Camden National Corporation Reports Second Quarter 2025 Earnings
Net Income of $14.1 Million and Diluted EPS of $0.83 for the Second Quarter
CAMDEN, Maine, July 29, 2025 /PRNewswire/ -- Camden National Corporation (NASDAQ:CAC, ", Camden National", or the ", Company", )) reported earnings for the quarter ended June 30, 2025, of $14.1 million and diluted earnings per share ("EPS") of $0.83, increases of 92% and 93%, respectively, compared to the first quarter of 2025.
"We're pleased to report strong results in our first full quarter as a unified organization following the Northway Financial acquisition," said Simon Griffiths, President and Chief Executive Officer of Camden National. "During the quarter, we began to unlock the financial potential of the combined franchise, with pre-tax, pre-provision income—excluding one-time merger-related expenses—increasing 13% over the prior quarter. This performance reflects achievement of cost synergies and solid revenue growth, reinforcing the strategic value of the acquisition and positioning us for continued net interest margin expansion and earnings growth in the second half of 2025."
SECOND QUARTER 2025 HIGHLIGHTS
Net interest margin for the second quarter of 2025 increased 2 basis points to 3.06%, compared to the first quarter of 2025. On a non-GAAP basis, our core net interest margin was 2.70% for the second quarter of 2025, compared to 2.68% for the first quarter of 2025.
The GAAP efficiency ratio for the second quarter of 2025 decreased to 60.37% and, on a non-GAAP basis, decreased to 55.47%, down from 74.02% and 58.72%, respectively, for the first quarter of 2025.
Loans for the second quarter grew 4% on an annualized basis. At June 30, 2025, committed loan pipelines, excluding loans held for sale, were strong and totaled $149.5 million, an increase of 40% since March 31, 2025.
Book value per share at June 30, 2025 totaled $38.54, and, on a non-GAAP basis, tangible book value per share totaled $26.90, an increase of 2% and 3%, respectively, for the second quarter of 2025.
Loans 30-89 days past due were 0.08% of total loans at June 30, 2025, and annualized net charge-offs for the second quarter of 2025 were 0.02% of average loans.
FINANCIAL CONDITION
As of June 30, 2025, total assets were $6.9 billion, a decrease of 1% since March 31, 2025.
Investments totaled $1.4 billion on June 30, 2025, an increase of 1% since March 31, 2025. The duration of the Company's total investment portfolio was 5.3 years for both June 30, 2025, and March 31, 2025.
Loans totaled $4.9 billion on June 30, 2025, an increase of 1% since the first quarter of 2025. Linked-quarter growth in loan balances was across all segments, except for the residential loan portfolio, as we sold 39% of our residential mortgage production during the second quarter of 2025.
The allowance for credit losses ("ACL") on loans was 1.08% of total loans as of June 30, 2025, an increase of 12 basis points during the second quarter of 2025. The increase was driven by one commercial loan as the borrower filed for bankruptcy during the quarter, which resulted in an increase in non-performing loans of 22 basis points during the second quarter of 2025 to 0.37% of total loans at June 30, 2025. The Company currently anticipates the commercial loan will be resolved in the second half of this year.
Deposits totaled $5.5 billion on June 30, 2025, a decrease of 1% since March 31, 2025. The Company saw normal outflows early in the second quarter and has since begun to see normal deposit inflows as we enter the summer months across our markets. As of June 30, 2025, the Company's loan-to-deposit ratio was 89%, compared to 87% at March 31, 2025.
As of June 30, 2025, the Company's common equity Tier 1 risk-based capital ratio was 10.88%, Tier 1 risk-based capital ratio was 12.18%, total risk-based capital ratio was 13.35% and Tier 1 leverage ratio was 8.74%. The Company's regulatory capital ratios continue to be well in excess of regulatory capital requirements and continue to rebuild following the acquisition of Northway Financial, Inc. ("Northway") on January 2, 2025.
The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.14%, based on the Company's closing share price of $40.58 as reported by NASDAQ on June 30, 2025. The dividend will be payable on July 31, 2025, to shareholders of record on July 15, 2025.
FINANCIAL OPERATING RESULTS (Q2 2025 vs. Q1 2025)
Net interest income for the second quarter of 2025 was $49.2 million, an increase of $351,000, or 1%, compared to the first quarter of 2025. The increase between periods was driven by the expansion of net interest margin and, on a non-GAAP basis, core net interest margin, which excludes fair value mark accretion, of 2 basis points between periods to 3.06% and 2.70%, respectively, for the second quarter of 2025. The Company recognized $5.0 million of fair value mark accretion income in net interest income for both periods.
Provision expense of $6.9 million was recorded for the second quarter of 2025, compared to provision expense of $9.4 million recorded for the first quarter of 2025, which included the $6.3 million provision for non-purchase credit deteriorated ("non-PCD") loans acquired from Northway. The driver for the provision for loan losses for the second quarter of 2025 was the aforementioned commercial loan that was placed on non-accrual during the quarter.
Non-interest income for the second quarter of 2025 was $13.1 million, an increase of $1.9 million, or 17%, compared to the first quarter of 2025. The increase between periods was driven by: (1) an increase in mortgage banking income of $552,000, (2) an increase in debit card income of $413,000, and (3) an increase in bank-owned life insurance of $343,000.
Non-interest expense for the second quarter of 2025 was $37.6 million, a decrease of $6.9 million, or 15%, compared to the first quarter of 2025. The decrease in non-interest expense between periods reflects the decrease in merger and acquisition costs of $6.2 million associated with the Northway acquisition and expense synergies following the integration of teams, branches and systems in late-March 2025. The Company anticipates run-rate operating expenses to continue to improve during the second half of 2025 as the full benefit of cost savings is realized.
Q2 2025 CONFERENCE CALL
Camden National Corporation will host a conference call and webcast at 3:00 p.m., Eastern Time, Tuesday, July 29, 2025 to discuss its second quarter 2025 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:
Live dial-in (Domestic):
(833) 470-1428
Live dial-in (All other locations):
https://www.netroadshow.com/conferencing/global-numbers?confId=84905
Participant access code:
118700
Live webcast:
https://events.q4inc.com/attendee/238427677
A link to the live webcast will be available on Camden National's website under "About, Investor Relations" at CamdenNational.bank before the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The conference call transcript will also be available on Camden National's website approximately two days after the conference call.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ:CAC) is Northern New England's largest publicly traded bank holding company, with $6.9 billion in assets. Founded in 1875, Camden National Bank has 72 banking centers in Maine and New Hampshire, is a full-service community bank offering the latest digital banking, complemented by award-winning, personalized service. Additional information is available at CamdenNational.bank. Member FDIC. Equal Housing Lender.
Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions, including as a result of tariffs and retaliatory tariffs; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National's ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National's Annual Report on Form 10-K for the year ended December 31, 2024, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Statements relating to the Company's recent acquisition of Northway may also be forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include the reaction to the transaction of the Company's customers, employees and counterparties; customer disintermediation; expected synergies, cost savings and other financial benefits of the transaction might not be realized within the expected timeframes or might be less than projected; and credit and interest rate risks associated with Camden's and Northway's respective businesses, customers, borrowings, repayment, investment and deposit practices. Camden National does not have any obligation to update forward-looking statements.
USE OF NON-GAAP MEASURES
In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; adjusted pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; core net interest margin; and tangible book value per share. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found in this document.
ANNUALIZED DATA
Certain returns, yields and performance ratios are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.
Selected Financial Data
(unaudited)
At or For The
Three Months Ended
At or For The
Six Months Ended
(In thousands, except number of shares and per share data)
June 30,2025
March 31,2025
June 30,2024
June 30,2025
June 30,2024
Financial Condition Data
Loans
$ 4,931,369
$ 4,885,086
$ 4,139,361
$ 4,931,369
$ 4,139,361
Total assets
6,920,044
6,964,785
5,724,380
6,920,044
5,724,380
Deposits
5,514,712
5,597,478
4,514,020
5,514,712
4,514,020
Shareholders' equity
652,148
640,054
508,286
652,148
508,286
Operating Data and Per Share Data
Net income
$ 14,081
$ 7,326
$ 11,993
$ 21,407
$ 25,265
Adjusted net income (non-GAAP)(1)
15,191
16,047
11,993
31,238
24,546
Adjusted pre-tax, pre-provision income (non-GAAP)(1)
26,085
23,128
15,519
49,213
29,752
Diluted EPS
0.83
0.43
0.81
1.26
1.72
Adjusted diluted EPS (non-GAAP)(1)
0.89
0.95
0.81
1.84
1.67
Profitability Ratios
Return on average assets
0.82 %
0.43 %
0.84 %
0.63 %
0.89 %
Adjusted return on average assets (non-GAAP)(1)
0.89 %
0.94 %
0.84 %
0.91 %
0.87 %
Return on average equity
8.77 %
4.75 %
9.60 %
6.80 %
10.18 %
Adjusted return on average equity (non-GAAP)(1)
9.47 %
10.40 %
9.60 %
9.92 %
9.89 %
Adjusted return on average tangible equity (non-GAAP)(1)
14.71 %
16.40 %
11.96 %
15.53 %
12.34 %
GAAP efficiency ratio
60.37 %
74.02 %
63.77 %
67.07 %
64.76 %
Efficiency ratio (non-GAAP)(1)
55.47 %
58.72 %
63.21 %
57.06 %
64.19 %
Net interest margin (fully-taxable equivalent)
3.06 %
3.04 %
2.36 %
3.05 %
2.32 %
Core net interest margin (fully-taxable equivalent) (non-GAAP)(1)
2.70 %
2.68 %
2.36 %
2.69 %
2.32 %
Asset Quality Ratios
ACL on loans to total loans
1.08 %
0.96 %
0.86 %
1.08 %
0.86 %
Non-performing loans to total loans
0.37 %
0.15 %
0.19 %
0.37 %
0.19 %
Loans 30-89 days past due to total loans
0.08 %
0.07 %
0.05 %
0.08 %
0.05 %
Annualized net charge-offs to average loans
0.02 %
0.08 %
0.04 %
0.05 %
0.03 %
Capital Ratios
Common equity ratio
9.42 %
9.19 %
8.88 %
9.42 %
8.88 %
Tangible common equity ratio (non-GAAP)(1)
6.77 %
6.49 %
7.34 %
6.77 %
7.34 %
Book value per share
$ 38.54
$ 37.91
$ 34.89
$ 38.54
$ 34.89
Tangible book value per share (non-GAAP)(1)
$ 26.90
$ 26.02
$ 28.34
$ 26.90
$ 28.34
Tier 1 leverage capital ratio
8.74 %
8.58 %
9.64 %
8.74 %
9.64 %
Total risk-based capital ratio
13.35 %
13.13 %
14.46 %
13.35 %
14.46 %
(1)
This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."
Consolidated Statements of Condition Data
(unaudited)
(In thousands)
June 30,2025
March 31,2025
June 30,2024
% ChangeJun 2025 vs. Mar2025
% Change Jun 2025 vs. Jun 2024
ASSETS
Cash, cash equivalents and restricted cash
$ 113,815
$ 219,414
$ 105,560
(48) %
8 %
Investments:
Trading securities
5,326
4,860
4,959
10 %
7 %
Available-for-sale securities, at fair value
860,217
836,130
579,534
3 %
48 %
Held-to-maturity securities, at amortized cost
509,298
516,682
533,600
(1) %
(5) %
Other investments
26,879
26,284
17,105
2 %
57 %
Total investments
1,401,720
1,383,956
1,135,198
1 %
23 %
Loans held for sale, at fair value
22,567
11,059
14,321
104 %
58 %
Loans:
Commercial real estate
2,089,977
2,067,098
1,697,979
1 %
23 %
Commercial
506,883
487,409
409,682
4 %
24 %
Residential real estate
2,018,332
2,028,062
1,768,357
— %
14 %
Consumer and home equity
316,177
302,517
263,343
5 %
20 %
Total loans
4,931,369
4,885,086
4,139,361
1 %
19 %
Less: allowance for credit losses on loans
(53,022)
(46,723)
(35,412)
13 %
50 %
Net loans
4,878,347
4,838,363
4,103,949
1 %
19 %
Goodwill and core deposit intangible assets
197,031
200,770
95,390
(2) %
107 %
Other assets
306,564
311,223
269,962
(1) %
14 %
Total assets
$ 6,920,044
$ 6,964,785
$ 5,724,380
(1) %
21 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest checking
$ 1,118,080
$ 1,132,648
$ 921,605
(1) %
21 %
Interest checking
1,663,335
1,714,944
1,465,560
(3) %
13 %
Savings and money market
1,823,275
1,828,332
1,399,464
— %
30 %
Certificates of deposit
698,185
703,873
576,563
(1) %
21 %
Brokered deposits
211,837
217,681
150,828
(3) %
40 %
Total deposits
5,514,712
5,597,478
4,514,020
(1) %
22 %
Short-term borrowings
599,367
567,436
552,606
6 %
8 %
Junior subordinated debentures
61,365
61,290
44,331
— %
38 %
Accrued interest and other liabilities
92,452
98,527
105,137
(6) %
(12) %
Total liabilities
6,267,896
6,324,731
5,216,094
(1) %
20 %
Commitments and Contingencies
Shareholders' Equity
Common stock, no par value
214,365
213,589
115,543
— %
86 %
Retained earnings
515,662
508,720
493,974
1 %
4 %
Accumulated other comprehensive loss:
Net unrealized loss on debt securities, net of tax
(84,324)
(89,613)
(110,308)
(6) %
(24) %
Net unrealized gain on cash flow hedging derivative instruments, net of tax
6,045
6,953
9,327
(13) %
(35) %
Net unrecognized loss on postretirement plans, net of tax
400
405
(250)
(1) %
(260) %
Total accumulated other comprehensive loss
(77,879)
(82,255)
(101,231)
(5) %
(23) %
Total shareholders' equity
652,148
640,054
508,286
2 %
28 %
Total liabilities and shareholders' equity
$ 6,920,044
$ 6,964,785
$ 5,724,380
(1) %
21 %
Consolidated Statements of Income Data
(unaudited)
For The
Three Months Ended
(In thousands, except per share data)
June 30,2025
March 31,2025
June 30,2024
% Change Jun 2025 vs. Mar 2025
% ChangeJun 2025 vs.Jun 2024
Interest Income
Interest and fees on loans
$ 67,477
$ 66,549
$ 53,422
1 %
26 %
Taxable interest on investments
10,257
9,772
6,807
5 %
51 %
Nontaxable interest on investments
455
468
461
(3) %
(1) %
Dividend income
493
520
521
(5) %
(5) %
Other interest income
641
1,086
951
(41) %
(33) %
Total interest income
79,323
78,395
62,162
1 %
28 %
Interest Expense
Interest on deposits
24,594
24,621
24,169
— %
2 %
Interest on borrowings
4,620
4,018
5,285
15 %
(13) %
Interest on junior subordinated debentures
900
898
524
— %
72 %
Total interest expense
30,114
29,537
29,978
2 %
— %
Net interest income
49,209
48,858
32,184
1 %
53 %
Provision for credit losses
6,920
9,429
650
(27) %
N.M.
Net interest income after provision for credit losses
42,289
39,429
31,534
7 %
34 %
Non-Interest Income
Debit card income
3,646
3,233
3,069
13 %
19 %
Service charges on deposit accounts
2,405
2,318
2,113
4 %
14 %
Income from fiduciary services
1,981
1,838
1,870
8 %
6 %
Brokerage and insurance commissions
1,794
1,697
1,441
6 %
24 %
Bank-owned life insurance
1,003
660
694
52 %
45 %
Mortgage banking income, net
1,060
508
