Exhibit 99.1
Camden National Corporation Reports Third Quarter 2009 Results
CAMDEN, Maine--(BUSINESS WIRE)--October 27, 2009--Camden National Corporation (NASDAQ: CAC; the “Company”), reported net income for the third quarter 2009 of $6.3 million, or $0.83 per diluted share. This resulted in year-to-date earnings of $17.5 million or $2.29 per diluted share. For the three and nine month periods ended September 30, 2009, return on assets was 1.10% and 1.02%, respectively, and return on equity was 13.93% and 13.48%, respectively.
“We are pleased by our third quarter performance in light of the current economic conditions,” said Gregory A. Dufour, President and Chief Executive Officer of the Company. “Our markets have not yet seen a recovery in employment levels or housing, two major building blocks of the Maine economy, and we continue to aggressively manage asset quality issues and limit our interest rate risk exposure in the current market.”
Dufour also announced that during the quarter Camden National Corporation and its subsidiaries received significant national and local recognition for its service to its four constituencies. These recognitions, by constituency, are:
- Customers: Camden National Bank will be recognized as “Bank of the Year” by the Finance Authority of Maine (“FAME”) at its November 10, 2009 annual meeting. FAME’s award is bestowed in recognition of Camden National’s outstanding commitment to Maine people and businesses through innovative financial solutions during challenging economic times.
- Shareholders: 11th Best Performing Mid-Tier Financial Institution. The national magazine, USBanker, named Camden National Corporation the 11th best performing mid-tier bank for 2008 based on CNC’s three year average return on equity.
- Communities: “Outstanding” Community Reinvestment Act (“CRA”) rating by the Office of the Comptroller of the Currency. Camden National Bank received the highest examination rating for its work in supporting its communities through investments, loans, donations and volunteerism.
- Stakeholders (a term used to describe CNC’s employees): “A Best Place to Work in Maine.” Camden National Corporation was named a Best Place to Work in Maine by the Maine State Council of the Society for Human Resources Management, one of only 31 companies in Maine recognized in 2009.
“These recognitions reflect our organization’s dedication to the principles of being a community bank,” Dufour said. “We are proud of these accomplishments but recognize that they are milestones on a much larger journey.”
Comparison to last year’s results is impacted by the $14.0 million write-down in the third quarter of 2008 of other-than-temporarily impaired securities resulting from investments in auction pass-through certificates with Federal Home Loan Mortgage Corporation preferred stock assets. This third quarter 2008 event resulted in a net loss for the three months ended September 30, 2008 of $(8.0) million or $(1.05) per diluted share, and year-to-date net income for nine months of 2008 of $5.3 million or $0.69 per diluted share.
In 2008, certain non-core items were included in the computation of earnings in accordance with generally accepted accounting principles (“GAAP”). In an effort to provide shareholders information regarding our core results, we have disclosed in the table below certain non-GAAP information which we believe provides useful information. This information should not be viewed as a substitute for operating results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by other companies.
| Non-GAAP Financial Information | | | | | | | | | | | | |
| | | Three Months Ended |
| (In thousands, except per share data) | | September 30, 2009 | | September 30, 2008 |
| | | | | | | | | | | | |
| | | Amount | | | Per Share | | | Amount | | | Per Share |
| | | | | | | | | | | | |
| Net income (loss), GAAP basis/Earnings (loss) per diluted share, GAAP basis | | $ | 6,328 | | $ | 0.83 | | $ | (8,020) | | $ | (1.05) |
| Adjustment to eliminate other-than-temporary impairment write-down | | | - | | | - | | | 13,950 | | | 1.82 |
| Core (non-GAAP) net income/Core (non-GAAP) earnings per diluted share | | $ | 6,328 | | $ | 0.83 | | $ | 5,930 | | $ | 0.77 |
| | | | | | | | | | | | |
| Core (non-GAAP) return on average equity | | | 13.93% | | | | | | 13.91% | | | |
| Core (non-GAAP) return on average assets | | | 1.10% | | | | | | 1.02% | | | |
| | | | | | | | | | | | |
| | | Nine Months Ended |
| | September 30, 2009 | | September 30, 2008 |
| | | | | | | | | | | | |
| | | Amount | | | Per Share | | | Amount | | | Per Share |
| | | | | | | | | | | | |
| Net income (loss), GAAP basis/Earnings (loss) per diluted share, GAAP basis | | $ | 17,546 | | $ | 2.29 | | $ | 5,281 | | $ | 0.69 |
| Adjustment to eliminate other-than-temporary impairment write-down | | | - | | | - | | | 13,950 | | | 1.81 |
| Core (non-GAAP) net income/Core (non-GAAP) earnings per diluted share | | $ | 17,546 | | $ | 2.29 | | $ | 19,231 | | $ | 2.50 |
| | | | | | | | | | | | |
| Core (non-GAAP) return on average equity | | | 13.48% | | | | | | 15.14% | | | |
| Core (non-GAAP) return on average assets | | | 1.02% | | | | | | 1.12% | | | |
The Company’s core net income for the three months ended September 30, 2009 compared to the same period in 2008 increased $398,000 or 7%. Core earnings growth was due to an increase in net interest income driven by a higher net interest margin as well as growth in fee income which was partially offset by an increase in the loan loss provision.
The Company’s core net income for the nine months ended September 30, 2009 compared to the same period one year ago declined $1.7 million or 9%. Earnings were negatively impacted by an increase in loan loss provision, higher FDIC insurance premiums and increased costs associated with foreclosed properties.
“The impact of the economic turmoil our industry has faced in recent times continues; we need to be prepared for the unexpected,” commented Dufour. “Camden National’s capital levels continue to exceed the minimum standards to be considered ‘well capitalized,’ and with our solid earnings base we absorbed the increased FDIC assessments while continuing to take necessary steps to strengthen our balance sheet and capital position.”
Operating Highlights
Net interest income for the third quarter of 2009 increased 4% to $18.2 million compared to $17.5 million for the same period one year ago due to an increase in the net interest margin of 18 basis points to 3.51% for the third quarter of 2009. The Company’s ability to improve pricing on deposits and borrowings and minimize the decline of interest rates on loans and investments resulted in the improvement in the net interest margin.
Non-interest income for the third quarter of 2009 was $5.1 million compared to $3.7 million for the third quarter of 2008, an increase of $1.5 million or 39%. The increase was primarily due to additional mortgage banking income of $352,000 related to service-retained loan sales during the third quarter of 2009 and net losses on the sale of securities of $804,000 recorded in the third quarter of 2008.
Non-interest expense for the third quarter of 2009 was $12.1 million compared to $11.7 million for the third quarter of 2008, an increase of $493,000 or 4%. The increase is related to increased costs associated with foreclosed properties of $660,000 and an increase in FDIC and regulatory assessment fees of $276,000. Most other expense items, including salaries and employee benefits, declined during the third quarter of 2009 compared to the third quarter of 2008.
Financial Condition
The Company’s total assets at September 30, 2009 were $2.3 billion, a decrease of $38.5 million compared to total assets at September 30, 2008. Total loans (including residential loans held for sale) at September 30, 2009 were $1.5 billion, a decrease of $1.6 million over the same period a year ago. This decrease was due to a decline in commercial loans of $29.8 million offset by a $10.7 million increase in the consumer loan portfolio driven by increased home equity loan demand and an increase in commercial real estate loans of $18.1 million. Historically-low mortgage rates have resulted in strong residential real estate loan activity and during the nine months of 2009, the Company sold $70.6 million of the mortgage production for interest-rate risk management purposes. Investments decreased $27.5 million primarily due to increased cash flows that were not reinvested into the investment portfolio due to the current low interest-rate environment.
Total deposits of $1.5 billion at September 30, 2009 increased $3.9 million from the same period one year ago, reflecting growth of $23.9 million in retail certificates of deposit related to specific marketing campaigns during the fourth quarter of 2008 and an increase in interest checking, savings and money market deposits of $23.6 million. Growth in deposits was partially offset by a decline in brokered funds of $39.1 million and demand deposits of $4.5 million. Due to a decline in total assets and an increase in deposit balances, Federal Home Loan Bank borrowings decreased $99.3 million at September 30, 2009 compared to September 30, 2008.
Asset Quality
Non-performing assets totaled $23.7 million, or 1.04%, of total assets at September 30, 2009 compared to $15.9 million, or 0.69%, of total assets at September 30, 2008 and $22.3 million, or 0.97%, of total assets at June 30, 2009. The allowance for loan losses (“ALL”) was 1.28% of total loans at September 30, 2009 compared to 1.13% of total loans at September 30, 2008 and 1.23% of total loans at June 30, 2009.
The provision for loan losses was $2.0 million for the three months ended September 30, 2009 and $1.2 million for the three months ended September 30, 2008. The Company’s loan loss reserve analysis called for an increase in the ALL based on a continued increase in non-performing asset levels. Net charge-offs were $1.2 million for the three months ended September 30, 2009 and $1.2 million for the three months ended September 30, 2008.
“In this challenging economic environment our strong risk management processes and reserve levels provide us with the tools to respond to potential risks on our balance sheet,” said Dufour. “Asset quality continues to be of the highest priority at Camden National, requiring vigilance of all of our stakeholders during this time of economic uncertainty.”
Dividends and Capital
The Board of Directors approved a dividend of $0.25 per share, payable on October 30, 2009 for shareholders of record on October 15, 2009, which is equal to the dividend declared in the same period last year.
At September 30, 2009, the Company had a total risk-based capital ratio of 13.15%, a Tier 1 capital ratio of 11.89%, and a Tier 1 leverage capital ratio of 7.87% and Camden National Bank reported a total risk-based capital ratio of 12.18%, a Tier 1 capital ratio of 10.93%, and a Tier 1 leverage capital ratio of 7.17%. The Company and Camden National Bank exceeded the minimum ratios of 10.0%, 6.0%, and 5.0%, respectively, required by the Federal Reserve for an institution to be considered “well capitalized.”
Recent Developments
On October 16, 2009, the Company’s security group discovered that a Camden National Bank employee engaged in a series of improper and unauthorized transactions. The Company’s investigation into this matter is ongoing, and no determination has been made as to whether any amounts will be recorded as a loss by the Company. The Company is in discussions with its insurance carrier and aggressively taking steps to recover the funds, including cooperating with law enforcement authorities. To date, transactions involving approximately $850,000 have been identified.
Camden National Corporation ,ranked 11th in the USBanker’s 2009 list of top-performing mid-tier banks, headquartered in Camden, Maine, and listed on the NASDAQ® Global Select Market under the symbol CAC, is the holding company employing more than 400 Maine residents for two financial services companies, including Camden National Bank, a full-service community bank with a network of 37 banking offices serving coastal, western, central, and eastern Maine, and Acadia Trust, N.A., offering investment management and fiduciary services with offices in Portland, Bangor, and Ellsworth. Located at Camden National Bank, Acadia Financial Consultants offers full-service brokerage and insurance services.
This press release and the documents incorporated by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements should not be relied on, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties and other factors may cause the actual results, performance or achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following: changes in general, national or regional economic conditions; changes in loan default and charge-off rates; reductions in deposit levels necessitating increased borrowing to fund loans and investments; changes in interest rates; changes in the value of investments securities or other assets; changes in laws and regulations, including changes in tax treatment; changes in the size and nature of the Company's competition; and changes in the assumptions used in making such forward-looking statements. Other factors could also cause these differences. For more information about these factors please see our Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings on file with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements.
These forward-looking statements were based on information, plans and estimates at the date of this press release, and the Company does not promise to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
| | Statement of Income Data (unaudited) |
| | | | | | | | | | | | | | |
| | | | Three Months Ended | | | | Nine Months Ended |
| | | September 30, | | | September 30, |
| (In thousands, except number of shares and per share data) | | | 2009 | | | 2008 | | | | 2009 | | | 2008 |
| | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 21,121 | | $ | 24,080 | | | $ | 64,012 | | $ | 73,803 |
| Interest on securities and other | | | 6,859 | | | 7,404 | | | | 22,204 | | | 22,673 |
| Total interest income | | | 27,980 | | | 31,484 | | | | 86,216 | | | 96,476 |
| Interest expense | | | | | | | | | | | | | |
| Interest on deposits | | | 5,413 | | | 7,752 | | | | 17,743 | | | 24,253 |
| Interest on borrowings | | | 4,342 | | | 6,218 | | | | 13,403 | | | 19,695 |
| Total interest expense | | | 9,755 | | | 13,970 | | | | 31,146 | | | 43,948 |
| Net interest income | | | 18,225 | | | 17,514 | | | | 55,070 | | | 52,528 |
| Provision for loan losses | | | 2,000 | | | 1,170 | | | | 6,514 | | | 2,120 |
| Net interest income after provision for loan losses | | | 16,225 | | | 16,344 | | | | 48,556 | | | 50,408 |
| Non-interest income (loss) | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 1,361 | | | 1,377 | | | | 3,943 | | | 4,069 |
| Other service charges and fees | | | 778 | | | 724 | | | | 2,202 | | | 2,059 |
| Income from fiduciary services | | | 1,471 | | | 1,653 | | | | 4,332 | | | 5,031 |
| Mortgage banking income (loss), net | | | 351 | | | (1) | | | | 1,222 | | | (216) |
| Bank-owned life insurance | | | 368 | | | 305 | | | | 1,108 | | | 883 |
| Net gain (loss) on sale of securities | | | 1 | | | (804) | | | | 1 | | | (624) |
| Other income | | | 819 | | | 443 | | | | 1,939 | | | 1,597 |
| Total non-interest income before security impairment write-down | | | 5,149 | | | 3,697 | | | | 14,747 | | | 12,799 |
| Loss on security impairment write-down | | | - | | | (13,950) | | | | - | | | (13,950) |
| Total non-interest income (loss) | | | 5,149 | | | (10,253) | | | | 14,747 | | | (1,151) |
| Non-interest expenses | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 6,071 | | | 6,079 | | | | 18,195 | | | 19,130 |
| Net occupancy | | | 862 | | | 927 | | | | 2,954 | | | 3,008 |
| Furniture, equipment and data processing | | | 1,123 | | | 1,038 | | | | 3,233 | | | 3,467 |
| Consulting and service fees | | | 698 | | | 786 | | | | 2,140 | | | 2,229 |
| OREO and collection costs | | | 779 | | | 119 | | | | 1,941 | | | 518 |
| Regulatory assessments | | | 693 | | | 417 | | | | 3,304 | | | 676 |
| Donations and marketing | | | 221 | | | 369 | | | | 803 | | | 1,189 |
| Communication costs | | | 356 | | | 469 | | | | 1,180 | | | 1,267 |
| Other expenses | | | 1,349 | | | 1,455 | | | | 4,109 | | | 4,349 |
| Total non-interest expenses | | | 12,152 | | | 11,659 | | | | 37,859 | | | 35,833 |
| Income (loss) before income taxes | | | 9,222 | | | (5,568) | | | | 25,444 | | | 13,424 |
| Income taxes | | | 2,894 | | | 2,452 | | | | 7,898 | | | 8,143 |
| Net income (loss) | | $ | 6,328 | | $ | (8,020) | | | $ | 17,546 | | $ | 5,281 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Selected Financial and Per Share Data: | | | | | | | | | | | | | |
| Return (loss) on average equity | | | 13.93% | | | (18.82%) | | | | 13.48% | | | 4.16% |
| Return (loss) on average tangible equity | | | 18.79% | | | (26.18%) | | | | 18.43% | | | 5.78% |
| Return (loss) on average assets | | | 1.10% | | | (1.38%) | | | | 1.02% | | | 0.31% |
| Efficiency ratio (1) | | | 51.99% | | | 52.96% | | | | 54.23% | | | 54.33% |
| Basic earnings (loss) per share | | $ | 0.83 | | $ | (1.05) | | | $ | 2.30 | | $ | 0.69 |
| Diluted earnings (loss) per share | | $ | 0.83 | | $ | (1.05) | | | $ | 2.29 | | $ | 0.69 |
| Cash dividends paid per share | | $ | 0.25 | | $ | 0.25 | | | $ | 0.75 | | $ | 0.74 |
| Weighted average number of common shares outstanding | | | 7,644,829 | | | 7,659,811 | | | | 7,641,705 | | | 7,682,737 |
| | | | | | | | | | | | | | |
| (1) Computed by dividing non-interest expense by the sum of net interest income and non-interest income (excluding securities gains/(losses) and investment impairment). |
| | Statement of Condition Data (unaudited) |
| | | | | | | | | | | | |
| | | September 30, | | September 30, | | December 31, |
| (In thousands, except number of shares) | | | 2009 | | | | 2008 | | | | 2008 |
| | | | | | | | | | | | |
| Assets | | | | | | | | | | | |
| Cash and due from banks | | $ | 30,081 | | | $ | 38,114 | | | $ | 35,195 |
| Securities: | | | | | | | | | | | |
| Securities available for sale, at fair value | | | 525,966 | | | | 544,801 | | | | 606,031 |
| Securities held to maturity, at amortized cost | | | 39,366 | | | | 42,066 | | | | 42,040 |
| Federal Home Loan and Federal Reserve Bank stock, at cost | | | 21,965 | | | | 27,915 | | | | 21,969 |
| Total securities | | | 587,297 | | | | 614,782 | | | | 670,040 |
| Trading account assets | | | 1,667 | | | | 1,563 | | | | 1,304 |
| Loans held for sale | | | 1,298 | | | | - | | | | - |
| Loans: | | | | | | | | | | | |
| Residential real estate | | | 625,885 | | | | 624,580 | | | | 621,048 |
| Commercial real estate | | | 428,059 | | | | 409,923 | | | | 400,312 |
| Commercial | | | 195,818 | | | | 225,600 | | | | 213,683 |
| Consumer | | | 269,919 | | | | 259,236 | | | | 265,865 |
| Total loans | | | 1,519,681 | | | | 1,519,339 | | | | 1,500,908 |
| Less allowance for loan losses | | | (19,435) | | | | (17,212) | | | | (17,691) |
| Net loans | | | 1,500,246 | | | | 1,502,127 | | | | 1,483,217 |
| Goodwill | | | 41,780 | | | | 41,965 | | | | 41,857 |
| Bank-owned life insurance | | | 41,310 | | | | 40,056 | | | | 40,459 |
| Premises and equipment, net | | | 25,234 | | | | 26,235 | | | | 25,872 |
| Other real estate owned | | | 5,465 | | | | 2,699 | | | | 4,024 |
| Other assets | | | 38,368 | | | | 43,697 | | | | 39,528 |
| Total assets | | $ | 2,272,746 | | | $ | 2,311,238 | | | $ | 2,341,496 |
| | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Demand | | $ | 201,451 | | | $ | 205,934 | | | $ | 180,407 |
| Interest checking, savings and money market | | | 699,230 | | | | 675,639 | | | | 632,664 |
| Retail certificates of deposit | | | 567,210 | | | | 543,314 | | | | 593,013 |
| Brokered deposits | | | 45,443 | | | | 84,551 | | | | 83,433 |
| Total deposits | | | 1,513,334 | | | | 1,509,438 | | | | 1,489,517 |
| Federal Home Loan Bank advances | | | 210,495 | | | | 309,748 | | | | 258,925 |
| Other borrowed funds | | | 290,427 | | | | 266,815 | | | | 359,470 |
| Junior subordinated debentures | | | 43,487 | | | | 43,384 | | | | 43,410 |
| Accrued interest and other liabilities | | | 28,232 | | | | 23,142 | | | | 23,774 |
| Total liabilities | | | 2,085,975 | | | | 2,152,527 | | | | 2,175,096 |
| | | | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | | | |
| Common stock, no par value; authorized 20,000,000 shares, issued and | | | | | | | | | | | |
| outstanding 7,644,829, 7,636,441, and 7,638,713 shares on September 30, 2009 | | | | | | | | | | |
| and 2008 and December 31, 2008, respectively | | | 3,150 | | | | 2,814 | | | | 2,851 |
| Surplus | | | 46,139 | | | | 46,054 | | | | 46,133 |
| Retained earnings | | | 130,320 | | | | 112,334 | | | | 118,564 |
| Accumulated other comprehensive income (loss) | | | | | | | | | | | |
| Net unrealized gains (losses) on securities available for sale, net of tax | | | 8,163 | | | | (2,140) | | | | (89) |
| Net unrealized gains on derivative instruments, at fair value, net of tax | | | 11 | | | | - | | | | - |
| Net unrecognized losses on post-retirement plans, net of tax | | | (1,012) | | | | (351) | | | | (1,059) |
| Total accumulated other comprehensive income (loss) | | | 7,162 | | | | (2,491) | | | | (1,148) |
| Total shareholders' equity | | | 186,771 | | | | 158,711 | | | | 166,400 |
| Total liabilities and shareholders' equity | | $ | 2,272,746 | | | $ | 2,311,238 | | | $ | 2,341,496 |
| Average Balance, Interest and Yield/Rate Analysis (unaudited) |
| | | | | | | | | | | | | | | | |
| | At or for the Nine Months Ended | | At or for the Nine Months Ended |
| | | September 30, 2009 | | | September 30, 2008 |
| (In thousands) | | | Average | | | | | Yield/ | | | Average | | | | | Yield/ |
| | | Balance | | | Interest | | Rate | | | Balance | | | Interest | | Rate |
| Assets | | | | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | | | | |
| Securities - taxable | | $ | 555,525 | | $ | 20,344 | | 4.88% | | $ | 544,416 | | $ | 20,665 | | 5.05% |
| Securities - nontaxable (1) | | | 64,956 | | | 2,842 | | 5.83% | | | 70,621 | | | 3,067 | | 5.80% |
| Trading account assets | | | 1,413 | | | 16 | | 1.51% | | | 1,561 | | | 35 | | 2.99% |
| Federal funds sold | | | - | | | - | | - | | | 451 | | | 10 | | 2.96% |
| Loans: (1) (2) | | | | | | | | | | | | | | | | |
| Residential real estate | | | 621,407 | | | 27,089 | | 5.81% | | | 627,896 | | | 28,367 | | 6.03% |
| Commercial real estate | | | 408,622 | | | 18,803 | | 6.15% | | | 416,533 | | | 22,159 | | 7.11% |
| Commercial | | | 183,258 | | | 7,700 | | 5.62% | | | 210,016 | | | 11,161 | | 7.10% |
| Municipal | | | 23,756 | | | 880 | | 4.95% | | | 22,422 | | | 889 | | 5.30% |
| Consumer | | | 265,523 | | | 9,826 | | 4.95% | | | 243,345 | | | 11,505 | | 6.32% |
| Total loans | | | 1,502,566 | | | 64,298 | | 5.71% | | | 1,520,212 | | | 74,081 | | 6.50% |
| Total interest-earning assets | | | 2,124,460 | | | 87,500 | | 5.50% | | | 2,137,261 | | | 97,858 | | 6.11% |
| | | | | | | | | | | | | | | | |
| Cash and due from banks | | | 28,056 | | | | | | | | 37,534 | | | | | |
| Other assets | | | 155,118 | | | | | | | | 143,541 | | | | | |
| Less allowance for loan losses | | | (18,388) | | | | | | | | (17,343) | | | | | |
| Total assets | | $ | 2,289,246 | | | | | | | $ | 2,300,993 | | | | | |
| | | | | | | | | | | | | | | | |
| Liabilities & Shareholders' Equity | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 199,795 | | | 692 | | 0.46% | | $ | 185,142 | | | 1,226 | | 0.88% |
| Savings accounts | | | 138,039 | | | 368 | | 0.36% | | | 133,566 | | | 618 | | 0.62% |
| Money market accounts | | | 305,860 | | | 2,474 | | 1.08% | | | 348,652 | | | 6,073 | | 2.35% |
| Certificates of deposit | | | 584,747 | | | 12,726 | | 2.91% | | | 512,686 | | | 14,097 | | 3.67% |
| Total retail deposits | | | 1,228,441 | | | 16,260 | | 1.77% | | | 1,180,046 | | | 22,014 | | 2.50% |
| Brokered deposits | | | 80,973 | | | 1,483 | | 2.45% | | | 67,453 | | | 2,239 | | 4.43% |
| Junior subordinated debentures | | | 43,449 | | | 2,136 | | 6.57% | | | 43,342 | | | 2,195 | | 6.76% |
| Borrowings | | | 559,202 | | | 11,267 | | 2.69% | | | 629,744 | | | 17,500 | | 3.71% |
| Total wholesale funding | | | 683,624 | | | 14,886 | | 2.91% | | | 740,539 | | | 21,934 | | 3.96% |
| Total interest-bearing liabilities | | | 1,912,065 | | | 31,146 | | 2.18% | | | 1,920,585 | | | 43,948 | | 3.06% |
| | | | | | | | | | | | | | | | |
| Demand deposits | | | 180,702 | | | | | | | | 185,595 | | | | | |
| Other liabilities | | | 22,452 | | | | | | | | 25,180 | | | | | |
| Shareholders' equity | | | 174,027 | | | | | | | | 169,633 | | | | | |
| Total liabilities & shareholders' equity | | $ | 2,289,246 | | | | | | | $ | 2,300,993 | | | | | |
| | | | | | | | | | | | | | | | |
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| Net Interest Income (fully-taxable equivalent) | | | | 56,354 | | | | | | | | 53,910 | | |
| Less: fully-taxable equivalent adjustment | | | | | | (1,284) | | | | | | | | (1,382) | | |
| | | | | $ | 55,070 | | | | | | | $ | 52,528 | | |
| | | | | | | | | | | | | | | | |
| Net interest rate spread (fully-taxable equivalent) | | | | | | 3.32% | | | | | | | | 3.05% |
| Net interest margin (fully-taxable equivalent) | | | | | | 3.55% | | | | | | | | 3.36% |
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| (1) Reported on tax-equivalent basis calculated using a rate of 35%. |
| (2) Non-accrual loans and loans held for sale are included in total average loans. |
| | Asset Quality Data (unaudited) |
| | | | | | | | | | |
| | | | | | | | | At or for |
| | | At or for the Nine Months Ended | | the Year Ended |
| | | September 30, | | December 31, |
| (In thousands) | | | 2009 | | | 2008 | | | 2008 |
| | | | | | | | | | |
| Non-accrual loans: | | | | | | | | | |
| Residential real estate | | $ | 5,779 | | $ | 3,592 | | $ | 4,048 |
| Commercial real estate | | | 5,322 | | | 5,939 | | | 4,957 |
| Commercial | | | 4,226 | | | 2,122 | | | 2,384 |
| Consumer | | | 1,271 | | | 1,110 | | | 1,112 |
| Total non-accrual loans | | | 16,598 | | | 12,763 | | | 12,501 |
| Loans 90 days past due and accruing | | | 684 | | | 391 | | | 206 |
| Renegotiated loans not included above | | | 917 | | | - | | | - |
| Total non-performing loans | | | 18,199 | | | 13,154 | | | 12,707 |
| Other real estate owned: | | | | | | | | | |
| Residential real estate | | | 2,314 | | | 2,437 | | | 187 |
| Commercial real estate | | | 3,151 | | | 262 | | | 3,575 |
| Commercial | | | - | | | - | | | 262 |
| Total other real estate owned | | | 5,465 | | | 2,699 | | | 4,024 |
| Total non-performing assets | | $ | 23,664 | | $ | 15,853 | | $ | 16,731 |
| | | | | | | | | | |
| Loans 30-89 days past due: | | | | | | | | | |
| Residential real estate | | $ | 2,397 | | $ | 326 | | $ | 2,880 |
| Commercial real estate | | | 1,852 | | | 1,410 | | | 2,314 |
| Commercial | | | 2,760 | | | 505 | | | 3,601 |
| Consumer | | | 531 | | | 32 | | | 829 |
| Total loans 30-89 days past due | | $ | 7,540 | | $ | 2,273 | | $ | 9,624 |
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| | | | | | | | | | |
| Allowance at the beginning of the period | | $ | 17,691 | | $ | 13,653 | | $ | 13,653 |
| Acquired from Union Trust | | | - | | | 4,369 | | | 4,369 |
| Provision for loan losses | | | 6,514 | | | 2,120 | | | 4,397 |
| Charge-offs: | | | | | | | | | |
| Residential real estate | | | 752 | | | 137 | | | 221 |
| Commercial real estate | | | 1,843 | | | 1,529 | | | 3,236 |
| Commercial | | | 1,865 | | | 1,221 | | | 1,286 |
| Consumer | | | 894 | | | 662 | | | 810 |
| Total charge-offs | | | 5,354 | | | 3,549 | | | 5,553 |
| Total recoveries | | | 584 | | | 619 | | | 825 |
| Net charge-offs | | | 4,770 | | | 2,930 | | | 4,728 |
| Allowance at the end of the period | | $ | 19,435 | | $ | 17,212 | | $ | 17,691 |
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| Asset Quality Ratios: | | | | | | | | | |
| Non-performing loans to total loans | | | 1.14% | | | 0.87% | | | 0.85% |
| Non-performing assets to total assets | | | 1.04% | | | 0.69% | | | 0.71% |
| Allowance for loan losses to total loans | | | 1.28% | | | 1.13% | | | 1.18% |
| Net charge-offs to average loans (annualized) | | | | | | | | | |
| Quarter-to-date | | | 0.32% | | | 0.32% | | | |
| Year-to-date | | | 0.42% | | | 0.26% | | | 0.31% |
| Allowance for loan losses to non-performing loans | | | 112.45% | | | 130.85% | | | 139.22% |
| Loans 30-89 days past due to total loans | | | 0.50% | | | 0.15% | | | 0.64% |
| | Selected Financial Data (unaudited) |
| | | | | | | | | | | | | |
| | | | | | | | | At or for | | | |
| | | At or for the Nine Months Ended | | the Year Ended | | | |
| | | September 30, | | December 31, | | | |
| | | 2009 | | 2008 | | 2008 | | | |
| | | | | | | | | | | | | |
| Tier 1 leverage capital ratio | | | 7.87% | | | 7.11% | | | 7.19% | | | |
| Tier 1 risk-based capital ratio | | | 11.89% | | | 11.01% | | | 11.11% | | | |
| Total risk-based capital ratio | | | 13.15% | | | 12.18% | | | 12.32% | | | |
| Tangible equity to total assets | | | 6.17% | | | 4.82% | | | 5.10% | | | |
| Book value per share | | $ | 24.43 | | $ | 20.78 | | $ | 21.78 | | | |
| Tangible book value per share (1) | | $ | 18.34 | | $ | 14.59 | | $ | 15.62 | | | |
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| Investment Data (unaudited) |
| | | | | | | | | | | | | |
| | | September 30, 2009 |
| | | | Amortized | | | Unrealized | | | Unrealized | | | Fair |
| (In thousands) | | | Cost | | | Gains | | | Losses | | | Value |
| | | | | | | | | | | | | |
| Available for sale | | | | | | | | | | | | |
| Obligations of U.S. government sponsored enterprises | | $ | 4,503 | | $ | 9 | | $ | - | | $ | 4,512 |
| Obligations of states and political subdivisions (2) | | | 21,525 | | | 637 | | | - | | | 22,162 |
| Mortgage-backed securities issued or guaranteed by | | | | | | | | | | | | |
| U.S. government sponsored enterprises | | | 437,654 | | | 18,606 | | | (56) | | | 456,204 |
| Private issue collateralized mortgage obligations (CMO) (3) | | | 44,726 | | | 25 | | | (5,985) | | | 38,766 |
| Total debt securities | | | 508,408 | | | 19,277 | | | (6,041) | | | 521,644 |
| | | | | | | | | | | | | |
| Equity securities (4) | | | 5,000 | | | - | | | (678) | | | 4,322 |
| Total equity securities | | | 5,000 | | | - | | | (678) | | | 4,322 |
| Total securities available for sale | | $ | 513,408 | | $ | 19,277 | | $ | (6,719) | | $ | 525,966 |
| | | | | | | | | | | | | |
| Held to maturity | | | | | | | | | | | | |
| Obligations of states and political subdivisions (2) | | $ | 39,366 | | $ | 2,385 | | $ | - | | $ | 41,751 |
| Total securities held to maturity | | $ | 39,366 | | $ | 2,385 | | $ | - | | $ | 41,751 |
| | | | | | | | | | | | | |
| Other securities | | | | | | | | | | | | |
| Federal Home Loan Bank Stock (5) | | $ | 21,031 | | $ | - | | $ | - | | $ | 21,031 |
| Federal Reserve Bank Stock | | | 934 | | | - | | | - | | | 934 |
| Total other securities | | $ | 21,965 | | $ | - | | $ | - | | $ | 21,965 |
| | | | | | | | | | | | | |
| Trading account assets (6) | | | | | | | | | | | $ | 1,667 |
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| (1) Computed by dividing total shareholders’ equity less goodwill and other intangible assets by the number of common shares outstanding. |
| (2) Over 98% of the portfolio is rated by at least one of the three major rating agencies (Moody's, Standard & Poor's or Fitch) and all of these ratings are investment grade. |
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| (3) $28.2 million of the CMO's are rated Triple-A by at least one of the three rating agencies, while three CMO's currently carry ratings below investment grade; one CMO with a fair value of $5.3 million is rated B3 by Moody's and CC by Fitch, a second CMO with a fair value of $3.1 million is rated B3 by Moody's and CCC by Standard & Poor's, and a third CMO with a fair value of $2.2 million is rated BB by Fitch and B by Standard & Poor's. |
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| (4) The Duff & Phelps (DNP) Select Income Fund Auction Preferred Stock continues to fail at auction. We are currently collecting all amounts due according to contractual terms and have the ability and intent to hold the security until it clears auction, is called or matures on December 22, 2021. The DNP Auction Preferred Stock is rated Triple-A by Moody’s and Standard & Poor's. |
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| (5) The Federal Home Loan Bank of Boston has suspended its quarterly dividend payment. |
| (6) Investments held in mutual funds that represent deferred director and executive compensation investments. |
CONTACT:
Camden National Corporation
Diane Norton, 207-230-2176
Vice President – Marketing & Communications
dnorton@camdennational.com
