Q1 2026 Camden National Earnings Call

April 28, 2026

Lucas: Good day, and welcome to Camden National Corporation's Q1 2026 Earnings Conference Call. My name is Lucas, and I will be your operator for today's call. All participants will be in a listen-only mode during today's presentation. Following the presentation, we will conduct a question-and-answer session. If you require operator assistance at any time during the call, please press star then zero. I will now turn the call over to Renée Smyth, Executive Vice President, Chief Experience and Marketing Officer. Go ahead, Renée.

Operator: Good day, and welcome to Camden National Corporation's Q1 2026 Earnings Conference Call. My name is Lucas, and I will be your operator for today's call. All participants will be in a listen-only mode during today's presentation. Following the presentation, we will conduct a question-and-answer session. If you require operator assistance at any time during the call, please press star then zero. I will now turn the call over to Renée Smyth, Executive Vice President, Chief Experience and Marketing Officer. Go ahead, Renée.

Speaker #1: All participants will be in a listen-only mode during today's presentation. Following the presentation, we will conduct a question-and-answer session. If you require operator assistance at any time during the call, please press star then zero.

Speaker #1: I will now turn the call over to Rene Smyth, Executive Vice President, Chief Experience and Marketing Officer. Go ahead, Rene.

Speaker #2: Welcome to Camden National Corporation's first quarter 2026 conference call. Joining us this afternoon are members of Camden National Corporation's executive team: Simon Griffiths, President and CEO; and Mike Archer, Executive Vice President and CFO.

Renée Smyth: Welcome to Camden National Corporation's Q1 2026 conference call. Joining us this afternoon are members of Camden National Corporation's executive team, Simon Griffiths, President and CEO, and Michael Archer, Executive Vice President and CFO. 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 in our Q1 2026 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 presentations include a discussion of non-GAAP financial measures.

Speaker #2: 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 in our first quarter 2026 earnings release issued this morning and in other reports we file with the SEC.

Speaker #2: 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.

Renée Smyth: 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 presentations include a discussion of non-GAAP financial measures. 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: In addition, today's presentations include a discussion of non-GAAP financial measures. 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.

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.

Speaker #2: I am pleased to introduce our host, President and Chief Executive Officer, Simon Griffiths.

Speaker #3: Good afternoon, everyone, and thank you, Rene. Early this morning, we reported strong first quarter results, with net income of $21.9 million and earnings per share of $1.29.

Simon Griffiths: Good afternoon, everyone, and thank you, Renée. Early this morning, we reported strong Q1 results with net income of $21.9 million and earnings per share of $1.29. Excluding non-core acquisition related items from last year, adjusted net income and adjusted diluted EPS increased 39% year over year in Q1 2026. We are pleased that these results were near our record earnings reported last quarter, reflecting the continued value generated by the Northway Financial acquisition and ongoing organic financial improvements across the franchise. Despite macroeconomic headwinds and the seasonal softening we typically experience in Q1, these results demonstrate continued progress against our strategic priorities of growing the franchise, operating with discipline, and adapting our capabilities to better serve our customers and communities.

Speaker #3: Excluding non-core acquisition-related items from last year, adjusted net income and adjusted diluted EPS increased 39% year over year in the first quarter of 2026.

Speaker #3: We are pleased that these results were near our record earnings reported last quarter, reflecting the continued value generated by the Northway Financial acquisition and ongoing organic financial improvements across the franchise.

Speaker #3: Despite macroeconomic headwinds and the seasonal softening we typically experience in the first quarter, these results demonstrate continued progress against our strategic priorities of growing the franchise, operating with discipline, and adapting our capabilities to better serve our customers and communities.

Simon Griffiths: Despite macroeconomic headwinds and the seasonal softening we typically experience in Q1, these results demonstrate continued progress against our strategic priorities of growing the franchise, operating with discipline, and adapting our capabilities to better serve our customers and communities. Our balance sheet remains a source of strength, supported by strong and building capital levels, reserves that we believe are appropriately aligned with loan quality and solid liquidity.

Speaker #3: Our balance sheet remains a source of strength, supported by strong and building capital levels, reserves that we believe are appropriately aligned with loan quality, and solid liquidity.

Simon Griffiths: Our balance sheet remains a source of strength, supported by strong and building capital levels, reserves that we believe are appropriately aligned with loan quality and solid liquidity. We continue to maintain regulatory capital well in excess of required levels and internal targets, with our tangible common equity ratio increasing to 7.64% at quarter's end. Although loan growth was tempered this quarter due primarily to typical seasonality within our markets, we saw continued growth in our home equity loan portfolio, which increased $10.6 million during the quarter. We are encouraged by the continued strengthening of our commercial team, with recent key hires already making meaningful contributions.

Speaker #3: We continue to maintain regulatory capital well in excess of required levels and internal targets, with our tangible common equity ratio increasing to 7.64% at quarter's end.

Simon Griffiths: We continue to maintain regulatory capital well in excess of required levels and internal targets, with our tangible common equity ratio increasing to 7.64% at quarter's end. Although loan growth was tempered this quarter due primarily to typical seasonality within our markets, we saw continued growth in our home equity loan portfolio, which increased $10.6 million during the quarter. We are encouraged by the continued strengthening of our commercial team, with recent key hires already making meaningful contributions.

Speaker #3: Our disciplined credit approach continues to deliver strong asset quality, with past due loans and non-performing assets remaining at very low levels in the first quarter.

Speaker #3: Although loan growth was tempered this quarter due primarily to typical seasonality within our markets, we saw continued growth in our home equity loan portfolio, which increased $10.6 million during the quarter.

Speaker #3: We're encouraged by the continued strengthening of our commercial team, with recent key hires already making meaningful contributions. Our production pipeline reflects healthy customer demand across our markets, even as quarterly balances are impacted by payoffs and seasonality.

Simon Griffiths: Our production pipeline reflects healthy customer demand across our markets, even as quarterly balances are impacted by payoffs and seasonality. As we head into the spring and summer months, loan pipelines continue to build, reinforced by the talent added to our commercial and retail teams. As we build commercial capacity, we are deepening engagement with small and middle market businesses and positioning Camden National as a primary banking partner for a full suite of lending and treasury management solutions. Our deposit base reached USD 5.6 billion at 31 March, representing a 1% increase from the prior quarter. Given the cyclical nature of our deposit flows, we are pleased with this level of growth in Q1 as it reflects our continued success with our high yield savings accounts and recent wins by our commercial and treasury management teams.

Speaker #3: As we head into the spring and summer months, loan pipelines continue to build, reinforced by the talent added to our commercial and retail teams.

Speaker #3: As we build commercial capacity, we are deepening engagement with small and middle-market businesses and positioning Camden National as a primary banking partner for a full suite of lending and treasury management solutions.

Speaker #3: Our deposit base reached $5.6 billion at March 31st, representing a 1% increase from the prior quarter. Given the cyclical nature of our deposit flows, we are pleased with this level of growth in the first quarter, as it reflects our continued success with our high-yield savings account and recent wins by our commercial and treasury management teams.

Simon Griffiths: Our deposit base reached USD 5.6 billion at 31 March, representing a 1% increase from the prior quarter. Given the cyclical nature of our deposit flows, we are pleased with this level of growth in Q1 as it reflects our continued success with our high yield savings accounts and recent wins by our commercial and treasury management teams. We are focused on relationship deposits, attracting deposits through service, convenience, and disciplined pricing.

Speaker #3: We are focused on relationship deposits, attracting deposits through service, convenience, and disciplined pricing. Our goal is to build long-term customer relationships, not simply pursue rate-driven volume.

Simon Griffiths: We are focused on relationship deposits, attracting deposits through service, convenience, and disciplined pricing. Our goal is to build long-term customer relationships, not simply pursue rate-driven volume. At the same time, we remain disciplined towards stewards of our capital, and with strong capital levels, we are focused on balancing reinvestment in the franchise with returning capital to shareholders, including through our recently announced share repurchase program and regular cash dividend. We continue to advance our digital strategy by equipping our bankers with practical time-saving tools. Our internally developed AI platform, Camden IQ, anchors our AI initiatives, which operate within an established governance framework designed to drive productivity while remaining aligned with our moderate risk profile and value-driven, people-centered culture. Recently, we launched Prep IQ, which delivers a real-time integrated view of customer information across platforms, enabling more informed and productive conversations.

Simon Griffiths: Our goal is to build long-term customer relationships, not simply pursue rate-driven volume. At the same time, we remain disciplined towards stewards of our capital, and with strong capital levels, we are focused on balancing reinvestment in the franchise with returning capital to shareholders, including through our recently announced share repurchase program and regular cash dividend. We continue to advance our digital strategy by equipping our bankers with practical time-saving tools.

Speaker #3: At the same time, we remain disciplined stewards of our capital, and with strong capital levels, we are focused on balancing reinvestment in the franchise with returning capital to shareholders, including through our recently announced share repurchase program and regular cash dividend.

Speaker #3: We continue to advance our digital strategy by equipping our bankers with practical, time-saving tools. Our internally developed AI platform, Camden IQ, anchors our AI initiatives, which operate within an established governance framework designed to drive productivity while remaining aligned with our moderate risk profile and value-driven, people-centered culture.

Simon Griffiths: Our internally developed AI platform, Camden IQ, anchors our AI initiatives, which operate within an established governance framework designed to drive productivity while remaining aligned with our moderate risk profile and value-driven, people-centered culture. Recently, we launched Prep IQ, which delivers a real-time integrated view of customer information across platforms, enabling more informed and productive conversations.

Speaker #3: Recently, we launched Prep IQ, which delivers a real-time, integrated view of customer information across platforms, enabling more informed and productive conversations. Loan IQ, another internally developed tool, further enhances efficiency by streamlining access to loan policy and supporting faster, more consistent decision-making, with encouragement by the rapid adoption and early benefits of these tools.

Simon Griffiths: Loan IQ, another internally developed tool, further enhances efficiency by streamlining access to loan policy and supporting faster, more consistent decision making. We're encouraged by the rapid adoption and early benefits of these tools. Expanded use of automation continues to improve efficiency and redeploy capacity toward higher value customer interactions, supporting our disciplined approach to expense management. Overall, our Q1 performance reflects 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 for the remainder of 2026. With that, I'll hand over to Mike to provide additional financial details for the quarter.

Speaker #3: Expanded use of automation continues to improve efficiency and redeploy capacity toward higher-value customer interactions, supporting our disciplined approach to expense management. Overall, our first-quarter performance reflects the effectiveness of our strategy.

Simon Griffiths: Overall, our Q1 performance reflects 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 for the remainder of 2026. With that, I'll hand over to Mike to provide additional financial details for the quarter.

Speaker #3: 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 for the remainder of 2026.

Speaker #3: With that, I'll hand over the mic to provide additional financial details for the quarter.

Speaker #4: Good afternoon. As Simon noted, we had a strong start to the year, delivering solid earnings for the first quarter and, importantly, our financial operating metrics continue to trend favorably, including a reported return on average assets of 1.28%, a return on average tangible equity of 18.17%, and a non-GAAP efficiency ratio of 53.21%.

Michael Archer: Good afternoon. As Simon noted, we had a strong start to the year, delivering solid earnings for Q1, and importantly, our financial operating metrics continue to trend favorably, including a reported return on average assets of 1.28%, a return on average tangible equity of 18.17%, and a non-GAAP efficiency ratio of 53.21%. We continue to be focused on growing the franchise and delivering shareholder value. For Q1, we reported a net interest margin of 3.24%, which was up 20 basis points year-over-year and down 5 basis points from the previous quarter. The decrease on a linked-quarter basis was driven by lower fair value mark accretion income of $956,000.

Michael Archer: Good afternoon. As Simon noted, we had a strong start to the year, delivering solid earnings for Q1, and importantly, our financial operating metrics continue to trend favourably, including a reported return on average assets of 1.28%, a return on average tangible equity of 18.17%, and a non-GAAP efficiency ratio of 53.21%. We continue to be focused on growing the franchise and delivering shareholder value. For Q1, we reported a net interest margin of 3.24%, which was up 20 basis points year-over-year and down five basis points from the previous quarter.

Speaker #4: We continue to be focused on growing the franchise and delivering shareholder value. For the first quarter, we reported a net interest margin of 3.24%, which was up 20 basis points year over year and down 5 basis points from the previous quarter.

Speaker #4: The decrease on a linked-quarter basis was driven by lower fair value market accretion income of $956,000. Our underlying core net interest margin remained stable at 2.92% between periods.

Michael Archer: The decrease on a linked-quarter basis was driven by lower fair value mark accretion income of $956,000. Our underlying core net interest margin remained stable at 2.92% between periods. As we move into Q2, we anticipate net interest margin expansion of two-five basis points on a core basis. Our current interest rate outlook calls for slower and more gradual net interest margin expansion throughout 2026 as the likelihood of further Fed rate cuts has decreased.

Michael Archer: Our underlying core net interest margin remained stable at 2.92% between periods. As we move into Q2, we anticipate net interest margin expansion of 2 to 5 basis points on a core basis. Our current interest rate outlook calls for slower and more gradual net interest margin expansion throughout 2026 as the likelihood of further Fed rate cuts has decreased. Non-interest income fell on a linked quarter basis, largely due to normal seasonality across many of our fee income categories, including debit card, mortgage banking, and swap fee income. Despite market volatility, assets under administration across our wealth and brokerage business remained essentially flat during Q1 and were $2.4 billion at 31 March.

Speaker #4: As we move into the second quarter, we anticipate net interest margin expansion of 2 to 5 basis points on a core basis. Our current interest rate outlook calls for slower and more gradual net interest margin expansion throughout 2026, as the likelihood of further Fed rate cuts has decreased.

Speaker #4: Non-interest income fell on a linked-quarter basis largely due to normal seasonality across many of our fee income categories, including debit card, mortgage banking, and swap fee income.

Michael Archer: Non-interest income fell on a linked quarter basis, largely due to normal seasonality across many of our fee income categories, including debit card, mortgage banking, and swap fee income. Despite market volatility, assets under administration across our wealth and brokerage business remained essentially flat during Q1 and were $2.4 billion at 31st March.

Speaker #4: Despite market volatility, assets under administration across our wealth and brokerage business remained essentially flat during the first quarter and were $2.4 billion at March 31st.

Speaker #4: We continue to be focused on growing our wealth channels, and we are pleased to see AUA grow 11% year over year, with quarterly revenues continuing to grow.

Michael Archer: We continue to be focused on growing our wealth channels, and we are pleased to see AUA grow 11% year over year and quarterly revenues continuing to grow. As we move into Q2, we anticipate non-interest income to rebound to approximately $13 million. On the expense front, non-interest expenses totaled $35.7 million in Q1, down 3% from the previous quarter. For Q2, we anticipate our expense base to normalize as we benefited from the true up of our incentive accrual, bond payout in Q1, and as in prior years, our annual merit cycle and other seasonal costs will be recognized in Q2. We are currently estimating non-interest expense of approximately $37.5 million for Q2. Our credit quality across our loan portfolio continued to be very strong at 31 March.

Michael Archer: We continue to be focused on growing our wealth channels, and we are pleased to see AUA grow 11% year-over-year and quarterly revenues continuing to grow. As we move into Q2, we anticipate non-interest income to rebound to approximately $13 million. On the expense front, non-interest expenses totalled $35.7 million in Q1, down 3% from the previous quarter. For Q2, we anticipate our expense base to normalize as we benefited from the true up of our incentive accrual, bond payout in Q1, and as in prior years, our annual merit cycle and other seasonal costs will be recognized in Q2.

Speaker #4: As we move into the second quarter, we anticipate non-interest income to rebound to approximately $13 million. On the expense front, non-interest expenses totaled $35.7 million in the first quarter, down 3% from the previous quarter.

Speaker #4: For the second quarter, we anticipate our expense base to normalize, as we benefited from the true-up of our incentive accrual upon payout in the first quarter and, as in prior years, our annual merit cycle and other seasonal costs will be recognized in the second quarter.

Speaker #4: We are currently estimating non-interest expense of approximately $37.5 million for the second quarter. Our credit quality across our loan portfolio continued to be very strong at March 31.

Michael Archer: We are currently estimating non-interest expense of approximately $37.5 million for Q2. Our credit quality across our loan portfolio continued to be very strong at 31 March. Non-performing loans were just 22 basis points of total loans, and past due loans were just six basis points of total loans. Net charge-offs for the quarter totalked $506,000 or four basis points of average loans annualized, and were the driver of our Q1 provision expense of $553,000.

Speaker #4: Non-performing loans were just 22 basis points of total loans, and past-due loans were just 6 basis points of total loans. Net charge-offs for the quarter totaled $506,000, or 4 basis points of average loans annualized, and were the driver of our first quarter provision expense of $553,000.

Michael Archer: Non-performing loans were just 22 basis points of total loans, and past due loans were just 6 basis points of total loans. Net charge-offs for the quarter totaled $506,000 or 4 basis points of average loans annualized, and were the driver of our Q1 provision expense of $553,000. Our allowance for credit losses on 31 March was 92 basis points compared to 91 basis points at year-end. Given the strength of our loan portfolio and our overall loan mix, we continue to believe we are appropriately reserved at this level as evidenced by a 4.2 times coverage ratio of non-performing loans at quarter end. Lastly, I wanted to note that our capital continues to rebuild following our acquisition of Northway Financial last year, supporting both balance sheet strength and ongoing capital returns to shareholders.

Speaker #4: Our allowance for credit losses on March 31st was 92 basis points, compared to 91 basis points at year-end. Given the strength of our loan portfolio and our overall loan—excuse me—loan mix, we continue to believe we are appropriately reserved at this level, as evidenced by a 4.2 times coverage ratio of non-performing loans at quarter-end.

Michael Archer: Our allowance for credit losses on 31st March was 92 basis points compared to 91 basis points at year-end. Given the strength of our loan portfolio and our overall loan mix, we continue to believe we are appropriately reserved at this level as evidenced by a 4.2x coverage ratio of non-performing loans at quarter end. Lastly, I wanted to note that our capital continues to rebuild following our acquisition of Northway Financial last year, supporting both balance sheet strength and ongoing capital returns to shareholders.

Speaker #4: Lastly, I wanted to note that our capital continues to rebuild following our acquisition of Northway Financial last year, supporting both balance sheet strength and ongoing capital returns to shareholders.

Speaker #4: During the first quarter of 2026, our tangible book value per share grew 3% to $30.58 at March 31st, which included the repurchase of just over 33,000 shares during the quarter.

Michael Archer: During Q1 2026, our tangible book value per share grew 3% to $30.58 at 31 March, which included the repurchase of just over 33,000 shares during the quarter. Through regular cash dividends and share repurchases, the company returned $8.6 million in capital to its shareholders. This concludes our comments. We'll now open up the call for questions.

Speaker #4: Through regular cash dividends and share repurchases, the company returned $8.6 million in capital to its shareholders. This concludes our comments. We'll now open up the call for questions.

Speaker #5: 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 use a speakerphone, please pick up your handset before pressing the keys.

Lucas: 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. If you use a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then one again. At this time, we will pause momentarily to assemble our roster. Your first question comes from the line of Damon DelMonte from KBW. Damon, please go ahead.

Operator: 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. If you use a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then one again. At this time, we will pause momentarily to assemble our roster. Your first question comes from the line of Damon DelMonte from KBW. Damon, please go ahead.

Speaker #5: To withdraw your question, please press star, then 1 again. At this time, we will pause momentarily to assemble our roster. Your first question comes from the line of Damon Delmont from KBW.

Speaker #5: Damon, please go ahead.

Speaker #6: Good afternoon, guys. I hope everybody's doing well today. First question, Mike, just wanted to talk a little bit about the margin. Got your comments there about 2 to 5 basis points of core expansion.

Damon DelMonte: Good afternoon, guys. I hope everybody's doing well today. First question, Mike, just wanted to talk a little bit about the margin. Got your comments there about, you know, 2 to 5 basis points of core expansion. Could you talk about some of the dynamics behind that? Is that more on the liability side or is that kind of going to be driven by the expected rebound in loan growth as we progress through the year?

Damon DelMonte: Good afternoon, guys. I hope everybody's doing well today. First question, Mike, just wanted to talk a little bit about the margin. Got your comments there about, you know, two-five basis points of core expansion. Could you talk about some of the dynamics behind that? Is that more on the liability side or is that kind of going to be driven by the expected rebound in loan growth as we progress through the year?

Speaker #6: Could you talk about some of the dynamics behind that? Is that more on the liability side, or is that going to be driven by the expected rebound in loan growth as we progress through the year?

Speaker #7: Hey, Damon. Yeah, good question. Yeah, primarily on the liability side. As we get into some of the seasonal months, we anticipate some continued benefit there just from normal deposit flows, if you will.

Michael Archer: Hey, Damon. Good question. Primarily on the liability side. You know, as we get into some of the seasonal months, we anticipate some continued benefit there just from normal deposit flows, if you will. You know, we also, as CDs continue to reprice, there'll be some benefits there, as that continues to roll. I would just say on the derivative front as well, you know, as we get into the back half, you know, we'll start to see some benefit there. Some of our derivatives start to roll off. We do on the asset side. I'd say I'll be at a slower pace. You know, new loan volume certainly is an opportunity for us to continue to squeak out some basis points, if you will, just on the earning asset yield.

Speaker #7: We also, as CDs continue to reprice, there'll be some benefits there. Does that continue to roll? And then I would just say on the derivative front as well, as we get into the back half, we'll start to see some benefit there.

Speaker #7: Some of our derivatives start to roll off. We do, on the asset side, I'd say, roll off at a slower pace. New loan volume certainly is an opportunity for us to continue to squeak out some basis points, if you will, just on the earning asset yield.

Michael Archer: You know, new loan volume certainly is an opportunity for us to continue to squeak out some basis points, if you will, just on the earning asset yield. I would just lastly add there too, Damon, that I think strategically one of the things that we're focused on is just redeploying our investment cash flow where we can. One, to optimize certainly funding, but ideally two, to just fund loan growth on a go-forward basis. Lots of pieces there, but I think that kind of summarizes it.

Michael Archer: I would just lastly add there too, Damon, that I think strategically one of the things that we're focused on is just redeploying our investment cash flow where we can. One, to optimize certainly funding, but ideally two, to just fund loan growth on a go-forward basis. Lots of pieces there, but I think that kind of summarizes it.

Speaker #7: And I would just lastly add there too, Damon, that I think strategically one of the things that we're focused on is just redeploying our investment cash flow where we can: one, to optimize, certainly, funding, but ideally two, to just fund loan growth on a go-forward basis.

Speaker #7: So, lots of pieces there, but I think that kind of summarizes it.

Speaker #6: Got it. Okay, that's helpful. And then from the fair value accretion standpoint, can you— I think it was, what, like $4.5 million or so this quarter?

Damon DelMonte: Got it. Okay. That's helpful. From the fair value accretion standpoint, I think it was what, like $four and a half million or so this quarter? Is that right? It's kind of what's your outlook going forward? Thanks.

Speaker #6: Is that right? And if so, what's your outlook going forward? Thanks.

Speaker #7: Yeah, yeah, no good question. So overall, I think we're about 4.3 million. For the quarter, I would still say 4.5, maybe a little bit north of that, is still a pretty good run rate estimate for us for now.

Michael Archer: Yeah. Yeah, no, good question. Overall, I think we're about $4.3 million for the quarter. I would still say four and a half, maybe a little bit north of that is still a pretty good run rate estimate for us right now.

Michael Archer: Yeah, no, good question. Overall, I think we're about $4.3 million for the quarter. I would still say four and a half, maybe a little bit north of that is still a pretty good run rate estimate for us right now.

Speaker #6: Okay, great. And then with regards to the loan growth and the outlook there, Damon, I heard the callout on the home equity line doing quite well.

Damon DelMonte: Okay, great. With regards to the loan growth and the outlook there, Simon heard the, you know, the call out on the home equity line doing quite well. Can you just talk about some of the other expectations on the commercial side, CRE and C&I, and kind of what, you know, what are some of the key factors behind that, driving that outlook?

Speaker #6: Can you just talk about some of the other expectations on the commercial side's CRE and CNI, and kind of what are some of the key factors behind that, driving that outlook?

Speaker #7: Yeah, thanks, Damon. I think overall we continued to see strength across our business. Obviously, there's a lot of macroeconomic uncertainty out there, but I think the underlying continues to be positive.

Simon Griffiths: Thanks, Damon. You know, I think overall we see continued to see strength across our business. You know, obviously there's a lot of macroeconomic uncertainty out there, but I think the underlying continues to be positive. We certainly see on the commercial side, we see some nice momentum, and certainly see businesses wanting to get out and invest. Obviously as we start to get into the spring, summer's month, that obviously kind of comes into focus as they're getting investments, making investments ready for the summer. We see nice momentum around the resi business as well. We talked about home equity, which I think is strong and continue to see nice momentum on that business as well. You know, I think overall it's a positive outlook.

Speaker #7: We certainly see, on the commercial side, some nice momentum and certainly see businesses wanting to get out and invest. And obviously, as we start to get into the spring and summer months, that obviously kind of comes into focus as they're making investments and getting ready for the summer.

Simon Griffiths: Obviously as we start to get into the spring, summer's month, that obviously kind of comes into focus as they're getting investments, making investments ready for the summer. We see nice momentum around the resi business as well. We talked about home equity, which I think is strong and continue to see nice momentum on that business as well. You know, I think overall it's a positive outlook.

Speaker #7: We see nice momentum around the resi business as well. We talked about home equity, which I think is strong, and continued to see nice momentum on that business as well.

Speaker #7: So, I think overall it's a positive outlook. And we talked a little bit about it in our script, around some of the additions we're making.

Simon Griffiths: You know, we talked a little bit about in our script around some of the additions we're making, some of the strengthening of the team that we've made in the New Hampshire market that also is strong. I was out with them a couple of weeks ago. I'm really excited by the opportunities we're starting to see in the Southern New Hampshire market and the strength of the team there. I think all these pieces together definitely, you know, lead to a positive outlook.

Speaker #7: Some of the strengthening of the team that we've made in the New Hampshire market—that also is strong. I was out with them a couple of weeks ago and am really excited by the opportunities we're starting to see in the southern New Hampshire market and the strength of the team there.

Speaker #7: And I think all these pieces together definitely lead to a positive outlook.

Speaker #6: So, would you kind of expect to get sort of low- to mid-single digits on a full-year basis? Is that a reasonable assumption?

Damon DelMonte: Would you kind of expect to get sort of like low to mid-single digit on a full-year basis? Is that a reasonable assumption?

Speaker #7: Yeah, that feels reasonable. Obviously, this year, lots going on, but I think where we sit right now, I think low sort of single digit, low mid-single digit seems a good range.

Simon Griffiths: Yeah. That feels, that feels reasonable. Obviously this year, lots going on, but I think where we sit right now, I think low sort of single digit low, you know, mid-single digit seems a, a good range.

Speaker #6: Great. Okay, that's all that I had for now. Thanks so much for taking my questions.

Damon DelMonte: Great. Okay, that's all that I had for now. Thanks so much for taking my questions.

Speaker #5: Your next question comes from Steve Moss from Raymond James. Steve, go ahead.

Lucas: Your next question comes from Steve Moss from Raymond James. Steve, go ahead.

Operator: Your next question comes from Steve Moss from Raymond James. Steve, go ahead.

Speaker #8: Good afternoon, guys. Maybe just starting here on or following up on the new hires in New Hampshire. Just kind of curious about the type of talent you're seeing and the opportunity you guys are seeing to hire, and any thoughts on maybe the potential expenses beyond the second quarter, if there's maybe more incremental adds?

Steve Moss: Good afternoon, guys. Maybe just starting here on or following up on the new hires in New Hampshire. Just kind of curious, you know, the type of talent you're seeing and the opportunity you guys are seeing to hire and, you know, any thoughts on maybe the potential expenses beyond Q2 if there's maybe more incremental adds.

Speaker #6: Hey, Steve, thanks for the question. Yeah, we're continuing to be extremely disciplined, as we've talked about in previous calls with you. And our focus is really on self-funding, reinvesting, and finding efficiencies across our business.

Simon Griffiths: Hey, Steve. Thanks for the question. Yeah, we, you know, we continue to be extremely disciplined, as we've talked about in previous calls with you. Our focus is really on self-funding, reinvesting, providing, you know, finding efficiencies across our business. We don't see a material impact to the expense side. You know, some of those hires are certainly replacing existing positions. We see opportunities, obviously, with some of the southern end markets. There's been a lot of disruption, some M&A, we're picking up some great hires from some of those pieces. I think honestly, they're very attracted to the Camden story. I think they see the opportunity here. We, you know, got a lot of ambition to continue to grow.

Speaker #6: So we don't see a material impact to the expense side. Some of those hires are certainly replacing existing positions. We see opportunities, obviously, with some of the southern end markets.

Speaker #6: There's been a lot of disruption or some M&A, and so we're picking up some great hires from some of those pieces. And I think, honestly, they're very attractive to the Camden story.

Simon Griffiths: There's been a lot of disruption, some M&A, we're picking up some great hires from some of those pieces. I think honestly, they're very attracted to the Camden story. I think they see the opportunity here. We, you know, got a lot of ambition to continue to grow. We've obviously got the Northway acquisition, which I think has provided a great platform, and we're continuing to invest. You know, we're seeing that opportunity, and I think continue at a steady measured pace, continue to make those investments throughout this year and into next.

Speaker #6: I think they see the opportunity here. We've got a lot of ambition to continue to grow. We've obviously got the Northway acquisition, which I think has provided a great platform, and we're continuing to invest.

Simon Griffiths: We've obviously got the Northway acquisition, which I think has provided a great platform, and we're continuing to invest. You know, we're seeing that opportunity, and I think continue at a steady measured pace, continue to make those investments throughout this year and into next.

Speaker #6: So we're seeing that opportunity, and I think, continued at a steady, measured pace, we'll continue to make those investments throughout this year and into next.

Speaker #8: Okay, appreciate that color. And then just maybe in terms of—I hear your comments on the home equity and resi stuff—kind of curious on the commercial loan pipeline. Where are you guys seeing pricing these days, and what are you expecting there?

Steve Moss: Okay. Appreciate that color. Then just maybe in terms of, you know, I hear your comments on the, home equity and resi stuff. Kind of curious on the commercial loan pipeline, where are you guys seeing pricing these days and, you know, what you are expecting there?

Speaker #7: Hey, Steve, it's Mike. Yeah, I mean, I would say overall what we're seeing is, I would say, on average, deals kind of in that 6 to low 6s on average.

Michael Archer: Hey, Steve. It's Mike. Yeah, I mean, I would say overall what we're seeing is, you know, I would say on average, you know, deals kind of net 6 to low 6s on average. I mean, certainly, you know, there's certainly a premium, if you will, for just credit quality these days and certainly aggressive and, you know, just market. You know, we as we think about loan growth, we certainly wanna maintain our discipline there. That's kind of who we are and who we've been and continue to be. Overall, yeah, I would say just on a weighted basis, it's probably closer to 6 at this point or a little bit higher.

Michael Archer: Hey, Steve. It's Mike. Yeah, I mean, I would say overall what we're seeing is, you know, I would say on average, you know, deals kind of net six-low six's on average. I mean, certainly, you know, there's certainly a premium, if you will, for just credit quality these days and certainly aggressive and, you know, just market. You know, we as we think about loan growth, we certainly want to maintain our discipline there. That's kind of who we are and who we've been and continue to be. Overall, yeah, I would say just on a weighted basis, it's probably closer to sx at this point or a little bit higher.

Speaker #7: I mean, certainly, there's a premium, if you will, for just credit quality these days, and certainly that's aggressive in markets. But as we think about loan growth, we certainly want to maintain our discipline there.

Speaker #7: And that's kind of who we are, and who we've been and continue to be. But overall, yeah, I would say just on a weighted basis, it's probably closer to 6 at this point, or a little bit higher.

Speaker #8: Okay. Appreciate the color there. And maybe just one last one. On M&A here, you've integrated the Northway deals, Simon, and done a good job with it.

Steve Moss: Okay. Appreciate the color there. Maybe just one last one, you know, on M&A here. You know, you've in-integrated the Northway deal, Simon, and, you know, done a good job with it. Maybe just, you know, updated thoughts on, you know, talks and what you're thinking on the deal front here these days.

Steve Moss: Okay. Appreciate the color there. Maybe just one last one, you know, on M&A here. You know, you've integrated the Northway deal, Simon, and, you know, done a good job with it. Maybe just, you know, updated thoughts on, you know, talks and what you're thinking on the deal front here these days.

Speaker #8: Maybe just some updated thoughts on talks, and what you’re thinking on the deal front here these days.

Speaker #7: Yeah, I think on the effect—you just broke up a little bit there, Steve—but I think you said 'cost update on the costs.'

Simon Griffiths: Yeah. I think in fact, you just broke up a little bit there, Steve, but I think you said costs, update on the costs. Is that correct?

Speaker #7: Is that correct?

Steve Moss: No. On M&A activity and just the thoughts around, you know, deal activity post, you know, now that you've integrated Northway, been doing well here with the transactions. Kind of curious where M&A discussions are, and just updated thoughts there.

Speaker #8: No, on M&A activity and just the thoughts around deal activity post, now that you've integrated Northway and you're doing well here with the transaction, just kind of curious where M&A discussions are.

Speaker #8: And just updated thoughts there.

Speaker #7: Roll M&A. Overall M&A, yeah. I mean, just to continue to recap, I mean, I think Northway obviously went very, very well. We're very proud of the work there.

Michael Archer: Overall M&A.

Simon Griffiths: Overall M&A. Yeah. You know, I mean, just to, you know, continue to recap, I mean, I think, you know, Northway obviously went very, very well. We're very proud of the work there. I was out in New Hampshire last, you know, last week or so, and just seeing just a lot of energy from our clients, from our customers. Just really proud of the New Hampshire teams and the way we're really sort of getting some traction in the markets and excitement to be part of the Camden franchise. I think on a look forward, Steve, you know, we continue to look for, you know, we've said publicly, you know, we're certainly interested in opportunities, but it has to be the right opportunities for Camden.

Speaker #7: And I was out in New Hampshire last week or so, and just seeing a lot of energy from our clients, from our customers. Just really proud of the New Hampshire teams and the way we've really sort of been getting some traction in the markets, and excitement to be part of the Camden franchise.

Speaker #7: I think, on a look forward, Steve, we continue to look for—we've said publicly—we're certainly interested in opportunities, but it has to be the right opportunities for Camden.

Simon Griffiths: I think on a look forward, Steve, you know, we continue to look for, you know, we've said publicly, you know, we're certainly interested in opportunities, but it has to be the right opportunities for Camden. We feel like we've got tremendous opportunities on the organic growth front. We're seeing great capital rebuild. We're seeing, you know, this has been highly accretive from an income perspective and lots of opportunities there. We don't feel pressured to make a deal but, you know, we're certainly looking.

Speaker #7: We feel like we've got tremendous opportunities on the organic growth front. We're seeing great capital rebuild. We're seeing this has been highly accretive from an income perspective, and lots of opportunities there.

Simon Griffiths: We feel like we've got tremendous opportunities on the organic growth front. We're seeing great capital rebuild. We're seeing, you know, this has been highly accretive from an income perspective and lots of opportunities there. We don't feel pressured to make a deal but, you know, we're certainly looking. We've talked about contiguous markets as, you know, sticking to our DNA as an organization and really organizations with a similar sort of footprint and feel and look to Camden National Bank and a culture that really would assimilate well. We're certainly, you know, open to those opportunities, but not feeling pressured and certainly not gonna overreach at the same time.

Speaker #7: So, we don't feel pressured to make a deal, but we're certainly looking. We've talked about contiguous markets as sticking to our DNA as an organization, and really organizations with a similar sort of footprint and feel and look to Camden National Bank, and a culture that really would assimilate well.

Simon Griffiths: We've talked about contiguous markets as, you know, sticking to our DNA as an organization and really organizations with a similar sort of footprint and feel and look to Camden National Bank and a culture that really would assimilate well. We're certainly, you know, open to those opportunities, but not feeling pressured and certainly not going to overreach at the same time. It's a balanced approach, a thoughtful approach, and one where we're going to continue to obviously really focus on the core business and driving the performance and continuing that path towards top quartile returns.

Speaker #7: So we're certainly open to those opportunities, but not feeling pressured, and certainly not going to overreach at the same time. So, it's a balanced approach.

Simon Griffiths: It's a balanced approach, a thoughtful approach, and one where we're gonna continue to obviously really focus on the core business and driving the performance and continuing that path towards top quartile returns.

Speaker #7: A thoughtful approach, and one where we're going to continue to obviously really focus on the core business and driving the performance, and continuing that path towards top quartile returns.

Speaker #8: Great. I appreciate all the color there, Simon and Mike, and I'll step back in the queue. Thank you very much.

Steve Moss: Great. I appreciate all the color there, Simon and Mike, and I'll step back in the queue. Thank you very much.

Speaker #7: Thanks, Steve. Appreciate it.

Simon Griffiths: Thanks, Steve. Appreciate it.

Speaker #5: Your next question comes from the line of Matthew Breeze from Stevens. Matthew, go ahead.

Lucas: Your next question comes from the line of Matthew Breese from Stephens. Matthew, go ahead.

Operator: Your next question comes from the line of Matthew Breese from Stephens. Matthew, go ahead.

Speaker #9: Hey, good afternoon. Mike, I wanted to drill into your comment on margin expansion being driven by the liability side. Could you just provide a little bit more color on the areas where you see the most potential for improvement? And one thing I would just focus in on was the cost of CDs at 3.17%, which seems like a pretty low starting point to begin with.

Matthew Breese: Hey, good afternoon.

Michael Archer: Matt

Matthew Breese: I wanna drill into your comment on margin expansion being driven by the liability side. Could you just provide a little bit more color on the areas where you see the most potential for improvement? One thing I was just focusing on was the cost of CDs at 3.17 seems like a pretty low starting point to begin with. Where else do you see the opportunities?

Michael Archer: Matt

Matthew Breese: I want to drill into your comment on margin expansion being driven by the liability side. Could you just provide a little bit more color on the areas where you see the most potential for improvement? One thing I was just focusing on was the cost of CDs at 3.17 seems like a pretty low starting point to begin with. Where else do you see the opportunities?

Speaker #9: Where else do you see the opportunities?

Speaker #7: Yeah, I mean, I think, Matt, as you know, certainly as we think about second quarter and beyond, I mean, part of the opportunity for us is just the remix of our deposit base.

Michael Archer: I mean, I think, you know, Matt, as you know, certainly as we think about Q2 and beyond, I mean, part of the opportunity for us is just the remix of our deposit base as we get into the spring, summer season. You know, generally speaking, I would say, you know, call it late May into June, we start to really see some of the seasonal deposits come in. You know, we fully anticipate that to be the case again this year. No reason to believe that wouldn't be the case. We certainly see opportunity there. We also have, you know, as I mentioned, we have some derivatives, I don't know the number off the top of my head here, that are, you know, rolling off.

Speaker #7: As we get into the spring, summer season—generally speaking, I would say call it late May into June—we start to really see some of the seasonal deposits come in.

Speaker #7: So we fully anticipate that to be the case. Again, this year, no reason to believe that wouldn't be the case. So we certainly see opportunity there.

Michael Archer: We certainly see opportunity there. We also have, you know, as I mentioned, we have some derivatives, I don't know the number off the top of my head here, that are, you know, rolling off. Some of those have served us really well over the last few years, just given the, you know, the Fed position today. We're a little bit underwater, so as we think about opportunity there continues to be some opportunity.

Speaker #7: We also have, as I mentioned, we have some derivatives. I don't know the number off the top of my head here that are rolling off, but some of those have served us really well over the last few years, just given the Fed position today.

Michael Archer: Some of those have served us really well over the last few years, just given the, you know, the Fed position today. We're a little bit underwater, so as we think about opportunity there continues to be some opportunity. You know, I think overall, you know, as you think about the funding base, we do think that, you know, there's probably that 2 to 5 basis points is where we can see some margin expansion here in Q2.

Speaker #7: We're a little bit underwater. So, as we think about opportunity there, there continues to be some opportunity, I think overall. As we think about the funding base, we do think that there's probably that 2 to 5 basis points where we can see some margin expansion here in the second quarter.

Michael Archer: You know, I think overall, you know, as you think about the funding base, we do think that, you know, there's probably that two-five basis points is where we can see some margin expansion here in Q2. I think we feel pretty good that as we continue even with the Fed holding as they are, that as we get to the H2, there could be an opportunity where we start approaching 3% on a margin, core margin basis. We do see core margin expansion here over the next few quarters.

Speaker #7: And I think we feel pretty good that as we continue, even with the Fed holding as they are, as we get to the back half of the year, there could be an opportunity where we start approaching 3% on a core margin basis.

Michael Archer: I think we feel pretty good that as we continue even with the Fed holding as they are, that as we get to the H2, there could be an opportunity where we start approaching 3% on a margin, core margin basis. We do see core margin expansion here over the next few quarters.

Speaker #7: So, we do see core margin expansion here over the next few quarters.

Speaker #9: Great. And then for loan growth this quarter, how much of what we saw, or a bit of the sluggishness on the loan growth front, how much of that was seasonality?

Matthew Breese: Great. You know, for loan growth this quarter, how much of what we saw or a bit of the sluggishness on the loan growth front, how much of that was seasonality? How much of that do you think was competition? We've heard a lot about prepays and prepayment and what gives you the confidence, you know, maybe some color on the pipeline that we'll get back into that low to mid-single digit range for the remainder of the year?

Speaker #9: How much of that do you think was competition? We've heard a lot about prepays and prepayment. And what gives you the confidence—maybe some color on the pipeline—that we'll get back into that low- to mid-single-digit range for the remainder of the year?

Michael Archer: Yeah, no, I think, I mean, we're seeing pipelines build, Matt. I mean, I think that gives us confidence. I think, you know, just on a year-over-year basis, we're seeing it. I think as, you know, Simon had mentioned in his comments, we really added some strong talent, just across the New Hampshire franchise and really being a, you know, really just activate that this year. You know, it's an incredible opportunity for the organization. At the same time, we've made some nice adds just to our Maine franchise and some of our, you know, markets that we've been in for quite some time, and we see some upside there. Certainly on the retail franchise, we, you know, we've had a nice strategy that we're executing on.

Speaker #7: Yeah, no, I think—I mean, we're seeing pipelines build. I mean, I think that gives us confidence. I think just on a year-over-year basis, we're seeing it.

Speaker #7: I think, as Simon had mentioned in his comments, we really added some strong talent just across the New Hampshire franchise. And really, being able to just activate that this year is an incredible opportunity for the organization.

Speaker #7: At the same time, we've made some nice ads just to our main franchise and some of our markets that we've been in for quite some time.

Michael Archer: At the same time, we've made some nice adds just to our Maine franchise and some of our, you know, markets that we've been in for quite some time, and we see some upside there. Certainly on the retail franchise, we, you know, we've had a nice strategy that we're executing on. We continue to add, you know, bankers in that space as well, that are out, you know, selling residential mortgages, home equities. It's been really strong for us, and small business.

Speaker #7: And we see some upside there. Certainly on the retail franchise, we've had a nice strategy that we're executing on. We continue to add bankers in that space as well, that are out selling residential mortgages and home equities.

Michael Archer: We continue to add, you know, bankers in that space as well, that are out, you know, selling residential mortgages, home equities. It's been really strong for us, and small business. I think as we, you know, think about our opportunity for low to mid-single digit growth here on the loan front, I think the reality is that, yes, the first quarter is normally sluggish for us. I think we're starting to see the pipelines build. And you know, generally speaking, the back half of the year is kind of where we start to see it, you know, typically play out, if you will. Again, all signs point to that at this point. We still feel like that's a pretty good range estimate.

Speaker #7: It's been really strong for us, and small business. So I think, as we think about our opportunity for low- to mid-single-digit growth here on the loan front, the reality is, yes, the first quarter is normally sluggish for us.

Michael Archer: I think as we, you know, think about our opportunity for low to mid-single digit growth here on the loan front, I think the reality is that, yes, the Q1 is normally sluggish for us. I think we're starting to see the pipelines build. And you know, generally speaking, the back half of the year is kind of where we start to see it, you know, typically play out, if you will. Again, all signs point to that at this point. We still feel like that's a pretty good range estimate.

Speaker #7: I think we're starting to see the pipelines build. And, generally speaking, the back half of the year is kind of where we start to see it typically play out, if you will.

Speaker #7: But again, all signs point to that at this point. So we still feel like that's a pretty good range estimate.

Speaker #9: Got it. Okay, and then two others for me. One, just focusing on the resi loan category—what's the current breakdown between loans being sold into the secondary market versus held for balance sheet at this point?

Matthew Breese: Got it. Okay. Two others from me, one just focusing on the resi loan category. What's the current breakdown between loans being sold into the secondary market versus held for balance sheet at this point? When do we start to see that portfolio? You know, is that a growth category for you or more one that we should think about as stable?

Speaker #9: And when do we start to see that portfolio? Is that a growth category for you, or more one that we should think about as stable?

Speaker #7: Yeah, I would say, overall, Matt, we're generally plus or minus 50/50 in that neighborhood. Certainly, quarter to quarter, it will move a little bit.

Michael Archer: Yeah, I would say overall, Matthew, we're generally plus or minus 50/50 in that neighborhood. Certainly quarter to quarter it will, you know, could move a little bit. Generally speaking, that's kind of how we're thinking about it. I think overall for the resi portfolio, I would say we're definitely on, you know, thinking about probably slower growth and more relationship-based growth is what I would say. Less, you know, less just transactional. Just in thinking about how we want to position our loan portfolio and balance sheet over time. Certainly I wouldn't say our expectation is it's flat. Certainly I don't think it's also, you know, growing at the mid-single-digit level isn't the expectation.

Michael Archer: Yeah, I would say overall, Matthew, we're generally plus or minus 50/50 in that neighbourhood. Certainly quarter-to-quarter it will, you know, could move a little bit. Generally speaking, that's kind of how we're thinking about it. I think overall for the resi portfolio, I would say we're definitely on, you know, thinking about probably slower growth and more relationship-based growth is what I would say.

Speaker #7: But generally speaking, that's kind of how we're thinking about it. I think overall for the resi portfolio, I would say we're definitely thinking about probably slower growth and more relationship-based growth, is what I would say.

Speaker #7: Less just transactional. Just in thinking about how we want to position our loan portfolio and balance sheet over time. Certainly, I wouldn't say our expectation is it's flat.

Michael Archer: Less, you know, less just transactional. Just in thinking about how we want to position our loan portfolio and balance sheet over time. Certainly I wouldn't say our expectation is it's flat. Certainly I don't think it's also, you know, growing at the mid-single-digit level isn't the expectation.

Speaker #7: But certainly, I don't think it felt so growing at the mid-single-digit level as the expectation.

Speaker #9: Okay. And then last one for me is just, historically, I don't know if I remember Camden being much of a prolific repurchaser of your own stock.

Matthew Breese: Okay. Last one for me is just, you know, historically, I, I don't know if I remember Camden being much of a prolific, you know, repurchaser of your own stock. You talked a little bit about that in your opening comments. To what extent might that fit in on a go-forward basis? How much in the way of share repurchases should we be thinking about?

Speaker #9: You talked a little bit about that in your opening comments. To what extent might that fit in on a go-forward basis? How much in the way of share repurchases should we be thinking about?

Speaker #7: Yeah, it's a good question. I would say that we're kind of—I mean, we kind of talk internally about one of our challenges, kind of jokingly, is we generate lots of capital, and we have to put it to work, Matt.

Michael Archer: Yeah, it's a good question. I would say that, you know, I mean, we, you know, we kind of talk internally about one of our, you know, challenges kind of jokingly is we generate lots of capital, and we have to put it to work, Matt. I think, you know, just in terms of organic growth that we're focused on positioning our capital level so we can be opportunistic, as, you know, as that occurs, as well as deploying it in terms of share repurchase and dividends. I think it's gonna play into the mix. I would say on the share repurchase front, again, I, you know, I don't think I can sit here and quote a number of what we're targeting, but we'll continue to be opportunistic.

Speaker #7: So I think, just in terms of organic growth that we're focused on, positioning our capital level so we can be opportunistic as that occurs, as well as deploying it in terms of share repurchase and dividends, I think that's going to play into the mix.

Michael Archer: I think it's going to play into the mix. I would say on the share repurchase front, again, I, you know, I don't think I can sit here and quote a number of what we're targeting, but we'll continue to be opportunistic. The shares that we did buy over this past quarter, I would say we saw a dip in our share price. For us, you know, given the valuation of that made sense. I would envision that we continue to play that out a little bit over the coming quarters. Again, I think it'll depend in large part on our share price.

Speaker #7: I would say on the share repurchase front, again, I wouldn’t—I don’t think I can sit here and quote a number of what we’re targeting.

Speaker #7: But we'll continue to be opportunistic. The shares that we did buy over this past quarter would say we saw a dip in our share price.

Michael Archer: The shares that we did buy over this past quarter, I would say we saw a dip in our share price. For us, you know, given the valuation of that made sense. I would envision that we continue to play that out a little bit over the coming quarters. Again, I think it'll depend in large part on our share price.

Speaker #7: And for us, given the valuation of that, that made sense. So I would envision that we continue to play that out a little bit over the coming quarters.

Speaker #7: But again, I think it’ll depend, in large part, on our share price.

Speaker #9: All right. I appreciate all that. I'll leave it there. Thank you. Your next question comes from the line of Daniel Cardenas from Breen Capital.

Matthew Breese: All right. I appreciate all that. I'll leave it there. Thank you.

Lucas: Your next question comes from the line of Daniel Cardenas from Brean Capital. Daniel, go ahead.

Operator: Your next question comes from the line of Daniel Cardenas from Brean Capital. Daniel, go ahead.

Speaker #9: Daniel, go ahead.

Speaker #8: Hey, good afternoon, guys. Maybe if you could give me a little bit of color on competitive factors, both on the loan side and the deposit side—whether they've become more intense or less intense, and if competition is rational.

Daniel Cardenas: Hey, good afternoon, guys. Maybe if you could give me a little bit of color on competitive factors, both on the loan side and the deposit side, whether they've become more intense or less intense and if competition is rational.

Speaker #7: Yeah, thank you, Daniel. Appreciate the question. Yeah, I would say, overall, we definitely felt a pickup in competition over the last three to six months.

Simon Griffiths: Yeah. Thank you, Daniel. Appreciate the question. Yeah, I would say overall, you know, we definitely felt a pick-up in competition over the last 3, 6 months. Having said all that, I think there's still plenty of room out there when, you know, we can demonstrate the tremendous value we can bring around our products, around our value of our people, conversations, advice, treasury, and other capabilities. I think it's certainly opportunities are to be had, but there's definitely a feeling that there's been a pick-up in pressure and focus on assets over the last, let's say, you know, 6 months or so. That certainly showed up in a lot of the pricing pressures we've talked about.

Simon Griffiths: Yeah. Thank you, Daniel. Appreciate the question. Yeah, I would say overall, you know, we definitely felt a pick-up in competition over the last three, six months. Having said all that, I think there's still plenty of room out there when, you know, we can demonstrate the tremendous value we can bring around our products, around our value of our people, conversations, advice, treasury, and other capabilities. I think it's certainly opportunities are to be had, but there's definitely a feeling that there's been a pick-up in pressure and focus on assets over the last, let's say, you know, six months or so.

Speaker #7: Having said all that, I think there's still plenty of room out there when we can demonstrate the tremendous value we can bring around our products, around the value of our people, conversations, advice, treasury, and other capabilities.

Speaker #7: So, I think certainly opportunities are to be had, but there's definitely a feeling that there's been a pickup in pressure and focus on assets over the last, I'd say, six, six months or so.

Speaker #7: And that certainly showed up in a little bit of the pricing pressure that we've talked about. Having said all that, as I say, I do see lots of positives for the particularly New Hampshire and the Maine markets.

Simon Griffiths: That certainly showed up in a lot of the pricing pressures we've talked about. Having said all that, as I say, I do see, you know, lots of positives for the particularly New Hampshire and the Maine markets. You're seeing customers wanting to get out, invest, see great opportunities. We're having lots of active conversations, and seeing that kind of sharpen our pipelines, which is certainly, you know, in a good position, I think, heading into Q2. Overall, you know, we feel well-positioned. I think the talent we're bringing in as well gives us an added, you know, kind of a little bit of a tailwind there and, I think gives us momentum. Looking forward to Q2 and the rest of the year.

Simon Griffiths: Having said all that, as I say, I do see, you know, lots of positives for the particularly New Hampshire and the Maine markets. You're seeing customers wanting to get out, invest, see great opportunities. We're having lots of active conversations, and seeing that kind of sharpen our pipelines, which is certainly, you know, in a good position, I think, heading into Q2. Overall, you know, we feel well-positioned. I think the talent we're bringing in as well gives us an added, you know, kind of a little bit of a tailwind there and, I think gives us momentum. Looking forward to Q2 and the rest of the year.

Speaker #7: You're seeing customers wanting to get out and invest, see great opportunities, and we're having lots of active conversations. We're seeing that kind of sharpen our pipelines, which is certainly a good position, I think, heading into the second quarter.

Speaker #7: So overall, we feel well positioned. I think we're the talent we're bringing in as well gives us an added kind of a little bit of a tailwind there.

Speaker #7: And I think gives us momentum so looking forward to the second quarter and the rest of the year.

Speaker #8: Okay. Then, I mean, what are your customers telling you in terms of the current economic environment? Are they becoming perhaps a little bit more cautious, or is it more business as usual?

Daniel Cardenas: Okay. Are, I mean, what are your customers telling you in terms of, you know, the current economic environment? Are they becoming perhaps a little bit more cautious, or is it more business as usual?

Speaker #7: I would say it's a mixed picture. I would say definitely, consumer spend remains steady. We have a stable outlook in terms of the consumer, which obviously impacts a lot of U.S. businesses.

Simon Griffiths: I'd say it's a mixed picture. You know, I would say definitely consumer spend remains, you know, steady. You know, have a stable outlook in terms of the consumer, which obviously impacts a lot of us businesses. You know, I'd say business investment is certainly measured, but, you know, at a positive pace. I was at a business in the Mid-Coast recently, they're looking to expand, not slowing expansion, certainly on the front foot. I think we're seeing that across clients. You know, I think there's certainly some pockets of particular strength, Daniel. Certainly areas like a couple of other areas just given demographics and other kind of pieces that we see, you know, certainly some momentum there. We don't see AI spend showing up with our customers.

Speaker #7: I'd say business investment is certainly measured, but at a positive pace. I was at a business in the Mid-Coast recently, and they're looking to expand—not slowing expansion—and certainly on the front foot.

Speaker #7: And I think we're seeing that across clients. I think there's certainly some pockets of particular strength, Daniel—certainly areas like saving, a couple of other areas, just given demographics and other kinds of pieces that we see, certainly some momentum there.

Simon Griffiths: I think we're seeing that across clients. You know, I think there's certainly some pockets of particular strength, Daniel. Certainly areas like a couple of other areas just given demographics and other kind of pieces that we see, you know, certainly some momentum there. We don't see AI spend showing up with our customers. It's really on core capabilities, core infrastructure, capital spend that really is, you know, where the focus is. You know, it's a tight labour market, so that's certainly still a factor that plays in the Maine market, New Hampshire market.

Speaker #7: We don't see AI spend showing up with our customers. It's really on core capabilities—core infrastructure, capital spend—that really is where the focus is.

Simon Griffiths: It's really on core capabilities, core infrastructure, capital spend that really is, you know, where the focus is. You know, it's a tight labor market, so that's certainly still a factor that plays in the Maine market, New Hampshire market. I think overall it's a, you know, mixed picture. Certainly when we talk to some of our tourism-related, hotel-related kind of areas, you know, they see a certainly decent start, good start to the year in terms of bookings and their outlook for the summer months. You know, how that plays out obviously with fuel costs and other factors is gonna be an interesting play. Certainly Maine, you know, does well. You know, it's a steady when there's these macroeconomic pressures or other factors, Maine is always steady down the middle of the fairway.

Speaker #7: And it's a tight labor market, so that's certainly still a factor that plays in the main market, New Hampshire market. So I think overall, it's a mixed picture.

Simon Griffiths: I think overall it's a, you know, mixed picture. Certainly when we talk to some of our tourism-related, hotel-related kind of areas, you know, they see a certainly decent start, good start to the year in terms of bookings and their outlook for the summer months. You know, how that plays out obviously with fuel costs and other factors is going to be an interesting play. Certainly Maine, you know, does well. You know, it's a steady when there's these macroeconomic pressures or other factors, Maine is always steady down the middle of the fairway.

Speaker #7: Certainly, when we talk to some of our tourism-related, hotel-related kind of areas, they see as certainly decent start, good start to the year in terms of bookings, and their outlook for the summer months.

Speaker #7: How that plays out, obviously, with fuel costs and other factors, is going to be an interesting play. But certainly, Maine does well. It's steady when there are these macroeconomic pressures or other factors.

Speaker #7: Maine is always steady down the middle of the fairway. We don't see the highs of the highs, and we don't see the lows of the lows.

Simon Griffiths: We don't see the highs of the highs, and we don't see the lows of the lows. We see that sort of solid kind of middle ground and stability, and I think that's gonna show up well this year, particularly given obviously some of those macroeconomic concerns that are out there right now. Overall, bit of a mixed picture, but generally I think quite favorable and I think looks, sets us up for a good year.

Simon Griffiths: We don't see the highs of the highs, and we don't see the lows of the lows. We see that sort of solid kind of middle ground and stability, and I think that's going to show up well this year, particularly given obviously some of those macroeconomic concerns that are out there right now. Overall, bit of a mixed picture, but generally I think quite favorable and I think looks, sets us up for a good year.

Speaker #7: So we see that sort of solid, kind of middle ground and stability. And I think that's going to show up well this year, particularly given, obviously, some of those macroeconomic concerns that are out there right now.

Speaker #7: So, overall, a bit of a mixed picture, but generally, I think quite favorable. And I think it sets us up for a good year.

Speaker #8: Excellent. All right. And then, what are line utilization rates looking like right now on your commercial portfolio? And how does that compare to, say, six months or so ago?

Daniel Cardenas: Excellent. All right. What are line utilization rates looking like right now on your, on your commercial portfolio? How does that compare to say six months or so ago?

Speaker #7: Sorry. Sorry, Daniel. So, did you say the commercial utilization?

Christopher Hutchinson: Sorry, Daniel. Did you say the commercial utilization?

Speaker #8: Yes.

Daniel Cardenas: Yes.

Speaker #7: Yeah, I think so. We're kind of in that 35–40% neighborhood. And, generally speaking—I know you didn't ask—but same on the home equity front as well.

Christopher Hutchinson: Yeah, I think, so we're kind of in that 35%, 40% neighborhood. Generally speaking, I know you didn't ask, but same on the home equity front as well.

Christopher Hutchinson: Yeah, I think, so we're kind of in that 35%, 40% neighbourhood. Generally speaking, I know you didn't ask, but same on the home equity front as well.

Speaker #8: Okay, all right. And the last question for me, just as I think about fee income growth in 2026—I know Q1 can be a little seasonally soft—but is a mid-single-digit type of growth on a year-over-year basis an achievable objective on the fee income side?

Daniel Cardenas: Okay. All right, Last question from me, just as I think about fee income growth in 2026. I know Q1 can be a little seasonally soft, you know, is a mid-single digit type of growth on a year-over-year basis an achievable objective on the fee income side?

Speaker #7: Yeah, yeah, I think that's fair, Daniel. Yeah. I would just ask Daniel, if I could—sorry, go on, Daniel.

Christopher Hutchinson: Yeah. Yeah. I think that's fair, Daniel.

Daniel Cardenas: Okay.

Simon Griffiths: Yeah. I would just ask Daniel if I could. Sorry. Go on, Daniel.

Speaker #8: Thank you. Go ahead.

Daniel Cardenas: Go ahead.

Speaker #7: I was just going to add that we have a, I think, a strong wealth strategy. Obviously, there's a lot of moving parts in the fee income, and there's obviously the consumer fee income is a key part of that.

Simon Griffiths: I was just gonna add that, you know, we have a, I think, strong wealth strategy. Obviously, there's a lot of moving parts in the fee income, and, you know, there's obviously the consumer fee income is a key part of that. Just generally, you know, we're investing in that business, both in the CFC business and the wealth business. We, you know, we added a couple of key hires last year, and that's certainly building out some important markets for us, and we're seeing some nice growth. You know, we see particularly on the CFC side and our brokerage business, we saw some very nice growth last year, and that momentum I think will continue this year.

Simon Griffiths: I was just going to add that, you know, we have a, I think, strong wealth strategy. Obviously, there's a lot of moving parts in the fee income, and, you know, there's obviously the consumer fee income is a key part of that. Just generally, you know, we're investing in that business, both in the CFC business and the wealth business. We, you know, we added a couple of key hires last year, and that's certainly building out some important markets for us, and we're seeing some nice growth.

Speaker #7: But just generally, we're investing in that business, both in the CFC business and the wealth business. And we added a couple of key hires last year, and that's certainly building out some important markets for us.

Speaker #7: And we're seeing some nice growth. We see, particularly on the CFC side, our brokerage business, we saw some very nice growth last year in that momentum.

Simon Griffiths: You know, we see particularly on the CFC side and our brokerage business, we saw some very nice growth last year, and that momentum I think will continue this year. Then the wealth business as well, seeing some, you know, high single-digit growth there certainly in Q1 and some good momentum. I think overall it's a business, you know, that, you know, Chris is going to add, of course, we have the resi business as well, which is a real core strength of Camden.

Speaker #7: I think we'll continue this year, and then the wealth business as well—seeing some high single-digit growth there, certainly in the first quarter, and some good momentum.

Simon Griffiths: Then the wealth business as well, seeing some, you know, high single-digit growth there certainly in Q1 and some good momentum. I think overall it's a business, you know, that, you know, Chris is going to add, of course, we have the resi business as well, which is a real core strength of Camden. Those pieces. Then we see some nice fees coming out of the commercial business as well on the swap front. I think overall, you know, we're it was a little bit of a soft start to the year. You know, certainly as we get into Q2, Q3, Q4, I think we can see some momentum from there moving forward.

Speaker #7: So, I think overall, it's a business that is going to add. Of course, we have the resi business as well, which is a real core strength of Camden.

Speaker #7: So those pieces, and then we see some nice fees coming out of the commercial business as well on the swap front. So I think overall, it was a little bit of a soft start to the year.

Simon Griffiths: Those pieces. Then we see some nice fees coming out of the commercial business as well on the swap front. I think overall, you know, we're it was a little bit of a soft start to the year. You know, certainly as we get into Q2, Q3, Q4, I think we can see some momentum from there moving forward.

Speaker #7: But certainly, as we get into the second, third, fourth quarter, I think we can see some momentum from there, moving forward.

Speaker #8: Okay, great. Thank you. That's all I have for right now.

Daniel Cardenas: Okay, great. Thank you. That's all I have for right now.

Speaker #9: 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.

Lucas: 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.

Operator: 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.

Speaker #7: Thank you for your time today and your continued interest in Camden National Corporation. We truly appreciate your support. Have a great day.

Simon Griffiths: Thank you for your time today and your continued interest in Camden National Corporation. We truly appreciate your support. Have a great day.

Lucas: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Q1 2026 Camden National Earnings Call

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