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]

Core Insights - Camden National Corporation reported a net income of $14.1 million and diluted EPS of $0.83 for Q2 2025, marking increases of 92% and 93% respectively compared to Q1 2025 [1][22]. Financial Performance - The company achieved a pre-tax, pre-provision income increase of 13% over the prior quarter, reflecting successful cost synergies and revenue growth post the Northway Financial acquisition [2]. - Net interest income for Q2 2025 was $49.2 million, a 1% increase from Q1 2025, driven by net interest margin expansion [10][26]. - Non-interest income rose to $13.1 million, a 17% increase compared to Q1 2025, attributed to higher mortgage banking income and debit card income [12][26]. - Non-interest expenses decreased by 15% to $37.6 million, primarily due to reduced merger-related costs [13][26]. Financial Condition - As of June 30, 2025, total assets were $6.9 billion, a 1% decrease from March 31, 2025 [4][23]. - Total loans increased by 1% to $4.9 billion, with growth across all segments except residential loans, where 39% of production was sold [5][23]. - The allowance for credit losses on loans was 1.08%, up 12 basis points from the previous quarter, influenced by a commercial loan bankruptcy [6][23]. - Total deposits were $5.5 billion, a 1% decrease since March 31, 2025, with a loan-to-deposit ratio of 89% [7][23]. Capital Ratios - The common equity Tier 1 risk-based capital ratio was 10.88%, and the total risk-based capital ratio was 13.35%, both well above regulatory requirements [8][23]. Shareholder Returns - A cash dividend of $0.42 per share was announced, yielding an annualized dividend yield of 4.14% based on the closing share price of $40.58 [9][22]. Asset Quality - Non-performing loans increased to 0.37% of total loans, with loans 30-89 days past due at 0.08% [6][22]. - Annualized net charge-offs for Q2 2025 were 0.02% of average loans [12][22]. Book Value - Book value per share was $38.54, with tangible book value per share at $26.90, reflecting increases of 2% and 3% respectively [14][22].

[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]

Core Points - Camden National Corporation declared a quarterly dividend of $0.42 per share, resulting in an annualized dividend yield of 4.23% based on the closing price of $39.72 per share on June 23, 2025 [1] - The dividend is scheduled to be paid on July 31, 2025, to shareholders of record as of July 15, 2025 [1] Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with total assets amounting to $7.0 billion [2] - The company operates 72 banking centers in Maine and New Hampshire, providing full-service community banking and digital banking services [2] - Camden National Wealth Management offers comprehensive wealth management, investment, and financial planning services [3]

Acquisition and Integration - The Company completed the acquisition of Northway Financial, Inc. on January 2, 2025, in an all-stock transaction valued at $96.5 million, issuing 2.3 million shares, representing 14% of its outstanding shares[31][32]. - The acquisition added 17 branches in New Hampshire, increasing the Company's total to 73 branches and assets to $7.0 billion as of March 31, 2025[33]. - The Company generated $59.1 million of provisional goodwill from the Northway acquisition, reflecting expected synergies from operational integration[35]. - The fair value of identified assets acquired totaled $1.183 billion, with total liabilities assumed at $1.121 billion, resulting in net identified assets of $62.6 million[36]. - The Company incurred $7.5 million in non-recurring merger-related costs during the three months ended March 31, 2025[34]. - The acquisition was structured as a tax-free reorganization for federal income tax purposes, maintaining the tax basis of the acquired assets[46]. - The Company expects the expanded presence in New Hampshire to drive profitability and shareholder value through growth opportunities and broader product offerings[33]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $60,054,000, compared to $56,538,000 for the same period in 2024, representing an increase of approximately 8.9%[52]. - Net income for the three months ended March 31, 2025, was $16,047,000, up from $7,558,000 in 2024, indicating a significant increase of approximately 112.8%[52]. - Total non-interest income for the three months ended March 31, 2025, was $11,196,000, an increase of 8.5% from $10,322,000 in 2024[159]. - Debit card interchange income rose to $3,233,000 in Q1 2025, up 12.8% from $2,866,000 in Q1 2024[159]. - Net income for the three months ended March 31, 2025, was $7,326,000, a decrease of 44.8% compared to $13,272,000 in the same period of 2024[161]. - Basic and diluted earnings per share (EPS) for Q1 2025 were both $0.43, down from $0.91 in Q1 2024[161]. Loan Portfolio and Credit Quality - The total loan portfolio as of March 31, 2025, was $4.885 billion, an increase from $4.115 billion as of December 31, 2024, representing a growth of approximately 18.7%[72]. - Commercial loans increased to $2.555 billion as of March 31, 2025, up from $2.095 billion at the end of 2024, marking a growth of about 22%[72]. - Retail loans also saw an increase, rising to $2.331 billion as of March 31, 2025, compared to $2.021 billion at the end of 2024, which is an increase of approximately 15.4%[72]. - The total amount of loans past due over 90 days and accruing was $7,087,000 as of March 31, 2025, compared to $5,855,000 as of December 31, 2024, reflecting an increase of 20.9%[97]. - The total allowance for credit losses (ACL) on loans was $46.7 million, an increase from $35.7 million as of December 31, 2024, reflecting a provision for loan losses of $8.9 million during the first quarter[86]. - The Company reported charge-offs totaling $1.1 million for the first quarter of 2025, compared to $345,000 in the same period of 2024[86]. - The Company’s total exposure to the lessors of residential buildings and nonresidential buildings industries was both 13% of total loans as of March 31, 2025[89]. - The risk category of loans by portfolio segment indicates that Grades 1 through 6 represent low to moderate risks, while Grades 8 to 10 indicate increasing levels of credit risk[93]. Securities and Investments - The fair value of the Company's trading securities as of March 31, 2025, was $4.9 million, down from $5.2 million as of December 31, 2024[53]. - The total amortized cost of AFS debt securities as of March 31, 2025, was $898,145,000, with an estimated fair value of $836,130,000, reflecting unrealized losses of $67,345,000[54]. - The Company sold AFS debt securities for proceeds of $56,432,000 during the three months ended March 31, 2025, with no gross realized gains or losses recognized[57]. - The total AFS debt securities with gross unrealized losses as of March 31, 2025, amounted to $497,221,000, with total unrealized losses of $67,345,000[58]. - The Company’s AFS debt securities are primarily comprised of high credit quality obligations, with a history of zero to near-zero credit loss[58]. - The estimated fair value of HTM debt securities as of March 31, 2025, is $478,172,000, compared to a carrying amount of $516,682,000, indicating a fair value discount of approximately 7.4%[186]. Capital and Regulatory Compliance - As of March 31, 2025, Camden National Corporation's total risk-based capital ratio was 13.13%, exceeding the minimum requirement of 10.50%[150]. - The Tier 1 risk-based capital ratio for Camden National Corporation was 12.09%, above the minimum requirement of 6.00%[150]. - The common equity Tier 1 risk-based capital ratio was 10.78%, surpassing the minimum requirement of 4.5%[150]. - The Company and Bank's regulatory capital ratios exceeded the capital conservation buffer requirements as of March 31, 2025[150]. - The Company actively monitors its regulatory capital and risk-weighted assets to adapt to changes in GAAP and regulatory standards[153]. Derivatives and Risk Management - The Company manages economic risks, including interest rate, liquidity, and credit risk primarily through the management of its assets and liabilities[126]. - The Company utilizes interest rate swaps as part of its interest rate risk management strategy to stabilize interest income and expense[127]. - The total notional amount of derivatives not designated as hedging instruments was $396.886 million as of March 31, 2025, with a fair value of $13.122 million[136]. - The Company recognized a total loss of $(96) thousand from derivative financial instruments not designated as hedging instruments for the three months ended March 31, 2025[139]. - The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral where appropriate[140]. Goodwill and Intangible Assets - The carrying value of goodwill increased to $153,770,000 as of March 31, 2025, up from $94,697,000 at the end of 2024, due to the acquisition of Northway which generated $59,073,000 of goodwill[106]. - The carrying value of core deposit intangible assets was $47,000,000 as of March 31, 2025, reflecting an increase from $415,000 at the end of 2024 due to the acquisition of Northway[107]. - The company conducts an annual impairment test of goodwill, with no indications of impairment noted for the three months ended March 31, 2025[183].

Group 1: Company Overview - Camden National (CAC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates [1][3] - The Zacks rating system is based on changes in earnings estimates, which are a significant factor influencing stock prices [2][4] Group 2: Earnings Estimates - For the fiscal year ending December 2025, Camden National is expected to earn $4.39 per share, reflecting a 20.3% increase from the previous year [8] - Over the past three months, the Zacks Consensus Estimate for Camden National has risen by 3.2% [8] Group 3: Market Implications - The upgrade to Zacks Rank 2 positions Camden National in the top 20% of Zacks-covered stocks, suggesting potential for near-term price appreciation [10] - Rising earnings estimates and the subsequent rating upgrade indicate an improvement in Camden National's underlying business, which could lead to higher stock prices as investors respond positively [5][10]

Core Viewpoint - Camden National (CAC) shares have increased by 7.8% over the past four weeks, closing at $39.36, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $50.25, representing a 27.7% upside [1] Price Targets and Analyst Consensus - The average price targets range from a low of $47 to a high of $53, with a standard deviation of $3.20, indicating a relatively tight clustering of estimates. The lowest estimate suggests a 19.4% increase, while the highest points to a 34.7% upside [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research into fundamental drivers [9] Earnings Estimates and Analyst Optimism - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases. The Zacks Consensus Estimate for the current year has risen by 0.6% over the past month, with one estimate increasing and no negative revisions [11][12] - CAC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside in the near term [13]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $7,300,000 for Q1 2025, with diluted EPS of $0.43, reflecting a pretax charge of $7,500,000 for acquisition-related costs and a one-time loan loss provision of $6,500,000 [17][18] - Adjusted net income increased by 6% compared to the previous quarter, while adjusted diluted EPS decreased by 8% due to the issuance of approximately 2,300,000 shares for the Northway acquisition [17][18] - The net interest margin reached 3.04%, a 47 basis point increase from the previous quarter, with core net interest margin expanding by 11 basis points to 2.68% [18][19] Business Line Data and Key Metrics Changes - The company successfully integrated Northway Financial, adding over 28,000 new customers and 100 new team members, with total assets reaching €7,000,000,000 [5][6] - Noninterest income for Q1 2025 was $11,200,000, down 8% from the previous quarter, attributed to seasonal factors [21] - Noninterest expense totaled $44,500,000, including acquisition-related costs, with core operating expenses at $35,400,000, up from $27,800,000 in the previous quarter [21] Market Data and Key Metrics Changes - The loan portfolio totaled $4,900,000,000, with organic loan balances remaining flat during the quarter, while deposits stood at $5,600,000,000, also flat [24][25] - The company reported strong activity in its mortgage pipeline, with a total pipeline of $83,000,000, and commercial loans showing momentum with a pipeline of $97,000,000 [40] Company Strategy and Development Direction - The company aims to achieve annual cost savings of 35% from the Northway acquisition, with expectations to realize 75% of this goal during 2025 [6][7] - The focus remains on deepening customer relationships and expanding presence in New Hampshire and Maine, leveraging technology investments for growth [12][13] - The management team expressed confidence in the company's ability to perform across various economic scenarios, emphasizing soundness, profitability, and growth as strategic pillars [14][13] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic uncertainty exists, the company is well-positioned for solid core earnings growth, with proactive measures taken to manage credit risks [10][11] - The company anticipates continued core net interest margin expansion and expects to benefit from potential Fed rate cuts, estimating a $1.2 million benefit from a 25 basis point cut [36][37] - Management remains optimistic about loan growth, projecting low single-digit growth for the year, with potential for improvement as market conditions stabilize [39][61] Other Important Information - The company filed a shelf registration statement in March for capital planning purposes [26] - The integration of Northway has been smooth, with strong employee retention and positive client feedback [52][53] Q&A Session Summary Question: Core margin expectations for the second quarter - Management expects core net interest margin to expand by an additional 2 to 5 basis points, targeting a range of 2.70% to 2.75% [32] Question: Purchase accounting accretion - Management indicated that the $5,000,000 of net accretion income feels like a solid midpoint, with potential for acceleration depending on market conditions [34] Question: Loan growth outlook and potential runoff from Northway - Management confirmed that the low single-digit loan growth forecast does not factor in any runoff from Northway, as both companies share a strong credit culture [60] Question: Provisioning and reserve levels - Management acknowledged the potential for higher provisioning to maintain reserve levels in light of economic uncertainty, with a thoughtful approach to provisioning [63]