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1. Company Snapshot

1.a. Company Description

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers.The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system.It also offers non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the U.S. small business administration, loans secured by one-to four-family properties, and consumer and home equity loans.


In addition, the company provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities.Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services.As of December 31, 2021, the company had 57 branches within Maine; one residential mortgage lending office in Braintree, Massachusetts; two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester; and an online residential mortgage and small commercial digital loan platform, as well as 66 ATMs. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.

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1.b. Last Insights on CAC

Camden National Corporation's recent performance was driven by strong Q2 2025 earnings, with net income of $14.1 million and diluted EPS of $0.83, representing 92% and 93% increases, respectively, compared to Q1 2025. The company's acquisition of Northway Financial contributed to its unified organization, yielding positive results. Additionally, Camden National Bank partnered with Spiral to offer personalized savings and financial wellness tools, enhancing customer experience. A quarterly dividend of $0.42 per share was declared, providing a 4.23% annualized dividend yield.

1.c. Company Highlights

2. Camden National Corporation Posts Record Q4 Earnings, Driven by Strong Organic Growth

Camden National Corporation reported a record fourth-quarter 2025 earnings of $22.6 million, representing a 6% increase from the prior quarter. The company's net interest margin expanded by 13 basis points to 3.29%, and the non-GAAP efficiency ratio was below 52%. The earnings per share (EPS) came in at $1.33, beating estimates of $1.32. The company's return on average assets was 1.3%, and the return on average tangible equity was 19.06% for the full year 2025.

Publication Date: Feb -15

📋 Highlights
  • Record Q4 Earnings Growth:: Earnings reached $22.6M with a 6% increase from the prior quarter, marking a record high.
  • Strong Net Interest Margin Expansion:: Net interest margin rose 13 bps to 3.29%, while the efficiency ratio dropped to 51.69% (under 52% non-GAAP).
  • Organic Wealth & Brokerage Growth:: Assets under administration surged 15% to $2.4B, with home equity lending up 6% in Q4 (18% annual growth).
  • Capital Strength & Loan Reserves:: Regulatory capital levels exceeded internal targets, and loan loss reserves stood at 91 bps of total loans ($45.3M).
  • Share Repurchase Initiative:: Approved a $850,000 share buyback program, reflecting confidence in capital management and shareholder returns.

Segment Performance

The company's wealth and brokerage divisions saw significant organic growth, with a 15% increase in assets under administration to $2.4 billion. Home equity lending also performed well, with 6% growth in the quarter and 18% organic growth for the year. The strong performance reflects the successful assimilation of the Northway franchise and disciplined execution.

Balance Sheet Strength

The company's balance sheet remains a source of strength, with regulatory capital levels above internal target levels. The loan loss reserve was 91 basis points of total loans, and the company feels good about their credit portfolio, with office representing 3.7% of the portfolio and all loans pass-rated.

Outlook and Guidance

The company provided 2026 outlooks, estimating noninterest income to range from $12 million to $13 million. Operating expenses are estimated to range from $36 million to $37 million for the first quarter. The company expects continued improvement in funding costs, with deposit costs trending down by 7-10 basis points in the first quarter. Analysts estimate next year's revenue growth at 6.2%.

Valuation

Camden National Corporation's current Price-to-Tangible Book Value (P/TBV) is around 1.21, and the Dividend Yield is 3.35%. With a Net Interest Margin (NIM) of 3.29%, the company's valuation appears reasonable. The stock's P/TBV and dividend yield multiples suggest that the market is pricing in a stable financial performance, aligning with the company's guidance.

Growth Strategy

The company is focused on organic growth, with a potential share repurchase program. Camden National Corporation is opportunistic about M&A deals in contiguous markets with similar templates, prioritizing organic growth but considering strategic acquisitions. The company's digital strategy continues to advance, with the introduction of Family Wallet, a no-fee parent-controlled youth banking platform.

3. NewsRoom

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Paramount Skydance Corp (PSKY) Q4 2025 Earnings Call Highlights: Strategic Growth and Technological Advancements

Feb -26

Source: gurufocus.com

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Is CAC Optimization DAVE's Fuel to Its Profitability Engine?

Feb -18

Source: zacks.com

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Head to Head Analysis: Unity Bancorp (NASDAQ:UNTY) vs. Camden National (NASDAQ:CAC)

Feb -14

Source: defenseworld.net

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NewYear Barron's Pro-Picks: 2 IDEAL January DiviDogs

Jan -29

Source: seekingalpha.com

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Camden National (NASDAQ:CAC) Sets New 12-Month High After Earnings Beat

Jan -28

Source: defenseworld.net

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Camden National Corporation (CAC) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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Camden National (CAC) Reports Q4 Earnings: What Key Metrics Have to Say

Jan -27

Source: zacks.com

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Camden National (CAC) Beats Q4 Earnings and Revenue Estimates

Jan -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Banking and Related Activities

Expected Growth: 6.0%

Camden National Corporation's 6.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, improved asset quality, effective cost management, and a favorable interest rate environment contribute to the segment's growth.

7. Detailed Products

Personal Banking

Camden National Corporation offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

Camden National Corporation provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

Camden National Corporation offers a range of mortgage lending products, including residential and commercial mortgages, home equity loans, and construction loans.

Wealth Management

Camden National Corporation provides wealth management services, including investment management, financial planning, and trust services.

Insurance Services

Camden National Corporation offers insurance services, including personal and commercial insurance products, such as auto, home, and liability insurance.

8. Camden National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Camden National Corporation operates in the banking industry, which has a moderate threat of substitutes. While customers have some alternatives, such as credit unions and online banking services, they are not easily substitutable.

Bargaining Power Of Customers

Camden National Corporation's customers have limited bargaining power due to the lack of concentration in the banking industry. Individual customers do not have significant influence over the company's operations.

Bargaining Power Of Suppliers

Camden National Corporation has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company is not heavily dependent on a single supplier, reducing the risk of supplier negotiations.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and capital requirements. This limits the threat of new entrants and reduces the competitive pressure on Camden National Corporation.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Camden National Corporation faces intense rivalry from other banks and financial institutions, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.78%
Debt Cost 7.61%
Equity Weight 48.22%
Equity Cost 7.61%
WACC 7.61%
Leverage 107.38%

11. Quality Control: Camden National Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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SB Financial Group

A-Score: 5.9/10

Value: 8.1

Growth: 3.9

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

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Camden National

A-Score: 5.7/10

Value: 6.0

Growth: 5.1

Quality: 5.2

Yield: 8.0

Momentum: 2.5

Volatility: 7.3

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Growth: 5.6

Quality: 7.8

Yield: 5.0

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Value: 5.3

Growth: 4.8

Quality: 4.7

Yield: 8.0

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Volatility: 6.3

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Value: 4.9

Growth: 4.8

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 6.0

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Eagle Bancorp

A-Score: 4.9/10

Value: 9.1

Growth: 4.2

Quality: 4.2

Yield: 7.0

Momentum: 1.0

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.92$

Current Price

45.92$

Potential

-0.00%

Expected Cash-Flows