Camden National (CAC) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Earnings Overview 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] Q2 2025 Highlights 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] 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 Balance Sheet Overview 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] - The loan-to-deposit ratio increased to 89% at June 30, 2025, from 87% at March 31, 2025[7] Loan Portfolio and Credit Quality 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] 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] Capital Ratios and Dividends 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] Financial Operating Results (Q2 2025 vs. Q1 2025) Net Interest Income and Margin 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] Provision for Credit Losses 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] Non-Interest Income 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] Non-Interest Expense 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][14] - 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] Corporate Information Q2 2025 Conference Call 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] - 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] About Camden National Corporation 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] - Founded in 1875, Camden National Bank operates 72 banking centers in Maine and New Hampshire, providing digital banking and personalized service[16] - Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management[17] Forward-Looking Statements 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] - 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][19] - Camden National does not have any obligation to update forward-looking statements[19] Use of Non-GAAP Measures and Annualized Data 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] - 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] - 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] Detailed Financial Data Selected Financial Data (GAAP & Non-GAAP) 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 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) 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) 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 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 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 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 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 Adjusted Net Income and EPS Reconciliation 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 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 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 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 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 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 % |