Camden National (CAC) Q4 2025 earnings summary

Executive summary

• Achieved record fourth quarter net income of $22.6 million and diluted EPS of $1.33, both up 6% from the prior quarter, and full-year net income of $65.2 million with EPS of $3.84, up 23% and 6% year-over-year, respectively.

• Adjusted net income for 2025 was $74.4 million and adjusted EPS $4.39, up 39% and 20% year-over-year.

• Successfully integrated Northway Financial, exceeding strategic and financial objectives, and accelerated organic growth in key markets.

• Digital engagement among customers under 45 increased 19% year-over-year, driven by new digital products and automation initiatives.

• Strong execution of strategic initiatives and net interest margin expansion contributed to performance.

Financial highlights

• Net interest margin expanded by 13 basis points over the prior quarter to 3.29%, with Q4 2025 net interest income rising 5% sequentially to $53.9 million.

• Non-interest income for Q4 2025 was $14.1 million, including a $979,000 Visa bonus and $594,000 in loan swap fees.

• Non-interest expense in Q4 2025 was $36.9 million, up $933,000 sequentially due to retirement plan, incentive, health, and tech costs.

• Efficiency ratio improved to 51.69% in Q4 (non-GAAP), with GAAP efficiency ratio at 54.16%.

• Book value per share increased 3% to $41.16 and tangible book value per share rose 4% to $29.69 from Q3 2025.

Outlook and guidance

• Expecting deposit balances to remain flat in Q1 2026, with non-interest income projected at $12–$13 million and operating expenses at $36–$37 million.

• Loan growth anticipated to be flat to up 2% in Q1, with mid-single digit growth expected for the full year.

• Deposit growth forecasted in the low to mid-single digits for 2026.

• Efficiency ratio expected to normalize in the mid-50s as reinvestment continues.

• Effective tax rate projected to rise by about 1% in 2026 as certain tax credits expire.