Camden National posts 17% drop in Q2 earnings
Camden National Bank parent company Camden National Corp. (Nasdaq: CAC) on Tuesday posted a 17% decline in second-quarter net income to $10.9 million, and said the company will continue to evaluate a share repurchase program it suspended earlier this year in response to the pandemic.
Diluted earnings per share were 73 cents in the second quarter, representing a 14% decrease from a year ago but in line with the consensus forecast of analysts polled by Zacks Investment Research.
The company attributed the decrease in net income to higher provision expenses in response to COVID-19.
"Over the past several months, we have navigated new economic and social challenges as a result of the COVID-19 pandemic," Gregory A. Dufour, the company's president and CEO, said in a statement.
He added, "While the total financial impact of the COVID-19 pandemic remains unclear, we remain well-positioned to withstand the uncertainty. We are fortifying our balance sheet as shown by our pre-tax, pre-provision earnings contribution, which is allowing us to build our reserves for loan losses that may occur due to the changing economy."
Camden National Corp. has a market capitalization of around $478.10 million, based on Tuesday's closing share price of $31.97. The stock has lost 26.25% of its value over the past year.
'Continue to evaluate' share buybacks
With $4.4 billion in total assets as of Dec. 31, 2019, Camden National Bank was No. 2 behind Bangor Savings Bank in a Mainebiz list of the 13 largest Maine-based banks, compiled by researcher Timothy Doyle and published in early April.
Camden National said Tuesday that its total assets had increased 12% in the six months through June 30, to $5 billion, driven by a growth in loans and investments and an increase in cash balances.
During that same period, commercial loans grew $204.3 million, or 46%, driven by loans made through the Small Business Administration's Paycheck Protection Protection. As of June 30, outstanding PPP loan balances stood at $225.8 million.
In June, Camden National announced a cash dividend to shareholders of 33 cents a share, consistent with that issued for the first quarter of 2020.
The dividend is payable to shareholders of record as of July 15, and shareholders are to begin receiving payments on July 31.
Camden National suspended its share repurchase program during the first quarter of 2020.
"We will continue to evaluate our use of the share repurchase program as the impact and our response to the COVID-19 pandemic develops," the bank said Tuesday.
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