CAMDEN NATIONAL CORP
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
CAC$58.02+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000750686-25-000214
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000750686-25-000282
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 229 previous paragraphs and 236 current paragraphs.
146 unchanged; 64 reworded; 22 added; 19 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 36 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
(1) Recognized $4.3 million and $8.6 million of net accretion income on loans from purchase accounting for the three and six months ended June 30, 2025, respectively.
Current report
(2) Recognized $863,000 and $1.7 million of net accretion income on investments from purchase accounting for the three and six months ended June 30, 2025, respectively.
Current report
(3) Recognized $131,000 and $262,000 million of amortization expense on time deposits and borrowings from purchase accounting for the three and six months ended June 30, 2025, respectively.
Current report
Net income for the first half of 2025 was $21.4 million, a decrease of $3.9 million, or 15%, compared to the same period in 2024, and diluted EPS was $1.26 and $1.72 for the six months ended June 30, 2025 and 2024, respectively. The Company's operating results for the first six months were materially impacted by the acquisition of Northway Financial, Inc. (“Northway”), which closed on January 2, 2025. Further details on the Northway acquisition can be found in Note 3 of the consolidated financial statements.
Current report
For the majority of the first quarter of 2025, the Company operated two banking franchises— Camden National Bank and Northway Bank, which was Northway’s wholly-owned banking subsidiary. In mid-March 2025, we completed the full integration of Northway Bank’s employees, branches and information systems, and began to realize the associated expense synergies in the second quarter of 2025. As a result, the Company saw significant improvement in its second quarter financial results, as compared to the first quarter of 2025, highlighted by a 13% increase in adjusted pre-tax, pre-provision income (non-GAAP) between periods. Total revenues (which is the sum of net interest income and non-interest income) increased 4% between periods, driven by increases in both net interest income and non-interest income, while non-interest expense, excluding merger and acquisition costs, decreased 2%. The combination of improvement in both total revenues and non-interest expense drove a favorable decrease in the Company’s GAAP and non-GAAP efficiency ratio on a linked-quarter basis to 60.37% and 55.47%, respectively, for the second quarter of 2025. We anticipate that the Company will realize its full cost benefits from the Northway acquisition in the third quarter of 2025.
Current report
For the six months ended June 30, 2025, the Company incurred certain one-time costs in connection with the Northway acquisition, including (i) transaction-related costs of $8.9 million (pre-tax) and (ii) provision expense of $6.5 million for acquired non-PCD loans.
Current report
Adjusting for certain one-time transactions associated with the Northway acquisition, we reported adjusted net income (non-GAAP) of $31.2 million and adjusted diluted EPS (non-GAAP) of $1.84 for the six months ended June 30, 2025, an increase of 27% and 10%, respectively, over the same period of 2024. Included within our financial results for the six months ended June 30, 2025, was $5.9 million of provision expense for one syndicated commercial loan. During the second quarter of 2025, the commercial borrower entered bankruptcy, and, as a result, we placed the $12.0 million commercial loan on non-accrual status and downgraded the loan to doubtful. We continue to work closely with the small bank group involved with this credit and currently anticipate the bankruptcy process to be resolved in the second half of 2025. Overall, the Company’s asset quality continues to be strong and we have not identified any systemic credit concerns across our loan portfolio.
Current report
The Company’s capital position at June 30, 2025 continues to be strong and to be well in excess of regulatory capital requirements. Following the acquisition of Northway on January 2, 2025, the Company’s capital continues to swiftly rebuild.
Current report
Net Interest Income (Fully-Taxable Equivalent) for the Six Months Ended June 30, 2025 and 2024. For the six months ended June 30, 2025, the Company's net interest income on a fully-taxable equivalent basis was $98.7 million, an increase of $34.9 million, or 55%, compared to the same period in 2024.
Current report
•Interest income on a fully-taxable equivalent basis increased $35.7 million, or 29%, between periods primarily driven by interest-earning assets yield expansion of 41 basis points to 4.92% for the six months ended June 30, 2025 and increase in average earning assets of $1.0 billion, or 19%, due to the acquisition of Northway on January 2, 2025 (as described above).
Current report
•Interest expense increased $763,000, or 1%, primarily driven by the increase in average funding liabilities of $1.0 billion, or 20%, between periods due to the acquisition of Northway in the first quarter (as described above). Despite the significant increase in average funding liabilities between periods, the increase in interest expense between periods was muted due to the decrease in our average cost of funds of 36 basis points to 1.95% for the six months ended June 30, 2025. The decrease in our average cost of funds between periods reflects the change in the interest rate environment and the addition of Northway’s low-cost deposit franchise with the acquisition on January 2, 2025.
Current report
Net Interest Margin (Fully-Taxable Equivalent) for the Six Months Ended June 30, 2025 and 2024. Our net interest margin on a fully-taxable equivalent basis increased 73 basis points over the six months ended June 30, 2024 to 3.05% for the six months ended June 30, 2025. Refer to the discussion above for the drivers of the change between periods. Adjusting for the impact of purchase accounting, which contributed $10.0 million to net interest income for the first half of 2025, the Company reported non-GAAP, core net interest margin of 2.69%, an increase of 37 basis points over the first half of 2024.
Current report
Year-to-Date Average Balance, Interest and Yield/Rate Analysis
Current report
(1)Provision (credit) for loan losses: The Company recorded provision expense of $6.6 million for the second quarter of 2025, primarily driven by a commercial borrower that entered bankruptcy during the second quarter of 2025, for which the Company reserved an additional $5.9 million to cover the expected loss in future quarters. As of June 30, 2025, the Company carried an allowance on this loan totaling $6.0 million, which covered 50% of the loan amount. The Company currently anticipates that this commercial loan will be fully resolved during the second half of 2025.
Current report
For the six months ended June 30, 2025, the increase in provision for loan losses of $16.4 million over the same period of 2024 was primarily the result of: (i) the Northway acquisition on January 2, 2025, for which we designated 88% of the acquired loan portfolio as non-PCD and, as such, recorded an associated provision for credit losses on these loans (and established an associated ACL on loans) of $6.3 million, and (ii) the additional reserve required for the aforementioned commercial borrower that entered bankruptcy during the second quarter of 2025.
Current report
(1)The increase for the three and six months ended June 30, 2025, across these various income categories, compared to the same periods of 2024, was primarily the result of the Northway acquisition on January 2, 2025. As part of the acquisition the Company added approximately 50,000 customer accounts, 28,000 new debit card customers, and one BOLI policy, whereby the underlying investment is tied to the equity market and subject to normal market volatility.
Current report
(1)The increase for the three and six months ended June 30, 2025, across these various expense categories, compared to the same periods of 2024, was primarily the result of the Northway acquisition on January 2, 2025. In the second quarter of 2025, the Company continued to optimize and achieve its targeted cost savings as a combined organization, primarily through the elimination of redundancies across its personnel, information systems, technologies and services. The Company anticipates its quarterly run-rate operating expenses to continue to improve during the second half of 2025 as the full-benefit of cost savings are realized.
Current report
Income Tax Expense
Current report
On July 4, 2025, the OBBBA was signed into law. We are currently evaluating the impact of the new legislation but do not expect it to have a material impact on the Company’s consolidated financial statements. Refer to Note 18 of the consolidated financial statements for further discussion.
Current report
From time to time, the Company participates in select commercial syndication loans alongside other financial institutions to diversify its commercial loan portfolio. As of June 30, 2025 and December 31, 2024, the Company’s syndicated loan portfolio consisted of seven and eight borrowers, respectively, across a range of industries, with total outstanding loan balances of $93.9 million and $102.4 million. As of each date, these balances represented 2% of the Company’s total loan portfolio and were shared national credits.
Current report
During the second quarter of 2025, one borrower, representing $12.0 million of the outstanding balance as of June 30, 2025, entered bankruptcy, and we placed this loan on non-accrual status and downgraded its risk rating from “passing” to “doubtful”. We anticipate the bankruptcy proceedings to be completed during the second half of 2025. As of June 30, 2025, there were no other indications of credit deterioration within the syndicated loan portfolio.
Current report
(1) Represents the fair value mark recorded on deposits as of the acquisition date, January 2, 2025.
Removed paragraphs (19)
Previous report
(1) Impact from loan fair value mark accretion of $4.3 million.
Previous report
(2) Impact from investment fair value accretion of $831,000.
Previous report
(3) Impact from time deposits and borrowings amortization of $131,000.
Previous report
On January 2, 2025, the Company completed its acquisition of Northway Financial, Inc. (“Northway”), the bank holding company of Northway Bank. In mid-March 2025, we successfully completed full information systems and branch integration of the two franchises into Camden National Bank. With the completion of the acquisition, we increased our presence in New Hampshire significantly with the addition of 17 branches and over 100 new employees. As of March 31, 2025, the Company has 73 branches across Maine and New Hampshire and more than 700 employees. Our total assets also increased to $7.0 billion as of March 31, 2025.
Previous report
The strategic merger of these two long-standing franchises in Northern New England provides significant benefit to our customers through expanded technology, infrastructure, products and services, and lending limits. For our shareholders, the merger provides for an increased presence in higher growth markets, greater access to future merger and acquisition opportunities through an expanded geography, increased scale through cost synergies, and the opportunity for future revenue synergies through product and service offerings.
Previous report
For the majority of the first quarter of 2025 as we worked to integrate systems and branches, we operated Camden national Bank as two franchises that required separate information systems and technologies, employees, and branding. After the full information systems and branch integration was completed in mid-March, we began to execute on the achievement of cost synergies. Because of this, we anticipate cost synergies will begin to materialize in the second quarter of 2025. As previously disclosed, we anticipate to achieve 35% cost savings of Northway’s legacy franchise, of which we anticipate realizing 75% of those savings during 2025 and 100% thereafter.
Previous report
Net income and diluted EPS for the three months ended March 31, 2025 was $7.3 million and $0.43, respectively, decreases of 50% and 57%, respectively, compared to the same period in 2024. Our operating results for the first three months of 2025 were materially impacted by the acquisition of Northway as we (1) combined the financial results of the two companies, (2) incurred acquisition-related costs of $7.5 million (pre-tax), (3) revalued the Company’s legacy deferred tax assets to account for our new deferred tax rate as a combined entity that resulted in a one-time tax benefit of $2.4 million to net income, and (4) recorded a one-time provision expense of $6.5 million associated with the accounting for acquired non-PCD loans. Adjusting for certain one-time transactions associated with the acquisition, on a non-GAAP basis, we reported adjusted net income of $16.0 million and adjusted diluted EPS of $0.95, an increase of 28% and 10%, respectively, over the first quarter of 2024. Additional details on the acquisition and our accounting for the acquisition can be found in Note 3 of the consolidated financial statements.
Previous report
We continue to anticipate additional acquisition-related costs will be incurred over the coming quarters. In total, we have incurred $10.8 million of acquisition-related costs through March 31, 2025, including those incurred by Northway prior to closing of the acquisition and we estimate we will remain at or under the total estimated spend we initially reported of $13.5 million.
Previous report
The following table outlines key financial metrics for the periods indicated:
Previous report
(1)Provision (credit) for loan losses: The Company recorded provision expense of $8.9 million for the first quarter of 2025, primarily driven by the Northway acquisition. Upon completing the acquisition on January 2, 2025, we designated 88% of the acquired loan portfolio as non-PCD and recorded an ACL on loans totaling $6.3 million for acquired non-PCD loans. As required for non-PCD loans, the establishment of the ACL on loans as of the acquisition date was charged to the provision for credit losses on the consolidated statements of income. Additionally, for the first quarter of 2025, we recorded additional provision expense of $2.6 million to account for the macroeconomic uncertainty and the heightened risk of a recession as of March 31, 2025.
Previous report
The negative provision expense (i.e., credit for credit losses) of $1.2 million recorded for the first quarter of 2024 was driven by strong asset quality and an improved macroeconomic forecast.
Previous report
(1)Debit card income: The increase between periods of $367,000, or 13%, was driven by the acquisition of Northway on January 2, 2025. Through the acquisition, the Company added approximately 28,000 new debit card customers.
Previous report
(2)Service charges on deposit accounts: The increase between periods of $291,000, or 14%, was driven by the acquisition of Northway on January 2, 2025. Through the acquisition, the Company added approximately 50,000 customer accounts.
Previous report
(1)The increase between periods across these various expense categories was primarily the result of the acquisition of Northway on January 2, 2025. For the majority of the first quarter of 2025, we operated Camden National Bank as two separate and distinct franchises. In mid-March 2025, we completed the information systems and branch integrations, which allows us to begin to optimize the combined organization and obtain our previously communicated cost synergies, primarily through a reduced number of employees, elimination of redundant information systems, technologies and services, and the anticipated consolidation of certain locations. We anticipate these cost savings to begin to materialize in the second quarter of 2025, and we continue to target the realization of 75% of our estimated annual cost take-out of 35% of Northway’s historical annual costs for calendar year 2025.
Previous report
Income Tax (Benefit) Expense
Previous report
On January 2, 2025, the Company completed its acquisition of Northway, which included $775.7 million of loans held for investment, net of purchase accounting adjustments. Excluding the acquired loans, loan balances for the first quarter of 2025 decreased $5.8 million, or less than 1%. The following table details the Company’s change in organic loan balances for the first quarter of 2025:
Previous report
(1) Net of purchase accounting adjustments.
Previous report
ACL on Loans. As part of the acquisition of Northway, we designated those acquired loans with a more-than-insignificant deterioration in credit quality since origination as PCD. In total, we designated acquired loans with an unpaid principal balance of $103.0 million, or 12% of the acquired loans, as PCD. We established an ACL on these acquired loans of $3.1 million at acquisition date. All remaining acquired loans that were not designated as PCD were designated as non-PCD loans, and we established an ACL of $6.3 million on these loans at acquisition date with a corresponding charge to provision for credit losses on the consolidated statements of income.
Previous report
(1) Net of purchase accounting adjustments.
Reworded paragraphs (64)
Previous wording
Pre-Tax, Pre-Provision Income and adjusted pre-tax, pre-provision income. Pre-tax, pre-provision income is a supplemental measure of operating earnings and performance. Pre-tax, pre-provision income is calculated as net income before provision for credit losses and income tax (benefit) expense. This supplemental measure has become more widely used by financial institutions as a measure of financial performance for comparability across financial institutions. Adjusted pre-tax, pre-provision income is a supplemental measure with certain non-recurring expenses excluded. We believe the following adjusted financial information and metrics assist users of our financial statements with their financial analysis period-over-period as it adjusts for certain non-recurring items.
Current wording
Pre-Tax, Pre-Provision Income and adjusted pre-tax, pre-provision income. Pre-tax, pre-provision income is a supplemental measure of operating earnings and performance. Pre-tax, pre-provision income is calculated as net income before provision for credit losses and income tax expense. This supplemental measure has become more widely used by financial institutions as a measure of financial performance for comparability across financial institutions. Adjusted pre-tax, pre-provision income is a supplemental measure with certain non-recurring expenses excluded. We believe the following adjusted financial information and metrics assist users of our financial statements with their financial analysis period-over-period as it adjusts for certain non-recurring items.
Previous wording
Camden National Corporation (hereafter referred to as “we,” “our,” “us,” or the “Company”) is a publicly-held bank holding company, with $7.0 billion in assets as of March 31, 2025, incorporated under the laws of the State of Maine and headquartered in Camden, Maine. Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company, was founded in 1875. The Company was founded in 1984, went public in 1997 and is registered with NASDAQ Global Market (“NASDAQ”) under the ticker symbol "CAC."
Current wording
Camden National Corporation (hereafter referred to as “we,” “our,” “us,” or the “Company”) is a publicly-held bank holding company, with $6.9 billion in assets as of June 30, 2025, incorporated under the laws of the State of Maine and headquartered in Camden, Maine. Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company, was founded in 1875. The Company was founded in 1984, went public in 1997 and is registered with NASDAQ Global Market (“NASDAQ”) under the ticker symbol "CAC."
Previous wording
Net interest income is the interest earned on loans, securities, and other interest-earning assets, adjusted for net loan fees, origination costs, and accretion or amortization of fair value marks on loans, investments, time deposits and/or borrowings created in purchase accounting, less the interest paid on interest-bearing deposits and borrowings. Net interest income is our largest source of revenue ("revenue" is defined as the sum of net interest income and non-interest income). For the quarter ended March 31, 2025, net interest income was 81% of total revenues, compared to 75% for the same period in 2024. Net interest income is affected by factors including, but not limited to, changes in interest rates, loan and deposit pricing strategies and competitive conditions, loan prepayment speeds, the volume and mix of interest-earning assets and interest-bearing liabilities, and the level of non-performing assets.
Current wording
Net interest income is the interest earned on loans, securities, and other interest-earning assets, adjusted for net loan fees, origination costs, and accretion or amortization of fair value marks on loans, investments, time deposits and/or borrowings created in purchase accounting, less the interest paid on interest-bearing deposits and borrowings. Net interest income is our largest source of revenue ("revenue" is defined as the sum of net interest income and non-interest income). For the quarter ended June 30, 2025, net interest income was 79% of total revenues, compared to 75% for the same period in 2024. For the six months ended June 30, 2025, net interest income was 80% of total revenues, compared to 75% for the same period of 2024. Net interest income is affected by factors including, but not limited to, changes in interest rates, loan and deposit pricing strategies and competitive conditions, loan prepayment speeds, the volume and mix of interest-earning assets and interest-bearing liabilities, and the level of non-performing assets.
Previous wording
Net Interest Income (Fully-Taxable Equivalent). Net interest income on a fully-taxable equivalent basis for the quarter ended March 31, 2025 was $49.2 million, an increase of $17.8 million, or 57%, compared to the first quarter of 2024. The increase between periods consisted of an increase in interest income on a fully-taxable equivalent basis of $18.4 million, or 30%, which was partially offset by an by a slight increase of a $627,000, or 2%, in interest expense.
Current wording
Net Interest Income (Fully-Taxable Equivalent) for the Three Months Ended June 30, 2025 and 2024. Net interest income on a fully-taxable equivalent basis for the quarter ended June 30, 2025 was $49.5 million, an increase of $17.2 million, or 53%, compared to the second quarter of 2024. The increase between periods consisted of an increase in interest income on a fully-taxable equivalent basis of $17.3 million, or 28%, which was partially offset by an increase in interest expense of $136,000, or 1%.
Previous wording
•Average interest-earning assets totaled $6.4 billion for the first quarter of 2025, which was an increase of $1.0 billion, or 19%, compared to the first quarter of 2024. The increase between periods was largely due to the acquisition of Northway on January 2, 2025. Through the acquisition, we acquired (i) total loans, net of purchase accounting adjustments, of $772.6 million, (ii) total investments, net of purchase accounting adjustments of $230.0 million, and (iii) total cash of $48.3 million. Refer to Note 3 of the consolidated financial statements for further details. In the first quarter of 2025, we recognized net fair value mark accretion from our purchase accounting associated with the acquisition of Northway totaling $5.1 million within interest income, which was made up of $4.3 million of fair value mark accretion on loans and $831,000 of fair value mark accretion on investments. Additionally, between periods the Company’s interest-earning asset yield continued to improve organically and contributed to the increased net interest income as we continued to reinvest cash flows from lower yielding interest-earning assets into new loan originations and investments at higher interest rates.
Current wording
•Average interest-earning assets totaled $6.4 billion for the second quarter of 2025, which was an increase of $1.0 billion, or 18%, compared to the second quarter of 2024. The increase between periods was primarily driven by the Northway acquisition on January 2, 2025. As part of the acquisition, the Company acquired total loans of $775.7 million and investments of $230.0 million. In the second quarter of 2025, the Company recognized net fair value mark accretion from the purchase accounting associated with the acquisition of Northway of $5.1 million within interest income, which was made up of $4.3 million of fair value mark accretion on loans and $863,000 of fair value mark accretion on investments. Additionally, between periods the Company’s interest-earning asset yield continued to improve organically and contributed to the increased net interest income as we continued to reinvest cash flows from lower yielding interest-earning assets into new loan originations and investments at current market interest rates.
Previous wording
•Average funding liabilities totaled $6.2 billion for the first quarter of 2025, which was an increase of $1.0 billion, or 20%, compared to the first quarter of 2024. The increase between periods was largely due to the acquisition of Northway on January 2, 2025. Through the acquisition, we acquired (i) total deposits, net of purchase accounting adjustments, of $971.7 million and (ii) assumed borrowings, net of purchase accounting adjustments, of $127.6 million. Despite the significant increase in average funding liabilities between periods, interest expense for the first quarter of 2025 increased just $627,000, or 2%, due to the decrease in our average cost of funds of 33 basis points to 1.94% for the first quarter of 2025. The decrease in our average cost of funds between periods reflects the change in the interest rate environment. The Federal Funds Effective Rate for the first quarter of 2025 was 4.33%, which was 100 basis points lower than the same period of 2025. The other driver for the decrease in our average cost of funds between periods was the acquisition of Northway and the strength of its low-cost deposit franchise.
Current wording
•Average funding liabilities totaled $6.2 billion for the second quarter of 2025, which was an increase of $1.0 billion, or 20%, compared to the second quarter of 2024. The increase between periods was primarily driven by the acquisition of Northway on January 2, 2025. As part of the acquisition, the Company acquired total deposits of $971.7 and borrowings of $45.0 million. Despite the significant increase in average funding liabilities between periods, interest expense for the second quarter of 2025 increased just $136,000 due to the decrease in our average cost of funds of 39 basis points to 1.96% for the second quarter of 2025. The decrease in our average cost of funds between periods reflects the change in the interest rate environment. The Federal Funds Effective Rate for the second quarter of 2025 was 4.33%, which was 100 basis points lower than the same period of 2024. The other driver for the decrease in our average cost of funds between periods was the low-cost deposit franchise the Company acquired through the Northway acquisition.
Previous wording
Net Interest Margin (Fully-Taxable Equivalent). Net interest margin is calculated as net interest income on a fully-taxable equivalent basis as a percentage of average interest-earning assets. Our net interest margin on a fully-taxable equivalent basis increased 74 basis points over the first quarter of 2024 to 3.04% for the first quarter of 2025. Refer to the discussion above for the drivers for the change between periods. Adjusting for the impact of purchase accounting, which contributed $5.0 million to net interest income for the first quarter of 2025, the Company reported non-GAAP, core net interest margin of 2.68%, an increase of 38 basis points over the first quarter of 2024.
Current wording
Net Interest Margin (Fully-Taxable Equivalent) for the Three Months Ended June 30, 2025 and 2024. Net interest margin is calculated as net interest income on a fully-taxable equivalent basis as a percentage of average interest-earning assets. Our net interest margin on a fully-taxable equivalent basis increased 70 basis points over the second quarter of 2024 to 3.06% for the second quarter of 2025. Refer to the discussion above for the drivers for the change between periods. Adjusting for the impact of purchase accounting, which contributed $5.0 million to net interest income for the second quarter of 2025, the Company reported non-GAAP, core net interest margin of 2.70%, an increase of 34 basis points over the second quarter of 2024.
Previous wording
The following table presents, for the periods noted, average balances, interest income, interest expense, and the corresponding average yields earned and rates paid, as well as net interest income, net interest rate spread and net interest margin:
Current wording
The following tables present, for the periods noted, average balances, interest income, interest expense, and the corresponding average yields earned and rates paid, as well as net interest income, net interest rate spread and net interest margin:
Previous wording
(2)Provision (credit) for credit losses on off-balance sheet credit exposures: At March 31, 2025, the ACL on off-balance sheet credit exposures was $3.4 million, as compared to $2.3 million as of March 31, 2024. The increase was driven by the Northway acquisition on January 2, 2025, and an overall increase in our loss reserve levels given the macroeconomic uncertainty and heightened risk of a recession as of March 31, 2025. Unfunded commitments increased $195.2 million between periods.
Current wording
(2)Provision for credit losses on off-balance sheet credit exposures: At June 30, 2025, the ACL on off-balance sheet credit exposures was $3.7 million, as compared to $2.8 million as of June 30, 2024. The increase was driven by: (i) the Northway acquisition on January 2, 2025 and (ii) an increase in our loss reserves for our current macroeconomic outlook. Our unfunded commitments increased $178.1 million between periods.
Previous wording
(3)(Credit) for HTM debt securities: In the first quarter of 2024, the Company sold its Signature Bank corporate bond that it had previously written off for $1.8 million and recovered proceeds of $910,000.
Current wording
(3)Credit for HTM debt securities: During the first six months of 2024, the Company sold its Signature Bank corporate bond that it had previously written off for $1.8 million and recovered proceeds of $910,000.
Previous wording
(3)Brokerage and insurance commissions: The increase between periods of $458,000, or 37%, was driven by the increase in assets under management to $999.3 million, an increase of $168.8 million, or 16%.
Current wording
(2)Brokerage and insurance commissions: The increase for the three and six months ended June 30, 2025 compared to 2024, was driven by an increase in assets under management of $189.5 million, or 22%, to $1.1 billion as of June 30, 2025.
Previous wording
(4)Mortgage banking income, net: The decrease between periods was driven by the negative change in fair value on loans held for sale and residential mortgage loan pipelines. During the first quarter of 2025, the Company sold $41.8 million, or 55%, of its residential mortgage production for the first quarter of 2025, compared to $41.4 million, or 51%, for the same period of 2025. The Company continues to sell the majority of its residential mortgage production in the secondary market,
Current wording
(3)Mortgage banking income, net: The increase for the three and six months ended 2025 compared to the periods in 2024 was driven by the positive change in fair value on loans held for sale and residential mortgage loan pipelines for both periods. During the three and six months ended June 30, 2025, the Company sold $48.4 million and $90.3 million, or 39% and 45%, respectively, of its residential mortgage production, compared to $53.5 million and $95.0 million, or 52% and 51%, respectively, for the same periods of 2024.
Previous wording
(2)Amortization of core deposit intangible assets: The increase between periods was the result of the acquisition of Northway on January 2, 2025. While not final, our provisional estimate for CDI assets created as part of the acquisition of Northway totaled $48.1 million, of which we estimate the useful life of the definite-lived intangible asset to be ten years. Refer to Note 3 and Note 6 of the consolidated financial statements for additional information.
Current wording
(2)Amortization of core deposit intangible assets: The increase for the three and six months ended June 30, 2025 compared to the same periods in 2024, was the result of Northway acquisition on January 2, 2025. Our provisional estimate for CDI assets created during the acquisition totaled $48.1 million, of which we estimate the useful life of the definite-lived intangible asset to be ten years. Refer to Note 3 and Note 6 of the consolidated financial statements for additional information.
Previous wording
(3)Merger and acquisition costs: In the first quarter of 2025, the Company incurred $7.5 million of one-time, acquisition-related costs associated with the acquisition of Northway that closed on January 2, 2025. Through March 31, 2025, the Company has incurred total acquisition-related costs, including those incurred by Northway prior to the closing on January 2, 2025, of $10.8 million. We continue to be on track to meet our target of $13.5 million in total acquisition-related costs, as we anticipate additional one-time, acquisition-related costs to be incurred over the coming quarters.
Current wording
(3)Merger and acquisition costs: For the three and six months ended June 30, 2025, the Company incurred costs associated with the Northway acquisition totaling $1.4 million and $8.9 million, respectively. Through June 30, 2025, the Company had incurred total acquisition-related costs, including those incurred by Northway prior to the closing on January 2, 2025, of $12.2 million. We anticipate additional one-time, acquisition-related costs to be incurred over the coming quarters.
Previous wording
The acquisition-related costs incurred during the first quarter of 2025 include:
Current wording
The acquisition-related costs incurred during the three and six months ended June 30, 2025 include:
Previous wording
The Company recorded an income tax benefit of $1.2 million for the first quarter of 2025, compared to income tax expense of $3.1 million for the first quarter of 2024. In conjunction with the Company’s acquisition of Northway on January 2, 2025, we reassessed the Company’s estimated normalized effective tax rate given the change in the apportionment of income across the states in which the Company primarily operates. We currently estimate the Company’s annualized effective tax rate is 20.6%. However, also upon completion of the Northway acquisition, the Company’s estimated deferred tax rate also changed, increasing from 21.5% to 22.8%, which resulted in a one-time revaluation of the Company’s legacy deferred tax assets and the recognition of a one-time tax benefit of $2.4 million in the first quarter of 2025. Refer to Note 3 of the consolidated financial statements for further discussion.
Current wording
The Company recorded income tax expense of $3.7 million and $2.5 million, respectively, for the three and six months ended June 30, 2025, compared to $2.9 million and $5.9 million, respectively, for the same periods in 2024. The Company’s estimated normalized effective tax rate is currently estimated at 20.6%, however, given the Northway acquisition and the change in the apportionment of income across the states in which the Company primarily operates, the Company changed its estimated deferred tax rate, increasing it from 21.5% to 22.8% in the first quarter of 2025. This change in the estimated deferred tax rate resulted in a one-time revaluation of the Company’s legacy deferred tax assets and the recognition of a one-time income tax benefit of $2.4 million in the first quarter of 2025. Refer to Note 3 of the consolidated financial statements for further discussion.
Previous wording
Total cash and cash equivalents as of March 31, 2025, were $219.4 million, compared to $214.9 million at December 31, 2024. As part of the Company’s acquisition of Northway, it acquired $48.3 million of cash as of January 2, 2025. Shortly thereafter, the Company prepaid all of the FHLBB borrowings assumed from Northway totaling $45.0 million, which largely offset the cash and cash equivalents obtained through the acquisition. The Company continues to actively manage its cash balances. Refer to Note 3 of the consolidated financial statements for further details on acquired assets and liabilities from Northway.
Current wording
Total cash and cash equivalents as of June 30, 2025, were $113.8 million, compared to $215.0 million at December 31, 2024. As part of the Northway acquisition on January 2, 2025, the Company acquired $48.3 million of cash which it leveraged to prepay all of the FHLBB borrowings assumed from Northway, totaling $45.0 million, offsetting the cash obtained through the acquisition. Additionally, during the six months ended June 30, 2025, we utilized cash to support loan growth. The Company continues to actively manage its cash balances. Refer to Note 3 of the consolidated financial statements for further details on acquired assets and liabilities from Northway.
Previous wording
Included within the Company’s cash and cash equivalents balances at March 31, 2025 and December 31, 2024, was cash held in escrow by the FHLBB as collateral posted by the counterparties for our derivatives in a net asset position at each reporting date totaling $16.6 million and $13.2 million, respectively. We and the counterparty manage these cash accounts daily. Refer to Notes 10 and 11 of the consolidated financial statements for additional detail on the Company’s derivatives and collateral.
Current wording
Included within the Company’s cash and cash equivalents’ balances at June 30, 2025 and December 31, 2024, was cash held in escrow by the FHLBB as collateral posted by the counterparties for our derivatives in a net asset position totaling $11.1 million and $13.2 million, respectively. We and the counterparty manage these cash accounts daily. Refer to Notes 10 and 11 of the consolidated financial statements for additional detail on the Company’s derivatives and collateral.
Previous wording
As of March 31, 2025, the reported value of the Company's total investments portfolio was $1.4 billion, an increase of $244.7 million, or 21%, since December 31, 2024. The change between periods was driven by the following:
Current wording
As of June 30, 2025, the reported value of the Company's total investments portfolio was $1.4 billion, an increase of $262.4 million, or 23%, since December 31, 2024. The change between periods was driven by the following:
Previous wording
•Acquisition of Northway’s investments totaling $230.0 million, net of purchase accounting adjustments, which included (i) investment debt securities of $227.4 million, net of purchase accounting adjustments, all of which we designated as AFS and (ii) FHLBB and other corresponding banking relationship common stock of $2.5 million.
Current wording
•Investments acquired as part of the Northway acquisition on January 2, 2025 totaling $230.0 million, net of purchase accounting adjustments, which included: (i) investment debt securities of $227.4 million, net of purchase accounting adjustments, all of which we designated as AFS and (ii) FHLBB and other corresponding banking relationship common stock totaling $2.5 million.
Previous wording
•Sale of $56.4 million of acquired Northway debt securities shortly after acquisition date to restructure the combined investment portfolio. These debt securities were sold at fair value, and, thus, no gain or loss was recognized upon sale.
Current wording
•The Sale of $56.4 million of acquired Northway debt securities shortly after the acquisition date to restructure the combined investment portfolio. These debt securities were sold at fair value, and, thus, no gain or loss was recognized upon sale.
Previous wording
•Purchase of $75.6 million of debt securities that we designated as AFS, and the purchase of $5.0 million of subordinated corporate debt securities of another regional financial institution that we designated as HTM.
Current wording
•The Purchase of $120.9 million of debt securities that we designated as AFS, and the purchase of $5.0 million of subordinated corporate debt securities of another regional financial institution that we designated as HTM.
Previous wording
•Pay downs, calls, and maturities of $9.5 million.
Current wording
•Pay downs, calls, and maturities of $64.8 million.
Previous wording
•The increase in fair value of the Company’s AFS debt securities of $17.2 million due to the decrease in interest rates between periods.
Current wording
•An increase in the fair value of the Company’s AFS debt securities of $22.4 million due to the decrease in interest rates across the mid- and long-end of the yield curve between periods.
Previous wording
Our AFS debt securities portfolio, which comprised 60% and 52% of our investment portfolio as of March 31, 2025 and December 31, 2024, respectively, was carried at fair value using Level 2 valuation techniques. Refer to Note 17 of the consolidated financial statements for further details on the Company's fair value techniques. Our HTM debt securities are carried at amortized cost and comprised 37% and 45% of our investment portfolio as of March 31, 2025 and December 31, 2024, respectively.
Current wording
Our AFS debt securities portfolio, which comprised 61% and 52% of our investment portfolio as of June 30, 2025 and December 31, 2024, respectively, was carried at fair value using Level 2 valuation techniques. Refer to Note 17 of the consolidated financial statements for further details on the Company's fair value techniques. Our HTM debt securities are carried at amortized cost and comprised 36% and 45% of our investment portfolio as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
The book value of our debt securities as of March 31, 2025 was $1.4 billion compared to $1.2 billion as of December 31, 2024. Our debt securities portfolio has limited credit risk due to its composition, which includes securities backed by the U.S. government and government-sponsored agencies, and highly rated subordinated corporate and municipal bonds by nationally recognized rating agencies. At March 31, 2025 and December 31, 2025, the book value of U.S. government and government-sponsored agencies represented approximately 92% and 91%, respectively, of our debt securities portfolio.
Current wording
The book value of our debt securities as of June 30, 2025 was $1.4 billion, compared to $1.1 billion as of December 31, 2024. Our debt securities portfolio has limited credit risk due to its composition, which includes securities backed by the U.S. government and government-sponsored agencies, and highly rated subordinated corporate and municipal bonds by nationally recognized rating agencies. At June 30, 2025 and December 31, 2024, the book value of U.S. government and government-sponsored agencies represented approximately 92% and 91%, respectively, of our debt securities portfolio.
Previous wording
The following table provides the make-up of the Company's investment portfolio as of March 31, 2025 and December 31, 2024, based on the book value of each security type as a percentage of total book value of the Company's debt securities:
Current wording
The following table details the composition of the Company's investment portfolio as of June 30, 2025 and December 31, 2024, based on the book value of each security type as a percentage of total book value of the Company's debt securities:
Previous wording
At March 31, 2025 and December 31, 2024, municipal bonds were 4% and 5% of the book value of the total bond portfolio at each date and all municipal bonds carried an investment-grade credit rating.
Current wording
At June 30, 2025 and December 31, 2024, municipal bonds were 4% and 5%, respectively, of the book value of the total bond portfolio at each date and all municipal bonds carried an investment-grade credit rating.
Previous wording
At March 31, 2025 and December 31, 2024, subordinated corporate bonds were 3% of the book value of the total bond portfolio for both periods. At March 31, 2025 and December 31, 2024, subordinated corporate bonds had a book values of $25.9 million at each period, or 62% and 70%, respectively, of the subordinated corporate bond portfolio and carried an investment-grade credit rating. The remaining $16.2 million and $11.2 million, respectively, of book value, or 38% and 30%, respectively, of the subordinated corporate bond portfolio, were non-rated subordinated corporate bonds of community banks within our markets. As of March 31, 2025, the subordinated corporate bond portfolio was made up of 17 different companies, which included 15 different banks. The banks in the portfolio range from the largest U.S. banks to community banks, with 31% of our exposure as of March 31, 2025, being to global systemically important banks, or "G-SIBs." We continue to monitor and analyze the performance of our subordinated corporate bond portfolio.
Current wording
At June 30, 2025 and December 31, 2024, subordinated corporate bonds were 3% of the book value of the total bond portfolio at each date. At June 30, 2025 and December 31, 2024, subordinated corporate bonds with a book value of $25.9 million at each period, or 62% and 70%, respectively, of the subordinated corporate bond portfolio, carried an investment-grade credit rating. The remaining $16.2 million and $11.2 million, respectively, of book value, or 38% and 30%, respectively, of the subordinated corporate bond portfolio, were non-rated subordinated corporate bonds of community banks within our markets. As of June 30, 2025, the subordinated corporate bond portfolio was made up of 17 different companies, which included 15 different banks. The banks in the portfolio range from the largest U.S. banks to community banks, with 31% of our exposure as of June 30, 2025, being to global systemically important banks, or "G-SIBs." We continue to monitor and analyze the performance of our subordinated corporate bond portfolio.
Previous wording
Other Investments. Our other investments on the consolidated statements of condition is primarily made up of FHLBB and FRB common stock. These investments are carried at cost. We are required to maintain a certain level of investment in FHLBB stock based on our level of FHLBB advances, and maintain a certain level of investment in FRB common stock based on the Bank's capital levels. As of March 31, 2025 and December 31, 2024, our investment in FHLBB stock totaled $17.5 million and $17.1 million, respectively, and our investment in FRB stock was $8.7 million and $5.4 million, respectively.
Current wording
Other Investments. Our other investments on the consolidated statements of condition is primarily made up of FHLBB and FRB common stock. These investments are carried at cost. We are required to maintain a certain level of investment in FHLBB stock based on our level of FHLBB advances, and maintain a certain level of investment in FRB common stock based on the Bank's capital levels. As of June 30, 2025 and December 31, 2024, our investment in FHLBB stock totaled $18.1 million and $17.1 million, respectively, and our investment in FRB stock was $8.7 million and $5.4 million, respectively.
Previous wording
Refer to Note 3 of the consolidated financial statements for further discussion of the Company’s accounting for the acquisition of Northway.
Current wording
On January 2, 2025, the Company completed its acquisition of Northway, which included $775.7 million of loans held for investment, net of purchase accounting adjustments. Refer to Note 3 of the consolidated financial statements for further discussion of the Company’s accounting for the acquisition of Northway.
Previous wording
Portfolio Concentrations. Our primary geographical markets are Maine, New Hampshire and Massachusetts, making up 57%, 25%, and 13%, respectively, of the loan portfolio as of March 31, 2025, compared to 68%, 16%, and 10%, respectively, as of December 31, 2024. The increases between periods in our loan exposure to New Hampshire and Massachusetts was driven by the Northway acquisition. As of March 31, 2025, our distribution channels, including branches acquired in the Northway merger, included 55 branches in Maine, 18 branches and one loan production office in in New Hampshire, and an online residential mortgage and small business digital loan platform.
Current wording
Portfolio Concentrations. Our primary geographical markets are Maine, New Hampshire and Massachusetts, making up 57%, 25%, and 13%, respectively, of the loan portfolio as of June 30, 2025, compared to 68%, 11%, and 16%, respectively, as of December 31, 2024. The increases between periods in our loan exposure to New Hampshire and Massachusetts was driven by the Northway acquisition. As of June 30, 2025, our distribution channels, including branches acquired in the Northway merger, included 55 branches in Maine, 17 branches in New Hampshire, and an online residential mortgage and small business digital loan platform.
Previous wording
As of March 31, 2025 and December 31, 2024, lessors of residential buildings industry (lessors of buildings used as residences, such as single-family homes, apartments and town houses) and the non-residential building operators' industry (operators of commercial and industrial buildings, retail establishments, theaters, banks and insurance buildings) concentrations were 32% and 31%, respectively, of our total commercial real estate portfolio and both were 13% of total loans. As of March 31, 2025, there were no other industry concentrations within our loan portfolio that exceeded 10% of total loans.
Current wording
As of June 30, 2025, the non-residential building operators' industry (operators of commercial and industrial buildings, retail establishments, theaters, banks and insurance buildings) and lessors of residential buildings industry (lessors of buildings used as residences, such as single-family homes, apartments and town houses) concentrations were 31% and 30%, respectively, of our total commercial real estate portfolio and were both 13% of total loans. As of June 30, 2025, there were no other industry concentrations within our loan portfolio that exceeded 10% of total loans.
Previous wording
(a) Multi-family (5+ units) loans are primarily located in non-urban locations, including 56% in Maine, 33% in New Hampshire, and 9% in Massachusetts as of March 31, 2025, compared to 68%, 23%, and 7%, respectively, as of December 31, 2024.
Current wording
(a) Multi-family (5+ units) loans are primarily located in non-urban locations, including 53% in Maine, 36% in New Hampshire, and 9% in Massachusetts as of June 30, 2025, compared to 68%, 23%, and 7%, respectively, as of December 31, 2024.
Previous wording
Related Party Transactions. The Bank is permitted, in its normal course of business, to make loans to certain officers and directors of the Company and Bank under terms that are consistent with the Bank’s lending policies and regulatory requirements. In addition to extending loans to certain officers and directors of the Company and Bank on terms consistent with the Bank’s lending policies, federal banking regulations also require training, audit and examination of the adherence to this policy (also known as “Regulation O” requirements). Note 5 of the consolidated financial statements provide information on related party lending and deposit transactions, respectively. We have not entered into significant related party transactions.
Current wording
Related Party Transactions. The Bank is permitted, in its normal course of business, to make loans to certain officers and directors of the Company and Bank under terms that are consistent with the Bank’s lending policies and regulatory requirements. In addition to extending loans to certain officers and directors of the Company and Bank on terms consistent with the Bank’s lending policies, federal banking regulations also require training, audit and examination of the adherence to this policy (also known as “Regulation O” requirements). Note 5 of the consolidated financial statements provides information on related party lending transactions. We have not entered into significant related party transactions.
Previous wording
Potential Problem Loans. Potential problem loans consist of classified accruing commercial and commercial real estate loans that were 30-89 days past due. Such loans are characterized by weaknesses in the financial condition of borrowers or collateral deficiencies. Based on historical experience, the credit quality of some of these loans may improve due to changes in collateral values or the financial condition of the borrowers, while the credit quality of other loans may deteriorate, resulting in a loss. These loans are not included in the above analysis of non-accrual loans. As of March 31, 2025 and December 31, 2024, loans classified as potential problem loans totaled $83,000 and $96,000, respectively.
Current wording
Potential Problem Loans. Potential problem loans consist of classified accruing commercial and commercial real estate loans that were 30-89 days past due. Such loans are characterized by weaknesses in the financial condition of borrowers or collateral deficiencies. Based on historical experience, the credit quality of some of these loans may improve due to changes in collateral values or the financial condition of the borrowers, while the credit quality of other loans may deteriorate, resulting in a loss. These loans are not included in the above analysis of non-accrual loans. As of June 30, 2025 and December 31, 2024, loans classified as potential problem loans totaled $225,000 and $96,000, respectively.
Previous wording
During the first quarter of 2025, the Company completed its assessment of significant model inputs and assumptions within its discounted cash flow analysis used for estimating its ACL on loans and determined there were no material changes to the methodology. The significant key assumptions used with the ACL on loans calculation as of March 31, 2025 and December 31, 2024, included: (i) Company-specific macroeconomic factors (i.e., loss drivers), (ii) our forecast period and reversion speed, (iii) prepayment speeds, and (iv) various qualitative factors. In the first quarter the Company updated the company-specific macroeconomic factors, see Note 5 Loans for more detail on the changes.
Current wording
ACL on Loans. There were no significant changes in our modeling methodology to determine the ACL on loans during the three months or six months ended June 30, 2025. The significant key assumptions used with the ACL on loans calculation as of June 30, 2025 and December 31, 2024, included: (i) Company-specific macroeconomic factors (i.e., loss drivers), (ii) our forecast period and reversion speed, (iii) prepayment speeds, and (iv) various qualitative factors.
Previous wording
As of March 31, 2025, the ACL on loans totaled $46.7 million, or 0.96% to total loans, compared to $35.7 million, or 0.87% of total loan as of December 31, 2024. Our ACL on loans estimate as of each date incorporated multiple forecasted economic scenarios and probability weighting of each scenario. Included within our ACL on loans as of March 31, 2025 and December 31, 2024, was consideration for qualitative factors that may not be, or may not be completely, represented within the Company’s accounting model used to determine its ACL on loans. Each quarter, in conjunction with our quarterly close and financial reporting, we evaluate the need for these qualitative factors and make adjustments as appropriate, including consideration of macro- and micro-level changes. The ACL on loans as of March 31, 2025, incorporated a higher probability weighting for the forecasted likelihood of recession over the next 12 to 24 months, as compared to December 31, 2024. This resulted in an increase in our ACL on loans between periods of $2.6 million, or an increase of approximately 5 basis points to ACL on loans. The overall global and national markets continue to be volatile and carry a high degree of uncertainty, and any changes to our forecast or qualitative factors subject our ACL estimate to a higher risk of fluctuation between periods.
Current wording
As of June 30, 2025 and December 31, 2024, the recorded ACL on loans was $53.0 million, or 1.08% to total loans, and $35.7 million, or 0.87% of total loans, respectively, and represented our best estimate. Our ACL on loans estimate as of each date incorporated the ongoing risk of a recession over the next 12 to 24 months using multiple scenarios and probability weighting each scenario. The ACL on loans as of June 30, 2025 incorporated a higher weighting for the probability of a recession over the next 12 to 24 months based on management's forecasted macroeconomic outlook as of that date as compared to December 31, 2024. The overall global and national markets continue to be volatile and carry a high degree of uncertainty, and any changes to our forecast or qualitative factors subject our ACL estimate to a higher risk of fluctuation between periods. Refer to “—Provision for Credit Losses” and Note 5 of the consolidated financial statements for other factors impacting the change in ACL on loans during the six months ended June 30, 2025.
Previous wording
ACL on Off-Balance Sheet Credit Exposures. There were no significant changes in our modeling methodology to determine the ACL on off-balance sheet credit exposures during the first quarter of 2025. The model uses the credit loss factors for each segment calculated within the ACL on loans model described above. The ACL on off-balance sheet credit exposures as of March 31, 2025 and December 31, 2024, was $3.4 million and $2.8 million, respectively. The increase between periods reflects the acquisition of Northway on January 2, 2025.
Current wording
ACL on Off-Balance Sheet Credit Exposures. There were no significant changes in our modeling methodology to determine the ACL on off-balance sheet credit exposures during six months ended June 30, 2025. The model uses the credit loss factors for each segment calculated within the ACL on loans model described above. The ACL on off-balance sheet credit exposures as of June 30, 2025 and December 31, 2024 was $3.7 million and $2.8 million, respectively.
Previous wording
The ACL on off-balance sheet credit exposures was presented within accrued interest and other liabilities on the consolidated statements of condition. Increases (decreases) to the ACL on off-balance sheet credit exposures were presented within (credit) provision for credit losses on the consolidated statements of income.
Current wording
The ACL on off-balance sheet credit exposures was presented within accrued interest and other liabilities on the consolidated statements of condition. Increases (decreases) to the ACL on off-balance sheet credit exposures were presented within provision for credit losses on the consolidated statements of income.
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Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
(1) Reported on tax-equivalent basis calculated using a 21% tax rate, including certain commercial loans.
Current report — wording carried from elsewhere
(2) Non-accrual loans and loans held for sale are included in total average loans.
Current report — wording carried from elsewhere
(3) This is a non-GAAP measure. Please see "Non-GAAP Financial Measures and Reconciliation to GAAP” for additional information.
Current report — wording carried from elsewhere
We may adjust our assumptions to account for differences between expected and actual losses from period to period. A future change of our assumptions likely will alter the level of allowance required and may have a material impact on future results of operations and financial condition. The ACL on loans is reviewed periodically within a calendar quarter to assess trends in CECL ("Current Expected Credit Losses") key assumptions and asset quality, and their effects on the Company's financial condition.