Camden National (NasdaqGS:CAC) Q3 2025 Earnings Call October 28, 2025 03:00 PM ET Company ParticipantsRenée Smyth - Chief Experience and Marketing OfficerMike Archer - CFOSimon Griffiths - CEOConference Call ParticipantsSteve Moss - AnalystMatthew Breese - AnalystDamon DelMonte - Equity Research AnalystOperatorOkay, and welcome to Camden National Corporation's third quarter 2025 earnings conference call. My name is Elliot, and I'll be your operator for today's call. All participants will be in listen-only m ...

Financial Data and Key Metrics Changes - Camden National Corporation reported record third-quarter earnings of $21.2 million, a 51% increase over the previous quarter [4][11] - Pre-tax, pre-provision income rose 19% over the prior quarter, reaching $29.5 million [4][11] - The tangible common equity ratio increased by 32 basis points to 7.09%, and tangible book value grew 6% to $28.42 per share [5] - The net interest margin expanded by 10 basis points to 3.16%, with a return on average tangible equity of 19.1% [5][12] Business Line Data and Key Metrics Changes - Annualized loan growth was 4%, with average core deposits growing 2% and savings deposit balances increasing by 5% [5][6] - Non-interest income reached $14.1 million, an 8% increase over the second quarter, with fiduciary and brokerage fee income growing organically by 16% year over year [7][13] - Mortgage banking income was solid, supported by robust summer mortgage activity [8] Market Data and Key Metrics Changes - The committed loan pipeline totaled $116 million as of September 30, indicating strong customer resilience [6] - Non-performing assets decreased by 14 basis points to just 12 basis points of total assets [7] Company Strategy and Development Direction - The company is focused on disciplined capital deployment and enhancing long-term shareholder value through strategic investments and operational excellence [4][5] - There is a commitment to expanding treasury management services into the New Hampshire market and enhancing digital engagement with customers [8][9] - The company aims to maintain a low efficiency ratio while investing in talent acquisition and market expansion [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the loan portfolio and the ability to navigate economic uncertainties [6][7] - The outlook for loan growth in 2026 is projected to be mid-single digits, with strong performance expected in home equity and commercial sectors [39][40] - Management anticipates continued positive trends in fee income, particularly in brokerage and wealth management services [42][43] Other Important Information - The company has implemented automation across the enterprise, processing over 5 million items and saving over 74,000 cumulative hours [9] - A community wellbeing day was organized to celebrate the company's 150th anniversary, highlighting its commitment to community engagement [9] Q&A Session Summary Question: Loan growth and pricing dynamics - Management noted strong momentum in commercial and home equity loans, with home equity up 54% year over year, particularly in the New Hampshire market [18][19] Question: Margin outlook with Federal Reserve rate cuts - The company is well-positioned for future rate cuts, expecting margin expansion of 5 to 10 basis points in the next quarter [21][22] Question: Expense dynamics and growth outlook - Anticipated operating expenses for the fourth quarter are projected at $36 to $36.5 million, with a focus on maintaining an efficiency ratio in the mid-50s [26][27] Question: Credit quality and provision outlook - Management expressed confidence in maintaining a low allowance for credit losses, reflecting the health of the diversified loan portfolio [30][33] Question: Loan growth expectations for 2026 - Loan growth is expected to be mid-single digits, with strong performance anticipated in home equity and commercial sectors [39][40]