Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - CAMDEN NATIONAL CORP | ex991earningsreleaseq217.htm |
| 8-K - 8-K - CAMDEN NATIONAL CORP | a8k_063017earnings.htm |
Second Quarter Report - 2017Dear Fellow Shareholders:
The qualities embedded in Camden National, including our unwavering customer commitment, exceptional people, and a strong commitment to our shareholders have led us to a successful first half of 2017.
We Listen. It’s important for us to know if we’re delivering a great customer experience, no matter how our customers choose to bank with us—in person, online or through our mobile app. To obtain actionable data, and understand what’s driving our customers’ experiences, we recently conducted a consumer experience survey. We were delighted to learn that our overall customer satisfaction and loyalty exceeds financial industry norms. We heard great comments, such as:
‘‘Love the app. I recently took a trip out of state and used the app to notify the bank of travel plans. Can easily check accounts to verify deposits and activity in accounts.’’
‘‘I have used the 24 hour call center over the last couple of months and found it very helpful when I had to make an emergency trip out of town.’’
We Deliver. I often say that our employees are our greatest asset—and this year is no exception.We have knowledgeable customer-facing employees, complemented by exceptional support team members. They consistently work together to introduce new technologies, design innovative products and make transactions of increasing size and speed simpler for our customers. These employees collaborate to be sure protecting our customer’s information remains a high priority. I’m pleased to report that our cyber security and information technology experts have leveraged our investments in detection and monitoring tools to help ensure our data is safe and secure.
We Guide. We pride ourselves on having independent Directors with complementary and diverse skills, backgrounds and experiences. In April, we welcomed Craig N. Denekas as a new member to the Board of Directors. Mr. Denekas currently serves
as Chairman, Chief Executive Officer and Trustee of the Libra Foundation. His legal and business expertise as well as a deep commitment to Maine will bring a unique perspective to our already accomplished Board of Directors and help drive our strategic vision and corporate governance.
We Achieve. We reached a milestone with total assets now exceeding $4.0 billion accomplished through robust loan growth during the second quarter. More important than asset size is profitability with year-to-date net income of $20.3 million, up 11% over the same period a year ago.We provided strong financial performance with our return on average equity of 10.27% for the first six months of 2017 compared to 9.82% for the same period last year and a return on average assets of 1.04% compared to 0.97% over the same periods.
Delivering long-term shareholder value continues to be a focal point in all of our strategic planning and decision-making across the Company. Over the past six months, tangible book value per share has increased 5% to $19.75 per share, while Camden National’s total return on stock over a 12-month period was 57% compared to 47% for the SNL U.S. Bank $1B−$5B index and 24% for the Russell 2000 index.
We Appreciate. Thank you for your continued trust in the Camden National story. The future is bright for our shareholders, customers, communities and employees.
Sincerely,
Gregory A. Dufour
President and Chief Executive Officer
Financial Highlights (unaudited) | ||||||||||||||||
At or For The Three Months Ended June 30, | At or For The Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Earnings and Dividends | ||||||||||||||||
Net interest income | $ | 28,626 | $ | 28,504 | $ | 56,481 | $ | 56,456 | ||||||||
Provision for credit losses | 1,401 | 2,852 | 1,980 | 3,724 | ||||||||||||
Non-interest income | 9,888 | 10,552 | 18,460 | 18,469 | ||||||||||||
Non-interest expense | 22,158 | 22,330 | 43,586 | 45,239 | ||||||||||||
Income before taxes | 14,955 | 13,874 | 29,375 | 25,962 | ||||||||||||
Income taxes | 4,721 | 4,258 | 9,065 | 7,700 | ||||||||||||
Net income | $ | 10,234 | $ | 9,616 | $ | 20,310 | $ | 18,262 | ||||||||
Diluted earnings per share1 | $ | 0.66 | $ | 0.62 | $ | 1.30 | $ | 1.18 | ||||||||
Cash dividends declared per share1 | 0.23 | 0.20 | 0.46 | 0.40 | ||||||||||||
Performance Ratios | ||||||||||||||||
Return on average equity | 10.17 | % | 10.22 | % | 10.27 | % | 9.82 | % | ||||||||
Return on average tangible equity2 | 13.96 | % | 14.50 | % | 14.16 | % | 14.04 | % | ||||||||
Return on average assets | 1.03 | % | 1.01 | % | 1.04 | % | 0.97 | % | ||||||||
Net interest margin | 3.19 | % | 3.34 | % | 3.19 | % | 3.34 | % | ||||||||
Efficiency ratio2 | 56.76 | % | 55.97 | % | 57.36 | % | 58.46 | % | ||||||||
Balance sheet (end of period) | ||||||||||||||||
Investments | $ | 932,338 | $ | 921,989 | ||||||||||||
Loans and loans held for sale | 2,747,053 | 2,608,228 | ||||||||||||||
Allowance for loan losses | 24,394 | 23,717 | ||||||||||||||
Total assets | 4,036,367 | 3,910,386 | ||||||||||||||
Deposits | 2,940,866 | 2,773,487 | ||||||||||||||
Borrowings | 641,662 | 690,476 | ||||||||||||||
Shareholders' equity | 406,960 | 384,856 | ||||||||||||||
Book Value per Share and Capital Ratios | ||||||||||||||||
Book value per share1 | $ | 26.23 | $ | 24.96 | ||||||||||||
Tangible book value per share1,2 | 19.75 | 18.31 | ||||||||||||||
Tangible common equity ratio2 | 7.79 | % | 7.42 | % | ||||||||||||
Tier I leverage capital ratio | 8.92 | % | 8.44 | % | ||||||||||||
Total risk-based capital ratio | 13.87 | % | 12.94 | % | ||||||||||||
Asset Quality | ||||||||||||||||
Allowance for loan losses to total loans | 0.89 | % | 0.92 | % | ||||||||||||
Net charge-offs to average loans (annualized) | 0.05 | % | 0.09 | % | ||||||||||||
Non-performing loans to total loans | 1.12 | % | 1.10 | % | ||||||||||||
Non-performing assets to total assets | 0.77 | % | 0.75 | % | ||||||||||||
1 All per share data has been adjusted to reflect the 3-for-2 split on September 30, 2016, for all periods presented.
2 This is a non-GAAP measure. A reconciliation of non-GAAP measures to GAAP can be found in the Company's earnings release dated and filed with the SEC on July 25, 2017.
1 All per share data has been adjusted to reflect the 3-for-2 split on September 30, 2016, for all periods presented.
A complete set of financial statements for Camden National Corporation may be obtained upon written request to Camden National Corporation, P.O. Box 310, Camden, Maine 04843.