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Dec 31, 2024
Camden National Q4 2024 Earnings Report
Net interest margin expanded and earnings solidified, positioning the company favorably for 2025.
Key Takeaways
Camden National Corporation reported a strong fourth quarter with net income of $14.7 million and diluted EPS of $1.00, marking increases of 12% and 11%, respectively, compared to the previous quarter. The company also completed its merger with Northway Financial, Inc., increasing its total assets to approximately $7.0 billion.
Net interest margin increased by 11 basis points to 2.57% compared to the third quarter of 2024.
Return on average assets was 1.01%, and return on average equity was 10.99%.
Efficiency ratio improved to 59.62% on a GAAP basis and 58.51% on a non-GAAP basis.
Asset quality remained strong, with non-performing loans at 0.16% of total loans.
Camden National
Camden National
Forward Guidance
Camden National enters 2025 with strong momentum, anticipating the successful integration of Northway and continued profitability growth.
Positive Outlook
- Successful closing of merger with Northway Financial, Inc. on January 2, 2025, expanding presence into New Hampshire.
- Expected conversion of Northway’s banking products and services to Camden National systems in mid-March 2025.
- Anticipated decrease in cash balances to prior period levels in Q1 2025 due to actions to pay off higher cost term borrowings.
- Strong asset quality with no signs of systemic stress or elevated risks across the loan portfolio.
- Regulatory capital ratios well in excess of regulatory capital requirements.
Challenges Ahead
- Anticipate cash balances decreasing to prior period levels in the first quarter of 2025.
- Potential for higher merger and acquisition costs in the first quarter of 2025.
- Decrease in common equity ratio driven by the shift in the interest rate curve.
- A temporary deposit of $61.8 million deposited by one large customer relationship that we anticipate being drawn down in the first quarter of 2025.
- Residential real estate non-accrual loans increased from $1,891 to $2,497.