Camden National Corporation Reports $21.4 Million Net Income for First Half of 2025

Camden National Corporation reported a net income of $21.4 million for the first half of 2025, a decrease of 15% compared to $25.3 million in the same period of 2024. The diluted earnings per share (EPS) for the six months ended June 30, 2025, was $1.26, down from $1.72 in the prior year. The decline in profitability was significantly influenced by the acquisition of Northway Financial, Inc., which closed on January 2, 2025, incurring one-time costs of approximately $8.9 million. Despite these challenges, the company saw a 4% increase in total revenues, driven by growth in both net interest income and non-interest income.

The acquisition of Northway expanded Camden National's asset base to $6.9 billion, with total loans increasing by 20% to $4.9 billion as of June 30, 2025. The commercial loan portfolio grew by 24%, while retail loans increased by 16%. The company also reported a significant rise in deposits, which reached $5.5 billion, a 19% increase attributed to the Northway acquisition. However, excluding the acquired deposits, organic deposit balances decreased by 2%, primarily due to outflows from large customers.

Operationally, Camden National's efficiency ratio improved to 60.37% in the second quarter of 2025, down from 63.77% in the same quarter of 2024, reflecting a decrease in non-interest expenses, excluding merger costs. The company reported a net interest income of $49.2 million for the second quarter of 2025, a 53% increase from the previous year, largely due to higher interest income from loans and investments. The net interest margin also improved to 3.06%, up 70 basis points year-over-year.

The company’s allowance for credit losses (ACL) on loans increased to $53.0 million, or 1.08% of total loans, as of June 30, 2025, compared to $35.7 million, or 0.87%, at the end of 2024. This increase was driven by provisions related to the Northway acquisition and a specific reserve for a commercial loan that entered bankruptcy. Despite these provisions, the overall asset quality remained strong, with non-performing loans representing 0.37% of total loans.

Looking ahead, Camden National anticipates realizing full cost benefits from the Northway acquisition in the third quarter of 2025. The company remains committed to maintaining a strong capital position, with shareholders' equity totaling $652.1 million as of June 30, 2025, reflecting a 23% increase since the end of 2024. The company’s capital ratios continue to exceed regulatory requirements, positioning it well for future growth and stability.