CAC - Earnings call transcript Q3 2018 | Camden National Corporation

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Operator

Good day. And welcome to the Camden National Corporation Third Quarter 2018 Earnings Conference Call. My name is Austin and I will be your operator for today’s call. All participants will be in listen-only mode during today’s presentation.

Following the presentation, we’ll conduct a question-and-answer session [Operator Instructions]. the presentation that statements, to may from projected this risks involve vary that those uncertainties statements. and cause in note contains which forward-looking significant materially Please looking forward actual results

time, information Annual from in the statements update Report to GAAP in press call measures Dufour, Chief XX-K are materially Company's Vice on today’s Company factors to Today's turn described note The being Please release, financial President, press circumstances recorded. in statements does President, Officer. our Please Greg Greg intended those undertake to Chief could any SEC. also presenters go non-GAAP this forward Executive actually occur the Form Officer would and such Financial Dufour. cause Deborah ahead. Operating to Additional meaningful event is results looking concerning the differ references Chief Jordan, are earnings and are with in conference and forward-looking insights that statements with Director over Executive I in that filings events today's provide release. Company’s other that and forward-looking like to presentation are reconciled reflect Any Officer to At any or and not the obligation the are after to made. XXXX

Greg Dufour

quarter Good afternoon. And call. conference earnings third Camden for joining Corporation thank you National the

of third per year-to-date We’re of or announce earnings the $X.XX million million quarter per XXXX $XX.X diluted or to diluted pleased record earnings This to quarterly $X.XX for share. share. brought $XX.X

basis. our well efficiency points quality of and quarter and solid to for the basis year-to-date asset quarter deposit ratio on strong with X.XX%, net happy We’re margin our loan third with a XX.XX% our as interest really an at as increase in X growth, performance

also asset our this more few will on net gathering up will shareholder in We've well will time, we this over point increasing as the of details quarters not over expand our of internal small touch, the decisioning products, over is the introduced At value. system. request time past a consistently stock to potential long-term. This now Camden online to and while products to this it be efficiencies. loan We with results. the market give would application to particular, quarter, investors strong a market serve impacted continue at by for this we important online provides think this We be are to past that to bank our Debbie business. teams who and instant recent using discussion deleverage the and product to turbulent well us we during turn efficient, our in benefit like I our has commercial levels meets higher that and the which including I'd and customers' quality, maximizing business for National. focus in actions and up us terms loan you on services to which our complements in but mention backed part grow loan to our demand digital services of our recently $XX,XXX, some stocks, we’re same into all ability stocks, to suit dividend which an the our how efforts, activity remiss deposit and believe positioned consistent margin interest

Deborah Jordan

and good afternoon Greg you, Thank everyone.

second over increase solid income in each well to income loan balances Linked assets and a inflow results efforts, in return from seasonal quarter as in million net growth quarter on slight X% $X.X revenue to loss of in of net deposit growth interest which deposit interest X%, net average we operating drove points. of the due to revenue previous income quarter X was $XXX,XXX. loan primarily of Fee our of growth our a related We of income deposit net typically of $XXX,XXX result security growth average and a the million $XX.X expenses. was an lower gains the average margin and third $XXX,XXX. generation total quarter a and our of deposit due an fee experienced to an to basis where we are pleased growth of third of return up report or was increase provision income increase on We interest XXXX, XX% increase of quarter $X.X peak Comparing and X.XX% of of benefited year. our in financial of as a in million the as XX.XX%. tangible for XXXX, equity Net income

pleased average quarter growth deposit We account demand XX% to are third year. and particularly million see or the compared $XXX of of checking to last

million quarters, $XX grew portfolio growth representing a between loan Our X% annualized rate.

million $XX.X primarily quarters, one to to quarters The million C&I portfolio capabilities Southern growth continue loan due due million. and our the $XX.X We and loan of $XX.X while offerings mortgage real-estate between portfolio, pay-off Maine Northern large residential Massachusetts. declined experience linked expanded between commercial which in grew linked to increased portfolio in $XX million,

primarily combined third the Our asset point quality and X resolutions offs loan charge upgrades quarter net that loan drove loss non-performing basis with the points of the basis for of on result provision asset of levels. for average X lowered with was quarter loans strong

for operating Our $XX.X quarter. million increased third to X% expenses the quarters between

now ratio call results. the our help of questions. open Our quarter level. efficiency on for concludes for target to closer quarter XX% ratio efficiency year-to-date bring That up financial comments the the third our XX.X% We'll the

Operator

you. Thank

question [Operator will begin Breese ahead. And Piper today session from Matthew with first now Jaffray. Please will go the our come Instructions]. question-and-answer We

Matthew Breese

a couple. thought but I queue was to it don't a questions want many Deb, straightforward quarter. Greg, pretty maybe just I too

lines. is one deposits bearing point were deposit first to very quarter. the seasonality the of this in The strong really up some Non-interest

two, to idea an two cause? one, when backfilling it expect backfill of pressure think you As just with and you you are do ideas; how it, those what then, we give you much should could that what margin and as off; roll-off, us could roll

Deborah Jordan

and quarter have will core higher first in with fourth levels deposit we in third borrowings. quarter, we'll and supplement that Typically, the

it be quarter, at When improvement really So, deposits due that the brokered of margin the I overnight X look is the seasonality about outflow. points to will or of basis deposit funding.

first And next year, points so basis at when five, three to so... you look you quarter the expect of X about decline could --

Matthew Breese

anticipating. up also trend a just the to put anything mortgage mortgage, with it It bit. to going a than What I have line And like nice there? were then and up looks what a Did up was picked drivers do there higher salaries the the hair expenses, you've number? which is little

Deborah Jordan

the -- salary, typically, were We're our We and Expenses a did side. up lenders, base. the is lowest the hiring also commercial third not pick side. but on incentives little commission just the expense side quarter see mortgage on

to million So, were XX% above managing and a we'll quarter that's legal contributing rate run I quarterly consulting we fees really little staff adding basis a that think this higher are that efficiency some ratio. to so but still be on $XX fees also. And we're

Matthew Breese

growth you're the maintain I to idea think us hirings, your term outlook X%, give with that'll loan the is successes or not the an your just or and impact? like whether having expand extent hires? of what you longer Could

Greg Dufour

course even manager, of it's we our new find hire can Matt. wealth a that’s revenue and of producer, Again, originator, Massachusetts our great whether them. or mortgage Sure, strategically. a Hampshire we including reflects good and it that there, especially a Really lender, hiring If Maine. in look the solid we'll talent shortage at out markets,

those The other aspect aspect, after -- start as bottom period would positively so we of that would anticipate contributing with folks up ramp to they a line.

long as help. people of wave as in we that that having So will keep on come

to maintain the that balance just four growth ago. we Some of as are or we have, our than sheet factor and what years that three it growing just is bigger was really

hands and portfolios more levels, to monitor service ensure on customer as deck lending experience their that can on So grow. people do especially we maintain portfolio do the to We that. side the our need

churn people portfolios we always a us. So, need for new of building

you in try to we people. that? know, a in we people as security areas bring as more we hiring What technology So at it those efficiency look more basis. into related though that. requires of and leverage of how that’s to also growth And aspect when so about, digital ratio keep reflection and well. pricy other in as is we more the at we are staff more information do our that that as to of in that with we on people, And look looking that can course products up is support our get The technology

Matthew Breese

if buybacks under you the stock last think in solid one, recent it pointed be fundamental your or on. you about Would peers Greg, action some to way just stock perform the doesn’t to compared that of My eyes? to look grounds you the value the

Greg Dufour

you we We know not we in would. of been step, at, a to track because opportunities itself as buybacks. of us; record, And very we it's I for presenting we at look first good a not if to trend recently lot invest bit for, an though our of even it. we the need believe, we're the to in the us When price obviously, that if market? the what little history, then the the look value ways, have you it, we've into the do capital how goes business in and view and still it call And on That’s down directly; case there that's opportunity a that’s the when buy. is confident have,

and we the keep as that we'd So, always an as past. tool have a in as option

Matthew Breese

the on you the XXXX would more, put the of you first fall at next demand Is one back year, half in drag NIM, Deb, during be Maybe of demand were a the place basis fours. deposit year, to which where first basis X be or the out deposits, just a going as threes back assuming on that half? your to points that might beginning a good front commentary core just the not in least to or on deposits

Deborah Jordan

Yes.

Operator

Damon will [Operator Instructions] ahead. DelMonte next from KBW. go question with Please our And come

Damon DelMonte

growth, XXXX? quarter just talk as for and up the your a Can touch year about outlook the So, for pipeline little loan just to guys. end on go this of quarter decent into we -- you bit is the you shaping how

Greg Dufour

I guidance overall, the range do give would growth. loan single-digit say we overall is, in What mid

quarter probably I things seeing pipeline stick very bank all perspective, out coming pleased volume. CEOs, we're of as that. fourth different commercial final we would and from going looking with more so a we'll the quarter push matter you maybe in to hear our in from retail quickly, very bank what 'XX. and from then both the pretty into of competitive with say kick we're markets saying now, the lot we're into What especially And we will start What how as we're what's from And pipelines off new competitors first make happening quarter. for seeing, the good, probably side. activity And looking a especially perspective there, and loan we that fourth a on the track right CEOs, days, and that, to various

Damon DelMonte

Deb, we about think help upcoming I quarters this a in expect And us, you level? little the and could provision could quarter's what the after

Deborah Jordan

had I roughly The guidance that in a that look had we points forward. back think down basis XX I is were XXXX, able and saying in upgraded something of been improvement some lot sense, basis XX some this provision were When going the the makes I quarter. pay-offs loans we then at points to with

Damon DelMonte

apologize on the the if what lastly guess this purchase margin And I loans? you had from just But was said quarter. then accretion it. I

Deborah Jordan

third For $XXX,XXX quarter, quarter. the for quarter, was the it

about So basis points. was X it

Damon DelMonte

And then level, that forward? should same we going assume

Deborah Jordan

quite down bit. ramping That’s a

think take it and step priced I back rate next when year, XX% run will a for I look at so year. of And be XXXX the

Operator

we question-and-answer remarks. questions, any this over the for As session. to back would have to Greg like no concludes I conference turn Dufour our further closing

Greg Dufour

all obviously, all, very not by strong like lot we’re great revenue obviously, the we of here, from of a with I recognize only from that pleased also make happen that National. for to quarter. great but teams thank to us. support a great in of Have I the first interest want Well, that Camden side the is you have would just And this your staff for and day. side the a really

Operator

The you Thank attending conference presentation. now for today's has concluded.

now lines. You may disconnect your

Camden National (CAC) 30 Oct 182018 Q3 Earnings call transcript