Exhibit 99.1
Camden National Corporation Announces a 4.3% Increase in First Half
2007 Earnings Per Share Results
CAMDEN, Maine--(BUSINESS WIRE)--July 31, 2007--Robert W. Daigle, president
and Chief Executive Officer of Camden National Corporation (AMEX: CAC; the
"Company"), today announced year-to-date earnings per diluted share for 2007 of
$1.47, a $0.06, or 4.3%, increase over the first six months of 2006, which
reflects the favorable impact of the Company's tender offer stock repurchase
completed in the second quarter of 2006, as well as recent common stock
repurchases. The second quarter 2007 earnings per diluted share was $0.75, which
was equal to the $0.75 per diluted share for the second quarter of 2006. For the
six months ended June 30, 2007, the returns on average equity and average assets
were 17.97% and 1.12%, compared to 17.19% and 1.20%, respectively, for the six
months ended June 30, 2006.
Net income for the first half of 2007 was $9.7 million compared to $10.2
million for the first half of 2006, a decline of $471,000, or 4.6%. Net income
for the second quarter of 2007 was $4.9 million, a 6.0% decrease from $5.3
million reported for the second quarter of 2006. The decline was primarily due
to decreased net interest income, which was adversely impacted by higher funding
costs and the full period impact of trust preferred interest expense, partially
offset by an increase in non-interest income.
Daigle commented, "The results for the first six months of 2007 are modest
by past performance comparison, but represent the fulfillment of strategic
objectives that recognize the difficult economic and competitive environment in
which we currently find ourselves."
The Company's total assets at June 30, 2007 were $1.8 billion, an increase
of $5.4 million over total assets at June 30, 2006. Investments increased $53.3
million to $458.9 million at June 30, 2007, while total loans at June 30, 2007
were $1.2 billion, down $54.5 million compared to total loans at June 30, 2006.
The decline in loan balances largely reflects a pullback in construction and
commercial real estate lending activity due to the current environment of
increased competition and slowing growth resulting in irrational competitive
pricing and structuring of these transactions. Total deposits of $1.1 billion at
June 30, 2007 declined $104.0 million from the same period a year ago reflecting
the maturity and non-replacement of $133.2 million of brokered certificates of
deposit. Core deposits of $1.0 billion (total deposits excluding brokered
certificates of deposit) at June 30, 2007 increased $29.2 million over the same
period a year ago.
Net interest income for the second quarter of 2007 decreased 8.8% to $12.3
million, compared to $13.5 million for same period of 2006. The combination of
the flat yield curve and increased money market, certificate of deposit and
borrowing interest costs, including a full fiscal quarter of trust preferred
interest expense, continued to compress the net interest margin, which was 3.06%
for the first six months of 2007 versus 3.48% for the same period of 2006.
During the second quarter of 2007, the Company made no provision to the
allowance for loan and lease losses ("ALLL") compared to $552,000 provided 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 0.56% at June 30, 2007, compared favorably to 0.74% at June 30, 2006, and an
overall decline in outstanding loan balances quarter-on-quarter. The ALLL was
1.17% of total loans outstanding at June 30, 2007, compared to 1.23% of loans
outstanding on the same date in 2006.
Non-interest income of $3.2 million for the quarter ended June 30, 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., brokerage and
insurance commission income at Acadia Financial Consultants, and growth in debit
card activity.
Non-interest expense for the second quarter of 2007 was $8.5 million, an
increase of $235,000, or 2.8%, over the same quarter in the prior year due to
normal salary increases and increased premises and equipment costs related to
the renovation of the Rockland Spear Block, which now houses the Rockland
branch, and technology initiatives. The Company's efficiency ratio (non-interest
expense/net interest income and non-interest income) for the quarter ended June
30, 2007 was 54.69%, compared to 50.25% for the second quarter of 2006.
At June 30, 2007, the Company's total risk-based capital ratio of 13.00%
and tier 1 capital ratio of 11.80% 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, payable on July 31, 2007 for shareholders of record on July 16, 2007,
of $0.24 per share, which is a 9.1% increase over the dividend paid at the same
time last year.
"While our Company continues to be challenged by the external forces
affecting growth and profitability, we are posting financial results that
support our recognition as one of the nation's top-performing mid-tier banks,
according to US Banker magazine's annual ranking. This is attributable to a
workforce that is committed to innovation while delivering a service experience
that is second to none," 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 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.
Income Statement Data (unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
- ----------------------------------------------------------------------
(In thousands, except
number of shares &
per share data) 2007 2006 2007 2006
- ----------------------------------------------------------------------
Interest Income
Interest and fees on
loans $ 43,057 $ 42,354 $ 21,558 $ 21,671
Interest on securities 10,295 9,176 5,132 4,754
Other interest income 818 565 491 274
----------- ----------- ----------- -----------
Total interest
income 54,170 52,095 27,181 26,699
Interest Expense
Interest on deposits 18,652 16,303 9,182 8,811
Interest on other
borrowings 9,563 7,636 5,073 3,934
Interest on junior
subordinated
debentures 1,181 437 594 437
----------- ----------- ----------- -----------
Total interest
expense 29,396 24,376 14,849 13,182
----------- ----------- ----------- -----------
Net interest
income 24,774 27,719 12,332 13,517
Provision for Loan and
Lease Losses 100 1,104 - 552
----------- ----------- ----------- -----------
Net interest
income after
provision for
loan and lease
losses 24,674 26,615 12,332 12,965
Non-interest Income
Service charges on
deposit accounts 1,744 1,678 899 883
Other service charges
and fees 878 855 451 381
Income from fiduciary
services 2,428 2,151 1,229 1,074
Life insurance
earnings 385 400 197 200
Other income 816 623 431 390
----------- ----------- ----------- -----------
Total non-
interest income 6,251 5,707 3,207 2,928
Non-interest Expenses
Salaries and employee
benefits 9,285 9,208 4,639 4,472
Premises and fixed
assets 2,495 2,346 1,263 1,158
Amortization of core
deposit intangible 428 437 214 216
Other expenses 4,856 5,485 2,383 2,418
----------- ----------- ----------- -----------
Total non-
interest
expenses 17,064 17,476 8,499 8,264
----------- ----------- ----------- -----------
Income before
income taxes 13,861 14,846 7,040 7,629
Income Taxes 4,136 4,650 2,097 2,370
----------- ----------- ----------- -----------
Net Income $ 9,725 $ 10,196 $ 4,943 $ 5,259
=========== =========== =========== ===========
Efficiency Ratio (1) 55.00% 52.28% 54.69% 50.25%
Per Share Data
Basic earnings per
share $ 1.47 $ 1.41 $ 0.75 $ 0.75
Diluted earnings per
share 1.47 1.41 0.75 0.75
Cash dividends per
share $ 0.48 $ 0.44 $ 0.24 $ 0.22
Weighted average
number of shares
outstanding 6,601,741 7,229,407 6,582,291 6,938,024
(1) Computed by dividing non-interest expense by the sum of net
interest income and non-interest income.
Statement of Condition Data (unaudited)
June 30, December 31,
------------------------
(In thousands, except number of
shares & per share data) 2007 2006 2006
- ----------------------------------------------------------------------
Assets
Cash and due from banks $ 31,629 $ 33,838 $ 33,358
Federal funds sold 300 - -
Securities available for sale,
at market value 424,858 371,486 409,926
Securities held to maturity 33,723 34,124 34,167
Loans, less allowance for loan
losses of $13,927, $15,256 and
$14,933 at June 30, 2007 and
2006 and December 31, 2006,
respectively 1,176,175 1,229,358 1,203,196
Premises and equipment, net 19,774 16,062 17,595
Other real estate owned - - 125
Goodwill 3,991 3,991 3,991
Other assets 70,653 66,815 67,528
------------ ------------ -------------
Total assets $ 1,761,103 $ 1,755,674 $ 1,769,886
============ ============ =============
Liabilities
Deposits:
Demand $ 150,485 $ 142,943 $ 146,458
NOW 130,695 116,797 125,809
Money market 278,098 272,512 261,585
Savings 87,573 96,254 96,661
Certificates of deposit 486,127 608,482 555,288
------------ ------------ -------------
Total deposits 1,132,978 1,236,988 1,185,801
Borrowings from Federal Home
Loan Bank 376,687 312,088 340,499
Other borrowed funds 92,534 60,595 60,782
Junior subordinated debentures 36,083 36,083 36,083
Due to broker - - 24,354
Accrued interest and other
liabilities 15,312 13,709 15,315
------------ ------------ -------------
Total liabilities 1,653,594 1,659,463 1,662,834
------------ ------------ -------------
Shareholders' Equity
Common stock, no par value;
authorized 20,000,000 shares,
issued and outstanding
6,512,980, 6,608,505 and
6,616,780 shares on June 30,
2007 and 2006 and December 31,
2006, respectively 2,530 2,450 2,450
Surplus 2,481 2,392 2,584
Retained earnings 108,430 98,544 105,959
Accumulated other comprehensive
loss
Net unrealized losses on
securities available for
sale, net of tax (4,936) (6,958) (2,985)
Net unrealized losses on
derivative instruments
marked to market, net of
tax (218) (217) (198)
Adjustment for unfunded
post-retirement plans, net
of tax (778) - (758)
------------ ------------ -------------
Total accumulated other
comprehensive loss (5,932) (7,175) (3,941)
------------ ------------ -------------
Total shareholders' equity 107,509 96,211 107,052
------------ ------------ -------------
Total liabilities and
shareholders' equity $ 1,761,103 $ 1,755,674 $ 1,769,886
============ ============ =============
Other Data (unaudited)
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Tier 1 Leverage Capital Ratio 7.83% 7.10% 7.63%
Tier 1 Risk-based Capital Ratio 11.80% 9.92% 11.29%
Total Risk-based Capital Ratio 13.00% 11.53% 12.73%
Allowance for loan and lease
losses to total loans 1.17% 1.23% 1.23%
Non-performing loans to total
loans 0.56% 0.74% 1.12%
Return on average equity 17.97% 17.19% 18.40%
Return on average assets 1.12% 1.20% 1.17%
Tangible book value per share
(1) $ 15.78 $ 13.71 $ 15.40
(1) Computed by dividing total shareholders' equity less goodwill and
core deposit intangible by the number of common shares outstanding.
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
Public Relations Officer
sbrightbill@camdennational.com