EX-99 3 a4501244ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Camden National Corporation Announces 11.11% Increase in Year-to-Date Earnings Per Share CAMDEN, Maine--(BUSINESS WIRE)--Oct. 28, 2003--Robert W. Daigle, President and Chief Executive Officer of Camden National Corporation (the "Company") (AMEX: CAC), announced earnings of $1.70 per diluted share for the first nine months of 2003, compared to $1.53 reported for the first nine months of 2002, an increase of 11.11%. Net income was $13.6 million for the first nine months of 2003, compared to $12.4 million for the first nine months of 2002, an increase of 9.50%. Earnings per diluted share and net income for the first nine months of 2002, prior to the 2002 adjustment for the effect of the adoption of SFAS No. 142 "Goodwill and Other Intangible Assets" were $1.59 and $12.8 million, respectively. Earnings per diluted share were $0.60 for the third quarter of 2003, an increase of 5.26% over earnings reported for the third quarter of 2002, and 7.14% higher than earnings reported for the second quarter of 2003. Net income for the third quarter of 2003 was $4.8 million, compared to $4.6 million for the third quarter of 2002 and $4.5 million for the second quarter of 2003. The Company also reported total loans of $953.5 million on September 30, 2003, an increase of 26.00% over loan balances on September 30, 2002. Total deposits of $902.7 million on September 30, 2003 represented an increase of 5.14% over balances on September 30, 2002, and included a 12.33% growth in demand deposit balances. Asset quality also improved during the quarter, as evidenced by a 46.96% improvement in non-performing assets, which were $4.5 million on September 30, 2003 compared to $8.6 million on September 30, 2002. The Company also reported net recoveries of $189,400 during the third quarter of 2003. Noting that non-performing assets as a percentage of total loans improved to 0.48% on September 30, 2003 from 1.13% on September 30, 2002, Daigle said, "I'm pleased to acknowledge the superb efforts of the Corporate Risk Management Group and the senior management team at UnitedKingfield Bank in addressing asset quality issues in that franchise. "Earnings are strong and growing, but not at the expense of stretching our credit and pricing guidelines which is tempting when the net interest margin is being squeezed in this low interest rate environment," continued Daigle. "We will implement strategies that are focused on long-term, sustainable growth, which we believe will build a solid business foundation without taking undue risks with our shareholders' capital." Daigle cited the proactive management of asset quality, the sale of the Company's credit card portfolio, and the continued strong performance of the Company's southern Maine expansion as examples of Camden National's commitment to shareholder value. "Camden National Corporation and its subsidiaries are committed to delivering excellent shareholder value through superior customer service," concluded Daigle. "Over 80% of our employees have graduated from The Customer(R), an intensive, nationally recognized customer service development program, which reflects not only the Company's financial commitment to customer service, but also the personal commitment of each Camden National Corporation employee." The Company reported that it repurchased 181,600 shares of its common stock at an average cost of $28.78 per share during the quarter. The closing price of Camden National's stock was $29.51 on September 30, 2003, which represented an increase of 21.94% since the closing price on December 31, 2002. Camden National Corporation, headquartered in Camden, Maine, and listed on the American Stock Exchange under the symbol CAC, is the holding company for a family of three financial services companies, including: Camden National Bank (CNB), a full-service community bank with 12 banking offices serving Mid- coast, Kennebunk and Portland, Maine, and online at www.camdennational.com, and recipient of the Governor's Award for Business Excellence in 2002; UnitedKingfield Bank (UKB), a full-service community bank with 16 offices serving Central, Eastern and Western Maine and online at www.unitedkingfield.com; and Acadia Trust, N.A., offering investment management and fiduciary services with offices in Portland and Bangor, Maine and online at www.acadiatrust.com. In addition, Acadia Financial Consultants operates as a division of CNB and UKB, to offer 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 30, September 30, December 31, 2003 2002 2002 Balance Sheet Data Assets $1,285,474 $1,208,652 $1,218,419 Loans 953,492 756,711 808,882 Allowance for Loan Losses 14,491 14,771 15,242 Investments 233,051 325,396 314,775 Deposits 902,692 858,579 850,134 Borrowings 254,057 224,560 238,861 Shareholders' Equity 116,815 114,817 118,828 Tier 1 Leverage Capital Ratio 8.03% 8.53% 8.73% Tier 1 Risk-Based Capital Ratio 11.43% 12.28% 12.60% Total Risk-Based Capital Ratio 12.69% 13.54% 13.81% Allowance for Loan Losses to Total Loans 1.52% 1.95% 1.88% Non-performing Assets to Total Loans 0.48% 1.13% 1.09% Return on Average Equity 15.11% 15.18% 15.38% Three Months Ended Year To Date 9/30/2003 9/30/2002 9/30/2003 9/30/2002 Income Statement Data Interest Income $17,447 $18,382 $53,540 $55,032 Interest Expense 5,757 6,772 17,846 19,985 Net Interest Income 11,690 11,610 35,694 35,047 Provision for Loan Losses 185 570 1,050 2,520 Net Interest Income after Provision for Loan Losses 11,505 11,040 34,644 32,527 Non-interest Income 2,531 3,783 7,549 10,454 Non-interest Expense 6,938 8,016 22,038 23,899 Income before Income Taxes and Cumulative Effect of Accounting Change 7,098 6,807 20,155 19,082 Income Taxes 2,350 2,235 6,587 6,242 Income before Cumulative Effect of Accounting Change 4,748 4,572 13,568 12,840 Cumulative Effect of Change in Accounting for Goodwill, net of Tax Benefit of $241 - - - (449) Net Income $4,748 $4,572 $13,568 $12,391 Efficiency ratio 48.79% 52.08% 50.96% 52.52% Net income per share before Cumulative Effect of Accounting Change $0.60 $0.57 $1.70 $1.60 Cumulative Effect of Change in Accounting for Goodwill, net - - - (0.06) Net income per share $0.60 $0.57 $1.70 $1.54 Net income per diluted share before Cumulative Effect of Accounting Change $0.60 $0.57 $1.70 $1.59 Cumulative Effect of Change in Accounting for Goodwill, net - - - (0.06) Net income per diluted share $0.60 $0.57 $1.70 $1.53 Weighted average shares outstanding 7,894,807 8,054,363 7,966,384 8,056,978 CONTACT: Camden National Corporation Investor Relations: Gregory A. Dufour, 207-230-2106 Senior Vice President, Finance, Operations and Technology or Public Relations: Suzanne M. Brightbill, 207-230-2120 Public Relations Officer