Exhibit 99.1
Camden National Corporation Announces a 10.9% Increase in
Second Quarter 2005 Earnings Per Share Results
CAMDEN, Maine--(BUSINESS WIRE)--July 26, 2005--Robert W. Daigle,
President and Chief Executive Officer of Camden National Corporation
(the "Company") (AMEX: CAC), today announced second quarter 2005
earnings per diluted share of $0.71, up 10.9% from $0.64 per diluted
share for the second quarter of 2004. Net income for the second
quarter of 2005 was $5.5 million versus $5.0 million recorded during
the same period a year ago.
"The results of the past three months represent positive momentum
heading into our traditionally stronger quarters of the year, those
heavily influenced by tourism," stated Daigle.
For the first six months of this year, net income per diluted
share increased 9.8% to $1.34, compared to $1.22 per diluted share
earned during the first half of 2004. Net income for the six-month
period ended June 30, 2005 was $10.3 million, an increase of 8.7% from
the same period a year ago. These results translated into a return on
average equity of 16.73% and a return on average assets of 1.35% for
the six months ended June 30, 2005, compared to 15.73% and 1.40%,
respectively, for the same six-month period in 2004.
The Company's total assets at June 30, 2005 were $1.6 billion, an
increase of 15.6% over total assets of $1.4 billion at June 30, 2004.
Net loans at June 30, 2005 were $1.1 billion, up 12.1% over the $995.5
million in net loans at June 30, 2004. Total deposits of $1.1 billion
at June 30, 2005 were up 11.8% over the same period a year ago.
Net interest income of $13.4 million for the second quarter of
2005 was up $1.6 million, or 13.4%, compared to the same period a year
ago. Daigle noted that a combination of re-pricing within the various
loan portfolios, effective use of newly installed relationship-pricing
technology, and solid growth in low-cost deposit categories has helped
mitigate increased funding costs.
Non-interest income amounted to $2.7 million for the quarter ended
June 30, 2005, down from $3.4 million for the same quarter a year ago.
This was primarily the result of security gains in the comparable
prior year quarter and the decline in service charge fees impacted by
relationship pricing in 2005.
Non-interest expense for the second quarter of 2005 was $7.9
million, an increase of $127,000, or 1.6%, over the prior year
quarter. Although non-interest expense increased slightly, the
Company's efficiency ratio (non-interest expense/net interest income
and non-interest income) for the quarter ended June 30, 2005 improved
to 48.89%, compared to 50.94% during the second quarter of 2004.
The Company reported earlier that the Board of Directors approved
a dividend of $0.20 per share, payable on July 29, 2005 for
shareholders of record on July 15, 2005.
"I am convinced that our success going forward is all about
providing our customers the kind of remarkable experiences that build
strong bonds and lead to partnerships more so than relationships,"
Daigle noted in concluding his remarks. "The results that we have
achieved during the first six months of 2005 give me encouragement
about the efficacy of our strategic direction."
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)
June 30, June 30, Dec. 31,
2005 2004 2004
----------- ----------- -----------
Balance Sheet Data
Assets $1,586,984 $1,372,355 $1,489,865
Loans 1,130,483 1,010,041 1,069,294
Allowance for Loan Losses 14,040 14,520 13,641
Investments 360,647 265,116 323,998
Deposits 1,078,047 964,230 1,014,601
Borrowings 371,227 278,077 336,820
Shareholders' Equity 126,575 118,767 126,405
Tier 1 Leverage Capital Ratio 7.40% 7.91% 8.06%
Tier 1 Risk-based Capital Ratio 10.76% 11.58% 11.28%
Total Risk-based Capital Ratio 12.02% 12.84% 12.54%
Allowance for loan and lease
losses to total loans 1.24% 1.44% 1.28%
Non-performing loans to total
loans 0.57% 0.57% 0.60%
Return on Average Equity 16.73% 15.73% 15.97%
Three Months Ended Year To Date
6/30/2005 6/30/2004 6/30/2005 6/30/2004
---------- ---------- ---------- ----------
Income Statement Data
Interest Income $21,612 $17,639 $41,765 $35,804
Interest Expense 8,206 5,822 15,399 11,615
---------- ---------- ---------- ----------
Net Interest Income 13,406 11,817 26,366 24,189
Provision for Loan and
Lease Losses 345 0 575 165
---------- ---------- ---------- ----------
Net Interest Income after
Provision for Loan and
Lease Losses 13,061 11,817 25,791 24,024
Non-interest Income 2,664 3,359 5,090 5,901
Non-interest Expense 7,857 7,730 15,745 15,763
---------- ---------- ---------- ----------
Income before Income Taxes 7,868 7,446 15,136 14,162
Income Taxes 2,412 2,496 4,839 4,692
---------- ---------- ---------- ----------
Net Income $5,456 $4,950 $10,297 $9,470
========== ========== ========== ==========
Efficiency ratio 48.89% 50.94% 50.05% 52.39%
Per Share Data
Net income per share $0.72 $0.65 $1.35 $1.23
Net income per diluted
share $0.71 $0.64 $1.34 $1.22
Weighted average shares
outstanding 7,615,464 7,699,523 7,629,786 7,724,485
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
Public Relations Officer
sbrightbill@camdennational.com