Camden National Corporation Reports First Quarter 2025 Earnings

Rhea-AI Summary

Camden National Corporation (NASDAQ: CAC) reported Q1 2025 earnings of $7.3 million with diluted EPS of $0.43. The quarter was marked by the successful completion of Northway Financial acquisition on January 2, 2025, through an all-stock transaction valued at $96.5 million. The acquisition expanded Camden's presence in New Hampshire and increased total assets to $7.0 billion, adding $1.2 billion in assets and over 28,000 new customers. Key metrics include net interest margin expansion to 3.04%, core net interest margin growth to 2.68%, and strong asset quality with non-performing loans at just 0.15%. The company expects to achieve 35% cost savings from Northway's operating expenses, with 75% to be realized in 2025. The integration was completed in mid-March 2025, with merger-related costs of $7.5 million in Q1. Camden National declared a quarterly dividend of $0.42 per share, representing a 4.15% annualized yield.

Positive

• Successful completion of Northway Financial acquisition, adding $1.2 billion in assets and expanding presence in New Hampshire
• Net interest margin expanded to 3.04% from 2.57% in Q4 2024
• Strong asset quality with non-performing loans at only 0.15% of total loans
• On track to achieve 35% cost savings from Northway's operating expenses
• Maintains strong capital ratios with common equity Tier 1 ratio at 10.78%

Negative

• Net income decreased 50% to $7.3 million compared to Q4 2024
• Merger-related costs of $7.5 million impacted Q1 earnings
• Adjusted diluted EPS decreased 8% compared to Q4 2024
• Non-interest expense increased 57% to $44.5 million quarter-over-quarter

Insights

Banking Financial Analyst

Camden National's acquisition of Northway boosts assets to $7B, with expanding margins and strong asset quality despite temporary earnings pressure.

Camden National's Q1 2025 results reflect the transformative acquisition of Northway Financial, completed January 2, 2025. This all-stock transaction ($96.5 million) instantly increased Camden's assets by $1.2 billion to reach the $7.0 billion milestone, significantly expanding its Northern New England footprint to 73 branches.

Looking beyond the headline numbers, the bank's reported earnings of $7.3 million ($0.43 EPS) were temporarily depressed by $7.5 million in pre-tax acquisition costs and a $6.3 million provision for acquired non-PCD loans. On an adjusted basis, net income grew 6% quarter-over-quarter, though adjusted EPS declined 8% due to the 2.3 million shares issued for the acquisition.

The standout metric is net interest margin expansion to 3.04% from 2.57% in Q4 2024. Even more telling is the core margin improvement of 11 basis points to 2.68%, indicating fundamental earnings power improvement separate from acquisition accounting benefits. This margin expansion, combined with the 18% increase in average earning assets, drove a 38% jump in net interest income to $48.9 million.

Asset quality remains excellent with past-due loans at just 0.07% and non-performing loans at 0.15%. The allowance for credit losses increased to 0.96% of loans (from 0.87%), providing 6.4x coverage of non-performing loans.

With system integration completed in mid-March, management expects cost savings to materialize beginning in Q2 2025, targeting 35% of Northway's operating expenses. All regulatory capital ratios remain robust, with the common equity Tier 1 ratio at 10.78% and total risk-based capital at 13.13%, providing ample cushion for future growth initiatives.

Investment Analyst

Camden National's Northway acquisition increases scale with 20% balance sheet growth; margin expansion and pending cost synergies signal improving profitability.

Camden National's quarterly dividend remains stable at $0.42 per share (4.15% yield), providing compelling income for shareholders despite temporary earnings pressure from acquisition costs. This maintains an attractive valuation proposition while the company digests its substantial acquisition.

The bank has dramatically increased its scale through the Northway transaction, expanding loans by 19% ($769.8 million) and deposits by 21% ($964.3 million). This expansion brings operational leverage benefits along with geographic diversification across Maine and New Hampshire. The improved loan-to-deposit ratio of 87% (from 89%) enhances funding flexibility.

While current GAAP profitability metrics appear subdued (ROA of 0.43% and ROE of 4.75%), these figures are temporarily distorted by acquisition impacts. The non-GAAP adjusted ROA of 0.94% and adjusted ROTCE of 16.40% provide a clearer picture of underlying performance. With integration completed in mid-March, cost savings should begin enhancing these metrics in Q2.

The significant margin expansion to 3.04% is particularly noteworthy, with core margin improvement of 11 basis points indicating fundamental enhancement to earnings power. As acquisition accounting benefits normalize, the core margin strength positions the bank well for sustainable profitability.

Forward momentum indicators are positive, with the loan pipeline up 53% to $106.4 million. Though organic deposit growth was slightly negative (-$7.4 million), this included an expected large relationship drawdown of $61.8 million, suggesting underlying deposit trends remain stable.

The one-time tax benefit of $2.4 million from deferred tax asset revaluation masks some earnings pressures this quarter but won't recur, requiring cost synergies to drive future earnings growth.

Camden National Reaches $7.0 Billion in Total Assets as it Successfully Completes the Acquisition of Northway Financial, Inc. in the First Quarter

CAMDEN, Maine, May 6, 2025 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company") reported earnings for the quarter ended March 31, 2025 of $7.3 million and diluted earnings per share ("EPS") of $0.43. Reported earnings include the effects of the acquisition of Northway Financial, Inc. ("Northway") and its subsidiary, Northway Bank, that was completed on January 2, 2025, in an all-stock transaction through the issuance of 2.3 million shares of Camden National common stock. On a non-GAAP basis, adjusted net income increased 6% and adjusted diluted EPS decreased 8% for the quarter ended March 31, 2025, compared to the fourth quarter of 2024. Our reported non-GAAP adjusted financial results exclude the financial impact of certain non-recurring transactions associated with the acquisition of Northway.

"I am very pleased with our first quarter financial results, which demonstrate our franchise's continued strength," said Simon Griffiths, President and Chief Executive Officer of Camden National. "We reported adjusted net income of $16.0 million for the quarter as our net interest margin expanded to 3.04%, including the impact of purchase accounting. More importantly, our core net interest margin expanded 11 basis points to 2.68% for the quarter. Combining our core net interest margin momentum with the benefit of cost savings to come from the acquisition, we believe we are positioned well for solid earnings growth moving forward."

With the integration of Northway completed in mid-March 2025, the Company is on track to achieve its previously reported annual cost savings goal and meet its merger costs target. The Company expects these cost savings to begin to materialize in the second quarter of 2025 and for merger costs to continue over the coming quarters. 

Asset quality of the combined organization was strong at March 31, 2025, reflecting the ongoing credit quality of Camden National and the acquired Northway loan portfolio.

Griffiths added, "In the first quarter, we proudly joined forces with our neighbors at Northway Bank, welcoming over 100 new team members to Camden National. In mid-March, we successfully completed our systems and branch integration, bringing more than 28,000 new customers into our network. Expanding our footprint across Maine and New Hampshire allows us to better serve our customers by leveraging the power of our technology investments and resources with the personalized service and local decision-making our customers value."

FIRST QUARTER 2025 HIGHLIGHTS

• Successfully completed the acquisition of Northway on January 2, 2025, and the full customer integration of Northway Bank systems and branches in mid-March 2025.
• Fully deployed our new online account opening platform, streamlining the deposit account opening process and supporting expansion into new markets.
• GAAP return on average assets was 0.43% and GAAP return on average equity was 4.75% for the first quarter of 2025. On a non-GAAP basis, our adjusted return on average assets was 0.94% and our adjusted return on average tangible equity was 16.40% for the same period.
• Net interest margin for the first quarter of 2025 reached 3.04%, compared to 2.57% for the fourth quarter of 2024. On a non-GAAP basis, our core net interest margin was 2.68% for the first quarter of 2025, compared to 2.57% for the fourth quarter of 2024.
• Asset quality continues to be very strong, highlighted by loans 30-89 days past due of 0.07% of total loans and non-performing loans of 0.15% of total loans at March 31, 2025.
• Regulatory capital ratios continue to be well in excess of required levels. As of March 31, 2025, the common equity ratio was 9.19% and, on a non-GAAP basis, tangible common equity ratio was 6.49%, compared to 9.15% and 7.64%, respectively, at December 31, 2024. The decrease in capital between periods was driven by the acquisition of Northway during the first quarter of 2025.

NORTHWAY ACQUISITION

The Company acquired Northway and its subsidiary, Northway Bank, by merger on January 2, 2025 ("Acquisition Date"), in an all-stock transaction valued at $96.5 million through the issuance of 2.3 million shares of its common stock. The Company recorded the acquired assets and liabilities at their estimated provisional fair value, with limited exceptions, as of the Acquisition Date in accordance with GAAP. The merger with Northway provides the Company with an expanded branch network throughout New Hampshire, additional scale through the acquisition of assets, a strong, low-cost core deposit franchise, and the ability to create revenue and cost synergies.

As of the Acquisition Date, after provisional purchase accounting adjustments, the Northway merger resulted in an increase in the Company's assets of $1.2 billion, including $775.7 million in loans and $230.0 million in investments, and an increase in liabilities, including deposits of $971.6 million, which includes $799.1 million in non-maturity deposits, and an increase in borrowings of $127.6 million. Additionally, core deposit intangible ("CDI") assets provisionally estimated at $48.1 million, or 5.9% of core deposits, were created as of the Acquisition Date. In total, $59.1 million of goodwill was generated, subject to the Company finalizing its purchase accounting for the acquisition over the coming quarters.

The Company designated $103.0 million, or 12%, of the acquired loans as purchase credit deteriorated ("PCD"), and the remaining loans were designated as non-PCD as of the Acquisition Date. The Company established loan loss reserves on the PCD loans within the allowance for credit losses ("ACL") on loans totaling $3.1 million, and a $6.3 million provision for credit losses was recognized as loan loss reserves on the non-PCD loans within the ACL on loans as of the Acquisition Date.

The Company is on track to achieve its previously reported annual cost savings goal of 35% of Northway's operating expenses, of which 75% is to be realized during 2025.

During the first quarter of 2025, the Company incurred pre-tax acquisition-related costs of $7.5 million. Through March 31, 2025, the Company, including the costs Northway had incurred prior to the merger, has incurred pre-tax acquisition-related costs totaling $10.8 million and is on track to achieve its previously reported merger costs target of $13.5 million.

The Company's financial results for any period ended prior to January 2, 2025, reflect Camden National's results on a standalone basis. As a result, the Company's financial results for the first quarter of 2025 may not be directly comparable to prior reported periods.

FINANCIAL CONDITION

As of March 31, 2025, total assets were $7.0 billion, an increase of $1.2 billion since December 31, 2024, primarily due to the assets acquired in the Northway merger.

Investments totaled $1.4 billion on March 31, 2025, an increase of 21% since December 31, 2024, primarily due to the $227.4 million of securities acquired in the Northway merger. Shortly after the Acquisition Date, the Company sold certain low-yield, longer duration available-for-sale ("AFS") investment securities acquired from Northway. These investment securities were sold at their fair value of $56.0 million, and, as such, the sale did not result in any gain or loss. The Company used the cash proceeds from the sale and additional cash on hand to purchase $76.7 million of securities at current market rates to enhance future earnings and manage the duration risk within its investment portfolio. As of March 31, 2025 and December 31, 2024, the duration of the Company's total investment portfolio was 5.3 years and 5.2 years, respectively.

Loans totaled $4.9 billion on March 31, 2025, an increase of $769.8 million, or 19%, since December 31, 2024, primarily due to the acquisition of Northway. At March 31, 2025, our committed loan pipeline totaled $106.4 million, an increase of 53% over December 31, 2024. We continue to sell the majority of our residential mortgage production. For the first quarter of 2025, we sold 58% of our residential mortgage production.

Asset quality continues to be a strength of the Company's financial position. On March 31, 2025, loans 30-89 days past due were 0.07% of total loans and annualized net charge-offs for the first quarter of 2025 were 0.08% of average loans. The Company's ACL on loans was 0.96% as of March 31, 2025, compared to 0.87% as of December 31, 2024. The increase of 9 basis points resulted from the loans acquired from Northway and the change in our macroeconomic outlook. On March 31, 2025, the ACL on loans was 6.4 times total non-performing loans, compared to 5.5 times as of December 31, 2024.

Deposits totaled $5.6 billion on March 31, 2025, an increase of $964.3 million, or 21%, primarily due to the Northway acquisition. Organic deposit balances decreased $7.4 million during the first quarter of 2025, which included the expected drawdown from one large customer relationship of $61.8 million. As of March 31, 2025, our loan-to-deposit ratio was 87%, compared to 89% at December 31, 2024.

Borrowings were $628.7 million as of March 31, 2025, an increase of $83.8 million, or 15%, driven by repurchase agreements and subordinated debentures acquired in the Northway merger. Shortly after the Acquisition Date, the Company pre-paid all of Northway's Federal Home Loan Bank borrowings totaling $45.0 million to optimize its earnings and the balance sheet.

As of March 31, 2025, the Company's common equity Tier 1 risk-based capital ratio was 10.78%, Tier 1 risk-based capital ratio was 12.09%, total risk-based capital ratio was 13.13% and Tier 1 leverage ratio was 8.58%. Each of these regulatory capital ratios continue to be well in excess of regulatory capital requirements.

The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.15%, based on the Company's closing share price of $40.47 as reported by NASDAQ on March 31, 2025. The dividend will be payable on April 30, 2025, to shareholders of record on April 15, 2025.

FINANCIAL OPERATING RESULTS (Q1 2025 vs. Q4 2024)

Net income for the first quarter of 2025 was $7.3 million, a decrease of $7.3 million, or 50%, compared to the fourth quarter of 2024. The decrease between periods was driven by an increase in expenses associated with the acquisition of Northway, including (1) acquisition-related costs of $5.8 million, after tax, and (2) the recognition of $5.0 million, after tax, of provision expense to record the ACL on loans for acquired non-PCD loans. Partially offsetting these costs was a one-time decrease in income tax expense of $2.4 million upon revaluation of our deferred tax assets as our presence in New Hampshire grew due to the acquisition of Northway. Excluding the items noted above, on a non-GAAP basis, the Company reported adjusted net income for the first quarter of 2025 of $16.0 million, an increase of $961,000, or 6%, over the fourth quarter of 2024.

Net interest income for the first quarter of 2025 was $48.9 million, an increase of $13.4 million, or 38%, compared to the fourth quarter of 2024. The increase between periods was driven by net interest margin expansion of 47 basis points between periods to 3.04% for the first quarter of 2025, and an increase in average earning assets of $965.8 million, or 18%, primarily driven by the acquisition of Northway. The increase in net interest margin was driven by continued expansion of our core net interest margin between periods, which increased 11 basis points between periods to 2.68% for the first quarter, and by net fair value mark accretion on acquired interest-earning assets and liabilities, which totaled $5.0 million before taxes, contributing 36 basis points to our reported net interest margin for the first quarter of 2025.

Provision expense of $9.4 million was recorded for the first quarter of 2025, consisting of provision for loan losses of $8.9 million and provision for unfunded commitments of $556,000. The increase for the provision for loan losses was driven by the $6.3 million provision for non-PCD loans acquired and the change in our macroeconomic forecast between periods.

Non-interest income for the first quarter of 2025 was $11.2 million, a decrease of $970,000, or 8%, compared to the fourth quarter of 2024. The benefit to non-interest income from the acquisition of Northway and higher brokerage income of $256,000 was offset by the timing and volatility of certain revenue streams, including: (1) a decrease in mortgage banking income of $425,000 between periods primarily driven by the negative change in fair value on loans held for sale and residential mortgage loan pipelines, (2) timing of recognition of our annual debit card bonus of $407,000 in the fourth quarter of 2024, and (3) lower derivative income on back-to-back loan swaps and other investment income between periods of $663,000.

Non-interest expense for the first quarter of 2025 was $44.5 million, an increase of $16.1 million, or 57%, compared to the fourth quarter of 2024. The increase in non-interest expense between periods reflects the acquisition of Northway and operating two franchises for the entirety of the quarter. The Company anticipates cost savings to increase beginning in the second quarter of 2025, resulting from the completion of the Northway integration in mid-March 2025. Additionally, the Company had higher costs between periods due to an increase in acquisition-related costs of $7.1 million and an increase in amortization of CDI assets of $1.3 million as the Company recorded a CDI asset of $48.1 million with the acquisition of Northway.

The company recorded a benefit of income taxes for the quarter of $1.2 million in the first quarter, a decrease of $4.9 million in income tax expense from the fourth quarter of 2025. The Company's estimated normalized effective tax rate is 20.6%. However, upon the acquisition of Northway, the Company's estimated deferred tax rate increased, resulting in a one-time revaluation of its deferred tax assets that resulted in a tax benefit in the first quarter of 2025 of $2.4 million.

2025 ANNUAL MEETING OF SHAREHOLDERS

Camden National has scheduled its annual meeting of shareholders ("Annual Meeting") for Tuesday, May 20, 2025, at 9:00 a.m., Eastern Daylight Time. The Annual Meeting will be held virtually via a live audio webcast at www.virtualshareholdermeeting.com/CAC2025 and in person at Camden National's Hanley Center, Fox Ridge Office Park, 245 Commercial Street, Rockport, Maine 04856. We encourage all shareholders as of the March 26, 2025 record date to attend the Annual Meeting.

Q1 2025 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 2:00 p.m., Eastern Time, Tuesday, May 6, 2025 to discuss its first quarter 2025 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (Domestic):	(833) 470-1428
Live dial-in (All other locations):	(929) 526-1599
Participant access code:	893714
Live webcast:	https://events.q4inc.com/attendee/128697402

A link to the live webcast will be available on Camden National's website under "About — Investor Relations" at CamdenNational.bank before the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The conference call transcript will also be available on Camden National's website approximately two days after the conference call.

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company, with $7.0 billion in assets. Founded in 1875, Camden National Bank has 73 branches in Maine and New Hampshire, is a full-service community bank offering the latest digital banking, complemented by award-winning, personalized service. Additional information is available at CamdenNational.bank. Member FDIC. Equal Housing Lender.

Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions, including as a result of tariffs and retaliatory tariffs; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National's ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National's Annual Report on Form 10-K for the year ended December 31, 2023, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; adjusted pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; tangible book value per share; core deposits and average core deposits and core net interest margin. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.

Selected Financial Data
(unaudited)
		At or For The Three Months Ended
(In thousands, except number of shares and per share data)		March 31, 2025		December 31, 2024		March 31, 2024
Financial Condition Data
Loans		$  4,885,086		$   4,115,259		$   4,121,040
Total assets		6,964,785		5,805,138		5,794,785
Deposits		5,597,478		4,633,167		4,551,524
Shareholders' equity		640,054		531,231		501,577
Operating Data and Per Share Data
Net income		$         7,326		$        14,666		$        13,272
Adjusted net income (non-GAAP)(1)		16,047		15,086		12,553
Pre-tax, pre-provision income (non-GAAP)(1)		15,603		19,211		14,233
Adjusted pre-tax, pre-provision income (non-GAAP)(1)		23,128		19,643		14,233
Diluted EPS		0.43		1.00		0.91
Adjusted diluted EPS (non-GAAP)(1)		0.95		1.03		0.86
Profitability Ratios
Return on average assets		0.43 %		1.01 %		0.93 %
Adjusted return on average assets (non-GAAP)(1)		0.94 %		1.04 %		0.88 %
Return on average equity		4.75 %		10.99 %		10.77 %
Adjusted return on average equity (non-GAAP)(1)		10.40 %		11.30 %		10.19 %
Return on average tangible equity (non-GAAP)(1)		8.09 %		13.50 %		13.46 %
Adjusted return on average tangible equity (non-GAAP)(1)		16.40 %		13.88 %		12.74 %
GAAP efficiency ratio		74.02 %		59.62 %		65.78 %
Efficiency ratio (non-GAAP)(1)		58.72 %		58.22 %		65.21 %
Net interest margin (fully-taxable equivalent)		3.04 %		2.57 %		2.30 %
Core net interest margin (fully-taxable equivalent) (non-GAAP)(1)		2.68 %		2.57 %		2.30 %
Asset Quality Ratios
ACL on loans to total loans		0.96 %		0.87 %		0.86 %
Non-performing loans to total loans		0.15 %		0.12 %		0.14 %
Loans 30-89 days past due to total loans		0.07 %		0.05 %		0.05 %
Annualized net charge-offs to average loans		0.08 %		0.04 %		0.02 %
Capital Ratios
Common equity ratio		9.19 %		9.15 %		8.66 %
Tangible common equity ratio (non-GAAP)(1)		6.49 %		7.64 %		7.12 %
Tier 1 leverage capital ratio		8.58 %		9.90 %		9.59 %
Total risk-based capital ratio		13.13 %		15.11 %		14.52 %

(1)  This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."

 

Consolidated Statements of Condition Data
(unaudited)
(In thousands)		March 31, 2025		December 31, 2024		March 31, 2024		% Change Mar 2025 vs. Dec 2024		% Change Mar 2025 vs. Mar 2024
ASSETS
Cash, cash equivalents and restricted cash		$          219,414		$          214,963		$          176,719		2 %		24 %
Investments:
Trading securities		4,860		5,243		4,847		(7) %		— %
Available-for-sale securities, at fair value		836,130		593,749		601,576		41 %		39 %
Held-to-maturity securities, at amortized cost		516,682		517,778		540,349		— %		(4) %
Other investments		26,284		22,514		16,392		17 %		60 %
Total investments		1,383,956		1,139,284		1,163,164		21 %		19 %
Loans held for sale, at fair value		11,059		11,049		9,524		— %		16 %
Loans:
Commercial real estate		2,067,098		1,711,964		1,702,952		21 %		21 %
Commercial		487,409		382,785		397,395		27 %		23 %
Residential real estate		2,028,062		1,752,249		1,762,482		16 %		15 %
Consumer and home equity		302,517		268,261		258,211		13 %		17 %
Total loans		4,885,086		4,115,259		4,121,040		19 %		19 %
Less: allowance for credit losses on loans		(46,723)		(35,728)		(35,613)		31 %		31 %
Net loans		4,838,363		4,079,531		4,085,427		19 %		18 %
Goodwill and core deposit intangible assets		200,770		95,112		95,529		111 %		110 %
Other assets		311,223		265,199		264,422		17 %		18 %
Total assets		$       6,964,785		$       5,805,138		$       5,794,785		20 %		20 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest checking		$       1,132,648		$          925,571		$          929,314		22 %		22 %
Interest checking		1,714,944		1,483,589		1,503,045		16 %		14 %
Savings and money market		1,828,332		1,511,589		1,379,437		21 %		33 %
Certificates of deposit		703,873		532,424		585,786		32 %		20 %
Brokered deposits		217,681		179,994		153,942		21 %		41 %
Total deposits		5,597,478		4,633,167		4,551,524		21 %		23 %
Short-term borrowings		567,436		500,621		601,499		13 %		(6) %
Junior subordinated debentures		61,290		44,331		44,331		38 %		38 %
Accrued interest and other liabilities		98,527		95,788		95,854		3 %		3 %
Total liabilities		6,324,731		5,273,907		5,293,208		20 %		19 %
Commitments and Contingencies
Shareholders' Equity
Common stock, no par value		213,589		116,425		116,449		83 %		83 %
Retained earnings		508,720		509,452		488,143		— %		4 %
Accumulated other comprehensive loss:
Net unrealized loss on debt securities, net of tax		(89,613)		(104,015)		(111,357)		(14) %		(20) %
Net unrealized gain on cash flow hedging derivative      instruments, net of tax		6,953		8,958		8,587		(22) %		(19) %
Net unrecognized loss on postretirement plans, net of tax		405		411		(245)		(1) %		(265) %
Total accumulated other comprehensive loss		(82,255)		(94,646)		(103,015)		(13) %		(20) %
Total shareholders' equity		640,054		531,231		501,577		20 %		28 %
Total liabilities and shareholders' equity		$       6,964,785		$       5,805,138		$       5,794,785		20 %		20 %

 

Consolidated Statements of Income Data
(unaudited)
		For The Three Months Ended
(In thousands, except per share data)		March 31, 2025		December 31, 2024		March 31, 2024		% Change Mar 2025 vs. Dec 2024		% Change Mar 2025 vs. Mar 2024
Interest Income
Interest and fees on loans		$            66,549		$            54,035		$            51,709		23 %		29 %
Taxable interest on investments		9,772		6,925		7,027		41 %		39 %
Nontaxable interest on investments		468		461		465		2 %		1 %
Dividend income		520		408		312		27 %		67 %
Other interest income		1,086		1,662		670		(35) %		62 %
Total interest income		78,395		63,491		60,183		23 %		30 %
Interest Expense
Interest on deposits		24,621		23,408		23,178		5 %		6 %
Interest on borrowings		4,018		4,134		5,198		(3) %		(23) %
Interest on junior subordinated debentures		898		540		534		66 %		68 %
Total interest expense		29,537		28,082		28,910		5 %		2 %
Net interest income		48,858		35,409		31,273		38 %		56 %
Provision (credit) for credit losses		9,429		809		(2,102)		N.M.		N.M.
Net interest income after provision (credit) for credit      losses		39,429		34,600		33,375		14 %		18 %
Non-Interest Income
Debit card income		3,233		3,553		2,866		(9) %		13 %
Service charges on deposit accounts		2,318		2,136		2,027		9 %		14 %
Income from fiduciary services		1,838		1,834		1,749		— %		5 %
Brokerage and insurance commissions		1,697		1,441		1,239		18 %		37 %
Bank-owned life insurance		660		720		683		(8) %		(3) %
Mortgage banking income, net		508		933		808		(46) %		(37) %
Other income		942		1,549		950		(39) %		(1) %
Total non-interest income		11,196		12,166		10,322		(8) %		8 %
Non-Interest Expense
Salaries and employee benefits		20,243		15,973		15,954		27 %		27 %
Merger and acquisition costs		7,525		432		—		N.M.		N.M.
Furniture, equipment and data processing		4,731		3,660		3,629		29 %		30 %
Net occupancy costs		3,033		1,971		2,070		54 %		47 %
Debit card expense		1,690		1,344		1,264		26 %		34 %
Consulting and professional fees		1,498		786		860		91 %		74 %
Amortization of core deposit intangible assets		1,473		139		139		N.M.		N.M.
Regulatory assessments		986		804		857		23 %		15 %
Other real estate owned and collection costs, net		90		50		10		80 %		N.M.
Other expenses		3,182		3,205		2,579		(1) %		23 %
Total non-interest expense		44,451		28,364		27,362		57 %		62 %
Income before income tax (benefit) expense		6,174		18,402		16,335		(66) %		(62) %
Income Tax (Benefit) Expense		(1,152)		3,736		3,063		(131) %		(138) %
Net Income		$              7,326		$            14,666		$            13,272		(50) %		(45) %
Per Share Data
Basic earnings per share		$                0.43		$                 1.01		$                 0.91		(57) %		(53) %
Diluted earnings per share		$                0.43		$                 1.00		$                 0.91		(57) %		(53) %

N.M. = Not meaningful

 

Quarterly Average Balance and Yield/Rate Analysis
(unaudited)
		Average Balance						Yield/Rate
		For The Three Months Ended						For The Three Months Ended
(Dollars in thousands)		March 31, 2025		December 31, 2024		March 31, 2024		March 31, 2025		December 31, 2024		March 31, 2024
Assets
Interest-earning assets:
Interest-bearing deposits in other banks      and other interest-earning assets		$          84,211		$       130,405		$          44,487		4.44 %		4.49 %		4.34 %
Investments - taxable		1,375,818		1,150,351		1,187,699		3.04 %		2.61 %		2.53 %
Investments - nontaxable(1)		62,485		61,929		62,385		3.79 %		3.77 %		3.78 %
Loans(2):
Commercial real estate		2,065,534		1,707,914		1,682,599		5.69 %		5.36 %		4.94 %
Commercial(1)		409,037		359,954		390,019		6.37 %		6.29 %		6.05 %
Municipal(1)		90,554		15,237		14,653		6.17 %		5.30 %		4.40 %
Residential real estate		2,034,024		1,766,143		1,773,077		4.71 %		4.45 %		4.41 %
Consumer and home equity		303,147		267,065		257,305		7.39 %		7.52 %		7.89 %
Total loans		4,902,296		4,116,313		4,117,653		5.45 %		5.19 %		5.00 %
Total interest-earning assets		6,424,810		5,458,998		5,412,224		4.91 %		4.61 %		4.44 %
Other assets		477,556		315,181		305,756
Total assets		$     6,902,366		$    5,774,179		$     5,717,980
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking		$     1,107,398		$       948,015		$        933,321		— %		— %		— %
Interest checking		1,703,056		1,449,281		1,490,185		1.85 %		2.29 %		2.53 %
Savings		894,803		726,179		599,791		0.98 %		1.06 %		0.20 %
Money market		918,637		779,893		764,585		2.63 %		3.09 %		3.29 %
Certificates of deposit		706,851		537,922		582,806		3.72 %		3.67 %		3.77 %
Total deposits		5,330,745		4,441,290		4,370,688		1.70 %		1.91 %		1.97 %
Borrowings:
Brokered deposits		196,510		170,638		133,385		4.62 %		4.93 %		5.31 %
Customer repurchase agreements		236,437		182,017		182,487		1.29 %		1.58 %		1.60 %
Junior subordinated debentures		61,282		44,331		44,331		5.94 %		4.84 %		4.85 %
Other borrowings		348,402		325,000		401,683		3.80 %		4.17 %		4.40 %
Total borrowings		842,631		721,986		761,886		3.44 %		3.74 %		3.96 %
Total funding liabilities		6,173,376		5,163,276		5,132,574		1.94 %		2.16 %		2.27 %
Other liabilities		103,201		80,144		89,893
Shareholders' equity		625,789		530,759		495,513
Total liabilities & shareholders' equity		$     6,902,366		$    5,774,179		$     5,717,980
Net interest rate spread (fully-taxable equivalent)								2.97 %		2.45 %		2.17 %
Net interest margin (fully-taxable equivalent)								3.04 %		2.57 %		2.30 %
Core net interest margin (fully-taxable equivalent)(3)								2.68 %		2.57 %		2.30 %

(1)  Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

(2)  Non-accrual loans and loans held for sale are included in total average loans.

(3)  This is a non-GAAP measure. Please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."

 

Loan And Deposit Organic Growth Data
(Unaudited)
		(A)		(B)		(C)		(D) = (A) - (B) - (C)
(In thousands)		March 31, 2025		December 31, 2024		Northway Acquisition Purchase Accounting(1)		Three Months Ended March 31, 2025 Organic Growth
Loans:
Commercial real estate		$          2,067,098		$         1,711,964		$             360,272		$                (5,138)		— %
Commercial		487,409		382,785		106,487		(1,863)		— %
Residential real estate		2,028,062		1,752,249		273,349		2,464		— %
Consumer and home equity		302,517		268,261		35,555		(1,299)		— %
Total loans		$          4,885,086		$         4,115,259		$             775,663		$               (5,836)		— %
Deposits:
Non-interest checking		$          1,132,648		$            925,571		$             197,320		$                 9,757		1 %
Interest checking		1,714,944		1,483,589		315,891		(84,536)		(6) %
Savings and money market		1,828,332		1,511,589		285,889		30,854		2 %
Certificates of deposit		703,873		532,424		172,573		(1,124)		— %
Brokered deposits		217,681		179,994		—		37,687		21 %
Total deposits		$          5,597,478		$         4,633,167		$             971,673		$               (7,362)		— %

(1)  Represents fair value marks recorded on loans and deposits as of the Acquisition Date, January 2, 2025

 

Asset Quality Data
(unaudited)
(In thousands)		At or for the Three Months Ended March 31, 2025		At or for the Year Ended December 31, 2024		At or for the Nine Months Ended September 30, 2024		At or for the Six Months Ended June 30, 2024		At or for the Three Months Ended March 31, 2024
Non-accrual loans:
Residential real estate		$              4,322		$              1,891		$              2,497		$              2,497		$              2,473
Commercial real estate		271		559		130		79		205
Commercial		1,803		1,927		2,057		4,409		1,980
Consumer and home equity		855		452		666		810		1,000
Total non-accrual loans		7,251		4,829		5,350		7,795		5,658
Accruing loans past due 90 days		—		—		—		—		—
Total non-performing loans		7,251		4,829		5,350		7,795		5,658
Other real estate owned		72		—		—		—		—
Total non-performing assets		$              7,323		$              4,829		$              5,350		$              7,795		$              5,658
Loans 30-89 days past due:
Residential real estate		$              1,754		$                 558		$                 216		$                 400		$                 797
Commercial real estate		380		689		239		678		92
Commercial		767		393		578		539		537
Consumer and home equity		440		621		358		628		618
Total loans 30-89 days past due		$              3,341		$              2,261		$              1,391		$              2,245		$              2,044
ACL on loans at the beginning of the period		$            35,728		$             36,935		$            36,935		$            36,935		$            36,935
ACL established on acquired PCD loans		3,071		—		—		—		—
Provision (credit) for loan losses		8,873		53		(693)		(976)		(1,164)
Charge-offs:
Residential real estate		4		—		—		—		—
Commercial real estate		191		—		—		—		—
Commercial		896		1,784		1,157		763		309
Consumer and home equity		29		99		83		55		36
Total charge-offs		1,120		1,883		1,240		818		345
Total recoveries		(171)		(623)		(412)		(271)		(187)
Net charge-offs		949		1,260		828		547		158
ACL on loans at the end of the period		$            46,723		$            35,728		$            35,414		$            35,412		$            35,613
Components of ACL:
ACL on loans		$            46,723		$            35,728		$            35,414		$            35,412		$            35,613
ACL on off-balance sheet credit      exposures(1)		3,362		2,806		2,743		2,787		2,325
ACL, end of period		$            50,085		$            38,534		$            38,157		$            38,199		$            37,938
Ratios:
Non-performing loans to total loans		0.15 %		0.12 %		0.13 %		0.19 %		0.14 %
Non-performing assets to total assets		0.11 %		0.08 %		0.09 %		0.14 %		0.10 %
ACL on loans to total loans		0.96 %		0.87 %		0.86 %		0.86 %		0.86 %
Net charge-offs to average loans      (annualized):
Quarter-to-date		0.08 %		0.04 %		0.03 %		0.04 %		0.02 %
Year-to-date		0.08 %		0.03 %		0.03 %		0.03 %		0.02 %
ACL on loans to non-performing loans		644.37 %		553.07 %		506.28 %		367.31 %		466.69 %
Loans 30-89 days past due to total loans		0.07 %		0.05 %		0.03 %		0.05 %		0.05 %

(1)  Presented within accrued interest and other liabilities on the consolidated statements of condition.

 

Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)
Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity:
		For the Three Months Ended
(In thousands, except number of shares, per share data and ratios)		March 31, 2025		December 31, 2024		March 31, 2024
Adjusted Net Income:
Net income, as presented		$             7,326		$           14,666		$           13,272
Adjustments before taxes:
Provision for non-PCD acquired loans		6,294		—		—
Provision for acquired unfunded commitments		249		—		—
Merger and acquisition costs		7,525		432		—
Signature Bank bond recovery		—		—		(910)
Total adjustments before taxes		14,068		432		(910)
Tax impact of above adjustments(1)		(2,926)		(12)		191
Adjustment for deferred tax valuation adjustment(2)		(2,421)		—		—
Adjusted net income		$           16,047		$           15,086		$           12,553
Adjusted Diluted Earnings per Share:
Diluted earnings per share, as presented		$               0.43		$               1.00		$               0.91
Adjustments before taxes:
Provision for non-PCD acquired loans		0.37		—		—
Provision for acquired unfunded commitments		0.01		—		—
Merger and acquisition costs		0.45		0.03		—
Signature Bank bond recovery		—		—		(0.06)
Total adjustments before taxes		0.83		0.03		(0.06)
Tax impact of above adjustments(1)		(0.17)		—		0.01
Adjustment for deferred tax valuation adjustment(2)		(0.14)		—		—
Adjusted diluted earnings per share		$               0.95		$               1.03		$               0.86
Adjusted Return on Average Assets:
Return on average assets, as presented		0.43 %		1.01 %		0.93 %
Adjustments before taxes:
Provision for non-PCD acquired loans		0.37 %		— %		— %
Provision for acquired unfunded commitments		0.01 %		— %		— %
Merger and acquisition costs		0.44 %		0.03 %		— %
Signature Bank bond recovery		— %		— %		(0.06) %
Total adjustments before taxes		0.82 %		0.03 %		(0.06) %
Tax impact of above adjustments(1)		(0.17) %		— %		0.01 %
Adjustment for deferred tax valuation adjustment(2)		(0.14) %		— %		— %
Adjusted return on average assets		0.94 %		1.04 %		0.88 %
Adjusted Return on Average Equity:
Return on average equity, as presented		4.75 %		10.99 %		10.77 %
Adjustments before taxes:
Provision for non-PCD acquired loans		4.08 %		— %		— %
Provision for acquired unfunded commitments		0.16 %		— %		— %
Merger and acquisition costs		4.88 %		0.32 %		— %
Signature Bank bond recovery		— %		— %		(0.74) %
Total adjustments before taxes		9.12 %		0.32 %		(0.74) %
Tax impact of above adjustments(1)		(1.90) %		(0.01) %		0.16 %
Adjustment for deferred tax valuation adjustment(2)		(1.57) %		— %		— %
Adjusted return on average equity		10.40 %		11.30 %		10.19 %

(1)	Assumed a 21% tax rate.
(2)	A One-time Deferred Tax Valuation Adjustment of $2.4 Million Resulted from a Change in the Apportionment of State Income Taxes Due to the Northway Merger.

 

Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income
		For the Three Months Ended
(In thousands)		March 31, 2025		December 31, 2024		March 31, 2024
Net income, as presented		$                7,326		$              14,666		$              13,272
Adjustment for provision (credit) for credit losses		9,429		809		(2,102)
Adjustment for income tax (benefit) expense		(1,152)		3,736		3,063
Pre-tax, pre-provision income		$              15,603		$              19,211		$              14,233
Adjustment for merger and acquisition costs		7,525		432		—
Adjusted pre-tax, pre-provision income		$              23,128		$              19,643		$              14,233

 

Efficiency Ratio:
		For the Three Months Ended
(Dollars in thousands)		March 31, 2025		December 31, 2024		March 31, 2024
Non-interest expense, as presented		$           44,451		$           28,364		$           27,362
Adjustment for merger and acquisition costs		(7,525)		(432)		—
Adjustment for amortization of core deposit intangible assets		$           (1,473)		$              (139)		$              (139)
Adjusted non-interest expense		$           35,453		$           27,793		$           27,223
Net interest income, as presented		$           48,858		$           35,409		$           31,273
Adjustment for the effect of tax-exempt income(1)		326		162		150
Non-interest income, as presented		11,196		12,166		10,322
Adjusted net interest income plus non-interest income		$           60,380		$           47,737		$           41,745
GAAP efficiency ratio		74.02 %		59.62 %		65.78 %
Non-GAAP efficiency ratio		58.72 %		58.22 %		65.21 %

(1)  Assumed a 21% tax rate.

 

Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity:
		For the Three Months Ended
(Dollars in thousands)		March 31, 2025		December 31, 2024		March 31, 2024
Return on Average Tangible Equity:
Net income, as presented		$             7,326		$           14,666		$           13,272
Adjustment for amortization of core deposit intangible assets		1,473		139		139
Tax impact of above adjustment(1)		(309)		(29)		(29)
Net income, adjusted for amortization of core deposit intangible assets		$             8,490		$           14,776		$           13,382
Average equity, as presented		$         625,789		$         530,759		$         495,513
Adjustment for average goodwill and core deposit intangible assets		(200,125)		(95,179)		(95,604)
Average tangible equity		$         425,664		$         435,580		$         399,909
Return on average equity		4.75 %		10.99 %		10.77 %
Return on average tangible equity		8.09 %		13.50 %		13.46 %
Adjusted Return on Average Tangible Equity:
Adjusted net income (refer to the "Adjusted Net Income" non-GAAP reconciliation table)		$           16,047		$           15,086		$           12,553
Adjustment for amortization of core deposit intangible assets		1,473		139		139
Tax impact of above adjustment(1)		(309)		(29)		(29)
Adjusted net income, adjusted for amortization of core deposit intangible assets		$           17,211		$           15,196		$           12,663
Adjusted return on average tangible equity		16.40 %		13.88 %		12.74 %

(1)  Assumed a 21% tax rate.

 

Tangible Book Value Per Share and Tangible Common Equity Ratio:
(In thousands, except number of shares, per share data and ratios)		March 31, 2025		December 31, 2024		March 31, 2024
Tangible Book Value Per Share:
Shareholders' equity, as presented		$         640,054		$         531,231		$         501,577
Adjustment for goodwill and core deposit intangible assets		(200,770)		(95,112)		(95,529)
Tangible shareholders' equity		$         439,284		$         436,119		$         406,048
Shares outstanding at period end		16,885,571		14,579,339		14,593,830
Book value per share		$             37.91		$             36.44		$             34.37
Tangible book value per share		26.02		29.91		27.82
Tangible Common Equity Ratio:
Total assets		$      6,964,785		$      5,805,138		$      5,794,785
Adjustment for goodwill and core deposit intangible assets		(200,770)		(95,112)		(95,529)
Tangible assets		$      6,764,015		$      5,710,026		$      5,699,256
Common equity ratio		9.19 %		9.15 %		8.66 %
Tangible common equity ratio		6.49 %		7.64 %		7.12 %

 

Core Deposits:
(In thousands)		March 31, 2025		December 31, 2024		March 31, 2024
Total deposits		$         5,597,478		$         4,633,167		$         4,551,524
Adjustment for certificates of deposit		(703,873)		(532,424)		(585,786)
Adjustment for brokered deposits		(217,681)		(179,994)		(153,942)
Core deposits		$         4,675,924		$         3,920,749		$         3,811,796

 

Average Core Deposits:
		For the Three Months Ended
(In thousands)		March 31, 2025		December 31, 2024		March 31, 2024
Total average deposits, as presented(1)		$         5,330,745		$         4,441,290		$         4,370,688
Adjustment for average certificates of deposit		(706,851)		(537,922)		(582,806)
Average core deposits		$         4,623,894		$         3,903,368		$         3,787,882

(1)	Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.

 

Core Net Interest Margin (fully-taxable equivalent):
		For the Three Months Ended
(In thousands)		March 31, 2025		December 31, 2024		March 31, 2024
Net interest income, tax equivalent, as presented		3.04 %		2.57 %		2.30 %
Net accretion income on loans from purchase accounting(1)		(0.30) %		—		—
Net accretion income on investments from purchase accounting(2)		(0.07) %		—		—
Net amortization on time deposits and borrowings from purchase accounting(3)		0.01 %		—		—
Core net interest margin (fully-taxable equivalent)		2.68 %		2.57 %		2.30 %

(1)   Impact from loan fair value mark accretion of $4.3 million.

(2)   Impact from investment fair value accretion of $831,000.

(3)   Impact from time deposits and borrowings amortization of $131,000.

 

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SOURCE Camden National Corporation

FAQ

What was Camden National's (CAC) earnings per share in Q1 2025?

Camden National reported diluted earnings per share (EPS) of $0.43 in Q1 2025.

How much was the Northway Financial acquisition worth?

The Northway Financial acquisition was an all-stock transaction valued at $96.5 million, completed through the issuance of 2.3 million shares of Camden National common stock.

What is Camden National's (CAC) dividend for Q1 2025?

Camden National announced a quarterly cash dividend of $0.42 per share, representing a 4.15% annualized yield based on the March 31, 2025 closing price.

How much in cost savings does Camden National expect from the Northway merger?

Camden National expects to achieve annual cost savings of 35% of Northway's operating expenses, with 75% to be realized during 2025.

What was Camden National's (CAC) total assets after the Northway acquisition?

Following the Northway acquisition, Camden National's total assets reached $7.0 billion, representing an increase of $1.2 billion since December 31, 2024.