Camden National (NASDAQ:CAC) reported record second-quarter net income of $23 million, or $1.35 per diluted share, as loan growth, margin expansion and higher fee income supported results. Net income and diluted earnings per share each increased 5% from the first quarter, according to President and Chief Executive Officer Simon Griffiths.
For the first six months of 2026, the company recorded net income of $44.9 million and diluted earnings per share of $2.64. Griffiths said the results reflected execution across its core businesses, including lending, deposits, wealth management and digital initiatives.
Margin Improvement and Revenue Growth
Chief Financial Officer Michael Archer said net interest income totaled $52.9 million in the second quarter, up 1% from the prior quarter. Net interest margin increased 2 basis points sequentially to 3.26%, primarily because of lower funding costs.
Core net interest margin, which excludes net fair-value mark accretion income, rose 5 basis points to 2.97%, reaching the high end of the company’s prior guidance range. Net fair-value mark accretion income was $4 million, down $335,000 from the first quarter.
Archer said Camden National expects core margin expansion of roughly 5 to 10 basis points in the third quarter, supported by seasonal deposit inflows, a more favorable funding mix and the reinvestment of lower-yielding assets at current market rates.
During the question-and-answer session, Archer said the company internally models approximately $35 million of quarterly cash flows from investments and about $170 million to $180 million from loans. New loan originations are currently being priced in the low-6% to 6.5% range, he said.
Noninterest income rose 21% from the first quarter to $14.5 million. Archer said the increase was broad-based across fee categories, while investment appreciation and death benefits in bank-owned life insurance income contributed $491,000. The company expects third-quarter noninterest income of $13.5 million to $14 million.
Noninterest expense increased 5% sequentially to $37.4 million, primarily due to annual salary increases, the timing of director equity awards and an annual recognition event for top sales performers. Camden National projected third-quarter expenses of $37 million to $38 million.
Loan Pipeline Expands, Deposit Mix Shifts
Total assets stood at $7 billion at June 30. Loans increased 1% during the quarter, or 3% on an annualized basis, led by home equity and commercial lending. Home equity line of credit balances were up 23% from a year earlier.
Griffiths said the company has added depth to its HELOC lending team and implemented technology and process changes that reduced average funding times to 14 days. Camden National also added four experienced commercial bankers since year-end.
The committed loan pipeline increased 45% from the first quarter to $185.7 million. Despite the larger pipeline, Griffiths said the company expects third-quarter loan growth to remain measured.
“We’re seeing a nice balanced story on the loan growth side,” Griffiths said, pointing to commercial activity, home equity lending and residential mortgage production.
Total deposits were $5.6 billion at quarter-end, and the loan-to-deposit ratio was 90%. The company has been reducing brokered deposits and certificates of deposit while keeping core customer deposits stable, Griffiths said. Its focus remains on relationship-based deposits supported by service, convenience and pricing rather than rate-driven volume.
Credit, Capital and Shareholder Returns
Camden National reported continued sound credit metrics. Nonperforming loans represented 24 basis points of total loans, past-due loans were 15 basis points, and annualized net charge-offs were 4 basis points of average loans.
Provision expense was $710,000, compared with $553,000 in the first quarter, reflecting loan growth. The allowance for credit losses on loans was 0.91% of total loans, while the allowance coverage ratio was 3.8 times nonperforming loans.
Return on average assets was 1.33%, return on average tangible equity was 18.47%, and the non-GAAP efficiency ratio was 53.2%, Archer said.
Tangible book value per share increased 3% in the second quarter to $31.64, and was up 7% from year-end. During the first half, Camden National returned 41% of net income to shareholders through dividends and repurchases. The company repurchased 85,131 shares year to date at a weighted average price of $46.55 per share.
Wealth, Digital Investment and Acquisition Outlook
Assets under administration in Camden National’s wealth and brokerage businesses totaled $2.6 billion at quarter-end, up 13% from the prior year. Griffiths said the company is expanding advisory services to deepen customer relationships and diversify revenue.
The company also has multiple artificial intelligence-enabled use cases in production, Griffiths said, along with digital product enhancements and a refreshed website intended to improve customer experience and operating efficiency.
On acquisitions, Griffiths said Camden National remains open to opportunities that offer the right cultural, market and financial fit, though it faces no timing pressure because of its organic-growth opportunities. He said the company continues to see benefits from its 2025 Northway acquisition.
Camden National is also open to considering nonbank acquisitions that could expand fee income, though Griffiths said such deals are not a primary focus and can carry high valuations. He added that management is mindful of the implications of eventually surpassing $10 billion in assets, while emphasizing that strategic fit and transaction economics would guide any acquisition decision.
About Camden National (NASDAQ:CAC)
Camden National Corporation is a bank holding company headquartered in Camden, Maine. Through its primary subsidiary, Camden National Bank, the company provides a full range of community banking services to individuals and businesses. Its branch network spans much of the State of Maine, with a concentration in the midcoast, central and southern regions.
The company’s offerings include deposit products such as checking, savings and money market accounts, along with consumer and commercial lending services.
