Camden National’s Q4 earnings fall, but rise 16% for the year

FILE PHOTO / TIM GREENWAY Greg Dufour, president and CEO of Camden National Bank, said fourth-quarter net income fell amid lower PPP loan income.

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By Jessica Hall

Camden National Corp. (Nasdaq: CAC) on Tuesday said it posted lower fourth-quarter earnings than last year, due in part to lower loan income from the federal Paycheck Protection Program.

Fourth-quarter net income totaled $16.5 million, or $1.11 a share, compared with $18.3 million, or $1.22 a share for the fourth quarter of 2020.

The company said the decrease was also partly due to a strategic shift to hold more residential mortgage production in 2021, and strong loan growth in the fourth quarter of 2021 that led to higher provisions for loans.

Shares of Camden National traded at $49.33, down 79 cents, or 1.58%, in morning trading.

For the full year of 2021, the company had record net income of $69.0 million, or $4.60 a share, each an increase of 16% over the year before.

"We're excited and grateful to report a new high-water mark this year with record earnings of $69.0 million. Our success is a direct reflection of the outstanding team we have across all facets of our organization and their commitment to delivering exceptional customer experiences," said Gregory Dufour, Camden National’s president and CEO.

“We're entering 2022 in great financial standing, highlighted by strong capital and reserve levels, a well-positioned balance sheet and significant momentum fueled by our dedicated team."

He added, "We continue to take measured steps to manage our capital, and this year we did so through returning capital to our shareholders in the form of dividend increases and repurchases of the company's common stock. As we move into 2022, we'll continue to actively monitor and manage capital with a focus on shareholder return," Dufour said.

In addition, Camden National said it made other changes in the past year, including increasing its minimum wage for all employees to $17 an hour and providing a wage increase of 3% or more to all employees.

Total assets grew 12% during 2021 to $5.5 billion. Asset growth for the year ended 2021 was driven by an increase in investment balances of $390.7 million, or 34%, and an increase in loan balances of $211.7 million, or 7%.

Camden National is the largest publicly traded bank holding company in northern New England with $5.5 billion in assets and about 600 employees. Camden National Bank is a full-service community bank founded in 1875 in Camden.