Camden National Corporation Reports Third Quarter 2026 Net Income Up 8% Year Over Year

Strong deposit growth, credit quality and disciplined execution drive financial performance

CAMDEN, Maine, Oct. 27, 2026 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC); ("Camden National" or the "Company") reported net income of $22.8 million and diluted earnings per share ("EPS") of $1.34 for the quarter ended September 30, 2026, resulting in a return on average assets of 1.31%, a return on average equity of 12.36%, and a return on average tangible equity (non‑GAAP) of 17.47%.

"Our third-quarter results demonstrate continued momentum across the franchise, with year-over-year earnings growth, meaningful deposit growth, and strong credit performance," said Simon Griffiths, President and Chief Executive Officer of Camden National Corporation. "Strong deposit growth and continued customer acquisition improved our funding mix, reduced reliance on higher-cost borrowings, and expanded net interest margin by 15 basis points from the second quarter to 3.41%. At the same time, we maintained disciplined expense management while investing in our lending teams and future growth. With record earnings through the first nine months of the year and a stronger balance sheet, we are confident that we are well positioned to deliver sustained earnings growth and long-term shareholder value."

For the nine months ended September 30, 2026, the Company reported record net income of $67.7 million and diluted EPS of $3.98, compared to $42.6 million and $2.51, respectively, for the same period of 2025. On a non-GAAP basis, adjusted net income, which excludes acquisition-related costs and other non-recurring items incurred during the nine months ended September 30, 2025, increased 31% between periods.

THIRD QUARTER 2026 HIGHLIGHTS

• Net income of $22.8 million and diluted EPS of $1.34 for the third quarter of 2026 increased 8% and 7%, respectively, over the same period last year, and were each 1% lower than reported record financial results for the prior quarter.

• Deposits grew 5% during the third quarter of 2026, driven by growth in core deposits (non-GAAP) of 7% since June 30, 2026.

• Asset quality remained strong, with non-performing loans and past-due loans representing 0.16% and 0.14% of total loans, respectively, at September 30, 2026.

• The GAAP efficiency ratio for the third quarter was 54.60%, and the non-GAAP efficiency ratio was 52.44%, compared to 55.42% and 53.23%, respectively, for the second quarter of 2026.

• Net interest margin expanded 15 basis points during the third quarter of 2026, compared to the second quarter of 2026, to 3.41%.

• Book value per share was $42.65 and tangible book value per share (non-GAAP) was $31.40 at September 30, 2026, an increase of 7% and 10%, respectively, compared to September 30, 2025.

FINANCIAL OPERATING RESULTS (Q3 2026 vs. Q2 2026)

Net interest income totaled $55.4 million in the third quarter of 2026, an increase of 5% from the prior quarter. Net interest margin expanded 15 basis points to 3.41%, primarily reflecting lower funding costs as 3% growth in average deposits supported a 26% reduction in average borrowings. Net fair value mark accretion income increased $224,000 to $4.2 million and contributed 31 basis points to third-quarter net interest margin.

Provision expense totaled $1.9 million for the third quarter of 2026, compared with $710,000 in the prior quarter. The increase reflected macroeconomic factors that contributed to a 1-basis-point increase in the allowance for credit losses to 0.92% of total loans at September 30, 2026, as well as higher reserves related to growth in unfunded credit commitments. Asset quality remained strong, with non-performing loans and past-due loans at 0.16% and 0.14% of total loans, respectively, as of September 30, 2026, while annualized net charge-offs remained low at 0.07% of average loans.

Non-interest income for the third quarter of 2026 totaled $13.2 million, a decrease of $1.2 million, or 8%, from the prior quarter. The decrease was primarily due to lower mortgage banking and bank-owned life insurance income, driven by quarter-end fair value accounting adjustments reflecting changes in market conditions. Underlying customer activity remained solid, supported by higher debit card income and growing assets under administration within the Company's wealth and brokerage businesses, which increased 1% to $2.6 billion during the quarter.

Non-interest expense for the third quarter of 2026 totaled $37.5 million, an increase of less than 1% from the prior quarter. The Company's GAAP and non‑GAAP efficiency ratios for the third quarter of 2026 were 54.60% and 52.44% compared to 55.42% and 53.23%, respectively, for the second quarter of 2026.

FINANCIAL CONDITION

Total assets were $7.1 billion at September 30, 2026, compared to $7.0 billion at June 30, 2026.

Cash, cash equivalents and restricted cash increased to $248.6 million at September 30, 2026, from $99.9 million at June 30, 2026, primarily reflecting strong third-quarter deposit growth and timing of cash flows.

Investments totaled $1.3 billion at September 30, 2026, representing a 4% decrease from June 30, 2026. The increase in the interest rate environment during the quarter resulted in an increase in unrealized losses on the available-for-sale investment portfolio of $32.6 million to $77.5 million at September 30, 2026.

Total loans were $5.0 billion at September 30, 2026, a decrease of $2.2 million from June 30, 2026. Home equity and residential mortgage loans grew 7% and 1%, respectively, from the prior quarter, while commercial real estate and commercial loans decreased 2% and 3%, respectively, with the declines primarily attributable to several large loan prepayments.

Total deposits were $5.8 billion at September 30, 2026, an increase of 5% from June 30, 2026. On a non-GAAP basis, core deposits grew 7% during the third quarter of 2026 to $5.2 billion, and represented 88% of total deposits. Strong core deposit growth from normal seasonal deposit flows in our markets and continued success in customer acquisition enabled the Company to optimize its higher-cost deposits and borrowings. At September 30, 2026, borrowings totaled $374.4 million, compared to $571.1 million at June 30, 2026. As of September 30, 2026, the Company's loan-to-deposit ratio was 86%, compared to 90% at June 30, 2026.

As of September 30, 2026, the Company maintained capital ratios well in excess of all regulatory requirements, including a Common Equity Tier 1 ratio of 12.53%, a Tier 1 risk-based ratio of 13.83%, a total risk-based ratio of 14.82%, and a Tier 1 leverage ratio of 9.92%.

The tangible common equity ratio and tangible book value per share were 7.73% and $31.40, respectively, as of September 30, 2026, compared to 7.91% and $31.64 at June 30, 2026. The decreases reflected a $25.1 million net-of-tax increase in accumulated other comprehensive loss resulting from the increase in unrealized losses on the available-for-sale investment portfolio.

The Company did not repurchase any shares of its common stock during the third quarter of 2026. For the nine months ended September 30, 2026, the Company repurchased 85,131 shares at a weighted average price of $46.55 per share under its share repurchase program.

The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 3.04%, based on the Company's closing share price of $55.35 as reported by NASDAQ on September 30, 2026. The dividend will be payable on October 30, 2026, to shareholders of record on October 15, 2026.

Q3 2026 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 3:00 p.m. Eastern Time on Tuesday, October 27, 2026, to discuss its third quarter of 2026 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

A link to the live webcast will be available on Camden National's website under "Resources — Investor Relations" at CamdenNational.bank before the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The conference call transcript will also be available on Camden National's website approximately two days after the conference call.

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company, with $7.1 billion in assets. Founded in 1875, Camden National Bank has 72 banking centers in Maine and New Hampshire and is a full-service community bank offering the latest digital banking, complemented by award-winning, personalized service. Additional information is available at CamdenNational.bank. Member FDIC. Equal Housing Lender.

Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Certain factors that could cause actual results to differ materially from expected results include weakness in the United States economy in general and the regional and local economies within the Northern New England regions, which could result in a deterioration of credit quality, an increase in the allowance for credit losses or a reduced demand for the Company's credit or fee-based products and services; changes in trade, monetary and fiscal policies and laws, including Federal Reserve interest rate policies or the imposition of tariffs or retaliatory tariffs and related litigation; increased competitive pressures, including continued industry consolidation and the increased financial services provided by non-banks; inflation; deterioration in the value of Camden National's investment securities; commercial real estate vacancies and their impact on the ability of borrowers to repay loans; changes in consumer spending and savings habits; volatility in the securities markets that could adversely affect the value or credit quality of the Company's assets, impairment of goodwill, or the availability and terms of funding necessary to meet the Company's liquidity needs; changes in information technology and other operational risks, including cybersecurity and artificial intelligence, that require increased capital spending and introduce additional risk; changes in tax, banking, securities and insurance laws and regulations; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies, practices and standards; the effects of climate change on the Company and its customers, borrowers or service providers; the effects of civil unrest, international hostilities, including the continuation of conflict in the Middle East, or other geopolitical events; the effects of epidemics and pandemics; turmoil and volatility in the financial services industry; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; increases in deposit insurance assessments due to bank failures; changes to regulatory capital requirements; questions about the soundness of one or more financial institutions with which the Company does business; changes in the securities markets and other risks and uncertainties disclosed in Camden National's Annual Report on Form 10-K for the year ended December 31, 2025, as updated by other filings with the Securities and Exchange Commission ("SEC"). Factors other than these risks could also materially affect the Company's financial results and performance, and readers should not consider the risks described above to be a comprehensive description of all potential risks and uncertainties that affect the Company. Readers should not place undue reliance on the Company's forward-looking statements. Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; adjusted pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; core net interest margin; and tangible book value per share. Management utilizes these non-GAAP financial measures to measure our performance against our peer group and other financial institutions, and to analyze our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons with other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures are included in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an "annualized" basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.