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Camden National Q1 2025 Earnings Report
Camden National Corporation reported first quarter 2025 earnings, with total assets reaching $7.0 billion following the acquisition of Northway Financial, Inc.
Key Takeaways
Camden National Corporation reported net income of $7.3 million and diluted EPS of $0.43 for the first quarter of 2025. The results were significantly impacted by the acquisition of Northway Financial, Inc., which contributed to increased assets and net interest margin expansion, despite higher acquisition-related costs.
Successfully completed the acquisition of Northway Financial, Inc. on January 2, 2025, integrating Northway Bank systems and branches by mid-March 2025.
Net interest margin expanded to 3.04% for the first quarter of 2025, up from 2.57% in the previous quarter, driven by core net interest margin expansion and fair value mark accretion.
Total assets increased by $1.2 billion since December 31, 2024, reaching $7.0 billion, primarily due to the Northway merger.
Asset quality remained strong with loans 30-89 days past due at 0.07% of total loans and non-performing loans at 0.15% of total loans as of March 31, 2025.
Camden National
Camden National
Camden National Revenue by Segment
Revenue by Segment
Debit Card Income Revenue
CapyFin.comService Charges on Deposit Accounts Revenue
CapyFin.comIncome from Fiduciary Services Revenue
CapyFin.comBrokerage and Insurance Commissions Revenue
CapyFin.comBank-Owned Life Insurance Revenue
CapyFin.comMortgage Banking Income, Net Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
Camden National Corporation anticipates solid earnings growth moving forward, driven by continued net interest margin momentum and expected cost savings from the Northway acquisition. The company is on track to achieve its annual cost savings goal and meet merger costs targets.
Positive Outlook
- Expected realization of annual cost savings goal from Northway acquisition, with 75% to be realized during 2025.
- Anticipated cost savings to begin materializing in the second quarter of 2025.
- Strong asset quality of the combined organization, reflecting ongoing credit quality.
- Expansion of footprint across Maine and New Hampshire, allowing better customer service through technology investments and local decision-making.
- Positioned well for solid earnings growth moving forward due to core net interest margin momentum and cost savings.
Challenges Ahead
- Merger costs are expected to continue over the coming quarters.
- Net income decreased by 50% compared to the fourth quarter of 2024 due to acquisition-related expenses.
- Provision expense increased due to non-PCD loans acquired and changes in macroeconomic forecast.
- Non-interest income decreased by 8% compared to the fourth quarter of 2024 due to timing and volatility of certain revenue streams.
- Higher costs between periods due to increased acquisition-related costs and amortization of CDI assets.