CAMDEN, Maine, Oct. 28, 2025 /PRNewswire/ -- Camden National Corporation (NASDAQ:CAC, ", Camden National", or the ", Company", )) reported earnings for the quarter ended September 30, 2025, of $21.2 million and diluted earnings per share ("EPS") of $1.25, both increases of 51%, compared to the second quarter of 2025. For the third quarter ended September 30, 2025, the Company reported a return on average assets of 1.21%, a return on average equity of 12.75% and a return on average tangible equity (non-GAAP) of 19.14%.
"We are proud to report record third quarter earnings of $21.2 million, setting a new highwater mark for the organization, and diluted earnings per share of $1.25, marking our strongest quarterly performance since 2021," said Simon Griffiths, President and Chief Executive Officer of Camden National. "These financial results reflect the strength and resilience of our core franchise and mark a pivotal moment for the organization. With the successful acquisition and integration of Northway Financial, Inc. earlier this year, we are well-positioned to accelerate growth and deliver sustained value for our shareholders."
THIRD QUARTER 2025 HIGHLIGHTS
Net income for the third quarter of 2025 totaled $21.2 million, an increase of 51% over the second quarter of 2025, and, on a non-GAAP basis, pre-tax, pre-provision income increased 19% over the same period to $29.5 million for the third quarter of 2025.
Net interest margin for the third quarter of 2025 increased 10 basis points to 3.16%, compared to the second quarter of 2025.
The GAAP efficiency ratio for the third quarter of 2025 was 54.94% and was 52.47% on a non-GAAP basis, improving from 60.37% and 55.47%, respectively, compared to the second quarter of 2025.
Loans for the third quarter of 2025 grew 4% on an annualized basis.
Book value per share increased 4% during the third quarter of 2025 to $39.97 at September 30, 2025, and tangible book value per share (non-GAAP) increased 6% during the same period to $28.42 at September 30, 2025.
FINANCIAL CONDITION
As of September 30, 2025, total assets were $7.0 billion, representing a 1% increase since June 30, 2025.
Investments totaled $1.4 billion on September 30, 2025, representing a 1% increase from June 30, 2025. The duration of the Company's total investment portfolio was 5.1 years as of September 30, 2025, compared to 5.3 years as of June 30, 2025.
Loans totaled $5.0 billion on September 30, 2025, representing a 1% increase compared to the second quarter of 2025. The increase during the third quarter was driven by a 4% increase in the commercial real estate loan portfolio and a 5% increase in the home equity loan portfolio.
Deposits totaled $5.4 billion as of September 30, 2025, representing a 2% decrease from June 30, 2025. Excluding brokered deposits, average deposits grew by 2% during the third quarter of 2025, driven by seasonal inflows during the summer months across our markets. As of September 30, 2025, the Company's loan-to-deposit ratio was 93%, compared to 89% at June 30, 2025.
As of September 30, 2025, the Company's common equity Tier 1 risk-based capital ratio was 11.17%, Tier 1 risk-based capital ratio was 12.47%, total risk-based capital ratio was 13.47% and Tier 1 leverage ratio was 8.94%. The Company's regulatory capital ratios continue to be well in excess of regulatory capital requirements and continue to improve as the Company rebuilds its capital position following the acquisition of Northway Financial, Inc. ("Northway") in the first quarter of 2025.
The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.35%, based on the Company's closing share price of $38.59 as reported by NASDAQ on September 30, 2025. The dividend will be payable on October 31, 2025, to shareholders of record on October 15, 2025.
ASSET QUALITY
Overall, the Company's asset quality remains strong as of September 30, 2025, as evident in its asset quality metrics, highlighted by non-performing assets of 0.12% of total assets and past-due loans of 0.16% of total loans.
At June 30, 2025, the Company proactively disclosed and carried a specific reserve of $6.0 million on a syndicated loan in which the Company participated for a telecommunication services company that had entered into bankruptcy. During the third quarter of 2025, the Company charged-off $10.7 million of the $12.2 million carrying value of the loan due to developments in the bankruptcy proceedings.
The allowance for credit losses ("ACL") on loans was 0.91% of total loans as of September 30, 2025, compared to 1.08% at June 30, 2025. The decrease in the ACL on loans between periods reflects the resolution of the syndicated loan discussed above and the continued strength of the overall loan portfolio. At September 30, 2025, the ACL on loans was 5.5 times total non-performing loans.
FINANCIAL OPERATING RESULTS (Q3 2025 vs. Q2 2025)
Net interest income for the third quarter of 2025 was $51.3 million, an increase of $2.1 million, or 4%, compared to the second quarter of 2025. This growth was driven by net interest margin expansion of 10 basis points and average loan growth of 1% during the third quarter of 2025.
Provision expense of $3.0 million was recorded for the third quarter of 2025, compared to provision expense of $6.9 million recorded for the second quarter of 2025. An improvement in our forecasted macroeconomic outlook at September 30, 2025, was offset by additional provision expense of $4.7 million for the third quarter of 2025 associated with the partial charge-off for the aforementioned syndication loan.
Non-interest income for the third quarter of 2025 was $14.1 million, an increase of $1.1 million, or 8%, compared to the second quarter of 2025. In 2025, we continue to see strong momentum within our fee income business lines, highlighted by 11% organic growth in assets under administration across our wealth and brokerage business lines to $2.4 billion at September 30, 2025. Additionally, during the third quarter of 2025, the Company sold two non-branch bank properties recognizing a net gain of $675,000 within non-interest income.
Non-interest expense for the third quarter of 2025 was $35.9 million, a decrease of 4% compared to the second quarter of 2025. The decrease in non-interest expense between periods reflects the reduction in merger and acquisition ("M&A") costs of $1.1 million between periods associated with the Northway acquisition completed on January 2, 2025. Non-interest expense, excluding core deposit intangible amortization and M&A costs, for the third quarter of 2025 totaled $34.1 million, a 2% decrease from the second quarter of 2025, as the Company achieved synergies from the Northway acquisition. For the third quarter of 2025, the Company reported a GAAP and non-GAAP efficiency ratio of 54.94% and 52.47%, respectively, compared to 60.37% and 55.47% for the second quarter of 2025.
Q3 2025 CONFERENCE CALL
Camden National Corporation will host a conference call and webcast at 3:00 p.m. Eastern Time on Tuesday, October 28, 2025, to discuss its third 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
Link for live dial-in
(All other locations):
https://www.netroadshow.com/conferencing/global-numbers?confId=89497
Participant access code:
704581
Live webcast:
https://events.q4inc.com/attendee/485415554
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 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
Nine Months Ended
(In thousands, except number of shares and per share data)
September 30,2025
June 30,2025
September 30,2024
September 30,2025
September 30,2024
Financial Condition Data
Loans
$ 5,002,927
$ 4,931,369
$ 4,116,729
$ 5,002,927
$ 4,116,729
Total assets
6,981,522
6,920,044
5,745,180
6,981,522
5,745,180
Deposits
5,402,758
5,514,712
4,575,226
5,402,758
4,575,226
Shareholders' equity
676,444
652,148
529,900
676,444
529,900
Operating Data and Per Share Data
Net income
$ 21,194
$ 14,081
$ 13,073
$ 42,601
$ 38,338
Pre-tax, pre-provision income (non-GAAP)(1)
29,470
24,680
16,093
69,753
45,845
Diluted EPS
1.25
0.83
0.90
2.51
2.62
Profitability Ratios
Return on average assets
1.21 %
0.82 %
0.91 %
0.82 %
0.89 %
Return on average equity
12.75 %
8.77 %
10.04 %
8.86 %
10.13 %
Return on average tangible equity (non-GAAP)(1)
19.14 %
13.71 %
12.40 %
13.84 %
12.60 %
GAAP efficiency ratio
54.94 %
60.37 %
64.23 %
62.84 %
64.58 %
Efficiency ratio (non-GAAP)(1)
52.47 %
55.47 %
62.08 %
55.47 %
63.46 %
Net interest margin (fully-taxable equivalent)
3.16 %
3.06 %
2.46 %
3.09 %
2.37 %
Asset Quality Ratios
ACL on loans to total loans
0.91 %
1.08 %
0.86 %
0.91 %
0.86 %
Non-performing loans to total loans
0.17 %
0.37 %
0.13 %
0.17 %
0.13 %
Capital Ratios
Common equity ratio
9.69 %
9.42 %
9.22 %
9.69 %
9.22 %
Tangible common equity ratio (non-GAAP)(1)
7.09 %
6.77 %
7.69 %
7.09 %
7.69 %
Book value per share
$ 39.97
$ 38.54
$ 36.35
$ 39.97
$ 36.35
Tangible book value per share (non-GAAP)(1)
$ 28.42
$ 26.90
$ 29.82
$ 28.42
$ 29.82
Tier 1 leverage capital ratio
8.94 %
8.74 %
9.84 %
8.94 %
9.84 %
Total risk-based capital ratio
13.47 %
13.35 %
14.85 %
13.47 %
14.85 %
(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)
September 30,2025
June 30,2025
September 30,2024
% Change Sep 2025 vs. Jun 2025
% Change Sep 2025 vs. Sep 2024
ASSETS
Cash, cash equivalents and restricted cash
$ 98,848
$ 113,815
$ 139,512
(13) %
(29) %
Investments:
Trading securities
5,581
5,326
5,141
5 %
9 %
Available-for-sale securities, at fair value
889,765
860,217
603,211
3 %
48 %
Held-to-maturity securities, at amortized cost
495,007
509,298
526,251
(3) %
(6) %
Other investments
31,185
26,879
22,513
16 %
39 %
Total investments
1,421,538
1,401,720
1,157,116
1 %
23 %
Loans held for sale, at fair value
9,775
22,567
11,706
(57) %
(16) %
Loans:
Commercial real estate
2,173,748
2,089,977
1,707,923
4 %
27 %
Commercial
479,461
506,883
382,507
(5) %
25 %
Residential real estate
2,017,675
2,018,332
1,762,395
— %
14 %
Consumer and home equity
332,043
316,177
263,904
5 %
26 %
Total loans
5,002,927
4,931,369
4,116,729
1 %
22 %
Less: allowance for credit losses on loans
(45,501)
(53,022)
(35,414)
(14) %
28 %
Net loans
4,957,426
4,878,347
4,081,315
2 %
21 %
Goodwill and core deposit intangible assets
195,558
197,031
95,251
(1) %
105 %
Other assets
298,377
306,564
260,280
(3) %
15 %
Total assets
$ 6,981,522
$ 6,920,044
$ 5,745,180
1 %
22 %
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits:
Non-interest checking
$ 1,162,149
$ 1,118,080
$ 940,702
4 %
24 %
Interest checking
1,535,482
1,663,335
1,445,828
(8) %
6 %
Savings and money market
1,879,770
1,823,275
1,466,541
3 %
28 %
Certificates of deposit
701,031
698,185
553,481
— %
27 %
Brokered deposits
124,326
211,837
168,674
(41) %
(26) %
Total deposits
5,402,758
5,514,712
4,575,226
(2) %
18 %
Short-term borrowings
748,492
599,367
516,336
25 %
45 %
Long-term borrowings
1,000
—
—
N.M.
N.M.
Junior subordinated debentures
61,441
61,365
44,331
— %
39 %
Accrued interest and other liabilities
91,387
92,452
79,387
(1) %
15 %
Total liabilities
6,305,078
6,267,896
5,215,280
1 %
21 %
Commitments and Contingencies
Shareholders' Equity
Common stock, no par value
215,145
214,365
116,072
— %
85 %
Retained earnings
529,721
515,662
500,927
3 %
6 %
Accumulated other comprehensive loss:
Net unrealized loss on debt securities, net of tax
(74,348)
(84,324)
(91,349)
(12) %
(19) %
Net unrealized gain on cash flow hedging derivative instruments, net of tax
5,532
6,045
4,506
(8) %
23 %
Net unrecognized gain (loss) on postretirement plans, net of tax
394
400
(256)
(2) %
(254) %
Total accumulated other comprehensive loss
(68,422)
(77,879)
(87,099)
(12) %
(21) %
Total shareholders' equity
676,444
652,148
529,900
4 %
28 %
Total liabilities and shareholders' equity
$ 6,981,522
$ 6,920,044
$ 5,745,180
1 %
22 %
N.M. = Not meaningful
Consolidated Statements of Income Data
(unaudited)
For The
Three Months Ended
(In thousands, except per share data)
September 30,2025
June 30,2025
September 30,2024
% Change Sep 2025 vs. Jun 2025
% Change Sep 2025 vs. Sep 2024
Interest Income
Interest and fees on loans
$ 69,070
$ 67,477
$ 55,484
2 %
24 %
Taxable interest on investments
10,314
10,257
6,622
1 %
56 %
Nontaxable interest on investments
456
455
462
— %
(1) %
Dividend income
470
493
389
(5) %
21 %
Other interest income
584
641
764
(9) %
(24) %
Total interest income
80,894
79,323
63,721
2 %
27 %
Interest Expense
Interest on deposits
24,719
24,594
25,051
1 %
(1) %
Interest on borrowings
4,039
4,620
4,549
(13) %
(11) %
Interest on junior subordinated debentures
864
900
534
(4) %
62 %
Total interest expense
29,622
30,114
30,134
(2) %
(2) %
Net interest income
51,272
49,209
33,587
4 %
53 %
Provision for credit losses
2,972
6,920
239
(57) %
N.M.
Net interest income after provision for credit losses
48,300
42,289
33,348
14 %
45 %
Non-Interest Income
Debit card income
3,704
3,646
3,169
2 %
17 %
Service charges on deposit accounts
2,570
2,405
2,168
7 %
19 %
Income from fiduciary services
1,884
1,981
1,817
(5) %
4 %
Brokerage and insurance commissions
1,850
1,794
1,414
3 %
31 %
Mortgage banking income, net
1,092
1,060
973
3 %
12 %
Bank-owned life insurance
957
1,003
709
(5) %
35 %
Other income
2,068
1,178
1,156
76 %
79 %
Total non-interest income
14,125
13,067
11,406
8 %
24 %
Non-Interest Expense
Salaries and employee benefits
20,089
19,392
16,545
4 %
21 %
Furniture, equipment and data processing
4,173
4,294
