Group 1 - Camden National Corporation declared a quarterly dividend of $0.42 per share, resulting in an annualized dividend yield of 4.0% based on the closing price of $42.01 per share on March 24, 2025 [1] - The dividend is scheduled to be payable on April 30, 2025, to shareholders of record on April 15, 2025 [1] Group 2 - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with approximately $7.0 billion in assets [2] - The company operates 73 branches in Maine and New Hampshire, providing full-service community banking and digital banking services [2] - The total assets and branch data reflect the completion of the merger with Northway Financial, Inc. on January 2, 2025 [3]

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].

Core Viewpoint - Camden National (CAC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Camden National is projected at $4.36 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 19.5% [9]. - Over the past three months, the Zacks Consensus Estimate for Camden National has risen by 10.3%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [10][11]. Market Implications - The upgrade to Zacks Rank 1 for Camden National suggests that the stock may experience buying pressure and an increase in its price due to improved earnings outlook [4][6]. - The correlation between earnings estimate revisions and near-term stock movements underscores the importance of tracking these revisions for investment decisions [7].

Core Insights - Camden National Corporation has appointed Raina L. Maxwell to its Board of Directors and the Camden National Credit Committee, effective February 25, 2025 [1][2] - Raina Maxwell brings over 13 years of experience in customer satisfaction and financial expertise, previously leading L.L.Bean's customer satisfaction program and holding financial roles at Standard & Poor's and Carana Corporation [2][3] - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with approximately $7.0 billion in assets and 73 branches in Maine and New Hampshire [4][5] Company Overview - Camden National Corporation operates as a full-service community bank, offering digital banking services alongside personalized customer service [4] - The bank's recent growth includes the completion of a merger with Northway Financial, Inc., enhancing its asset base and branch network [5]

Financial Data and Key Metrics Changes - Camden National Corporation reported GAAP net income of $14.7 million for Q4 2024, an increase of 12% compared to Q3 2024, with diluted earnings per share (EPS) of $1.00, up 11% [8][17] - Excluding merger and acquisition costs, net income for Q4 2024 was $15.1 million, reflecting a 9% increase over the previous quarter [8][17] - The net interest margin expanded by 11 basis points to 2.57% in Q4 2024, driven by proactive management of deposit costs [9][18] - Non-interest expenses for Q4 2024, excluding merger-related costs, totaled $27.9 million, a 1% decrease from Q3 2024 [17][18] Business Line Data and Key Metrics Changes - The commercial loan pipeline remained solid at nearly $85 million, with approximately $45 million committed as of December 31, 2024 [19] - The wealth management and brokerage services saw assets under administration reach $2.1 billion, reflecting a 12% increase compared to the previous year [10] - The high-yield savings product attracted $201 million in deposits, contributing to a 1% growth in total deposits to $4.6 billion in Q4 2024 [9][21] Market Data and Key Metrics Changes - The New Hampshire market experienced an 18% growth in 2024, with the addition of the Northway team expanding the commercial lending group from 1 to 8 lenders [10][28] - The company reported strong demand for its high-yield savings product, with savings balances growing 7% in Q4 and 23% for the calendar year [21] Company Strategy and Development Direction - The merger with Northway Financial, completed on January 2, 2025, is expected to enhance Camden National's market presence and operational capabilities [6][24] - The company is focused on leveraging technology investments and expanding its customer base through improved service offerings and operational efficiencies [7][12] - Camden National aims to maintain a balance between growth, credit quality, and investment in its markets, particularly in New Hampshire [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to unlock growth opportunities and expand market presence following the Northway merger [6][7] - The overall asset quality remains strong, with no significant signs of credit deterioration noted across sectors [11][20] - Management anticipates continued margin expansion and is optimistic about the company's performance in 2025, despite potential seasonal outflows [35][58] Other Important Information - The company celebrated a record of 1.7 million transactions processed by bots, indicating significant advancements in operational efficiency [13] - Regulatory capital ratios exceeded requirements, with the CET1 capital ratio at 13.09% and total risk-based capital ratio at 15.11% as of December 31, 2024 [22] Q&A Session Summary Question: What are the expectations for lending activity going forward? - Management noted low single-digit growth in lending, with strength in commercial and home equity lending [27][28] Question: What investments are planned for 2025? - The company plans to continue investing in wealth management and digital capabilities to enhance customer experience and operational efficiency [30][31] Question: What is the outlook for net interest margin? - Management expects core net interest margin to remain around 2.60%, with potential for modest outflows in Q1 [34][35] Question: What actions were taken post-acquisition of Northway? - The company paid down $45 million in long-term borrowings and sold $65 million in bond securities to optimize the balance sheet [44][45] Question: What is the anticipated pro forma earning asset base? - A pro forma earning asset base of approximately $6.5 billion was deemed reasonable [46] Question: What is the company's stance on future M&A activity? - Management indicated an appetite for future acquisitions, focusing on contiguous markets and the right opportunities [60][62]

Core Viewpoint - Camden National (CAC) reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing an increase from $0.85 per share a year ago, indicating a strong performance in the recent quarter [1][2]. Financial Performance - The company achieved revenues of $47.58 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.16% and up from $38.7 million year-over-year [2]. - Over the last four quarters, Camden National has consistently exceeded consensus EPS estimates, achieving this four times [2]. Stock Performance - Camden National shares have increased approximately 4% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.90, with projected revenues of $51.1 million, and for the current fiscal year, the EPS estimate is $4.16 on revenues of $238.09 million [7]. - The trend of estimate revisions for Camden National is favorable, which is a positive indicator for future stock performance [6]. Industry Context - The Banks - Northeast industry, to which Camden National belongs, is currently ranked in the top 9% of over 250 Zacks industries, suggesting a strong overall industry performance [8].

Core Insights - Camden National Corporation reported a net income of $14.7 million for Q4 2024, reflecting a 12% increase from Q3 2024, with diluted EPS rising to $1.00, an 11% increase [1][14] - The company successfully completed its merger with Northway Financial, resulting in total assets of approximately $7.0 billion and 73 branches across Maine and New Hampshire [2][20] - Core net income for Q4 2024, excluding merger costs, was $15.1 million, marking a 9% increase from the previous quarter [3][14] Financial Performance - For the year ended December 31, 2024, net income reached $53.0 million, a 22% increase compared to 2023, with diluted EPS at $3.62 [4][33] - The company achieved a net interest margin of 2.57% in Q4 2024, an increase of 11 basis points from Q3 2024, driven by a 5% rise in net interest income to $35.4 million [15][17] - Non-interest income for Q4 2024 was $12.2 million, a 7% increase from Q3 2024, primarily due to higher debit card income and loan swap fee income [18][14] Asset Quality and Capital Position - As of December 31, 2024, the company's asset quality remained strong, with loans 30-89 days past due at 0.05% and non-performing assets at 0.11% of total assets [10][17] - The allowance for credit losses (ACL) on loans increased to 0.87%, with the ACL being 5.5 times the total non-performing loans [10][12] - The common equity ratio stood at 9.15%, well above regulatory requirements, despite a slight decrease from the previous quarter [12][17] Deposits and Loans - Total deposits increased by 1% to $4.6 billion as of December 31, 2024, with core deposits growing by 2% [11][29] - Loans totaled $4.1 billion, remaining stable compared to the previous quarter, with a notable increase in residential mortgage production by 14% [9][28] Merger and Acquisition - The merger with Northway Financial was finalized on January 2, 2025, with a total consideration of approximately $96.5 million, resulting in the issuance of about 2.3 million shares to Northway's shareholders [2][20]

Financial Performance - For Q4 2024, Camden National reported net income of $14.7 million and diluted EPS of $1.00, representing increases of 12% and 11% respectively compared to Q3 2024[1]. - Core net income for Q4 2024, excluding merger costs, was $15.1 million with core diluted EPS of $1.03, reflecting increases of 9% and 8% respectively over Q3 2024[3]. - Net income for the quarter was $14,666, up 12.2% from $13,073 in the previous quarter and up 73.5% from $8,480 year-over-year[30]. - Core net income (non-GAAP) reached $15,086, a 9.3% increase from $13,800 in the previous quarter and a 21.5% increase from $12,410 year-over-year[30]. - Diluted EPS for the quarter was $1.00, compared to $0.90 in the previous quarter and $0.58 year-over-year, reflecting a 11.1% and 72.4% increase respectively[30]. - Net income for Q4 2024 reached $14,666,000, reflecting a 73% increase year-over-year[34]. - Basic earnings per share for Q4 2024 were $1.01, up 74% from $0.58 in Q4 2023[34]. - Net income for the year 2024 was $53,004,000, representing a 22% increase from $43,383,000 in 2023[36]. Asset and Loan Management - Total assets as of December 31, 2024, were $5.8 billion, up from $5.7 billion as of September 30, 2024[6]. - Loans totaled $4.1 billion as of December 31, 2024, remaining consistent with the previous quarter, while funded residential mortgage production increased by 14%[9]. - Total loans remained stable at $4,115,259, showing no significant change from $4,116,729 in the previous quarter and a slight increase from $4,098,094 year-over-year[30]. - Total loans amounted to $4,116,313 thousand for the three months ended December 31, 2024, a slight decrease from $4,144,482 thousand in the previous quarter, representing a decline of 0.68%[38]. - Non-performing loans to total loans ratio was 0.16% for the year ended December 31, 2024, slightly down from 0.17% for the year ended September 30, 2024[44]. Deposit Growth - Deposits increased by 1% to $4.6 billion, with core deposits growing by 2% to $3.9 billion, primarily due to a 7% increase in savings deposits[13]. - Total deposits as of December 31, 2024, were $4,633,167 thousand, an increase from $4,575,226 thousand in the previous quarter, reflecting a growth of 1.27%[51]. - Total deposits rose to $4,441,290 thousand, marking an increase of 1.91% from $4,379,935 thousand in the prior quarter[38]. Efficiency and Profitability Ratios - The efficiency ratio for Q4 2024 improved to 59.62% (GAAP) and 58.51% (non-GAAP), compared to 64.23% and 62.39% in Q3 2024[20]. - Return on average assets improved to 1.01%, up from 0.91% in the previous quarter and 0.59% year-over-year[30]. - Core return on average equity (non-GAAP) was 11.30%, compared to 10.48% in the previous quarter and 10.53% year-over-year[30]. - The GAAP efficiency ratio improved to 59.62% for the three months ended December 31, 2024, down from 64.23% in the previous quarter[48]. - The non-GAAP efficiency ratio also improved to 58.51% for the same period, compared to 62.39% in the previous quarter[48]. Non-Interest Income and Expenses - Total non-interest income for Q4 2024 was $12,166,000, a significant 103% increase compared to Q4 2023[34]. - The company reported a 44% increase in total non-interest income for the year 2024, totaling $44,539,000 compared to $31,034,000 in 2023[36]. - Total non-interest expense for the year 2024 was $111,936,000, a 4% increase compared to $107,361,000 in 2023[36]. - Non-interest expense for the three months ended December 31, 2024, was $28,364 thousand, compared to $28,900 thousand for the previous quarter, reflecting a decrease of 1.85%[48]. Credit Quality - The company's asset quality remained strong, with loans 30-89 days past due at 0.05% of total loans and non-performing assets at 0.11% of total assets[10]. - Provision for credit losses for Q4 2024 was $809,000, a 238% increase from $239,000 in Q3 2024[34]. - The allowance for credit losses (ACL) on loans at the end of the period was $35,728,000, down from $36,935,000 at the beginning of the period[44]. - The ACL on loans to non-performing loans ratio was 553.07% for the year ended December 31, 2024, indicating strong coverage of non-performing loans[44]. Mergers and Acquisitions - The company completed its merger with Northway Financial on January 2, 2025, resulting in total assets of approximately $7.0 billion and 73 branches in Maine and New Hampshire[2].

Core Viewpoint - Camden National (CAC) has consistently beaten earnings estimates and is well-positioned for future earnings surprises, particularly with a positive Earnings ESP and a strong Zacks Rank [1][3][6]. Earnings Performance - For the last reported quarter, Camden National achieved earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, resulting in a surprise of 13.25% [2]. - In the previous quarter, the company was expected to earn $0.71 per share but delivered $0.81 per share, leading to a surprise of 14.08% [2]. Earnings Estimates - Recent estimates for Camden National have been increasing, indicating a bullish outlook on the company's earnings prospects [3]. - The current Earnings ESP for Camden National is +0.57%, suggesting analysts have become more optimistic about the company's upcoming earnings [6]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4]. - The combination of Camden National's positive Earnings ESP and Zacks Rank 1 (Strong Buy) indicates a high likelihood of another earnings beat [6]. Importance of Earnings ESP - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]. - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [6].

Company Overview - Camden National Corporation (NASDAQ: CAC) is the largest publicly traded bank holding company in Northern New England, with total assets of $7.0 billion [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 recognized for its personalized service [3] Upcoming Financial Results - Camden National Corporation will report its financial and operating results for the quarter and year ended December 31, 2024, on January 28, 2025 [1] - A conference call and webcast will be hosted by Simon Griffiths, President and CEO, and Michael Archer, Executive Vice President and CFO, at 3:00 p.m. Eastern on the same day [1] Conference Call Participation - Interested parties can join the teleconference by dialing in or connecting to the webcast 10-15 minutes prior to the start [2] - Domestic dial-in number is (833) 470-1428, and international dial-in number is (929) 526-1599, with a participant access code of 416800 [2] - The live webcast URL is available at Camden National Corporation's website, and a transcript and replay will be accessible post-conference [2] Wealth Management Services - Camden National Corporation offers comprehensive wealth management, investment, and financial planning services through Camden National Wealth Management [4] - The total assets and branch data reflect the completion of the merger with Northway Financial, Inc., which was announced previously [4]