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) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, without par value | CAC | The NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
PAGE | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
ITEM 1. | FINANCIAL STATEMENTS | |||||||
Consolidated Statements of Condition (unaudited) - March 31, 2022 and December 31, 2021 | ||||||||
Consolidated Statements of Income (unaudited) - Three Months Ended March 31, 2022 and 2021 | ||||||||
Consolidated Statements of Comprehensive Income (unaudited) - Three Months Ended March 31, 2022 and 2021 | ||||||||
Consolidated Statements of Changes in Shareholders’ Equity (unaudited) - Three Months Ended March 31, 2022 and 2021 | ||||||||
Consolidated Statements of Cash Flows (unaudited) - Three Months Ended March 31, 2022 and 2021 | ||||||||
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 |
(In thousands, except number of shares) | March 31, 2022 | December 31, 2021 | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 53,875 | $ | 38,902 | ||||||||||
Interest-bearing deposits in other banks (including restricted cash) | 85,508 | 181,723 | ||||||||||||
Total cash, cash equivalents and restricted cash | 139,383 | 220,625 | ||||||||||||
Investments: | ||||||||||||||
Trading securities | 4,124 | 4,428 | ||||||||||||
Available-for-sale securities, at fair value (amortized cost of $1,516,057 and $1,508,981, respectively) | 1,421,809 | 1,507,486 | ||||||||||||
Held-to-maturity securities, at amortized cost (fair value of $1,300 and $1,380, respectively) | 1,290 | 1,291 | ||||||||||||
Other investments | 10,187 | 10,280 | ||||||||||||
Total investments | 1,437,410 | 1,523,485 | ||||||||||||
Loans held for sale, at fair value (book value of $6,818 and $5,786, respectively) | 6,705 | 5,815 | ||||||||||||
Loans | 3,534,218 | 3,431,474 | ||||||||||||
Less: allowance for credit losses on loans | (31,770) | (33,256) | ||||||||||||
Net loans | 3,502,448 | 3,398,218 | ||||||||||||
Goodwill | 94,697 | 94,697 | ||||||||||||
Core deposit intangible assets | 2,032 | 2,188 | ||||||||||||
Bank-owned life insurance | 97,816 | 97,241 | ||||||||||||
Premises and equipment, net | 37,226 | 37,775 | ||||||||||||
Deferred tax assets | 36,131 | 19,210 | ||||||||||||
Other assets | 66,567 | 101,102 | ||||||||||||
Total assets | $ | 5,420,415 | $ | 5,500,356 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Liabilities | ||||||||||||||
Deposits: | ||||||||||||||
Non-interest checking | $ | 1,200,807 | $ | 1,279,565 | ||||||||||
Interest checking | 1,440,390 | 1,351,736 | ||||||||||||
Savings and money market | 1,474,300 | 1,459,472 | ||||||||||||
Certificates of deposit | 299,865 | 309,648 | ||||||||||||
Brokered deposits | 161,302 | 208,468 | ||||||||||||
Total deposits | 4,576,664 | 4,608,889 | ||||||||||||
Short-term borrowings | 237,668 | 211,608 | ||||||||||||
Subordinated debentures | 44,331 | 44,331 | ||||||||||||
Accrued interest and other liabilities | 79,306 | 94,234 | ||||||||||||
Total liabilities | 4,937,969 | 4,959,062 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Shareholders’ Equity | ||||||||||||||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 14,746,410 and 14,739,956 shares on March 31, 2022 and December 31, 2021, respectively | 123,012 | 123,111 | ||||||||||||
Retained earnings | 435,347 | 424,412 | ||||||||||||
Accumulated other comprehensive loss: | ||||||||||||||
Net unrealized loss on available-for-sale debt securities, net of tax | (73,984) | (1,173) | ||||||||||||
Net unrealized gain (loss) on cash flow hedging derivative instruments, net of tax | 1,166 | (1,779) | ||||||||||||
Net unrecognized loss on postretirement plans, net of tax | (3,095) | (3,277) | ||||||||||||
Total accumulated other comprehensive loss | (75,913) | (6,229) | ||||||||||||
Total shareholders’ equity | 482,446 | 541,294 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 5,420,415 | $ | 5,500,356 |
Three Months Ended March 31, | ||||||||||||||
(In thousands, except number of shares and per share data) | 2022 | 2021 | ||||||||||||
Interest Income | ||||||||||||||
Interest and fees on loans | $ | 32,035 | $ | 30,560 | ||||||||||
Taxable interest on investments | 5,789 | 3,829 | ||||||||||||
Nontaxable interest on investments | 764 | 728 | ||||||||||||
Dividend income | 106 | 105 | ||||||||||||
Other interest income | 164 | 166 | ||||||||||||
Total interest income | 38,858 | 35,388 | ||||||||||||
Interest Expense | ||||||||||||||
Interest on deposits | 1,833 | 2,063 | ||||||||||||
Interest on borrowings | 131 | 156 | ||||||||||||
Interest on subordinated debentures | 529 | 805 | ||||||||||||
Total interest expense | 2,493 | 3,024 | ||||||||||||
Net interest income | 36,365 | 32,364 | ||||||||||||
Credit for credit losses | (1,075) | (1,956) | ||||||||||||
Net interest income after credit for credit losses | 37,440 | 34,320 | ||||||||||||
Non-Interest Income | ||||||||||||||
Debit card income | 2,924 | 2,736 | ||||||||||||
Service charges on deposit accounts | 1,833 | 1,539 | ||||||||||||
Income from fiduciary services | 1,631 | 1,526 | ||||||||||||
Mortgage banking income, net | 1,034 | 7,109 | ||||||||||||
Brokerage and insurance commissions | 994 | 953 | ||||||||||||
Bank-owned life insurance | 576 | 594 | ||||||||||||
Other income | 833 | 758 | ||||||||||||
Total non-interest income | 9,825 | 15,215 | ||||||||||||
Non-Interest Expense | ||||||||||||||
Salaries and employee benefits | 15,506 | 14,522 | ||||||||||||
Furniture, equipment and data processing | 3,132 | 3,027 | ||||||||||||
Net occupancy costs | 2,144 | 1,951 | ||||||||||||
Debit card expense | 1,066 | 986 | ||||||||||||
Consulting and professional fees | 1,007 | 863 | ||||||||||||
Regulatory assessments | 655 | 503 | ||||||||||||
Amortization of core deposit intangible assets | 156 | 164 | ||||||||||||
Other real estate owned and collection recoveries, net | (85) | (191) | ||||||||||||
Other expenses | 2,628 | 3,074 | ||||||||||||
Total non-interest expense | 26,209 | 24,899 | ||||||||||||
Income before income tax expense | 21,056 | 24,636 | ||||||||||||
Income Tax Expense | 4,261 | 4,896 | ||||||||||||
Net Income | $ | 16,795 | $ | 19,740 | ||||||||||
Per Share Data | ||||||||||||||
Basic earnings per share | $ | 1.14 | $ | 1.32 | ||||||||||
Diluted earnings per share | $ | 1.13 | $ | 1.31 | ||||||||||
Weighted average number of common shares outstanding | 14,741,271 | 14,916,387 | ||||||||||||
Diluted weighted average number of common shares outstanding | 14,822,332 | 14,994,534 | ||||||||||||
Cash dividends declared per share | $ | 0.40 | $ | 0.36 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net Income | $ | 16,795 | $ | 19,740 | ||||||||||
Other comprehensive loss: | ||||||||||||||
Net change in unrealized gain on available-for-sale securities, net of tax | (72,811) | (17,509) | ||||||||||||
Net change in unrealized loss on cash flow hedging derivatives, net of tax | 2,945 | 5,164 | ||||||||||||
Net change in other comprehensive income for supplemental executive retirement plan and other postretirement benefit plan, net of tax | 182 | 170 | ||||||||||||
Other comprehensive loss | (69,684) | (12,175) | ||||||||||||
Comprehensive (Loss) Income | $ | (52,889) | $ | 7,565 |
Three Months Ended | ||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
(In thousands, except number of shares and per share data) | Shares Outstanding | Amount | ||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 14,909,097 | $ | 131,072 | $ | 377,502 | $ | 20,740 | $ | 529,314 | |||||||||||||||||||||||
Net income | — | — | 19,740 | — | 19,740 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | (12,175) | (12,175) | |||||||||||||||||||||||||||
Stock-based compensation expense | — | 703 | — | — | 703 | |||||||||||||||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 19,337 | (80) | — | — | (80) | |||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | — | |||||||||||||||||||||||||||
Cash dividends declared ($0.36 per share) | — | — | (5,382) | — | (5,382) | |||||||||||||||||||||||||||
Balance at March 31, 2021 | 14,928,434 | $ | 131,695 | $ | 391,860 | $ | 8,565 | $ | 532,120 | |||||||||||||||||||||||
Balance at December 21, 2021 | 14,739,956 | $ | 123,111 | $ | 424,412 | $ | (6,229) | 541,294 | ||||||||||||||||||||||||
Net income | — | — | 16,795 | — | 16,795 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | (69,684) | (69,684) | |||||||||||||||||||||||||||
Stock-based compensation expense | — | 624 | — | — | 624 | |||||||||||||||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 19,540 | (114) | — | — | (114) | |||||||||||||||||||||||||||
Common stock repurchased | (13,086) | (609) | — | — | (609) | |||||||||||||||||||||||||||
Cash dividends declared ($0.40 per share) | — | — | (5,860) | — | (5,860) | |||||||||||||||||||||||||||
Balance at March 31, 2022 | 14,746,410 | $ | 123,012 | $ | 435,347 | $ | (75,913) | $ | 482,446 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Operating Activities | ||||||||||||||
Net Income | $ | 16,795 | $ | 19,740 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Originations of mortgage loans held for sale | (47,671) | (174,370) | ||||||||||||
Proceeds from the sale of mortgage loans | 47,771 | 198,799 | ||||||||||||
Gain on sale of mortgage loans, net of origination costs | (1,132) | (6,173) | ||||||||||||
Credit for credit losses | (1,075) | (1,956) | ||||||||||||
Depreciation and amortization expense | 899 | 927 | ||||||||||||
Investment securities amortization and accretion, net | 1,217 | 1,971 | ||||||||||||
Stock-based compensation expense | 624 | 703 | ||||||||||||
Amortization of core deposit intangible assets | 156 | 164 | ||||||||||||
Purchase accounting accretion, net | (80) | (234) | ||||||||||||
Net decrease in derivative collateral posted | 24,070 | 24,380 | ||||||||||||
Decrease in other assets | 998 | 591 | ||||||||||||
Increase (decrease) in other liabilities | 178 | (2,484) | ||||||||||||
Net cash provided by operating activities | 42,750 | 62,058 | ||||||||||||
Investing Activities | ||||||||||||||
Proceeds from available-for-sale debt securities | 69,572 | 94,697 | ||||||||||||
Purchase of available-for-sale debt securities | (77,865) | (118,707) | ||||||||||||
Net increase in loans | (102,976) | (17,277) | ||||||||||||
Purchase of Federal Home Loan Bank stock | (1,799) | — | ||||||||||||
Proceeds from sale of Federal Home Loan Bank stock | 1,892 | 1,329 | ||||||||||||
Purchase of premises and equipment | (393) | (320) | ||||||||||||
Recoveries of previously charged-off loans | 62 | 51 | ||||||||||||
Proceeds from the sale of other real estate owned | 287 | 350 | ||||||||||||
Net cash used in investing activities | (111,220) | (39,877) | ||||||||||||
Financing Activities | ||||||||||||||
Net (decrease) increase in deposits | (32,225) | 206,386 | ||||||||||||
Net proceeds from borrowings less than 90 days | 26,060 | 23,969 | ||||||||||||
Repayments of Federal Home Loan Bank long-term advances | — | (25,000) | ||||||||||||
Common stock repurchases | (542) | (11) | ||||||||||||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | (114) | (80) | ||||||||||||
Cash dividends paid on common stock | (5,911) | (4,934) | ||||||||||||
Finance lease payments | (40) | (38) | ||||||||||||
Net cash (used in) provided by financing activities | (12,772) | 200,292 | ||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (81,242) | 222,473 | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 220,625 | 145,774 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 139,383 | $ | 368,247 | ||||||||||
Supplemental information | ||||||||||||||
Interest paid | $ | 2,470 | $ | 3,117 | ||||||||||
Income taxes paid | 150 | 176 | ||||||||||||
Unsettled common stock repurchase | 67 | — | ||||||||||||
Transfer from premises to other real estate owned | — | 204 | ||||||||||||
Acronym | Description | Acronym | Description | |||||||||||||||||
AFS: | Available-for-sale | GAAP: | Generally accepted accounting principles in the United States | |||||||||||||||||
ALCO: | Asset/Liability Committee | GDP: | Gross domestic product | |||||||||||||||||
ACL: | Allowance for credit losses | HPFC: | Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank | |||||||||||||||||
AOCI: | Accumulated other comprehensive income (loss) | HTM: | Held-to-maturity | |||||||||||||||||
ASC: | Accounting Standards Codification | IRS: | Internal Revenue Service | |||||||||||||||||
ASU: | Accounting Standards Update | LGD: | Loss given default | |||||||||||||||||
Bank: | Camden National Bank, a wholly-owned subsidiary of Camden National Corporation | LIBOR: | London Interbank Offered Rate | |||||||||||||||||
BOLI: | Bank-owned life insurance | LTIP: | Long-Term Performance Share Plan | |||||||||||||||||
Board ALCO: | Board of Directors' Asset/Liability Committee | Management ALCO: | Management Asset/Liability Committee | |||||||||||||||||
CARES Act: | Coronavirus Aid, Relief, and Economic Security Act, signed into law in March 2020 in response to COVID-19 | MBS: | Mortgage-backed security | |||||||||||||||||
CCTA: | Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation | MSPP: | Management Stock Purchase Plan | |||||||||||||||||
CDs: | Certificate of deposits | N/A: | Not applicable | |||||||||||||||||
CECL: | Current Expected Credit Losses | N.M.: | Not meaningful | |||||||||||||||||
Company: | Camden National Corporation | OCC: | Office of the Comptroller of the Currency | |||||||||||||||||
CMO: | Collateralized mortgage obligation | OCI: | Other comprehensive income (loss) | |||||||||||||||||
CUSIP: | Committee on Uniform Securities Identification Procedures | OREO: | Other real estate owned | |||||||||||||||||
DCRP: | Defined Contribution Retirement Plan | OTTI: | Other-than-temporary impairment | |||||||||||||||||
EPS: | Earnings per share | PD: | Probability of default | |||||||||||||||||
FASB: | Financial Accounting Standards Board | SBA: | U.S. Small Business Administration | |||||||||||||||||
FDIC: | Federal Deposit Insurance Corporation | SBA PPP: | U.S. Small Business Administration Paycheck Protection Program | |||||||||||||||||
FHLB: | Federal Home Loan Bank | SERP: | Supplemental executive retirement plans | |||||||||||||||||
FHLBB: | Federal Home Loan Bank of Boston | SOFR: | Secured Overnight Financing Rate | |||||||||||||||||
FHLMC: | Federal Home Loan Mortgage Corporation | TDR: | Troubled-debt restructured loan | |||||||||||||||||
FNMA: | Federal National Mortgage Association | UBCT: | Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation | |||||||||||||||||
FRB: | Federal Reserve System Board of Governors | U.S.: | United States of America | |||||||||||||||||
FRBB: | Federal Reserve Bank of Boston |
(In thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $ | 8,585 | $ | — | $ | (915) | $ | 7,670 | ||||||||||||||||||
Obligations of states and political subdivisions | 113,388 | 587 | (2,019) | 111,956 | ||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 1,029,454 | 435 | (69,051) | 960,838 | ||||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 341,998 | 145 | (22,252) | 319,891 | ||||||||||||||||||||||
Subordinated corporate bonds | 22,632 | 55 | (1,233) | 21,454 | ||||||||||||||||||||||
Total AFS debt securities | $ | 1,516,057 | $ | 1,222 | $ | (95,470) | $ | 1,421,809 | ||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $ | 8,585 | $ | — | $ | (241) | $ | 8,344 | ||||||||||||||||||
Obligations of states and political subdivisions | 112,086 | 5,392 | — | 117,478 | ||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 1,003,869 | 7,856 | (11,468) | 1,000,257 | ||||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 361,781 | 2,835 | (5,767) | 358,849 | ||||||||||||||||||||||
Subordinated corporate bonds | 22,660 | 152 | (254) | 22,558 | ||||||||||||||||||||||
Total AFS debt securities | $ | 1,508,981 | $ | 16,235 | $ | (17,730) | $ | 1,507,486 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||
(In thousands, except number of holdings) | Number of Holdings | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 4 | $ | 3,033 | $ | (352) | $ | 4,637 | $ | (563) | $ | 7,670 | $ | (915) | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 30 | 46,149 | (2,019) | — | — | 46,149 | (2,019) | |||||||||||||||||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 215 | 819,454 | (58,095) | 99,504 | (10,956) | $ | 918,958 | (69,051) | ||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 98 | 196,036 | (10,751) | 102,752 | (11,501) | 298,788 | (22,252) | |||||||||||||||||||||||||||||||||||||
Subordinated corporate bonds | 12 | 19,433 | (1,199) | 966 | (34) | 20,399 | (1,233) | |||||||||||||||||||||||||||||||||||||
Total AFS debt securities | 359 | $ | 1,084,105 | $ | (72,416) | $ | 207,859 | $ | (23,054) | $ | 1,291,964 | $ | (95,470) | |||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 4 | $ | 8,344 | $ | (241) | $ | — | $ | — | $ | 8,344 | $ | (241) | |||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 113 | 659,851 | (8,999) | 61,978 | (2,469) | 721,829 | (11,468) | |||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 56 | 191,456 | (4,602) | 38,117 | (1,165) | 229,573 | (5,767) | |||||||||||||||||||||||||||||||||||||
Subordinated corporate bonds | 7 | 11,932 | (232) | 979 | (22) | 12,911 | (254) | |||||||||||||||||||||||||||||||||||||
Total AFS debt securities | 180 | $ | 871,583 | $ | (14,074) | $ | 101,074 | $ | (3,656) | $ | 972,657 | $ | (17,730) | |||||||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | 1,217 | $ | 1,227 | ||||||||||
Due after one year through five years | 8,625 | 8,560 | ||||||||||||
Due after five years through ten years | 88,087 | 86,586 | ||||||||||||
Due after ten years | 46,676 | 44,707 | ||||||||||||
Subtotal | 144,605 | 141,080 | ||||||||||||
Mortgage-related securities | 1,371,452 | 1,280,729 | ||||||||||||
Total | $ | 1,516,057 | $ | 1,421,809 |
(In thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,290 | $ | 10 | $ | — | $ | 1,300 | ||||||||||||||||||
Total HTM debt securities | $ | 1,290 | $ | 10 | $ | — | $ | 1,300 | ||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,291 | $ | 89 | $ | — | $ | 1,380 | ||||||||||||||||||
Total HTM debt securities | $ | 1,291 | $ | 89 | $ | — | $ | 1,380 |
(In thousands) | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||
Due after one year through five years | 866 | 875 | ||||||||||||
Due after five years through ten years | 424 | 425 | ||||||||||||
Due after ten years | — | — | ||||||||||||
Total | $ | 1,290 | $ | 1,300 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
FHLBB | $ | 4,813 | $ | 4,906 | ||||||||||
FRB | 5,374 | 5,374 | ||||||||||||
Total other investments | $ | 10,187 | $ | 10,280 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Commercial Loans: | ||||||||||||||
Commercial real estate - non-owner-occupied | $ | 1,181,622 | $ | 1,178,185 | ||||||||||
Commercial real estate - owner-occupied | 322,268 | 317,275 | ||||||||||||
Commercial | 403,352 | 363,695 | ||||||||||||
SBA PPP | 6,311 | 35,953 | ||||||||||||
Total commercial loans | 1,913,553 | 1,895,108 | ||||||||||||
Retail Loans: | ||||||||||||||
Residential real estate | 1,392,199 | 1,306,447 | ||||||||||||
Home equity | 209,647 | 210,403 | ||||||||||||
Consumer | 18,819 | 19,516 | ||||||||||||
Total retail loans | 1,620,665 | 1,536,366 | ||||||||||||
Total loans | $ | 3,534,218 | $ | 3,431,474 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Net unamortized fair value mark discount on acquired loans | $ | (513) | $ | (593) | ||||||||||
Net unamortized loan origination costs(1) | 4,936 | 3,110 | ||||||||||||
Total | $ | 4,423 | $ | 2,517 |
Commercial Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Non-Owner-Occupied | Owner- Occupied | Commercial | SBA PPP | Residential Real Estate | Home Equity | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||
At or For The Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, December 21, 2021 | $ | 18,834 | $ | 2,539 | $ | 4,183 | $ | 19 | $ | 6,133 | $ | 1,469 | $ | 79 | $ | 33,256 | ||||||||||||||||||||||||||||||||||
Loans charged off | — | — | (245) | — | — | — | (67) | (312) | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | 1 | 2 | 57 | — | — | 2 | 62 | |||||||||||||||||||||||||||||||||||||||||||
(Credit) provision for loan losses | (2,263) | (202) | 843 | (15) | 343 | (34) | 92 | (1,236) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2022 | $ | 16,572 | $ | 2,339 | $ | 4,838 | $ | 4 | $ | 6,476 | $ | 1,435 | $ | 106 | $ | 31,770 | ||||||||||||||||||||||||||||||||||
At or For The Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, December 31, 2020 | $ | 21,778 | $ | 2,832 | $ | 6,703 | $ | 69 | $ | 3,474 | $ | 2,616 | $ | 393 | $ | 37,865 | ||||||||||||||||||||||||||||||||||
Loans charged off | — | — | (799) | — | (92) | (162) | (111) | (1,164) | ||||||||||||||||||||||||||||||||||||||||||
Recoveries | — | 9 | 220 | — | 107 | 4 | 32 | 372 | ||||||||||||||||||||||||||||||||||||||||||
(Credit) provision for loan losses | (2,944) | (302) | (1,941) | (50) | 2,644 | (989) | (235) | (3,817) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance, December 31, 2021 | $ | 18,834 | $ | 2,539 | $ | 4,183 | $ | 19 | $ | 6,133 | $ | 1,469 | $ | 79 | $ | 33,256 |
(In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 74,125 | $ | 284,775 | $ | 168,474 | $ | 137,048 | $ | 114,745 | $ | 349,032 | $ | — | $ | — | $ | 1,128,199 | ||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | 170 | 7,427 | 279 | 116 | 7,173 | — | — | 15,165 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | 138 | 1,463 | 214 | 9,840 | 26,603 | — | — | 38,258 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - non-owner-occupied | 74,125 | 285,083 | 177,364 | 137,541 | 124,701 | 382,808 | — | — | 1,181,622 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 24,431 | 84,414 | 30,518 | 46,348 | 41,889 | 86,341 | — | — | 313,941 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | — | — | — | 3,363 | 2,040 | — | — | 5,403 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | 45 | — | 2,879 | — | — | 2,924 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - owner occupied | 24,431 | 84,414 | 30,518 | 46,393 | 45,252 | 91,260 | — | — | 322,268 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 32,660 | 83,095 | 41,233 | 41,933 | 22,172 | 37,822 | 104,222 | 34,552 | 397,689 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | 123 | 111 | 493 | 106 | 558 | 1,111 | 138 | 2,640 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | 20 | 313 | 262 | 425 | 1,432 | 332 | 239 | 3,023 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 32,660 | 83,238 | 41,657 | 42,688 | 22,703 | 39,812 | 105,665 | 34,929 | 403,352 | |||||||||||||||||||||||||||||||||||||||||||||||
SBA PPP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | — | 6,295 | 16 | — | — | — | — | — | 6,311 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total SBA PPP | — | 6,295 | 16 | — | — | — | — | — | 6,311 | |||||||||||||||||||||||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 133,167 | 591,512 | 264,479 | 90,410 | 57,105 | 251,035 | 913 | — | 1,388,621 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | — | — | — | — | 227 | — | — | 227 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | — | 63 | 3,288 | — | — | 3,351 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | 133,167 | 591,512 | 264,479 | 90,410 | 57,168 | 254,550 | 913 | — | 1,392,199 | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | 2,802 | 722 | 427 | 5,630 | 9,469 | 11,548 | 165,756 | 12,148 | 208,502 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | — | — | — | — | 40 | 191 | 724 | 190 | 1,145 | |||||||||||||||||||||||||||||||||||||||||||||||
Total home equity | 2,802 | 722 | 427 | 5,630 | 9,509 | 11,739 | 166,480 | 12,338 | 209,647 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | 1,946 | 5,916 | 2,926 | 2,409 | 823 | 2,511 | 2,261 | — | 18,792 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | — | — | 9 | 16 | — | 2 | — | — | 27 | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 1,946 | 5,916 | 2,935 | 2,425 | 823 | 2,513 | 2,261 | — | 18,819 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 269,131 | $ | 1,057,180 | $ | 517,396 | $ | 325,087 | $ | 260,156 | $ | 782,682 | $ | 275,319 | $ | 47,267 | $ | 3,534,218 |
(In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 286,428 | $ | 179,565 | $ | 161,695 | $ | 118,196 | $ | 96,169 | $ | 274,731 | $ | — | $ | — | $ | 1,116,784 | ||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | 171 | 7,266 | 286 | 119 | 4,294 | 10,590 | — | — | 22,726 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | 350 | 1,518 | 217 | 9,942 | 391 | 26,257 | — | — | 38,675 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - non-owner-occupied | 286,949 | 188,349 | 162,198 | 128,257 | 100,854 | 311,578 | — | — | 1,178,185 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 91,328 | 39,082 | 31,409 | 43,786 | 46,466 | 56,682 | — | — | 308,753 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | — | 3,396 | 362 | 1,708 | — | — | 5,466 | ||||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | 54 | — | 1,785 | 1,217 | — | — | 3,056 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate - owner occupied | 91,328 | 39,082 | 31,463 | 47,182 | 48,613 | 59,607 | — | — | 317,275 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 91,102 | 43,757 | 44,925 | 23,895 | 13,818 | 27,743 | 80,775 | 31,586 | 357,601 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | 145 | 117 | 590 | 115 | 383 | 222 | 967 | 244 | 2,783 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | 339 | 320 | 492 | 293 | 1,209 | 360 | 298 | 3,311 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 91,247 | 44,213 | 45,835 | 24,502 | 14,494 | 29,174 | 82,102 | 32,128 | 363,695 | |||||||||||||||||||||||||||||||||||||||||||||||
SBA PPP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 35,164 | 319 | — | — | — | — | — | — | 35,483 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | 470 | — | — | — | — | — | — | — | 470 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total SBA PPP | 35,634 | 319 | — | — | — | — | — | — | 35,953 | |||||||||||||||||||||||||||||||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | 586,637 | 281,804 | 103,228 | 63,403 | 46,696 | 219,983 | 903 | — | 1,302,654 | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention (Grade 7) | — | — | — | — | — | 230 | — | — | 230 | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | — | — | 3,563 | — | — | 3,563 | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful (Grade 9) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | 586,637 | 281,804 | 103,228 | 63,403 | 46,696 | 223,776 | 903 | — | 1,306,447 | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | 760 | 554 | 6,179 | 10,995 | 2,464 | 10,792 | 165,189 | 12,295 | 209,228 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | — | — | — | 41 | — | 174 | 847 | 113 | 1,175 | |||||||||||||||||||||||||||||||||||||||||||||||
Total home equity | 760 | 554 | 6,179 | 11,036 | 2,464 | 10,966 | 166,036 | 12,408 | 210,403 | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | 6,860 | 3,523 | 3,089 | 1,051 | 548 | 2,014 | 2,399 | — | 19,484 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-performing | — | 9 | 21 | — | — | 2 | — | — | 32 | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 6,860 | 3,532 | 3,110 | 1,051 | 548 | 2,016 | 2,399 | — | 19,516 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 1,099,415 | $ | 557,853 | $ | 352,013 | $ | 275,431 | $ | 213,669 | $ | 637,117 | $ | 251,440 | $ | 44,536 | $ | 3,431,474 |
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans Outstanding | Loans > 90 Days Past Due and Accruing | |||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | $ | 91 | $ | — | $ | 50 | $ | 141 | $ | 1,181,481 | $ | 1,181,622 | $ | — | ||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | — | — | 133 | 133 | 322,135 | 322,268 | ||||||||||||||||||||||||||||||||||||||
Commercial | 98 | 71 | 822 | 991 | 402,361 | 403,352 | — | |||||||||||||||||||||||||||||||||||||
SBA PPP | — | 1 | — | 1 | 6,310 | 6,311 | — | |||||||||||||||||||||||||||||||||||||
Residential real estate | 565 | 302 | 1,242 | 2,109 | 1,390,090 | 1,392,199 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 320 | 148 | 412 | 880 | 208,767 | 209,647 | — | |||||||||||||||||||||||||||||||||||||
Consumer | 42 | 8 | 27 | 77 | 18,742 | 18,819 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,116 | $ | 530 | $ | 2,686 | $ | 4,332 | $ | 3,529,886 | $ | 3,534,218 | $ | — | ||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | $ | — | $ | — | $ | 51 | $ | 51 | $ | 1,178,134 | $ | 1,178,185 | $ | — | ||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | 47 | — | 133 | 180 | 317,095 | 317,275 | — | |||||||||||||||||||||||||||||||||||||
Commercial | 282 | 174 | 787 | 1,243 | 362,452 | 363,695 | — | |||||||||||||||||||||||||||||||||||||
SBA PPP | — | 68 | — | 68 | 35,885 | 35,953 | — | |||||||||||||||||||||||||||||||||||||
Residential real estate | 379 | 475 | 1,210 | 2,064 | 1,304,383 | 1,306,447 | — | |||||||||||||||||||||||||||||||||||||
Home equity | 456 | 50 | 445 | 951 | 209,452 | 210,403 | — | |||||||||||||||||||||||||||||||||||||
Consumer | 95 | 1 | 32 | 128 | 19,388 | 19,516 | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,259 | $ | 768 | $ | 2,658 | $ | 4,685 | $ | 3,426,789 | $ | 3,431,474 | $ | — |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Non-Accrual Loans With an Allowance | Non-Accrual Loans Without an Allowance | Total Non-Accrual Loans | Non-Accrual Loans With an Allowance | Non-Accrual Loans Without an Allowance | Total Non-Accrual Loans | ||||||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | $ | 38 | $ | 12 | $ | 50 | $ | 38 | $ | 13 | $ | 51 | ||||||||||||||||||||||||||
Commercial real estate - owner-occupied | 86 | 47 | 133 | 86 | 47 | 133 | ||||||||||||||||||||||||||||||||
Commercial | 948 | 97 | 1,045 | 785 | 44 | 829 | ||||||||||||||||||||||||||||||||
Residential real estate | 1,672 | 380 | 2,052 | 1,780 | 327 | 2,107 | ||||||||||||||||||||||||||||||||
Home equity | 1,036 | 109 | 1,145 | 1,064 | 111 | 1,175 | ||||||||||||||||||||||||||||||||
Consumer | 27 | — | 27 | 32 | — | 32 | ||||||||||||||||||||||||||||||||
Total | $ | 3,807 | $ | 645 | $ | 4,452 | $ | 3,785 | $ | 542 | $ | 4,327 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Collateral Type | Total Collateral -Dependent Non-Accrual Loans | Collateral Type | Total Collateral -Dependent Non-Accrual Loans | |||||||||||||||||||||||||||||||||||
(In thousands) | Real Estate | General Business Assets | Real Estate | General Business Assets | ||||||||||||||||||||||||||||||||||
Residential real estate | $ | 329 | — | $ | 329 | $ | 268 | — | $ | 268 | ||||||||||||||||||||||||||||
Home equity | 109 | — | 109 | 111 | — | 111 | ||||||||||||||||||||||||||||||||
Total | $ | 438 | $ | — | $ | 438 | $ | 379 | $ | — | $ | 379 |
Number of Contracts | Recorded Investment | Specific Reserve | ||||||||||||||||||||||||||||||||||||
(In thousands, except number of contracts) | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | 1 | 1 | $ | 118 | $ | 118 | $ | 45 | $ | 43 | ||||||||||||||||||||||||||||
Commercial | 2 | 2 | 70 | 74 | — | — | ||||||||||||||||||||||||||||||||
Residential real estate | 19 | 19 | 2,303 | 2,341 | 332 | $ | 348 | |||||||||||||||||||||||||||||||
Consumer and home equity | 3 | 3 | 249 | 253 | 6 | 6 | ||||||||||||||||||||||||||||||||
Total | 25 | 25 | $ | 2,740 | $ | 2,786 | $ | 383 | $ | 397 |
Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Specific Reserve | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except number of contracts) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate concession and payment deferral | — | 1 | $ | — | $ | 159 | $ | — | $ | 170 | $ | — | $ | 56 | ||||||||||||||||||||||||||||||||||||
Total | — | 1 | $ | — | $ | 159 | $ | — | $ | 170 | $ | — | $ | 56 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Short-Term Borrowings: | ||||||||||||||
Customer repurchase agreements | $ | 237,668 | $ | 211,608 | ||||||||||
Total short-term borrowings | $ | 237,668 | $ | 211,608 | ||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Customer Repurchase Agreements(1)(2): | ||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | $ | 127,988 | $ | 120,846 | ||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 107,781 | 88,749 | ||||||||||||
Obligations of states and political subdivisions | 1,899 | 2,013 | ||||||||||||
Total | $ | 237,668 | $ | 211,608 | ||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Commitments to extend credit | $ | 888,975 | $ | 834,533 | ||||||||||
Standby letters of credit | 6,785 | 7,952 | ||||||||||||
Total | $ | 895,760 | $ | 842,485 |
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||||||||
(In thousands) | Notional Amount | Location | Fair Value | Notional Amount | Location | Fair Value | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts(1) | $ | 110,000 | Other assets | $ | 7,898 | $ | 133,000 | Accrued interest and other liabilities | $ | 6,426 | ||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 7,898 | $ | 6,426 | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Customer loan swaps(1) | $ | 324,805 | Other assets | $ | 7,843 | $ | 324,805 | Accrued interest and other liabilities | $ | 7,937 | ||||||||||||||||||||||||||||
Risk participation agreements | 25,211 | Other assets | — | 53,294 | Accrued interest and other liabilities | — | ||||||||||||||||||||||||||||||||
Fixed Rate mortgage interest rate lock commitments | 10,167 | Other assets | 134 | 17,415 | Accrued interest and other liabilities | 313 | ||||||||||||||||||||||||||||||||
Forward delivery commitments | 6,818 | Other assets | 246 | — | Accrued interest and other liabilities | — | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 8,223 | $ | 8,250 | ||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts(1) | $ | 160,000 | Other assets | $ | 5,589 | $ | 83,000 | Accrued interest and other liabilities | $ | 7,872 | ||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 5,589 | $ | 7,872 | ||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Customer loan swaps(1) | $ | 345,545 | Other assets | $ | 19,297 | $ | 345,545 | Accrued interest and other liabilities | $ | 19,485 | ||||||||||||||||||||||||||||
Risk participation agreements | 25,347 | Other assets | — | 53,704 | Accrued interest and other liabilities | — | ||||||||||||||||||||||||||||||||
Fixed rate mortgage interest rate lock commitments | 20,437 | Other assets | 371 | 8,587 | Accrued interest and other liabilities | 91 | ||||||||||||||||||||||||||||||||
Forward delivery commitments | 3,882 | Other assets | 86 | 1,903 | Accrued interest and other liabilities | 6 | ||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 19,754 | $ | 19,582 |
(Dollars in thousands) | Amount of Gain (Loss) Recognized in OCI on Derivative | Amount of Gain (Loss) Recognized in OCI Included Component | Amount of Gain (Loss) Recognized in OCI Excluded Component | Location of Gain (Loss) Recognized from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income Included Component | Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component | |||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (3,011) | $ | (3,011) | $ | — | Interest and fees on loans | $ | 382 | $ | 382 | $ | — | |||||||||||||||||||||||||||||||
Interest rate contracts | 3,488 | 3,488 | — | Interest on deposits | (149) | (149) | — | |||||||||||||||||||||||||||||||||||||
Interest rate contracts | 3,158 | 3,158 | — | Interest on subordinated debentures | (351) | (351) | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 3,635 | $ | 3,635 | $ | — | $ | (118) | $ | (118) | $ | — | ||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (802) | $ | (802) | $ | — | Interest and fees on loans | $ | 392 | $ | 392 | $ | — | |||||||||||||||||||||||||||||||
Interest rate contracts | 3,463 | 3,463 | — | Interest on deposits | (156) | (156) | — | |||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 3,731 | 3,731 | Interest on subordinated debentures | (422) | (422) | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,392 | $ | 6,392 | $ | — | $ | (186) | $ | (186) | $ | — | ||||||||||||||||||||||||||||||||
Location and Amount of Gain (Loss) Recognized in Income | ||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Interest and fees on loans | Interest on deposits | Interest on subordinated debentures | Interest and fees on loans | Interest on deposits | Interest on subordinated debentures | ||||||||||||||||||||||||||||||||
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded | $ | 32,035 | $ | 1,833 | $ | 529 | $ | 30,560 | $ | 2,063 | $ | 805 | ||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income | $ | 382 | $ | (149) | $ | (351) | $ | 392 | $ | (156) | $ | (422) | ||||||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - included component | $ | 382 | $ | (149) | $ | (351) | $ | 392 | $ | (156) | $ | (422) | ||||||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into income - excluded component | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Location of Gain Recognized in Income | Amount of Gain (Loss) Recognized in Income | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||||||||||||||
Customer loan swaps | Other expense | $ | 94 | $ | — | |||||||||||||||
Fixed rate mortgage interest rate lock commitments | Mortgage banking income, net | (459) | 945 | |||||||||||||||||
Forward delivery commitments | Mortgage banking income, net | 166 | 482 | |||||||||||||||||
Total | $ | (199) | $ | 1,427 |
Gross Amount Not Offset in the Consolidated Statements of Condition | ||||||||||||||||||||||||||||||||||||||
(In thousands) | Gross Amount Recognized in the Consolidated Statements of Condition | Gross Amount Offset in the Consolidated Statements of Condition | Net Amount Presented in the Consolidated Statements of Condition | Financial Instruments Pledged (Received)(1) | Cash Collateral Pledged (Received)(1) | Net Amount | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||
Customer loan swaps - commercial customer(2) | $ | 7,843 | $ | — | $ | 7,843 | $ | — | $ | — | $ | 7,843 | ||||||||||||||||||||||||||
Interest rate contracts(3) | 7,898 | — | 7,898 | — | (7,898) | — | ||||||||||||||||||||||||||||||||
Total | $ | 15,741 | $ | — | $ | 15,741 | $ | — | $ | (7,898) | $ | 7,843 | ||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||
Customer loan swaps - dealer bank(3) | $ | 7,937 | $ | — | $ | 7,937 | $ | — | $ | 3,950 | $ | 3,987 | ||||||||||||||||||||||||||
Interest rate contracts(3) | 6,426 | — | 6,426 | — | 6,426 | — | ||||||||||||||||||||||||||||||||
Total | $ | 14,363 | $ | — | $ | 14,363 | $ | — | $ | 10,376 | $ | 3,987 | ||||||||||||||||||||||||||
Customer repurchase agreements | $ | 237,668 | $ | — | $ | 237,668 | $ | 237,668 | $ | — | $ | — | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||
Customer loan swaps - commercial customer(2) | $ | 19,297 | $ | — | $ | 19,297 | $ | — | $ | — | $ | 19,297 | ||||||||||||||||||||||||||
Interest rate contracts(3) | 5,589 | — | 5,589 | — | (5,529) | 60 | ||||||||||||||||||||||||||||||||
Total | $ | 24,886 | $ | — | $ | 24,886 | $ | — | $ | (5,529) | $ | 19,357 | ||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||
Customer loan swaps - dealer bank(3) | $ | 19,485 | $ | — | 19,485 | $ | — | $ | 19,485 | $ | — | |||||||||||||||||||||||||||
Interest rate contracts(3) | 7,872 | — | 7,872 | — | 6,603 | 1,269 | ||||||||||||||||||||||||||||||||
Total | $ | 27,357 | $ | — | $ | 27,357 | $ | — | $ | 26,088 | $ | 1,269 | ||||||||||||||||||||||||||
Customer repurchase agreements | $ | 211,608 | $ | — | $ | 211,608 | $ | 211,608 | $ | — | $ | — |
March 31, 2022 | Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | Minimum Regulatory Provision to Be "Well Capitalized" | December 31, 2021 | Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | Minimum Regulatory Provision To Be "Well Capitalized" | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||||||
Camden National Corporation: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio | $ | 532,577 | 14.51 | % | 10.50 | % | 10.00 | % | $ | 522,714 | 14.71 | % | 10.50 | % | 10.00 | % | ||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio | 497,452 | 13.55 | % | 8.50 | % | 6.00 | % | 486,263 | 13.68 | % | 8.50 | % | 6.00 | % | ||||||||||||||||||||||||||||||||||||
Common equity Tier 1 risk-based capital ratio(1) | 454,452 | 12.38 | % | 7.00 | % | N/A | 443,263 | 12.47 | % | 7.00 | % | N/A | ||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio(1) | 497,452 | 9.30 | % | 4.00 | % | N/A | 486,263 | 8.92 | % | 4.00 | % | N/A | ||||||||||||||||||||||||||||||||||||||
Camden National Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio | $ | 496,376 | 13.56 | % | 10.50 | % | 10.00 | % | $ | 488,070 | 13.78 | % | 10.50 | % | 10.00 | % | ||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio | 461,251 | 12.60 | % | 8.50 | % | 8.00 | % | 451,620 | 12.75 | % | 8.50 | % | 8.00 | % | ||||||||||||||||||||||||||||||||||||
Common equity Tier 1 risk-based capital ratio | 461,251 | 12.60 | % | 7.00 | % | 6.50 | % | 451,620 | 12.75 | % | 7.00 | % | 6.50 | % | ||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital ratio | 461,251 | 8.65 | % | 4.00 | % | 5.00 | % | 451,620 | 8.31 | % | 4.00 | % | 5.00 | % |
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||||||||||||
AFS Debt Securities: | ||||||||||||||||||||||||||||||||||||||
Change in fair value | $ | (92,753) | $ | 19,942 | $ | (72,811) | $ | (22,305) | $ | 4,796 | $ | (17,509) | ||||||||||||||||||||||||||
Net change in fair value | (92,753) | 19,942 | (72,811) | (22,305) | 4,796 | (17,509) | ||||||||||||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||||||||||
Change in fair value | 3,635 | (782) | 2,853 | 6,392 | (1,374) | 5,018 | ||||||||||||||||||||||||||||||||
Less: reclassified AOCI loss into interest expense(1) | (500) | 108 | (392) | (578) | 124 | (454) | ||||||||||||||||||||||||||||||||
Less: reclassified AOCI gain into interest income(2) | 382 | (82) | 300 | 392 | (84) | 308 | ||||||||||||||||||||||||||||||||
Net change in fair value | 3,753 | (808) | 2,945 | 6,578 | (1,414) | 5,164 | ||||||||||||||||||||||||||||||||
Postretirement Plans: | ||||||||||||||||||||||||||||||||||||||
Amortization of settlement recognition of net loss and prior service credit(3) | 232 | (50) | 182 | 218 | (48) | 170 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | $ | (88,768) | $ | 19,084 | $ | (69,684) | $ | (15,509) | $ | 3,334 | $ | (12,175) |
(In thousands) | Net Unrealized Gains (Losses) on AFS Debt Securities | Net Unrealized Losses (Gains) on Cash Flow Hedges | Defined Benefit Postretirement Plans | AOCI | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | (1,173) | $ | (1,779) | $ | (3,277) | $ | (6,229) | ||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (72,811) | 2,853 | 187 | (69,771) | ||||||||||||||||||||||
Less: Amounts reclassified from AOCI | — | (92) | 5 | (87) | ||||||||||||||||||||||
Other comprehensive (loss) income | (72,811) | 2,945 | 182 | (69,684) | ||||||||||||||||||||||
Balance at March 31, 2022 | $ | (73,984) | $ | 1,166 | $ | (3,095) | $ | (75,913) | ||||||||||||||||||
Balance at December 31, 2020 | $ | 29,310 | $ | (4,626) | $ | (3,944) | $ | 20,740 | ||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (17,509) | 5,018 | 175 | (12,316) | ||||||||||||||||||||||
Less: Amounts reclassified from AOCI | — | (146) | 5 | (141) | ||||||||||||||||||||||
Other comprehensive (loss) income | (17,509) | 5,164 | 170 | (12,175) | ||||||||||||||||||||||
Balance at March 31, 2021 | $ | 11,801 | $ | 538 | $ | (3,774) | $ | 8,565 | ||||||||||||||||||
Location on Consolidated Statements of Income | Three Months Ended March 31, | |||||||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||||||||
Debit card interchange income | Debit card income | $ | 2,924 | $ | 2,736 | |||||||||||||||
Services charges on deposit accounts | Service charges on deposit accounts | 1,833 | 1,539 | |||||||||||||||||
Fiduciary services income | Income from fiduciary services | 1,631 | 1,526 | |||||||||||||||||
Investment program income | Brokerage and insurance commissions | 994 | 953 | |||||||||||||||||
Other non-interest income | Other income | 400 | 400 | |||||||||||||||||
Total non-interest income within the scope of ASC 606 | 7,782 | 7,154 | ||||||||||||||||||
Total non-interest income not in scope of ASC 606 | 2,043 | 8,061 | ||||||||||||||||||
Total non-interest income | $ | 9,825 | $ | 15,215 |
(In thousands) | Location on Consolidated Statements of Income | Three Months Ended March 31, | ||||||||||||||||||
Net periodic pension cost | 2022 | 2021 | ||||||||||||||||||
Service cost | Salaries and employee benefits | $ | 133 | $ | 126 | |||||||||||||||
Interest cost | Other expenses | 115 | 97 | |||||||||||||||||
Recognized net actuarial loss | Other expenses | 216 | 195 | |||||||||||||||||
Total | $ | 464 | $ | 418 |
(In thousands) | Location on Consolidated Statements of Income | Three Months Ended March 31, | ||||||||||||||||||
Net periodic postretirement benefit cost | 2022 | 2021 | ||||||||||||||||||
Service cost | Salaries and employee benefits | $ | 5 | $ | 7 | |||||||||||||||
Interest cost | Other expenses | 28 | 26 | |||||||||||||||||
Recognized net actuarial loss | Other expenses | 22 | 29 | |||||||||||||||||
Amortization of prior service credit | Other expenses | (6) | (6) | |||||||||||||||||
Total | $ | 49 | $ | 56 |
Three Months Ended March 31, | ||||||||||||||
(In thousands, except number of shares and per share data) | 2022 | 2021 | ||||||||||||
Net income | $ | 16,795 | $ | 19,740 | ||||||||||
Dividends and undistributed earnings allocated to participating securities(1) | (43) | (53) | ||||||||||||
Net income available to common shareholders | $ | 16,752 | $ | 19,687 | ||||||||||
Weighted-average common shares outstanding for basic EPS | 14,741,271 | 14,916,387 | ||||||||||||
Dilutive effect of stock-based awards(2) | 81,061 | 78,147 | ||||||||||||
Weighted-average common and potential common shares for diluted EPS | 14,822,332 | 14,994,534 | ||||||||||||
Earnings per common share: | ||||||||||||||
Basic EPS | $ | 1.14 | $ | 1.32 | ||||||||||
Diluted EPS | $ | 1.13 | $ | 1.31 | ||||||||||
Awards excluded from the calculation of diluted EPS(3): | ||||||||||||||
Performance-based awards | 1,027 | — | ||||||||||||
Stock options | — | 1,000 |
(In thousands) | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Company Determined Fair Value (Level 3) | ||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Trading securities | $ | 4,124 | $ | 4,124 | $ | — | $ | — | ||||||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 7,670 | — | 7,670 | — | ||||||||||||||||||||||
Obligations of states and political subdivisions | 111,956 | — | 111,956 | — | ||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 960,838 | — | 960,838 | — | ||||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 319,891 | — | 319,891 | — | ||||||||||||||||||||||
Subordinated corporate bonds | 21,454 | — | 21,454 | — | ||||||||||||||||||||||
Loans held for sale | 6,705 | — | 6,705 | — | ||||||||||||||||||||||
Customer loan swaps | 7,843 | — | 7,843 | — | ||||||||||||||||||||||
Interest rate contracts | 7,898 | — | 7,898 | — | ||||||||||||||||||||||
Fixed rate mortgage interest rate lock commitments | 134 | — | 134 | — | ||||||||||||||||||||||
Forward delivery commitments | 246 | — | 246 | — | ||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Trading securities | $ | 4,124 | $ | 4,124 | $ | — | $ | — | ||||||||||||||||||
Customer loan swaps | 7,937 | — | 7,937 | — | ||||||||||||||||||||||
Interest rate contracts | 6,426 | — | 6,426 | — | ||||||||||||||||||||||
Fixed rate mortgage interest rate lock commitments | 313 | — | 313 | — | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Trading securities | $ | 4,428 | $ | 4,428 | $ | — | $ | — | ||||||||||||||||||
AFS debt securities: | ||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 8,344 | — | 8,344 | — | ||||||||||||||||||||||
Obligations of states and political subdivisions | 117,478 | — | 117,478 | — | ||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 1,000,257 | — | 1,000,257 | — | ||||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 358,849 | — | 358,849 | — | ||||||||||||||||||||||
Subordinated corporate bonds | 22,558 | — | 22,558 | — | ||||||||||||||||||||||
Loans held for sale | 5,815 | — | 5,815 | — | ||||||||||||||||||||||
Customer loan swaps | 19,297 | — | 19,297 | — | ||||||||||||||||||||||
Interest rate contracts | 5,589 | — | 5,589 | — | ||||||||||||||||||||||
Fixed rate mortgage interest rate lock commitments | 371 | — | 371 | — | ||||||||||||||||||||||
Forward delivery commitments | 86 | — | 86 | — | ||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Trading securities | $ | 4,428 | $ | 4,428 | $ | — | $ | — | ||||||||||||||||||
Customer loan swaps | 19,485 | — | 19,485 | — | ||||||||||||||||||||||
Interest rate contracts | 7,872 | — | 7,872 | — | ||||||||||||||||||||||
Fixed rate mortgage interest rate lock commitments | 91 | — | 91 | — | ||||||||||||||||||||||
Forward delivery commitments | 6 | — | 6 | — |
(In thousands) | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Company Determined Fair Value (Level 3) | ||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Collateral-dependent loans | $ | 111 | $ | — | $ | — | $ | 111 | ||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Collateral-dependent loans | $ | 73 | $ | — | $ | — | $ | 73 | ||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Methodology | Unobservable Input | Discount | ||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Collateral-dependent loans: | ||||||||||||||||||||||||||
Specifically reserved | $ | 71 | Market approach appraisal of collateral | Estimated selling costs | 18% | |||||||||||||||||||||
Partially charged-off | $ | 40 | Market approach appraisal of collateral | Estimated selling costs | 11% | |||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Collateral-dependent loans | ||||||||||||||||||||||||||
Specifically reserved | $ | 73 | Market approach appraisal of collateral | Estimated selling costs | 11% |
Carrying Amount | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Prices (Level 2) | Company Determined Market Prices (Level 3) | ||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
HTM debt securities | $ | 1,290 | $ | 1,300 | $ | — | $ | 1,300 | $ | — | ||||||||||||||||||||||
Commercial real estate loans(1)(2) | 1,484,979 | 1,475,338 | — | — | 1,475,338 | |||||||||||||||||||||||||||
Commercial loans(2) | 398,514 | 396,965 | — | — | 396,965 | |||||||||||||||||||||||||||
SBA PPP loans(2) | 6,307 | 6,527 | — | — | 6,527 | |||||||||||||||||||||||||||
Residential real estate loans(2) | 1,385,723 | 1,322,230 | — | — | 1,322,230 | |||||||||||||||||||||||||||
Home equity loans(2) | 208,212 | 205,317 | — | — | 205,317 | |||||||||||||||||||||||||||
Consumer loans(2) | 18,713 | 16,826 | — | — | 16,826 | |||||||||||||||||||||||||||
Servicing assets | 2,494 | 4,191 | — | — | 4,191 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | $ | 349,875 | $ | 345,693 | $ | — | $ | 345,693 | $ | — | ||||||||||||||||||||||
Short-term borrowings | 237,668 | 237,622 | — | 237,622 | — | |||||||||||||||||||||||||||
Subordinated debentures | 44,331 | 32,805 | — | 32,805 | — | |||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
HTM debt securities | $ | 1,291 | $ | 1,380 | $ | — | $ | 1,380 | $ | — | ||||||||||||||||||||||
Commercial real estate loans(1)(2) | 1,474,087 | 1,435,794 | — | — | 1,435,794 | |||||||||||||||||||||||||||
Commercial loans(2) | 359,512 | 356,463 | — | — | 356,463 | |||||||||||||||||||||||||||
SBA PPP loans(2) | 35,934 | 37,133 | — | — | 37,133 | |||||||||||||||||||||||||||
Residential real estate loans(2) | 1,300,314 | 1,297,592 | — | — | 1,297,592 | |||||||||||||||||||||||||||
Home equity loans(2) | 208,934 | 205,920 | — | — | 208,934 | |||||||||||||||||||||||||||
Consumer loans(2) | 19,437 | 17,551 | — | — | 17,551 | |||||||||||||||||||||||||||
Servicing assets | 2,471 | 3,310 | — | — | 3,310 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | $ | 409,668 | $ | 409,264 | $ | — | $ | 409,264 | $ | — | ||||||||||||||||||||||
Short-term borrowings | 211,608 | 211,586 | — | 211,586 | — | |||||||||||||||||||||||||||
Subordinated debentures | 44,331 | 33,248 | — | 33,248 | — |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||||||||
Net income, as presented | $ | 16,795 | $ | 19,740 | ||||||||||
Add: amortization of core deposit intangible assets, net of tax(1) | 123 | 130 | ||||||||||||
Net income, adjusted for amortization of core deposit intangible assets | $ | 16,918 | $ | 19,870 | ||||||||||
Average equity, as presented | $ | 525,438 | $ | 533,645 | ||||||||||
Less: average goodwill and core deposit intangible assets | (96,815) | (97,463) | ||||||||||||
Average tangible equity | $ | 428,623 | $ | 436,182 | ||||||||||
Return on average equity | 12.96 | % | 15.00 | % | ||||||||||
Return on average tangible equity | 16.01 | % | 18.47 | % |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||||||||
Non-interest expense, as presented | $ | 26,209 | $ | 24,899 | ||||||||||
Less: prepayment penalty on borrowings | — | (514) | ||||||||||||
Adjusted non-interest expense | $ | 26,209 | $ | 24,385 | ||||||||||
Net interest income, as presented | $ | 36,365 | $ | 32,364 | ||||||||||
Add: effect of tax-exempt income(1) | 226 | 271 | ||||||||||||
Non-interest income, as presented | 9,825 | 15,215 | ||||||||||||
Adjusted net interest income plus non-interest income | $ | 46,416 | $ | 47,850 | ||||||||||
Ratio of non-interest expense to total revenues(2) | 56.74 | % | 52.33 | % | ||||||||||
Efficiency ratio | 56.47 | % | 50.96 | % |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net interest income, as presented | $ | 36,365 | $ | 32,364 | ||||||||||
Add: effect of tax-exempt income(1) | 226 | 271 | ||||||||||||
Net interest income (fully-taxable equivalent) | $ | 36,591 | $ | 32,635 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net income, as presented | $ | 16,795 | $ | 19,740 | ||||||||||
Add: income tax expense, as presented | 4,261 | 4,896 | ||||||||||||
Add: provision (credit) for credit losses, as presented | (1,075) | (1,956) | ||||||||||||
Earnings before income taxes and provision for credit losses | $ | 19,981 | $ | 22,680 | ||||||||||
Less: SBA PPP loan income | (1,033) | (1,877) | ||||||||||||
Earnings before income taxes, provision for credit losses and SBA PPP Loan income | $ | 18,948 | $ | 20,803 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Yield on interest-earning assets, as presented | 3.07 | % | 3.15 | % | ||||||||||
Add: effect of excess liquidity on yield on interest-earning assets | 0.04 | % | 0.10 | % | ||||||||||
Less: effect of SBA PPP loans on yield on interest-earning assets | (0.07) | % | (0.06) | % | ||||||||||
Adjusted yield on interest-earning assets | 3.04 | % | 3.19 | % |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net interest margin (fully-taxable equivalent), as presented | 2.87 | % | 2.88 | % | ||||||||||
Add: effect of excess liquidity on net interest margin (fully-taxable equivalent) | 0.04 | % | 0.10 | % | ||||||||||
Less: effect of SBA PPP loans on net interest margin (fully-taxable equivalent) | (0.07) | % | (0.07) | % | ||||||||||
Adjusted net interest margin (fully-taxable equivalent) | 2.84 | % | 2.91 | % |
(In thousands) | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
Total Loans, excluding SBA PPP Loans: | ||||||||||||||
Total loans, as presented | $ | 3,431,474 | $ | 3,219,822 | ||||||||||
Less: SBA PPP loans | (35,953) | (135,095) | ||||||||||||
Total loans, excluding SBA PPP loans | $ | 3,395,521 | $ | 3,084,727 | ||||||||||
ACL on Loans to Total Loans, excluding SBA PPP Loans: | ||||||||||||||
ACL on loans, as presented | $ | 33,256 | $ | 37,865 | ||||||||||
Less: ACL on loans allocated to SBA PPP loans | (18) | (69) | ||||||||||||
Adjusted ACL on loans | $ | 33,238 | $ | 37,796 | ||||||||||
ACL on loans to total loans | 0.97% | 1.18% | ||||||||||||
ACL on loans to total loans, excluding SBA PPP loans | 0.98% | 1.23% |
(In thousands, except number of shares, per share data and ratios) | March 31, 2022 | December 31, 2021 | ||||||||||||
Tangible Book Value Per Share: | ||||||||||||||
Shareholders’ equity, as presented | $ | 482,446 | $ | 541,294 | ||||||||||
Less: goodwill and other intangible assets | (96,729) | (96,885) | ||||||||||||
Tangible shareholders’ equity | $ | 385,717 | $ | 444,409 | ||||||||||
Shares outstanding at period end | 14,746,410 | 14,739,956 | ||||||||||||
Book value per share | $ | 32.72 | $ | 36.72 | ||||||||||
Tangible book value per share | $ | 26.16 | $ | 30.15 | ||||||||||
Tangible Common Equity Ratio: | ||||||||||||||
Total assets | $ | 5,420,415 | $ | 5,500,356 | ||||||||||
Less: goodwill and other intangible assets | (96,729) | (96,885) | ||||||||||||
Tangible assets | $ | 5,323,686 | $ | 5,403,471 | ||||||||||
Common equity ratio | 8.90 | % | 9.84 | % | ||||||||||
Tangible common equity ratio | 7.25 | % | 8.22 | % |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Total deposits | $ | 4,576,664 | $ | 4,608,889 | ||||||||||
Less: certificates of deposit | (299,865) | (309,648) | ||||||||||||
Less: brokered deposits | (161,302) | (208,468) | ||||||||||||
Core deposits | $ | 4,115,497 | $ | 4,090,773 |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Total average deposits | $ | 4,380,035 | $ | 3,770,314 | ||||||||||
Less: average certificates of deposit | (304,720) | (351,555) | ||||||||||||
Average core deposits | $ | 4,075,315 | $ | 3,418,759 |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Total loans, as presented | $ | 3,534,218 | $ | 3,431,474 | ||||||||||
Less: SBA PPP loans | (6,311) | (35,953) | ||||||||||||
Total loans, excluding SBA PPP loans | $ | 3,527,907 | $ | 3,395,521 | ||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Return on average assets (annualized) | 1.26 | % | 1.62 | % | ||||||||||
Return on average equity (annualized) | 12.96 | % | 15.00 | % | ||||||||||
Return on average tangible equity (annualized) (non-GAAP) | 16.01 | % | 18.47 | % | ||||||||||
Ratio of non-interest expense to total revenues | 56.74 | % | 52.33 | % | ||||||||||
Efficiency ratio (non-GAAP) | 56.47 | % | 50.96 | % | ||||||||||
Overhead ratio (non-interest expense divided by average assets) (annualized) | 1.93 | % | 2.02 | % |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ | 100,002 | $ | 33 | 0.13 | % | $ | 210,844 | $ | 47 | 0.09 | % | ||||||||||||||||||||||||||
Investments - taxable | 1,409,567 | 6,026 | 1.71 | % | 946,456 | 4,054 | 1.71 | % | ||||||||||||||||||||||||||||||
Investments - nontaxable(1) | 115,021 | 967 | 3.36 | % | 118,469 | 922 | 3.11 | % | ||||||||||||||||||||||||||||||
Loans(2): | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,489,304 | 13,559 | 3.64 | % | 1,382,794 | 12,374 | 3.58 | % | ||||||||||||||||||||||||||||||
Commercial(1) | 372,910 | 3,302 | 3.54 | % | 346,008 | 3,345 | 3.82 | % | ||||||||||||||||||||||||||||||
SBA PPP | 21,687 | 1,033 | 19.05 | % | 154,900 | 1,877 | 4.85 | % | ||||||||||||||||||||||||||||||
Municipal(1) | 15,221 | 130 | 3.46 | % | 24,133 | 198 | 3.33 | % | ||||||||||||||||||||||||||||||
Residential real estate | 1,347,427 | 11,652 | 3.46 | % | 1,083,101 | 10,078 | 3.72 | % | ||||||||||||||||||||||||||||||
Consumer and home equity | 226,731 | 2,382 | 4.26 | % | 268,711 | 2,764 | 4.17 | % | ||||||||||||||||||||||||||||||
Total loans | 3,473,280 | 32,058 | 3.70 | % | 3,259,647 | 30,636 | 3.76 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 5,097,870 | 39,084 | 3.07 | % | 4,535,416 | 35,659 | 3.15 | % | ||||||||||||||||||||||||||||||
Cash and due from banks | 47,820 | 51,554 | ||||||||||||||||||||||||||||||||||||
Other assets | 308,524 | 388,345 | ||||||||||||||||||||||||||||||||||||
Less: ACL | (33,111) | (37,926) | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,421,103 | $ | 4,937,389 | ||||||||||||||||||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
Non-interest checking | $ | 1,199,456 | $ | — | — | % | $ | 817,631 | $ | — | — | % | ||||||||||||||||||||||||||
Interest checking | 1,414,704 | 664 | 0.19 | % | 1,289,511 | 612 | 0.19 | % | ||||||||||||||||||||||||||||||
Savings | 750,899 | 76 | 0.04 | % | 626,591 | 64 | 0.04 | % | ||||||||||||||||||||||||||||||
Money market | 710,256 | 518 | 0.30 | % | 685,026 | 523 | 0.31 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 304,720 | 338 | 0.45 | % | 351,555 | 549 | 0.63 | % | ||||||||||||||||||||||||||||||
Total deposits | 4,380,035 | 1,596 | 0.15 | % | 3,770,314 | 1,748 | 0.19 | % | ||||||||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||||
Brokered deposits | 176,399 | 237 | 0.55 | % | 284,620 | 315 | 0.45 | % | ||||||||||||||||||||||||||||||
Customer repurchase agreements | 208,147 | 129 | 0.25 | % | 165,721 | 121 | 0.29 | % | ||||||||||||||||||||||||||||||
Subordinated debentures | 44,331 | 529 | 4.84 | % | 59,331 | 805 | 5.50 | % | ||||||||||||||||||||||||||||||
Other borrowings | 1,613 | 2 | 0.39 | % | 14,444 | 35 | 0.99 | % | ||||||||||||||||||||||||||||||
Total borrowings | 430,490 | 897 | 0.85 | % | 524,116 | 1,276 | 0.99 | % | ||||||||||||||||||||||||||||||
Total funding liabilities | 4,810,525 | 2,493 | 0.21 | % | 4,294,430 | 3,024 | 0.29 | % | ||||||||||||||||||||||||||||||
Other liabilities | 85,140 | 109,314 | ||||||||||||||||||||||||||||||||||||
Shareholders' equity | 525,438 | 533,645 | ||||||||||||||||||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 5,421,103 | $ | 4,937,389 | ||||||||||||||||||||||||||||||||||
Net interest income (fully-taxable equivalent) | 36,591 | 32,635 | ||||||||||||||||||||||||||||||||||||
Less: fully-taxable equivalent adjustment | (226) | (271) | ||||||||||||||||||||||||||||||||||||
Net interest income | $ | 36,365 | $ | 32,364 | ||||||||||||||||||||||||||||||||||
Net interest rate spread (fully-taxable equivalent) | 2.86 | % | 2.86 | % | ||||||||||||||||||||||||||||||||||
Net interest margin (fully-taxable equivalent) | 2.87 | % | 2.88 | % | ||||||||||||||||||||||||||||||||||
Adjusted net interest margin (fully-taxable equivalent) (non-GAAP) | 2.84 | % | 2.91 | % |
Three Months Ended March 31, 2022 vs. March 31, 2021 | ||||||||||||||||||||
Increase (Decrease) Due to: | Net Increase (Decrease) | |||||||||||||||||||
(In thousands) | Volume | Rate | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ | (25) | $ | 11 | $ | (14) | ||||||||||||||
Investments – taxable | 1,980 | (8) | 1,972 | |||||||||||||||||
Investments – nontaxable | (27) | 72 | 45 | |||||||||||||||||
Commercial real estate | 953 | 232 | 1,185 | |||||||||||||||||
Commercial | 259 | (302) | (43) | |||||||||||||||||
SBA PPP | (1,614) | 770 | (844) | |||||||||||||||||
Municipal | (73) | 5 | (68) | |||||||||||||||||
Residential real estate | 2,458 | (884) | 1,574 | |||||||||||||||||
Consumer and home equity | (432) | 50 | (382) | |||||||||||||||||
Total interest income (fully-taxable equivalent) | 3,479 | (54) | 3,425 | |||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest checking | 59 | (7) | 52 | |||||||||||||||||
Savings | 12 | — | 12 | |||||||||||||||||
Money market | 19 | (24) | (5) | |||||||||||||||||
Certificates of deposit | (73) | (138) | (211) | |||||||||||||||||
Brokered deposits | (120) | 42 | (78) | |||||||||||||||||
Customer repurchase agreements | 31 | (23) | 8 | |||||||||||||||||
Subordinated debentures | (203) | (73) | (276) | |||||||||||||||||
Other borrowings | (31) | (2) | (33) | |||||||||||||||||
Total interest expense | (306) | (225) | (531) | |||||||||||||||||
Net interest income (fully-taxable equivalent) | $ | 3,785 | $ | 171 | $ | 3,956 |
Income Statement Location | Three Months Ended March 31, | |||||||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||||||||
Loan fees(1) | Interest income | $ | 1,081 | $ | 1,440 | |||||||||||||||
Net fair value mark accretion from purchase accounting | Interest income and Interest expense | 81 | 234 | |||||||||||||||||
Recoveries on previously charged-off acquired loans | Interest income | 145 | 25 | |||||||||||||||||
Total | $ | 1,307 | $ | 1,699 |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||||||||
Credit for loan losses | $ | (1,236) | $ | (1,854) | $ | 618 | (33) | % | ||||||||||||||||||
Provision (credit) for credit losses on off-balance sheet credit exposures | 161 | (102) | 263 | N.M. | ||||||||||||||||||||||
Credit for credit losses | $ | (1,075) | $ | (1,956) | $ | 881 | (45) | % |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||||||||
Mortgage banking income, net(1) | $ | 1,034 | $ | 7,109 | $ | (6,075) | (85) | % | ||||||||||||||||||
Debit card income | 2,924 | 2,736 | 188 | 7 | % | |||||||||||||||||||||
Income from fiduciary services | 1,631 | 1,526 | 105 | 7 | % | |||||||||||||||||||||
Service charges on deposit accounts | 1,833 | 1,539 | 294 | 19 | % | |||||||||||||||||||||
Brokerage and insurance commissions | 994 | 953 | 41 | 4 | % | |||||||||||||||||||||
Bank-owned life insurance | 576 | 594 | (18) | (3) | % | |||||||||||||||||||||
Other income | 833 | 758 | 75 | 10 | % | |||||||||||||||||||||
Total non-interest income | $ | 9,825 | $ | 15,215 | $ | (5,390) | (35) | % | ||||||||||||||||||
Non-interest income as a percentage of total revenues | 21 | % | 32 | % |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ | % | ||||||||||||||||||||||
Salaries and employee benefits(1) | $ | 15,506 | $ | 14,522 | $ | 984 | 7 | % | ||||||||||||||||||
Furniture, equipment and data processing | 3,132 | 3,027 | 105 | 3 | % | |||||||||||||||||||||
Net occupancy costs | 2,144 | 1,951 | 193 | 10 | % | |||||||||||||||||||||
Debit card expense | 1,066 | 986 | 80 | 8 | % | |||||||||||||||||||||
Consulting and professional fees | 1,007 | 863 | 144 | 17 | % | |||||||||||||||||||||
Regulatory assessments | 655 | 503 | 152 | 30 | % | |||||||||||||||||||||
Amortization of core deposit intangible assets | 156 | 164 | (8) | (5) | % | |||||||||||||||||||||
Other real estate owned and collection (recoveries) costs, net | (85) | (191) | 106 | (55) | % | |||||||||||||||||||||
Other expenses(2) | 2,628 | 3,074 | (446) | (15) | % | |||||||||||||||||||||
Total non-interest expense | $ | 26,209 | $ | 24,899 | $ | 1,310 | 5 | % | ||||||||||||||||||
Ratio of non-interest expense to total revenues | 56.74 | % | 52.33 | % | ||||||||||||||||||||||
Efficiency ratio (non-GAAP) | 56.47 | % | 50.96 | % |
Change | ||||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ($) | (%) | ||||||||||||||||||||||
Commercial real estate - non-owner-occupied | $ | 1,181,622 | $ | 1,178,185 | $ | 3,437 | — | % | ||||||||||||||||||
Commercial real estate - owner-occupied | 322,268 | 317,275 | 4,993 | 2 | % | |||||||||||||||||||||
Commercial | 403,352 | 363,695 | 39,657 | 11 | % | |||||||||||||||||||||
SBA PPP | 6,311 | 35,953 | (29,642) | (82) | % | |||||||||||||||||||||
Residential real estate | 1,392,199 | 1,306,447 | 85,752 | 7 | % | |||||||||||||||||||||
Consumer and home equity | 228,466 | 229,919 | (1,453) | (1) | % | |||||||||||||||||||||
Total loans | $ | 3,534,218 | $ | 3,431,474 | $ | 102,744 | 3 | % | ||||||||||||||||||
Commercial Loan Portfolio | $ | 1,913,553 | $ | 1,895,108 | $ | 18,445 | 1 | % | ||||||||||||||||||
Retail Loan Portfolio | 1,620,665 | 1,536,366 | 84,299 | 5 | % | |||||||||||||||||||||
Commercial Portfolio Mix | 54 | % | 55 | % | ||||||||||||||||||||||
Retail Portfolio Mix | 46 | % | 45 | % |
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Non-accrual loans: | ||||||||||||||
Commercial real estate - non-owner-occupied | $ | 50 | $ | 51 | ||||||||||
Commercial real estate - owner-occupied | 133 | 133 | ||||||||||||
Commercial | 1,045 | 829 | ||||||||||||
Residential real estate | 2,052 | 2,107 | ||||||||||||
Consumer and home equity | 1,172 | 1,207 | ||||||||||||
Total non-accrual loans | 4,452 | 4,327 | ||||||||||||
Accruing TDRs not included above | 2,303 | 2,392 | ||||||||||||
Total non-performing loans | 6,755 | 6,719 | ||||||||||||
Other real estate owned | — | 165 | ||||||||||||
Total non-performing assets | $ | 6,755 | $ | 6,884 | ||||||||||
Total loans, excluding loans held for sale | $ | 3,534,218 | $ | 3,431,474 | ||||||||||
Total assets | $ | 5,420,415 | $ | 5,500,356 | ||||||||||
ACL on loans | $ | 31,770 | $ | 33,256 | ||||||||||
ACL on loans to non-accrual loans | 713.61 | % | 768.57 | % | ||||||||||
Non-accrual loans to total loans | 0.13 | % | 0.13 | % | ||||||||||
Non-performing loans to total loans | 0.19 | % | 0.20 | % | ||||||||||
Non-performing assets to total assets | 0.12 | % | 0.13 | % | ||||||||||
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Accruing loans 30-89 days past due: | ||||||||||||||
Commercial real estate - non-owner-occupied | $ | 91 | $ | — | ||||||||||
Commercial real estate - owner-occupied | — | 47 | ||||||||||||
Commercial | 169 | 552 | ||||||||||||
Residential real estate | 575 | 400 | ||||||||||||
Consumer and home equity | 466 | 509 | ||||||||||||
Total | $ | 1,301 | $ | 1,508 | ||||||||||
Total loans | $ | 3,534,218 | $ | 3,431,474 | ||||||||||
Accruing loans 30-89 days past due to total loans | 0.04 | % | 0.04 | % |
At or For The Three Months Ended March 31, | At or For The Year Ended December 31, 2021 | |||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||||||||||||||
ACL on loans at the beginning of the period | $ | 33,256 | $ | 37,865 | $ | 37,865 | ||||||||||||||
Credit for loan losses | (1,236) | (1,854) | (3,817) | |||||||||||||||||
Net charge-offs (recoveries)1 | ||||||||||||||||||||
Commercial real estate | (2) | (2) | (9) | |||||||||||||||||
Commercial | 189 | 104 | 579 | |||||||||||||||||
Residential real estate | — | 53 | (15) | |||||||||||||||||
Consumer and home equity | 63 | 81 | 237 | |||||||||||||||||
Total net charge-offs (recoveries) | 250 | 236 | 792 | |||||||||||||||||
ACL on loans at the end of the period | $ | 31,770 | $ | 35,775 | $ | 33,256 | ||||||||||||||
Components of ACL: | ||||||||||||||||||||
ACL on loans | $ | 31,770 | $ | 35,775 | $ | 33,256 | ||||||||||||||
ACL on off-balance sheet credit exposures | 3,355 | 2,466 | 3,195 | |||||||||||||||||
ACL at end of the period | $ | 35,125 | $ | 38,241 | $ | 36,451 | ||||||||||||||
Total loans, excluding loans held for sale | $ | 3,534,218 | $ | 3,237,046 | $ | 3,431,474 | ||||||||||||||
Average Loans | 3,473,280 | 3,259,647 | 3,368,378 | |||||||||||||||||
Net charge-offs to average loans | 0.03 | % | 0.03 | % | 0.02 | % | ||||||||||||||
Credit for loan losses (annualized) to average loans | (0.14) | % | (0.23) | % | (0.11) | % | ||||||||||||||
ACL on loans to total loans | 0.90 | % | 1.11 | % | 0.97 | % | ||||||||||||||
For The Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Total Charge-offs | Total Recoveries | Net Charge-Offs (Recoveries) | Average Loans | Ratio of Net Charge-Offs (Recoveries) to Average Loans | |||||||||||||||||||||||||||
2022: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | 2 | $ | (2) | 1,489,304 | — | % | |||||||||||||||||||||||
Commercial | 246 | 57 | 189 | 372,910 | 0.05 | % | ||||||||||||||||||||||||||
SBA PPP | — | — | — | 21,687 | — | % | ||||||||||||||||||||||||||
Residential real estate | — | — | 1,347,427 | — | % | |||||||||||||||||||||||||||
Consumer and home equity | 66 | 3 | 63 | 226,731 | 0.03 | % | ||||||||||||||||||||||||||
Total | $ | 312 | $ | 62 | $ | 250 | $ | 3,458,059 | 0.01 | % | ||||||||||||||||||||||
2021: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | 2 | $ | (2) | $ | 1,382,794 | — | % | ||||||||||||||||||||||
Commercial | 147 | 43 | 104 | 346,008 | 0.03 | % | ||||||||||||||||||||||||||
SBA PPP | — | — | — | 154,900 | — | % | ||||||||||||||||||||||||||
Residential real estate | 53 | — | 53 | 1,083,101 | — | % | ||||||||||||||||||||||||||
Consumer and home equity | 87 | 6 | 81 | 268,711 | 0.03 | % | ||||||||||||||||||||||||||
Total | $ | 287 | $ | 51 | $ | 236 | $ | 3,235,514 | 0.01 | % | ||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | — | $ | 9 | $ | (9) | $ | 1,412,884 | — | % | ||||||||||||||||||||||
Commercial | 799 | 220 | 579 | 361,256 | 0.16 | % | ||||||||||||||||||||||||||
SBA PPP | — | — | — | 118,414 | — | % | ||||||||||||||||||||||||||
Residential real estate | 92 | 107 | (15) | 1,156,698 | — | % | ||||||||||||||||||||||||||
Consumer and home equity | 273 | 36 | 237 | 250,061 | 0.09 | % | ||||||||||||||||||||||||||
Total | $ | 1,164 | $ | 372 | $ | 792 | $ | 3,299,313 | 0.02 | % |
At or For The Three Months Ended March 31, | At or For The Year Ended December 31, 2021 | |||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Financial Ratios | ||||||||||||||||||||
Average equity to average assets | 9.69 | % | 10.81 | % | 10.33 | % | ||||||||||||||
Common equity ratio | 8.90 | % | 10.46 | % | 9.84 | % | ||||||||||||||
Tangible common equity ratio (non-GAAP) | 7.25 | % | 8.71 | % | 8.22 | % | ||||||||||||||
Dividend payout ratio | 35.09 | % | 27.27 | % | 32.03 | % | ||||||||||||||
Per Share Data | ||||||||||||||||||||
Book value per share | $ | 32.72 | $ | 35.64 | $ | 36.72 | ||||||||||||||
Tangible book value per share (non-GAAP) | 26.16 | 29.12 | 30.15 | |||||||||||||||||
Dividends declared per share | 0.40 | 0.36 | 1.48 |
(In thousands) | CDs | |||||||
1 year or less | $ | 139,148 | ||||||
> 1 year | 160,717 | |||||||
Total | $ | 299,865 |
(In thousands) | FHLBB Advances | Customer Repurchase Agreements | Subordinated Debentures | Total | ||||||||||||||||||||||
1 year or less | $ | — | $ | 237,668 | $ | — | $ | 237,668 | ||||||||||||||||||
> 1 year | — | — | 44,331 | 44,331 | ||||||||||||||||||||||
Total | $ | — | $ | 237,668 | $ | 44,331 | $ | 281,999 |
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Due in 1 Year or Less | Due after 1 Year Through 5 Years | Due After 5 Years Through 15 Years | Due in More than 15 Years | Total | Percent of Total Loans | ||||||||||||||||||||||||||||||||
Maturity Distribution(1): | ||||||||||||||||||||||||||||||||||||||
Fixed Rate: | ||||||||||||||||||||||||||||||||||||||
Commercial real estate(2) | $ | 34,535 | $ | 91,193 | $ | 431,819 | $ | 75,397 | $ | 632,944 | 18 | % | ||||||||||||||||||||||||||
Commercial | 7,493 | 94,030 | 84,356 | 10,995 | 196,874 | 5 | % | |||||||||||||||||||||||||||||||
Residential real estate | 34,275 | 8,232 | 164,403 | 972,848 | 1,179,758 | 33 | % | |||||||||||||||||||||||||||||||
Consumer and home equity | 6,601 | 11,955 | 21,979 | 157,277 | 197,812 | 6 | % | |||||||||||||||||||||||||||||||
Total fixed rate | 82,904 | 205,410 | 702,557 | 1,216,517 | 2,207,388 | 62 | % | |||||||||||||||||||||||||||||||
Variable Rate: | ||||||||||||||||||||||||||||||||||||||
Commercial real estate(2) | 41,142 | 170,904 | 382,745 | 276,156 | 870,947 | 25 | % | |||||||||||||||||||||||||||||||
Commercial | 36,755 | 116,674 | 38,942 | 20,419 | 212,790 | 6 | % | |||||||||||||||||||||||||||||||
Residential real estate | 4,403 | 1,399 | 33,908 | 172,730 | 212,440 | 6 | % | |||||||||||||||||||||||||||||||
Consumer and home equity | 1,579 | 3,125 | 9,665 | 16,284 | 30,653 | 1 | % | |||||||||||||||||||||||||||||||
Total variable rate | 83,879 | 292,102 | 465,260 | 485,589 | 1,326,830 | 38 | % | |||||||||||||||||||||||||||||||
Total loans | $ | 166,783 | $ | 497,512 | $ | 1,167,817 | $ | 1,702,106 | $ | 3,534,218 | 100 | % |
(In thousands) | Contractual Cash Flows(1) | |||||||
1 year or less | $ | 196,859 | ||||||
> 1 year | 1,226,240 | |||||||
Total | $ | 1,423,099 |
(In thousands) | Total Amount | Payments Due per Period | ||||||||||||||||||
Contractual obligations and commitments | Committed | <1 Year | 1 – 3 Years | |||||||||||||||||
Operating leases | $ | 3,637 | $ | 1,322 | $ | 2,315 | ||||||||||||||
Finance leases | 936 | 309 | 627 | |||||||||||||||||
Other contractual obligations | 1,942 | 1,942 | — | |||||||||||||||||
Total | $ | 6,515 | $ | 3,573 | $ | 2,942 |
Estimated Changes In Net Interest Income | ||||||||||||||
Rate Change from Year 1 — Base | March 31, 2022 | March 31, 2021 | ||||||||||||
Year 1 | ||||||||||||||
+200 basis points | (0.79) | % | 2.61 | % | ||||||||||
-100 basis points | (0.24) | % | (0.94) | % | ||||||||||
Year 2 | ||||||||||||||
+200 basis points | 6.04 | % | 10.03 | % | ||||||||||
-100 basis points | (1.91) | % | (9.80) | % | ||||||||||
Exhibit No. | Definition | |||||||
101* | iXBRL (Inline eXtensible Business Reporting Language). The following materials from Camden National Corporation’s Quarterly Report on Form 10-Q for the period ended March 31, 2022, formatted in iXBRL: (i) Consolidated Statements of Condition - March 31, 2022 and December 31, 2021; (ii) Consolidated Statements of Income - Three Months Ended March 31, 2022 and 2021; (iii) Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2022 and 2021; (iv) Consolidated Statements of Changes in Shareholders’ Equity - Three Months Ended March 31, 2022 and 2021; (v) Consolidated Statements of Cash Flows - Three Months Ended March 31, 2022 and 2021; and (vi) Notes to the Unaudited Consolidated Financial Statements. | |||||||
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
† | Management contract or a compensatory plan or arrangement. |
CAMDEN NATIONAL CORPORATION | |||||||||||
(Registrant) | |||||||||||
/s/ Gregory A. Dufour | May 5, 2022 | ||||||||||
Gregory A. Dufour | Date | ||||||||||
President and Chief Executive Officer (Principal Executive Officer) | |||||||||||
/s/ Michael R. Archer | May 5, 2022 | ||||||||||
Michael R. Archer | Date | ||||||||||
Chief Financial Officer and Principal Financial & Accounting Officer | |||||||||||
Name of Grantee: | |||||
No. of Shares: | |||||
Grant Date: |
Incremental Number (Cumulative Number) of Shares of Restricted Stock Vested | Vesting Date | ||||
[●] | [DATE] | ||||
[●] | [DATE] | ||||
[●] | [DATE] |
Dated: __________________________________ | _______________________________________ Grantee’s Signature |
Name of Grantee: | |||||
No. of Shares: | |||||
Grant Date: |
Incremental Number (Cumulative Number) of Shares of Restricted Stock Vested | Vesting Date | ||||
[●] | [DATE] | ||||
[●] | [DATE] | ||||
[●] | [DATE] |
Dated: __________________________ | _______________________________________ Grantee’s Signature | |||||||
Name of Grantee: | |||||
No. of Shares: | |||||
Grant Date: |
Dated: ____________________________ | ____________________________________________________ Grantee’s Signature |
Incremental Number (Cumulative Number) of Restricted Stock Units Vested | Vesting Date | ||||
[●] | [DATE] | ||||
[●] | [DATE] | ||||
[●] | [DATE] | ||||
[●] | [DATE] | ||||
[●] | [DATE] |
CAMDEN NATIONAL CORPORATION | ||||||||
By: | ___________________________________ | |||||||
Title: |
Dated: | _____________________________ | ______________________________________________ | |||||||||
Grantee’s Signature |
Name of Grantee: | |||||
No. of Performance Share Units: | |||||
Grant Date: | |||||
Long-Term Performance Period: |
CAMDEN NATIONAL CORPORATION | |||||
By: | ______________________________________ | ||||
Title: |
Dated: _________________________ | _____________________________________ | ||||
Grantee’s Signature | |||||
Incremental (Aggregate) Number | Exercisability Date | |||||||
[●] | DATE | |||||||
[●] | DATE | |||||||
[●] | DATE | |||||||
[●] | DATE |
CAMDEN NATIONAL CORPORATION | |||||
By: | _______________________________ | ||||
Title: |
Dated: _________________________ | ____________________________________ | ||||
Optionee’s Signature |
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/ Michael R. Archer | |||||
Michael R. Archer | |||||
Chief Financial Officer and Principal Financial & Accounting Officer |
/s/ Gregory A. Dufour | May 5, 2022 | |||||||
Gregory A. Dufour | Date | |||||||
President and Chief Executive Officer |
/s/ Michael R. Archer | May 5, 2022 | |||||||
Michael R. Archer | Date | |||||||
Chief Financial Officer and Principal Financial & Accounting Officer |