Camden National Bank (Nasdaq: CAC) on Tuesday posted a 46% jump in first-quarter net income over a year earlier as mortgage banking income doubled.
Net income for the quarter rose to $19.7 million from $13.5 million a year earlier. Net income in the fourth quarter of 2020 was $18.3 million.
Diluted earnings per share were up 46% over the same period last year at $1.31, well above the $1.02 per share consensus forecast of analysts polled by Zacks Investment Research. It noted that over the last four quarters, Camden National has surpassed consensus earnings per share estimates three times.
Camden National attributed the robust results to a combination of factors, including a doubling in mortgage banking income and $1.9 million in income earned from processing federal Paycheck Protection Program loans.
Gregory A. Dufour, the bank’s president and CEO, said in a statement that he was pleased with the year’s strong start.
“The actions we took last year in response to the COVID-19 pandemic, which included increasing reserve levels, positioned us well during the early stages of the pandemic, providing flexibility to offer short-term loan deferral arrangements to qualified borrowers and originate SBA PPP loans,” he said.
Dufour also noted that Camden National’s asset quality is favorable, with non-performing assets at 0.20% of the total and only $2.4 million of loans remaining on short-term deferral arrangement at March 31, 2021.
As of that same date, the company said its capital position “remained well in excess” of regulatory requirements, including a total risk-based capital ratio of 16.0% and a tier-1 leverage ratio of 9.61%.
Dufour, along with CFO Gregory A. White, will share further details with analysts and investors in a conference call and webcast scheduled for 1 p.m. EDT.
Tuesday’s regularly scheduled earnings report comes about month after the bank announced a a 9% increase in its quarterly cash dividend to 36 cents a share, payable on April 30, 2021, to shareholders of record on April 15, 2021.
It launched a new share buyback program in the first quarter for up to 750,000 shares of common stock, or about 5% of outstanding shares, to replace a program that wrapped up in January.
In mid-morning trading, shares of Camden National were 0.85% lower, at $46.54, giving the bank a market capitalization of $700.92 million.