Camden National Corporation (NASDAQ:CAC) Q1 2023 Earnings Conference Call April 25, 2023 3:00 PM ET
Company Participants
Greg Dufour - President and Chief Executive Officer
Mike Archer - Executive Vice President and Chief Financial Officer
Conference Call Participants
Steve Moss - Raymond James
Damon DelMonte - KBW
Matthew Breese - Stephens
Operator
Good day, and welcome to Camden National Corporation’s First Quarter 2023 Earnings Conference Call. My name is Danielle, and I will be your operator for today’s call. All participants will be in a listen-only mode during today’s presentation. Following the presentation, 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 that may cause actual results to vary materially from the projected in the forward-looking statements.
Additional information concerning factors that could cause actual results to differ materially from those in such forward-looking statements are described in the company’s earnings press release and supplemental earnings material, the company’s 2022 annual report on Form 10-K and other filings with the SEC. The company does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after forward-looking statements are made. Any references in today’s presentation to non-GAAP financial measures are intended to provide meaningful insight and are reconciled with GAAP in your press release.
Today’s presenters are Greg Dufour, President and Chief Executive Officer; and Mike Archer, Executive Vice President and Chief Financial Officer. Please note that this event is being recorded. At this time, I would like to turn the conference over to Greg Dufour. Please go ahead, sir.
Greg Dufour
Thank you, Danielle and welcome to Camden National Corporation’s first quarter 2023 earnings call. Before I turn the discussion over to Mike, I’d like to make a few opening comments. We reported net income of $12.7 million or $0.87 per diluted share for the first quarter of 2023, a 17% decrease from the fourth quarter of 2022. This resulted in a return on average equity of 11.16% and a return on tangible capital of 14.21%. Driving these results were the impact of our normal seasonal deposit outflows, overall interest rate volatility and market-based pricing increases in flattening deposit rates. We also recorded a $1.8 million pretax loss on a subordinated bond we held in Signature Bank, which was recorded – I am sorry, which was held in our held to maturity portfolio, and that loss was recorded in our provision for credit losses line. We’ve reviewed our investment portfolio and feel comfortable with the positions we hold with only 3% in corporate bonds. Mike will speak to our investment portfolio in more detail in just a few minutes.