Exhibit 99.1
Camden National Corporation Reports 14.29% Increase in Second Quarter
Earnings Per Share
CAMDEN, Maine--(BUSINESS WIRE)--July 27, 2004--Robert W. Daigle,
President and Chief Executive Officer of Camden National Corporation
(AMEX: CAC; or the "Company"), announced the Company reported an
increase of 14.29% in earnings per diluted share for the second
quarter of 2004, reflecting solid increases in loan activity and
deposit growth from the Company's banking subsidiaries. Net income for
the quarter ended June 30, 2004 was $5.0 million, or $0.64 per diluted
share, up from $4.5 million, or $0.56 per diluted share, for the
quarter ended June 30, 2003.
For the six months ended June 30, 2004, earnings per diluted share
of $1.22 were up 10.91% compared to $1.10 for the first half of 2003.
Net income for the first six months of 2004 increased 7.37% to $9.5
million, up from $8.8 million reported at mid-year in 2003. These
results translated into a return on average equity of 15.73% and a
return on average assets of 1.40% at June 30, 2004, compared to 14.80%
and 1.41%, respectively, for the same six-month period a year ago.
Total loans at June 30, 2004, surpassed the billion-dollar mark
for the first time in the Company's history and represented a 12.23%
increase over levels reported for the same period a year ago. Deposit
growth was even more pronounced as recent quarter-end balances were at
$964.2 million, up 14.09% from June 30, 2003 levels. "Loan and deposit
results of this magnitude, in a stagnant economic environment, is a
testament to the quality of the staff, products and services of Camden
National Corporation," stated Daigle. "In addition, the acquisition of
Acadia Trust, N.A. ("Acadia") in 2001, as well as service and product
initiatives recently put in place at Acadia, have started to make a
positive contribution to the Company," Daigle noted. He referenced
expansion of the portfolio management staff, the creation of a joint
servicing relationship for employee benefits administration, and
expansion of product offerings as examples of recently implemented
changes at Acadia.
"The Company's net interest margin has been challenged by the
prolonged period of low interest rates," said Daigle. "Our proactive
management of interest rate and liquidity risks, however, has served
us well over the past 24 months." The Company sold the majority of its
30-year residential mortgage production during the past three years
and limited its investment portfolio security purchases to average
durations of three to four years in an effort to enhance its revenue
stream while managing interest rate risk.
The Board of Directors of the Company approved a dividend of $0.20
per share, payable on July 30, 2004, for shareholders of record on
July 15, 2004. This represents an increase of 5.3% over the dividend
paid for the same period a year ago. The Company also reported that it
repurchased 92,630 shares of its common stock for the six-month period
ending June 30, 2004 at an average price of $31.18. The stock price of
Camden National Corporation ended the second quarter of 2004 at $33.07
per share, an increase of $5.57, or 20.3%, above the closing price at
June 30, 2003. Additionally, on June 25, 2004, Camden National
Corporation had its listing on the Russell 3000(R) Index and Russell
2000(R) Index reaffirmed.
Camden National Corporation, headquartered in Camden, Maine, and
listed on the American Stock Exchange, the Russell 3000(R) Index and
the small-cap Russell 2000(R) Index 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
and a designated "SBA Express Lender" with 12 banking offices serving
Midcoast, 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 15 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 10K 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)
June 30, June 30, Dec. 31,
2004 2003 2003
----------- ----------- -----------
Balance Sheet Data
Assets $1,372,355 $1,279,273 $1,370,363
Loans 1,010,041 899,973 966,855
Allowance for Loan and
Lease Losses 14,520 14,117 14,135
Investments 265,116 282,924 303,749
Deposits 964,230 845,141 900,996
Borrowings 278,077 301,389 338,408
Shareholders' Equity 118,767 121,575 119,706
Tier 1 Leverage Capital Ratio 7.91% 8.37% 8.10%
Tier 1 Risk-based Capital Ratio 11.58% 12.33% 11.50%
Total Risk-based Capital Ratio 12.84% 13.58% 12.80%
Allowance for loan and lease
losses to total loans 1.44% 1.57% 1.46%
Non-performing loans to
total loans 0.57% 0.74% 0.70%
Return on Average Equity 15.73% 14.80% 15.85%
Three Months Ended Year To Date
6/30/2004 6/30/2003 6/30/2004 6/30/2003
---------- ---------- ---------- ----------
Income Statement Data
Interest Income $17,340 17,958 $35,197 $36,094
Interest Expense 5,523 6,044 11,008 12,090
---------- ---------- ---------- ----------
Net Interest Income 11,817 11,914 24,189 24,004
Provision for Loan and
Lease Losses - 445 165 865
---------- ---------- ---------- ----------
Net Interest Income after
Provision for Loan and
Lease Losses 11,817 11,469 24,024 23,139
Non-interest Income 3,359 2,629 5,901 5,018
Non-interest Expense 7,730 7,498 15,763 15,100
---------- ---------- ---------- ----------
Income before
Income Taxes 7,446 6,600 14,162 13,057
Income Taxes 2,496 2,105 4,692 4,237
---------- ---------- ---------- ----------
Net Income $4,950 $4,495 $9,470 $8,820
========== ========== ========== ==========
Efficiency ratio 50.94% 51.56% 52.39% 52.03%
Per Share Data
Net income per share $0.65 $0.56 $1.23 $1.10
Net income per
diluted share $0.64 $0.56 $1.22 $1.10
Weighted average
shares outstanding 7,699,523 7,985,028 7,724,485 8,005,919
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
sbrightbill@camdennational.com