MAINE
|
01-0413282
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
|
|
2 ELM STREET, CAMDEN, ME
|
04843
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
¨
|
Accelerated filer
x
|
Non-accelerated filer
¨
|
Smaller reporting company
¨
|
(Do not check if a smaller reporting company)
|
Emerging growth company
¨
|
|
|
PAGE
|
PART I. FINANCIAL INFORMATION
|
|
|
|
|
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
|
|
|
|
Consolidated Statements of Condition - March 31, 2018 and December 31, 2017
|
|
|
|
|
|
Consolidated Statements of Income - Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
Consolidated Statements of Changes in Shareholders’ Equity - Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
Consolidated Statements of Cash Flows - Three Months Ended March 31, 2018 and 2017
|
|
|
|
|
|
Notes to the Unaudited Consolidated Financial Statements
|
|
|
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
|
|
|
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
|
|
|
|
PART II. OTHER INFORMATION
|
|
|
|
|
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
|
|
|
|
ITEM 1A.
|
RISK FACTORS
|
|
|
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
|
|
|
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
|
|
|
|
ITEM 5.
|
OTHER INFORMATION
|
|
|
|
|
ITEM 6.
|
EXHIBITS
|
|
|
|
|
SIGNATURES
|
CONSOLIDATED STATEMENTS OF CONDITION
(unaudited)
|
||||||||
(In thousands, except number of shares)
|
|
March 31,
2018
|
|
December 31,
2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
48,159
|
|
|
$
|
44,057
|
|
Interest-bearing deposits in other banks
|
|
76,950
|
|
|
58,914
|
|
||
Total cash, cash equivalents and restricted cash
|
|
125,109
|
|
|
102,971
|
|
||
Investments:
|
|
|
|
|
|
|
||
Available-for-sale securities, at fair value
|
|
796,687
|
|
|
789,899
|
|
||
Held-to-maturity securities, at amortized cost (fair value of $91.9 million and $94.9 million, respectively)
|
|
93,192
|
|
|
94,073
|
|
||
Other investments
|
|
23,774
|
|
|
23,670
|
|
||
Total investments
|
|
913,653
|
|
|
907,642
|
|
||
Loans held for sale, at fair value
|
|
9,548
|
|
|
8,103
|
|
||
Loans
|
|
2,789,148
|
|
|
2,782,439
|
|
||
Less: allowance for loan losses
|
|
(22,990
|
)
|
|
(24,171
|
)
|
||
Net loans
|
|
2,766,158
|
|
|
2,758,268
|
|
||
Goodwill
|
|
94,697
|
|
|
94,697
|
|
||
Other intangible assets
|
|
4,774
|
|
|
4,955
|
|
||
Bank-owned life insurance
|
|
88,097
|
|
|
87,489
|
|
||
Premises and equipment, net
|
|
41,545
|
|
|
41,891
|
|
||
Deferred tax assets
|
|
23,181
|
|
|
22,776
|
|
||
Other assets
|
|
46,423
|
|
|
36,606
|
|
||
Total assets
|
|
$
|
4,113,185
|
|
|
$
|
4,065,398
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Demand
|
|
$
|
463,496
|
|
|
$
|
478,643
|
|
Interest checking
|
|
840,054
|
|
|
855,570
|
|
||
Savings and money market
|
|
1,005,329
|
|
|
985,508
|
|
||
Certificates of deposit
|
|
471,155
|
|
|
475,010
|
|
||
Brokered deposits
|
|
245,546
|
|
|
205,760
|
|
||
Total deposits
|
|
3,025,580
|
|
|
3,000,491
|
|
||
Short-term borrowings
|
|
552,624
|
|
|
541,796
|
|
||
Long-term borrowings
|
|
10,773
|
|
|
10,791
|
|
||
Subordinated debentures
|
|
58,950
|
|
|
58,911
|
|
||
Accrued interest and other liabilities
|
|
61,203
|
|
|
49,996
|
|
||
Total liabilities
|
|
3,709,130
|
|
|
3,661,985
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
|
||
Shareholders’ Equity
|
|
|
|
|
|
|
||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 15,565,868 and 15,524,704 on March 31, 2018 and December 31, 2017, respectively
|
|
156,860
|
|
|
156,904
|
|
||
Retained earnings
|
|
275,841
|
|
|
266,723
|
|
||
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
||
Net unrealized losses on available-for-sale debt securities, net of tax
|
|
(20,227
|
)
|
|
(10,300
|
)
|
||
Net unrealized losses on cash flow hedging derivative instruments, net of tax
|
|
(4,547
|
)
|
|
(5,926
|
)
|
||
Net unrecognized losses on postretirement plans, net of tax
|
|
(3,872
|
)
|
|
(3,988
|
)
|
||
Total accumulated other comprehensive loss
|
|
(28,646
|
)
|
|
(20,214
|
)
|
||
Total shareholders’ equity
|
|
404,055
|
|
|
403,413
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
4,113,185
|
|
|
$
|
4,065,398
|
|
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
|
||||||||
|
|
Three Months Ended
March 31, |
||||||
(In thousands, except number of shares and per share data)
|
|
2018
|
|
2017
|
||||
Interest Income
|
|
|
|
|
|
|
||
Interest and fees on loans
|
|
$
|
29,834
|
|
|
$
|
27,062
|
|
Interest on U.S. government and sponsored enterprise obligations (taxable)
|
|
4,225
|
|
|
4,256
|
|
||
Interest on state and political subdivision obligations (nontaxable)
|
|
672
|
|
|
702
|
|
||
Interest on deposits in other banks and other investments
|
|
547
|
|
|
394
|
|
||
Total interest income
|
|
35,278
|
|
|
32,414
|
|
||
Interest Expense
|
|
|
|
|
|
|
||
Interest on deposits
|
|
3,749
|
|
|
2,554
|
|
||
Interest on borrowings
|
|
1,780
|
|
|
1,161
|
|
||
Interest on subordinated debentures
|
|
847
|
|
|
844
|
|
||
Total interest expense
|
|
6,376
|
|
|
4,559
|
|
||
Net interest income
|
|
28,902
|
|
|
27,855
|
|
||
(Credit) provision for credit losses
|
|
(497
|
)
|
|
579
|
|
||
Net interest income after (credit) provision for credit losses
|
|
29,399
|
|
|
27,276
|
|
||
Non-Interest Income
|
|
|
|
|
|
|
||
Debit card income
|
|
1,929
|
|
|
1,834
|
|
||
Service charges on deposit accounts
|
|
1,836
|
|
|
1,823
|
|
||
Mortgage banking income, net
|
|
1,391
|
|
|
1,553
|
|
||
Income from fiduciary services
|
|
1,283
|
|
|
1,247
|
|
||
Brokerage and insurance commissions
|
|
650
|
|
|
453
|
|
||
Bank-owned life insurance
|
|
608
|
|
|
577
|
|
||
Other service charges and fees
|
|
462
|
|
|
468
|
|
||
Other income
|
|
645
|
|
|
617
|
|
||
Total non-interest income
|
|
8,804
|
|
|
8,572
|
|
||
Non-Interest Expense
|
|
|
|
|
|
|
||
Salaries and employee benefits
|
|
12,562
|
|
|
11,933
|
|
||
Furniture, equipment and data processing
|
|
2,586
|
|
|
2,325
|
|
||
Net occupancy costs
|
|
1,873
|
|
|
1,946
|
|
||
Consulting and professional fees
|
|
804
|
|
|
845
|
|
||
Debit card expense
|
|
730
|
|
|
660
|
|
||
Regulatory assessments
|
|
499
|
|
|
545
|
|
||
Amortization of intangible assets
|
|
181
|
|
|
472
|
|
||
Other real estate owned and collection costs (recoveries), net
|
|
75
|
|
|
(44
|
)
|
||
Other expenses
|
|
2,994
|
|
|
2,746
|
|
||
Total non-interest expense
|
|
22,304
|
|
|
21,428
|
|
||
Income before income tax expense
|
|
15,899
|
|
|
14,420
|
|
||
Income tax expense
|
|
3,079
|
|
|
4,344
|
|
||
Net Income
|
|
$
|
12,820
|
|
|
$
|
10,076
|
|
Per Share Data
|
|
|
|
|
|
|
||
Basic earnings per share
|
|
$
|
0.82
|
|
|
$
|
0.65
|
|
Diluted earnings per share
|
|
$
|
0.82
|
|
|
$
|
0.64
|
|
Weighted average number of common shares outstanding
|
|
15,541,975
|
|
|
15,488,848
|
|
||
Diluted weighted average number of common shares outstanding
|
|
15,603,380
|
|
|
15,568,639
|
|
||
Cash dividends declared per share
|
|
$
|
0.25
|
|
|
$
|
0.23
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
|
||||||||
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2018
|
|
2017
|
||||
Net Income
|
|
$
|
12,820
|
|
|
$
|
10,076
|
|
Other comprehensive loss:
|
|
|
|
|
|
|||
Net change in unrealized losses on available-for-sale securities, net of tax of $2,666 and $247, respectively
|
|
(9,729
|
)
|
|
(458
|
)
|
||
Net change in unrealized losses on cash flow hedging derivatives:
|
|
|
|
|
||||
Net change in unrealized losses on cash flow hedging derivatives, net of tax of ($355) and ($48) respectively
|
|
1,328
|
|
|
90
|
|
||
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($13) and ($159), respectively
(1)
|
|
51
|
|
|
296
|
|
||
Net change in unrealized losses on cash flow hedging derivatives, net of tax
|
|
1,379
|
|
|
386
|
|
||
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($31) and ($23), respectively
(2)
|
|
116
|
|
|
43
|
|
||
Other comprehensive loss
|
|
(8,234
|
)
|
|
(29
|
)
|
||
Comprehensive Income
|
|
$
|
4,586
|
|
|
$
|
10,047
|
|
(1)
|
Reclassified into the consolidated statements of income within interest on borrowings and subordinated debentures.
|
(2)
|
Reclassified into the consolidated statements of income within salaries and employee benefits and other expenses.
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(unaudited)
|
|||||||||||||||||||
|
|
Common Stock
|
|
|
|
Accumulated
Other Comprehensive
Loss
|
|
Total Shareholders’
Equity
|
|||||||||||
(In thousands, except number of shares and per share data)
|
|
Shares
Outstanding
|
|
Amount
|
|
Retained
Earnings
|
|
|
|||||||||||
Balance at December 31, 2016
|
|
15,476,379
|
|
|
$
|
156,041
|
|
|
$
|
249,415
|
|
|
$
|
(13,909
|
)
|
|
$
|
391,547
|
|
Net income
|
|
—
|
|
|
—
|
|
|
10,076
|
|
|
—
|
|
|
10,076
|
|
||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
(29
|
)
|
||||
Stock-based compensation expense
|
|
—
|
|
|
366
|
|
|
—
|
|
|
—
|
|
|
366
|
|
||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings
|
|
31,646
|
|
|
(552
|
)
|
|
—
|
|
|
—
|
|
|
(552
|
)
|
||||
Cash dividends declared ($0.23 per share)
|
|
—
|
|
|
—
|
|
|
(3,581
|
)
|
|
—
|
|
|
(3,581
|
)
|
||||
Balance at March 31, 2017
|
|
15,508,025
|
|
|
$
|
155,855
|
|
|
$
|
255,910
|
|
|
$
|
(13,938
|
)
|
|
$
|
397,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at December 31, 2017
|
|
15,524,704
|
|
|
$
|
156,904
|
|
|
$
|
266,723
|
|
|
$
|
(20,214
|
)
|
|
$
|
403,413
|
|
Cumulative-effect adjustment (Note 2)
|
|
—
|
|
|
—
|
|
|
198
|
|
|
(198
|
)
|
|
—
|
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
12,820
|
|
|
—
|
|
|
12,820
|
|
||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,234
|
)
|
|
(8,234
|
)
|
||||
Stock-based compensation expense
|
|
—
|
|
|
431
|
|
|
—
|
|
|
—
|
|
|
431
|
|
||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings
|
|
41,164
|
|
|
(475
|
)
|
|
—
|
|
|
—
|
|
|
(475
|
)
|
||||
Cash dividends declared ($0.25 per share)
|
|
—
|
|
|
—
|
|
|
(3,900
|
)
|
|
—
|
|
|
(3,900
|
)
|
||||
Balance at March 31, 2018
|
|
15,565,868
|
|
|
$
|
156,860
|
|
|
$
|
275,841
|
|
|
$
|
(28,646
|
)
|
|
$
|
404,055
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
|
||||||||
|
|
Three Months Ended
March 31, |
||||||
(In thousands)
|
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
12,820
|
|
|
$
|
10,076
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
(Credit) provision for credit losses
|
|
(497
|
)
|
|
579
|
|
||
Depreciation and amortization expense
|
|
940
|
|
|
916
|
|
||
Purchase accounting accretion, net
|
|
(514
|
)
|
|
(748
|
)
|
||
Investment securities amortization and accretion, net
|
|
763
|
|
|
786
|
|
||
Stock-based compensation expense
|
|
431
|
|
|
366
|
|
||
Amortization of intangible assets
|
|
181
|
|
|
472
|
|
||
Net increase in other real estate owned valuation allowance and gain on disposition
|
|
—
|
|
|
(27
|
)
|
||
Originations of mortgage loans held for sale
|
|
(46,641
|
)
|
|
(33,629
|
)
|
||
Proceeds from the sale of mortgage loans
|
|
46,426
|
|
|
44,320
|
|
||
Gain on sale of mortgage loans, net of origination costs
|
|
(1,220
|
)
|
|
(1,280
|
)
|
||
(Increase) decrease in other assets
|
|
(2,850
|
)
|
|
3,283
|
|
||
Increase (decrease) in other liabilities
|
|
7,218
|
|
|
(20
|
)
|
||
Net cash provided by operating activities
|
|
17,057
|
|
|
25,094
|
|
||
Investing Activities
|
|
|
|
|
|
|
||
Proceeds from maturities of held-to-maturity securities
|
|
750
|
|
|
—
|
|
||
Proceeds from the sale and maturity of available-for-sale securities
|
|
29,531
|
|
|
32,557
|
|
||
Purchase of available-for-sale securities
|
|
(50,152
|
)
|
|
(77,286
|
)
|
||
Net increase in loans
|
|
(7,008
|
)
|
|
(50,049
|
)
|
||
Purchase of Federal Home Loan Bank stock
|
|
(2,815
|
)
|
|
(2,143
|
)
|
||
Proceeds from sale of Federal Home Loan Bank stock
|
|
3,472
|
|
|
—
|
|
||
Proceeds from the sale of other real estate owned
|
|
—
|
|
|
329
|
|
||
Recoveries of previously charged-off loans
|
|
122
|
|
|
183
|
|
||
Proceeds from the liquidation of equity investment
|
|
205
|
|
|
—
|
|
||
Purchase of premises and equipment
|
|
(595
|
)
|
|
(264
|
)
|
||
Proceeds from the sale of premises and equipment
|
|
—
|
|
|
137
|
|
||
Net cash used by investing activities
|
|
(26,490
|
)
|
|
(96,536
|
)
|
||
Financing Activities
|
|
|
|
|
|
|||
Net increase in deposits
|
|
25,126
|
|
|
108,736
|
|
||
Net proceeds from (repayments of ) borrowings less than 90 days
|
|
10,816
|
|
|
(37,779
|
)
|
||
Repayments of wholesale repurchase agreements
|
|
—
|
|
|
(5,000
|
)
|
||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings
|
|
(475
|
)
|
|
(552
|
)
|
||
Cash dividends paid on common stock
|
|
(3,896
|
)
|
|
(3,575
|
)
|
||
Net cash provided by financing activities
|
|
31,571
|
|
|
61,830
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
22,138
|
|
|
(9,612
|
)
|
||
Cash, cash equivalents, and restricted cash at beginning of period
|
|
102,971
|
|
|
87,707
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
125,109
|
|
|
$
|
78,095
|
|
Supplemental information
|
|
|
|
|
|
|
||
Interest paid
|
|
$
|
6,384
|
|
|
$
|
4,549
|
|
Income taxes paid
|
|
69
|
|
|
57
|
|
AFS:
|
Available-for-sale
|
|
HPFC:
|
Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank
|
ALCO:
|
Asset/Liability Committee
|
|
HTM:
|
Held-to-maturity
|
ALL:
|
Allowance for loan losses
|
|
IRS:
|
Internal Revenue Service
|
AOCI:
|
Accumulated other comprehensive income (loss)
|
|
LIBOR:
|
London Interbank Offered Rate
|
ASC:
|
Accounting Standards Codification
|
|
LTIP:
|
Long-Term Performance Share Plan
|
ASU:
|
Accounting Standards Update
|
|
Management ALCO:
|
Management Asset/Liability Committee
|
Bank:
|
Camden National Bank, a wholly-owned subsidiary of Camden National Corporation
|
|
MBS:
|
Mortgage-backed security
|
BOLI:
|
Bank-owned life insurance
|
|
MSPP:
|
Management Stock Purchase Plan
|
Board ALCO:
|
Board of Directors' Asset/Liability Committee
|
|
N.M.:
|
Not meaningful
|
CCTA:
|
Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation
|
|
OCC:
|
Office of the Comptroller of the Currency
|
CDs:
|
Certificate of deposits
|
|
OCI:
|
Other comprehensive income (loss)
|
Company:
|
Camden National Corporation
|
|
OREO:
|
Other real estate owned
|
CMO:
|
Collateralized mortgage obligation
|
|
OTTI:
|
Other-than-temporary impairment
|
DCRP:
|
Defined Contribution Retirement Plan
|
|
SBM:
|
SBM Financial, Inc., the parent company of The Bank of Maine
|
EPS:
|
Earnings per share
|
|
SERP:
|
Supplemental executive retirement plans
|
FASB:
|
Financial Accounting Standards Board
|
|
Tax Act:
|
Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017
|
FDIC:
|
Federal Deposit Insurance Corporation
|
|
TDR:
|
Troubled-debt restructured loan
|
FHLB:
|
Federal Home Loan Bank
|
|
UBCT:
|
Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation
|
FHLBB:
|
Federal Home Loan Bank of Boston
|
|
U.S.:
|
United States of America
|
FRB:
|
Federal Reserve System Board of Governors
|
|
2003 Plan:
|
2003 Stock Option and Incentive Plan
|
FRBB:
|
Federal Reserve Bank of Boston
|
|
2012 Plan:
|
2012 Equity and Incentive Plan
|
GAAP:
|
Generally accepted accounting principles in the United States
|
|
|
|
•
|
Service charges on deposit accounts:
Deposit-related fees, include, but are not limited to, overdraft income, service charge income, and other fees generated by the depositor relationship with the Bank. For each depositor relationship, an agreement and related disclosures outline the terms of the contract between the depositor and the Bank, including the assessment of fees and fee structure for its various products. The contract is day-to-day and can be closed by the customer or the Bank at any time. As such, the Company recognizes revenue at the time of the transaction as the performance obligation has been met.
|
•
|
Debit card interchange income:
The Bank has separate contracts with intermediaries and earns interchange revenue and incurs related expenses on debit card transactions of its deposit customers. Income earned and expenses incurred by the Bank are dependent on its depositors' debit card usage, including depositor spend, transaction type and merchant. The rates earned are determined by the intermediaries. The Company determined that while the contract for which revenues are directly earned is with the intermediary rather than the depositor, that the underlying contract with each depositor is required for the generation of debit card interchange income and it is the depositors' debit card usage that drives the revenues earned and related expenses incurred. The contract with the depositor is day-to-day and can be closed by the customer or the Bank at any time. As such, the Company recognized revenue at the time of the transaction as the performance obligation has been met.
|
•
|
Fiduciary services income:
The Company, through the Bank's wealth management and trust services department, doing business as Camden National Wealth Management, earns fees for its investment management and related services for its clients. Fees earned for its services are largely dependent on assets under management as of the last day of the month and do not contain performance clauses. Should the contract be terminated by either party, fees for services are earned up to the effective date of contract termination. As such, fiduciary services income is earned and recognized daily.
|
•
|
Investment program income:
Under an investment program offered by the Bank, doing business as Camden Financial Consultant (“Program”), its clients are provided access to brokerage, advisory and insurance products offered through an unaffiliated third party, LPL Financial LLC
1
("LPL Financial"). Certain Bank employees are registered securities representatives and/or registered investment advisor representatives of LPL Financial who operate in such capacity under Camden Financial Consultants to provide clients with brokerage, investment advisory and insurance related services. The Bank receives a portion of the commissions and fees received by LPL Financial from the sale of investment products and investment advisory services in accordance with the terms of the contract between the two parties.
|
•
|
The Company's equity investments are no longer designated and accounted for as AFS securities, with the change in fair value recognized within AOCI, net of tax. Instead, the change in fair value of equity investments with a readily determinable fair value are to be recognized within net income. For the three months ended March 31, 2018, the Company recognized an unrealized loss of
$35,000
for the change in fair value of its equity investments within other income on the Company's consolidated statements of income. The recognition for the change in fair value within net income was applied prospectively, and the Company recorded a cumulative-effect adjustment as of January 1, 2018 for its equity investments to reclassify the unrealized gain, net of tax, of
$198,000
previously recognized within AOCI to retained earnings.
|
•
|
The Company used the "exit price" notion when measuring the fair value of financial instruments for disclosure purposes only. The Company previously used the "entry price" notion for purposes of measuring its loans held for investment for disclosure purposes only. The change in valuation methodology has been applied prospectively as it does not have a material effect on the comparability of the disclosure.
|
•
|
The Company no longer discloses the method or significant assumptions used to estimate the fair value for its financial instruments measured at amortized cost on its consolidated statements of condition for which fair value is provided for disclosure purposes only.
|
1
|
Securities are offered through LPL Financial, Member FINRA/SIPC. Camden Financial Consultants and the Bank are not registered broker/dealers and are not affiliated with LPL Financial. The investment products sold through LPL Financial are not insured by Bank deposits and are not insured by the Federal Deposit Insurance Corporation ("FDIC"). These products are not obligations of the Bank and are not endorsed, recommended or guaranteed by the Bank or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.
|
•
|
A change in the Company's assessment of its ALL and allowance on unused commitments as it will transition from an incurred loss model to an expected loss model, which may result in an increase in the ALL upon adoption and may negatively impact the Company and Bank's regulatory capital ratios.
|
•
|
May reduce the carrying value of the Company's HTM investment securities as it will require an allowance on the expected losses over the life of these securities to be recorded upon adoption.
|
•
|
Changes to the considerations when assessing AFS debt securities for OTTI, including (i) no longer considering the amount of time a security has been in an unrealized loss position and (ii) no longer considering the historical and implied volatility of a security and recoveries or declines in the fair value after the balance sheet date, as well as the presentation of OTTI as an allowance rather than a permanent write-down of the debt security.
|
•
|
Changes to the disclosure requirements to reflect the transition from an incurred loss methodology to an expected credit loss methodology, as well as certain disclosures of credit quality indicators in relation to the amortized cost of financing receivables disaggregated by year of origination (or vintage).
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2018
|
|
2017
|
||||
Net income
|
|
$
|
12,820
|
|
|
$
|
10,076
|
|
Dividends and undistributed earnings allocated to participating securities
(1)
|
|
(40
|
)
|
|
(45
|
)
|
||
Net income available to common shareholders
|
|
$
|
12,780
|
|
|
$
|
10,031
|
|
Weighted-average common shares outstanding for basic EPS
|
|
15,541,975
|
|
|
15,488,848
|
|
||
Dilutive effect of stock-based awards
(2)
|
|
61,405
|
|
|
79,791
|
|
||
Weighted-average common and potential common shares for diluted EPS
|
|
15,603,380
|
|
|
15,568,639
|
|
||
Earnings per common share
(1)
:
|
|
|
|
|
|
|
||
Basic EPS
|
|
$
|
0.82
|
|
|
$
|
0.65
|
|
Diluted EPS
|
|
$
|
0.82
|
|
|
$
|
0.64
|
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFS Investments (carried at fair value):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
5,776
|
|
|
$
|
55
|
|
|
$
|
(4
|
)
|
|
$
|
5,827
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
517,823
|
|
|
490
|
|
|
(15,317
|
)
|
|
502,996
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
293,371
|
|
|
6
|
|
|
(11,098
|
)
|
|
282,279
|
|
||||
Subordinated corporate bonds
|
5,485
|
|
|
119
|
|
|
(19
|
)
|
|
5,585
|
|
||||
Total AFS investments
|
$
|
822,455
|
|
|
$
|
670
|
|
|
$
|
(26,438
|
)
|
|
$
|
796,687
|
|
HTM Investments (carried at amortized cost):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
93,192
|
|
|
$
|
130
|
|
|
$
|
(1,448
|
)
|
|
$
|
91,874
|
|
Total HTM investments
|
$
|
93,192
|
|
|
$
|
130
|
|
|
$
|
(1,448
|
)
|
|
$
|
91,874
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFS Investments (carried at fair value):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
7,232
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
7,335
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
510,176
|
|
|
597
|
|
|
(7,471
|
)
|
|
503,302
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
279,575
|
|
|
14
|
|
|
(6,790
|
)
|
|
272,799
|
|
||||
Subordinated corporate bonds
|
5,484
|
|
|
173
|
|
|
—
|
|
|
5,657
|
|
||||
Equity investments
(1)
|
554
|
|
|
252
|
|
|
—
|
|
|
806
|
|
||||
Total AFS investments
|
$
|
803,021
|
|
|
$
|
1,139
|
|
|
$
|
(14,261
|
)
|
|
$
|
789,899
|
|
HTM Investments (carried at amortized cost):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
94,073
|
|
|
$
|
1,077
|
|
|
$
|
(237
|
)
|
|
$
|
94,913
|
|
Total HTM investments
|
$
|
94,073
|
|
|
$
|
1,077
|
|
|
$
|
(237
|
)
|
|
$
|
94,913
|
|
(1)
|
As of December 31, 2017, equity investments were classified as AFS investments. Effective January 1, 2018, these investments were reclassified to other investments on the consolidated statements of condition as they are no longer eligible to be classified as AFS upon adoption of ASU 2016-01. Refer to Note 2 for further details.
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
AFS Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
1,516
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,516
|
|
|
$
|
(4
|
)
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
236,851
|
|
|
(5,661
|
)
|
|
233,957
|
|
|
(9,656
|
)
|
|
470,808
|
|
|
(15,317
|
)
|
||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
122,669
|
|
|
(2,308
|
)
|
|
154,622
|
|
|
(8,790
|
)
|
|
277,291
|
|
|
(11,098
|
)
|
||||||
Subordinated corporate bonds
|
965
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
965
|
|
|
(19
|
)
|
||||||
Total AFS investments
|
$
|
362,001
|
|
|
$
|
(7,992
|
)
|
|
$
|
388,579
|
|
|
$
|
(18,446
|
)
|
|
$
|
750,580
|
|
|
$
|
(26,438
|
)
|
HTM Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
62,815
|
|
|
$
|
(958
|
)
|
|
$
|
10,225
|
|
|
$
|
(490
|
)
|
|
$
|
73,040
|
|
|
$
|
(1,448
|
)
|
Total HTM investments
|
$
|
62,815
|
|
|
$
|
(958
|
)
|
|
$
|
10,225
|
|
|
$
|
(490
|
)
|
|
$
|
73,040
|
|
|
$
|
(1,448
|
)
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
AFS Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
$
|
221,466
|
|
|
$
|
(2,393
|
)
|
|
$
|
233,971
|
|
|
$
|
(5,078
|
)
|
|
$
|
455,437
|
|
|
$
|
(7,471
|
)
|
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
102,612
|
|
|
(696
|
)
|
|
164,389
|
|
|
(6,094
|
)
|
|
267,001
|
|
|
(6,790
|
)
|
||||||
Total AFS investments
|
$
|
324,078
|
|
|
$
|
(3,089
|
)
|
|
$
|
398,360
|
|
|
$
|
(11,172
|
)
|
|
$
|
722,438
|
|
|
$
|
(14,261
|
)
|
HTM Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
9,317
|
|
|
$
|
(57
|
)
|
|
$
|
9,436
|
|
|
$
|
(180
|
)
|
|
$
|
18,753
|
|
|
$
|
(237
|
)
|
Total HTM investments
|
$
|
9,317
|
|
|
$
|
(57
|
)
|
|
$
|
9,436
|
|
|
$
|
(180
|
)
|
|
$
|
18,753
|
|
|
$
|
(237
|
)
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
AFS Investments
|
|
|
|
||||
Due in one year or less
|
$
|
5,307
|
|
|
$
|
5,302
|
|
Due after one year through five years
|
112,412
|
|
|
110,253
|
|
||
Due after five years through ten years
|
213,112
|
|
|
206,368
|
|
||
Due after ten years
|
491,624
|
|
|
474,764
|
|
||
|
$
|
822,455
|
|
|
$
|
796,687
|
|
HTM Investments
|
|
|
|
||||
Due in one year or less
|
$
|
1,418
|
|
|
$
|
1,418
|
|
Due after one year through five years
|
3,783
|
|
|
3,796
|
|
||
Due after five years through ten years
|
13,035
|
|
|
12,954
|
|
||
Due after ten years
|
74,956
|
|
|
73,706
|
|
||
|
$
|
93,192
|
|
|
$
|
91,874
|
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities - bank stock (carried at fair value)
(1)
|
$
|
544
|
|
|
$
|
217
|
|
|
$
|
—
|
|
|
$
|
761
|
|
FHLBB (carried at cost)
|
17,639
|
|
|
—
|
|
|
—
|
|
|
17,639
|
|
||||
FRB (carried at cost)
|
5,374
|
|
|
—
|
|
|
—
|
|
|
5,374
|
|
||||
Total other investments
|
$
|
23,557
|
|
|
$
|
217
|
|
|
$
|
—
|
|
|
$
|
23,774
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
FHLBB (carried at cost)
|
$
|
18,296
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,296
|
|
FRB (carried at cost)
|
5,374
|
|
|
—
|
|
|
—
|
|
|
5,374
|
|
||||
Total other investments
|
$
|
23,670
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,670
|
|
(1)
|
Effective January 1, 2018, these investments were reclassified to other investments on the consolidated statements of condition as they are no longer eligible for AFS classification upon adoption of ASU 2016-01. Refer to Note 2 for further details.
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
Residential real estate
|
$
|
860,533
|
|
|
$
|
858,369
|
|
Commercial real estate
|
1,169,533
|
|
|
1,164,023
|
|
||
Commercial
|
378,015
|
|
|
373,400
|
|
||
Home equity
|
320,642
|
|
|
323,378
|
|
||
Consumer
|
18,011
|
|
|
18,149
|
|
||
HPFC
|
42,414
|
|
|
45,120
|
|
||
Total loans
|
$
|
2,789,148
|
|
|
$
|
2,782,439
|
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
Net unamortized fair value mark discount on acquired loans
|
$
|
5,703
|
|
|
$
|
6,207
|
|
Net unamortized loan origination costs
|
(958
|
)
|
|
(963
|
)
|
||
Total
|
$
|
4,745
|
|
|
$
|
5,244
|
|
|
|
Residential
Real Estate
|
|
Commercial
Real Estate
|
|
Commercial
|
|
Home
Equity
|
|
Consumer
|
|
HPFC
|
|
Total
|
||||||||||||||
For The Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ALL for the three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
5,086
|
|
|
$
|
11,863
|
|
|
$
|
4,171
|
|
|
$
|
2,367
|
|
|
$
|
233
|
|
|
$
|
451
|
|
|
$
|
24,171
|
|
Loans charged off
|
|
(31
|
)
|
|
(426
|
)
|
|
(171
|
)
|
|
(149
|
)
|
|
(26
|
)
|
|
—
|
|
|
(803
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
13
|
|
|
63
|
|
|
43
|
|
|
3
|
|
|
—
|
|
|
122
|
|
|||||||
Provision (credit)
(1)
|
|
442
|
|
|
(1,164
|
)
|
|
63
|
|
|
166
|
|
|
20
|
|
|
(27
|
)
|
|
(500
|
)
|
|||||||
Ending balance
|
|
$
|
5,497
|
|
|
$
|
10,286
|
|
|
$
|
4,126
|
|
|
$
|
2,427
|
|
|
$
|
230
|
|
|
$
|
424
|
|
|
$
|
22,990
|
|
ALL balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
553
|
|
|
$
|
368
|
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,033
|
|
Collectively evaluated for impairment
|
|
4,944
|
|
|
9,918
|
|
|
4,126
|
|
|
2,315
|
|
|
230
|
|
|
424
|
|
|
21,957
|
|
|||||||
Total ending ALL
|
|
$
|
5,497
|
|
|
$
|
10,286
|
|
|
$
|
4,126
|
|
|
$
|
2,427
|
|
|
$
|
230
|
|
|
$
|
424
|
|
|
$
|
22,990
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
5,059
|
|
|
$
|
3,961
|
|
|
$
|
1,714
|
|
|
$
|
491
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,225
|
|
Collectively evaluated for impairment
|
|
855,474
|
|
|
1,165,572
|
|
|
376,301
|
|
|
320,151
|
|
|
18,011
|
|
|
42,414
|
|
|
2,777,923
|
|
|||||||
Total ending loans balance
|
|
$
|
860,533
|
|
|
$
|
1,169,533
|
|
|
$
|
378,015
|
|
|
$
|
320,642
|
|
|
$
|
18,011
|
|
|
$
|
42,414
|
|
|
$
|
2,789,148
|
|
For The Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ALL for the three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning balance
|
|
$
|
4,160
|
|
|
$
|
12,154
|
|
|
$
|
3,755
|
|
|
$
|
2,194
|
|
|
$
|
181
|
|
|
$
|
672
|
|
|
$
|
23,116
|
|
Loans charged off
|
|
(5
|
)
|
|
(3
|
)
|
|
(136
|
)
|
|
(1
|
)
|
|
(14
|
)
|
|
—
|
|
|
(159
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
103
|
|
|
77
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
183
|
|
|||||||
Provision (credit)
(1)
|
|
116
|
|
|
472
|
|
|
119
|
|
|
(87
|
)
|
|
6
|
|
|
(45
|
)
|
|
581
|
|
|||||||
Ending balance
|
|
$
|
4,271
|
|
|
$
|
12,726
|
|
|
$
|
3,815
|
|
|
$
|
2,107
|
|
|
$
|
175
|
|
|
$
|
627
|
|
|
$
|
23,721
|
|
ALL balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
485
|
|
|
$
|
1,100
|
|
|
$
|
—
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
1,734
|
|
Collectively evaluated for impairment
|
|
3,786
|
|
|
11,626
|
|
|
3,815
|
|
|
2,024
|
|
|
175
|
|
|
561
|
|
|
21,987
|
|
|||||||
Total ending ALL
|
|
$
|
4,271
|
|
|
$
|
12,726
|
|
|
$
|
3,815
|
|
|
$
|
2,107
|
|
|
$
|
175
|
|
|
$
|
627
|
|
|
$
|
23,721
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
4,408
|
|
|
$
|
13,191
|
|
|
$
|
1,994
|
|
|
$
|
430
|
|
|
$
|
7
|
|
|
$
|
98
|
|
|
$
|
20,128
|
|
Collectively evaluated for impairment
|
|
815,231
|
|
|
1,083,284
|
|
|
331,613
|
|
|
322,396
|
|
|
16,662
|
|
|
55,825
|
|
|
$
|
2,625,011
|
|
||||||
Total ending loans balance
|
|
$
|
819,639
|
|
|
$
|
1,096,475
|
|
|
$
|
333,607
|
|
|
$
|
322,826
|
|
|
$
|
16,669
|
|
|
$
|
55,923
|
|
|
$
|
2,645,139
|
|
|
|
Residential
Real Estate
|
|
Commercial
Real Estate
|
|
Commercial
|
|
Home
Equity
|
|
Consumer
|
|
HPFC
|
|
Total
|
||||||||||||||
For The Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ALL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
4,160
|
|
|
$
|
12,154
|
|
|
$
|
3,755
|
|
|
$
|
2,194
|
|
|
$
|
181
|
|
|
$
|
672
|
|
|
$
|
23,116
|
|
Loans charged off
|
|
(482
|
)
|
|
(124
|
)
|
|
(1,014
|
)
|
|
(434
|
)
|
|
(124
|
)
|
|
(290
|
)
|
|
(2,468
|
)
|
|||||||
Recoveries
|
|
30
|
|
|
141
|
|
|
301
|
|
|
2
|
|
|
17
|
|
|
6
|
|
|
497
|
|
|||||||
Provision (credit)
(1)
|
|
1,378
|
|
|
(308
|
)
|
|
1,129
|
|
|
605
|
|
|
159
|
|
|
63
|
|
|
3,026
|
|
|||||||
Ending balance
|
|
$
|
5,086
|
|
|
$
|
11,863
|
|
|
$
|
4,171
|
|
|
$
|
2,367
|
|
|
$
|
233
|
|
|
$
|
451
|
|
|
$
|
24,171
|
|
ALL balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
|
$
|
568
|
|
|
$
|
1,441
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,009
|
|
Collectively evaluated for impairment
|
|
4,518
|
|
|
10,422
|
|
|
4,171
|
|
|
2,367
|
|
|
233
|
|
|
451
|
|
|
22,162
|
|
|||||||
Total ending ALL
|
|
$
|
5,086
|
|
|
$
|
11,863
|
|
|
$
|
4,171
|
|
|
$
|
2,367
|
|
|
$
|
233
|
|
|
$
|
451
|
|
|
$
|
24,171
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
5,171
|
|
|
$
|
6,199
|
|
|
$
|
1,791
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,590
|
|
Collectively evaluated for impairment
|
|
853,198
|
|
|
1,157,824
|
|
|
371,609
|
|
|
322,949
|
|
|
18,149
|
|
|
45,120
|
|
|
2,768,849
|
|
|||||||
Total ending loans balance
|
|
$
|
858,369
|
|
|
$
|
1,164,023
|
|
|
$
|
373,400
|
|
|
$
|
323,378
|
|
|
$
|
18,149
|
|
|
$
|
45,120
|
|
|
$
|
2,782,439
|
|
(1)
|
The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At
March 31, 2018
and 2017, and
December 31, 2017
, the reserve for unfunded commitments was
$23,000
,
$9,000
and
$20,000
, respectively.
|
|
|
Three Months Ended
March 31, |
|
Year Ended December 31,
2017
|
||||||||
|
|
2018
|
|
2017
|
|
|||||||
(Credit) provision for loan losses
|
|
$
|
(500
|
)
|
|
$
|
581
|
|
|
$
|
3,026
|
|
Change in reserve for unfunded commitments
|
|
3
|
|
|
(2
|
)
|
|
9
|
|
|||
(Credit) provision for credit losses
|
|
$
|
(497
|
)
|
|
$
|
579
|
|
|
$
|
3,035
|
|
•
|
Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties.
|
•
|
Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification.
|
•
|
Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral.
|
•
|
Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.
|
•
|
Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted.
|
|
|
Residential
Real Estate
|
|
Commercial
Real Estate
|
|
Commercial
|
|
Home
Equity
|
|
Consumer
|
|
HPFC
|
|
Total
|
||||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass (Grades 1-6)
|
|
$
|
847,822
|
|
|
$
|
1,146,947
|
|
|
$
|
361,377
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,768
|
|
|
$
|
2,396,914
|
|
Performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319,178
|
|
|
18,011
|
|
|
—
|
|
|
337,189
|
|
|||||||
Special Mention (Grade 7)
|
|
662
|
|
|
8,510
|
|
|
12,437
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|
21,783
|
|
|||||||
Substandard (Grade 8)
|
|
12,049
|
|
|
14,076
|
|
|
4,201
|
|
|
—
|
|
|
—
|
|
|
1,472
|
|
|
31,798
|
|
|||||||
Non-performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,464
|
|
|
—
|
|
|
—
|
|
|
1,464
|
|
|||||||
Total
|
|
$
|
860,533
|
|
|
$
|
1,169,533
|
|
|
$
|
378,015
|
|
|
$
|
320,642
|
|
|
$
|
18,011
|
|
|
$
|
42,414
|
|
|
$
|
2,789,148
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Pass (Grades 1-6)
|
|
$
|
846,394
|
|
|
$
|
1,130,235
|
|
|
$
|
354,904
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,049
|
|
|
$
|
2,374,582
|
|
Performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
321,727
|
|
|
18,149
|
|
|
—
|
|
|
339,876
|
|
|||||||
Special Mention (Grade 7)
|
|
922
|
|
|
9,154
|
|
|
12,517
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
22,784
|
|
|||||||
Substandard (Grade 8)
|
|
11,053
|
|
|
24,634
|
|
|
5,979
|
|
|
—
|
|
|
—
|
|
|
1,880
|
|
|
43,546
|
|
|||||||
Non-performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,651
|
|
|
—
|
|
|
—
|
|
|
1,651
|
|
|||||||
Total
|
|
$
|
858,369
|
|
|
$
|
1,164,023
|
|
|
$
|
373,400
|
|
|
$
|
323,378
|
|
|
$
|
18,149
|
|
|
$
|
45,120
|
|
|
$
|
2,782,439
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater
than
90 Days
|
|
Total
Past Due
|
|
Current
|
|
Total Loans
Outstanding
|
|
Loans > 90
Days Past
Due and
Accruing
|
|
Non-Accrual
Loans
|
||||||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential real estate
|
$
|
2,969
|
|
|
$
|
533
|
|
|
$
|
4,762
|
|
|
$
|
8,264
|
|
|
$
|
852,269
|
|
|
$
|
860,533
|
|
|
$
|
—
|
|
|
$
|
6,185
|
|
Commercial real estate
|
1,455
|
|
|
72
|
|
|
4,167
|
|
|
5,694
|
|
|
1,163,839
|
|
|
1,169,533
|
|
|
—
|
|
|
4,603
|
|
||||||||
Commercial
|
144
|
|
|
103
|
|
|
1,532
|
|
|
1,779
|
|
|
376,236
|
|
|
378,015
|
|
|
—
|
|
|
1,991
|
|
||||||||
Home equity
|
1,121
|
|
|
101
|
|
|
1,083
|
|
|
2,305
|
|
|
318,337
|
|
|
320,642
|
|
|
—
|
|
|
1,464
|
|
||||||||
Consumer
|
14
|
|
|
9
|
|
|
—
|
|
|
23
|
|
|
17,988
|
|
|
18,011
|
|
|
—
|
|
|
—
|
|
||||||||
HPFC
|
109
|
|
|
419
|
|
|
655
|
|
|
1,183
|
|
|
41,231
|
|
|
42,414
|
|
|
—
|
|
|
655
|
|
||||||||
Total
|
$
|
5,812
|
|
|
$
|
1,237
|
|
|
$
|
12,199
|
|
|
$
|
19,248
|
|
|
$
|
2,769,900
|
|
|
$
|
2,789,148
|
|
|
$
|
—
|
|
|
$
|
14,898
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential real estate
|
$
|
3,871
|
|
|
$
|
1,585
|
|
|
$
|
4,021
|
|
|
$
|
9,477
|
|
|
$
|
848,892
|
|
|
$
|
858,369
|
|
|
$
|
—
|
|
|
$
|
4,979
|
|
Commercial real estate
|
849
|
|
|
323
|
|
|
5,528
|
|
|
6,700
|
|
|
1,157,323
|
|
|
1,164,023
|
|
|
—
|
|
|
5,642
|
|
||||||||
Commercial
|
329
|
|
|
359
|
|
|
1,535
|
|
|
2,223
|
|
|
371,177
|
|
|
373,400
|
|
|
—
|
|
|
2,000
|
|
||||||||
Home equity
|
1,046
|
|
|
173
|
|
|
1,329
|
|
|
2,548
|
|
|
320,830
|
|
|
323,378
|
|
|
—
|
|
|
1,650
|
|
||||||||
Consumer
|
57
|
|
|
10
|
|
|
—
|
|
|
67
|
|
|
18,082
|
|
|
18,149
|
|
|
—
|
|
|
—
|
|
||||||||
HPFC
|
139
|
|
|
1,372
|
|
|
419
|
|
|
1,930
|
|
|
43,190
|
|
|
45,120
|
|
|
—
|
|
|
1,043
|
|
||||||||
Total
|
$
|
6,291
|
|
|
$
|
3,822
|
|
|
$
|
12,832
|
|
|
$
|
22,945
|
|
|
$
|
2,759,494
|
|
|
$
|
2,782,439
|
|
|
$
|
—
|
|
|
$
|
15,314
|
|
|
|
Number of Contracts
|
|
Recorded Investment
|
|
Specific Reserve
|
||||||||||||||||
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||
Residential real estate
|
|
24
|
|
|
24
|
|
|
$
|
3,581
|
|
|
$
|
3,604
|
|
|
$
|
410
|
|
|
$
|
452
|
|
Commercial real estate
|
|
2
|
|
|
3
|
|
|
354
|
|
|
976
|
|
|
20
|
|
|
16
|
|
||||
Commercial
|
|
7
|
|
|
7
|
|
|
1,339
|
|
|
1,345
|
|
|
—
|
|
|
—
|
|
||||
Home equity
|
|
2
|
|
|
2
|
|
|
306
|
|
|
307
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
35
|
|
|
36
|
|
|
$
|
5,580
|
|
|
$
|
6,232
|
|
|
$
|
430
|
|
|
$
|
468
|
|
|
|
Number of Contracts
|
|
Pre-Modification
Outstanding
Recorded Investment
|
|
Post-Modification
Outstanding
Recorded Investment
|
|
Specific Reserve
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Maturity concession
|
|
—
|
|
|
1
|
|
|
$
|
—
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
15
|
|
Total
|
|
—
|
|
|
1
|
|
|
$
|
—
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
||||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
March 31, 2018
:
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
$
|
3,544
|
|
|
$
|
3,544
|
|
|
$
|
553
|
|
|
$
|
3,745
|
|
|
$
|
30
|
|
Commercial real estate
|
3,591
|
|
|
3,591
|
|
|
368
|
|
|
4,275
|
|
|
1
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
147
|
|
|
147
|
|
|
112
|
|
|
49
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending balance
|
7,282
|
|
|
7,282
|
|
|
1,033
|
|
|
8,069
|
|
|
31
|
|
|||||
Without an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
1,515
|
|
|
1,791
|
|
|
—
|
|
|
1,350
|
|
|
7
|
|
|||||
Commercial real estate
|
370
|
|
|
677
|
|
|
—
|
|
|
637
|
|
|
3
|
|
|||||
Commercial
|
1,714
|
|
|
2,923
|
|
|
—
|
|
|
1,740
|
|
|
2
|
|
|||||
Home equity
|
344
|
|
|
468
|
|
|
—
|
|
|
396
|
|
|
2
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending balance
|
3,943
|
|
|
5,859
|
|
|
—
|
|
|
4,123
|
|
|
14
|
|
|||||
Total impaired loans
|
$
|
11,225
|
|
|
$
|
13,141
|
|
|
$
|
1,033
|
|
|
$
|
12,192
|
|
|
$
|
45
|
|
March 31, 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
$
|
3,048
|
|
|
$
|
3,048
|
|
|
$
|
485
|
|
|
$
|
3,025
|
|
|
$
|
26
|
|
Commercial real estate
|
11,791
|
|
|
11,791
|
|
|
1,100
|
|
|
11,654
|
|
|
—
|
|
|||||
Commercial
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
297
|
|
|
297
|
|
|
83
|
|
|
298
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
98
|
|
|
98
|
|
|
66
|
|
|
98
|
|
|
—
|
|
|||||
Ending Balance
|
15,235
|
|
|
15,235
|
|
|
1,734
|
|
|
15,075
|
|
|
26
|
|
|||||
Without an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
1,360
|
|
|
1,740
|
|
|
—
|
|
|
1,292
|
|
|
2
|
|
|||||
Commercial real estate
|
1,400
|
|
|
1,707
|
|
|
—
|
|
|
1,704
|
|
|
10
|
|
|||||
Commercial
|
1,993
|
|
|
3,167
|
|
|
—
|
|
|
2,024
|
|
|
3
|
|
|||||
Home equity
|
133
|
|
|
269
|
|
|
—
|
|
|
139
|
|
|
—
|
|
|||||
Consumer
|
7
|
|
|
10
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||
HPFC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending Balance
|
4,893
|
|
|
6,893
|
|
|
—
|
|
|
5,166
|
|
|
15
|
|
|||||
Total impaired loans
|
$
|
20,128
|
|
|
$
|
22,128
|
|
|
$
|
1,734
|
|
|
$
|
20,241
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
For the
Year Ended
|
||||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential real estate
|
$
|
3,858
|
|
|
$
|
3,858
|
|
|
$
|
568
|
|
|
$
|
3,177
|
|
|
$
|
131
|
|
Commercial real estate
|
5,422
|
|
|
5,422
|
|
|
1,441
|
|
|
8,900
|
|
|
22
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
Ending Balance
|
9,280
|
|
|
9,280
|
|
|
2,009
|
|
|
12,257
|
|
|
153
|
|
|||||
Without an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
1,313
|
|
|
1,673
|
|
|
—
|
|
|
1,345
|
|
|
15
|
|
|||||
Commercial real estate
|
777
|
|
|
1,084
|
|
|
—
|
|
|
1,132
|
|
|
29
|
|
|||||
Commercial
|
1,791
|
|
|
2,964
|
|
|
—
|
|
|
1,920
|
|
|
10
|
|
|||||
Home equity
|
429
|
|
|
495
|
|
|
—
|
|
|
310
|
|
|
8
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||
HPFC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending Balance
|
4,310
|
|
|
6,216
|
|
|
—
|
|
|
4,709
|
|
|
62
|
|
|||||
Total impaired loans
|
$
|
13,590
|
|
|
$
|
15,496
|
|
|
$
|
2,009
|
|
|
$
|
16,966
|
|
|
$
|
215
|
|
|
|
March 31,
2018 |
|
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer
|
|
Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions
|
|
December 31,
2017 |
|
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer
|
|
Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions
|
||||||||||||||
|
|
Amount
|
|
Ratio
|
|
|
|
Amount
|
|
Ratio
|
|
|
||||||||||||||
Camden National Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total risk-based capital ratio
|
|
$
|
403,941
|
|
|
14.32
|
%
|
|
9.88
|
%
|
|
N/A
|
|
|
$
|
396,451
|
|
|
14.14
|
%
|
|
9.25
|
%
|
|
N/A
|
|
Tier I risk-based capital ratio
|
|
365,930
|
|
|
12.98
|
%
|
|
7.88
|
%
|
|
N/A
|
|
|
357,261
|
|
|
12.74
|
%
|
|
7.25
|
%
|
|
N/A
|
|
||
Common equity Tier I risk-based capital ratio
|
|
322,930
|
|
|
11.45
|
%
|
|
6.38
|
%
|
|
N/A
|
|
|
316,677
|
|
|
11.30
|
%
|
|
5.75
|
%
|
|
N/A
|
|
||
Tier I leverage capital ratio
|
|
365,930
|
|
|
9.23
|
%
|
|
4.00
|
%
|
|
N/A
|
|
|
357,261
|
|
|
9.07
|
%
|
|
4.00
|
%
|
|
N/A
|
|
||
Camden National Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total risk-based capital ratio
|
|
$
|
375,434
|
|
|
13.31
|
%
|
|
9.88
|
%
|
|
10.00
|
%
|
|
$
|
369,540
|
|
|
13.18
|
%
|
|
9.25
|
%
|
|
10.00
|
%
|
Tier I risk-based capital ratio
|
|
352,422
|
|
|
12.49
|
%
|
|
7.88
|
%
|
|
8.00
|
%
|
|
345,350
|
|
|
12.32
|
%
|
|
7.25
|
%
|
|
8.00
|
%
|
||
Common equity Tier I risk-based capital ratio
|
|
352,422
|
|
|
12.49
|
%
|
|
6.38
|
%
|
|
6.50
|
%
|
|
345,350
|
|
|
12.32
|
%
|
|
5.75
|
%
|
|
6.50
|
%
|
||
Tier I leverage capital ratio
|
|
352,422
|
|
|
8.92
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|
345,350
|
|
|
8.80
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2018
|
|
2017
|
||||
Income tax expense
|
|
$
|
3,079
|
|
|
$
|
4,344
|
|
Income before income tax expense
|
|
$
|
15,899
|
|
|
$
|
14,420
|
|
Effective tax rate
(1)
|
|
19.4
|
%
|
|
30.1
|
%
|
(1)
|
On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%, effective January 1, 2018.
|
|
|
|
|
Three Months Ended
March 31, |
||||||
Net periodic pension cost
|
|
Income Statement Presentation
|
|
2018
|
|
2017
|
||||
Service cost
|
|
Salaries and employee benefits
|
|
$
|
112
|
|
|
$
|
84
|
|
Interest cost
|
|
Other expenses
|
|
122
|
|
|
112
|
|
||
Recognized net actuarial loss
|
|
Other expenses
|
|
140
|
|
|
62
|
|
||
Total
|
|
|
|
$
|
374
|
|
|
$
|
258
|
|
|
|
|
|
Three Months Ended
March 31, |
||
Net periodic postretirement benefit cost
|
|
Income Statement Presentation
|
|
2018
|
|
2017
|
Service cost
|
|
Salaries and employee benefits
|
|
$12
|
|
$13
|
Interest cost
|
|
Other expenses
|
|
33
|
|
36
|
Recognized net actuarial loss
|
|
Other expenses
|
|
13
|
|
10
|
Amortization of prior service credit
|
|
Other expenses
|
|
(6)
|
|
(6)
|
Total
|
|
|
|
$52
|
|
$53
|
|
March 31,
2018 |
|
December 31,
2017
|
||||
Short-Term Borrowings (mature within one year):
|
|
|
|
|
|
||
Customer repurchase agreements
|
$
|
256,274
|
|
|
$
|
244,646
|
|
FHLBB borrowings
|
135,000
|
|
|
250,000
|
|
||
Overnight borrowings
|
161,350
|
|
|
47,150
|
|
||
Total short-term borrowings
|
$
|
552,624
|
|
|
$
|
541,796
|
|
Long-Term Borrowings (maturity greater than one year):
|
|
|
|
|
|
||
FHLBB borrowings
|
$
|
10,000
|
|
|
$
|
10,000
|
|
Capital lease obligation
|
773
|
|
|
791
|
|
||
Total long-term borrowings
|
$
|
10,773
|
|
|
$
|
10,791
|
|
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight and Continuous
|
|
Up to 30 Days
|
|
30 - 90 Days
|
|
Greater than 90 Days
|
|
Total
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer Repurchase Agreements:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Obligations of states and political subdivisions
|
|
$
|
1,125
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,125
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
|
90,903
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,903
|
|
|||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
|
164,246
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164,246
|
|
|||||
Total Customer Repurchase Agreements
|
|
256,274
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
256,274
|
|
|||||
Total Repurchase Agreements
|
|
$
|
256,274
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
256,274
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer Repurchase Agreements:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Obligations of states and political subdivisions
|
|
$
|
630
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
630
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
|
98,460
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,460
|
|
|||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
|
145,556
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145,556
|
|
|||||
Total Customer Repurchase Agreements
|
|
244,646
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244,646
|
|
|||||
Total Repurchase Agreements
|
|
$
|
244,646
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
244,646
|
|
|
Fair
Value
|
|
Readily
Available
Market
Prices
(Level 1)
|
|
Observable
Market
Data
(Level 2)
|
|
Company
Determined
Fair Value
(Level 3)
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale
|
$
|
9,548
|
|
|
$
|
—
|
|
|
$
|
9,548
|
|
|
$
|
—
|
|
AFS investments:
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
5,827
|
|
|
—
|
|
|
5,827
|
|
|
—
|
|
||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
502,996
|
|
|
—
|
|
|
502,996
|
|
|
—
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
282,279
|
|
|
—
|
|
|
282,279
|
|
|
—
|
|
||||
Subordinated corporate bonds
|
5,585
|
|
|
—
|
|
|
5,585
|
|
|
—
|
|
||||
Equity securities - bank stock
|
761
|
|
|
—
|
|
|
761
|
|
|
—
|
|
||||
Customer loan swaps
|
10,707
|
|
|
—
|
|
|
10,707
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
308
|
|
|
—
|
|
|
308
|
|
|
—
|
|
||||
Forward delivery commitments
|
145
|
|
|
—
|
|
|
145
|
|
|
—
|
|
||||
FHLBB advance interest rate swaps
|
85
|
|
|
—
|
|
|
85
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Junior subordinated debt interest rate swaps
|
5,877
|
|
|
—
|
|
|
5,877
|
|
|
—
|
|
||||
Customer loan swaps
|
10,707
|
|
|
—
|
|
|
10,707
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
35
|
|
|
—
|
|
|
35
|
|
|
—
|
|
||||
Forward delivery commitments
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale
|
$
|
8,103
|
|
|
$
|
—
|
|
|
$
|
8,103
|
|
|
$
|
—
|
|
AFS investments:
|
|
|
|
|
|
|
|
|
|
|
|||||
Obligations of states and political subdivisions
|
7,335
|
|
|
—
|
|
|
7,335
|
|
|
—
|
|
||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
503,302
|
|
|
—
|
|
|
503,302
|
|
|
—
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
272,799
|
|
|
—
|
|
|
272,799
|
|
|
—
|
|
||||
Subordinated corporate bonds
|
5,657
|
|
|
—
|
|
|
5,657
|
|
|
—
|
|
||||
Equity investments
|
806
|
|
|
—
|
|
|
806
|
|
|
—
|
|
||||
Customer loan swaps
|
5,036
|
|
|
—
|
|
|
5,036
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
307
|
|
|
—
|
|
|
307
|
|
|
—
|
|
||||
Forward delivery commitments
|
158
|
|
|
—
|
|
|
158
|
|
|
—
|
|
||||
FHLBB advance interest rate swaps
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Junior subordinated debt interest rate swaps
|
7,571
|
|
|
—
|
|
|
7,571
|
|
|
—
|
|
||||
Customer loan swaps
|
5,036
|
|
|
—
|
|
|
5,036
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Forward delivery commitments
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
Fair
Value
|
|
Readily
Available
Market
Prices
(Level 1)
|
|
Observable
Market
Data
(Level 2)
|
|
Company
Determined
Fair Value
(Level 3)
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Collateral-dependent impaired loans
|
$
|
3,600
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,600
|
|
Non-financial assets:
|
|
|
|
|
|
|
|
||||||||
OREO
|
130
|
|
|
—
|
|
|
—
|
|
|
130
|
|
||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Collateral-dependent impaired loans
|
$
|
3,696
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,696
|
|
Non-financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
OREO
|
130
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
Fair Value
|
|
Valuation Methodology
|
|
Unobservable input
|
|
Discount Range
(Weighted-Average)
|
|||
March 31, 2018
|
|
|
|
|
|
|
|
|
||
Collateral-dependent impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Partially charged-off
|
$
|
18
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment of appraisal
|
|
0%
|
(0%)
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
||
Specifically reserved
|
3,582
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment of appraisal
|
|
0%
|
(0%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
||
OREO
|
130
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment of appraisal
|
|
20%
|
(20%)
|
|
|
|
|
|
|
Estimated selling cost
|
|
10%
|
(10%)
|
||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
Collateral-dependent impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Partially charged-off
|
$
|
86
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal |
|
0 - 50%
|
(18%)
|
|
|
|
|
|
Estimated selling costs
|
|
0 - 10%
|
(6%)
|
||
Specifically reserved
|
3,610
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal |
|
0%
|
(0%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
||
OREO
|
130
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal |
|
20%
|
(20%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
|
|
Carrying
Amount
|
|
Fair Value
|
|
Readily
Available
Market
Prices
(Level 1)
|
|
Observable
Market
Prices
(Level 2)
|
|
Company
Determined
Market
Prices
(Level 3)
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
HTM securities
|
|
$
|
93,192
|
|
|
$
|
91,874
|
|
|
$
|
—
|
|
|
$
|
91,874
|
|
|
$
|
—
|
|
Residential real estate loans
(1)
|
|
855,036
|
|
|
842,132
|
|
|
—
|
|
|
—
|
|
|
842,132
|
|
|||||
Commercial real estate loans
(1)
|
|
1,159,247
|
|
|
1,119,406
|
|
|
—
|
|
|
—
|
|
|
1,119,406
|
|
|||||
Commercial loans
(1)(2)
|
|
415,879
|
|
|
404,925
|
|
|
—
|
|
|
—
|
|
|
404,925
|
|
|||||
Home equity loans
(1)
|
|
318,215
|
|
|
311,142
|
|
|
—
|
|
|
—
|
|
|
311,142
|
|
|||||
Consumer loans
(1)
|
|
17,781
|
|
|
16,880
|
|
|
—
|
|
|
—
|
|
|
16,880
|
|
|||||
Servicing assets
|
|
972
|
|
|
1,840
|
|
|
—
|
|
|
—
|
|
|
1,840
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Time deposits
|
|
$
|
538,957
|
|
|
$
|
532,244
|
|
|
$
|
—
|
|
|
$
|
532,244
|
|
|
$
|
—
|
|
Short-term borrowings
|
|
552,624
|
|
|
552,289
|
|
|
—
|
|
|
552,289
|
|
|
—
|
|
|||||
Long-term borrowings
|
|
10,773
|
|
|
10,658
|
|
|
—
|
|
|
10,658
|
|
|
—
|
|
|||||
Subordinated debentures
|
|
58,950
|
|
|
45,588
|
|
|
—
|
|
|
45,588
|
|
|
—
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
HTM securities
|
|
$
|
94,073
|
|
|
$
|
94,913
|
|
|
$
|
—
|
|
|
$
|
94,913
|
|
|
$
|
—
|
|
Residential real estate loans
(1)
|
|
853,283
|
|
|
853,056
|
|
|
—
|
|
|
—
|
|
|
853,056
|
|
|||||
Commercial real estate loans
(1)
|
|
1,152,160
|
|
|
1,115,618
|
|
|
—
|
|
|
—
|
|
|
1,115,618
|
|
|||||
Commercial loans
(1)(2)
|
|
413,898
|
|
|
401,902
|
|
|
—
|
|
|
—
|
|
|
401,902
|
|
|||||
Home equity loans
(1)
|
|
321,011
|
|
|
318,230
|
|
|
—
|
|
|
—
|
|
|
318,230
|
|
|||||
Consumer loans
(1)
|
|
17,916
|
|
|
17,335
|
|
|
—
|
|
|
—
|
|
|
17,335
|
|
|||||
Servicing assets
|
|
1,025
|
|
|
1,766
|
|
|
—
|
|
|
—
|
|
|
1,766
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Time deposits
|
|
$
|
517,032
|
|
|
$
|
512,483
|
|
|
$
|
—
|
|
|
$
|
512,483
|
|
|
$
|
—
|
|
Short-term borrowings
|
|
541,796
|
|
|
541,605
|
|
|
—
|
|
|
541,605
|
|
|
—
|
|
|||||
Long-term borrowings
|
|
10,791
|
|
|
10,777
|
|
|
—
|
|
|
10,777
|
|
|
—
|
|
|||||
Subordinated debentures
|
|
58,911
|
|
|
44,333
|
|
|
—
|
|
|
44,333
|
|
|
—
|
|
(1)
|
The presented carrying amount is net of the allocated ALL.
|
(2)
|
Includes the HPFC loan portfolio.
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
Lending-Related Instruments:
|
|
|
|
|
|
||
Loan origination commitments and unadvanced lines of credit:
|
|
|
|
|
|
||
Home equity
|
$
|
501,127
|
|
|
$
|
477,401
|
|
Residential
|
36,352
|
|
|
41,368
|
|
||
Commercial and commercial real estate
|
31,667
|
|
|
49,482
|
|
||
Letters of credit
|
3,426
|
|
|
2,848
|
|
||
Other commitments
|
1,151
|
|
|
523
|
|
||
Derivative Financial Instruments:
|
|
|
|
|
|||
Customer loan swaps
|
$
|
708,316
|
|
|
$
|
703,336
|
|
Junior subordinated debt interest rate swaps
|
43,000
|
|
|
43,000
|
|
||
FHLBB advance interest rate swaps
|
25,000
|
|
|
50,000
|
|
||
Interest rate lock commitments
|
24,753
|
|
|
21,746
|
|
||
Forward delivery commitments
|
9,502
|
|
|
8,065
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Balance Sheet Location
|
|
Number of Positions
|
|
Notional
|
|
Fair Value
|
|
Number of Positions
|
|
Notional
|
|
Fair Value
|
||||||||||
Receive fixed, pay variable
|
|
Other assets / (accrued interest and other liabilities)
|
|
63
|
|
|
$
|
334,395
|
|
|
$
|
(10,707
|
)
|
|
42
|
|
|
$
|
226,884
|
|
|
$
|
(5,036
|
)
|
Receive fixed, pay variable
|
|
Other assets / (accrued interest and other liabilities)
|
|
6
|
|
|
19,763
|
|
|
402
|
|
|
23
|
|
|
124,784
|
|
|
1,799
|
|
||||
Pay fixed, receive variable
|
|
Other assets / (accrued interest and other liabilities)
|
|
69
|
|
|
354,158
|
|
|
10,305
|
|
|
65
|
|
|
351,668
|
|
|
3,237
|
|
||||
Total
|
|
|
|
138
|
|
|
$
|
708,316
|
|
|
$
|
—
|
|
|
130
|
|
|
$
|
703,336
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018 |
|
December 31,
2017 |
||||||
Notional
Amount |
|
Trade
Date |
|
Maturity Date
|
|
Variable Index
Received |
|
Fixed Rate
Paid |
|
Fair Value
(1)
|
|
Fair Value
(1)
|
||||||
$
|
10,000
|
|
|
3/18/2009
|
|
6/30/2021
|
|
3-Month USD LIBOR
|
|
5.09%
|
|
$
|
343
|
|
|
$
|
527
|
|
10,000
|
|
|
7/8/2009
|
|
6/30/2029
|
|
3-Month USD LIBOR
|
|
5.84%
|
|
1,695
|
|
|
2,133
|
|
|||
10,000
|
|
|
5/6/2010
|
|
6/30/2030
|
|
3-Month USD LIBOR
|
|
5.71%
|
|
1,671
|
|
|
2,129
|
|
|||
5,000
|
|
|
3/14/2011
|
|
3/30/2031
|
|
3-Month USD LIBOR
|
|
4.35%
|
|
899
|
|
|
1,137
|
|
|||
8,000
|
|
|
5/4/2011
|
|
7/7/2031
|
|
3-Month USD LIBOR
|
|
4.14%
|
|
1,269
|
|
|
1,645
|
|
|||
$
|
43,000
|
|
|
|
|
|
|
|
|
|
|
$
|
5,877
|
|
|
$
|
7,571
|
|
(1)
|
Presented within accrued interest and other liabilities on the consolidated statements of condition.
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017 |
||||||
Notional
Amount |
|
Trade
Date |
|
Maturity Date
|
|
Variable Index
Received |
|
Fixed Rate
Paid |
|
Fair Value
(1)
|
|
Fair Value
(1)
|
||||||
$
|
25,000
|
|
|
2/25/2015
|
|
2/25/2018
|
|
1-Month
USD LIBOR
|
|
1.54%
|
|
$
|
—
|
|
|
$
|
20
|
|
25,000
|
|
|
2/25/2015
|
|
2/25/2019
|
|
1-Month
USD LIBOR
|
|
1.74%
|
|
85
|
|
|
1
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
$
|
85
|
|
|
$
|
21
|
|
(1)
|
Presented within other assets on the consolidated statements of condition.
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Balance Sheet Location
|
|
Notional
|
|
Fair Value
|
|
Notional
|
|
Fair Value
|
||||||||
Fixed-rate mortgage interest rate locks
|
|
Other Assets
|
|
$
|
20,374
|
|
|
$
|
308
|
|
|
$
|
19,886
|
|
|
$
|
307
|
|
Fixed-rate mortgage interest rate locks
|
|
Accrued interest and other liabilities
|
|
4,379
|
|
|
(35
|
)
|
|
1,860
|
|
|
(22
|
)
|
||||
Total
|
|
|
|
$
|
24,753
|
|
|
$
|
273
|
|
|
$
|
21,746
|
|
|
$
|
285
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Balance Sheet Location
|
|
Notional
|
|
Fair Value
|
|
Notional
|
|
Fair Value
|
||||||||
Forward delivery commitments ("best effort")
|
|
Other Assets
|
|
$
|
8,155
|
|
|
$
|
145
|
|
|
$
|
6,692
|
|
|
$
|
158
|
|
Forward delivery commitments ("best effort")
|
|
Accrued interest and other liabilities
|
|
1,347
|
|
|
(22
|
)
|
|
1,373
|
|
|
(16
|
)
|
||||
Total
|
|
|
|
$
|
9,502
|
|
|
$
|
123
|
|
|
$
|
8,065
|
|
|
$
|
142
|
|
|
|
For The
Three Months Ended
March 31
|
||||||
|
|
2018
|
|
2017
|
||||
Derivatives designated as cash flow hedges:
|
|
|
|
|
||||
Effective portion of unrealized gains recognized within AOCI during the period, net of tax
|
|
$
|
1,328
|
|
|
$
|
90
|
|
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross
(1)
|
|
$
|
64
|
|
|
$
|
455
|
|
•
|
weakness in the United States economy in general and the regional and local economies within the New England region and Maine, which could result in a deterioration of credit quality, an increase in the allowance for loan losses or a reduced demand for the Company’s credit or fee-based products and services;
|
•
|
changes in trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
|
•
|
inflation, interest rate, market, and monetary fluctuations;
|
•
|
competitive pressures, including continued industry consolidation and the increased financial services provided by non-banks;
|
•
|
volatility in the securities markets that could adversely affect the value or credit quality of the Company’s assets, impairment of goodwill, the availability and terms of funding necessary to meet the Company’s liquidity needs, and could lead to impairment in the value of securities in the Company's investment portfolio;
|
•
|
changes in information technology and other operational risks, including cybersecurity, that require increased capital spending;
|
•
|
changes in consumer spending and savings habits;
|
•
|
changes in tax, banking, securities and insurance laws and regulations; and
|
•
|
changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board ("FASB"), and other accounting standard setters.
|
AFS:
|
Available-for-sale
|
|
HPFC:
|
Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank
|
ALCO:
|
Asset/Liability Committee
|
|
HTM:
|
Held-to-maturity
|
ALL:
|
Allowance for loan losses
|
|
IRS:
|
Internal Revenue Service
|
AOCI:
|
Accumulated other comprehensive income (loss)
|
|
LIBOR:
|
London Interbank Offered Rate
|
ASC:
|
Accounting Standards Codification
|
|
LTIP:
|
Long-Term Performance Share Plan
|
ASU:
|
Accounting Standards Update
|
|
Management ALCO:
|
Management Asset/Liability Committee
|
Bank:
|
Camden National Bank, a wholly-owned subsidiary of Camden National Corporation
|
|
MBS:
|
Mortgage-backed security
|
BOLI:
|
Bank-owned life insurance
|
|
MSPP:
|
Management Stock Purchase Plan
|
Board ALCO:
|
Board of Directors' Asset/Liability Committee
|
|
N.M.:
|
Not meaningful
|
CCTA:
|
Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation
|
|
OCC:
|
Office of the Comptroller of the Currency
|
CDs:
|
Certificate of deposits
|
|
OCI:
|
Other comprehensive income (loss)
|
Company:
|
Camden National Corporation
|
|
OREO:
|
Other real estate owned
|
CMO:
|
Collateralized mortgage obligation
|
|
OTTI:
|
Other-than-temporary impairment
|
DCRP:
|
Defined Contribution Retirement Plan
|
|
SBM:
|
SBM Financial, Inc., the parent company of The Bank of Maine
|
EPS:
|
Earnings per share
|
|
SERP:
|
Supplemental executive retirement plans
|
FASB:
|
Financial Accounting Standards Board
|
|
Tax Act:
|
Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017
|
FDIC:
|
Federal Deposit Insurance Corporation
|
|
TDR:
|
Troubled-debt restructured loan
|
FHLB:
|
Federal Home Loan Bank
|
|
UBCT:
|
Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation
|
FHLBB:
|
Federal Home Loan Bank of Boston
|
|
U.S.:
|
United States of America
|
FRB:
|
Federal Reserve System Board of Governors
|
|
2003 Plan:
|
2003 Stock Option and Incentive Plan
|
FRBB:
|
Federal Reserve Bank of Boston
|
|
2012 Plan:
|
2012 Equity and Incentive Plan
|
GAAP:
|
Generally accepted accounting principles in the United States
|
|
|
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2018
|
|
2017
|
||||
Net income, as presented
|
|
$
|
12,820
|
|
|
$
|
10,076
|
|
Amortization of intangible assets, net of tax
(1)
|
|
143
|
|
|
307
|
|
||
Net income, adjusted for amortization of intangible assets
|
|
$
|
12,963
|
|
|
$
|
10,383
|
|
Average shareholders' equity
|
|
$
|
402,626
|
|
|
$
|
394,276
|
|
Less: average goodwill and other intangible assets
|
|
(99,568
|
)
|
|
(101,229
|
)
|
||
Average tangible equity
|
|
$
|
303,058
|
|
|
$
|
293,047
|
|
Return on average tangible equity
|
|
17.35
|
%
|
|
14.37
|
%
|
||
Return on average shareholders' equity
|
|
12.91
|
%
|
|
10.36
|
%
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the period.
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2018
|
|
2017
|
||||
Non-interest expense, as presented
|
|
$
|
22,304
|
|
|
$
|
21,428
|
|
Net interest income, as presented
|
|
$
|
28,902
|
|
|
$
|
27,855
|
|
Add: effect of tax-exempt income
(1)
|
|
254
|
|
|
520
|
|
||
Non-interest income, as presented
|
|
8,804
|
|
|
8,572
|
|
||
Adjusted net interest income plus non-interest income
|
|
$
|
37,960
|
|
|
$
|
36,947
|
|
Non-GAAP efficiency ratio
|
|
58.76
|
%
|
|
58.00
|
%
|
||
GAAP efficiency ratio
|
|
59.15
|
%
|
|
58.82
|
%
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the period.
|
|
|
Three Months Ended
March 31, |
||||||
|
|
2018
|
|
2017
|
||||
Net interest income, as presented
|
|
$
|
28,902
|
|
|
$
|
27,855
|
|
Add: effect of tax-exempt income
(1)
|
|
254
|
|
|
520
|
|
||
Net interest income, tax equivalent
|
|
$
|
29,156
|
|
|
$
|
28,375
|
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the period.
|
|
|
March 31,
2018
|
|
December 31,
2017
|
||||
Tangible Book Value Per Share
|
|
|
|
|
||||
Shareholders’ equity, as presented
|
|
$
|
404,055
|
|
|
$
|
403,413
|
|
Less: goodwill and other intangibles
|
|
(99,471
|
)
|
|
(99,652
|
)
|
||
Tangible shareholders’ equity
|
|
$
|
304,584
|
|
|
$
|
303,761
|
|
Shares outstanding at period end
|
|
15,565,868
|
|
|
15,524,704
|
|
||
Tangible book value per share
|
|
$
|
19.57
|
|
|
$
|
19.57
|
|
Book value per share
|
|
$
|
25.96
|
|
|
$
|
25.99
|
|
Tangible Common Equity Ratio
|
|
|
|
|
||||
Total assets
|
|
$
|
4,113,185
|
|
|
$
|
4,065,398
|
|
Less: goodwill and other intangibles
|
|
(99,471
|
)
|
|
(99,652
|
)
|
||
Tangible assets
|
|
$
|
4,013,714
|
|
|
$
|
3,965,746
|
|
Tangible common equity ratio
|
|
7.59
|
%
|
|
7.66
|
%
|
||
Shareholders' equity to total assets
|
|
9.82
|
%
|
|
9.92
|
%
|
•
|
A decrease in our effective tax rate as the federal corporate income tax rate was lowered from 35% to 21%, as tax reform was passed in December 2017 and went into effect on January 1, 2018. Our effective tax rate for the three months ended March 31, 2018 was 19.4%, compared to 30.1% for the three months ended March 31, 2017. As a result, the estimated benefit for the Company for the three months ended was $1.9 million in lower income tax expense, or $0.12 per diluted share.
|
•
|
Total revenue (sum of net interest income and non-interest income) grew $1.3 million, or 4%, driven by net interest income growth of $1.0 million, or 4%. Our net interest income growth for the three months ended March 31, 2018 over the same period last year was due to average loan growth of $156.4 million, or 6%, and average demand deposit and interest checking growth of $177.4 million, or 16%. The importance of low-cost deposit growth can't be understated as borrowing rates have risen, highlighted by an increase in our average borrowing rate of 50 basis points to 1.68% for the three months ended March 31, 2018 over the same period last year.
|
•
|
Negative (or credit) provision expense for the three months ended March 31, 2018 of $497,000, compared to an expense of $579,000 for three months ended March 31, 2017. The negative provision expense for three months ended March 31, 2018 was driven by strong asset quality across our loan portfolio and the favorable resolution of one large non-accruing commercial real estate loan, for which we were able release the specific reserve.
|
•
|
Non-interest expense for the three months ended March 31, 2018 increased $876,000, or 4%, over the same period last year partially offsetting the income increases outlined above. Our efficiency ratio
1
for the three months ended March 31, 2018 was 58.76%, compared to 58.00% for the three months ended March 31, 2017.
|
|
|
For the Three Months Ended
|
|||||||
|
|
March 31, 2018
|
|
March 31, 2017
|
|
Increase (Decrease)
|
|||
Return on average assets
|
|
1.28
|
%
|
|
1.05
|
%
|
|
0.23
|
%
|
Return on average equity
|
|
12.91
|
%
|
|
10.36
|
%
|
|
2.55
|
%
|
Return on average tangible equity
(1)
|
|
17.35
|
%
|
|
14.37
|
%
|
|
2.98
|
%
|
(1)
|
The following was not calculated in accordance with GAAP. Refer to the "
—
Non-GAAP Financial Measures and Reconciliation to GAAP
" above.
|
•
|
For the three months ended March 31, 2018, loan and deposit fair value mark accretion income and income from collection on previously charged-off loans was $558,000, representing a decrease of $246,000, or 3 basis points, compared to the same period last year.
|
•
|
For the three months ended March 31, 2018, tax-equivalent interest income was $254,000, representing a decrease of $266,000, or 3 basis points, compared to the same period last year. Tax-equivalent interest income decreased primarily due to the decrease in the federal corporate income tax rate, effective for 2018.
|
Quarterly Average Balance, Interest and Yield/Rate Analysis
|
||||||||||||||||||||||
|
|
For The Three Months Ended
|
||||||||||||||||||||
|
|
March 31, 2018
|
|
March 31, 2017
|
||||||||||||||||||
(In thousands)
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in other banks
(1)
|
|
$
|
52,510
|
|
|
$
|
184
|
|
|
1.40
|
%
|
|
$
|
34,529
|
|
|
$
|
60
|
|
|
0.69
|
%
|
Securities - taxable
|
|
826,529
|
|
|
4,588
|
|
|
2.22
|
%
|
|
833,162
|
|
|
4,590
|
|
|
2.20
|
%
|
||||
Securities - nontaxable
(2)
|
|
99,560
|
|
|
851
|
|
|
3.42
|
%
|
|
102,928
|
|
|
1,080
|
|
|
4.20
|
%
|
||||
Loans
(3)(4)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential real estate
|
|
860,783
|
|
|
8,859
|
|
|
4.12
|
%
|
|
814,626
|
|
|
8,357
|
|
|
4.10
|
%
|
||||
Commercial real estate
|
|
1,171,598
|
|
|
12,297
|
|
|
4.20
|
%
|
|
1,076,788
|
|
|
10,574
|
|
|
3.93
|
%
|
||||
Commercial
(2)
|
|
349,963
|
|
|
3,737
|
|
|
4.27
|
%
|
|
319,556
|
|
|
3,266
|
|
|
4.09
|
%
|
||||
Municipal
(2)
|
|
17,277
|
|
|
142
|
|
|
3.33
|
%
|
|
16,071
|
|
|
134
|
|
|
3.39
|
%
|
||||
Consumer
|
|
341,078
|
|
|
4,000
|
|
|
4.76
|
%
|
|
342,775
|
|
|
3,658
|
|
|
4.33
|
%
|
||||
HPFC
|
|
43,757
|
|
|
874
|
|
|
7.99
|
%
|
|
58,252
|
|
|
1,215
|
|
|
8.34
|
%
|
||||
Total loans
|
|
2,784,456
|
|
|
29,909
|
|
|
4.30
|
%
|
|
2,628,068
|
|
|
27,204
|
|
|
4.15
|
%
|
||||
Total interest-earning assets
(1)
|
|
3,763,055
|
|
|
35,532
|
|
|
3.78
|
%
|
|
3,598,687
|
|
|
32,934
|
|
|
3.67
|
%
|
||||
Cash and due from banks
|
|
41,935
|
|
|
|
|
|
|
42,707
|
|
|
|
|
|
||||||||
Other assets
|
|
274,582
|
|
|
|
|
|
|
285,695
|
|
|
|
|
|
||||||||
Less: ALL
|
|
(24,205
|
)
|
|
|
|
|
|
(23,247
|
)
|
|
|
|
|
||||||||
Total assets
|
|
$
|
4,055,367
|
|
|
|
|
|
|
$
|
3,903,842
|
|
|
|
|
|
||||||
Liabilities & Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand
|
|
$
|
452,629
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
391,671
|
|
|
$
|
—
|
|
|
—
|
%
|
Interest checking
|
|
833,410
|
|
|
775
|
|
|
0.38
|
%
|
|
716,940
|
|
|
269
|
|
|
0.15
|
%
|
||||
Savings
|
|
493,660
|
|
|
77
|
|
|
0.06
|
%
|
|
489,041
|
|
|
73
|
|
|
0.06
|
%
|
||||
Money market
|
|
487,685
|
|
|
790
|
|
|
0.66
|
%
|
|
483,914
|
|
|
540
|
|
|
0.45
|
%
|
||||
Certificates of deposit
(4)
|
|
472,213
|
|
|
1,169
|
|
|
1.00
|
%
|
|
463,786
|
|
|
1,008
|
|
|
0.88
|
%
|
||||
Total deposits
|
|
2,739,597
|
|
|
2,811
|
|
|
0.42
|
%
|
|
2,545,352
|
|
|
1,890
|
|
|
0.30
|
%
|
||||
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Brokered deposits
|
|
238,870
|
|
|
938
|
|
|
1.59
|
%
|
|
308,594
|
|
|
664
|
|
|
0.87
|
%
|
||||
Customer repurchase agreements
|
|
237,056
|
|
|
424
|
|
|
0.72
|
%
|
|
221,590
|
|
|
176
|
|
|
0.32
|
%
|
||||
Junior subordinated debentures
|
|
58,930
|
|
|
847
|
|
|
5.83
|
%
|
|
58,775
|
|
|
844
|
|
|
5.83
|
%
|
||||
Other borrowings
|
|
328,141
|
|
|
1,356
|
|
|
1.68
|
%
|
|
330,918
|
|
|
985
|
|
|
1.21
|
%
|
||||
Total borrowings
|
|
862,997
|
|
|
3,565
|
|
|
1.68
|
%
|
|
919,877
|
|
|
2,669
|
|
|
1.18
|
%
|
||||
Total funding liabilities
|
|
3,602,594
|
|
|
6,376
|
|
|
0.72
|
%
|
|
3,465,229
|
|
|
4,559
|
|
|
0.53
|
%
|
||||
Other liabilities
|
|
50,147
|
|
|
|
|
|
|
44,337
|
|
|
|
|
|
||||||||
Shareholders' equity
|
|
402,626
|
|
|
|
|
|
|
394,276
|
|
|
|
|
|
||||||||
Total liabilities & shareholders' equity
|
|
$
|
4,055,367
|
|
|
|
|
|
|
$
|
3,903,842
|
|
|
|
|
|
||||||
Net interest income (fully-taxable equivalent)
|
|
|
|
29,156
|
|
|
|
|
|
|
28,375
|
|
|
|
||||||||
Less: fully-taxable equivalent adjustment
|
|
|
|
(254
|
)
|
|
|
|
|
|
(520
|
)
|
|
|
||||||||
Net interest income
|
|
|
|
$
|
28,902
|
|
|
|
|
|
|
$
|
27,855
|
|
|
|
||||||
Net interest rate spread (fully-taxable equivalent)
(1)
|
|
|
|
|
|
3.06
|
%
|
|
|
|
|
|
3.14
|
%
|
||||||||
Net interest margin (fully-taxable equivalent)
(1)
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.15
|
%
|
||||||||
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans
(1)(4)
|
|
|
|
|
|
3.04
|
%
|
|
|
|
|
|
3.06
|
%
|
(1)
|
Prior period was revised to include average interest-bearing deposits in other banks in total average interest-earning assets. Previously, average interest-bearing deposits in other banks was presented in cash and due from banks.
|
(2)
|
Reported on tax-equivalent basis calculated using the federal corporate income tax rate of 21% and 35% for the three months ended March 31, 2018 and 2017, respectively, including certain commercial loans.
|
(3)
|
Non-accrual loans and loans held for sale are included in total average loans.
|
(4)
|
Excludes the impact of the fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans for the three months ended March 31, 2018 and 2017 totaling $558,000 and $804,000, respectively.
|
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||||
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Debit card income
|
|
$
|
1,929
|
|
|
$
|
1,834
|
|
|
$
|
95
|
|
|
5
|
%
|
Service charges on deposit accounts
|
|
1,836
|
|
|
1,823
|
|
|
13
|
|
|
1
|
%
|
|||
Mortgage banking income, net
|
|
1,391
|
|
|
1,553
|
|
|
(162
|
)
|
|
(10
|
)%
|
|||
Income from fiduciary services
|
|
1,283
|
|
|
1,247
|
|
|
36
|
|
|
3
|
%
|
|||
Brokerage and insurance commissions
|
|
650
|
|
|
453
|
|
|
197
|
|
|
43
|
%
|
|||
Bank-owned life insurance
|
|
608
|
|
|
577
|
|
|
31
|
|
|
5
|
%
|
|||
Other service charges and fees
|
|
462
|
|
|
468
|
|
|
(6
|
)
|
|
(1
|
)%
|
|||
Other income
|
|
645
|
|
|
617
|
|
|
28
|
|
|
5
|
%
|
|||
Total non-interest income
|
|
$
|
8,804
|
|
|
$
|
8,572
|
|
|
$
|
232
|
|
|
3
|
%
|
Non-interest income as a percentage of total revenues
(1)
|
|
23
|
%
|
|
24
|
%
|
|
|
|
|
•
|
A decrease in mortgage banking income primarily due to an unrealized loss of $146,000 due to the change in fair value on loans held for sale and related mortgage banking derivatives.
|
•
|
An increase in brokerage and insurance commissions was driven by strong production and assets under management growth of 8% to $418.9 million at March 31, 2018 over the last year.
|
•
|
An increase in other income was in part due to a one-time gain of $195,000 recognized upon the mandatory liquidation of our investment in a reinsurance program, partially offset by a decrease in fees from customer loan swaps of $153,000.
|
|
|
Three Months Ended
March 31, |
|
Change
|
|||||||||||
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Salaries and employee benefits
|
|
$
|
12,562
|
|
|
$
|
11,933
|
|
|
$
|
629
|
|
|
5
|
%
|
Furniture, equipment and data processing
|
|
2,586
|
|
|
2,325
|
|
|
261
|
|
|
11
|
%
|
|||
Net occupancy costs
|
|
1,873
|
|
|
1,946
|
|
|
(73
|
)
|
|
(4
|
)%
|
|||
Consulting and professional fees
|
|
804
|
|
|
845
|
|
|
(41
|
)
|
|
(5
|
)%
|
|||
Debit card expense
|
|
730
|
|
|
660
|
|
|
70
|
|
|
11
|
%
|
|||
Regulatory assessments
|
|
499
|
|
|
545
|
|
|
(46
|
)
|
|
(8
|
)%
|
|||
Amortization of intangible assets
|
|
181
|
|
|
472
|
|
|
(291
|
)
|
|
(62
|
)%
|
|||
Other real estate owned and collection costs, net
|
|
75
|
|
|
(44
|
)
|
|
119
|
|
|
270
|
%
|
|||
Other expenses
|
|
2,994
|
|
|
2,746
|
|
|
248
|
|
|
9
|
%
|
|||
Total non-interest expense
|
|
$
|
22,304
|
|
|
$
|
21,428
|
|
|
$
|
876
|
|
|
4
|
%
|
Non-GAAP efficiency ratio
|
|
58.76
|
%
|
|
58.00
|
%
|
|
|
|
|
•
|
An increase in salaries and employee benefits of 5% primarily driven by an increase salary costs and accrued bonuses due to normal annual merit increases, increased headcount and continued wage inflation.
|
•
|
An increase in furniture, equipment and data processing costs primarily driven by an increase in technology investments and advancement costs of $264,000, or 15%, over the past year.
|
•
|
A decrease in amortization of intangible assets as its trust relationship intangible assets were fully amortized as of December 31, 2017.
|
•
|
An increase in other expenses primarily driven by an increase in external recruiting fees of $124,000, an increase in donations and marketing expenses of $73,000, and an increase in pension and postretirement benefit (excluding the service cost component, which was presented within salaries and employee benefits) of $48,000.
|
|
|
Debt
|
|
Equity
|
|
|
||||||||||||||||||||||||||
|
|
AFS
|
|
HTM
|
|
Total
|
|
Bank Stock
(1)
|
|
FHLBB and
FRB Stock
|
|
Other
|
|
Total
|
|
Total
|
||||||||||||||||
Carrying value at December 31, 2017
|
|
$
|
789,093
|
|
|
$
|
94,073
|
|
|
$
|
883,166
|
|
|
$
|
796
|
|
|
$
|
23,670
|
|
|
$
|
10
|
|
|
$
|
24,476
|
|
|
$
|
907,642
|
|
Purchases
|
|
50,152
|
|
|
—
|
|
|
50,152
|
|
|
—
|
|
|
2,815
|
|
|
—
|
|
|
2,815
|
|
|
52,967
|
|
||||||||
Sales, carrying value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,472
|
)
|
|
(10
|
)
|
|
(3,482
|
)
|
|
(3,482
|
)
|
||||||||
Principal repayments, maturities and calls
|
|
(29,531
|
)
|
|
(750
|
)
|
|
(30,281
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,281
|
)
|
||||||||
Amortization, net
|
|
(632
|
)
|
|
(131
|
)
|
|
(763
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(763
|
)
|
||||||||
Change in unrealized losses
|
|
(12,395
|
)
|
|
—
|
|
|
(12,395
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
(12,430
|
)
|
||||||||
Carrying value at March 31, 2018
|
|
$
|
796,687
|
|
|
$
|
93,192
|
|
|
$
|
889,879
|
|
|
$
|
761
|
|
|
$
|
23,013
|
|
|
$
|
—
|
|
|
$
|
23,774
|
|
|
$
|
913,653
|
|
(1)
|
Effective January 1, 2018, upon adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value recognized in net income. The change in unrealized losses for the three months ended March 31, 2018 of $35,000 was presented within other income on the consolidated statements of income.
|
|
|
March 31,
2018 |
|
December 31,
2017 |
|
Change
|
|||||||||
|
|
|
|
($)
|
|
(%)
|
|||||||||
Residential real estate
|
|
$
|
860,533
|
|
|
$
|
858,369
|
|
|
$
|
2,164
|
|
|
—
|
%
|
Commercial real estate
|
|
1,169,533
|
|
|
1,164,023
|
|
|
5,510
|
|
|
—
|
%
|
|||
Commercial
|
|
378,015
|
|
|
373,400
|
|
|
4,615
|
|
|
1
|
%
|
|||
Consumer and home equity
|
|
338,653
|
|
|
341,527
|
|
|
(2,874
|
)
|
|
(1
|
)%
|
|||
HPFC
|
|
42,414
|
|
|
45,120
|
|
|
(2,706
|
)
|
|
(6
|
)%
|
|||
Total loans
|
|
$
|
2,789,148
|
|
|
$
|
2,782,439
|
|
|
$
|
6,709
|
|
|
—
|
%
|
Commercial Loan Portfolio
|
|
$
|
1,589,962
|
|
|
$
|
1,582,543
|
|
|
$
|
7,419
|
|
|
—
|
%
|
Retail Loan Portfolio
|
|
$
|
1,199,186
|
|
|
$
|
1,199,896
|
|
|
$
|
(710
|
)
|
|
—
|
%
|
Commercial Portfolio Mix
|
|
57
|
%
|
|
57
|
%
|
|
|
|
|
|||||
Retail Portfolio Mix
|
|
43
|
%
|
|
43
|
%
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
||||
Non-accrual loans:
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
6,185
|
|
|
$
|
4,979
|
|
Commercial real estate
|
|
4,603
|
|
|
5,642
|
|
||
Commercial
|
|
1,991
|
|
|
2,000
|
|
||
Consumer and home equity loans
|
|
1,464
|
|
|
1,650
|
|
||
HPFC
|
|
655
|
|
|
1,043
|
|
||
Total non-accrual loans
|
|
14,898
|
|
|
15,314
|
|
||
Accruing loans past due 90 days
|
|
—
|
|
|
—
|
|
||
Accruing TDRs not included above
|
|
4,361
|
|
|
5,012
|
|
||
Total non-performing loans
|
|
19,259
|
|
|
20,326
|
|
||
Other real estate owned
|
|
130
|
|
|
130
|
|
||
Total non-performing assets
|
|
$
|
19,389
|
|
|
$
|
20,456
|
|
Non-accrual loans to total loans
|
|
0.53
|
%
|
|
0.55
|
%
|
||
Non-performing loans to total loans
|
|
0.69
|
%
|
|
0.73
|
%
|
||
ALL to non-performing loans
|
|
119.37
|
%
|
|
118.92
|
%
|
||
Non-performing assets to total assets
|
|
0.47
|
%
|
|
0.50
|
%
|
||
ALL to non-performing assets
|
|
118.57
|
%
|
|
118.16
|
%
|
|
|
March 31,
2018
|
|
December 31,
2017
|
||||
Accruing loans 30-89 days past due:
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
2,777
|
|
|
$
|
5,277
|
|
Commercial real estate
|
|
1,121
|
|
|
1,135
|
|
||
Commercial
|
|
243
|
|
|
518
|
|
||
Consumer and home equity loans
|
|
1,190
|
|
|
1,197
|
|
||
HPFC
|
|
528
|
|
|
887
|
|
||
Total accruing loans 30-89 days past due
|
|
$
|
5,859
|
|
|
$
|
9,014
|
|
Accruing loans 30-89 days past due to total loans
|
|
0.21
|
%
|
|
0.32
|
%
|
|
|
At or For The
Three Months Ended March 31, |
|
At or For The
Year Ended
December 31, 2017
|
||||||||
|
|
2018
|
|
2017
|
|
|||||||
ALL at the beginning of the period
|
|
$
|
24,171
|
|
|
$
|
23,116
|
|
|
$
|
23,116
|
|
(Credit) provision for loan losses
|
|
(500
|
)
|
|
581
|
|
|
3,026
|
|
|||
Charge-offs:
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
31
|
|
|
5
|
|
|
482
|
|
|||
Commercial real estate
|
|
426
|
|
|
3
|
|
|
124
|
|
|||
Commercial
|
|
171
|
|
|
136
|
|
|
1,014
|
|
|||
Consumer and home equity
|
|
175
|
|
|
15
|
|
|
558
|
|
|||
HPFC
|
|
—
|
|
|
—
|
|
|
290
|
|
|||
Total charge-offs
|
|
803
|
|
|
159
|
|
|
2,468
|
|
|||
Recoveries:
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
1
|
|
|
—
|
|
|
30
|
|
|||
Commercial real estate
|
|
13
|
|
|
103
|
|
|
141
|
|
|||
Commercial
|
|
62
|
|
|
77
|
|
|
301
|
|
|||
Consumer and home equity
|
|
46
|
|
|
3
|
|
|
19
|
|
|||
HPFC
|
|
—
|
|
|
—
|
|
|
6
|
|
|||
Total recoveries
|
|
122
|
|
|
183
|
|
|
497
|
|
|||
Net charge-offs (recoveries)
|
|
681
|
|
|
(24
|
)
|
|
1,971
|
|
|||
ALL at the end of the period
|
|
$
|
22,990
|
|
|
$
|
23,721
|
|
|
$
|
24,171
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses
|
|
$
|
22,990
|
|
|
$
|
23,721
|
|
|
$
|
24,171
|
|
Liability for unfunded credit commitments
|
|
23
|
|
|
9
|
|
|
20
|
|
|||
Balance of allowance for credit losses at end of the period
|
|
$
|
23,013
|
|
|
$
|
23,730
|
|
|
$
|
24,191
|
|
Net charge-offs (annualized) to average loans
|
|
0.10
|
%
|
|
—
|
%
|
|
0.07
|
%
|
|||
Provision for loan losses (annualized) to average loans
|
|
N.M.
|
|
|
0.09
|
%
|
|
0.11
|
%
|
|||
ALL to total loans
|
|
0.82
|
%
|
|
0.90
|
%
|
|
0.87
|
%
|
|||
ALL to net charge-offs (annualized)
|
|
843.98
|
%
|
|
N.M.
|
|
|
1,226.33
|
%
|
|
|
At or For The
Three Months Ended
March 31, |
|
At or For The
Year Ended
December 31,
2017
|
||||||||
|
|
2018
|
|
2017
|
|
|||||||
Return on average assets
|
|
1.28
|
%
|
|
1.05
|
%
|
|
0.71
|
%
|
|||
Return on average equity
|
|
12.91
|
%
|
|
10.36
|
%
|
|
7.00
|
%
|
|||
Average equity to average assets
|
|
9.93
|
%
|
|
10.10
|
%
|
|
10.19
|
%
|
|||
Dividend payout ratio
|
|
30.40
|
%
|
|
35.54
|
%
|
|
51.43
|
%
|
|||
Book value per share
|
|
$
|
25.96
|
|
|
$
|
25.65
|
|
|
$
|
25.99
|
|
Dividends declared per share
|
|
$
|
0.25
|
|
|
$
|
0.23
|
|
|
$
|
0.94
|
|
|
|
Total Amount
|
|
Commitment Expires in:
|
||||||||||||||||
Off-Balance Sheet Financial Instruments
|
|
Committed
|
|
<1 Year
|
|
1 – 3 Years
|
|
4 – 5 Years
|
|
>5 Years
|
||||||||||
Home equity line of credit commitments
|
|
$
|
501,127
|
|
|
$
|
196,452
|
|
|
$
|
70,610
|
|
|
$
|
5,503
|
|
|
$
|
228,562
|
|
Commercial commitment letters
|
|
31,667
|
|
|
31,667
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential loan origination
|
|
36,352
|
|
|
36,352
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Letters of credit
|
|
3,426
|
|
|
3,426
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other commitments to extend credit
|
|
1,151
|
|
|
1,151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Customer loan swaps - notional value
|
|
708,316
|
|
|
—
|
|
|
18,656
|
|
|
161,447
|
|
|
528,213
|
|
|||||
FHLBB advance interest rate swaps - notional value
|
|
25,000
|
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Junior subordinated debt interest rate swaps - notional value
|
|
43,000
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|
33,000
|
|
|||||
Fixed-rate mortgage interest rate lock commitments -notional value
|
|
24,753
|
|
|
24,753
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Forward delivery commitments - notional value
|
|
9,502
|
|
|
9,502
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
1,384,294
|
|
|
$
|
328,303
|
|
|
$
|
89,266
|
|
|
$
|
176,950
|
|
|
$
|
789,775
|
|
|
|
Total Amount
|
|
Payments Due per Period
|
||||||||||||||||
Contractual obligations and commitments
|
|
of Obligations
|
|
<1 Year
|
|
1 – 3 Years
|
|
4 – 5 Years
|
|
>5 Years
|
||||||||||
Operating leases
|
|
$
|
6,039
|
|
|
$
|
1,429
|
|
|
$
|
2,097
|
|
|
$
|
1,086
|
|
|
$
|
1,427
|
|
Capital leases
|
|
1,032
|
|
|
126
|
|
|
384
|
|
|
262
|
|
|
260
|
|
|||||
FHLBB borrowings - overnight
|
|
161,350
|
|
|
161,350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
FHLBB advances less than 90 days
|
|
135,000
|
|
|
135,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
FHLBB advances - other
|
|
10,000
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|||||
Retail repurchase agreements
|
|
256,274
|
|
|
256,274
|
|
|
—
|
|
|
—
|
|
|
|
|
|||||
Junior subordinated debentures
|
|
44,357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,357
|
|
|||||
Subordinated debentures
|
|
14,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,593
|
|
|||||
Other contractual obligations
|
|
2,215
|
|
|
2,215
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
630,860
|
|
|
$
|
556,394
|
|
|
$
|
12,481
|
|
|
$
|
1,348
|
|
|
$
|
60,637
|
|
|
|
Estimated Changes In
Net Interest Income |
||||
Rate Change from Year 1 — Base
|
|
March 31,
2018 |
|
March 31,
2017 |
||
Year 1
|
|
|
|
|
|
|
+200 basis points
|
|
0.23
|
%
|
|
(1.31
|
)%
|
-100 basis points
|
|
(2.16
|
)%
|
|
(1.75
|
)%
|
Year 2
|
|
|
|
|
||
+200 basis points
|
|
8.85
|
%
|
|
2.96
|
%
|
-100 basis points
|
|
(5.43
|
)%
|
|
(8.35
|
)%
|
Exhibit No.
|
|
Definition
|
10.1
*+
|
|
|
10.2
*+
|
|
|
10.3
*+
|
|
|
10.4
*+
|
|
|
10.5
+
|
|
|
10.6
+
|
|
|
10.7
+
|
|
|
31.1
*
|
|
|
31.2
*
|
|
|
32.1
**
|
|
|
32.2
**
|
|
|
101
|
|
XBRL (Extensible Business Reporting Language).
The following materials from Camden National Corporation’s Quarterly Report on Form 10-Q for the period ended March 31, 2018, formatted in XBRL: (i) Consolidated Statements of Condition - March 31, 2018 and December 31, 2017; (ii) Consolidated Statements of Income - Three Months Ended March 31, 2018 and 2017; (iii) Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2018 and 2017; (iv) Consolidated Statements of Changes in Shareholders’ Equity - Three Months Ended March 31, 2018 and 2017; (v) Consolidated Statements of Cash Flows - Three Months Ended March 31, 2018 and 2017; and (vi) Notes to the Unaudited Consolidated Financial Statements.
|
*
|
|
Filed herewith.
|
**
|
|
Furnished herewith.
|
+
|
|
Management contract or a compensatory plan or arrangement.
|
CAMDEN NATIONAL CORPORATION
|
|||
(Registrant)
|
|||
|
|||
/s/ Gregory A. Dufour
|
|
May 4, 2018
|
|
Gregory A. Dufour
|
|
Date
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Deborah A. Jordan
|
|
May 4, 2018
|
|
Deborah A. Jordan
|
|
Date
|
|
Chief Operating Officer, Chief Financial Officer and
|
|
|
|
Principal Financial & Accounting Officer
|
|
|
|
CAMDEN NATIONAL CORPORATION
|
|
|
|
|
|
By:
|
|
|
|
|
Dated:
|
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name and address:
|
|
|
|
|
|
|
|
NAME:
|
|
|
|
|
|
|
|
ADDRESS:
|
Incremental Number (Cumulative Number) of
Restricted Stock Units Vested
|
Vesting Date
|
()
|
|
()
|
|
()
|
|
()
|
|
()
|
|
|
CAMDEN NATIONAL CORPORATION
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name and address:
|
|
|
|
|
|
|
|
NAME:
|
|
|
|
|
|
|
|
ADDRESS:
|
|
|
CAMDEN NATIONAL CORPORATION
|
|
`
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name and address:
|
|
|
|
|
|
|
|
NAME:
|
|
|
|
|
|
|
|
ADDRESS:
|
Name of Optionee:
|
|
No. of Option Shares:
|
|
Option Exercise Price per Share:
|
$
|
Grant Date:
|
|
Expiration Date:
|
|
|
CAMDEN NATIONAL CORPORATION
|
|
|
|
|
|
By:
|
|
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
|
|
|
|
Optionee’s Signature
|
|
|
|
|
|
|
|
Optionee’s name and address:
|
|
|
|
|
|
|
|
NAME
|
|
|
|
ADDRESS
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Gregory A. Dufour
|
|
Gregory A. Dufour
|
|
President and Chief Executive Officer
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Deborah A. Jordan
|
|
Deborah A. Jordan
|
|
Chief Operating Officer, Chief Financial Officer and
|
|
Principal Financial & Accounting Officer
|
/s/ Gregory A. Dufour
|
|
May 4, 2018
|
Gregory A. Dufour
|
|
Date
|
President and Chief Executive Officer
|
|
|
/s/ Deborah A. Jordan
|
|
May 4, 2018
|
Deborah A. Jordan
|
|
Date
|
Chief Operating Officer, Chief Financial Officer and
|
|
|
Principal Financial & Accounting Officer
|
|
|