Exhibit 99.1
Camden National Corporation Announces a 9.1% Increase in First Quarter 2007
Earnings Per Share Results
CAMDEN, Maine--(BUSINESS WIRE)--April 24, 2007--Robert W. Daigle, president
and Chief Executive Officer of Camden National Corporation (AMEX: CAC; the
"Company"), today announced first quarter 2007 earnings per diluted share of
$0.72, up 9.1% from $0.66 per diluted share for the first quarter of 2006, which
reflects the favorable impact of the Company's stock repurchase completed in the
second quarter of 2006. For the three months ended March 31, 2007, the returns
on average equity and average assets were 18.01% and 1.11%, compared to 15.48%
and 1.18%, respectively, for the three months ended March 31, 2006.
Net income for the first quarter of 2007 was $4.8 million, a 3.1% decrease
from $4.9 million reported for the first quarter of 2006. The decline was
primarily due to decreased net interest income, which was impacted by higher
funding costs and the trust preferred interest expense.
Daigle commented, "Consistent with previous quarters, the challenges we
face are from a tightening margin resulting from the flat to inverted yield
curve, and irrational competitive pricing and structure on commercial loans. We
are encouraged by improvements in our asset quality and the traction we are
gaining with our core deposit initiatives."
The Company's total assets at March 31, 2007 were $1.7 billion, an increase
of $4.1 million over total assets at March 31, 2006. Investments increased $19.2
million to $435.6 million at March 31, 2007, while total loans at March 31, 2007
were $1.2 billion, down $12.2 million compared to total loans at March 31, 2006.
Total deposits of $1.2 billion at March 31, 2007 declined $14.9 million over the
same period a year ago. Core deposits (total deposits excluding brokered
certificates of deposit) of $1.0 billion at March 31, 2007 increased $72.8
million over the same period a year ago.
Net interest income for the first quarter of 2007 decreased 12.4% to $12.4
million, compared to $14.2 million for same period of 2006. The combination of
the flat yield curve and increased interest costs continued to compress the net
interest margin. Interest expense during the first quarter of 2007 included
$587,000 of interest on the trust preferred securities, which were issued in the
second quarter of 2006 to support the Dutch Auction tender offer, and decreased
the net interest margin 15 basis points. The net interest margin was 3.07% for
the first three months of 2007 versus 3.63% for the same period of 2006.
During the first quarter of 2007, the Company provided $100,000 to the
allowance for loan and lease losses ("ALLL") compared to $552,000 for the same
quarter of 2006. The decline in the provision to the ALLL was a result of an
improvement in non-performing loans as a percentage of total loans, which at
0.66% at March 31, 2007, compared favorably to 0.71% at March 31, 2006, and an
overall decline in outstanding loan balances quarter-on-quarter. The ALLL was
1.24% of total loans outstanding at March 31, 2007, compared to 1.21% of loans
outstanding on the same date in 2006.
Non-interest income of $3.0 million for the quarter ended March 31, 2007
was up 9.5% 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 commission income at Acadia Financial Consultants.
Non-interest expense for the first quarter of 2007 was $8.6 million, a
decrease of $647,000, or 7.0%, over the same quarter in the prior year, as the
Company recorded a $645,000 charge in 2006 resulting from the Steamship
Navigation et al litigation. The Company's efficiency ratio (non-interest
expense/net interest income and non-interest income) for the quarter ended March
31, 2007 was 55.31%, compared to 54.25% for the first quarter of 2006.
At March 31, 2007, the Company's total risk-based capital ratio of 13.22%
and tier 1 capital ratio of 11.97% 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."
The Company reported earlier that the Board of Directors approved a
dividend of $0.24 per share, payable on April 30, 2007 for shareholders of
record on April 16, 2007. At the end of the first quarter of 2007, the price of
Camden National Corporation stock closed at $43.40 per share, an increase of
$5.00, or 13.0%, above the closing price of $38.40 at March 31, 2006.
"As this adverse environment persists, we will continue to focus on banking
fundamentals and sound operating discipline," Daigle noted in concluding his
remarks.
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)
March 31, March 31, December 31,
2007 2006 2006
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Balance Sheet Data
Assets $1,740,762 $1,736,627 $ 1,769,886
Loans 1,200,257 1,212,498 1,218,129
Allowance for Loan and Lease
Losses 14,873 14,639 14,933
Investments 435,594 416,360 444,093
Deposits (1) 1,189,364 1,204,266 1,185,801
Borrowings 422,976 385,493 437,364
Shareholders' Equity 112,263 131,493 107,052
Tier 1 Leverage Capital Ratio 7.88% 7.31% 7.63%
Tier 1 Risk-based Capital Ratio 11.97% 10.58% 11.29%
Total Risk-based Capital Ratio 13.22% 11.83% 12.73%
Allowance for loan and lease
losses to total loans 1.24% 1.21% 1.23%
Non-performing loans to total
loans 0.66% 0.71% 1.12%
Return on average equity 18.01% 15.48% 18.40%
Return on average assets 1.11% 1.18% 1.17%
Tangible book value per share (2) $ 16.20 $ 16.71 $ 15.40
Three Months Ended
3/31/2007 3/31/2006
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Income Statement Data
Interest income $ 26,989 $ 25,396
Interest expense 14,547 11,194
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Net interest income 12,442 14,202
Provision for loan and lease
losses 100 552
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Net Interest income after
provision for loan and lease
losses 12,342 13,650
Non-interest income 3,044 2,779
Non-interest expense 8,565 9,212
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Income before income taxes 6,821 7,217
Income taxes 2,039 2,280
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Net income $ 4,782 $ 4,937
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Efficiency ratio (3) 55.31% 54.25%
Per Share Data
Basic earnings per share $ 0.72 $ 0.66
Diluted earnings per share 0.72 0.66
Weighted average shares
outstanding 6,621,407 7,523,982
(1) Core deposits, which exclude brokered deposits, were $1.029
billion at March 31, 2007, an increase of 7.6% over core deposits of
$956.3 million at March 31, 2006.
(2) Computed by dividing total shareholders' equity less goodwill and
core deposit intangible by the number of common shares outstanding.
(3) 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
sbrightbill@camdennational.com