Camden National Q4 2025 Camden National Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Camden National Earnings Call
Operator: Good day and welcome to Camden National Corporation's Q4 2025 earnings conference call. My name is Elliott, and I'll be your operator for today's call. All participants will be in listen-only mode during today's presentation. Following the presentation, we'll conduct a question-and-answer session. If you require operator assistance at any time during the call, please press star, then zero. I'll turn the call over to Renee Smyth, Executive Vice President, Chief Experience and Marketing Officer.
Operator: Good day and welcome to Camden National Corporation's Q4 2025 earnings conference call. My name is Elliott, and I'll be your operator for today's call. All participants will be in listen-only mode during today's presentation. Following the presentation, we'll conduct a question-and-answer session. If you require operator assistance at any time during the call, please press star, then zero. I'll turn the call over to Renee Smyth, Executive Vice President, Chief Experience and Marketing Officer.
Speaker #1: Good day, and welcome to Camden National Corporation. Fourth quarter 2020 earnings call conference. My name is Elliot, and I'll be your operator for today's call.
Speaker #1: All participants will be in listen only mode during today's presentation . Following the presentation , we'll question and answer session . If you require conduct a operator assistance at any time during the call , please press star .
Speaker #1: Thank you. Then, I'll turn the call over to Rene Smyth, Executive Vice President, Chief Experience and Marketing Officer.
Renée Smyth: Thank you. Good afternoon and welcome to Camden National Corporation's conference call for the Q4 2025. Joining us this afternoon are members of Camden National Corporation's executive team, Simon Griffiths, President and Chief Executive Officer, and Mike Archer, Executive Vice President and Chief Financial Officer. Please note that today's presentation contains forward-looking statements, and actual results could differ materially from what is discussed on today's call. Cautionary language regarding these forward-looking statements is included on our Q4 2025 earnings release issued this morning and in other reports we file with the SEC. All of these materials and public filings are available on our investor relations website at camdennational.bank. Camden National Corporation trades on NASDAQ under the symbol CAC. In addition, today's presentation includes a discussion of non-GAAP financial measures.
Renée Smyth: Thank you. Good afternoon and welcome to Camden National Corporation's conference call for the Q4 2025. Joining us this afternoon are members of Camden National Corporation's executive team, Simon Griffiths, President and Chief Executive Officer, and Mike Archer, Executive Vice President and Chief Financial Officer. Please note that today's presentation contains forward-looking statements, and actual results could differ materially from what is discussed on today's call. Cautionary language regarding these forward-looking statements is included on our Q4 2025 earnings release issued this morning and in other reports we file with the SEC. All of these materials and public filings are available on our investor relations website at camdennational.bank. Camden National Corporation trades on NASDAQ under the symbol CAC. In addition, today's presentation includes a discussion of non-GAAP financial measures.
Speaker #2: Thank you . Good afternoon , and welcome to Camden Corporation's conference call for the fourth quarter of 2025 . Joining us this afternoon are members of Corporation's Camden National executive team , Simon Griffiths President and chief Executive Officer .
Speaker #2: And Mike Archer, executive vice president and chief financial officer. Note that today's presentation contains forward-looking statements and actual results could differ materially from those discussed on today's call. Cautionary language regarding these forward-looking statements is provided.
Speaker #2: Statements are included in the fourth quarter release issued with this 2020 earnings, and in other reports we filed with the SEC. All of these materials and public filings are available on our Investor Relations website at Camden National.
Speaker #2: Camden National Corporation trades on Nasdaq under the symbol 'C.' In addition, today's presentation includes a discussion of non-GAAP financial measures.
Renée Smyth: Any references to non-GAAP financial measures are intended to provide meaningful insights and are reconciled with GAAP in our earnings release, which is also available on our investor relations website. I am pleased to introduce our host, President and Chief Executive Officer, Simon Griffiths.
Any references to non-GAAP financial measures are intended to provide meaningful insights and are reconciled with GAAP in our earnings release, which is also available on our investor relations website. I am pleased to introduce our host, President and Chief Executive Officer, Simon Griffiths.
Speaker #2: Any references to non-GAAP financial measures are intended to provide meaningful insights and are reconciled with GAAP in our earnings release, which is also available on our Investor Relations website.
Simon Griffiths: Good afternoon, everyone, and thank you, Renee. Today marks another meaningful milestone in Camden National's continued momentum and strong financial performance. Earlier this morning, we reported Q4 earnings of $22.6 million, representing yet another record-setting achievement for the organization. This strong finish to the year reflects a 6% increase in earnings from the prior quarter, underscoring the consistent execution and discipline across our teams. We are pleased that several key financial performance indicators continue to trend positively this quarter, including 13 basis points of net interest margin expansion over the prior quarter to 3.29%, a non-GAAP efficiency ratio below 52%, and a return on average assets of 1.3%. These results underscore the durability of our operating model, validate management's effective assimilation of the Northway franchise, and reaffirm our focus on consistent, high-quality performance supported by sustainable growth and disciplined execution.
Simon Griffiths: Good afternoon, everyone, and thank you, Renee. Today marks another meaningful milestone in Camden National's continued momentum and strong financial performance. Earlier this morning, we reported Q4 earnings of $22.6 million, representing yet another record-setting achievement for the organization. This strong finish to the year reflects a 6% increase in earnings from the prior quarter, underscoring the consistent execution and discipline across our teams. We are pleased that several key financial performance indicators continue to trend positively this quarter, including 13 basis points of net interest margin expansion over the prior quarter to 3.29%, a non-GAAP efficiency ratio below 52%, and a return on average assets of 1.3%. These results underscore the durability of our operating model, validate management's effective assimilation of the Northway franchise, and reaffirm our focus on consistent, high-quality performance supported by sustainable growth and disciplined execution.
Speaker #2: Pleased to introduce our host, President and Chief Executive Officer, Simon Griffiths.
Speaker #2: .
Speaker #3: , everyone , Good afternoon and thank you , Renee . Today marks meaningful another milestone in Camden National's continued momentum and strong financial performance .
Speaker #3: Earlier this morning , we reported fourth quarter earnings of $22.6 million , representing yet another record setting achievement for the organization strong . finish to This the year reflects a 6% increase in earnings from the prior quarter , underscoring the consistent execution and across our teams several key that pleased indicators .
Speaker #3: Financial discipline and our performance continue to trend positively this quarter, including 13 basis points of net interest margin expansion over the prior quarter to 3.29%, a non-GAAP efficiency ratio below 52%, and a return on average assets of 1.3%.
Speaker #3: These results underscore the durability of our operating model , validate management's effective assimilation of the Northway franchise , and reaffirm our focus on consistent , high quality performance supported by sustainable growth and disciplined execution .
Simon Griffiths: With the benefits from Northway Financial acquisition now fully delivering, we are pleased to report that we are ahead of our strategic and financial objectives in several areas. As we move into 2026, we are accelerating organic growth through a broader commercial footprint in our southern markets, continued expansion of retail products and digital capabilities across the franchise, and deeper leverage of the strength of our wealth and brokerage franchise. We had great success in 2025 across our wealth and brokerage divisions, highlighted by 15% organic growth of assets under administration to $2.4 billion at 31 December 2025. Looking ahead, we see significant opportunity to deepen existing customer relationships through advice-led interactions and the continued expansion of treasury management solutions across our footprint. Our balance sheet remains a source of strength for our company. As of 31 December 2025, our regulatory capital levels were above our internal target levels.
With the benefits from Northway Financial acquisition now fully delivering, we are pleased to report that we are ahead of our strategic and financial objectives in several areas. As we move into 2026, we are accelerating organic growth through a broader commercial footprint in our southern markets, continued expansion of retail products and digital capabilities across the franchise, and deeper leverage of the strength of our wealth and brokerage franchise. We had great success in 2025 across our wealth and brokerage divisions, highlighted by 15% organic growth of assets under administration to $2.4 billion at 31 December 2025. Looking ahead, we see significant opportunity to deepen existing customer relationships through advice-led interactions and the continued expansion of treasury management solutions across our footprint. Our balance sheet remains a source of strength for our company. As of 31 December 2025, our regulatory capital levels were above our internal target levels.
Speaker #3: With the benefits from the Northway Financial acquisition now delivering fully, we are pleased to report that we are ahead of our strategic financial objectives in several areas as we move into 2026.
Speaker #3: We are accelerating organic growth through a broader commercial footprint in our southern markets. Continued expansion of retail products and digital across the franchise capabilities, and deeper leverage of the strength of our wealth and brokerage franchise.
Speaker #3: We had great success in 2025 across our wealth and brokerage divisions, highlighted by 15% organic growth of assets under administration to $2.4 billion at December 31st, 2025.
Speaker #3: Looking ahead, we see significant opportunity to deepen existing customer relationships through advice-led interactions and the continued expansion of treasury management solutions across our footprint.
Speaker #3: Our balance sheet remains a source of strength for our company. As of December 31, 2025, our regulatory capital levels were above our internal target levels.
Simon Griffiths: Our loan loss reserve was 91 basis points of total loans and reflects the quality of our loan portfolio, and liquidity position continues to be solid. Loans grew organically by 2% for the year, demonstrating our continued emphasis on profitable expansion, supported by strategic talent investments. We remain bullish on home equity lending and saw strong performance in this category throughout the year, highlighted by 6% growth in the quarter and 18% organic growth for the year. While total loans were down 1% for the Q4, our overall production levels for the Q3 and Q4 were comparable. This quarter's decrease was driven by higher loan payoffs and prepayments, muting an otherwise strong quarter of production. As of year-end, our credit metrics remained strong, underscoring the quality of our underwriting and disciplined risk management approach.
Our loan loss reserve was 91 basis points of total loans and reflects the quality of our loan portfolio, and liquidity position continues to be solid. Loans grew organically by 2% for the year, demonstrating our continued emphasis on profitable expansion, supported by strategic talent investments. We remain bullish on home equity lending and saw strong performance in this category throughout the year, highlighted by 6% growth in the quarter and 18% organic growth for the year. While total loans were down 1% for the Q4, our overall production levels for the Q3 and Q4 were comparable. This quarter's decrease was driven by higher loan payoffs and prepayments, muting an otherwise strong quarter of production. As of year-end, our credit metrics remained strong, underscoring the quality of our underwriting and disciplined risk management approach.
Speaker #3: Our loan loss reserve was 91 basis points of total loans and reflects the quality of our loan portfolio, and our liquidity position continues to be solid.
Speaker #3: Loans grew organically by 2% for the year, demonstrating our continued emphasis on profitable expansion supported by strategic talent investments. We remain bullish on home equity lending and saw strong performance in this category throughout the year, highlighted by 6% growth in the quarter and 18% organic growth for the year.
Speaker #3: Total loans were down 1% for the fourth quarter. Our overall production levels for the third quarter and fourth quarters were comparable.
Speaker #3: This quarter's driven decrease was by higher loan payoffs and prepayments , muting an otherwise strong quarter of production . As of year end , our credit metrics remain strong , underscoring the quality of our underwriting and disciplined risk management approach .
Simon Griffiths: Non-performing assets as of 31 December 2025, were 10 basis points of total assets, and total past due loans were 16 basis points of total loans. Our credit teams continue to proactively address issues as they arise. During the Q4, we had the opportunity to complete a short sale on a commercial real estate office loan that had been designated as classified for nearly two years. After a comprehensive assessment, we determined that entering into a short sale arrangement was the most prudent and proactive step to limit our future exposure and further strengthen our credit profile. The transaction closed late in the Q4, resulting in a $3 million charge-off and an 88% recovery of the loan balance. We remain confident in the overall health of our well-diversified loan portfolio. We continue to advance our digital strategy to attract and retain highly engaged customers.
Non-performing assets as of 31 December 2025, were 10 basis points of total assets, and total past due loans were 16 basis points of total loans. Our credit teams continue to proactively address issues as they arise. During the Q4, we had the opportunity to complete a short sale on a commercial real estate office loan that had been designated as classified for nearly two years. After a comprehensive assessment, we determined that entering into a short sale arrangement was the most prudent and proactive step to limit our future exposure and further strengthen our credit profile. The transaction closed late in the Q4, resulting in a $3 million charge-off and an 88% recovery of the loan balance. We remain confident in the overall health of our well-diversified loan portfolio. We continue to advance our digital strategy to attract and retain highly engaged customers.
Speaker #3: Non-performing assets as of December 31, 2025, were ten basis points of total assets, and total past due loans were sixteen basis points of total loans.
Speaker #3: Our credit teams continue to proactively address issues as they arise. During the fourth quarter, we had the opportunity to complete a short sale on a commercial real estate office loan that had been designated as classified for nearly two years.
Speaker #3: After a comprehensive assessment, we determined that entering into a short sale arrangement was the most proactive step to limit our future exposure and further strengthen our credit.
Speaker #3: The transaction closed late in the fourth quarter, resulting in a $3 million charge-off and an 88% recovery of the loan and balance.
Speaker #3: We remain confident in the overall health of our loan portfolio. We continue to advance our digital strategy to attract and retain highly engaged customers.
Simon Griffiths: This quarter, we introduced Family Wallet, a no-fee, parent-controlled youth banking platform that helps families build healthy financial habits within Camden National Bank, trusted brand, and integrated digital environment. Family Wallet enhances our broader digital suite, including RoundUp Savings, which now reflects nearly 1 million transactions with users, saving on average $103 each since its implementation earlier this year. These investments contributed to a 19% year-over-year increase in digital engagement among customers under the age of 45, as measured by monthly logins. We are actively managing operating expenses by accelerating enterprise adoption of our automation platform. Through the use of over 143 bots, we have processed more than 5 million tasks since implementation several years ago, freeing up capacity and allowing our teams to focus on higher-value customer interactions. Our performance this year coincided with our 150th anniversary.
This quarter, we introduced Family Wallet, a no-fee, parent-controlled youth banking platform that helps families build healthy financial habits within Camden National Bank, trusted brand, and integrated digital environment. Family Wallet enhances our broader digital suite, including RoundUp Savings, which now reflects nearly 1 million transactions with users, saving on average $103 each since its implementation earlier this year. These investments contributed to a 19% year-over-year increase in digital engagement among customers under the age of 45, as measured by monthly logins. We are actively managing operating expenses by accelerating enterprise adoption of our automation platform. Through the use of over 143 bots, we have processed more than 5 million tasks since implementation several years ago, freeing up capacity and allowing our teams to focus on higher-value customer interactions. Our performance this year coincided with our 150th anniversary.
Speaker #3: This quarter, we introduced Family Wallet, a no-fee, parent-controlled youth banking platform that helps families build healthy financial habits within the trusted Camden National brand and integrated digital environment.
Speaker #3: Family Wallet enhances our broader digital suite, including Round Up Savings, which now reflects nearly 1 million transactions with users, saving on average $103 each.
Speaker #3: Since this implementation , earlier this year , these investments contributed to a 19% year over year increase in digital engagement customers under the age of 45 .
Speaker #3: As measured by monthly logins. We are actively managing operating expenses by accelerating enterprise adoption of our automation platform. Through the use of over 143 bots, we have processed more than 5 million tasks since implementation several years ago, freeing up capacity and allowing our teams to focus on higher customer value interactions.
Simon Griffiths: Speak to the effectiveness of our strategy: maintaining a resilient balance sheet, driving high-quality growth, and staying relentlessly focused on delivering value for our customers, communities, and shareholders. We believe we are well-positioned as we look ahead to 2026. And of course, none of this would be possible without the dedication of our experienced and caring colleagues across Camden National. Their hard work, commitment to our customers and communities, and collaboration with one another brings these results to life, strengthening our franchise and delivering meaningful value to shareholders. With that, I'll hand over to Mike to provide additional financial details for the quarter.
Speak to the effectiveness of our strategy: maintaining a resilient balance sheet, driving high-quality growth, and staying relentlessly focused on delivering value for our customers, communities, and shareholders. We believe we are well-positioned as we look ahead to 2026. And of course, none of this would be possible without the dedication of our experienced and caring colleagues across Camden National. Their hard work, commitment to our customers and communities, and collaboration with one another brings these results to life, strengthening our franchise and delivering meaningful value to shareholders. With that, I'll hand over to Mike to provide additional financial details for the quarter.
Speaker #3: performance Our this year 150th anniversary coincided with our speaks to the effectiveness of our strategy . Maintaining a resilient balance sheet , driving high quality growth , and staying relentlessly focused on delivering value for our customers , communities , and shareholders .
Speaker #3: We believe we are well-positioned as we look ahead to 2026. And of course, none of this would be possible without the dedication of our experienced and caring colleagues across Camden National.
Speaker #3: Their commitment to our customers, work, and communities, and collaboration with one another brings these to life. Strengthening our franchise and delivering meaningful value to shareholders.
Mike Archer: Thank you, Simon, and good afternoon, everyone. We are very pleased with our finish of the year, reporting net income of $22.6 million and diluted earnings per share of $1.33 for the Q4, net income of $65.2 million and diluted earnings per share of $3.84 for the year ended 31 December 2025. In the second half of 2025, we began to see the earnings power of Camden National following the acquisition of Northway at the start of the year and the execution of our cost takeout initiative during the first half of 2025. Our financial performance in the Q4 resulted in strong profitability metrics, including a return on average assets of 1.28%, a return on average tangible equity of 19.06%, and an efficiency ratio of 51.69%. Given this strong performance, we've been able to rebuild capital used in the Northway acquisition at a pace that exceeded our initial projections.
Michael Archer: Thank you, Simon, and good afternoon, everyone. We are very pleased with our finish of the year, reporting net income of $22.6 million and diluted earnings per share of $1.33 for the Q4, net income of $65.2 million and diluted earnings per share of $3.84 for the year ended 31 December 2025. In the second half of 2025, we began to see the earnings power of Camden National following the acquisition of Northway at the start of the year and the execution of our cost takeout initiative during the first half of 2025. Our financial performance in the Q4 resulted in strong profitability metrics, including a return on average assets of 1.28%, a return on average tangible equity of 19.06%, and an efficiency ratio of 51.69%. Given this strong performance, we've been able to rebuild capital used in the Northway acquisition at a pace that exceeded our initial projections.
Speaker #3: With that, I'll hand over to Mike to provide additional financial details for the quarter.
Speaker #4: Thank you, Simon, and good afternoon, everyone. We are very pleased with our finish to the year, reporting net income of $22.6 million and diluted earnings per share of $1.33 for the fourth quarter.
Speaker #4: Net income of $65.2 million and diluted earnings per share of $3.84 for the year ended December 31st , 2025 . The second half of 2025 , we began to see the earnings power of Camden National following the acquisition of Northway at the start of the year and the execution of our cost takeout initiatives during the first half of 2025 , our financial performance in the fourth quarter in a resulted strong profitability metrics , including a return on average assets of 1.28% , a return on average tangible equity of 19.06% , and an efficiency ratio of 51.69% .
Speaker #4: Given this strong performance, we've been able to rebuild capital used in the Northway acquisition at a pace that exceeded our initial projections. In the fourth quarter, we again saw strong revenue growth of 4% over the third quarter.
Mike Archer: In the Q4, we again saw strong revenue growth of 4% over the Q3. Net interest income increased 5% between quarters, driven by a 13 basis point expansion in net interest margin to 3.29% in the Q4. Funding costs between quarters decreased 11 basis points to 1.79% in the Q4, as we've been able to successfully manage deposit costs following the most recent Fed rate cuts. Additional drivers of net interest income growth between quarters were average loan growth of 1%, average deposit growth of 2%, and higher fair value mark accretion of $735,000, which was driven by elevated payoffs on acquired loans. In the Q4, we saw nice momentum in deposits, which are up 2% since 30 September. Our growth in savings balances, driven by our high-yield savings product, continues to be a great story for us, increasing 5% during the Q4 and 28% organically for the year.
In the Q4, we again saw strong revenue growth of 4% over the Q3. Net interest income increased 5% between quarters, driven by a 13 basis point expansion in net interest margin to 3.29% in the Q4. Funding costs between quarters decreased 11 basis points to 1.79% in the Q4, as we've been able to successfully manage deposit costs following the most recent Fed rate cuts. Additional drivers of net interest income growth between quarters were average loan growth of 1%, average deposit growth of 2%, and higher fair value mark accretion of $735,000, which was driven by elevated payoffs on acquired loans. In the Q4, we saw nice momentum in deposits, which are up 2% since 30 September. Our growth in savings balances, driven by our high-yield savings product, continues to be a great story for us, increasing 5% during the Q4 and 28% organically for the year.
Speaker #4: Net interest income increased 5% between quarters, driven by a 13 basis point expansion in net interest margin to 3.29%. In the costs, quarters decreased points to between 11 basis fourth quarter.
Speaker #4: Funding was 1.79% in the fourth quarter, as we've been able to successfully manage deposit costs following the most recent Fed rate cuts. Additional drivers of net interest income growth between quarters were growth of 1% in average deposits, average loan growth of 2%, and higher fair value mark accretion of $735,000, which was driven by elevated payoffs on acquired loans.
Speaker #4: In the fourth quarter , we saw nice momentum in deposits , which were up 2% since September 30th . Our growth in savings balances , driven by our high yield savings product , continues to be a great story for us , increasing 5% during the fourth quarter and 28% organically for the year .
Mike Archer: Interest checking balances are also up 11% in the Q4 compared to last quarter, primarily driven by seasonal municipal deposit flows. We anticipate our Q1 of 2026 deposit balances will be relatively flat with the Q4, despite normal seasonality in our deposit base during the winter months, given the impact of recent deposit relationship wins across our sales teams. Non-interest income for the Q4 totaled $14.1 million, and it was fairly flat quarter-over-quarter. However, it's worth noting a change in revenue makeup between quarters. Our Q4 non-interest income included our annual Visa bonus incentive, which totaled $979,000 this year, and elevated fees earned on back-to-back loan swaps, which totaled $594,000 in the Q4. Given seasonality considerations and normalization of certain fees, we currently estimate non-interest income will range from $12 million to $13 million for the Q1 of 2026.
Interest checking balances are also up 11% in the Q4 compared to last quarter, primarily driven by seasonal municipal deposit flows. We anticipate our Q1 of 2026 deposit balances will be relatively flat with the Q4, despite normal seasonality in our deposit base during the winter months, given the impact of recent deposit relationship wins across our sales teams. Non-interest income for the Q4 totaled $14.1 million, and it was fairly flat quarter-over-quarter. However, it's worth noting a change in revenue makeup between quarters. Our Q4 non-interest income included our annual Visa bonus incentive, which totaled $979,000 this year, and elevated fees earned on back-to-back loan swaps, which totaled $594,000 in the Q4. Given seasonality considerations and normalization of certain fees, we currently estimate non-interest income will range from $12 million to $13 million for the Q1 of 2026.
Speaker #4: Interest checking balances were also up 11% in the fourth quarter compared to last quarter, primarily driven by seasonal municipal deposit flows. We anticipate our first quarter of 2026 deposit balances will be relatively flat with the fourth quarter, despite normal seasonality in our deposit base during the winter months.
Speaker #4: Given the impact of recent deposit relationship wins across our sales teams, noninterest income for the fourth quarter totaled $14.1 million and was fairly flat quarter over quarter.
Speaker #4: However , it's worth noting the change in revenue makeup between quarters . Our fourth quarter noninterest income included our annual visa bonus incentive , which totaled 979,000 this year , and elevated fees earned on back to back loan swaps , which totaled 594,000 .
Speaker #4: In the fourth quarter . Given seasonality considerations and normalization of certain fees , we currently estimate non-interest income will range from 12 to 13 million for the first quarter of 2026 , reported non-interest expense for the fourth quarter was 36.9 million , which was an increase over last quarter as anticipated , the increase reflects continued investment in the franchise .
Mike Archer: Reported non-interest expense for the Q4 was $36.9 million, which was an increase over last quarter, as anticipated. The increase reflects continued investment in the franchise, strong performance across our revenue lines, seasonality in our expense base, including year-end performance incentive true-ups and healthcare costs, and other corporate matters. We currently estimate our Q1 operating expenses will range from $36 million to $37 million. For the Q4, we reported a provision for credit losses of $3 million, driven by the single charge-off Simon mentioned earlier. As of 31 December, our loan loss reserves totaled $45.3 million, which was 91 basis points of total loans and was 6.4 times non-performing loans. We continue to believe we have sufficient loan loss reserves set aside, given the strength and historical performance of our loan portfolio, its diversification, and our credit trends at year-end.
Reported non-interest expense for the Q4 was $36.9 million, which was an increase over last quarter, as anticipated. The increase reflects continued investment in the franchise, strong performance across our revenue lines, seasonality in our expense base, including year-end performance incentive true-ups and healthcare costs, and other corporate matters. We currently estimate our Q1 operating expenses will range from $36 million to $37 million. For the Q4, we reported a provision for credit losses of $3 million, driven by the single charge-off Simon mentioned earlier. As of 31 December, our loan loss reserves totaled $45.3 million, which was 91 basis points of total loans and was 6.4 times non-performing loans. We continue to believe we have sufficient loan loss reserves set aside, given the strength and historical performance of our loan portfolio, its diversification, and our credit trends at year-end.
Speaker #4: Strong performance across our revenue lines , seasonality and our expense base , including year end performance , incentive true ups and health care costs and other corporate matters .
Speaker #4: We currently estimate our first quarter operating expenses will range from 36 to 37 million . For the fourth quarter , we reported a provision for credit losses of 3 million , driven by the single charge off .
Speaker #4: Simon mentioned earlier as . As of December 31st , our loan loss reserves totaled 45.3 million , which was 91 basis total points of loans and was 6.4 times nonperforming loans .
Speaker #4: We continue to believe we have sufficient loan loss reserves set aside, given the strength and historical performance of our loan portfolio, its diversification, and our credit trends at year-end.
Mike Archer: Lastly, I wanted to note that in early January, we announced a new share repurchase program that gives us the ability to repurchase up to 850,000 shares of the company's common stock, where approximately 5% of shares currently outstanding. This concludes our comments. We'll now open up the call for questions.
Lastly, I wanted to note that in early January, we announced a new share repurchase program that gives us the ability to repurchase up to 850,000 shares of the company's common stock, where approximately 5% of shares currently outstanding. This concludes our comments. We'll now open up the call for questions.
Speaker #4: Lastly, I wanted to note that in early January, we announced a new share repurchase program that gives us the ability to repurchase up to 840.
Speaker #4: Excuse me , 850,000 shares of the company's common stock , or approximately 5% of shares currently outstanding . This concludes our comments . We'll now open up the call for questions .
Operator: Thank you. We will now begin the question and answer session. To ask a question, press Star then 1 on your touch-tone phone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star then 2. At this time, we will pause momentarily to assemble our roster. First question comes from Steve Moss with Raymond James. If your line is open, please go ahead.
Operator: Thank you. We will now begin the question and answer session. To ask a question, press Star then 1 on your touch-tone phone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star then 2. At this time, we will pause momentarily to assemble our roster. First question comes from Steve Moss with Raymond James. If your line is open, please go ahead.
Speaker #1: Thank you . We will now begin the question and answer session . To ask a question , press star . Then one on your touch tone phone keypad .
Speaker #1: If you're using a speakerphone, please pick up your handset before pressing the keys to withdraw your question. Please press star, then two. At this time, we will pause momentarily to assemble our roster.
Simon Griffiths: Good afternoon, guys.
Steve Moss: Good afternoon, guys.
Speaker #1: First question comes from Steve Moss with Raymond James. Your line is open. Please go ahead.
[Analyst] (Raymond James): Hey, Steve.
Simon Griffiths: Hey, Steve.
Simon Griffiths: Maybe just starting with the margins here, you know, nice pickup quarter over quarter, pretty much as you expected. Just kind of curious, you know, where are deposit costs trending here for all the Fed rate cuts, and kind of how much more expansion are you thinking here going forward?
Steve Moss: Maybe just starting with the margins here, you know, nice pickup quarter over quarter, pretty much as you expected. Just kind of curious, you know, where are deposit costs trending here for all the Fed rate cuts, and kind of how much more expansion are you thinking here going forward?
Speaker #5: Hi . Good afternoon guys .
Speaker #3: Hey ,
Speaker #5: Steve , maybe just starting with . Maybe just starting with the margin here . You know , my nice pickup quarter over quarter .
Speaker #5: Pretty much as you expected. We’re curious if you know how costs are trending here for all the Fed rate cuts, and kind of how much more expansion you’re thinking here?
Mike Archer: Yeah, great question, Steve. So I think as we're thinking about this, I think for the Q1, we got some different dynamics in play here. I would say overall, to answer your question directly, you know, we're kind of in a couple basis points here for the Q1 of core margin expansion. You know, we have generally some seasonality in deposit flows, so there'll be a level of remix there that we'd otherwise see, which is pretty customary for us. On the funding cost side, you know, we do see that continued improvement there, I would say in the neighborhood of 7 to 10 basis points potentially for the quarter. That said, I think we'll also see some yield compression, just given some of the repricing characteristics that didn't occur in December with the latest Fed rate cut.
Michael Archer: Yeah, great question, Steve. So I think as we're thinking about this, I think for the Q1, we got some different dynamics in play here. I would say overall, to answer your question directly, you know, we're kind of in a couple basis points here for the Q1 of core margin expansion. You know, we have generally some seasonality in deposit flows, so there'll be a level of remix there that we'd otherwise see, which is pretty customary for us. On the funding cost side, you know, we do see that continued improvement there, I would say in the neighborhood of 7 to 10 basis points potentially for the quarter. That said, I think we'll also see some yield compression, just given some of the repricing characteristics that didn't occur in December with the latest Fed rate cut.
Speaker #5: Going forward ?
Speaker #4: Yeah . question Great Steve . So so I think as we were thinking about this , I think for the first quarter , we got some some different dynamics in play here .
Speaker #4: I would say, overall, to answer your question directly, we're kind of in a couple basis points here for the first quarter of core margin expansion.
Speaker #4: You know , we have generally some seasonality in deposit flows . So there'll be a level of remix there that would otherwise see , it , which is pretty customary for us on the funding cost side .
Speaker #4: You know, we do see that continued improvement there. I would say in the neighborhood of 7 to 10 basis points, potentially for the quarter.
Speaker #4: That said, I think we'll also see some yield compression, just given some of the repricing characteristics that didn't occur in December with the latest Fed rate cut.
Mike Archer: But overall, we're expecting a couple basis points ± for the Q1. And just to be clear, that is on a core basis. I think just long-term, Steve, as we look out, we continue to see, you know, favorable margin expansion. I would just say bearing any additional Fed rate cuts, it'll probably be a bit slower than what we, you know, certainly than what we saw this last quarter. But we continue to see potential upside here.
But overall, we're expecting a couple basis points ± for the Q1. And just to be clear, that is on a core basis. I think just long-term, Steve, as we look out, we continue to see, you know, favorable margin expansion. I would just say bearing any additional Fed rate cuts, it'll probably be a bit slower than what we, you know, certainly than what we saw this last quarter. But we continue to see potential upside here.
Speaker #4: But overall , we're expecting a couple basis points plus or minus quarter . just to that is on a core basis be clear , for for the first that And , I think I think just just long term , Steve , as we look out , we continue to see , you favorable margin would just expansion .
Speaker #4: I bear in mind any additional Fed rate cuts will probably be a bit slower than what we, you know, certainly than what we saw last quarter.
[Analyst] (Raymond James): Okay, great. And then on the loan growth front, you know, I hear you, Simon, in terms of the payoffs here. It looks like they were late in the quarter. Just kind of curious, you know, how the pipeline is and kind of like how you're thinking about dynamic with payoffs here, just as kind of, you know, rates have generally or spreads have generally come in over the last quarter or so.
Steve Moss: Okay, great. And then on the loan growth front, you know, I hear you, Simon, in terms of the payoffs here. It looks like they were late in the quarter. Just kind of curious, you know, how the pipeline is and kind of like how you're thinking about dynamic with payoffs here, just as kind of, you know, rates have generally or spreads have generally come in over the last quarter or so.
Speaker #4: But we continue to see potential upside here.
Speaker #5: Okay . Great . And then on on the loan growth front , you know , I hear you in terms of the payoffs here , it looks like they were late in the quarter .
Speaker #5: Just kind of curious . know You how the pipeline is and kind of like how you think about that with dynamic payoffs here just as kind of , you know , rates of generally or spreads generally come in over the last quarter or so .
Simon Griffiths: Yeah, thanks for the question, Steve. You know, I think just generally, we continue to see a decent pipeline. You know, residential pipeline is just over $83 million. Commercial pipeline is just over $77 million, which certainly is solid for January and puts us in good, really good footing for the rest of the year. We expect loan growth this quarter, as Mike indicated, to be sort of flat to up 2%. But certainly, as we get into the rest of the year, we see a pickup in that April, May timeframe, and certainly mid-single digits is certainly our outlook. We did see a slight uptick in prepay towards the end of the quarter, and I think certainly in the rate environment, there's the potential that that sort of sustains. But generally, we feel, you know, very positive in terms of loan growth.
Simon Griffiths: Yeah, thanks for the question, Steve. You know, I think just generally, we continue to see a decent pipeline. You know, residential pipeline is just over $83 million. Commercial pipeline is just over $77 million, which certainly is solid for January and puts us in good, really good footing for the rest of the year. We expect loan growth this quarter, as Mike indicated, to be sort of flat to up 2%. But certainly, as we get into the rest of the year, we see a pickup in that April, May timeframe, and certainly mid-single digits is certainly our outlook. We did see a slight uptick in prepay towards the end of the quarter, and I think certainly in the rate environment, there's the potential that that sort of sustains. But generally, we feel, you know, very positive in terms of loan growth.
Speaker #3: Yeah . Thanks for the question , Steve . You know , I think just generally we continue to see a decent pipeline . You know , residential pipeline is just over 83 million commercial pipeline just over is 77 million , which certainly is solid for January .
Speaker #3: And puts us in good , really good footing for the rest of the year . We expect loan growth this quarter . As Mike indicated , to be sort of flat to up 2% , but certainly as we as we get into the rest of the year , we see a pickup in that April , May frame .
Speaker #3: And time certainly mid mid single digits is certainly our outlook . We did see a slight uptick in prepay towards the end of the quarter , and I think certainly in the rate environment , there's the potential that that sort of sustains .
Simon Griffiths: We're seeing a really nice pickup in the southern end of our market. New Hampshire continues to be a place of strength for us. We continue to build out our teams. We continue to put a lot of resources, training, and other pieces into those markets and see a lot of opportunity there and really fruition of the partnership with Northway, the integration with Northway. So very, very strong on those fronts.
We're seeing a really nice pickup in the southern end of our market. New Hampshire continues to be a place of strength for us. We continue to build out our teams. We continue to put a lot of resources, training, and other pieces into those markets and see a lot of opportunity there and really fruition of the partnership with Northway, the integration with Northway. So very, very strong on those fronts.
Speaker #3: But generally, we feel very positive in terms of loan growth. We're seeing really nice pickup in the southern end of our market.
Speaker #3: New Hampshire continues to be a place of strength for us . We continue to build out our teams . We continue to put a lot of resources , training and and other pieces into those markets .
Speaker #3: And see a lot of opportunity there and really fruition of the the partnership with Northway , the integration with Northway , so very , very strong on those fronts .
[Analyst] (Raymond James): Okay, great. And then just on capital with the buyback here, just kind of curious how you guys are thinking about, you know, deploying that or using that authorization.
Steve Moss: Okay, great. And then just on capital with the buyback here, just kind of curious how you guys are thinking about, you know, deploying that or using that authorization.
Speaker #5: Okay , great . And then just on capital with the buyback here , just kind of curious how you guys are thinking about , you know , deploying that or using that authorization .
Mike Archer: Yeah, I would say our focus right now continues just to be to return capital, continue to build, but certainly we'll be opportunistic on, you know, leveraging the repurchase program. But I think our initial priority is continuing to build capital there and, you know, position ourselves for whatever the future may hold. But I would say organic growth is the first priority. And from there, Steve, it really is a bit more opportunistic, if you will.
Simon Griffiths: Yeah, I would say our focus right now continues just to be to return capital, continue to build, but certainly we'll be opportunistic on, you know, leveraging the repurchase program. But I think our initial priority is continuing to build capital there and, you know, position ourselves for whatever the future may hold. But I would say organic growth is the first priority. And from there, Steve, it really is a bit more opportunistic, if you will.
Speaker #4: Yeah , I would say I would say our focus right now continues just to be to return capital , continue to build , but certainly will be opportunistic on leveraging the repurchase But program .
Speaker #4: I think our initial priority is , is continuing to build capital there . And , you know , position ourselves for whatever the future may hold .
Speaker #4: But I would say organic growth is the first priority . And from there , Steve , it really is a bit more opportunistic , if you will .
[Analyst] (Raymond James): Okay, great. I appreciate all the color here, next quarter.
Steve Moss: Okay, great. I appreciate all the color here, next quarter.
Mike Archer: Cheers, Steve. Thank you.
Simon Griffiths: Cheers, Steve.
Michael Archer: Thank you.
Speaker #5: Okay, great. I appreciate all the color here. Nice quarter.
Operator: We now turn to Damon DelMonte with KBW. Your line is open. Please go ahead.
Operator: We now turn to Damon DelMonte with KBW. Your line is open. Please go ahead.
Speaker #3: Cheers , Steve .
Speaker #4: you Thank .
[Analyst] (KBW): Hey, good afternoon, guys. Hope you're both doing well. Just wanted to circle back on the fair value accretion that you mentioned, Mike, this quarter. Do you have the dollar amount of what that accretion was?
Damon DelMonte: Hey, good afternoon, guys. Hope you're both doing well. Just wanted to circle back on the fair value accretion that you mentioned, Mike, this quarter. Do you have the dollar amount of what that accretion was?
Speaker #1: We now turn to Damian Del Monte with CCB. Your line is open. Please go ahead.
Speaker #6: Hey good afternoon guys . Hope I hope you're both doing well . Just wanted to circle back on the on the value fair accretion that you mentioned .
Mike Archer: Yeah, in total, it was $5.3 million, I believe, for the quarter.
Michael Archer: Yeah, in total, it was $5.3 million, I believe, for the quarter.
Speaker #6: Mike, this quarter, do you have the dollar amount of what that accretion was?
[Analyst] (KBW): Okay. And I know you noted that it was somewhat accelerated because of some payoffs. But what would be a good range to model on a schedule basis?
Damon DelMonte: Okay. And I know you noted that it was somewhat accelerated because of some payoffs. But what would be a good range to model on a schedule basis?
Speaker #4: Yeah. In total, it was $5.3 million. I believe for the quarter.
Speaker #6: Okay . And and I know you noted that it was somewhat accelerated because of some payoffs . But what what would be a good range to model on a , on a scheduled basis .
Mike Archer: Yeah, I mean, I guess, like, internally, Damon, we're more in that; call it 4.5, maybe 4.75. I think to the extent that, you know, of course, if prepay is accelerated, it could creep up like we saw it. But I think on a base perspective, that's pretty solid.
Michael Archer: Yeah, I mean, I guess, like, internally, Damon, we're more in that; call it 4.5, maybe 4.75. I think to the extent that, you know, of course, if prepay is accelerated, it could creep up like we saw it. But I think on a base perspective, that's pretty solid.
Speaker #4: Yeah . like I mean , I guess internally we're , we're more in that call four and a half , maybe four and three quarters .
Speaker #4: I think to the extent that , you know , of course , if Prepays accelerate , it could creep up like we saw it .
[Analyst] (KBW): Okay, that's helpful. Thank you. And then, you know, with regards to the outlook for loan growth, you know, it sounds like the pipelines are pretty healthy. Do you guys intend to try to make any commercial hires this year or any team of lenders? Or do you feel that you're pretty adequately staffed for, you know, for the foreseeable future?
Damon DelMonte: Okay, that's helpful. Thank you. And then, you know, with regards to the outlook for loan growth, you know, it sounds like the pipelines are pretty healthy. Do you guys intend to try to make any commercial hires this year or any team of lenders? Or do you feel that you're pretty adequately staffed for, you know, for the foreseeable future?
Speaker #4: But I think, on a base perspective, that's pretty solid.
Speaker #6: Okay . That's helpful . Thank you . And then with regards to the outlook for loan growth , it sounds like the pipelines are pretty healthy .
Speaker #6: Do you guys intend to try to make any commercial hires this year or any team, team of lenders? Or do you feel that you're pretty adequately staffed for, you know, for the foreseeable future?
Simon Griffiths: Yeah, Damon, we certainly continue to look for talent, particularly in the key markets. We've had a couple of really nice hires recently, and, you know, we're finding people attracted to the Camden story and continue to build out and deepen the bench of those teams. We've also elevated a couple of folk internally within the Portland market and just starting to push into some different segments. So really, that whole focus is really on growth and building expertise. There's also, I've talked about in previous calls, just this opportunity to connect commercial into other businesses. We're seeing some great partnership across the Wealth franchise and starting to really bring the Camden team to bear. And I think that's a really important focus for us.
Simon Griffiths: Yeah, Damon, we certainly continue to look for talent, particularly in the key markets. We've had a couple of really nice hires recently, and, you know, we're finding people attracted to the Camden story and continue to build out and deepen the bench of those teams. We've also elevated a couple of folk internally within the Portland market and just starting to push into some different segments. So really, that whole focus is really on growth and building expertise. There's also, I've talked about in previous calls, just this opportunity to connect commercial into other businesses. We're seeing some great partnership across the Wealth franchise and starting to really bring the Camden team to bear. And I think that's a really important focus for us.
Speaker #3: Yeah . Damon , we certainly are continuing to look for talent , particularly in the key markets . We've had a couple of really nice hires recently , and , you know , we're finding people attracted to Camden the story and continue to build out and deepen the bench of those teams .
Speaker #3: We've also elevated a couple of folks internally within the Portland market, and just to push starting different into some segments. So really, that whole focus is really on growth and building expertise.
Speaker #3: It's also something I've talked about in previous calls—just this opportunity to connect Commercial into other businesses. We're seeing some great partnerships across the Wealth franchise and starting to really bring the Camden team to bear.
[Analyst] (KBW): Okay, great. And then just lastly, as we try to think about the provision, heard the comments on the comfort level with the reserve. But if you look at the last couple quarters of 2025, you know, the provision was kind of in that $3 million range. Do you think that was just, you know, necessitated by addressing particular credit issues that came up? Or do you feel like, you know, that a little bit kind of higher level of charge-offs is kind of a normalization of the credit cycle and we should factor in a little bit more in provision?
Damon DelMonte: Okay, great. And then just lastly, as we try to think about the provision, heard the comments on the comfort level with the reserve. But if you look at the last couple quarters of 2025, you know, the provision was kind of in that $3 million range. Do you think that was just, you know, necessitated by addressing particular credit issues that came up? Or do you feel like, you know, that a little bit kind of higher level of charge-offs is kind of a normalization of the credit cycle and we should factor in a little bit more in provision?
Speaker #3: And I think that's a really important focus for us.
Speaker #6: Okay, great. And then just lastly, as we try to think about the provision, I heard the comments on the comfort level with the reserve.
Speaker #6: But if you look at the last couple quarters of 2025, you know, the provision was kind of in that $3 million range.
Speaker #6: Do you think that was just , you know , necessitated by addressing particular credit issues that came up , or do you like , you feel know , that kind of higher level of charge offs is kind of a normalization of cycle , the credit and we should factor in a little bit more in provision .
Mike Archer: You know, that's a great question. I think the, you know, the $3 million that we saw was more necessitated by, you know, some of the credits over the last few quarters there. And as we've highlighted, certainly one-offs from our perspective there. I think right now, I would say overall, we feel pretty good around the 90, 91 basis points on a, you know, ACL to loans ratio, Damon. So I would stick there. And I think we begin to see net charge-offs start to normalize more to things we're accustomed to from here.
Michael Archer: You know, that's a great question. I think the, you know, the $3 million that we saw was more necessitated by, you know, some of the credits over the last few quarters there. And as we've highlighted, certainly one-offs from our perspective there. I think right now, I would say overall, we feel pretty good around the 90, 91 basis points on a, you know, ACL to loans ratio, Damon. So I would stick there. And I think we begin to see net charge-offs start to normalize more to things we're accustomed to from here.
Speaker #4: That's a great question. I think the $3 million that we saw was, is more necessitated by some of the credits over the last few quarters.
Speaker #4: There . And as we've highlighted , certainly one offs from our perspective , there , I think right I would now , say overall we feel pretty good around the 9091 basis points on a , you know , ACL .
Speaker #4: The loans ratio, Damon. So I would stick there, and I think we begin to see net charge-offs start to normalize more.
[Analyst] (KBW): Got it. Great. That's all that I had. Thanks so much.
Damon DelMonte: Got it. Great. That's all that I had. Thanks so much.
[Analyst] (Raymond James): Cheers, Damon.
Steve Moss: Cheers, Damon.
Mike Archer: Thank you.
Michael Archer: Thank you.
Speaker #4: If we're accustomed to from here.
Operator: We now turn to Daniel Cardenas with Janney Montgomery Scott. Your line is open. Please go ahead.
Operator: We now turn to Daniel Cardenas with Janney Montgomery Scott. Your line is open. Please go ahead.
Speaker #6: Got it. Great. That's all that I had. Thanks so much.
Speaker #3: Cheers ,
Speaker #3: Damon .
Speaker #4: Thank you .
[Analyst] (Raymond James): Good afternoon, guys. As you guys think about deposit growth in 2026, do you think it's going to be able to keep up with expectations for growth on the lending front? I know there's a little bit of room on your loan-to-deposit ratio, but, you know, how are you guys thinking about overall deposit growth in the coming year?
Daniel Cardenas: Good afternoon, guys. As you guys think about deposit growth in 2026, do you think it's going to be able to keep up with expectations for growth on the lending front? I know there's a little bit of room on your loan-to-deposit ratio, but, you know, how are you guys thinking about overall deposit growth in the coming year?
Speaker #1: We now turn to Daniel Cardenas with Janney Montgomery Scott. Your line is open. Please go ahead.
Speaker #7: Good afternoon guys . As as you guys think about the positive growth in do you think it's going 2026 , to be able to keep up with expectations for growth on the lending front ?
Speaker #7: There's, I know, a little bit of room on the loan-to-deposit ratio, but how are you guys thinking about overall deposit growth in the coming year?
Simon Griffiths: Yeah, thanks, Daniel. Appreciate the question. You know, we continue to feel we're putting a lot of resources and focus on deposit growth, you know, from a number of fronts and feel very good about, you know, how we're attracting clients, moving to primacy and really focus on primary relationships. You know, we see low to mid-single digit growth this year. We saw, as we talked earlier in the recorded remarks, you know, some very nice growth on high yield savings. So lots of opportunity there. So, you know, we certainly feel there is plenty of opportunity. We like the southern markets where we see growth in households and, you know, lots of opportunities for us to leverage our digital franchise and capabilities. And I think that'll, you know, really kind of lead us to a positive outlook on our deposit growth this year.
Simon Griffiths: Yeah, thanks, Daniel. Appreciate the question. You know, we continue to feel we're putting a lot of resources and focus on deposit growth, you know, from a number of fronts and feel very good about, you know, how we're attracting clients, moving to primacy and really focus on primary relationships. You know, we see low to mid-single digit growth this year. We saw, as we talked earlier in the recorded remarks, you know, some very nice growth on high yield savings. So lots of opportunity there. So, you know, we certainly feel there is plenty of opportunity. We like the southern markets where we see growth in households and, you know, lots of opportunities for us to leverage our digital franchise and capabilities. And I think that'll, you know, really kind of lead us to a positive outlook on our deposit growth this year.
Speaker #3: Yeah , thanks , Daniel . Appreciate the You know , we question . continue to feel we're putting a lot of resources and focus on growth .
Speaker #3: Deposit, you know, from a number of fronts, and feel very good about how we're tracking clients moving to primacy and really focus on primary—primary relationships.
Speaker #3: And we see low to mid single digit growth . This year . We saw as we talked earlier in the recorded remarks , you know , nice growth on high yield savings .
Speaker #3: Lots of opportunity there. So, you know, we certainly feel there is plenty of opportunity. We like the southern markets where we see growth and households.
Speaker #3: And you know lots of opportunities for us to level leverage our digital franchise and capabilities think that'll , . And I you know , really kind of leads us to , to a positive outlook on our deposit growth this year .
[Analyst] (KBW): Excellent. Good. And then as I think about operating expenses kind of on a year-over-year basis, kind of low single digit type of growth, is that a good way to think about the outlook for 2026?
Daniel Cardenas: Excellent. Good. And then as I think about operating expenses kind of on a year-over-year basis, kind of low single digit type of growth, is that a good way to think about the outlook for 2026?
Speaker #7: Excellent . Good . And then as I think about operating expenses , kind of on a year over year basis , kind of low single digit type of growth is that a good way about to think the outlook for 2026 ?
Mike Archer: Hey, Dan. I guess what I would say, I think for more of, you know, an annual outlook, if you will. I think from an efficiency ratio is the way I might phrase it, is I think that mid-50s is probably a good spot and normal for us. Certainly, we've been tracking a little bit lower, but I would think in, you know, kind of mid-50s as we reinvest in the franchise is a decent spot for us.
Michael Archer: Hey, Dan. I guess what I would say, I think for more of, you know, an annual outlook, if you will. I think from an efficiency ratio is the way I might phrase it, is I think that mid-50s is probably a good spot and normal for us. Certainly, we've been tracking a little bit lower, but I would think in, you know, kind of mid-50s as we reinvest in the franchise is a decent spot for us.
Speaker #4: Hey Dan , I guess what I would say , I think for a more of , you know , an annual outlook , if you will , I think from an efficiency ratio , it's the way I might phrase it is , I think that mid , mid 50s is probably a good spot and normal for us .
Speaker #4: Certainly we've been tracking a little bit lower , but I would think , you know , kind of mid 50s as we As , reinvest in the franchise .
Simon Griffiths: And just to add to that, Dan, just, you know, I just would add that, you know, that balance, investments, and continue to invest is certainly, but doing it through a lot of self-funding, a lot of discipline. I think that theme, you know, we've been focused on that. I think we're continuing to leverage some of the automation that we talked about on the call, opportunities to be more efficient, and then reinvesting that in growth and building out our teams, whether it's on the commercial side or the wealth side, really is the sort of philosophy of the team. And I think that's, you know, showing the results and certainly very prudent and a great way to manage the resources at Camden National Bank.
Simon Griffiths: And just to add to that, Dan, just, you know, I just would add that, you know, that balance, investments, and continue to invest is certainly, but doing it through a lot of self-funding, a lot of discipline. I think that theme, you know, we've been focused on that. I think we're continuing to leverage some of the automation that we talked about on the call, opportunities to be more efficient, and then reinvesting that in growth and building out our teams, whether it's on the commercial side or the wealth side, really is the sort of philosophy of the team. And I think that's, you know, showing the results and certainly very prudent and a great way to manage the resources at Camden National Bank.
Speaker #4: as a decent spot, us...
Speaker #4: As a decent spot for us. And—
Speaker #3: just to add to that and just , you know , I just would add that , you know , that that balance investments and continue to invest is certainly .
Speaker #3: But doing it through a lot of self-funding , a lot of think that discipline . I theme , you know , we've been focused on that .
Speaker #3: I think we're continuing to leverage some of the automation that we talked about on the call , opportunities to be more efficient . And then reinvesting that in in growth , in building out our it's on the commercial side teams , whether or the wealth side , really is the is the sort of philosophy of the team .
Speaker #3: And , and I think that's , you know , showing the results and certainly very prudent and , and a great way to manage the resources of Camden National Bank .
[Analyst] (KBW): Excellent. And then last question for me is, how should I think about your tax rate on a go-forward basis? You've kind of been in that 20, 21% level here over the last 2 quarters. Is that kind of a reasonable assumption for you guys?
Daniel Cardenas: Excellent. And then last question for me is, how should I think about your tax rate on a go-forward basis? You've kind of been in that 20, 21% level here over the last 2 quarters. Is that kind of a reasonable assumption for you guys?
Speaker #5: Excellent .
Speaker #7: And then, last question from me is, how should I think about your tax rate on a go-forward basis? You’ve kind of been in that 20–21% level here over two quarters.
Mike Archer: I think we'll sneak up a little bit. I think we'll be a little bit higher from an effective tax rate perspective. We've had some tax credit benefits that we had this year that, you know, won't be occurring, at least as of now from a forecast perspective in 2026. So I think we'll see that maybe sneak up 1%.
Michael Archer: I think we'll sneak up a little bit. I think we'll be a little bit higher from an effective tax rate perspective. We've had some tax credit benefits that we had this year that, you know, won't be occurring, at least as of now from a forecast perspective in 2026. So I think we'll see that maybe sneak up 1%.
Speaker #7: Last, is that—is that kind of a reasonable assumption for you guys?
Speaker #4: I think... well, I think we'll sneak up a little bit. I think we'll be a little bit higher from an effective tax rate perspective.
Speaker #4: We've had some tax credit benefits that we had this year that , you know , won't won't be occurring at least as of now from a forecast perspective .
[Analyst] (KBW): Okay, great. Thank you, guys.
Daniel Cardenas: Okay, great. Thank you, guys.
Speaker #4: And 26. So I think we'll see that maybe sneak up a percent.
Operator: As another reminder, if you'd like to ask a question, please press star one on the telephone keypad now. We now turn to Matthew Breese with Stephens. Your line is open. Please go ahead.
Operator: As another reminder, if you'd like to ask a question, please press star one on the telephone keypad now. We now turn to Matthew Breese with Stephens. Your line is open. Please go ahead.
Speaker #7: You’re great. Thank you, guys.
Speaker #1: another As reminder , if you'd like to ask a question , please press Star One on the telephone keypad . Now , we now turn to Matthew Breese with Stephens .
[Analyst] (Raymond James): Hey, good afternoon. A lot of my questions have been answered, but maybe a few. You know, the first one is just in regards to the, I think you said it was an office commercial real estate charge-off that had been classified for a couple of years. Would just love a little bit of story there. Why was it unclassified for a couple of years? And then when it came to the actual exit, how was pricing relative to where you underwrote it and relative to your expectations? Does it give you any sort of confidence or re-emerging confidence in kind of commercial real estate pricing here? Just curious.
Matthew Breese: Hey, good afternoon. A lot of my questions have been answered, but maybe a few. You know, the first one is just in regards to the, I think you said it was an office commercial real estate charge-off that had been classified for a couple of years. Would just love a little bit of story there. Why was it unclassified for a couple of years? And then when it came to the actual exit, how was pricing relative to where you underwrote it and relative to your expectations? Does it give you any sort of confidence or re-emerging confidence in kind of commercial real estate pricing here? Just curious.
Speaker #1: Your line is open. Please go ahead.
Speaker #8: Hey . Good afternoon . A lot of my questions have been answered , but . But maybe a few . You . The first one is just in regards to the .
Speaker #8: I think you said it was an office commercial real estate charge-off that had been classified for a couple of years. Would just love a little bit of story there.
Speaker #8: Why was it on classified for a couple of years ? And then when it came to the actual exit , how was pricing relative to to where you underwrote it and relative to to your expectations ?
Speaker #8: Does it give you any sort of confidence or re-emerging confidence in commercial real estate pricing here? Just curious.
Simon Griffiths: Yeah, let me take that question. So we had a borrower which we talked about who had been expressing some fatigue with an underperforming property that was in a stressed asset class, and that obviously being office. The loan tied to this property had a special mention and classified loan for us for nearly 2 years. So had certainly been in that situation for a while with a reserve on our books of $1 million. So during the quarter, we had an opportunity to discuss a sale with a few potential buyers in the property. And, you know, we were successful in negotiating a deal that provided 88% recovery on the loan, which was, I think, a good outcome for us. You know, there still is some softness in the Boston market.
Simon Griffiths: Yeah, let me take that question. So we had a borrower which we talked about who had been expressing some fatigue with an underperforming property that was in a stressed asset class, and that obviously being office. The loan tied to this property had a special mention and classified loan for us for nearly 2 years. So had certainly been in that situation for a while with a reserve on our books of $1 million. So during the quarter, we had an opportunity to discuss a sale with a few potential buyers in the property. And, you know, we were successful in negotiating a deal that provided 88% recovery on the loan, which was, I think, a good outcome for us. You know, there still is some softness in the Boston market.
Speaker #3: Yeah . Let me take that question . So we had a borrower , as we talked about it , had been expressing some fatigue with an underperforming property that was in a stressed asset class and that being office , the loan tied to this obviously property , property had a special mention and classified loan for us for nearly two years .
Speaker #3: So, we had certainly been in that situation for a while. And with the reserve on our books of $1 million. So, during the quarter, we had an opportunity to discuss a sale with a few potential buyers in the property.
Speaker #3: And , you know , we were successful in negotiating a deal that provided 88% recovery on the loan , which was , I think , a good outcome for us .
Simon Griffiths: I think this, you know, certainly was an opportune moment to take a decisive approach to and really put our credit on an even stronger footing. When you step back from this, office is, you know, we have a very well-balanced portfolio. And office represents 3.7% of the entire portfolio and is in extremely good condition. And we have 35 loans over $1 million and all are pass-rated with positive and acceptable debt service coverage. We've got good occupancy and very good LTVs overall. So we feel, you know, continue to feel good about that segment for us. Our criticized and classified asset levels remain very solid against historical norms. So we feel very good there as well. So, you know, and the pricing, we certainly, you know, obviously had a lot of discussion as a team.
I think this, you know, certainly was an opportune moment to take a decisive approach to and really put our credit on an even stronger footing. When you step back from this, office is, you know, we have a very well-balanced portfolio. And office represents 3.7% of the entire portfolio and is in extremely good condition. And we have 35 loans over $1 million and all are pass-rated with positive and acceptable debt service coverage. We've got good occupancy and very good LTVs overall. So we feel, you know, continue to feel good about that segment for us. Our criticized and classified asset levels remain very solid against historical norms. So we feel very good there as well. So, you know, and the pricing, we certainly, you know, obviously had a lot of discussion as a team.
Speaker #3: You know , there still is some softness in the moment opportune was an , you market . this certainly And I know , to take Boston a decisive approach to and really put our credit on an even stronger footing when you when you step back from this office is very is is a , you know , we have a very well balanced portfolio and office represents 3.7% of the entire portfolio and is an extremely good condition .
Speaker #3: We have 35 loans, over $1 million, and all are past rated with positive and acceptable debt coverage with good occupancy. Very good LTVs overall.
Speaker #3: So we feel , you know , continue to feel good about that segment for us . criticized and Our classified asset levels remain very solid against our historical norms .
Simon Griffiths: And I think the pricing represented a good balance of risk for us to get this to a stronger footing given some of the, you know, I think there's some softness you still do see in the office space. But generally, I think that's a trending positive. So it was a balanced decision. I think I would just footnote the comments with, as a management leadership team, you know, I think we tend to continue to be very proactive. I think we see opportunities like this and just take a decisive view on the situations like this. And I think it really sets us up for an even continued momentum and a very strong year at, you know, across both the credit front and across our loan growth that we were talking about earlier.
And I think the pricing represented a good balance of risk for us to get this to a stronger footing given some of the, you know, I think there's some softness you still do see in the office space. But generally, I think that's a trending positive. So it was a balanced decision. I think I would just footnote the comments with, as a management leadership team, you know, I think we tend to continue to be very proactive. I think we see opportunities like this and just take a decisive view on the situations like this. And I think it really sets us up for an even continued momentum and a very strong year at, you know, across both the credit front and across our loan growth that we were talking about earlier.
Speaker #3: So we feel very good there as well . So , you know , and the pricing we certainly you know , obviously had a lot of discussion as a team .
Speaker #3: think the And I pricing represented a good balance of risk for us to to get this to a stronger footing , given some of the , you know , I think the some that's a see trending office space , positive .
Speaker #3: still do but softness , you generally I think in the So it was it was a balanced decision . I think I would footnote just the comments with as a management leadership team , you know , I think we continue to be proactive very .
Speaker #3: I think we see opportunities like this and just take a decisive view on , on , on , on the situations like this .
Speaker #3: And it really sets us up for even continued momentum in a very strong year. You know, across both credit and across, front, our loan growth that we were talking about earlier.
[Analyst] (KBW): Great. I appreciate all that. Michael, maybe just on some of the deposit items, you know, thinking about what could reprice lower, what is the new blended cost of CDs, including some of the promotional items? And as we think about what's repricing over the next couple of quarters, you know, what might we see your time deposit, your cost of time deposit kind of ratchet down to?
Matthew Breese: Great. I appreciate all that. Michael, maybe just on some of the deposit items, you know, thinking about what could reprice lower, what is the new blended cost of CDs, including some of the promotional items? And as we think about what's repricing over the next couple of quarters, you know, what might we see your time deposit, your cost of time deposit kind of ratchet down to?
Speaker #8: Great . I appreciate all that , Michael . Maybe just on on some of the deposit items , you know , thinking about what could what could reprice lower , what is the new blended cost of of CDs , including some of the promotional items .
Speaker #8: And as we think about what's repricing over the next couple of quarters, what might we see your time deposit or your cost of time deposits?
Mike Archer: Yeah, I think over the next three months, essentially about 40% of our CDs are repricing. And I think those are at a blended rate or right around 335 in that neighborhood. So we certainly see some continued opportunity there based on our current CD pricing. And I'd also say, Matt, just over the next 12 months, it's nearly, I think, right around 95% that's repricing. So I think that's one of the levers as we look forward and think about continued upside for us, particularly with, you know, knock on wood and maybe some couple of Fed rate cuts here in the future. We see some, you know, continued opportunity there and optimism as we think about our funding costs and just overall margin from here.
Michael Archer: Yeah, I think over the next three months, essentially about 40% of our CDs are repricing. And I think those are at a blended rate or right around 335 in that neighborhood. So we certainly see some continued opportunity there based on our current CD pricing. And I'd also say, Matt, just over the next 12 months, it's nearly, I think, right around 95% that's repricing. So I think that's one of the levers as we look forward and think about continued upside for us, particularly with, you know, knock on wood and maybe some couple of Fed rate cuts here in the future. We see some, you know, continued opportunity there and optimism as we think about our funding costs and just overall margin from here.
Speaker #8: Kind of wretched down to.
Speaker #4: think Yeah , I over the next three months , essentially about 40% of our CDs are repricing . And I think those are at a blended rate or right 335 in that neighborhood around we .
Speaker #4: certainly see continued So opportunity there based on our current pricing . I'd And also say matches over the next 12 months , it's nearly , I think , right around 95% .
Speaker #4: That's repricing . So I think that's one of the levers as we look forward and think about continued upside for us , particularly with , you know , knock on wood .
Speaker #4: So maybe some a couple of fed rate cuts here in the future . We see some , continued opportunity there . And optimism as we think about our funding costs .
[Analyst] (KBW): Is that the current rate, or the rate on which they'll come back on the books, estimated at 335?
Matthew Breese: Is that the current rate, or the rate on which they'll come back on the books, estimated at 335?
Speaker #4: And just margin from here overall.
Speaker #8: Is that the current rate, or the rate on which they'll come back on the books is estimated at 3.35?
Mike Archer: Sorry. That's the rate they're currently on our books at. And I believe our current rate is, well, it's lower than that off the top of my head. It depends on different tiers and so forth. But I would say it's kind of, you know, 3%, that neighborhood.
Michael Archer: Sorry. That's the rate they're currently on our books at. And I believe our current rate is, well, it's lower than that off the top of my head. It depends on different tiers and so forth. But I would say it's kind of, you know, 3%, that neighborhood.
Speaker #4: Sorry , that that's the that's the rate they're currently on our books at . And I believe our current rate is , is well slower than that .
Speaker #4: Off the top of my head, it depends on different tiers and so forth. But I would say it's kind of 3%, that neighborhood.
[Analyst] (KBW): Great.
Matthew Breese: Great.
Mike Archer: Sorry, I just was going to say, Matt, I think the only thing I would add is just we continue to be focused on relationship pricing there. You know, we're not chasing certainly hot money. That's not relationship price on the CD, you know, from a CD perspective or otherwise. We'll also, you know, where we need to, we'll do exceptions. We'll make sure we retain that relationship, just thinking about the overall deposit and loan makeup of that, you know, of that customer. So we'll be, you know, we're certainly being thoughtful about this as we think about overall total deposits in our balance sheet.
Michael Archer: Sorry, I just was going to say, Matt, I think the only thing I would add is just we continue to be focused on relationship pricing there. You know, we're not chasing certainly hot money. That's not relationship price on the CD, you know, from a CD perspective or otherwise. We'll also, you know, where we need to, we'll do exceptions. We'll make sure we retain that relationship, just thinking about the overall deposit and loan makeup of that, you know, of that customer. So we'll be, you know, we're certainly being thoughtful about this as we think about overall total deposits in our balance sheet.
Speaker #8: Great .
Speaker #4: Maybe. Sorry, I just want to say, I think the thing I would add is just that we continue to be focused on relationship pricing.
Speaker #4: There . know , we're not You chasing certainly hot money . That's not relationship price on the CD . From a CD perspective or or otherwise .
Speaker #4: We'll also where we need to do exceptions . We'll we'll make sure we retain that relationship . Just thinking about the overall deposit and loan makeup of that , of that So we'll customer .
[Analyst] (KBW): Got it. Is there anything significant on the securities front maturing or repricing this year? It still looks like you're about, you know, 150 bps below market rates on securities.
Matthew Breese: Got it. Is there anything significant on the securities front maturing or repricing this year? It still looks like you're about, you know, 150 bps below market rates on securities.
Speaker #4: We're certainly being thoughtful about this as we think about overall total deposits and our balance sheet.
Speaker #8: Got it. Is there anything significant on the security front maturing or repricing this year? It still looks like you're about 150 bps below market rates on securities.
Mike Archer: No, I don't think there's anything significant per se. I mean, our cash flow continues to be pretty steady. I think it's in the neighborhood $10 to 11 million, call it a month. We'll continue to see that and expect that, and that'll continue to run off. I think the ideal opportunity for there is just to continue to be able to take those cash flows and, you know, put it into higher earning assets. Certainly, the ideal situation would be loan growth.
Michael Archer: No, I don't think there's anything significant per se. I mean, our cash flow continues to be pretty steady. I think it's in the neighborhood $10 to 11 million, call it a month. We'll continue to see that and expect that, and that'll continue to run off. I think the ideal opportunity for there is just to continue to be able to take those cash flows and, you know, put it into higher earning assets. Certainly, the ideal situation would be loan growth.
Speaker #4: No , I don't think there's anything significant per se . I mean , our cash flow continues to be pretty pretty steady . I think it's in the neighborhood .
Speaker #4: 10 to 11 million, call it a month. We'll continue to see that and expect that, and continue to—I'll run off.
Speaker #4: I think the ideal opportunity there is just to continue to be able to take those cash flows and put them into higher earning assets.
Speaker #4: And certainly, the ideal situation would be loan growth.
[Analyst] (KBW): And then last one, I would just love to hear about M&A conversations and activity and, you know, maybe frame for us, you know, what you would be interested in in a target, both in terms of sizing and geography?
Matthew Breese: And then last one, I would just love to hear about M&A conversations and activity and, you know, maybe frame for us, you know, what you would be interested in in a target, both in terms of sizing and geography?
Speaker #8: And then last one , I would just love to hear about M&A conversations and activity . And , you know , maybe frame for us what you would be interested in in a target , both in terms of sizing and geography .
Simon Griffiths: Yeah, I think, you know, as Matt, I appreciate the question. And, you know, I think it's, you know, very much a continued path for us, you know, very focused on organic growth and really leveraging the opportunity that New Hampshire and Northway is providing us. And I think there's lots of runway there to continue to grow and accelerate growth in that market. On the M&A side, we continue to be opportunistic. I mean, it needs to be the right deal. We certainly look at contiguous markets. I think that sort of fit is really important to us.
Simon Griffiths: Yeah, I think, you know, as Matt, I appreciate the question. And, you know, I think it's, you know, very much a continued path for us, you know, very focused on organic growth and really leveraging the opportunity that New Hampshire and Northway is providing us. And I think there's lots of runway there to continue to grow and accelerate growth in that market. On the M&A side, we continue to be opportunistic. I mean, it needs to be the right deal. We certainly look at contiguous markets. I think that sort of fit is really important to us.
Speaker #3: Yeah , I think , you know , Matt , as the appreciate question . And , you know , I think it's , you know , very much a continued path for us , you know , very focused on organic growth and really leveraging the opportunity that New Hampshire and North West providing us .
Speaker #3: And I think there's lots of runway there to continue to grow and accelerate growth in that market. On the M&A side, we continue to be opportunistic.
Simon Griffiths: What we really liked about Northway is the template of that business felt very similar to our own, very strong and similar credit kind of mindset, similar sort of geography, and really was allowing us to put the overlay of some of our digital capabilities and our treasury capabilities onto that franchise. And so I think we'd be looking for something similar to that. Obviously, the number of pieces on the chessboard are getting fewer. So, you know, I think we have to, you know, continue to look. But, you know, we're certainly very comfortable with the opportunities around organic growth. But if the right opportunity came along, I think we certainly would certainly be interested.
What we really liked about Northway is the template of that business felt very similar to our own, very strong and similar credit kind of mindset, similar sort of geography, and really was allowing us to put the overlay of some of our digital capabilities and our treasury capabilities onto that franchise. And so I think we'd be looking for something similar to that. Obviously, the number of pieces on the chessboard are getting fewer. So, you know, I think we have to, you know, continue to look. But, you know, we're certainly very comfortable with the opportunities around organic growth. But if the right opportunity came along, I think we certainly would certainly be interested.
Speaker #3: I mean, it needs to be the right deal. We certainly look at contiguous markets. I think that sort of fit is really important to us.
Speaker #3: What we really liked about North Way is the template of that business felt very similar to our own very strong and similar credit kind of mindset , similar sort of geography , and really was allowing us to put the overlay of some of our digital capabilities and our treasury capabilities onto that franchise .
Speaker #3: And so I think we'd be looking for something similar to that. Obviously, the number of pieces on the chessboard are getting fewer.
Speaker #3: So , you know , I think we have to , you continue to to look . But but you know , we're certainly very comfortable with the opportunities around organic growth .
[Analyst] (KBW): I know your footprint and your market stretch is into Northern Massachusetts. Would you consider a deal in Boston at this point, or is that market still a bit too far?
Matthew Breese: I know your footprint and your market stretch is into Northern Massachusetts. Would you consider a deal in Boston at this point, or is that market still a bit too far?
Speaker #3: But if the right opportunity came think along , I we certainly would , would certainly be interested .
Speaker #5: Yeah .
Speaker #8: know your your , I your footprint and your market stretch is into northern Massachusetts . Would you consider a deal in Boston at this point or is that market still a bit too far ?
Simon Griffiths: I think that's stretching the envelope. You know, I know Boston very well, obviously, with my time, 10 or so years down there. I mean, it's certainly a great market, but it's certainly a very different footprint to our own. Never say never, Matt, but, you know, I think that certainly doesn't feel within our sort of sweet spot, if you like. But, you know, but you need to have to look at everything on an individual case-by-case basis.
Simon Griffiths: I think that's stretching the envelope. You know, I know Boston very well, obviously, with my time, 10 or so years down there. I mean, it's certainly a great market, but it's certainly a very different footprint to our own. Never say never, Matt, but, you know, I think that certainly doesn't feel within our sort of sweet spot, if you like. But, you know, but you need to have to look at everything on an individual case-by-case basis.
Speaker #3: I think that's stretching the envelope . You know , I know Boston very well . Obviously with my time ten or so years down there .
Speaker #3: I mean , it's certainly a great market , but it's certainly a different very footprint to our own . Never say never , Matt .
Speaker #3: But , you know , I think that's certainly doesn't feel within our sort of sweet spot . If you like . But , you know , but but you'd have to look at everything on an individual case by case basis .
[Analyst] (KBW): Understood. I'll leave it there. Thanks for taking all my questions.
Matthew Breese: Understood. I'll leave it there. Thanks for taking all my questions.
Simon Griffiths: No, thank you for the questions.
Simon Griffiths: No, thank you for the questions.
Speaker #8: Understood. I'll leave it there. Thanks for taking all my questions.
Operator: As we have no further questions, this concludes our question and answer session. I'd like to turn the conference back over to Simon Griffiths for any closing remarks.
Operator: As we have no further questions, this concludes our question and answer session. I'd like to turn the conference back over to Simon Griffiths for any closing remarks.
Speaker #3: Yeah, thank you for the questions.
Speaker #1: As we have no further questions, this concludes our question and answer session. I would like to turn the conference back over to Simon Griffiths for any closing remarks.
Simon Griffiths: Well, thank you for your time today and continued interest in Camden National Corporation. We truly appreciate your support. Have a great rest of your day.
Simon Griffiths: Well, thank you for your time today and continued interest in Camden National Corporation. We truly appreciate your support. Have a great rest of your day.
Speaker #3: Well , thank you for your time And today . continued interest in Camden National Corporation . We truly appreciate your support . Have a great rest of your day .
Operator: Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
