Camden National Corporation Announces Another Record with Fourth Quarter 2025 Net Income of $22.6 Million and Diluted EPS of $1.33
PR Newswire
CAMDEN, Maine, Jan. 27, 2026
CAMDEN, Maine, Jan. 27, 2026 /PRNewswire/ — Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”) today reported earnings for the quarter ended December 31, 2025, of $22.6 million and diluted earnings per share (“EPS”) of $1.33, both increases of 6%, when compared to the third quarter of 2025. For the quarter ended December 31, 2025, the Company reported a return on average assets of 1.28%, a return on average equity of 13.01%, and a return on average tangible equity (non-GAAP) of 19.06%.
“We are delighted to report record-breaking quarterly performance, powered by strong execution of our strategic initiatives and continued expansion of our net interest margin, reaching 3.29% for the fourth quarter,” said Simon Griffiths, president and chief executive officer of Camden National Corporation. “Our balance sheet remains exceptionally strong and credit metrics continue to trend favorably. I extend my sincere thanks to our colleagues, whose dedication to our customers and communities has positioned us for an outstanding 2026 and an even brighter future. We are more confident than ever in our strategy to build the premier community bank in Northern New England, and our strong 2025 financial results provide a powerful foundation for the growth and opportunities ahead.”
For the year ended December 31, 2025, the Company reported net income of $65.2 million and diluted EPS of $3.84, increases of 23% and 6%, respectively, over the year ended December 31, 2024. On a non-GAAP basis, adjusted net income for the year ended December 31, 2025, was $74.4 million and adjusted diluted EPS was $4.39, increases of 39% and 20%, respectively, over the year ended December 31, 2024.
HIGHLIGHTS
- Net income totaled $22.6 million for the fourth quarter of 2025, an increase of 6% over the third quarter of 2025, and, on a non-GAAP basis, pre-tax, pre-provision income increased 6% over the same period to $31.2 million for the fourth quarter of 2025.
- Net interest margin for the fourth quarter of 2025 increased 13 basis points over the third quarter of 2025 to 3.29%, and core net interest margin increased 10 basis points over the same period to 2.92%.
- GAAP efficiency ratio for the fourth quarter of 2025 was 54.16%, while the non-GAAP efficiency ratio was 51.69%, reflecting our strong revenue momentum and our continued disciplined expense management.
- Book value per share increased 3% from September 30, 2025 to $41.16 as of December 31, 2025, and tangible book value per share (non-GAAP) increased 4% during the same period to $29.69 at year-end.
- On January 8, 2026, the Company announced a new share repurchase program for up to 850,000 shares of the Company’s common stock, or approximately 5% of its outstanding stock as of December 31, 2025.
FINANCIAL OPERATING RESULTS (Q4 2025 vs. Q3 2025)
Net interest income for the fourth quarter of 2025 increased 5% over the third quarter of 2025 to $53.9 million. The increase was driven by a 13 basis point expansion in net interest margin to 3.29% for the fourth quarter. This notable margin improvement was fueled by an 11 basis point reduction in the Company’s funding costs during the quarter.
Provision expense totaled $3.0 million for each of the third and fourth quarters of 2025. The provision expense for the fourth quarter of 2025 was primarily attributable to net charge-offs of $3.2 million for the quarter, driven by a $3.0 million charge-off due to the short sale of a large commercial real estate loan that had been designated as a classified asset for nearly two years. During the fourth quarter of 2025, we were presented with the opportunity to exit this asset. After a thorough assessment, we determined exiting the asset was the most prudent and proactive step to limit potential future exposure and further strengthen the Company’s credit profile. The transaction closed late in the fourth quarter of 2025.
Non-interest income for the fourth quarter of 2025 totaled $14.1 million, remaining consistent with the third quarter of 2025. Assets under administration within our wealth and brokerage businesses grew organically by 11% during 2025, totaling $2.4 billion as of December 31, 2025. Additionally, during the fourth quarter of 2025, the Company recognized its annual Visa incentive bonus of $979,000 and higher customer loan swap fees of $366,000 on a linked-quarter basis.
Non-interest expense for the fourth quarter of 2025 totaled $36.9 million, and our GAAP and non-GAAP efficiency ratios were 54.16% and 51.69%, respectively. Non-interest expense increased $933,000 on a linked-quarter basis as we recognized certain retirement plan costs for former Northway employees, higher performance incentive accruals due to strong annual Company financial performance, higher health insurance costs, and elevated technology-related costs primarily due to the timing of annual maintenance contracts and ongoing investments in our customer-facing technology platforms.
FINANCIAL CONDITION
As of December 31, 2025 and September 30, 2025, total assets were $7.0 billion. Total assets grew 20% during 2025, primarily due to the acquisition of Northway Financial, inc. (“Northway”) and its subsidiary Northway Bank, on January 2, 2025, which bolstered the Company’s presence in New Hampshire.
Investments totaled $1.4 billion as of December 31, 2025, an increase of 2% since September 30, 2025. The duration of the bond investment portfolio at December 31, 2025 was 5.1 years.
As of December 31, 2025, loans totaled $5.0 billion, a 1% decrease from September 30, 2025, and for the year ended 2025, loans grew organically 2%. Commercial loan balances decreased $62.0 million during the fourth quarter, primarily due to the $35.9 million decrease in municipal loans. We continued to see strong momentum within our home equity loan portfolio, which grew 6% during the fourth quarter of 2025 and grew organically 18% for the year ended December 31, 2025. At December 31, 2025, our committed loan pipeline totaled $110.3 million, 60% higher than a year ago.
The Company’s asset quality remains strong as of December 31, 2025, supported by its healthy credit metrics, including non-performing assets at 0.10% of total assets and past-due loans at 0.16% of total loans. The allowance for credit losses (“ACL”) on loans was 0.91% of total loans at December 31, 2025 and September 30, 2025. The ACL on loans was 6.4 times non-performing loans at December 31, 2025, compared to 5.5 times at September 30, 2025.
Deposits totaled $5.5 billion on December 31, 2025, an increase of 2% since September 30, 2025. The growth was driven by a 3% increase in non‑maturity deposits, reflecting continued growth in our high‑yield savings product and interest checking during the fourth quarter of 2025. As of December 31, 2025, the Company’s loan-to-deposit ratio was 90%, compared to 93% at September 30, 2025.
As of December 31, 2025, the Company’s regulatory capital ratios exceeded all regulatory requirements, including a Common Equity Tier 1 ratio of 11.69%, a Tier 1 risk-based ratio of 13.00%, a total risk-based ratio of 13.95%, and a Tier 1 leverage ratio of 9.12%. The Company’s regulatory capital ratios continue to rebuild following the Northway acquisition in the first quarter of 2025.
On December 16, 2025, the Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 3.87%, based on the Company’s closing share price of $43.38 as reported by NASDAQ on December 31, 2025, payable on January 30, 2026, to shareholders of record on January 15, 2026.
Q4 2025 CONFERENCE CALL
Camden National will host a conference call and webcast at 3:00 p.m. Eastern Time, on Tuesday, January 27, 2026, to discuss its fourth quarter 2025 financial results and outlook. Participants should dial in 10 – 15 minutes before the call begins. Information about the conference call is as follows:
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Live dial-in (Domestic): |
(833) 470-1428 |
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Link for live dial-in (All other locations): |
https://www.netroadshow.com/conferencing/global-numbers?confId=93678 |
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Participant access code: |
070467 |
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Live webcast: |
A link to the live webcast will be available on Camden National’s website under “About — Investor Relations” at CamdenNational.bank prior to the meeting, and a replay of the webcast will be available on Camden National’s website following the conference call. The transcript of the conference call will also be available on Camden National’s website approximately two days after the conference call.
ABOUT CAMDEN NATIONAL CORPORATION
Camden National Corporation (NASDAQ: CAC) is Northern New England’s largest publicly traded bank holding company, with $7.0 billion in assets. Founded in 1875, Camden National Bank has 72 branches in Maine and New Hampshire, is a full-service community bank offering the latest digital banking, complemented by award-winning, personalized service. Additional information is available at CamdenNational.bank. Member FDIC. Equal Housing Lender.
Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National’s investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions, including as a result of tariffs and retaliatory tariffs; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National’s ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National’s Annual Report on Form 10-K for the year ended December 31, 2024, as updated by other filings with the Securities and Exchange Commission (“SEC”). Further, statements regarding the potential effects of notable and global current events on the Company’s business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company’s control. Statements relating to the Company’s acquisition of Northway may also be forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include the reaction to the transaction of the Company’s customers, employees and counterparties; customer disintermediation; expected synergies, cost savings and other financial benefits of the transaction might not be realized within the expected timeframes or might be less than projected; and credit and interest rate risks associated with Camden’s and Northway’s respective businesses, customers, borrowings, repayment, investment and deposit practices. Camden National does not have any obligation to update forward-looking statements.
USE OF NON-GAAP MEASURES
In addition to evaluating the Company’s results of operations in accordance with generally accepted accounting principles in the United States (“GAAP”), management supplements this evaluation with certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; adjusted pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; core net interest margin; and tangible book value per share. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company’s operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found in this document.
ANNUALIZED DATA
Certain returns, yields and performance ratios are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.
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Selected Financial Data (unaudited) |
||||||||||
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At or For The Three Months Ended |
At or For The Year Ended |
|||||||||
|
(In thousands, except number of shares and per share data) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Financial Condition Data |
||||||||||
|
Loans |
$ 4,965,138 |
$ 5,002,927 |
$ 4,115,259 |
$ 4,965,138 |
$ 4,115,259 |
|||||
|
Total assets |
6,974,584 |
6,981,522 |
5,805,138 |
6,974,584 |
5,805,138 |
|||||
|
Deposits |
5,537,781 |
5,402,758 |
4,633,167 |
5,537,781 |
4,633,167 |
|||||
|
Shareholders’ equity |
696,558 |
676,444 |
531,231 |
696,558 |
531,231 |
|||||
|
Operating Data and Per Share Data |
||||||||||
|
Net income |
$ 22,559 |
$ 21,194 |
$ 14,666 |
$ 65,160 |
$ 53,004 |
|||||
|
Pre-tax, pre-provision income (non-GAAP)(1) |
31,192 |
29,470 |
19,211 |
100,945 |
65,056 |
|||||
|
Diluted EPS |
1.33 |
1.25 |
1.00 |
3.84 |
3.62 |
|||||
|
Profitability Ratios |
||||||||||
|
Return on average assets |
1.28 % |
1.21 % |
1.01 % |
0.94 % |
0.92 % |
|||||
|
Return on average equity |
13.01 % |
12.75 % |
10.99 % |
9.96 % |
10.36 % |
|||||
|
Return on average tangible equity (non-GAAP)(1) |
19.06 % |
19.12 % |
13.50 % |
15.24 % |
12.83 % |
|||||
|
GAAP efficiency ratio |
54.16 % |
54.94 % |
59.62 % |
60.53 % |
63.24 % |
|||||
|
Efficiency ratio (non-GAAP)(1) |
51.69 % |
52.47 % |
58.22 % |
54.46 % |
62.05 % |
|||||
|
Net interest margin (fully-taxable equivalent) |
3.29 % |
3.16 % |
2.57 % |
3.17 % |
2.46 % |
|||||
|
Asset Quality Ratios |
||||||||||
|
ACL on loans to total loans |
0.91 % |
0.91 % |
0.87 % |
0.91 % |
0.87 % |
|||||
|
Non-performing loans to total loans |
0.14 % |
0.17 % |
0.12 % |
0.14 % |
0.12 % |
|||||
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Capital Ratios |
||||||||||
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Common equity ratio |
9.99 % |
9.69 % |
9.15 % |
9.99 % |
9.15 % |
|||||
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Tangible common equity ratio (non-GAAP)(1) |
7.41 % |
7.09 % |
7.64 % |
7.41 % |
7.64 % |
|||||
|
Book value per share |
$ 41.16 |
$ 39.97 |
$ 36.44 |
$ 41.16 |
$ 36.44 |
|||||
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Tangible book value per share (non-GAAP)(1) |
$ 29.69 |
$ 28.42 |
$ 29.91 |
$ 29.69 |
$ 29.91 |
|||||
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Tier 1 leverage capital ratio |
9.12 % |
8.94 % |
9.90 % |
9.12 % |
9.90 % |
|||||
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Total risk-based capital ratio |
13.95 % |
13.47 % |
15.11 % |
13.95 % |
15.11 % |
|||||
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(1) |
This is a non-GAAP measure, please see “Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).” |
|
Consolidated Statements of Condition Data (unaudited)
|
||||||||||
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(In thousands) |
December 31, |
September 30, |
December 31, |
% Change |
% Change |
|||||
|
ASSETS |
||||||||||
|
Cash, cash equivalents and restricted cash |
$ 97,492 |
$ 98,848 |
$ 214,963 |
(1) % |
(55) % |
|||||
|
Investments: |
||||||||||
|
Trading securities |
5,747 |
5,581 |
5,243 |
3 % |
10 % |
|||||
|
Available-for-sale securities, at fair value |
930,401 |
889,765 |
593,749 |
5 % |
57 % |
|||||
|
Held-to-maturity securities, at amortized cost |
485,292 |
495,007 |
517,778 |
(2) % |
(6) % |
|||||
|
Other investments |
26,497 |
31,185 |
22,514 |
(15) % |
18 % |
|||||
|
Total investments |
1,447,937 |
1,421,538 |
1,139,284 |
2 % |
27 % |
|||||
|
Loans held for sale, at fair value |
15,040 |
9,775 |
11,049 |
54 % |
36 % |
|||||
|
Loans: |
||||||||||
|
Commercial real estate |
2,185,105 |
2,173,748 |
1,711,964 |
1 % |
28 % |
|||||
|
Commercial |
417,439 |
479,461 |
382,785 |
(13) % |
9 % |
|||||
|
Residential real estate |
2,012,922 |
2,017,675 |
1,752,249 |
— % |
15 % |
|||||
|
Home equity |
332,256 |
313,951 |
253,251 |
6 % |
31 % |
|||||
|
Consumer |
17,416 |
18,092 |
15,010 |
(4) % |
16 % |
|||||
|
Total loans |
4,965,138 |
5,002,927 |
4,115,259 |
(1) % |
21 % |
|||||
|
Less: allowance for credit losses on loans |
(45,276) |
(45,501) |
(35,728) |
— % |
27 % |
|||||
|
Net loans |
4,919,862 |
4,957,426 |
4,079,531 |
(1) % |
21 % |
|||||
|
Goodwill and core deposit intangible assets |
194,085 |
195,558 |
95,112 |
(1) % |
104 % |
|||||
|
Other assets |
300,168 |
298,377 |
265,199 |
1 % |
13 % |
|||||
|
Total assets |
$ 6,974,584 |
$ 6,981,522 |
$ 5,805,138 |
— % |
20 % |
|||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||
|
Liabilities |
||||||||||
|
Deposits: |
||||||||||
|
Non-interest checking |
$ 1,113,450 |
$ 1,162,149 |
$ 925,571 |
(4) % |
20 % |
|||||
|
Interest checking |
1,703,971 |
1,535,482 |
1,483,589 |
11 % |
15 % |
|||||
|
Savings and money market |
1,910,708 |
1,879,770 |
1,511,589 |
2 % |
26 % |
|||||
|
Certificates of deposit |
679,087 |
701,031 |
532,424 |
(3) % |
28 % |
|||||
|
Brokered deposits |
130,565 |
124,326 |
179,994 |
5 % |
(27) % |
|||||
|
Total deposits |
5,537,781 |
5,402,758 |
4,633,167 |
2 % |
20 % |
|||||
|
Short-term borrowings |
581,780 |
748,492 |
500,621 |
(22) % |
16 % |
|||||
|
Long-term borrowings |
1,000 |
1,000 |
— |
— % |
N.M. |
|||||
|
Junior subordinated debentures |
61,515 |
61,441 |
44,331 |
— % |
39 % |
|||||
|
Accrued interest and other liabilities |
95,950 |
91,387 |
95,788 |
5 % |
— % |
|||||
|
Total liabilities |
6,278,026 |
6,305,078 |
5,273,907 |
— % |
19 % |
|||||
|
Commitments and Contingencies |
||||||||||
|
Shareholders’ Equity |
||||||||||
|
Common stock, no par value |
215,797 |
215,145 |
116,425 |
— % |
85 % |
|||||
|
Retained earnings |
545,149 |
529,721 |
509,452 |
3 % |
7 % |
|||||
|
Accumulated other comprehensive loss: |
||||||||||
|
Net unrealized loss on debt securities, net of tax |
(70,405) |
(74,348) |
(104,015) |
(5) % |
(32) % |
|||||
|
Net unrealized gain on cash flow hedging derivative instruments, net of tax |
5,478 |
5,532 |
8,958 |
(1) % |
(39) % |
|||||
|
Net unrecognized gain on postretirement plans, net of tax |
539 |
394 |
411 |
37 % |
31 % |
|||||
|
Total accumulated other comprehensive loss |
(64,388) |
(68,422) |
(94,646) |
(6) % |
(32) % |
|||||
|
Total Shareholders’ equity |
696,558 |
676,444 |
531,231 |
3 % |
31 % |
|||||
|
Total liabilities and shareholders’ equity |
$ 6,974,584 |
$ 6,981,522 |
$ 5,805,138 |
— % |
20 % |
|||||
|
N.M. = Not meaningful |
|
Consolidated Statements of Income Data (unaudited)
|
||||||||||
|
For the Three Months Ended |
% Change Dec |
% Change Dec |
||||||||
|
(In thousands, except per share data) |
December 31, |
September 30, |
December 31, |
|||||||
|
Interest Income |
||||||||||
|
Interest and fees on loans |
$ 70,032 |
$ 69,070 |
$ 54,035 |
1 % |
30 % |
|||||
|
Taxable interest on investments |
10,489 |
10,314 |
6,925 |
2 % |
51 % |
|||||
|
Nontaxable interest on investments |
455 |
456 |
461 |
— % |
(1) % |
|||||
|
Dividend income |
457 |
470 |
408 |
(3) % |
12 % |
|||||
|
Other interest income |
610 |
584 |
1,662 |
4 % |
(63) % |
|||||
|
Total interest income |
82,043 |
80,894 |
63,491 |
1 % |
29 % |
|||||
|
Interest Expense |
||||||||||
|
Interest on deposits |
23,353 |
24,719 |
23,408 |
(6) % |
— % |
|||||
|
Interest on borrowings |
3,867 |
4,039 |
4,134 |
(4) % |
(6) % |
|||||
|
Interest on junior subordinated debentures |
905 |
864 |
540 |
5 % |
68 % |
|||||
|
Total interest expense |
28,125 |
29,622 |
28,082 |
(5) % |
— % |
|||||
|
Net interest income |
53,918 |
51,272 |
35,409 |
5 % |
52 % |
|||||
|
Provision for credit losses |
2,969 |
2,972 |
809 |
— % |
267 % |
|||||
|
Net interest income after provision for credit losses |
50,949 |
48,300 |
34,600 |
5 % |
47 % |
|||||
|
Non-Interest Income |
||||||||||
|
Debit card income |
4,689 |
3,704 |
3,553 |
27 % |
32 % |
|||||
|
Service charges on deposit accounts |
2,558 |
2,570 |
2,136 |
— % |
20 % |
|||||
|
Income from fiduciary services |
1,927 |
1,884 |
1,834 |
2 % |
5 % |
|||||
|
Brokerage and insurance commissions |
1,674 |
1,850 |
1,441 |
(10) % |
16 % |
|||||
|
Mortgage banking income, net |
863 |
1,092 |
933 |
(21) % |
(8) % |
|||||
|
Bank-owned life insurance |
820 |
957 |
720 |
(14) % |
14 % |
|||||
|
Other income |
1,603 |
2,068 |
1,549 |
(22) % |
3 % |
|||||
|
Total non-interest income |
14,134 |
14,125 |
12,166 |
— % |
16 % |
|||||
|
Non-Interest Expense |
||||||||||
|
Salaries and employee benefits |
20,077 |
20,089 |
15,973 |
— % |
26 % |
|||||
|
Furniture, equipment and data processing |
4,571 |
4,173 |
3,660 |
10 % |
25 % |
|||||
|
Net occupancy costs |
2,795 |
2,666 |
1,971 |
5 % |
42 % |
|||||
|
Debit card expense |
1,653 |
1,745 |
1,344 |
(5) % |
23 % |
|||||
|
Amortization of core deposit intangible assets |
1,474 |
1,473 |
139 |
— % |
N.M. |
|||||
|
Regulatory assessments |
1,146 |
1,020 |
804 |
12 % |
43 % |
|||||
|
Consulting and professional fees |
999 |
810 |
786 |
23 % |
27 % |
|||||
|
Other real estate owned and collection costs, net |
43 |
46 |
50 |
(7) % |
(14) % |
|||||
|
Merger and acquisition costs |
41 |
315 |
432 |
(87) % |
(91) % |
|||||
|
Other expenses |
4,061 |
3,590 |
3,205 |
13 % |
27 % |
|||||
|
Total non-interest expense |
36,860 |
35,927 |
28,364 |
3 % |
30 % |
|||||
|
Income before income tax expense |
28,223 |
26,498 |
18,402 |
7 % |
53 % |
|||||
|
Income Tax Expense |
5,664 |
5,304 |
3,736 |
7 % |
52 % |
|||||
|
Net Income |
$ 22,559 |
$ 21,194 |
$ 14,666 |
6 % |
54 % |
|||||
|
Per Share Data |
||||||||||
|
Basic earnings per share |
$ 1.34 |
$ 1.25 |
$ 1.01 |
7 % |
33 % |
|||||
|
Diluted earnings per share |
$ 1.33 |
$ 1.25 |
$ 1.00 |
6 % |
33 % |
|||||
|
N.M. = Not meaningful |
|
Consolidated Statements of Income Data (unaudited)
|
||||||
|
For the Year Ended |
% Change Dec |
|||||
|
(In thousands, except per share data) |
December 31, |
December 31, |
||||
|
Interest Income |
||||||
|
Interest and fees on loans |
$ 273,128 |
$ 214,650 |
27 % |
|||
|
Taxable interest on investments |
40,832 |
27,381 |
49 % |
|||
|
Nontaxable interest on investments |
1,834 |
1,849 |
(1) % |
|||
|
Dividend income |
1,940 |
1,630 |
19 % |
|||
|
Other interest income |
2,921 |
4,047 |
(28) % |
|||
|
Total interest income |
320,655 |
249,557 |
28 % |
|||
|
Interest Expense |
||||||
|
Interest on deposits |
97,287 |
95,806 |
2 % |
|||
|
Interest on borrowings |
16,544 |
19,166 |
(14) % |
|||
|
Interest on junior subordinated debentures |
3,567 |
2,132 |
67 % |
|||
|
Total interest expense |
117,398 |
117,104 |
— % |
|||
|
Net interest income |
203,257 |
132,453 |
53 % |
|||
|
Provision (credit) for credit losses |
22,290 |
(404) |
N.M. |
|||
|
Net interest income after provision (credit) for credit losses |
180,967 |
132,857 |
36 % |
|||
|
Non-Interest Income |
||||||
|
Debit card income |
15,272 |
12,657 |
21 % |
|||
|
Service charges on deposit accounts |
9,851 |
8,444 |
17 % |
|||
|
Income from fiduciary services |
7,630 |
7,270 |
5 % |
|||
|
Brokerage and insurance commissions |
7,015 |
5,535 |
27 % |
|||
|
Mortgage banking income, net |
3,523 |
3,230 |
9 % |
|||
|
Bank-owned life insurance |
3,440 |
2,806 |
23 % |
|||
|
Other income |
5,791 |
4,597 |
26 % |
|||
|
Total non-interest income |
52,522 |
44,539 |
18 % |
|||
|
Non-Interest Expense |
||||||
|
Salaries and employee benefits |
79,801 |
64,073 |
25 % |
|||
|
Furniture, equipment and data processing |
17,769 |
14,364 |
24 % |
|||
|
Net occupancy costs |
11,187 |
7,912 |
41 % |
|||
|
Merger and acquisition costs |
9,286 |
1,159 |
N.M. |
|||
|
Debit card expense |
6,813 |
5,287 |
29 % |
|||
|
Amortization of core deposit intangible assets |
5,893 |
556 |
N.M. |
|||
|
Consulting and professional fees |
4,617 |
3,583 |
29 % |
|||
|
Regulatory assessments |
4,279 |
3,258 |
31 % |
|||
|
Other real estate owned and collection costs, net |
270 |
201 |
34 % |
|||
|
Other expenses |
14,919 |
11,543 |
29 % |
|||
|
Total non-interest expense |
154,834 |
111,936 |
38 % |
|||
|
Income before income tax expense |
78,655 |
65,460 |
20 % |
|||
|
Income Tax Expense |
13,495 |
12,456 |
8 % |
|||
|
Net Income |
$ 65,160 |
$ 53,004 |
23 % |
|||
|
Per Share Data |
||||||
|
Basic earnings per share |
$ 3.86 |
$ 3.63 |
6 % |
|||
|
Diluted earnings per share |
$ 3.84 |
$ 3.62 |
6 % |
|||
|
N.M. = Not meaningful |
|
Quarterly Average Balance and Yield/Rate Analysis (unaudited) |
||||||||||||
|
Average Balance |
Yield/Rate |
|||||||||||
|
For the Three Months Ended |
For the Three Months Ended |
|||||||||||
|
(Dollars in thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
September 30, |
December 31, |
||||||
|
Assets |
||||||||||||
|
Interest-earning assets: |
||||||||||||
|
Interest-bearing deposits in other banks |
$ 42,711 |
$ 38,170 |
$ 130,405 |
4.20 % |
4.45 % |
4.49 % |
||||||
|
Investments – taxable |
1,393,828 |
1,380,042 |
1,150,351 |
3.18 % |
3.17 % |
2.61 % |
||||||
|
Investments – nontaxable(1) |
61,184 |
61,114 |
61,929 |
3.77 % |
3.77 % |
3.77 % |
||||||
|
Loans(2): |
||||||||||||
|
Commercial real estate |
2,182,891 |
2,123,138 |
1,707,914 |
5.79 % |
5.72 % |
5.36 % |
||||||
|
Commercial(1) |
371,987 |
398,870 |
359,954 |
6.36 % |
6.26 % |
6.29 % |
||||||
|
Municipal(1) |
93,664 |
97,113 |
15,237 |
4.65 % |
4.76 % |
5.30 % |
||||||
|
Residential real estate |
2,031,695 |
2,033,136 |
1,766,143 |
4.87 % |
4.86 % |
4.45 % |
||||||
|
Home equity |
322,941 |
305,037 |
250,184 |
6.78 % |
7.12 % |
7.42 % |
||||||
|
Consumer |
18,015 |
18,716 |
16,881 |
12.25 % |
11.59 % |
8.89 % |
||||||
|
Total loans |
5,021,193 |
4,976,010 |
4,116,313 |
5.52 % |
5.50 % |
5.19 % |
||||||
|
Total interest-earning assets |
6,518,916 |
6,455,336 |
5,458,998 |
5.00 % |
4.98 % |
4.61 % |
||||||
|
Other assets |
479,563 |
469,590 |
315,181 |
|||||||||
|
Total assets |
$ 6,998,479 |
$ 6,924,926 |
$ 5,774,179 |
|||||||||
|
Liabilities & Shareholders’ Equity |
||||||||||||
|
Deposits: |
||||||||||||
|
Non-interest checking |
$ 1,174,537 |
$ 1,163,310 |
$ 948,015 |
— % |
— % |
— % |
||||||
|
Interest checking |
1,674,762 |
1,622,869 |
1,449,281 |
1.73 % |
1.82 % |
2.29 % |
||||||
|
Savings |
1,059,967 |
1,011,847 |
726,179 |
1.36 % |
1.34 % |
1.06 % |
||||||
|
Money market |
832,435 |
842,043 |
779,893 |
2.46 % |
2.69 % |
3.09 % |
||||||
|
Certificates of deposit |
690,278 |
698,948 |
537,922 |
3.38 % |
3.50 % |
3.67 % |
||||||
|
Total deposits |
5,431,979 |
5,339,017 |
4,441,290 |
1.61 % |
1.69 % |
1.91 % |
||||||
|
Borrowings: |
||||||||||||
|
Brokered deposits |
127,995 |
176,508 |
170,638 |
4.21 % |
4.51 % |
4.93 % |
||||||
|
Customer repurchase agreements |
264,926 |
246,775 |
182,017 |
1.05 % |
1.18 % |
1.58 % |
||||||
|
Junior subordinated debentures |
61,479 |
61,404 |
44,331 |
5.84 % |
5.58 % |
4.84 % |
||||||
|
Other borrowings |
338,290 |
354,099 |
325,000 |
3.71 % |
3.70 % |
4.17 % |
||||||
|
Total borrowings |
792,690 |
838,786 |
721,986 |
3.07 % |
3.27 % |
3.74 % |
||||||
|
Total funding liabilities |
6,224,669 |
6,177,803 |
5,163,276 |
1.79 % |
1.90 % |
2.16 % |
||||||
|
Other liabilities |
85,874 |
87,495 |
80,144 |
|||||||||
|
Shareholders’ equity |
687,936 |
659,628 |
530,759 |
|||||||||
|
Total liabilities & shareholders’ equity |
$ 6,998,479 |
$ 6,924,926 |
$ 5,774,179 |
|||||||||
|
Net interest rate spread (fully-taxable equivalent) |
3.21 % |
3.08 % |
2.45 % |
|||||||||
|
Net interest margin (fully-taxable equivalent) |
3.29 % |
3.16 % |
2.57 % |
|||||||||
|
Core net interest margin (fully-taxable equivalent)(3) |
2.92 % |
2.82 % |
2.57 % |
|||||||||
|
(1) |
Reported on tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans. |
|
(2) |
Non-accrual loans and loans held for sale are included in total average loans. |
|
(3) |
This is a non-GAAP measure. Please see “Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).” |
|
Year-to-Date Average Balance and Yield/Rate Analysis (unaudited) |
||||||||
|
Average Balance |
Yield/Rate |
|||||||
|
For the Year Ended |
For the Year Ended |
|||||||
|
(Dollars in thousands) |
December 31, |
December 31, |
December 31, |
December 31, |
||||
|
Assets |
||||||||
|
Interest-earning assets: |
||||||||
|
Interest-bearing deposits in other banks and other interest-earning assets |
$ 52,109 |
$ 68,633 |
4.45 % |
4.86 % |
||||
|
Investments – taxable |
1,386,590 |
1,159,910 |
3.13 % |
2.56 % |
||||
|
Investments – nontaxable(1) |
61,455 |
61,992 |
3.78 % |
3.78 % |
||||
|
Loans(2): |
||||||||
|
Commercial real estate |
2,112,281 |
1,699,655 |
5.81 % |
5.29 % |
||||
|
Commercial(1) |
396,783 |
378,257 |
6.38 % |
6.44 % |
||||
|
Municipal(1) |
91,044 |
15,859 |
5.06 % |
4.94 % |
||||
|
Residential real estate |
2,034,170 |
1,773,149 |
4.82 % |
4.47 % |
||||
|
Home equity |
300,630 |
244,332 |
7.02 % |
7.74 % |
||||
|
Consumer |
18,687 |
17,919 |
11.70 % |
9.00 % |
||||
|
Total loans |
4,953,595 |
4,129,171 |
5.53 % |
5.20 % |
||||
|
Total interest-earning assets |
6,453,749 |
5,419,706 |
4.99 % |
4.62 % |
||||
|
Other assets |
474,464 |
315,335 |
||||||
|
Total assets |
$ 6,928,213 |
$ 5,735,041 |
||||||
|
Liabilities & Shareholders’ Equity |
||||||||
|
Deposits: |
||||||||
|
Non-interest checking |
$ 1,137,343 |
$ 929,443 |
— % |
— % |
||||
|
Interest checking |
1,659,215 |
1,464,651 |
1.81 % |
2.48 % |
||||
|
Savings |
982,210 |
657,529 |
1.23 % |
0.71 % |
||||
|
Money market |
860,117 |
766,596 |
2.61 % |
3.31 % |
||||
|
Certificates of deposit |
699,740 |
567,182 |
3.54 % |
3.80 % |
||||
|
Total deposits |
5,338,625 |
4,385,401 |
1.67 % |
2.00 % |
||||
|
Borrowings: |
||||||||
|
Brokered deposits |
177,089 |
152,918 |
4.49 % |
5.18 % |
||||
|
Customer repurchase agreements |
245,748 |
185,299 |
1.20 % |
1.73 % |
||||
|
Junior subordinated debentures |
61,373 |
44,331 |
5.81 % |
4.81 % |
||||
|
Other borrowings |
359,625 |
365,989 |
3.78 % |
4.36 % |
||||
|
Total borrowings |
843,835 |
748,537 |
3.33 % |
3.90 % |
||||
|
Total funding liabilities |
6,182,460 |
5,133,938 |
1.90 % |
2.28 % |
||||
|
Other liabilities |
91,276 |
89,290 |
||||||
|
Shareholders’ equity |
654,477 |
511,813 |
||||||
|
Total liabilities & shareholders’ equity |
$ 6,928,213 |
$ 5,735,041 |
||||||
|
Net interest rate spread (fully-taxable equivalent) |
3.09 % |
2.34 % |
||||||
|
Net interest margin (fully-taxable equivalent) |
3.17 % |
2.46 % |
||||||
|
Core net interest margin (fully-taxable equivalent)(3) |
2.82 % |
2.46 % |
||||||
|
(1) |
Reported on tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans. |
|
(2) |
Non-accrual loans and loans held for sale are included in total average loans. |
|
(3) |
This is a non-GAAP measure. Please see “Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).” |
|
Year-to-Date Organic Loans And Deposits Growth (Unaudited) |
||||||||||
|
(A) |
(B) |
(C) |
(D) = (A) – (B) – (C) |
|||||||
|
(In thousands) |
December 31, 2025 |
December 31, 2024 |
Northway |
For the Year Ended December 31, 2025 Organic Growth (Decline) |
||||||
|
Loans: |
||||||||||
|
Commercial real estate |
$ 2,185,105 |
$ 1,711,964 |
$ 360,272 |
$ 112,869 |
7 % |
|||||
|
Commercial |
417,439 |
382,785 |
106,487 |
(71,833) |
(19) % |
|||||
|
Residential real estate |
2,012,922 |
1,752,249 |
273,349 |
(12,676) |
(1) % |
|||||
|
Home equity |
332,256 |
253,251 |
34,304 |
44,701 |
18 % |
|||||
|
Consumer |
17,416 |
15,010 |
1,251 |
1,155 |
8 % |
|||||
|
Total loans |
$ 4,965,138 |
$ 4,115,259 |
$ 775,663 |
$ 74,216 |
2 % |
|||||
|
Deposits: |
||||||||||
|
Non-interest checking |
$ 1,113,450 |
$ 925,571 |
$ 197,320 |
$ (9,441) |
(1) % |
|||||
|
Interest checking |
1,703,971 |
1,483,589 |
315,891 |
(95,509) |
(6) % |
|||||
|
Savings and money market |
1,910,708 |
1,511,589 |
285,889 |
113,230 |
7 % |
|||||
|
Certificates of deposit |
679,087 |
532,424 |
172,573 |
(25,910) |
(5) % |
|||||
|
Brokered deposits |
130,565 |
179,994 |
— |
(49,429) |
(27) % |
|||||
|
Total deposits |
$ 5,537,781 |
$ 4,633,167 |
$ 971,673 |
$ (67,059) |
(1) % |
|||||
|
(1) |
Represents fair value of loans and deposits as of the acquisition date, January 2, 2025. |
|
Asset Quality Data (unaudited)
|
||||||||||
|
(In thousands) |
At or for the Year Ended December 31, 2025 |
At or for the Nine Months Ended September 30, 2025 |
At or for the Six Months Ended June 30, 2025 |
At or for the Three Months Ended March 31, 2025 |
At or for the Year Ended December 31, 2024 |
|||||
|
Non-accrual loans: |
||||||||||
|
Residential real estate |
$ 2,667 |
$ 3,393 |
$ 3,678 |
$ 4,322 |
$ 1,891 |
|||||
|
Commercial real estate |
639 |
134 |
145 |
271 |
559 |
|||||
|
Commercial |
3,042 |
4,103 |
13,514 |
1,803 |
1,927 |
|||||
|
Home equity |
672 |
697 |
834 |
848 |
434 |
|||||
|
Consumer |
3 |
3 |
6 |
7 |
18 |
|||||
|
Total non-accrual loans |
7,023 |
8,330 |
18,177 |
7,251 |
4,829 |
|||||
|
Accruing loans past due 90 days |
— |
— |
— |
— |
— |
|||||
|
Total non-performing loans |
7,023 |
8,330 |
18,177 |
7,251 |
4,829 |
|||||
|
Other real estate owned |
— |
— |
72 |
72 |
— |
|||||
|
Total non-performing assets |
$ 7,023 |
$ 8,330 |
$ 18,249 |
$ 7,323 |
$ 4,829 |
|||||
|
Loans 30-89 days past due: |
||||||||||
|
Residential real estate |
$ 1,565 |
$ 725 |
$ 1,519 |
$ 1,754 |
$ 558 |
|||||
|
Commercial real estate |
5,284 |
5,014 |
1,120 |
380 |
689 |
|||||
|
Commercial |
541 |
1,865 |
884 |
767 |
393 |
|||||
|
Home equity |
713 |
456 |
457 |
301 |
552 |
|||||
|
Consumer |
59 |
37 |
134 |
139 |
69 |
|||||
|
Total loans 30-89 days past due |
$ 8,162 |
$ 8,097 |
$ 4,114 |
$ 3,341 |
$ 2,261 |
|||||
|
ACL on loans at the beginning of the period |
$ 35,728 |
$ 35,728 |
$ 35,728 |
$ 35,728 |
$ 36,935 |
|||||
|
ACL established on acquired PCD loans (1) |
3,071 |
3,071 |
3,071 |
3,071 |
— |
|||||
|
Provision for credit losses |
22,031 |
19,009 |
15,469 |
8,873 |
53 |
|||||
|
Charge-offs: |
||||||||||
|
Residential real estate |
4 |
4 |
4 |
4 |
— |
|||||
|
Commercial real estate |
3,220 |
218 |
191 |
191 |
— |
|||||
|
Commercial |
12,659 |
12,320 |
1,245 |
896 |
1,784 |
|||||
|
Home equity |
21 |
21 |
3 |
3 |
1 |
|||||
|
Consumer |
185 |
152 |
102 |
26 |
98 |
|||||
|
Total charge-offs |
16,089 |
12,715 |
1,545 |
1,120 |
1,883 |
|||||
|
Total recoveries |
(535) |
(408) |
(299) |
(171) |
(623) |
|||||
|
Net charge-offs |
15,554 |
12,307 |
1,246 |
949 |
1,260 |
|||||
|
ACL on loans at the end of the period |
$ 45,276 |
$ 45,501 |
$ 53,022 |
$ 46,723 |
$ 35,728 |
|||||
|
Components of ACL: |
||||||||||
|
ACL on loans |
$ 45,276 |
$ 45,501 |
$ 53,022 |
$ 46,723 |
$ 35,728 |
|||||
|
ACL on off-balance sheet credit exposures(2) |
3,064 |
3,117 |
3,685 |
3,362 |
2,806 |
|||||
|
ACL, end of period |
$ 48,340 |
$ 48,618 |
$ 56,707 |
$ 50,085 |
$ 38,534 |
|||||
|
Ratios: |
||||||||||
|
Non-performing loans to total loans |
0.14 % |
0.17 % |
0.37 % |
0.15 % |
0.12 % |
|||||
|
Non-performing assets to total assets |
0.10 % |
0.12 % |
0.26 % |
0.11 % |
0.08 % |
|||||
|
ACL on loans to total loans |
0.91 % |
0.91 % |
1.08 % |
0.96 % |
0.87 % |
|||||
|
Net charge-offs to average loans (annualized) |
||||||||||
|
Quarter-to-date |
0.26 % |
0.89 % |
0.02 % |
0.08 % |
0.04 % |
|||||
|
Year-to-date |
0.31 % |
0.33 % |
0.05 % |
0.08 % |
0.03 % |
|||||
|
ACL on loans to non-performing loans |
644.68 % |
546.23 % |
291.70 % |
644.37 % |
739.86 % |
|||||
|
Loans 30-89 days past due to total loans |
0.16 % |
0.16 % |
0.08 % |
0.07 % |
0.05 % |
|||||
|
(1) |
Purchase credit deteriorated (“PCD”). |
|
(2) |
Presented within accrued interest and other liabilities on the consolidated statements of condition. |
|
Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)
|
||||||||||
|
Adjusted Net Income; Adjusted Diluted Earnings per Share; and Adjusted Return on Average Assets: |
||||||||||
|
For the Three Months Ended |
For the Year Ended |
|||||||||
|
(In thousands, except number of shares, per share data and ratios) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Adjusted Net Income: |
||||||||||
|
Net income, as presented |
$ 22,559 |
$ 21,194 |
$ 14,666 |
$ 65,160 |
$ 53,004 |
|||||
|
Adjustments before taxes: |
||||||||||
|
Provision for non-PCD acquired loans |
— |
— |
— |
6,294 |
— |
|||||
|
Provision for acquired unfunded commitments |
— |
— |
— |
249 |
— |
|||||
|
Merger and acquisition costs |
41 |
315 |
432 |
9,286 |
1,159 |
|||||
|
Gain on sale of premises and equipment, net |
— |
(675) |
— |
(675) |
— |
|||||
|
Signature Bank bond recovery |
— |
— |
— |
— |
(910) |
|||||
|
Total adjustments before taxes |
41 |
(360) |
432 |
15,154 |
249 |
|||||
|
Tax impact of above adjustments, as applicable(1) |
(9) |
83 |
(12) |
(3,454) |
179 |
|||||
|
Adjustment for deferred tax valuation adjustment(2) |
— |
— |
— |
(2,421) |
— |
|||||
|
Adjusted net income |
$ 22,591 |
$ 20,917 |
$ 15,086 |
$ 74,439 |
$ 53,432 |
|||||
|
Adjusted Diluted Earnings per Share: |
||||||||||
|
Diluted earnings per share, as presented |
$ 1.33 |
$ 1.25 |
$ 1.00 |
$ 3.84 |
$ 3.62 |
|||||
|
Adjustments before taxes: |
||||||||||
|
Provision for non-PCD acquired loans |
— |
— |
— |
0.37 |
— |
|||||
|
Provision for acquired unfunded commitments |
— |
— |
— |
0.01 |
— |
|||||
|
Merger and acquisition costs |
0.02 |
0.03 |
0.55 |
0.08 |
||||||
|
Gain on sale of premises and equipment, net |
— |
(0.04) |
— |
(0.04) |
— |
|||||
|
Signature Bank bond recovery |
— |
— |
— |
— |
(0.06) |
|||||
|
Total adjustments before taxes |
— |
(0.02) |
0.03 |
0.89 |
0.02 |
|||||
|
Tax impact of above adjustments, as applicable(1) |
— |
— |
— |
(0.20) |
0.01 |
|||||
|
Adjustment for deferred tax valuation adjustment(2) |
— |
— |
— |
(0.14) |
— |
|||||
|
Adjusted diluted earnings per share |
$ 1.33 |
$ 1.23 |
$ 1.03 |
$ 4.39 |
$ 3.65 |
|||||
|
Adjusted Return on Average Assets: |
||||||||||
|
Return on average assets, as presented |
1.28 % |
1.21 % |
1.01 % |
0.94 % |
0.92 % |
|||||
|
Adjustments before taxes: |
||||||||||
|
Provision for non-PCD acquired loans |
— % |
— % |
— % |
0.09 % |
— % |
|||||
|
Provision for acquired unfunded commitments |
— % |
— % |
— % |
0.01 % |
— % |
|||||
|
Merger and acquisition costs |
— % |
0.02 % |
0.03 % |
0.13 % |
0.02 % |
|||||
|
Gain on sale of premises and equipment, net |
— % |
(0.04) % |
— % |
(0.01) % |
— % |
|||||
|
Signature Bank bond recovery |
— % |
— % |
— % |
— % |
(0.02) % |
|||||
|
Total adjustments before taxes |
— % |
(0.02) % |
0.03 % |
0.22 % |
— % |
|||||
|
Tax impact of above adjustments, as applicable(1) |
— % |
— % |
— % |
(0.05) % |
— % |
|||||
|
Adjustment for deferred tax valuation adjustment(2) |
— % |
— % |
— % |
(0.04) % |
— % |
|||||
|
Adjusted return on average assets |
1.28 % |
1.19 % |
1.04 % |
1.07 % |
0.92 % |
|||||
|
(1) |
Calculated using an estimated combined marginal income tax rate of 23% and 21% for periods ended in 2025 and 2024, respectively. |
|
(2) |
A one-time deferred tax valuation adjustment of $2.4 million resulted from a change in the apportionment of state income taxes due to the Northway merger. |
|
Adjusted Return on Average Equity: |
||||||||||
|
For the Three Months Ended |
For the Year Ended |
|||||||||
|
(In thousands, except number of shares, per share data and ratios) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Adjusted Return on Average Equity: |
||||||||||
|
Return on average equity, as presented |
13.01 % |
12.75 % |
10.99 % |
9.96 % |
10.36 % |
|||||
|
Adjustments before taxes: |
||||||||||
|
Provision for non-PCD acquired loans |
— % |
— % |
— % |
0.96 % |
— % |
|||||
|
Provision for acquired unfunded commitments |
— % |
— % |
— % |
0.04 % |
— % |
|||||
|
Merger and acquisition costs |
0.02 % |
0.19 % |
0.32 % |
1.42 % |
0.23 % |
|||||
|
Gain on sale of premises and equipment, net |
— % |
(0.41) % |
— % |
(0.10) % |
— % |
|||||
|
Signature Bank bond recovery |
— % |
— % |
— % |
— % |
(0.18) % |
|||||
|
Total adjustments before taxes |
0.02 % |
(0.22) % |
0.32 % |
2.32 % |
0.05 % |
|||||
|
Tax impact of above adjustments, as applicable(1) |
— % |
0.05 % |
(0.01) % |
(0.53) % |
0.04 % |
|||||
|
Adjustment for deferred tax valuation adjustment(2) |
— % |
— % |
— % |
(0.37) % |
— % |
|||||
|
Adjusted return on average equity |
13.03 % |
12.58 % |
11.30 % |
11.38 % |
10.45 % |
|||||
|
(1) |
Calculated using an estimated combined marginal income tax rate of 23% and 21% for periods ended in 2025 and 2024, respectively. |
|
(2) |
A one-time deferred tax valuation adjustment of $2.4 million resulted from a change in the apportionment of state income taxes due to the Northway merger. |
|
Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income: |
||||||||||
|
For the Three Months Ended |
For the Year Ended |
|||||||||
|
(In thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Net income, as presented |
$ 22,559 |
$ 21,194 |
$ 14,666 |
$ 65,160 |
$ 53,004 |
|||||
|
Adjustment for provision (credit) for credit losses |
2,969 |
2,972 |
809 |
22,290 |
(404) |
|||||
|
Adjustment for income tax expense |
5,664 |
5,304 |
3,736 |
13,495 |
12,456 |
|||||
|
Pre-tax, pre-provision income |
31,192 |
29,470 |
19,211 |
100,945 |
65,056 |
|||||
|
Adjustment for merger and acquisition costs |
41 |
315 |
432 |
9,286 |
1,159 |
|||||
|
Adjustment for gain on sale of premises and equipment, net |
— |
(675) |
— |
(675) |
— |
|||||
|
Adjusted pre-tax, pre-provision income |
$ 31,233 |
$ 29,110 |
$ 19,643 |
$ 109,556 |
$ 66,215 |
|||||
|
Efficiency Ratio: |
||||||||||
|
For the Three Months Ended |
For the Year Ended |
|||||||||
|
(Dollars in thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Non-interest expense, as presented |
$ 36,860 |
$ 35,927 |
$ 28,364 |
$ 154,834 |
$ 111,936 |
|||||
|
Adjustment for merger and acquisition costs |
(41) |
(315) |
(432) |
(9,286) |
(1,159) |
|||||
|
Adjustment for amortization of core deposit intangible assets |
(1,474) |
(1,473) |
(139) |
(5,893) |
(556) |
|||||
|
Adjusted non-interest expense |
$ 35,345 |
$ 34,139 |
$ 27,793 |
$ 139,655 |
$ 110,221 |
|||||
|
Net interest income, as presented |
$ 53,918 |
$ 51,272 |
$ 35,409 |
$ 203,257 |
$ 132,453 |
|||||
|
Adjustment for the effect of tax-exempt income(1) |
331 |
344 |
162 |
1,314 |
637 |
|||||
|
Adjusted net interest income |
54,249 |
51,616 |
35,571 |
204,571 |
133,090 |
|||||
|
Non-interest income, as presented |
14,134 |
14,125 |
12,166 |
52,522 |
44,539 |
|||||
|
Adjustment for gain on sale of premises and equipment, net |
— |
(675) |
— |
(675) |
— |
|||||
|
Adjusted non-interest income |
14,134 |
13,450 |
12,166 |
51,847 |
44,539 |
|||||
|
Adjusted net interest income plus adjusted non-interest income |
$ 68,383 |
$ 65,066 |
$ 47,737 |
$ 256,418 |
$ 177,629 |
|||||
|
GAAP efficiency ratio |
54.16 % |
54.94 % |
59.62 % |
60.53 % |
63.24 % |
|||||
|
Non-GAAP efficiency ratio |
51.69 % |
52.47 % |
58.22 % |
54.46 % |
62.05 % |
|||||
|
(1) |
Calculated using the federal corporate income tax rate of 21%. |
|
Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity: |
||||||||||
|
For the Three Months Ended |
For the Year Ended |
|||||||||
|
(Dollars in thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Return on Average Tangible Equity: |
||||||||||
|
Net income, as presented |
$ 22,559 |
$ 21,194 |
$ 14,666 |
$ 65,160 |
$ 53,004 |
|||||
|
Adjustment for amortization of core deposit intangible assets |
1,474 |
1,473 |
139 |
5,893 |
556 |
|||||
|
Tax impact of above adjustment(1) |
(339) |
(339) |
(29) |
(1,355) |
(117) |
|||||
|
Net income, adjusted for amortization of core deposit intangible assets |
$ 23,694 |
$ 22,328 |
$ 14,776 |
$ 69,698 |
$ 53,443 |
|||||
|
Average equity, as presented |
$ 687,936 |
$ 659,628 |
$ 530,759 |
$ 654,477 |
$ 511,813 |
|||||
|
Adjustment for average goodwill and core deposit intangible assets |
(194,800) |
(196,279) |
(95,179) |
(197,247) |
(95,389) |
|||||
|
Average tangible equity |
$ 493,136 |
$ 463,349 |
$ 435,580 |
$ 457,230 |
$ 416,424 |
|||||
|
Return on average equity |
13.01 % |
12.75 % |
10.99 % |
9.96 % |
10.36 % |
|||||
|
Return on average tangible equity |
19.06 % |
19.12 % |
13.50 % |
15.24 % |
12.83 % |
|||||
|
Adjusted Return on Average Tangible Equity: |
||||||||||
|
Adjusted net income (refer to the “Adjusted Net Income” non-GAAP reconciliation table) |
$ 22,591 |
$ 20,917 |
$ 15,086 |
$ 74,439 |
$ 53,432 |
|||||
|
Adjustment for amortization of core deposit intangible assets |
1,474 |
1,473 |
139 |
5,893 |
556 |
|||||
|
Tax impact of above adjustment(1) |
(339) |
(339) |
(29) |
(1,355) |
(117) |
|||||
|
Adjusted net income, adjusted for amortization of core deposit intangible assets |
$ 23,726 |
$ 22,051 |
$ 15,196 |
$ 78,977 |
$ 53,871 |
|||||
|
Adjusted return on average tangible equity |
19.09 % |
18.88 % |
13.88 % |
17.27 % |
12.94 % |
|||||
|
(1) |
Calculated using an estimated combined marginal income tax rate of 23% and 21% for periods ended in 2025 and 2024, respectively. |
|
Core Net Interest Margin (fully-taxable equivalent): |
||||||||||
|
For the Three Months Ended |
For the Year Ended |
|||||||||
|
(In thousands) |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||
|
Net interest margin, tax equivalent, as presented |
3.29 % |
3.16 % |
2.57 % |
3.17 % |
2.46 % |
|||||
|
Net accretion income on loans from purchase accounting(1) |
(0.31) % |
(0.27) % |
— |
(0.30) % |
— |
|||||
|
Net accretion income on investments from purchase accounting(2) |
(0.07) % |
(0.08) % |
— |
(0.07) % |
— |
|||||
|
Net amortization on time deposits and borrowings from purchase accounting(3) |
0.01 % |
0.01 % |
— |
0.01 % |
— |
|||||
|
Core net interest margin (fully-taxable equivalent) |
2.92 % |
2.82 % |
2.57 % |
2.81 % |
2.46 % |
|||||
|
(1) |
Recognized $4.6 million and $17.0 million of net accretion income on loans from purchase accounting for the three months and year ended December 31, 2025, respectively, and $3.8 million for the three months ended September 30, 2025. |
|
(2) |
Recognized $857,000 and $3.5 million of net accretion income on investments from purchase accounting for the three months and year ended December 31, 2025, respectively, and $937,000 for the three months ended September 30, 2025. |
|
(3) |
Recognized $131,000 and $525,000 of amortization expense on time deposits and borrowings from purchase accounting for the three months and year ended December 31, 2025, respectively, and $132,000 for the three months ended September 30, 2025. |
|
Tangible Book Value Per Share and Tangible Common Equity Ratio: |
||||||
|
December 31, |
September 30, |
December 31, |
||||
|
(In thousands, except number of shares and per share data) |
||||||
|
Tangible Book Value Per Share: |
||||||
|
Shareholders’ equity, as presented |
$ 696,558 |
$ 676,444 |
$ 531,231 |
|||
|
Adjustment for goodwill and core deposit intangible assets |
(194,085) |
(195,558) |
(95,112) |
|||
|
Tangible shareholders’ equity |
$ 502,473 |
$ 480,886 |
$ 436,119 |
|||
|
Shares outstanding at period end |
16,924,310 |
16,922,225 |
14,579,339 |
|||
|
Book value per share |
$ 41.16 |
$ 39.97 |
$ 36.44 |
|||
|
Tangible book value per share |
29.69 |
28.42 |
29.91 |
|||
|
Tangible Common Equity Ratio: |
||||||
|
Total assets |
$ 6,974,584 |
$ 6,981,522 |
$ 5,805,138 |
|||
|
Adjustment for goodwill and core deposit intangible assets |
(194,085) |
(195,558) |
(95,112) |
|||
|
Tangible assets |
$ 6,780,499 |
$ 6,785,964 |
$ 5,710,026 |
|||
|
Common equity ratio |
9.99 % |
9.69 % |
9.15 % |
|||
|
Tangible common equity ratio |
7.41 % |
7.09 % |
7.64 % |
|||
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SOURCE Camden National Corporation
