Camden National Corporation (NASDAQ:CAC) Q2 2022 Earnings Conference Call July 26, 2022 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

Damon DelMonte - KBW

Matthew Breese - Stephens

Operator

Good day, and welcome to Camden National Corporation's Second Quarter 2022 Earnings Conference Call. My name is Tia, and I will be your operator for today's call [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 those 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, the company's 2021 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 the forward-looking statements are made. Any references in today's presentation to non-GAAP financial measures are intended to provide meaningful insights 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, Tia, and good afternoon, everyone. Welcome to Camden National's Second Quarter 2022 Earnings Call. Like many companies, our second quarter was highly influenced by the uncertain economic outlook. Earlier today, we reported net income of $15 million for the second quarter of 2022 or $1.02 per diluted share, which represents a decrease of 11% when compared to the first quarter of 2022 net income and a 10% decrease compared to the first quarter 2022 diluted EPS. Underlying those results was a 6% increase in pretax pre-provision earnings compared to the first quarter results. During the second quarter, we took certain measures to fortify our balance sheet during these uncertain and volatile times, which included increasing our allowance for credit losses by recording a provision for credit losses of $2.3 million in the second quarter compared to a release of $1.1 million in the first quarter. This increase in provision helped move our ratio of allowance for credit losses to total loans to 92 basis points at the end of the second quarter of 2022, 2 basis points higher than the end of the first quarter. This increase is due to loan growth as well as being proactive in light of economic conditions and forecasts.