Camden National Corporation Reports 22% Increase in Net Income for 2024

Camden National Corporation (CAC), a Maine-based bank holding company, reported net income of $53.0 million for the year ended December 31, 2024, a 22% increase compared to $43.4 million in 2023. Diluted earnings per share rose to $3.62, also a 22% increase year-over-year. Net interest income, the company's primary revenue source, reached $133.1 million on a fully-taxable equivalent basis in 2024, a slight decrease of $75,000 from 2023. This decrease was attributed to a 25% increase in interest expense, partially offset by a 10% increase in interest income. The net interest margin remained consistent at 2.46% for both years.

Significant changes in 2024 included a $10.3 million net loss on the sale of securities in 2023, which was absent in 2024, and a $910,000 recovery on a previously written-off Signature Bank bond. Excluding these items and merger-related costs of $1.2 million, core net income was $53.4 million, a 1% increase over 2023. Non-interest income increased by 44% to $44.5 million, driven by growth in assets under management and assets under administration. Non-interest expense increased by 4% to $111.9 million, primarily due to higher performance-based incentives. The company's efficiency ratio (non-GAAP) improved to 62.36% from 61.52% in 2023.

A key strategic development was the acquisition of Northway Financial, Inc. and its subsidiary, Northway Bank, completed on January 2, 2025. This acquisition added $971.9 million in deposits and $1.2 billion in assets, expanding the company's presence in New Hampshire with 17 additional branches. The company's total assets reached approximately $7.0 billion following the acquisition. The company also noted that the financial services industry continues to experience consolidation, presenting potential opportunities for future growth through mergers and acquisitions.

Operational developments included a five-year compounded annual asset growth rate of 6%, reaching $5.8 billion in total assets at December 31, 2024. The company employed 586 people as of December 31, 2024. Key operational metrics such as non-performing assets (0.11% of total assets) and past due loans (0.05% of total loans) remained strong at the end of 2024. The company also highlighted its commitment to community involvement through financing, donations, and employee volunteerism.

The company's 10-K filing included several forward-looking statements, acknowledging risks related to economic conditions, competition, interest rate fluctuations, regulatory changes, and cybersecurity. The company stated that it enters 2025 with strong financial momentum and a balance sheet well-positioned for the current interest rate environment, but cautioned that actual results may differ materially from expectations due to various uncertainties.