CAC

• Overall Financial Performance

  • Q2 2026 delivered record net income of $23 million, and record diluted EPS of $1.35, both 5% higher than Q1 2026.
  • Year-to-date (first half 2026) net income hit a record $44.9 million, with diluted EPS of $2.64, reflecting strong execution across core businesses.
  • Profitability metrics are strong: return on average assets of 1.33%, return on average tangible equity of 18.47%, and non-GAAP efficiency ratio of 53.2%.
  • Total assets reached $7 billion at quarter end; regulatory capital levels are well above regulatory requirements, and tangible book value per share grew 7% year-to-date.
  • 41% of first half 2026 net income was returned to shareholders via dividends and share repurchases, with 85,131 shares repurchased year-to-date at a weighted average price of $46.55 per share.

• Lending Operations

  • Committed loan pipeline grew 45% quarter-over-quarter to $185.7 million, driven by stronger banker productivity, recent commercial team expansion, and healthy customer demand.
  • Credit quality remains very strong: non-performing loans equal 24 basis points of total loans, net charge-offs equal 4 annualized basis points of average loans, and the allowance for credit losses covers non-performing loans at a 3.8x ratio.
  • Process and technology improvements cut average HELOC funding time to 14 days, supporting strong year-over-year balance growth.

• Strategic & Operational Updates

  • Completed leadership changes to expand business capacity: Kate Brunell joined as Chief Credit Officer, Ryan Smith shifted back to lead commercial banking, and Barbara Ratz will expand treasury management and government banking services for small and mid-market businesses.
  • The firm is selectively adding experienced commercial banking talent, having added four new commercial bankers since the start of 2026.
  • AI-enabled digital transformation is in production, with customer-facing enhancements (including a refreshed online portal) improving convenience and freeing capacity for high-value client interactions.
  • The firm has earned national industry recognition, being named to Time Magazine's list of America's Best Companies and Forbes' list of America's Best Banks in 2026.

• Net interest margin (NIM): Management expects core NIM to expand an additional 5 to 10 basis points in Q3 2026, driven by seasonal deposit inflows that improve funding mix, and reinvestment of lower-yielding assets into current higher market rates, aligning with prior top-of-range guidance for Q2.
• Non-interest income: Q3 2026 non-interest income is guided to a range of $13.5 million to $14 million, down from Q2's $14.5 million, due to expected volatility in BOLI investment-related income.
• Non-interest expense: Q3 2026 non-interest expense is guided to a range of $37 million to $38 million, consistent with disciplined expense management and targeted investment.
• Loan growth: Management expects Q3 2026 loan growth to remain measured despite the large committed pipeline.
• Longer-term: Core loan yields are expected to continue a steady 2 to 3 basis point increase per quarter over the next several quarters; NIM expansion benefits are expected to continue at minimum through all of 2026.

The firm's primary business segments are core commercial/consumer lending, deposit services, and wealth and brokerage. Net interest income (core lending segment) was $52.9 million, up 1% quarter-over-quarter, contributing 78.5% of total Q2 revenue. Non-interest income (wealth, brokerage, fee-based services segment) totaled $14.5 million, up 21% quarter-over-quarter, contributing 21.5% of total Q2 revenue. Assets under administration for the wealth and brokerage segment reached $2.6 billion, up 13% year-over-year. Total loans grew 1% during the quarter (3% annualized), led by home equity and commercial loan growth: HELOC balances grew 23% year-over-year. Total deposits stood at $5.6 billion at quarter end, with core customer deposits remaining stable as the firm reduces higher-cost broker deposits and certificates of deposit.

• BOLI non-interest income has higher volatility due to the segment's exposure to equity market movements, which creates uncertainty for quarterly non-interest income results.
• Potential crossing of the $10 billion asset threshold through acquisitions carries known negative income implications that management factors into acquisition planning.
• Valuations for non-bank fee income-focused acquisitions (particularly wealth management targets) are currently elevated, making accretive acquisitions in this segment difficult to achieve.
• Forward-looking margin expansion and growth outcomes depend on external factors including yield curve movements, which can change longer-term performance expectations.

Q: Analyst asks about cash flow from loan and investment portfolios for repricing over six months, current loan pricing levels, and why Q3 loan growth is expected to be measured despite a strong pipeline. / A: Management models ~$35 million in quarterly investment portfolio cash flow, and ~$170-$180 million in quarterly loan runoff for a total ~$200 million in total runoff. New originations are currently priced in the low sixes to 6.5% range, delivering significant spread pick-up over runoff assets. Growth is expected to be measured even with strong pipeline momentum; commercial and home equity (supported by faster 14-day funding and team expansion) are both seeing balanced, broad-based growth across the company's geographic footprint.

Q: Analyst asks how much of Q2's strong non-interest income growth came from one-time BOLI death benefit gains, and confirms if most growth is core. / A: There was ~$491,000 incremental BOLI income from market appreciation and death benefits this quarter, a small portion of the overall 21% quarter-over-quarter non-interest income increase. Most growth is core, driven by broad-based gains across wealth, brokerage, debit card, deposit service charges, and mortgage banking, so the lower Q3 guidance primarily accounts for the expected drop in this volatile BOLI component.

Q: Analyst asks about M&A strategy, activity levels in Camden's region, the firm's readiness for deals, and appetite for non-bank acquisitions and optimal target size. / A: M&A activity in the Northeast Mid-Atlantic has been slow year-to-date, but Camden is open to the right opportunity focused on contiguous markets and strategic/cultural fit, and is well-positioned to execute with discipline. The firm prioritizes organic growth and feels no pressure to close a deal, and is already seeing strong value from the 2025 Northway acquisition. Non-bank fee income acquisitions are possible but not a primary focus due to high valuations and heavy competition, particularly for wealth targets. Management avoids rigid size targets, but is conscious of the regulatory implications of crossing $10 billion in assets, and will prioritize fundamental value and synergy over arbitrary size targets.