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Camden National Corp

Camden National Corporation Reports First Quarter 2025 Earnings

Camden National Reaches $7.0 Billion in Total Assets as it Successfully Completes the Acquisition of Northway Financial, Inc. in the First Quarter

CAMDEN, Maine , May 6, 2025 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company") reported earnings for the quarter ended March 31, 2025 of $7.3 million and diluted earnings per share ("EPS") of $0.43. Reported earnings include the effects of the acquisition of Northway Financial, Inc. ("Northway") and its subsidiary, Northway Bank, that was completed on January 2, 2025, in an all-stock transaction through the issuance of 2.3 million shares of Camden National common stock. On a non-GAAP basis, adjusted net income increased 6% and adjusted diluted EPS decreased 8% for the quarter ended March 31, 2025, compared to the fourth quarter of 2024. Our reported non-GAAP adjusted financial results exclude the financial impact of certain non-recurring transactions associated with the acquisition of Northway.

"I am very pleased with our first quarter financial results, which demonstrate our franchise's continued strength," said Simon Griffiths, President and Chief Executive Officer of Camden National. "We reported adjusted net income of $16.0 million for the quarter as our net interest margin expanded to 3.04%, including the impact of purchase accounting. More importantly, our core net interest margin expanded 11 basis points to 2.68% for the quarter. Combining our core net interest margin momentum with the benefit of cost savings to come from the acquisition, we believe we are positioned well for solid earnings growth moving forward."

With the integration of Northway completed in mid-March 2025, the Company is on track to achieve its previously reported annual cost savings goal and meet its merger costs target. The Company expects these cost savings to begin to materialize in the second quarter of 2025 and for merger costs to continue over the coming quarters. 

Asset quality of the combined organization was strong at March 31, 2025, reflecting the ongoing credit quality of Camden National and the acquired Northway loan portfolio.

Griffiths added, "In the first quarter, we proudly joined forces with our neighbors at Northway Bank, welcoming over 100 new team members to Camden National. In mid-March, we successfully completed our systems and branch integration, bringing more than 28,000 new customers into our network. Expanding our footprint across Maine and New Hampshire allows us to better serve our customers by leveraging the power of our technology investments and resources with the personalized service and local decision-making our customers value."

FIRST QUARTER 2025 HIGHLIGHTS

  • Successfully completed the acquisition of Northway on January 2, 2025, and the full customer integration of Northway Bank systems and branches in mid-March 2025.
  • Fully deployed our new online account opening platform, streamlining the deposit account opening process and supporting expansion into new markets.
  • GAAP return on average assets was 0.43% and GAAP return on average equity was 4.75% for the first quarter of 2025. On a non-GAAP basis, our adjusted return on average assets was 0.94% and our adjusted return on average tangible equity was 16.40% for the same period.
  • Net interest margin for the first quarter of 2025 reached 3.04%, compared to 2.57% for the fourth quarter of 2024. On a non-GAAP basis, our core net interest margin was 2.68% for the first quarter of 2025, compared to 2.57% for the fourth quarter of 2024.
  • Asset quality continues to be very strong, highlighted by loans 30-89 days past due of 0.07% of total loans and non-performing loans of 0.15% of total loans at March 31, 2025.
  • Regulatory capital ratios continue to be well in excess of required levels. As of March 31, 2025, the common equity ratio was 9.19% and, on a non-GAAP basis, tangible common equity ratio was 6.49%, compared to 9.15% and 7.64%, respectively, at December 31, 2024. The decrease in capital between periods was driven by the acquisition of Northway during the first quarter of 2025.

NORTHWAY ACQUISITION

The Company acquired Northway and its subsidiary, Northway Bank, by merger on January 2, 2025 ("Acquisition Date"), in an all-stock transaction valued at $96.5 million through the issuance of 2.3 million shares of its common stock. The Company recorded the acquired assets and liabilities at their estimated provisional fair value, with limited exceptions, as of the Acquisition Date in accordance with GAAP. The merger with Northway provides the Company with an expanded branch network throughout New Hampshire, additional scale through the acquisition of assets, a strong, low-cost core deposit franchise, and the ability to create revenue and cost synergies.

As of the Acquisition Date, after provisional purchase accounting adjustments, the Northway merger resulted in an increase in the Company's assets of $1.2 billion, including $775.7 million in loans and $230.0 million in investments, and an increase in liabilities, including deposits of $971.6 million, which includes $799.1 million in non-maturity deposits, and an increase in borrowings of $127.6 million. Additionally, core deposit intangible ("CDI") assets provisionally estimated at $48.1 million, or 5.9% of core deposits, were created as of the Acquisition Date. In total, $59.1 million of goodwill was generated, subject to the Company finalizing its purchase accounting for the acquisition over the coming quarters.

The Company designated $103.0 million, or 12%, of the acquired loans as purchase credit deteriorated ("PCD"), and the remaining loans were designated as non-PCD as of the Acquisition Date. The Company established loan loss reserves on the PCD loans within the allowance for credit losses ("ACL") on loans totaling $3.1 million, and a $6.3 million provision for credit losses was recognized as loan loss reserves on the non-PCD loans within the ACL on loans as of the Acquisition Date.

The Company is on track to achieve its previously reported annual cost savings goal of 35% of Northway's operating expenses, of which 75% is to be realized during 2025.

During the first quarter of 2025, the Company incurred pre-tax acquisition-related costs of $7.5 million. Through March 31, 2025, the Company, including the costs Northway had incurred prior to the merger, has incurred pre-tax acquisition-related costs totaling $10.8 million and is on track to achieve its previously reported merger costs target of $13.5 million.

The Company's financial results for any period ended prior to January 2, 2025, reflect Camden National's results on a standalone basis. As a result, the Company's financial results for the first quarter of 2025 may not be directly comparable to prior reported periods.

FINANCIAL CONDITION

As of March 31, 2025, total assets were $7.0 billion, an increase of $1.2 billion since December 31, 2024, primarily due to the assets acquired in the Northway merger.

Investments totaled $1.4 billion on March 31, 2025, an increase of 21% since December 31, 2024, primarily due to the $227.4 million of securities acquired in the Northway merger. Shortly after the Acquisition Date, the Company sold certain low-yield, longer duration available-for-sale ("AFS") investment securities acquired from Northway. These investment securities were sold at their fair value of $56.0 million, and, as such, the sale did not result in any gain or loss. The Company used the cash proceeds from the sale and additional cash on hand to purchase $76.7 million of securities at current market rates to enhance future earnings and manage the duration risk within its investment portfolio. As of March 31, 2025 and December 31, 2024, the duration of the Company's total investment portfolio was 5.3 years and 5.2 years, respectively.

Loans totaled $4.9 billion on March 31, 2025, an increase of $769.8 million, or 19%, since December 31, 2024, primarily due to the acquisition of Northway. At March 31, 2025, our committed loan pipeline totaled $106.4 million, an increase of 53% over December 31, 2024. We continue to sell the majority of our residential mortgage production. For the first quarter of 2025, we sold 58% of our residential mortgage production.

Asset quality continues to be a strength of the Company's financial position. On March 31, 2025, loans 30-89 days past due were 0.07% of total loans and annualized net charge-offs for the first quarter of 2025 were 0.08% of average loans. The Company's ACL on loans was 0.96% as of March 31, 2025, compared to 0.87% as of December 31, 2024. The increase of 9 basis points resulted from the loans acquired from Northway and the change in our macroeconomic outlook. On March 31, 2025, the ACL on loans was 6.4 times total non-performing loans, compared to 5.5 times as of December 31, 2024.

Deposits totaled $5.6 billion on March 31, 2025, an increase of $964.3 million, or 21%, primarily due to the Northway acquisition. Organic deposit balances decreased $7.4 million during the first quarter of 2025, which included the expected drawdown from one large customer relationship of $61.8 million. As of March 31, 2025, our loan-to-deposit ratio was 87%, compared to 89% at December 31, 2024.

Borrowings were $628.7 million as of March 31, 2025, an increase of $83.8 million, or 15%, driven by repurchase agreements and subordinated debentures acquired in the Northway merger. Shortly after the Acquisition Date, the Company pre-paid all of Northway's Federal Home Loan Bank borrowings totaling $45.0 million to optimize its earnings and the balance sheet.

As of March 31, 2025, the Company's common equity Tier 1 risk-based capital ratio was 10.78%, Tier 1 risk-based capital ratio was 12.09%, total risk-based capital ratio was 13.13% and Tier 1 leverage ratio was 8.58%. Each of these regulatory capital ratios continue to be well in excess of regulatory capital requirements.

The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.15%, based on the Company's closing share price of $40.47 as reported by NASDAQ on March 31, 2025. The dividend will be payable on April 30, 2025, to shareholders of record on April 15, 2025.

FINANCIAL OPERATING RESULTS (Q1 2025 vs. Q4 2024)

Net income for the first quarter of 2025 was $7.3 million, a decrease of $7.3 million, or 50%, compared to the fourth quarter of 2024. The decrease between periods was driven by an increase in expenses associated with the acquisition of Northway, including (1) acquisition-related costs of $5.8 million, after tax, and (2) the recognition of $5.0 million, after tax, of provision expense to record the ACL on loans for acquired non-PCD loans. Partially offsetting these costs was a one-time decrease in income tax expense of $2.4 million upon revaluation of our deferred tax assets as our presence in New Hampshire grew due to the acquisition of Northway. Excluding the items noted above, on a non-GAAP basis, the Company reported adjusted net income for the first quarter of 2025 of $16.0 million, an increase of $961,000, or 6%, over the fourth quarter of 2024.

Net interest income for the first quarter of 2025 was $48.9 million, an increase of $13.4 million, or 38%, compared to the fourth quarter of 2024. The increase between periods was driven by net interest margin expansion of 47 basis points between periods to 3.04% for the first quarter of 2025, and an increase in average earning assets of $965.8 million, or 18%, primarily driven by the acquisition of Northway. The increase in net interest margin was driven by continued expansion of our core net interest margin between periods, which increased 11 basis points between periods to 2.68% for the first quarter, and by net fair value mark accretion on acquired interest-earning assets and liabilities, which totaled $5.0 million before taxes, contributing 36 basis points to our reported net interest margin for the first quarter of 2025.

Provision expense of $9.4 million was recorded for the first quarter of 2025, consisting of provision for loan losses of $8.9 million and provision for unfunded commitments of $556,000. The increase for the provision for loan losses was driven by the $6.3 million provision for non-PCD loans acquired and the change in our macroeconomic forecast between periods.

Non-interest income for the first quarter of 2025 was $11.2 million, a decrease of $970,000, or 8%, compared to the fourth quarter of 2024. The benefit to non-interest income from the acquisition of Northway and higher brokerage income of $256,000 was offset by the timing and volatility of certain revenue streams, including: (1) a decrease in mortgage banking income of $425,000 between periods primarily driven by the negative change in fair value on loans held for sale and residential mortgage loan pipelines, (2) timing of recognition of our annual debit card bonus of $407,000 in the fourth quarter of 2024, and (3) lower derivative income on back-to-back loan swaps and other investment income between periods of $663,000.

Non-interest expense for the first quarter of 2025 was $44.5 million, an increase of $16.1 million, or 57%, compared to the fourth quarter of 2024. The increase in non-interest expense between periods reflects the acquisition of Northway and operating two franchises for the entirety of the quarter. The Company anticipates cost savings to increase beginning in the second quarter of 2025, resulting from the completion of the Northway integration in mid-March 2025. Additionally, the Company had higher costs between periods due to an increase in acquisition-related costs of $7.1 million and an increase in amortization of CDI assets of $1.3 million as the Company recorded a CDI asset of $48.1 million with the acquisition of Northway.

The company recorded a benefit of income taxes for the quarter of $1.2 million in the first quarter, a decrease of $4.9 million in income tax expense from the fourth quarter of 2025. The Company's estimated normalized effective tax rate is 20.6%. However, upon the acquisition of Northway, the Company's estimated deferred tax rate increased, resulting in a one-time revaluation of its deferred tax assets that resulted in a tax benefit in the first quarter of 2025 of $2.4 million.

2025 ANNUAL MEETING OF SHAREHOLDERS

Camden National has scheduled its annual meeting of shareholders ("Annual Meeting") for Tuesday, May 20, 2025, at 9:00 a.m., Eastern Daylight Time. The Annual Meeting will be held virtually via a live audio webcast at www.virtualshareholdermeeting.com/CAC2025 and in person at Camden National's Hanley Center, Fox Ridge Office Park, 245 Commercial Street, Rockport, Maine 04856. We encourage all shareholders as of the March 26, 2025 record date to attend the Annual Meeting.

Q1 2025 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 2:00 p.m., Eastern Time, Tuesday, May 6, 2025 to discuss its first 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):                   

(929) 526-1599

Participant access code:                               

893714

Live webcast:                                                 

https://events.q4inc.com/attendee/128697402 

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 $7.0 billion in assets. Founded in 1875, Camden National Bank has 73 branches 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, 2023, 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. 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; tangible book value per share; core deposits and average core deposits and core net interest margin. 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

(In thousands, except number of shares and per share data)


March 31,
2025


December 31,
2024


March 31,
2024

Financial Condition Data







Loans


$  4,885,086


$   4,115,259


$   4,121,040

Total assets


6,964,785


5,805,138


5,794,785

Deposits


5,597,478


4,633,167


4,551,524

Shareholders' equity


640,054


531,231


501,577

Operating Data and Per Share Data







Net income


$         7,326


$        14,666


$        13,272

Adjusted net income (non-GAAP)(1)


16,047


15,086


12,553

Pre-tax, pre-provision income (non-GAAP)(1)


15,603


19,211


14,233

Adjusted pre-tax, pre-provision income (non-GAAP)(1)


23,128


19,643


14,233

Diluted EPS


0.43


1.00


0.91

Adjusted diluted EPS (non-GAAP)(1)


0.95


1.03


0.86

Profitability Ratios







Return on average assets


0.43 %


1.01 %


0.93 %

Adjusted return on average assets (non-GAAP)(1)


0.94 %


1.04 %


0.88 %

Return on average equity


4.75 %


10.99 %


10.77 %

Adjusted return on average equity (non-GAAP)(1)


10.40 %


11.30 %


10.19 %

Return on average tangible equity (non-GAAP)(1)


8.09 %


13.50 %


13.46 %

Adjusted return on average tangible equity (non-GAAP)(1)


16.40 %


13.88 %


12.74 %

GAAP efficiency ratio


74.02 %


59.62 %


65.78 %

Efficiency ratio (non-GAAP)(1)


58.72 %


58.22 %


65.21 %

Net interest margin (fully-taxable equivalent)


3.04 %


2.57 %


2.30 %

Core net interest margin (fully-taxable equivalent) (non-GAAP)(1)


2.68 %


2.57 %


2.30 %

Asset Quality Ratios







ACL on loans to total loans


0.96 %


0.87 %


0.86 %

Non-performing loans to total loans


0.15 %


0.12 %


0.14 %

Loans 30-89 days past due to total loans


0.07 %


0.05 %


0.05 %

Annualized net charge-offs to average loans


0.08 %


0.04 %


0.02 %

Capital Ratios







Common equity ratio


9.19 %


9.15 %


8.66 %

Tangible common equity ratio (non-GAAP)(1)


6.49 %


7.64 %


7.12 %

Tier 1 leverage capital ratio


8.58 %


9.90 %


9.59 %

Total risk-based capital ratio


13.13 %


15.11 %


14.52 %


(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)


March 31,
2025


December 31,
2024


March 31,
2024


% Change
Mar 2025
vs. Dec
2024


% Change
Mar 2025
vs. Mar
2024

ASSETS











Cash, cash equivalents and restricted cash


$          219,414


$          214,963


$          176,719


2 %


24 %

Investments:











Trading securities


4,860


5,243


4,847


(7) %


— %

Available-for-sale securities, at fair value


836,130


593,749


601,576


41 %


39 %

Held-to-maturity securities, at amortized cost


516,682


517,778


540,349


— %


(4) %

Other investments


26,284


22,514


16,392


17 %


60 %

Total investments


1,383,956


1,139,284


1,163,164


21 %


19 %

Loans held for sale, at fair value


11,059


11,049


9,524


— %


16 %

Loans:











Commercial real estate


2,067,098


1,711,964


1,702,952


21 %


21 %

Commercial


487,409


382,785


397,395


27 %


23 %

Residential real estate


2,028,062


1,752,249


1,762,482


16 %


15 %

Consumer and home equity


302,517


268,261


258,211


13 %


17 %

Total loans


4,885,086


4,115,259


4,121,040


19 %


19 %

      Less: allowance for credit losses on loans


(46,723)


(35,728)


(35,613)


31 %


31 %

       Net loans


4,838,363


4,079,531


4,085,427


19 %


18 %

Goodwill and core deposit intangible assets


200,770


95,112


95,529


111 %


110 %

Other assets


311,223


265,199


264,422


17 %


18 %

Total assets


$       6,964,785


$       5,805,138


$       5,794,785


20 %


20 %

LIABILITIES AND SHAREHOLDERS' EQUITY











Liabilities











Deposits:











Non-interest checking


$       1,132,648


$          925,571


$          929,314


22 %


22 %

Interest checking


1,714,944


1,483,589


1,503,045


16 %


14 %

Savings and money market


1,828,332


1,511,589


1,379,437


21 %


33 %

Certificates of deposit


703,873


532,424


585,786


32 %


20 %

Brokered deposits


217,681


179,994


153,942


21 %


41 %

Total deposits


5,597,478


4,633,167


4,551,524


21 %


23 %

Short-term borrowings


567,436


500,621


601,499


13 %


(6) %

Junior subordinated debentures


61,290


44,331


44,331


38 %


38 %

Accrued interest and other liabilities


98,527


95,788


95,854


3 %


3 %

Total liabilities


6,324,731


5,273,907


5,293,208


20 %


19 %

Commitments and Contingencies











Shareholders' Equity











Common stock, no par value


213,589


116,425


116,449


83 %


83 %

Retained earnings


508,720


509,452


488,143


— %


4 %

Accumulated other comprehensive loss:











Net unrealized loss on debt securities, net of tax


(89,613)


(104,015)


(111,357)


(14) %


(20) %

Net unrealized gain on cash flow hedging derivative
     instruments, net of tax


6,953


8,958


8,587


(22) %


(19) %

Net unrecognized loss on postretirement plans, net of tax


405


411


(245)


(1) %


(265) %

Total accumulated other comprehensive loss


(82,255)


(94,646)


(103,015)


(13) %


(20) %

Total shareholders' equity


640,054


531,231


501,577


20 %


28 %

Total liabilities and shareholders' equity


$       6,964,785


$       5,805,138


$       5,794,785


20 %


20 %

 

Consolidated Statements of Income Data

(unaudited)




For The

Three Months Ended





(In thousands, except per share data)


March 31,
2025


December 31,
2024


March 31,
2024


% Change
Mar 2025 vs.
Dec 2024


% Change
Mar 2025 vs.
Mar 2024

Interest Income











Interest and fees on loans


$            66,549


$            54,035


$            51,709


23 %


29 %

Taxable interest on investments


9,772


6,925


7,027


41 %


39 %

Nontaxable interest on investments


468


461


465


2 %


1 %

Dividend income


520


408


312


27 %


67 %

Other interest income


1,086


1,662


670


(35) %


62 %

Total interest income


78,395


63,491


60,183


23 %


30 %

Interest Expense











Interest on deposits


24,621


23,408


23,178


5 %


6 %

Interest on borrowings


4,018


4,134


5,198


(3) %


(23) %

Interest on junior subordinated debentures


898


540


534


66 %


68 %

Total interest expense


29,537


28,082


28,910


5 %


2 %

Net interest income


48,858


35,409


31,273


38 %


56 %

Provision (credit) for credit losses


9,429


809


(2,102)


N.M.


N.M.

Net interest income after provision (credit) for credit
     losses


39,429


34,600


33,375


14 %


18 %

Non-Interest Income











Debit card income


3,233


3,553


2,866


(9) %


13 %

Service charges on deposit accounts


2,318


2,136


2,027


9 %


14 %

Income from fiduciary services


1,838


1,834


1,749


— %


5 %

Brokerage and insurance commissions


1,697


1,441


1,239


18 %


37 %

Bank-owned life insurance


660


720


683


(8) %


(3) %

Mortgage banking income, net


508


933


808


(46) %


(37) %

Other income


942


1,549


950


(39) %


(1) %

Total non-interest income


11,196


12,166


10,322


(8) %


8 %

Non-Interest Expense











Salaries and employee benefits


20,243


15,973


15,954


27 %


27 %

Merger and acquisition costs


7,525


432


—


N.M.


N.M.

Furniture, equipment and data processing


4,731


3,660


3,629


29 %


30 %

Net occupancy costs


3,033


1,971


2,070


54 %


47 %

Debit card expense


1,690


1,344


1,264


26 %


34 %

Consulting and professional fees


1,498


786


860


91 %


74 %

Amortization of core deposit intangible assets


1,473


139


139


N.M.


N.M.

Regulatory assessments


986


804


857


23 %


15 %

Other real estate owned and collection costs, net


90


50


10


80 %


N.M.

Other expenses


3,182


3,205


2,579


(1) %


23 %

Total non-interest expense


44,451


28,364


27,362


57 %


62 %

Income before income tax (benefit) expense


6,174


18,402


16,335


(66) %


(62) %

Income Tax (Benefit) Expense


(1,152)


3,736


3,063


(131) %


(138) %

Net Income


$              7,326


$            14,666


$            13,272


(50) %


(45) %

Per Share Data











Basic earnings per share


$                0.43


$                 1.01


$                 0.91


(57) %


(53) %

Diluted earnings per share


$                0.43


$                 1.00


$                 0.91


(57) %


(53) %


N.M. = Not meaningful

 

Quarterly Average Balance and Yield/Rate Analysis

(unaudited)




Average Balance


Yield/Rate



For The Three Months Ended


For The Three Months Ended

(Dollars in thousands)


March 31,
2025


December 31,
2024


March 31,
2024


March 31,
2025


December 31,
2024


March 31,
2024

Assets













Interest-earning assets:













Interest-bearing deposits in other banks
     and other interest-earning assets


$          84,211


$       130,405


$          44,487


4.44 %


4.49 %


4.34 %

Investments - taxable


1,375,818


1,150,351


1,187,699


3.04 %


2.61 %


2.53 %

Investments - nontaxable(1)


62,485


61,929


62,385


3.79 %


3.77 %


3.78 %

Loans(2):













Commercial real estate


2,065,534


1,707,914


1,682,599


5.69 %


5.36 %


4.94 %

Commercial(1)


409,037


359,954


390,019


6.37 %


6.29 %


6.05 %

Municipal(1)


90,554


15,237


14,653


6.17 %


5.30 %


4.40 %

Residential real estate


2,034,024


1,766,143


1,773,077


4.71 %


4.45 %


4.41 %

Consumer and home equity


303,147


267,065


257,305


7.39 %


7.52 %


7.89 %

     Total loans 


4,902,296


4,116,313


4,117,653


5.45 %


5.19 %


5.00 %

Total interest-earning assets


6,424,810


5,458,998


5,412,224


4.91 %


4.61 %


4.44 %

Other assets


477,556


315,181


305,756







Total assets


$     6,902,366


$    5,774,179


$     5,717,980




















Liabilities & Shareholders' Equity













Deposits:













Non-interest checking


$     1,107,398


$       948,015


$        933,321


— %


— %


— %

Interest checking


1,703,056


1,449,281


1,490,185


1.85 %


2.29 %


2.53 %

Savings


894,803


726,179


599,791


0.98 %


1.06 %


0.20 %

Money market


918,637


779,893


764,585


2.63 %


3.09 %


3.29 %

Certificates of deposit


706,851


537,922


582,806


3.72 %


3.67 %


3.77 %

Total deposits


5,330,745


4,441,290


4,370,688


1.70 %


1.91 %


1.97 %

Borrowings:













Brokered deposits


196,510


170,638


133,385


4.62 %


4.93 %


5.31 %

Customer repurchase agreements


236,437


182,017


182,487


1.29 %


1.58 %


1.60 %

Junior subordinated debentures


61,282


44,331


44,331


5.94 %


4.84 %


4.85 %

Other borrowings


348,402


325,000


401,683


3.80 %


4.17 %


4.40 %

Total borrowings


842,631


721,986


761,886


3.44 %


3.74 %


3.96 %

Total funding liabilities


6,173,376


5,163,276


5,132,574


1.94 %


2.16 %


2.27 %

Other liabilities


103,201


80,144


89,893







Shareholders' equity


625,789


530,759


495,513







Total liabilities & shareholders' equity


$     6,902,366


$    5,774,179


$     5,717,980







Net interest rate spread (fully-taxable equivalent)


2.97 %


2.45 %


2.17 %

Net interest margin (fully-taxable equivalent)


3.04 %


2.57 %


2.30 %

Core net interest margin (fully-taxable equivalent)(3)


2.68 %


2.57 %


2.30 %


(1)  Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

(2)  Non-accrual loans and loans held for sale are included in total average loans.

(3)  This is a non-GAAP measure. Please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."

 

Loan And Deposit Organic Growth Data

 (Unaudited)




(A)


(B)


(C)


(D) = (A) - (B) - (C)

(In thousands)


March 31,

2025


December 31,

2024


Northway
Acquisition
Purchase
Accounting(1)


Three Months Ended

March 31, 2025

Organic Growth

Loans:











Commercial real estate


$          2,067,098


$         1,711,964


$             360,272


$                (5,138)


— %

Commercial


487,409


382,785


106,487


(1,863)


— %

Residential real estate


2,028,062


1,752,249


273,349


2,464


— %

Consumer and home equity


302,517


268,261


35,555


(1,299)


— %

    Total loans


$          4,885,086


$         4,115,259


$             775,663


$               (5,836)


— %

Deposits:











Non-interest checking


$          1,132,648


$            925,571


$             197,320


$                 9,757


1 %

Interest checking


1,714,944


1,483,589


315,891


(84,536)


(6) %

Savings and money market


1,828,332


1,511,589


285,889


30,854


2 %

Certificates of deposit


703,873


532,424


172,573


(1,124)


— %

Brokered deposits


217,681


179,994


—


37,687


21 %

Total deposits


$          5,597,478


$         4,633,167


$             971,673


$               (7,362)


— %


(1)  Represents fair value marks recorded on loans and deposits as of the Acquisition Date, January 2, 2025

 

Asset Quality Data

(unaudited)


(In thousands)


At or for the

Three Months
Ended

March 31,

2025


At or for the

Year Ended

December 31,

2024


At or for the

Nine Months
Ended

September 30,

2024


At or for the

Six Months
Ended

June 30,

2024


At or for the

Three Months
Ended

March 31,

2024

Non-accrual loans:











Residential real estate


$              4,322


$              1,891


$              2,497


$              2,497


$              2,473

Commercial real estate


271


559


130


79


205

Commercial


1,803


1,927


2,057


4,409


1,980

Consumer and home equity


855


452


666


810


1,000

Total non-accrual loans


7,251


4,829


5,350


7,795


5,658

Accruing loans past due 90 days


—


—


—


—


—

Total non-performing loans


7,251


4,829


5,350


7,795


5,658

Other real estate owned


72


—


—


—


—

Total non-performing assets


$              7,323


$              4,829


$              5,350


$              7,795


$              5,658

Loans 30-89 days past due:











Residential real estate


$              1,754


$                 558


$                 216


$                 400


$                 797

Commercial real estate


380


689


239


678


92

Commercial


767


393


578


539


537

Consumer and home equity


440


621


358


628


618

Total loans 30-89 days past due


$              3,341


$              2,261


$              1,391


$              2,245


$              2,044

ACL on loans at the beginning of the period


$            35,728


$             36,935


$            36,935


$            36,935


$            36,935

ACL established on acquired PCD loans


3,071


—


—


—


—

Provision (credit) for loan losses


8,873


53


(693)


(976)


(1,164)

Charge-offs:











Residential real estate


4


—


—


—


—

Commercial real estate


191


—


—


—


—

Commercial


896


1,784


1,157


763


309

Consumer and home equity


29


99


83


55


36

Total charge-offs 


1,120


1,883


1,240


818


345

Total recoveries 


(171)


(623)


(412)


(271)


(187)

Net charge-offs


949


1,260


828


547


158

ACL on loans at the end of the period


$            46,723


$            35,728


$            35,414


$            35,412


$            35,613

Components of ACL:











ACL on loans


$            46,723


$            35,728


$            35,414


$            35,412


$            35,613

ACL on off-balance sheet credit
     exposures(1)


3,362


2,806


2,743


2,787


2,325

ACL, end of period


$            50,085


$            38,534


$            38,157


$            38,199


$            37,938

Ratios:











Non-performing loans to total loans


0.15 %


0.12 %


0.13 %


0.19 %


0.14 %

Non-performing assets to total assets


0.11 %


0.08 %


0.09 %


0.14 %


0.10 %

ACL on loans to total loans


0.96 %


0.87 %


0.86 %


0.86 %


0.86 %

Net charge-offs to average loans
     (annualized):











Quarter-to-date


0.08 %


0.04 %


0.03 %


0.04 %


0.02 %

Year-to-date


0.08 %


0.03 %


0.03 %


0.03 %


0.02 %

ACL on loans to non-performing loans


644.37 %


553.07 %


506.28 %


367.31 %


466.69 %

Loans 30-89 days past due to total loans


0.07 %


0.05 %


0.03 %


0.05 %


0.05 %


(1)  Presented within accrued interest and other liabilities on the consolidated statements of condition.

 

Reconciliation of non-GAAP to GAAP Financial Measures

(unaudited)


Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity:



For the Three Months Ended

(In thousands, except number of shares, per share data and ratios)


March 31,
2025


December 31,
2024


March 31,
2024

Adjusted Net Income:







Net income, as presented


$             7,326


$           14,666


$           13,272

Adjustments before taxes:







Provision for non-PCD acquired loans


6,294


—


—

Provision for acquired unfunded commitments


249


—


—

Merger and acquisition costs


7,525


432


—

Signature Bank bond recovery


—


—


(910)

Total adjustments before taxes


14,068


432


(910)

Tax impact of above adjustments(1)


(2,926)


(12)


191

Adjustment for deferred tax valuation adjustment(2)


(2,421)


—


—

Adjusted net income


$           16,047


$           15,086


$           12,553








Adjusted Diluted Earnings per Share:







Diluted earnings per share, as presented


$               0.43


$               1.00


$               0.91

Adjustments before taxes:







Provision for non-PCD acquired loans


0.37


—


—

Provision for acquired unfunded commitments


0.01


—


—

Merger and acquisition costs


0.45


0.03


—

Signature Bank bond recovery


—


—


(0.06)

Total adjustments before taxes


0.83


0.03


(0.06)

Tax impact of above adjustments(1)


(0.17)


—


0.01

Adjustment for deferred tax valuation adjustment(2)


(0.14)


—


—

Adjusted diluted earnings per share


$               0.95


$               1.03


$               0.86








Adjusted Return on Average Assets:







Return on average assets, as presented


0.43 %


1.01 %


0.93 %

Adjustments before taxes:







Provision for non-PCD acquired loans


0.37 %


— %


— %

Provision for acquired unfunded commitments


0.01 %


— %


— %

Merger and acquisition costs


0.44 %


0.03 %


— %

Signature Bank bond recovery


— %


— %


(0.06) %

Total adjustments before taxes


0.82 %


0.03 %


(0.06) %

Tax impact of above adjustments(1)


(0.17) %


— %


0.01 %

Adjustment for deferred tax valuation adjustment(2)


(0.14) %


— %


— %

Adjusted return on average assets


0.94 %


1.04 %


0.88 %








Adjusted Return on Average Equity:







Return on average equity, as presented


4.75 %


10.99 %


10.77 %

Adjustments before taxes:







Provision for non-PCD acquired loans


4.08 %


— %


— %

Provision for acquired unfunded commitments


0.16 %


— %


— %

Merger and acquisition costs


4.88 %


0.32 %


— %

Signature Bank bond recovery


— %


— %


(0.74) %

Total adjustments before taxes


9.12 %


0.32 %


(0.74) %

Tax impact of above adjustments(1)


(1.90) %


(0.01) %


0.16 %

Adjustment for deferred tax valuation adjustment(2)


(1.57) %


— %


— %

Adjusted return on average equity


10.40 %


11.30 %


10.19 %



(1)

Assumed a 21% tax rate.

(2)

A One-time Deferred Tax Valuation Adjustment of $2.4 Million Resulted from a Change in the Apportionment of State Income Taxes Due to the Northway Merger.

 

Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income



For the

Three Months Ended

(In thousands)


March 31,
2025


December 31,
2024


March 31,
2024

Net income, as presented


$                7,326


$              14,666


$              13,272

Adjustment for provision (credit) for credit losses


9,429


809


(2,102)

Adjustment for income tax (benefit) expense


(1,152)


3,736


3,063

 Pre-tax, pre-provision income


$              15,603


$              19,211


$              14,233

Adjustment for merger and acquisition costs


7,525


432


—

Adjusted pre-tax, pre-provision income


$              23,128


$              19,643


$              14,233

 

Efficiency Ratio:









For the

Three Months Ended

(Dollars in thousands)


March 31,
2025


December 31,
2024


March 31,
2024

Non-interest expense, as presented


$           44,451


$           28,364


$           27,362

Adjustment for merger and acquisition costs


(7,525)


(432)


—

Adjustment for amortization of core deposit intangible assets


$           (1,473)


$              (139)


$              (139)

Adjusted non-interest expense


$           35,453


$           27,793


$           27,223

Net interest income, as presented


$           48,858


$           35,409


$           31,273

Adjustment for the effect of tax-exempt income(1)


326


162


150

Non-interest income, as presented


11,196


12,166


10,322

Adjusted net interest income plus non-interest income


$           60,380


$           47,737


$           41,745

GAAP efficiency ratio


74.02 %


59.62 %


65.78 %

Non-GAAP efficiency ratio


58.72 %


58.22 %


65.21 %


(1)  Assumed a 21% tax rate.

 

Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity:



For the

Three Months Ended

(Dollars in thousands)


March 31,
2025


December 31,
2024


March 31,
2024

Return on Average Tangible Equity:







Net income, as presented


$             7,326


$           14,666


$           13,272

Adjustment for amortization of core deposit intangible assets


1,473


139


139

Tax impact of above adjustment(1)


(309)


(29)


(29)

Net income, adjusted for amortization of core deposit intangible assets


$             8,490


$           14,776


$           13,382

Average equity, as presented


$         625,789


$         530,759


$         495,513

Adjustment for average goodwill and core deposit intangible assets


(200,125)


(95,179)


(95,604)

Average tangible equity


$         425,664


$         435,580


$         399,909

Return on average equity


4.75 %


10.99 %


10.77 %

Return on average tangible equity


8.09 %


13.50 %


13.46 %

Adjusted Return on Average Tangible Equity:







Adjusted net income (refer to the "Adjusted Net Income" non-GAAP reconciliation table)


$           16,047


$           15,086


$           12,553

Adjustment for amortization of core deposit intangible assets


1,473


139


139

Tax impact of above adjustment(1)


(309)


(29)


(29)

Adjusted net income, adjusted for amortization of core deposit intangible assets


$           17,211


$           15,196


$           12,663

Adjusted return on average tangible equity


16.40 %


13.88 %


12.74 %


(1)  Assumed a 21% tax rate.

 

Tangible Book Value Per Share and Tangible Common Equity Ratio:

(In thousands, except number of shares, per share data and ratios)


March 31,
2025


December 31,
2024


March 31,
2024

Tangible Book Value Per Share:







Shareholders' equity, as presented


$         640,054


$         531,231


$         501,577

Adjustment for goodwill and core deposit intangible assets


(200,770)


(95,112)


(95,529)

Tangible shareholders' equity


$         439,284


$         436,119


$         406,048

Shares outstanding at period end


16,885,571


14,579,339


14,593,830

Book value per share


$             37.91


$             36.44


$             34.37

Tangible book value per share


26.02


29.91


27.82

Tangible Common Equity Ratio:

Total assets


$      6,964,785


$      5,805,138


$      5,794,785

Adjustment for goodwill and core deposit intangible assets


(200,770)


(95,112)


(95,529)

Tangible assets


$      6,764,015


$      5,710,026


$      5,699,256

Common equity ratio


9.19 %


9.15 %


8.66 %

Tangible common equity ratio


6.49 %


7.64 %


7.12 %

 

Core Deposits:

(In thousands)


March 31,
2025


December 31,
2024


March 31,
2024

Total deposits


$         5,597,478


$         4,633,167


$         4,551,524

Adjustment for certificates of deposit


(703,873)


(532,424)


(585,786)

Adjustment for brokered deposits


(217,681)


(179,994)


(153,942)

Core deposits


$         4,675,924


$         3,920,749


$         3,811,796

 

Average Core Deposits:



For the

Three Months Ended

(In thousands)


March 31,
2025


December 31,
2024


March 31,
2024

Total average deposits, as presented(1)


$         5,330,745


$         4,441,290


$         4,370,688

Adjustment for average certificates of deposit


(706,851)


(537,922)


(582,806)

Average core deposits


$         4,623,894


$         3,903,368


$         3,787,882



(1)

Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.

 

Core Net Interest Margin (fully-taxable equivalent):



For the

Three Months Ended

(In thousands)


March 31,
2025


December 31,
2024


March 31,
2024

Net interest income, tax equivalent, as presented


3.04 %


2.57 %


2.30 %

Net accretion income on loans from purchase accounting(1)


(0.30) %


—


—

Net accretion income on investments from purchase accounting(2)


(0.07) %


—


—

Net amortization on time deposits and borrowings from purchase accounting(3)


0.01 %


—


—

Core net interest margin (fully-taxable equivalent)


2.68 %


2.57 %


2.30 %


(1)   Impact from loan fair value mark accretion of $4.3 million.

(2)   Impact from investment fair value accretion of $831,000.

(3)   Impact from time deposits and borrowings amortization of $131,000.

 

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SOURCE Camden National Corporation