EX-99.1 2 ex991earningsreleaseq319.htm EXHIBIT 99.1
CONTACT:
Michael Archer
Senior Vice President
Corporate Controller
Camden National Corporation
(800) 860-8821
marcher@CamdenNational.com
FOR IMMEDIATE RELEASE
CAMDEN NATIONAL CORPORATION REPORTS A 3% INCREASE
IN THIRD QUARTER 2019 EARNINGS OVER LAST YEAR
Third Quarter 2019 Net Income of $14.5 Million and Diluted Earnings Per Share of $0.94
CAMDEN, Maine, October 29, 2019/PRNewswire/--Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”), a $4.5 billion bank holding company headquartered in Camden, Maine, reported net income for the third quarter of 2019 of $14.5 million, an increase of 3% over the third quarter of 2018, and diluted earnings per share ("EPS") of $0.94, an increase of 4% over the same period. For the third quarter of 2019, the Company's return on average assets was 1.29% and return on average equity was 12.26%.
"We are pleased with our financial results for the third quarter with 3% growth in net income over the third quarter last year, and 7% growth through the first nine months over the same period last year," said Gregory A. Dufour, President and Chief Executive Officer of the Company. "We look to finish 2019 strong to cap off another outstanding year, despite the challenges of a low interest rate environment and inverted yield curve. As we gear up for 2020, we will continue to focus on driving profitable growth and managing our net interest margin to promote the long-term financial success for our Company and shareholders."
In September 2019, Camden National was named to the Sandler O'Neill Sm-All Stars Class of 2019. Camden National was one of 30 publicly traded banks and thrifts—and the only bank headquartered in New England—to be recognized. To earn Sm-All Star status, companies needed to have a market capitalization below $2.5 billion, and were selected based on various financial screening criteria, including growth, profitability, credit quality and capital strength.
"Camden National is thrilled to be selected for the Sandler O’Neill Sm-All Stars from among 394 qualifying financial institutions nationwide,” said Dufour. “This recognition is a testament to the success of our measured, balanced approach and to the outstanding dedication of our talented employees.”
For the third quarter of 2019, Camden National declared a $0.30 dividend per share, representing an annualized dividend yield of 2.77% as of September 30, 2019.
The Company continues to actively repurchase shares of its common stock through its open share repurchase program. As of October 10, 2019, the Company repurchased 433,953 shares of its common stock, or 56% of its allotted program shares, at a weighted-average share price of $42.47.

FINANCIAL HIGHLIGHTS

• | Third quarter 2019 net income increased 3% over the third quarter of 2018 and 10% over the previous quarter.

• | Third quarter 2019 efficiency ratio, calculated as non-interest expense divided by total revenues 1, was 55.67%.

• | Third quarter 2019 average deposits grew 15% over the third quarter of 2018 and 4% over the previous quarter. Average core deposits 2 grew 16% over the third quarter of 2018 and 4% over the previous quarter.

• | Third quarter 2019 net interest margin was 3.09% on a fully-taxable basis, a decrease of 5 basis points compared to the third quarter of 2018 and a decrease of 2 basis points compared to the previous quarter.

• | Increased deposit market share for the State of Maine to 11.4% based on the FDIC's June 30, 2019 Summary of Deposits report, retaining our #2 ranking.

FINANCIAL CONDITION
Total assets increased 5% since December 31, 2018, to $4.5 billion at September 30, 2019. Over this period, the loan portfolio grew $84.4 million, or 3%, led by residential real estate loan growth of $69.0 million, or 7%, and commercial loan growth of $30.0 million, or 7%. The commercial real estate loan portfolio decreased $14.0 million, or 1%, since December 31, 2018, due to elevated prepayments. Commercial real estate loan activity continues to be steady within our markets. While we continue to actively review many of these commercial real estate opportunities, we remain disciplined in our lending as we are focused on the Company's long-term success, which includes appropriate credit structures and prudent management of net interest margin in the current environment.
Total deposits increased 4% since December 31, 2018, to $3.6 billion at September 30, 2019, led by checking account growth of 13% and certificates of deposits ("CDs") growth of 22%, while savings and money market balances decreased 3%. In the second half of each year, the Company typically benefits from an increase in seasonal low-cost deposits, and, as a result, checking deposits grew 6% during the third quarter of 2019. The growth in CDs for the nine months ended September 30, 2019, was primarily due to one large depositor shifting $70.0 million of funding from interest checking to CDs in the second quarter of 2019. The Company's loan-to-deposit ratio improved to 86% at September 30, 2019, compared to 87% at December 31, 2018.
The Company's capital position at September 30, 2019 was well in excess of regulatory requirements, including a total risk-based capital ratio of 13.97% and a Tier I leverage ratio of 9.39%. At September 30, 2019, the Company's common equity ratio was 10.43% and tangible common equity ratio 3 was 8.44%.
ASSET QUALITY
As of September 30, 2019, the Company's asset quality remained very strong with non-performing assets of $13.5 million, or 0.30% of total assets, and past due loans of $5.8 million, or 0.19% of total loans. Net charge-offs to average loans for the third quarter 2019 increased to 0.16% primarily due to two residential foreclosures impacting the residential mortgage and home equity loan portfolios. Net charge-offs to average loans for the nine months ended September 30, 2019 and 2018 remained consistent at 0.07%.
The provision for credit losses for the third quarter of 2019 was $730,000, or 0.09% of average loans for the quarter on an annualized basis, compared to 0.15% of average loans for the previous quarter and 0.05% of average loans for the third quarter of 2018.
OPERATING RESULTS (Third Quarter 2019 vs. Third Quarter 2018)
Net income for the third quarter of 2019 was $14.5 million, an increase of $431,000, or 3%, over the third quarter of 2018. Diluted EPS for the third quarter of 2019 was $0.94, an increase of $0.04, or 4%, over the third quarter of 2018.

Net interest income for the third quarter of 2019 was $31.9 million, an increase of $1.5 million, or 5%, over the third quarter of 2018.

• | Average loans grew $221.6 million, or 8%, to $3.1 billion.

• | Average deposits grew $440.7 million, or 15%, to $3.3 billion driven by average core deposit 2 growth of 16%.

• | Net interest margin decreased 5 basis points to 3.09% as the cost of funds increased 20 basis points, compared to an increase in asset yield of 14 basis points.

Non-interest income for the third quarter of 2019 was $10.7 million, an increase of $347,000, or 3%, over the third quarter of 2018. Non-interest income for the third quarter of 2019 and 2018 represented 25% of total revenues 1.

• | Mortgage banking income for the third quarter increased $910,000, or 52%, over the third quarter of 2018 driven by a 49% increase in loans sold between periods and a significant increase in the residential mortgage pipeline between periods.

• | An increase in debit card income of $259,000 driven by an increase in customer transactions.

• | The increase was partially offset by a $663,000 decrease in investment security gains.

Non-interest expense for the third quarter of 2019 was $23.7 million, an increase of $582,000, or 3%. The Company's non-GAAP efficiency ratio 3 for the third quarter of 2019 was 55.32%, compared to 57.33% for the third quarter of 2018.

• | Compensation related costs increased $461,000, or 4%, between periods driven by normal merit increases year-over-year and additional employees.

• | Furniture, equipment and data processing costs increased $133,000, or 5%, between periods driven by our continued investment in technology solutions.

• | The increase was partially offset by a decrease in regulatory assessments of $265,000 as the Company received a Small Bank Assessment Credit from the FDIC for its second quarter 2019 fees in the third quarter of 2019. The Company anticipates further assessment fee credits in future quarters should the FDIC Deposit Insurance Fund reserve ratio continue to exceed its regulatory limit.

OPERATING RESULTS (Linked Quarter)
Net income for the third quarter of 2019 increased $1.3 million, or 10%, compared to the previous quarter. Diluted EPS increased $0.09, or 11%, over the same period.
Net interest income for the third quarter of 2019 increased $350,000, or 1%, over last quarter.

• | Average loans grew 1% over the previous quarter.

• | Average deposits grew 4% over the previous quarter driven by average checking account growth between quarters of $74.9 million, or 5%, as we benefit from seasonal deposit inflows.

• | Net interest margin on a fully-taxable equivalent basis between periods decreased 2 basis points between quarters to 3.09% for the third quarter of 2019. The asset yield declined 7 basis points between quarters reflective of the overall interest rate environment, which included (i) two Fed Funds rate cuts in the third quarter of 2019 for a total of 50 basis points and (ii) a decrease in the average 10-year treasury yield between quarters of 48 basis points to 1.86% for the third quarter of 2019. Funding costs decreased 5 basis points to 1.08% between quarters driven by the repricing of indexed deposits and borrowings, and active management of exception pricing.

Non-interest income for the third quarter of 2019 increased $702,000, or 7%, over the last quarter led by a 53% increase in mortgage banking income between quarters driven primarily by seasonality of business within our markets.

Non-interest expense for the third quarter of 2019 decreased $210,000, or 1%, compared to the previous quarter primarily due to a decrease in regulatory assessment fees of $255,000 as a result of the FDIC Small Bank Assessment Credit received in the third quarter of 2019.
CONFERENCE CALL
Camden National will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, October 29, 2019 to discuss its third quarter 2019 financial results and outlook. Participants should dial in to the call 10 - 15 minutes before it begins. Information about the conference call is as follows:
Live dial-in (domestic): (888) 349-0139
Live dial-in (international): (412) 542-4154
Live webcast: https://services.choruscall.com/links/cac191029.html
A link to the live webcast will be available on Camden National's website under "Investor Relations" at www.CamdenNational.com prior to the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ:CAC) is the largest publicly traded bank holding company in Northern New England with $4.5 billion in assets and nearly 650 employees. Camden National Bank, its subsidiary, is a full-service community bank founded in 1875 in Camden, Maine. Dedicated to customers at every stage of their financial journey, the bank offers the latest in digital banking, complemented by personalized service with 61 banking centers, 24/7 live phone support, 71 ATMs, and lending offices in New Hampshire and Massachusetts. Camden National Bank was named one of two "Customer Experience Leaders in U.S. Retail Banking" by Greenwich Associates, and in 2019, it was the only New England based organization included in Sandler O'Neill's "Bank and Thrift Sm-All Star" list of high-performing financial institutions. The Finance Authority of Maine has awarded Camden National Bank as "Lender at Work for Maine" for nine years. Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management. To learn more, visit CamdenNational.com. Member FDIC.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections and other statements, which are subject to numerous risks, assumptions and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; changes in the interest rate environment; changes in general economic conditions; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; changes in the securities markets and other risks and uncertainties disclosed from time to time in in Camden National’s Annual Report on Form 10-K for the year ended December 31, 2018, as updated by other filings with the Securities and Exchange Commission ("SEC"). Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES
In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures, such as return on average tangible equity; the efficiency and tangible common equity ratios; and tangible book value per share. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliation to the comparable GAAP financial measure can be found in this document.
ANNUALIZED DATA
Certain returns, yields and performance ratios are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period, and are presented for illustrative purposes only.
_____________________________________________________________________________________________
1 Revenue is the sum of net interest income and non-interest income.

2 | Core deposits include non-interest checking, interest checking, savings and money market deposits.

3 | This is a non-GAAP measure. Please refer to "Reconciliation of non-GAAP to GAAP Financial Measures" for further details.

Selected Financial Data (unaudited)
|  | At or For The Three Months Ended |  | At or For The Nine Months Ended
(In thousands, except number of shares and per share data) |  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
Financial Condition Data |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 926,444 |  |  | $ | 933,100 |  |  | $ | 887,835 |  |  | $ | 926,444 |  |  | $ | 887,835 |
Loans and loans held for sale |  | 3,127,083 |  |  | 3,113,437 |  |  | 2,919,001 |  |  | 3,127,083 |  |  | 2,919,001 |
Allowance for loan losses |  | 25,688 |  |  | 26,163 |  |  | 23,526 |  |  | 25,688 |  |  | 23,526 |
Total assets |  | 4,520,315 |  |  | 4,447,038 |  |  | 4,189,745 |  |  | 4,520,315 |  |  | 4,189,745 |
Deposits |  | 3,617,963 |  |  | 3,591,610 |  |  | 3,220,755 |  |  | 3,617,963 |  |  | 3,220,755 |
Borrowings |  | 342,459 |  |  | 310,638 |  |  | 479,498 |  |  | 342,459 |  |  | 479,498 |
Shareholders' equity |  | 471,672 |  |  | 467,759 |  |  | 415,686 |  |  | 471,672 |  |  | 415,686 |
Operating Data |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 31,923 |  |  | $ | 31,573 |  |  | $ | 30,423 |  |  | $ | 95,391 |  |  | $ | 88,806 |
Provision for credit losses |  | 730 |  |  | 1,173 |  |  | 354 |  |  | 2,647 |  |  | 840 |
Non-interest income |  | 10,739 |  |  | 10,037 |  |  | 10,392 |  |  | 30,165 |  |  | 28,697 |
Non-interest expense |  | 23,748 |  |  | 23,958 |  |  | 23,166 |  |  | 70,489 |  |  | 68,365 |
Income before income tax expense |  | 18,184 |  |  | 16,479 |  |  | 17,295 |  |  | 52,420 |  |  | 48,298 |
Income tax expense |  | 3,696 |  |  | 3,275 |  |  | 3,238 |  |  | 10,455 |  |  | 9,204 |
Net income |  | $ | 14,488 |  |  | $ | 13,204 |  |  | $ | 14,057 |  |  | $ | 41,965 |  |  | $ | 39,094 |
Key Ratios |  |  |  |  |  |  |  |  |  |
Return on average assets |  | 1.29 | % |  | 1.21 | % |  | 1.34 | % |  | 1.28 | % |  | 1.27 | %
Return on average equity |  | 12.26 | % |  | 11.63 | % |  | 13.44 | % |  | 12.32 | % |  | 12.83 | %
GAAP efficiency ratio |  | 55.67 | % |  | 57.58 | % |  | 56.76 | % |  | 56.14 | % |  | 58.18 | %
Common equity ratio |  | 10.43 | % |  | 10.52 | % |  | 9.92 | % |  | 10.43 | % |  | 9.92 | %
Net interest margin (fully-taxable equivalent) |  | 3.09 | % |  | 3.11 | % |  | 3.14 | % |  | 3.13 | % |  | 3.11 | %
Non-performing assets to total assets |  | 0.30 | % |  | 0.34 | % |  | 0.46 | % |  | 0.30 | % |  | 0.46 | %
Tier I leverage capital ratio |  | 9.39 | % |  | 9.51 | % |  | 9.42 | % |  | 9.39 | % |  | 9.42 | %
Total risk-based capital ratio |  | 13.97 | % |  | 14.12 | % |  | 14.55 | % |  | 13.97 | % |  | 14.55 | %
Per Share Data |  |  |  |  |  |  |  |  |  |
Basic earnings per share |  | $ | 0.94 |  |  | $ | 0.85 |  |  | $ | 0.90 |  |  | $ | 2.70 |  |  | $ | 2.50 |
Diluted earnings per share |  | $ | 0.94 |  |  | $ | 0.85 |  |  | $ | 0.90 |  |  | $ | 2.70 |  |  | $ | 2.50 |
Cash dividends declared per share |  | $ | 0.30 |  |  | $ | 0.30 |  |  | $ | 0.30 |  |  | $ | 0.90 |  |  | $ | 0.85 |
Book value per share |  | $ | 30.98 |  |  | $ | 30.26 |  |  | $ | 26.67 |  |  | $ | 30.98 |  |  | $ | 26.67 |
Non-GAAP Measures(1) |  |  |  |  |  |  |  |  |  |
Return on average tangible equity |  | 15.67 | % |  | 15.00 | % |  | 17.84 | % |  | 15.89 | % |  | 17.15 | %
Efficiency ratio |  | 55.32 | % |  | 57.27 | % |  | 57.33 | % |  | 55.82 | % |  | 58.14 | %
Tangible common equity ratio |  | 8.44 | % |  | 8.49 | % |  | 7.74 | % |  | 8.44 | % |  | 7.74 | %
Tangible book value per share |  | $ | 24.52 |  |  | $ | 23.88 |  |  | $ | 20.31 |  |  | $ | 24.52 |  |  | $ | 20.31 |

(1) Please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."

Consolidated Statements of Condition Data (unaudited)
(In thousands, except number of shares) |  | September 30, 2019 |  | December 31, 2018 |  | September 30, 2018
ASSETS |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 63,620 |  |  | $ | 52,240 |  |  | $ | 48,124 |
Interest-bearing deposits in other banks (including restricted cash) |  | 73,912 |  |  | 14,759 |  |  | 50,218 |
Total cash, cash equivalents and restricted cash |  | 137,532 |  |  | 66,999 |  |  | 98,342 |
Investments: |  |  |  |  |  |  |  |  |
Available-for-sale securities, at fair value (book value of $903,988, $933,399 and $905,370, respectively) |  | 913,523 |  |  | 910,692 |  |  | 869,626 |
Held-to-maturity securities, at amortized cost (fair value of $1,352, $1,291 and $1,267, respectively) |  | 1,303 |  |  | 1,307 |  |  | 1,308 |
Other investments |  | 11,618 |  |  | 14,679 |  |  | 16,901 |
Total investments |  | 926,444 |  |  | 926,678 |  |  | 887,835 |
Loans held for sale, at fair value (book value of $16,630, $4,314 and $10,188, respectively) |  | 16,449 |  |  | 4,403 |  |  | 10,158 |
Loans: |  |  |  |  |  |
Commercial real estate |  | 1,255,519 |  |  | 1,269,533 |  |  | 1,215,979 |
Residential real estate |  | 1,061,898 |  |  | 992,866 |  |  | 941,488 |
Commercial(1) |  | 445,466 |  |  | 415,436 |  |  | 405,666 |
Consumer and home equity |  | 347,751 |  |  | 348,387 |  |  | 345,710 |
Total loans |  | 3,110,634 |  |  | 3,026,222 |  |  | 2,908,843 |
Less: allowance for loan losses |  | (25,688 | ) |  | (24,712 | ) |  | (23,526 | )
Net loans |  | 3,084,946 |  |  | 3,001,510 |  |  | 2,885,317 |
Goodwill |  | 94,697 |  |  | 94,697 |  |  | 94,697 |
Other intangible assets |  | 3,701 |  |  | 4,230 |  |  | 4,411 |
Bank-owned life insurance |  | 91,729 |  |  | 89,919 |  |  | 89,312 |
Premises and equipment, net |  | 40,930 |  |  | 42,495 |  |  | 41,277 |
Deferred tax assets |  | 15,656 |  |  | 23,053 |  |  | 26,241 |
Other assets |  | 108,231 |  |  | 43,451 |  |  | 52,155 |
Total assets |  | $ | 4,520,315 |  |  | $ | 4,297,435 |  |  | $ | 4,189,745 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |
Non-interest checking |  | $ | 573,621 |  |  | $ | 496,729 |  |  | $ | 530,778 |
Interest checking |  | 1,147,627 |  |  | 1,023,373 |  |  | 966,307 |
Savings and money market |  | 1,105,290 |  |  | 1,137,356 |  |  | 996,790 |
Certificates of deposit |  | 541,199 |  |  | 443,912 |  |  | 446,414 |
Brokered deposits |  | 250,226 |  |  | 363,104 |  |  | 280,466 |
Total deposits |  | 3,617,963 |  |  | 3,464,474 |  |  | 3,220,755 |
Short-term borrowings |  | 273,454 |  |  | 270,868 |  |  | 409,732 |
Long-term borrowings |  | 10,000 |  |  | 11,580 |  |  | 10,738 |
Subordinated debentures |  | 59,005 |  |  | 59,067 |  |  | 59,028 |
Accrued interest and other liabilities |  | 88,221 |  |  | 55,621 |  |  | 73,806 |
Total liabilities |  | 4,048,643 |  |  | 3,861,610 |  |  | 3,774,059 |
Shareholders’ equity |  | 471,672 |  |  | 435,825 |  |  | 415,686 |
Total liabilities and shareholders’ equity |  | $ | 4,520,315 |  |  | $ | 4,297,435 |  |  | $ | 4,189,745 |

(1) Includes the HPFC loan portfolio.

Consolidated Statements of Income Data (unaudited)
|  | For The Three Months Ended
(In thousands, except per share data) |  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018
Interest Income |  |  |  |  |  |  |  |  |
Interest and fees on loans |  | $ | 36,207 |  |  | $ | 36,092 |  |  | $ | 32,813 |
Taxable interest on investments |  | 4,794 |  |  | 4,941 |  |  | 4,408 |
Nontaxable interest on investments |  | 675 |  |  | 624 |  |  | 659 |
Dividend income |  | 158 |  |  | 174 |  |  | 367 |
Other interest income |  | 686 |  |  | 606 |  |  | 310 |
Total interest income |  | 42,520 |  |  | 42,437 |  |  | 38,557 |
Interest Expense |  |  |  |  |  |  |  |  |
Interest on deposits |  | 8,963 |  |  | 9,156 |  |  | 5,255 |
Interest on borrowings |  | 801 |  |  | 885 |  |  | 2,021 |
Interest on subordinated debentures |  | 833 |  |  | 823 |  |  | 858 |
Total interest expense |  | 10,597 |  |  | 10,864 |  |  | 8,134 |
Net interest income |  | 31,923 |  |  | 31,573 |  |  | 30,423 |
Provision for credit losses |  | 730 |  |  | 1,173 |  |  | 354 |
Net interest income after provision for credit losses |  | 31,193 |  |  | 30,400 |  |  | 30,069 |
Non-Interest Income |  |  |  |  |  |  |  |  |
Debit card income |  | 2,432 |  |  | 2,281 |  |  | 2,173 |
Service charges on deposit accounts |  | 1,970 |  |  | 2,209 |  |  | 2,072 |
Mortgage banking income, net |  | 2,668 |  |  | 1,742 |  |  | 1,758 |
Income from fiduciary services |  | 1,444 |  |  | 1,545 |  |  | 1,339 |
Brokerage and insurance commissions |  | 625 |  |  | 732 |  |  | 615 |
Bank-owned life insurance |  | 613 |  |  | 603 |  |  | 606 |
Customer loan swap fees |  | 109 |  |  | 285 |  |  | 288 |
Net gain on sale of securities |  | 1 |  |  | 27 |  |  | 664 |
Other income |  | 877 |  |  | 613 |  |  | 877 |
Total non-interest income |  | 10,739 |  |  | 10,037 |  |  | 10,392 |
Non-Interest Expense |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  | 13,604 |  |  | 13,461 |  |  | 13,143 |
Furniture, equipment and data processing |  | 2,708 |  |  | 2,723 |  |  | 2,575 |
Net occupancy costs |  | 1,710 |  |  | 1,639 |  |  | 1,614 |
Consulting and professional fees |  | 892 |  |  | 974 |  |  | 958 |
Debit card expense |  | 960 |  |  | 883 |  |  | 833 |
Regulatory assessments |  | 182 |  |  | 437 |  |  | 447 |
Amortization of intangible assets |  | 177 |  |  | 176 |  |  | 182 |
Other real estate owned and collection costs, net |  | 251 |  |  | 409 |  |  | 239 |
Other expenses |  | 3,264 |  |  | 3,256 |  |  | 3,175 |
Total non-interest expense |  | 23,748 |  |  | 23,958 |  |  | 23,166 |
Income before income tax expense |  | 18,184 |  |  | 16,479 |  |  | 17,295 |
Income tax expense |  | 3,696 |  |  | 3,275 |  |  | 3,238 |
Net Income |  | $ | 14,488 |  |  | $ | 13,204 |  |  | $ | 14,057 |
Per Share Data |  |  |  |  |  |  |  |  |
Basic earnings per share |  | $ | 0.94 |  |  | $ | 0.85 |  |  | $ | 0.90 |
Diluted earnings per share |  | $ | 0.94 |  |  | $ | 0.85 |  |  | $ | 0.90 |

Consolidated Statements of Income Data (unaudited)
|  | For The Nine Months Ended September 30,
(In thousands, except per share data) |  | 2019 |  | 2018
Interest Income |  |  |  |  |  |
Interest and fees on loans |  | $ | 108,020 |  |  | $ | 94,014 |
Taxable interest on investments |  | 14,729 |  |  | 13,019 |
Nontaxable interest on investments |  | 1,943 |  |  | 1,989 |
Dividend income |  | 562 |  |  | 997 |
Other interest income |  | 1,712 |  |  | 905 |
Total interest income |  | 126,966 |  |  | 110,924 |
Interest Expense |  |  |  |
Interest on deposits |  | 26,542 |  |  | 13,463 |
Interest on borrowings |  | 2,660 |  |  | 6,099 |
Interest on subordinated debentures |  | 2,373 |  |  | 2,556 |
Total interest expense |  | 31,575 |  |  | 22,118 |
Net interest income |  | 95,391 |  |  | 88,806 |
Provision for credit losses |  | 2,647 |  |  | 840 |
Net interest income after provision for credit losses |  | 92,744 |  |  | 87,966 |
Non-Interest Income |  |  |  |
Debit card income |  | 6,723 |  |  | 6,228 |
Service charges on deposit accounts |  | 6,202 |  |  | 6,108 |
Mortgage banking income, net |  | 5,662 |  |  | 4,758 |
Income from fiduciary services |  | 4,381 |  |  | 4,029 |
Brokerage and insurance commissions |  | 1,942 |  |  | 1,950 |
Bank-owned life insurance |  | 1,810 |  |  | 1,823 |
Customer loan swap fees |  | 919 |  |  | 555 |
Net gain on sale of securities |  | 28 |  |  | 695 |
Other income |  | 2,498 |  |  | 2,551 |
Total non-interest income |  | 30,165 |  |  | 28,697 |
Non-Interest Expense |  |  |  |
Salaries and employee benefits |  | 40,043 |  |  | 38,433 |
Furniture, equipment and data processing |  | 8,111 |  |  | 7,710 |
Net occupancy costs |  | 5,263 |  |  | 5,112 |
Consulting and professional fees |  | 2,679 |  |  | 2,878 |
Debit card expense |  | 2,666 |  |  | 2,339 |
Regulatory assessments |  | 1,091 |  |  | 1,447 |
Amortization of intangible assets |  | 529 |  |  | 544 |
Other real estate owned and collection costs, net |  | 353 |  |  | 565 |
Other expenses |  | 9,754 |  |  | 9,337 |
Total non-interest expense |  | 70,489 |  |  | 68,365 |
Income before income tax expense |  | 52,420 |  |  | 48,298 |
Income tax expense |  | 10,455 |  |  | 9,204 |
Net Income |  | $ | 41,965 |  |  | $ | 39,094 |
Per Share Data |  |  |  |  |  |
Basic earnings per share |  | $ | 2.70 |  |  | $ | 2.50 |
Diluted earnings per share |  | $ | 2.70 |  |  | $ | 2.50 |

Quarterly Average Balance and Yield/Rate Analysis (unaudited)
|  | Average Balance |  | Yield/Rate
|  | For The Three Months Ended |  | For The Three Months Ended
(In thousands) |  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018
Assets |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits in other banks and other interest-earning assets |  | $ | 92,352 |  |  | $ | 59,901 |  |  | $ | 45,824 |  |  | 2.24 | % |  | 2.34 | % |  | 1.85 | %
Investments - taxable |  | 807,591 |  |  | 839,714 |  |  | 826,541 |  |  | 2.53 | % |  | 2.56 | % |  | 2.36 | %
Investments - nontaxable(1) |  | 98,378 |  |  | 90,087 |  |  | 97,775 |  |  | 3.47 | % |  | 3.51 | % |  | 3.41 | %
Loans(2): |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | 1,255,417 |  |  | 1,255,172 |  |  | 1,198,677 |  |  | 4.56 | % |  | 4.68 | % |  | 4.46 | %
Residential real estate |  | 1,062,728 |  |  | 1,032,215 |  |  | 934,029 |  |  | 4.31 | % |  | 4.34 | % |  | 4.16 | %
Commercial(1) |  | 399,689 |  |  | 389,166 |  |  | 351,980 |  |  | 4.65 | % |  | 4.72 | % |  | 4.56 | %
Consumer and home equity |  | 347,405 |  |  | 347,141 |  |  | 344,740 |  |  | 5.38 | % |  | 5.47 | % |  | 5.16 | %
HPFC |  | 25,973 |  |  | 29,472 |  |  | 38,356 |  |  | 8.40 | % |  | 7.83 | % |  | 7.64 | %
Municipal(1) |  | 22,730 |  |  | 20,117 |  |  | 24,603 |  |  | 3.60 | % |  | 3.56 | % |  | 3.06 | %
Total loans |  | 3,113,942 |  |  | 3,073,283 |  |  | 2,892,385 |  |  | 4.60 | % |  | 4.68 | % |  | 4.49 | %
Total interest-earning assets |  | 4,112,263 |  |  | 4,062,985 |  |  | 3,862,525 |  |  | 4.11 | % |  | 4.18 | % |  | 3.97 | %
Other assets |  | 345,618 |  |  | 315,604 |  |  | 301,489 |  |  |  |  |  |  |
Total assets |  | $ | 4,457,881 |  |  | $ | 4,378,589 |  |  | $ | 4,164,014 |  |  |  |  |  |  |
Liabilities & Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest checking |  | $ | 540,542 |  |  | $ | 485,724 |  |  | $ | 513,680 |  |  | — | % |  | — | % |  | — | %
Interest checking |  | 1,130,632 |  |  | 1,110,567 |  |  | 868,983 |  |  | 0.96 | % |  | 1.01 | % |  | 0.54 | %
Savings |  | 474,096 |  |  | 476,104 |  |  | 483,577 |  |  | 0.08 | % |  | 0.09 | % |  | 0.06 | %
Money market |  | 622,219 |  |  | 581,638 |  |  | 512,650 |  |  | 1.32 | % |  | 1.28 | % |  | 0.89 | %
Certificates of deposit |  | 533,110 |  |  | 516,972 |  |  | 481,059 |  |  | 1.64 | % |  | 1.60 | % |  | 1.18 | %
Total deposits |  | 3,300,599 |  |  | 3,171,005 |  |  | 2,859,949 |  |  | 0.85 | % |  | 0.86 | % |  | 0.53 | %
Borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Brokered deposits |  | 305,019 |  |  | 370,448 |  |  | 272,471 |  |  | 2.42 | % |  | 2.53 | % |  | 2.07 | %
Customer repurchase agreements |  | 234,362 |  |  | 246,935 |  |  | 244,189 |  |  | 1.26 | % |  | 1.30 | % |  | 1.08 | %
Subordinated debentures |  | 58,998 |  |  | 58,985 |  |  | 59,009 |  |  | 5.60 | % |  | 5.60 | % |  | 5.77 | %
Other borrowings |  | 11,273 |  |  | 15,940 |  |  | 249,341 |  |  | 1.96 | % |  | 2.17 | % |  | 2.16 | %
Total borrowings |  | 609,652 |  |  | 692,308 |  |  | 825,010 |  |  | 2.27 | % |  | 2.34 | % |  | 2.07 | %
Total funding liabilities |  | 3,910,251 |  |  | 3,863,313 |  |  | 3,684,959 |  |  | 1.08 | % |  | 1.13 | % |  | 0.88 | %
Other liabilities |  | 78,710 |  |  | 59,747 |  |  | 64,119 |  |  |  |  |  |  |
Shareholders' equity |  | 468,920 |  |  | 455,529 |  |  | 414,936 |  |  |  |  |  |  |
Total liabilities & shareholders' equity |  | $ | 4,457,881 |  |  | $ | 4,378,589 |  |  | $ | 4,164,014 |  |  |  |  |  |  |
Net interest rate spread (fully-taxable equivalent) |  | 3.03 | % |  | 3.05 | % |  | 3.09 | %
Net interest margin (fully-taxable equivalent) |  | 3.09 | % |  | 3.11 | % |  | 3.14 | %
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) |  | 3.05 | % |  | 3.07 | % |  | 3.09 | %

(1) | Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

(2) | Non-accrual loans and loans held for sale are included in total average loans.

(3) | Excludes the impact of the fair value mark accretion on loans and certificates of deposit generated in purchase accounting and collection of previously charged-off acquired loans for the three months ended September 30, 2019, June 30, 2019 and September 30, 2018 totaling $409,000, $439,000 and $434,000, respectively.

Year-to-Date Average Balance and Yield/Rate Analysis (unaudited)
|  | Average Balance |  | Yield/Rate
|  | For The Nine Months Ended |  | For The Nine Months Ended
(In thousands) |  | September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
Assets |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |
Interest-bearing deposits in other banks and other interest-earning assets |  | $ | 63,146 |  |  | $ | 52,076 |  |  | 2.26 | % |  | 1.60 | %
Investments - taxable |  | 832,780 |  |  | 829,248 |  |  | 2.55 | % |  | 2.30 | %
Investments - nontaxable(1) |  | 94,405 |  |  | 98,443 |  |  | 3.47 | % |  | 3.41 | %
Loans(2): |  |  |  |  |  |  |  |
Commercial real estate |  | 1,263,934 |  |  | 1,183,666 |  |  | 4.66 | % |  | 4.34 | %
Residential real estate |  | 1,034,609 |  |  | 893,531 |  |  | 4.31 | % |  | 4.16 | %
Commercial(1) |  | 386,338 |  |  | 351,224 |  |  | 4.69 | % |  | 4.42 | %
Consumer and home equity |  | 347,201 |  |  | 342,214 |  |  | 5.43 | % |  | 4.98 | %
HPFC |  | 29,183 |  |  | 41,079 |  |  | 8.03 | % |  | 7.82 | %
Municipal(1) |  | 19,421 |  |  | 21,318 |  |  | 3.56 | % |  | 3.16 | %
Total loans |  | 3,080,686 |  |  | 2,833,032 |  |  | 4.66 | % |  | 4.41 | %
Total interest-earning assets |  | 4,071,017 |  |  | 3,812,799 |  |  | 4.16 | % |  | 3.89 | %
Other assets |  | 321,060 |  |  | 296,395 |  |  |  |  |
Total assets |  | $ | 4,392,077 |  |  | $ | 4,109,194 |  |  |  |  |
Liabilities & Shareholders' Equity |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |
Non-interest checking |  | $ | 505,733 |  |  | $ | 477,048 |  |  | — | % |  | — | %
Interest checking |  | 1,108,999 |  |  | 847,431 |  |  | 0.98 | % |  | 0.46 | %
Savings |  | 478,573 |  |  | 486,773 |  |  | 0.08 | % |  | 0.06 | %
Money market |  | 595,659 |  |  | 502,719 |  |  | 1.27 | % |  | 0.79 | %
Certificates of deposit |  | 498,059 |  |  | 475,336 |  |  | 1.54 | % |  | 1.08 | %
Total deposits |  | 3,187,023 |  |  | 2,789,307 |  |  | 0.83 | % |  | 0.48 | %
Borrowings: |  |  |  |  |  |  |  |
Brokered deposits |  | 360,066 |  |  | 250,272 |  |  | 2.49 | % |  | 1.86 | %
Customer repurchase agreements |  | 239,917 |  |  | 243,037 |  |  | 1.27 | % |  | 0.95 | %
Subordinated debentures |  | 58,997 |  |  | 58,970 |  |  | 5.38 | % |  | 5.80 | %
Other borrowings |  | 23,847 |  |  | 302,238 |  |  | 2.17 | % |  | 1.93 | %
Total borrowings |  | 682,827 |  |  | 854,517 |  |  | 2.30 | % |  | 1.90 | %
Total funding liabilities |  | 3,869,850 |  |  | 3,643,824 |  |  | 1.09 | % |  | 0.81 | %
Other liabilities |  | 66,966 |  |  | 57,846 |  |  |  |  |
Shareholders' equity |  | 455,261 |  |  | 407,524 |  |  |  |  |
Total liabilities & shareholders' equity |  | $ | 4,392,077 |  |  | $ | 4,109,194 |  |  |  |  |
Net interest rate spread (fully-taxable equivalent) |  | 3.07 | % |  | 3.08 | %
Net interest margin (fully-taxable equivalent) |  | 3.13 | % |  | 3.11 | %
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) |  | 3.09 | % |  | 3.06 | %

(1) | Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

(2) | Non-accrual loans and loans held for sale are included in total average loans.

(3) | Excludes the impact of the fair value mark accretion on loans and certificates of deposit generated in purchase accounting and collection of previously charged-off acquired loans for the nine months ended September 30, 2019 and September 30, 2018 totaling $1.2 million and $1.6 million, respectively.

Asset Quality Data
(unaudited)
(In thousands) |  | At or For The Nine Months Ended September 30, 2019 |  | At or For The Six Months Ended June 30, 2019 |  | At or For The Three Months Ended March 31, 2019 |  | At or For The Year Ended December 31, 2018 |  | At or For The Nine Months Ended September 30, 2018
Non-accrual loans: |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | 5,152 |  |  | $ | 5,566 |  |  | $ | 5,415 |  |  | $ | 5,492 |  |  | $ | 4,720 |
Commercial real estate |  | 1,156 |  |  | 1,590 |  |  | 975 |  |  | 1,380 |  |  | 5,517 |
Commercial |  | 751 |  |  | 785 |  |  | 802 |  |  | 1,279 |  |  | 2,402 |
Consumer and home equity |  | 2,616 |  |  | 3,039 |  |  | 2,476 |  |  | 1,861 |  |  | 1,647 |
HPFC |  | 450 |  |  | 465 |  |  | 485 |  |  | 518 |  |  | 591 |
Total non-accrual loans |  | 10,125 |  |  | 11,445 |  |  | 10,153 |  |  | 10,530 |  |  | 14,877 |
Loans 90 days past due and accruing |  | — |  |  | 14 |  |  | 14 |  |  | 14 |  |  | 14 |
Accruing troubled-debt restructured loans not included above |  | 3,259 |  |  | 3,511 |  |  | 3,771 |  |  | 3,893 |  |  | 4,039 |
Total non-performing loans |  | 13,384 |  |  | 14,970 |  |  | 13,938 |  |  | 14,437 |  |  | 18,930 |
Other real estate owned |  | 94 |  |  | 130 |  |  | 673 |  |  | 130 |  |  | 185 |
Total non-performing assets |  | $ | 13,478 |  |  | $ | 15,100 |  |  | $ | 14,611 |  |  | $ | 14,567 |  |  | $ | 19,115 |
Loans 30-89 days past due: |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | 1,447 |  |  | $ | 2,536 |  |  | $ | 2,265 |  |  | $ | 4,833 |  |  | $ | 3,816 |
Commercial real estate |  | 2,242 |  |  | 3,378 |  |  | 2,947 |  |  | 2,130 |  |  | 574 |
Commercial |  | 1,135 |  |  | 1,400 |  |  | 1,205 |  |  | 169 |  |  | 723 |
Consumer and home equity |  | 822 |  |  | 907 |  |  | 1,430 |  |  | 1,467 |  |  | 902 |
HPFC |  | 193 |  |  | 171 |  |  | 187 |  |  | 183 |  |  | 1,078 |
Total loans 30-89 days past due |  | $ | 5,839 |  |  | $ | 8,392 |  |  | $ | 8,034 |  |  | $ | 8,782 |  |  | $ | 7,093 |
Allowance for loan losses at the beginning of the period |  | $ | 24,712 |  |  | $ | 24,712 |  |  | $ | 24,712 |  |  | $ | 24,171 |  |  | $ | 24,171 |
Provision for loan losses |  | 2,658 |  |  | 1,925 |  |  | 750 |  |  | 845 |  |  | 845 |
Charge-offs: |  |  |  |  |  |  |  |  |  |
Residential real estate |  | 436 |  |  | 25 |  |  | 11 |  |  | 173 |  |  | 231 |
Commercial real estate |  | 157 |  |  | 65 |  |  | 65 |  |  | 512 |  |  | 512 |
Commercial |  | 636 |  |  | 453 |  |  | 236 |  |  | 736 |  |  | 448 |
Consumer and home equity |  | 670 |  |  | 64 |  |  | 24 |  |  | 572 |  |  | 451 |
HPFC |  | 11 |  |  | — |  |  | — |  |  | 255 |  |  | 209 |
Total charge-offs |  | 1,910 |  |  | 607 |  |  | 336 |  |  | 2,248 |  |  | 1,851 |
Total recoveries |  | (228 | ) |  | (133 | ) |  | (75 | ) |  | (1,944 | ) |  | (361 | )
Net charge-offs |  | 1,682 |  |  | 474 |  |  | 261 |  |  | 304 |  |  | 1,490 |
Allowance for loan losses at the end of the period |  | $ | 25,688 |  |  | $ | 26,163 |  |  | $ | 25,201 |  |  | $ | 24,712 |  |  | $ | 23,526 |
Components of allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Allowance for loan losses |  | $ | 25,688 |  |  | $ | 26,163 |  |  | $ | 25,201 |  |  | $ | 24,712 |  |  | $ | 23,526 |
Liability for unfunded credit commitments |  | 11 |  |  | 14 |  |  | 16 |  |  | 22 |  |  | 15 |
Allowance for credit losses |  | $ | 25,699 |  |  | $ | 26,177 |  |  | $ | 25,217 |  |  | $ | 24,734 |  |  | $ | 23,541 |
Ratios: |  |  |  |  |  |  |  |  |  |
Non-performing loans to total loans |  | 0.43 | % |  | 0.48 | % |  | 0.46 | % |  | 0.48 | % |  | 0.65 | %
Non-performing assets to total assets |  | 0.30 | % |  | 0.34 | % |  | 0.33 | % |  | 0.34 | % |  | 0.46 | %
Allowance for loan losses to total loans |  | 0.83 | % |  | 0.84 | % |  | 0.83 | % |  | 0.82 | % |  | 0.81 | %
Net charge-offs (recoveries) to average loans (annualized): |  |  |  |  |  |  |  |  |  |
Quarter-to-date |  | 0.16 | % |  | 0.03 | % |  | 0.03 | % |  | (0.16 | )% |  | 0.07 | %
Year-to-date |  | 0.07 | % |  | 0.03 | % |  | 0.03 | % |  | 0.01 | % |  | 0.07 | %
Allowance for loan losses to non-performing loans |  | 191.93 | % |  | 174.77 | % |  | 180.81 | % |  | 171.17 | % |  | 124.28 | %
Loans 30-89 days past due to total loans |  | 0.19 | % |  | 0.27 | % |  | 0.26 | % |  | 0.29 | % |  | 0.24 | %

Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)

Return on Average Tangible Equity: |  |  |  |
|  | For the Three Months Ended |  | For the Nine Months Ended
(In thousands) |  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
Net income, as presented |  | $ | 14,488 |  |  | $ | 13,204 |  |  | $ | 14,057 |  |  | $ | 41,965 |  |  | $ | 39,094 |
Add: amortization of intangible assets, net of tax(1) |  | 140 |  |  | 139 |  |  | 144 |  |  | 418 |  |  | 430 |
Net income, adjusted for amortization of intangible assets |  | $ | 14,628 |  |  | $ | 13,343 |  |  | $ | 14,201 |  |  | $ | 42,383 |  |  | $ | 39,524 |
Average equity, as presented |  | $ | 468,920 |  |  | $ | 455,529 |  |  | $ | 414,936 |  |  | $ | 455,261 |  |  | $ | 407,524 |
Less: average goodwill and other intangible assets |  | (98,484 | ) |  | (98,660 | ) |  | (99,195 | ) |  | (98,659 | ) |  | (99,379 | )
Average tangible equity |  | $ | 370,436 |  |  | $ | 356,869 |  |  | $ | 315,741 |  |  | $ | 356,602 |  |  | $ | 308,145 |
Return on average tangible equity |  | 15.67 | % |  | 15.00 | % |  | 17.84 | % |  | 15.89 | % |  | 17.15 | %
Return on average equity |  | 12.26 | % |  | 11.63 | % |  | 13.44 | % |  | 12.32 | % |  | 12.83 | %

(1) Assumed a 21% tax rate.

Efficiency Ratio: |  |  |  |  |  |  |  |  |  |
|  | For the Three Months Ended |  | For the Nine Months Ended
(In thousands) |  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018
Non-interest expense, as presented |  | $ | 23,748 |  |  | $ | 23,958 |  |  | $ | 23,166 |  |  | $ | 70,489 |  |  | $ | 68,365 |
Net interest income, as presented |  | $ | 31,923 |  |  | $ | 31,573 |  |  | $ | 30,423 |  |  | $ | 95,391 |  |  | $ | 88,806 |
Add: effect of tax-exempt income(1) |  | 264 |  |  | 248 |  |  | 260 |  |  | 752 |  |  | 771 |
Non-interest income, as presented |  | 10,739 |  |  | 10,037 |  |  | 10,392 |  |  | 30,165 |  |  | 28,697 |
Less: net gain on sale of securities |  | (1 | ) |  | (27 | ) |  | (664 | ) |  | (28 | ) |  | (695 | )
Adjusted net interest income plus non-interest income |  | $ | 42,925 |  |  | $ | 41,831 |  |  | $ | 40,411 |  |  | $ | 126,280 |  |  | $ | 117,579 |
GAAP efficiency ratio |  | 55.67 | % |  | 57.58 | % |  | 56.76 | % |  | 56.14 | % |  | 58.18 | %
Non-GAAP efficiency ratio |  | 55.32 | % |  | 57.27 | % |  | 57.33 | % |  | 55.82 | % |  | 58.14 | %

(1) Assumed a 21% tax rate.

Tangible Book Value Per Share and Tangible Common Equity Ratio:
|  | September 30, 2019 |  | June 30, 2019 |  | September 30, 2018
(In thousands, except number of shares and per share data) |
Tangible Book Value Per Share: |  |  |  |  |  |
Shareholders' equity, as presented |  | $ | 471,672 |  |  | $ | 467,759 |  |  | $ | 415,686 |
Less: goodwill and other intangible assets |  | (98,398 | ) |  | (98,574 | ) |  | (99,108 | )
Tangible shareholders' equity |  | $ | 373,274 |  |  | $ | 369,185 |  |  | $ | 316,578 |
Shares outstanding at period end |  | 15,224,903 |  |  | 15,457,480 |  |  | 15,584,526 |
Book value per share |  | $ | 30.98 |  |  | $ | 30.26 |  |  | $ | 26.67 |
Tangible book value per share |  | $ | 24.52 |  |  | $ | 23.88 |  |  | $ | 20.31 |
Tangible Common Equity Ratio:
Total assets |  | $ | 4,520,315 |  |  | $ | 4,447,038 |  |  | $ | 4,189,745 |
Less: goodwill and other intangibles |  | (98,398 | ) |  | (98,574 | ) |  | (99,108 | )
Tangible assets |  | $ | 4,421,917 |  |  | $ | 4,348,464 |  |  | $ | 4,090,637 |
Common equity ratio |  | 10.43 | % |  | 10.52 | % |  | 9.92 | %
Tangible common equity ratio |  | 8.44 | % |  | 8.49 | % |  | 7.74 | %