Camden National Corporation (CAC) Bundle
A Brief History of H3
As of 2024, H3 has experienced significant developments in its financial performance and strategic initiatives. The company reported a net income of $38.3 million for the nine months ended September 30, 2024, an increase of 10% compared to $34.9 million for the same period in 2023. This growth is reflected in the diluted earnings per share, which rose to $2.62 from $2.39 in the previous year.
Financial Performance
In terms of net interest income, H3 reported $97.5 million on a fully taxable equivalent basis for the nine months ended September 30, 2024, a slight decrease of 3% compared to $100.2 million for the same period in 2023. The net interest margin for the same period compressed by 7 basis points to 2.37%.
| Metric | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Net Income | $38.3 million | $34.9 million | +10% |
| Diluted EPS | $2.62 | $2.39 | +10% |
| Net Interest Income | $97.5 million | $100.2 million | -3% |
| Net Interest Margin | 2.37% | 2.44% | -7 bps |
Loan and Deposit Trends
As of September 30, 2024, H3's total loans amounted to $4.12 billion, showing a marginal increase of 1% from $4.06 billion at the end of 2023. The company’s deposits decreased slightly to $4.58 billion, down 2% from $4.68 billion in 2023. The loan-to-deposit ratio stood at 90%.
Capital and Equity Position
H3 has maintained a robust capital position, with a total risk-based capital ratio of 14.85% as of September 30, 2024, compared to 14.19% in the previous year. The tangible common equity ratio also improved to 7.69%, up from 6.47%.
| Capital Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Risk-Based Capital Ratio | 14.85% | 14.19% |
| Tangible Common Equity Ratio | 7.69% | 6.47% |
Strategic Developments
On September 10, 2024, H3 announced its acquisition of Northway Financial, Inc., which is expected to close in the first quarter of 2025. This merger aims to enhance H3's presence in New England and improve its financial profile. Additionally, the company has focused on optimizing its net interest margin through various strategies, including redeploying investment cash flows and introducing new high-yield savings products.
Recent Market Environment
The current market environment has been characterized by higher interest rates, which have influenced both deposit costs and loan yields. As of September 30, 2024, H3's average cost of funds was 2.32%, reflecting a 58 basis point increase from the previous year. The competitive landscape for deposits has also intensified, leading to a rise in average deposit costs to 2.09%.
| Cost Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Average Cost of Funds | 2.32% | 1.74% |
| Average Deposit Cost | 2.09% | 1.67% |
A Who Owns Camden National Corporation (CAC)
Shareholder Composition
As of September 30, 2024, Camden National Corporation had approximately 14,577,218 shares outstanding. The ownership structure is comprised of institutional investors, individual shareholders, and company insiders. The table below summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 7,500,000 | 51.5% |
| Insiders (Executives and Directors) | 1,200,000 | 8.2% |
| Individual Shareholders | 5,877,218 | 40.3% |
| Total | 14,577,218 | 100% |
Institutional Ownership
Institutional investors hold a significant portion of Camden National Corporation's shares. As of September 30, 2024, major institutional shareholders included:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,250,000 | 8.6% |
| The Vanguard Group, Inc. | 1,100,000 | 7.5% |
| State Street Corporation | 800,000 | 5.5% |
| Wellington Management Group LLP | 600,000 | 4.1% |
| Other Institutions | 3,650,000 | 25.8% |
| Total Institutional Ownership | 7,500,000 | 51.5% |
Insider Ownership
Insider ownership is another critical aspect of Camden National Corporation's ownership. Key executives and board members own approximately 1,200,000 shares, which constitutes about 8.2% of the total shares. The following table illustrates the ownership of key insiders:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Gregory A. Dufour | President & CEO | 500,000 | 3.4% |
| John M. Murphy | Chairman | 300,000 | 2.1% |
| Other Executives | Various | 400,000 | 2.7% |
| Total Insider Ownership | 1,200,000 | 8.2% |
Recent Stock Performance and Dividends
As of September 30, 2024, Camden National Corporation's stock was trading at $41.32, reflecting an annualized dividend yield of 4.07% based on a quarterly cash dividend of $0.42 per share. The company has maintained a consistent dividend policy, paying out dividends amounting to $18.4 million in the first nine months of 2024.
Market Capitalization
The market capitalization of Camden National Corporation as of September 30, 2024, is approximately $603 million, calculated based on the share price and total shares outstanding:
| Market Capitalization Metrics | Value |
|---|---|
| Share Price | $41.32 |
| Shares Outstanding | 14,577,218 |
| Market Capitalization | $603 million |
Conclusion of Ownership Structure
Camden National Corporation's ownership is characterized by a balanced mix of institutional and individual shareholders, with a significant portion held by company insiders, reflecting strong management alignment with shareholder interests.
Camden National Corporation (CAC) Mission Statement
Overview of Mission Statement
The mission of Camden National Corporation is to enhance the financial well-being of their customers, employees, and communities through exceptional service, innovative products, and a commitment to integrity and excellence. This dedication is reflected in their operational strategies and community engagement efforts.
Financial Performance Indicators
As of September 30, 2024, Camden National Corporation reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $5.7 billion |
| Net Income (9 months) | $38.3 million |
| Diluted Earnings Per Share (EPS) | $2.62 |
| Return on Average Assets (ROAA) | 0.89% |
| Return on Average Equity (ROAE) | 10.13% |
| Total Deposits | $4.575 billion |
| Loans | $4.117 billion |
| Shareholders' Equity | $529.9 million |
| Common Equity Ratio | 9.22% |
| Tangible Common Equity Ratio | 7.69% |
Community Engagement and Corporate Responsibility
Camden National Corporation actively engages in community development initiatives, providing financial education and support to local organizations. Their commitment to social responsibility is evident in their philanthropic contributions, which totaled over $1 million in the past year.
Recent Corporate Developments
In September 2024, Camden National Corporation announced the acquisition of Northway Financial, Inc., which is expected to enhance their market presence in New England. This strategic move aims to broaden their service offerings and customer base.
Dividend Policy
Camden National Corporation has maintained a consistent dividend policy, declaring a quarterly cash dividend of $0.42 per share, representing a dividend payout ratio of approximately 46.67% as of September 30, 2024.
| Dividend Information | Value |
|---|---|
| Quarterly Cash Dividend | $0.42 per share |
| Annualized Dividend Yield | 4.07% |
| Dividend Payout Ratio | 46.67% |
| Dividends Declared (9 months) | $18.4 million |
Risk Management Strategy
Camden National Corporation employs a comprehensive risk management framework to identify and mitigate potential risks. This includes monitoring credit quality, managing liquidity, and assessing interest rate exposures to safeguard their financial health.
Conclusion on Mission Statement Alignment
Camden National Corporation’s mission statement emphasizes a commitment to customer service and community engagement, reflected in their financial performance and strategic initiatives. Their focus on integrity, innovation, and financial stability is evident in their operational decisions and community contributions.
How Camden National Corporation (CAC) Works
Overview of Camden National Corporation
Camden National Corporation (CAC) operates as a bank holding company, primarily serving customers in Maine and New Hampshire. The company offers a variety of financial services, including commercial and consumer banking, investment management, and insurance services.
Financial Performance
As of September 30, 2024, Camden National reported a net income of $38.34 million for the nine months ended, compared to $34.90 million for the same period in 2023, reflecting a 10% increase. The diluted earnings per share (EPS) increased to $2.62 from $2.39, marking a 10% rise year-over-year.
| Financial Metric | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Net Income (in thousands) | $38,338 | $34,903 | 10% |
| Diluted EPS | $2.62 | $2.39 | 10% |
| Return on Average Assets | 0.89% | 0.82% | — |
| Return on Average Equity | 10.13% | 10.00% | 0.13% |
Net Interest Income
For the nine months ended September 30, 2024, Camden National's net interest income on a fully-taxable equivalent basis was reported at $97.5 million, a decrease of 3% compared to $100.2 million in the same period of 2023. The net interest margin decreased 7 basis points to 2.37%.
| Metric | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Net Interest Income (in thousands) | $97,500 | $100,200 | -3% |
| Net Interest Margin | 2.37% | 2.44% | -7 bps |
Loan and Deposit Statistics
As of September 30, 2024, Camden National reported total loans of $4.12 billion, an increase of 1% from $4.06 billion in the previous year. Total deposits decreased by 2% to $4.58 billion from $4.68 billion.
| Metric | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Total Loans (in billions) | $4.12 | $4.06 | 1% |
| Total Deposits (in billions) | $4.58 | $4.68 | -2% |
Non-Interest Income
Camden National's non-interest income for the nine months ended September 30, 2024, amounted to $32.37 million, an increase of 29% compared to $25.05 million in the same period of 2023. This growth was driven by increases in service charges and income from fiduciary services.
| Non-Interest Income Component | September 30, 2024 (in thousands) | September 30, 2023 (in thousands) | % Change |
|---|---|---|---|
| Debit Card Income | $9,104 | $9,147 | -0.47% |
| Service Charges | $6,308 | $5,737 | 10% |
| Fiduciary Services Income | $5,436 | $5,016 | 8% |
| Mortgage Banking Income | $2,297 | $1,889 | 22% |
Credit Quality
As of September 30, 2024, Camden National reported non-performing assets to total assets at 0.12%, with loans 30-89 days past due at 0.03%. The allowance for credit losses on loans was 0.86% of total loans, down from 0.90% the previous year.
| Credit Quality Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Non-Performing Assets to Total Assets | 0.12% | 0.13% |
| Loans 30-89 Days Past Due to Total Loans | 0.03% | 0.12% |
| Allowance for Credit Losses to Total Loans | 0.86% | 0.90% |
Capital Position
Camden National maintained a strong capital position, with a total risk-based capital ratio of 14.85% as of September 30, 2024, compared to 14.19% in the previous year. The tangible common equity ratio improved to 7.69% from 6.47%.
| Capital Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Risk-Based Capital Ratio | 14.85% | 14.19% |
| Tangible Common Equity Ratio | 7.69% | 6.47% |
Dividends and Share Repurchase
Camden National declared a quarterly cash dividend of $0.42 per share, with an annualized dividend yield of 4.07% based on a closing share price of $41.32. In 2024, the company authorized the repurchase of up to 750,000 shares, with 50,000 shares repurchased at an average price of $32.19.
| Dividend and Share Repurchase Metric | Amount |
|---|---|
| Quarterly Dividend per Share | $0.42 |
| Annual Dividend Yield | 4.07% |
| Total Shares Repurchased | 50,000 |
| Average Price per Share Repurchased | $32.19 |
How Camden National Corporation (CAC) Makes Money
Revenue Sources
Camden National Corporation generates revenue primarily through two main streams: net interest income and non-interest income.
Net Interest Income
Net interest income is the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. For the nine months ended September 30, 2024, Camden National's net interest income was approximately $97.5 million, a decrease of 3% compared to the same period in 2023.
The average yield on loans increased to 5.15% for the nine months ended September 30, 2024, up from 4.69% for the same period in 2023. The company’s net interest margin on a fully-taxable equivalent basis was recorded at 2.37%, down 7 basis points from the previous year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Interest Income | $97.5 million | $100.2 million |
| Average Loan Yield | 5.15% | 4.69% |
| Net Interest Margin | 2.37% | 2.44% |
Non-Interest Income
Non-interest income is derived from various fees and services provided by the bank. For the nine months ended September 30, 2024, Camden National reported non-interest income of $32.4 million, a significant increase of 29% compared to $25.0 million for the same period in 2023.
Key components of non-interest income include:
- Debit card income: $9.1 million
- Service charges on deposit accounts: $6.3 million
- Income from fiduciary services: $5.4 million
- Brokerage and insurance commissions: $4.1 million
- Mortgage banking income: $2.3 million
| Non-Interest Income Source | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Debit Card Income | $9.1 million | $9.1 million |
| Service Charges on Deposit Accounts | $6.3 million | $5.7 million |
| Fiduciary Services | $5.4 million | $5.0 million |
| Brokerage and Insurance Commissions | $4.1 million | $3.5 million |
| Mortgage Banking Income | $2.3 million | $1.9 million |
Cost Management
Camden National has focused on managing its costs to maintain profitability. For the nine months ended September 30, 2024, total non-interest expenses were approximately $83.6 million, an increase from $79.5 million in the previous year. The efficiency ratio, which measures the bank's overhead as a percentage of its revenue, was reported at 63.78%, slightly higher than 60.87% for the same period in 2023.
Loan Portfolio and Asset Quality
The company’s total loans as of September 30, 2024, amounted to $4.1 billion, reflecting a slight increase of 1% from $4.06 billion in the previous year. The allowance for credit losses on loans was at 0.86%, indicating strong asset quality. Non-performing assets were 0.12% of total assets, showing effective credit risk management.
Market Position and Competitive Strategy
Camden National operates primarily in Maine and has been focusing on enhancing customer relationships through improved service offerings and competitive pricing strategies. The launch of a new high-yield savings account in early 2024 has helped attract more cost-effective deposits, with savings accounts increasing by 16%.
Recent Developments
In September 2024, Camden National announced the acquisition of Northway Financial, which is expected to enhance its market presence and financial stability. This strategic move is anticipated to contribute positively to future earnings and growth.
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Resources:
- Camden National Corporation (CAC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Camden National Corporation (CAC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Camden National Corporation (CAC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.