Camden National Corporation (CAC) | Investment Case

1. Company Snapshot

1.a. Company Description

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers.The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system.It also offers non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the U.S. small business administration, loans secured by one-to four-family properties, and consumer and home equity loans.

In addition, the company provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities.Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services.As of December 31, 2021, the company had 57 branches within Maine; one residential mortgage lending office in Braintree, Massachusetts; two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester; and an online residential mortgage and small commercial digital loan platform, as well as 66 ATMs. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.

Show Full description

1.b. Last Insights on CAC

Camden National Corporation's recent performance was driven by strong Q2 2025 earnings, with net income of $14.1 million and diluted EPS of $0.83, representing 92% and 93% increases, respectively, compared to Q1 2025. The company's acquisition of Northway Financial contributed to its unified organization, yielding positive results. Additionally, Camden National Bank partnered with Spiral to offer personalized savings and financial wellness tools, enhancing customer experience. A quarterly dividend of $0.42 per share was declared, providing a 4.23% annualized dividend yield.

1.c. Company Highlights

Last Price	42.37
Change Percentage	-0.63%
Open	42.34
Previous Close	42.64
Market Cap ( Millions)	717
Volume	52508
Year High	47.55
Year Low	34.53
M A 50	38.66
M A 200	39.77

FCF Yield	11.76%
Dividend Yield	3.97%
ROE	9.16%
Debt / Equity	110.65%
Net Debt / EBIDTA	602.10%
Price To Book	1.07
Price Earnings Ratio	12.61
Price To FCF	8.5
Price To sales	2.58
EV / EBITDA	12.67

2. Camden National Corporation Delivers Record Q3 Earnings

Camden National Corporation reported record third-quarter earnings of $21.2 million, a 51% increase over the previous quarter, driven by successful execution of the Northway financial integration strategy. The company's earnings per share (EPS) came in at $1.24, beating analyst estimates of $1.23. Pretax pre-provision income rose 19% over the prior quarter, and the net interest margin expanded by 10 basis points to 3.16%. The tangible common equity ratio grew 32 basis points to 7.09%, and tangible book value increased 6% to $28.42 per share.

Publication Date: Nov -17

                                    📋 Highlights
                                    Record Q3 Earnings:
                                                surged to $21.2 million, a 51% QoQ increase, driven by Northway integration success.
Tangible Equity Growth:
                                                rose 32 bps to 7.09%, with tangible book value up 6% to $28.42/share.
Net Interest Margin:
                                                expanded 10 bps to 3.16%, alongside 19.1% ROATTE.
Loan/Deposit Momentum:
                                                4% annualized loan growth, $116M pipeline, and 2% core deposit rise.
Credit Strength:
                                                showed 14 bps decline in nonperforming assets, with $45.5M allowance covering 5.5x NPLs.

                                

Loan Growth and Credit Trends

The company delivered robust annualized loan growth of 4%, with a committed loan pipeline of $116 million. Average core deposits grew 2%, with saving deposit balances growing 5%. Credit trends remain strong, with a 14 basis point decrease in nonperforming assets. The allowance for credit losses totaled $45.5 million, covering 5.5x total nonperforming loans, indicating a comfortable provisioning level.

Noninterest Income and Expense

The company sustained strong momentum in noninterest income, with assets under management and administration reaching a record high of $2.4 billion. Fiduciary and brokerage fee income grew organically by 16% year-over-year. For the fourth quarter, noninterest expense is estimated to be $36 million to $36.5 million, reflecting incentives and a legacy contract. The efficiency ratio improved to 52.5%.

Outlook and Valuation

The company expects margin expansion of 5-10 basis points next quarter, driven by the cost of funds side. Loan growth is expected to be flat to 2% in the fourth quarter and mid-single digits next year. With a current Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.99, the stock appears fairly valued. The Dividend Yield stands at 4.26%, providing a relatively attractive return. Analysts estimate next year's revenue growth at 7.8%, which, combined with the current valuation multiples, suggests a stable outlook for the stock.

3. NewsRoom

The Baldwin Group and CAC Group to Merge, Creating the Largest Majority Colleague-Owned, Publicly-Traded Insurance Broker

Dec -02

Source: businesswire.com

Camden National Corporation (CAC) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

Camden National (CAC) Q3 Earnings and Revenues Top Estimates

Oct -28

Source: zacks.com

Camden National Corporation Reports Third Quarter 2025 Earnings

Oct -28

Source: prnewswire.com

Critical Survey: Meridian Bank (NASDAQ:MRBK) and Camden National (NASDAQ:CAC)

Oct -21

Source: defenseworld.net

Camden National Corporation to Announce Quarter Ended September 30, 2025 Financial Results on October 28, 2025

Oct -02

Source: prnewswire.com

Camden National Corporation Announces its Third Quarter 2025 Dividend

Sep -30

Source: prnewswire.com

Abivax to Join CAC Mid 60 and SBF 120 Indices Following Euronext Paris Annual Review

Sep -12

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Banking and Related Activities

Expected Growth: 6.0%

Camden National Corporation's 6.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, improved asset quality, effective cost management, and a favorable interest rate environment contribute to the segment's growth.

7. Detailed Products

Personal Banking

Camden National Corporation offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

Camden National Corporation provides business banking services, including commercial loans, cash management, and treasury management solutions.

Mortgage Lending

Camden National Corporation offers a range of mortgage lending products, including residential and commercial mortgages, home equity loans, and construction loans.

Wealth Management

Camden National Corporation provides wealth management services, including investment management, financial planning, and trust services.

Insurance Services

Camden National Corporation offers insurance services, including personal and commercial insurance products, such as auto, home, and liability insurance.

8. Camden National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Camden National Corporation operates in the banking industry, which has a moderate threat of substitutes. While customers have some alternatives, such as credit unions and online banking services, they are not easily substitutable.

Bargaining Power Of Customers

Camden National Corporation's customers have limited bargaining power due to the lack of concentration in the banking industry. Individual customers do not have significant influence over the company's operations.

Bargaining Power Of Suppliers

Camden National Corporation has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company is not heavily dependent on a single supplier, reducing the risk of supplier negotiations.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and capital requirements. This limits the threat of new entrants and reduces the competitive pressure on Camden National Corporation.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Camden National Corporation faces intense rivalry from other banks and financial institutions, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	51.78%
Debt Cost	7.61%
Equity Weight	48.22%
Equity Cost	7.61%
WACC	7.61%
Leverage	107.38%

11. Quality Control: Camden National Corporation passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Lakeland Financial

A-Score: 5.7/10

Value: 4.4

Growth: 5.7

Quality: 6.9

Yield: 5.0

Momentum: 4.5

Volatility: 7.7

1-Year Total Return ->

SB Financial Group

A-Score: 5.7/10

Value: 6.9

Growth: 4.0

Quality: 6.5

Yield: 6.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

First Bancshares

A-Score: 5.5/10

Value: 5.5

Growth: 4.7

Quality: 6.9

Yield: 4.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Camden National

A-Score: 5.5/10

Value: 5.2

Growth: 5.1

Quality: 4.1

Yield: 8.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

OceanFirst

A-Score: 5.4/10

Value: 4.8

Growth: 4.8

Quality: 4.6

Yield: 8.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

Eagle Bancorp

A-Score: 5.4/10

Value: 9.1

Growth: 4.2

Quality: 4.2

Yield: 8.0

Momentum: 3.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.33%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.61%

Camden National Corporation - US1330341082

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CAC

1.c. Company Highlights

Average Yield

Stable Momentum

Fairly Valued

Earnings Beats

Revenues Beats

Average Quality

Expensive

Average Growth

Strong Momentum

Earnings Miss

Lower Quality

Revenues Miss

2. Camden National Corporation Delivers Record Q3 Earnings

Loan Growth and Credit Trends

Noninterest Income and Expense

Outlook and Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Banking and Related Activities

Expected Growth: 6.0%

7. Detailed Products

Personal Banking

Business Banking

Mortgage Lending

Wealth Management

Insurance Services

8. Camden National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Camden National Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.37$

Current Price

42.37$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA