CAC - Earnings call transcript Q4 2019 | Camden National Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Camden National Corporation Fourth Quarter 2019 Earnings Conference Call. My name is Sarah, 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 conduct 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

Good Sarah. fourth the Camden you, earnings call. Thank and welcome quarter afternoon to National

has Camden last their Wallace an Before two Corporation and like from cover James; I who firms not Raymond from call. now, our National Jake to who to overview, analysts the since Civiello We're KBW joined and from Camden initiated call. Damon Wally Janney welcome would I note, provide by Jake be on may DelMonte they Securities. traveling right since will is I And XXXX. joined covered

per diluted earnings share. fourth earnings for $X.XX XXXX Early $XX.X of per today, or or quarter of record and we $X.XX diluted million share XX.X million announced

average few non-GAAP pleased return strong moments return EPS like ratio led interest our to to into a under very equity will a Net and X%. information. which of on XXXX, finish efficiency are additional of but to of financial a our I'd performance, income some XXXX X% Debbie average on X.X%, up XX%. over deeper take our increased XX.XX% with was and provide assets We look highlight

average XXXX, positions average In a our period. the loans while very was XXXX ratio XX%, England Northern X% to which This well XXXX growth grew due our over over similar New throughout During against the end, XX% grew time resulted of in us loan elevated prepayments the X% deposit year. deposits loan in peers.

XXXX Our still mid-single loan guidance is digit growth. for

focus and but cautious see we that on do continue my deposit quarters particularly pricing higher aggressive we of ratios deposit from will prior we on base, liquidity from Our liquidity a as to and remain we I'll loan deposits than pricing enjoy who as strong the both less do. repeat impact caution have competitors deposits

share $X oversee commercial, services. teams we $X.X and crew, scene, of set assets. collaboratively brokerage of billion work assets client to the our milestone management XXXX. December like of that combined XX, When group an at our to billion achieving reached internationals nearly products treasury important Wealth management I'd retail, over assets full by brokerage present wealth, Management with under administered by and Behind our

the technology, More ability our as which us position our with combined such against decision importantly, to strongly underwriting, capabilities our much are, complements than our and capabilities, analytical makers research we investment with larger credit competitors at customers clients. positions table

quality. strategic great we've sight we've funds, not Although, on lost many progress asset seen of

a customers those loans. pay and teams, unable on assets working instances to culture, credit great in of non-performing total This of and lenders is XX a historical low assets loans December teams total their our the of strong collection through our special assets when or loan do equally as and behind with non-performing card X.XX% were a the loans. X.XX% underwriting of of important are starting our payments As result who XXXX, reached job

on readiness the our We as and expect their XXXX pleased we to a continue our required at up the currently are be our to adopt to wrap work point, with one accounting very in up banks share CECL the with auditors the standard of quarter first CECL new overall first to reviews, first this in and the working they end quarter. for We're impact quarter. the of fully adoption and

in leverage capital XXXX, the Our capital, capital ratio end a risk based our of at X as requirements regulatory XX.XX% of total ratio well was X.XX%. excess by shown and of tier

still $XX.X was shares in through current and over repurchase during of we which feel equity our $XX our pay dividends stock capital very position, the us million environment. X.XX%, the shareholders cash in of XXXX. able were positions common total our to million the well redeploy of Our to XXX,XXX capital we year With strong over

addition close increase Friday's yield we was on recent most based stock In price. of announced an current X.XX% in XX% dividend for quarterly or payout quarter, last increase of XX%, fourth of our in share was per the fourth $X.XX quarter and but this business the ratio

book XXXX. XX% Our end per the year at of share with value up the $XX.XX $XX.XX, ended from

quarter working smooth Debbie not find only will a with her replacement the a do retiring make recruiters XXXX. working on goal of with to Debbie's service, retirement. but for last I be want on-board to to XX, we prior a hard to Now, that announced just having April Debbie transition. thank We're person currently

with over to like I'd Debbie it to performance. to review our turn And that, financial

Deborah Jordan

good Greg, everyone. afternoon Thanks, and

X%, results the X% quarter, a quarter We X.XX%, a a and of $XXX,XXX of and of net with offset results X% previous the return quarter XX.XX%. X%. income are provision, When increased average between credit on or operating operating of on X% XXXX X% to fourth to $XX.X tangible to costs up pleased periods. assets partially revenue with income common income equity a in of million, comparing return growth and expenses operating fourth net strong with report increased compared lower increase of growth by Net revenue

on million $X.X categories income equity declined almost or of increased fees to fee in between $XXX,XXX securities seasonality. XX% banking basis, $XXX,XXX. Mortgage gain quarter with in linked most periods due fee unrealized growth a On plus

benefited we million of refinancing However, as gains quarter from activity. we the strong posted X.X for

XXst mortgage was at compared September to XXth. million at a Our $XXX December million pipeline $XX

income X% basis a decline Net loan to X.XX%. XXX,XXX interest basis margin points, basis was XX X funding costs points or result excluding margin of the decline in quarter XX% previous quarter, increase with when income. decreased The prepayments interest the point XX our or yield point expansion -- from grew third asset net in basis X a from while the the

quarter index able Overall, in fed in were to the costs X the decreased declined We management basis fourth lower due costs rates points costs total active reflecting basis customer changes for exception rate, to and while XX XX re-pricing funding basis mix. deposits funds the of to points pricing. with of borrowing funding deposit points and

to the also X% quarter, us experienced typical seasonal with borrowing. and which higher We our deposit allowed between third accounts checking fourth costs inflow growing reduce average

extremely expansion We to during margin are happy quarter. have the fourth

we compression margin National and lower maintain sensitive re-price However, XXXX. asset of the due competition. deposits to in outlook our may ability remains to limited Camden market be

of offset Total consumer X% is the from X%. XXth was balance portfolio by with loans partially in growth home the and residential September billion of outstanding X%. declined the declined equity and pre-portfolio This decreasing slightly $X.X

have the loan elevated growth mentioned, impacted Greg prepayments for year. As

expectations Operating the non-GAAP incentive in to quarter to the budget due million previous an compensation quarter, increased $XX.X with increase primarily year. the for reached ratio expenses compared of exceeding On for associated the XX.XX%. efficiency quarter for X%, fourth a

customer be on our in will Current our three into quarter reduction to redeployed fourth As employees concludes the locations centers will On banking comments transition. be basis banking will a disclosed of April million. annual expense earnings at of $X we be and this these in to operating XXXX. release, an the approximately closing centers integral in That translates surrounding results.

happy call you. open now questions. for to are Thank We the

Operator

Thank you.

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

Damon DelMonte

talk just we you little as put you I first around about through likely Can in your XXXX. far go as framework margins. expecting bit as are So, the range question Debbie, you've a indicated that prepared that? a much little how some pressure to maybe remarks, you of expect want

Deborah Jordan

hear the X of and a expectation. a the we We margin was to was did in that recorded Damon. on in fourth exceed margin with quarter But less. have was that did slight basis so Part great points about a our voice, income Glad quarter, had your prepayment that, fourth it increase a quarters. it even between

were about exception fairly down. the We aggressive of we fourth we the past, have, really our in base and third the pricing quarter deposit on readjusting as and proffered strong, some our of pricing talked of seasonality

of at with we So, the management very when the outflow deposits. funds, happy above first cost a of of look quarter we expect our X%

impacts for currently first checking So, into down is we'll year. shifting of will the quarter the for and take year. from the and of that second first this account each XXX, around funds, margin borrowed XXX year, mark next My so be half have

Damon DelMonte

Okay, effect. into been thank regard the then said that that goes believe And that’s helpful, have to closed, you. branches April three in with that you

about some quarter in and modeling Or just can think savings second we be how building would kind that? we of in So, cost those all that should the starting line? occupancy

Deborah Jordan

certainly in will would filling, in second can in I personnel, is that banking they employees there part quarter, locations. are of centers occupancy, be it in the now, build Yes, they latter position the those other seven

well. cost line, in reduction there And as so certainly personnel in rate will run the

Damon DelMonte

could one more in, for the I loan in broadly best are footprint now? right your kind squeeze on opportunities you if just and outlook, growth the seeing Great, of where your

Greg Dufour

take we've Hampshire, it's that lenders to to of done seeing in well. that also extremely New Sure, that Maine. is North hired Portland, just of than will some in but stronger Damon. tend obviously it's it part some still there economy Southern have in the be I In that We're oriented due

part doing that other is, we've of on is been as well. hiring The C&I it lenders focusing

little product a of a get coming bit do we So, there. through diversification

albeit, share, our in we've the lending With good everything of periods was then but good things. years some that XXXX; market, did had right It years real one wise; the had probably in that's and these up also there held kind market and of higher much Bangor have we one temper stronger well. That prepayments. doing a focused a time had Midcoast, Lewiston-Auburn of our was said, of

to the We in thing continue XXXX. same expect

share of all is out goal growth to Our us. to any that's our And there. than fair are get markets important more have to

Operator

from go comes question next Please William ahead. with Raymond Wallace Our James.

William Wallace

to Thanks line up the gives of there's Maybe questioning, production that in of last the -- confidence confidence my Greg, that on seeing afternoon, that second gives actually down there you're were loans accelerate? that I'm payoff digit you What pressures for for call. guide your Debbie, you will follow taking what anything Wally. year. the Good decline? in Or just I'm assuming prepays I'm curious, is Is outlook the in mid-single you confidence driving will that just that. gives that's your XXXX? half

Greg Dufour

Well, it's interest prepayments it's still -- because the because I steady on rate cycle. declining the necessarily won't say, pretty of they

expanding in think the and and underwriting we is in the as really just lending the we're I that capabilities. developing us It focus talent as have still well gives it's in we're as our seeing strong. activity in staff economy what that

we easy, prepaid is year So, will some, and what's can point. any tougher then being cover albeit that up be pick but and it not that

Deborah Jordan

Wally, I at historically were side because around both prepayment the residential is free rate TPR look the CTR, little fourth XX when settle down each. see hope side bit and and on we on XX we in the a quarter,

originations, certainly these some it side and larger lenders And too. that, was that And in the record CRE that is, XXXX the investing in side. transactions mortgage rate. impact we're CRE we came in We still so, I my of actually and on through hope strong new and originations the had think see had originations record mortgage we'll side

more on So, prepayment a of that relief continuing to the with side. little do

William Wallace

the interest if two the commentary in or half look, net you XXX, next XXX-ish margin, of And kind of then said Okay. to so. year, quarters the Debbie the first around you set

bit? Fed is second as You'll start in the that half the then to half the get then And bottom there's could can of you deposits back funding mix back. you and get on little chance first in expansion shift assuming pause see deposits that some and your a a year. decent a Would you the the think

Deborah Jordan

Yes, year. that one see But be environment, successful. one the half that typically, will and we we the -- competitive been yes, I see this the first referenced, the in the caution Greg would the is wildcard. of second lift would that normally, both We've

to Let's we manage hope, successful be continue the down. pricing to

William Wallace

these release remember And of I something do kind in analysis the find can't it's branch feel good think of that like the some the to Are see identified on, now with based work the network. Is there, opportunities network. being you done the identified you Or said opportunity for there in of the you've to you've around more or opportunities? network wording press three? I branch

Greg Dufour

that, Well, how it more I'd phrase we continuous on it is basis. a do

that these on some before, obviously, with dependent discussed looking albeit for be we've landed It Wally, So, three this staff is as with we upon leases the expiring. ones of and round, one. the could at this it, the

will of the redeployed franchise. be in them All

all take we those So, of in. factors

hand, So are, do it's they're on at list. we're tuning, majoring those I the to one always something want stress, looking more things that on fine

the want to. don't on other hand, But I

for several Because are shoe of sometimes that, this then communities And internally the communities customers drop. get as and waiting more to others that there's you staff well is as here. bubble for the kind on and

this We'll obvious, is is we'll if looking something at it and announce we'll what say, this keep So, what, us we look, do to just that time. becomes now. obvious and typically

Operator

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

Greg Dufour

you as next Damon, as quarter, the important a good on again have. only obviously National Great. and to and hear shareholders to his travel not But Well, interest Jake keeps but our the with in Wally all Camden having team, coverage their good that we do when for call, we'll and we arranges discussions from thank everybody questions. your toes his us, appreciate and It's it. well attending

the congratulate or asking work many than areas support I that, Whether great to tough putting overemphasize. they're of and the really effort the questions want front and are underwriters. team results National really forward for These just a Camden in I the Other finance pushing lines on can't or things hard people.

non-executive, did Company with management $XXX It's also and issued effort, them, employees bonus and and non-senior and gone the it's Company. success that we that, at very a all sharing on the we recognition team well here today true reflecting over announce to of the

you quarter. look With that, over the chatting and all you with thank forward to next

Operator

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

now may disconnect. You

Camden National (CAC) 28 Jan 202019 Q4 Earnings call transcript