File photo / Tim Greenway
Gregory Dufour.
Updated: February 2, 2023
Camden National reports $15.4 million in Q4 earnings, with 11% decline for the year
Peter Van Allen
Camden National Bank's office on Middle Street in Portland.
Camden National Corp. (NASDAQ CAC), a bank holding company headquartered in Camden, closed the year with fourth quarter 2022 earnings of $15.4 million, an 8% increase over the third quarter of 2022.
A year ago, for the fourth quarter of 2021, Camden National reported a profit of $16.5 million, a decline from a net of $18.3 million for Q4 2020.
Camden National ranks No. 2 among Maine-based banks, with assets of $5.45 billion at June 30, 2022, according to the 2023 Mainebiz Book of Lists. It has 58 branches and additional lending offices in New Hampshire and Massachusetts.
For the year ended 2022, Camden National reported net income of $61.4 million, which was down 11% from 2021’s record annual earnings of $69 million.
The change in earnings year-over-year reflected a significant change in market dynamics between periods as short-term interest rates rose rapidly in 2022 and pandemic-related stimulus cash flow stopped.
As a result, residential mortgage activity decreased sharply, Small Business Administration Paycheck Protection Program loan income abated, and the company increased its allowance for credit losses to strengthen its financial position in light of current and forecasted economic conditions.
"We're pleased to report annual earnings of $61.4 million for 2022 and $15.4 million for the fourth quarter of 2022,” Gregory Dufour, president and CEO, said in a news release.
He continued, “The strength of our core operating earnings allowed us to further build loan loss reserves throughout the year in response to growing economic concerns, while our asset quality continues to remain extremely favorable.”
Dufour added, "The sharp rise in interest rates in 2022 resulted in a prolonged and steep yield curve, which we anticipate will continue in 2023. While this will challenge all financial institutions, our strong core deposit base, excellent credit quality, disciplined expense management, solid capital position, and commitment to long-term sustainable growth will help us navigate through the coming quarters."
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