Camden National Corporation Q1 FY2026 earnings call

• Strong first quarter results with net income and adjusted metrics up. • Results near record earnings, reflecting value from Northway financial acquisition and organic improvements. • Balance sheet strength with strong capital, reserves, liquidity. • Discipline credit approach delivering strong asset quality. • Continued growth in home equity loan portfolio. • Strengthening commercial team with key hires. • Deposit base growth from high yield savings and commercial/treasury wins. • Focus on relationship deposits. • Advance digital strategy with Camden IQ, PrepIQ, LoanIQ tools. • Automation improving efficiency and expense management.

Net income was 21.9 million with earnings per share of 129. Adjusted net income and adjusted diluted EPS increased 39% year over year excluding non-core acquisition related items. Net interest margin was 3.24%, up 20 basis points year over year and down five basis points from previous quarter. Underlying core net interest margin stable at 2.92%. Non-interest income fell on linked quarter basis due to seasonality. Deposit base reached $5.6 billion at March 31st, 1% increase from prior quarter. Loan growth tempered by seasonality but home equity loan portfolio increased 10.6 million. Non-performing loans 22 basis points of total loans, past due loans 6 basis points. Net charge-offs $506,000, provision expense $553,000. Tangible common equity ratio 7.64% at quarter's end. Tangible book value per share grew 3% to $30.58 at March 31st, including share repurchase.

• Anticipate net interest margin expansion two to five basis points on core basis in second quarter. • Expect non-interest income to rebound to approximately $13 million in second quarter. • Estimate non-interest expense of approximately $37.5 million for second quarter. • See low to mid single digit loan growth range for remainder of year. • Share repurchase program and regular cash dividend for returning capital to shareholders.

Q: Talked about margin dynamics, asked about liability side, derivative front, loan growth outlook.

A: Primarily liability side benefit from deposit flows, CD repricing, derivative roll off, redeploying investment cash flow for loan growth.

Q: Fair value accretion outlook.

A: Run rate estimate around $4.5 million.

Q: Commercial loan growth outlook.

A: Continued strength, nice momentum, additions to team in New Hampshire, positive outlook.

Q: New hires in New Hampshire, expense impact.

A: Disciplined, hires replacing existing positions, attracted to Camden story, steady pace.

Q: Commercial loan pricing.

A: On average net net six to low six, maintain discipline.

Q: M&A thoughts.

A: Interested in opportunities, but right for Camden, focus on organic growth, balanced approach.

Q: Margin expense, deposit remix, derivative roll off.

A: Deposit remix in spring/summer, derivatives rolling off, core margin expansion expected.

Q: Loan growth seasonality, competition, pipeline.

A: First quarter sluggish due to seasonality, pipelines building, talent adds, low to mid single digit growth range.

Q: Resi loan breakdown, growth.

A: Generally 50-50 sold to secondary market vs balance sheet, slower growth, relationship-based.

Q: Share repurchase.

A: Opportunistic, depends on share price.

Q: Competitive factors on loan and deposit.

A: Pickup in competition, but Camden has value, well positioned.

Q: Customer economic environment view.

A: Mixed picture, consumer spend steady, business investment measured, some pockets of strength.

Q: Commercial line utilization, fee income growth.

A: Commercial utilization 35-40%, fee income mid-single-digit growth achievable with wealth and other business strategies