Camden National Corp (CAC) Reports Q3 2023 Earnings: Net Income Down 21% QoQ
Camden National Corp (NASDAQ:CAC) reports Q3 2023 net income of $9.8 million, a decrease of 21% compared to Q2 2023.
Adjusted net income for Q3 2023 was $14.0 million, an increase of 13% over Q2 2023.
The company's Q3 2023 operating results include the impact from the sale of $66.7 million of investment securities that resulted in a pre-tax loss of $5.3 million.
For the nine months ended September 30, 2023, the company reported net income of $34.9 million, a decrease of 24% compared to the same period in 2022.
Camden National Corp (NASDAQ:CAC) released its Q3 2023 earnings report on October 31, 2023. The company reported a net income of $9.8 million and diluted earnings per share (EPS) of $0.67, both showing a decrease of 21% compared to Q2 2023. This decrease was primarily due to the sale of $66.7 million of investment securities, which resulted in a pre-tax loss of $5.3 million. Despite this, the company's adjusted net income for Q3 2023 was $14.0 million, showing an increase of 13% over the previous quarter.
Financial Highlights
Camden National Corp (NASDAQ:CAC) reported total assets of $5.8 billion, a 1% increase since June 30, 2023, and a 2% increase since December 31, 2022. The company's loans totaled $4.1 billion, showing a 1% decrease since Q2 2023, but a 1% increase since the end of 2022.
The company's net interest margin decreased by 1 basis point to 2.39% compared to Q2 2023. The company's asset quality remained strong, with non-performing assets totaling 0.11% of total assets and 0.16% of total loans.
Company's Performance Analysis
Despite the decrease in net income, the company's adjusted net income and adjusted EPS showed an increase of 13% over the previous quarter. This indicates that the company's strategies to prioritize deposits, optimize net interest margin, and maintain strong asset quality have been effective.
However, the company's net income and diluted EPS for the nine months ended September 30, 2023, showed decreases of 24% and 23% respectively, compared to the same period in 2022. This decrease in earnings reflects the sharp rise in interest rates and the impact of a prolonged inverted yield curve.
Other Pertinent Details
The company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 5.95%, based on the company's closing share price of $28.22, as reported by NASDAQ on September 29, 2023. The dividend will be payable on October 31, 2023, to shareholders of record on October 13, 2023.
Furthermore, the company's CEO, Gregory A. Dufour, announced his upcoming retirement at the end of the year. Simon Griffiths, currently serving as Executive Vice President - Head of Core Banking at Citizens Bank, has been appointed as his successor.
Explore the complete 8-K earnings release (here) from Camden National Corp for further details.
This article first appeared on GuruFocus.
