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CAMDEN NATIONAL CORP

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Business Summary

Camden National Corporation is a publicly-held bank holding company incorporated under the laws of the State of Maine and headquartered in Camden, Maine, with $7.0 billion in assets at December 31, 2025. The company operates through its wholly-owned subsidiary, Camden National Bank, a national banking association chartered under the laws of the United States, originally founded in 1875. The financial services industry continues to experience consolidations through mergers, and the company competes throughout Maine, New Hampshire, and select areas of Massachusetts, with many of its markets characterized as rural areas. Major competitors include local independent banks, local branches of large regional and national banking organizations and brokerage houses, marketplace lenders and other financial technology companies, financial advisors, thrift institutions, and credit unions.

The company's competitive strategy emphasizes customer service through local decision-making, relationship-based banking, and the delivery of products and services supported by digital delivery channels. The company competes for trust, trust-related, investment management, individual retirement, foundation and endowment management services and brokerage services with local banks and non-banks, as well as with a number of brokerage firms and investment advisors with offices in its market area. The company has achieved a five-year compounded annual asset growth rate of 7% , resulting in $7.0 billion in total assets at December 31, 2025, with asset growth over the past five years of $1.4 billion including organic growth of $219.2 million and acquired total assets of $1.2 billion .

The company's primary business is to attract deposits from, and extend loans to, consumer, institutional, municipal, non-profit and commercial customers. Net interest income is the primary revenue source, representing 79% , 75% , and 81% of total revenues for the years ended December 31, 2025, 2024 and 2023, respectively. Net interest income is the interest earned on lending activities, investment securities and other interest-earning assets, less the interest paid on interest-bearing deposits and borrowings.

The company, through the Bank, provides a broad array of banking and other financial services including wealth management and trust services, brokerage, investment advisory and insurance services. Camden National Wealth Management provides a comprehensive suite of fiduciary and asset management services for both individual and institutional clients, serving high net worth individuals and families, businesses, and not-for profit customers with investment management, financial planning and trustee services. Camden Financial Consultants provides full-service brokerage and insurance, with financial offerings including college, retirement, and estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities, with securities and advisory services offered through LPL Financial. The Bank complements its in-person banking services with digital delivery channels including digital banking for self-service transactions; MortgageTouch, an online platform for consumer borrowers; BusinessTouch, an online loan application system for small business customers; and TreasuryLink, a secure online platform providing cash management services for commercial customers.

The company's loan portfolio is segmented into commercial real estate (non-owner-occupied and owner-occupied), commercial, residential real estate, home equity, and consumer loans. At December 31, 2025, total loans were $4,965,138 , with the commercial loan portfolio comprising 52% of total loan balances and the retail loan portfolio comprising 48% . The commercial real estate and commercial loan portfolios comprised 52% of total loan balances at December 31, 2025. The company's investment portfolio at December 31, 2025 totaled $1,447,937 and consisted of MBS, CMO, municipal and corporate debt securities, FHLBB and FRB common stock, and mutual funds held in a rabbi trust. The company's deposits totaled $5,537,781 at December 31, 2025, with core deposits (total deposits less CDs and brokered deposits) of $4,728,129 .

On January 2, 2025, the company completed its acquisition of Northway Financial, Inc. and its bank subsidiary, Northway Bank, which added $971.9 million of deposits and $1.2 billion total assets to the balance sheet, and expanded the company's presence in New Hampshire by adding 17 branches to its network. In January 2024, the Board of Directors approved a common stock repurchase program authorizing management to repurchase up to 750,000 shares, and as of December 31, 2024, the company repurchased 50,000 shares at an average price of $32.19 . In January 2026, the company's Board of Directors authorized the repurchase of up to 850,000 shares of the company's common stock, representing approximately 5.0% of the company's issued and outstanding shares of common stock as of December 31, 2025.

For the year ended December 31, 2025, the company delivered net income of $65,160 and diluted EPS of $3.84 , compared to $53,004 and $3.62 , respectively, in 2024. On a non-GAAP basis, the company reported adjusted net income of $74,439 and diluted EPS of $4.39 for 2025. Total revenues (sum of net interest income and non-interest income) reached $255,779 in 2025, an increase of 45% over 2024. The net interest margin on a fully-taxable equivalent basis was 3.17% for 2025, compared to 2.46% for 2024. The company's return on average assets was 0.94% and return on average equity was 9.96% for 2025.

Business Outlook

The company's long-term strategy is anchored in three clear priorities: Running the Bank, Evolving the Bank, and Growing the Bank. Growing the Bank focuses on expanding the customer base and deepening relationships by leveraging technology, scalable capabilities, and local market expertise, pursuing both organic and inorganic growth opportunities across its footprint. Organically, the company sees significant opportunity to scale its commercial franchise in its Southern Maine and New Hampshire growth markets through targeted hiring and the development of internal talent. Inorganically, the company continues to evaluate merger and acquisition opportunities that offer compelling strategic and financial benefits, as demonstrated by the acquisition of Northway Financial, Inc. completed on January 2, 2025. The company considers its growth markets to be those that have accelerated growth opportunities in comparison to its other markets, based on current and forecasted demographic information, and where it currently has less of a presence and market share.

Evolving the Bank enables the company to respond to a dynamic marketplace with agility and innovation. The company is advancing its digital agenda across both customer and employee experiences to increase adoption, productivity, and efficiency. At the same time, the company is repositioning its retail franchise to meet changing customer needs and expectations, with a central focus on developing a high-touch, team-based operating model that leverages specialized expertise and places the customer at the center of every interaction. The company's investments in digital banking convenience, efficiency, and engagement enable customers to bank how, when, and where they choose.

The company's 2025 performance resulted in strong operating leverage generation and improvement in each of its profitability metrics. The efficiency ratio (non-GAAP) improved to 54.46% for 2025, compared to 62.05% for 2024. The company's non-GAAP adjusted return on average tangible equity was 17.27% for 2025, compared to 12.94% for 2024. The company believes it is well-positioned for 2026, highlighted by the strength of its reported fourth quarter financial metrics, which included a return on average assets of 1.28% , a return on average equity of 13.01% , and a non-GAAP return on average tangible equity of 19.06% .

The company continues to focus on driving profitable organic growth through growing customer relationships and deepening its market penetration across its markets, as well as pursuing attractive acquisition opportunities that support its strategy and fit its culture and core values. The company continues to evaluate the possibility of expansion into new markets through both de novo expansion and acquisitions. Regardless of merger and acquisition opportunities, the company is always focused on maximizing growth within its current markets, and particularly those that it sees as growth markets.

The company's capital allocation strategy includes maintaining strong capital levels, paying quarterly dividends, and executing share repurchases. The company has paid quarterly dividends since its foundation in 1984, with cash dividends declared per share of $1.68 for each of 2025 and 2024. In January 2026, the company's Board of Directors authorized the repurchase of up to 850,000 shares of the company's common stock, representing approximately 5.0% of the company's issued and outstanding shares of common stock as of December 31, 2025, effective January 7, 2026 and continuing until the earlier of the authorized number of shares being repurchased, the Board of Directors terminating the program, or January 7, 2027 .

The company faces structural headwinds from competition in the banking and financial services industry, which is strong. In its market areas, the company competes for loans, deposits and other financial products and services with large financial companies, local independent banks, thrift institutions, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment banking firms, and other financial intermediaries that offer similar services, some of which have substantially greater resources and lending limits. The activity of non-bank lenders and other financial technology companies has grown significantly over recent years and is expected to continue to grow. The company also faces headwinds from fluctuations in market interest rates, which have in the past adversely affected, and may in the future adversely affect, its performance, as its profitability depends to a large extent upon net interest income.

The company faces constraints from the primarily rural characteristics and related demographic features of the markets it serves, which affect the ability to generate internal growth. The company's loans are concentrated in certain areas of Northern New England, and adverse conditions in those markets could adversely affect its operations. Prior to 2025, the company primarily served individuals and businesses located in the state of Maine, with 68% of its loan portfolio concentrated among borrowers in Maine as of December 31, 2024, with higher concentrations of exposure in Cumberland, Kennebec, Knox and York counties. Although the loan portfolio became more geographically diverse following the acquisition of Northway, over 50% of loans are still located in Maine.

Risk Factors

The company's loan portfolio includes commercial real estate and commercial loans, which comprised 52% of total loan balances at December 31, 2025, and these loans generally carry larger loan balances and involve a higher risk of nonpayment or late payment than residential mortgage loans. The company's loans are concentrated in Northern New England, with over 50% still located in Maine as of December 31, 2025, and adverse economic, political or business developments in these areas could result in higher rates of loss and delinquency. The company's allowance for credit losses on loans is inherently subjective and requires significant estimates and management judgment; if assumptions are incorrect, the allowance may not be sufficient to cover losses, which would have an adverse effect on operating results. The company faces intense competition from large financial companies, local independent banks, credit unions, and financial technology companies, some of which have substantially greater resources and are not subject to the same extensive regulations. The company's cost of funds has increased and may increase further as a result of loss of deposits, a change in deposit mix or changes in interest rates, and as of December 31, 2025, brokered deposits made up 2% of total deposits.

Management Priorities

Management's message to shareholders emphasizes the company's long-term strategy anchored in three clear priorities: Running the Bank, Evolving the Bank, and Growing the Bank, which together guide actions, align investments, and position the company to deliver sustainable performance and long-term shareholder value. Management highlights the successful completion of the Northway acquisition on January 2, 2025, which significantly increased the company's presence in New Hampshire by adding 17 branches and over 100 new employees, and the full integration of the two banks in mid-March 2025, after which the company began realizing the combined organization's full financial potential through the execution of synergies across employees, technology, software and vendor contracts. Management emphasizes that the completion of the Northway acquisition and successful execution of cost take-out strategies, as well as an improving net interest margin throughout 2025, drove significant improvement in the company's profitability metrics compared to 2024, and that the company believes it is well-positioned for 2026, highlighted by the strength of its reported fourth quarter financial metrics which included a return on average assets of 1.28% , a return on average equity of 13.01% , and a non-GAAP return on average tangible equity of 19.06% .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
  2. [2] Item 1, Business — Overview
  3. [3] Item 1, Business — Overview
  4. [4] Item 1, Business — Overview
  5. [5] Item 1, Business — Overview
  6. [6] Item 1, Business — What We Do
  7. [7] Item 1, Business — What We Do
  8. [8] Item 1, Business — What We Do
  9. [9] Item 7, MD&A — Financial Condition — Loans
  10. [10] Item 7, MD&A — Financial Condition — Loans
  11. [11] Item 7, MD&A — Financial Condition — Loans
  12. [12] Item 1A, Risk Factors — Credit Risk and Lending Business Risk
  13. [13] Item 7, MD&A — Financial Condition — Investments
  14. [14] Item 7, MD&A — Non-GAAP Financial Measures — Core Deposits
  15. [15] Item 7, MD&A — Non-GAAP Financial Measures — Core Deposits
  16. [16] Item 1, Business — Overview
  17. [17] Item 1, Business — Overview
  18. [18] Item 1, Business — Overview
  19. [19] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  20. [20] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  21. [21] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  22. [22] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  23. [23] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  24. [24] Item 7, MD&A — Executive Overview — 2025 Overview
  25. [25] Item 7, MD&A — Executive Overview — 2025 Overview
  26. [26] Item 7, MD&A — Executive Overview — 2025 Overview
  27. [27] Item 7, MD&A — Executive Overview — 2025 Overview
  28. [28] Item 7, MD&A — Executive Overview — 2025 Overview
  29. [29] Item 7, MD&A — Executive Overview — 2025 Overview
  30. [30] Item 7, MD&A — Executive Overview — 2025 Highlights
  31. [31] Item 7, MD&A — Executive Overview — 2025 Highlights
  32. [32] Item 7, MD&A — Results of Operations — Net Interest Income and Net Interest Margin
  33. [33] Item 7, MD&A — Results of Operations — Net Interest Income and Net Interest Margin
  34. [34] Item 7, MD&A — Financial Highlights
  35. [35] Item 7, MD&A — Financial Highlights
  36. [36] Item 7, MD&A — Non-GAAP Financial Measures — Efficiency Ratio
  37. [37] Item 7, MD&A — Non-GAAP Financial Measures — Efficiency Ratio
  38. [38] Item 7, MD&A — Non-GAAP Financial Measures — Return on Average Tangible Equity
  39. [39] Item 7, MD&A — Non-GAAP Financial Measures — Return on Average Tangible Equity
  40. [40] Item 7, MD&A — Executive Overview — 2025 Overview
  41. [41] Item 7, MD&A — Executive Overview — 2025 Overview
  42. [42] Item 7, MD&A — Executive Overview — 2025 Overview
  43. [43] Item 5, Market for Registrant's Common Equity — Related Stockholder Matters
  44. [44] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  45. [45] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  46. [46] Item 5, Market for Registrant's Common Equity — Issuer's Purchases of Equity Securities
  47. [47] Item 1A, Risk Factors — Credit Risk and Lending Business Risk
  48. [48] Item 1A, Risk Factors — Credit Risk and Lending Business Risk
  49. [49] Item 1A, Risk Factors — Credit Risk and Lending Business Risk
  50. [50] Item 1A, Risk Factors — Credit Risk and Lending Business Risk
  51. [51] Item 1A, Risk Factors — Liquidity Risk
  52. [52] Item 1, Business — Overview
  53. [53] Item 7, MD&A — Executive Overview — 2025 Overview
  54. [54] Item 7, MD&A — Executive Overview — 2025 Overview
  55. [55] Item 7, MD&A — Executive Overview — 2025 Overview
  56. [56] Item 7, MD&A — Executive Overview — 2025 Overview
  57. [57] Item 7, MD&A — Executive Overview — 2025 Highlights
  58. [58] Item 7, MD&A — Executive Overview — 2025 Highlights
  59. [59] Item 7, MD&A — Results of Operations — Net Interest Income and Net Interest Margin
  60. [60] Item 7, MD&A — Results of Operations — Net Interest Income and Net Interest Margin
  61. [61] Item 7, MD&A — Executive Overview — 2025 Overview
  62. [62] Item 7, MD&A — Executive Overview — 2025 Overview
  63. [63] Item 7, MD&A — Executive Overview — 2025 Overview
  64. [64] Item 7, MD&A — Executive Overview — 2025 Overview
  65. [65] Item 7, MD&A — Results of Operations — Provision (Credit) for Credit Losses
  66. [66] Item 7, MD&A — Results of Operations — Provision (Credit) for Credit Losses
  67. [67] Item 7, MD&A — Results of Operations — Non-Interest Income
  68. [68] Item 7, MD&A — Results of Operations — Non-Interest Income
  69. [69] Item 7, MD&A — Results of Operations — Non-Interest Expense
  70. [70] Item 7, MD&A — Results of Operations — Non-Interest Expense
  71. [71] Item 7, MD&A — Results of Operations — Income Tax Expense
  72. [72] Item 7, MD&A — Results of Operations — Income Tax Expense
  73. [73] Item 7, MD&A — Results of Operations — Net Interest Income and Net Interest Margin
  74. [74] Item 7, MD&A — Results of Operations — Net Interest Income and Net Interest Margin
  75. [75] Item 7, MD&A — Non-GAAP Financial Measures — Efficiency Ratio
  76. [76] Item 7, MD&A — Non-GAAP Financial Measures — Efficiency Ratio
  77. [77] Item 7, MD&A — Financial Highlights
  78. [78] Item 7, MD&A — Financial Highlights
  79. [79] Item 7, MD&A — Financial Highlights
  80. [80] Item 7, MD&A — Financial Highlights
  81. [81] Item 7, MD&A — Non-GAAP Financial Measures — Return on Average Tangible Equity
  82. [82] Item 7, MD&A — Non-GAAP Financial Measures — Return on Average Tangible Equity
  83. [83] Item 7, MD&A — Non-GAAP Financial Measures — Return on Average Tangible Equity
  84. [84] Item 7, MD&A — Non-GAAP Financial Measures — Return on Average Tangible Equity
  85. [85] Item 7, MD&A — Financial Highlights
  86. [86] Item 7, MD&A — Financial Highlights
  87. [87] Item 7, MD&A — Financial Highlights
  88. [88] Item 7, MD&A — Financial Highlights
  89. [89] Item 7, MD&A — Financial Highlights
  90. [90] Item 7, MD&A — Financial Highlights
  91. [91] Item 7, MD&A — Financial Condition — Asset Quality — ACL
  92. [92] Item 7, MD&A — Financial Condition — Asset Quality — ACL
  93. [93] Item 7, MD&A — Financial Highlights
  94. [94] Item 7, MD&A — Financial Highlights
  95. [95] Item 7, MD&A — Financial Highlights
  96. [96] Item 7, MD&A — Financial Highlights
  97. [97] Item 7, MD&A — Financial Highlights
  98. [98] Item 7, MD&A — Financial Highlights
  99. [99] Item 7, MD&A — Financial Highlights
  100. [100] Item 7, MD&A — Financial Highlights
  101. [101] Item 1A, Risk Factors — Accounting and Tax Risk
  102. [102] Item 7, MD&A — Results of Operations — Income Tax Expense
  103. [103] Item 7, MD&A — Results of Operations — Income Tax Expense
  104. [104] Item 7, MD&A — Results of Operations — Income Tax Expense
  105. [105] Item 7, MD&A — Results of Operations — Income Tax Expense
  106. [106] Item 7, MD&A — Non-GAAP Financial Measures — Tangible Book Value per Share
  107. [107] Item 7, MD&A — Non-GAAP Financial Measures — Tangible Book Value per Share
  108. [108] Item 7, MD&A — Non-GAAP Financial Measures — Tangible Book Value per Share
  109. [109] Item 7, MD&A — Non-GAAP Financial Measures — Tangible Book Value per Share

Analysis on 6/21/2026