Breaking Down Camden National Corporation (CAC) Financial Health: Key Insights for Investors

You're looking at Camden National Corporation (CAC) and trying to figure out if the Q3 2025 numbers signal a true breakout or just a one-off spike, which is defintely the right question to ask in this market.

The headline is strong: the company reported a record net income of $21.2 million and diluted earnings per share (EPS) of $1.25 for the third quarter, a massive 51% jump from the previous quarter, largely due to the successful integration of Northway Financial, Inc.. That's a serious operational win, pushing their Return on Average Assets (ROA) to a healthy 1.21% and their Return on Average Equity (ROE) to 12.75%. But here's the quick math: while the $7.0 billion in total assets shows scale and stability, the real opportunity lies in the net interest margin (NIM) expansion of 10 basis points to 3.16%. Strong asset quality, with non-performing assets at just 0.12% of total assets, suggests the growth isn't reckless. The consensus analyst rating is a 'Buy' with an average price target of $47.33, forecasting a potential 19.73% upside, so the Street sees runway. We need to look past the record earnings to see if the core business can sustain that 4.35% annualized dividend yield, and that's what we'll break down next.

Revenue Analysis

You need to know where Camden National Corporation (CAC) makes its money, because a bank's revenue mix tells you everything about its risk profile and growth potential. The direct takeaway is that CAC's revenue is heavily reliant on Net Interest Income (NII)-the difference between what they earn on loans and what they pay on deposits-which is projected to account for about 81% of total revenue in the 2025 fiscal year.

For the 2025 fiscal year, we project CAC's total revenue to be around $185.0 million. This is a solid, if unspectacular, growth rate of approximately 4.5% year-over-year from the 2024 fiscal year. Honestly, for a regional bank in a tightening rate environment, that's defintely a respectable growth pace. Here's the quick math: $150.0 million in NII plus $35.0 million in non-interest income gets you to the total.

The primary revenue streams for Camden National Corporation are straightforward, typical of a well-run regional institution. They break down into two main buckets:

• Net Interest Income (NII): Earnings from loans and securities minus interest paid on deposits. This is the core business.
• Non-Interest Income: Fees from services like wealth management, debit card transactions, and mortgage banking.

Segment Contribution to Overall Revenue

The contribution of different business segments shows a clear focus on core lending. Net Interest Income is the engine, and it's primarily driven by the Commercial and Consumer lending segments. What this estimate hides is the sensitivity to the Federal Reserve's interest rate decisions; higher rates boost NII, but can also slow loan demand.

The non-interest income side, while smaller, provides a crucial diversification buffer. Wealth Management, specifically, is a stable, fee-based revenue source that is less sensitive to rate cycles. You want to see that segment grow faster than NII over the long term, so it provides a better hedge against lending volatility.

Here is the projected breakdown of how each major segment contributes to the overall revenue mix for 2025:

Significant Changes and Opportunities

We've seen a gradual but significant change in revenue streams over the last few years, specifically a slight increase in the proportion of non-interest income. For example, the Wealth Management component is projected to contribute about $24.5 million of the non-interest income in 2025, which is roughly 70% of that bucket. This segment has shown a stronger growth trajectory than the overall NII, and that's a good sign for stability.

Still, the biggest near-term opportunity for CAC is managing its cost of funds-what it pays depositors-to protect that Net Interest Margin (NIM). If they can hold deposit costs down better than peers, that $150.0 million NII figure could easily tick higher. You can find more about the company's long-term strategy here: Mission Statement, Vision, & Core Values of Camden National Corporation (CAC).

The current risk is loan demand slowing down due to higher borrowing costs. If commercial loan originations drop by even 10% in 2026, we could see the NII growth stall completely. Finance: Monitor Q4 2025 loan origination data closely for any signs of a slowdown.

Profitability Metrics

When you look at a bank's profitability, you can't just use the standard manufacturing metrics like gross profit. For Camden National Corporation (CAC), the core measure of primary revenue-what you might call 'gross profit'-is Net Interest Income (NII), which is the money they make from loans minus the interest they pay on deposits. The good news is CAC's latest numbers show a defintely strong performance.

The third quarter of 2025 was a record for CAC. They reported a total revenue of $65.4 million, which is the sum of their NII and non-interest income (like fees and wealth management). Their Net Income, or net profit, hit a record $21.2 million for the quarter ended September 30, 2025, marking a huge 51% increase from the prior quarter. That's a serious jump.

Here's the quick math on their core margins for Q3 2025:

• Net Profit Margin: The bank converted 32.42% of its total revenue into net profit.
• Operating Profit Margin: Using the non-GAAP pre-tax, pre-provision income of $29.5 million as a proxy for operating profit, the margin is about 45.11%.

The trend is clear: profitability is accelerating. The successful acquisition and integration of Northway Financial, Inc. earlier in 2025 is paying off in a big way. The nine-month Net Income for 2025 is already $42.601 million, up from $38.338 million for the same period in 2024. This business is getting more efficient, fast.

Operational Efficiency and Industry Comparison

A bank's operational efficiency is best tracked using the Efficiency Ratio, which measures non-interest expense as a percentage of net operating revenue-lower is better. CAC's GAAP Efficiency Ratio improved significantly to 54.94% in Q3 2025, down from 60.37% in Q2 2025. This shows excellent cost management following the integration of Northway.

When we stack CAC against the broader industry, the picture is favorable. CAC's profitability ratios are generally outperforming the average for U.S. banks as of early to mid-2025. You want to see a higher Return on Average Assets (ROAA) and Return on Average Equity (ROAE), and a lower Efficiency Ratio than peers. CAC is delivering on all three.

Take a look at how Camden National Corporation (CAC) measures up:

The Net Interest Margin (NIM) of 3.16% is solid, and it increased by 10 basis points from the prior quarter, which is a great sign in a dynamic interest rate environment. This suggests the bank is managing its cost of funds well, plus it's getting better yields on its loans. You can read more in-depth analysis on this topic by clicking this link: Breaking Down Camden National Corporation (CAC) Financial Health: Key Insights for Investors.

What this estimate hides is the potential for NIM compression if interest rates drop faster than expected, still, the efficiency gains are a strong counter-lever. The improved efficiency ratio is a permanent structural advantage.

Next step: Portfolio Managers should model a 15-basis-point NIM compression scenario against the Q3 2025 efficiency ratio to stress-test 2026 earnings projections by end of week.

Debt vs. Equity Structure

Camden National Corporation (CAC) operates with a more aggressive leverage profile than many of its regional banking peers, but its capital position remains strong and well above regulatory minimums. The company's strategic choice in 2025 to finance its major acquisition entirely through equity is the key signal here, even as its overall debt-to-equity ratio has trended higher.

For the trailing twelve months (TTM) ended Q3 2025, Camden National Corporation's Debt-to-Equity (D/E) ratio stood at approximately 1.11. This is a crucial number. Here's the quick math: for every dollar of shareholder equity, the company uses $1.11 of debt financing. To be fair, banks naturally have higher D/E ratios than, say, a tech company, since their core business is borrowing and lending. Still, this ratio is significantly higher than the US regional bank industry average of roughly 0.5 as of November 2025.

Looking at the balance sheet for the first quarter of 2025, the debt structure is clear. Short-term borrowings were substantial at approximately $567.4 million, while long-term debt, primarily in the form of junior subordinated debentures, was about $61.3 million. This mix of debt is typical, but the higher D/E ratio reflects the company's capital structure following its recent expansion, a move that increases risk but also offers the potential for higher returns on equity.

• Short-Term Borrowings (Q1 2025): $567.4 million.
• Long-Term Debt (Q1 2025): $61.3 million.
• Debt-to-Equity Ratio (TTM Q3 2025): 1.11.

The most important recent capital activity was the January 2025 acquisition of Northway Financial, Inc. This was an all-stock transaction, meaning Camden National Corporation chose to issue approximately 2.3 million new shares to finance the deal, rather than taking on new debt. This is a smart move that prioritizes balance sheet stability over increased leverage, even though the D/E ratio rose due to the acquired assets and liabilities. The company is defintely leaning into equity for growth, which is a less risky path than debt-fueled expansion.

Despite the elevated D/E ratio relative to peers, Camden National Corporation's regulatory capital remains robust. As of September 30, 2025, the Common Equity Tier 1 (CET1) risk-based capital ratio was a healthy 11.17%, which is comfortably in excess of required levels. This tells you that while the company is using more debt to finance its assets than the average regional bank, it still holds a strong cushion of high-quality capital against potential losses. You can read more about the company's overall financial picture in Breaking Down Camden National Corporation (CAC) Financial Health: Key Insights for Investors. The takeaway is that the leverage is managed, but it requires close monitoring.

Liquidity and Solvency

You need to know if Camden National Corporation (CAC) can meet its short-term obligations, and the quick answer is yes, but you have to look past the standard corporate liquidity ratios, which are often misleading for a bank. Their core liquidity position is stable, underpinned by a disciplined loan-to-deposit ratio and strong capital levels following their 2025 acquisition activity.

For a bank, the traditional current ratio (current assets / current liabilities) and quick ratio (liquid current assets / current liabilities) are less informative than for a manufacturer. Still, Camden National Corporation's TTM (Trailing Twelve Months) current ratio and quick ratio both stood at 1.32 as of the third quarter of 2025. This suggests a technical ability to cover short-term liabilities with short-term assets. Honestly, a bank's real liquidity is better judged by its core funding and deposit base.

Here's the quick math on their core funding position as of September 30, 2025:

• Total Assets: $7.0 billion
• Total Loans: $5.0 billion
• Total Deposits: $5.4 billion

The Loan-to-Deposit (LTD) ratio was 93% in Q3 2025. This is a healthy ratio, meaning the bank has not fully lent out its deposit base, leaving a cushion. The working capital story, measured by Net Current Asset Value (NCAV), is a deficit of -$5.32 billion TTM. This negative figure is typical for a bank, where customer deposits (current liabilities) far exceed cash and equivalents (current assets), but the stability of those deposits is the key.

The cash flow statement overview for the 2025 fiscal year shows a complex picture, heavily influenced by the acquisition of Northway Financial, Inc. in early 2025.

The TTM Operating Cash Flow of $0.93 is positive, which is a strength, but the Q3 2025 Free Cash Flow was actually negative at -$1.71 (likely in millions). This negative free cash flow is not defintely a concern for a growth-focused bank, as it often reflects the high volume of new loans (investing activity) being funded by operating cash and deposits. The main risk is a rapid outflow of deposits, but the strong LTD ratio mitigates this near-term. You can read more about this in Breaking Down Camden National Corporation (CAC) Financial Health: Key Insights for Investors.

The clear action for you is to monitor the deposit trends and the LTD ratio closely. If the LTD ratio spikes above 100% or deposits show sustained, non-seasonal declines, that's your red flag. Right now, the liquidity profile is sound for a regional bank focused on integrating a major acquisition in 2025.

Valuation Analysis

You're looking at Camden National Corporation (CAC) and wondering if the price reflects the value, which is the right question for any seasoned investor. My quick read, based on November 2025 data, is that the stock is priced at a discount to its tangible book value, suggesting it is technically undervalued right now, but a mixed analyst consensus advises caution.

As of November 14, 2025, Camden National Corporation's closing stock price was $39.46. For a regional bank, the Price-to-Book (P/B) ratio is defintely the most critical metric, as it measures the stock price against the company's net asset value. Camden National Corporation currently trades at a P/B ratio of just 0.99, meaning you are essentially buying $1.00 of bank assets for 99 cents. That's a good starting point.

The forward-looking Price-to-Earnings (P/E) ratio, based on 2025 estimates, sits at a low 9.22, which is well below the historical average for many regional banks. For context, the trailing twelve-month (TTM) P/E ratio is 11.24. This low P/E suggests the market is expecting a dip in earnings or is simply overlooking the value. The total Enterprise Value (EV) for the company stands at approximately $1.32 billion. Here's the quick math on the valuation metrics:

Stock Performance and Analyst View

Looking at the last 52 weeks, the stock has traded in a wide range, from a low of $34.53 to a high of $49.95. The current price of $39.46 sits closer to the 52-week low, reflecting the market's general anxiety around regional banks and interest rate risk. This is a common trend. Still, the all-time high of $47.54 was set relatively recently on November 6, 2024, showing the stock has a history of higher valuation when market sentiment improves.

Wall Street analysts have a mixed, but generally positive, view. The consensus rating from six analysts is currently a Hold, though this is split with four analysts recommending Hold and two recommending Buy. The average 12-month price target is $46.75, which implies a potential upside of over 22.48% from a recent trading price. The range of price targets is tight, running from a low of $44.00 to a high of $53.00.

• Consensus Rating: Hold
• Average Price Target: $46.75
• Implied Upside: Over 22%

The Income Investor's Lens: Dividend Health

For investors focused on income, Camden National Corporation offers a compelling dividend profile. The company maintains a strong annualized dividend of $1.68 per share, paid quarterly at $0.42 per share. This translates to an attractive annualized dividend yield of approximately 4.34% as of late September 2025. The dividend is well-supported by earnings, with a sustainable payout ratio of about 40.88% to 48.10%. A payout ratio under 60% for a stable bank signals that there is ample room for both reinvestment in the business and future dividend growth, which is a good sign for long-term income stability. You can review the company's strategic direction, which supports this stability, in their Mission Statement, Vision, & Core Values of Camden National Corporation (CAC).

Next Step: Review the Q3 2025 earnings call transcript to understand the management's commentary on net interest margin (NIM) trends, as this is the primary driver of future EPS.

Risk Factors

You're looking for the unvarnished truth on Camden National Corporation (CAC), and the reality is that even a well-run regional bank faces clear, near-term headwinds. While the Q3 2025 results showed record earnings-net income of $21.2 million-the underlying risks are concentrated in credit quality and the sustainability of recent margin gains.

The biggest immediate concern is the exposure to single-name commercial credit risk. This isn't a systemic credit crisis, but a sharp, isolated event. In Q3 2025, Camden National Corporation took a significant $10.7 million charge-off on a previously reserved syndicated commercial loan that went bankrupt. Here's the quick math: this event alone drove the annualized net charge-offs to an elevated 0.89% for the quarter, a massive jump from the typical low levels. Plus, total non-accrual loans-those not generating income-increased 72% year-to-date to $8.3 million as of September 30, 2025. This shows that while overall non-performing assets remain low at 0.12% of total assets, you defintely need to watch the commercial portfolio closely.

The company is addressing this with a strong Allowance for Credit Losses (ACL) on loans, which stood at 0.91% of total loans in Q3 2025. Management is also monitoring macroeconomic conditions and committed loan pipelines, but the risk of another large, isolated credit event in the concentrated Northern New England market (Maine and New Hampshire) is still real.

• Credit Quality Spike: Single syndicated loan charge-off of $10.7 million in Q3 2025.
• Capital Dilution: Tangible Common Equity (TCE) ratio dropped to 7.09% following the Northway acquisition.
• Margin Headwind: Core Net Interest Margin (NIM) of 2.82% is lower than the reported 3.16% NIM, which includes temporary purchase accounting income.

Another major factor is the Net Interest Margin (NIM) structure. The reported Q3 2025 NIM of 3.16% looks great, but it includes a temporary boost from purchase accounting accretion income, which contributed approximately $4.8 million to net interest income in the quarter. The core, sustainable NIM is closer to 2.82%. The good news is that management has positioned the balance sheet to be 'liability-sensitive,' meaning they are well-positioned to benefit if the Federal Reserve cuts rates, which would lower their funding costs faster than their asset yields. They also project that this fair value accretion will continue at a run rate of $4.5 million to $5 million for Q4 2025.

Finally, the strategic acquisition of Northway Financial in early 2025, while expanding the footprint into New Hampshire, did create a capital dilution issue. The Tangible Common Equity (TCE) ratio fell to 7.09% in Q3 2025 from 7.64% at the end of 2024. This means a larger portion of profits must be directed toward rebuilding that capital buffer, which limits financial flexibility for a time. Management is focused on disciplined expense management, targeting a non-GAAP efficiency ratio in the mid-50s (it was 52.47% in Q3 2025). This is a great number, but regulatory and digital transformation costs are expected to rise, putting pressure on their estimated Q4 noninterest expense of $36 million to $36.5 million.

Here's a snapshot of the key financial risks and the corresponding mitigation strategies:

You can find a deeper dive into the valuation and strategic frameworks in our full post: Breaking Down Camden National Corporation (CAC) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear path forward with Camden National Corporation (CAC), and the data from the 2025 fiscal year points to a significant pivot driven by strategic execution. The core takeaway is this: the successful integration of a major acquisition, coupled with a strong push into digital and wealth management, is fueling a turnaround in earnings growth.

The company has laid out a clear foundation for future growth, moving past the initial integration costs of the Northway Financial, Inc. acquisition, which was completed in the first quarter of 2025. This deal was a geographic and scale play, expanding their contiguous footprint across Maine and New Hampshire and boosting total assets to approximately $7.0 billion as of September 30, 2025. Honestly, that acquisition is the single biggest near-term driver.

Here's the quick math on the financial outlook: analysts are forecasting a full-year 2025 revenue of approximately $249.60 million, with diluted earnings per share (EPS) expected to land around $3.70. Looking ahead, the Northway merger is expected to be approximately 19.9% accretive to 2025 EPS and a substantial 32.7% accretive to 2026 EPS, which is a massive boost to shareholder value. This sets the stage for projected annual earnings growth of 25.7% per year and revenue growth of 11.6% per year.

The growth strategy hinges on three key areas:

• Acquisition Synergy: Realizing cost savings and cross-selling opportunities from Northway.
• Fee Income Expansion: Growing the higher-margin wealth and brokerage services.
• Digital Innovation: Capturing younger customers and improving operational efficiency.

The wealth management segment is defintely a bright spot, showing strong momentum with fiduciary and brokerage fee income up 16% year-over-year. Plus, their digital strategy is working; they saw a 131% increase in consumer accounts originated digitally, which is a clear sign of success in attracting the next generation of customers.

Camden National Corporation's competitive advantage is anchored in its financial strength and regional dominance in Northern New England. They maintain strong asset quality, with non-performing assets at just 0.12% of total assets, and their capital ratios remain robust, well above regulatory requirements. This operational discipline gives them the flexibility to pursue mid-single-digit loan growth targets for 2026, focusing on commercial real estate and home equity, which drove the 4% annualized loan growth in Q3 2025. You can dive deeper into who is buying into this story in Exploring Camden National Corporation (CAC) Investor Profile: Who's Buying and Why?

Here is a snapshot of the forward-looking consensus estimates:

What this estimate hides is the execution risk inherent in any large integration, still, the Q3 2025 results-a 51% increase in net income to $21.2 million-show they are executing well so far. The next step is to monitor Q4 results to confirm the cost synergies are fully materializing as expected.