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]

Core Points - Camden National Corporation successfully completed the acquisition of Northway Financial, Inc. on January 2, 2025, resulting in total assets reaching $7.0 billion as of March 31, 2025 [1][13] - The company reported net income of $7.3 million and diluted earnings per share (EPS) of $0.43 for the first quarter of 2025, reflecting a decrease of 50% compared to the previous quarter [21] - Adjusted net income for the first quarter was $16.0 million, a 6% increase from the fourth quarter of 2024, despite a decrease in adjusted diluted EPS by 8% [2][21] Financial Highlights - Total assets increased by $1.2 billion since December 31, 2024, primarily due to the Northway acquisition [13] - Loans totaled $4.9 billion, an increase of 19% since December 31, 2024, driven by the acquisition [15] - Deposits reached $5.6 billion, a 21% increase, with organic deposit balances decreasing slightly during the quarter [17] Acquisition Details - The acquisition of Northway was valued at $96.5 million, executed through the issuance of 2.3 million shares of Camden National common stock [6] - The merger resulted in an increase of $775.7 million in loans and $230.0 million in investments [7] - The company expects to achieve annual cost savings of 35% of Northway's operating expenses, with 75% of these savings anticipated to be realized in 2025 [9] Operational Performance - The net interest margin for the first quarter of 2025 was 3.04%, up from 2.57% in the fourth quarter of 2024, with core net interest margin increasing to 2.68% [11][22] - Non-interest income decreased by 8% to $11.2 million compared to the previous quarter, influenced by various factors including mortgage banking income [24] - Non-interest expenses rose by 57% to $44.5 million, largely due to acquisition-related costs and the operation of two franchises [25][26] Asset Quality - Asset quality remained strong, with loans 30-89 days past due at 0.07% and non-performing loans at 0.15% of total loans as of March 31, 2025 [16] - The allowance for credit losses (ACL) on loans was 0.96%, an increase from 0.87% at the end of 2024, reflecting the loans acquired from Northway [16] Capital Ratios - As of March 31, 2025, the common equity ratio was 9.19%, and the tangible common equity ratio was 6.49%, both well above regulatory requirements [19]

Financial Performance - Camden National Corporation reported first quarter 2025 earnings of $7.3 million and diluted EPS of $0.43, with adjusted net income increasing 6% compared to Q4 2024[1][19]. - Net income for Q1 2025 was $7.33 million, a decrease of 50.1% from $14.67 million in Q4 2024[35]. - Adjusted net income (non-GAAP) was $16.05 million, up from $15.09 million in Q4 2024, reflecting a growth of 6.3%[35]. - Diluted EPS for Q1 2025 was $0.43, down from $1.00 in Q4 2024, indicating a decline of 57.0%[35]. - Return on average assets decreased to 0.43% from 1.01% in Q4 2024[35]. - Net income decreased by 50% to $7,326,000 from $13,272,000 year-over-year, impacted by increased expenses and lower income before tax[39]. - Basic earnings per share fell by 57% to $0.43 compared to $0.91 in the same quarter last year[39]. - Adjusted net income for Q1 2025 was $16,047,000, up from $15,086,000 in Q4 2024, reflecting a 6.4% increase[48]. - Net income for the three months ended March 31, 2025, was $7,326,000, a decrease from $14,666,000 in the previous quarter[52]. Asset and Loan Growth - The acquisition of Northway Financial, Inc. was completed on January 2, 2025, valued at $96.5 million, resulting in an increase of $1.2 billion in total assets[1][6][11]. - Total assets increased to $6.96 billion as of March 31, 2025, up from $5.80 billion at December 31, 2024, representing a growth of 19.9%[35]. - Total loans reached $4.9 billion, a 19% increase since December 31, 2024, primarily due to the Northway acquisition[11][13]. - Loans reached $4.89 billion, a rise of 18.7% compared to $4.12 billion at December 31, 2024[35]. - Total loans reached $4,902,296 thousand, a 19.1% increase compared to $4,116,313 thousand in the previous quarter[41]. - Net loans rose by 19% to $4,838,363,000 from $4,085,427,000 year-over-year, driven by growth in commercial real estate and residential real estate loans[37]. Deposit Growth - Deposits totaled $5.6 billion, an increase of $964.3 million, or 21%, primarily due to the Northway acquisition[15]. - Deposits grew to $5.60 billion, an increase of 20.9% from $4.63 billion at December 31, 2024[35]. - Total deposits increased to $5,597,478,000 as of March 31, 2025, compared to $4,633,167,000 at the end of December 2024[54]. - Core deposits reached $4,675,924,000, reflecting a significant increase from $3,920,749,000 in the previous quarter[54]. - Average core deposits for the three months ended March 31, 2025, were $4,623,894,000, compared to $3,903,368,000 in the previous quarter[55]. Interest Income and Margin - Net interest margin expanded to 3.04% for Q1 2025, up 47 basis points from Q4 2024, driven by an increase in average earning assets of $965.8 million, or 18%[2][20]. - Interest income increased by 23% to $78,395,000 for the three months ended March 31, 2025, compared to $60,183,000 in March 2024[39]. - Net interest income after provision for credit losses was $39,429,000, reflecting a 14% increase from $33,375,000 in the prior year[39]. - The net interest margin improved to 3.04% for the three months ended March 31, 2025, compared to 2.57% in the previous quarter[41]. - The company reported a net interest rate spread of 2.97% for the current quarter, up from 2.45% in the previous quarter[41]. Expenses and Cost Management - Non-interest expense increased by $16.1 million, or 57%, compared to Q4 2024, reflecting the acquisition of Northway[23]. - Non-interest expense surged by 57% to $44,451,000 compared to $27,362,000 in March 2024, primarily due to merger and acquisition costs[39]. - The company expects to achieve annual cost savings of 35% of Northway's operating expenses, with 75% to be realized during 2025[9]. Capital and Equity - As of March 31, 2025, the common equity Tier 1 risk-based capital ratio was 10.78%, well above regulatory requirements[17]. - Shareholders' equity increased to $625,789 thousand, up from $530,759 thousand at the end of 2024, marking a growth of 17.9%[41]. - The tangible common equity ratio was 6.49% as of March 31, 2025, compared to 7.64% in the previous quarter[53]. - Average tangible equity decreased to $425,664,000 from $435,580,000 in the previous quarter[52]. Dividend and Shareholder Returns - Camden National announced a cash dividend of $0.42 per share, representing an annualized yield of 4.15%[18]. Credit Quality and Provisioning - The company recorded a provision expense of $9.4 million for Q1 2025, driven by the acquisition and changes in macroeconomic forecasts[21]. - The company reported a provision for credit losses of $9,429,000, a notable increase from a credit of $2,102,000 in the previous year, indicating a more cautious outlook on credit quality[39]. - Total non-accrual loans increased to $7,251,000 in Q1 2025 from $4,829,000 in Q4 2024, representing a 50.0% increase[46]. - Non-performing loans to total loans ratio increased to 0.15% in Q1 2025 from 0.12% in Q4 2024, indicating a rise in loan quality concerns[46]. - Provision for loan losses was $8,873,000 in Q1 2025, significantly higher than $53,000 in Q4 2024, showing increased risk management measures[46].

Core Viewpoint - Camden National Corporation will report its financial and operating results for Q1 2025 on May 6, 2025, including the impact of its acquisition of Northway Financial, Inc. completed on January 2, 2025 [1] Group 1: Financial Reporting - The financial results will be announced during a conference call and webcast hosted by key executives [1] - The conference call is scheduled for 2:00 p.m. Eastern on May 6, 2025 [1] Group 2: 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] - The company operates 73 branches in Maine and New Hampshire, providing full-service community banking and digital banking services [3] - Camden National Bank was founded in 1875 and is a member of FDIC and an Equal Housing Lender [3] Group 3: Wealth Management Services - Camden National Wealth Management offers comprehensive wealth management, investment, and financial planning services [4]

Company Overview - Camden National (CAC) shares increased by 5.1% to close at $38.39, following a notable trading volume, contrasting with a 9.4% loss over the past four weeks [1] - The bank is projected to report quarterly earnings of $0.99 per share, reflecting a year-over-year increase of 15.1%, with expected revenues of $57.16 million, up 37.4% from the previous year [2] - The consensus EPS estimate for Camden National has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] Industry Insights - Camden National is part of the Zacks Banks - Northeast industry, where another player, Meridian Bank (MRBK), saw an 8.1% increase in its stock price, closing at $13.70, despite a -8.5% return over the past month [3] - Meridian Bank's consensus EPS estimate is $0.33, representing a year-over-year change of 37.5%, with a Zacks Rank of 3 (Hold) [4]

Camden National Corporation (NASDAQ: CAC ) is the holding company that owns Camden National Bank , a regional bank focusing on New England, founded in 1875. The bank has a strong history of low loan losses and strong financial results, and recently announced a smallHe is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap ...

CAMDEN, Maine, March 25, 2025 /PRNewswire/ -- Simon R. Griffiths, President and Chief Executive Officer of Camden National Corporation (NASDAQ: CAC; the "Company"), announced today that the board of directors of the Company declared a quarterly dividend of $0.42 per share. This quarterly payout results in an annualized dividend yield of 4.0% based on the March 24, 2025 closing price of the Company's common stock at $42.01 per share as reported by NASDAQ. The dividend is payable on April 30, 2025 to sharehol ...

Acquisition and Growth - The acquisition of Northway Financial added $971.9 million in deposits and $1.2 billion in total assets to the company's balance sheet as of January 2, 2025[19]. - The company achieved a five-year compounded annual asset growth rate of 6%, resulting in total assets of $5.8 billion as of December 31, 2024[23]. - The company expanded its presence in New Hampshire by adding 17 branches through the Northway acquisition, now having a physical presence in seven of New Hampshire's ten counties[26]. - The company focuses on driving organic growth by deepening customer relationships and market penetration, alongside pursuing strategic acquisitions[23]. - The company is evaluating expansion into new markets through both de novo expansion and acquisitions, while maximizing growth in current markets[24]. Financial Performance - Net interest income represented 75% of total revenues for the year ended December 31, 2024, compared to 81% in 2023 and 78% in 2022[23]. - The company offers competitive financial products and services, including advanced digital banking solutions to enhance customer experience[20]. Employee and Management Changes - As of December 31, 2024, the company employed 586 employees, emphasizing the importance of employee relationships for success[33]. - The Company appointed Garrett A. McKnight as Managing Director of Camden National Wealth Management in April 2024, bringing 15 years of experience from The Northern Trust Company[45]. - Barbara Raths was promoted to EVP, Commercial Banking in March 2024, previously leading treasury management and government banking efforts[46]. - Ryan A. Smith transitioned to EVP, Chief Credit Officer in December 2023, having served as EVP, Commercial Banking from 2020 to 2023[48]. Regulatory Compliance and Capital Requirements - The Company and the Bank are subject to risk-based capital requirements under Basel III, which reflect the relationship between capital and operational risk[70]. - The Company and the Bank are required to maintain a minimum CET1 capital to RWA ratio of 4.5%, a minimum Tier 1 capital to RWA ratio of 6%, and a minimum total capital to RWA ratio of 8%[72]. - A capital conservation buffer of 2.5% of total RWA is required, leading to effective CET1, Tier 1, and total capital ratios of 7%, 8.5%, and 10.5% respectively[72]. - The Company and the Bank meet all capital requirements under the Capital Rules, including the capital conservation buffer, and are considered "well capitalized" under the FDIA[81]. - The Company has opted not to apply the Community Bank Leverage Ratio framework, continuing to measure capital adequacy under the Capital Rules[75]. - The federal banking regulators proposed revisions to the Basel III Capital Rules, but these will not apply to the Company or Bank due to their asset size being below $100 billion[77]. - The FDIA establishes five capital categories, with "well capitalized" institutions required to have a total risk-based capital ratio of at least 10%[78]. - The Company’s ability to pay dividends is restricted if it does not maintain the capital conservation buffer[85]. - The Bank is subject to restrictions on dividends, including not declaring dividends in excess of undivided profits without OCC approval[87]. Consumer Protection and Compliance - The Company and the Bank are subject to various federal and state consumer protection laws, which mandate certain disclosure requirements[90]. - The Bank uses consumer reports in its underwriting activities, regulated under the Fair Credit Reporting Act (FCRA)[91]. - The Dodd-Frank Act prohibits prepayment penalties for certain mortgage transactions and requires lenders to verify a borrower's ability to repay[92]. - The GLBA mandates financial institutions to implement policies for the disclosure of nonpublic personal information and maintain a comprehensive information security program[93]. - The Bank must develop a written identity theft prevention program under the FACT Act to mitigate identity theft risks[94]. - Federal regulations require banks to notify authorities within 36 hours of significant computer security incidents that could disrupt services[95]. - The Bank Secrecy Act requires financial institutions to monitor and report suspicious activities and implement anti-money laundering compliance measures[96]. - The Anti-Money Laundering Act of 2020 codified a risk-based approach to AML compliance and expanded enforcement authority[97]. - The U.S. Treasury's OFAC administers economic sanctions affecting transactions with designated foreign countries and entities[98]. Compensation and Risk Management - Federal guidelines prohibit excessive compensation practices that could undermine the safety and soundness of banking organizations[99]. - The proposed rules on incentive-based payment arrangements are aimed at entities with at least $1 billion in total assets[101]. - The company must ensure its incentive compensation arrangements do not encourage excessive risk-taking and are compatible with effective risk management[100].