-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uv84RDbqTDtvkF3gnWtMLeOG7QnRy6N+jj7fJP+owWgYXuoLPj2D4Pp+kcUUrhVW i4/ZTbA8/B7rnl/2r9qZ9Q== 0001157523-07-010413.txt : 20071030 0001157523-07-010413.hdr.sgml : 20071030 20071030162413 ACCESSION NUMBER: 0001157523-07-010413 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071030 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071030 DATE AS OF CHANGE: 20071030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMDEN NATIONAL CORP CENTRAL INDEX KEY: 0000750686 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 010413282 STATE OF INCORPORATION: ME FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13227 FILM NUMBER: 071199861 BUSINESS ADDRESS: STREET 1: TWO ELM ST CITY: CAMDEN STATE: ME ZIP: 04843 BUSINESS PHONE: 2072368821 MAIL ADDRESS: STREET 1: 2 ELM ST CITY: CAMDEN STATE: ME ZIP: 04843 8-K 1 a5531829.txt CAMDEN NATIONAL CORPORATION 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 30, 2007 CAMDEN NATIONAL CORPORATION (Exact name of Registrant as specified in charter) MAINE 01-28190 01-0413282 (State or other jurisdiction (Commission (IRS employer of incorporation) File Number) Identification No.) Two Elm Street, Camden, Maine 04843 (Address of principal executive offices) (Zip Code) (207) 236-8821 (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 - Results of Operations and Financial Condition Camden National Corporation issued a press release on October 30, 2007 announcing earnings for the nine months ended and fiscal quarter ended September 30, 2007. Item 9.01 - Financial Statements and Exhibits (c) Exhibits. 99.1 Year-to-date and third quarter 2007 earnings press release SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be filed on its behalf by the undersigned thereunto duly authorized. CAMDEN NATIONAL CORPORATION By: /s/ Sean G. Daly Date: October 30, 2007 --------------------------------------- Sean G. Daly Chief Financial Officer and Principal Financial & Accounting Officer EX-99.1 2 a5531829ex99_1.txt EXHIBIT 99.1 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 -----END PRIVACY-ENHANCED MESSAGE-----