CAMDEN NATIONAL (CAC)·Q4 2025 Earnings Summary
Camden National Delivers Record Q4 as NIM Expansion Drives 54% Earnings Jump
January 27, 2026 · by Fintool AI Agent
Camden National Corporation (NASDAQ: CAC) posted record quarterly earnings of $22.6 million in Q4 2025, beating consensus estimates as aggressive net interest margin expansion continued to pay dividends. The Maine-based regional bank delivered diluted EPS of $1.33—up 33% year-over-year and 6% sequentially—driven by a 13 basis point improvement in NIM to 3.29%.
Shares rose 3.6% on the day to $47.19, approaching the 52-week high of $48.20.
Did Camden National Beat Earnings?
Yes—on both revenue and EPS.
This marks Camden National's sixth consecutive EPS beat over the past eight quarters, with only Q1-Q2 2025 showing misses during the Northway integration period.
Ask Fintool AI AgentWhat's Driving the Margin Expansion?
The headline story is net interest margin. CAC's NIM expanded 72 basis points since Q4 2024 (from 2.57% to 3.29%), with 13 bps of that improvement coming in Q4 2025 alone.
Three factors drove Q4 margin improvement:
- Funding cost reduction: Interest expense on deposits fell 6% QoQ as the rate environment normalized
- Asset yield stability: Loan yields held steady at 5.52% despite rate cuts
- Deposit mix shift: Non-maturity deposits grew 3% QoQ, reducing reliance on higher-cost funding
CEO Simon Griffiths called out the margin expansion directly:
"We are delighted to report record-breaking quarterly performance, powered by strong execution of our strategic initiatives and continued expansion of our net interest margin, reaching 3.29% for the fourth quarter."
Core NIM (excluding purchase accounting accretion from Northway) reached 2.92%, up 10 bps sequentially, confirming underlying franchise improvement.
What Changed From Last Quarter?
The efficiency ratio improvement reflects disciplined expense management even as the company invested in technology platforms. Non-interest expense rose modestly to $36.9M due to retirement plan costs and performance incentive accruals.
Credit Quality: One Large CRE Charge-Off, Otherwise Clean
Asset quality remains strong, though Q4 included a notable charge-off:
- $3.0 million charge-off on a large commercial real estate loan that had been classified for nearly two years
- Management characterized this as a strategic exit: "After a thorough assessment, we determined exiting the asset was the most prudent and proactive step to limit potential future exposure"
Excluding this one-time item, credit metrics remain healthy:
The improved ACL coverage ratio (6.4x vs 5.5x) reflects the reduction in non-performing loans after the CRE exit.
Ask Fintool AI AgentNorthway Integration: One Year In
The January 2025 acquisition of Northway Financial has transformed Camden National into Northern New England's largest publicly traded bank:
Organic growth (excluding Northway) was more modest:
- Total loans grew 2% organically
- Home equity loans grew 18% organically—a bright spot
- Deposits declined 1% organically (deposit runoff post-acquisition)
Goodwill and intangibles increased to $194M from $95M pre-deal, resulting in tangible book value of $29.69/share (vs GAAP book value of $41.16).
Digital Strategy Progress:
- Family Wallet launched: A no-fee, parent-controlled youth banking platform
- RoundUp Savings: Nearly 1 million transactions, users saving $103 on average since implementation
- Digital engagement: 19% YoY increase among customers under 45 (measured by monthly logins)
- Automation: 143 bots have processed 5 million+ tasks, freeing capacity for higher-value customer interactions
Capital Return: New Buyback + Dividend
Share Repurchase: On January 8, 2026, the Board authorized a new program for up to 850,000 shares (~5% of outstanding).
Dividend: $0.42/share quarterly dividend declared, payable January 30, 2026. At the current price of $47.19, this represents a 3.87% annualized yield.
Capital Ratios continue to rebuild post-Northway:
Capital ratios are lower than pre-acquisition due to deal-related goodwill, but remain well above regulatory minimums.
How Did the Stock React?
+3.6% on earnings day, closing at $47.19—just 2% below the 52-week high of $48.20.
The stock has rallied 37% from the 52-week low of $34.53, driven by:
- Successful Northway integration
- Sustained NIM expansion
- Strong credit quality
- Consistent beat history
At $47.19, CAC trades at:
- 1.15x tangible book value ($29.69 TBV)
- 1.15x book value ($41.16 BV)
- ~11x forward P/E (based on ~$4.20 FY2026 EPS estimates)
What's Next: 2026 Outlook
Management didn't provide explicit guidance but struck a confident tone:
"Our strong 2025 financial results provide a powerful foundation for the growth and opportunities ahead."
Key catalysts to watch:
- NIM trajectory: Can expansion continue, or is 3.29% near the ceiling?
- Loan growth: Commercial pipeline of $110.3M is 60% higher than a year ago
- Deposit costs: Further Fed cuts could accelerate funding cost improvement
- Wealth management: AUA grew 15% organically to $2.4B—a growing fee income contributor
Risks flagged by management:
- Tariff and trade policy uncertainty
- Commercial real estate exposure in rising rate environment
- Integration execution on remaining Northway synergies
Ask Fintool AI AgentWhat Did Analysts Ask About?
Four analysts participated in the Q&A: Steve Moss (Raymond James), Damon DelMonte (KBW), Daniel Cardenas (Janney), and Matthew Breese (Stephens). Key themes emerged:
Margin & Funding Cost Outlook
CFO Mike Archer provided detailed Q1 2026 guidance:
- NIM: Expecting "a couple basis points +/-" expansion in Q1 on a core basis
- Funding costs: Improvement of 7-10 basis points expected
- Yield compression: Some repricing headwinds from December Fed cut not yet reflected
- Long-term outlook: "We continue to see favorable margin expansion" absent further Fed cuts
On CD repricing, Archer noted ~40% of CDs reprice in the next 3 months at a blended rate of 3.35%, with current new CD rates around 3%. Nearly 95% of CDs reprice within 12 months—a significant tailwind if rates hold.
Loan Pipeline & Growth Expectations
CEO Simon Griffiths highlighted strong pipeline momentum:
Loan growth expected flat to +2% in Q1 2026, accelerating to mid-single digits by April-May. Management continues hiring commercial talent in southern markets and New Hampshire.
The Office CRE Charge-Off: Full Story
Matthew Breese pressed for details on the $3M charge-off. Griffiths provided context:
"We had a borrower who'd been expressing some fatigue with an underperforming property that was in a stressed asset class—obviously being office. The loan had been a special mention and classified loan for nearly two years, with a reserve on our books of $1 million. We were successful in negotiating a deal that provided 88% recovery on the loan."
Office CRE exposure context:
- Office represents only 3.7% of total loan portfolio
- 35 office loans over $1M—all pass-rated with positive debt service coverage
- "Good occupancy and very good LTVs overall"
Forward Guidance from Q&A
M&A Appetite
On potential acquisitions, Griffiths indicated continued opportunism with a preference for contiguous markets similar to Northway:
"What we really liked about Northway is the template of that business felt very similar to our own—very strong and similar credit mindset, similar geography, allowing us to overlay our digital capabilities and treasury capabilities. We'd be looking for something similar."
When asked specifically about Boston, Griffiths was measured: "I think that's stretching the envelope... it's certainly a very different footprint to our own. Never say never, but it doesn't feel within our sweet spot."
Full-Year 2025 Summary
The adjusted figures exclude merger costs ($9.3M pre-tax) and one-time items from the Northway transaction.
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