Exhibit 99.1
Camden National Corporation Announces 11.11% Increase in Year-to-Date
Earnings Per Share
CAMDEN, Maine--(BUSINESS WIRE)--Oct. 28, 2003--Robert W. Daigle,
President and Chief Executive Officer of Camden National Corporation
(the "Company") (AMEX: CAC), announced earnings of $1.70 per diluted
share for the first nine months of 2003, compared to $1.53 reported
for the first nine months of 2002, an increase of 11.11%. Net income
was $13.6 million for the first nine months of 2003, compared to $12.4
million for the first nine months of 2002, an increase of 9.50%.
Earnings per diluted share and net income for the first nine months of
2002, prior to the 2002 adjustment for the effect of the adoption of
SFAS No. 142 "Goodwill and Other Intangible Assets" were $1.59 and
$12.8 million, respectively.
Earnings per diluted share were $0.60 for the third quarter of
2003, an increase of 5.26% over earnings reported for the third
quarter of 2002, and 7.14% higher than earnings reported for the
second quarter of 2003. Net income for the third quarter of 2003 was
$4.8 million, compared to $4.6 million for the third quarter of 2002
and $4.5 million for the second quarter of 2003.
The Company also reported total loans of $953.5 million on
September 30, 2003, an increase of 26.00% over loan balances on
September 30, 2002. Total deposits of $902.7 million on September 30,
2003 represented an increase of 5.14% over balances on September 30,
2002, and included a 12.33% growth in demand deposit balances.
Asset quality also improved during the quarter, as evidenced by a
46.96% improvement in non-performing assets, which were $4.5 million
on September 30, 2003 compared to $8.6 million on September 30, 2002.
The Company also reported net recoveries of $189,400 during the third
quarter of 2003. Noting that non-performing assets as a percentage of
total loans improved to 0.48% on September 30, 2003 from 1.13% on
September 30, 2002, Daigle said, "I'm pleased to acknowledge the
superb efforts of the Corporate Risk Management Group and the senior
management team at UnitedKingfield Bank in addressing asset quality
issues in that franchise.
"Earnings are strong and growing, but not at the expense of
stretching our credit and pricing guidelines which is tempting when
the net interest margin is being squeezed in this low interest rate
environment," continued Daigle. "We will implement strategies that are
focused on long-term, sustainable growth, which we believe will build
a solid business foundation without taking undue risks with our
shareholders' capital." Daigle cited the proactive management of asset
quality, the sale of the Company's credit card portfolio, and the
continued strong performance of the Company's southern Maine expansion
as examples of Camden National's commitment to shareholder value.
"Camden National Corporation and its subsidiaries are committed to
delivering excellent shareholder value through superior customer
service," concluded Daigle. "Over 80% of our employees have graduated
from The Customer(R), an intensive, nationally recognized customer
service development program, which reflects not only the Company's
financial commitment to customer service, but also the personal
commitment of each Camden National Corporation employee."
The Company reported that it repurchased 181,600 shares of its
common stock at an average cost of $28.78 per share during the
quarter. The closing price of Camden National's stock was $29.51 on
September 30, 2003, which represented an increase of 21.94% since the
closing price on December 31, 2002.
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, Kennebunk and Portland,
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 with offices in Portland and Bangor, Maine and online at
www.acadiatrust.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)
September 30, September 30, December 31,
2003 2002 2002
Balance Sheet Data
Assets $1,285,474 $1,208,652 $1,218,419
Loans 953,492 756,711 808,882
Allowance for Loan Losses 14,491 14,771 15,242
Investments 233,051 325,396 314,775
Deposits 902,692 858,579 850,134
Borrowings 254,057 224,560 238,861
Shareholders' Equity 116,815 114,817 118,828
Tier 1 Leverage Capital Ratio 8.03% 8.53% 8.73%
Tier 1 Risk-Based Capital Ratio 11.43% 12.28% 12.60%
Total Risk-Based Capital Ratio 12.69% 13.54% 13.81%
Allowance for Loan Losses to
Total Loans 1.52% 1.95% 1.88%
Non-performing Assets to
Total Loans 0.48% 1.13% 1.09%
Return on Average Equity 15.11% 15.18% 15.38%
Three Months Ended Year To Date
9/30/2003 9/30/2002 9/30/2003 9/30/2002
Income Statement Data
Interest Income $17,447 $18,382 $53,540 $55,032
Interest Expense 5,757 6,772 17,846 19,985
Net Interest Income 11,690 11,610 35,694 35,047
Provision for Loan Losses 185 570 1,050 2,520
Net Interest Income after
Provision for Loan Losses 11,505 11,040 34,644 32,527
Non-interest Income 2,531 3,783 7,549 10,454
Non-interest Expense 6,938 8,016 22,038 23,899
Income before Income Taxes
and Cumulative Effect of
Accounting Change 7,098 6,807 20,155 19,082
Income Taxes 2,350 2,235 6,587 6,242
Income before Cumulative
Effect of Accounting Change 4,748 4,572 13,568 12,840
Cumulative Effect of Change
in Accounting for
Goodwill, net of Tax
Benefit of $241 - - - (449)
Net Income $4,748 $4,572 $13,568 $12,391
Efficiency ratio 48.79% 52.08% 50.96% 52.52%
Net income per share before
Cumulative Effect of
Accounting Change $0.60 $0.57 $1.70 $1.60
Cumulative Effect of Change
in Accounting for
Goodwill, net - - - (0.06)
Net income per share $0.60 $0.57 $1.70 $1.54
Net income per diluted
share before Cumulative
Effect of Accounting Change $0.60 $0.57 $1.70 $1.59
Cumulative Effect of Change
in Accounting for
Goodwill, net - - - (0.06)
Net income per diluted
share $0.60 $0.57 $1.70 $1.53
Weighted average shares
outstanding 7,894,807 8,054,363 7,966,384 8,056,978
CONTACT: Camden National Corporation
Investor Relations:
Gregory A. Dufour, 207-230-2106
Senior Vice President, Finance, Operations and Technology
or
Public Relations:
Suzanne M. Brightbill, 207-230-2120
Public Relations Officer