Camden National Corporation Reports First Quarter 2025 Earnings

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]