Exhibit 99.1
Camden National Corporation Announces a 6.9% Increase in Earnings
Per Share for the Third Quarter of 2006
CAMDEN, Maine--(BUSINESS WIRE)--Oct. 31, 2006--Robert W. Daigle, President
and Chief Executive Officer of Camden National Corporation (AMEX: CAC; the
"Company"), today announced third quarter 2006 earnings per diluted share of
$0.77, up 6.9% from $0.72 per diluted share for the third quarter of 2005. Net
income for the quarter ended September 30, 2006 was $5.1 million versus $5.5
million recorded during the same period a year ago.
"While we are pleased that the successful completion of the second quarter
"Dutch Auction" tender offer is having its expected beneficial effect on the
Company's earnings per share," said Daigle, "we remain very much focused on our
core operating activities and how best to mitigate the stress being placed on
the Company's net interest margin."
For the first nine months of this year, net income per diluted share
increased 5.8% to $2.18, compared to $2.06 per diluted share earned during the
same period of 2005. Net income for the nine-month period ended September 30,
2006 was $15.3 million versus $15.8 million from the same period a year ago. The
2006 year-to-date results translated into returns on average equity and average
assets of 18.23% and 1.19%, compared to 16.89% and 1.35%, respectively, for the
nine months ended September 30, 2005.
Reflected in the nine-month results for 2006 are the pre-tax impact of a
charge to earnings of $645,000 resulting from the Steamship Navigation et al
litigation involving Camden National Bank, $283,000 in expenses incurred as part
of the consolidation of the Company's two banks, and interest costs of $1.0
million associated with the issuance of trust preferred securities. Without the
one-time expenses associated with the litigation and bank consolidation, and the
introduction of the trust preferred interest expense, the Company's net income
would have been up $181,000, or 3.3%, and $895,000, or 5.7%, respectively, over
the third quarter and nine-month period in 2005.
The Company's total assets at September 30, 2006 were $1.7 billion, an
increase of 5.7% over total assets at September 30, 2005. Net loans at September
30, 2006 were $1.2 billion, up 6.9% over net loans at September 30, 2005. Total
deposits of $1.2 billion at September 30, 2006 were up 8.0% over the same period
a year ago.
Net interest income of $13.2 million for the third quarter of 2006
reflected a decrease of $1.0 million, or 7.4%, compared to the same period a
year ago. Excluding the interest expense on the trust preferred securities, the
net interest income would have decreased 3.1% for the third quarter of 2006
compared to the same period in 2005. "As discussed in earlier earnings
communiques, the current environment consisting of a prolonged flat yield curve,
irrational competitive lending practices, and highly aggressive deposit pricing,
continues to impact our margin results," noted Daigle.
For the third quarter of 2006, the provision for loan and lease losses of
$552,000 increased $207,000 over the $345,000 expensed during the same quarter
one year ago. For the first nine months of the year, the provision was $1.7
million, an increase of $736,000 over the same period in 2005. At September 30,
2006, non-performing assets to total loans increased to 0.68% from 0.53% at
September 30, 2005, and net charge-offs increased to $1.4 million for the nine
months ended September 30, 2006, from $733,000 for the same period of 2005.
Daigle said, "The credit related issues we have identified are isolated to a
few, larger relationships negatively impacted by economic conditions, as opposed
to general portfolio weaknesses."
Non-interest income of $3.0 million for the quarter ended September 30,
2006 was up 13.7% from the same quarter a year ago. This was primarily the
result of an increase in income from fiduciary services at Acadia Trust, N.A.
and brokerage and insurance commissions from Acadia Financial Consultants, which
increased 15.3% to $1.3 million for the third quarter of 2006 over the same
period in 2005.
Non-interest expense for the third quarter of 2006 was $8.2 million, a
decrease of $209,000, or 2.5%, over the third quarter of the prior year. The
Company's efficiency ratio for the quarter ended September 30, 2006 was 50.60%,
up slightly from 49.78% for the third quarter of 2005.
The Company reported earlier that the Board of Directors approved a
dividend of $0.22 per share, payable on October 31, 2006, for shareholders of
record on October 16, 2006. At the end of the third quarter of 2006, the price
of Camden National Corporation stock closed at $40.20 per share, an increase of
$2.53, or 6.7%, above the closing price at September 30, 2005.
In closing, Daigle stated, "Although we remain cautious regarding the
Company's growth prospects for the balance of 2006, we are encouraged by the
successful execution of the transition to one bank this past quarter, as well as
the spirit of innovation witnessed daily among our workforce. Excellence in
execution and innovation are what viable companies require in order to navigate
through the turbulence and strong headwinds being experienced in today's
economic environment."
Camden National Corporation, a 2006 Best Places to Work in Maine company
headquartered in Camden, Maine, and listed on the American Stock Exchange, the
Russell 3000(R) and the Russell 2000(R) under the symbol CAC, is the holding
company for a family of two financial services companies, including: Camden
National Bank (CNB), a full-service community bank with 27 banking offices
serving coastal, western, central and eastern Maine, and recipient of the
Governor's Award for Business Excellence in 2002, and Acadia Trust, N.A.,
offering investment management and fiduciary services with offices in Portland
and Bangor. Acadia Financial Consultants is a division of CNB, offering
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 September December
30, 30, 31,
2006 2005 2005
----------- ----------- -----------
Balance Sheet Data
Assets $1,749,188 $1,655,611 $1,653,257
Loans 1,244,142 1,163,524 1,182,175
Allowance for loan and lease
losses 14,472 13,828 14,167
Investments 395,426 388,623 367,629
Deposits 1,220,121 1,129,564 1,163,905
Borrowings 411,033 383,391 347,039
Shareholders' equity 102,726 129,442 129,538
Tier 1 leverage capital ratio 7.36% 7.50% 7.60%
Tier 1 risk-based capital ratio 10.74% 10.78% 10.67%
Total risk-based capital ratio 12.23% 12.04% 11.92%
Allowance for loan and lease
losses to total loans 1.16% 1.19% 1.20%
Non-performing loans to total
loans 0.68% 0.53% 0.79%
Return on average equity 18.23% 16.89% 16.99%
Return on average assets 1.19% 1.35% 1.34%
Tangible book value per share (1) $14.71 $16.24 $16.40
Three Months Ended Year To Date
9/30/2006 9/30/2005 9/30/2006 9/30/2005
---------- ---------- ---------- ----------
Income Statement Data
Interest income $27,421 $23,425 $79,516 $65,190
Interest expense 14,258 9,214 38,634 24,613
---------- ---------- ---------- ----------
Net interest income (2) 13,163 14,211 40,882 40,577
Provision for loan and
lease losses 552 345 1,656 920
---------- ---------- ---------- ----------
Net Interest income after
provision for loan and
lease losses 12,611 13,866 39,226 39,657
Non-interest income 3,003 2,641 8,710 7,731
Non-interest expense 8,180 8,389 25,656 24,134
---------- ---------- ---------- ----------
Income before income taxes 7,434 8,118 22,280 23,254
Income taxes 2,298 2,626 6,948 7,465
---------- ---------- ---------- ----------
Net income (3) (4) $5,136 $5,492 $15,332 $15,789
========== ========== ========== ==========
Efficiency ratio (5) 50.60% 49.78% 51.73% 49.96%
Per Share Data
Basic earnings per share $0.77 $0.72 $2.18 $2.07
Diluted earnings per share $0.77 $0.72 $2.18 $2.06
Weighted average shares
outstanding 6,613,379 7,591,939 7,021,808 7,616,815
(1) Computed by dividing total shareholders' equity less goodwill and
core deposit intangible by the number of common shares outstanding.
(2) Excluding the Trust Preferred interest expense of $600, net
interest income would have been $13,763 for the third quarter of
2006.
(3) Excluding the Trust Preferred interest expense of $600, net of
taxes of $185, and consolidation related expenses of $177, net of
taxes of $55, net income would have been $5,673 for the third quarter
of 2006.
(4) Excluding the Steamship Navigation litigation charge of $645, net
of taxes of $201, the Trust Preferred interest expense of $1,037, net
of taxes of $323, and consolidation related expenses of $283, net of
taxes of $88, 2006 year-to-date net income would have been $16,684.
(5) Computed by dividing total non-interest expense by the sum of net
interest income and total non-interest income.
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
Public Relations Officer
sbrightbill@camdennational.com