Exhibit 99.1
Camden National Corporation Reports 2006 Full Year and Fourth Quarter Earnings
CAMDEN, Maine--(BUSINESS WIRE)--Jan. 30, 2007--Camden National
Corporation (AMEX:CAC; the "Company") today reported 2006 net income
of $20.3 million, a decrease of 5.2% compared to net income of $21.4
million reported in 2005. Net income per diluted share was $2.93, a
4.6% increase over the $2.80 reported in 2005, which reflects the
favorable impact of the Company's stock repurchase completed in the
second quarter of 2006. These results translated into a return on
average equity of 18.40% and a return on average assets of 1.17% for
2006, compared to 16.99% and 1.34%, respectively, for 2005.
Reflected in the full year 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, $308,000
in expenses incurred as part of the consolidation of the Company's two
banks, and interest costs of $1.6 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 recurring trust preferred interest expense, the
Company's 2006 net income would have been up $683,000, or 3.2%, over
2005.
For the fourth quarter, net income was $4.9 million, an 11.6%
decrease from $5.6 million reported for the fourth quarter of 2005.
The decline was primarily due to decreased net interest income, which
was driven by higher funding costs. Diluted earnings per share
increased to $0.75 for the fourth quarter of 2006, compared to $0.74
for the same period in 2005.
The Company's total assets at December 31, 2006 were $1.8 billion,
an increase of 7.1% over total assets of $1.7 billion at December 31,
2005. Total loans at December 31, 2006 were $1.2 billion, up 3.0% over
total loans at December 31, 2005. Total deposits of $1.2 billion at
December 31, 2006 were up 1.9% over the same period a year earlier,
while core deposits of $1.0 billion at December 31, 2006 were up 7.3%
over core deposits at December 31, 2005.
In assessing the Company's overall financial performance for 2006,
Robert W. Daigle, president and CEO, stated, "We are pleased to report
these results despite the negative impact of a flat yield curve and an
exceedingly competitive loan and deposit environment in 2006.
Notwithstanding these detractors, we were able to continue focusing on
the sound execution of our overall strategies, which includes
providing customers with a value proposition that incorporates the
Camden National Experience."
Net interest income decreased 1.5% to $54.2 million for 2006,
compared to $55.0 million for 2005. The combination of the flat yield
curve and increased funding costs compressed the net interest margin,
which was 3.36% for 2006 versus 3.68% for 2005. Excluding the interest
expense on the trust preferred securities, net interest income would
have increased 1.5% for 2006 compared to 2005, and the net interest
margin for 2006 would have been 3.46%.
Non-interest income for 2006 was $11.6 million, an increase of
15.7% compared to 2005, which was primarily affected by an increase in
income from fiduciary services at Acadia Trust, N.A., an increase in
debit card income, and a 2005 loss on the sale of investments.
Non-interest expense for 2006 was $34.2 million, an increase of
5.4% over the prior year. The Company's efficiency ratio for 2006 was
52.00% compared to 49.88% in 2005. Without the one-time expenses
associated with the litigation and bank consolidation, non-interest
expense for 2006 would have increased 2.5% over 2005 and would have
resulted in an efficiency ratio of 50.55%.
During 2006, the Company provided $2.2 million to the allowance
for loan and lease losses ("ALLL") compared to $1.3 million in 2005.
The addition to the ALLL was a result of $35.9 million in loan growth
during 2006, an increase in non-performing loans as a percentage of
total loans to 1.12% at December 31, 2006 compared to 0.79% at
December 31, 2005, and net charge-offs of $1.4 million, or 0.12%, of
average loans outstanding for 2006 compared to net charge-offs of
$739,000, or 0.06%, of average loans outstanding for 2005.
At December 31, 2006, the Company's total risk-based capital ratio
of 12.73% and tier 1 capital ratio of 11.29% compared favorably to the
minimum ratios of 10.0% and 6.0%, respectively, required by the
Federal Reserve for a bank holding company to be considered "well
capitalized."
Including the modified "Dutch Auction" tender offer, the Company
repurchased 941,246 shares of its common stock during 2006 at an
average per share price of $38.93. The Company paid regular dividends
of $0.88 per share during 2006. The Company recently announced that
the dividend payable on January 31, 2007, to shareholders of record on
January 16, 2007, was increased to $0.24, a 9.1% increase over the
$0.22 per share in the previous quarter. The closing stock price of
Camden National Corporation was $46.12 at December 31, 2006, an
increase of 40.3% above the December 31, 2005 of $32.88.
Daigle concluded, "In 2006, the Company successfully completed the
merger of the two banking franchises, a significant investment in
scalable technology, and the modified "Dutch Auction" tender offer
transaction. Although we are in the throes of a difficult banking
environment, we continue to execute the basic block-and-tackle of
banking while preparing for the expansion opportunities which might
present themselves to us in both existing and prospective markets."
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)
December 31, December 31,
2006 2005
------------ ------------
Balance Sheet Data
Assets $1,769,886 $1,653,257
Loans 1,218,129 1,182,175
Allowance for loan
and lease losses 14,933 14,167
Investments 444,093 367,629
Deposits (1) 1,185,801 1,163,905
Borrowings 437,364 347,039
Shareholders' equity 107,052 129,538
Tier 1 leverage
capital ratio 7.63% 7.60%
Tier 1 risk-based
capital ratio 11.29% 10.67%
Total risk-based
capital ratio 12.73% 11.92%
Allowance for loan
and lease losses to
total loans 1.23% 1.20%
Non-performing loans
to total loans 1.12% 0.79%
Return on average
equity 18.40% 16.99%
Return on average
assets 1.17% 1.34%
Tangible book value
per share (2) $15.40 $16.40
Three Months Ended Twelve Months Ended
12/31/2006 12/31/2005 12/31/2006 12/31/2005
------------ ------------ ----------- -----------
Income Statement
Data
Interest income $27,722 $24,531 $107,238 $89,721
Interest expense 14,414 10,084 53,048 34,697
------------ ------------ ----------- -----------
Net interest income
(3) 13,308 14,447 54,190 55,024
Provision for loan
and lease losses 552 345 2,208 1,265
------------ ------------ ----------- -----------
Net Interest income
after provision for
loan and lease
losses 12,756 14,102 51,982 53,759
Non-interest income 2,919 2,319 11,629 10,050
Non-interest expense
(4) 8,568 8,327 34,224 32,461
------------ ------------ ----------- -----------
Income before income
taxes 7,107 8,094 29,387 31,348
Income taxes 2,163 2,503 9,111 9,968
------------ ------------ ----------- -----------
Net income (5) $4,944 $5,591 $20,276 $21,380
============ ============ =========== ===========
Efficiency ratio (6) 52.80% 49.67% 52.00% 49.88%
Per Share Data
Basic earnings per
share $0.75 $0.74 $2.93 $2.81
Diluted earnings per
share $0.75 $0.74 $2.93 $2.80
Weighted average
shares outstanding 6,616,228 7,566,974 6,919,579 7,599,051
(1) Core deposits, which exclude brokered deposits, were $1.027
billion at December 31, 2006, an increase of 7.3% over core deposits
of $956.6 million at December 31, 2005.
(2) Computed by dividing total shareholders' equity less goodwill and
core deposit intangible by the number of common shares outstanding.
(3) Excluding the trust preferred interest expense of $1.6 million,
net interest income would have been $55.8 million for 2006, resulting
in a net interest margin of 3.46%.
(4) Excluding the Steamship Navigation litigation charge of $645,000
and consolidation related expenses of $308,000, non-interest expense
would have been $33.3 million, resulting in an efficiency ratio of
50.55% for 2006.
(5) Excluding the Steamship Navigation litigation charge of $645,000,
net of taxes of $200,000, the trust preferred interest expense of
$1.637 million, net of taxes of $508,000, and consolidation related
expenses of $308,000, net of taxes of $95,000, 2006 year-to-date net
income would have been $22.063 million.
(6) Computed by dividing non-interest expense by the sum of net
interest income and non-interest income.
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
Public Relations Officer