Financial Performance - For Q4 2024, Camden National reported net income of $14.7 million and diluted EPS of $1.00, representing increases of 12% and 11% respectively compared to Q3 2024[1]. - Core net income for Q4 2024, excluding merger costs, was $15.1 million with core diluted EPS of $1.03, reflecting increases of 9% and 8% respectively over Q3 2024[3]. - Net income for the quarter was $14,666, up 12.2% from $13,073 in the previous quarter and up 73.5% from $8,480 year-over-year[30]. - Core net income (non-GAAP) reached $15,086, a 9.3% increase from $13,800 in the previous quarter and a 21.5% increase from $12,410 year-over-year[30]. - Diluted EPS for the quarter was $1.00, compared to $0.90 in the previous quarter and $0.58 year-over-year, reflecting a 11.1% and 72.4% increase respectively[30]. - Net income for Q4 2024 reached $14,666,000, reflecting a 73% increase year-over-year[34]. - Basic earnings per share for Q4 2024 were $1.01, up 74% from $0.58 in Q4 2023[34]. - Net income for the year 2024 was $53,004,000, representing a 22% increase from $43,383,000 in 2023[36]. Asset and Loan Management - Total assets as of December 31, 2024, were $5.8 billion, up from $5.7 billion as of September 30, 2024[6]. - Loans totaled $4.1 billion as of December 31, 2024, remaining consistent with the previous quarter, while funded residential mortgage production increased by 14%[9]. - Total loans remained stable at $4,115,259, showing no significant change from $4,116,729 in the previous quarter and a slight increase from $4,098,094 year-over-year[30]. - Total loans amounted to $4,116,313 thousand for the three months ended December 31, 2024, a slight decrease from $4,144,482 thousand in the previous quarter, representing a decline of 0.68%[38]. - Non-performing loans to total loans ratio was 0.16% for the year ended December 31, 2024, slightly down from 0.17% for the year ended September 30, 2024[44]. Deposit Growth - Deposits increased by 1% to $4.6 billion, with core deposits growing by 2% to $3.9 billion, primarily due to a 7% increase in savings deposits[13]. - Total deposits as of December 31, 2024, were $4,633,167 thousand, an increase from $4,575,226 thousand in the previous quarter, reflecting a growth of 1.27%[51]. - Total deposits rose to $4,441,290 thousand, marking an increase of 1.91% from $4,379,935 thousand in the prior quarter[38]. Efficiency and Profitability Ratios - The efficiency ratio for Q4 2024 improved to 59.62% (GAAP) and 58.51% (non-GAAP), compared to 64.23% and 62.39% in Q3 2024[20]. - Return on average assets improved to 1.01%, up from 0.91% in the previous quarter and 0.59% year-over-year[30]. - Core return on average equity (non-GAAP) was 11.30%, compared to 10.48% in the previous quarter and 10.53% year-over-year[30]. - The GAAP efficiency ratio improved to 59.62% for the three months ended December 31, 2024, down from 64.23% in the previous quarter[48]. - The non-GAAP efficiency ratio also improved to 58.51% for the same period, compared to 62.39% in the previous quarter[48]. Non-Interest Income and Expenses - Total non-interest income for Q4 2024 was $12,166,000, a significant 103% increase compared to Q4 2023[34]. - The company reported a 44% increase in total non-interest income for the year 2024, totaling $44,539,000 compared to $31,034,000 in 2023[36]. - Total non-interest expense for the year 2024 was $111,936,000, a 4% increase compared to $107,361,000 in 2023[36]. - Non-interest expense for the three months ended December 31, 2024, was $28,364 thousand, compared to $28,900 thousand for the previous quarter, reflecting a decrease of 1.85%[48]. Credit Quality - The company's asset quality remained strong, with loans 30-89 days past due at 0.05% of total loans and non-performing assets at 0.11% of total assets[10]. - Provision for credit losses for Q4 2024 was $809,000, a 238% increase from $239,000 in Q3 2024[34]. - The allowance for credit losses (ACL) on loans at the end of the period was $35,728,000, down from $36,935,000 at the beginning of the period[44]. - The ACL on loans to non-performing loans ratio was 553.07% for the year ended December 31, 2024, indicating strong coverage of non-performing loans[44]. Mergers and Acquisitions - The company completed its merger with Northway Financial on January 2, 2025, resulting in total assets of approximately $7.0 billion and 73 branches in Maine and New Hampshire[2].

Core Viewpoint - Camden National (CAC) has consistently beaten earnings estimates and is well-positioned for future earnings surprises, particularly with a positive Earnings ESP and a strong Zacks Rank [1][3][6]. Earnings Performance - For the last reported quarter, Camden National achieved earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, resulting in a surprise of 13.25% [2]. - In the previous quarter, the company was expected to earn $0.71 per share but delivered $0.81 per share, leading to a surprise of 14.08% [2]. Earnings Estimates - Recent estimates for Camden National have been increasing, indicating a bullish outlook on the company's earnings prospects [3]. - The current Earnings ESP for Camden National is +0.57%, suggesting analysts have become more optimistic about the company's upcoming earnings [6]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4]. - The combination of Camden National's positive Earnings ESP and Zacks Rank 1 (Strong Buy) indicates a high likelihood of another earnings beat [6]. Importance of Earnings ESP - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]. - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [6].

Company Overview - Camden National Corporation (NASDAQ: CAC) is the largest publicly traded bank holding company in Northern New England, with total assets of $7.0 billion [3] - The company operates 73 branches in Maine and New Hampshire, providing full-service community banking and digital banking services [3] - Camden National Bank was founded in 1875 and is recognized for its personalized service [3] Upcoming Financial Results - Camden National Corporation will report its financial and operating results for the quarter and year ended December 31, 2024, on January 28, 2025 [1] - A conference call and webcast will be hosted by Simon Griffiths, President and CEO, and Michael Archer, Executive Vice President and CFO, at 3:00 p.m. Eastern on the same day [1] Conference Call Participation - Interested parties can join the teleconference by dialing in or connecting to the webcast 10-15 minutes prior to the start [2] - Domestic dial-in number is (833) 470-1428, and international dial-in number is (929) 526-1599, with a participant access code of 416800 [2] - The live webcast URL is available at Camden National Corporation's website, and a transcript and replay will be accessible post-conference [2] Wealth Management Services - Camden National Corporation offers comprehensive wealth management, investment, and financial planning services through Camden National Wealth Management [4] - The total assets and branch data reflect the completion of the merger with Northway Financial, Inc., which was announced previously [4]

Group 1: Stock Performance and Market Sentiment - Camden National (CAC) has experienced a downtrend with a 9.6% decline over the past four weeks due to excessive selling pressure [1] - The stock is currently in oversold territory, indicated by an RSI reading of 26.37, suggesting that heavy selling may be exhausting itself [5] - Wall Street analysts are optimistic about CAC's earnings potential, with a consensus EPS estimate increase of 5% over the last 30 days [6] Group 2: Technical Analysis and Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with readings below 30 typically indicating oversold conditions [2] - RSI helps investors identify potential price reversals, allowing them to seek entry opportunities when a stock is undervalued due to unwarranted selling [3] - While RSI is a useful tool, it has limitations and should not be the sole basis for investment decisions [4] Group 3: Analyst Ratings and Future Outlook - CAC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [7] - The upward trend in earnings estimate revisions is generally associated with price appreciation in the near term, reinforcing the potential for a stock turnaround [6]

Core Points - Camden National Corporation has successfully completed its merger with Northway Financial, Inc., creating a combined institution with total assets of approximately $7.0 billion and 73 branches in Maine and New Hampshire [1][2][7] - The merger was an all-stock transaction, with Northway shareholders receiving 0.83 shares of Camden National common stock for each share of Northway common stock [3] - Camden National has appointed Larry K. Haynes to its Board of Directors, who brings extensive experience and knowledge of the New Hampshire market [4][5] Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, founded in 1875, and offers a full range of banking services [7] - The bank emphasizes exceptional customer service and aims to deepen customer relationships through advice-based conversations [2] - Camden National Wealth Management provides comprehensive wealth management, investment, and financial planning services [8]

Core Points - Camden National Corporation has received all necessary regulatory approvals to complete its merger with Northway Financial, Inc., with the transaction expected to close on or about January 2, 2025 [1][2] - The merger aims to enhance Camden National's presence in New Hampshire and provide improved services to customers [2] - Northway shareholders approved the merger on December 17, 2024, following the announcement of the definitive agreement on September 9, 2024 [3] Company Overview - Camden National Corporation is the largest publicly traded bank holding company in Northern New England, with assets totaling $5.7 billion [4] - The company operates 57 branches across Maine and New Hampshire, offering full-service community banking and digital banking solutions [4] - Camden National Wealth Management provides comprehensive wealth management, investment, and financial planning services [5]

CAMDEN, Maine, Dec. 17, 2024 /PRNewswire/ -- Simon R. Griffiths, President and Chief Executive Officer of Camden National Corporation (NASDAQ: CAC; the "Company"), announced today that the board of directors of the Company declared a quarterly dividend of $0.42 per share. This quarterly payout results in an annualized dividend yield of 3.66% based on the December 16, 2024 closing price of the Company's common stock at $45.91 per share as reported by NASDAQ. The dividend is payable on January 31, 2025 to sha ...

A downtrend has been apparent in Camden National (CAC) lately. While the stock has lost 6.6% over the past two weeks, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited consolidated financial statements, including Statements of Condition, Income, Equity, Cash Flows, and detailed notes [Consolidated Statements of Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Condition) Consolidated Statements of Condition (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | **ASSETS** | | | | Total cash, cash equivalents and restricted cash | $139,512 | $99,804 | | Total investments | $1,157,116 | $1,190,780 | | Net loans | $4,081,315 | $4,061,159 | | Total assets | $5,745,180 | $5,714,506 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total deposits | $4,575,226 | $4,597,360 | | Short-term borrowings | $516,336 | $485,607 | | Total liabilities | $5,215,280 | $5,219,442 | | Total shareholders' equity | $529,900 | $495,064 | | Total liabilities and shareholders' equity | $5,745,180 | $5,714,506 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total interest income | $63,721 | $57,669 | $186,066 | $166,449 | | Total interest expense | $30,134 | $25,085 | $89,022 | $66,895 | | Net interest income | $33,587 | $32,584 | $97,044 | $99,554 | | Provision (credit) for credit losses | $239 | ($574) | ($1,213) | $1,531 | | Total non-interest income | $11,406 | $5,072 | $32,373 | $25,048 | | Total non-interest expense | $28,900 | $26,207 | $83,572 | $79,515 | | Net Income | $13,073 | $9,787 | $38,338 | $34,903 | | Basic earnings per share | $0.90 | $0.67 | $2.63 | $2.39 | | Diluted earnings per share | $0.90 | $0.67 | $2.62 | $2.39 | | Cash dividends declared per share | $0.42 | $0.42 | $1.26 | $1.26 | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Statements of Comprehensive Income (Loss) (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net Income | $13,073 | $9,787 | $38,338 | $34,903 | | Other comprehensive income (loss) | $14,132 | ($8,274) | $14,453 | ($4,253) | | Comprehensive Income | $27,205 | $1,513 | $52,791 | $30,650 | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' Equity Changes (Nine Months Ended September 30, 2024 vs. December 31, 2023) | (In thousands) | Balance at Dec 31, 2023 | Net Income | Other Comprehensive Income | Stock-based Compensation Expense | Issuance of Vested Share Awards, net | Common Stock Repurchased | Cash Dividends Declared | Balance at Sep 30, 2024 | | :--------------- | :---------------------- | :--------- | :------------------------- | :------------------------------- | :----------------------------------- | :----------------------- | :---------------------- | :---------------------- | | Common Stock Amount | $115,602 | — | — | $2,325 | ($209) | ($1,646) | — | $116,072 | | Retained Earnings | $481,014 | $38,338 | — | — | — | — | ($18,425) | $500,927 | | Accumulated Other Comprehensive Income (Loss) | ($101,552) | — | $14,453 | — | — | — | — | ($87,099) | | Total Shareholders' Equity | $495,064 | $38,338 | $14,453 | $2,325 | ($209) | ($1,646) | ($18,425) | $529,900 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $17,745 | $78,805 | | Net cash provided by investing activities | $33,881 | $21,549 | | Net cash (used in) provided by financing activities | ($11,918) | $35,733 | | Net increase in cash, cash equivalents and restricted cash | $39,708 | $136,087 | | Cash, cash equivalents and restricted cash at end of period | $139,512 | $211,514 | [Notes to the Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) [NOTE 1 – BASIS OF PRESENTATION](index=11&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) - The unaudited consolidated interim financial statements are prepared in accordance with Form 10-Q instructions and GAAP, including normal recurring accruals, consolidating Camden National Corporation, Camden National Bank, and its wholly-owned subsidiaries, while eliminating intercompany transactions and excluding fiduciary assets[12](index=12&type=chunk) [NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS](index=12&type=section&id=NOTE%202%20%E2%80%93%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) - **ASU No. 2023-09**, 'Improvements to Income Tax Disclosures,' is effective for annual periods beginning after December 15, 2024, with the Company expecting no material impact on its consolidated financial statements, only on income tax disclosures[16](index=16&type=chunk) [NOTE 3 – BUSINESS COMBINATIONS](index=12&type=section&id=NOTE%203%20%E2%80%93%20BUSINESS%20COMBINATIONS) - On September 10, 2024, Camden National Corporation announced a definitive agreement to acquire Northway Financial, Inc. (NFI) in an all-stock transaction valued at approximately **$86.6 million**, expected to close in Q1 2025, expanding the Company's New England presence with combined assets, loans, and deposits projected at **$7.0 billion**, **$5.1 billion**, and **$5.5 billion**, respectively, as of June 30, 2024[17](index=17&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) - The Company incurred **$727 thousand** in non-recurring merger-related expenses, including legal and professional fees, for the three and nine months ended September 30, 2024, recorded as merger and acquisition costs[21](index=21&type=chunk) [NOTE 4 – INVESTMENTS](index=12&type=section&id=NOTE%204%20%E2%80%93%20INVESTMENTS) AFS Debt Securities (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Amortized Cost | $664,768 | $702,937 | | Fair Value | $603,211 | $625,808 | | Unrealized Gains | $1,937 | $1,793 | | Unrealized Losses | ($63,494) | ($78,922) | HTM Debt Securities (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Amortized Cost | $526,251 | $544,931 | | Fair Value | $500,619 | $510,595 | | Unrealized Gains | $1,999 | $3,134 | | Unrealized Losses | ($27,631) | ($37,470) | - The Company recovered **$910 thousand** from the sale of its Signature Bank corporate bond in Q1 2024, which was previously written off in Q1 2023 for **$1.8 million** due to the bank's failure[35](index=35&type=chunk)[36](index=36&type=chunk) Other Investments (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | FHLBB stock | $17,140 | $10,020 | | FRB stock | $5,373 | $5,374 | | Total other investments | $22,513 | $15,394 | [NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS](index=17&type=section&id=NOTE%205%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%20ON%20LOANS) Loan Portfolio Composition (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Commercial Loans | $2,090,430 | $2,076,207 | | Retail Loans | $2,026,299 | $2,021,887 | | Total loans | $4,116,729 | $4,098,094 | - The Company sold **$62.4 million** in residential mortgage loans in Q3 2024 (vs. **$66.2 million** in Q3 2023), generating **$687 thousand** in gains, with year-to-date sales totaling **$157.3 million** (vs. **$137.2 million** in 2023) and gains of **$1.5 million**[47](index=47&type=chunk) Allowance for Credit Losses on Loans (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Ending balance, ACL on loans | $35,414 | $36,935 | | Net charge-offs (9 months) | $828 | $1,161 | | Provision (credit) for loan losses (9 months) | ($693) | $1,174 | - As of September 30, 2024, the Company's total exposure to lessors of nonresidential buildings and residential buildings industries were **13%** and **12%** of total loans, respectively, and **31%** and **30%** of commercial real estate loans, respectively, with no other industry concentrations exceeding **10%** of the total loan portfolio[60](index=60&type=chunk) Non-Accrual Loans (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Total Non-Accrual Loans | $5,350 | $5,448 | - For the nine months ended September 30, 2024, the Company modified **$407 thousand** in commercial loans for borrowers experiencing financial difficulty, primarily through term extensions, with a weighted average term extension of **1.0 years**[78](index=78&type=chunk)[79](index=79&type=chunk) [NOTE 6 – BORROWINGS](index=26&type=section&id=NOTE%206%20%E2%80%93%20BORROWINGS) Short-Term Borrowings (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | FHLBB Borrowings | $325,000 | $125,000 | | Overnight Borrowings | — | $24,950 | | Bank Term Funding Program | — | $135,000 | | Customer Repurchase Agreements | $191,336 | $200,657 | | Total Short-Term Borrowings | $516,336 | $485,607 | - The Company has **$44.3 million** in junior subordinated debentures as of September 30, 2024 and December 31, 2023[83](index=83&type=chunk) [NOTE 7 – REPURCHASE AGREEMENTS](index=27&type=section&id=NOTE%207%20%E2%80%93%20REPURCHASE%20AGREEMENTS) Customer Repurchase Agreements Collateral (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | MBS issued or guaranteed by U.S. government-sponsored enterprises | $169,488 | $179,809 | | CMO issued or guaranteed by U.S. government-sponsored enterprises | $21,848 | $20,848 | | Total | $191,336 | $200,657 | - All customer repurchase agreements mature continuously or overnight[87](index=87&type=chunk) [NOTE 8 – COMMITMENTS AND CONTINGENCIES](index=27&type=section&id=NOTE%208%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Off-Balance Sheet Commitments (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Commitments to extend credit | $800,748 | $706,719 | | Standby letters of credit | $5,065 | $5,998 | | Total | $805,813 | $712,717 | - The **Allowance for Credit Losses (ACL)** on off-balance sheet credit exposures was **$2.7 million** as of September 30, 2024, up from **$2.4 million** at December 31, 2023[90](index=90&type=chunk) - For the nine months ended September 30, 2024, the provision for off-balance sheet credit losses was **$391 thousand**, compared to a credit of (**$595 thousand**) in the prior year[91](index=91&type=chunk) - Management believes that the outcome of pending and threatened legal actions will not have a material adverse effect on the Company's consolidated financial statements[92](index=92&type=chunk) [NOTE 9 – DERIVATIVES AND HEDGING](index=29&type=section&id=NOTE%209%20%E2%80%93%20DERIVATIVES%20AND%20HEDGING) - The Company uses interest rate swaps as cash flow hedges to stabilize interest income and expense, with gains/losses recorded in AOCI and reclassified to earnings as interest payments occur[95](index=95&type=chunk)[96](index=96&type=chunk) - An estimated **$1.2 million** will be reclassified as a decrease to interest expense over the next 12 months[97](index=97&type=chunk) Derivative Financial Instruments (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 (Fair Value) | December 31, 2023 (Fair Value) | | :--------------- | :------------------------------ | :----------------------------- | | **Derivative Assets:** | | | | Interest rate contracts (hedging) | $9,362 | $12,206 | | Customer loan swaps (non-hedging) | $6,413 | $10,699 | | Fixed rate mortgage interest rate lock commitments (non-hedging) | $230 | $215 | | Forward delivery commitments (non-hedging) | $81 | $51 | | **Derivative Liabilities:** | | | | Interest rate contracts (hedging) | $4,971 | $3,387 | | Customer loan swaps (non-hedging) | $6,451 | $10,748 | | Fixed rate mortgage interest rate lock commitments (non-hedging) | $14 | $11 | | Forward delivery commitments (non-hedging) | $48 | $132 | - The fair value of derivatives in a net liability position was **$6.4 million** as of September 30, 2024, down from **$10.8 million** at December 31, 2023, with no collateral posted by the Company as of these dates[116](index=116&type=chunk) [NOTE 10 – BALANCE SHEET OFFSETTING](index=34&type=section&id=NOTE%2010%20%E2%80%93%20BALANCE%20SHEET%20OFFSETTING) - The Company does not offset the carrying value of derivative instruments or repurchase agreements on its consolidated statements of condition, but nets the right to reclaim cash collateral against the obligation to return cash collateral under master netting arrangements with the same counterparty[117](index=117&type=chunk) Netting Arrangements for Derivative Assets (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 (Net Amount Presented) | December 31, 2023 (Net Amount Presented) | | :--------------- | :---------------------------------------- | :--------------------------------------- | | Customer loan swaps - dealer bank | $1,376 | $368 | | Customer loan swaps - commercial customer | $2,387 | $1,531 | | Interest rate contracts | $1,961 | $2,135 | | Total Derivative Assets | $5,724 | $4,034 | [NOTE 11 – REGULATORY CAPITAL REQUIREMENTS](index=35&type=section&id=NOTE%2011%20%E2%80%93%20REGULATORY%20CAPITAL%20REQUIREMENTS) - The Company and Bank exceeded all regulatory capital requirements, including the capital conservation buffer, as of September 30, 2024, and December 31, 2023, with the Bank considered 'well capitalized' under prompt corrective action provisions[127](index=127&type=chunk)[128](index=128&type=chunk) Camden National Corporation Regulatory Capital Ratios (September 30, 2024 vs. December 31, 2023) | Ratio | September 30, 2024 | December 31, 2023 | | :------------------------- | :----------------- | :------------------ | | Total risk-based capital ratio | 14.85% | 14.36% | | Tier 1 risk-based capital ratio | 13.90% | 13.38% | | Common equity Tier 1 risk-based capital ratio | 12.83% | 12.31% | | Tier 1 leverage capital ratio | 9.84% | 9.40% | - The Company includes **$43.0 million** of junior subordinated debentures in its Tier 1 and total risk-based capital calculations, as permitted by regulation[129](index=129&type=chunk) [NOTE 12 – OTHER COMPREHENSIVE INCOME (LOSS)](index=37&type=section&id=NOTE%2012%20%E2%80%93%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Other Comprehensive Income (Loss) Components (Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Nine Months Ended Sep 30, 2024 (After-Tax) | Nine Months Ended Sep 30, 2023 (After-Tax) | | :--------------- | :----------------------------------------- | :----------------------------------------- | | Net change in fair value of debt securities | $16,060 | ($7,689) | | Net change in fair value of cash flow hedging derivatives | ($1,590) | $3,452 | | Net change in other comprehensive income for supplemental executive retirement plan and other postretirement benefit plan | ($17) | ($16) | | Other comprehensive income (loss) | $14,453 | ($4,253) | Changes in AOCI Components (Nine Months Ended September 30, 2024 vs. December 31, 2023) | (In thousands) | Balance at Dec 31, 2023 | Other comprehensive (loss) income before reclassifications | Less: Amounts reclassified from AOCI | Other comprehensive (loss) income | Balance at Sep 30, 2024 | | :--------------- | :---------------------- | :--------------------------------------------------------- | :----------------------------------- | :-------------------------------- | :---------------------- | | Net Unrealized Gains (Losses) on Debt Securities | ($107,409) | $12,224 | ($3,836) | $16,060 | ($91,349) | | Net Unrealized Gains (Losses) on Cash Flow Hedges | $6,096 | ($523) | $1,067 | ($1,590) | $4,506 | | Net Gains (Losses) on Defined Benefit Postretirement Plans | ($239) | — | $17 | ($17) | ($256) | | Total AOCI | ($101,552) | $11,701 | ($2,752) | $14,453 | ($87,099) | [NOTE 13 – REVENUE FROM CONTRACTS WITH CUSTOMERS](index=40&type=section&id=NOTE%2013%20%E2%80%93%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Revenue from Contracts with Customers (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Debit card interchange income | $3,169 | $3,130 | $9,104 | $9,147 | | Services charges on deposit accounts | $2,168 | $2,040 | $6,308 | $5,737 | | Fiduciary services income | $1,817 | $1,641 | $5,436 | $5,016 | | Investment program income | $1,414 | $1,217 | $4,094 | $3,462 | | Other non-interest income | $508 | $505 | $1,371 | $1,392 | | Total non-interest income within the scope of ASC 606 | $9,076 | $8,533 | $26,313 | $24,754 | [NOTE 14 – EMPLOYEE BENEFIT PLANS](index=41&type=section&id=NOTE%2014%20%E2%80%93%20EMPLOYEE%20BENEFIT%20PLANS) Net Periodic Pension and Postretirement Benefit Costs (Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :----------------------------- | :----------------------------- | | **Supplemental Executive Retirement Plan:** | | | | Service cost | — | $211 | | Interest cost | $542 | $567 | | Total | $542 | $778 | | **Other Postretirement Benefit Plan:** | | | | Service cost | $6 | $8 | | Interest cost | $115 | $121 | | Recognized net actuarial gain | ($3) | ($2) | | Amortization of prior service credit | ($19) | ($18) | | Total | $99 | $109 | [NOTE 15 – EPS](index=41&type=section&id=NOTE%2015%20%E2%80%93%20EPS) Basic and Diluted EPS (Nine Months Ended September 30, 2024 vs. 2023) | (In thousands, except per share data) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net income available to common shareholders | $38,326 | $34,855 | | Weighted-average common shares outstanding for basic EPS | 14,579,195 | 14,564,431 | | Diluted effect of stock-based awards | 63,834 | 42,600 | | Weighted-average common and potential common shares for diluted EPS | 14,643,029 | 14,607,031 | | Basic EPS | $2.63 | $2.39 | | Diluted EPS | $2.62 | $2.39 | [NOTE 16 – FAIR VALUE MEASUREMENT AND DISCLOSURE](index=42&type=section&id=NOTE%2016%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENT%20AND%20DISCLOSURE) - The Company classifies financial instruments into a fair value hierarchy (**Level 1**, **2**, or **3**) based on the observability of valuation inputs[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - **Trading securities** and deferred compensation are **Level 1**, while debt securities, loans held for sale, and most derivatives are **Level 2**[161](index=161&type=chunk)[162](index=162&type=chunk) - Collateral-dependent loans and servicing assets are measured at fair value on a nonrecurring basis, often using **Level 3** inputs[163](index=163&type=chunk) Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (September 30, 2024) | (In thousands) | Fair Value | Level 1 | Level 2 | Level 3 | | :--------------- | :--------- | :------ | :------ | :------ | | **Financial assets:** | | | | | | Trading securities | $5,141 | $5,141 | — | — | | AFS debt securities | $603,211 | — | $603,211 | — | | Loans held for sale | $11,706 | — | $11,706 | — | | Customer loan swaps | $6,413 | — | $6,413 | — | | Interest rate contracts | $9,362 | — | $9,362 | — | | **Financial liabilities:** | | | | | | Deferred compensation | $5,141 | $5,141 | — | — | | Customer loan swaps | $5,644 | — | $5,644 | — | | Interest rate contracts | $4,971 | — | $4,971 | — | Financial Assets Measured at Fair Value on a Non-Recurring Basis (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 (Fair Value) | December 31, 2023 (Fair Value) | | :--------------- | :------------------------------ | :----------------------------- | | Collateral-dependent loans | $4,497 | $4,768 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=50&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's discussion and analysis of financial condition, operations, asset quality, capital, and non-GAAP measures [FORWARD-LOOKING STATEMENTS](index=50&type=section&id=FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements subject to numerous risks and uncertainties, including those related to the pending merger with NFI (e.g., integration challenges, regulatory approvals, cost savings realization, dilution), general economic conditions, interest rate fluctuations, competition, cybersecurity, and geopolitical events[175](index=175&type=chunk)[176](index=176&type=chunk) [NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP](index=53&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20RECONCILIATION%20TO%20GAAP) - Management uses non-GAAP financial measures like **core net income**, **core diluted EPS**, and **efficiency ratio** to assess performance against peers and analyze internal trends, believing these provide a clearer understanding by excluding unusual items[181](index=181&type=chunk) Core Net Income and EPS (Nine Months Ended September 30, 2024 vs. 2023) | (In thousands, except per share data) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net income, as presented | $38,338 | $34,903 | | Core net income | $38,193 | $40,570 | | Diluted earnings per share, as presented | $2.62 | $2.39 | | Core diluted earnings per share | $2.61 | $2.77 | Efficiency Ratio (Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :----------------------------- | :----------------------------- | | Adjusted non-interest expense | $82,845 | $79,515 | | Adjusted net interest income plus non-interest income | $129,892 | $130,638 | | Efficiency ratio | 63.78% | 60.87% | Tangible Book Value and Equity Ratio (September 30, 2024 vs. December 31, 2023) | (In thousands, except per share data and ratios) | September 30, 2024 | December 31, 2023 | | :----------------------------------------------- | :----------------- | :------------------ | | Tangible shareholders' equity | $434,649 | $399,396 | | Tangible book value per share | $29.82 | $27.42 | | Tangible assets | $5,649,929 | $5,618,838 | | Tangible common equity ratio | 7.69% | 7.11% | Core Deposits (September 30, 2024 vs. December 31, 2023) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--------------- | :----------------- | :------------------ | | Total deposits | $4,575,226 | $4,597,360 | | Core deposits | $3,853,071 | $3,885,938 | [CRITICAL ACCOUNTING POLICIES](index=58&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) - Critical accounting policies involve significant judgments and uncertainties, including the **Allowance for Credit Losses (ACL)** on loans, off-balance sheet credit exposures, and investments; accounting for acquisitions, goodwill, and intangible assets; income taxes; and defined benefit and postretirement plans, with no material changes reported from the 2023 Annual Report on Form 10-K[200](index=200&type=chunk)[201](index=201&type=chunk) [GENERAL OVERVIEW](index=58&type=section&id=GENERAL%20OVERVIEW) - Camden National Corporation, a Maine-based bank holding company with **$5.7 billion** in assets as of September 30, 2024, provides banking, wealth management, and insurance services primarily in Maine and select areas of New Hampshire, emphasizing customer service, local decision-making, and long-term relationships[202](index=202&type=chunk)[203](index=203&type=chunk) [EXECUTIVE OVERVIEW](index=58&type=section&id=EXECUTIVE%20OVERVIEW) - The Company announced the acquisition of Northway Financial, Inc. (NFI) on September 10, 2024, expected to close in Q1 2025, aiming to enhance its New England presence and future financial profile[204](index=204&type=chunk) Key Financial Metrics (Nine Months Ended September 30, 2024 vs. 2023) | Metric | Sep 30, 2024 | Sep 30, 2023 | % Change | | :----- | :----------- | :----------- | :------- | | Net income | $38,338 | $34,903 | 10% | | Diluted EPS | $2.62 | $2.39 | 10% | | Core net income (non-GAAP) | $38,193 | $40,570 | (6)% | | Core diluted EPS (non-GAAP) | $2.61 | $2.77 | (6)% | | Net interest margin (fully-taxable equivalent) | 2.37% | 2.44% | (7 bps) | | Loans | $4,116,729 | $4,058,413 | 1% | | Deposits | $4,575,226 | $4,678,406 | (2)% | | Non-performing assets to total assets | 0.12% | 0.11% | 0.01% | | Allowance for credit losses on loans to total loans | 0.86% | 0.90% | (0.04)% | | Tangible common equity ratio (non-GAAP) | 7.69% | 6.47% | 1.22% | - **Net interest margin** compression to **2.37%** for the nine months ended September 30, 2024, was primarily due to the changing interest rate environment, though Q3 2024 saw an improvement to **2.46%**, with the Company anticipating future Federal Funds Rate cuts to benefit its **net interest margin**[206](index=206&type=chunk)[207](index=207&type=chunk) - **Asset quality** remains strong with **past due loans** at **0.03%** of total loans and **non-performing assets** at **0.12%** of total assets, while the **ACL on loans** decreased to **0.86%** due to strong credit quality and an improving macroeconomic forecast[208](index=208&type=chunk) [RESULTS OF OPERATIONS](index=63&type=section&id=RESULTS%20OF%20OPERATIONS) [Net Interest Income and Net Interest Margin](index=63&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) - **Net interest income** was **75%** of total revenues for the quarter and nine months ended September 30, 2024, compared to **87%** and **80%** for the same periods in 2023, respectively[215](index=215&type=chunk) Net Interest Income (Fully-Taxable Equivalent) (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net interest income (fully-taxable equivalent) | $33,752 | $32,821 | $97,519 | $100,255 | | Net interest margin (fully-taxable equivalent) | 2.46% | 2.39% | 2.37% | 2.44% | - For the three months ended September 30, 2024, **interest income** increased **10%** due to a higher interest rate environment, with **average loan yield** at **5.29%** (up **44 bps** YoY) and **average investment yield** at **2.59%** (up **32 bps** YoY), while **interest expense** increased **$5.0 million** due to a **42 bps** rise in **average cost of funds** to **2.35%**[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) - For the nine months ended September 30, 2024, **net interest income** (fully-taxable equivalent) decreased **3%** to **$97.5 million**, with **interest expense** increasing **$22.1 million** due to a **58 bps** increase in **average cost of funds** to **2.32%**, while **interest income** increased **$19.6 million** due to a **48 bps** yield expansion on interest-earning assets to **4.57%**[220](index=220&type=chunk)[221](index=221&type=chunk) [Provision (Credit) for Credit Losses](index=69&type=section&id=Provision%20(Credit)%20for%20Credit%20Losses) Provision (Credit) for Credit Losses (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Provision (credit) for loan losses | $283 | ($456) | ($693) | $288 | | (Credit) provision for credit losses on off-balance sheet credit exposures | ($44) | ($118) | $390 | ($595) | | (Credit) provision for HTM debt securities | — | — | ($910) | $1,838 | | Total Provision (credit) for credit losses | $239 | ($574) | ($1,213) | $1,531 | - The nine months ended September 30, 2024, saw a negative **provision (credit for credit losses)** of **$1.2 million**, primarily due to strong asset quality and an improved macroeconomic forecast, including a **$910 thousand** credit from the sale of the Signature Bank corporate bond[228](index=228&type=chunk) [Non-Interest Income](index=69&type=section&id=Non-Interest%20Income) Non-Interest Income Components (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Debit card income | $3,169 | $3,130 | $9,104 | $9,147 | | Service charges on deposit accounts | $2,168 | $2,040 | $6,308 | $5,737 | | Income from fiduciary services | $1,817 | $1,641 | $5,436 | $5,016 | | Brokerage and insurance commissions | $1,414 | $1,217 | $4,094 | $3,462 | | Bank-owned life insurance | $709 | $644 | $2,086 | $1,849 | | Mortgage banking income, net | $973 | $583 | $2,297 | $1,889 | | Net loss on sale of securities | — | ($5,335) | — | ($5,335) | | Other income | $1,156 | $1,152 | $3,048 | $3,283 | | Total non-interest income | $11,406 | $5,072 | $32,373 | $25,048 | - **Total non-interest income** increased **125%** for the three months and **29%** for the nine months ended September 30, 2024, primarily due to the absence of a **$5.3 million** net loss on sale of securities recorded in 2023, and increases in **mortgage banking income** (up **67%** for Q3), **fiduciary services income** (up **11%** for Q3), and **brokerage/insurance commissions** (up **16%** for Q3)[229](index=229&type=chunk)[230](index=230&type=chunk) [Non-Interest Expense](index=71&type=section&id=Non-Interest%20Expense) Non-Interest Expense Components (Three and Nine Months Ended September 30, 2024 vs. 2023) | (In thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Salaries and employee benefits | $16,545 | $14,744 | $48,100 | $44,605 | | Furniture, equipment and data processing | $3,578 | $3,382 | $10,704 | $9,772 | | Net occupancy costs | $1,890 | $1,804 | $5,941 | $5,735 | | Debit card expense | $1,368 | $1,318 | $3,943 | $3,781 | | Consulting and professional fees | $788 | $897 | $2,797 | $3,327 | | Regulatory assessments | $784 | $861 | $2,454 | $2,574 | | Merger and acquisition costs | $727 | — | $727 | — | | Other expenses | $2,987 | $3,087 | $8,338 | $9,302 | | Total non-interest expense | $28,900 | $26,207 | $83,572 | $79,515 | - **Total non-interest expense** increased **10%** for the three months and **5%** for the nine months ended September 30, 2024, driven by higher incentive accruals in **salaries and benefits**, increased **investment in technology**, and **$727 thousand** in **merger and acquisition costs** related to the NFI acquisition[231](index=231&type=chunk) [FINANCIAL CONDITION](index=73&type=section&id=FINANCIAL%20CONDITION) [Cash and Cash Equivalents](index=73&type=section&id=Cash%20and%20Cash%20Equivalents) - **Total cash and cash equivalents** increased to **$139.5 million** as of September 30, 2024, from **$99.8 million** at December 31, 2023, reflecting ongoing liquidity management[233](index=233&type=chunk) [Investments](index=73&type=section&id=Investments) - The **total investment portfolio** decreased by **$33.7 million** (**2.8%**) to **$1.2 billion** as of September 30, 2024, driven by **$85.4 million** in **pay downs/maturities**, offset by **$26.0 million** in **AFS debt security purchases** and a **$22.6 million** change in fair value of **AFS debt securities**[235](index=235&type=chunk) Investment Portfolio Composition (September 30, 2024 vs. December 31, 2023) | (Dollars in thousands) | September 30, 2024 | Percent of Total Debt Securities | December 31, 2023 | Percent of Total Debt Securities | | :--------------------- | :----------------- | :------------------------------- | :---------------- | :------------------------------- | | MBS - Agency-backed | $792,403 | 67% | $830,288 | 67% | | CMO - Agency-backed | $288,041 | 24% | $306,505 | 24% | | Municipal | $61,900 | 5% | $62,691 | 5% | | Corporate | $40,980 | 3% | $40,790 | 3% | | Other - Agency-backed | $7,695 | 1% | $7,593 | 1% | | Total | $1,191,019 | 100% | $1,247,867 | 100% | - The **debt securities portfolio** has limited credit risk, composed of **U.S. government/agency-backed securities** and highly-rated corporate/municipal bonds[237](index=237&type=chunk) - All municipal bonds and **69%** of corporate bonds held **investment-grade ratings** as of September 30, 2024[240](index=240&type=chunk)[241](index=241&type=chunk) [Loans](index=74&type=section&id=Loans) Loan Portfolio Composition (September 30, 2024 vs. December 31, 2023) | (Dollars in thousands) | September 30, 2024 | December 31, 2023 | Change ($) | Change (%) | | :--------------------- | :----------------- | :---------------- | :--------- | :--------- | | Commercial real estate - non-owner-occupied | $1,387,593 | $1,370,446 | $17,147 | 1% | | Commercial real estate - owner-occupied | $320,330 | $301,860 | $18,470 | 6% | | Commercial | $382,507 | $403,901 | ($21,394) | (5)% | | Residential real estate | $1,762,395 | $1,763,378 | ($983) | 0% | | Consumer and home equity | $263,904 | $258,509 | $5,395 | 2% | | Total loans | $4,116,729 | $4,098,094 | $18,635 | 0% | - Maine remains the primary market, accounting for **68%** of the loan portfolio, with Massachusetts and New Hampshire as the second and third largest markets (**16%** and **10%** respectively)[246](index=246&type=chunk) Real Estate Investment Loan Portfolio by Property Type (September 30, 2024 vs. December 31, 2023) | (Dollars in thousands) | September 30, 2024 | % of Real Estate Investment Portfolio | December 31, 2023 | % of Real Estate Investment Portfolio | | :--------------------- | :----------------- | :------------------------------------ | :---------------- | :------------------------------------ | | Multi-family (5+ units) | $266,681 | 25% | $274,181 | 26% | | Multi-family (1-4 units) | $174,308 | 17% | $153,166 | 14% | | Office | $167,181 | 16% | $169,904 | 16% | | Industrial | $165,150 | 16% | $164,021 | 16% | | Retail | $159,640 | 15% | $167,865 | 16% | | Other | $116,691 | 11% | $128,011 | 12% | | Total | $1,049,651 | 100% | $1,057,148 | 100% | [Asset Quality](index=76&type=section&id=Asset%20Quality) - The Company proactively manages its loan portfolio, with oversight from Credit Risk and Special Assets teams, Credit Risk Policy Committee, Management Provision Committee, Directors' Credit Committee, and the Audit Committee, to identify problem credits early and maintain underwriting standards[252](index=252&type=chunk)[253](index=253&type=chunk) Non-Performing Assets (September 30, 2024 vs. December 31, 2023) | (Dollars in thousands) | September 30, 2024 | December 31, 2023 | | :--------------------- | :----------------- | :------------------ | | Total non-accrual loans | $5,350 | $5,448 | | Accruing TDRs prior to ASU 2022-02 adoption not included above | $1,645 | $1,990 | | Total non-performing loans | $6,995 | $7,438 | | Total non-performing assets | $6,995 | $7,438 | | Non-performing assets to total assets | 0.12% | 0.13% | - **Potential problem loans** (classified accruing commercial and commercial real estate loans 30-89 days past due) decreased to **$137 thousand** as of September 30, 2024, from **$1.2 million** at December 31, 2023[255](index=255&type=chunk) ACL on Loans and Off-Balance Sheet Credit Exposures (September 30, 2024 vs. December 31, 2023) | (Dollars in thousands) | September 30, 2024 | December 31, 2023 | | :--------------------- | :----------------- | :------------------ | | ACL on loans | $35,414 | $36,935 | | ACL on off-balance sheet credit exposures | $2,743 | $2,353 | | ACL at end of the period | $38,157 | $39,288 | | ACL on loans to total loans | 0.86% | 0.90% | - The reduction in **ACL on loans** to **$35.4 million** (**0.86%** of total loans) as of September 30, 2024, from **$36.9 million** (**0.90%**) at December 31, 2023, was primarily driven by a lower weighting for a forecasted recession scenario due to an improved macroeconomic outlook[262](index=262&type=chunk)[263](index=263&type=chunk) [Liabilities](index=80&type=section&id=Liabilities) - **Total deposits** remained stable at **$4.6 billion** as of September 30, 2024, compared to December 31, 2023[270](index=270&type=chunk) - **Core deposits** decreased by **$32.9 million** (**1%**), while CD balances decreased by **$56.0 million** (**9%**), and savings and money market accounts increased by **$102.1 million** (**7%**), driven by a new high-yield savings product[271](index=271&type=chunk) - The **loan-to-deposit ratio** was **90%** as of September 30, 2024, up from **89%** at December 31, 2023[272](index=272&type=chunk) - **Uninsured and uncollateralized deposits** totaled **$698.4 million** (**15%** of total deposits) as of September 30, 2024, compared to **$669.5 million** (**15%**) at December 31, 2023[273](index=273&type=chunk) - **Total borrowings** increased by **$30.7 million** (**6%**) to **$560.7 million** as of September 30, 2024, primarily due to a **$175.1 million** increase in **FHLBB advances**, partially offset by a **$9.3 million** decrease in **customer repurchase agreements**[275](index=275&type=chunk) [Shareholders' Equity](index=82&type=section&id=Shareholders'%20Equity) - **Shareholders' equity** increased by **$34.8 million** (**7%**) to **$529.9 million** as of September 30, 2024, driven by **$38.3 million** in **net income** and a **$14.5 million** increase in **AOCI**, partially offset by **$18.4 million** in **cash dividends**[276](index=276&type=chunk) - The Company declared a **quarterly cash dividend** of **$0.42** per share, resulting in an **annualized dividend yield** of **4.07%** as of September 30, 2024[277](index=277&type=chunk) - The Board authorized a **repurchase of up to 750 thousand shares** in January 2024, with **50,000 shares repurchased** through September 30, 2024[278](index=278&type=chunk) [LIQUIDITY](index=83&type=section&id=LIQUIDITY) - The Company maintains **$1.4 billion** in **primary liquidity sources**, which is **2.0 times** its **uninsured and uncollateralized deposits** as of September 30, 2024[281](index=281&type=chunk) - These sources include **excess cash at the FRB**, **unpledged AFS debt securities**, and available borrowing capacity from FHLBB and FRB Discount Window[282](index=282&type=chunk) - **Core deposits** decreased by **$32.9 million** (**1%**) to **$3.9 billion**, while **brokered deposits** increased by **$66.8 million** (**65%**) to **$168.7 million**, including **$75.0 million** in **brokered CDs** maturing within 12 months[284](index=284&type=chunk) Scheduled Maturities of CDs (September 30, 2024) | (In thousands) | CDs | | :--------------- | :---- | | 1 year or less | $514,406 | | > 1 year | $39,075 | | Total | $553,481 | Scheduled Maturities of Borrowings (September 30, 2024) | (In thousands) | FHLBB Advances | Customer Repurchase Agreements | Junior Subordinated Debentures | Total | | :--------------- | :------------- | :----------------------------- | :----------------------------- | :---- | | 1 year or less | $325,000 | $191,336 | — | $516,336 | | > 1 year | — | — | $44,331 | $44,331 | | Total | $325,000 | $191,336 | $44,331 | $560,667 | Contractual Maturities of Loans (September 30, 2024) | (Dollars in thousands) | Due in or 1 Year Less | Due after 1 Through 5 Years | Due after 5 Through 15 Years | Due in More than 15 Years | Total Loans | | :--------------------- | :-------------------- | :-------------------------- | :--------------------------- | :------------------------ | :---------- | | Fixed Rate | $22,578 | $422,653 | $720,112 | $1,405,508 | $2,570,851 | | Adjustable/Variable Rate | $99,963 | $386,220 | $426,425 | $633,270 | $1,545,878 | | Total Loans | $122,541 | $808,873 | $1,146,537 | $2,038,778 | $4,116,729 | [CAPITAL RESOURCES](index=86&type=section&id=CAPITAL%20RESOURCES) - **Shareholders' equity** totaled **$529.9 million** (**9%** of total assets) as of September 30, 2024, reflecting a strong capital base[297](index=297&type=chunk) - The Company declared **$18.4 million** in dividends for the nine months ended September 30, 2024, with the Bank declaring **$20.1 million** in dividends to the Company[298](index=298&type=chunk)[299](index=299&type=chunk) - Both the Company and the Bank exceeded all regulatory capital requirements and the Bank maintained its 'well capitalized' status as of September 30, 2024[300](index=300&type=chunk) [RISK MANAGEMENT](index=86&type=section&id=RISK%20MANAGEMENT) - The Company's **Board of Directors** and **management** identify and manage significant **risk categories**, including credit, liquidity, market, interest rate, capital, operational, technology, vendor, people, compliance, legal, strategic alignment, and reputation, under an **Enterprise Risk Management (ERM) Policy**[301](index=301&type=chunk) Net Interest Income Sensitivity Analysis (September 30, 2024 vs. 2023) | Rate Change from Year 1 — Base | Estimated Net Interest Income Changes (Sep 30, 2024) | Estimated Net Interest Income Changes (Sep 30, 2023) | | :----------------------------- | :--------------------------------------------------- | :--------------------------------------------------- | | **Year 1** | | | | +200 basis points | (3.5)% | (1.3)% | | -200 basis points | 3.8% | 2.1% | | **Year 2** | | | | +200 basis points | 1.1% | 15.1% | | -200 basis points | 14.8% | 17.1% | - The Company's **net interest income sensitivity analysis** indicates a projected increase in **net interest income** in **Year 1** if rates decrease by **200 basis points** (**3.8%** increase), and a decrease if rates increase by **200 basis points** (**3.5%** decrease)[308](index=308&type=chunk)[309](index=309&type=chunk) - In **Year 2**, both scenarios project an increase, with a significant **14.8%** increase in a **-200 bps** scenario[310](index=310&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=90&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Details pending and threatened legal actions, with management expecting no material adverse financial impact - Management believes that the outcome of pending and threatened **legal actions**, individually or in the aggregate, will not have a **material adverse effect** on the Company's consolidated financial position[319](index=319&type=chunk) [ITEM 1A. RISK FACTORS](index=90&type=section&id=ITEM%201A.%20RISK%20FACTORS) Highlights merger-related risks including integration, regulatory approvals, and transaction costs, supplementing 10-K risks - Risks related to the pending merger with NFI include the possibility that **anticipated benefits** and **cost savings** may not be fully realized or may take longer than expected, potential disruptions to business operations, and challenges in integrating NFI's business[321](index=321&type=chunk) - **Regulatory approvals** for the merger may be delayed, not received, or impose conditions that could adversely affect the combined company or reduce the **anticipated benefits**[322](index=322&type=chunk)[323](index=323&type=chunk)[324](index=324&type=chunk)[325](index=325&type=chunk)[326](index=326&type=chunk) - The Company and NFI expect to incur significant nonrecurring **transaction and integration costs**, including legal, financial advisor, accounting, and systems consolidation fees, which may not be offset by expected benefits[327](index=327&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=91&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the Company's stock repurchase activities for the three months ended September 30, 2024, primarily involving shares surrendered by employees for tax withholding related to restricted stock awards Issuer Purchases of Equity Securities (Three Months Ended September 30, 2024) | Period | Total number of shares purchased | Average price paid per share | | :--------------- | :------------------------------- | :--------------------------- | | July 1-31, 2024 | 72 | $37.76 | | August 1-31, 2024 | 137 | $38.80 | | September 1-30, 2024 | — | — | | Total | 209 | $38.44 | - All **shares purchased** were surrendered by employees to satisfy **tax withholding obligations** from **restricted stock awards**[328](index=328&type=chunk) - The Company has an authorized **common stock repurchase program** for up to **750 thousand shares**, which replaced the 2023 program and terminates by January 5, 2025, or upon reaching the authorized amount[328](index=328&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=91&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This item states that there were no defaults upon senior securities during the reporting period - There were no **defaults upon senior securities**[329](index=329&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=91&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item indicates that mine safety disclosures are not applicable to the Company - **Mine safety disclosures** are not applicable[329](index=329&type=chunk) [ITEM 5. OTHER INFORMATION](index=91&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This item states that there is no other information to report - No other information to report[329](index=329&type=chunk) [ITEM 6. EXHIBITS](index=92&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including the Agreement and Plan of Merger, CEO and CFO certifications, and iXBRL financial statements - Key exhibits include the **Agreement and Plan of Merger** with Northway Financial, Inc., **CEO and CFO certifications** (pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350), and **iXBRL formatted financial statements**[330](index=330&type=chunk) SIGNATURES

Camden National Corporation (NASDAQ:CAC) Q3 2024 Earnings Conference Call October 29, 2024 3:00 PM ET Company Participants Renée Smyth - EVP, Chief Experience and Marketing Officer Simon Griffiths - President and CEO Mike Archer - EVP, CFO Conference Call Participants Steve Moss - Raymond James Damon DelMonte - KBW David Mirochnick - Stephens Operator Good day. And welcome to Camden National Corporation's Third Quarter 2024 Earnings Conference Call. My name is Lydia, and I will be your operator for today's ...