Camden National (NASDAQ:CAC) Corporation (NASDAQ: CAC) reported a net income of $9.8 million, or $0.67 per diluted share, for Q3 2023, including a $5.3 million pre-tax loss from the sale of securities. Adjusted non-GAAP earnings for the quarter would have been $14 million or $0.96 per diluted share. The company also announced an upcoming CEO transition, with Simon Griffiths taking the helm on January 1st.
Key takeaways from the earnings call include:
- The net interest margin for the quarter was 2.39%, and the non-GAAP efficiency ratio improved to 60.63%.
- The company's loan-to-deposit ratio was 87%, and tangible common equity ratio was 6.47% as of September 30th.
- The pre-office loan exposure as of September 30th was 5% of total loans, consistent with the previous quarter.
- Uninsured deposits accounted for 24% of total deposits, while uninsured and uncollateralized deposits were 15% of total deposits.
- Available liquidity sources increased to 1.4 times uninsured deposits and 2.1 times uninsured and uncollateralized deposits.
- The CEO transition is estimated to cost around $900,000 for 2023 and $1.2 million for 2024, with $600,000 recognized by September 30th.
Camden National Corporation emphasized its focus on maximizing net interest margin, building deposits and liquidity, and maintaining asset quality. The company's loan growth is expected to be flat in the coming quarter, with a focus on maintaining net interest margin and credit quality.
The firm's pre-office loan exposure remained steady at 5% of total loans, and total loan reserves remained at 0.9% of total loans. The company experienced a negative provision expense of $574,000 for the third quarter due to lower loan balances and favorable credit quality metrics.
Uninsured deposits accounted for 24% of total deposits, while uninsured and uncollateralized deposits were 15% of total deposits, both consistent with the previous quarter. Available liquidity sources increased to 1.4 times uninsured deposits and 2.1 times uninsured and uncollateralized deposits as of September 30th.
The company's tangible common equity ratio was 6.47% at the end of the third quarter, down 11 basis points from the previous quarter. The company's regulatory capital ratios remained well above requirements.
The CEO transition, with Simon Griffiths joining on November 20th and taking over as President and CEO on January 1st, was estimated to cost around $900,000 for 2023 and $1.2 million for 2024, with $600,000 recognized by September 30th.
Operating expenses were expected to be around $27 million, with a slight increase in the fourth quarter due to seasonal costs. The management team was praised, and the call concluded with thanks to the management team and participants.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.