Financial Performance - Camden National Corporation reported record net income of $21.2 million for Q3 2025, a 51% increase compared to Q2 2025, with diluted earnings per share of $1.25[1][2] - Net income for the three months ended September 30, 2025, was $21,194 thousand, representing a 50% increase from $14,081 thousand in the previous quarter and a 62% increase from $13,073 thousand year-over-year[24] - Net income for the nine months ended September 30, 2025, was $42,601, an 11% increase from $38,338 in the same period of 2024[30] - Pre-tax, pre-provision income for Q3 2025 was $29.47 million, compared to $24.68 million in Q2 2025 and $16.09 million in Q3 2024[46] Earnings and Ratios - The return on average assets was 1.21%, return on average equity was 12.75%, and return on average tangible equity was 19.14% for Q3 2025[1][3] - The diluted EPS for the three months ended September 30, 2025, was $1.25, compared to $0.83 in the previous quarter and $0.90 year-over-year[24] - Adjusted return on average equity for Q3 2025 was 12.58%, up from 9.47% in Q2 2025 and 10.48% in Q3 2024[44] - Adjusted return on average assets for the nine months ended September 30, 2025, was 1.01%, compared to 0.89% for the same period in 2024[43] Income and Expenses - Total interest income for the three months ended September 30, 2025, was $80,894, a 27% increase compared to $63,721 for the same period in 2024[28] - Non-interest income for Q3 2025 was $14.1 million, an 8% increase from Q2 2025, with 11% organic growth in assets under administration to $2.4 billion[14] - Non-interest income rose to $14,125, an increase of 24% compared to $11,406 in the same quarter last year[28] - Non-interest expense for Q3 2025 was $35.93 million, a decrease from $37.60 million in Q2 2025 and an increase from $28.90 million in Q3 2024[47] Asset and Loan Growth - Total assets reached $7.0 billion, a 1% increase since June 30, 2025, while total deposits were $5.4 billion, reflecting a 2% decrease[4][6] - Loans grew by 4% on an annualized basis, totaling $5.0 billion as of September 30, 2025, driven by a 4% increase in commercial real estate loans and a 5% increase in home equity loans[3][5] - Total loans reached $5,002,927 thousand, a 1% increase from $4,931,369 thousand in the previous quarter and a 22% increase from $4,116,729 thousand year-over-year[26] - Total loans 30-89 days past due amounted to $8,097,000 for the nine months ended September 30, 2025, compared to $1,391,000 for the same period in 2024, indicating a substantial rise[40] Capital and Efficiency - The common equity Tier 1 risk-based capital ratio was 11.17%, and the total risk-based capital ratio was 13.47% as of September 30, 2025, indicating strong capital position[7] - The GAAP efficiency ratio improved to 54.94% in Q3 2025 from 60.37% in Q2 2025, demonstrating enhanced operational efficiency[3][15] - The efficiency ratio (non-GAAP) improved to 52.47%, compared to 55.47% in the previous quarter and 62.08% year-over-year[24] - The common equity ratio increased to 9.69%, up from 9.42% in the previous quarter and 9.22% year-over-year[24] Dividends and Shareholder Value - The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.35% based on the closing share price of $38.59[8] - Tangible Book Value Per Share increased to $28.42 in September 2025 from $26.90 in June 2025, reflecting a growth of 5.7%[51] - Book value per share increased to $39.97 in September 2025, up from $38.54 in June 2025, showing a growth of 3.7%[51] - Shares outstanding at period end remained stable at approximately 16.92 million in September 2025, compared to 16.92 million in June 2025[51] Credit Quality - The allowance for credit losses on loans was 0.91% of total loans, down from 1.08% at June 30, 2025, reflecting the strength of the loan portfolio[11] - The ratio of non-performing loans to total loans was 0.17% at the end of September 2025, down from 0.37% at the end of June 2025[40] - Total non-performing assets were $8,330,000 at the end of September 2025, down from $18,249,000 at the end of June 2025[40] - The provision for loan losses was $19,009,000 for the nine months ended September 30, 2025, compared to $15,469,000 for the same period in 2024, indicating an increase of 22.8%[40]

Core Points - Camden National Corporation (NASDAQ: CAC) will report its financial and operating results for Q3 2025 on October 28, 2025 [1] - A conference call and webcast will be hosted by key executives at 3:00 p.m. Eastern on the same day [1] - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with approximately $6.9 billion in assets [3] Conference Call Details - Interested parties can join the teleconference by dialing in or connecting to the webcast 10-15 minutes prior to the start [2] - Domestic dial-in number is (833) 470-1428, with international access available through a provided link [2] - A live webcast URL and access code for participants are also provided [2] Company Overview - Camden National Corporation was founded in 1875 and operates 72 banking centers in Maine and New Hampshire [3] - The company offers full-service community banking with a focus on digital banking and personalized service [3] - Camden National Wealth Management provides comprehensive wealth management, investment, and financial planning services [4]

Core Points - Camden National Corporation declared a quarterly dividend of $0.42 per share, resulting in an annualized dividend yield of 4.34% based on the closing price of $38.72 per share on September 29, 2025 [1] - The dividend is payable on October 31, 2025, to shareholders of record as of October 15, 2025 [1] Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with approximately $6.9 billion in assets [2] - The company operates 72 banking centers in Maine and New Hampshire, providing full-service community banking and digital banking services [2] Wealth Management Services - Camden National Corporation offers comprehensive wealth management, investment, and financial planning services through Camden National Wealth Management [3]

Core Insights - Euronext is set to join the CAC 40® Index, effective from September 22, 2025, marking a significant recognition of its market performance and shareholder value creation since its IPO in 2014 [1][4]. Company Growth and Performance - Euronext has experienced substantial growth since its IPO in June 2014, with annual revenue increasing from €458.5 million to over €1.6 billion by 2024, representing a more than threefold increase [3]. - The company's annual EBITDA has also seen significant growth, rising from €225.4 million in 2014 to over €1.0 billion adjusted EBITDA in 2024, indicating a more than fourfold increase [3]. - Euronext's market capitalization has surged from €1.4 billion at its IPO to €14.5 billion as of August 22, 2025, showcasing its transformation and expansion in the capital markets [3]. Strategic Developments - Since its IPO, Euronext has expanded its operations from four market infrastructures to being the leading European capital market infrastructure, with regulated markets in multiple European cities [2]. - The company has diversified its services across the entire capital markets value chain, including listing, trading, clearing, settlement, and custody, as well as solutions for issuers and investors [2][9]. - Euronext's strategic acquisitions and geographic expansion have been pivotal in its growth, with plans to extend its federal model to Athens announced in July 2025 [2][6]. Market Position - Euronext's regulated exchanges host nearly 1,800 listed issuers with a total market capitalization of €6.3 trillion, making it a significant player in the European capital markets [10]. - The company handles 25% of European lit equity trading and offers a diverse range of products, including equities, FX, ETFs, bonds, derivatives, commodities, and indices [10].

Core Points - Camden National Corporation has appointed Marie J. McCarthy as Vice-Chair of the Board and will succeed Lawrence J. Sterrs as Chair upon his retirement [2][3] - Mr. Sterrs will retire on December 31, 2025, after 10 years of service, including serving as Chair since 2017 [3][4] - The succession process was described as thoughtful and well-executed, ensuring leadership continuity [4] Leadership Experience - Marie J. McCarthy has over 30 years of leadership experience, notably at L.L.Bean, where she served as Chief Operations Officer [5] - McCarthy has been an independent member of the Camden National Board since 2018, chairing the Compensation Committee and serving on the Technology Committee [4][5] - Her expertise includes operations, customer satisfaction, and corporate real estate management [5] Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with $6.9 billion in assets [7] - The company operates 72 banking centers in Maine and New Hampshire, offering full-service community banking and digital services [7]

Core Insights - Shirofune has enhanced its advertising automation tool by integrating with Amazon Marketing Cloud (AMC), allowing for automatic optimization of Amazon ad campaigns based on predicted Lifetime Value (LTV) [1][4] - The integration provides reporting for metrics not available in the standard Amazon Ads interface, including New Customer Acquisition Cost, New Customer ROAS, and LTV [2][6] - The integration aims to make advanced advertising analytics accessible to all advertisers, enabling them to optimize for long-term business growth rather than just short-term performance [1][4] Company Overview - Shirofune, founded in 2014, is an automated advertising management tool that enhances the efficiency of digital advertising platforms, with over 10,000 accounts automated and 300,000 active ad campaigns [9] - The platform is designed to simplify the management of digital ad campaigns through a single interface, making it user-friendly for non-technical users [8][9] Integration Features - The integration with AMC allows Shirofune to optimize bids based on meaningful indicators such as New Customer Acquisition Cost and predicted LTV, maximizing long-term revenue from campaigns [4][5] - Advertisers can begin LTV-based optimization immediately upon integration, as predicted values are calculated using historical data [5][6] - Shirofune's platform does not require complex setup, allowing users to easily operate the tool without needing to understand custom data processes [8]

PART I. FINANCIAL INFORMATION This part presents the unaudited consolidated financial information, including statements, notes, and management's discussion and analysis [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements of Camden National Corporation, including the statements of condition, income, comprehensive income, changes in shareholders' equity, and cash flows for the periods ended June 30, 2025, and December 31, 2024 (or June 30, 2024 for income/cash flow statements). These statements provide a snapshot of the company's financial health, performance, and cash movements [Consolidated Statements of Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Condition) This statement provides a snapshot of the Company's assets, liabilities, and shareholders' equity at specific points in time | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :---------------- | :--------- | :--------- | | Total assets | $6,920,044 | $5,805,138 | $1,114,906 | 19.2% | | Total liabilities | $6,267,896 | $5,273,907 | $993,989 | 18.8% | | Total shareholders' equity | $652,148 | $531,231 | $120,917 | 22.8% | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) This statement details the Company's revenues, expenses, and net income over specific reporting periods | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Total interest income | $79,323 | $62,162 | $17,161 | 27.6% | $157,718 | $122,345 | $35,373 | 28.9% | | Total interest expense | $30,114 | $29,978 | $136 | 0.5% | $59,651 | $58,888 | $763 | 1.3% | | Net interest income | $49,209 | $32,184 | $17,025 | 52.9% | $98,067 | $63,457 | $34,610 | 54.5% | | Provision for credit losses | $6,920 | $650 | $6,270 | 964.6% | $16,349 | $(1,452) | $17,801 | -1226.0% | | Total non-interest income | $13,067 | $10,645 | $2,422 | 22.8% | $24,263 | $20,967 | $3,296 | 15.7% | | Total non-interest expense | $37,596 | $27,310 | $10,286 | 37.7% | $82,047 | $54,672 | $27,375 | 50.1% | | Net Income | $14,081 | $11,993 | $2,088 | 17.4% | $21,407 | $25,265 | $(3,858) | -15.3% | | Basic EPS | $0.84 | $0.82 | $0.02 | 2.4% | $1.27 | $1.73 | $(0.46) | -26.6% | | Diluted EPS | $0.83 | $0.81 | $0.02 | 2.5% | $1.26 | $1.72 | $(0.46) | -26.7% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income, reflecting changes in equity from non-owner sources | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Income | $14,081 | $11,993 | $2,088 | 17.4% | $21,407 | $25,265 | $(3,858) | -15.3% | | Other comprehensive income | $4,376 | $1,784 | $2,592 | 145.3% | $16,767 | $321 | $16,446 | 5123.4% | | Comprehensive Income | $18,457 | $13,777 | $4,680 | 34.0% | $38,174 | $25,586 | $12,588 | 49.2% | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) This statement outlines the changes in the Company's equity accounts, including common stock, retained earnings, and AOCI | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :---------------- | :--------- | :--------- | | Common stock outstanding (shares) | 16,919,689 | 14,579,339 | 2,340,350 | 16.0% | | Common stock (amount) | $214,365 | $116,425 | $97,940 | 84.1% | | Retained earnings | $515,662 | $509,452 | $6,210 | 1.2% | | Accumulated other comprehensive loss | $(77,879) | $(94,646) | $16,767 | -17.7% | | Total shareholders' equity | $652,148 | $531,231 | $120,917 | 22.8% | - The increase in common stock outstanding and amount is primarily due to the issuance of 2,283,782 shares for the acquisition of Northway Financial, Inc. on January 2, 2025[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $7,066 | $32,248 | $(25,182) | -78.1% | | Net cash provided by investing activities | $8,748 | $4,087 | $4,661 | 114.0% | | Net cash used in financing activities | $(116,962) | $(30,579) | $(86,383) | 282.5% | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(101,148) | $5,756 | $(106,904) | -1857.3% | | Cash, cash equivalents, and restricted cash at end of period | $113,815 | $105,560 | $8,255 | 7.8% | - Cash received in Northway acquisition was **$48.3 million**, while assets acquired (excluding cash) were **$1.16 billion** and liabilities assumed were **$1.12 billion**. Common stock issued for the acquisition was **$96.5 million**[22](index=22&type=chunk) [Notes to the Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements [NOTE 1 – BASIS OF PRESENTATION](index=10&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) This note describes the basis of preparation for the interim financial statements and the scope of consolidation - The unaudited consolidated interim financial statements are prepared in accordance with Form 10-Q instructions and GAAP, including normal recurring accruals. The Company includes Camden National Bank and its subsidiaries, eliminating intercompany transactions[23](index=23&type=chunk) - The Company acquired Northway Financial, Inc. on January 2, 2025, and its unconsolidated entities NCT III and NCT IV are now part of the Company's structure[26](index=26&type=chunk) [NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS AND TAX LEGISLATION](index=12&type=section&id=NOTE%202%20%E2%80%93%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS%20AND%20TAX%20LEGISLATION) This note discusses recently issued accounting standards and tax legislation and their expected impact on the Company - ASU No. 2023-09 (Income Taxes) is effective for annual periods after December 15, 2024, and ASU No. 2024-03 (Expense Disaggregation) is effective for annual periods after December 15, 2026[28](index=28&type=chunk)[29](index=29&type=chunk) - The Company does not expect a material impact to its consolidated financial statements from the adoption of these new accounting pronouncements[28](index=28&type=chunk)[29](index=29&type=chunk) [NOTE 3 – BUSINESS COMBINATIONS](index=12&type=section&id=NOTE%203%20%E2%80%93%20BUSINESS%20COMBINATIONS) This note details the acquisition of Northway Financial, Inc., including acquisition costs, assets acquired, and liabilities assumed - On January 2, 2025, Camden National Corporation completed the acquisition of Northway Financial, Inc. in an all-stock transaction, expanding its presence in New Hampshire with 17 new branches and increasing assets to **$6.9 billion**[30](index=30&type=chunk)[32](index=32&type=chunk) | Acquisition Costs (in thousands) | 3 Months Ended June 30, 2025 | 6 Months Ended June 30, 2025 | | :------------------------------- | :--------------------------- | :--------------------------- | | Merger and acquisition costs | $1,405 | $8,930 | - The acquisition generated **$56.8 million** in provisional goodwill, allocated to Camden National Bank, representing expected synergies from combining operations[34](index=34&type=chunk) | Acquired Assets & Liabilities (in thousands) | As Recorded at Acquisition (Jan 2, 2025) | | :------------------------------------------- | :--------------------------------------- | | Consideration Paid (Company common stock) | $96,490 | | Loans and loans held for sale | $772,592 | | Investments | $229,954 | | Cash and due from banks | $48,261 | | Core deposit intangible assets | $48,058 | | Total Assets Acquired | $1,156,455 | | Deposits | $971,673 | | Total Liabilities Assumed | $1,116,773 | | Goodwill | $56,808 | [NOTE 4 – INVESTMENTS](index=15&type=section&id=NOTE%204%20%E2%80%93%20INVESTMENTS) This note provides information on the Company's investment portfolio, including available-for-sale and held-to-maturity securities - Total investments increased to **$1.4 billion** as of June 30, 2025, from **$1.14 billion** at December 31, 2024, primarily due to the Northway acquisition and subsequent purchases, partially offset by sales and maturities[13](index=13&type=chunk)[263](index=263&type=chunk) | Investment Type (in thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | Change ($) | Change (%) | | :----------------------------- | :------------------------- | :----------------------------- | :--------- | :--------- | | Available-for-sale securities | $860,217 | $593,749 | $266,468 | 44.9% | | Held-to-maturity securities | $509,298 (Amortized Cost) | $517,778 (Amortized Cost) | $(8,480) | -1.6% | | Total investments | $1,401,720 | $1,139,284 | $262,436 | 23.0% | - Unrealized losses on AFS debt securities (excluding transferred securities) improved to **$45.0 million** (net of tax) as of June 30, 2025, from **$62.2 million** (net of tax) at December 31, 2024, due to changes in interest rates[54](index=54&type=chunk) [NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS](index=20&type=section&id=NOTE%205%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%20ON%20LOANS) This note details the composition of the loan portfolio and the allowance for credit losses, including changes and asset quality metrics | Loan Category (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--------------------------- | :------------ | :---------------- | :--------- | :--------- | | Commercial Loans | $2,596,860 | $2,094,749 | $502,111 | 24.0% | | Retail Loans | $2,334,509 | $2,020,510 | $313,999 | 15.5% | | Total loans | $4,931,369 | $4,115,259 | $816,110 | 19.8% | - The increase in total loans is largely attributable to the Northway acquisition, which added **$775.7 million** in loans held for investment[71](index=71&type=chunk)[270](index=270&type=chunk) | ACL on Loans (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :---------------- | :--------- | :--------- | | Ending balance | $53,022 | $35,728 | $17,294 | 48.4% | - The ACL on loans increased significantly due to a **$5.9 million** specific reserve for a syndicated commercial loan where the borrower filed for bankruptcy in Q2 2025, and a **$6.3 million** provision for acquired non-PCD loans from the Northway acquisition[84](index=84&type=chunk)[244](index=244&type=chunk) | Non-Performing Assets (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total non-accrual loans | $18,177 | $4,829 | $13,348 | 276.4% | | Non-accrual loans to total loans | 0.37% | 0.12% | 0.25% | 208.3% | [NOTE 6 – GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS](index=29&type=section&id=NOTE%206%20%E2%80%93%20GOODWILL%20AND%20CORE%20DEPOSIT%20INTANGIBLE%20ASSETS) This note explains the changes in goodwill and core deposit intangible assets, primarily due to business combinations | Intangible Asset (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------ | :------------ | :---------------- | :--------- | :--------- | | Goodwill | $151,505 | $94,697 | $56,808 | 60.0% | | Core deposit intangible assets | $45,526 | $415 | $45,111 | 10870.1% | - The increases are primarily due to the Northway acquisition on January 2, 2025, which generated **$56.8 million** in goodwill and **$48.1 million** in core deposit intangible assets[102](index=102&type=chunk)[103](index=103&type=chunk) [NOTE 7 – BORROWINGS](index=30&type=section&id=NOTE%207%20%E2%80%93%20BORROWINGS) This note provides details on the Company's short-term borrowings and junior subordinated debentures | Borrowing Type (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------------- | :------------ | :---------------- | :--------- | :--------- | | Short-term borrowings | $599,367 | $500,621 | $98,746 | 19.7% | | Junior subordinated debentures | $61,365 | $44,331 | $17,034 | 38.4% | | Total borrowings | $660,732 | $544,952 | $115,780 | 21.2% | - The increase in junior subordinated debentures is due to the assumption of two new tranches totaling **$20.6 million** from the Northway acquisition[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [NOTE 8 – REPURCHASE AGREEMENTS](index=30&type=section&id=NOTE%208%20%E2%80%93%20REPURCHASE%20AGREEMENTS) This note outlines the Company's customer repurchase agreements and changes related to acquisitions | Repurchase Agreements (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total customer repurchase agreements | $240,367 | $175,621 | $64,746 | 36.9% | - The Company assumed **$65.5 million** in customer repurchase agreements through the Northway acquisition[106](index=106&type=chunk)[116](index=116&type=chunk) [NOTE 9 – COMMITMENTS AND CONTINGENCIES](index=31&type=section&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses off-balance sheet commitments, credit exposures, and potential impacts from legal proceedings | Off-Balance Sheet Commitments (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Commitments to extend credit | $952,964 | $774,659 | $178,305 | 23.0% | | Standby letters of credit | $5,114 | $4,553 | $561 | 12.3% | | Total | $958,078 | $779,212 | $178,866 | 22.9% | | ACL on Off-Balance Sheet Credit Exposures (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------------------- | :------------ | :---------------- | :--------- | :--------- | | ACL on off-balance sheet credit exposures | $3,700 | $2,800 | $900 | 32.1% | - The Company believes that the outcome of pending and threatened legal actions will not have a material adverse effect on its consolidated financial statements[119](index=119&type=chunk) [NOTE 10 – DERIVATIVES AND HEDGING](index=32&type=section&id=NOTE%2010%20%E2%80%93%20DERIVATIVES%20AND%20HEDGING) This note describes the Company's use of derivative instruments to manage interest rate risk and their fair value - The Company uses interest rate derivatives (swaps) to manage interest rate risk, designating them as cash flow or fair value hedges[123](index=123&type=chunk)[125](index=125&type=chunk) | Derivative Type (in thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | Change ($) | Change (%) | | :----------------------------- | :------------------------- | :----------------------------- | :--------- | :--------- | | Interest rate contracts (assets) | $9,062 | $14,040 | $(4,978) | -35.5% | | Interest rate contracts (liabilities) | $2,048 | $232 | $1,816 | 782.8% | | Customer loan swaps (assets) | $10,757 | $11,717 | $(960) | -8.2% | | Customer loan swaps (liabilities) | $10,797 | $11,787 | $(990) | -8.4% | - The Company estimates an additional **$1.9 million** will be reclassified as a decrease to interest expense from cash flow hedges over the next 12 months[124](index=124&type=chunk) [NOTE 11 – BALANCE SHEET OFFSETTING](index=37&type=section&id=NOTE%2011%20%E2%80%93%20BALANCE%20SHEET%20OFFSETTING) This note explains the Company's policy regarding offsetting financial instruments on the consolidated statements of condition - The Company does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition but nets cash collateral against obligations under master netting arrangements[140](index=140&type=chunk) | Net Amount (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------ | :------------ | :---------------- | :--------- | :--------- | | Derivative assets | $7,262 | $12,295 | $(5,033) | -40.9% | | Derivative liabilities | $10,796 | $11,787 | $(991) | -8.4% | [NOTE 12 – REGULATORY CAPITAL REQUIREMENTS](index=38&type=section&id=NOTE%2012%20%E2%80%93%20REGULATORY%20CAPITAL%20REQUIREMENTS) This note presents the Company's and the Bank's compliance with regulatory capital requirements and their capital ratios - Both Camden National Corporation and Camden National Bank exceeded all regulatory capital requirements, including the capital conservation buffer, as of June 30, 2025, and December 31, 2024. The Bank is classified as "well capitalized"[146](index=146&type=chunk)[331](index=331&type=chunk) | Capital Ratio | Camden National Corporation (June 30, 2025) | Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | | :------------ | :------------------------------------------ | :------------------------------------------------------------------------------------ | | Total risk-based capital ratio | 13.35% | 10.50% | | Tier 1 risk-based capital ratio | 12.18% | 8.50% | | Common equity Tier 1 risk-based capital ratio | 10.88% | 7.00% | | Tier 1 leverage capital ratio | 8.74% | 4.00% | - **$63.0 million** of junior subordinated debentures were included in Tier 1 and total risk-based capital for the Company as of June 30, 2025, up from **$43.0 million** at December 31, 2024[148](index=148&type=chunk) [NOTE 13 – OTHER COMPREHENSIVE INCOME](index=39&type=section&id=NOTE%2013%20%E2%80%93%20OTHER%20COMPREHENSIVE%20INCOME) This note details the components of other comprehensive income, including unrealized gains and losses on debt securities and cash flow hedges | Component of AOCI (After-Tax, in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------ | :------------ | :---------------- | :--------- | :--------- | | Net Unrealized Gains (Losses) on Debt Securities | $(84,324) | $(104,015) | $19,691 | -18.9% | | Net Unrealized Gains (Losses) on Cash Flow Hedges | $6,045 | $8,958 | $(2,913) | -32.5% | | Defined Benefit Postretirement Plans | $400 | $411 | $(11) | -2.7% | | Total AOCI | $(77,879) | $(94,646) | $16,767 | -17.7% | - The increase in AOCI by **$16.8 million** for the six months ended June 30, 2025, was primarily driven by a **$19.7 million** improvement in net unrealized losses on debt securities, partially offset by a decrease in cash flow hedge gains[155](index=155&type=chunk) [NOTE 14 – REVENUE FROM CONTRACTS WITH CUSTOMERS](index=42&type=section&id=NOTE%2014%20%E2%80%93%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) This note disaggregates revenue from contracts with customers by various non-interest income streams | Revenue Stream (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Debit card interchange income | $3,646 | $3,069 | $577 | 18.8% | $6,879 | $5,935 | $944 | 15.9% | | Service charges on deposit accounts | $2,405 | $2,113 | $292 | 13.8% | $4,723 | $4,140 | $583 | 14.1% | | Fiduciary services income | $1,981 | $1,870 | $111 | 5.9% | $3,819 | $3,619 | $200 | 5.5% | | Investment program income | $1,794 | $1,441 | $353 | 24.5% | $3,491 | $2,680 | $811 | 30.2% | | Other non-interest income | $532 | $435 | $97 | 22.3% | $965 | $863 | $102 | 11.8% | | Total non-interest income within ASC 606 | $10,358 | $8,928 | $1,430 | 16.0% | $19,877 | $17,237 | $2,640 | 15.3% | [NOTE 15 – EMPLOYEE BENEFIT PLANS](index=43&type=section&id=NOTE%2015%20%E2%80%93%20EMPLOYEE%20BENEFIT%20PLANS) This note provides information on the costs associated with the Company's employee benefit plans | Benefit Cost (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | SERP interest cost | $228 | $180 | $48 | 26.7% | $457 | $361 | $96 | 26.6% | | Postretirement benefit costs | $36 | $34 | $2 | 5.9% | $72 | $67 | $5 | 7.5% | [NOTE 16 – EPS](index=43&type=section&id=NOTE%2016%20%E2%80%93%20EPS) This note presents the basic and diluted earnings per share calculations and the factors influencing weighted average shares outstanding | EPS Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Basic EPS | $0.84 | $0.82 | $0.02 | 2.4% | $1.27 | $1.73 | $(0.46) | -26.6% | | Diluted EPS | $0.83 | $0.81 | $0.02 | 2.5% | $1.26 | $1.72 | $(0.46) | -26.7% | - The weighted average common shares outstanding for basic EPS increased to **16.9 million** for the three months ended June 30, 2025, from **14.6 million** in the prior year, primarily due to the issuance of **2.28 million** shares for the Northway acquisition[160](index=160&type=chunk) [NOTE 17 – FAIR VALUE MEASUREMENT AND DISCLOSURE](index=44&type=section&id=NOTE%2017%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENT%20AND%20DISCLOSURE) This note describes the Company's fair value measurements for financial instruments using a three-level hierarchy - The Company measures financial instruments at fair value using a hierarchy (Level 1, 2, 3) based on observability of inputs. Loans held for sale are elected at fair value[163](index=163&type=chunk)[164](index=164&type=chunk)[168](index=168&type=chunk) | Financial Assets Measured at Fair Value (in thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :----------------------------------------------------- | :------------------------- | :----------------------------- | | Trading securities (Level 1) | $5,326 | $5,243 | | AFS debt securities (Level 2) | $860,217 | $593,749 | | Loans held for sale (Level 2) | $22,567 | $11,049 | | Customer loan swaps (Level 2) | $10,757 | $11,717 | | Interest rate contracts (Level 2) | $9,062 | $14,040 | | Financial Liabilities Measured at Fair Value (in thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :-------------------------------------------------------- | :------------------------- | :----------------------------- | | Deferred compensation (Level 1) | $5,326 | $5,243 | | Customer loan swaps (Level 2) | $10,797 | $11,787 | | Interest rate contracts (Level 2) | $2,048 | $232 | [NOTE 18 – SUBSEQUENT EVENTS](index=50&type=section&id=NOTE%2018%20%E2%80%93%20SUBSEQUENT%20EVENTS) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, making permanent many tax provisions from 2017[187](index=187&type=chunk) - The Company is evaluating the impact of the OBBBA but does not expect a material impact on its financial statements[187](index=187&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=48&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial condition, results of operations, and liquidity for the periods presented, highlighting key trends, significant events like the Northway acquisition, and future outlook. It also includes reconciliations of non-GAAP financial measures [FORWARD-LOOKING STATEMENTS](index=51&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions readers about forward-looking statements, highlighting inherent risks and uncertainties that could affect actual results - The report contains forward-looking statements subject to numerous risks, assumptions, and uncertainties, which may cause actual results to differ materially from expectations[189](index=189&type=chunk)[190](index=190&type=chunk) - Key factors that could cause differences include economic weakness, changes in monetary/fiscal policies, inflation, competition, cybersecurity risks, and the effects of the Northway acquisition[191](index=191&type=chunk)[196](index=196&type=chunk) [NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP](index=53&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20RECONCILIATION%20TO%20GAAP) This section provides non-GAAP financial measures used by management to assess performance and reconciles them to GAAP - Management uses non-GAAP financial measures like adjusted net income, adjusted diluted EPS, efficiency ratio, and tangible book value per share to evaluate performance, compare to peers, and analyze internal trends, excluding unusual items[198](index=198&type=chunk) | Non-GAAP Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted Net Income (in thousands) | $15,191 | $11,993 | $31,238 | $24,546 | | Adjusted Diluted EPS | $0.89 | $0.81 | $1.84 | $1.67 | | Non-GAAP efficiency ratio | 55.47% | 63.21% | 57.06% | 64.19% | | Tangible book value per share | $26.90 | $29.91 (Dec 31, 2024) | $26.90 | $29.91 (Dec 31, 2024) | - Adjustments for the six months ended June 30, 2025, include **$6.3 million** for non-PCD acquired loans, **$8.9 million** for merger and acquisition costs, and a **$2.4 million** deferred tax valuation adjustment related to the Northway acquisition[201](index=201&type=chunk)[202](index=202&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=58&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section discusses the Company's critical accounting estimates that require significant judgment and could materially impact financial results - Critical accounting estimates involve significant judgments and uncertainties, particularly the Allowance for Credit Losses (ACL) on loans and accounting for acquisitions (goodwill and intangible assets impairment review)[218](index=218&type=chunk) - There have been no material changes to the Company's critical accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[219](index=219&type=chunk) [GENERAL OVERVIEW](index=58&type=section&id=GENERAL%20OVERVIEW) This section provides a high-level description of Camden National Corporation's business, operations, and strategic focus - Camden National Corporation is a publicly-held bank holding company with **$6.9 billion** in assets as of June 30, 2025, headquartered in Camden, Maine, and operating primarily in Maine and New Hampshire[221](index=221&type=chunk) - The Company's main business is attracting deposits and extending loans to consumer, institutional, municipal, non-profit, and commercial customers, along with wealth management, trust, brokerage, investment advisory, and insurance services[221](index=221&type=chunk) [EXECUTIVE OVERVIEW](index=58&type=section&id=EXECUTIVE%20OVERVIEW) This section summarizes the Company's financial performance for the period, highlighting key drivers and the impact of significant events | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net income | $21.4 million | $25.3 million | $(3.9) million | -15% | | Diluted EPS | $1.26 | $1.72 | $(0.46) | -26.7% | - The operating results for the first half of 2025 were materially impacted by the acquisition of Northway Financial, Inc., which closed on January 2, 2025[224](index=224&type=chunk) - Adjusted net income (non-GAAP) for the six months ended June 30, 2025, was **$31.2 million**, and adjusted diluted EPS (non-GAAP) was **$1.84**, representing increases of **27%** and **10%** respectively, over the same period in 2024, after adjusting for one-time acquisition costs and provision for acquired non-PCD loans[227](index=227&type=chunk) - The Company incurred **$8.9 million** in transaction-related costs and **$6.5 million** in provision expense for acquired non-PCD loans related to the Northway acquisition[226](index=226&type=chunk) - A **$5.9 million** provision expense was recorded for one syndicated commercial loan due to the borrower entering bankruptcy in Q2 2025[227](index=227&type=chunk) [RESULTS OF OPERATIONS](index=60&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the Company's financial performance, focusing on key income and expense components over the reporting periods [Net Interest Income and Net Interest Margin](index=60&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) This section analyzes the Company's net interest income and net interest margin, detailing factors influencing interest revenue and expense | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :----- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net interest income (FTE) | $49.5 million | $32.3 million | $17.2 million | 53% | $98.7 million | $63.8 million | $34.9 million | 55% | | Net interest margin (FTE) | 3.06% | 2.36% | 0.70% | 29.7% | 3.05% | 2.32% | 0.73% | 31.5% | | Core net interest margin (FTE, non-GAAP) | 2.70% | 2.36% | 0.34% | 14.4% | 2.69% | 2.32% | 0.37% | 15.9% | - The increase in net interest income and margin was primarily driven by a **$1.0 billion** (18-19%) increase in average interest-earning assets due to the Northway acquisition, higher asset yields, and a decrease in the average cost of funds (**36-39 bps**) due to the changing interest rate environment and Northway's low-cost deposit franchise[231](index=231&type=chunk)[235](index=235&type=chunk) [Provision (Credit) for Credit Losses](index=65&type=section&id=Provision%20(Credit)%20for%20Credit%20Losses) This section discusses the Company's provision for credit losses, including factors contributing to changes in the allowance for credit losses | Provision (Credit) for Credit Losses (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Provision (credit) for loan losses | $6,596 | $188 | $6,408 | N.M. | $15,469 | $(976) | $16,445 | N.M. | | Provision for credit losses on off-balance sheet credit exposures | $324 | $462 | $(138) | -30% | $880 | $434 | $446 | 103% | | Credit for HTM debt securities | $0 | $0 | $0 | 0% | $0 | $(910) | $910 | -100% | | Total Provision (credit) for credit losses | $6,920 | $650 | $6,270 | 965% | $16,349 | $(1,452) | $17,801 | -1226% | - The significant increase in provision for loan losses for the six months ended June 30, 2025, was due to a **$6.3 million** provision for acquired non-PCD loans from the Northway acquisition and a **$5.9 million** additional reserve for a commercial borrower that entered bankruptcy[244](index=244&type=chunk) [Non-Interest Income](index=65&type=section&id=Non-Interest%20Income) This section analyzes the various components of the Company's non-interest income, highlighting growth drivers and trends | Non-Interest Income (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Debit card income | $3,646 | $3,069 | $577 | 18.8% | $6,879 | $5,935 | $944 | 15.9% | | Service charges on deposit accounts | $2,405 | $2,113 | $292 | 13.8% | $4,723 | $4,140 | $583 | 14.1% | | Income from fiduciary services | $1,981 | $1,870 | $111 | 5.9% | $3,819 | $3,619 | $200 | 5.5% | | Brokerage and insurance commissions | $1,794 | $1,441 | $353 | 24.5% | $3,491 | $2,680 | $811 | 30.2% | | Bank-owned life insurance | $1,003 | $694 | $309 | 44.5% | $1,663 | $1,377 | $286 | 20.8% | | Mortgage banking income, net | $1,060 | $516 | $544 | 105.4% | $1,568 | $1,324 | $244 | 18.4% | | Other income | $1,178 | $942 | $236 | 25.1% | $2,120 | $1,892 | $228 | 12.0% | | Total non-interest income | $13,067 | $10,645 | $2,422 | 22.8% | $24,263 | $20,967 | $3,296 | 15.7% | - The increase in non-interest income categories was primarily driven by the Northway acquisition, which added approximately **50,000** customer accounts, **28,000** new debit card customers, and one BOLI policy[246](index=246&type=chunk) - Brokerage and insurance commissions increased due to a **22%** increase in assets under management to **$1.1 billion**. Mortgage banking income increased due to positive changes in fair value on loans held for sale and residential mortgage loan pipelines[246](index=246&type=chunk)[248](index=248&type=chunk) [Non-Interest Expense](index=66&type=section&id=Non-Interest%20Expense) This section details the Company's non-interest expenses, explaining significant changes and cost management efforts | Non-Interest Expense (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Salaries and employee benefits | $19,392 | $15,601 | $3,791 | 24.3% | $39,635 | $31,555 | $8,080 | 25.6% | | Furniture, equipment and data processing | $4,294 | $3,497 | $797 | 22.8% | $9,025 | $7,126 | $1,899 | 26.6% | | Net occupancy costs | $2,693 | $1,981 | $712 | 35.9% | $5,726 | $4,051 | $1,675 | 41.3% | | Debit card expense | $1,725 | $1,311 | $414 | 31.6% | $3,415 | $2,575 | $840 | 32.6% | | Consulting and professional fees | $1,310 | $1,149 | $161 | 14.0% | $2,808 | $2,009 | $799 | 39.8% | | Regulatory assessments | $1,127 | $813 | $314 | 38.6% | $2,113 | $1,670 | $443 | 26.5% | | Amortization of core deposit intangible assets | $1,473 | $139 | $1,334 | N.M. | $2,946 | $278 | $2,668 | N.M. | | Merger and acquisition costs | $1,405 | $0 | $1,405 | N.M. | $8,930 | $0 | $8,930 | N.M. | | Other expenses | $4,086 | $2,772 | $1,314 | 47.4% | $7,268 | $5,351 | $1,917 | 35.8% | | Total non-interest expense | $37,596 | $27,310 | $10,286 | 37.7% | $82,047 | $54,672 | $27,375 | 50.1% | - The increases across most expense categories are primarily due to the Northway acquisition. The Company is optimizing and achieving targeted cost savings through elimination of redundancies, with further improvements expected in H2 2025[249](index=249&type=chunk) - Merger and acquisition costs totaled **$8.9 million** for the six months ended June 30, 2025, including personnel termination, consulting, legal, accounting, and contract termination costs[250](index=250&type=chunk)[251](index=251&type=chunk) [Income Tax Expense](index=68&type=section&id=Income%20Tax%20Expense) This section analyzes the Company's income tax expense, effective tax rate, and any significant tax adjustments | Income Tax Expense (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Income Tax Expense | $3,679 | $2,876 | $803 | 27.9% | $2,527 | $5,939 | $(3,412) | -57.5% | - The Company's estimated normalized effective tax rate is **20.6%**. A one-time income tax benefit of **$2.4 million** was recognized in Q1 2025 due to a deferred tax rate change (from **21.5%** to **22.8%**) following the Northway acquisition[253](index=253&type=chunk) [FINANCIAL CONDITION](index=69&type=section&id=FINANCIAL%20CONDITION) This section provides an overview of the Company's balance sheet, detailing changes in assets, liabilities, and equity [Cash and Cash Equivalents](index=69&type=section&id=Cash%20and%20Cash%20Equivalents) This section discusses the Company's cash and cash equivalents, explaining changes in balances and their utilization | Cash and Cash Equivalents (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--------------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total cash, cash equivalents and restricted cash | $113,815 | $214,963 | $(101,148) | -47.1% | - The decrease was due to utilizing cash to support loan growth and prepay FHLBB borrowings assumed from the Northway acquisition, despite acquiring **$48.3 million** in cash[257](index=257&type=chunk) [Investments](index=69&type=section&id=Investments) This section analyzes the Company's investment portfolio, including composition, fair value, and factors influencing changes | Investment Portfolio (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total investments | $1,401,720 | $1,139,284 | $262,436 | 23.0% | - The increase was driven by **$230.0 million** in investments acquired from Northway, **$120.9 million** in AFS debt securities purchases, and a **$22.4 million** increase in AFS fair value, partially offset by **$56.4 million** in sales of acquired Northway debt securities[263](index=263&type=chunk) - The debt securities portfolio has limited credit risk, with **92%** backed by the U.S. government and government-sponsored agencies as of June 30, 2025. The duration of the debt investment securities portfolio was **5.3 years**[262](index=262&type=chunk)[264](index=264&type=chunk) [Loans](index=71&type=section&id=Loans) This section details the Company's loan portfolio, including its composition, growth, and geographical and industry concentrations | Loan Portfolio (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total loans | $4,931,369 | $4,115,259 | $816,110 | 19.8% | | Commercial Loan Portfolio | $2,596,860 | $2,094,749 | $502,111 | 24.0% | | Retail Loan Portfolio | $2,334,509 | $2,020,510 | $313,999 | 15.5% | - The Northway acquisition contributed **$775.7 million** in loans held for investment[270](index=270&type=chunk) - Geographical concentrations as of June 30, 2025, were Maine (**57%**), New Hampshire (**25%**), and Massachusetts (**13%**), with increases in New Hampshire and Massachusetts due to the acquisition[271](index=271&type=chunk) - Industry concentrations in commercial real estate included non-residential building operators (**31%**) and lessors of residential buildings (**30%**) of the commercial real estate portfolio, each representing **13%** of total loans[272](index=272&type=chunk) [Asset Quality](index=73&type=section&id=Asset%20Quality) This section assesses the quality of the Company's assets, focusing on non-performing loans and the allowance for credit losses | Asset Quality Metric | June 30, 2025 | December 31, 2024 | Change | | :------------------- | :------------ | :---------------- | :----- | | Non-accrual loans | $18,177 (in thousands) | $4,829 (in thousands) | Up $13,348 (276.4%) | | Non-accrual loans to total loans | 0.37% | 0.12% | Up 0.25% | | ACL on loans | $53,022 (in thousands) | $35,728 (in thousands) | Up $17,294 (48.4%) | | ACL on loans to total loans | 1.08% | 0.87% | Up 0.21% | - The increase in non-accrual loans was primarily due to one syndicated commercial loan of **$12.0 million** where the borrower filed for bankruptcy[276](index=276&type=chunk) - The ACL on loans increased due to the Northway acquisition (provision for non-PCD loans) and the specific reserve for the bankrupt commercial loan. The ACL incorporates a higher probability of recession in its macroeconomic outlook[283](index=283&type=chunk)[284](index=284&type=chunk) [Goodwill and CDI Assets](index=77&type=section&id=Goodwill%20and%20CDI%20Assets) This section discusses the Company's goodwill and core deposit intangible assets, primarily from business combinations | Intangible Asset (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------ | :------------ | :---------------- | :--------- | :--------- | | Goodwill | $151,505 | $94,697 | $56,808 | 60.0% | | Core deposit intangible assets | $45,526 | $415 | $45,111 | 10870.1% | - The increases are directly attributable to the Northway acquisition, which generated **$56.8 million** in goodwill and **$48.1 million** in CDI assets[290](index=290&type=chunk) [Investment in BOLI](index=77&type=section&id=Investment%20in%20BOLI) This section provides information on the Company's bank-owned life insurance investments and their impact | BOLI (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------ | :------------ | :---------------- | :--------- | :--------- | | BOLI | $110,342 | $104,308 | $6,034 | 5.8% | - The increase was driven by the acquisition of one BOLI policy through the Northway acquisition[292](index=292&type=chunk) [Deferred Tax Assets](index=77&type=section&id=Deferred%20Tax%20Assets) This section explains the Company's deferred tax assets, including factors influencing their balance and valuation | Deferred Tax Assets (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Deferred tax assets | $57,340 | $40,037 | $17,303 | 43.2% | - The increase was due to the Northway acquisition, which led to an increase in the Company's deferred tax rate from **21.5%** to **22.8%** and the revaluation of legacy deferred tax assets[294](index=294&type=chunk) [Liabilities](index=78&type=section&id=Liabilities) This section details the Company's liabilities, including deposits and borrowings, and factors driving their changes | Liability Category (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total deposits | $5,514,712 | $4,633,167 | $881,545 | 19.0% | | Total borrowings | $660,732 | $544,952 | $115,780 | 21.2% | - Total deposits increased by **$881.5 million**, primarily due to the Northway acquisition, which added **$971.7 million** in deposits (**82%** low-cost core deposits). Excluding acquired deposits, organic deposits decreased by **$90.1 million** due to outflows from large customers[297](index=297&type=chunk)[298](index=298&type=chunk) - Total borrowings increased by **$115.8 million**, driven by increases in customer repurchase agreements and junior subordinated debentures (from Northway acquisition) and FHLBB advances[303](index=303&type=chunk) [Shareholders' Equity](index=79&type=section&id=Shareholders%27%20Equity) This section analyzes the Company's shareholders' equity, including common stock, retained earnings, and other comprehensive income | Shareholders' Equity (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total shareholders' equity | $652,148 | $531,231 | $120,917 | 22.8% | - The increase was driven by the issuance of **$96.5 million** in common stock for the Northway acquisition and a **$19.7 million** increase in AOCI due to lower interest rates[305](index=305&type=chunk)[328](index=328&type=chunk) - The Company declared a quarterly cash dividend of **$0.42** per share, with an annualized dividend yield of **4.14%** as of June 30, 2025[306](index=306&type=chunk) [LIQUIDITY](index=80&type=section&id=LIQUIDITY) This section discusses the Company's liquidity management strategies and available sources of funding to meet obligations - The Company manages liquidity to meet depositor withdrawals and credit commitments, utilizing deposits, FHLBB borrowings, cash flows from loans/investments, and operations[310](index=310&type=chunk) | Primary Liquidity Sources (in thousands) | June 30, 2025 | | :--------------------------------------- | :------------ | | Excess cash | $10,629 | | Unpledged investment securities | $477,344 | | Over collateralized securities pledging position | $62,125 | | FHLBB | $934,995 | | Fed Discount Window | $155,636 | | Unsecured borrowing lines | $94,872 | | Total available primary liquidity | $1,735,601 | - Total available primary liquidity of **$1.7 billion** was **2.2 times** uninsured and uncollateralized deposits as of June 30, 2025. An additional **$1.2 billion** in funding is accessible through brokered deposits[312](index=312&type=chunk) - Core deposits (excluding CDs and brokered deposits) increased by **$683.9 million** (**17%**) to **$4.6 billion**, primarily due to the Northway acquisition[314](index=314&type=chunk) [CAPITAL RESOURCES](index=84&type=section&id=CAPITAL%20RESOURCES) This section outlines the Company's capital structure and its compliance with regulatory capital requirements | Capital Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------- | :------------ | :---------------- | :--------- | :--------- | | Shareholders' equity (in thousands) | $652,148 | $531,231 | $120,917 | 22.8% | | Average equity to average assets | 9.35% | 8.76% | 0.59% | 6.7% | | Common equity ratio | 9.42% | 9.15% | 0.27% | 3.0% | | Tangible common equity ratio (non-GAAP) | 6.77% | 7.64% | -0.87% | -11.4% | - The increase in shareholders' equity was driven by the **$96.5 million** common stock issuance for the Northway acquisition and a **$19.7 million** increase in AOCI[305](index=305&type=chunk)[328](index=328&type=chunk) - The Company declared **$14.2 million** in cash dividends for the six months ended June 30, 2025, reflecting the increased share count from the Northway acquisition[329](index=329&type=chunk) - The Bank declared **$3.8 million** in dividends to the Company for the six months ended June 30, 2025[330](index=330&type=chunk) [RISK MANAGEMENT](index=85&type=section&id=RISK%20MANAGEMENT) This section describes the Company's approach to identifying, measuring, monitoring, and controlling various financial risks [Interest rate risk](index=85&type=section&id=Interest%20rate%20risk) This section details the Company's management of interest rate risk, including simulation models and hedging strategies - The Company uses a detailed and dynamic simulation model to quantify net interest income exposure to sustained interest rate changes, monitored by Board ALCO and Management ALCO[336](index=336&type=chunk)[337](index=337&type=chunk) | Estimated Changes In Net Interest Income | June 30, 2025 | June 30, 2024 | | :------------------------------------- | :------------ | :------------ | | Year 1: +200 basis points | (2.0)% | (3.9)% | | Year 1: -200 basis points | 3.2% | 4.8% | | Year 2: +200 basis points | 4.7% | 1.9% | | Year 2: Rates unchanged | 7.8% | 10.2% | | Year 2: -200 basis points | 11.6% | 18.8% | - If rates remain current, net interest income is projected to increase in year two. If rates increase **200 bps**, NII is projected to decrease in year one but increase in year two. If rates decrease **200 bps**, NII is projected to improve in both years[340](index=340&type=chunk)[342](index=342&type=chunk)[343](index=343&type=chunk) - The Company uses its investment portfolio and derivative financial instruments (loan swaps, interest rate swaps, floors, caps) to manage interest rate risk[344](index=344&type=chunk)[345](index=345&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK](index=82&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) This section incorporates by reference the market risk disclosures provided in Item 2, specifically within the "Risk Management" section, which details the Company's exposure to interest rate risk and its management strategies - Information regarding quantitative and qualitative disclosure about market risk is included in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management"[346](index=346&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=83&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms that the Company's management, including the CEO and CFO, evaluated the effectiveness of its disclosure controls and procedures as of June 30, 2025, and concluded they were effective. No material changes to internal control over financial reporting occurred during the period - The Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025[348](index=348&type=chunk) - There were no material changes in internal control over financial reporting during the period covered by this report[349](index=349&type=chunk) PART II. OTHER INFORMATION This part includes disclosures on legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=84&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section discloses information about legal actions involving the Company and management's assessment of their potential impact - The Company is subject to pending and threatened legal actions, but management believes these will not have a material adverse effect on its consolidated financial position[352](index=352&type=chunk) [ITEM 1A. RISK FACTORS](index=84&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section refers to the comprehensive discussion of factors that could adversely affect the Company's business and financial results - Readers should refer to the "Risk Factors" section in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of factors that may adversely affect the Company[353](index=353&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=84&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section reports on the Company's unregistered sales of equity securities and the use of proceeds from such transactions | Period | Total number of shares (or units) purchased | Average price paid per share (or unit) | | :-------------- | :------------------------------------------ | :------------------------------------- | | April 1-30, 2025 | 4,138 | $38.64 | | May 1-31, 2025 | — | — | | June 1-30, 2025 | — | — | | Total | 4,138 | $38.64 | - All shares purchased were surrendered by employees to satisfy tax withholding obligations for restricted stock awards[354](index=354&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=84&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section reports any defaults by the Company on its senior securities during the reporting period - No defaults upon senior securities were reported[355](index=355&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=84&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section provides disclosures related to mine safety, if applicable to the Company's operations - This item is not applicable[356](index=356&type=chunk) [ITEM 5. OTHER INFORMATION](index=84&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section includes any other material information not required to be disclosed elsewhere in the report - No other information was reported[357](index=357&type=chunk) [ITEM 6. EXHIBITS](index=85&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the report, including certifications and financial data - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer (31.1, 31.2, 32.1, 32.2) and iXBRL financial data (101, 104)[358](index=358&type=chunk) [SIGNATURES](index=86&type=section&id

Core Viewpoint - Camden National Corporation held its Second Quarter 2025 Earnings Conference Call, highlighting key financial results and strategic initiatives for the period [1][2]. Group 1: Company Overview - The conference call featured executives including Simon Griffiths (CEO) and Mike Archer (CFO), who provided insights into the company's performance and future outlook [2][5]. - Camden National Corporation trades on NASDAQ under the symbol CAC, and relevant materials are available on their Investor Relations website [4]. Group 2: Financial Performance - The presentation included discussions on non-GAAP financial measures, which are reconciled with GAAP in the earnings release [4].

Financial Data and Key Metrics Changes - The company reported strong quarterly earnings of $14.1 million, resulting in diluted earnings per share of $0.83, representing increases of 92% and 93% respectively over the previous quarter [12] - On a non-GAAP basis, adjusted earnings were $15.2 million or $0.89 per share, with pretax pre-provision net income excluding merger-related costs totaling $26.1 million, an increase of 13% from the prior quarter [4][13] - The tangible common equity ratio expanded to 6.77% at June 30, with a 3% increase in tangible book value during the second quarter, reaching $26.9 per share [5][18] Business Line Data and Key Metrics Changes - The company experienced robust growth in home equity loan balances, with an increase of $16.7 million in the second quarter compared to $18 million for the entire previous year [28] - Non-interest income reached $13.1 million for the second quarter, exceeding guidance provided last quarter [14] - The non-GAAP efficiency ratio improved to 55.5%, the lowest level since 2022, indicating enhanced operational efficiency [13] Market Data and Key Metrics Changes - Average deposits were down 1% on a linked quarter basis due to seasonal trends, but there has been encouraging growth as summer approaches [7] - The loan pipeline was robust at June 30, with a committed loan pipeline of $150 million, representing a 40% increase over the last quarter [18] Company Strategy and Development Direction - The company is focused on unlocking the financial potential of its combined franchise following the acquisition of Northway Financial, particularly in the New Hampshire market [4] - Strategic investments in digital and talent-focused initiatives are expected to drive revenue growth and enhance customer relationships [10] - The company is committed to expanding its treasury management services and modernizing its mobile app to attract a digitally savvy customer base [10][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the loan portfolio, despite one commercial borrower filing for bankruptcy, indicating this is not a broader trend [6] - The company anticipates strong capital generation in the second half of the year, driven by the realization of synergies and sustained revenue growth [18] - Management remains optimistic about the second half of the year, citing positive momentum in commercial volume and the integration of the New Hampshire franchise [50] Other Important Information - The company successfully launched new features in its mobile app, including a digital financial literacy program, which has seen strong customer engagement [10][60] - The company is actively working with other lenders on the bankruptcy case of a borrower, with expectations for resolution later this year [6][22] Q&A Session Summary Question: What type of C&I loan was it, and did the placement on non-accrual impact net interest income? - The loan was characterized as a service company C&I loan, and it did impact net interest income by about one basis point of net interest margin for the quarter [22][23] Question: What are the drivers of the improvement in the loan pipeline and the coupon on new originations? - The company is seeing a broad-based pickup in commercial and home equity loans, with a robust loan pipeline indicating strong demand [28][29] Question: Can you provide guidance on fee income for the next quarter? - The company estimates non-interest income for the third quarter to be in the range of $12 million to $13 million, with some caution due to fair value accounting impacts [41][44] Question: What is the overall exposure to syndicated loans? - The total exposure to the loan in question is $12 million, with a total exposure of around $200 million across five or six other banks [36] Question: Will the company consider a buyback if the stock remains low? - Management indicated that they have a buyback option available and are optimistic about the company's performance in the second half of the year [50]

Core Insights - Camden National reported revenue of $62.28 million for the quarter ended June 2025, reflecting a 45.4% increase year-over-year [1] - The company's EPS was $0.89, up from $0.81 in the same quarter last year, but fell short of the consensus estimate of $1.12, resulting in an EPS surprise of -20.54% [1] - The revenue exceeded the Zacks Consensus Estimate of $61.46 million, indicating a positive surprise of +1.33% [1] Financial Performance Metrics - Net interest margin was reported at 3.1%, matching the average estimate from two analysts [4] - Annualized net charge-offs to average loans were 0%, outperforming the estimated 0.1% [4] - Average balance of total interest-earning assets was $6.41 billion, slightly below the estimated $6.42 billion [4] - Efficiency ratio (GAAP) was 60.4%, higher than the estimated 59% [4] - Total non-interest income reached $13.07 million, surpassing the average estimate of $12.01 million [4] - Net interest income was reported at $49.21 million, slightly below the estimated $49.31 million [4] Stock Performance - Camden National's shares returned +2.2% over the past month, compared to a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]