Camden National NASDAQ: CAC reported what executives described as a strong start to 2026, posting first-quarter net income of $21.9 million and earnings per share of $1.29. President and CEO Simon Griffiths said results were “near our record earnings reported last quarter,” reflecting benefits from the Northway Financial acquisition completed last year and “ongoing organic financial improvements across the franchise.”
Griffiths said performance came despite “macroeconomic headwinds” and typical first-quarter seasonality, and he emphasized continued progress on strategic priorities including growth, disciplined operations, and expanding capabilities to serve customers. The company also highlighted strengthening capital levels, low levels of problem loans, and continued investment in digital tools and automation.
Profitability and balance sheet trends
Executive Vice President and CFO Michael Archer said Camden delivered a reported return on average assets of 1.28% and return on average tangible equity of 18.17% in the quarter, alongside a non-GAAP efficiency ratio of 53.21%.
Camden’s tangible common equity ratio increased to 7.64% at quarter-end, which Griffiths called a sign of “strong and building capital levels.” Archer added that capital continues to rebuild following the Northway Financial acquisition, supporting both balance sheet strength and shareholder returns.
Tangible book value per share grew 3% to $30.58 at March 31, according to Archer. During the quarter, the company repurchased just over 33,000 shares and, through dividends and repurchases, returned $8.6 million to shareholders.
Net interest margin outlook and funding dynamics
Archer reported a first-quarter net interest margin (NIM) of 3.24%, up 20 basis points year-over-year and down 5 basis points from the prior quarter. He attributed the linked-quarter decline primarily to lower fair value mark-to-accretion income of $956,000, while noting that core NIM remained stable at 2.92%.
Looking ahead, Archer said the company anticipates core NIM expansion of 2 to 5 basis points in the second quarter. He said the company’s current interest rate outlook now assumes “slower and more gradual net interest margin expansion throughout 2026” because “the likelihood of further Fed rate cuts has decreased.”
In response to questions from analysts, Archer said the expected margin expansion is driven “primarily on the liability side,” pointing to seasonal deposit flows, continued CD repricing, and expected benefits as some derivatives roll off later in the year. He also said Camden is focused on redeploying investment cash flows to optimize funding and help support loan growth.
On fair value accretion, Archer said the company recorded about $4.3 million in the quarter and suggested a run-rate expectation of “four and a half, maybe a little bit north of that” going forward.
Loans, deposits, and growth expectations
Loan growth was “tempered this quarter,” which Griffiths said was driven primarily by seasonality. He highlighted continued growth in the home equity loan portfolio, which increased $10.6 million during the quarter, and said pipelines are building as the company moves into spring and summer.
Management expressed optimism around its commercial buildout, citing recent hires and strengthening teams, particularly in New Hampshire. Griffiths said the company is “deepening engagement with small and middle market businesses” and positioning Camden as a primary banking partner for lending and treasury management solutions.
When asked about a full-year loan growth range, Griffiths said “low sort of single-digit” to “mid-single-digit” growth “feels reasonable,” while acknowledging broader uncertainty. Archer added that pipelines are building and reiterated that the first quarter is “normally sluggish” for the company, with the back half of the year typically stronger.
On residential mortgages, Archer told analysts the company is generally around a “±50/50” split between loans sold into the secondary market and loans held on the balance sheet, with quarter-to-quarter variation. He characterized residential as a “slower growth” and “more relationship-based” category rather than a high-growth driver.
Deposits totaled $5.6 billion at March 31, representing a 1% increase from the prior quarter. Griffiths said the company was pleased with deposit growth given the “cyclical nature” of flows, citing continued traction in high-yield savings accounts and “recent wins” from commercial and treasury management teams. He emphasized a focus on relationship deposits driven by service and convenience rather than “rate-driven volume.”
In discussing competitive conditions, Griffiths said the company has felt “a pickup in competition over the last 3, 6 months,” including pricing pressure, but said Camden still sees meaningful opportunity by emphasizing products, advice, treasury, and service.
Fees, expenses, and credit quality
Non-interest income declined from the prior quarter due to seasonality in fee categories such as debit card, mortgage banking, and swap fee income, Archer said. Despite market volatility, assets under administration in the wealth and brokerage business were “essentially flat” sequentially at $2.4 billion at March 31. Archer said AUA rose 11% year-over-year and that quarterly revenues have continued to grow. For the second quarter, he said the company expects non-interest income to rebound to approximately $13 million.
On expenses, Archer said non-interest expense totaled $35.7 million, down 3% from the prior quarter. He expects expenses to “normalize” in the second quarter, citing a first-quarter true-up related to incentive accruals and typical seasonal items such as the annual merit cycle. The company’s estimate for second-quarter non-interest expense is approximately $37.5 million. Griffiths also told analysts that Camden remains disciplined about hiring and does not expect a “material impact” to expenses from recent staffing moves, noting that some hires replace existing positions.
Credit metrics remained strong. Archer said non-performing loans were 22 basis points of total loans and past due loans were 6 basis points at March 31. Net charge-offs were $506,000, or 4 basis points of average loans annualized, which drove a first-quarter provision expense of $553,000. The allowance for credit losses was 92 basis points at quarter-end, compared with 91 basis points at year-end, and Archer said management believes reserves are appropriate, citing a 4.2 times coverage ratio of non-performing loans.
In the Q&A, Griffiths also addressed customer sentiment, describing it as “a mixed picture,” with steady consumer spending and measured but positive business investment. He said tourism- and hotel-related customers reported a decent start to the year in bookings and outlook for summer, while noting broader variables such as fuel costs.
Griffiths closed the call by reiterating that the company believes it is “well-positioned for the remainder of 2026,” supported by what management described as a resilient balance sheet, disciplined execution, and continued investment in people and technology.
About Camden National NASDAQ: CAC
Camden National Corporation is a bank holding company headquartered in Camden, Maine. Through its primary subsidiary, Camden National Bank, the company provides a full range of community banking services to individuals and businesses. Its branch network spans much of the State of Maine, with a concentration in the midcoast, central and southern regions.
The company's offerings include deposit products such as checking, savings and money market accounts, along with consumer and commercial lending services.
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