Camden National beats expectations on Q2 earnings

File Photo / Tim Greenway Greg Dufour, president and CEO of Camden National Bank, said, "We are optimistic about the future based on vaccination rates, tourism and real estate activity within our markets."

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By Renee Cordes

Camden National Bank (Nasdaq: CMC) on Tuesday reported second-quarter net income of $18.1 million, up 66% over the same period last year, amid loan growth in residential mortgages and commercial real estate.

Diluted earnings per share were $1.21, up from 73 cents a year ago and surpassing the $1.16 per share consensus forecast among analysts polled by Zacks Investment Research.

Net income for the six months ended on June 30 amounted to $37.9 million, up 55% over a year ago. Book value per share grew 2% in the second quarter, while tangible book value per share (non-GAAP) was 3% higher.

"We had an excellent first half of the year with very strong financial results," said Gregory A. Dufour, Camden National Bank's president and CEO, in a statement that also cited the bank's asset quality.

"We are optimistic about the future based on vaccination rates, tourism and real estate activity within our markets," he added. "Our ongoing conversations with customers about economic recovery and growth further solidify this."

Later in a conference call with analysts, Dufour said the bank has continued to see significant volumes in its residential mortgage business, and that investments in the business as well as support areas "allow us to be agile in light of market conditions."

As far as local economies are concerned, he said the bank is seeing results of significant increases in tourism, residential real estate purchases and other business activities. However, the impact has been tempered by labor shortages, wage inflation and general inflation, especially in building and construction materials.

Total deposits at Camden National were $4.3 billion as of June 30, an increase of 7% in the past three months. Core deposit growth grew by 9% in the first half of the year, which the bank said was driven by another round of government stimulus programs in response to the pandemic and the start of seasonal inflows during summer.

As of June 30, the company's capital position remained well above regulatory requirements, including a total risk-based capital ratio of 15.26%.

Total assets as of June 30 were $5.2 billion, an increase of $253.3 million, or 5%, since the end of 2020.

Based on assets at the end of 2020, Camden National Bank was No. 2 on a Mainebiz ranking of Maine-base banks, behind only Bangor Savings Bank. No. 3 on that list was Bar Harbor Bank & Trust, which also recently reported Q2 results.

In June, Camden National Bank announced a cash dividend of 36 cents a share, payable on July 30, representing an annualized dividend yield of 3.02% based on the company's closing June 30 share price of $47.76.