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]

Group 1: Earnings Performance - Camden National reported quarterly earnings of $0.89 per share, missing the Zacks Consensus Estimate of $1.12 per share, but showing an increase from $0.81 per share a year ago, resulting in an earnings surprise of -20.54% [1] - The company posted revenues of $62.28 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.33%, compared to year-ago revenues of $42.83 million [2] Group 2: Stock Performance and Outlook - Camden National shares have declined approximately 3% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $63.25 million, and for the current fiscal year, it is $4.33 on revenues of $249.43 million [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 16% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Another bank in the same industry, Citizens & Northern, is expected to report quarterly earnings of $0.47 per share, reflecting a year-over-year change of +17.5% [9]

Net Income of $14.1 Million and Diluted EPS of $0.83 for the Second Quarter CAMDEN, Maine, July 29, 2025 /PRNewswire/ -- Camden National Corporation (NASDAQ: CAC; "Camden National" or the "Company") reported earnings for the quarter ended June 30, 2025, of $14.1 million and diluted earnings per share ("EPS") of $0.83, increases of 92% and 93%, respectively, compared to the first quarter of 2025. "We're pleased to report strong results in our first full quarter as a unified organization following the Northwa ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) Camden National Corporation reported strong second quarter 2025 earnings, with net income and diluted EPS significantly increasing compared to the first quarter of 2025, reflecting the successful integration and financial potential of the Northway Financial acquisition Q2 2025 Earnings Summary | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Net Income | $14.1 million | - | +92% | | Diluted EPS | $0.83 | - | +93% | - Pre-tax, pre-provision income, excluding one-time merger-related expenses, increased **13%** over the prior quarter, reinforcing the strategic value of the Northway acquisition through cost synergies and solid revenue growth[2](index=2&type=chunk) [Q2 2025 Highlights](index=1&type=section&id=Q2%202025%20Highlights) Key financial and operational metrics for Q2 2025 showed improvements, including net interest margin expansion, a decreased efficiency ratio, annualized loan growth, and increased book value per share, alongside stable asset quality Q2 2025 Performance Ratios | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Interest Margin (GAAP) | 3.06% | 3.04% | +2 bps | | Core Net Interest Margin (non-GAAP) | 2.70% | 2.68% | +2 bps | | Efficiency Ratio (GAAP) | 60.37% | 74.02% | -13.65% | | Efficiency Ratio (non-GAAP) | 55.47% | 58.72% | -3.25% | - Loans grew **4%** on an annualized basis, with committed loan pipelines totaling **$149.5 million**, a **40% increase** since March 31, 2025[3](index=3&type=chunk) Q2 2025 Per Share and Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Book value per share | $38.54 | - | +2% | | Tangible book value per share (non-GAAP) | $26.90 | - | +3% | | Loans 30-89 days past due | 0.08% of total loans | - | - | | Annualized net charge-offs | 0.02% of average loans | - | - | [Financial Condition](index=2&type=section&id=FINANCIAL%20CONDITION) [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, total assets slightly decreased, while investments and loans showed modest increases, and deposits experienced a slight decrease with normal outflows early in the quarter, followed by inflows Balance Sheet Summary | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Total assets | $6.9 billion | - | -1% | | Investments | $1.4 billion | - | +1% | | Loans | $4.9 billion | - | +1% | | Deposits | $5.5 billion | - | -1% | - The duration of the Company's total investment portfolio remained stable at **5.3 years** for both June 30, 2025, and March 31, 2025[4](index=4&type=chunk) - The loan-to-deposit ratio increased to **89%** at June 30, 2025, from **87%** at March 31, 2025[7](index=7&type=chunk) [Loan Portfolio and Credit Quality](index=2&type=section&id=Loan%20Portfolio%20and%20Credit%20Quality) Loan growth was observed across most segments, except residential, due to sales, and the allowance for credit losses increased, primarily due to one commercial loan filing for bankruptcy, leading to a rise in non-performing loans - Linked-quarter growth in loan balances was across all segments, except for the residential loan portfolio, as **39%** of residential mortgage production was sold during Q2 2025[5](index=5&type=chunk) Loan Credit Quality Metrics | Metric | June 30, 2025 | QoQ Change | | :--- | :--- | :--- | | Allowance for credit losses (ACL) on loans | 1.08% of total loans | +12 bps | | Non-performing loans | 0.37% of total loans | +22 bps | - The increase in ACL and non-performing loans was driven by one commercial loan where the borrower filed for bankruptcy, with resolution anticipated in the second half of 2025[6](index=6&type=chunk) [Capital Ratios and Dividends](index=2&type=section&id=Capital%20Ratios%20and%20Dividends) The Company's regulatory capital ratios remain strong and well in excess of requirements, continuing to rebuild following the Northway acquisition, and a cash dividend of $0.42 per share was declared Regulatory Capital Ratios | Capital Ratio | June 30, 2025 | | :--- | :--- | | Common equity Tier 1 risk-based capital ratio | 10.88% | | Tier 1 risk-based capital ratio | 12.18% | | Total risk-based capital ratio | 13.35% | | Tier 1 leverage ratio | 8.74% | - A cash dividend of **$0.42 per share** was announced, representing an annualized dividend yield of **4.14%** based on the closing share price on June 30, 2025[9](index=9&type=chunk) [Financial Operating Results (Q2 2025 vs. Q1 2025)](index=2&type=section&id=FINANCIAL%20OPERATING%20RESULTS%20(Q2%202025%20vs.%20Q1%202025)) [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased slightly in Q2 2025, driven by the expansion of both GAAP and non-GAAP core net interest margins, while fair value mark accretion income remained consistent Net Interest Income and Margin Performance | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Net interest income | $49.2 million | $48.858 million | +1% | | Net interest margin | 3.06% | 3.04% | +2 bps | | Core net interest margin (non-GAAP) | 2.70% | 2.68% | +2 bps | - The Company recognized **$5.0 million** of fair value mark accretion income in net interest income for both Q1 and Q2 2025[10](index=10&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) Provision expense decreased significantly in Q2 2025 compared to Q1 2025, with the current quarter's provision primarily attributed to a specific commercial loan placed on non-accrual Provision for Credit Losses | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Provision expense | $6.9 million | $9.4 million | -27% | - The Q1 2025 provision included **$6.3 million** for non-purchase credit deteriorated (non-PCD) loans acquired from Northway, while the Q2 2025 provision was driven by a commercial loan placed on non-accrual[11](index=11&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Non-interest income experienced a notable 17% increase in Q2 2025, primarily driven by strong growth in mortgage banking income, debit card income, and bank-owned life insurance Non-Interest Income Performance | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Non-interest income | $13.1 million | $11.2 million | +17% | - The increase was driven by a **$552,000** increase in mortgage banking income, a **$413,000** increase in debit card income, and a **$343,000** increase in bank-owned life insurance[12](index=12&type=chunk) [Non-Interest Expense](index=2&type=section&id=Non-Interest%20Expense) Non-interest expense decreased significantly in Q2 2025, mainly due to a reduction in merger and acquisition costs and the realization of expense synergies following the Northway acquisition integration, with further improvements anticipated Non-Interest Expense Performance | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Non-interest expense | $37.6 million | $44.5 million | -15% | - The decrease reflects a **$6.2 million** reduction in merger and acquisition costs associated with the Northway acquisition and expense synergies realized after the integration of teams, branches, and systems in late-March 2025[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company expects run-rate operating expenses to continue improving in the second half of 2025 as the full benefit of cost savings is realized[14](index=14&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Q2 2025 Conference Call](index=3&type=section&id=Q2%202025%20Conference%20Call) Camden National Corporation will host a conference call and webcast on July 29, 2025, to discuss its second quarter 2025 financial results and outlook, providing details for live access and subsequent replay - A conference call and webcast will be held on Tuesday, July 29, 2025, at **3:00 p.m. Eastern Time**[15](index=15&type=chunk) - Participants can dial in (Domestic: **833-470-1428**, Other: **929-526-1599**, Access code: **118700**) or access the live webcast via https://events.q4inc.com/attendee/238427677[15](index=15&type=chunk) - A replay of the webcast and the conference call transcript will be available on Camden National's website[15](index=15&type=chunk) [About Camden National Corporation](index=3&type=section&id=ABOUT%20CAMDEN%20NATIONAL%20CORPORATION) Camden National Corporation is Northern New England's largest publicly traded bank holding company, offering comprehensive community banking, wealth management, investment, and financial planning services through its 72 banking centers - Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company with **$6.9 billion** in assets[16](index=16&type=chunk) - Founded in 1875, Camden National Bank operates **72 banking centers** in Maine and New Hampshire, providing digital banking and personalized service[16](index=16&type=chunk) - Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This press release contains forward-looking statements subject to numerous risks and uncertainties, including competitive pressures, economic conditions, operational risks, regulatory changes, and acquisition-related factors, with no obligation for the Company to update them - Forward-looking statements are identified by future or conditional verbs and relate to plans, expectations, goals, and projections, not strictly historical facts[18](index=18&type=chunk) - Factors that could cause actual results to differ materially include increased competitive pressures, inflation, labor market competition, deterioration in investment securities value, changes in consumer habits, interest rate environment, general economic conditions, operational risks (cybersecurity, fraud, pandemics), legislative/regulatory changes, financial services industry volatility, and risks associated with the Northway acquisition[18](index=18&type=chunk)[19](index=19&type=chunk) - Camden National does not have any obligation to update forward-looking statements[19](index=19&type=chunk) [Use of Non-GAAP Measures and Annualized Data](index=4&type=section&id=USE%20OF%20NON-GAAP%20MEASURES) Management utilizes non-GAAP financial measures to supplement GAAP results for performance evaluation, peer comparison, and trend analysis, emphasizing they are not substitutes for GAAP, and annualized data is presented for illustrative purposes to discern underlying performance trends - Non-GAAP financial measures (e.g., adjusted net income, core net interest margin, tangible book value per share) are used for measuring performance against peers, analyzing internal performance, and helping investors understand operating trends[20](index=20&type=chunk) - These non-GAAP measures remove the impact of unusual items and should not be viewed as a substitute for GAAP operating results nor are they necessarily comparable to non-GAAP measures from other institutions[20](index=20&type=chunk) - Annualized data is presented for analytical and decision-making purposes to discern underlying performance trends, but may not be indicative of any four-quarter period and is for illustrative purposes only[21](index=21&type=chunk) [Detailed Financial Data](index=5&type=section&id=Detailed%20Financial%20Data) [Selected Financial Data (GAAP & Non-GAAP)](index=5&type=section&id=Selected%20Financial%20Data) This section presents a comprehensive table of selected financial data, including financial condition, operating data, profitability ratios, asset quality ratios, and capital ratios, for various periods, with non-GAAP measures clearly indicated Selected Financial Data | (In thousands, except number of shares and per share data) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Financial Condition Data** | | | | | | | Loans | $4,931,369 | $4,885,086 | $4,139,361 | $4,931,369 | $4,139,361 | | Total assets | 6,920,044 | 6,964,785 | 5,724,380 | 6,920,044 | 5,724,380 | | Deposits | 5,514,712 | 5,597,478 | 4,514,020 | 5,514,712 | 4,514,020 | | Shareholders' equity | 652,148 | 640,054 | 508,286 | 652,148 | 508,286 | | **Operating Data and Per Share Data** | | | | | | | Net income | $14,081 | $7,326 | $11,993 | $21,407 | $25,265 | | (1) Adjusted net income (non-GAAP) | 15,191 | 16,047 | 11,993 | 31,238 | 24,546 | | Diluted EPS | 0.83 | 0.43 | 0.81 | 1.26 | 1.72 | | (1) Adjusted diluted EPS (non-GAAP) | 0.89 | 0.95 | 0.81 | 1.84 | 1.67 | | **Profitability Ratios** | | | | | | | Return on average assets | 0.82 % | 0.43 % | 0.84 % | 0.63 % | 0.89 % | | (1) Adjusted return on average assets (non-GAAP) | 0.89 % | 0.94 % | 0.84 % | 0.91 % | 0.87 % | | GAAP efficiency ratio | 60.37 % | 74.02 % | 63.77 % | 67.07 % | 64.76 % | | (1) Efficiency ratio (non-GAAP) | 55.47 % | 58.72 % | 63.21 % | 57.06 % | 64.19 % | | Net interest margin (fully-taxable equivalent) | 3.06 % | 3.04 % | 2.36 % | 3.05 % | 2.32 % | | (1) Core net interest margin (non-GAAP) | 2.70 % | 2.68 % | 2.36 % | 2.69 % | 2.32 % | | **Asset Quality Ratios** | | | | | | | ACL on loans to total loans | 1.08 % | 0.96 % | 0.86 % | 1.08 % | 0.86 % | | Non-performing loans to total loans | 0.37 % | 0.15 % | 0.12 % | 0.37 % | 0.19 % | | **Capital Ratios** | | | | | | | Book value per share | $38.54 | $37.91 | $34.89 | $38.54 | $34.89 | | (1) Tangible book value per share (non-GAAP) | $26.90 | $26.02 | $28.34 | $26.90 | $28.34 | | Tier 1 leverage capital ratio | 8.74 % | 8.58 % | 9.64 % | 8.74 % | 9.64 % | [Consolidated Statements of Condition](index=6&type=section&id=Consolidated%20Statements%20of%20Condition) This table provides a detailed breakdown of the Company's assets, liabilities, and shareholders' equity as of June 30, 2025, March 31, 2025, and June 30, 2024, including percentage changes for both quarterly and annual comparisons Consolidated Statements of Condition (In thousands) | (In thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | % Change Jun 2025 vs. Mar 2025 | % Change Jun 2025 vs. Jun 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | | | Cash, cash equivalents and restricted cash | $113,815 | $219,414 | $105,560 | (48)% | 8 % | | Total investments | 1,401,720 | 1,383,956 | 1,135,198 | 1 % | 23 % | | Loans held for sale, at fair value | 22,567 | 11,059 | 14,321 | 104 % | 58 % | | Total loans | 4,931,369 | 4,885,086 | 4,139,361 | 1 % | 19 % | | Less: allowance for credit losses on loans | (53,022) | (46,723) | (35,412) | 13 % | 50 % | | Net loans | 4,878,347 | 4,838,363 | 4,103,949 | 1 % | 19 % | | Goodwill and core deposit intangible assets | 197,031 | 200,770 | 95,390 | (2)% | 107 % | | Total assets | $6,920,044 | $6,964,785 | $5,724,380 | (1)% | 21 % | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | | | | Total deposits | 5,514,712 | 5,597,478 | 4,514,020 | (1)% | 22 % | | Short-term borrowings | 599,367 | 567,436 | 552,606 | 6 % | 8 % | | Total liabilities | 6,267,896 | 6,324,731 | 5,216,094 | (1)% | 20 % | | Total shareholders' equity | 652,148 | 640,054 | 508,286 | 2 % | 28 % | | Total liabilities and shareholders' equity | $6,920,044 | $6,964,785 | $5,724,380 | (1)% | 21 % | [Consolidated Statements of Income (Quarterly)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Quarterly)) This table presents the Company's consolidated statements of income for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing interest income, interest expense, non-interest income, and non-interest expense, along with net income and EPS, showing quarterly and annual changes Consolidated Statements of Income (Quarterly, In thousands) | (In thousands, except per share data) | June 30, 2025 | March 31, 2025 | June 30, 2024 | % Change Jun 2025 vs. Mar 2025 | % Change Jun 2025 vs. Jun 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Interest Income** | | | | | | | Total interest income | $79,323 | $78,395 | $62,162 | 1 % | 28 % | | **Interest Expense** | | | | | | | Total interest expense | 30,114 | 29,537 | 29,978 | 2 % | — % | | Net interest income | 49,209 | 48,858 | 32,184 | 1 % | 53 % | | Provision for credit losses | 6,920 | 9,429 | 650 | (27)% | N.M. | | Net interest income after provision for credit losses | 42,289 | 39,429 | 31,534 | 7 % | 34 % | | **Non-Interest Income** | | | | | | | Total non-interest income | 13,067 | 11,196 | 10,645 | 17 % | 23 % | | **Non-Interest Expense** | | | | | | | Total non-interest expense | 37,596 | 44,451 | 27,310 | (15)% | 38 % | | Income before income tax expense (benefit) | 17,760 | 6,174 | 14,869 | 188 % | 19 % | | Income Tax Expense (Benefit) | 3,679 | (1,152) | 2,876 | (419)% | 28 % | | Net Income | $14,081 | $7,326 | $11,993 | 92 % | 17 % | | **Per Share Data** | | | | | | | Diluted earnings per share | $0.83 | $0.43 | $0.81 | 93 % | 2 % | [Consolidated Statements of Income (Year-to-Date)](index=8&type=section&id=Consolidated%20Statements%20of%20Income%20(Year-to-Date)) This table provides the consolidated statements of income for the six months ended June 30, 2025, and June 30, 2024, offering a year-to-date perspective on the Company's financial performance, including significant changes in provision for credit losses and merger and acquisition costs Consolidated Statements of Income (Year-to-Date, In thousands) | (In thousands, except per share data) | June 30, 2025 | June 30, 2024 | % Change Jun 2025 vs. Jun 2024 | | :--- | :--- | :--- | :--- | | **Interest Income** | | | | | Total interest income | $157,718 | $122,345 | 29 % | | **Interest Expense** | | | | | Total interest expense | 59,651 | 58,888 | 1 % | | Net interest income | 98,067 | 63,457 | 55 % | | Provision (credit) for credit losses | 16,349 | (1,452) | N.M. | | Net interest income after provision (credit) for credit losses | 81,718 | 64,909 | 26 % | | **Non-Interest Income** | | | | | Total non-interest income | 24,263 | 20,967 | 16 % | | **Non-Interest Expense** | | | | | Salaries and employee benefits | 39,635 | 31,555 | 26 % | | Merger and acquisition costs | 8,930 | — | N.M. | | Total non-interest expense | 82,047 | 54,672 | 50 % | | Income before income tax expense | 23,934 | 31,204 | (23)% | | Income Tax Expense | 2,527 | 5,939 | (57)% | | Net Income | $21,407 | $25,265 | (15)% | | **Per Share Data** | | | | | Diluted earnings per share | $1.26 | $1.72 | (27)% | [Quarterly Average Balance and Yield/Rate Analysis](index=9&type=section&id=Quarterly%20Average%20Balance%20and%20Yield/Rate%20Analysis) This table details the average balances and corresponding yields/rates for interest-earning assets and funding liabilities for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, including net interest rate spread and margin, providing insights into quarterly performance Quarterly Average Balance and Yield/Rate Analysis (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | Yield/Rate Jun 30, 2025 | Yield/Rate Mar 31, 2025 | Yield/Rate Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | | | Total interest-earning assets | $6,414,607 | $6,424,810 | $5,413,211 | 4.94 % | 4.91 % | 4.58 % | | Total assets | $6,885,795 | $6,902,366 | $5,736,276 | | | | | **Liabilities & Shareholders' Equity** | | | | | | | | Total deposits | $5,251,327 | $5,330,745 | $4,349,135 | 1.70 % | 1.70 % | 2.05 % | | Total borrowings | 901,896 | 842,631 | 782,003 | 3.50 % | 3.44 % | 4.00 % | | Total funding liabilities | 6,153,223 | 6,173,376 | 5,131,138 | 1.96 % | 1.94 % | 2.35 % | | Net interest rate spread (fully-taxable equivalent) | | | | 2.98 % | 2.97 % | 2.23 % | | Net interest margin (fully-taxable equivalent) | | | | 3.06 % | 3.04 % | 2.36 % | | Core net interest margin (fully-taxable equivalent) (non-GAAP) | | | | 2.70 % | 2.68 % | 2.36 % | [Year-to-Date Average Balance and Yield/Rate Analysis](index=10&type=section&id=Year-to-Date%20Average%20Balance%20and%20Yield/Rate%20Analysis) This table presents the year-to-date average balances and yields/rates for interest-earning assets and funding liabilities for the six months ended June 30, 2025, and June 30, 2024, providing insights into longer-term trends in balance sheet composition and profitability Year-to-Date Average Balance and Yield/Rate Analysis (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | June 30, 2024 | Yield/Rate Jun 30, 2025 | Yield/Rate Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Total interest-earning assets | $6,419,820 | $5,412,717 | 4.92 % | 4.51 % | | Total assets | $6,894,167 | $5,727,128 | | | | **Liabilities & Shareholders' Equity** | | | | | | Total deposits | $5,290,973 | $4,359,912 | 1.70 % | 2.01 % | | Total borrowings | 872,399 | 771,944 | 3.47 % | 3.98 % | | Total funding liabilities | 6,163,372 | 5,131,856 | 1.95 % | 2.31 % | | Net interest rate spread (fully-taxable equivalent) | | | 2.97 % | 2.20 % | | Net interest margin (fully-taxable equivalent) | | | 3.05 % | 2.32 % | | Core net interest margin (fully-taxable equivalent) (non-GAAP) | | | 2.69 % | 2.32 % | [Year-to-Date Organic Loans and Deposits Growth](index=11&type=section&id=Year-to-Date%20Organic%20Loans%20And%20Deposits%20Growth) This table breaks down the year-to-date organic growth in loans and deposits by segment, clearly separating the impact of the Northway acquisition from underlying organic changes in the portfolio Year-to-Date Organic Loans and Deposits Growth (In thousands) | (In thousands) | June 30, 2025 | December 31, 2024 | Northway Acquisition Purchase Accounting | Six Months Ended June 30, 2025 Organic Growth | % Organic Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | **Loans:** | | | | | | | Commercial real estate | $2,089,977 | $1,711,964 | $360,272 | $17,741 | 1 % | | Commercial | 506,883 | 382,785 | 106,487 | 17,611 | 5 % | | Residential real estate | 2,018,332 | 1,752,249 | 273,349 | (7,266) | — % | | Consumer and home equity | 316,177 | 268,261 | 35,555 | 12,361 | 5 % | | Total loans | $4,931,369 | $4,115,259 | $775,663 | $40,447 | 1 % | | **Deposits:** | | | | | | | Non-interest checking | $1,118,080 | $925,571 | $197,320 | $(4,811) | (1)% | | Interest checking | 1,663,335 | 1,483,589 | 315,891 | (136,145) | (9)% | | Savings and money market | 1,823,275 | 1,511,589 | 285,889 | 25,797 | 2 % | | Certificates of deposit | 698,185 | 532,424 | 172,573 | (6,812) | (1)% | | Brokered deposits | 211,837 | 179,994 | — | 31,843 | 18 % | | Total deposits | $5,514,712 | $4,633,167 | $971,673 | $(90,128) | (2)% | [Asset Quality Data](index=12&type=section&id=Asset%20Quality%20Data) This table provides detailed asset quality metrics, including non-accrual loans, non-performing loans and assets, loans 30-89 days past due, allowance for credit losses, and net charge-offs, for various periods, highlighting trends in credit risk Asset Quality Data (In thousands) | (In thousands) | June 30, 2025 (YTD) | March 31, 2025 (QTD) | December 31, 2024 (YTD) | September 30, 2024 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Non-accrual loans:** | | | | | | | Total non-accrual loans | $18,177 | $7,251 | $4,829 | $5,350 | $7,795 | | Total non-performing loans | 18,177 | 7,251 | 4,829 | 5,350 | 7,795 | | Total non-performing assets | $18,249 | $7,323 | $4,829 | $5,350 | $7,795 | | **Loans 30-89 days past due:** | | | | | | | Total loans 30-89 days past due | $4,114 | $3,341 | $2,261 | $1,391 | $2,245 | | **ACL on loans:** | | | | | | | ACL on loans at the end of the period | $53,022 | $46,723 | $35,728 | $35,414 | $35,412 | | Net charge-offs | 1,246 | 949 | 1,260 | 828 | 547 | | **Ratios:** | | | | | | | Non-performing loans to total loans | 0.37 % | 0.15 % | 0.12 % | 0.13 % | 0.19 % | | ACL on loans to total loans | 1.08 % | 0.96 % | 0.87 % | 0.86 % | 0.86 % | | Net charge-offs to average loans (annualized): Quarter-to-date | 0.02 % | 0.08 % | 0.04 % | 0.03 % | 0.04 % | | ACL on loans to non-performing loans | 291.70 % | 644.37 % | 553.07 % | 506.28 % | 367.31 % | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) [Adjusted Net Income and EPS Reconciliation](index=14&type=section&id=Adjusted%20Net%20Income;%20Adjusted%20Diluted%20Earnings%20per%20Share;%20Adjusted%20Return%20on%20Average%20Assets;%20and%20Adjusted%20Return%20on%20Average%20Equity) This section provides a reconciliation of GAAP net income, diluted EPS, and related profitability ratios to their adjusted non-GAAP counterparts, detailing adjustments for provision for non-PCD acquired loans, merger and acquisition costs, and tax impacts Adjusted Net Income and EPS Reconciliation (In thousands) | (In thousands, except number of shares, per share data and ratios) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Adjusted Net Income:** | | | | | | | Net income, as presented | $14,081 | $7,326 | $11,993 | $21,407 | $25,265 | | Total adjustments before taxes | 1,405 | 14,068 | — | 15,473 | (910) | | Adjusted net income | $15,191 | $16,047 | $11,993 | $31,238 | $24,546 | | **Adjusted Diluted Earnings per Share:** | | | | | | | Diluted earnings per share, as presented | $0.83 | $0.43 | $0.81 | $1.26 | $1.72 | | Adjusted diluted earnings per share | $0.89 | $0.95 | $0.81 | $1.84 | $1.67 | | **Adjusted Return on Average Assets:** | | | | | | | Return on average assets, as presented | 0.82 % | 0.43 % | 0.84 % | 0.63 % | 0.89 % | | Adjusted return on average assets | 0.89 % | 0.94 % | 0.84 % | 0.91 % | 0.87 % | | **Adjusted Return on Average Equity:** | | | | | | | Return on average equity, as presented | 8.77 % | 4.75 % | 9.60 % | 6.80 % | 10.18 % | | Adjusted return on average equity | 9.47 % | 10.40 % | 9.60 % | 9.92 % | 9.89 % | [Pre-Tax, Pre-Provision Income Reconciliation](index=15&type=section&id=Pre-Tax,%20Pre-Provision%20Income%20and%20Adjusted%20Pre-Tax,%20Pre-Provision%20Income) This table reconciles GAAP net income to pre-tax, pre-provision income and adjusted pre-tax, pre-provision income, highlighting adjustments for provision for credit losses, income tax expense, and merger and acquisition costs Pre-Tax, Pre-Provision Income Reconciliation (In thousands) | (In thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income, as presented | $14,081 | $7,326 | $11,993 | $21,407 | $25,265 | | Adjustment for provision (credit) for credit losses | 6,920 | 9,429 | 650 | 16,349 | (1,452) | | Adjustment for income tax expense (benefit) | 3,679 | (1,152) | 2,876 | 2,527 | 5,939 | | Pre-tax, pre-provision income | 24,680 | 15,603 | 15,519 | 40,283 | 29,752 | | Adjustment for merger and acquisition costs | 1,405 | 7,525 | — | 8,930 | — | | Adjusted pre-tax, pre-provision income | $26,085 | $23,128 | $15,519 | $49,213 | $29,752 | [Efficiency Ratio Reconciliation](index=15&type=section&id=Efficiency%20Ratio) This table reconciles the GAAP efficiency ratio to the non-GAAP efficiency ratio by adjusting non-interest expense for merger and acquisition costs and amortization of core deposit intangible assets, and adjusting net interest income for the effect of tax-exempt income Efficiency Ratio Reconciliation (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Non-interest expense, as presented | $37,596 | $44,451 | $27,310 | $82,047 | $54,672 | | Adjustment for merger and acquisition costs | (1,405) | (7,525) | — | (8,930) | — | | Adjustment for amortization of core deposit intangible assets | (1,473) | (1,473) | (139) | (2,946) | (278) | | Adjusted non-interest expense | $34,718 | $35,453 | $27,171 | $70,171 | $54,394 | | Net interest income, as presented | $49,209 | $48,858 | $32,184 | $98,067 | $63,457 | | Adjustment for the effect of tax-exempt income | 312 | 326 | 159 | 638 | 309 | | Non-interest income, as presented | 13,067 | 11,196 | 10,645 | 24,263 | 20,967 | | Adjusted net interest income plus non-interest income | $62,588 | $60,380 | $42,988 | $122,968 | $84,733 | | GAAP efficiency ratio | 60.37 % | 74.02 % | 63.77 % | 67.07 % | 64.76 % | | Non-GAAP efficiency ratio | 55.47 % | 58.72 % | 63.21 % | 57.06 % | 64.19 % | [Return on Average Tangible Equity Reconciliation](index=17&type=section&id=Return%20on%20Average%20Tangible%20Equity%20and%20Adjusted%20Return%20on%20Average%20Tangible%20Equity) This section reconciles GAAP return on average equity to return on average tangible equity and adjusted return on average tangible equity, accounting for amortization of core deposit intangible assets and other adjustments to net income and average equity Return on Average Tangible Equity Reconciliation (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Return on Average Tangible Equity:** | | | | | | | Net income, as presented | $14,081 | $7,326 | $11,993 | $21,407 | $25,265 | | Net income, adjusted for amortization of core deposit intangible assets | $15,245 | $8,490 | $12,103 | $23,734 | $25,485 | | Average tangible equity | $445,919 | $425,664 | $407,022 | $435,867 | $403,466 | | Return on average tangible equity | 13.71 % | 8.09 % | 11.96 % | 10.98 % | 12.70 % | | **Adjusted Return on Average Tangible Equity:** | | | | | | | Adjusted net income (from reconciliation table) | $15,191 | $16,047 | $11,993 | $31,238 | $24,546 | | Adjusted net income, adjusted for amortization of core deposit intangible assets | $16,355 | $17,211 | $12,103 | $33,565 | $24,766 | | Adjusted return on average tangible equity | 14.71 % | 16.40 % | 11.96 % | 15.53 % | 12.34 % | [Core Net Interest Margin Reconciliation](index=17&type=section&id=Core%20Net%20Interest%20Margin%20(fully-taxable%20equivalent)) This table reconciles the GAAP net interest margin (fully-taxable equivalent) to the core net interest margin (non-GAAP), by adjusting for net accretion income on loans and investments from purchase accounting, and net amortization on time deposits and borrowings Core Net Interest Margin Reconciliation (Fully-Taxable Equivalent) | | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net interest margin, tax equivalent, as presented | 3.06 % | 3.04 % | 2.36 % | 3.05 % | 2.32 % | | Net accretion income on loans from purchase accounting | (0.30)% | (0.30)% | — | (0.30)% | — | | Net accretion income on investments from purchase accounting | (0.07)% | (0.07)% | — | (0.07)% | — | | Net amortization on time deposits and borrowings from purchase accounting | 0.01 % | 0.01 % | — | 0.01 % | — | | Core net interest margin (fully-taxable equivalent) | 2.70 % | 2.68 % | 2.36 % | 2.69 % | 2.32 % | [Tangible Book Value Per Share and Tangible Common Equity Ratio Reconciliation](index=18&type=section&id=Tangible%20Book%20Value%20Per%20Share%20and%20Tangible%20Common%20Equity%20Ratio) This table reconciles GAAP shareholders' equity and total assets to tangible shareholders' equity and tangible assets, respectively, by adjusting for goodwill and core deposit intangible assets, to derive tangible book value per share and the tangible common equity ratio Tangible Book Value Per Share and Tangible Common Equity Ratio Reconciliation (In thousands) | (In thousands, except number of shares, per share data and ratios) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Tangible Book Value Per Share:** | | | | | Shareholders' equity, as presented | $652,148 | $640,054 | $508,286 | | Adjustment for goodwill and core deposit intangible assets | (197,031) | (200,770) | (95,390) | | Tangible shareholders' equity | $455,117 | $439,284 | $412,896 | | Shares outstanding at period end | 16,919,689 | 16,885,571 | 14,569,262 | | Book value per share | $38.54 | $37.91 | $34.89 | | Tangible book value per share | $26.90 | $26.02 | $28.34 | | **Tangible Common Equity Ratio:** | | | | | Total assets | $6,920,044 | $6,964,785 | $5,724,380 | | Adjustment for goodwill and core deposit intangible assets | (197,031) | (200,770) | (95,390) | | Tangible assets | $6,723,013 | $6,764,015 | $5,628,990 | | Common equity ratio | 9.42 % | 9.19 % | 8.88 % | | Tangible common equity ratio | 6.77 % | 6.49 % | 7.34 % |

Core Viewpoint - Camden National Corporation will report its financial and operating results for the quarter ended June 30, 2025, on July 29, 2025, with a conference call and webcast scheduled for the same day [1]. Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with approximately $7.0 billion in assets [3]. - Founded in 1875, Camden National Bank operates 72 banking centers in Maine and New Hampshire, providing full-service community banking and digital banking services [3]. - The company also offers comprehensive wealth management, investment, and financial planning services through Camden National Wealth Management [4].

Company Overview - Camden National Corporation has \$7 billion in assets, \$5 billion in loans, and \$56 billion in deposits [7] - The company has over 700 employees and 73 branches [7] - The company's market capitalization is \$739 million [7] Acquisition of Northway Financial - Camden National Corporation completed its acquisition of Northway Financial, Inc on January 2, 2025 [18] - The purchase price was \$965 million, based on Camden National's closing stock price of \$4225 on January 2, 2025 [20] - The merger is expected to result in 20% GAAP EPS accretion in 2025 and 33% in 2026 [19] Loan and Deposit Portfolio - The loan portfolio is well-diversified, with 43% in residential real estate, 42% in commercial real estate, 9% in commercial loans, and 6% in home equity and consumer loans [28] - Total loans amount to \$41 billion [28] - The company's deposits total \$46 billion, with 33% in savings/money market accounts, 32% in interest-checking accounts, 20% in noninterest-checking accounts, 11% in CDs, and 4% in brokered deposits [45] Financial Performance - Net income for the fourth quarter of 2024 was \$147 million, a 12% increase compared to the third quarter of 2024 [69] - Non-interest income is 25% of total revenue [50] - Assets Under Management (AUM) reached \$21 billion, up 12% year-over-year [50]