Camden National (NASDAQ:CAC) Issues Quarterly Earnings Results

Camden National (NASDAQ:CAC) posted its quarterly earnings results on Tuesday. The financial services provider reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.06, FiscalAI reports. The company had revenue of $67.41 million for the quarter, compared to analysts’ expectations of $66.41 million. Camden National had a return on equity of 11.78% and a net margin of 21.32%.

Here are the key takeaways from Camden National’s conference call:

• Record profitability: Second-quarter net income reached $23 million and diluted EPS hit $1.35, both up 5% sequentially, while first-half net income totaled a record $44.9 million.
• Margin expansion is expected to continue: Core net interest margin rose five basis points to 2.97%, and management projects another five to 10 basis points of expansion in the third quarter from seasonal deposit inflows and asset repricing.
• Loan momentum and fee income improved: Loans grew 1% sequentially, the committed loan pipeline increased 45% to $185.7 million, and non-interest income rose 21% to $14.5 million, supported by wealth, brokerage, debit-card, deposit-related and mortgage fees.
• Credit and capital remained strong: Non-performing loans were just 24 basis points of total loans, net charge-offs were 4 basis points, tangible book value per share increased 7% from year-end, and the company returned 41% of first-half net income through dividends and repurchases.
• Management expects third-quarter loan growth to remain measured and acknowledged uncertainty around future M&A, including the potential implications of crossing the $10 billion asset threshold; it remains focused primarily on organic growth and will pursue acquisitions only when the strategic fit is compelling.

Camden National Stock Up 5.5%

CAC stock opened at $57.85 on Wednesday. Camden National has a 12-month low of $35.00 and a 12-month high of $58.65. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.09. The company has a market cap of $978.82 million, a price-to-earnings ratio of 12.31 and a beta of 0.55. The company has a 50 day moving average of $52.48 and a two-hundred day moving average of $49.49.

Camden National Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Wednesday, July 15th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Wednesday, July 15th. This represents a $1.68 dividend on an annualized basis and a yield of 2.9%. Camden National’s payout ratio is presently 35.74%.

Key Camden National News

Here are the key news stories impacting Camden National this week:

• Positive Sentiment: Camden National reported record quarterly net income of $23.0 million and diluted EPS of $1.35, up from $0.89 a year earlier and above analysts’ $1.29–$1.30 estimates. Camden National Corporation Reports Record Quarterly Net Income
• Positive Sentiment: Revenue reached $67.41 million, exceeding the $66.41 million consensus estimate. Total revenue increased 5% sequentially, while non-interest income rose 21% to $14.5 million. Camden National Earnings Results
• Positive Sentiment: Profitability metrics improved, with a 3.26% net interest margin, 1.33% return on average assets, 12.92% return on average equity and 18.47% return on average tangible equity. Camden National Delivers Record Earnings and Margin Gains
• Positive Sentiment: First-half net income nearly doubled year over year to $44.9 million, or $2.64 per share, compared with $21.4 million and $1.26 per share in the prior-year period. The company also declared a $0.42-per-share cash dividend and repurchased 52,000 shares during the quarter. Camden National Reports Record Q2 Net Income
• Neutral Sentiment: The results show continued loan and deposit growth, with second-quarter loans of approximately $5.0 billion and deposits of $5.6 billion. However, the stock is trading near its 52-week high, which may limit additional near-term upside unless earnings momentum continues.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of CAC. Russell Investments Group Ltd. increased its position in Camden National by 13,790.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,389 shares of the financial services provider’s stock worth $54,000 after purchasing an additional 1,379 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Camden National during the 3rd quarter valued at about $58,000. Kestra Advisory Services LLC bought a new stake in shares of Camden National in the 4th quarter valued at approximately $92,000. Aquatic Capital Management LLC grew its stake in shares of Camden National by 33.5% in the 3rd quarter. Aquatic Capital Management LLC now owns 3,153 shares of the financial services provider’s stock valued at $122,000 after buying an additional 791 shares in the last quarter. Finally, Quantbot Technologies LP increased its holdings in Camden National by 45.7% in the second quarter. Quantbot Technologies LP now owns 3,167 shares of the financial services provider’s stock worth $129,000 after buying an additional 993 shares during the last quarter. Hedge funds and other institutional investors own 77.41% of the company’s stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on CAC. Keefe, Bruyette & Woods lifted their target price on Camden National from $47.00 to $50.00 and gave the stock a “market perform” rating in a report on Wednesday, April 29th. Raymond James Financial boosted their price objective on Camden National from $56.00 to $58.00 and gave the stock an “outperform” rating in a report on Wednesday, July 1st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Camden National in a research note on Tuesday, June 9th. Finally, National Bank Financial set a $50.00 target price on shares of Camden National in a report on Wednesday, April 29th. Two analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $52.75.

About Camden National

Camden National Corporation is a bank holding company headquartered in Camden, Maine. Through its primary subsidiary, Camden National Bank, the company provides a full range of community banking services to individuals and businesses. Its branch network spans much of the State of Maine, with a concentration in the midcoast, central and southern regions.

The company’s offerings include deposit products such as checking, savings and money market accounts, along with consumer and commercial lending services.