Camden National Corporation (CAC): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Camden National Corporation's core business lines as of late 2025, especially after the Northway acquisition. Honestly, the numbers show a bank firing on all cylinders, with Net Income hitting a record $21.2 million in Q3 2025-that's a 51% jump quarter-over-quarter-and total assets now at $7.0 billion. But where is this growth coming from, and which parts of the business are just coasting or need a serious capital injection? Here's the quick math on where their capital is working hardest across their Stars, Cash Cows, Dogs, and Question Marks.

Background of Camden National Corporation (CAC)

You're looking at Camden National Corporation (CAC), which, as of late 2025, stands as Northern New England's largest publicly traded bank holding company. Honestly, this isn't a small regional player; they manage significant capital across Maine and New Hampshire. Founded way back in 1875, the core of the business is Camden National Bank, a full-service community bank, but they also run Camden National Wealth Management for comprehensive financial planning.

The company's footprint definitely got bigger this year. Camden National Corporation successfully closed the acquisition and integration of Northway Financial, Inc. in the first quarter of 2025. This strategic move expanded their presence, bringing their total branch count up to 73 across Maine and New Hampshire. They offer digital platforms like MortgageTouch and BusinessTouch to serve consumers and small businesses, keeping the service modern while maintaining that community bank feel.

Looking at the numbers from the third quarter of 2025, which ended September 30, 2025, you see the impact of that integration. Total assets reached $7.0 billion, with total loans sitting at $5.0 billion and total deposits at $5.4 billion. The bank reported record net income for the quarter at $21.2 million, translating to diluted earnings per share (EPS) of $1.25. Their net interest margin improved to 3.16% for the quarter, and their non-GAAP efficiency ratio tightened up nicely to 52.47%, showing they're getting operational benefits from the recent merger. At that point, the loan-to-deposit ratio was 93%, and the tangible book value per share stood at $28.42.

Camden National Corporation (CAC) - BCG Matrix: Stars

You're looking at the segments of Camden National Corporation (CAC) that are clearly leading their markets and driving significant top-line momentum as of late 2025. These are the areas where the business is investing heavily to maintain that high market share in what are still growing segments. For instance, the Commercial Real Estate (CRE) loan portfolio is a prime example of this growth engine, showing a 4% increase during the third quarter of 2025, which was a key driver for overall loan expansion.

This CRE strength isn't just general; we see it broken down into specific, high-value categories as of September 30, 2025. Honestly, these figures show real market penetration:

• Commercial real estate - non-owner-occupied loans totaled $1.77 \text{ billion}$.
• Commercial real estate - owner-occupied loans stood at $401.9 \text{ million}$.

The strategic move to acquire Northway Financial, Inc., which closed in early 2025, immediately positioned the combined entity as a major player, instantly boosting total assets to approximately $7.0 \text{ billion}$ as of September 30, 2025. This wasn't just about size; it strategically bolstered the New Hampshire footprint, adding 17$ branches and increasing the company's scale, which is defintely necessary to support these high-growth loan books.

To give you a quick snapshot of the performance underpinning this Star categorization, look at the key financial results from the third quarter of 2025:

The strength in consumer lending is also evident, particularly in the Home Equity loan portfolio, which grew by 5% in Q3 2025. That kind of growth in a high-rate environment signals strong consumer demand and a solid market position for Camden National Corporation in that product line.

The ultimate indicator of this segment's success is the bottom line: Overall Net Income hit a record $21.2 \text{ million}$ in Q3 2025, representing a massive 51% jump quarter-over-quarter. This record performance, coupled with the strategic asset base from the Northway integration, shows you exactly where Camden National Corporation is focusing its investment capital right now. Further supporting this strong performance, you see other positive metrics:

• Net Interest Margin increased 10$ basis points to 3.16%.
• Book value per share increased 4% during the third quarter to $39.97$.
• Non-interest income rose 8% to $14.1 \text{ million}$.

If Camden National Corporation can sustain this success as the market growth inevitably slows, these assets will transition into the Cash Cow quadrant, providing stable returns for years to come.

Camden National Corporation (CAC) - BCG Matrix: Cash Cows

You're looking at the bedrock of Camden National Corporation's financial stability, the business units that fund the rest of the portfolio. These are the high-market-share, low-growth operations that generate consistent, predictable cash flow.

The core deposit base of Camden National Corporation stands at $5.4 billion as of September 30, 2025. This represents the stable, low-cost funding source essential for the lending operations, a classic characteristic of a cash cow providing reliable input.

Profitability from this stable base is evident in the Net Interest Margin (NIM), which expanded to 3.16% in the third quarter of 2025. That's a 10 basis point increase over the prior quarter, directly translating into reliable core revenue generation.

The franchise itself is a major asset. Camden National Corporation is Northern New England's largest publicly traded bank holding company, a position of high market share in a mature regional market. This scale allows for efficiency improvements that directly boost cash flow.

To show you the direct return to shareholders from these cash-generating units, look at the dividend policy:

This consistent payout is what you expect from a mature business unit that consumes less in growth investment. The company is focused on milking these gains while maintaining the infrastructure.

Here are the key metrics reinforcing the cash cow status of the core franchise as of the third quarter of 2025:

• Net Interest Margin (NIM): 3.16%
• NIM Change from Q2 2025: 10 basis points increase
• Core Deposit Base: $5.4 billion (as of September 30, 2025)
• GAAP Efficiency Ratio: 54.94% (improved from 60.37% in Q2 2025)
• Record Net Income: $21.2 million (Q3 2025)

The improvement in the GAAP efficiency ratio to 54.94% shows management is successfully investing in supporting infrastructure to increase cash flow rather than pouring money into market expansion.

Camden National Corporation (CAC) - BCG Matrix: Dogs

Dogs are business units or products characterized by a low market share within a low-growth market. These units typically break even, consuming little cash but offering minimal returns, making them candidates for divestiture to free up trapped capital.

For Camden National Corporation (CAC), the following areas fit the profile of a Dog, representing mature or non-core activities where market share or growth is constrained, necessitating careful management or exit strategies.

Residential Mortgage Origination Business

The residential mortgage origination business is positioned as a Dog due to its role in managing capital and interest rate risk rather than being a primary growth engine. The company actively reduced its exposure by selling a significant portion of its output during the period.

• Sold 39% of residential mortgage production during the second quarter of 2025 to manage capital and interest rate risk.
• For context, in the first quarter of 2025, the company sold 58% of its residential mortgage production.
• Total loans stood at $4.9 billion as of June 30, 2025.

Here's the quick math on the strategic shift: Selling production moves the asset off the balance sheet, which is a classic move when the asset class is not expected to generate superior risk-adjusted returns in the current rate environment.

Legacy Branch Network in Mature Maine Markets

The legacy branch network, primarily concentrated in mature Maine markets, faces structural headwinds from increasing digital adoption, demanding continuous cost management to maintain acceptable efficiency levels. While the Northway Financial, Inc. acquisition expanded the footprint to 73 branches across Maine and New Hampshire as of January 2, 2025, the older, established Maine locations represent the mature core.

The focus here is on efficiency, as evidenced by the overall GAAP efficiency ratio improving to 60.37% in Q2 2025, and on a non-GAAP basis, to 55.47% in Q2 2025, down from 74.02% and 58.72% in Q1 2025, respectively. This improvement suggests cost discipline is being applied across the combined entity.

The company has also taken steps to rationalize its physical footprint, which can be indicative of shedding lower-performing assets:

Low-Yield, Longer-Duration Investment Securities

Certain investment securities, likely acquired through prior activities or the Northway merger, were identified as low-yield and long-duration, making them poor fits for the current capital redeployment strategy. These were sold to improve the overall yield profile of the investment portfolio.

The action taken demonstrates a clear strategy to avoid holding assets that tie up capital without adequate return, a hallmark of managing Dogs.

• Sold certain low-yield, longer-duration available-for-sale (AFS) investment securities acquired from Northway in Q1 2025.
• The fair value of these sold investment securities was $56.0 million.
• The sale resulted in no gain or loss, as they were sold at their fair value.
• Proceeds of $56.0 million were used, along with additional cash, to purchase $76.7 million of securities at current market rates.

As of March 31, 2025, total investments stood at $1.4 billion.

Camden National Corporation (CAC) - BCG Matrix: Question Marks

You're analyzing Camden National Corporation's portfolio, and these Question Marks represent areas where the market is hot, but the company's current slice of that market is small. They're burning cash now, but they hold the potential to become the next Stars if you can pour in the right resources to capture share quickly.

Digital Banking Initiatives

Digital banking initiatives are definitely a high-growth market, but Camden National Corporation is still fighting for share against larger, more established digital players. The company fully deployed a new online account opening platform in the first quarter of 2025, which is a necessary step to compete for new customers. You know these platforms consume capital upfront, and while management is optimistic about future growth driven by these enhanced capabilities, the direct revenue impact for Q3 2025 isn't broken out separately from overall performance.

Here are some key figures showing the scale of the combined entity that these digital efforts serve:

Camden National Wealth Management

The Wealth Management segment is a full-service offering, but its contribution to non-interest income needs to grow faster to truly match the scale of the overall loan book. The organic growth in assets under administration across wealth and brokerage lines was 11%, bringing the total to $2.4 billion as of September 30, 2025. This growth is positive, but it needs to accelerate to shift this unit out of the Question Mark quadrant. For context, the prior quarter's non-interest income was $13.1 million in Q2 2025, and Q3 2025 included a one-time net gain of $675,000 from property sales within that income line.

Northway Acquisition Expansion

The acquisition of Northway Financial, Inc., completed on January 2, 2025, represents a strategic move into new New Hampshire counties, a market Camden National Corporation views as high-growth. This move immediately added $1.2 billion in assets and over 28,000 new customers. The challenge here is the capital required for integration and the time needed to fully capture market share from the acquired footprint. Management projected that 75% of the anticipated 35% reduction in Northway's operating expenses would be realized during 2025, showing the immediate focus on cost synergy realization to improve returns on these new assets.

You should track these integration metrics closely:

• Northway acquisition date: January 2, 2025.
• New customers added: Over 28,000.
• Cost synergy realization target in 2025: 75% of 35% reduction.
• Loan growth in Q3 2025 (combined): 1% sequentially.

Data Modernization Project

The data modernization project is a classic Question Mark investment. The prompt suggests it delivered a 250% increase in analytics output, which signals massive potential for efficiency and targeted marketing. However, the scenario dictates that the revenue impact from this investment is still materializing as of late 2025. This means it's currently consuming cash-a high investment-without the corresponding low market share being overcome by immediate, measurable revenue gains. You're waiting to see if this investment turns into a Star or if the technology becomes obsolete before it pays off.