Financial Data and Key Metrics Changes - The company reported net income of $65.6 million and diluted earnings per share of $1.20, representing an 18% increase from the same quarter last year [11] - Pre-provision net revenue was $88.3 million, with a return on average assets of 1.47% and a return on common equity of 14.9% [11] - The book value grew by an annualized 14% from the previous quarter, ending at $32.37 per share [13] - Net interest income was reported at $133.4 million, with a normalized net interest income of $137.8 million, resulting in a net interest margin of 3.09% [13][14] Business Line Data and Key Metrics Changes - Loan growth was below expectations, with loan paydowns increasing by $500 million over the prior two quarters [4] - The loan pipeline increased by over 10% in October compared to September and is 40% higher than a year ago [4][5] - Non-performing assets increased by approximately $96 million during the quarter, primarily due to a relationship with a large merchant developer [9] Market Data and Key Metrics Changes - The company hired seven new producers across its markets, achieving profitability in all markets for the first time [7] - The company is managing down total deposit costs as the Federal Reserve reduces the Fed funds rate [6] Company Strategy and Development Direction - The company aims to focus on organic loan and deposit growth while managing non-interest expenses [18] - There is a strategic emphasis on non-interest income growth through credit cards, merchant services, and treasury management products [16] - The company is exploring opportunities in Texas, aiming to attract local talent and customers [62] Management's Comments on Operating Environment and Future Outlook - Management noted that lending activity softened in Q3 but has been robust moving into Q4 [8] - The company expects continued margin expansion due to anticipated rate cuts from the Federal Reserve [14][33] - Management expressed confidence in the loan pipeline and expects a good close in loan growth for Q4 [6][41] Other Important Information - The company recognized a loss of $7.8 million on the sale of bonds and invested in a solar tax credit, benefiting from a $2.4 million tax provision [12][19] - The company has a total NDFI exposure of $71 million, which is less than 1% of its loan portfolio, indicating a cautious approach to lending in riskier categories [21] Q&A Session Summary Question: What pushed the borrower to nonperforming status? - Management indicated that additional collateral was obtained, but a large payment expected before quarter-end did not materialize, leading to the non-accrual status [28][29] Question: What is the loan-to-value ratio on the loans? - Management stated that while the loan-to-value is elevated, it is believed to be below one-to-one, with adequate security to cover the loans [31] Question: What are the expectations for margin improvement? - Management expects a 7 to 10 basis point improvement in margin each quarter, with a normalized spot rate for September at 3.28% [33][34] Question: What is the outlook for loan demand? - Management noted that loan demand is currently okay, with commercial real estate being a stronger area, but overall demand is not great [41] Question: What is the effective tax rate going forward? - The effective tax rate is expected to remain around 18.9% for the year, with efforts to keep it below 20% in the future [54]

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]