EX-99.1 2 ex991earningsreleaseq324.htm EX-99.1 Document
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CONTACT:                                
Michael Archer
Executive Vice President
Chief Financial Officer
Camden National Corporation
(800) 860-8821
marcher@CamdenNational.bank

FOR IMMEDIATE RELEASE


Camden National Corporation Reports Third Quarter 2024 Earnings of $13.1 Million and Diluted EPS of $0.90

Net Interest Margin Expansion and Robust Asset Quality Drive a Strong Quarter

CAMDEN, Maine, October 29, 2024/PRNewswire/--Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”) today reported earnings for the quarter ended September 30, 2024 of $13.1 million and diluted earnings per share ("EPS") of $0.90, an increase of 9% and 11%, respectively, over the second quarter of 2024.

The release of the Company’s quarterly financial results follows its September 10, 2024, announcement of the pending merger with Northway Financial, Inc. (“Northway”), the parent company of Northway Bank, which is subject to Northway shareholder and customary regulatory approvals. The merger will create a combined franchise with 74 branches serving attractive markets throughout a contiguous footprint in New Hampshire and Maine, with approximately $7.0 billion in assets, $5.1 billion in loans, $5.5 billion in deposits, and $2.0 billion of Assets Under Administration (AUA) as of June 30, 2024. On a combined basis, the merger is expected to be approximately 19.9% accretive to Camden National’s 2025 earnings per share and 32.7% accretive to Camden National’s 2026 earnings per share.

Excluding merger and acquisition costs incurred through September 30, 2024, on a non-GAAP basis, net income for the third quarter of 2024 was $13.6 million, and core EPS was $0.94, an increase of 14% and 16%, respectively, over the second quarter of 2024.

“The pending merger we announced just last month marks an important step in our journey to expand in a contiguous market with a bank that shares a similar culture, consistent credit and risk profiles, and a deep commitment to our communities,” said Simon Griffiths, president and chief executive officer of Camden National Corporation.

Regarding the Company’s third-quarter financial results, Griffiths commented, “Our outstanding results are driven by strong momentum, complemented by our continued exceptional credit and risk management and robust capital positions. We are confident that our strategic investments in talent, technology, products, and services will continue to benefit us as macroeconomic conditions improve.”

For the nine months ended September 30, 2024, the Company reported net income of $38.3 million and diluted EPS of $2.62, compared to $34.9 million and $2.39, respectively, for the nine months ended September 30, 2023.

On a non-GAAP basis, core net income for the nine months ended September 30, 2024 was $38.2 million and core EPS was $2.61, compared to $40.6 million and $2.77, respectively, for the same period in 2023.

THIRD QUARTER 2024 HIGHLIGHTS

•Our net interest margin for the third quarter of 2024 was 2.46%, an increase of 10 basis points over the second quarter of 2024.

•For the third quarter of 2024, our return on average assets was 0.91%, our return on average equity was 10.04% and, on a non-GAAP basis, our return on average tangible equity was 12.40%. Excluding merger and acquisition costs, on a non-GAAP basis, our core return on average assets was 0.95% and core return on average tangible equity was 12.94%.

•Our asset quality continues to be very strong, highlighted by loans 30-89 days past due improving since June 30, 2024, by 2 basis points to 0.03% of total loans, and non-performing loans improving by 6 basis points in the third quarter to 0.17% of total loans at September 30, 2024.

•Our capital position remained strong with regulatory capital ratios well in excess of required regulatory levels. As of September 30, 2024, our common equity ratio was 9.22% and, on a non-GAAP basis, our tangible common equity ratio was 7.69%, an increase of 34 basis points and 35 basis points, respectively, since June 30, 2024.

FINANCIAL CONDITION

As of September 30, 2024 and June 30, 2024, total assets were $5.7 billion.

Investments totaled $1.2 billion on September 30, 2024, an increase of 2% since June 30, 2024. Our strategy throughout the year has been primarily to redeploy investment cash flows to fund loan growth at current market interest rates to maximize our earning-asset yield and support net interest margin expansion. In the third quarter of 2024, the increase in investment balances was driven by the change in the interest rate environment that resulted in a $22.4 million increase in the fair value of our available-for-sale (“AFS”) investment portfolio. As of September 30, 2024 and June 30, 2024, the duration of the Company's securities was 5.3 years and 5.5 years, respectively, and specifically, the AFS investment portfolio duration at September 30, 2024 and June 30, 2024 was 4.3 years and 4.5 years, respectively.

Loans totaled $4.1 billion on September 30, 2024, a decrease of $22.6 million since June 30, 2024. The decrease in loan balances for the third quarter of 2024 was driven by a 7% decrease in our commercial loans due to a few larger loan payoffs. In the third quarter of 2024, we sold 64% of our residential mortgage production, an increase from 52% in the second quarter of 2024. Overall, our loan pipelines continue to be solid and see activity within our markets across both retail and commercial customers. As of September 30, 2024, our committed loan pipeline totaled $109.3 million.

Asset quality continues to be a strength of the Company’s financial position. We continue to review our loan portfolio for any potential concerns and, to-date, we have not identified any signs of systemic stress or increased risks as of September 30, 2024. On September 30, 2024, loans 30-89 days past due were 0.03% of total loans, a decrease of 2 basis points from June 30, 2024. Annualized net charge-offs for the third quarter of 2024 decreased by 1 basis point from the second quarter of 2024 to 0.03% of average loans. The Company’s allowance for credit losses ("ACL") on loans was 0.86% as of September 30, 2024 and June 30, 2024. On September 30, 2024, the ACL was 5.1 times the total non-performing loans, compared to 3.7 times as of June 30, 2024.


Deposits totaled $4.6 billion on September 30, 2024, an increase of 1% since June 30, 2024. During the third quarter of 2024, on a non-GAAP basis, core deposits grew 2% as we benefited from normal seasonal deposit inflows during the summer months within our markets, as well as benefited from 8% savings deposits growth primarily due to the introduction of a high-yield savings product earlier in 2024.

On September 30, 2024, uninsured and uncollateralized1 deposits accounted for 15.3% of total deposits, and available liquidity sources were 2.0 times uninsured and uncollateralized deposits.

In August 2024, we prepaid our remaining Bank Term Funding Program ("BTFP") borrowings of $170.0 million and entered into two interest rate swaps on $150.0 million of borrowings to reduce borrowing costs and extend the term of our borrowings. In doing so, we refinanced borrowings and lowered the rate from 4.76% to 4.09%.

As of September 30, 2024, the Company's regulatory capital ratios were each well in excess of regulatory capital requirements. The Company's common equity ratio was 9.22%, and, on a non-GAAP basis, its tangible common equity ratio was 7.69%, compared to 8.88% and 7.34%, respectively, at June 30, 2024.

The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.07%, based on the Company's closing share price of $41.32 as reported by NASDAQ on September 30, 2024, payable on October 31, 2024, to shareholders of record on October 15, 2024.

The Company did not repurchase any shares of its common stock during the third quarter of 2024. Through the nine months ended September 30, 2024, it repurchased 50,000 shares of its common stock at an average price of $32.19 per share.

FINANCIAL OPERATING RESULTS (Q3 2024 vs. Q2 2024)

Net income for the third quarter of 2024 was $13.1 million, an increase of $1.1 million, or 9%, compared to the second quarter of 2024. The increase was driven by the increase in net interest income of 4% between periods. Excluding merger and acquisition costs associated with the announced acquisition of Northway in September 2024, on a non-GAAP basis, core net income for the third quarter of 2024 increased $1.7 million, or 14%, over the second quarter of 2024.

Net interest income for the third quarter of 2024 was $33.6 million, an increase of $1.4 million, or 4%, compared to the second quarter of 2024. The increase was driven by the 10 basis point margin expansion between periods to 2.46% for the third quarter of 2024.

Provision expense of $239,000 was recorded for the third quarter of 2024, consisting of provision for loan losses of $283,000 and a credit for unfunded commitments of $44,000. The Company maintained an ACL to loans coverage ratio of 0.86% for the third quarter of 2024, consistent with the second quarter of 2024.

Non-interest income for the third quarter of 2024 was $11.4 million, an increase of $761,000, or 7%, over the second quarter of 2024. The increase between periods was driven by (1) an increase in mortgage banking income of $457,000 as the Company sold $62.4 million of residential mortgages in the third quarter of 2024, an increase of 17%, and the positive change in fair value on loans held for sale and loan pipelines; (2) an increase in back-to-back loan swap fee income of $133,000; and (3) an increase in debit card income of $100,000.

Non-interest expense for the third quarter of 2024 was $28.9 million, an increase of $1.6 million, or 6%, compared to the second quarter of 2024. The primary drivers for the increase were: (1) an increase in salaries and employee benefits of $944,000, which was driven by an increase in headcount due to seasonal and strategic hires, an increase in incentive accruals, and a one-time increase in employer-related taxes; and (2) merger and acquisition costs associated with the announced acquisition of Northway in September 2024 of $727,000. The increases were
1 Uncollateralized deposits are customer deposits for which the Company has not pledged any of its assets, including investment securities, or provided any other type of guarantee

partially offset by lower consulting and professional fees of $361,000, driven by the timing of annual director equity grants in the second quarter of each year. Our GAAP efficiency ratio for the third quarter of 2024 was 64.23% and non-GAAP efficiency ratio was 62.39%, compared to 63.77% and 63.53% for the second quarter of 2024, respectively.

Q3 2024 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, October 29, 2024 to discuss its third quarter 2024 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (Domestic):            (833) 470-1428
Live dial-in (All other locations):        (929) 526-1599
Participant access code:            504894
Live webcast:                https://events.q4inc.com/attendee/685424551

A link to the live webcast will be available on Camden National's website under "About — Investor Relations" at CamdenNational.bank prior to the meeting, and a replay of the webcast will be available on Camden National’s website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company, with $5.7 billion in assets. Founded in 1875, Camden National Bank has 57 branches in Maine and New Hampshire, is a full-service community bank offering the latest digital banking, complemented by award-winning, personalized service. Additional information is available at CamdenNational.bank. Member FDIC. Equal Housing Lender.

Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National's ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements in response to recent developments affecting the banking sector; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential

effects of the war in Ukraine, conflict in the Middle East and other notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possible materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as: core net income; core diluted earnings per share; core return on average assets; core return on average equity; pre-tax, pre-provision income; return on average tangible equity and core return on average tangible equity; the efficiency and tangible common equity ratios; tangible book value per share; core deposits and average core deposits. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.



Selected Financial Data
(unaudited)
At or For The
Three Months Ended		At or For The
Nine Months Ended
(In thousands, except number of shares and per share data)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Financial Condition Data
Loans$4,116,729 $4,139,361 $4,058,413 $4,116,729 $4,058,413 
Total assets5,745,180 5,724,380 5,779,675 5,745,180 5,779,675 
Deposits4,575,226 4,514,020 4,678,406 4,575,226 4,678,406 
Shareholders' equity529,900 508,286 463,298 529,900 463,298 
Operating Data and Per Share Data
Net income $13,073 $11,993 $9,787 $38,338 $34,903 
Core net income (non-GAAP)(1)
13,647 11,993 14,002 38,193 40,570 
Pre-tax, pre-provision income (non-GAAP)(1)
16,093 15,519 11,449 45,845 45,087 
Diluted EPS
0.90 0.81 0.67 2.62 2.39 
Core diluted EPS (non-GAAP)(1)
0.94 0.81 0.96 2.61 2.77 
Profitability Ratios
Return on average assets0.91 %0.84 %0.68 %0.89 %0.82 %
Core return on average assets (non-GAAP)(1)
0.95 %0.84 %0.97 %0.89 %0.95 %
Return on average equity10.04 %9.60 %8.25 %10.13 %10.00 %
Core return on average equity (non-GAAP)(1)
10.48 %9.60 %11.80 %10.09 %11.63 %
Return on average tangible equity (non-GAAP)(1)
12.40 %11.96 %10.48 %12.60 %12.72 %
Core return on average tangible equity (non-GAAP)(1)
12.94 %11.96 %14.94 %12.55 %14.77 %
GAAP efficiency ratio64.23 %63.77 %69.60 %64.58 %63.82 %
Efficiency ratio (non-GAAP)(1)
62.39 %63.53 %60.63 %63.78 %60.87 %
Net interest margin (fully-taxable equivalent)2.46 %2.36 %2.39 %2.37 %2.44 %
Asset Quality Ratios
ACL on loans to total loans0.86 %0.86 %0.90 %0.86 %0.90 %
Non-performing loans to total loans0.17 %0.23 %0.16 %0.17 %0.16 %
Loans 30-89 days past due to total loans
0.03 %0.05 %0.09 %0.03 %0.09 %
Annualized net charge-offs to average loans0.03 %0.04 %0.01 %0.03 %0.03 %
Capital Ratios
Common equity ratio9.22 %8.88 %8.02 %9.22 %8.02 %
Tangible common equity ratio (non-GAAP)(1)
7.69 %7.34 %6.47 %7.69 %6.47 %
Tier 1 leverage capital ratio9.84 %9.64 %9.35 %9.84 %9.35 %
Total risk-based capital ratio14.85 %14.46 %14.19 %14.85 %14.19 %
(1) This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).












Consolidated Statements of Condition Data
(unaudited)
(In thousands)September 30,
2024		June 30,
2024		September 30,
2023		% Change Sep 2024 vs. Jun 2024% Change Sep 2024 vs. Sep 2023
ASSETS   
Cash, cash equivalents and restricted cash$139,512 $105,560 $211,514 32 %(34)%
Investments:   
Trading securities5,141 4,959 4,195 4 %23 %
Available-for-sale securities, at fair value
603,211 579,534 589,003 4 %2 %
Held-to-maturity securities, at amortized cost
526,251 533,600 549,961 (1)%(4)%
Other investments22,513 17,105 14,459 32 %56 %
Total investments1,157,116 1,135,198 1,157,618 2 %— %
Loans held for sale, at fair value
11,706 14,321 11,187 (18)%5 %
Loans:
Commercial real estate1,707,923 1,697,979 1,653,288 1 %3 %
Commercial382,507 409,682 400,031 (7)%(4)%
Residential real estate1,762,395 1,768,357 1,752,401 — %1 %
Consumer and home equity263,904 263,343 252,693 — %4 %
Total loans4,116,729 4,139,361 4,058,413 (1)%1 %
      Less: allowance for credit losses on loans(35,414)(35,412)(36,407)— %(3)%
       Net loans4,081,315 4,103,949 4,022,006 (1)%1 %
Goodwill and core deposit intangible assets95,251 95,390 95,816 — %(1)%
Other assets260,280 269,962 281,534 (4)%(8)%
Total assets$5,745,180 $5,724,380 $5,779,675 — %(1)%
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Liabilities  
Deposits:  
Non-interest checking$940,702 $921,605 $1,023,239 2 %(8)%
Interest checking1,445,828 1,465,560 1,579,991 (1)%(8)%
Savings and money market1,466,541 1,399,464 1,389,180 5 %6 %
Certificates of deposit553,481 576,563 552,111 (4)%— %
Brokered deposits168,674 150,828 133,885 12 %26 %
Total deposits4,575,226 4,514,020 4,678,406 1 %(2)%
Short-term borrowings516,336 552,606 470,140 (7)%10 %
Junior subordinated debentures44,331 44,331 44,331 — %— %
Accrued interest and other liabilities79,387 105,137 123,500 (24)%(36)%
Total liabilities5,215,280 5,216,094 5,316,377 — %(2)%
Commitments and Contingencies 
Shareholders’ Equity  
Common stock, no par value
116,072 115,543 114,842 — %1 %
Retained earnings500,927 493,974 478,664 1 %5 %
Accumulated other comprehensive loss:  
Net unrealized loss on debt securities, net of tax (91,349)(110,308)(139,228)(17)%(34)%
Net unrealized gain on cash flow hedging derivative instruments, net of tax4,506 9,327 9,343 (52)%(52)%
Net unrecognized loss on postretirement plans, net of tax(256)(250)(323)2 %(21)%
Total accumulated other comprehensive loss(87,099)(101,231)(130,208)(14)%(33)%
Total shareholders’ equity529,900 508,286 463,298 4 %14 %
Total liabilities and shareholders’ equity$5,745,180 $5,724,380 $5,779,675 — %(1)%











Consolidated Statements of Income Data
(unaudited)
For The
Three Months Ended
(In thousands, except per share data)September 30,
2024		June 30,
2024		September 30,
2023		% Change Sep 2024 vs. Jun 2024% Change Sep 2024 vs. Sep 2023
Interest Income
Interest and fees on loans$55,484 $53,422 $50,115 4 %11 %
Taxable interest on investments6,622 6,807 5,814 (3)%14 %
Nontaxable interest on investments462 461 748 — %(38)%
Dividend income389 521 302 (25)%29 %
Other interest income764 951 690 (20)%11 %
Total interest income63,721 62,162 57,669 3 %10 %
Interest Expense
Interest on deposits25,051 24,169 20,969 4 %19 %
Interest on borrowings4,549 5,285 3,577 (14)%27 %
Interest on junior subordinated debentures534 524 539 2 %(1)%
Total interest expense30,134 29,978 25,085 1 %20 %
Net interest income33,587 32,184 32,584 4 %3 %
Provision (credit) for credit losses239 650 (574)(63)%(142)%
Net interest income after provision (credit) for credit losses33,348 31,534 33,158 6 %1 %
Non-Interest Income
Debit card income3,169 3,069 3,130 3 %1 %
Service charges on deposit accounts2,168 2,113 2,040 3 %6 %
Income from fiduciary services1,817 1,870 1,641 (3)%11 %
Brokerage and insurance commissions1,414 1,441 1,217 (2)%16 %
Mortgage banking income, net973 516 583 89 %67 %
Bank-owned life insurance709 694 644 2 %10 %
Net loss on sale of securities— — (5,335)— %N.M.
Other income1,156 942 1,152 23 %— %
Total non-interest income11,406 10,645 5,072 7 %125 %
Non-Interest Expense
Salaries and employee benefits16,545 15,601 14,744 6 %12 %
Furniture, equipment and data processing3,578 3,497 3,382 2 %6 %
Net occupancy costs1,890 1,981 1,804 (5)%5 %
Debit card expense1,368 1,311 1,318 4 %4 %
Consulting and professional fees788 1,149 897 (31)%(12)%
Regulatory assessments784 813 861 (4)%(9)%
Merger and acquisition costs
727 — — N.M.N.M.
Amortization of core deposit intangible assets139 139 148 — %(6)%
Other real estate owned and collection costs, net
94 47 (34)100 %(376)%
Other expenses2,987 2,772 3,087 8 %(3)%
Total non-interest expense28,900 27,310 26,207 6 %10 %
Income before income tax expense15,854 14,869 12,023 7 %32 %
Income Tax Expense2,781 2,876 2,236 (3)%24 %
Net Income$13,073 $11,993 $9,787 9 %34 %
Per Share Data
Basic earnings per share$0.90 $0.82 $0.67 10 %34 %
Diluted earnings per share$0.90 $0.81 $0.67 11 %34 %
N.M. = Not meaningful











Consolidated Statements of Income Data
(unaudited)
For the
Nine Months Ended		% Change Sep 2024 vs. Sep 2023
(In thousands, except per share data)September 30,
2024		September 30,
2023
Interest Income
Interest and fees on loans$160,615 $144,092 11 %
Taxable interest on investments20,456 17,629 16 %
Nontaxable interest on investments1,388 2,273 (39)%
Dividend income1,222 788 55 %
Other interest income2,385 1,667 43 %
Total interest income186,066 166,449 12 %
Interest Expense
Interest on deposits72,398 56,046 29 %
Interest on borrowings15,032 9,249 63 %
Interest on junior subordinated debentures1,592 1,600 (1)%
Total interest expense89,022 66,895 33 %
Net interest income97,044 99,554 (3)%
(Credit) provision for credit losses(1,213)1,531 (179)%
Net interest income after (credit) provision for credit losses98,257 98,023 — %
Non-Interest Income
Debit card income9,104 9,147 — %
Service charges on deposit accounts6,308 5,737 10 %
Income from fiduciary services5,436 5,016 8 %
Brokerage and insurance commissions4,094 3,462 18 %
Mortgage banking income, net2,297 1,889 22 %
Bank-owned life insurance2,086 1,849 13 %
Net loss on sale of securities— (5,335)N.M.
Other income3,048 3,283 (7)%
Total non-interest income32,373 25,048 29 %
Non-Interest Expense
Salaries and employee benefits48,100 44,605 8 %
Furniture, equipment and data processing10,704 9,772 10 %
Net occupancy costs5,941 5,735 4 %
Debit card expense3,943 3,781 4 %
Consulting and professional fees2,797 3,327 (16)%
Regulatory assessments2,454 2,574 (5)%
Merger and acquisition costs
727 — N.M.
Amortization of core deposit intangible assets417 444 (6)%
Other real estate owned and collection costs, net151 (25)(704)%
Other expenses8,338 9,302 (10)%
Total non-interest expense83,572 79,515 5 %
Income before income tax expense47,058 43,556 8 %
Income Tax Expense8,720 8,653 1 %
Net Income$38,338 $34,903 10 %
Per Share Data
Basic earnings per share$2.63 $2.39 10 %
Diluted earnings per share$2.62 $2.39 10 %
N.M. = Not meaningful












Quarterly Average Balance and Yield/Rate Analysis
(unaudited)
Average BalanceYield/Rate
For The Three Months EndedFor The Three Months Ended
(Dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		June 30,
2024		September 30,
2023
Assets
Interest-earning assets:
Interest-bearing deposits in other banks and other interest-earning assets$48,914 $50,266 $48,401 4.66 %6.06 %4.04 %
Investments - taxable1,138,979 1,162,941 1,177,367 2.53 %2.58 %2.14 %
Investments - nontaxable(1)
61,864 61,794 102,872 3.78 %3.78 %3.68 %
Loans(2):
Commercial real estate1,706,509 1,701,431 1,658,125 5.41 %5.09 %4.84 %
Commercial(1)
375,944 387,337 391,491 6.51 %6.51 %6.08 %
Municipal(1)
17,186 16,351 18,888 5.17 %4.84 %4.41 %
Residential real estate1,780,665 1,772,707 1,762,860 4.53 %4.48 %4.18 %
Consumer and home equity264,178 260,384 252,357 7.96 %7.93 %7.74 %
     Total loans 4,144,482 4,138,210 4,083,721 5.29 %5.14 %4.85 %
Total interest-earning assets5,394,239 5,413,211 5,412,361 4.69 %4.58 %4.23 %
Other assets317,319 323,065 304,439 
Total assets$5,711,558 $5,736,276 $5,716,800 
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking$934,403 $901,774 $1,019,450 — %— %— %
Interest checking1,440,374 1,479,201 1,584,314 2.56 %2.52 %2.42 %
Savings679,118 624,034 661,126 0.95 %0.52 %0.14 %
Money market760,977 760,844 721,423 3.46 %3.41 %2.85 %
Certificates of deposit565,063 583,282 497,301 3.85 %3.90 %3.05 %
Total deposits4,379,935 4,349,135 4,483,614 2.09 %2.05 %1.67 %
Borrowings:
Brokered deposits156,618 150,799 161,623 5.25 %5.28 %5.07 %
Customer repurchase agreements190,936 185,729 193,297 1.92 %1.81 %1.69 %
Junior subordinated debentures44,331 44,331 44,331 4.79 %4.75 %4.83 %
Other borrowings336,899 401,144 263,705 4.28 %4.46 %4.14 %
Total borrowings728,784 782,003 662,956 3.90 %4.00 %3.70 %
Total funding liabilities5,108,719 5,131,138 5,146,570 2.35 %2.35 %1.93 %
Other liabilities84,617 102,658 99,480 
Shareholders' equity518,222 502,480 470,750 
Total liabilities & shareholders' equity$5,711,558 $5,736,276 $5,716,800 
Net interest rate spread (fully-taxable equivalent)2.34 %2.23 %2.30 %
Net interest margin (fully-taxable equivalent)2.46 %2.36 %2.39 %
(1) Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.
(2) Non-accrual loans and loans held for sale are included in total average loans.
















Year-to-Date Average Balance and Yield/Rate Analysis
(unaudited)
Average BalanceYield/Rate
For The Nine Months EndedFor The Nine Months Ended
(Dollars in thousands)September 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Assets
Interest-earning assets:
Interest-bearing deposits in other banks and other interest-earning assets$47,893 $30,002 5.05 %4.78 %
Investments - taxable1,163,118 1,209,000 2.55 %2.09 %
Investments - nontaxable(1)
62,014 104,518 3.78 %3.67 %
Loans(2):
Commercial real estate1,696,882 1,658,188 5.15 %4.73 %
Commercial(1)
384,402 402,331 6.35 %5.80 %
Municipal(1)
16,067 17,467 4.82 %4.01 %
Residential real estate1,775,502 1,742,340 4.47 %4.01 %
Consumer and home equity260,635 253,137 7.93 %7.46 %
     Total loans 4,133,488 4,073,463 5.15 %4.69 %
Total interest-earning assets5,406,513 5,416,983 4.57 %4.09 %
Other assets315,387 288,783 
Total assets$5,721,900 $5,705,766 
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking$923,207 $1,031,700 — %— %
Interest checking1,469,812 1,637,231 2.54 %2.23 %
Savings634,478 693,468 0.57 %0.10 %
Money market762,131 704,360 3.39 %2.51 %
Certificates of deposit577,007 409,909 3.84 %2.54 %
Total deposits4,366,635 4,476,668 2.04 %1.46 %
Borrowings:
Brokered deposits146,969 206,206 5.28 %4.64 %
Customer repurchase agreements186,401 189,532 1.78 %1.42 %
Junior subordinated debentures44,331 44,331 4.80 %4.83 %
Other borrowings379,751 237,546 4.41 %4.07 %
Total borrowings757,452 677,615 3.96 %3.55 %
Total funding liabilities5,124,087 5,154,283 2.32 %1.74 %
Other liabilities92,361 84,920 
Shareholders' equity505,452 466,563 
Total liabilities & shareholders' equity$5,721,900 $5,705,766 
Net interest rate spread (fully-taxable equivalent)2.25 %2.35 %
Net interest margin (fully-taxable equivalent)2.37 %2.44 %
(1) Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.
(2) Non-accrual loans and loans held for sale are included in total average loans.












Asset Quality Data
(unaudited)
(In thousands)At or for the
Nine Months Ended
September 30,
2024		At or for the
Six Months Ended
June 30,
2024		At or for the
Three Months Ended
March 31,
2024		At or for the
Year Ended
December 31,
2023		At or for the
Nine Months Ended
September 30,
2023
Non-accrual loans:
Residential real estate$2,497 $2,497 $2,473 $2,539 $2,775 
Commercial real estate130 79 205 386 92 
Commercial2,057 4,409 1,980 1,725 1,083 
Consumer and home equity666 810 1,000 798 674 
Total non-accrual loans5,350 7,795 5,658 5,448 4,624 
Accruing troubled-debt restructured loans prior to adoption of ASU 2022-02
1,645 1,846 1,973 1,990 1,997 
Total non-performing loans6,995 9,641 7,631 7,438 6,621 
Other real estate owned— — — — — 
Total non-performing assets$6,995 $9,641 $7,631 $7,438 $6,621 
Loans 30-89 days past due:
Residential real estate$216 $400 $797 $1,290 $751 
Commercial real estate239 678 92 740 188 
Commercial578 539 537 2,007 2,260 
Consumer and home equity358 628 618 922 603 
Total loans 30-89 days past due$1,391 $2,245 $2,044 $4,959 $3,802 
ACL on loans at the beginning of the period$36,935 $36,935 $36,935 $36,922 $36,922 
(Credit) provision for loan losses
(693)(976)(1,164)1,174 288 
Charge-offs:
Residential real estate— — — 18 18 
Commercial real estate— — — 58 58 
Commercial1,157 763 309 1,560 1,101 
Consumer and home equity83 55 36 91 63 
Total charge-offs 1,240 818 345 1,727 1,240 
Total recoveries (412)(271)(187)(566)(437)
Net charge-offs828 547 158 1,161 803 
ACL on loans at the end of the period$35,414 $35,412 $35,613 $36,935 $36,407 
Components of ACL:
ACL on loans$35,414 $35,412 $35,613 $36,935 $36,407 
ACL on off-balance sheet credit exposures(1)
2,743 2,787 2,325 2,353 2,670 
ACL, end of period$38,157 $38,199 $37,938 $39,288 $39,077 
Ratios:
Non-performing loans to total loans0.17 %0.23 %0.19 %0.18 %0.16 %
Non-performing assets to total assets0.12 %0.17 %0.13 %0.13 %0.11 %
ACL on loans to total loans0.86 %0.86 %0.86 %0.90 %0.90 %
Net charge-offs to average loans (annualized):
Quarter-to-date0.03 %0.04 %0.02 %0.04 %0.01 %
Year-to-date0.03 %0.03 %0.02 %0.03 %0.03 %
ACL on loans to non-performing loans506.28 %367.31 %466.69 %496.57 %549.87 %
Loans 30-89 days past due to total loans0.03 %0.05 %0.05 %0.12 %0.09 %
(1) Presented within accrued interest and other liabilities on the consolidated statements of condition.












Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)
Core Net Income; Core Diluted Earnings per Share; Core Return on Average Assets; and Core Return on Average Equity:
For the
Three Months Ended		For the
Nine Months Ended
(In thousands, except number of shares, per share data and ratios)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Core Net Income:
Net income, as presented$13,073 $11,993 $9,787 $38,338 $34,903 
Adjustment for net loss on sale of securities— — 5,335 — 5,335 
Adjustment for Signature Bank bond (recovery) write-off— — — (910)1,838 
Adjustment for merger and acquisition costs
727 — — 727 — 
Tax impact of above adjustments(1)
(153)— (1,120)38 (1,506)
Core net income
$13,647 $11,993 $14,002 $38,193 $40,570 
Core Diluted Earnings per Share:
Diluted earnings per share, as presented$0.90 $0.81 $0.67 $2.62 $2.39 
Adjustment for net loss on sale of securities— — 0.37 — 0.37 
Adjustment for Signature Bank bond (recovery) write-off— — — (0.06)0.13 
Adjustment for merger and acquisition costs
0.05 — — 0.05 — 
Tax impact of above adjustments(1)
(0.01)— (0.08)— (0.12)
Core diluted earnings per share
$0.94 $0.81 $0.96 $2.61 $2.77 
Core Return on Average Assets:
Return on average assets, as presented0.91 %0.84 %0.68 %0.89 %0.82 %
Adjustment for net loss on sale of securities— %— %0.37 %— %0.13 %
Adjustment for Signature Bank bond (recovery) write-off— %— %— %(0.02)%0.04 %
Adjustment for merger and acquisition costs
0.05 %— %— %0.02 %— %
Tax impact of above adjustments(1)
(0.01)%— %(0.08)%— %(0.04)%
Core return on average assets
0.95 %0.84 %0.97 %0.89 %0.95 %
Core Return on Average Equity:
Return on average equity, as presented10.04 %9.60 %8.25 %10.13 %10.00 %
Adjustment for net loss on sale of securities— %— %4.50 %— %1.53 %
Adjustment for Signature Bank bond (recovery) write-off— %— %— %(0.24)%0.53 %
Adjustment for merger and acquisition costs
0.56 %— %— %0.19 %— %
Tax impact of above adjustments(1)
(0.12)%— %(0.95)%0.01 %(0.43)%
Core return on average equity
10.48 %9.60 %11.80 %10.09 %11.63 %
(1) Assumed a 21% tax rate.

Pre-Tax, Pre-Provision Income:
For the
Three Months Ended		For the
Nine Months Ended
(In thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Net income, as presented$13,073 $11,993 $9,787 $38,338 $34,903 
Adjustment for provision (credit) for credit losses239 650 (574)(1,213)1,531 
Adjustment for income tax expense2,781 2,876 2,236 8,720 8,653 
 Pre-tax, pre-provision income
$16,093 $15,519 $11,449 $45,845 $45,087 












Efficiency Ratio:
For the
Three Months Ended		For the
Nine Months Ended
(Dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Non-interest expense, as presented$28,900 $27,310 $26,207 $83,572 $79,515 
Adjustment for merger and acquisition costs
727 — — 727 — 
Adjusted non-interest expense$28,173 $27,310 $26,207 $82,845 $79,515 
Net interest income, as presented$33,587 $32,184 $32,584 $97,044 $99,554 
Adjustment for the effect of tax-exempt income(1)
165 159 237 475 701 
Non-interest income, as presented11,406 10,645 5,072 32,373 25,048 
Adjustment for net loss on sale of securities— — 5,335 — 5,335 
Core net interest income plus non-interest income
$45,158 $42,988 $43,228 $129,892 $130,638 
GAAP efficiency ratio64.23 %63.77 %69.60 %64.58 %63.82 %
Non-GAAP efficiency ratio62.39 %63.53 %60.63 %63.78 %60.87 %
(1) Assumed a 21% tax rate.

Return on Average Tangible Equity and Core Return on Average Tangible Equity:
For the
Three Months Ended		For the
Nine Months Ended
(Dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Return on Average Tangible Equity:
Net income, as presented$13,073 $11,993 $9,787 $38,338 $34,903 
Adjustment for amortization of core deposit intangible assets139 139 148 417 444 
Tax impact of above adjustment(1)
(29)(29)(31)(88)(93)
Net income, adjusted for amortization of core deposit intangible assets$13,183 $12,103 $9,904 $38,667 $35,254 
Average equity, as presented$518,222 $502,480 $470,750 $505,452 $466,563 
Adjustment for average goodwill and core deposit intangible assets(95,319)(95,458)(95,888)(95,460)(96,037)
Average tangible equity$422,903 $407,022 $374,862 $409,992 $370,526 
Return on average equity10.04 %9.60 %8.25 %10.13 %10.00 %
Return on average tangible equity12.40 %11.96 %10.48 %12.60 %12.72 %
Core Return on Average Tangible Equity:
Core net income (see "Core Net Income" table above)
$13,647 $11,993 $14,002 $38,193 $40,570 
Adjustment for amortization of core deposit intangible assets139 139 148 417 444 
Tax impact of above adjustment(1)
(29)(29)(31)(88)(93)
Core net income, adjusted for amortization of core deposit intangible assets
$13,757 $12,103 $14,119 $38,522 $40,921 
Core return on average tangible equity
12.94 %11.96 %14.94 %12.55 %14.77 %
(1) Assumed a 21% tax rate.













Tangible Book Value Per Share and Tangible Common Equity Ratio:
(In thousands, except number of shares, per share data and ratios)September 30,
2024		June 30,
2024		September 30,
2023
Tangible Book Value Per Share:
Shareholders' equity, as presented$529,900 $508,286 $463,298 
Adjustment for goodwill and core deposit intangible assets(95,251)(95,390)(95,816)
Tangible shareholders' equity$434,649 $412,896 $367,482 
Shares outstanding at period end14,577,218 14,569,262 14,558,137 
Book value per share$36.35 $34.89 $31.82 
Tangible book value per share29.82 28.34 25.24 
Tangible Common Equity Ratio:
Total assets$5,745,180 $5,724,380 $5,779,675 
Adjustment for goodwill and core deposit intangible assets(95,251)(95,390)(95,816)
Tangible assets$5,649,929 $5,628,990 $5,683,859 
Common equity ratio9.22 %8.88 %8.02 %
Tangible common equity ratio7.69 %7.34 %6.47 %

Core Deposits:
(In thousands)September 30,
2024		June 30,
2024		September 30,
2023
Total deposits$4,575,226 $4,514,020 $4,678,406 
Adjustment for certificates of deposit(553,481)(576,563)(552,111)
Adjustment for brokered deposits(168,674)(150,828)(133,885)
Core deposits$3,853,071 $3,786,629 $3,992,410 

Average Core Deposits:
For the
Three Months Ended		For the
Nine Months Ended
(In thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Total average deposits, as presented(1)
$4,379,935 $4,349,135 $4,483,614 $4,366,635 $4,476,668 
Adjustment for average certificates of deposit(565,063)(583,282)(497,301)(577,007)(409,909)
Average core deposits$3,814,872 $3,765,853 $3,986,313 $3,789,628 $4,066,759 
(1) Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.