EX-99.1 2 a4806362ex991.txt CAMDEN NATIONAL CORPORATION EXHIBIT 99.1 Exhibit 99.1 Camden National Corporation Reports 2004 Full Year and Fourth Quarter Earnings CAMDEN, Maine--(BUSINESS WIRE)--Jan. 25, 2005--Camden National Corporation (AMEX: CAC; the "Company") today reported 2004 net income of $19.5 million, an increase of 3.0% over the $18.9 million reported in 2003. Net income per diluted share was $2.53, a 6.3% increase over the $2.38 reported for 2003. For the fourth quarter, net income was $4.8 million, an 11.1% decrease from the $5.4 million reported for the fourth quarter of 2003. The decrease is attributed primarily to a significant loan and lease loss provision credit of $1.2 million, pre-tax, recorded in the fourth quarter of 2003. Diluted earnings per share were $0.63 for the fourth quarter, compared to $0.68 for the prior-year. The Company's total assets at December 31, 2004 were $1.49 billion, an increase of 8.7% over total assets of $1.37 billion at December 31, 2003. Net loans at December 31, 2004 were $1.07 billion, up 10.6% over the $966.9 million in net loans at December 31, 2003. Total deposits of $1.01 billion, at December 31, 2004, were up 12.6% over the same period a year earlier. Robert W. Daigle, President and CEO, commented, "As I have previously stated, our strategy in 2004 was to re-position the Company to take advantage of future growth opportunities. Among other things, this called for added human resource and capital investments, which we projected might temporarily dampen the Company's historical earnings trend. Indeed, earnings growth did subside, albeit less than what we had originally forecasted. What did provide a measure of encouragement in 2004 was the expansion experienced throughout the Company's balance sheet. It speaks well to our corporate investment rationale and to the economic sustainability we believe exists within the Maine markets in which we have chosen to operate." Net interest income, after provision for loan and lease losses, increased 3.9% to $49.7 million during 2004. Continued low interest rates during the first half of the year contributed to a downward trend in the net interest margin, which for 2004 was 3.7% versus 4.0% in 2003. Daigle noted, "While the margin remained under pressure during most of 2004, we were able to mitigate its effect on overall net revenues with positive loan growth and improved asset quality." Non-interest income was $11.4 million for 2004, an increase of 5.3% over the prior year. Leading the improvement in this category was strong growth in revenues from trust, brokerage and insurance, and investment management services, up 11.4%. Non-interest expense for 2004 was $31.9 million, an increase of $1.5 million, or 4.8%, over the prior year. The Company's efficiency ratio (non-interest expense/net interest income and non-interest income) for 2004 was 52.78%, compared to 52.02% in 2003. Daigle noted that the increase reflected the future-growth investments made by the Company in 2004. Highlighting the Company's continued improvement in asset quality, Daigle said, "Our total non-performing assets decreased $581,600 to $6.4 million during 2004 resulting in a non-performing loans to total loans ratio of 0.60% at December, 31, 2004 compared to 0.70% at the same time a year ago. In addition, the Company had net recoveries of $191,200 during 2004. The effects of implementing a corporate risk management function, coupled with increased vigilance by our lending officers, has contributed significantly to the noted improvement in overall asset quality." At December 31, 2004, the Company's allowance for loan and lease losses as a percent of total loans was 1.28% compared to 1.46% at December 31, 2003, a reflection of management's increased comfort with existing loan portfolio quality. At December 31, 2004, the Company's total risk-based capital ratio of 12.68% and tier 1 capital ratio of 11.42% compared favorably to the 10.0% and 6.0% minimums, respectively, required by the Federal Reserve for a bank holding company to be considered "well capitalized." The Company reported that it repurchased 128,602 shares of its common stock during 2004 at an average price of $31.51. The closing stock price of Camden National Corporation was $39.41 at December 31, 2004, an increase of 29.8% above the December 31, 2003 closing price of $30.36. The Company paid dividends totaling $0.80 per share during 2004, an increase of 11.1% over the amount paid in 2003, and recently announced that, in addition to its regular quarterly dividend of $0.20, it would pay a special dividend of $0.50 per share to shareholders of record as of January 14, 2005. Daigle concluded, "While 2004 was challenging, it was a successful year. The economy never really picked up in most of our markets. However, a strong sales effort throughout the year and a diversified revenue mix helped us succeed." Camden National Corporation, headquartered in Camden, Maine and listed on the American Stock Exchange, the Russell 3000(R) Index and the small-cap Russell 2000(R) Index 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 Midcoast, 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 15 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. Camden National Corporation (In thousands, except per share data) December 31, December 31, 2004 2003 ----------------------------------------------- Balance Sheet Data Assets $1,489,865 $1,370,363 Loans 1,069,294 966,855 Allowance for Loan and Lease Losses 13,641 14,135 Investments 323,998 303,749 Deposits 1,014,601 900,996 Borrowings 336,820 338,408 Shareholders' Equity 126,405 119,706 Tier 1 Leverage Capital Ratio 8.06% 8.10% Tier 1 Risk-based Capital Ratio 11.42% 11.50% Total Risk-based Capital Ratio 12.68% 12.80% Allowance for loan and lease losses to total loans 1.28% 1.46% Non-performing loans to total loans 0.60% 0.70% Return on Average Equity 15.97% 15.85% Three Months Ended Year To Date 12/31/2004 12/31/2003 12/31/2004 12/31/2003 ----------------------------------------------- Income Statement Data Interest Income $19,535 $17,659 $73,377 $72,146 Interest Expense 6,711 5,694 24,365 24,487 ----------------------------------------------- Net Interest Income 12,824 11,965 49,012 47,659 Provision for Loan and Lease Losses 0 (1,200) (685) (150) ----------------------------------------------- Net Interest Income after Provision for Loan and Lease Losses 12,824 13,165 49,697 47,809 Non-interest Income 2,769 3,280 11,399 10,829 Non-interest Expense 8,335 8,386 31,882 30,424 ----------------------------------------------- Income before Income Taxes 7,258 8,059 29,214 28,214 Income Taxes 2,491 2,699 9,721 9,286 ----------------------------------------------- Net Income $4,767 $5,360 $19,493 $18,928 =============================================== Efficiency ratio 53.45% 55.01% 52.78% 52.02% Per Share Data Net income per share $0.63 $0.69 $2.54 $2.39 Net income per diluted share $0.63 $0.68 $2.53 $2.38 Weighted average shares outstanding 7,634,975 7,765,473 7,685,006 7,915,743 CONTACT: Camden National Corporation Suzanne Brightbill, 207-230-2120 sbrightbill@camdennational.com