrowings |
| 2,265 |
|
| 2,953 |
|
|
| 7,319 |
|
| 9,357 | |
Interest on junior subordinated debentures |
| 632 |
|
| 712 |
|
|
| 1,983 |
|
| 2,108 | |
Total interest expense |
| 5,739 |
|
| 7,399 |
|
|
| 18,122 |
|
| 23,277 | |
Net interest income |
| 18,647 |
|
| 18,879 |
|
|
| 56,769 |
|
| 55,499 | |
Provision for credit losses |
| 1,182 |
|
| 1,291 |
|
|
| 3,271 |
|
| 5,237 | |
Net interest income after provision for credit losses |
| 17,465 |
|
| 17,588 |
|
|
| 53,498 |
|
| 50,262 | |
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
| |
Income from fiduciary services |
| 1,517 |
|
| 1,618 |
|
|
| 4,503 |
|
| 4,697 | |
Service charges on deposit accounts |
| 1,296 |
|
| 1,151 |
|
|
| 3,879 |
|
| 3,716 | |
Other service charges and fees |
| 878 |
|
| 945 |
|
|
| 2,691 |
|
| 2,507 | |
Bank-owned life insurance |
| 910 |
|
| 401 |
|
|
| 1,784 |
|
| 1,119 | |
Brokerage and insurance commissions |
| 307 |
|
| 419 |
|
|
| 1,050 |
|
| 1,065 | |
Mortgage banking income, net |
| 368 |
|
| 160 |
|
|
| 500 |
|
| 332 | |
Net gain (loss) on sale of securities |
| 177 |
|
| (188) |
|
|
| 197 |
|
| (188) | |
Other income |
| 433 |
|
| 2,331 |
|
|
| 1,433 |
|
| 2,765 | |
Non-interest income before other-than-temporary |
|
|
|
|
|
|
|
|
|
|
|
| |
impairment of securities |
| 5,886 |
|
| 6,837 |
|
|
| 16,037 |
|
| 16,013 | |
Other-than-temporary impairment of securities |
| (61) |
|
| (38) |
|
|
| (88) |
|
| (217) | |
Total non-interest income |
| 5,825 |
|
| 6,799 |
|
|
| 15,949 |
|
| 15,796 | |
Non-interest expenses |
|
|
|
|
|
|
|
|
|
|
|
| |
Salaries and employee benefits |
| 7,437 |
|
| 6,949 |
|
|
| 21,402 |
|
| 19,472 | |
Furniture, equipment and data processing |
| 1,149 |
|
| 1,150 |
|
|
| 3,518 |
|
| 3,396 | |
Net occupancy |
| 944 |
|
| 899 |
|
|
| 2,960 |
|
| 2,830 | |
Consulting and professional fees |
| 601 |
|
| 591 |
|
|
| 2,143 |
|
| 1,929 | |
Regulatory assessments |
| 410 |
|
| 832 |
|
|
| 1,515 |
|
| 2,149 | |
Other real estate owned and collection costs |
| 517 |
|
| 636 |
|
|
| 1,423 |
|
| 2,768 | |
Amortization of identifiable intangible assets |
| 144 |
|
| 144 |
|
|
| 433 |
|
| 432 | |
Other expenses |
| 2,105 |
|
| 2,258 |
|
|
| 6,470 |
|
| 6,262 | |
Total non-interest expenses |
| 13,307 |
|
| 13,459 |
|
|
| 39,864 |
|
| 39,238 | |
Income before income taxes |
| 9,983 |
|
| 10,928 |
|
|
| 29,583 |
|
| 26,820 | |
Income taxes |
| 3,054 |
|
| 3,487 |
|
|
| 9,245 |
|
| 8,480 | |
Net income | $ | 6,929 |
| $ | 7,441 |
|
| $ | 20,338 |
| $ | 18,340 | |
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Selected Financial and Per Share Data: |
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| |
Return on average equity |
| 12.44% |
|
| 14.66% |
|
|
| 12.73% |
|
| 12.43% | |
Return on average tangible equity |
| 15.67% |
|
| 19.01% |
|
|
| 16.18% |
|
| 16.22% | |
Return on average assets |
| 1.19% |
|
| 1.29% |
|
|
| 1.17% |
|
| 1.08% | |
Efficiency ratio (1) |
| 53.97% |
|
| 51.22% |
|
|
| 54.20% |
|
| 53.90% | |
Basic earnings per share | $ | 0.90 |
| $ | 0.97 |
| $ |
| 2.65 |
| $ | 2.40 | |
Diluted earnings per share | $ | 0.90 |
| $ | 0.97 |
| $ |
| 2.65 |
| $ | 2.39 | |
Cash dividends declared per share | $ | 0.25 |
| $ | 0.25 |
| $ |
| 0.75 |
| $ | 0.75 | |
Weighted average number of common shares outstanding |
| 7,677,972 |
|
| 7,657,098 |
|
|
| 7,671,911 |
|
| 7,655,097 | |
Diluted weighted average number of common shares outstanding |
| 7,683,570 |
|
| 7,663,051 |
|
|
| 7,680,401 |
|
| 7,660,919 | |
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(1) Computed by dividing non-interest expense by the sum of net interest income (tax equivalent) and non-interest income | |
(excluding securities gains/losses). | |
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Average Balance, Interest and Yield/Rate Analysis (unaudited) | |
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| At or for the Nine Months Ended |
| At or for the Nine Months Ended | |
|
| September 30, 2011 |
|
| September 30, 2010 | |
(In thousands) |
| Average |
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| Yield/ |
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| Average |
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| Yield/ | |
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| Balance |
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| Interest |
| Rate |
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| Balance |
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| Interest |
| Rate | |
Assets |
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Interest-earning assets: |
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|
|
|
|
|
|
|
| |
Securities - taxable | $ | 568,477 |
| $ | 14,346 |
| 3.36% |
| $ | 497,312 |
| $ | 15,434 |
| 4.14% | |
Securities - nontaxable (1) |
| 45,220 |
|
| 1,975 |
| 5.82% |
|
| 55,047 |
|
| 2,463 |
| 5.97% | |
Trading account assets |
| 2,256 |
|
| 20 |
| 1.16% |
|
| 1,895 |
|
| 16 |
| 1.13% | |
Loans: (1) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Residential real estate |
| 593,072 |
|
| 22,799 |
| 5.13% |
|
| 623,409 |
|
| 25,125 |
| 5.37% | |
Commercial real estate |
| 465,988 |
|
| 19,302 |
| 5.46% |
|
| 440,720 |
|
| 19,039 |
| 5.70% | |
Commercial |
| 177,952 |
|
| 6,904 |
| 5.12% |
|
| 175,689 |
|
| 7,236 |
| 5.43% | |
Municipal |
| 20,967 |
|
| 719 |
| 4.58% |
|
| 16,417 |
|
| 675 |
| 5.50% | |
Consumer |
| 281,608 |
|
| 9,769 |
| 4.64% |
|
| 278,116 |
|
| 9,887 |
| 4.75% | |
Total loans |
| 1,539,587 |
|
| 59,493 |
| 5.13% |
|
| 1,534,351 |
|
| 61,962 |
| 5.36% | |
Total interest-earning assets |
| 2,155,540 |
|
| 75,834 |
| 4.67% |
|
| 2,088,605 |
|
| 79,875 |
| 5.08% | |
Cash and due from banks |
| 32,540 |
|
|
|
|
|
|
| 33,930 |
|
|
|
|
| |
Other assets |
| 155,105 |
|
|
|
|
|
|
| 162,127 |
|
|
|
|
| |
Less allowance for loan losses |
| (22,822) |
|
|
|
|
|
|
| (21,913) |
|
|
|
|
| |
Total assets | $ | 2,320,363 |
|
|
|
|
|
| $ | 2,262,749 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Liabilities & Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest checking accounts | $ | 252,637 |
|
| 411 |
| 0.22% |
| $ | 249,441 |
|
| 681 |
| 0.36% | |
Savings accounts |
| 169,586 |
|
| 314 |
| 0.25% |
|
| 153,781 |
|
| 358 |
| 0.31% | |
Money market accounts |
| 331,936 |
|
| 1,777 |
| 0.72% |
|
| 285,972 |
|
| 1,781 |
| 0.83% | |
Certificates of deposit |
| 441,394 |
|
| 4,876 |
| 1.48% |
|
| 528,784 |
|
| 7,694 |
| 1.95% | |
Total retail deposits |
| 1,195,553 |
|
| 7,378 |
| 0.83% |
|
| 1,217,978 |
|
| 10,514 |
| 1.15% | |
Brokered deposits |
| 122,788 |
|
| 1,442 |
| 1.57% |
|
| 104,135 |
|
| 1,298 |
| 1.67% | |
Junior subordinated debentures |
| 43,653 |
|
| 1,983 |
| 6.07% |
|
| 43,553 |
|
| 2,108 |
| 6.47% | |
Borrowings |
| 479,949 |
|
| 7,319 |
| 2.04% |
|
| 477,023 |
|
| 9,357 |
| 2.62% | |
Total wholesale funding |
| 646,390 |
|
| 10,744 |
| 2.22% |
|
| 624,711 |
|
| 12,763 |
| 2.73% | |
Total interest-bearing liabilities |
| 1,841,943 |
|
| 18,122 |
| 1.32% |
|
| 1,842,689 |
|
| 23,277 |
| 1.69% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Demand deposits |
| 241,480 |
|
|
|
|
|
|
| 200,515 |
|
|
|
|
| |
Other liabilities |
| 23,296 |
|
|
|
|
|
|
| 22,197 |
|
|
|
|
| |
Shareholders' equity |
| 213,644 |
|
|
|
|
|
|
| 197,348 |
|
|
|
|
| |
Total liabilities & shareholders' equity | $ | 2,320,363 |
|
|
|
|
|
| $ | 2,262,749 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest income (fully-taxable equivalent) |
|
|
|
| 57,712 |
|
|
|
|
|
|
| 56,598 |
|
| |
Less: fully-taxable equivalent adjustment |
|
|
|
| (943) |
|
|
|
|
|
|
| (1,099) |
|
| |
Net interest income |
|
|
| $ | 56,769 |
|
|
|
|
|
| $ | 55,499 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest rate spread (fully-taxable equivalent) |
|
|
|
|
|
| 3.35% |
|
|
|
|
|
|
| 3.39% | |
Net interest margin (fully-taxable equivalent) |
|
|
|
|
|
| 3.55% |
|
|
|
|
|
|
| 3.60% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
(1) Reported on tax-equivalent basis calculated using a tax rate of 35%. | |
(2) Non-accrual loans and loans held for sale are included in total average loans. | |
| | | | | | | | | | | | | | | |
Asset Quality Data (unaudited) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
| At or for Nine Months Ended | At or for Six Months Ended |
| At or for Three Months Ended |
| At or for Twelve Months Ended |
| At or for Nine Months Ended | |
(In thousands) | September 30, 2011 | June 30, 2011 |
| March 31, 2011 |
| December 31, 2010 |
| September 30, 2010 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Residential real estate | $ | 9,060 |
| $ | 8,581 |
| $ | 8,171 |
| $ | 7,225 |
| $ | 5,793 | |
Commercial real estate |
| 9,596 |
|
| 7,661 |
|
| 6,442 |
|
| 6,072 |
|
| 6,725 | |
Commercial |
| 4,278 |
|
| 3,809 |
|
| 3,977 |
|
| 4,421 |
|
| 4,334 | |
Consumer |
| 1,502 |
|
| 1,464 |
|
| 1,337 |
|
| 1,721 |
|
| 1,155 | |
Total non-accrual loans |
| 24,436 |
|
| 21,515 |
|
| 19,927 |
|
| 19,439 |
|
| 18,007 | |
Loans 90 days past due and accruing |
| - |
|
| - |
|
| 430 |
|
| 711 |
|
| 1,034 | |
Renegotiated loans not included above |
| 3,310 |
|
| 3,447 |
|
| 2,584 |
|
| 2,295 |
|
| 2,055 | |
Total non-performing loans |
| 27,746 |
|
| 24,962 |
|
| 22,941 |
|
| 22,445 |
|
| 21,096 | |
Other real estate owned: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Residential real estate |
| 1,098 |
|
| 989 |
|
| 251 |
|
| 284 |
|
| 412 | |
Commercial real estate |
| 661 |
|
| 827 |
|
| 1,939 |
|
| 2,103 |
|
| 2,218 | |
Total other real estate owned |
| 1,759 |
|
| 1,816 |
|
| 2,190 |
|
| 2,387 |
|
| 2,630 | |
Total non-performing assets | $ | 29,505 |
| $ | 26,778 |
| $ | 25,131 |
| $ | 24,832 |
| $ | 23,726 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loans 30-89 days past due: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Residential real estate | $ | 1,447 |
| $ | 500 |
| $ | 2,739 |
| $ | 2,493 |
| $ | 3,186 | |
Commercial real estate |
| 1,149 |
|
| 1,668 |
|
| 2,786 |
|
| 1,439 |
|
| 1,234 | |
Commercial |
| 1,226 |
|
| 771 |
|
| 1,393 |
|
| 928 |
|
| 2,772 | |
Consumer |
| 505 |
|
| 344 |
|
| 358 |
|
| 926 |
|
| 436 | |
Total loans 30-89 days past due | $ | 4,327 |
| $ | 3,283 |
| $ | 7,276 |
| $ | 5,786 |
| $ | 7,628 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Allowance for loan losses at the beginning of the period | $ | 22,293 |
| $ | 22,293 |
| $ | 22,293 |
| $ | 20,246 |
| $ | 20,246 | |
Provision for loan losses |
| 3,270 |
|
| 2,083 |
|
| 1,117 |
|
| 6,325 |
|
| 5,242 | |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Residential real estate |
| 1,036 |
|
| 797 |
|
| 172 |
|
| 1,262 |
|
| 1,103 | |
Commercial real estate |
| 946 |
|
| 325 |
|
| 231 |
|
| 1,382 |
|
| 844 | |
Commercial |
| 1,080 |
|
| 755 |
|
| 378 |
|
| 1,502 |
|
| 1,098 | |
Consumer |
| 355 |
|
| 140 |
|
| 66 |
|
| 1,401 |
|
| 760 | |
Total charge-offs |
| 3,417 |
|
| 2,017 |
|
| 847 |
|
| 5,547 |
|
| 3,805 | |
Total recoveries |
| 865 |
|
| 630 |
|
| 324 |
|
| 1,269 |
|
| 653 | |
Net charge-offs |
| 2,552 |
|
| 1,387 |
|
| 523 |
|
| 4,278 |
|
| 3,152 | |
Allowance for loan losses at the end of the period | $ | 23,011 |
| $ | 22,989 |
| $ | 22,887 |
| $ | 22,293 |
| $ | 22,336 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Components of allowance for credit losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Allowance for loan losses | $ | 23,011 |
| $ | 22,989 |
| $ | 22,887 |
| $ | 22,293 |
| $ | 22,336 | |
Liability for unfunded credit commitments |
| 26 |
|
| 31 |
|
| 28 |
|
| 25 |
|
| 47 | |
Balance of allowance for credit losses | $ | 23,037 |
| $ | 23,020 |
| $ | 22,915 |
| $ | 22,318 |
| $ | 22,383 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-performing loans to total loans |
| 1.83% |
|
| 1.61% |
|
| 1.49% |
|
| 1.47% |
|
| 1.37% | |
Non-performing assets to total assets |
| 1.26% |
|
| 1.15% |
|
| 1.08% |
|
| 1.08% |
|
| 1.03% | |
Allowance for credit losses to total loans |
| 1.52% |
|
| 1.48% |
|
| 1.49% |
|
| 1.46% |
|
| 1.45% | |
Net charge-offs to average loans (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quarter-to-date |
| 0.30% |
|
| 0.22% |
|
| 0.14% |
|
| 0.29% |
|
| 0.32% | |
Year-to-date |
| 0.22% |
|
| 0.18% |
|
| 0.14% |
|
| 0.28% |
|
| 0.27% | |
Allowance for credit losses to non-performing loans |
| 83.03% |
|
| 92.22% |
|
| 99.89% |
|
| 99.44% |
|
| 106.10% | |
Loans 30-89 days past due to total loans |
| 0.29% |
|
| 0.21% |
|
| 0.47% |
|
| 0.38% |
|
| 0.50% | |
| | | | | | | | | | | | | | |
Selected Financial Data (unaudited) | |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| At or for |
|
| |
|
| At or for the Nine Months Ended |
| the Year Ended |
|
| |
|
| September 30, |
| December 31, |
|
| |
|
| 2011 |
|
| 2010 |
|
| 2010 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Tier 1 leverage capital ratio |
| 9.43% |
|
| 8.65% |
|
| 8.77% |
|
|
| |
Tier 1 risk-based capital ratio |
| 14.80% |
|
| 13.30% |
|
| 13.80% |
|
|
| |
Total risk-based capital ratio |
| 16.05% |
|
| 14.56% |
|
| 15.05% |
|
|
| |
Tangible equity to tangible assets (1) |
| 7.67% |
|
| 6.99% |
|
| 7.09% |
|
|
| |
Book value per share | $ | 28.91 |
| $ | 26.67 |
| $ | 26.90 |
|
|
| |
Tangible book value per share (2) | $ | 22.99 |
| $ | 20.66 |
| $ | 20.91 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Investment Data (unaudited) | |
|
|
|
|
|
|
|
|
|
|
|
| |
| September 30, 2011 | |
|
| Amortized |
|
| Unrealized |
|
| Unrealized |
|
| Fair | |
(In thousands) |
| Cost |
|
| Gains |
|
| Losses |
|
| Value | |
|
|
|
|
|
|
|
|
|
|
|
| |
Available for sale |
|
|
|
|
|
|
|
|
|
|
| |
Obligations of U.S. government sponsored enterprises | $ | 59,908 |
| $ | 510 |
| $ | (28) |
| $ | 60,390 | |
Obligations of states and political subdivisions |
| 39,234 |
|
| 3,004 |
|
| - |
|
| 42,238 | |
Mortgage-backed securities issued or guaranteed by |
|
|
|
|
|
|
|
|
|
|
| |
U.S. government sponsored enterprises |
| 454,125 |
|
| 19,907 |
|
| (91) |
|
| 473,941 | |
Private issue collateralized mortgage obligations (CMO) |
| 12,942 |
|
| - |
|
| (1,799) |
|
| 11,143 | |
Total debt securities |
| 566,209 |
|
| 23,421 |
|
| (1,918) |
|
| 587,712 | |
Equity securities |
| 5,000 |
|
| - |
|
| (757) |
|
| 4,243 | |
Total securities available for sale | $ | 571,209 |
| $ | 23,421 |
| $ | (2,675) |
| $ | 591,955 | |
|
|
|
|
|
|
|
|
|
|
|
| |
Other securities |
|
|
|
|
|
|
|
|
|
|
| |
Federal Home Loan Bank Stock | $ | 21,031 |
| $ | - |
| $ | - |
| $ | 21,031 | |
Federal Reserve Bank Stock |
| 931 |
|
| - |
|
| - |
|
| 931 | |
Total other securities | $ | 21,962 |
| $ | - |
| $ | - |
| $ | 21,962 | |
|
|
|
|
|
|
|
|
|
|
|
| |
Trading account assets |
|
|
|
|
|
|
|
|
| $ | 2,162 | |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
(1) Computed by dividing total shareholders’ equity less goodwill and other intangible assets by total assets less goodwill and other intangible assets. | |
(2) Computed by dividing total shareholders’ equity less goodwill and other intangible assets by the number of common shares outstanding. | |
| | | | | | | | | | | |
(Logo: http://photos.prnewswire.com/prnh/20110505/NE96304LOGO-b )
CONTACT: Susan M. Westfall, Senior Vice President, Clerk, Camden National Corporation, +1-207-230-2096, swestfall@camdennational.com
