Core Viewpoint - Camden National Corporation will report its financial and operating results for the quarter ended June 30, 2025, on July 29, 2025, with a conference call and webcast scheduled for the same day [1]. Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with approximately $7.0 billion in assets [3]. - Founded in 1875, Camden National Bank operates 72 banking centers in Maine and New Hampshire, providing full-service community banking and digital banking services [3]. - The company also offers comprehensive wealth management, investment, and financial planning services through Camden National Wealth Management [4].

1 Forward-Looking Statements and Non-GAAP Financial Measures This presentation may contain "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 "b ...

Core Points - Camden National Corporation declared a quarterly dividend of $0.42 per share, resulting in an annualized dividend yield of 4.23% based on the closing price of $39.72 per share on June 23, 2025 [1] - The dividend is scheduled to be paid on July 31, 2025, to shareholders of record as of July 15, 2025 [1] Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with total assets amounting to $7.0 billion [2] - The company operates 72 banking centers in Maine and New Hampshire, providing full-service community banking and digital banking services [2] - Camden National Wealth Management offers comprehensive wealth management, investment, and financial planning services [3]

Acquisition and Integration - The Company completed the acquisition of Northway Financial, Inc. on January 2, 2025, in an all-stock transaction valued at $96.5 million, issuing 2.3 million shares, representing 14% of its outstanding shares[31][32]. - The acquisition added 17 branches in New Hampshire, increasing the Company's total to 73 branches and assets to $7.0 billion as of March 31, 2025[33]. - The Company generated $59.1 million of provisional goodwill from the Northway acquisition, reflecting expected synergies from operational integration[35]. - The fair value of identified assets acquired totaled $1.183 billion, with total liabilities assumed at $1.121 billion, resulting in net identified assets of $62.6 million[36]. - The Company incurred $7.5 million in non-recurring merger-related costs during the three months ended March 31, 2025[34]. - The acquisition was structured as a tax-free reorganization for federal income tax purposes, maintaining the tax basis of the acquired assets[46]. - The Company expects the expanded presence in New Hampshire to drive profitability and shareholder value through growth opportunities and broader product offerings[33]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $60,054,000, compared to $56,538,000 for the same period in 2024, representing an increase of approximately 8.9%[52]. - Net income for the three months ended March 31, 2025, was $16,047,000, up from $7,558,000 in 2024, indicating a significant increase of approximately 112.8%[52]. - Total non-interest income for the three months ended March 31, 2025, was $11,196,000, an increase of 8.5% from $10,322,000 in 2024[159]. - Debit card interchange income rose to $3,233,000 in Q1 2025, up 12.8% from $2,866,000 in Q1 2024[159]. - Net income for the three months ended March 31, 2025, was $7,326,000, a decrease of 44.8% compared to $13,272,000 in the same period of 2024[161]. - Basic and diluted earnings per share (EPS) for Q1 2025 were both $0.43, down from $0.91 in Q1 2024[161]. Loan Portfolio and Credit Quality - The total loan portfolio as of March 31, 2025, was $4.885 billion, an increase from $4.115 billion as of December 31, 2024, representing a growth of approximately 18.7%[72]. - Commercial loans increased to $2.555 billion as of March 31, 2025, up from $2.095 billion at the end of 2024, marking a growth of about 22%[72]. - Retail loans also saw an increase, rising to $2.331 billion as of March 31, 2025, compared to $2.021 billion at the end of 2024, which is an increase of approximately 15.4%[72]. - The total amount of loans past due over 90 days and accruing was $7,087,000 as of March 31, 2025, compared to $5,855,000 as of December 31, 2024, reflecting an increase of 20.9%[97]. - The total allowance for credit losses (ACL) on loans was $46.7 million, an increase from $35.7 million as of December 31, 2024, reflecting a provision for loan losses of $8.9 million during the first quarter[86]. - The Company reported charge-offs totaling $1.1 million for the first quarter of 2025, compared to $345,000 in the same period of 2024[86]. - The Company’s total exposure to the lessors of residential buildings and nonresidential buildings industries was both 13% of total loans as of March 31, 2025[89]. - The risk category of loans by portfolio segment indicates that Grades 1 through 6 represent low to moderate risks, while Grades 8 to 10 indicate increasing levels of credit risk[93]. Securities and Investments - The fair value of the Company's trading securities as of March 31, 2025, was $4.9 million, down from $5.2 million as of December 31, 2024[53]. - The total amortized cost of AFS debt securities as of March 31, 2025, was $898,145,000, with an estimated fair value of $836,130,000, reflecting unrealized losses of $67,345,000[54]. - The Company sold AFS debt securities for proceeds of $56,432,000 during the three months ended March 31, 2025, with no gross realized gains or losses recognized[57]. - The total AFS debt securities with gross unrealized losses as of March 31, 2025, amounted to $497,221,000, with total unrealized losses of $67,345,000[58]. - The Company’s AFS debt securities are primarily comprised of high credit quality obligations, with a history of zero to near-zero credit loss[58]. - The estimated fair value of HTM debt securities as of March 31, 2025, is $478,172,000, compared to a carrying amount of $516,682,000, indicating a fair value discount of approximately 7.4%[186]. Capital and Regulatory Compliance - As of March 31, 2025, Camden National Corporation's total risk-based capital ratio was 13.13%, exceeding the minimum requirement of 10.50%[150]. - The Tier 1 risk-based capital ratio for Camden National Corporation was 12.09%, above the minimum requirement of 6.00%[150]. - The common equity Tier 1 risk-based capital ratio was 10.78%, surpassing the minimum requirement of 4.5%[150]. - The Company and Bank's regulatory capital ratios exceeded the capital conservation buffer requirements as of March 31, 2025[150]. - The Company actively monitors its regulatory capital and risk-weighted assets to adapt to changes in GAAP and regulatory standards[153]. Derivatives and Risk Management - The Company manages economic risks, including interest rate, liquidity, and credit risk primarily through the management of its assets and liabilities[126]. - The Company utilizes interest rate swaps as part of its interest rate risk management strategy to stabilize interest income and expense[127]. - The total notional amount of derivatives not designated as hedging instruments was $396.886 million as of March 31, 2025, with a fair value of $13.122 million[136]. - The Company recognized a total loss of $(96) thousand from derivative financial instruments not designated as hedging instruments for the three months ended March 31, 2025[139]. - The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral where appropriate[140]. Goodwill and Intangible Assets - The carrying value of goodwill increased to $153,770,000 as of March 31, 2025, up from $94,697,000 at the end of 2024, due to the acquisition of Northway which generated $59,073,000 of goodwill[106]. - The carrying value of core deposit intangible assets was $47,000,000 as of March 31, 2025, reflecting an increase from $415,000 at the end of 2024 due to the acquisition of Northway[107]. - The company conducts an annual impairment test of goodwill, with no indications of impairment noted for the three months ended March 31, 2025[183].

Group 1: Company Overview - Camden National (CAC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates [1][3] - The Zacks rating system is based on changes in earnings estimates, which are a significant factor influencing stock prices [2][4] Group 2: Earnings Estimates - For the fiscal year ending December 2025, Camden National is expected to earn $4.39 per share, reflecting a 20.3% increase from the previous year [8] - Over the past three months, the Zacks Consensus Estimate for Camden National has risen by 3.2% [8] Group 3: Market Implications - The upgrade to Zacks Rank 2 positions Camden National in the top 20% of Zacks-covered stocks, suggesting potential for near-term price appreciation [10] - Rising earnings estimates and the subsequent rating upgrade indicate an improvement in Camden National's underlying business, which could lead to higher stock prices as investors respond positively [5][10]

Core Viewpoint - Camden National (CAC) shares have increased by 7.8% over the past four weeks, closing at $39.36, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $50.25, representing a 27.7% upside [1] Price Targets and Analyst Consensus - The average price targets range from a low of $47 to a high of $53, with a standard deviation of $3.20, indicating a relatively tight clustering of estimates. The lowest estimate suggests a 19.4% increase, while the highest points to a 34.7% upside [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research into fundamental drivers [9] Earnings Estimates and Analyst Optimism - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases. The Zacks Consensus Estimate for the current year has risen by 0.6% over the past month, with one estimate increasing and no negative revisions [11][12] - CAC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside in the near term [13]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $7,300,000 for Q1 2025, with diluted EPS of $0.43, reflecting a pretax charge of $7,500,000 for acquisition-related costs and a one-time loan loss provision of $6,500,000 [17][18] - Adjusted net income increased by 6% compared to the previous quarter, while adjusted diluted EPS decreased by 8% due to the issuance of approximately 2,300,000 shares for the Northway acquisition [17][18] - The net interest margin reached 3.04%, a 47 basis point increase from the previous quarter, with core net interest margin expanding by 11 basis points to 2.68% [18][19] Business Line Data and Key Metrics Changes - The company successfully integrated Northway Financial, adding over 28,000 new customers and 100 new team members, with total assets reaching €7,000,000,000 [5][6] - Noninterest income for Q1 2025 was $11,200,000, down 8% from the previous quarter, attributed to seasonal factors [21] - Noninterest expense totaled $44,500,000, including acquisition-related costs, with core operating expenses at $35,400,000, up from $27,800,000 in the previous quarter [21] Market Data and Key Metrics Changes - The loan portfolio totaled $4,900,000,000, with organic loan balances remaining flat during the quarter, while deposits stood at $5,600,000,000, also flat [24][25] - The company reported strong activity in its mortgage pipeline, with a total pipeline of $83,000,000, and commercial loans showing momentum with a pipeline of $97,000,000 [40] Company Strategy and Development Direction - The company aims to achieve annual cost savings of 35% from the Northway acquisition, with expectations to realize 75% of this goal during 2025 [6][7] - The focus remains on deepening customer relationships and expanding presence in New Hampshire and Maine, leveraging technology investments for growth [12][13] - The management team expressed confidence in the company's ability to perform across various economic scenarios, emphasizing soundness, profitability, and growth as strategic pillars [14][13] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic uncertainty exists, the company is well-positioned for solid core earnings growth, with proactive measures taken to manage credit risks [10][11] - The company anticipates continued core net interest margin expansion and expects to benefit from potential Fed rate cuts, estimating a $1.2 million benefit from a 25 basis point cut [36][37] - Management remains optimistic about loan growth, projecting low single-digit growth for the year, with potential for improvement as market conditions stabilize [39][61] Other Important Information - The company filed a shelf registration statement in March for capital planning purposes [26] - The integration of Northway has been smooth, with strong employee retention and positive client feedback [52][53] Q&A Session Summary Question: Core margin expectations for the second quarter - Management expects core net interest margin to expand by an additional 2 to 5 basis points, targeting a range of 2.70% to 2.75% [32] Question: Purchase accounting accretion - Management indicated that the $5,000,000 of net accretion income feels like a solid midpoint, with potential for acceleration depending on market conditions [34] Question: Loan growth outlook and potential runoff from Northway - Management confirmed that the low single-digit loan growth forecast does not factor in any runoff from Northway, as both companies share a strong credit culture [60] Question: Provisioning and reserve levels - Management acknowledged the potential for higher provisioning to maintain reserve levels in light of economic uncertainty, with a thoughtful approach to provisioning [63]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $7,300,000 for Q1 2025, with diluted EPS of $0.43, while adjusted net income was $16,000,000, reflecting a 6% increase from the previous quarter [7][16][17] - Non-GAAP core diluted EPS decreased by 8% compared to the previous quarter [7][17] - The net interest margin reached 3.04%, a 47 basis point increase from the previous quarter, with core net interest margin expanding by 11 basis points to 2.68% [8][17][18] Business Line Data and Key Metrics Changes - The company successfully integrated Northway Financial, adding over 28,000 new customers and 100 new team members [5] - The company anticipates achieving 75% of its annual cost-saving goal of 35% of Northway's operating expenses during 2025 [6] - Noninterest income for Q1 2025 was $11,200,000, down 8% from the previous quarter, attributed to seasonal factors [21] Market Data and Key Metrics Changes - The loan portfolio totaled $4,900,000,000, with organic loan balances remaining flat during the first quarter [23][24] - Deposits amounted to $5,600,000,000, also flat, reflecting seasonal trends [24] Company Strategy and Development Direction - The company is focused on deepening customer relationships and expanding its presence in New Hampshire and Maine [12][13] - The management team is committed to maintaining soundness, profitability, and growth as strategic pillars for sustainable long-term performance [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the loan portfolio, with no material signs of credit deterioration observed [9][10] - The company is well-positioned to capitalize on future Fed rate cuts, projecting a benefit of approximately $1.2 million from a 25 basis point rate cut [35] Other Important Information - The company has filed a shelf registration statement for capital planning purposes [25] - The integration of Northway Financial has been smooth, with strong employee retention and positive client feedback [54] Q&A Session Summary Question: Core margin expectations for the second quarter - Management expects core net interest margin to expand by an additional 2 to 5 basis points, targeting a range of 2.75% [31] Question: Purchase accounting accretion - Management indicated that the $5,000,000 of net accretion income feels like a solid midpoint for future expectations [32][34] Question: Loan growth outlook and Northway impact - Management confirmed that the low single-digit loan growth outlook does not factor in any runoff from Northway, as both companies share a strong credit culture [60][62] Question: Provisioning and reserve levels - Management acknowledged the potential for higher provisioning in response to macroeconomic uncertainties, with a focus on maintaining adequate reserves [63]

Financial Performance - Camden National reported $60.05 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 44.4% [1] - EPS for the same period was $0.95, compared to $0.86 a year ago, indicating growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $57.16 million by 5.06%, while the EPS fell short of the consensus estimate of $0.99 by 4.04% [1] Key Metrics - Net interest margin was 3%, surpassing the two-analyst average estimate of 2.9% [4] - Annualized net charge-offs to average loans were 0.1%, compared to the estimated 0% by analysts [4] - Average balance of total interest-earning assets was $6.42 billion, slightly below the two-analyst average estimate of $6.44 billion [4] - Efficiency ratio (GAAP) was 74%, better than the estimated 81.9% by analysts [4] - Total non-interest income was $11.20 million, below the estimated $11.89 million [4] - Net interest income was $48.86 million, exceeding the estimated $45.94 million [4] Stock Performance - Shares of Camden National have returned +9% over the past month, while the Zacks S&P 500 composite increased by +11.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Camden National reported quarterly earnings of $0.95 per share, missing the Zacks Consensus Estimate of $0.99 per share, but showing an increase from $0.86 per share a year ago, resulting in an earnings surprise of -4.04% [1] - The company posted revenues of $60.05 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.06%, compared to year-ago revenues of $41.6 million [2] - Camden National has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] Group 2 - The stock has underperformed the market, losing about 7.3% since the beginning of the year, compared to the S&P 500's decline of -3.9% [3] - The current consensus EPS estimate for the coming quarter is $1.08 on revenues of $59.44 million, and for the current fiscal year, it is $4.36 on revenues of $242.86 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 19% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]