Exhibit 99.1
CAMDEN NATIONAL REPORTS RECORD NET INCOME OF $17.0 MILLION AND 11.6% GROWTH IN
EARNINGS PER SHARE
Camden, Maine: Robert W. Daigle, President and Chief Executive Officer of Camden
National Corporation (Amex: CAC) announced that the Company has reported record
net income for 2002 of $17.0 million, the highest in the Company's history and
an increase of 10.6% over 2001 results. Net income per diluted share was $2.11
for 2002 compared to $1.89 reported in 2001, an increase of 11.6%. Net income
for the quarter ending December 31, 2002 was $0.58 per diluted share, an
increase of 41.5% over the $0.41 reported for the same period a year ago.
"The accomplishments of our organization and its employees during the past year
are truly astounding," Daigle said in describing the Company's performance. In
addition to record net income, the Company reported assets of over $1.2 billion,
loans in excess of $800.0 million and deposits in excess of $850.0 million. "Our
earnings performance was attained concomitant with efforts to provide an
enhanced service experience for our customers; all part of our underlying
philosophy that you don't get better by being bigger...you get bigger by being
better." Daigle went on to note that one of the year's crowning achievements was
the naming of Camden National Bank as a recipient of the Governor's Award for
Business Excellence. "As one of only six companies in Maine to be recognized for
'outstanding commitment to the communities we serve, passion in meeting the
needs of each customer, emphasis on employee development and dedication to
creating long-term shareholder value,' the award speaks for itself."
Total loans at December 31, 2002 were $808.9 million, an increase of 11.7% over
total loans of $724.0 million at December 31, 2001. Deposits of $850.1 million
at December 31, 2002 were 11.3% higher than deposit levels reported at December
31, 2001, while demand deposits, a low-cost source of funds for the Company
reached $105.1 million at December 31, 2002, an increase of 9.3% from the
previous year's level.
The Company reported return on average assets of 1.48% for 2002 compared to
1.47% in 2001 and return on equity of 15.38% for 2002 compared to 15.55% in
2001. "Despite the abnormally low interest rate environment experienced in 2002,
we were able to achieve financial results that we believe are likely to place
our company among the top performers in our peer group" Daigle commented. The
Company also reported an overall efficiency ratio (non-interest expense divided
by net interest income & non-interest income) of 52.70% for 2002, an improvement
compared to 54.15% in 2001.
Asset quality improved as indicated by a decrease in non-performing assets as a
percent of total loans which was 1.09% at December 31, 2002 versus 1.14% at
December 31, 2001. The Company maintained its allowance for loan losses as a
percent of total loans at 1.88% at December 31, 2002 compared to 1.87% a year
ago. Non-performing assets as a percent of total assets ended fiscal year 2002
at 0.72% an improvement from 0.76% recorded in the prior year.
The Company previously reported the financial impact of several non-recurring
events including the sale of its merchant credit card product line to NOVA
Information Systems during November 2002. This resulted in an after-tax gain of
$0.09 per diluted share. The Company also reported during the second quarter of
2002 that it implemented Statement of Financial Accounting Standard No. 142
"Goodwill and Other Intangible Assets" which resulted in an after-tax write-down
of goodwill related to prior acquisitions of $0.06 per diluted share.
Reflecting on the year's results and providing an insight into the Company's
strategy, Daigle explained, "The catalyst for the Company's growth in 2002 can
be attributed to the strategic investments we made in the Portland, Lewiston and
Bangor markets. In 2003, our investments in the Portland market will be
augmented by our recent expansion into Kennebunk, Maine and the creation of a
community development and government banking function." In describing the
Company's attitude toward operating in highly competitive markets, Daigle said,
"We constantly look for new and better ways to serve our existing and
prospective customers simply because we would rather raise the bar for ourselves
than let the competition do it for us."
Camden National Corporation, headquartered in Camden, Maine, and listed on the
American Stock Exchange under the symbol CAC, is the holding company for a
family of three financial services companies, including: Camden National Bank
(CNB), a full-service community bank with 12 banking offices serving Mid-coast,
and Portland and Kennebunk, Maine, and online at www.camdennational.com, and
recipient of the Governor's Award for Business Excellence in 2002;
UnitedKingfield Bank (UKB), a full-service community bank with 16 offices
serving Central, Eastern and Western Maine and online at
www.unitedkingfield.com; and Acadia Trust, N.A., offering investment management
and fiduciary services from its headquarters in Portland, Maine and office in
Bangor, Maine and online at www.acadiatrust.com and www.tcofme.com. In addition,
Acadia Financial Consultants operates as a division of CNB and UKB, to offer
full-service brokerage 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 laws and regulations; 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 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.
Camden National Corporation
(In thousands, except per share data)
December 31, December 31,
Balance Sheet Data 2002 2001
---- ----
Assets $ 1,218,419 $ 1,089,355
Loans 808,882 724,042
Allowance for Loan Losses 15,242 13,514
Investments 314,775 263,810
Deposits 850,134 763,568
Borrowings 238,861 210,843
Shareholders' Equity 118,828 105,068
Allowance for loan losses to total loans 1.88% 1.87%
Non-performing loans to total loans 1.09% 1.14%
Return on Average Equity 15.38% 15.55%
Three Months Ended Year To Date
Income Statement Data 12/31/2002 12/31/2001 12/31/2002 12/31/2001
---------- ---------- ---------- ----------
Interest Income $ 19,540 $ 19,526 $ 74,572 $ 79,870
Interest Expense 7,730 8,262 27,715 35,689
---------- ---------- ---------- ----------
Net Interest Income 11,810 11,264 46,857 44,181
Provision for Loan Losses 560 1,464 3,080 3,681
---------- ---------- ---------- ----------
Net Interest Income after Provision for Loan Losses 11,250 9,800 43,777 40,500
Non-interest Income 4,005 3,144 14,459 13,094
Non-interest Expense 8,412 8,198 32,311 31,014
---------- ---------- ---------- ----------
Income before Income Taxes and
Cumulative Effect of Accounting Change 6,843 4,746 25,925 22,580
Income Taxes 2,183 1,431 8,425 7,162
---------- ---------- ---------- ----------
Income before Cumulative Effect
of Accounting Change 4,660 3,315 17,500 15,418
Cumulative Effect of Change in Acccounting
for Goodwill, net of Tax Benefit of $241 - - (449) -
---------- ---------- ---------- ----------
Net Income $ 4,660 $ 3,315 $ 17,051 $ 15,418
========== ========== ========== ==========
Efficiency ratio 53.19% 56.90% 52.70% 54.15%
Net income per share before Cumulative
Effect of Accounting Change $ 0.58 $ 0.41 $ 2.18 $ 1.90
Cumulative Effect of Change in Accounting for Goodwill, net - - (0.06) -
---------- ---------- ---------- ----------
Net income per share $ 0.58 $ 0.41 $ 2.12 $ 1.90
Net income per diluted share before
Cumulative Effect of Accounting Change $ 0.58 $ 0.41 $ 2.17 $ 1.89
Cumulative Effect of Change in Accounting for Goodwill, net - - (0.06) -
---------- ---------- ---------- ----------
Net income per diluted share $ 0.58 $ 0.41 $ 2.11 $ 1.89
Weighted average shares outstanding 8,027,374 8,067,480 8,049,629 8,123,928