Camden National Corporation Reports Third Quarter 2025 Earnings

Core Insights - Camden National Corporation reported record net income of $21.2 million for Q3 2025, a 51% increase compared to Q2 2025, with diluted earnings per share (EPS) of $1.25, marking the strongest quarterly performance since 2021 [1][2][15] - The successful acquisition and integration of Northway Financial, Inc. earlier in the year positions the company for accelerated growth and sustained shareholder value [2] Financial Condition - As of September 30, 2025, total assets reached $7.0 billion, reflecting a 1% increase since June 30, 2025 [3] - Total loans amounted to $5.0 billion, also a 1% increase from the previous quarter, driven by a 4% rise in commercial real estate loans and a 5% increase in home equity loans [4] - Deposits totaled $5.4 billion, a 2% decrease from June 30, 2025, but average deposits grew by 2% excluding brokered deposits [5] - The company's common equity Tier 1 risk-based capital ratio was 11.17%, well above regulatory requirements [6] Asset Quality - The asset quality remained strong, with non-performing assets at 0.12% of total assets and past-due loans at 0.16% of total loans as of September 30, 2025 [8] - The allowance for credit losses on loans decreased to 0.91% from 1.08% in the previous quarter, reflecting the resolution of a specific syndicated loan [10] Financial Operating Results - Net interest income for Q3 2025 was $51.3 million, a 4% increase from Q2 2025, driven by net interest margin expansion of 10 basis points [11] - Non-interest income rose to $14.1 million, an 8% increase compared to the previous quarter, with strong momentum in fee income business lines [13] - Non-interest expense decreased by 4% to $35.9 million, attributed to reduced merger and acquisition costs following the Northway acquisition [13] Key Ratios - Return on average assets was 1.21%, and return on average equity was 12.75% for Q3 2025 [15] - The GAAP efficiency ratio improved to 54.94% from 60.37% in Q2 2025, indicating enhanced operational efficiency [15]