Camden National (CAC)2025-05-06 12:04Financial 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].