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Camden National's (CAC) CEO Greg Dufour on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Conference Call

April 26, 2016 01:00 PM ET


Greg Dufour - President, CEO and Director

Deborah Jordan - EVP, COO and CFO

Mike Archer - VP and Corporate Controller


Travis Lan - KBW

Matthew Kelley - Piper Jaffray


Good day and welcome to the Camden National Corporation First Quarter 2016 Earnings Conference Call. All participants will be in listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this presentation contains forward-looking statements which involve significant risks and uncertainties. Actual results could differ materially from the results discussed. The risk factors are described in the Company’s Annual Report on Form 10-K and in other filings with the SEC. Today’s call presenters are Greg Dufour, President, Chief Executive Officer and Director; Deborah Jordan, Executive Vice President, Chief Operating Officer and Chief Financial Officer; and Mike Archer, Vice President, and Corporate Controller. Please also note that today's event is being recorded.

At this time, I'd like to turn the conference over to Debi Jordan. Please go ahead.

Deborah Jordan

Thank you Allison and good afternoon and welcome to our conference call today to discuss financial and operating results for the first quarter of 2016. Greg Dufour is sharing the room with me but for the first time ever, Greg is speechless, he is speechless literally. He was hoping to be able to speak today but he developed a severe case of laryngitis with a cold and you would just hear his whispers at this point. Mike Archer, our Corporate Controller will review the financial results in a few moments but I wanted to highlight a few of our first quarter accomplishments. We reported core operating earnings which excludes merger and acquisition-related expenses of $8.8 million or $0.85 per diluted share. Credit quality remains stable as reflected in our non-performing loans to total loans ratio of 0.84%, down 9 basis points from year end. In addition, loans 30 to 89 days past due were $7.6 million at quarter-end compared to $9.9 million at December 31.

Our core efficiency ratio improved to 61.23% during the first quarter compared to 64.16% in the fourth quarter of last year as well as below our first quarter 2015 ratio of 61.97%. Operationally, we've continued to execute on several strategic objectives. We are seeing the benefits of our products and geographic expansions; our mortgage banking business has performed well in light of refinancing resulting from a drop in interest rate and intense competition. Our pipelines are rapidly building both from our banking center mortgage lenders as well as our commissioned originators based in Southern Maine, and Braintree Massachusetts. Our commercial lending teams are also reporting strong pipelines and closings however we continue to see a narrowing of spreads in all of our markets. Through the establishment of a loan production office in Manchester, New Hampshire in February 2014 and expansion in Southern Maine through the acquisition, we are experiencing the benefits of operating some very strong economic areas in Northern New England.

Also during the quarter we completed the previously announced closing on Healthcare Professional Funding Corporation or HPFC in February. We have retained the HPFC loan portfolio and have seen slight credit deterioration that we continue to monitor very closely. At the same time, during the quarter, we focused a lot of energy on systems integrations that will provide future efficiencies and equally as important improve customer service levels. While much of the merger related integrations are complete, our focus is to bring the whole organization up to the next level of digital-based services in products to meet changing customer demands.