Exhibit 99.1
Camden National Corporation Announces 13.33% Increase in Third Quarter 2004
Earnings Per Share Results
CAMDEN, Maine--(BUSINESS WIRE)--Oct. 26, 2004--Robert W. Daigle, President
and Chief Executive Officer of Camden National Corporation, (AMEX: CAC; the
"Company"), today announced that earnings per diluted share increased 13.33% to
$0.68 for the quarter ended September 30, 2004, compared to $0.60 per diluted
share during the third quarter of 2003. Net income for the recently completed
quarter was $5.3 million, which compared favorably to $4.7 million for the same
period a year earlier.
Daigle noted that while the banking industry continues to face the
challenges of a protracted period of historically low interest rates, the
Company continued a positive trend of steady financial results during the third
quarter of 2004. "In part, our strategy focused on quality growth in the balance
sheet, enhanced asset quality management practices, increased non-interest
income generation and diligence in controlling non-interest expenses," said
Daigle.
Daigle continued to report that through the first nine months of 2004,
earnings per diluted share of $1.90 represented an increase of 11.76% compared
to $1.70 for the same three quarters in 2003. Net income of $14.7 million for
the nine-month period ending September 30, 2004 was up 8.53% over the $13.6
million reported at the end of the third quarter in 2003. These results
translated into a return on average equity of 16.23% and a return on average
assets of 1.43% at September 30, 2004, which compared favorably to 15.11% and
equally to 1.43%, respectively, at the same time a year ago.
At September 30, 2004, record total assets of $1.4 billion were up 11.30%
over the same period a year ago. Total deposits of $993.6 million increased
10.07% from levels reported at September 30, 2003. Total loans of $1.0 billion
and investments of $290.4 million, representing the two largest asset
categories, increased 9.42% and 24.60%, respectively, year-on-year.
Daigle stated that a third quarter review of both affiliate bank loan
portfolios by an independent third party confirmed Management's opinion that the
UnitedKingfield Bank portfolio had stabilized and the Allowance for Loan and
Lease Losses (ALLL) should be adjusted downward by $1.25 million. Unrelated to
the UKB analysis, several loan relationships at Camden National Bank were
negatively impacted by weather-related construction delays and a slower than
expected tourist season, and Camden National Bank's ALLL was increased
accordingly by $400,000. Daigle explained that the Company's traditionally
conservative approach to asset quality resulted in the adjustments, but noted
both banks' loan portfolios were of high quality, as evidenced by the level of
non-performing loans to total loans, which at 0.76%, is up nominally from 0.70%
at December 31, 2003. In addition, total net recoveries through the first nine
months of the year were $201,600, a level well ahead of peer and industry
averages.
Commenting on a jury trial in September wherein Camden National Bank was a
defendant in a lawsuit brought by a former commercial customer, Daigle reported
that while 20 of the original 21 counts were dismissed, the jury did return a
verdict against Camden National Bank on the one remaining count and awarded
damages of $1.5 million. Management of Camden National Bank and the Company has
reviewed this matter with counsel and the Company's outside auditors. Daigle
stated that management continues to believe that the allegations are unfounded
and that it is probable that this judgment will be reversed upon appeal. A
motion has been filed asking the judge to reverse the jury verdict and
accompanying award of damages. Accordingly, no reserve for potential settlement
expenditure has been recorded as of September 30, 2004. A more detailed
discussion will be available in the Company's September 30, 2004 Form 10-Q filed
with the Securities and Exchange Commission.
Daigle also noted that Management and the Board of Directors make every
effort possible to ensure that all shareholders are informed of business
activities and events that may affect the financial condition of the Company.
This includes news releases, shareholder letters and the Company's quarterly and
annual reports. In addition, each shareholder is encouraged to review the
Company's filings with the Securities and Exchange Commission, which are
available by contacting management or online at www.sec.gov,
www.camdennational.com and www.unitedkingfield.com.
Daigle further reported that the Board of Directors of the Company approved
a dividend of $0.20 per share, payable on October 29, 2004 to shareholders of
record on October 15, 2004. This represents an increase of 5.26% over the
dividend paid for the same period a year ago. The stock price of Camden National
Corporation ended the third quarter of 2004 at $34.51, an increase of $5.00, or
16.94% above the closing price at September 30, 2003.
"As the Company embarks on its 130th year, we will endeavor to provide
long-term, sustainable shareholder value by strengthening our commitment to
building a superior business advantage through the delivery of service
excellence to our Customer," concluded Daigle.
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 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 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)
Sept. 30, Sept. 30, Dec. 31,
2004 2003 2003
----------- ----------- -----------
Balance Sheet Data
Assets $1,430,708 $1,285,474 $1,370,363
Loans 1,043,294 953,492 966,855
Allowance for Loan
and Lease Losses 13,651 14,491 14,135
Investments 290,389 233,051 303,749
Deposits 993,597 902,692 900,996
Borrowings 301,838 254,057 338,408
Shareholders' Equity 124,550 116,815 119,706
Tier 1 Leverage
Capital Ratio 8.00% 8.03% 8.10%
Tier 1 Risk-based
Capital Ratio 11.41% 11.43% 11.50%
Total Risk-based
Capital Ratio 12.66% 12.69% 12.80%
Allowance for loan
and lease losses to
total loans 1.31% 1.52% 1.46%
Non-performing loans
to total loans 0.76% 0.46% 0.70%
Return on Average Equity 16.23% 15.11% 15.85%
Three Months Ended Year To Date
9/30/2004 9/30/2003 9/30/2004 9/30/2003
----------- ----------- ----------- ----------
Income Statement Data
Interest Income $17,700 17,447 $52,897 $53,540
Interest Expense 5,701 5,757 16,709 17,846
----------- ----------- ----------- ----------
Net Interest Income 11,999 11,690 36,188 35,694
Provision for Loan
and Lease Losses (850) 185 (685) 1,050
----------- ----------- ----------- ----------
Net Interest Income
after Provision for
Loan and Lease Losses 12,849 11,505 36,873 34,644
Non-interest Income 2,729 2,531 8,630 7,549
Non-interest Expense 7,784 6,938 23,547 22,038
----------- ----------- ----------- ----------
Income before
Income Taxes 7,794 7,098 21,956 20,155
Income Taxes 2,538 2,350 7,230 6,587
----------- ----------- ----------- ----------
Net Income $5,256 $4,748 $14,726 $13,568
=========== =========== =========== ==========
Efficiency ratio 52.85% 48.79% 52.54% 50.96%
Per Share Data
Net income per share $0.68 $0.60 $1.91 $1.70
Net income per
diluted share $0.68 $0.60 $1.90 $1.70
Weighted average
shares outstanding 7,656,939 7,894,807 7,701,805 7,966,384
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
sbrightbill@camdennational.com