Camden National Corporation Reports Second Quarter 2025 Earnings

Core Insights - Camden National Corporation reported a net income of $14.1 million and diluted EPS of $0.83 for Q2 2025, marking increases of 92% and 93% respectively compared to Q1 2025 [1][22]. Financial Performance - The company achieved a pre-tax, pre-provision income increase of 13% over the prior quarter, reflecting successful cost synergies and revenue growth post the Northway Financial acquisition [2]. - Net interest income for Q2 2025 was $49.2 million, a 1% increase from Q1 2025, driven by net interest margin expansion [10][26]. - Non-interest income rose to $13.1 million, a 17% increase compared to Q1 2025, attributed to higher mortgage banking income and debit card income [12][26]. - Non-interest expenses decreased by 15% to $37.6 million, primarily due to reduced merger-related costs [13][26]. Financial Condition - As of June 30, 2025, total assets were $6.9 billion, a 1% decrease from March 31, 2025 [4][23]. - Total loans increased by 1% to $4.9 billion, with growth across all segments except residential loans, where 39% of production was sold [5][23]. - The allowance for credit losses on loans was 1.08%, up 12 basis points from the previous quarter, influenced by a commercial loan bankruptcy [6][23]. - Total deposits were $5.5 billion, a 1% decrease since March 31, 2025, with a loan-to-deposit ratio of 89% [7][23]. Capital Ratios - The common equity Tier 1 risk-based capital ratio was 10.88%, and the total risk-based capital ratio was 13.35%, both well above regulatory requirements [8][23]. Shareholder Returns - A cash dividend of $0.42 per share was announced, yielding an annualized dividend yield of 4.14% based on the closing share price of $40.58 [9][22]. Asset Quality - Non-performing loans increased to 0.37% of total loans, with loans 30-89 days past due at 0.08% [6][22]. - Annualized net charge-offs for Q2 2025 were 0.02% of average loans [12][22]. Book Value - Book value per share was $38.54, with tangible book value per share at $26.90, reflecting increases of 2% and 3% respectively [14][22].