Camden National Corporation (CAC) | Investment Case

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

Last Price	48.22
Change Percentage	-2.19%
Open	49.27
Previous Close	49.3
Market Cap ( Millions)	816
Volume	35323.1
Year High	53.71
Year Low	35
M A 50	48.04
M A 200	43.35

FCF Yield	9.68%
Dividend Yield	3.48%
ROE	11.66%
Debt / Equity	72.31%
Net Debt / EBIDTA	432.18%
Price To Book	1.15
Price Earnings Ratio	10.26
Price To FCF	10.33
Price To sales	2.28
EV / EBITDA	13.61

2. Camden National Q1 2026 Earnings Overview: Strong Start Amid Low‑Risk Growth

Camden National Corporation delivered a robust first quarter with net income of $21.9 million and diluted EPS of $1.29, surpassing analyst expectations of $1.26. Adjusted net income rose 39% year‑over‑year, driven by disciplined credit, low non‑performing loans (22 bps) and modest charge‑off expense. The bank’s return on average tangible equity stood at 18.17%, while operating efficiency remained strong at a 53.21% ratio, underscoring a healthy balance sheet that supports future lending capacity.

Publication Date: May -06

                                    📋 Highlights
                                    Adjusted Earnings Growth:
                                                Net income of $21.9M and EPS of $1.29, with adjusted net income up 39% YoY.
Asset Quality:
                                                Nonperforming loans at 22 bps, past-due loans at 6 bps, and net charge-offs of $506K.
Deposit Growth:
                                                Total deposits reached $5.6B, a 1% increase from the prior quarter.
Financial Metrics:
                                                ROA of 1.28%, ROTE of 18.17%, and efficiency ratio of 53.21%.
Loan Portfolio Expansion:
                                                Home equity loans grew $10.6M during the quarter.

                                

Credit Quality & Asset Quality

Credit metrics remained solid, with non‑performing loans at 22 bps and past‑due loans at 6 bps, reflecting a conservative underwriting stance. Net charge‑offs of $506,000 (4 bps of average loans) were the primary driver of the quarter’s $553,000 provision. The bank’s focus on premium pricing and disciplined growth keeps asset quality above industry averages.

Deposit & Liquidity Position

Deposits grew 1% to $5.6 billion, driven by relationship deposits rather than rate‑driven volume. The bank’s liquidity profile remains robust, with capital levels aligned to loan quality and a clear focus on long‑term customer relationships. This stability underpins the company’s ability to deploy capital strategically.

Digital & AI Initiatives

Camden National’s digital strategy advances through its internally developed AI platform, Camden IQ, which provides bankers with time‑saving tools under a governance framework that balances productivity with a moderate risk profile. This initiative positions the bank for higher operational efficiency and customer engagement.

Growth Outlook & Margin Expansion

Michael Archer noted that the company anticipates net interest margin expansion of 2 to 5 basis points on a core basis for the second quarter, primarily on the liability side through seasonal deposit flows and CD repricing. The bank projects low‑to‑mid single‑digit loan growth for the year, with a focus on home equity and residential portfolios, while maintaining disciplined growth in commercial lending.

Strategic Outlook & M&A

The bank remains open to strategic acquisitions that align with its footprint and culture, as highlighted by Simon Griffiths. Emphasis on organic growth, talent acquisition, and relationship‑based lending is expected to drive future performance while preserving the bank’s low‑risk profile.

Valuation Perspective

At a P/B ratio of 1.17 and a dividend yield of 3.44%, Camden National trades at a modest 10.39× P/E, reflecting market confidence in its stable earnings and disciplined capital strategy. The bank’s P/TBV (approximated by P/B) suggests a valuation near the industry median, offering investors a balance of value and income.

3. NewsRoom

Camden National Corporation (CAC) Q1 2026 Earnings Call Transcript

Apr -28

Source: seekingalpha.com

Compared to Estimates, Camden National (CAC) Q1 Earnings: A Look at Key Metrics

Apr -28

Source: zacks.com

Camden National (CAC) Beats Q1 Earnings Estimates

Apr -28

Source: zacks.com

Camden National Corporation Delivers Solid First Quarter 2026 Results with Net Income of $21.9 Million and Diluted EPS of $1.29

Apr -28

Source: prnewswire.com

CAC 40, FTSE 100 and SMI 20 Forecasts – Euro Area Indices Trying to Bounce on Tuesday

Apr -28

Source: fxempire.com

DAX, CAC and FTSE Forecasts – European Area Indices Hesitate but Show Signs of Dip Buying

Apr -23

Source: fxempire.com

Camden National Bank Reinforces Commitment to Communities with Appointment of Jennifer Tyll as Community Reinvestment Officer

Apr -16

Source: prnewswire.com

Analyzing Camden National (NASDAQ:CAC) & Freedom Financial (OTCMKTS:FDVA)

Apr -08

Source: defenseworld.net

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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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

1-Year Total Return ->

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

1-Year Total Return ->

Lakeland Financial

A-Score: 5.6/10

Value: 4.8

Growth: 5.6

Quality: 7.8

Yield: 5.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

OceanFirst

A-Score: 5.5/10

Value: 5.3

Growth: 4.8

Quality: 4.7

Yield: 8.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

First Bancshares

A-Score: 5.1/10

Value: 4.9

Growth: 4.8

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.27%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.61%

Camden National Corporation - US1330341082

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CAC

1.c. Company Highlights

Average Yield

Stable Momentum

Fairly Valued

Earnings Beats

Revenues Beats

Average Quality

Expensive

Average Growth

Strong Momentum

Earnings Miss

Lower Quality

Revenues Miss

Weak Momentum

2. Camden National Q1 2026 Earnings Overview: Strong Start Amid Low‑Risk Growth

Credit Quality & Asset Quality

Deposit & Liquidity Position

Digital & AI Initiatives

Growth Outlook & Margin Expansion

Strategic Outlook & M&A

Valuation Perspective

3. NewsRoom

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%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Insurance Services

8. Camden National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.22$

Current Price

48.22$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA