Camden National Corporation reports strong Q4 and full-year 2024 earnings

A recent merger sets the stage for expanded services and increased profitability

Camden National Corporation reports strong Q4 and full-year 2024 earnings

Camden National Corporation (NASDAQ: CAC) reported solid financial results for the fourth quarter and full-year 2024, highlighted by earnings growth and an expanded net interest margin. The company also announced the successful completion of its merger with Northway Financial, Inc., the parent company of Northway Bank, strengthening the corporation’s presence in Northern New England.

For the quarter ended Dec. 31, 2024, Camden National posted net income of $14.7 million, a 12% increase from the previous quarter, while diluted earnings per share (EPS) rose 11% to $1.00. Excluding merger-related expenses, core net income was $15.1 million, reflecting a 9% increase from the third quarter.

For the full year, the company reported net income of $53.0 million and diluted EPS of $3.62, both increasing 22% compared to 2023. Core net income and core diluted EPS each grew by 1% on a non-GAAP basis.

“We are pleased with our fourth quarter and full-year financial performance. These results reflect our team’s collective efforts and commitment to serving our customers and communities,” said Simon Griffiths, Camden National’s president and CEO. “As we enter 2025, we are excited to welcome our neighbors from Northway and bolster our franchise in New Hampshire. We remain confident in our plan to build the premier Northern New England community bank, and our strong 2024 financial performance provides us a solid foundation to do so.”

Northway merger and financial condition

On Jan. 2, 2025, Camden National finalized its acquisition of Northway Financial in an all-stock transaction. The merger brought Camden National’s total assets to approximately $7.0 billion and expanded its branch network to 73 locations across Maine and New Hampshire. The integration of Northway’s products and services is expected to be completed by mid-March 2025.

As of Dec. 31, 2024, Camden National reported total assets of $5.8 billion, with loans remaining stable at $4.1 billion. Deposits increased 1% to $4.6 billion, while cash balances rose 54% to $215.0 million, though management expects these balances to normalize in early 2025.

The company maintained strong asset quality, with non-performing loans declining to 0.16% of total loans and net charge-offs at a low 0.04% annualized rate. The allowance for credit losses increased slightly to 0.87% of total loans.

Revenue and profitability growth

Net interest margin for the fourth quarter expanded by 11 basis points to 2.57%, contributing to a 5% increase in net interest income, which reached $35.4 million. Non-interest income grew 7% quarter-over-quarter to $12.2 million, driven by higher debit card and loan swap fee income.

Operating expenses decreased 2% from the previous quarter, leading to an improved efficiency ratio of 59.62% on a GAAP basis and 58.51% on a non-GAAP basis.

Camden National declared a quarterly cash dividend of $0.42 per share, representing an annualized yield of 3.93%, payable on Jan. 31, 2025, to shareholders of record as of Jan. 15.

Management expressed confidence in continued financial stability and profitability in 2025, supported by organic growth and the Northway acquisition.

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