Camden National Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $22.8 million and diluted EPS of $1.34 for the quarter ended September 30, 2026, representing an 8% and 7% increase, respectively, compared to the same period in 2025.
• Net income for the nine months ended September 30, 2026, reached a record $67.7 million, a 59% increase from $42.6 million in the prior year period; diluted EPS was $3.98, up from $2.51.
• Return on average assets (ROAA) was 1.31% for the quarter and 1.31% year-to-date; return on average equity (ROAE) was 12.36% for the quarter and 12.62% year-to-date.
• Non-GAAP return on average tangible equity was 17.47% for the quarter and 18.03% year-to-date.
• Net interest income totaled $55.4 million for the quarter, a 5% increase from the prior quarter and 8% higher than the prior year period.
• Net interest margin (NIM) expanded 15 basis points sequentially to 3.41% and 25 basis points year-over-year to 3.41%.
• Provision for credit losses was $1.9 million for the quarter, compared to $710,000 in the prior quarter and $2.97 million in the prior year period; year-to-date provision was $3.2 million versus $19.3 million in 2025.
• Non-interest income was $13.2 million for the quarter, an 8% decrease from the prior quarter, driven by lower mortgage banking and bank-owned life insurance income.
• Non-interest expense was $37.5 million for the quarter, an increase of less than 1% from the prior quarter.
• GAAP efficiency ratio was 54.60% for the quarter, improving from 55.42% in the prior quarter; non-GAAP efficiency ratio was 52.44%.
• Total assets were $7.1 billion at September 30, 2026, up from $7.0 billion at June 30, 2026.
• Total loans were $5.0 billion, essentially flat from the prior quarter.
• Total deposits were $5.8 billion, a 5% increase from the prior quarter; core deposits (non-GAAP) grew 7% to $5.2 billion.
• Borrowings decreased to $374.4 million from $571.1 million at June 30, 2026, a 35% reduction.
• Allowance for credit losses on loans was $46.2 million, or 0.92% of total loans, up from 0.91% at June 30, 2026.
• Annualized net charge-offs were 0.07% of average loans for the quarter.
• Book value per share was $42.65, up 7% from September 30, 2025; tangible book value per share (non-GAAP) was $31.40, up 10%.

Guidance and Future Outlook:

• Management expressed confidence in being well-positioned to deliver sustained earnings growth and long-term shareholder value, citing record earnings through the first nine months of the year and a stronger balance sheet.
• The company noted continued momentum across the franchise with year-over-year earnings growth and strong credit performance.

Business Segments and Product Lines:

• Home equity loans grew 7% and residential mortgage loans grew 1% from the prior quarter.
• Commercial real estate loans decreased 2% and commercial loans decreased 3% from the prior quarter, primarily due to large loan prepayments.
• Assets under administration in wealth and brokerage businesses increased 1% to $2.6 billion during the quarter.
• Debit card income increased 3% sequentially and 5% year-over-year.
• Income from fiduciary services increased 10% year-over-year to $2.1 million for the quarter.
• Brokerage and insurance commissions increased 6% year-over-year.

Market and Competitive Landscape:

• Camden National is Northern New England's largest publicly traded bank holding company with 72 banking centers in Maine and New Hampshire.
• Strong core deposit growth and customer acquisition enabled the optimization of higher-cost deposits and borrowings.
• The loan-to-deposit ratio improved to 86% from 90% at June 30, 2026.

Risks and Challenges:

• Unrealized losses on the available-for-sale investment portfolio increased by $32.6 million to $77.5 million due to the interest rate environment.
• Accumulated other comprehensive loss increased by $25.1 million net-of-tax, contributing to a decrease in the tangible common equity ratio to 7.73% from 7.91% at June 30, 2026.
• The company faces forward-looking risks including economic weakness, changes in trade and monetary policies, increased competitive pressures, inflation, commercial real estate vacancies, and cybersecurity risks.

Management Commentary and Tone:

• Simon Griffiths, President and CEO, stated that strong deposit growth and customer acquisition improved the funding mix and expanded net interest margin.
• Management highlighted disciplined expense management while investing in lending teams and future growth.
• The tone was confident, emphasizing record earnings and a stronger balance sheet.

Other Key Points:

• The company announced a cash dividend of $0.42 per share, payable on October 30, 2026, to shareholders of record on October 15, 2026.
• For the nine months ended September 30, 2026, the company repurchased 85,131 shares at a weighted average price of $46.55 per share; no shares were repurchased in the third quarter.
• Capital ratios remained well in excess of regulatory requirements, including a Common Equity Tier 1 ratio of 12.53% and a Tier 1 leverage ratio of 9.92%.
• Adjusted net income (non-GAAP) for the nine months ended September 30, 2025, increased 31% compared to the prior year period when excluding acquisition-related costs and other non-recurring items.
• Net fair value mark accretion income increased $224,000 to $4.2 million for the quarter, contributing 31 basis points to NIM.