• Core Net Income: $16 million for the first quarter of 2025.

• GAAP Net Income: $7.3 million for the first quarter of 2025.

• GAAP Diluted EPS: $0.43 for the first quarter of 2025.

• Adjusted Net Income: $16 million, reflecting a 6% increase over the fourth quarter of 2024.

• Adjusted Diluted EPS: $0.95, an 8% decrease from the previous quarter.

• Net Interest Margin: 3.04% for the first quarter of 2025.

• Core Net Interest Margin: Expanded 11 basis points to 2.68% for the first quarter of 2025.

• Nonperforming Loans: 15 basis points of total loans as of March 31, 2025.

• Loan Loss Reserve Coverage Ratio: 0.96% as of March 31, 2025.

• Non-interest Income: $11.2 million for the first quarter of 2025, an 8% decrease from the previous quarter.

• Non-interest Expense: $44.5 million for the first quarter of 2025, including $7.5 million of acquisition-related costs.

• Income Tax Benefit: $1.2 million for the first quarter of 2025.

• Loans: Totaled $4.9 billion as of March 31, 2025.

• Deposits: Totaled $5.6 billion as of March 31, 2025.

• Warning! GuruFocus has detected 2 Warning Sign with CAC.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Camden National Corp (NASDAQ:CAC) reported a solid financial quarter with a core net income of $16 million, demonstrating strong fundamentals and momentum in core operations.

• The successful merger with Northway Financial added over 28,000 new customers and 100 new team members, expanding Camden National Corp's reach and operational capacity.

• The company is on track to achieve a 35% cost-saving goal from Northway's operating expenses, with 75% of this goal expected to be realized in 2025.

• Camden National Corp's net interest margin improved to 3.04%, with core net interest margin expanding by 11 basis points to 2.68%, indicating effective management of funding costs.

• The company maintains strong asset quality with a well-diversified loan portfolio and no material signs of credit deterioration, supported by proactive credit management.

Negative Points

• GAAP net income for the first quarter was $7.3 million, which was impacted by acquisition-related costs and loan loss provisions.

• Non-interest income decreased by 8% on a linked-quarter basis due to timing and seasonality within the fee income base.

• The company faces economic uncertainty due to tariffs and potential federal government actions, which may temper loan growth in the short term.

• There is a potential for increased provisioning due to macroeconomic risks and the possibility of a recession, which could impact future earnings.

• The integration of Northway Financial led to a temporary increase in operating expenses, with cost synergies expected to materialize later in the year.