Camden National Corporation Q3 FY2025 earnings call

• Record third quarter earnings of $21.2 million, a 51% increase over the previous quarter; pretax pre-provision income rose 19% over prior quarter. • Strong execution of Northway financial integration strategy; tangible common equity ratio grew 32 basis points to 7.09% and tangible book value increased 6% to $28.42 per share. • Net interest margin expanded to 3.16%, non-GAAP efficiency ratio improved to 52.5%, return on average tangible equity was 19.1%. • Robust annualized loan growth of 4%; committed loan pipeline totaled $116 million as of September 30; average core deposits grew 2%. • Noninterest income reached $14.1 million in the third quarter, with fiduciary and brokerage fee income growing 16% organically; summer mortgage activity was robust. • Enhanced digital account opening platform led to 131% increase in consumer accounts originated digitally; digital engagement among customers under 45 grew 11% year-over-year; over 143 bots in production processed over 5 million items, saving over 74,000 hours. • Hosted a half-day community well-being day in September to support volunteerism across the region.

Camden National Corporation reported record third quarter earnings of $21.2 million, a 51% increase over the previous quarter. Pretax pre-provision income rose 19% over the prior quarter. Net interest margin expanded by 10 basis points to 3.16%. Non-GAAP efficiency ratio improved to 52.5%. Return on average tangible equity was 19.1%. Average loan growth was 1%, and average core deposits grew 2%. Assets under management and administration reached a record high of $2.4 billion.

• Estimating fourth quarter noninterest expense of $36 million to $36.5 million. • Expecting margin expansion of 5-10 basis points next quarter. • Loan growth expected to be mid-single digits in 2026; fourth quarter loan growth expected to be flat up to 2%.

• Economic uncertainties could affect loan volumes; softening of loan pricing in the last 60-90 days; potential impact of broader economic conditions on credit quality.

Q: Steve Moss with Raymond James asked about loan growth, pricing, and margin outlook.

A: Simon Griffiths noted some softening in loan pricing but strong momentum in businesses; Michael Archer discussed being well-positioned for Fed rate cuts and margin dynamics.

Q: Damon DelMonte with KBW asked about expense guidance and margin fair value accretion.

A: Michael Archer mentioned factors driving fourth quarter expense outlook and fair value accretion expectations; Simon Griffiths talked about loan growth and business momentum in 2026.

Q: Matthew Breese with Stephens asked about charge-off levels, blended loan yields, loan growth for 2026, and fee income trends.

A: Michael Archer and Simon Griffiths discussed charge-off ranges, loan yield repricing potential, loan growth expectations for 2026, and continued fee income growth in areas like brokerage and wealth management.