Camden National Bank (NASDAQ:CAC) Reports Upbeat Q3 CY2025

Maine-based regional bank Camden National announced better-than-expected revenue in Q3 CY2025, with sales up 45.6% year on year to $65.74 million. Its non-GAAP profit of $1.24 per share was 4.2% above analysts’ consensus estimates. Camden National Bank (CAC) Q3 CY2025 Highlights:Net Interest Income: $51.27 million vs analyst estimates of $50.17 million (52.7% year-on-year growth, 2.2% beat)Net Interest Margin: 3.2% vs analyst estimates of 3.1% (7.5 basis point beat)Revenue: $65.74 million vs analyst estimates of $62.87 million (45.6% year-on-year growth, 4.6% beat)Efficiency Ratio: 52.5% vs analyst estimates of 56.4% (388 basis point beat)Adjusted EPS: $1.24 vs analyst estimates of $1.19 (4.2% beat)Tangible Book Value per Share: $28.42 vs analyst estimates of $27.83 (4.7% year-on-year decline, 2.1% beat)Market Capitalization: $750.7 millionCompany OverviewRooted in Maine's coastal communities since 1875, Camden National is a regional bank holding company that provides banking, wealth management, and financial services to consumers and businesses throughout Maine and New Hampshire.Sales GrowthFrom lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, Camden National Bank’s revenue grew at a sluggish 5.4% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Camden National Bank’s annualized revenue growth of 17.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.This quarter, Camden National Bank reported magnificent year-on-year revenue growth of 45.6%, and its $65.74 million of revenue beat Wall Street’s estimates by 4.6%. Net interest income made up 76.7% of the company’s total revenue during the last five years, meaning lending operations are Camden National Bank’s largest source of revenue. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our free report one of our favorites growth stories.Tangible Book Value Per Share (TBVPS)Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions. Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out. Camden National Bank’s TBVPS was flat over the last five years. However, TBVPS growth has accelerated recently, growing by 6.1% annually over the last two years from $25.24 to $28.42 per share. Over the next 12 months, Consensus estimates call for Camden National Bank’s TBVPS to grow by 14.9% to $32.66, decent growth rate. Key Takeaways from Camden National Bank’s Q3 ResultsWe enjoyed seeing Camden National Bank beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $43.87 immediately following the results. Is Camden National Bank an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.