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| 8-K - CAMDEN NATIONAL CORPORATION 8-K - CAMDEN NATIONAL CORP | a6584639.htm |
Exhibit 99.1
Camden National Corporation Reports 9% Increase in 2010 Earnings
CAMDEN, Maine--(BUSINESS WIRE)--January 25, 2011--Camden National Corporation (NASDAQ: CAC; “Camden National”) reported an increase in 2010 net income of $2.0 million, or 9%, to $24.8 million, or $3.23 per diluted share compared to 2009 net income of $22.8 million, or $2.97 per diluted share. Return on average assets increased to 1.09% for 2010 compared to 1.00% for 2009 and return on average equity amounted to 12.42% and 12.81%, respectively, for the years ended December 31, 2010 and 2009.
Net income of $6.4 million for the three months ended December 31, 2010 compared to $5.2 million in the fourth quarter of 2009 representing an increase of $1.2 million or 23%. Earnings per diluted share for the fourth quarter of 2010 and 2009 were $0.84 and $0.68, respectively. For the fourth quarter of 2010, return on average assets was 1.10% and return on average equity was 12.40%.
“Camden National reported strong earnings in 2010 despite a sluggish economy,” said Gregory A. Dufour, president and chief executive officer. “These results reflect our proactive approach to managing asset quality which starts with strong underwriting standards. This approach has served us extremely well during the recession and set a strong foundation for 2011. Based on peer data from the third quarter of 2010, we believe Camden National’s performance will be in the top levels when compared to our peers,” indicated Dufour. “Our 2010 accomplishments include strong growth in low-cost deposits, building our capital levels through operating earnings, and implementation of several strategically important technologies.”
Asset Quality and the Provision for Credit Losses
“Looking out to 2011, we are pleased to see some signs of stabilization in the housing market but remain concerned about the high unemployment levels. We anticipate continued stress in the consumer portion of our loan portfolio which should be offset by strength in our commercial portfolio,” said Dufour.
Camden National’s level of non-performing assets decreased to $24.8 million, or 1.08% of total assets, at December 31, 2010 compared to $25.1 million, or 1.13% of total assets, at December 31, 2009. Annual net loan charge-offs declined to $4.3 million for 2010, compared to $5.6 million for 2009, resulting in an improvement in the annual net charge-offs to average loans to 0.28% for 2010 compared to 0.37% for the same period a year ago. Camden National’s asset quality ratios continue to compare favorably to its national peer group based on the most recent Bank Holding Company Performance Report dated September 30, 2010 provided by the Federal Reserve System. In this report, the national peer group has an average non-performing assets to total assets ratio of 3.47% and an annualized net charge-offs ratio of 1.17%.
As a result of improved asset quality ratios and a decline in net loan charge-offs, the provision for credit losses was $6.3 million for the twelve months ended December 31, 2010 compared to $8.2 million for the same period a year ago. Camden National’s allowance for credit losses increased to 1.46% of total loans at December 31, 2010 compared to 1.33% at December 31, 2009.
The provision for credit losses for the fourth quarter of 2010 and 2009 was $1.1 million and $1.7 million, respectively, and net loan charge-offs for the comparable periods were $1.1 million and $837,000, respectively.
Balance Sheet Highlights
Total consolidated assets at December 31, 2010 were $2.3 billion, an increase of 3% compared to December 31, 2009. The $70.6 million increase in total assets is primarily due to growth in the investment portfolio of $72.1 million offset by a decline in the loan portfolio of $2.0 million. The loan portfolio experienced growth in commercial real estate loans of 7% and consumer loans of 4%. These increases were offset by declines in commercial loans of 6% and residential real estate loans of 5%. Mortgage refinancing activity increased during the last four months of the year due to historically low mortgage rates; however, Camden National sold the current production of thirty-year fixed-rate mortgages which fell under specified rates. This resulted in the sale of $20.1 million of loans on the secondary market during 2010, and $5.5 million of loans held for sale at December 31, 2010.
Deposits at December 31, 2010 were $1.5 billion, an increase of $20.0 million, or 1%, from December 31, 2009. The deposit growth is primarily derived from low cost deposits with an increase in demand deposit accounts of 19% and an increase in interest checking, savings and money market accounts of 7% from a year ago. Brokered funds increased $18.9 million from December 31, 2009 as a result of more favorable pricing compared to other funding alternatives, including retail certificates of deposit which declined $81.1 million from a year ago. During the fourth quarter of 2010, prior to the expiration of the voluntary Transaction Account Guarantee Program, there was movement of balances from interest checking to retail repurchase agreements (borrowings) for relationships requiring collateralization of funds. This shifting contributed to an increase in retail repurchase agreements of $43.3 million compared to a year ago.
Net Interest Income
Camden National’s net interest income for the year ended December 31, 2010 totaled $74.3 million, an increase of $1.3 million, or 2%, compared to $73.0 million for 2009. The increase in net interest income was achieved through an improvement in Camden National’s tax equivalent net interest margin of 7 basis points to 3.58% for 2010.
Camden National’s yield on earning assets averaged 5.02% in 2010 compared to 5.42% for the same period a year ago. Camden National’s earning asset yield has gradually declined over the past year primarily as the result of reinvestment of cash flows at lower rates, particularly in the investment portfolio.
The cost of funds averaged 1.64% in 2010 compared to 2.13% for the same period a year ago. The cost of funds declined over the past year due to lower interest rates on deposit accounts, maturing retail certificates of deposit and wholesale funding combined with a favorable change in Camden National’s deposit mix as a result of growth in lower cost transaction accounts (demand deposit and interest checking accounts).
Net interest income for the fourth quarter of 2010 increased to $18.8 million compared to $17.9 million for the fourth quarter of 2009. The tax equivalent net interest margin of 3.54% for the fourth quarter of 2010 represents an increase from 3.50% for the same period in 2009.
Non-Interest Income and Non-Interest Expense
Non-interest income increased $1.4 million, or 7%, to $20.9 million for the year ended December 31, 2010 compared to the same period in 2009. The increase was primarily due to proceeds from a legal settlement of $2.0 million, an increase in debit card interchange income of $491,000, and an increase in fiduciary services income of $334,000. These increases were partially offset by a decline in mortgage banking income of $553,000 and a reduction in overdraft fees and deposit service charges of $350,000.
Non-interest income of $5.1 million in the fourth quarter of 2010 increased $360,000, or 8%, compared to $4.7 million in the fourth quarter of 2009. The increase resulted primarily from an increase of $336,000 in mortgage banking income related to sales of residential mortgage loans during the fourth quarter of 2010.
Non-interest expense increased $1.9 million, or 4%, to $53.0 million for the year ended December 31, 2010 compared to the same period in 2009. The increase is due to increases in salaries and employee benefits of $1.7 million, and higher OREO and collection costs of $1.2 million partially offset by a decline in FDIC assessment costs of $1.2 million. The 7% increase in salaries and employee benefit costs reflects higher benefit costs of $799,000 associated with increased health insurance costs and retirement expenses, a reduction in deferred salary costs of $522,000 related to high mortgage production volume in 2009, and an increase in salary and incentives of $504,000, or 2% due to merit increases and new positions.
Non-interest expense of $13.7 million for the fourth quarter of 2010 increased $561,000, or 4%, compared to $13.2 million in the fourth quarter of 2009. The increase was primarily the result of increases in salaries and employee benefits of $472,000, or 7%.
Camden National’s efficiency ratio was 54.60% for the year ended December 31, 2010 compared to 54.27% for 2009. Camden National’s efficiency ratio for the fourth quarter of 2010 and 2009 was 56.72% and 57.53%, respectively.
Dividends and Capital
The Board of Directors approved a dividend of $0.25 per share, payable on January 31, 2011 to shareholders of record on January 14, 2011. This resulted in an annualized dividend yield of 2.76% based on the December 31, 2010 closing price of Camden National’s common stock of $36.23 per share as reported by NASDAQ.
The consolidated total risk-based capital ratio increased to 14.96% at December 31, 2010 compared to 13.49% at December 31, 2009 as capital levels increased from retained earnings. Camden National and 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.”
About Camden National Corporation
Camden National Corporation, ranked 12th in USBanker's 2010 list of top-performing mid-tier banks, is the holding company employing more than 400 Maine residents for two financial services companies: Camden National Bank, along with its division Union Trust, 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 serving coastal, western, central, and eastern Maine, plus online banking at CamdenNational.com and UnionTrust.com. Acadia Trust offers investment management and fiduciary services with offices in Portland, Bangor, and Ellsworth. Located at Camden National Bank, 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. Forward-looking statements can be identified by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” 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 the following: general, national, regional or local economic conditions which are less favorable than anticipated; changes in loan default and charge-off rates; declines in the equity and financial markets; reductions in deposit levels; declines in mortgage loan refinancing, equity loan and line of credit activity; changes in the domestic interest rate environment and inflation; changes in the carrying value of investment securities and other assets; 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; misalignment of Camden National’s interest-bearing assets and liabilities; increases in loan repayment rates affecting interest income and the value of mortgage servicing rights; 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, that could lead to changes in the competitive balance among financial institutions, restrictions on bank activities, 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 our financial interests in certain loan situations. Other factors could also cause these differences. 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 to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
| Statement of Condition Data | |||||||||||
| December 31, | December 31, | ||||||||||
| (In thousands, except number of shares) | 2010 | 2009 | |||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 31,009 | $ | 29,772 | |||||||
| Securities: | |||||||||||
| Securities available for sale, at fair value | 553,579 | 479,708 | |||||||||
| Securities held to maturity, at amortized cost | 36,102 | 37,914 | |||||||||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 21,962 | 21,965 | |||||||||
| Total securities | 611,643 | 539,587 | |||||||||
| Trading account assets | 2,304 | 1,725 | |||||||||
| Loans held for sale | 5,528 | - | |||||||||
| Loans: | |||||||||||
| Residential real estate | 596,308 | 627,655 | |||||||||
| Commercial real estate | 464,037 | 434,783 | |||||||||
| Commercial | 180,592 | 191,214 | |||||||||
| Consumer | 283,815 | 273,106 | |||||||||
| Total loans | 1,524,752 | 1,526,758 | |||||||||
| Less allowance for loan losses | (22,293 | ) | (20,246 | ) | |||||||
| Net loans | 1,502,459 | 1,506,512 | |||||||||
| Goodwill and other intangible assets | 45,822 | 46,398 | |||||||||
| Bank-owned life insurance | 43,155 | 41,677 | |||||||||
| Premises and equipment, net | 25,044 | 26,054 | |||||||||
| Deferred tax asset | 12,281 | 10,317 | |||||||||
| Prepaid FDIC assessment | 6,155 | 8,197 | |||||||||
| Interest receivable | 6,875 | 7,236 | |||||||||
| Other real estate owned | 2,387 | 5,479 | |||||||||
| Other assets | 11,345 | 12,429 | |||||||||
| Total assets | $ | 2,306,007 | $ | 2,235,383 | |||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Demand | $ | 229,547 | $ | 193,549 | |||||||
| Interest checking, savings and money market | 721,905 | 675,681 | |||||||||
| Retail certificates of deposit | 464,662 | 545,789 | |||||||||
| Brokered deposits | 99,697 | 80,788 | |||||||||
| Total deposits | 1,515,811 | 1,495,807 | |||||||||
| Federal Home Loan Bank advances | 214,236 | 209,710 | |||||||||
| Other borrowed funds | 302,069 | 274,125 | |||||||||
| Junior subordinated debentures | 43,614 | 43,512 | |||||||||
| Accrued interest and other liabilities | 24,282 | 21,668 | |||||||||
| Total liabilities | 2,100,012 | 2,044,822 | |||||||||
| Shareholders' Equity | |||||||||||
|
Common stock, no par value; authorized 20,000,000 shares, issued
and |
50,936 | 50,062 | |||||||||
| Retained earnings | 150,730 | 133,634 | |||||||||
| Accumulated other comprehensive income | |||||||||||
| Net unrealized gains on securities available for sale, net of tax | 6,229 | 7,083 | |||||||||
| Net unrealized (losses) gains on derivative instruments, at fair value, net of tax | (709 | ) | 739 | ||||||||
| Net unrecognized losses on post-retirement plans, net of tax | (1,191 | ) | (957 | ) | |||||||
| Total accumulated other comprehensive income | 4,329 | 6,865 | |||||||||
| Total shareholders' equity | 205,995 | 190,561 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,306,007 | $ | 2,235,383 | |||||||
| Statement of Income Data | |||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| (In thousands, except number of shares and per share data) | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest and fees on loans | $ | 20,210 | $ | 20,889 | $ | 81,935 | $ | 84,901 | |||||||||||||||
| Interest on securities and other | 5,521 | 6,226 | 22,572 | 28,430 | |||||||||||||||||||
| Total interest income | 25,731 | 27,115 | 104,507 | 113,331 | |||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Interest on deposits | 3,331 | 4,834 | 15,143 | 22,577 | |||||||||||||||||||
| Interest on borrowings | 3,609 | 4,340 | 15,074 | 17,743 | |||||||||||||||||||
| Total interest expense | 6,940 | 9,174 | 30,217 | 40,320 | |||||||||||||||||||
| Net interest income | 18,791 | 17,941 | 74,290 | 73,011 | |||||||||||||||||||
| Provision for credit losses | 1,062 | 1,700 | 6,299 | 8,213 | |||||||||||||||||||
| Net interest income after provision for credit losses | 17,729 | 16,241 | 67,991 | 64,798 | |||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Service charges on deposit accounts | 1,195 | 1,318 | 4,911 | 5,261 | |||||||||||||||||||
| Other service charges and fees | 838 | 706 | 3,345 | 2,908 | |||||||||||||||||||
| Income from fiduciary services | 1,539 | 1,570 | 6,236 | 5,902 | |||||||||||||||||||
| Mortgage banking income | 429 | 93 | 761 | 1,314 | |||||||||||||||||||
| Bank-owned life insurance | 359 | 367 | 1,478 | 1,476 | |||||||||||||||||||
| Net (loss) gain on sale of securities | - | 51 | (188 | ) | 52 | ||||||||||||||||||
| Other income | 703 | 594 | 4,533 | 2,529 | |||||||||||||||||||
|
Non-interest income before other-than-temporary impairment of securities |
5,063 | 4,699 | 21,076 | 19,442 | |||||||||||||||||||
| Other-than-temporary impairment of securities | (4 | ) | - | (221 | ) | - | |||||||||||||||||
| Total non-interest income | 5,059 | 4,699 | 20,855 | 19,442 | |||||||||||||||||||
| Non-interest expenses | |||||||||||||||||||||||
| Salaries and employee benefits | 6,865 | 6,393 | 26,337 | 24,588 | |||||||||||||||||||
| Net occupancy | 1,003 | 954 | 3,833 | 3,908 | |||||||||||||||||||
| Furniture, equipment and data processing | 1,251 | 1,072 | 4,647 | 4,150 | |||||||||||||||||||
| Consulting and professional fees | 670 | 693 | 2,596 | 2,455 | |||||||||||||||||||
| OREO and collection costs | 721 | 391 | 3,489 | 2,332 | |||||||||||||||||||
| Regulatory assessments | 719 | 731 | 2,868 | 4,035 | |||||||||||||||||||
| Other expenses | 2,500 | 2,934 | 9,197 | 9,556 | |||||||||||||||||||
| Total non-interest expenses | 13,729 | 13,168 | 52,967 | 51,024 | |||||||||||||||||||
| Income before income taxes | 9,059 | 7,772 | 35,879 | 33,216 | |||||||||||||||||||
| Income taxes | 2,633 | 2,545 | 11,113 | 10,443 | |||||||||||||||||||
| Net income | $ | 6,426 | $ | 5,227 | $ | 24,766 | $ | 22,773 | |||||||||||||||
| Selected Financial and Per Share Data: | |||||||||||||||||||||||
| Return on average equity | 12.40 | % | 10.99 | % | 12.42 | % | 12.81 | % | |||||||||||||||
| Return on average tangible equity | 15.96 | % | 14.58 | % | 16.15 | % | 17.38 | % | |||||||||||||||
| Return on average assets | 1.10 | % | 0.92 | % | 1.09 | % | 1.00 | % | |||||||||||||||
| Efficiency ratio (1) | 56.72 | % | 57.53 | % | 54.60 | % | 54.27 | % | |||||||||||||||
| Basic earnings per share | $ | 0.84 | $ | 0.68 | $ | 3.23 | $ | 2.98 | |||||||||||||||
| Diluted earnings per share | $ | 0.84 | $ | 0.68 | $ | 3.23 | $ | 2.97 | |||||||||||||||
| Cash dividends declared per share | $ | 0.25 | $ | 0.25 | $ | 1.00 | $ | 1.00 | |||||||||||||||
| Weighted average number of common shares outstanding | 7,657,346 | 7,644,831 | 7,655,668 | 7,642,492 | |||||||||||||||||||
| Diluted weighted average number of common shares outstanding | 7,674,056 | 7,674,167 | 7,663,498 | 7,665,357 | |||||||||||||||||||
|
(1) Computed by dividing non-interest expense by the sum of net interest income (tax equivalent) and non-interest income (excluding securities gains/losses). |
|||||||||||||||||||||||
| Asset Quality Data | |||||||||||||||||||||||||||||
|
At or for Twelve |
At or for Nine |
At or for Six |
At or for Three |
At or for Twelve |
|||||||||||||||||||||||||
| (In thousands) | December 31, 2010 | September 30, 2010 | June 30, 2010 | March 31, 2010 | December 31, 2009 | ||||||||||||||||||||||||
| Non-accrual loans: | |||||||||||||||||||||||||||||
| Residential real estate | $ | 7,225 | $ | 5,793 | $ | 6,580 | $ | 6,234 | $ | 6,161 | |||||||||||||||||||
| Commercial real estate | 6,072 | 6,725 | 7,130 | 6,223 | 6,476 | ||||||||||||||||||||||||
| Commercial | 4,421 | 4,334 | 5,379 | 4,320 | 4,145 | ||||||||||||||||||||||||
| Consumer | 1,721 | 1,155 | 1,249 | 1,227 | 1,158 | ||||||||||||||||||||||||
| Total non-accrual loans | 19,439 | 18,007 | 20,338 | 18,004 | 17,940 | ||||||||||||||||||||||||
| Loans 90 days past due and accruing | 710 | 1,034 | 545 | 211 | 1,135 | ||||||||||||||||||||||||
| Renegotiated loans not included above | 2,295 | 2,055 | 1,096 | 677 | 581 | ||||||||||||||||||||||||
| Total non-performing loans | 22,444 | 21,096 | 21,979 | 18,892 | 19,656 | ||||||||||||||||||||||||
| Other real estate owned: | |||||||||||||||||||||||||||||
| Residential real estate | 284 | 412 | 560 | 570 | 1,851 | ||||||||||||||||||||||||
| Commercial real estate | 2,103 | 2,218 | 3,407 | 4,631 | 3,628 | ||||||||||||||||||||||||
| Total other real estate owned | 2,387 | 2,630 | 3,967 | 5,201 | 5,479 | ||||||||||||||||||||||||
| Total non-performing assets | $ | 24,831 | $ | 23,726 | $ | 25,946 | $ | 24,093 | $ | 25,135 | |||||||||||||||||||
| Loans 30-89 days past due: | |||||||||||||||||||||||||||||
| Residential real estate | $ | 2,493 | $ | 3,186 | $ | 1,338 | $ | 74 | $ | 1,847 | |||||||||||||||||||
| Commercial real estate | 1,438 | 1,234 | 749 | 1,862 | 2,196 | ||||||||||||||||||||||||
| Commercial | 928 | 2,772 | 1,367 | 3,530 | 639 | ||||||||||||||||||||||||
| Consumer | 927 | 436 | 537 | 716 | 563 | ||||||||||||||||||||||||
| Total loans 30-89 days past due | $ | 5,786 | $ | 7,628 | $ | 3,991 | $ | 6,182 | $ | 5,245 | |||||||||||||||||||
| Allowance for loan losses at the beginning of the period | $ | 20,246 | $ | 20,246 | $ | 20,246 | $ | 20,246 | $ | 17,691 | |||||||||||||||||||
| Provision for loan losses | 6,325 | 5,242 | 3,950 | 2,000 | 8,162 | ||||||||||||||||||||||||
| Charge-offs: | |||||||||||||||||||||||||||||
| Residential real estate | 1,262 | 1,103 | 579 | 268 | 792 | ||||||||||||||||||||||||
| Commercial real estate | 1,382 | 844 | 752 | 314 | 1,844 | ||||||||||||||||||||||||
| Commercial | 1,502 | 1,098 | 684 | 377 | 2,640 | ||||||||||||||||||||||||
| Consumer | 1,401 | 760 | 395 | 294 | 1,180 | ||||||||||||||||||||||||
| Total charge-offs | 5,547 | 3,805 | 2,410 | 1,253 | 6,456 | ||||||||||||||||||||||||
| Total recoveries | 1,269 | 653 | 480 | 386 | 849 | ||||||||||||||||||||||||
| Net charge-offs | 4,278 | 3,152 | 1,930 | 867 | 5,607 | ||||||||||||||||||||||||
| Allowance for loan losses at the end of the period | $ | 22,293 | $ | 22,336 | $ | 22,266 | $ | 21,379 | $ | 20,246 | |||||||||||||||||||
| Components of allowance for credit losses: | |||||||||||||||||||||||||||||
| Allowance for loan losses | $ | 22,293 | $ | 22,336 | $ | 22,266 | $ | 21,379 | $ | 20,246 | |||||||||||||||||||
| Liability for unfunded credit commitments | 25 | 47 | 47 | 47 | 51 | ||||||||||||||||||||||||
| Balance of allowance for credit losses | $ | 22,318 | $ | 22,383 | $ | 22,313 | $ | 21,426 | $ | 20,297 | |||||||||||||||||||
| Ratios: | |||||||||||||||||||||||||||||
| Non-performing loans to total loans | 1.47 | % | 1.37 | % | 1.43 | % | 1.23 | % | 1.29 | % | |||||||||||||||||||
| Non-performing assets to total assets | 1.08 | % | 1.03 | % | 1.13 | % | 1.08 | % | 1.13 | % | |||||||||||||||||||
| Allowance for credit losses to total loans | 1.46 | % | 1.45 | % | 1.45 | % | 1.40 | % | 1.33 | % | |||||||||||||||||||
| Net charge-offs to average loans (annualized) | |||||||||||||||||||||||||||||
| Quarter-to-date | 0.29 | % | 0.32 | % | 0.28 | % | 0.23 | % | 0.22 | % | |||||||||||||||||||
| Year-to-date | 0.28 | % | 0.27 | % | 0.25 | % | 0.23 | % | 0.37 | % | |||||||||||||||||||
| Allowance for credit losses to non-performing loans | 99.44 | % | 106.10 | % | 101.52 | % | 113.41 | % | 103.26 | % | |||||||||||||||||||
| Loans 30-89 days past due to total loans | 0.38 | % | 0.50 | % | 0.26 | % | 0.40 | % | 0.34 | % | |||||||||||||||||||
| Average Balance, Interest and Yield/Rate Analysis | |||||||||||||||||||||||||||||
| At or for the Twelve Months Ended | At or for the Twelve Months Ended | ||||||||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | ||||||||||||||||||||||||||||
| (In thousands) | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||
| Securities - taxable | $ | 511,800 | $ | 20,425 | 3.99 | % | $ | 539,959 | $ | 25,979 | 4.81 | % | |||||||||||||||||
| Securities - nontaxable (1) | 54,392 | 3,247 | 5.97 | % | 63,472 | 3,707 | 5.84 | % | |||||||||||||||||||||
| Trading account assets | 1,973 | 36 | 1.82 | % | 1,479 | 24 | 1.62 | % | |||||||||||||||||||||
| Loans: (1) (2) | |||||||||||||||||||||||||||||
| Residential real estate | 620,357 | 33,165 | 5.35 | % | 622,535 | 35,726 | 5.74 | % | |||||||||||||||||||||
| Commercial real estate | 444,153 | 25,486 | 5.66 | % | 415,369 | 25,168 | 5.98 | % | |||||||||||||||||||||
| Commercial | 173,073 | 9,464 | 5.39 | % | 181,981 | 10,170 | 5.51 | % | |||||||||||||||||||||
| Municipal | 16,417 | 901 | 5.49 | % | 21,533 | 1,079 | 5.01 | % | |||||||||||||||||||||
| Consumer | 280,069 | 13,235 | 4.73 | % | 266,786 | 13,106 | 4.91 | % | |||||||||||||||||||||
| Total loans | 1,534,069 | 82,251 | 5.33 | % | 1,508,204 | 85,249 | 5.62 | % | |||||||||||||||||||||
| Total interest-earning assets | 2,102,234 | 105,959 | 5.02 | % | 2,113,114 | 114,959 | 5.42 | % | |||||||||||||||||||||
| Cash and due from banks | 33,204 | 28,985 | |||||||||||||||||||||||||||
| Other assets | 161,067 | 155,921 | |||||||||||||||||||||||||||
| Less allowance for loan losses | (22,021 | ) | (18,742 | ) | |||||||||||||||||||||||||
| Total assets | $ | 2,274,484 | $ | 2,279,278 | |||||||||||||||||||||||||
| Liabilities & Shareholders' Equity | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Interest checking accounts | $ | 252,692 | 861 | 0.34 | % | $ | 218,715 | 1,042 | 0.48 | % | |||||||||||||||||||
| Savings accounts | 156,397 | 467 | 0.30 | % | 140,246 | 499 | 0.36 | % | |||||||||||||||||||||
| Money market accounts | 292,510 | 2,408 | 0.82 | % | 300,455 | 3,158 | 1.05 | % | |||||||||||||||||||||
| Certificates of deposit | 515,882 | 9,647 | 1.87 | % | 578,231 | 15,997 | 2.77 | % | |||||||||||||||||||||
| Total retail deposits | 1,217,481 | 13,383 | 1.10 | % | 1,237,647 | 20,696 | 1.67 | % | |||||||||||||||||||||
| Brokered deposits | 102,702 | 1,760 | 1.71 | % | 75,204 | 1,881 | 2.50 | % | |||||||||||||||||||||
| Junior subordinated debentures | 43,565 | 2,817 | 6.47 | % | 43,462 | 2,845 | 6.55 | % | |||||||||||||||||||||
| Borrowings | 480,897 | 12,257 | 2.55 | % | 537,658 | 14,898 | 2.77 | % | |||||||||||||||||||||
| Total wholesale funding | 627,164 | 16,834 | 2.68 | % | 656,324 | 19,624 | 2.99 | % | |||||||||||||||||||||
| Total interest-bearing liabilities | 1,844,645 | 30,217 | 1.64 | % | 1,893,971 | 40,320 | 2.13 | % | |||||||||||||||||||||
| Demand deposits | 207,579 | 184,979 | |||||||||||||||||||||||||||
| Other liabilities | 22,832 | 22,598 | |||||||||||||||||||||||||||
| Shareholders' equity | 199,428 | 177,730 | |||||||||||||||||||||||||||
| Total liabilities & shareholders' equity | $ | 2,274,484 | $ | 2,279,278 | |||||||||||||||||||||||||
| Net interest income (fully-taxable equivalent) | 75,742 | 74,639 | |||||||||||||||||||||||||||
| Less: fully-taxable equivalent adjustment | (1,452 | ) | (1,628 | ) | |||||||||||||||||||||||||
| $ | 74,290 | $ | 73,011 | ||||||||||||||||||||||||||
| Net interest rate spread (fully-taxable equivalent) | 3.38 | % | 3.29 | % | |||||||||||||||||||||||||
| Net interest margin (fully-taxable equivalent) | 3.58 | % | 3.51 | % | |||||||||||||||||||||||||
| (1) Reported on tax-equivalent basis calculated using a rate of 35%. | |||||||||||||||||||||||||||||
| (2) Non-accrual loans and loans held for sale are included in total average loans. | |||||||||||||||||||||||||||||
| Selected Financial Data | |||||||||||||||||
|
At or for the Year Ended December 31, |
At or for the Year Ended December 31, |
||||||||||||||||
| 2010 | 2009 | ||||||||||||||||
| Tier 1 leverage capital ratio | 8.77 | % | 8.17 | % | |||||||||||||
| Tier 1 risk-based capital ratio | 13.71 | % | 12.24 | % | |||||||||||||
| Total risk-based capital ratio | 14.96 | % | 13.49 | % | |||||||||||||
| Tangible equity to tangible assets (1) | 7.09 | % | 6.59 | % | |||||||||||||
| Book value per share | $ | 26.90 | $ | 24.93 | |||||||||||||
| Tangible book value per share (2) | $ | 20.91 | $ | 18.86 | |||||||||||||
| Investment Data | |||||||||||||||||||||
| December 31, 2010 | |||||||||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||
| (In thousands) | Cost | Gains | Losses | Value | |||||||||||||||||
| Available for sale | |||||||||||||||||||||
| Obligations of U.S. government sponsored enterprises | $ | 49,870 | $ | 237 | $ | (750 | ) | $ | 49,357 | ||||||||||||
| Obligations of states and political subdivisions (3) | 13,777 | 443 | - | 14,220 | |||||||||||||||||
| Mortgage-backed securities issued or guaranteed by | |||||||||||||||||||||
| U.S. government sponsored enterprises | 451,909 | 15,986 | (3,053 | ) | 464,842 | ||||||||||||||||
| Private issue collateralized mortgage obligations (CMO) (4) | 23,441 | - | (2,719 | ) | 20,722 | ||||||||||||||||
| Total debt securities | 538,997 | 16,666 | (6,522 | ) | 549,141 | ||||||||||||||||
| Equity securities (5) | 5,000 | - | (562 | ) | 4,438 | ||||||||||||||||
| Total securities available for sale | $ | 543,997 | $ | 16,666 | $ | (7,084 | ) | $ | 553,579 | ||||||||||||
| Held to maturity | |||||||||||||||||||||
| Obligations of states and political subdivisions | $ | 36,102 | $ | 3,156 | $ | - | $ | 39,258 | |||||||||||||
| Total securities held to maturity | $ | 36,102 | $ | 3,156 | $ | - | $ | 39,258 | |||||||||||||
| Other securities | |||||||||||||||||||||
| Federal Home Loan Bank Stock (6) | $ | 21,031 | $ | - | $ | - | $ | 21,031 | |||||||||||||
| Federal Reserve Bank Stock | 931 | - | - | 931 | |||||||||||||||||
| Total other securities | $ | 21,962 | $ | - | $ | - | $ | 21,962 | |||||||||||||
| Trading account assets (7) | $ | 2,304 | |||||||||||||||||||
(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.
(3) 99% of the portfolio is rated by at least one of the three major rating agencies (Moody's, Standard & Poor's or Fitch) and all of these ratings are investment grade.
(4) $10.2 million of the CMO's are rated Triple-A by at least one of the three rating agencies, while three CMO's currently carry ratings below investment grade; one CMO with a fair value of $2.5 million is rated Caa1 by Moody's and CCC by Standard & Poor's, a second CMO with a fair value of $1.8 million is rated CCC by Fitch and Standard & Poor's, and a third CMO with a fair value $4.1 million is rate BB by Standard & Poor's and A by Fitch.
(5) The Duff & Phelps (DNP) Select Income Fund Auction Preferred Stock continues to fail at auction. We are currently collecting all amounts due according to contractual terms and have the ability and intent to hold the security until it clears auction, is called or matures on December 22, 2021. The DNP Auction Preferred Stock is rated Triple-A by Moody’s and Standard & Poor's.
(6) The Federal Home Loan Bank of Boston has suspended its quarterly dividend payment.
(7) Investments held in mutual funds that represent deferred director and executive compensation investments.
CONTACT:
Camden National Corporation
Susan M. Westfall,
207-230-2096
Senior Vice President, Clerk
swestfall@camdennational.com