EX-99.1 2 a6374829ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Camden National Corporation Reports 12% Increase in Earnings for the Second Quarter of 2010

CAMDEN, Maine--(BUSINESS WIRE)--July 27, 2010--Camden National Corporation (NASDAQ: CAC; the “Company”) reported net income for the second quarter of 2010 of $5.6 million, or $0.73 per diluted share, compared to $5.0 million, or $0.65 per diluted share, for the second quarter of 2009 and $5.3 million, or $0.69 per diluted share, for the first quarter of 2010. For the three and six month periods ended June 30, 2010, return on assets was 0.98% for each period, and return on equity was 11.36% and 11.25%, respectively.

“We are pleased by our second quarter financial performance, especially in light of current economic conditions,” said Gregory A. Dufour, President and Chief Executive Officer of the Company. “We have remained focused on strengthening our balance sheet to position the Company for future growth and the potential impact of financial reform. Since June 30, 2009, we have improved our tangible capital to 6.83% of total assets from 5.78%, increased our allowance for credit losses to 1.45% of total loans from 1.23%, and improved our total risk based capital ratio to 13.99% from 12.78%,” Dufour said. “Throughout this difficult economy, we have continued to lend money to businesses and individuals and pay dividends to shareholders without the use of federal bailout monies.”

“Despite projections for an increase in bankruptcies and the potential for future declines in real estate values in Maine, we continue to demonstrate our commitment to support our borrowing customers by providing access to funds,” noted Dufour. “Our loans of $1.5 billion at June 30, 2010 were up $15.3 million from December 31, 2009 and up $26.9 million from June 30, 2009, growth achieved while still maintaining our credit standards.”

Asset Quality

The provision for credit losses was $2.0 million for the three months ended June 30, 2010, a decrease of $834,000 from the second quarter of 2009 and a decrease of $46,000 from the first quarter of 2010. “Non-performing assets, while higher than 2009 levels, showed some initial signs of stabilization during the second quarter of 2010,” said Dufour. “In addition, total past due loans for the most recent quarter were at the lowest level experienced in the past year. We are maintaining a cautious view for the next several quarters until unemployment and the housing market show signs of sustained improvement. In the meantime, we will continue to take the necessary steps to strengthen our balance sheet in light of the economic situation.”

Non-performing assets totaled $25.9 million, or 1.13% of total assets, at June 30, 2010 compared to $22.3 million at June 30, 2009 and $24.1 million at March 31, 2010. Loans past due for 30 to 89 days at June 30, 2010 totaled $4.0 million, or 0.26% of total loans, compared to $4.8 million, or 0.32% of total loans, at June 30, 2009 and $6.2 million, or 0.40% of total loans, at March 31, 2010. The Company’s allowance for credit losses was 1.45% of total loans at June 30, 2010, an increase from 1.23% of total loans at June 30, 2009 and 1.40% of total loans at March 31, 2010.

Balance Sheet

The Company’s total assets at June 30, 2010 were $2.3 billion, a decrease of 1% compared to June 30, 2009 and an increase of 3% from December 31, 2009. The $11.5 million decline in total assets at June 30, 2010 compared to June 30, 2009 reflects reductions in cash and due from banks of $14.4 million and investments of $23.8 million, partially offset by loan growth of $26.9 million. Comparing June 30, 2010 to June 30, 2009, loan balances reflected growth in commercial real estate, consumer loans, and residential real estate of $30.9 million, $15.4 million, and $9.8 million, respectively. These increases were partially offset by a decrease in commercial loans of $11.7 million and residential loans held for sale of $17.4 million. The increase in total assets from December 31, 2009 was due to increases in both the investment and loan portfolios of $53.9 million and $15.3 million, respectively.

Total deposits of $1.5 billion at June 30, 2010 represents an increase of $71.9 million from June 30, 2009 and an increase of $52.9 million compared to December 31, 2009. The deposit growth from June 30, 2009 reflects increases in core deposits, with interest checking, savings and money market deposits increasing by $50.5 million and demand deposit balances increasing by $22.9 million. Brokered funds also increased $59.5 million from June 30, 2009 to June 30, 2010 as a result of more favorable pricing compared to other funding alternatives. This growth was partially offset by a decline in retail certificates of deposit of $61.0 million. The increase in core deposits can be attributed to various deposit initiatives; however, a major contributing factor is the enhancement of municipal relationships.

Operating Highlights

Net interest income for the second quarter of 2010 increased to $18.6 million compared to $18.3 million for the second quarter of 2009 and $18.1 million for the first quarter of 2010. The net interest margin of 3.61% for the second quarter of 2010 represents an increase from 3.52% for the same period in 2009 and 3.58% for the first quarter of 2010. The net interest margin increase was due to a reduction in pricing on deposits and borrowings, which helped to mitigate the decline of yields on loans and investments.

Non-interest income for the second quarter of 2010 was $4.4 million compared to $5.0 million for the second quarter of 2009 and $4.6 million for the first quarter of 2010. The decrease of $619,000, or 12%, for the second quarter of 2010 compared to the same period in 2009 was primarily due to a $333,000 reduction in mortgage banking income, a $249,000 decrease in the investment market value in the Company’s deferred executive and director compensation plan due to market depreciation, and a $131,000 other-than-temporary impairment write-down on private issue collateralized mortgage obligations. These decreases were partially offset by increases in debit card interchange income of $86,000 and brokerage fee income of $71,000.

Non-interest income of $9.0 million for the six months ended June 30, 2010 represents a decrease of $601,000, or 6%, compared to the same period in 2009. This decrease was primarily due to a $699,000 reduction in mortgage banking income related to the sale of $44.0 million in residential mortgage loans during the first half of 2009 and a $179,000 other-than-temporary impairment write-down on private issue collateralized mortgage obligations in 2010. These reductions were partially offset by increases in fiduciary services income of $218,000, or 8%, and other fees of $138,000, or 10%, resulting from increased stock market values and interchange activity, respectively.

Non-interest expense for each the second quarter of 2010 and the first quarter of 2010 was $12.9 million, compared to $13.4 million for the second quarter of 2009. The decrease of $559,000, or 4%, for the second quarter of 2010 compared to the same period in 2009 resulted from the Federal Deposit Insurance Corporation’s special assessment of $1.1 million in May 2009 which was offset by an increase in other real estate owned (“OREO”) and collection costs of $876,000. OREO and collection expenses included a $584,000 write-off related to one foreclosed property which was under contract at quarter end, effectively capping the Company’s loss on that particular loan relationship.

Non-interest expense of $25.8 million for the six months ended June 30, 2010 represents an increase of $72,000 compared to the same period in 2009. Regulatory assessment costs decreased $1.3 million and OREO and collection costs increased $970,000, while all other operating expenses increased $396,000, or less than 2%.

Dividends and Capital

The Board of Directors approved a dividend of $0.25 per share, payable on July 30, 2010 to shareholders of record on July 16, 2010. This resulted in a dividend yield of 3.64% based on the June 30, 2010 closing price of the Company’s common stock of $27.47 per share as reported by NASDAQ.

The Company’s total risk-based capital ratio increased to 13.99% at June 30, 2010 compared to 12.78% at June 30, 2009 and 13.49% at December 31, 2009 as capital levels increased from retained earnings and the deleveraging of the Company’s balance sheet. The Company and Camden National Bank exceeded the minimum total risk-based, tier 1, and tier 1 leverage ratios of 10.0%, 6.0%, and 5.0%, respectively, required by the Federal Reserve for an institution to be considered “well capitalized.”

About Camden National Corporation

Camden National Corporation, ranked 11th in USBanker's 2009 list of top-performing mid-tier banks, is the holding company employing more than 400 Maine residents for two financial services companies: Camden National Bank, along with its division Union Trust, and the wealth management company, Acadia Trust, N.A. Camden National Bank, named in 2009 as the Finance Authority of Maine’s “Financial Institution of the Year,” is a full-service community bank with a network of 37 banking offices serving coastal, western, central, and eastern Maine, plus online banking at CamdenNational.com and UnionTrust.com. Acadia Trust offers investment management and fiduciary services with offices in Portland, Bangor, and Ellsworth. Located at Camden National Bank, Acadia Financial Consultants offers full-service brokerage and insurance services.

Forward-Looking Statements

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: general, national, regional or local economic conditions which are less favorable than anticipated; changes in loan default and charge-off rates; declines in the equity and financial markets; reductions in deposit levels; declines in mortgage loan refinancing, equity loan and line of credit activity; changes in the domestic interest rate environment and inflation; changes in the carrying value of investment securities and other assets; further actions by the U.S. government and Treasury Department, including actions similar to the Federal Home Loan Mortgage Corporation conservatorship, which could have a negative impact on the Company’s investment portfolio and earnings; misalignment of the Company’s interest-bearing assets and liabilities; increases in loan repayment rates affecting interest income and the value of mortgage servicing rights; changing business, banking, or regulatory conditions or policies, or new legislation affecting the financial services industry, that could lead to changes in the competitive balance among financial institutions, restrictions on bank activities, changes in costs (including deposit insurance premiums), increased regulatory scrutiny, declines in consumer confidence in depository institutions, or changes in the secondary market for bank loan and other products; and changes in accounting rules, Federal and State laws, Internal Revenue Service regulations, and other regulations and policies governing financial holding companies and their subsidiaries which may impact our ability to take appropriate action to protect our financial interests in certain loan situations. Other factors could also cause these differences. For more information about these factors please see our Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings 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.

 
Statement of Condition Data (unaudited)
     
    June 30,   June 30,   December 31,
(In thousands, except number of shares)     2010       2009       2009  
 
Assets
Cash and due from banks $ 24,236 $ 38,657 $ 29,772
Securities:
Securities available for sale, at fair value 533,736 554,335 479,708
Securities held to maturity, at amortized cost 37,786 40,951 37,914
Federal Home Loan Bank and Federal Reserve Bank stock, at cost   21,965     21,965     21,965  
Total securities 593,487 617,251 539,587
Trading account assets 2,013 1,495 1,725
Loans held for sale - 17,364 -
Loans:
Residential real estate 623,833 614,072 627,655
Commercial real estate 441,512 410,625 434,783
Commercial 196,394 208,115 191,214
Consumer   280,335     264,959     273,106  
Total loans 1,542,074 1,497,771 1,526,758
Less allowance for loan losses   (22,266 )   (18,654 )   (20,246 )
Net loans 1,519,808 1,479,117 1,506,512
Goodwill and other intangible assets 46,110 46,687 46,398
Bank-owned life insurance 42,395 41,199 41,677
Premises and equipment, net 26,230 25,174 26,054
Deferred tax asset 10,370 14,213 10,317
Prepaid FDIC assessment 7,187 - 8,197
Interest receivable 7,558 7,910 7,236
Other real estate owned 3,967 5,856 5,479
Other assets   11,473     11,427     12,429  
Total assets $ 2,294,834   $ 2,306,350   $ 2,235,383  
 
Liabilities
Deposits:
Demand $ 202,448 $ 179,522 $ 193,549
Interest checking, savings and money market 693,644 643,179 675,681
Retail certificates of deposit 522,894 583,942 545,789
Brokered deposits   129,690     70,155     80,788  
Total deposits 1,548,676 1,476,798 1,495,807
Federal Home Loan Bank advances 174,503 217,750 209,710
Other borrowed funds 306,186 357,026 274,125
Junior subordinated debentures 43,563 43,461 43,512
Accrued interest and other liabilities   22,191     34,086     21,668  
Total liabilities   2,095,119     2,129,121     2,044,822  
 
Shareholders' Equity

Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 7,657,098, 7,644,829, and 7,644,837 shares on June 30, 2010 and 2009 and December 31, 2009, respectively

50,376 49,233 50,062
Retained earnings 140,656 125,900 133,634
Accumulated other comprehensive income
Net unrealized gains on securities available for sale, net of tax 11,066 2,742 7,083
Net unrealized (losses) gains on derivative instruments, at fair value, net of tax (1,442 ) 382 739
Net unrecognized losses on post-retirement plans, net of tax   (941 )   (1,028 )   (957 )
Total accumulated other comprehensive income   8,683     2,096     6,865  
Total shareholders' equity   199,715     177,229     190,561  
Total liabilities and shareholders' equity $ 2,294,834   $ 2,306,350   $ 2,235,383  
 
Statement of Income Data (unaudited)      
   
 
    Three Months Ended June 30, Six Months Ended June 30,
(In thousands, except number of shares and per share data)     2010       2009     2010       2009  
 
Interest income
Interest and fees on loans $ 20,593 $ 21,270 $ 41,040 $ 42,891
Interest on securities and other   5,731     7,424     11,458     15,345  
Total interest income 26,324 28,694 52,498 58,236
Interest expense
Interest on deposits 3,957 5,937 8,078 12,330
Interest on borrowings   3,812     4,413     7,800     9,061  
Total interest expense   7,769     10,350     15,878     21,391  
Net interest income 18,555 18,344 36,620 36,845
Provision for credit losses   1,950     2,784     3,946     4,514  
Net interest income after provision for credit losses 16,605 15,560 32,674 32,331
Non-interest income
Service charges on deposit accounts 1,285 1,349 2,565 2,582
Other service charges and fees 872 811 1,562 1,424
Income from fiduciary services 1,512 1,507 3,079 2,861
Mortgage banking income 83 416 172 871
Bank-owned life insurance 347 345 718 740
Other income   457     616     1,080     1,120  

Non-interest income before other-than-temporary impairment of securities

4,556 5,044 9,176 9,598
Other-than-temporary impairment of securities   (131 )   -     (179 )   -  
Total non-interest income 4,425 5,044 8,997 9,598
Non-interest expenses
Salaries and employee benefits 6,298 6,446 12,523 12,124
Net occupancy 897 962 1,931 2,080
Furniture, equipment and data processing 1,115 1,030 2,246 2,033
Consulting and professional fees 549 627 1,337 1,184
OREO and collection costs 1,158 282 2,132 1,162
Regulatory assessments 602 1,739 1,317 2,611
Donations and marketing 274 327 532 579
Communication costs 389 402 795 814
Other expenses   1,575     1,601     2,966     3,120  
Total non-interest expenses   12,857     13,416     25,779     25,707  
Income before income taxes 8,173 7,188 15,892 16,222
Income taxes   2,587     2,184     4,993     5,004  
Net income $ 5,586   $ 5,004   $ 10,899   $ 11,218  
 
 
Selected Financial and Per Share Data:
Return on average equity 11.36 % 11.54 % 11.25 % 13.24 %
Return on average tangible equity 14.83 % 15.79 % 14.74 % 18.24 %
Return on average assets 0.98 % 0.88 % 0.98 % 0.99 %
Efficiency ratio (1) 54.76 % 56.29 % 55.41 % 54.32 %
Basic earnings per share $ 0.73 $ 0.66

 

$

1.42 $ 1.47
Diluted earnings per share $ 0.73 $ 0.65

 

$

1.42 $ 1.47
Cash dividends declared per share $ 0.25 $ 0.25

 

$

0.50 $ 0.50
Weighted average number of common shares outstanding 7,656,051 7,641,083 7,654,079 7,640,119
Diluted weighted average number of common shares outstanding 7,664,443 7,648,023 7,661,607 7,644,424
 
(1) Computed by dividing non-interest expense by the sum of net interest income (tax equivalent) and non-interest income (excluding securities gains/losses).
 
Asset Quality Data (unaudited)
         
 
   

At or for Six
Months Ended

 

At or for Three
Months Ended

 

At or for Twelve
Months Ended

 

At or for Nine
Months Ended

 

At or for Six
Months Ended

(In thousands)   June 30, 2010   March 31, 2010   December 31, 2009   September 30, 2009   June 30, 2009
 
Non-accrual loans:
Residential real estate $ 6,580 $ 6,234 $ 6,161 $ 5,779 $ 5,454
Commercial real estate 7,130 6,223 6,476 5,322 5,831
Commercial 5,379 4,320 4,145 4,226 3,822
Consumer   1,249   1,227   1,158   1,271   1,181
Total non-accrual loans 20,338 18,004 17,940 16,598 16,288
Loans 90 days past due and accruing 545 211 1,135 684 121
Renegotiated loans not included above   1,096   677   581   917   -
Total non-performing loans 21,979 18,892 19,656 18,199 16,409
Other real estate owned:
Residential real estate 1,560 570 1,851 2,314 2,244
Commercial real estate   2,407   4,631   3,628   3,151   3,612
Total other real estate owned   3,967   5,201   5,479   5,465   5,856
Total non-performing assets $ 25,946 $ 24,093 $ 25,135 $ 23,664 $ 22,265
 
Loans 30-89 days past due:
Residential real estate $ 1,338 $ 74 $ 1,847 $ 2,397 $ 1,026
Commercial real estate 749 1,862 2,196 1,852 1,761
Commercial 1,367 3,530 639 2,760 1,612
Consumer   537   716   563   531   377
Total loans 30-89 days past due $ 3,991 $ 6,182 $ 5,245 $ 7,540 $ 4,776
 
 
Allowance for loan losses at the beginning of the period $ 20,246 $ 20,246 $ 17,691 $ 17,691 $ 17,691
Provision for loan losses 3,950 2,000 8,162 6,514 4,514
Charge-offs:
Residential real estate 579 268 792 752 259
Commercial real estate 752 314 1,844 1,843 1,514
Commercial 684 377 2,640 1,865 1,654
Consumer   395   294   1,180   894   571
Total charge-offs 2,410 1,253 6,456 5,354 3,998
Total recoveries   480   386   849   584   447
Net charge-offs   1,930   867   5,607   4,770   3,551
Allowance for loan losses at the end of the period $ 22,266 $ 21,379 $ 20,246 $ 19,435 $ 18,654
 
Components of allowance for credit losses:
Allowance for loan losses $ 22,266 $ 21,379 $ 20,246 $ 19,435 $ 18,654
Liability for unfunded credit commitments   47   47   51   -   -
Balance of allowance for credit losses $ 22,313 $ 21,426 $ 20,297 $ 19,435 $ 18,654
 
 
Ratios:
Non-performing loans to total loans 1.43% 1.23% 1.29% 1.20% 1.08%
Non-performing assets to total assets 1.13% 1.09% 1.13% 1.04% 0.97%
Allowance for credit losses to total loans 1.45% 1.40% 1.33% 1.28% 1.23%
Net charge-offs to average loans (annualized)
Quarter-to-date 0.28% 0.23% 0.22% 0.32% 0.49%
Year-to-date 0.25% 0.23% 0.37% 0.42% 0.48%
Allowance for credit losses to non-performing loans 101.52% 113.41% 103.26% 112.45% 113.68%
Loans 30-89 days past due to total loans 0.26% 0.40% 0.34% 0.50% 0.32%
 
Average Balance, Interest and Yield/Rate Analysis (unaudited)
           
At or for the Six Months Ended At or for the Six Months Ended
June 30, 2010 June 30, 2009
(In thousands) Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
Assets
Interest-earning assets:
Securities - taxable $ 485,636 $ 10,375 4.27 % $ 572,276 $ 14,061 4.91 %
Securities - nontaxable (1) 55,322 1,651 5.97 % 65,978 1,959 5.94 %
Trading account assets 1,809 10 1.06 % 1,338 10 1.49 %
Loans: (1) (2)
Residential real estate 625,515 16,873 5.39 % 618,773 18,346 5.93 %
Commercial real estate 438,198 12,511 5.68 % 401,886 12,449 6.16 %
Commercial 177,608 4,851 5.43 % 186,081 5,160 5.52 %
Municipal 15,265 425 5.62 % 23,111 578 5.04 %
Consumer   275,102     6,529   4.79 %   263,588     6,557   5.02 %
Total loans   1,531,688     41,189   5.37 %   1,493,439     43,090   5.77 %
Total interest-earning assets   2,074,455     53,225   5.13 %   2,133,031     59,120   5.54 %
Cash and due from banks 35,234 26,988
Other assets 163,492 153,250
Less allowance for loan losses   (21,601 )   (18,091 )
Total assets $ 2,251,580   $ 2,295,178  
 
Liabilities & Shareholders' Equity
Interest-bearing liabilities:
Interest checking accounts $ 244,577 486 0.40 % $ 206,229 509 0.50 %
Savings accounts 151,453 244 0.33 % 135,180 241 0.36 %
Money market accounts 282,143 1,168 0.83 % 282,475 1,669 1.19 %
Certificates of deposit   536,838     5,378   2.02 %   589,222     8,905   3.05 %
Total retail deposits   1,215,011     7,276   1.21 %   1,213,106     11,324   1.88 %
Brokered deposits 92,257 802 1.75 % 77,275 1,006 2.62 %
Junior subordinated debentures 43,541 1,396 6.47 % 43,436 1,424 6.61 %
Borrowings   493,170     6,404   2.62 %   596,987     7,637   2.58 %
Total wholesale funding   628,968     8,602   2.76 %   717,698     10,067   2.83 %
Total interest-bearing liabilities   1,843,979     15,878   1.74 %   1,930,804     21,391   2.23 %
 
Demand deposits 189,542 172,990
Other liabilities 22,736 20,490
Shareholders' equity   195,323     170,894  
Total liabilities & shareholders' equity $ 2,251,580   $ 2,295,178  
 
Net interest income (fully-taxable equivalent) 37,347 37,729
Less: fully-taxable equivalent adjustment   (727 )   (884 )
$ 36,620   $ 36,845  
 
Net interest rate spread (fully-taxable equivalent) 3.39 % 3.31 %
Net interest margin (fully-taxable equivalent) 3.59 % 3.52 %
 
   
 
(1) Reported on tax-equivalent basis calculated using a rate of 35%.
(2) Non-accrual loans and loans held for sale are included in total average loans.
 
Selected Financial Data (unaudited)
       
At or for
At or for the Six Months Ended the Year Ended
    June 30,   December 31,    
      2010       2009       2009      
 
Tier 1 leverage capital ratio 8.41 % 7.64 % 8.17 %
Tier 1 risk-based capital ratio 12.74 % 11.53 % 12.24 %
Total risk-based capital ratio 13.99 % 12.78 % 13.49 %
Tangible equity to tangible assets (1) 6.83 % 5.78 % 6.59 %
Book value per share $ 26.08 $ 23.18 $ 24.93
Tangible book value per share (2) $ 20.06 $ 17.08 $ 18.86
 
 
 
 
Investment Data (unaudited)
 
    June 30, 2010
Amortized Unrealized Unrealized Fair
(In thousands)   Cost   Gains   Losses   Value
 
Available for sale
Obligations of U.S. government sponsored enterprises $ 50,000 $ 283 $ - $ 50,283
Obligations of states and political subdivisions (3) 16,613 542 - 17,155

Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises

414,558 20,053 (2 ) 434,609
Private issue collateralized mortgage obligations (CMO) (4)   30,541     8     (3,380 )   27,169
Total debt securities 511,712 20,886 (3,382 ) 529,216
Equity securities (5)   5,000     -     (480 )   4,520
Total securities available for sale $ 516,712   $ 20,886   $ (3,862 ) $ 533,736
 
Held to maturity
Obligations of states and political subdivisions $ 37,786   $ 2,123   $ -   $ 39,909
Total securities held to maturity $ 37,786   $ 2,123   $ -   $ 39,909
 
Other securities
Federal Home Loan Bank Stock (6) $ 21,031 $ - $ - $ 21,031
Federal Reserve Bank Stock   934     -     -     934
Total other securities $ 21,965   $ -   $ -   $ 21,965
 
Trading account assets (7) $ 2,013
 
 
(1) Computed by dividing total shareholders’ equity less goodwill and other intangible assets by total assets less goodwill and other intangible assets.
(2) Computed by dividing total shareholders’ equity less goodwill and other intangible assets by the number of common shares outstanding.
(3) 99% of the portfolio is rated by at least one of the three major rating agencies (Moody's, Standard & Poor's or Fitch) and all of these ratings are investment grade.
(4) $11.4 million of the CMO's are rated Triple-A by at least one of the three rating agencies, while three CMO's currently carry ratings below investment grade; one CMO with a fair value of $4.4 million is rated B3 by Moody's and CC by Fitch, a second CMO with a fair value of $3.6 million is rated Caa1 by Moody's and CCC by Standard & Poor's, and a third CMO with a fair value of $2.5 million is rated BB by Fitch and CCC by Standard & Poor's.
(5) The Duff & Phelps (DNP) Select Income Fund Auction Preferred Stock continues to fail at auction. We are currently collecting all amounts due according to contractual terms and have the ability and intent to hold the security until it clears auction, is called or matures on December 22, 2021. The DNP Auction Preferred Stock is rated Triple-A by Moody’s and Standard & Poor's.
(6) The Federal Home Loan Bank of Boston has suspended its quarterly dividend payment.
(7) Investments held in mutual funds that represent deferred director and executive compensation investments.

CONTACT:
Camden National Corporation
Chance Farago, 207-230-2120
Public Relations Officer
cfarago@camdennational.com