Exhibit 99.1
Camden National Corporation Announces a 2.8% Increase in 2007
Year-to-Date Per Share Earnings
CAMDEN, Maine--(BUSINESS WIRE)--Oct. 30, 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 $2.24, a $0.06, or 2.8%, increase over the
first nine months of 2006, which reflects the favorable impact of the
Company's common stock repurchase activity. The third quarter 2007
earnings per diluted share were $0.77, which was equal to the $0.77
per diluted share for the third quarter of 2006. For the nine months
ended September 30, 2007, returns on average equity and average assets
were 18.08% and 1.13%, respectively, compared to 18.23% and 1.19% for
the nine months ended September 30, 2006.
Year-to-date net income was $14.7 million, a decline of $609,000,
or 4.0%, compared to $15.3 million for the first nine months of 2006.
Net income for the third quarter of 2007 was $5.0 million, a 2.7%
decrease from the $5.1 million reported for the third quarter of 2006.
The decline was primarily due to decreased net interest income, which
was adversely impacted by declining commercial real estate balances
and higher funding costs, partially offset by an increase in
non-interest income.
The Company's total assets at September 30, 2007 were $1.7
billion, flat compared to total assets at September 30, 2006.
Investments increased $60.9 million to $458.4 million at September 30,
2007, while total loans at September 30, 2007 were $1.2 billion, down
$69.8 million compared to total loans at September 30, 2006. The
decline in loan balances reflects a continued conservative posture in
the Company's commercial real estate lending activity due to an
environment of increased competition highlighted by relaxed credit
structures and low long-term fixed rate commitments, which the Company
feels does not provide an adequate reward for the inherent risks. The
Company remains committed to commercial real estate lending and has
observed the market beginning a return to more rational pricing and
structuring practices as a result of the recent credit market turmoil
and retrenchment by various conduits, special investment vehicles and
other lenders. Total deposits of $1.2 billion at September 30, 2007
declined $42.7 million from the same period a year ago primarily
reflecting the maturity and non-replacement of $76.1 million of
brokered certificates of deposit. Core deposits of $1.1 billion (total
deposits excluding brokered certificates of deposit) at September 30,
2007 increased $33.4 million over the same period a year ago.
Net interest income for the third quarter of 2007 decreased 7.5%
to $12.2 million, compared to $13.2 million for the same period of
2006. The run-off in commercial real estate balances, as well as
higher funding costs, lowered the net interest margin, which was 3.06%
for the first nine months of 2007 versus 3.39% for the same period of
2006.
During the third 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 0.50% at September 30, 2007,
compared favorably to 0.68% at September 30, 2006, and an overall
decline in outstanding loan balances quarter-on-quarter. The ALLL was
1.19% of total loans outstanding at September 30, 2007, compared to
1.16% of loans outstanding on the same date in 2006.
Non-interest income of $3.2 million for the quarter ended
September 30, 2007 was up 5.4% 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 third quarter of 2007 was $8.4
million, an increase of $222,000, or 2.7%, over the same quarter in
the prior year largely due to normal salary adjustments, increased
premises and equipment costs, and technology improvement initiatives.
The Company's efficiency ratio (non-interest expense/net interest
income and non-interest income) for the quarter ended September 30,
2007 was 54.77%, compared to 50.60% for the third quarter of 2006.
At September 30, 2007, the Company's total risk-based capital
ratio of 13.49% and tier 1 capital ratio of 12.28% 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 October 31, 2007 for shareholders of record on
October 15, 2007, of $0.24 per share, which is a 9.1% increase over
the dividend paid at the same time last year.
As previously announced, the Company's transaction to acquire
Union Bankshares Company is expected to close in the early part of the
first quarter of 2008, subject to Union Bankshares Company's
shareholder approval and regulatory approval.
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)
` Nine Months Ended Three Months Ended
September 30, September 30,
--------------------- ---------------------
(In thousands, except
number of shares & per
share data) 2007 2006 2007 2006
---------- ---------- ---------- ----------
Interest income
Interest and fees on loans $ 64,162 $ 64,795 $ 21,105 $ 22,441
Interest on securities and
other 16,835 14,721 5,722 4,980
---------- ---------- ---------- ----------
Total interest income 80,997 79,516 26,827 27,421
Interest expense
Interest on deposits 27,849 25,708 9,197 9,405
Interest on borrowings 16,198 12,926 5,454 4,853
---------- ---------- ---------- ----------
Total interest expense 44,047 38,634 14,651 14,258
---------- ---------- ---------- ----------
Net interest income 36,950 40,882 12,176 13,163
Provision for loan and
lease losses 100 1,656 - 552
---------- ---------- ---------- ----------
Net interest income
after provision 36,850 39,226 12,176 12,611
Non-interest income
Service charges on deposit
accounts 2,582 2,570 838 892
Other service charges and
fees 1,380 1,271 502 416
Income from fiduciary
services 3,668 3,290 1,240 1,139
Other income 1,786 1,579 585 556
---------- ---------- ---------- ----------
Total non-interest
income 9,416 8,710 3,165 3,003
Non-interest expenses
Salaries and employee
benefits 13,894 13,663 4,609 4,455
Premises and fixed assets 3,730 3,466 1,235 1,120
Other expenses 7,842 8,527 2,558 2,605
---------- ---------- ---------- ----------
Total non-interest
expenses 25,466 25,656 8,402 8,180
---------- ---------- ---------- ----------
Income before income
taxes 20,800 22,280 6,939 7,434
Income taxes 6,077 6,948 1,941 2,298
---------- ---------- ---------- ----------
Net income $ 14,723 $ 15,332 $ 4,998 $ 5,136
========== ========== ========== ==========
Efficiency Ratio (1) 54.92% 51.73% 54.77% 50.60%
Per Share Data
Basic earnings per share $ 2.24 $ 2.18 $ 0.77 $ 0.77
Diluted earnings per share 2.24 2.18 0.77 0.77
Cash dividends per share $ 0.72 $ 0.66 $ 0.24 $ 0.22
Weighted average number of
shares outstanding 6,571,836 7,021,808 6,513,000 6,613,379
Tangible book value per
share (2) $ 16.83 $ 14.71
(1) Computed by dividing non-interest expense by the sum of net
interest income and non-interest income.
(2) Computed by dividing total shareholders' equity less goodwill and
core deposit intangible by the number of common shares outstanding.
Statement of Condition Data (unaudited)
September 30, December 31,
----------------------- -------------
(In thousands, except number of
shares) 2007 2006 2006
----------- ----------- -------------
Assets
Cash and due from banks $ 35,833 $ 34,069 $ 33,358
Federal funds sold 30,965 2,125 -
Securities available for sale, at
market value 393,193 361,257 409,926
Securities held to maturity 34,277 34,169 34,167
Loans, less allowance for loan
losses of $13,925, $14,472 and
$14,933 at September 30, 2007
and 2006 and December 31, 2006,
respectively 1,160,386 1,229,670 1,203,196
Premises and equipment, net 19,728 16,758 17,595
Other real estate owned 110 - 125
Goodwill 3,991 3,991 3,991
Other assets 69,343 67,149 67,528
----------- ----------- -------------
Total assets $1,747,826 $1,749,188 $ 1,769,886
=========== =========== =============
Liabilities
Deposits:
Demand $ 160,516 $ 157,816 $ 146,458
NOW 131,254 126,429 125,809
Money market 293,700 262,817 261,585
Savings 89,512 95,060 96,661
Certificates of deposit 502,434 577,999 555,288
----------- ----------- -------------
Total deposits 1,177,416 1,220,121 1,185,801
Borrowings from Federal Home Loan
Bank 263,084 307,227 340,499
Other borrowed funds 140,278 67,723 60,782
Junior subordinated debentures 36,083 36,083 36,083
Due to broker 556 - 24,354
Accrued interest and other
liabilities 16,300 15,308 15,315
----------- ----------- -------------
Total liabilities 1,633,717 1,646,462 1,662,834
----------- ----------- -------------
Shareholders' Equity
Common stock, no par value;
authorized 20,000,000 shares,
issued and outstanding
6,513,000, 6,615,480 and
6,616,780 shares on September
30, 2007 and 2006 and December
31, 2006, respectively 2,531 2,450 2,450
Surplus 2,538 2,278 2,584
Retained earnings 111,861 102,434 105,959
Accumulated other comprehensive
loss
Net unrealized losses on
securities available for
sale, net of tax (2,056) (4,266) (2,985)
Net unrealized losses on
derivative instruments
marked to market, net of tax - (170) (198)
Adjustment for unfunded post-
retirement plans, net of tax (765) - (758)
----------- ----------- -------------
Total accumulated other
comprehensive loss (2,821) (4,436) (3,941)
----------- ----------- -------------
Total shareholders' equity 114,109 102,726 107,052
----------- ----------- -------------
Total liabilities and
shareholders' equity $1,747,826 $1,749,188 $ 1,769,886
=========== =========== =============
Average Balance Sheet Data (unaudited)
- ----------------------------------------------------------------------
September 30, December 31,
----------------------- ------------
(In thousands) 2007 2006 2006
----------- ----------- ------------
Assets
Investments $ 462,955 $ 417,766 $ 422,250
Loans 1,197,441 1,226,386 1,225,933
Cash and due from banks 29,246 30,906 31,081
Other assets 72,916 69,249 69,473
Allowance for loan losses (14,552) (14,849) (14,814)
----------- ----------- ------------
Total Assets $1,748,006 $1,729,458 $1,733,923
=========== =========== ============
Liabilities and Shareholders Equity
Demand deposits $ 147,380 $ 141,235 $ 143,431
NOW accounts 104,923 111,831 110,387
Savings accounts 90,191 96,709 96,132
Money market accounts 304,917 260,551 265,691
Certificates of deposit 390,699 370,178 375,800
Brokered certificates of deposit 128,039 230,595 216,394
Junior subordinated debentures 36,083 21,015 24,813
Borrowings 422,203 371,282 377,377
Other liabilities 14,673 13,622 13,694
Shareholders equity 108,898 112,440 110,204
----------- ----------- ------------
Total Liabilities and
Shareholders Equity $1,748,006 $1,729,458 $1,733,923
=========== =========== ============
Earning Asset and Funding Yields Data (unaudited)
- ----------------------------------------------------------------------
Nine Months Ended Year Ended
September 30, December 31,
----------------------- ------------
2007 2006 2006
----------- ----------- ------------
Earning Assets
Investments 5.09% 4.89% 4.89%
Loans 7.21% 7.10% 7.16%
----------- ----------- ------------
Total Earning Assets 6.62% 6.54% 6.58%
----------- ----------- ------------
Funding Sources
Demand deposits 0.00% 0.00% 0.00%
NOW accounts 0.38% 0.30% 0.29%
Savings accounts 0.36% 0.34% 0.34%
Money market accounts 4.54% 4.03% 4.15%
Certificates of deposit 4.48% 3.89% 4.01%
Brokered certificates of deposit 4.17% 3.83% 3.83%
Junior subordinated debentures 6.60% 6.60% 6.60%
Borrowings 4.57% 4.28% 4.34%
----------- ----------- ------------
Total Funding Sources 3.64% 3.22% 3.62%
----------- ----------- ------------
Net Interest Rate Spread (fully-
taxable equivalent) 2.98% 3.32% 2.96%
=========== =========== ============
Net Interest Margin (fully-taxable
equivalent) 3.06% 3.39% 3.36%
=========== =========== ============
Asset Quality Data (unaudited)
- ----------------------------------------------------------------------
September 30, December 31,
----------------- ------------
(In thousands) 2007 2006 2006
-------- -------- ------------
Non-performing loans 5,867 8,486 13,679
Other real estate owned 110 - 125
Net charge-offs 1,108 1,350 1,442
Allowance for loan and lease losses 13,925 14,472 14,933
Allowance for loan and lease losses to
total loans 1.19% 1.16% 1.23%
Non-performing loans to total loans 0.50% 0.68% 1.12%
Other Data (unaudited)
- ----------------------------------------------------------------------
Nine Months Ended Year Ended
September 30, December 31,
----------------- ------------
2007 2006 2006
-------- -------- ------------
Tier 1 Leverage Capital Ratio 8.06% 7.36% 7.63%
Tier 1 Risk-based Capital Ratio 12.28% 10.74% 11.29%
Total Risk-based Capital Ratio 13.49% 12.23% 12.73%
Return on average equity 18.08% 18.23% 18.40%
Return on average assets 1.13% 1.19% 1.17%
CONTACT: Camden National Corporation
Suzanne Brightbill, 207-230-2120
Public Relations Officer
sbrightbill@camdennational.com