Camden National reports 20% earnings increase for Q4
COURTESY / CAMDEN NATIONAL BANK
Camden National reported a 20% earnings increase. In 2020, the company opened a new banking center in Damariscotta, seen here in a rendering.
Camden National Corp. (Nasdaq: CAC), the parent company of Camden National Bank, on Tuesday reported earnings of $18.3 million for the fourth quarter of 2020, an increase of 20% over the same period in 2019.
Net income during 2020 was $59.5 million, an increase of 4% over earnings in 2019.
Earnings per share increased 23% to $1.22 for the fourth quarter of 2020 and 7% to $3.95 for the entire year.
In addition, earnings during the fourth quarter of 2020 and earnings per share showed increases of 9% and 10% over the third quarter of 2020, respectively.
"We have a lot to be proud about at Camden National this year," Gregory A. Dufour, the company’s president and CEO, said in a news release. "2020 was a year unlike any other with so many personal and professional challenges, as the COVID-19 health crisis disrupted the lives of the people and businesses across all communities we serve."
Dufour cited the residential mortgage team as an example of the organization’s effort to support customers as interest rates hit a historical low: The company reached a new record of $1 billion in mortgage originations in 2020.
Effects of pandemic
As of Dec. 31, 2020, total assets were $4.9 billion, an 11% increase over the previous year. The company said asset growth during 2020 was driven by an increase in investment balances of $195.6 million, or 21%, loan balances of $124.8 million, or 4%, and cash balances of $70.1 million, or 93%.
The increase in cash and investment balances during the year was primarily driven by elevated deposits resulting from government stimulus in response to COVID-19, and loan balances increased primarily due to Paycheck Protection Program loans.
Commercial and commercial real estate loan originations slowed during the year in response to COVID-19, while residential mortgage loan originations soared and reached a new record during the year of $1 billion, an increase of 79% over 2019.
The increase was largely driven by refinancing activities as interest rates hit record lows in response to economic uncertainty related to COVID-19. For the fourth quarter of 2020 and for the entire year, the company sold 59% and 61% of its residential mortgage originations to the secondary market, respectively, compared to 59% during the fourth quarter of 2019, 69% during the third quarter of 2020, and during all of 2019.
In mid-morning trading Wednesday, shares of Camden National were up 2.72%, to $38.56.
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