Camden National Corp (CAC) 2023 Q4 法說會逐字稿

Good day and welcome to Camden National Corporation's Fourth Quarter 2023 earnings conference call. My name is Cole, and I'll be the 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. If at any time you require operator assistance, please press star then zero. 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 forward-looking statements. Additional information concerning factors that could cause actual results to differ supplemental earnings materials, the Company 2020 annual report on Form 10 K and other filings from 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. Today's presenters are Simon Gryphics, President and Chief Executive Officer, and Mike Archer, Executive Vice President and Chief Financial Officer. Please note that this event is being recorded.

美好的一天，歡迎參加卡姆登國家公司 2023 年第四季財報電話會議。我叫科爾，我是今天電話的接線生。所有參與者將處於僅聽模式。在今天的演講中。演講結束後，我們將進行問答環節。如果您在任何時候需要操作員幫助，請按星號，然後按零。請注意，本簡報包含前瞻性陳述，其中涉及重大風險和不確定性，可能導致實際結果與前瞻性陳述中預測的結果有重大差異。有關可能導致實際結果與補充收益資料、公司 2020 年年度報告 10 K 表格以及 SEC 提交的其他文件不同的因素的更多資​​訊。本公司不承擔更新任何前瞻性陳述以反映前瞻性陳述做出後發生的情況或事件的義務。在今天的簡報中對非 GAAP 財務指標的任何引用都是為了提供有意義的見解，並在今天的新聞稿中與 GAAP 保持一致。今天的主講人是總裁兼執行長 Simon Gryphics 和執行副總裁兼財務長 Mike Archer。請注意，該事件正在被記錄。

At this time, I would like to turn the conference over to Simon Gryphics Gryphics. Please go ahead.

這次，我想把會議交給 Simon Gryphics Gryphics。請繼續。

Good afternoon. Thank you, Cole, and welcome to Camden National Corporation's Fourth Quarter 2020 2023 earnings call.

午安.謝謝科爾，歡迎參加卡姆登國家公司 2020 年第四季 2023 年財報電話會議。

I'd like to start by introducing myself. I joined Camden National Corporation last November and took over as the President, Chief Executive Officer on January first, and it's an absolute pleasure and honor to join the company. Since joining. I've been impressed with the strength of the management team and their focus on delivering an outstanding experience for our customers as I meet with team members and their customers have come to realize how deeply rooted Camden National is in the communities we serve. And my first months with the company have confirmed for me, the pivotal role we play from large commercial customers to small business owners. There's strong momentum for these businesses to grow and our teammates can deliver the products and services and have the customer relationships to guide them along the way.

我想先介紹一下我自己。我於去年 11 月加入卡姆登國家公司，並於 1 月 1 日接任總裁兼首席執行官，加入該公司我感到非常高興和榮幸。自從加入後。管理團隊的實力以及他們致力於為客戶提供卓越體驗的專注給我留下了深刻的印象，當我與團隊成員會面時，他們的客戶逐漸意識到卡姆登國民在我們所服務的社區中紮根有多深。加入公司的頭幾個月讓我確信，我們從大型商業客戶到小企業主都發揮關鍵作用。這些業務發展勢頭強勁，我們的團隊成員可以提供產品和服務，並擁有客戶關係來引導他們一路前進。

I'm also impressed by the robust technology advancements the Company has made. The team has been driving innovation and utilizing sophisticated tools to automate process leverage data and deliver digital products to aid our customers and our team members.

公司所取得的強勁技術進步也讓我留下了深刻的印象。該團隊一直在推動創新，並利用先進的工具來自動化流程、利用數據並提供數位產品來幫助我們的客戶和團隊成員。

Earlier this morning, we reported net income of $8.5 million or $0.58 earnings per share diluted share for the fourth quarter of 2023. This is this included the impact of repositioning a portion of our investment portfolio, we generated a $5 million pretax loss on the sale of securities. Excluding that impact, our adjusted non-GAAP earnings for the quarter would have been $12.4 million or $0.85 per diluted share. The Company continues to look for opportunities to adjust and optimize the balance sheet, and we expect the changes we made in 2023 will provide future benefits to our net interest, margin, earnings and capital.

今天早上早些時候，我們報告了 2023 年第四季度的淨利潤為 850 萬美元，即稀釋後每股收益 0.58 美元。這包括重新定位我們部分投資組合的影響，我們因出售證券而產生了 500 萬美元的稅前損失。排除此影響，我們本季調整後的非 GAAP 收益將為 1,240 萬美元，即稀釋後每股收益 0.85 美元。公司繼續尋找調整和優化資產負債表的機會，我們預計 2023 年所做的改變將為我們的淨利息、利潤率、收益和資本帶來未來的好處。

The strength of our balance sheet continues to position us well for growth and to capitalize on market opportunities as the broader market shows signs of normalization. Our capital position remains strong and improving, highlighted by an increase in the tangible common equity ratio to 7.11% at December 31, 2023, compared to 6.47% at September 30, 2023. We continue to see solid demand for loans in the communities that we serve and our pipeline remains steady. We're excited by the addition of a new Director of Commercial Banking and New Hampshire with more than 22 years of banking experience we are already seeing positive momentum in the market, and we'll continue to look at opportunities to strengthen our team and expand our market presence. We remain focused on full relationship banking to strengthen customer loyalty, leveraging our robust balance sheet and actively managing new loan yields tightly given the decrease in the 10-year treasury yield over recent months. Personally, I'm invigorated by this opportunity to work with a talented and dedicated team to make an impact and build on that many successes.

隨著大盤顯示出正常化的跡象，我們的資產負債表實力繼續為我們的成長和利用市場機會做好了準備。我們的資本狀況依然強勁且有所改善，突出表現是有形普通股比率從 2023 年 9 月 30 日的 6.47% 增至 2023 年 12 月 31 日的 7.11%。我們繼續看到我們所服務的社區對貸款的強勁需求，並且我們的貸款管道保持穩定。我們很高興新罕布夏州商業銀行業務總監的加入，他擁有超過 22 年的銀行業務經驗，我們已經看到市場的積極勢頭，我們將繼續尋找機會來加強我們的團隊並擴大業務規模我們的市場存在。鑑於近幾個月 10 年期公債殖利率下降，我們仍專注於全關係銀行業務，以增強客戶忠誠度，利用我們穩健的資產負債表，並積極嚴格管理新貸款殖利率。就我個人而言，我很高興有機會與才華橫溢、敬業的團隊合作，產生影響力並在眾多成功的基礎上再接再厲。

The swift actions taken throughout the year, including steps to stabilize our net interest margin, fortify our balance sheet and position the Company for future earnings capacity to drive long-term shareholder value. These actions have positioned us well for the future and will enable us to capitalize on opportunities within our market.

全年採取的迅速行動，包括穩定我們的淨利差、強化我們的資產負債表以及為公司未來盈利能力定位以推動長期股東價值的措施。這些行動為我們的未來做好了準備，並使我們能夠充分利用市場中的機會。

Our priorities for 2024 will be to continue to manage the business with a focus on actions that prioritize long-term shareholder value. While having a prudent offense mindset. We have many exciting capabilities and delivery road map across our technology, digital data analytics and AI road map that will continue to drive growth. The team remains laser-focused on a long-term strategic plan to drive stability, profitability and growth with strong expense discipline, complemented by a talented team. I'm confident in our ability to adapt to the changing environment and economic landscape while continuing to provide long-term shareholder value.

我們 2024 年的首要任務將是繼續管理業務，並專注於優先考慮長期股東價值的行動。同時擁有謹慎的進攻心態。我們在技術、數位數據分析和人工智慧路線圖上擁有許多令人興奮的能力和交付路線圖，將繼續推動成長。團隊仍專注於長期策略計劃，以嚴格的費用紀律和才華橫溢的團隊為補充，推動穩定性、獲利能力和成長。我對我們適應不斷變化的環境和經濟格局，同時繼續提供長期股東價值的能力充滿信心。

Now I'm going to turn it over to Mike to provide some additional insights into our financial performance for the quarter.

現在我將把它交給麥克，以提供有關我們本季財務表現的一些額外見解。

Thank you, Simon. Good afternoon, everyone.

謝謝你，西蒙。大家下午好。

This morning reported net income for the fourth quarter and annual financial results for the year ended 2023. Like many others across the banking industry. Our annual financial results for the year were impacted by the macroeconomic conditions and other challenges faced during the year, which included higher short short term rates in an inverted yield curve compounded by several well-known larger regional bank failures, bringing deposits and related pricing into further focus across the banking industry. Our response to these market conditions in events included prioritizing deposits and liquidity, taking steps to help optimize our net interest margin and maintaining our strong asset quality. We believe our capital reserve level and liquidity position us well for future growth and shareholder value creation. These priorities continued throughout the fourth quarter and remain key priorities today.

今天早上公佈了第四季度淨利潤和截至 2023 年的年度財務業績。與銀行業的許多其他人一樣。我們今年的年度財務表現受到宏觀經濟狀況和年內面臨的其他挑戰的影響，其中包括收益率曲線倒掛中短期利率上升，再加上幾家知名的大型區域銀行倒閉，將存款和相關定價帶入了困境。進一步聚焦整個銀行業。我們對這些市場狀況的反應包括優先考慮存款和流動性，採取措施幫助優化我們的淨利差並維持強勁的資產品質。我們相信，我們的資本儲備水準和流動性使我們能夠為未來的成長和股東價值創造做好準備。這些優先事項在整個第四季度持續進行，並且至今仍然是關鍵優先事項。

Net income net income for the year ended December 31, 2023, was $43.4 million and diluted EPS totaled $2.97 each, a decrease of 29% compared to 2022 annual financial results included within within these results are pretax investment losses of $10.3 million as we sold lower yielding investments in the third and fourth quarters this year to reposition our balance sheet with a focus on driving future earnings and improved profitability as well as a $1.8 million write off of the Signature Bank bond. Adjusting for these items, our annual earnings on a non-GAAP basis for 2023 was $53 million and a diluted EPS on a non-GAAP basis of $3.63, decreases of 15% and 14% respectively compared to 2022. Net income for the fourth quarter of 2023 was $8.5 million and diluted EPS was $0.58. It's a decrease of 13% compared to the third quarter this year. As noted in my earlier comments, we sold investments at a loss in the third and fourth quarters, which affected our financial results for each quarter. Adjusting for these investment losses, our earnings on a non-GAAP basis for the fourth quarter were $12.4 million. Diluted EPS was $0.85. It's a decrease of 11% on a linked quarter basis.

截至2023 年12 月31 日的年度淨利潤為4,340 萬美元，稀釋後每股收益總計為2.97 美元，與2022 年年度財務業績相比下降了29%，這些業績中包含的稅前投資損失為1,030萬美元，因為我們的銷售額較低今年第三季和第四季的收益投資將重新定位我們的資產負債表，重點是推動未來收益和提高獲利能力，並註銷 Signature Bank 債券 180 萬美元。在這些項目進行調整後，我們在 2023 年以非 GAAP 計算的年收益為 5,300 萬美元，以非 GAAP 計算的稀釋每股收益為 3.63 美元，與 2022 年相比分別下降 15% 和 14%。2023 年第四季淨利為 850 萬美元，攤薄後每股收益為 0.58 美元。與今年第三季相比下降了13%。正如我之前的評論所述，我們在第三和第四季度虧損出售了投資，這影響了我們每季的財務表現。調整這些投資損失後，我們第四季的非 GAAP 收益為 1,240 萬美元。稀釋後每股收益為 0.85 美元。環比下降 11%。

Highlights for our fourth quarter operating results included seeing signs of our net interest margin, stabilizing, improving capital ratios and finishing the year with excellent asset quality. Our net interest margin for the fourth quarter was 2.40%, which was up one basis point from last quarter. We continue to redeploy our investment cash flows primarily to fund loan originations in order to improve overall asset yields and anticipate will continue to do so. We believe this asset remixing should help continue to stabilize net interest margin through the winter months within our markets, as we generally see a level of seasonal deposit outflows and as we continue to see pressures on funding costs from deposit mix shift. The strength of our liquidity positions position affords us the flexibility to continue to leverage the strategy in order to deploy all of the proceeds from the sale of securities in the fourth quarter, we also reinvested a portion of the proceeds into new securities yields, just about 6%, and that were purchased at a slight discount as our investment portfolio continues to produce cash flow. We expect to continue to leverage this cash flow to support loan fundings.

我們第四季度經營業績的亮點包括看到淨利差的跡象、穩定和改善資本比率以及以優異的資產品質結束這一年。第四季淨利差為2.40%，較上季上升1個基點。我們繼續重新部署投資現金流，主要為貸款發放提供資金，以提高整體資產收益率，並預計將繼續這樣做。我們認為，這種資產重組應有助於在整個冬季繼續穩定市場的淨利差，因為我們通常會看到一定程度的季節性存款流出，並且我們繼續看到存款組合變化對融資成本造成的壓力。我們的流動性部位實力使我們能夠靈活地繼續利用該策略，以便部署第四季度出售證券的所有收益，我們還將部分收益再投資於新的證券收益率，大約6%，並且是在我們的投資組合繼續產生現金流的情況下以小幅折扣購買的。我們預計將繼續利用這筆現金流來支持貸款資金。

Our book and regulatory capital ratios improved across the board in the fourth quarter and we finished the year with a TCE ratio of 7.11%, up from 6.47% at September 30, 2023, and 6.37% at December 31, 2022. Our capital position community continues to be one of our strength in New England, and it positions us well to capitalize on market growth opportunities.

我們的帳面資本比率和監管資本比率在第四季度全面改善，全年的 TCE 比率為 7.11%，高於 2023 年 9 月 30 日的 6.47% 和 2022 年 12 月 31 日的 6.37%。我們的資本頭寸社區仍然是我們在新英格蘭的優勢之一，它使我們能夠很好地利用市場成長機會。

Our asset quality as of December 31, 2023, remained very strong by all measures a year end. Our nonperforming assets to total assets were 0.13% are past due. Loans were 0.12% of total loans and net charge-offs for the fourth quarter were $358,000 or 0.04% of average loans on an annualized basis. The overall health of our customer base continues to be very positive, highlighted by criticized and classified assets of 1.13% of total loans at year end, which is up from 1.05% for the third quarter, but down from 1.67% at December 31, 2022. We continue to monitor our loan portfolio proactively to identify any early signs of stress. And today, we are not seeing any systemic trends or material concerns the increase in provision expense between the third and fourth quarters was $1.1 million and contributed to the decrease in our linked quarter earnings on a GAAP and non-GAAP adjusted basis. In the third quarter, we recorded a negative provision expense or credit, primarily driven by a decrease in loan balances of 1% during the third quarter, whereas in the fourth quarter, we provisioned $559,000, driven by loan growth of 1%. Like last quarter, we maintained our loan loss reserve levels, 0.90% of total loans as we take into account our overall asset quality and way the macroeconomic forecast.

截至 2023 年 12 月 31 日，我們的資產品質在年末的所有指標上都保持非常強勁。我們的不良資產佔總資產的0.13%已逾期。貸款佔總貸款的 0.12%，第四季淨沖銷額為 358,000 美元，佔年化平均貸款的 0.04%。我們客戶群的整體健康狀況仍然非常積極，年末受到批評和分類的資產佔貸款總額的 1.13%，高於第三季度的 1.05%，但低於 2022 年 12 月 31 日的 1.67%。 。我們繼續主動監控我們的貸款組合，以發現任何壓力的早期跡象。今天，我們沒有看到任何系統性趨勢或重大問題，第三季和第四季之間的撥備費用增加了 110 萬美元，導致我們按 GAAP 和非 GAAP 調整後的相關季度收益下降。第三季度，我們錄得負撥備費用或信貸，主要是由於第三季度貸款餘額減少 1%，而在第四季度，我們撥備了 559,000 美元，主要是由於貸款增長 1%。與上季一樣，我們維持了貸款損失準備金水平，即佔貸款總額的 0.90%，因為我們考慮到了整體資產品質和宏觀經濟預測。

Noninterest income for the fourth quarter totaled $6 million and was higher than reported for the third quarter by 18%, primarily driven by a few no non-core items, including mortgage banking, fair value adjustments and a smaller loss on our sale of investment securities compared to the third quarter. Adjusting for these items, noninterest income for the fourth quarter would have been $10.6 million, which included the benefit of our annual Visa incentive bonus of $400,000 in the fourth quarter compared to $10.5 million of fee income for the third quarter. We continue to estimate that our normal recurring noninterest income will be $9.5 million to $10 million dollars quarterly in the near term.

第四季的非利息收入總計600 萬美元，比第三季報告的收入高出18%，這主要是由一些非核心項目推動的，包括抵押貸款銀行業務、公允價值調整以及我們銷售投資證券的較小損失與第三季相比。在這些項目進行調整後，第四季的非利息收入將為 1,060 萬美元，其中包括第四季度 40 萬美元的年度 Visa 激勵獎金，而第三季的費用收入為 1,050 萬美元。我們繼續估計，短期內我們的正常經常性非利息收入將為每季 950 萬至 1,000 萬美元。

Noninterest expense for the fourth quarter was $27.8 million, an increase of $1.6 million or 6% on a linked quarter basis. As anticipated, operating operating costs increased over the last quarter, given various factors, including timing of incentive accrual, true ups, senior leader transition costs and normal seasonal costs during the winter months. Higher noninterest expense for the fourth quarter translated into a non-GAAP efficiency ratio of 63.48% for the quarter. As we look forward, we anticipate we anticipate noninterest expenses will tick higher for the first quarter of 2024 and range between $28 million and $28.5 million as incentive accruals reset to target levels, and we continue to work through transition costs. We have taken and continue to take steps to manage costs, and we are focused on managing our efficiency ratio lower throughout 2024.

第四季非利息支出為 2,780 萬美元，季增 160 萬美元，成長 6%。正如預期的那樣，考慮到各種因素，包括激勵應計時間、真實上升、高階領導過渡成本和冬季的正常季節性成本，上一季的營運成本有所增加。第四季非利息支出的增加轉化為該季度 63.48% 的非 GAAP 效率。展望未來，我們預計2024 年第一季的非利息支出將上升，隨著應計激勵措施重置至目標水平，非利息支出將在2800 萬美元至2850 萬美元之間，並且我們將繼續努力解決過渡成本問題。我們已經採取並將繼續採取措施來管理成本，我們的重點是在 2024 年全年降低效率比率。

The last item I'll touch on is our effective tax rate. We saw our effective tax rate for 2023 decreased to 19.4% compared to 20.3% for 2022. In the fourth quarter, we participated in a renewable solar energy product project, excuse me, and as a result, we are currently estimating an effective tax rate for 2024 of 18.6%.

我要談的最後一項是我們的有效稅率。我們看到 2023 年的有效稅率從 2022 年的 20.3% 下降至 19.4%。第四季度，我們參與了一個可再生太陽能產品項目，請問，因此，我們目前估計 2024 年的有效稅率為 18.6%。

This concludes our comments. We'll now now open the call for questions.

我們的評論到此結束。我們現在開始提問。

If you'd like to queue for a question, please press star followed by one on your telephone keypad. For any reason you'd like to remove that question, please press star followed by two again to join the queue for a question, please press star one. We'll pause here briefly as questions are registered.

如果您想排隊等待問題，請按電話鍵盤上的星號，然後再按一個。無論您出於何種原因想要刪除該問題，請按星號，然後再次按星號 2 以加入問題佇列，請按星號 1。當問題被登記時，我們將在這裡短暫暫停。

Our first question is from Steve Moss with Raymond James.

我們的第一個問題來自史蒂夫·莫斯和雷蒙德·詹姆斯。

Your line is now open.

您的線路現已開通。

Good afternoon and Dan, welcome aboard. Thanks, Dave. Maybe just starting well, maybe just starting on on loan growth here. Just curious how you guys are feeling about the loan pipeline, especially on commercial side these days and how loan pricing is?

丹，下午好，歡迎加入。謝謝，戴夫。也許剛開始良好，也許剛開始貸款成長。只是好奇你們對貸款管道的感覺如何，特別是現在在商業方面以及貸款定價如何？

Yes. Thanks for the question, Steve. I think we anticipate throughout the year low single digit loan growth for the first quarter. We continue to see solid resilience at the client level across our sectors. And we certainly are obviously going to look at the interest rate environment as a key driver of expectations as we move throughout the year. But overall, I think we see continue to see solid demand and continue to leverage our balance sheet to support our communities and deepen customer relationships. And I think I see a positive outlook certainly in the particularly as the positive.

是的。謝謝你的提問，史蒂夫。我認為我們預計全年第一季的貸款成長將保持在個位數的低點。我們持續看到我們各產業客戶層面的強勁韌性。當我們全年行動時，我們顯然會將利率環境視為預期的關鍵驅動因素。但總的來說，我認為我們繼續看到強勁的需求，並繼續利用我們的資產負債表來支持我們的社區並加深客戶關係。我認為我認為積極的前景尤其是積極的。

Sorry. Okay. That's helpful. And just maybe in terms of the Fed probably going to cut rates this year. Just curious how you guys are thinking about the impact on on the margin with rate cuts. And I realize you're Blake talked about a couple months out, just how you're thinking about the margin here near term, given you do see obviously some deposit pricing pressures in the sector.

對不起。好的。這很有幫助。也許就聯準會今年可能會降息而言。只是好奇你們如何看待降息對利潤率的影響。我知道布萊克在幾個月後談到了您對近期利潤率的看法，因為您確實看到了該行業明顯的一些存款定價壓力。

Sure. I'll take that one, Steve. I would say on the margin on the near term, certainly.

當然。我會接受那個，史蒂夫。我想說的是，短期內一定會如此。

And we're seeing it to grow to Q4 right now into the quarter. I think as we think about the next three to six months, I would say that we're thinking about margin being flattish plus or minus a few basis points overall. And certainly in the first quarter, we generally have the seasonal outflows from a deposit perspective that are impactful to us. We're also seeing some asset Remec remix continue excuse me, deposit remix continue to where we're certainly focused on that. We've also done some things on the funding side, really trying to optimize where we can to the extent that had we had some higher higher cost, less of relationship, if you will, on the deposit side really trying to find alternate funding to optimize and think that should certainly help out as well in the first quarter. But long story short is, I think, for the first half, it will be pretty flattish. We're envisioning That's when rates cuts do happen, that we will see a benefit. We do think that it will certainly take some time to see that come through in the funding side, we want to be able to push and certainly rates and deposit costs lower, but you'll also recognizing that deposit with a pickup in our market and I'm sure others is very competitive and B will recognizing that. But that being said, I think in the second half, we do anticipate to see some level of margin expansion from there.

我們預計它會成長到第四季。我認為，當我們考慮未來三到六個月時，我想說的是，我們正在考慮整體利潤率持平加或減幾個基點。當然，在第一季度，從存款角度來看，我們通常會出現季節性資金外流，這對我們有影響。我們也看到一些資產 Remec 混音繼續，對不起，存款混音繼續我們當然關注的地方。我們還在資金方面做了一些事情，真正嘗試優化我們可以做到的程度，如果我們有更高的成本，更少的關係，如果你願意的話，在存款方面，我們真的試圖找到替代資金優化並認為這肯定會對第一季有所幫助。但長話短說，我認為上半年的情況將相當平淡。我們預計，當降息確實發生時，我們將看到好處。我們確實認為，肯定需要一些時間才能看到資金方面的實現，我們希望能夠推動利率和存款成本降低，但您也會認識到，隨著我們市場的回升，存款和我確信其他人非常有競爭力，B 也會認清這一點。但話雖這麼說，我認為在下半年，我們確實預計會看到一定程度的利潤率擴張。

Okay, great. Appreciate that color. And just one on expenses here. I think the guide for the first quarter that Mike, you mentioned was $20 million to $20.5 million with some transition costs. Just kind of curious, you did does it back down a little bit from there for the rest of the year or should we think about maybe there some ongoing investments and we stay closer to a $28 million range for the upcoming year quarter?

好的，太好了。欣賞那個顏色。這裡只是關於費用的一件事。我認為麥克，你提到的第一季的指導是 2000 萬到 2050 萬美元，還有一些過渡成本。只是有點好奇，今年剩下的時間裡，你的投資是否會比現在有所回落，或者我們是否應該考慮是否有一些正在進行的投資，並且我們在即將到來的季度保持接近 2800 萬美元的範圍？

Yes, I think I think realistically, at least as of right now, we're probably that $28 million and $28.5 million. I do think we'll probably on a run rate basis be closer to $28 million and normal.

是的，我想我現實地認為，至少到目前為止，我們可能是 2800 萬美元和 2850 萬美元。我確實認為，以運行率計算，我們可能會接近 2800 萬美元，屬於正常水平。

Neil, on the norm there, Steve, we like, as I think Simon spoke to in his comments in mind, is we certainly are focused on the expenses and being prudent there. And from an efficiency ratio perspective, we keep a very watchful eye on that and always have historically and will continue to do so. But we certainly we're trying to balance the management of expenses short term with also making sure that we're continuing to reinvest for the long term. So we're trying to strike that right balance.

尼爾，按照那裡的標準，史蒂夫，我們喜歡，正如我認為西蒙在他的評論中所說的那樣，我們當然關注費用並在那裡保持謹慎。從效率比的角度來看，我們對此保持密切關注，並且歷來如此，並將繼續這樣做。但我們當然正在努力平衡短期費用管理，同時確保我們繼續進行長期再投資。因此，我們正在努力取得適當的平衡。

Yes. I'll just add, Steve, you and I think that's spot on things that short-term focus. And we have very specific actions in managing, obviously, our personnel staffing levels, another incremental best investments. And I've been really impressed with the team's work on automation. We've got some really great work on the data side and other areas that I think allowing us to provide and identify opportunities for process improvement and efficiencies. And we just actually had our one hundredth process automation, and that's automated over 1 million transactions. And just one example, Steve, of the kind of work the team's doing that, I think can drive long term productivity and efficiency in the organization. So I think that's obviously a near-term focus, but leveraging some of that technology is an opportunity for us.

是的。我只想補充一點，史蒂夫，你和我都認為這是短期的關注。顯然，我們在管理人員配備水準方面採取了非常具體的行動，這是另一個增量最佳投資。團隊在自動化方面的工作給我留下了深刻的印象。我們在數據方面和其他領域做了一些非常出色的工作，我認為這些工作使我們能夠提供和識別流程改進和效率的機會。我們實際上剛剛實現了第一百個流程自動化，並且自動化了超過 100 萬筆交易。史蒂夫，我認為團隊所做的工作可以提高組織的長期生產力和效率，這只是一個例子。所以我認為這顯然是近期的重點，但利用其中一些技術對我們來說是一個機會。

Okay, great. I appreciate all the color.

好的，太好了。我欣賞所有的顏色。

Thank you very much.

非常感謝。

Thanks, Dave. Our next question is from Damon DelMonte with KBW. Your line is now open.

謝謝，戴夫。我們的下一個問題來自 KBW 的 Damon DelMonte。您的線路現已開通。

Hey, good afternoon, guys. Hope everybody's doing well and welcome aboard. Simon on just wanted to follow up on the commentary on the margin. Mike, appreciate the color that you gave. Just wondering, do you anticipate doing any additional restructurings here in the early part of 24 or do you think those are done?

嘿，下午好，夥計們。希望大家一切順利，歡迎加入。西蒙只是想跟進邊緣的評論。麥克，欣賞你所賦予的色彩。只是想知道，您是否預計在 24 月初進行任何額外的重組，或者您認為這些重組已經完成嗎？

And I would say nothing imminent. I will just say that though, Damon, where constantly evaluating opportunities to optimize, if it if it makes sense and meet our ultimate financial parameters.

我不會說任何迫在眉睫的事情。不過，我只想說，達蒙，不斷評估最佳化機會，如果它有意義並滿足我們的最終財務參數。

Got you. Okay. And with regards to the outlook for loan growth, I think you had said low single digit for the year on kind of how are the commercial pipeline shaping up right now and how is that kind of split between C&I and CRE? Has there been any increase in demand on the C&I side or is it more real estate driven.

明白你了。好的。關於貸款成長的前景，我認為您曾說過，今年商業管道目前的情況如何，以及商業和工業與商業房地產之間的劃分如何，今年的貸款增長為低個位數？工商業方面的需求是否增加，或者是否更受房地產驅動？

And we're seeing some nice strength from the C&I and the real estate side. And certainly as rates start to come down, I think the resi side as well is going to pick up, particularly probably in the spring season, but we're seeing a nice, nice demand from our clients, and that's across the footprint as well. That's certainly across the Midcoast and then obviously into some of the southern areas, which I think is an area of focus for us. So that definitely is the demand out there. And I think that's a strategic, our strength that we have with the balance sheet and the position to continue to lend. And I think that's something we'll be very focused on this year.

我們看到工商業和房地產方面的一些不錯的實力。當然，隨著利率開始下降，我認為渣油方面也會回升，特別是在春季，但我們看到客戶的需求非常好，這也反映在整個足跡上。這當然是穿過中部海岸，然後顯然進入一些南部地區，我認為這是我們關注的領域。所以這肯定是市場的需求。我認為這是我們在資產負債表和繼續放款方面所擁有的策略優勢。我認為這是我們今年將非常關注的事情。

Great. Thank you for that. And then just lastly, if I could sneak one more in here and the outlook for the provision. As you kind of look at your reserve level, it's pretty flat over the course of 2023. Do you envision kind of keeping that flat and no kind of low charge-offs and then the provision just basically supporting the growth that you get to keep that that reserve our flat?

偉大的。謝謝你。最後，我是否可以在這裡再介紹一下該條款的前景。從你的儲備水準來看，你會發現 2023 年的儲備水準相當平穩。您是否設想保持這種持平並且沒有任何低沖銷，然後該撥備只是基本上支持您保持保留我們的持平的增長？

Yes, I think that's I think that's fair game. And I think we've right now feel good at the 90 basis points. And considering our view on the macro outlook, I do think to the extent that things start to shake out and that becomes a clearer light on what you the path forward from a macro position and call it normalization. There is certainly opportunity over time to potentially release reserves. And I think it was before we adopted the CECL accounting method or when we did, we were around 80 to 82 basis points. So I do I do think that we have some opportunity there, of course, will depend on macro conditions and just overall credit quality metrics. But right now, things certainly look good.

是的，我認為這是公平的遊戲。我認為我們現在對 90 個基點感覺良好。考慮到我們對宏觀前景的看法，我確實認為事情開始發生變化，這對宏觀立場的前進道路變得更加清晰，並將其稱為正常化。隨著時間的推移，肯定有機會釋放儲備。我認為在我們採用 CECL 會計方法之前或採用 CECL 會計方法時，我們的匯率約為 80 至 82 個基點。所以我確實認為我們在那裡有一些機會，當然，這將取決於宏觀條件和整體信用品質指標。但現在看來，情況確實不錯。

Right. Okay. That's all I had. Thank you very much, ExteNet.

正確的。好的。這就是我所擁有的一切。非常感謝你，ExteNet。

Our next question is from Matthew Breese with Stephens, Inc. Your line is now open.

我們的下一個問題來自 Stephens, Inc. 的 Matthew Breese。您的熱線現已開通。

Hey, good afternoon. Few questions from me. I first wanted to start with Mike. You'd mentioned that tax rate this year. It sounds like it's going to be a step down in the 18% kind of 18% range. I'm assuming that lower range is partly because of the tax credit investments. So one is that is, in fact, correct, too. And what I've seen historically, when folks investment tax credits is usually some sort of some expense or contract an income item that flows through fees. If that's the case, could you just enlighten us as to what that is and how much and is that included in the overall guidance you provided?

嘿，下午好。我提出的問題很少。我首先想從麥克開始。您提到了今年的稅率。聽起來好像會在 18% 的範圍內下降。我假設較低的範圍部分是由於稅收抵免投資。事實上，這也是正確的。我從歷史上看到，當人們投資稅收抵免通常是某種費用或合約通過費用流動的收入項目時。如果是這樣，您能否告訴我們這是什麼、有多少以及是否包含在您提供的整體指導中？

Sure. Great question, Matt. So we anticipate our effective rate to be around 18.7%. In part the rationale cost before I get to the renewable energy project there, Matt, is just the makeup of our revenue sources, if you will, is just the changing over time as our revenues come down, some of our tax exempt income as just a larger percentage and in part that's driving a lower tax rate right now as we think about the renewable energy project from solar power project. So that from an accounting perspective, we will account for that all within the income tax line item. So we do not anticipate that running through any of the operating expenses. I think that the new accounting method out the proportional amortization method that we're now allowed to use for those comps. So I think it makes it ultimately a little bit cleaner from an overall income statement perspective. And that's our intention to run it through the income tax expense.

當然。好問題，馬特。所以我們預計有效率在18.7%左右。馬特，在我開始在那裡的可再生能源項目之前，部分理由成本只是我們收入來源的組成，如果你願意的話，只是隨著我們收入下降而隨著時間的推移而變化，我們的一些免稅收入只是當我們考慮太陽能專案中的再生能源專案時，更大的百分比，部分地推動了目前較低的稅率。因此，從會計角度來看，我們將把所有這些都計入所得稅項目中。因此，我們預計不會產生任何營運費用。我認為新的會計方法取代了我們現在可以對這些比較使用的比例攤銷方法。因此，我認為從整體損益表的角度來看，這最終會變得更加清晰一些。我們的目的是透過所得稅費用來管理它。

Yes, I completely agree with you there. The second thing I wanted to touch on, and I am probably not going to get an exact answer here but would love your thoughts as I think about what's unfolded for Camden during this higher rate environment, you've done pretty well on the deposit front with the, you know, less than less than 190, all in cost deposits. But the thing that's held up the margin is loan yields have been kind of slow to reprice and there's a good chunk of loans that are in lower yielding budget buckets such as resin. And so as we look at the entirety of the loan portfolio, how much is yielding on the lower end of the spectrum, call it, 4% or below. And as you think about that bucket and repaying and flow into higher yielding on security, now, how long is that going to take what is the duration of some of the lower yielding paper?

是的，我完全同意你的觀點。我想談的第二件事，我可能不會在這裡得到確切的答案，但當我想到卡姆登在這種較高利率環境下所發生的事情時，我會喜歡你的想法，你在存款方面做得很好你知道，不到190，全部都是成本押金。但支撐利潤率的因素是貸款收益率重新定價的速度有點慢，而且有很大一部分貸款屬於收益率較低的預算類別，例如樹脂。因此，當我們審視整個貸款組合時，會發現收益率處於較低端的數量有多少，即 4% 或更低。當你考慮這一桶、償還並流入更高的證券收益率時，現在，這需要多長時間，一些低收益率票據的期限是多少？

It's a great, great question that I don't have probably a direct answer for you there, but I do think I mean we do have a certainly a good chunk of our residential portfolio and some on the commercial side, certainly to your point that during I think it was 21 and 22. In particular, we were adding quite a quite a bit into the resi portfolio and onto our book at coupons in the 3, 3.5 call it, I do think it will take some time. Certainly for those from those compounds, too, it would make their way off or just your normal cash flow off. So we will see a bit of compression there. I do think for the long, long term in terms of those asset yields on the resi side picking up, we are in terms of the residential mortgages, we are trying to be very prudent in terms of what we put on now in terms of rates. That said, rates, as you know, which is the 10-year dropping recently, we're seeing a lot of competitive pricing in the low sixes right now. We're not we're not there from a pricing perspective on the rescue side, but certainly something of an overall pressure and market perspective, that is something that we're dealing with at the moment. So I don't know if I answered your question there directly map, but I don't I don't have the duration piece right in front of me at the moment.

這是一個非常非常好的問題，我可能無法直接回答您，但我確實認為我們的住宅投資組合中確實有很大一部分，還有一些是商業方面的，當然符合您的觀點我記得是21號和22號。特別是，我們在 Resi 投資組合中添加了相當多的內容，並在 3、3.5 的優惠券書籍中添加了相當多的內容，我確實認為這需要一些時間。當然，對於那些來自這些化合物的人來說，它也會讓他們消失，或者只是你正常的現金流。所以我們會在那裡看到一些壓縮。我確實認為，從長遠來看，就儲蓄方面的資產收益率而言，我們在住宅抵押貸款方面，我們正在努力對我們現在的利率採取非常謹慎的態度。也就是說，如你所知，利率最近十年來一直在下降，我們現在看到很多有競爭力的價格都處於低位。我們不是從救援方面的定價角度來看，但肯定是整體壓力和市場角度，這是我們目前正在處理的問題。所以我不知道我是否直接在地圖上回答了你的問題，但我沒有，目前我面前沒有持續時間。

Well, I've tried another way. You know, there is some optimism there as we get to the back half of the year in rate cuts and assuming that continues into 2025, when you think you can that can get back to earning and above 1% ROA that that were all kind of Easter?

嗯，我嘗試了另一種方法。你知道，隨著我們進入下半年降息，並假設這種情況持續到 2025 年，當你認為可以恢復盈利並超過 1% 的 ROA 時，人們會感到樂觀。復活節？

Yes, I think it's I think it's as we anticipated the back half of the year, we're going to see some level of margin expansion even I think I made a comment in the earlier set set Fed rate cuts aside, we have $100 million of derivative today on the commercial real estate book that will be falling off. That has been a drag. We anticipate that alone will be somewhere in the neighborhood of six to eight basis points of margin pickup. And then you couple that with just our CD repricing I think 90 over 90% of our book on the CDs reprices over the next year. So we'll get some benefit there as those continue to reprice. And certainly, we anticipate those repricing down. And then just coupled with the continued investment in our retail cash flow going into higher asset yields and really leveraging our investment book as well.

是的，我認為正如我們對今年下半年的預期一樣，我們將看到一定程度的利潤率擴張，即使我認為我在早些時候設定的美聯儲降息中發表了評論，我們有 1 億美元今天商業地產帳面上的衍生性商品將會下跌。這一直是個拖累。我們預計僅利潤率就會上升六到八個基點附近。然後你將其與我們的 CD 重新定價結合起來，我認為我們 90% 以上的 CD 書籍將在明年重新定價。因此，隨著這些產品繼續重新定價，我們將在那裡獲得一些好處。當然，我們預計這些產品會重新定價。然後，再加上我們對零售現金流的持續投資，將獲得更高的資產收益率，並真正利用我們的投資帳簿。

So we do see anticipate our margin picking up.

因此，我們確實預計我們的利潤率將會上升。

And so probably when we think about an ROA north of 1%, we're probably looking into next year, realistically, but I think over the course of the year, we're making strides in the right direction to get back there.

因此，當我們考慮 1% 以上的 ROA 時，實際上我們可能會考慮明年，但我認為在這一年中，我們正在朝著正確的方向邁進，以回到那個水平。

Got it. Okay. Simon, just a couple more for you, if you don't mind. You know, you're first of all, welcome. And as you've kind of spent time with all the various business lines, just curious, where do you see the greatest potential for change within Camden and what opportunities or geographies are there that Camden is currently not involved in today, but could be seen?

知道了。好的。西蒙，如果你不介意的話，再給你幾個。你知道，首先，歡迎你。由於您已經花時間研究了所有不同的業務線，只是好奇，您認為卡姆登內部最大的變革潛力在哪裡，以及卡姆登目前尚未涉及但可以看到的機會或地區有哪些？

Yes. Thanks for the question, Matt. Really appreciate it. And I think, look, I think from a and from a growth perspective, and I think about it in a couple of ways. I think the existing footprint, I think office offers continued opportunities too, and to deepen our relationships in the Mid Coast and down these markets. We have obviously high share in those markets, but think great opportunities to continue to strengthen see particular opportunities around Business Banking I think the wealth business as well as a strong business for us. And I think we're looking to continue that strength. I think there's also new other markets as well. We have less market share, lower market share in the southern end, our Portland, Portsmouth markets and some of the markets on the southern end, I think offer great opportunities for us to continue to develop relationships. We have a strong commercial franchise, as you know, that operates in those markets, and I think we can continue to build out there. And again, along the lines of the commercial strength that we have and the relationships we have and look to I deepen those relationships and particularly on the wealth side, home equity is another business that interests us and I think is a nice component of our residential business. And I think that's another area we're looking at better and I'm excited by the footprint. It's got some nicer and opportunities to continue to grow. And the one thing I've been struck with in my meeting with colleagues and customers is just the tremendous partnership that that our other colleagues our stakeholders have and the relationships they have in the community. And I think that's a great foundation for us to build on.

是的。謝謝你的提問，馬特。真的很感激。我認為，看，我從成長的角度思考，我從幾個方面思考這個問題。我認為現有的足跡，我認為辦公室也提供了持續的機會，並加深我們在中部海岸和這些市場的關係。我們在這些市場中顯然擁有很高的份額，但認為繼續加強的巨大機會看到了商業銀行業務的特殊機會，我認為財富業務以及我們的強大業務。我認為我們希望繼續保持這種優勢。我認為還有其他新市場。我們的市場份額較少，南端的市場份額較低，我們的波特蘭、朴茨茅斯市場以及南端的一些市場，我認為為我們繼續發展關係提供了很好的機會。如您所知，我們在這些市場上擁有強大的商業特許經營權，我認為我們可以繼續在那裡發展。再說一遍，根據我們擁有的商業實力和我們擁有的關係，並希望加深這些關係，特別是在財富方面，房屋淨值是我們感興趣的另一項業務，我認為這是我們住宅的一個很好的組成部分商業。我認為這是我們正在更好地關注的另一個領域，我對足跡感到興奮。它有一些更好的機會和繼續發展的機會。在與同事和客戶會面時，令我印象深刻的一件事就是我們的其他同事、我們的利害關係人之間的巨大夥伴關係以及他們在社群中的關係。我認為這是我們繼續發展的良好基礎。

I appreciate that. Just the last one is I would love your perspective on M&A. Historically can mean, if you look back over the last 20, 25 years, is one kind of a 50/50 or 60/40 mix between organic growth and M&A to drive overall balance sheet growth. And that's probably an older metric at this point. But I think it still holds true over the long term. What are your thoughts on M&A, and that's something that we'll be part of the repertoire here going forward.

我很感激。最後一個是我很喜歡你對併購的看法。從歷史上看，如果你回顧過去 20、25 年，有機成長和併購之間是一種 50/50 或 60/40 的混合，以推動整體資產負債表的成長。目前這可能是一個較舊的指標。但我認為從長遠來看它仍然成立。您對併購有何看法，這將是我們今後討論的內容。

Yes. Thanks, Matt. And the strength of our position obviously affords us to be opportunistic first with regard to M&A. But at the same time, I don't think we have feel pressure to do a deal unless it makes sense. Financially, I think it's always going to be the right deal. We're not going to chase anything over a hill and we have plenty of organic opportunities to grow. We've got a great team and great markets, and we see tremendous opportunity there and that but if the right opportunity came along, we'll be opportunistic. And that's certainly, I think part of the playbook.

是的。謝謝，馬特。我們的優勢地位顯然使我們能夠在併購方面首先抓住機會。但同時，我認為除非達成協議，否則我們不會感到有壓力。從財務角度來看，我認為這總是正確的交易。我們不會過度追求任何東西，我們有很多有機的成長機會。我們擁有一支優秀的團隊和龐大的市場，我們看到了巨大的機會，但如果合適的機會出現，我們將抓住機會。我認為這當然是劇本的一部分。

Understood. That's all I had. I know it's a long winded, but I appreciate taking all my questions. Thank you.

明白了。這就是我所擁有的一切。我知道這很囉嗦，但我很高興回答我所有的問題。謝謝。

We have no further questions registered.

我們沒有登記任何其他問題。

So this concludes our question and answer session. I would like to turn the conference back over to Simon for closing remarks.

我們的問答環節到此結束。我想將會議轉回西蒙進行閉幕致詞。

Thanks a lot, and I just want to thank you all for your time today. And of course, your interest in Camden National Corporation. We wish you all have a great rest of your day. Thanks for joining.

非常感謝，我只想感謝大家今天抽出寶貴的時間。當然，還有您對卡姆登國家公司的興趣。我們祝福大家有個愉快的一天。感謝您的加入。

That concludes today's call. Thank you all for attending today's presentation. You may now disconnect your lines.

今天的電話會議到此結束。感謝大家參加今天的演講。現在您可以斷開線路。