CAMDEN NATIONAL CORP
For the period ended Dec 31, 2025. Filed Mar 6, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 6, 2026
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-K
Period ended 2024-12-31; filed 2025-03-07.
0000750686-25-000044
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-06.
0000750686-26-000010
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe 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 254 previous paragraphs and 275 current paragraphs.
131 unchanged; 90 reworded; 51 added; 32 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 39 previous and 43 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 (51)
Current report
(2) A one-time deferred tax valuation adjustment of $2.4 million resulted from a change in the apportionment of state income taxes due to the Northway acquisition.
Current report
(2) A one-time deferred tax valuation adjustment of $2.4 million resulted from a change in the apportionment of state income taxes due to the Northway acquisition.
Current report
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 report
Core Net Interest Margin (fully-taxable equivalent). The following table provides a reconciliation of net interest margin (fully-taxable equivalent) to core net interest margin (fully-taxable equivalent). Certain non-recurring transactions have been excluded to calculate core net interest margin (fully-taxable equivalent). 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 report
(1) Recognized $17.0 million of net accretion income on loans from purchase accounting for the year ended December 31, 2025.
Current report
(2) Recognized $3.5 million of net accretion income on investments from purchase accounting for the year ended December 31, 2025.
Current report
(3) Recognized $525,000 of amortization expense on time deposits and borrowings from purchase accounting for the year ended December 31, 2025.
Current report
Fair Value of Loans Acquired in Business Combinations. The loans acquired as part of the Northway acquisition were accounted for at fair value on January 2, 2025 (“Acquisition Date”). The fair value for these acquired loans was determined using a discounted cash flow approach that incorporated expected credit and prepayment-adjusted cash flows, discounted at market-based rates. This analysis considered factors such as loan type and collateral, interest rate structure, remaining term, credit quality indicators, and amortization status. Loans with similar risk characteristics were pooled for valuation purposes. Discount rates for loans were developed using a “build-up” approach, which considered the cost of funds, capital charges, servicing costs, liquidity premiums, and risk premiums.
Current report
The discount rate and prepayment speeds were the most significant assumptions within in the acquired loan portfolio valuation. Changes in these inputs would have a material effect on the fair value measurement, in particular:
Current report
•Discount rate: Increases or decreases in the discount rate would result in a significant change in the estimated fair value of the acquired loan portfolio due to the sensitivity of discounted cash flows to market‑based yield assumptions.
Current report
•Prepayment speed: Variations in expected prepayment speeds, whether higher or lower, would result in a meaningful change in the fair value estimate because prepayment behavior directly affects projected cash flows and expected loan duration.
Current report
Additional information regarding these accounting policies is included in Note 1, Significant Accounting Policies, and Note 2, Business Combinations, to the Company’s audited consolidated financial statements in Item 8 of this Form 10-K.
Current report
Strategic Overview. Our long-term strategy is anchored in three clear priorities: Running the Bank, Evolving the Bank, and Growing the Bank. Together, these priorities guide our actions, align our investments, and position the Company to deliver sustainable performance and long-term shareholder value.
Current report
•Running the Bank is about delivering consistent, reliable results by building on our core strengths and disciplined foundation. As we pursue change and growth, maintaining a strong operating framework remains paramount. This includes investing in and strengthening our corporate culture; driving toward top-quartile employee engagement and exceptional customer experiences through our “One Bank” approach; honoring our commitment to the communities we serve; and maintaining balance-sheet strength across interest rate risk, liquidity, asset quality, and capital. This focus provides the stability and resilience necessary to support our strategic ambitions.
Current report
•Evolving the Bank enables us to respond to a dynamic marketplace with agility and innovation. We are advancing our digital agenda across both customer and employee experiences to increase adoption, productivity, and efficiency. At the same time, we are repositioning our retail franchise to meet changing customer needs and expectations. Central to this evolution is the development of a high-touch, team-based operating model that leverages specialized expertise and places the customer at the center of every interaction.
Current report
•Grow the Bank focuses on expanding our customer base and deepening relationships by leveraging technology, scalable capabilities, and local market expertise. We pursue both organic and inorganic growth opportunities across our footprint. Organically, we see significant opportunity to scale our commercial franchise in our Southern Maine and New Hampshire growth markets through targeted hiring and the development of internal talent. Inorganically, we continue to evaluate merger and acquisition opportunities that offer compelling strategic and financial benefits, as demonstrated by our acquisition of Northway Financial, Inc., the holding company of Northway Bank, completed on January 2, 2025.
Current report
2025 Overview. On January 2, 2025, we completed our acquisition of Northway, which significantly increased our presence in New Hampshire by adding 17 branches and over 100 new employees. In mid-March 2025, we completed the full integration of the two banks and began realizing the combined organization’s full financial potential through the execution of synergies across employees, technology, software and vendor contracts. The integration of operations, systems, and teams enabled us to leverage the strengths of both institutions more effectively, resulting in meaningful improvements in scale, operating efficiency, and revenue‑generating capacity. As our post‑merger performance began to reflect the benefits of a larger balance sheet, a broader customer base, and an expanded geographic footprint, we delivered annual net income of $65.2 million and diluted EPS of $3.84 for 2025, compared to $53.0 million and $3.62, respectively, in 2024. On a non-GAAP basis, we reported annual adjusted net income of $74.4 million and diluted EPS of $4.39 for December 31, 2025, an increase of 39% and 20%, respectively, over 2024.
Current report
Throughout 2025, we executed several initiatives to improve our net interest margin. These actions, together with the Federal Reserve’s 75‑basis‑point reduction in the federal funds rate during the second half of the year, contributed to a meaningful increase in our net interest margin, from 3.04% for the first quarter of 2025 to 3.29% for the fourth quarter of 2025. Excluding the impact of purchase accounting accretion income, our non-GAAP, core net interest margin also increased significantly from 2.68% for the first quarter of 2025 to 2.92% for the fourth quarter of 2025. The steady improvement in our net interest margin throughout 2025, resulted in a net interest margin of 3.17% for the year ended December 31, 2025, compared to 2.46% for the year ended December 31, 2024.
Current report
The completion of the Northway acquisition and successful execution of our cost take-out strategies, as well as an improving net interest margin throughout 2025, drove significant improvement in the Company’s profitability metrics compared to 2024. We believe the Company is well-positioned for 2026, highlighted by the strength of its reported fourth quarter financial metrics, which included a return on average assets of 1.28%, a return on average equity of 13.01%, and a non-GAAP return on average tangible equity of 19.06%.
Current report
Completed Northway Acquisition and Integration -Successfully completed the acquisition of Northway on January 2, 2025. Following the integration in mid-March 2025 and the realization of cost synergies across the combined organization, the Company delivered record quarterly net income in both the third and fourth quarters of 2025.
Current report
Improving Profitability – In 2025, total revenues (sum of net interest income and non-interest income) reached $255.8 million, an increase of 45% over 2024, while non-interest expense for 2025 was $154.8 million, an increase of 38% over 2024. The Company’s 2025 performance resulted in strong operating leverage generation and improvement in each of our profitability metrics, which can be seen in the financial highlights table on the following page.
Current report
Customer Experience Strength– We use net promoter score (“NPS”) to continuously measure and improve customer experience across our retail franchise. Our 2025 aggregate consumer NPS of 68 across Maine remained consistent with prior year and underscores strong customer advocacy relative to industry benchmarks.
Current report
Strong Employee Engagement– We measure employee engagement annually through a global, independent third party survey. In 2025, 92% of our employees participated in the confidential survey, reflecting strong engagement across the organization. The Company’s overall engagement score ranked in the 73rd percentile relative to the third-party’s global benchmark, further underscoring the strength of our culture and employee commitment.
Current report
Continued Commitment to our Communities– In 2025, we marked Camden National Bank’s 150th anniversary, reflecting a long-standing commitment to the communities we serve. Across our Maine and New Hampshire markets, we continue to support local communities through lending activities, deposit products designed to meet community needs, direct charitable contributions and active employee volunteerism, reinforcing our role as a trusted financial partner and community steward.
Current report
Interest income on a fully-taxable equivalent basis for 2025 totaled $322.0 million, representing an increase of $71.8 million, or 29%, compared to 2024, primarily driven by interest-earning assets yield expansion of 37 basis points to 4.99% for the year ended December 31, 2025, and an increase in average interest-earning assets of $1.0 billion, or 19% as of December 31, 2025, which was driven by the Northway acquisition on January 2, 2025. As part of the Northway acquisition, the Company acquired total loans of $775.7 million and investments of $230.0 million. For the year ended December 31, 2025, the Company recognized net fair value mark accretion from the purchase accounting of $20.5 million within interest income, which was made up of $17.0 million of fair value mark accretion on loans and $3.5 million 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, due to the continued reinvestment of cash flows from lower yielding interest-earning assets into new loan originations and investments at prevailing market interest rates.
Current report
Interest expense for 2025 increased $294,000, or less than 1%, compared to 2024, despite the increase in average funding liabilities of $1.0 billion, or 20%, which was driven by the Northway acquisition, due to the decrease in our average cost of funds between periods of 38 basis points to 1.90% for the year ended December 31, 2025. The decrease in our average cost of funds between periods reflects the change in the interest rate environment and our ability to lower deposit costs as the Federal Reserve lowered its Federal Funds Rate, and the benefit of adding Northway’s low-cost deposit franchise to the Company’s balance sheet.
Current report
(4) This is a non-GAAP measure. Please see "Non-GAAP Financial Measures and Reconciliation to GAAP” for additional information.
Current report
Provision (Credit) for Credit Losses
Current report
Provision for loan losses. For the year ended December 31, 2025, the Company recorded a provision for loan losses of $22.0 million. The provision primarily reflects the impact of net charge‑offs totaling $16.1 million during the period, driven principally by a $10.7 million partial charge‑off on a syndicated commercial loan participation and a $3.0 million partial charge‑off on a non‑owner‑occupied commercial real estate loan. The recognition of these charge‑offs required the Company to record an incremental $12.7 million in provision for loan loss expense during the year. In addition, in connection with the acquisition of Northway, the Company recorded a $6.3 million provision for loan losses and ACL on loans for the acquired loans that did not meet the criteria to be classified as purchased credit deteriorated (“PCD”) during 2025.
Current report
Net loss on sale of securities represents the net loss recognized upon the sale of investment securities. We did not sell any investment securities during 2025 or 2024.
Current report
Merger and acquisition costs include transaction‑related expenses such as personnel termination costs, consulting and other professional fees, contract termination and system conversion costs, and other direct acquisition‑related charges. For the years ended December 31, 2025 and 2024, the Company incurred $9.3 million and $1.2 million, respectively, in costs associated with the Northway acquisition.
Current report
Amortization of CDI assets represents the periodic amortization of the Company’s CDI assets arising from the Northway acquisition. The CDI assets recorded in connection with the Northway acquisition totaled $48.1 million, and we estimate the useful life of these CDI assets to be ten years. Refer to Notes 2 and 5 of the consolidated financial statements for additional information.
Current report
Income tax expense for the years ended December 31, 2025 and 2024 was $13.5 million and $12.5 million, respectively, and our effective income tax rate was 17.2% for 2025 and 19.0% for 2024. The decrease in the Company's effective income tax rate between years was primarily driven by a one-time $2.4 million decrease in income tax expense associated with the remeasurement of the Company’s deferred tax assets and liabilities upon completion of the Northway acquisition, which increased our tax exposure in Massachusetts and New Hampshire. The remeasurement resulted in an increase to the Company’s deferred tax rate in 2025 to 22.8% from 21.5% in 2024.
Current report
The Company's deferred tax assets were $51.1 million and $40.0 million at December 31, 2025 and 2024, respectively. The increase in deferred tax assets during 2025 was primarily driven by the net deferred tax assets that were created through purchase accounting as a result of the Northway acquisition, and the aforementioned $2.4 million increase associated with the remeasurement of Company’s deferred tax assets and liabilities.
Current report
Total cash and cash equivalents were $97.5 million as of December 31, 2025, compared to $215.0 million at December 31, 2024. As part of the Northway acquisition, the Company acquired $48.3 million of cash, which was utilized to prepay all $45.0 million of Federal Home Loan Bank of Boston (“FHLBB”) borrowings assumed from Northway, largely offsetting the cash obtained through the acquisition. The Company continues to actively manage its cash balances. Refer to Note 2 of the consolidated financial statements for additional information on the assets and liabilities acquired from Northway.
Current report
At December 31, 2025 and 2024, the Company's investments portfolio totaled $1.4 billion and $1.1 billion, respectively, representing an increase of $308.7 million, or 27%, during 2025. The increase was driven by the addition of $230.0 million of investments, net of purchase accounting adjustments, from the Northway acquisition on January 2, 2025, and included debt securities totaling $227.4 million that were designated as AFS and $2.5 million of FHLBB and other corresponding banking relationship common stock. The other drivers for the net change in total investments during 2025 were:
Current report
•The sale of $56.4 million of acquired Northway debt securities shortly after the acquisition date to restructure the
Current report
combined investment portfolio. These debt securities were sold at fair value, and, thus, no gain or loss was recognized
Current report
upon sale;
Current report
•The purchase of $236.7 million of debt securities that we designated as AFS, and the purchase of $5.0 million of
Showing the first 40 of 51 passages. Open the source sections for the rest.
Removed paragraphs (32)
Previous report
INTRODUCTORY NOTE
Previous report
On January 2, 2025, the Company completed its previously announced stock-for stock acquisition of Northway. The total consideration paid by the Company consisted of approximately $96.5 million (approximately 2.3 million shares of the Company’s common stock) based on the closing price of the Company’s common stock of $42.25, as reported by Nasdaq on January 2, 2025. Results of operations and cash flows for all periods presented in this Annual Report on Form 10-K reflect only the results of operations and cash flows of the Company and do not include the results of operations or cash flows of Northway. In addition, neither the shares of Company common stock issued as consideration in the acquisition nor any purchase accounting adjustment that the Company will make in connection with the acquisition are reflected in the Company’s financial condition for any period presented in this Annual Report on Form 10-K. The Company will account for the Northway acquisition as a business combination in results of operations for the first quarter of 2025. For additional information regarding the Company’s acquisition of Northway, refer to Note 23 of the consolidated financial statements in Item 8 of this Annual Report on Form 10-K.
Previous report
(1) Assumed a 21% income tax rate for eligible costs.
Previous report
(1) Assumed a 21% income tax rate.
Previous report
2024 Overview. Throughout 2024, we continued our work and efforts from 2023 with a goal of continuing to improve and optimize our net interest margin and maintain our strong asset quality. Over the course of 2024, we took various actions to improve our net interest margin. Those actions, combined with the Federal Reserve reducing the Federal Funds Rate by 100 basis points during the second half of 2024, resulted in an improvement to our net interest margin from a reported 2.30% for the first quarter of 2024 to 2.57% for the fourth quarter of 2024. Our improvement in net interest margin consistently each calendar quarter throughout 2024, along with continued strong asset quality and disciplined management of our operating expenses, translated into strong reported earnings for 2024 of $53.0 million, or $3.62 per a diluted share, which was 22% higher than reported net income for 2023. Profitability continues to improve, highlighted by a return on average assets of 1.01%, return on average equity of 10.99% and a return on tangible shareholders’ equity (non-GAAP) of 13.50% for the fourth quarter of 2024.
Previous report
On September 10, 2024, we announced our planned acquisition of Northway, the bank holding company of Northway Bank, which we later closed on January 2, 2025. The acquisition of Northway presented a great opportunity for two historic franchises in Northern New England to combine and create a premier banking and financial services franchise across Maine and New Hampshire through 73 total branches. Through the combination, the Company’s total assets are approximately $7.0 billion as of January 2, 2025.
Previous report
We enter 2025 with strong financial momentum and a balance sheet positioned well for the current interest rate environment.
Previous report
Operating Results. For 2024, the Company reported net income of $53.0 million and diluted EPS of $3.62, each an increase of 22% compared to 2023. During 2023, we took certain actions to improve the Company’s future earnings capacity and profitability by selling certain investments and redeploying the proceeds into higher yielding assets. In doing so, the Company recorded pre-tax investment losses totaling $10.3 million in 2023. Also, during 2023, we wrote-off a $1.8 million Signature Bank corporate bond in full due to Signature Bank’s failure. During 2024, we sold our position in this corporate bond and recovered $910,000, before taxes. Adjusting for these items, along with $1.2 million, before taxes, of merger-related costs associated with the acquisition of Northway Financial during 2024, we reported core net income of $53.4 million and diluted EPS of $3.65, each an increase of 1% over 2023.
Previous report
Improving Profitability and Return Profile – Improved net interest margin and disciplined management of operating expenses, the Company resulted in positive operating leverage of 4% for 2024, which drove improved financial profitability and shareholder returns, headlined by a return on average assets of 0.92%, return on average equity of 10.36% and return on average tangible equity (non-GAAP) of 12.83%, compared to 0.76%, 9.30% and 11.83% for 2023, respectively.
Previous report
•The Company’s average cost of funds for the year ended December 31, 2024 was 2.28%, compared to 1.83% for the year ended December 31, 2023, and was the driver for the increase in interest expense year-over-year. The increase in our average funding costs year-over-year reflects the higher short-term interest rate environment, highlighted by an average Federal Fund Effective Interest Rate of 5.14% for the year ended December 31, 2024, compared to 5.02% for the year ended December 31, 2023. Beginning in September 2024, the Federal Reserve Bank began lowering the Federal Funds Interest Rate. From September 2024 through December 31, 2024, the Federal Funds Rate was decreased by 1.00%, and the Federal Funds Target rate stood at 4.25% to 4.50% at December 31, 2024.
Previous report
•The increase in interest income on a fully-taxable equivalent basis was also primarily driven by the higher interest rate environment between years. For the year ended December 31, 2024, the Company’s yield on average interest-earning assets was 4.62%, compared to 4.19% for the year ended December 31, 2023. The average 10-year U.S. Treasury Rate for 2024 was 4.58%, compared to 3.96% for 2023.
Previous report
(Credit) Provision for Credit Losses
Previous report
Provision for loan losses. For the year ended December 31, 2024, a provision for loan losses of $53,000 was recorded and was primarily driven by improvement within our macroeconomic forecast for 2024 and lower loan growth of $17.2 million during 2024, compared to $87.7 million of loan growth for 2023. Asset quality continued be strong through 2024, as highlighted by non-accruals of 0.12% of total loans and net charge-offs of 0.03% of average loans as of and for the year ended December 31, 2024, compared to 0.13% and 0.03%, respectively, as of and for the year ended December 31, 2023. The Company’s asset quality remained strong at December 31, 2024 and 2023. Refer to “—Financial Condition—Asset Quality” for further details.
Previous report
Net loss on sale of securities represents the realized (loss) gain upon sale of our debt investments. In 2023, we executed investment sales that resulted in pre-tax losses of $10.3 million. The trades were completed to reposition a portion of our balance sheet. We reinvested $126.8 million of cash proceeds from the investment sales and expect these trades will optimize our balance sheet and improve future earnings and profitability. We did not execute on any similar investment trades during 2024. Refer to “—Financial Condition—Investments,” and Note 3 of the consolidated financial statements for further discussion.
Previous report
Merger and acquisition costs are the acquisition costs, including legal, investment banker, consulting and other related costs, incurred through December 31, 2024 associated with our acquisition of Northway Financial on January 2, 2025. Of the merger and acquisition costs incurred through December 31, 2024, all but $56,000 of the costs were estimated to be non-deductible for federal income tax purposes. We anticipate incurring additional merger-related costs during 2025, with the majority of costs expected to be incurred during the first half of 2025.
Previous report
Amortization of core deposit intangible assets represents the amortization expense on core deposit intangible assets. Refer to “—Financial Condition—Goodwill and Core Deposit Intangible Assets,” and Note 4 of the consolidated financial statements for further details. We anticipate the creation of additional core deposit intangible assets associated with the acquisition of Northway Financial on January 2, 2025. These core deposit intangible assets are definite-lived intangible assets and will be amortized over their estimated useful life.
Previous report
Income tax expense for the years ended December 31, 2024 and 2023 was $12.5 million and $10.5 million, respectively, and resulted in an effective income tax rate of 19.0% for 2024 and 19.4% for 2023, respectively. The Company's effective income tax rate for the year ended December 31, 2024 of 19.0% was lower than our marginal tax rate of 22.8%, which includes our 21.0% federal income tax rate and a 1.8% blended state income tax rate, net of federal tax benefit. The decrease in the effective tax rate for the year ended December 31, 2024 compared to 2023, was primarily due to an increase in tax credit investments, partially offset by nondeductible merger and acquisition costs and an increase in income before income tax expense of $11.6 million, or 21.6%, compared to 2023,
Previous report
Total cash and cash equivalents at December 31, 2024 were $215.0 million, compared to $99.8 million at December 31, 2023. The elevated cash balances at December 31, 2024 were temporary due to anticipated cash usage in the first quarter of 2025 associated with normal seasonal deposit outflows, an expected deposit outflow of $61.8 million by one large deposit customer that temporarily deposited funds with the Bank in fourth quarter of 2024, and the payoff of $45.0 million of Northway’s FHLBB advances to optimize our balance sheet upon the Company’s completion of the acquisition of Northway on January 2, 2025.
Previous report
At December 31, 2024 and 2023, the Company's investments portfolio totaled $1.1 billion and $1.2 billion, respectively, representing a decrease of $51.5 million, or 4%, for the year ended December 31, 2024. Given the interest rate environment, our primary strategy throughout 2024 was to redeploy normal investment cash flows from pay downs, calls and maturities to fund loan growth and optimize funding costs. The primary components for the net change in total investments for the year ended 2024 were:
Previous report
•Purchases of $60.4 million of debt securities during 2024;
Previous report
(2) There is no scheduled maturity date.
Previous report
On January 2, 2025, the Company completed its previously announced acquisition of Northway and has not yet completed the purchase accounting due to the timing of the Merger, and it continues to evaluate the estimated fair values of the assets acquired and the liabilities assumed. Accordingly, the fair value of the assets and liabilities acquired, including goodwill and other intangible assets, is not yet available. Refer to Note 23 of the consolidated financial statements.
Previous report
The deposit landscape was highly competitive across our markets throughout 2024 as depositors looked to deploy excess liquidity into higher yielding, interest-bearing deposit accounts prior to short-term interest rate cuts by the Federal Reserve. We continue to manage our deposits closely with a focus on maintaining and enhancing existing depositor relationships and developing new ones, while balancing the Company's overall funding cost and liquidity position.
Previous report
The sharp increase in short-term interest rates during 2022 and 2023 resulted in our customers, and more broadly across the banking industry, moving excess deposits from lower interest-earning accounts, including checking and savings accounts, to higher yielding accounts, including money market and CD. Throughout 2023 and 2024, our CD product offerings remained relatively short in term to provide the opportunity for CDs to reprice faster and manage our interest rate risk position to falling interest rates. The weighted-average life to maturity of our CD portfolio at December 31, 2024 was 6 months.
Previous report
Other factors impacting deposits during 2024 included:
Previous report
•The introduction of a high-yield savings product during the first half of 2024 in an effort to raise cost effective deposits, drive new customer acquisition and provide an alternative higher-yielding deposit product for customers looking for greater liquidity than CDs while enabling us to be better positioned for expected lower short-term interest rates. Through this new product, we drove savings deposit growth of 23%in 2024.
Previous report
•Given the strength of our overall liquidity position, we took certain actions that included pricing down certain non-relationship, higher cost municipal and institutional deposits with a goal of improving our net interest margin that resulted in approximately $150.0 million of deposit outflows during 2024. Adjusting for these intentional deposit outflows, deposits during 2024 grew 4%.
Previous report
We will supplement the Company’s funding using brokered deposits to manage overall funding costs, liquidity and our interest rate risk position. The Company’s brokered CDs of $74.8 million matured in February 2025.
Previous report
The balance of CDs that exceeded the FDIC deposit insurance limit of $250,000 was $109.2 million, or 21% of CD balances, as of December 31, 2024, and $167.2 million, or 27% of CD balances, as of December 31, 2023. The total uninsured portion of these CDs was $40.2million, or 8% and $93.7 million or 15% as of December 31, 2024 and 2023, respectively.
Previous report
At December 31, 2024, short-term borrowings were $500.6 million, representing an increase of $15.0 million, or 3%, since December 31, 2023. In 2024, we prepaid BTFP borrowings of $135.0 million held at December 31, 2023, and replaced the debt with $150.0 million of FHLBB advances to extend and diversify the term of our borrowings. To reduce borrowing costs, we entered into two tranches of interest swaps on these FHLBB advances.
Previous report
Junior Subordinated Debentures. In connection with the formation of CCTA and UBCT, and the issuance and sale of trust preferred securities to the public, we received and had outstanding at December 31, 2024 and 2023, junior subordinated debentures totaling $44.3 million.
Previous report
For the year ended December 31, 2024, the Company repurchased 50,000 shares of its common stock at a weighted-average price of $32.19 per share.
Reworded paragraphs (90)
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 core net income; core diluted earnings per share; core return on average assets; core return on average equity; pre-tax, pre-provision income and core pre-tax, pre-provision; income; the efficiency ratio; return on average tangible equity and core return on average tangible equity; tangible book value per share and tangible common equity ratio; net interest income (fully-taxable equivalent); and core deposits and average core deposits. We utilize these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company’s operating performance and trends and allow 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; the efficiency ratio; return on average tangible equity and adjusted return on average tangible equity; tangible book value per share and tangible common equity ratio; net interest income (fully-taxable equivalent); core net interest margin (fully taxable equivalent); and core deposits and average core deposits. We utilize these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company’s operating performance and trends and allow 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
Core Net Income; Core Diluted Earnings per Share; Core Return on Average Assets; and Core Return on Average Equity. Core net income, core diluted earnings per share, core return on average assets and core return on average equity are each supplemental measures that exclude certain transactions as outlined and calculated in the table below. Each item reconciles to reported net income, diluted earnings per share, return on average assets and return on average equity. The Company believes these core financial metrics assist users of its financial statements with their financial analysis period-over-period as they are core for certain non-recurring items.
Current wording
Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity. Adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on average equity are each supplemental measures that exclude certain transactions as outlined and calculated in the table below. Each item reconciles to reported net income, diluted earnings per share, return on average assets and return on average equity. The Company believes these adjusted financial metrics assist users of its financial statements with their financial analysis period-over-period as they are adjusted for certain non-recurring items.
Previous wording
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 adjustment for (credit) provision for credit losses and adjustment for income tax expense. This supplemental measure became a widely used by financial institutions as a measure of financial performance for comparability across financial institutions.
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 adjustment for provision (credit) for credit losses and adjustment for income tax expense. This supplemental measure became widely used by financial institutions as a measure of financial performance for comparability across financial institutions.
Previous wording
Return on Average Tangible Equity and Core Return on Average Tangible Equity. Return on average tangible equity is the ratio of (i) net income, adjusted for tax effected amortization of core deposit intangible assets and other adjustments, as necessary, to (ii) average shareholders' equity, adjusted for average goodwill and core deposit intangible assets. This adjusted financial ratio reflects a shareholders' return on tangible capital deployed in our business and is a common performance measure within the financial services industry. Core return on average tangible equity is calculated the same as return on average tangible equity but uses core net income which excludes certain transactions as shown in the table above. The Company believes this adjusted metric assists users of its financial statements with their period-over-period financial analysis as it is adjusted for certain non-recurring items.
Current wording
Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity. Return on average tangible equity is the ratio of (i) net income, adjusted for tax effected amortization of CDI assets and other adjustments, as necessary, to (ii) average shareholders' equity, adjusted for average goodwill and CDI assets. This adjusted financial ratio reflects a shareholders' return on tangible capital deployed in our business and is a common performance measure within the financial services industry.
Previous wording
Tangible Book Value per Share and Tangible Common Equity Ratio. Tangible book value per share is the ratio of (i) shareholders’ equity less goodwill, and core deposit intangible assets to (ii) total common shares outstanding at period end. Tangible book value per share is a common measure within our industry when assessing the value of a company as it removes goodwill and other intangible assets generated within purchase accounting upon a business combination.
Current wording
Tangible Book Value per Share and Tangible Common Equity Ratio. Tangible book value per share is the ratio of (i) shareholders’ equity less goodwill, and CDI assets to (ii) total common shares outstanding at period end. Tangible book value per share is a common measure within our industry when assessing the value of a company as it removes goodwill and other intangible assets generated within purchase accounting upon a business combination.
Previous wording
Tangible common equity is the ratio of (i) shareholders’ equity less goodwill and core deposit intangible assets to (ii) total assets less goodwill and core deposit intangible assets. This ratio is a measure used within our industry to assess whether or not a company is highly leveraged.
Current wording
Tangible common equity is the ratio of (i) shareholders’ equity less goodwill and CDI assets to (ii) total assets less goodwill and CDI assets. This ratio is a measure used within our industry to assess whether or not a company is highly leveraged.
Previous wording
Critical accounting estimates are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. In preparing the Company’s consolidated financial statements, management is required to make significant estimates and assumptions that affect assets, liabilities, revenues, and expenses reported. Actual results could materially differ from our current estimates, as a result of changing conditions and future events. Estimates particularly critical and susceptible to significant near-term change, include (i) the ACL on loans and (ii) accounting for acquisitions and the subsequent review of goodwill and intangible assets generated in an acquisition for impairment.
Current wording
Critical accounting estimates are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. In preparing the Company’s consolidated financial statements, management is required to make significant estimates and assumptions that affect assets, liabilities, revenues, and expenses reported. Actual results could materially differ from our current estimates, as a result of changing conditions and future events. Estimates particularly critical and susceptible to significant near-term change, include (i) the ACL on loans, (ii) fair value of loans acquired in business combinations and (iii) goodwill.
Previous wording
•Macroeconomic factors (loss drivers): Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period. As macroeconomic factor conditions worsen, the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans. We monitor and assess Maine unemployment, changes in Maine GDP, changes in National GDP, and changes in Maine's Housing Price Index at least annually to determine if these macroeconomic factors continue to be the most predictive indicator of losses within our loan portfolio. Macroeconomic factors used in the calculation of the ACL on loans may change from time to time and in times of greater uncertainty, we may consider a range of possible forecasts and evaluate the probability of each scenario. We assessed our loss factors again in the fourth quarter of 2024 and there were no changes made to the ACL on loans calculation for reporting as of December 31, 2024.
Current wording
•Macroeconomic factors (loss drivers): Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period. As macroeconomic factor conditions worsen, the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans. To identify the most appropriate loss drivers for each portfolio segment, we evaluate a broad set of economic indicators and perform correlation and back‑testing analyses to determine which variables demonstrate the strongest and most stable relationship to historical loss experience. We monitor and assess Maine unemployment, changes in National GDP, changes in National Retail Sales, and changes in Maine's Housing Price Index at least annually to determine if these macroeconomic factors continue to be the most predictive indicator of losses within our loan portfolio. Macroeconomic factors used in the calculation of the ACL on loans may change from time to time and in times of greater uncertainty, we may consider a range of possible forecasts and evaluate the probability of each scenario. We reassessed our loss factors in the first quarter of 2025 and removed change in Maine GDP and added change in National Retail Sales to be used within the discounted cash flow model.
Previous wording
•Qualitative factors: Companies are required to consider various qualitative factors that may impact expected credit losses. We continue to consider qualitative factors in determining and arriving at our ACL on loans each reporting period. In 2024 the Company increased the qualitative factors used to address the increased risk for all loans that were rated as criticized or classified.
Current wording
•Qualitative factors: Companies are required to consider various qualitative factors that may impact expected credit losses. We continue to consider qualitative factors in determining and arriving at our ACL on loans each reporting period. In 2025, we provided for an additional qualitative factor for the loans acquired in the Northway acquisition.
Previous wording
As of December 31, 2024 and 2023, the recorded ACL on loans was $35.7 and $36.9 million, respectively, and represented our best estimate of expected credit losses within our loan portfolio as of each date. However, we may adjust our assumptions to account for differences between expected and actual losses each period. A future change of our assumptions will likely alter the level of allowance required and may have a material impact on future results of operations and financial condition. The ACL is reviewed periodically within a calendar quarter to assess trends in the aforementioned key assumptions, as well as asset quality within our loan portfolio, and we consider the impact of these trends on the ACL and the Company's financial condition, if any. The ACL on loans is reviewed and approved on a quarterly basis by the Company's Audit Committee, and later reviewed and ratified by the Bank's Board of Directors.
Current wording
As of December 31, 2025 and 2024, the recorded ACL on loans was $45.3 and $35.7 million, respectively, and represented our best estimate of expected credit losses within our loan portfolio as of each date. However, we may adjust our assumptions to account for differences between expected and actual losses each period. A future change of our assumptions will likely alter the level of allowance required and may have a material impact on future results of operations and financial condition. The ACL is reviewed periodically within a calendar quarter to assess trends in the aforementioned key assumptions, as well as asset quality within our loan portfolio, and we consider the impact of these trends on the ACL and the Company's financial condition, if any. The ACL on loans is reviewed and approved on a quarterly basis by the Company's Audit Committee, and later reviewed and ratified by the Bank's Board of Directors.
Previous wording
Purchase Price Allocation and Impairment of Goodwill and Identifiable Intangible Assets. We record all acquired assets and liabilities at fair value, which is an estimate determined by the use of internal valuation techniques. We also may engage external valuation services to assist with the valuation of material assets and liabilities acquired, including, but not limited to, loans, core deposit intangibles and/or other intangible assets, real estate and time deposits. As part of purchase accounting, we typically acquire goodwill and other intangible assets as part of the purchase price. These assets are subject to ongoing periodic impairment tests under differing accounting models. We did not acquire any other company or assets during 2024 or 2023, however, refer to Note 23 of the consolidated financial statements for subsequent events.
Current wording
Goodwill. We record all acquired assets and liabilities at fair value, which is an estimate determined by the use of internal and external valuation techniques. As part of purchase accounting, we typically acquire goodwill as part of the purchase price, which is subject to ongoing periodic impairment tests.
Previous wording
Financial Highlights. Our financial highlights for 2024 include:
Current wording
2025 Highlights. Our highlights for 2025 include:
Previous wording
Strong Asset Quality – Key credit quality metrics in both commercial and consumer portfolios remained resilient throughout 2024, headlined by non-performing assets of 0.11% of total assets and past due loans of 0.05% of total loans at December 31, 2024.
Current wording
Strong Asset Quality – Key credit quality metrics in both commercial and consumer portfolios remained resilient throughout 2025, headlined by non-performing assets of 0.10% of total assets and past due loans of 0.16% of total loans at December 31, 2025. Net charge-offs increased to 0.31% to average loans for 2025, compared to 0.03% for 2024, driven by two charge-offs in our commercial portfolio. The Company considers the two charge-offs in 2025 to be isolated incidents and does not believe they represent a systematic trend within the commercial portfolio.
Previous wording
Net interest income is the interest earned on our lending activities, investment securities and other interest-earning assets, less the interest paid on interest-bearing deposits and borrowings (i.e. our primary business activities). Net interest income, which is our largest source of revenue, accounted for 75%, 81% and 78% of total revenues for the years ended 2024, 2023 and 2022, respectively. 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 our lending activities, investment securities and other interest-earning assets, less the interest paid on interest-bearing deposits and borrowings (i.e. our primary business activities). Net interest income, which is our largest source of revenue, accounted for 79%, 75% and 81% of total revenues for the years ended 2025, 2024 and 2023, respectively. 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. Net interest income on a fully-taxable equivalent basis for the year ended December 31, 2024 was $133.1 million, a slight decrease of $75,000 from 2023. The decrease consisted of a $23.1 million, or 25%, increase in interest expense, which was partially offset by an increase in interest income on a fully-taxable equivalent basis of $23.3 million, or 10%, between periods.
Current wording
Net Interest Income. Net interest income on a fully-taxable equivalent basis for the year ended December 31, 2025 was $204.6 million, an increase of 54% from 2024.
Previous wording
Net Interest Margin. 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 for each of the years ended December 31, 2024 and 2023 was 2.46%.
Current wording
Net Interest Margin. 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 was 3.17% for the year ended December 31, 2025, compared to 2.46% for 2024. On a non-GAAP basis, adjusted for fair value market accretion income recognized from purchase accounting, our core net interest margin was 2.82% for the year ended December 31, 2025, compared to 2.46% for 2024.
Previous wording
The (credit) provision for credit losses was made up of the following components for the periods indicated:
Current wording
The provision (credit) for credit losses was made up of the following components for the periods indicated:
Previous wording
Provision for credit losses on off-balance credit exposures. At December 31, 2024, the ACL on off-balance sheet credit exposures was $2.8 million, as compared to $2.4 million as of December 31, 2023. The increase was driven by the increase in unfunded credit lines of $37.0 million and the increase in the residential and commercial pipelines of $19.4 million between periods.
Current wording
Provision for credit losses on off-balance credit exposures. At December 31, 2025, the ACL on off-balance sheet credit exposures was $3.1 million, as compared to $2.8 million as of December 31, 2024. The Company recorded a provision for credit losses on off-balance sheet credit exposures of $258,000. The 2025 provision was driven by the increase in unfunded credit lines of $43.2 million and the increase in the residential and commercial pipelines of $47.7 million between periods, primarily due to the acquisition of Northway in 2025.
Previous wording
Provision for HTM debt securities: In the first quarter of 2023, the Company fully wrote-off a $1.8 million Signature Bank corporate bond due to Signature Bank’s failure. In the first quarter of 2024, the Company sold its Signature Bank corporate bond and recovered proceeds of $910,000.There was no additional provision expense recorded for the years ended December 31, 2024 and 2023, respectively.
Current wording
Provision for HTM debt securities: For the year ended December 31, 2025 the Company did not record any provision on HTM debt securities. In the first quarter of 2024, the Company sold a corporate bond issued by Signature Bank that the Company wrote off in 2023 and recovered proceeds of $910,000.
Previous wording
Debit card income represents the interchange fees earned from debit card transactions of our business and consumer checking account customers, and the annual incentive bonus received from our network provider.
Current wording
Debit card income represents the interchange fees earned from debit card transactions of our business and consumer checking account customers, and the annual incentive bonus received from our network provider. The increase in 2025, compared to 2024, was primarily driven by the Northway acquisition, and the resulting addition of approximately 28,000 new debit card customers.
Previous wording
Service charges on deposit accounts represents the fees earned from providing various services to deposit customers, including overdraft, normal fees for servicing deposit accounts, and cash management fees for business customers. The increase in 2024 compared to 2023 was primarily driven by: (1) an increase in cash management fees of $399,000 as commercial deposit customers opted to pay services fees and waive any service fee credit as short-term interest rates increased, and (2) overdraft fee income increased $255,000 to $5.7 million for the year ended 2024.
Current wording
Service charges on deposit accounts represents the fees earned from providing various services to deposit customers, including overdraft, normal fees for servicing deposit accounts, and cash management fees for business customers. The increase in 2025, compared to 2024, was primarily driven by the Northway acquisition, and the resulting addition of approximately 50,000 customer accounts.
Previous wording
Income from fiduciary services represents the fees earned for investment advisory and trust services provided by Camden National Wealth Management. The fees earned are primarily a percentage of our clients' assets under management. Assets under management increased 10% during 2024 to $1.2 billion as of December 31, 2024.
Current wording
Income from fiduciary services represents the fees earned for investment advisory and trust services provided by Camden National Wealth Management. The fees earned are primarily a percentage of our clients' assets under management. Assets under management increased 9% during 2025 to $1.3 billion as of December 31, 2025.
Previous wording
Brokerage and insurance commissions represent the fees earned for brokerage services, investment advisory and insurance services provided by the Bank, doing business as Camden Financial Consultants. Assets under administration grew 15% during 2024 to $913.3 million as of December 31, 2024.
Current wording
Brokerage and insurance commissions represent the fees earned for brokerage services, investment advisory and insurance services provided by the Bank, doing business as Camden Financial Consultants. Assets under administration grew 22% during 2025 to $1.1 billion as of December 31, 2025, driven by overall market performance and the addition of a new team member.
Previous wording
The increase in mortgage banking income, net for the year ended 2024 compared to 2023, was driven by the increase in net gains recognized on residential mortgage loan sales. In 2024, we sold 56% of our residential mortgage production, compared to 48% in 2023.
Current wording
The increase in mortgage banking income, net for the year ended December 31, 2025 compared to 2024, was driven by the increase in net gains recognized on residential mortgage loan sales during the period. For the year ended December 31, 2025, we sold $242.4 million of our originated residential mortgages, compared to $221.9 million sold during the same period in 2024.
Previous wording
Bank-owned life insurance represents the change in cash surrender value of the Company's various BOLI policies in place for certain current and former officers of the Company and Bank. The change in cash surrender value reflects the performance of the underlying investments of the policies.
Current wording
Bank-owned life insurance represents the change in cash surrender value of the Company's various BOLI policies in place for certain current and former officers of the Company and Bank. The change in cash surrender value reflects the performance of the underlying investments of the policies. The increase in 2025, compared to 2024, was driven by market performance of the underlying investments. BOLI policies for 2025 included the addition of one policy as part of the Northway acquisition. The underlying investments on the acquired policy are tied to the equity markets and are more susceptible to market volatility than policies with more conservative underlying investments.
Previous wording
Salaries and employee benefits includes employee wages, commissions, incentives, equity compensation, employer-related taxes, insurance benefits, and other certain employee-related costs, net of direct employee-related costs incurred for loan originations. The increase for the year ended December 31, 2024 compared to 2023 was primarily driven by an increase in performance-based incentives of $3.5 million between periods. The operating environment in 2023 included the Federal Reserve increasing the Federal Funds Interest Rate by 1.00% to a target range of 5.25% to 5.50% at December 31, 2023, as well as the well-publicized failure of three banks in the U.S., one of which resulted in the Company writing-off a $1.8 million Signature Bank bond during 2023 (refer to Note 3 of the consolidated financial statement for further details). In comparison, the Federal Reserve lowered the Federal Funds Interest rate by 1.00% during the second half of 2024 to a target range of 4.25% to 4.50% at December 31, 2024.
Current wording
Salaries and employee benefits includes employee wages, commissions, incentives, equity compensation, employer-related taxes, insurance benefits, and certain other employee-related costs, net of direct employee-related costs incurred for loan originations. The increase in salaries and employee benefits expense for 2025 compared to 2024 was driven by the Northway acquisition, which added approximately 100 new employees, and an increase in performance incentive accruals of $1.7 million between periods due to Company financial performance.
Previous wording
Furniture, equipment and data processing includes depreciation expense of capitalized furniture, equipment and data-related costs, and ongoing system and other data processing costs, including outsourced solutions. The increase for the year ended December 31, 2024 compared to 2023 was driven by the Company’s continued investments in customer-facing technology platforms, which during 2024 included investment in an enhanced wealth management platform and continued investments in our online banking platform and mobile app, internal systems and production platforms to drive increased productivity and efficiencies, and updates to various information security and resiliency-related systems and enhancements.
Current wording
Furniture, equipment and data processing includes depreciation expense of capitalized furniture, equipment and data-related costs, and ongoing system and other data processing costs, including outsourced solutions. The increase in furniture, equipment and data processing expense for 2025 compared to 2024 was due to the Northway acquisition, and our continued investment in customer‑facing digital technology platforms during 2025. These investments included enhancements to our digital suite of products offered to customers and upgrades to information security and resiliency systems.
Previous wording
Net occupancy costs include building and property costs associated with the operation of our branches, loan production offices and service centers, including, but not limited to, rent, depreciation, maintenance and related taxes, net of rental income earned from the lease of office space.
Current wording
Net occupancy costs include building and property costs associated with the operation of our branches, loan production offices and service centers, including, but not limited to, rent, depreciation, maintenance and related taxes, net of rental income earned from the lease of office space. The increase in net occupancy costs for 2025 compared to 2024 was primarily driven by the Northway acquisition. At December 31, 2025, the Company had 72 branches, compared to 56 as of December 31, 2024.
Previous wording
The following table summarizes Merger-related costs incurred through December 31, 2024:
Current wording
The following table summarizes Merger-related costs incurred for the year ended December 31, 2025 and 2024:
Previous wording
Debit card expense is the cost incurred for the generation of debit card income, including third party switch network provider fees and related data transmission costs, and plastic card costs for the generation of debit cards for checking account customers. The increase for the year ended December 31, 2024 compared to 2023 was driven by rising vendor costs, including fraud detection and prevention costs. Many of the costs associated with debit card expense are fixed per unit regardless of the activity that generates income, and, thus, an increase or decrease in debit card income may not necessarily directly correlate with the change in debit card expense year-over-year.
Current wording
Debit card expense is the cost incurred for the generation of debit card income, including third party switch network provider fees and related data transmission costs, and plastic card costs for the generation of debit cards for checking account customers. The increase in debit card expense for 2025 compared to 2024 was primarily driven by the Northway acquisition and the resulting addition of approximately 28,000 new debit card customers.
Previous wording
Consulting and professional fees include third party consulting services and other professional fees, such as audit and tax services, legal services, and Company and Bank director fees. During 2023, we incurred legal, consulting and director fees associated with the succession and transition of the Company and Bank’s President and CEO, which was the driver of elevated consulting and professional costs for 2023 in comparison to 2024.
Current wording
Consulting and professional fees include third-party consulting services and other professional fees, such as audit and tax services, legal services, and Company and Bank director fees. The increase in consulting and professional fees for 2025 compared to 2024 resulted from the increase in director fees for, and increases due to increases from the Northway acquisition.
Previous wording
Regulatory assessments are the costs incurred and paid to various regulatory agencies, including the FDIC and OCC. Regulatory assessment fees are based on a number of factors, including but not limited to, asset growth, regulator risk assessment and positive or negative trends specific to the financial institution.
Current wording
Regulatory assessments are the costs incurred and paid to various regulatory agencies, including the FDIC and OCC. Regulatory assessment fees are based on a number of factors, including but not limited to, asset growth, regulator risk assessment and positive or negative trends specific to the financial institution. The increase in regulatory assessment fees for 2025 compared to 2024 was driven by the Northway acquisition and increase in the Company’s total assets.
Previous wording
OREO and collection costs, net include the costs associated with OREO, collection and foreclosure efforts for the Company's loans. Should asset quality metrics deteriorate in 2025, the costs associated with OREO, collection and foreclosure efforts likely would increase.
Current wording
OREO and collection costs, net include the costs associated with OREO, collection and foreclosure efforts for the Company's loans.
Previous wording
Other expenses include employee-related costs, such as certain SERP and other postretirement benefits expenses; hiring, training, education, meeting and business travel costs; donations and marketing costs; postage, freight and courier costs; and other expenses. The decrease for the year ended December 31, 2024, compared to the same period in 2023, was driven by external recruiting costs associated with the CEO succession and transition that was effective on January 1, 2024.
Current wording
Other expenses include employee-related costs, such as certain SERP and other postretirement benefits expenses; hiring, training, education, meeting and business travel costs; donations and marketing costs; postage, freight and courier costs; and other expenses. The increase in other expenses for 2025 compared to 2024 was primarily attributable to the Northway acquisition and an increase in marketing costs as we support new markets in New Hampshire, costs associated with a former Northway employee’s supplemental retirement plan, and increases in various operating expenses driven by the increased number of locations, customers and employees following the acquisition.
Previous wording
The Company's deferred tax assets were $40.0 million and $42.2 million at December 31, 2024 and 2023, respectively. The decrease in deferred tax assets during 2024 was primarily driven by the decrease in unrealized losses on the AFS investments portfolio, including the remaining losses from the investments transferred from AFS to HTM in June 2022. While not anticipated as of December 31, 2024, should the Company realize a loss on these investments, the loss would be characterized as an ordinary loss for income tax purposes and not as a capital loss, and thus would not carry restrictions on use of any such loss. We continuously monitor and assess the need for a valuation allowance on our deferred tax assets, and we determined that no valuation allowance was necessary as of December 31, 2024 or December 31, 2023.
Current wording
Although not anticipated as of December 31, 2025, should the Company realize a loss on these investments, the loss would be characterized as an ordinary loss for income tax purposes and not as a capital loss, and thus would not carry restrictions on use of any such loss.
Previous wording
Included within the Company’s cash and cash equivalents balances at December 31, 2024 and 2023, 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 $13.2 million and $15.4 million, respectively. We and the counterparty manage these cash accounts daily. Refer to Notes 12 and 13 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 December 31, 2025 and 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 $7.2 million and $13.2 million, respectively. We and the counterparty manage these cash accounts daily. Refer to Notes 13 and 14 of the consolidated financial statements for additional detail on the Company’s derivatives and collateral.
Previous wording
The Company utilizes the investment portfolio to manage liquidity, interest rate risk, and regulatory capital, as well as to take advantage of market conditions to generate returns without undue risk. At December 31, 2024 and 2023, the Company’s investment portfolio generally consisted of MBS, CMO, municipal and corporate debt securities, FHLBB and FRB common stock, and mutual funds held in a rabbi trust for purposes of Company executive and director nonqualified retirement plans. We designate our debt securities as AFS or HTM based on our intent and investment strategy and they are carried at fair value and amortized cost, respectively. Our FHLBB and FRB common stock is carried at cost, and our mutual fund investments are carried at fair value. At December 31, 2024 and 2023, total investments were 20% and 21%, respectively, of total assets.
Current wording
The Company utilizes the investment portfolio to manage liquidity, interest rate risk, and regulatory capital, as well as to take advantage of market conditions to generate returns without undue risk. At December 31, 2025 and 2024, the Company’s investment portfolio generally consisted of MBS, CMO, municipal and corporate debt securities, FHLBB and FRB common stock, and mutual funds held in a rabbi trust for purposes of Company executive and director nonqualified retirement plans. We designate our debt securities as AFS or HTM based on our intent and investment strategy and they are carried at fair value and amortized cost, respectively. Our FHLBB and FRB common stock is carried at cost, and our mutual fund investments are carried at fair value. At December 31, 2025 and 2024, total investments were 21% and 20%, respectively, of total assets.
Previous wording
In 2022, we transferred securities from AFS to HTM to help manage our capital position in a rising interest rate environment. The securities were reclassified at fair value at the time of the transfer, which was a non-cash transaction. At December 31, 2024, the net unrealized losses on the transferred securities reported within AOCI were $41.8 million, net of a deferred tax asset of $11.4 million, and the weighted-average life on these securities was 7.9 years. At December 31, 2023, the net unrealized losses on the transferred securities reported within AOCI were $46.9 million, net of a deferred tax asset of $12.8 million and the weighted-average of these securities was 8.5 years.
Current wording
In 2022, we transferred securities from AFS to HTM to help manage our capital position in a rising interest rate environment. The securities were reclassified at fair value at the time of the transfer, which was a non-cash transaction. At December 31, 2025, the net unrealized losses on the transferred securities reported within AOCI were $36.7 million, net of a deferred tax asset of $10.6 million, and the weighted-average life on these securities was 7.3 years. At December 31, 2024, the net unrealized losses on the transferred securities reported within AOCI were $41.8 million, net of a deferred tax asset of $11.4 million and the weighted-average of these securities was 7.9 years.
Previous wording
•Pay downs, calls and maturities of $122.2 million;
Current wording
•Pay downs, calls and maturities of $152.7 million;
Previous wording
•Net amortization and accretion of $4.7 million; and
Current wording
•Net amortization and accretion of $8.4 million; and
Showing the first 40 of 90 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Adjusted return on average tangible equity is calculated the same as return on average tangible equity but uses adjusted net income which excludes certain transactions as shown in the table above. The Company believes this adjusted metric assists users of its financial statements with their period-over-period financial analysis as it is adjusted for certain non-recurring items.
Current report — wording carried from elsewhere
We continuously monitor and assess the need for a valuation allowance on our deferred tax assets, and we determined that no valuation allowance was necessary as of December 31, 2025 or December 31, 2024.
Current report — wording carried from elsewhere
•An increase in AOCI of $30.3 million, driven by the decrease in unrealized losses on the fair value of the Company’s debt securities and interest rate swaps, net of tax.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
December 31, 2024 and 2023, our investment in FHLBB stock totaled $17.1 million and $10.0 million, respectively, and our investment in FRB stock was $5.4 million at each date.