Camden National Corporation reported its financial results for the first quarter of 2025, revealing a net income of $7.3 million, a decrease of 45% compared to $13.3 million in the same period last year. The diluted earnings per share (EPS) also fell to $0.43 from $0.91. The decline in profitability was attributed to the costs associated with the recent acquisition of Northway Financial, Inc., which included $7.5 million in merger-related expenses and a one-time provision for credit losses of $6.5 million related to acquired loans. Adjusted for these one-time costs, the company reported an adjusted net income of $16.0 million, reflecting a 28% increase year-over-year.
The acquisition of Northway, completed on January 2, 2025, significantly impacted Camden's financial position, increasing total assets to $7.0 billion and total deposits to $5.6 billion, a 23% increase from the previous quarter. The merger added 17 branches and over 100 employees, enhancing the company's presence in New Hampshire. As of March 31, 2025, Camden National operated 73 branches across Maine and New Hampshire, with a total employee count exceeding 700.
In terms of operational metrics, Camden National's loan portfolio grew to $4.9 billion, a 19% increase from the previous quarter, primarily driven by the acquisition. The company reported a total allowance for credit losses (ACL) of $46.7 million, or 0.96% of total loans, up from $35.7 million at the end of 2024. The increase in the ACL was influenced by the acquisition and a proactive approach to managing credit risk amid economic uncertainties.
Looking ahead, Camden National anticipates realizing cost synergies from the Northway acquisition, targeting a 35% reduction in Northway's legacy costs, with 75% of these savings expected to materialize in 2025. The company also plans to continue optimizing its operations and enhancing its product offerings to drive profitability and shareholder value. Despite the challenges posed by the integration process and market conditions, Camden National remains focused on leveraging its expanded footprint and resources to achieve long-term growth.
About CAMDEN NATIONAL CORP
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