CAC - Earnings call transcript Q4 2018 | Camden National Corporation

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Operator

Good day. And welcome to the Camden National Corporation Fourth Quarter 2018 Earnings Conference Call. My name is Sean, 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 actual 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

million Earlier Thank $X.XX earnings you. $XX.X Welcome per and announced diluted per $X.XX we today call. annual $XX fourth Camden record for of National earnings to or fourth of or the diluted quarter million earnings XXXX share. Corporation quarter share

several to over strategies, results these as learned the with reflect take years. they combination pleased extremely of the We’re past few we've

and December which our performance. asset our year total focus those assets non-performing X.XX% non-performing of has At important the reflected loans was in of One loans. XXXX, were X.XX% total quality, assets is of end on strategies XX, been

basis and credit which for contributed resulted quarter of including the in -related million we During one average $X.X the and charge-offs loans ratio two issues, net in recoveries only net the to year, point. X to resolved a fourth quarter, of

quality loans past due the only well metrics basis XXXX. position Our at points us including XX for asset having through days end year start XX of of total

adoption are disclose pleased Although, we're estimates with this to our at very point Celent, we've been on we the preparedness to related years. major three for change in as not focused over accounting

represents metrics was During for an recognized XXXX. from our shared XXXX online preparing risk of our banking increase gains quarterly have the group by model banking as past some I the had efforts XXXX, season. XXXX credit mobile our accounts, nearly bank recognizing Celent services adoption risk X% XXXX calls, major our around those initiative and by and In XX% management for in active and you digital customers. representing We with and XX,XXX in increase

our statement XX% from electronic adopting are and XX% total XXXX over electronic capability with increase XXXX. customers statements reaching Our XX,XXX, a from

of have over we and and XXXX the this first from to the mobile fourth For our logins XX% accounted last last 'XX February quarter usage saw an deposits we continue last of increase XXXX. 'XX. And Customers XX% payment X.X payment over and increase person-to-person a and finally, time, year. product we digital launched phone and method quarter third million from which over million tablet, online in in the deposits a XX% logins seen shift banking for increased with XXX,XXX XX year, in exceeded

up in we branch that recently based College the were to of new strategy complemented in touch activity critical by in Downtown, Colby of digital opened and tenant that’s to to basis, that loan area deposits is highlighted from in in This year-to-date is a our strong $X.X enabling that which billion our component high On deposits an to grew I'd of a X%, centers, facility transaction ending XXXX is of growth deposit facility average significant building evolve average deposits us fund the banking Our revitalization customer almost XXXX. additional experienced at the $X downtown. by our multiuse our fully first of Waterville continue billion growth highlight part like results. relationships. their from to We is X%. at One end year-to-date

we from earnings basis for deposits our gathering. up like setting our same cost review. XXXX management, the points, banking for in XX XX focus enter an X.XX% All Bank treasury reorganization in one This every of organization role redefining in included position to basis Debbie product the seen and over and undertaken done ended investments as center and in the training. of much group discussion of well to solid to internal America have retail will so our major average than network increase our our always variety time, XXXX. cost top of less in turn our areas of generation strategies, personnel deposit extensive our with XXXX Bank were a a At the year XXXX, systems. average XXXX. Maine ended I provide and have branches And is banking who we of held us the an points through as priorities deposit financial You sales report contributed and of clean 'XX virtually on now would has making the and We've deposit purchasing of borrowing our development, year acquiring

Deborah Jordan

and Thank good everyone. you, Greg afternoon

with fourth for on expansion in the of taxes. yield and interest X.XX% points. basis XXXX, increasing a with deposit the quarter by net increased loan year previous change a are value growth loan quarter basis the quarter loan net on fee with pleased average was quarter. an decline margin, income net on margin note return recoveries interest for end line X%. and Compared to income strong with and to in million fee between results categories quarter cost quarters XX.XX% of increased growth up the interest million income income previous quarters. strong Net declined return production or investment losses restructured net to a growth at $X.X with $XXX,XXX portfolio due Fair average of driven and in basis and X%, for a of quarter, of XX% due previous of tangible million or our offset income X expenses a $XXX.X million. funding to XX interest a on of points to in operating assets between margin the mix in our in increased quarter, million We banking compared real gains $XX was estate favorable increases In equity increase fueling of of strong interest net by quarter. of of $XXX,XXX We and average fourth cost residential average which in income to growth our $XXX,XXX to growing such million. resulting declined asset in Net X commercial investment the with accounting quarters in accretion funding only and expanded pipeline loan end. the increasing a X% X expansion fourth points quarters the $X.X volume Mortgage XX% basis Total card year the of mortgages interest primarily gains sold quarters, our relates mix with $XXX,XXX. we change experienced all deposits and interest Debit security mortgages had $XXX.X margin $XX.X the million. received total loan between incentives portfolio points income level of We of due The of of points in and basis low $XX.X loan remaining growing net income between X recorded expansion. between annual X% income funding

quarters I the occupancy to the am increase our quarter loan legal requiring was fourth that XX.X%. exception. our of strong reached Operating This fourth As $X.X with included ratio was efficiency that quarter bringing resolution the net happy quarter, amount in and of Greg cost even quarter marketing quarter for year a losses a ratio expenses upon credit to on report mentioned, X% for nominal throughout for year no $XX.X commercial strong fourth only million for with us asset between quality the provide million credit to matters. the collection to XX.X% an the growth. in cost, favorable the very and efficiency relationship, recoveries increased for

rate Our that That effective the fourth we now tax increased turn our Greg rate on comments XXXX. and for to XX% anticipate XXXX. the it to fourth outlook to in I for results. quarter will provide our back concludes quarter

Greg Dufour

Thanks Debbie.

our which see the economy asset expect the to us funding. continue to single-digit maintain to help in our quality. maintain growth mid region, we opportunity deposits our representing XXXX, range in to the stable We do with should of primary the loan source somewhat look remain we As

the were could our it macro from impact related or issues as trade as shutdowns, one-off the if well we alter such for potential about government that again matters and the However, issues, as concerned view. occurs

now for We will up questions. open the Operator? call

Operator

Thank you.

We the session will now [Operator begin Instructions]. question-and-answer

first go Matthew Please Piper comes Jaffray. from The ahead. Breese with question

Matthew Breese

question with So us I that helped much how understanding I what real you a that Visa repeatable? is Can little through happened XXXk. of hoping the by was And bit fee what that to of incentives the better increase gain guess income is was? walk

Deborah Jordan

we And of the for would We we getting we levels we there we quarter, fourth is And incentives activity renegotiated bonus pretty card the eligible be if in and that XXXX. activity. anticipate at on and toward so our driving certain initiatives the level. become a tiered one We've exceeded levels, interchange higher card end favorably a contract reach lot a accounts but checking did different our the running of expectation with broader estimated. than have of and debt is debit been we geared we and

next will eligible So fourth in trend will see continue year the well. we to for we I’m quarter incentives and that of hopeful as

Greg Dufour

run Smyth. at some hired to a individual could where marketing and investments leveraging and Renée intelligence I that. if we’re an leveraging great add, in experienced business really the look it’s by of of areas example our And We've

to debt As you is activation card the as trick usage. know, well as income

more approaches, So more data to cycle. we’re really customers to out depending are doing targeting the analytics on on they that reach a lot using where

great So it story tell. to was a

Matthew Breese

Greg, the saw then, most as think quarter, time you. I growth that And I of loan of the about remember last this out growth can't of kind I

close year market was sooner take loans was towards did a say, it share? a and it and team the sometimes better apart you more happen the at to expected? look If and job the there there than had Or end you just took where of that rush

Greg Dufour

little bit both. a Well, of

really close. see areas, them go including And in transactions a our that mortgage at getting but will obviously only you we you quarterly flat somewhat back and team third were sourcing and tremendous did all all. in to commercial for If second performance, The quarter. that not goes job the and

to So we pleased see really push. were that

carry like to are We but are. and a leaving pipeline they XX/XX customers things starting quarter, what that seeing still good in close the Now, I into say level quarter. crossed wasn’t won't year we’re is the the some with at trying to where same as first at fourth pleased be with with pipelines where forward our it is January. no we activity We're rush of activity. are that really will

Matthew Breese

And first it's get the of borrowed for then been the deposit for and a funds want maybe pretty then quarters least and other sense to then I the couple down. good turning broker the last we to look year to half that. margin, at If of tied up outlook growth, at

a all So is some there clearly gain tied strategic to things those there. it advantages move like Are together? seems

Deborah Jordan

I and Certainly, We accretion couple for recovery. happy, quarter, value in loan we on this are some a things was this really some quarter. higher fair it had interest think happened of

deposit was on loans points. book new loan yield And then on is. had really was up we at followed X%. that loan rate basis are the growth average the that low a what the cost our and higher But deposit So going X than on yield the on

so able bit. we with quite these lower to contributes swap that were if And cost a certainly deposits borrowings

at on in the some a the So really sensitive. -- outflow versus trend, swapping or think year, follow the be to take happens in of that if we If second asset year will usually the deposit next funding slightly broker our funding happy were of year first are I you seeing side we into still either certainly rate. is tied It's a quarter year, to next quarter. and I we and we're margin. deposits, we When look the pickup see dip this will higher we borrowings which for the

during points, So we the basis the see first up I X will be slightly in be for first year. X points to think certainly X up then quarter. the basis NIM. a it on year, around will rest It quarter decline picks could the We of the and

Matthew Breese

-- go really My is just one ahead Deb… last tied

Deborah Jordan

always the on cheapest was there. the deposits, to out funding looking are broker we cost I going say at

looking looking bank, And so money and we are doing we brokered CD. looking home market loan extending are even at at overnight, brokered we are

just So it's how of we cost optimize do funds. and really reduce the

Matthew Breese

just one you've is an was early The tied to buyback, last the authorization. announced before there your earnings

tackling that that wait Or to expect look the complete Just curious something I a view is follow-up. stock? and X% as how to then the stock you buyback? might of the should term? And near liquidity just know do see at. the approach you in that Is the we a you

factor as that play might so a And well?

Greg Dufour

down will trading be well. like lot Probably with that potential And like things do I'll all see we a seeing stocks, we do, pink we obviously, that that take the and comment us for opportunity. Matt, opportunistic. we let of Debbie I'll as

it in investors against demands. that's you're And liquidity hear we our the that balance important. spot we that from stock other on However, our

really say would it's surgical So will it I looking that for with opportunity. more be

Operator

question Our with DelMonte from ahead. go comes KBW. Damon Please next

Damon DelMonte

a about of expect drivers and where increase bit in expansion going expenses and see little the So XXXX what if we the question, could year? and first outlook you next for you talk

Deborah Jordan

be I a XX% fall efficiency, to look us first, lower down drivers the hefty for health but I When our health premium about to would having pretty was and saw for operating XXXX, necessarily insurance The do glad trending XX% XXXX. happy area, hitting that. a at see really below us because And don’t on running little efficiency the XXXX. we’re for that hot I increases see I compensation cost us for remain still benefit I we XX%. insurance do increase

being see a I driver. So that

continue technology. invest to in We

will growth. us the those trend data that line bigger $XX.X probably little year. the I see quarter, When higher next are were look to million. X% the than I So higher X% equipment our costs processing and two at fourth a operating for level running

Damon DelMonte

level X% XX%... the again, to X% higher than was what

Deborah Jordan

fourth The quarter level…

Damon DelMonte

in? you the do to your areas when of look XX the you feel opportunities then you grow And best lending at over months. footprint have opportunities next What your

Greg Dufour

England. Well, really it the economy reflects New of Northern

and will real commercial see will to Southern Maine, Hampshire New office opportunity more more area New geared We probably in Southern Southern Massachusetts leveraging our and that mortgage Hampshire more the be Maine commercial- in estate.

activity north of been matter not no Now regions. in and seeing around But some there, as in really state projects up or lenders our solid albeit are, big the probably markets the where other we've see we good bigger Portland, in have moving areas. we that the we

some competitors and We’re growth market than on board. the build but to looking more there share its better any and depending capturing being our happens seeing across that market we're activity importantly,

Damon DelMonte

then what’s a And portfolio elaborate and on bit securities could just that you was the how the little impact? big expected rebalancing,

Deborah Jordan

shorter we big want the re-balancing, life. pick a two basis was three had million $XX the a and maybe about We do at of wasn’t in up that get It I it took some yield say the of, to look opportunity to securities to points. a

Operator

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

Greg Dufour

factors success the Thank few at time a look your on you a couple and it year of this. just earnings for of and We conclude like really and ago. key seem as all attention years record

it. to like really one really internally with our a is, clichéd well the and outside shareholders million here thing. really that think the but say to we for just million, good done. are job want and are even maybe key its with persistence sounds a The in products get lot and pleased Camden some XX say our persistence that and have that range I things us it's really just but people not only team people, it I'm this while, the franchise excited able done, $XX And people that's little at we I to our share to throughout of down we're following a all in bit But with we $XX

So thank in about few your you to the look all talk with and chatting forward a quarter. months to attention for you first

Operator

attending concluded. lines. for Thank now presentation you and has conference your now you disconnect today's The may

Camden National (CAC) 29 Jan 192018 Q4 Earnings call transcript