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Updated: July 26, 2023

Camden National 2Q earnings slide on higher costs, rates

Bank branch exterior Photo / Renee Cordes Camden National Bank's branch network includes this location in Portland.
By Renee Cordes

Camden National Corp. (Nasdaq: CAC) posted second-quarter net income of $12.4 million, 3% lower than a year earlier, as rising short-term interest rates drove costs higher and hurt margins.

Earnings per diluted share were 85 cents, a 2% drop from the same period last year.

Portrait of a man
File photo / Courtesy Camden National Bank
Gregory A. Dufour

"Camden National is well-positioned to weather the current turbulent markets, highlighted by prolonged and steep yield curve inversion that has caused significant profitability pressure across the banking industry,” said Gregory A. Dufour, the company’s president and CEO, in Tuesday's earnings release. "Our strong capital levels, asset quality and reserves provide us with stability for the future.”

He also reiterated that the company’s short-term organizational priorities are focused on deposits and optimizing net interest margin “and maintaining our strong asset quality through proactive management and early identification of any credit-related trends."

Asset quality remained strong, with non-performing assets totaling 0.09% of total assets and 0.13% of total loans.

Camden National announced a cash dividend of 42 cents per share, for an annual yield of 5.4%, based on the share price at the end of the second quarter.

Camden National Corp. is the largest publicly traded bank holding company in northern New England with $5.8 billion in assets as of June 30, 2022, and around 620 employees.

Shares have a current market value of around $496.3 million, based on Tuesday’s closing price of $34.01 per share. The stock is trading around 25% lower than a year ago.

Among Maine-based banks, Camden National ranked No. 2 in the 2023 Mainebiz Book of Lists, behind Bangor Savings Bank. Rankings were based on assets as of June 30, 2022.

Other highlights 

As of June 30, 2023, total assets were $5.8 billion, an increase of $78.2 million, since Dec. 31, 2022.

Behind the headline numbers, Camden National said that residential real estate loan production decreased 56% for the first six months of 2023 compared to the same period in 2022. 

Camden National sold 37% of residential mortgages it originated through the six months ended June 30, 2023, compared to 21% for the same period in 2022.
 
At June 30, 2023, the committed retail and commercial loan portfolio pipelines totaled $62.7 million and $40.4 million, respectively. Around half of the committed residential real estate loan portfolio was designated for sale.

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