Camden National (NASDAQ:CAC) Posts Quarterly Earnings Results

Camden National (NASDAQ:CAC) announced its quarterly earnings results on Tuesday. The financial services provider reported $1.35 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 analyst estimates of $66.41 million. Camden National had a net margin of 23.64% and a return on equity of 12.73%.

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 Price Performance

Shares of NASDAQ CAC traded up $0.22 during mid-day trading on Thursday, reaching $58.69. 7,219 shares of the company traded hands, compared to its average volume of 102,460. Camden National has a fifty-two week low of $35.00 and a fifty-two week high of $59.50. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.82 and a quick ratio of 0.82. The firm has a market cap of $992.71 million, a PE ratio of 11.20 and a beta of 0.55. The stock has a fifty day simple moving average of $52.67 and a 200-day simple moving average of $49.58.

Camden National Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Wednesday, July 15th will be issued a $0.42 dividend. The ex-dividend date is Wednesday, July 15th. This represents a $1.68 annualized dividend and a dividend yield of 2.9%. Camden National’s dividend payout ratio (DPR) is 32.18%.

Institutional Investors Weigh In On Camden National

Institutional investors have recently added to or reduced their stakes in the company. Franklin Resources Inc. increased its position in shares of Camden National by 7.8% during the 3rd quarter. Franklin Resources Inc. now owns 1,559,400 shares of the financial services provider’s stock valued at $60,177,000 after purchasing an additional 113,221 shares during the period. Wellington Management Group LLP lifted its holdings in shares of Camden National by 70.4% in the fourth quarter. Wellington Management Group LLP now owns 220,382 shares of the financial services provider’s stock valued at $9,560,000 after buying an additional 91,018 shares during the period. Goldman Sachs Group Inc. boosted its stake in Camden National by 98.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 120,062 shares of the financial services provider’s stock valued at $5,208,000 after buying an additional 59,479 shares in the last quarter. First Trust Advisors LP boosted its stake in Camden National by 451.4% during the third quarter. First Trust Advisors LP now owns 61,951 shares of the financial services provider’s stock valued at $2,391,000 after buying an additional 50,716 shares in the last quarter. Finally, Nuveen LLC grew its holdings in Camden National by 116.5% during the fourth quarter. Nuveen LLC now owns 80,184 shares of the financial services provider’s stock worth $3,478,000 after acquiring an additional 43,140 shares during the period. 77.41% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

CAC has been the subject of a number of recent analyst reports. Weiss Ratings reissued a “buy (b)” rating on shares of Camden National in a report on Tuesday, June 9th. Keefe, Bruyette & Woods lifted their target price on Camden National from $50.00 to $55.00 and gave the company a “market perform” rating in a research note on Thursday. National Bank Financial set a $55.00 target price on Camden National in a research note on Thursday. Finally, Raymond James Financial boosted their price target on Camden National from $56.00 to $58.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 1st. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $55.25.

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.