CAMDEN NATIONAL CORP

Previous wording

The discussions set forth below and in the documents we incorporate by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, exceptions, goals, projections, and statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “plan,” “target,” “potential” or “goal” or future or conditional verbs such as “will,” “may,” “might,” “should,” “could” and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult for the Company to predict. The actual results, performance or achievements of the Company may differ materially from what is reflected in such forward-looking statements.

Current wording

The discussions set forth below and in the documents we incorporate by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “plan,” “target,” “potential” or “goal” or future or conditional verbs such as “will,” “may,” “might,” “should,” “could” and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult for the Company to predict. The actual results, performance or achievements of the Company may differ materially from what is reflected in such forward-looking statements.

Previous wording

Statements relating to the Company’s recent acquisition of Northway may also be forward-looking statements. Factors that could cause actual result to differ materially from the forward-looking statements include:

Current wording

Statements relating to the Company’s acquisition of Northway may also be forward-looking statements. Factors that could cause actual result to differ materially from the forward-looking statements include:

Previous wording

In addition to evaluating the Company’s results of operations in accordance with GAAP, management supplements this evaluation with an analysis of certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; net interest income and core net interest margin (both on a fully-taxable equivalent basis); tangible book value per share; core deposits and average core deposits. We utilize these non-GAAP financial measures for purposes of measuring performance against the Company's peer group and other financial institutions, as well as for analyzing its internal performance. The Company also believes these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allows for better performance comparisons to other banks. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions.

Current wording

In addition to evaluating the Company’s results of operations in accordance with GAAP, management supplements this evaluation with an analysis of certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income and adjusted pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; net interest income and core net interest margin (both on a fully-taxable equivalent basis); tangible book value per share; core deposits and average core deposits. We utilize these non-GAAP financial measures for purposes of measuring performance against the Company's peer group and other financial institutions, as well as for analyzing its internal performance. The Company also believes these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allows for better performance comparisons to other banks. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions.

Previous wording

(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 wording

(1) Recognized $3.8 million and $12.4 million of net accretion income on loans from purchase accounting for the three and nine months ended September 30, 2025, respectively.

Previous wording

(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 wording

(2) Recognized $937,000 and $2.6 million of net accretion income on investments from purchase accounting for the three and nine months ended September 30, 2025, respectively.

Previous wording

(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 wording

(3) Recognized $132,000 and $394,000 million of amortization expense on time deposits and borrowings from purchase accounting for the three and nine months ended September 30, 2025, respectively.

Previous 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."

Current 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 September 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 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 wording

Net income for the three and nine months ended September 30, 2025, was $21.2 million and $42.6 million, respectively, an increase of 62% and 11%, compared to the same periods in 2024. Diluted EPS for the three and nine months ended September 30, 2025, was $1.25 and $2.51, respectively, an increase of 39% and a decrease of 4%, compared to the same periods in 2024. The Company's financial results for the three and nine months ended September 30, 2025, 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.

Previous wording

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 wording

The Company’s capital position continues to rebuild following the Northway acquisition earlier this year. At September 30, 2025, the Company’s regulatory capital ratios were well in excess of capital requirements, and its common equity ratio was 9.69% and tangible common equity ratio was 7.09%, compared to 9.15% and 7.64%, respectively, at December 31, 2024.

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 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.

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 September 30, 2025, net interest income was 78% of total revenues, compared to 75% for the same period in 2024. For the nine months ended September 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) 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%.

Current wording

Net Interest Income (Fully-Taxable Equivalent) for the Three Months Ended September 30, 2025 and 2024. Net interest income on a fully-taxable equivalent basis for the quarter ended September 30, 2025 was $51.6 million, an increase of $17.9 million, or 53%, compared to the third quarter of 2024. The increase between periods consisted of an increase in interest income on a fully-taxable equivalent basis of $17.4 million, or 27%, along with the decrease in interest expense of $512,000, or 2%.

Previous 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.

Current wording

•Average interest-earning assets totaled $6.5 billion for the third quarter of 2025, which was an increase of $1.1 billion, or 20%, compared to the third 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 third quarter of 2025, the Company recognized net fair value mark accretion from the purchase accounting associated with the acquisition of Northway of $4.8 million within interest income, which was made up of $3.9 million of fair value mark accretion on loans and $937,000 of fair value mark accretion on investments. Additionally, between periods the Company’s yield on interest-earning assets continued to improve organically, contributing to the growth in net interest income. This was driven by the strategic reinvestment of cash flows from lower yielding interest-earning assets into new loan originations and investments at prevailing market interest rates.

Previous 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.

Current wording

•Average funding liabilities totaled $6.2 billion for the third quarter of 2025, which was an increase of $1.1 billion, or 21%, compared to the third 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 million and borrowings of $45.0 million. Despite the significant increase in average funding liabilities between periods, interest expense for the third quarter of 2025 decreased $512,000 due to the decrease in our average cost of funds of 45 basis points to 1.90% for the third 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 third quarter of 2025 was 4.30%, which was 97 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) 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.

Current wording

Net Interest Margin (Fully-Taxable Equivalent) for the Three Months Ended September 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 third quarter of 2024 to 3.16% for the third 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 $4.6 million to net interest income for the third quarter of 2025, the Company reported non-GAAP, core net interest margin of 2.82%, an increase of 36 basis points over the third quarter of 2024.

Previous wording

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 wording

Net Interest Income (Fully-Taxable Equivalent) for the Nine Months Ended September 30, 2025 and 2024. For the nine months ended September 30, 2025, the Company's net interest income on a fully-taxable equivalent basis was $150.3 million, an increase of $52.8 million, or 54%, compared to the same period in 2024.

Previous wording

•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 wording

•Interest income on a fully-taxable equivalent basis increased $53.1 million, or 28%, between periods primarily driven by interest-earning assets yield expansion of 37 basis points to 4.94% for the nine months ended September 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).

Previous wording

•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 wording

•Interest expense increased $251,000, or less than 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 38 basis points to 1.94% for the nine months ended September 30, 2025. The decrease in our average cost of funds between periods reflects the change in the interest rate environment noted above and the addition of Northway’s low-cost deposit franchise with the acquisition on January 2, 2025.

Previous wording

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 wording

Net Interest Margin (Fully-Taxable Equivalent) for the Nine Months Ended September 30, 2025 and 2024. Our net interest margin on a fully-taxable equivalent basis increased 72 basis points over the nine months ended September 30, 2024 to 3.09% for the nine months ended September 30, 2025. Refer to the discussion above for the drivers of the change between periods. Adjusting for the impact of purchase accounting, which contributed $14.6 million to net interest income for the first nine months of 2025, the Company reported non-GAAP, core net interest margin of 2.73%, an increase of 36 basis points over the nine months ended September 30, 2024.

Previous wording

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 wording

For the nine months ended September 30, 2025, the increase in provision for loan losses of $19.7 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 provision required for the aforementioned syndicated commercial loan that was partially charged-off during the third quarter of 2025.

Previous 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.

Current wording

(3)Credit for HTM debt securities: During the nine months September 30, 2024, the Company sold its Signature Bank corporate bond that it had previously written off and recovered proceeds of $910,000.

Previous wording

(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 wording

(1)The increase for the three and nine months ended September 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.

Previous 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.

Current wording

(2)Brokerage and insurance commissions: The increase for the three and nine months ended September 30, 2025 compared to the same periods in 2024, was driven by an increase in assets under management of $183.1 million, or 20%, to $1.1 billion as of September 30, 2025.

Previous 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.

Current wording

(3)Mortgage banking income, net: The increase for the three and nine months ended September 30, 2025 compared to the same periods in 2024, was driven by the increase in the gain from the sale of loans during both periods. During the three and nine months ended September 30, 2025, the Company sold $80.3 million and $170.3 million, or 62% and 52%, respectively, of its residential mortgage production, compared to $62.4 million and $157.3 million, or 63% and 57%, respectively, for the same periods of 2024.

Previous wording

(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 wording

(1)The increase for the three and nine months ended September 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 third 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.

Previous 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.

Current wording

(2)Merger and acquisition costs: For the three and nine months ended September 30, 2025, the Company incurred costs associated with the Northway acquisition totaling $315,000 and $9.2 million, respectively. Through September 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 any remaining acquisition-related costs will be insignificant.

Previous wording

The acquisition-related costs incurred during the three and six months ended June 30, 2025 include:

Current wording

The acquisition-related costs incurred during the three and nine months ended September 30, 2025 include:

Previous 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.

Current wording

(3)Amortization of core deposit intangible assets: The increase for the three and nine months ended September 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

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.

Current wording

The Company recorded income tax expense of $5.3 million and $7.8 million, respectively, for the three and nine months ended September 30, 2025, compared to $2.8 million and $8.7 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

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 wording

On July 4, 2025, the OBBBA was signed into law and does not have a material impact on the Company’s consolidated financial statements.

Previous 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.

Current wording

Total cash and cash equivalents as of September 30, 2025, were $98.8 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 nine months ended September 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 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.

Current wording

Included within the Company’s cash and cash equivalents’ balances at September 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 $8.7 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 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:

Current wording

As of September 30, 2025, the reported value of the Company's total investments portfolio was $1.4 billion, an increase of $282.3 million, or 25%, since December 31, 2024. The change between periods was driven by the following:

Previous 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.

Current wording

•The Purchase of $166.5 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 $64.8 million.

Current wording

•Pay downs, calls, and maturities of $107.3 million.

Previous 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.

Current wording

•An increase in the fair value of the Company’s AFS debt securities of $33.4 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 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.

Current wording

Our AFS debt securities portfolio, which comprised 63% and 52% of our investment portfolio as of September 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 35% and 45% of our investment portfolio as of September 30, 2025 and December 31, 2024, respectively.

Previous 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.

Current wording

The book value of our debt securities as of September 30, 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 September 30, 2025 and December 31, 2024, the book value of U.S. government and government-sponsored agencies represented approximately 93% and 91%, respectively, of our debt securities portfolio.

Previous wording

We continually monitor and evaluate our investment portfolio to identify and assess risks within our portfolio, including but not limited to, the impact of the current interest rate environment and the related prepayment risk, and the review of credit ratings. The overall mix of debt securities as of June 30, 2025, compared to December 31, 2024, remains consistent and is believed to be well-positioned to provide a stable source of cash flow. As of June 30, 2025 and December 31, 2024, the duration of our debt investment securities portfolio, adjusting for calls when appropriate and consensus prepayment speeds, was 5.3 years and 5.2 years, respectively.

Current wording

We continually monitor and evaluate our investment portfolio to identify and assess risks within our portfolio, including but not limited to, the impact of the current interest rate environment and the related prepayment risk, and the review of credit ratings. The overall mix of debt securities as of September 30, 2025, compared to December 31, 2024, remains consistent and is believed to be well-positioned to provide a stable source of cash flow. As of September 30, 2025 and December 31, 2024, the duration of our debt investment securities portfolio, adjusting for calls when appropriate and consensus prepayment speeds, was 5.1 years and 5.2 years, respectively.

Previous 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.

Current wording

At September 30, 2025 and December 31, 2024, subordinated corporate bonds were 3% of the book value of the total bond portfolio at each date. At September 30, 2025 and December 31, 2024, subordinated corporate bonds with a book value of $26.0 and $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 September 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 September 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 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.

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 September 30, 2025 and December 31, 2024, our investment in FHLBB stock totaled $22.4 million and $17.1 million, respectively, and our investment in FRB stock was $8.7 million and $5.4 million, respectively.