CAC - Earnings call transcript Q3 2019 | Camden National Corporation

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Operator

Good day and welcome to the Camden National Corporation Third Quarter 2019 Earnings Conference Call. My name is Ili and I will be your operator for today's call. All participants will be in a listen-only mode during today’s presentation.

Following the presentation, we will be conducting a question-and-answer session. [Operator Instructions]

the presentation that statements, to may from projected this risks involve vary that those uncertainties and cause in note contains which forward-looking significant materially Please statements. forward-looking actual results

from earnings with forward-looking factors Form to in meaningful are measures reflect any concerning to events undertake XX-K update GAAP occur report does after are statements to or actual differ insights financial forward-looking to forward-looking that could Additional reconciled with made. the the in company those obligation any provide statements the are company's are not intended information non-GAAP today's such company's that your in in on circumstances and the filings SEC. press release, references results The Any and cause presentation to release. other materially press described annual statements XXXX

Dufour, that Officer Executive Chief presenters Chief note also Vice Today's is Chief Director; Jordan, Financial Operating President, President, Greg Officer and being recorded. this and Please Deborah are Executive event Officer. and

At to Dufour. this conference sir. the like turn would go ahead, Greg Please to over I time,

Greg Dufour

welcome. per and $X.XX the XXXX over which for EPS quarter, of third our X% quarter increase XXXX. third earnings. a afternoon of reached $XX.X Good today, million, we earnings reflected XXXX quarter over increase our diluted X% Earlier share Earnings released quarter a for the third

reached period were increase and quarter year-to-date of the average earnings totaled on a over period. last time return for million, income same assets return with XX.XX%. ratios X% share non-GAAP and time diluted increase XX.XX% equity $XX that strong efficiency on net year over per X.XX%, performance average the ratio same $X.XX, The basis, X% On of of

pricing seeing pricing caution loans our and well as Last regarding structure. experiencing competitive remain we're still deposits in strategies I in quarter as for cautious regarding loan the a we're expressed We what markets. various

our performance always focus been Our long-term remains on has company. the of as it

to strategic various for few our we've in years, small those the work the and on we've deposits, lending Over efforts that recognition discussed business reached and focus pleased including past we've several received our past share I'm over undertaken milestones performance. several areas. months; shareholder

on row of by focus its Finance year market FDIC programs. lending of XX, largest National and across Authority Finance We've which XXth of Maine, Maine been shows institution district Summary named XX.X% reports, recognition. Deposit the has Administration XXXX, Business by Also National of this the Authority our XXXX quarter, the financial in large is receiving a the the Director District June Camden business of Our Camden year by share award We've recognized bank. Small for recipient. Maine named that Administration any for the of SBA confirmed the Businesses both deposits the deposit XXXX the Small Maine the been Maine-based

class during out Finally, It's be institutions outstanding New of quarter, of our Sm-All bank the and in was one size to the XXX to thrifts from of O'Neill Sandler and of selected only is National XX performing Sandler list amongst Stars talented dedication England recognized. be to thrilled employees. our XXXX. the approach to traded a Camden banks named of publicly Camden success and in O'Neill headquartered to the highest nationwide. balanced measured National award our the testament We're

this going stock our year. paid strong million the XXX,XXX consistently common repurchase $XX returned months our in business we million first of of confidence shareholders our of performance forward, Based we shares of dividends and capital through our to over on nine $XX over through have and the of

to to for and significant be contributions period. Her recognize company. she intention announced retire April and service say us transition to over XXXX Last Debbie to Debbie, least. appreciated XX want I her the to Friday, years Before I with to discussion turn deeply in her the thank National a will are in the after for pleased years banking. Camden I'm XX of

to a firm for assist Debbie's weeks. the position the to the Reynolds or in be say of I Financial assessed appropriate context and Chief of recruiting next expect organization have the responsibilities in us should engaged Russell engage We Officer needs search we will the over several remaining the

over I'd like to now Debbie. to turn it

Deborah Jordan

everyone. afternoon Good

last with to year Greg income of As with pleased the same growth or $XX.X with million, results we million operating results loan over strong increased When income third quarter, quarter and expenses. the to X% provision deposit comparing of combined loan levels lower and due XX% revenue net of growth. $X.X due mentioned, our are to previous net up loss period X%

linked-quarter On increased between in to mortgage primarily a mortgage banking increase drove pickup $XXX,XXX million revenue which activity, nice due of a quarters. basis, an in $X.X fees

$XXX Our a which reached the mortgage pipeline activity. million, includes XX at September lift refinancing from

growth income previous periods, quarter, growth primarily checking customer of balance to of interest X% $XXX,XXX the an of between due the loan seasonality Net grew average with average X% our from base.

periods net decreasing declining asset our basis margin Our five declined points points seven our points. basis basis two and with interest between yield cost funding

lower on cost X.XX% deposits the higher market in average pricing. accounts little categories We repriced for periods, deposit. decline interest and between through checking whereas both deposit the all exception quarter and of third company's point of basis deposits quarter, reprice management anticipate a basis. fourth across on active a linked-quarter deposit as one money for of lower and rates Deposit trended was The certificates representing rates rates a indexed savings

down for million. Year-to-date led by up with residential and experienced quarter during being $XX.X commercial $XX.X loans X% loan by $XX.X mortgages. growth We for loans have real modest of while the the were estate grown quarter million residential commercial the quarter, million, mortgages

in the year. due quarters elevated real first for the X% estate loans speeds Commercial quarter real of side. normalized experienced on two down are this the estate year-to-date largely prepayments Prepayment last we have to commercial

believe deals, appetite estate commercial now has historically are the being strong disciplined what we served us is and our credit maintain on time selective to We to real certain continue well pricing our Although, transactions. more review we culture. for

net objective To continue XXXX, accomplish pricing. and be to interest loan interest deposit our net to will a X%. our maintain providing margin is disciplined we this, with of for expectations margin In

focus shareholder long-term being Our value, which to to drive growth growth be sustainable selective means continues on for more profitable opportunities.

Although, total a non-performing of asset in million, we experienced higher at or strong loan of very just September of the quarter, with third $XX.X charge-offs level remains X.XX% quality XX. assets assets

charged-off seven annual our period, as consistent the nine-month is year the same a of basis points with rate ago. level For

the insurance quarter other fees. third on credit FDIC should quarter, credits assessment banks, qualifying exceed assessment we third Like previous to Operating compared anticipate to quarter in X% expenses as required our community continue million of many the for the fund declined the its benefited $XX.X quarters ratio. from depository we future coming FDIC

week. to concludes I my last our on third been results. and for up phase great retirement to a very people with That continued work of comments I've the company's the announcement confident I'm great company for want fortunate follow success. personal life. of next a on excited quarter note, I'm the On my very

Thank for the We'll you. up call questions. now open

Operator

the DelMonte Our with We question-and-answer Damon now first from comes begin KBW. Instructions] question [Operator session. will

Damon DelMonte

today? good it Hey, going is How afternoon, guys.

Greg Dufour

you? are How Damon. Good,

Damon DelMonte

Good, thanks.

say talking I I know be the my announcement. congratulations congrats wish Before months ask few on first best. question, all but the and your next over to we'll off just you Debbie actually wanted

Deborah Jordan

Damon. Thanks,

Damon DelMonte

asset little about expectations question margin said, of kind talk I for had, know could repricing a of bit opportunities first on X% is go if you side just about the your side? -- deposit So bit the as you dynamics on and pressures talk goal you the a could little it keep into you above and the I your XXXX feeling but the to you're

Deborah Jordan

really, happy for next be allowed to whether in. here. year, were we be a jump I'll and before and I'd the Greg since I to forecast call, But Sure take joking can stab actually I'm won't

our know, So half interest back seasonality level -- year the a each half and net the usually we higher we have high typically on have in of margin a of the margin deposit cycle, the as year. of last so, you

could was hoping margin it. that we last did slight We quarters. And between in see quarter decline a maintain I

on down how cash that relates have and we we is deposit and XX, collateral that So part level September two the that Part of cash were of balance post as we just it derivatives received. we to of inflow the basis the to have points. of sheet

side, The a in on our cash And fourth exceptions. had of -- we quarter, gets quarter, Pricing assuming we're fourth things. on two the what side we point we're the October. maybe do deposit decline -- the basis Fed funds working with really pretty on aggressively pricing one to in can the again goal depending drops is

loan side. The

quarter side. doubled compared on The third quarter, what we in down second see the and the third slowed residential the quarter. prepayments the first is really CPI mortgage Although, in to elevation did

side, come So at have we're to rates. reinvested on investment continue going the to flow us, it's whether our loan at getting the lower is challenge cash or

do funding We some offset side capabilities. on the have

We those pricing bringing growing and And manage have importantly, shortly rates deposits managing down that deposit end and continue certificates will further. more broker to repricing CD and then the be on we checking short then exception of then accounts.

attracting success. That a year margin. accounts. extent We've a have though. going And treasury very continue the have It's that successful the us challenge in to should to help strong we been business management be can We function. to with also next

Damon DelMonte

Yes. it. Got

it? of regard having color. to with base expenses, should And assessment think credits component FDIC quarter That's next potentially again quarter with potential that you Okay. alluded we and of into overall helpful. probably I the the the next to about XXXX. How appreciate carrying expense then

Deborah Jordan

for where I million we'll $XXX,XXX still had is quarter. year at the provided land the for we'll XXXX -- $XX guidance the be that I probably for entire fourth minus we'd thought I million. $XX think

Damon DelMonte

guys modeling kind in per correct? here, have a from that FDIC what standpoint then, $XXX,XXX costs. And quarter Is $XXX,XXX, you around Okay. of

Deborah Jordan

in. Well, so $XXX,XXX credit we a I build that received of would and

Damon DelMonte

the $XXX,XXX, okay. Just

Deborah Jordan

Yes.

Damon DelMonte

Got it.

on a growth outlook. question then, And Okay. for the Greg, loan

growth in with You reiterated your quarter and of of think the pricing go the through of outlook cautious competition last into we some terms the loan about in the XXXX? How marketplace. overall do we as kind

Greg Dufour

of Yes. mid-single-digit a of a And the of that, trade-off. caution but I probably risk-reward I typically that, it's with purely say, mid-single-digit lower would say in that that From end range on growth. we're probably the loan range.

are some seeing pricing. aggressive really We

capacity. in But cautious seeing to the doing and books be right that how we asset high-quality which for especially CRE. at fixed we make some credits. do got in though will want on We're have much structuring on out we're we are we sure put some point extension amortizations our thing, rate loan stretching do to the even we And actually

Over at amortizations. from -- looking past eight the probably XX it's been to XX-year we'd quarters gone

on There're it's quality in there flexibility banking credit causing us and that's just to -- And and take risk. be above XX. we once Now But and higher that we some we're risk focus customers seeing tackling And to even we the that that to compensated pause. got have for XX. more block they're going then XX be rumors we pricing. want more the

Damon DelMonte

Got Got it. it.

I'll for a you. anybody Okay. if else for step and second see now. has Thank a question off

Operator

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

Greg Dufour

your I Great. want National, to on for investors well. as Camden interest in support Well, your everybody again, thank are there some as the there call

you then Debbie partner, but to XXXX, really she'll not Thank We're to everybody a be all much. so to a I keep that me, thank until we'll company. and to adviser that Have transition real here now very and great a we posted reinforce, progresses. Just the will and been you much. trusted April smooth throughout between fortunate very day. want all have She's just as

Operator

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

now disconnect. may You

Camden National (CAC) 29 Oct 192019 Q3 Earnings call transcript