Camden National’s net income drops in wake of Bank of America acquisitions

Greg Dufour, CEO of Camden National Bank
Greg Dufour, CEO of Camden National Bank
Posted April 30, 2013, at 6:27 p.m.
Last modified May 01, 2013, at 2:31 p.m.

CAMDEN, Maine — Camden National Bank’s net income during the first quarter decreased 14 percent from the same quarter in 2012, a result the company said was expected as it absorbs the costs associated with acquiring 15 branches from Bank of America.

Camden National reported a net income of nearly $5.7 million during the first quarter of 2013, a 14 percent drop from the $6.6 million net income reported during the first quarter of 2012, according to financial figures released Tuesday.

Camden National Corp., the bank’s holding company, in October 2012 acquired 15 bank branches in three counties and 38,000 customer accounts from Bank of America for $20 million.

The first-quarter results met expectations and reflect the impact of that acquisition, which has increased operational costs while the company builds its revenue base through loan growth, according to Gregory Dufour, CEO of Camden National.

“We are beginning to see the benefits of these new locations and expanded lending team with a solid loan pipeline and a significantly increased market position over last year,” Dufour said in a statement. “For new mortgages, we now claim the second-largest market share in Penobscot County, fourth in Androscoggin County and fifth in Kennebec County, compared to positions of no better than twelfth a year ago in these markets.”

Camden National acquired the Bank of America branches in Auburn, Brewer, Gardiner, Lewiston, Newport, Old Town, Rockland and Waterville, as well as three branches in Augusta and three branches in Bangor. It also acquired and reopened the branch in Orono that Bank of America closed.

The bank’s total deposits increased $396 million during the first quarter, a 25 percent increase from a year ago. That increase comprised $287.6 million in added deposits from the Bank of America accounts and organic growth of $108.4 million, the company reported.

It also reported a 4 percent increase in its loan portfolio, to $62 million, compared with a year ago. Loan growth was fueled in the areas of commercial real estate and home equity lending.

With $1.9 billion in deposits, Camden National is now the fourth largest bank in the state, behind TD Bank, KeyBank and Bangor Savings Bank.

Camden National Corp., which is listed on the NASDAQ Global Select Market under the symbol CAC, also increased its quarterly dividend to $0.27 per share, an increase of 8 percent.

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