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CAMDEN NATIONAL CORP

CAMDEN NATIONAL CORPCACEarnings & Financial Report

Nasdaq · Financials · National Commercial Banks

Camden National Bank is a commercial bank headquartered in Camden, Maine, operating as the principal subsidiary of Camden National Corporation, a publicly traded bank holding company. Founded in 1875, the bank became a direct, wholly owned subsidiary of the holding company following a corporate reorganization in 1984. Following the 2025 merger with Northway Financial, the combined institution has approximately $7.0 billion in assets.

What changed in CAMDEN NATIONAL CORP's 10-K — 2023 vs 2024

Top changes in CAMDEN NATIONAL CORP's 2024 10-K

451 paragraphs added · 517 removed · 349 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

60 edited+28 added−23 removed117 unchanged
We consider our growth markets to be those that that have accelerated growth opportunities in comparison to our other markets, based on current and forecasted demographic information, and where we currently have less of a presence and market share. Further details of our financial information can be found within the consolidated financial statements within Item 8.
We consider our growth markets to be those that that have accelerated growth opportunities in comparison to our other markets, based on current and forecasted demographic information, and where we currently have less of a presence and market share. Further details of our financial information can be found within the consolidated financial statements in Item 8.
Under these regulations, as long as the Company and the Bank continue to meet the requirements to be qualifying small banking organizations ( i.e ., they have less than $10 billion in total consolidated assets and meet certain risk-based criteria), they are permitted to opt into (or out of) the Community Bank Leverage Ratio framework at any time and for any reason.
Under these regulations, as long as the Company and the Bank continue to meet the requirements to be qualifying small banking organizations ( i.e ., they have less than $10 billion in total consolidated assets and meet certain risk-based criteria), they are permitted to opt into (or out of) the Community Bank Leverage Ratio framework at 10 any time and for any reason.
Anti-Tying Restrictions Generally, a bank is prohibited from extending credit, leasing or selling property, furnishing any service or fixing or varying the consideration for any of the foregoing on the condition that (i) the customer obtains additional credit, property or services from the bank’s parent holding company or any subsidiary of the holding company, or (ii) the customer will not obtain credit, property or services from a competitor of the bank or its affiliates (except to the extent the restriction is a reasonable condition imposed to assure the soundness of the credit extended). 12 Consumer Protection Regulation The Company and the Bank are subject to federal and state laws designed to protect consumers and prohibit unfair or deceptive business practices, including the Equal Credit Opportunity Act, the Fair Housing Act, the Home Ownership Protection Act, the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003 (“FACT Act”), the Gramm-Leach-Bliley Act of 1999 (“GLBA”), the Truth in Lending Act, the CRA, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act and various state law counterparts.
Anti-Tying Restrictions Generally, a bank is prohibited from extending credit, leasing or selling property, furnishing any service or fixing or varying the consideration for any of the foregoing on the condition that (i) the customer obtains additional credit, property or services from the bank’s parent holding company or any subsidiary of the holding company, or (ii) the customer will not obtain credit, property or services from a competitor of the bank or its affiliates (except to the extent the restriction is a reasonable condition imposed to assure the soundness of the credit extended). 12 Consumer Protection Regulation The Company and the Bank are subject to federal and state laws designed to protect consumers and prohibit unfair or deceptive business practices, including the Equal Credit Opportunity Act, the Fair Housing Act, the Home Ownership Protection Act, the Fair Credit Reporting Act (“FCRA”), as amended by the Fair and Accurate Credit Transactions Act of 2003 (“FACT Act”), the Gramm-Leach-Bliley Act of 1999 (“GLBA”), the Truth in Lending Act, the CRA, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act and various state law counterparts.
If, after being so notified, an institution fails to submit an acceptable compliance plan or fails in any material respect to implement an acceptable compliance plan, the agency must issue an order directing action to correct the deficiency and may issue an order restricting asset growth, requiring an institution to increase its ratio of tangible equity to assets or directing other actions of the types to which an undercapitalized institution is subject under the “prompt corrective action” provisions of the FDIA.
If, after being so notified, an institution fails to submit an acceptable compliance plan or fails in any material respect to implement an acceptable compliance plan, the agency must issue an order directing action to correct the deficiency and may issue an order restricting asset growth, requiring an institution to 11 increase its ratio of tangible equity to assets or directing other actions of the types to which an undercapitalized institution is subject under the “prompt corrective action” provisions of the FDIA.
The rule for calculating assessment rates for established small banks, including the Bank, utilizes the CAMELS rating system, which is a supervisory rating system designed to take into account and reflect all financial and operational risks that a bank may face, including capital adequacy, asset quality, management capability, earnings, liquidity and sensitivity to market risk.
The rule for calculating assessment rates for established small banks, including the Bank, utilizes the CAMELS rating system, which is a supervisory rating system designed to take into account and reflect all financial and operational risks 8 that a bank may face, including capital adequacy, asset quality, management capability, earnings, liquidity and sensitivity to market risk.
In addition, most of these services are widely available to our customers by telephone, online and mobile channels through firms located outside our market area. Investor Relations. The Company’s Investor Relations information can be obtained through our internet address, w ww.CamdenNational.bank or www.CamdenNationalCorporation.com .
In addition, most of these services are widely available to our customers by telephone, online and mobile channels through firms located outside our market area. 4 Investor Relations. The Company’s Investor Relations information can be obtained through our internet address, w ww.CamdenNational.bank or www.CamdenNationalCorporation.com .
See “—Prompt Corrective Action” above. If an institution 11 fails to comply with such an order, the agency may seek to enforce such order in judicial proceedings and to impose civil money penalties. Dividend and Share Repurchase Restrictions The Company is a legal entity separate and distinct from its subsidiaries.
See “—Prompt Corrective Action” above. If an institution fails to comply with such an order, the agency may seek to enforce such order in judicial proceedings and to impose civil money penalties. Dividend and Share Repurchase Restrictions The Company is a legal entity separate and distinct from its subsidiaries.
Prior to joining the Company, Mr. Archer spent seven years at PricewaterhouseCoopers, LLP. Mr. Archer is a licensed Certified Public Accountant, and a graduate of the American Bankers Association Stonier Graduate School of Banking where he also completed the Wharton Leadership Program. Mr.
Prior to joining the Company, Mr. Archer spent seven years at PricewaterhouseCoopers, LLP. Mr. Archer is a licensed Certified Public Accountant, and a graduate of the American Bankers Association (“ABA”) Stonier Graduate School of Banking where he also completed the Wharton Leadership Program. Mr.
The Company cannot guarantee, however, that it or the Bank will continue to meet 10 the conditions to be eligible to apply the Community Bank Leverage Ratio, nor can the Company predict at this time whether it or the Bank will choose to apply the Community Bank Leverage Ratio in the future.
The Company cannot guarantee, however, that it or the Bank will continue to meet the conditions to be eligible to apply the Community Bank Leverage Ratio, nor can the Company predict at this time whether it or the Bank will choose to apply the Community Bank Leverage Ratio in the future.
Griffiths started his banking career at Washington Mutual Bank in 2002. Michael R. Arche r joined the Company in October 2013 and became EVP, Chief Financial Officer (“CFO”) of the Company on January 3, 2022. Prior to becoming EVP, CFO, Mr. Archer served as the Company’s Senior Vice President (“SVP”) and Corporate Controller from June 2016 until January 2022.
Griffiths started his banking career at Washington Mutual Bank in 2002. Michael R. Archer joined the Company in 2013 and became EVP, Chief Financial Officer (“CFO”) of the Company on January 3, 2022. Prior to becoming EVP, CFO, Mr. Archer served as the Company’s Senior Vice President (“SVP”) and Corporate Controller from June 2016 until January 2022.
Smyth Executive Vice President, Chief Experience and Marketing Officer 53 Simon R. Griffiths joined the Company in November 2023 as Executive Vice President (“EVP”) and Chief Operating Officer until he became President and Chief Executive Officer (“CEO”), and a member of the board of directors of the Company and the Bank on January 1, 2024.
Smyth Executive Vice President, Chief Experience and Marketing Officer 54 Simon R. Griffiths joined the Company in November 2023 as Executive Vice President (“EVP”) and Chief Operating Officer until he became President and Chief Executive Officer (“CEO”), and a member of the board of directors of the Company and the Bank on January 1, 2024.
Major competitors in our primary market area include local independent banks, as well as local branches of large regional and national banking organizations and brokerage houses, marketplace lenders and other financial technology companies (“fintechs”), financial advisors, thrift institutions and credit unions.
Major competitors in our primary market areas include local independent banks, as well as local branches of large regional and national banking organizations and brokerage houses, marketplace lenders and other financial technology companies (“fintechs”), financial advisors, thrift institutions and credit unions.
The Bank currently has an “Outstanding” CRA rating resulting from its 2021 CRA performance evaluation. In October 2023, the OCC, together with the FRB and FDIC, issued a joint final rule to modernize the CRA regulatory framework.
The Bank currently has an “Outstanding” CRA rating resulting from its most recent CRA performance evaluation in 2021. In October 2023, the OCC, together with the FRB and FDIC, issued a joint final rule to modernize the CRA regulatory framework.
We strive to ensure our employees’ work experience permits them to use their skills and passions to make a difference while growing their careers and being recognized and appreciated for their diverse talents, backgrounds, and perspectives. Employee Development and Retention.
We strive to ensure our employees’ work experience permits them to use their skills and passions to make a difference while growing their careers and being recognized and appreciated for their unique talents, backgrounds, and perspectives. Employee Development and Retention.
To attract, engage, and retain top talent, we strive to create a supportive workplace, with opportunities for our employees to grow and develop in their careers. We provide numerous training and development opportunities, a robust tuition reimbursement program, and competitive compensation, including a minimum starting wage of $17 per hour for all employees. Diversity, Equity and Inclusion.
To attract, engage, and retain top talent, we strive to create a supportive workplace, with opportunities for our employees to grow and develop in their careers. We provide numerous training and development opportunities, a robust tuition reimbursement program, and competitive compensation, including a minimum starting wage of $17 per hour for all employees. Workplace Safety and Inclusion.
Department of the Treasury for evaluating technology and internal processes for BSA compliance; and expands enforcement- and investigation-related authority, including a significant expansion in the available sanctions for certain BSA violations.
Department of the Treasury for evaluating technology and internal processes for BSA compliance; and expanded enforcement- and investigation-related authority, including a significant expansion in the available sanctions for certain BSA violations.
Under the Bank Secrecy Act (“BSA”), a financial institution is required to have systems in place to detect certain transactions, based on the size and nature of the transaction, and to monitor and report suspicious activity to appropriate law enforcement or regulatory authorities.
Anti-Money Laundering The Bank Secrecy Act. Under the Bank Secrecy Act (“BSA”), a financial institution is required to have systems in place to detect certain transactions, based on the size and nature of the transaction, and to monitor and report suspicious activity to appropriate law enforcement or regulatory authorities.
Item 1. Business Overview . Camden National Corporation (hereafter referred to as “we,” “our,” “us,” or the “Company”) is a publicly-held bank holding company, with $5.7 billion in assets at December 31, 2023, incorporated under the laws of the State of Maine and headquartered in Camden, Maine.
Item 1. Business Overview . Camden National Corporation (hereafter referred to as “we,” “our,” “us,” or the “Company”) is a publicly-held bank holding company, with $5.8 billion in assets at December 31, 2024, incorporated under the laws of the State of Maine and headquartered in Camden, Maine.
Under these regulations, a bank holding company, such as the Company, and a national bank, such as the Bank, are required to notify the FRB or OCC, respectively, within 36 hours of incidents that have materially disrupted or degraded, or are reasonably likely to materially disrupt or degrade the banking organization’s ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or pose a threat to the financial stability of the United States (“U.S.”). 13 Anti-Money Laundering The Bank Secrecy Act.
Under these regulations, a bank holding company, such as the Company, and a national bank, such as the Bank, are required to notify the FRB or OCC, respectively, within 36 hours of incidents that have materially disrupted or degraded, or are reasonably likely to materially disrupt or degrade the banking organization’s ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or pose a threat to the financial stability of the United States (“U.S.”).
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). We have achieved a five-year compounded annual asset growth rate of 5%, resulting in $5.7 billion in total assets at December 31, 2023.
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). We have achieved a five-year compounded annual asset growth rate of 6%, resulting in $5.8 billion in total assets at December 31, 2024.
Archer currently serves as a member of local non-profit organizations, including as the Treasurer and a board member of Jobs for Maine's Graduates, Inc., board member for the local little league, and as a committee member for the local town recreational department. David J. Ackley joined the Company in 2011 and became EVP, Chief Risk Officer in July 2023.
Archer currently serves as a member of local non-profit organizations, including as the Treasurer and Executive Committee member of the board of JMG, Inc., board member for the local little league, and as a committee member for the local town recreational department. David J. Ackley joined the Company in 2011 and became EVP, Chief Risk Officer in July 2023.
Securities and insurance offered through LPL or its affiliates are not insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency, are not bank deposits or obligations and may lose value. Customers may also access the Bank’s products and services using other channels, including on-line at www . CamdenNational.bank or download our mobile phone application (or “app”).
Securities and insurance offered through LPL or its affiliates are not insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency, are not bank deposits or obligations and may lose value. Customers may also access our products and services using other channels, including online at www . CamdenNational.bank or by downloading our mobile phone application (or “app”).
In January 2021, the Anti-Money Laundering Act of 2020 (“AMLA”), which amends the BSA, was enacted. Among other things, the AMLA codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards by the U.S.
In January 2021, the Anti-Money Laundering Act of 2020 (“AMLA”), which amends the BSA, was enacted. Among other things, the AMLA codified a risk-based approach to AML compliance for financial institutions; required the development of standards by the U.S.
For the years ended December 31, 2023, 2022 and 2021, net interest income was our primary revenue source, representing 81%, 78%, and 73%, of our total revenues 1 , respectively.
For the years ended December 31, 2024, 2023 and 2022, net interest income was our primary revenue source, representing 75%, 81%, and 78%, of our total revenues, 1 respectively.
Rose joined the Company in September 2017 as EVP, Retail and Mortgage Banking. Ms. Rose came to the Company from Citizens Bank where she served for two years as Head of Strategic Onboarding & Orientation, and, prior to that, Director level roles in Retail Network Sales and Strategy at Santander Bank for six years. Ms.
Rose came to the Company from Citizens Bank where she served for two years as Head of Strategic Onboarding & Orientation, and, prior to that, Director level roles in Retail Network Sales and Strategy at Santander Bank for six years. Ms.
The FDIC has the power to make further adjustments to deposit insurance assessment rates at any time, and the Company is not able to predict the amount or timing of any such adjustment.
The FDIC has the power to make further adjustments to deposit insurance assessment rates at any time, and the Company is not able to predict the amount or timing of any such adjustment. Activities and Investments of National Banking Associations.
What We Do. The Company, as a diversified financial services provider, pursues the objective of achieving long-term sustainable growth by balancing growth opportunities against profit, while mitigating risks inherent in the financial services industry. The primary business of the Company and the Bank is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers.
The Company, as a diversified financial services provider, pursues the objective of achieving long-term sustainable and profitable growth, while mitigating risks inherent in the financial services industry. The primary business of the Company and the Bank is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers.
As a bank holding company, the Company is subject to regulation, supervision and examination by the Board of Governors of the Federal Reserve System (“FRB”) under the Bank Holding Company Act of 1956, as amended (“BHCA”). As a national bank, the Bank is subject to primary regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”).
As a bank holding company, the Company is subject to regulation, supervision and examination by the Board of Governors of the Federal Reserve System (“FRB”) under the Bank Holding Company Act of 1956, as amended (“BHCA”).
We are powered by an extraordinary team of 600 employees, as of December 31, 2023, who work together to provide expert banking solutions to help people achieve their financial potential. We believe we have the experience and responsibility to take a proactive approach to engage and support a broad range of employees.
We are powered by an extraordinary team of 586 employees, as of December 31, 2024, who work together to provide expert banking solutions to help people achieve their financial potential. We believe we have the experience and responsibility to engage proactively with, and support, a broad range of employees.
Through our commitment to fostering a fair, safe, and welcoming workplace environment for all, we aim to maintain a culture that enables our employees to be their best in serving our customers and communities, while achieving business success.
We recognize that an inclusive workforce is essential to achieving and maintaining a thriving company. Through our commitment to fostering a fair, safe, and welcoming workplace environment for all, we aim to maintain a culture that enables our employees to be their best in serving our customers and communities, while achieving business success.
In addition, we have a confidential whistleblower program that forwards complaints to the audit committee and the Board of Directors, and we work to take necessary action as quickly as possible after a complaint is received.
In addition, we have a confidential whistleblower program that forwards complaints to the audit committee and the Board of Directors, and we work to take necessary action as quickly as possible after a complaint is received. Health and Wellness . We are also deeply committed to the health and well-being of our employees.
Smith led the southern Maine commercial banking line of business and the treasury management line of business from 2012 through 2015, when he then became Director of Commercial Banking for central and midcoast Maine from 2015 through 2019. In 2019, he was promoted to SVP, Director of Credit Administration. Renée D.
Smith led the Southern Maine commercial banking line of business and the treasury management line of business from 2012 through 2015, when he then became Director of Commercial Banking for Central and Midcoast Maine from 2015 through 2019. In 2019, he was promoted to SVP, Director of Credit Administration. Prior to his time at Camden National Bank, Mr.
Asset growth over the past five years of $1.3 billion has been all organic, including further growth and 1 Revenue is the sum of net interest income and non-interest income. 3 expansion into Southern Maine, and select markets in New Hampshire and Massachusetts.
Asset growth over the past five years of $1.5 billion has been organic, including further growth and expansion into Southern Maine, and select markets in New Hampshire and Massachusetts.
Failure to comply with consumer protection laws and regulations can subject financial institutions to enforcement actions, fines and other penalties. The OCC examines the Bank for compliance with CFPB rules and enforces CFPB rules with respect to the Bank. Mortgage Reform.
Failure to comply with consumer protection laws and regulations can subject financial institutions to enforcement actions, fines and other penalties. The OCC examines the Bank for compliance with CFPB rules and enforces CFPB rules with respect to the Bank. FCRA . Like other lenders, the Bank uses consumer reports in its underwriting activities.
The following is a summary of certain aspects of various statutes and regulations applicable to the Company and its direct and indirect subsidiaries. This summary is not a comprehensive analysis of all applicable laws, and you should refer to the applicable statutes and regulations for more information.
This summary is not a comprehensive analysis of all applicable laws, and you should refer to the applicable statutes and regulations for more information.
The Incentive Compensation Guidance is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.
The Incentive Compensation Guidance is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. 14 The Incentive Compensation Guidance states that enforcement actions may be taken against a banking organization if its incentive compensation arrangements or related risk-management control or governance processes pose a risk to the organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.
Smyth served as SVP, Head of Marketing for The Bank of Maine, from 2010 through October 15, 2015. Prior to joining the Company, Ms. Smyth was SVP and Director of Affinity Programs for Override, an international loyalty marketing service company. She is a strategic advisor to Finding Our Voices and the American Heart Association’s Go Red for Women.
Smyth served as SVP, Head of Marketing for The Bank of Maine, from 2010 through October 15, 2015. Prior to joining the Company, Ms. Smyth was SVP and Director of Affinity Programs for Override, an international loyalty marketing service company.
Ackley began his career as a Communication Computer Systems Operator for the United States Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications before spending 14 years as Science and Technology Corporation’s Manager of Information Technology.
Ackley began his career as a Communication Computer Systems Operator for the United States Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications before spending 14 years as Science and Technology Corporation’s Manager of Information Technology. He achieved the ABA Certified Enterprise Risk Professional designation and currently serves on the ABA’s Risk and Compliance Conference Planning Committee.
This commitment is reflected in the benefits we offer our employees, including: market-competitive compensation; healthcare; paid time off, including parental/family leave; retirement benefits; short-term and long-term disability; an employee hardship fund, which provides employees dealing with a financial hardship access to funds that the employee is not required to repay; an emotional well-being support program and a wellness reimbursement program.
This commitment is reflected in the benefits we offer our employees, including: market-competitive compensation; healthcare; paid time off, including parental/family leave; retirement benefits; short-term and long-term disability; an employee hardship fund, which provides employees dealing with a financial hardship access to funds that the employee is not required to repay; an emotional well-being support program and a wellness reimbursement program. 5 Information about our Executive Officers The following table sets forth certain information regarding the executive officers of the Company, as defined by Rule 3b-7 of the Securities and Exchange Act of 1934, as amended.
Additionally, the FACT Act amends the Fair Credit Reporting Act to generally prohibit a person from using information received from an affiliate to make a solicitation for marketing purposes to a consumer, unless the consumer is given notice and a reasonable opportunity and a reasonable and simple method to opt out of the making of such solicitations.
Additionally, the FACT Act amends the Fair Credit Reporting Act to generally prohibit a person from using information received from an affiliate to make a solicitation for marketing purposes to a consumer, unless the consumer is given notice and a reasonable opportunity and a reasonable and simple method to opt out of the making of such solicitations. 13 The U.S. federal bank regulatory agencies impose notification requirements on banking organizations with respect to significant computer security incidents.
Department of the Treasury, issued the priorities for anti-money laundering and countering the financing of terrorism policy required under the AMLA. The priorities include: corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing. OFAC. The U.S. has imposed economic sanctions that affect transactions with designated foreign countries, nationals and others.
Department of the Treasury (“FinCEN”), issued the priorities for anti-money laundering and countering the financing of terrorism policy required under the AMLA. The priorities include corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing.
Changes in applicable laws or regulations, and in their interpretation and application by regulatory agencies and other governmental authorities, cannot be predicted, but may have a material effect on our business, financial condition or results of operations. 7 Regulation of the Company As a bank holding company, the Company is subject to regulation, supervision and examination by the FRB, which has the authority, among other things, to order bank holding companies to cease and desist from unsafe or unsound banking practices; to assess civil money penalties; and to order termination of non-banking activities or termination of ownership and control of a non-banking subsidiary by a bank holding company.
Regulation of the Company As a bank holding company, the Company is subject to regulation, supervision and examination by the FRB, which has the authority, among other things, to order bank holding companies to cease and desist from unsafe or unsound banking practices; to assess civil money penalties; and to order termination of non-banking activities or termination of ownership and control of a non-banking subsidiary by a bank holding company.
Other competitors for deposits and loans within our primary market area include insurance companies, money market funds, consumer finance companies and financing affiliates of consumer durable goods manufacturers. 4 We have effectively competed with other financial institutions by emphasizing customer service, highlighted by local decision-making, establishing long-term customer relationships, building customer loyalty and providing products and services designed to me e t the needs of customers.
We have competed effectively with other financial institutions by emphasizing customer service, which is highlighted by local decision-making, establishing long-term customer relationships, building customer loyalty, and providing products and services designed to me e t the needs of customers.
Martel began his banking career as a senior branch manager for People’s Heritage Bank, a predecessor to BankNorth Group. He is a founding member, past president and the current Treasurer of Amagara Marungi, a Maine based non-profit. Jennifer L. Mirabile joined the Company in 2017 as the Managing Director of Camden National Wealth Management. A licensed CFP since 1998, Ms.
Martel was a Senior Vice President at TD Bank and served in several senior 6 management positions in the US and Canada. Mr. Martel began his banking career as a senior branch manager for People’s Heritage Bank, a predecessor to BankNorth Group. He is a founding member, past president and the current Treasurer of Amagara Marungi, a Maine-based non-profit.
As of December 31, 2023, the Bank had 56 branches in 13 of Maine's 16 counties, two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester, a mortgage loan production office in Braintree, Massachusetts, and 65 ATMs.
The Bank provides a broad array of banking and other financial services to consumer, institutional, municipal, non-profit, and commercial customers. As of December 31, 2024, the Bank had 56 branches in 13 of Maine's 16 counties, and two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester.
All of the executive officers hold office at the discretion of the Company’s Board of Directors. There are no arrangements or understandings between any of the directors, officers or any other persons pursuant to which any of the officers have been selected as officers.
There are no arrangements or understandings between any of the directors, officers or any other persons pursuant to which any of the officers have been selected as officers. There are no “family relationships” among the directors and executive officers, as the Securities and Exchange Commission defines that term.
With offices across Northern New England, we offer competitive financial products and services, delivered by a talented team and complemented by the latest in digital banking to empower our customers to bank the way they want.
We are an award-winning, relationship-driven community bank that supports individuals, families, and businesses at every stage of their financial journey. With offices across Northern New England, we offer competitive financial products and services, complemented by the latest in digital banking to empower our customers to bank the way they want.
We continue to evaluate the possibility of expansion into new markets through both de novo expansion and acquisitions. Regardless of merger and acquisition opportunities that may be present, we are always focused on maximizing growth within our current markets, and particularly those that we see as growth markets.
Regardless of merger and acquisition opportunities that may be present, we are always focused on maximizing growth within our current markets, and 1 Revenue is the sum of net interest income and non-interest income. 3 particularly those that we see as growth markets.
Ackley Executive Vice President, Chief Risk Officer 48 William H. Martel Executive Vice President, Technology and Support Services, Chief Technology Officer 54 Jennifer L. Mirabile Executive Vice President, Managing Director, Camden National Wealth Management 64 Patricia A. Rose Executive Vice President, Retail and Mortgage Banking Officer 60 Ryan A. Smith Executive Vice President, Chief Credit Officer 51 Renée D.
Martel Executive Vice President, Technology and Support Services, Chief Technology Officer 55 Garrett A. McKnight Executive Vice President, Managing Director, Camden National Wealth Management 53 Barbara M. Raths Executive Vice President, Commercial Banking 50 Patricia A. Rose Executive Vice President, Retail and Mortgage Banking Officer 61 Ryan A. Smith Executive Vice President, Chief Credit Officer 52 Renée D.
This method takes into account various measures, including an institution’s leverage ratio, brokered deposit ratio, one year asset growth, the ratio of net income before taxes to total assets and considerations related to asset quality. 8 In October 2022, the FDIC finalized a rule to increase the initial base deposit insurance assessment rate schedules for all insured depository institutions by 2 basis points, beginning with the first quarterly assessment period of 2023.
In October 2022, the FDIC finalized a rule to increase the initial base deposit insurance assessment rate schedules for all insured depository institutions by 2 basis points, beginning with the first quarterly assessment period of 2023.
There are no “family relationships” among the directors and executive officers, as the Securities and Exchange Commission defines that term. Supervision and Regulation The following discussion addresses elements of the regulatory framework applicable to bank holding companies and their subsidiaries.
Supervision and Regulation The following discussion addresses elements of the regulatory framework applicable to bank holding companies and their subsidiaries.
Our primary focus continues to be on profitable organic growth and we may pursue acquisitions that support our long-term strategy and fit our culture and core values. The financial services industry continues to experience consolidations through mergers that could create opportunities for us to promote our value proposition to other financial institutions and financial service companies.
The financial services industry continues to experience consolidations through mergers that could create opportunities for us to promote our value proposition to other financial institutions and financial service companies. We continue to evaluate the possibility of expansion into new markets through both de novo expansion and acquisitions.
Community is at the core of what we do and why we do it, and as we’ve grown over the years, our commitment to socially-minded growth and giving back has deepened. Our Commitment to Corporate Responsibility.
Community is at the core of what we do and why we do it, and as we grow, our commitment to doing so responsibly in a socially-minded way and giving-back to our communities remains at the heart of who we are. Our Commitment to Community and Responsible Corporate Governance.
Competition . We compete throughout Maine, and select areas of New Hampshire and Massachusetts. Our primary markets historically have been and continue to be within Maine. Within Maine, we operate in 13 of the state's 16 counties, with our primary markets and presence being throughout coastal and central Maine. Many of these markets are characterized as rural areas.
Competition . We compete throughout Maine, New Hampshire, and select areas of Massachusetts. Many of the markets in which we compete are characterized as rural areas.
Most provisions of the final rule will become effective on January 1, 2026, and the data reporting requirements will become effective on January 1, 2027. 9 Capital Adequacy and Safety and Soundness Regulatory Capital Requirements.
The final rule became effective on April 9 1, 2024, but has been paused subject to a court ordered injunction and most provisions of the final rule will not become applicable until after January 1, 2026, pending the outcome of litigation on the final rule. Capital Adequacy and Safety and Soundness Regulatory Capital Requirements.
Martel served as Head of U.S. Operations Technology for Santander U.S. in Boston, leading the Operations and Information Technology Service Management transformations for the US. Previously, Mr. Martel was a Senior Vice President at TD Bank and served in several senior management positions in the US and Canada. Mr.
Martel joined the Company in March 2020 as EVP, Technology and Support Services and currently holds the title of EVP, Chief Technology Officer. Prior to joining the Company Mr. Martel served as Head of U.S. Operations Technology for Santander U.S. in Boston, leading the Operations and Information Technology Service Management transformations for the US. Previously, Mr.
These sanctions, which are administered by the U.S. Treasury’s Office of Foreign Assets Control (“OFAC”), take many different forms.
The effects of the proposed rule on the Bank will depend on the final form of any rulemaking. OFAC. The U.S. has imposed economic sanctions that affect transactions with designated foreign countries, nationals and others. These sanctions, which are administered by the U.S. Treasury’s Office of Foreign Assets Control (“OFAC”), take many different forms.
The Bank optimizes its in-person professional financial guidance with state-of-the-art technology, delivered through sophisticated digital channels.
Upon completing the Northway acquisition on January 2, 2025, the Bank added 17 branches in New Hampshire and now has a physical presence in seven of New Hampshire’s ten counties. The Bank optimizes its in-person professional financial guidance with state-of-the-art technology, delivered through sophisticated digital channels.
Founded in 1875, we’re passionate about making a difference in people’s lives, so that together we can thrive in a vibrant, prosperous community for all. As a dedicated community bank, we actively give back and make a difference in our communities and neighborhoods where we live, work, and play.
As a dedicated community bank, we actively give back and make a difference in the communities and neighborhoods where we live, work, and play. We are dedicated to strengthening our communities through direct financing, donations and employee volunteerism.
Our commitment to environmental, social, and governance (“ESG”) progress is an integral part of our company culture as we work to create a thriving, sustainable, and inclusive future for all of our constituents. Our Core Values.
Our commitment to our communities and corporate governance is an i ntegral part of our company culture. Our culture and values support our strategic goal to generate consistent, sustainable long-term value for all of our constituents. What We Do.
Removed
All inter-company accounts and transactions have been eliminated in consolidation. Who We Are . We are an award-winning, full-service community bank supporting individuals, families, and businesses at every stage of their financial journey.
Added
All inter-company accounts and transactions have been eliminated in consolidation. On January 2, 2025, we completed our acquisition of Northway Financial, Inc. (“Northway”) and its bank subsidiary, Northway Bank. The acquisition of Northway added $971.9 million of deposits and $1.2 billion total assets to our balance sheet, as of January 2, 2025.
Removed
We are uncompromisingly committed to our core values, and rigorously pursue opportunities to add long-term value for our customers, shareholders, employees, and the communities we serve.
Added
The acquisition also expanded our presence in New Hampshire by adding 17 branches to our network as of January 2, 2025. Refer to Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Introductory Note” and Note 23 of the consolidated financial statements for additional details regarding the Northway acquisition. Who We Are .
Removed
We are guided and inspired by our Core Values : • Honesty and integrity – above all else • Trust – built on fairness • Service – second to none • Responsibility – to use our resources for the greater good • Excellence – through hard work and lifelong learning • Diversity – realized through inclusion and respect Our culture and values are strengths that support our strategic goal to generate consistent, sustainable long-term value for all of our constituents.
Added
We deliver expert guidance and personalized financial solutions to help our customers navigate any environment and achieve their financial goals. Founded in 1875, we are passionate about making a difference in the lives of our customers and communities we serve, so that together we can thrive in a vibrant, prosperous community for all.
Removed
The Bank provides a broad array of banking and other financial services to consumer, institutional, municipal, non-profit and commercial customers.
Added
We continue to focus on driving profitable organic growth through growing customer relationships and deepening our market penetration across our existing markets, as well as pursuing acquisitions that support our strategy and fit our culture and core values, such as the acquisition of Northway, which was completed in early 2025 and greatly expanded our New Hampshire footprint.
Removed
We recognize that a diverse, equitable, and inclusive workforce is essential to achieving and maintaining a thriving company. We are on a constantly evolving journey toward fostering diversity, equity and inclusion (“DEI”) throughout the organization.
Added
Other competitors for deposits and loans within our primary market area include insurance companies, money market funds, consumer finance companies and financing affiliates of consumer durable goods manufacturers.
Removed
We also prohibit discrimination on the grounds of race, color, religion, sex, sexual orientation (including gender identity and gender expression), national origin, citizenship status, age, disability, genetic information, or veteran status. We employ based on talent and potential for growth, and we value a diversity of backgrounds and ideas.
Added
Executive Officer Position Age Simon R. Griffiths President and Chief Executive Officer 51 Michael R. Archer, CPA Executive Vice President, Chief Financial Officer 41 David J. Ackley Executive Vice President, Chief Risk Officer 49 Andrew R. Forbes Executive Vice President, Chief Human Resources Officer 53 William H.
Removed
As of December 31, 2023, approximately 67% of our employees self-identified as women, and approximately 45% of our vice presidents, 37% of our senior vice presidents and 33% of our executive vice presidents self-identified as women.
Added
Andrew R. Forbes joined the Company in March 2024 as EVP, Chief Human Resources Officer and has 25 years of Human Resources experience across multiple industries, which have provided him with expertise in talent acquisition and management, compensation and benefits, and culture and engagement. He served as Chief People Officer for Alcom LLC from 2022 until joining the Company.
Removed
Our commitment to DEI starts at the top of our organization, with oversight of our initiatives provided by the Board of Directors and our president and CEO. Our president and CEO sponsors our Diversity, Equity, and Inclusion Council (“DEI Council”) established in 2021.
Added
Prior to that he served as Vice President, Human Resources for Rimini Street from 2020 to 2022, as Vice President, Human Resources for Maine Medical Center from 2016 to 2020 and as Senior Director, Global Human Resources for Fairchild Semiconductor from 2010 to 2016. Mr.
Removed
The DEI Council is self-governed by employees and represents the diversity of our employee population, including employees who identify as racially diverse and LGBTQ+.
Added
Forbes is a Society for Human Resource Management - Senior Certified Professional, and holds a master’s degree in industrial and organizational psychology from Hofstra University. Mr. Forbes currently serves on the Board of Directors of the Maine Mathematics and Science Alliance. William H.
Removed
The DEI Council's purpose is to provide a channel for open communication and feedback, and provide valued advice on all matters pertaining to diversity, equity and inclusion across our organization. 5 To strengthen our DEI commitment, during 2023 we identified a DEI officer to lead the organization’s DEI efforts and expand its diverse talent pipelines to shape an environment where diverse voices and backgrounds continue to be welcomed and heard.
Added
Garrett A. McKnight joined the Company in April 2024 as the Managing Director of Camden National Wealth Management. Prior to joining the Company, Mr. McKnight served as Senior Vice President and Senior Managing Director of The Northern Trust Company, where he spent 15 years, and worked in U.S.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

78 edited+32 added−33 removed133 unchanged
If one or more of the events described above occurs, this could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our customers’ confidential, proprietary and other information, the theft of customer assets through fraudulent transactions or disruption of our or our customers’ or other third parties’ business operations, which could result in legal or regulatory action, significant losses, increased compliance costs or reputational damage, any of which could adversely affect our business, financial condition or results of operations.
If one or more of the events described above occurs, this could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our customers’ confidential, proprietary and other information, the theft of customer assets through fraudulent transactions or 26 disruption of our or our customers’ or other third parties’ business operations, which could result in legal or regulatory action, significant losses, increased compliance costs or reputational damage, any of which could adversely affect our business, financial condition or results of operations.
Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, revocation of a banking charter, other sanctions by regulatory agencies, civil money penalties, and/or reputational damage, which could have a material adverse effect on our business, financial condition, and results of operations.
Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by federal or state authorities, including criminal and civil penalties, the loss of FDIC 23 insurance, revocation of a banking charter, other sanctions by regulatory agencies, civil money penalties, and/or reputational damage, which could have a material adverse effect on our business, financial condition, and results of operations.
Further, even if governmental support for financial institutions is available in the future, it may not be sufficient to address systemic risks. We are a holding company and dependent upon our subsidiary for dividends, distributions and other payments to meet our liquidity needs. We are a legal entity separate and distinct from our direct and indirect subsidiaries.
Further, even if governmental support for financial institutions is available in the future, it may not be sufficient to address systemic risks. 22 We are a holding company and dependent upon our subsidiary for dividends, distributions and other payments to meet our liquidity needs. We are a legal entity separate and distinct from our direct and indirect subsidiaries.
In addition, if we fail to maintain appropriate levels of capital or liquidity, we could become subject to formal or informal enforcement actions that may impose restrictions on our business, including limiting our lending activities or our ability to expand, requiring us to raise additional capital (which may be dilutive to shareholders) or requiring regulatory approval to pay dividends or otherwise return capital to shareholders.
In addition, if we fail to maintain appropriate levels of capital or liquidity, we could become subject to formal or informal enforcement actions that may impose restrictions on our business, including limiting our lending activities or our ability to expand, requiring us to 24 raise additional capital (which may be dilutive to shareholders) or requiring regulatory approval to pay dividends or otherwise return capital to shareholders.
Any of these events could affect us directly (for example, by interrupting our systems, causing significant damage to our facilities or otherwise preventing us from conducting our ordinary business) or indirectly as a result of effects on our borrowers and other customers 28 or third-party vendors (for example, by damaging property pledged as collateral for our loans).
Any of these events could affect us directly (for example, by interrupting our systems, causing significant damage to our facilities or otherwise preventing us from conducting our ordinary business) or indirectly as a result of effects on our borrowers and other customers or third-party vendors (for example, by damaging property pledged as collateral for our loans).
Negative effects on those industries could result in higher rates of loss and delinquency on our loans, which could have a material, adverse effect on our financial condition or results of operations. Our loan portfolio includes commercial real estate and commercial loans, which are generally riskier than other types of loans.
Negative effects on those industries could result in higher rates of loss and delinquency on our loans, which could have a material, adverse effect on our financial condition or results of operations. 18 Our loan portfolio includes commercial real estate and commercial loans, which are generally riskier than other types of loans.
Higher rates of default or other events could cause us to experience higher credit losses or could otherwise have an adverse effect on our financial condition and results of operations. 18 Refer to “—Financial Condition—Loans” for additional information regarding concentrations within our commercial loan portfolio.
Higher rates of default or other events could cause us to experience higher credit losses or could otherwise have an adverse effect on our financial condition and results of operations. Refer to “—Financial Condition—Loans” for additional information regarding concentrations within our commercial loan portfolio.
See “Supervision and Regulation—Capital Adequacy and Safety and Soundness—Prompt Corrective Action” and “Supervision and Regulations—Regulation of the Bank—Brokered Deposits” for additional information on the prompt corrective action framework and the regulation of brokered deposits. 21 Wholesale funding sources may prove insufficient to replace deposits and support our operations and future growth.
See “Supervision and Regulation—Capital Adequacy and Safety and Soundness—Prompt Corrective Action” and “Supervision and Regulations—Regulation of the Bank—Brokered Deposits” for additional information on the prompt corrective action framework and the regulation of brokered deposits. Wholesale funding sources may prove insufficient to replace deposits and support our operations and future growth.
See Item 1., “Business—Supervision and Regulation.” 23 We may become involved in lawsuits and legal proceedings that may lead to adverse consequences. As a participant in the financial services industry, many aspects of the Company’s business involve substantial risk of legal liability.
See Item 1., “Business—Supervision and Regulation.” We may become involved in lawsuits and legal proceedings that may lead to adverse consequences. As a participant in the financial services industry, many aspects of the Company’s business involve substantial risk of legal liability.
Any of these occurrences could impact our 27 ability to operate our business, or cause financial loss, potential liability to clients, reputational damage or regulatory consequences, any of which could have a material adverse effect on our financial condition or results of operations.
Any of these occurrences could impact our ability to operate our business, or cause financial loss, potential liability to clients, reputational damage or regulatory consequences, any of which could have a material adverse effect on our financial condition or results of operations.
See Item 1. “Business-Supervision and Regulation-Regulatory Capital Requirements” for additional information on capital requirements applicable to us and the Bank. 24 Operational and Business Risk Damage to our reputation could significantly harm our business.
See Item 1. “Business-Supervision and Regulation-Regulatory Capital Requirements” for additional information on capital requirements applicable to us and the Bank. Operational and Business Risk Damage to our reputation could significantly harm our business.
“Business—Supervision and Regulation—Dividend Restrictions” and “Business—Supervision and Regulation—Regulatory Capital Requirements.” 22 Regulatory and Legal Risk Our banking business is highly regulated, and we may be adversely affected by changes in law and regulation.
“Business—Supervision and Regulation—Dividend Restrictions” and “Business—Supervision and Regulation—Regulatory Capital Requirements.” Regulatory and Legal Risk Our banking business is highly regulated, and we may be adversely affected by changes in law and regulation.
Further, because a substantial portion of the loan portfolio is secured by real estate in this area, the value of the associated collateral is also subject to regional real estate market conditions.
Because a substantial portion of the loan portfolio is secured by real estate in this area, the value of the associated collateral is also subject to regional real estate market conditions.
We are not able to predict the timing or impact of any changes in local, state or federal tax laws. Item 1B. Unresolved Staff Comments None.
We are not able to predict the timing or impact of any changes in local, state or federal tax laws. Item 1B. Unresolved Staff Comments None. 29
“Management’s Discussion and Analysis—Risk Management Policies—Interest Rate Risk” for additional information regarding the Company’s asset and liability management policies and practices, as well as its interest rate risk position, including assumptions used in determining such, as of December 31, 2023. There is risk that any change in interest rates could negatively affect our results of operations or financial condition.
“Management’s Discussion and Analysis—Risk Management Policies—Interest Rate Risk” for additional information regarding the Company’s asset and liability management policies and practices, as well as its interest rate risk position, including assumptions used in determining such, as of December 31, 2024. There is risk that any change in interest rates could negatively affect our results of operations or financial condition.
Although governmental support was provided in connection with recent bank failures, including the FDIC’s invoking the systemic risk exception to guarantee uninsured deposits, there can be no guarantee that the FDIC will invoke the systemic risk exception in connection with any future bank failures or that the government would otherwise take any action to provide liquidity to troubled institutions.
Although governmental support was provided in connection with the 2023 bank failures, including the FDIC’s invoking the systemic risk exception to guarantee uninsured deposits, there can be no guarantee that the FDIC will invoke the systemic risk exception in connection with any future bank failures or that the government would otherwise take any action to provide liquidity to troubled institutions.
For additional information, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies .” We may be required to write down goodwill and other identifiable intangible assets. When we acquire a business, a portion of the purchase price of the acquisition may be allocated to goodwill and other identifiable intangible assets.
For additional information, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates .” We may be required to write down goodwill and other identifiable intangible assets. When we acquire a business, a portion of the purchase price of the acquisition may be allocated to goodwill and other identifiable intangible assets.
We recently completed our goodwill impairment analysis as of November 30, 2023 and concluded goodwill was not impaired. We conduct a review of our other intangible assets for impairment should events or circumstances warrant such review. There were no triggers for such review for impairment for other intangible assets for the year ended December 31, 2023.
We recently completed our goodwill impairment analysis as of November 30, 2024 and concluded goodwill was not impaired. We conduct a review of our other intangible assets for impairment should events or circumstances warrant such review. There were no triggers for such review for impairment for other intangible assets for the year ended December 31, 2024.
At December 31, 2023, our commercial real estate and commercial loan portfolios comprised 51% of our total loan balances. Commercial loans generally carry larger loan balances and involve a higher risk of nonpayment or late payment than residential mortgage loans. Commercial loans may lack standardized terms and may include a balloon payment feature.
At December 31, 2024, our commercial real estate and commercial loan portfolios comprised 51% of our total loan balances. Commercial loans generally carry larger loan balances and involve a higher risk of nonpayment or late payment than residential mortgage loans. Commercial loans may lack standardized terms and may include a balloon payment feature.
Because we primarily serve individuals and businesses located in Maine, any negative impact resulting from reputational harm, including any impact on our ability to attract and retain customers and employees, likely would be greater than if our business were more geographically diverse.
Because we primarily serve individuals and businesses located in Maine and New Hampshire, any negative impact resulting from reputational harm, including any impact on our ability to attract and retain customers and employees, likely would be greater than if our business were more geographically diverse.
Our business performance and the trading price of shares of our common stock have in the past, and may in the future be, affected by many factors affecting financial institutions, including volatility in the credit, mortgage and housing markets, fluctuations in interest rates (including in response to inflation), the markets for securities relating to mortgages or housing, and the value of debt and mortgage-backed and other securities that we hold in our investment portfolio.
Our business performance and the trading price of shares of our common stock have in the past, and may in the future be, affected by many factors, including volatility in the credit, mortgage and housing markets, fluctuations in interest rates (including in response to inflation), the markets for securities relating to mortgages or housing, and the value of debt and mortgage-backed and other securities that we hold in our investment portfolio.
The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets acquired determines the amount of the purchase price that is allocated to goodwill. At December 31, 2023, our goodwill and other identifiable intangible assets totaled $95.7 million.
The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets acquired determines the amount of the purchase price that is allocated to goodwill. At December 31, 2024, our goodwill and other identifiable intangible assets totaled $95.7 million.
Future actions against us may result in judgments, settlements, fines, penalties or other results adverse to us, which could materially adversely affect our business, financial condition or results of operations, or cause serious reputational harm to us. Although we maintain insurance, the scope of this coverage may not provide us with full, or even partial, coverage in any particular case.
Future actions against us may result in judgments, settlements, fines, penalties or other results adverse to us, which could materially adversely affect our business, financial condition or results of operations, or cause serious reputational harm to us. In addition, the scope of insurance coverage we maintain may not provide us with full, or even partial, coverage in any particular case.
Despite instituted safeguards, we cannot be certain that all of our systems are entirely free from vulnerability to attack or other technological difficulties or failures. If information security is breached or other technology difficulties or failures occur, information may be lost or misappropriated, services and operations may be interrupted and we could be exposed to claims from customers.
We cannot be certain that all of our systems are entirely free from vulnerability to attack or other technological difficulties or failures. If information security is breached or other technology difficulties or failures occur, information may be lost or misappropriated, services and operations may be interrupted and we could be exposed to claims from customers.
The Company’s ability to mitigate the adverse consequences of these occurrences is in part dependent on the quality of the Company’s resiliency planning, and the Company’s ability, if any, to anticipate the nature of any such event that occurs.
Our ability to mitigate the adverse consequences of these occurrences is in part dependent on the quality of our resiliency planning, and our ability, if any, to anticipate the nature of any such event that occurs.
If we or the Bank were to lose access to these liquidity sources, it could have a material adverse effect on our operations and financial condition. In addition, recent bank failures led to significant volatility in the financial services industry and to liquidity problems at certain institutions.
If we or the Bank were to lose access to these liquidity sources, it could have a material adverse effect on our operations and financial condition. In addition, bank failures during 2023 led to significant volatility in the financial services industry and to liquidity problems at certain institutions.
Information security risks continue to increase, in part because of the proliferation of new technologies, ongoing work-from-home arrangements, the use of the Internet and telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of organized crime, hackers, terrorists, activists, and other external parties, some of which may be linked to terrorist organizations or hostile foreign governments.
Information security risks continue to increase, in part because of the proliferation of new technologies, including artificial intelligence (“AI”), ongoing work-from-home arrangements, the use of the Internet and telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of organized crime, hackers, terrorists, activists, and other external parties, some of which may be linked to terrorist organizations or hostile foreign governments.
Direct investments, such as United States government and corporate securities and other investment vehicles (including money market mutual funds), generally pay higher rates of return than financial institutions because of the absence of federal insurance premiums, and a prolonged high-interest rate environment may cause the Bank to experience increased deposit migration.
Direct investments, such as U.S. government and corporate securities and other investment vehicles (including money market mutual funds), generally pay higher rates of return than financial institutions because of the absence of federal insurance premiums, and a prolonged high-interest rate environment may cause the Bank to experience increased deposit migration.
We are dependent on our reputation within our market area, as a trusted and responsible financial company, for all aspects of our relationships with customers, employees, vendors, third-party service providers and others with whom we conduct business or potential future business, particularly because our business is primarily concentrated in certain areas of Maine.
We are dependent on our reputation within our market area, as a trusted and responsible financial company, for all aspects of our relationships with customers, employees, vendors, third-party service providers and others with whom we conduct business or potential future business, particularly because our business is primarily concentrated in certain areas of Northern New England.
If these regions experience adverse economic, political or business conditions, such as prolonged elevated inflation and interest rates, or if they experience a pandemic or similar event, such as occurred during the COVID-19 pandemic, we would likely experience higher rates of loss and delinquency on these loans than if the loans were more geographically diverse.
If these regions experience adverse economic, political or business conditions, such as prolonged elevated inflation and interest rates, or if they experience a pandemic or similar event, we likely would likely higher rates of loss and delinquency on these loans than if the loans were more geographically diverse.
If we were to experience a significant outflow of deposits, we may face significantly increased funding costs, suffer significant losses and have a significantly reduced ability to raise new capital. As of December 31, 2023, brokered deposits made up 2% of our total deposits.
If we were to experience a significant outflow of deposits, we may face significantly increased funding costs, suffer significant losses and have a significantly reduced ability to raise new capital. As of December 31, 2024, brokered deposits made up 4% of our total deposits.
Because we primarily serve individuals and businesses located in Maine, a natural disaster likely would have a greater impact on our business, operations and financial condition than if our business were more geographically diverse.
Because we primarily serve individuals and businesses located in Northern New England, a natural disaster likely would have a greater impact on our business, operations and financial condition than if our business were more geographically diverse.
We could be held responsible for environmental liabilities of properties we acquired through foreclosure. In the course of business, we may acquire, through foreclosure, properties securing loans originated or purchased that are in default. Particularly in commercial real estate lending, there is a risk that material environmental violations could be discovered on these properties.
In the course of business, we may acquire, through foreclosure, properties securing loans originated or purchased that are in default. Particularly in commercial real estate lending, there is a risk that material environmental violations could be discovered on these properties.
As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our systems or to investigate and remediate vulnerabilities. System enhancements and updates may also create risks associated with implementing and integrating new 26 systems.
We have expended substantial resources to protect our systems and, as cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our systems or to investigate and remediate vulnerabilities. System enhancements and updates may also create risks associated with implementing and integrating new systems.
In addition, adverse economic, political or other events may affect certain industries in our markets more than others. For example, the COVID-19 pandemic and the resulting restrictions on individuals and economic activity adversely affected hospitality, transportation and commercial real estate industries in Maine.
In addition, adverse economic, political or other events may affect certain industries in our markets more than others. For example, the COVID-19 pandemic adversely affected hospitality, transportation and commercial real estate industries in Maine.
Depending on the impact of current international hostilities on general economic and market conditions, there is a risk that adverse conditions could occur or worsen, including supply chain disruptions; higher inflation; decreased demand for the Company’s products and services or those of its borrowers, which could increase credit risk; challenges related to maintaining sufficient qualified personnel due to labor shortages, talent attrition, employee illness, or willingness to return to work; and disruptions to business operations at the Company and at counterparties, vendors and other service providers.
Depending on the impact of external events on general economic and market conditions, there is a risk that adverse conditions could occur or worsen, including supply chain disruptions; higher inflation; decreased demand for our products and services or those of our borrowers, which could increase credit risk; challenges related to maintaining sufficient qualified personnel due to labor shortages, talent attrition, employee illness, or willingness to return to work; and disruptions to our business operations or those of our counterparties, vendors and other service providers.
Our business may be adversely affected if we are unable to attract and retain qualified employees. The Company’s employees are its most important resource, and in many areas of the financial services industry, competition for qualified personnel is intense.
Our business may be adversely affected if we are unable to attract and retain qualified employees. Competition for qualified personnel is intense in many areas of the financial services industry.
A cybersecurity breach or cyberattack could persist for an extended period before being detected and could result in theft of sensitive data or disruption of our transaction processing systems. While we maintain a system of internal controls and procedures, any of these results could have a material adverse effect on our reputation, business, financial condition, results of operations or liquidity.
A cybersecurity breach or cyberattack could persist for an extended period before being detected and could result in theft of sensitive data or disruption of our transaction processing systems. Any of these results could have a material adverse effect on our reputation, business, financial condition, results of operations or liquidity.
Other future changes in any of these conditions, including as a result of the COVID-19 pandemic, the war in Ukraine, conflict in the Middle East, the threat or occurrence of a U.S. sovereign default or government shutdown, a downgrade, or perceived future downgrade, in the U.S. sovereign credit rating or outlook, disruptions in the financial services industry or other future events that we are unable to predict, could result in increases in loan delinquencies and non-performing assets, decreases in loan collateral values, the value of our investment portfolio and demand for our products and services or otherwise adversely affect our financial condition or results of operations.
Future changes in any of these conditions, whether related to pandemic, geopolitical conflict, the threat or occurrence of a U.S. sovereign default or government shutdown, a downgrade, or perceived future downgrade, in the U.S. sovereign credit rating or outlook, disruptions in the financial services industry or other future events that we are unable to predict, could result in increases in loan delinquencies and non-performing assets, decreases in loan collateral values, the value of our investment portfolio and demand for our products and services or otherwise adversely affect our financial condition or results of operations.
See “Fluctuations in market interest rates have in the past adversely affected, and may in the future adversely affect, our performance” below. Any of these effects, or others that we are not able to predict, could adversely affect our financial condition or results of operations.
Any of these effects, or others that we are not able to predict, could adversely affect our financial condition or results of operations. Fluctuations in market interest rates have in the past adversely affected, and may in the future adversely affect, our performance.
Credit Risk and Lending Business Risk Our loans are concentrated in certain areas of Maine and adverse conditions in those markets could adversely affect our operations.
Credit Risk and Lending Business Risk Our loans are concentrated in certain areas of Northern New England and adverse conditions in those markets could adversely affect our operations.
Although we believe we have appropriate information security controls and procedures, we may not be able to anticipate, detect, or implement effective preventative measures against all potential threats, particularly because the techniques used by cyber criminals change frequently, often are not recognized until launched and can be initiated from a variety of sources.
We may not be able to anticipate, detect, or implement effective preventative measures against all potential threats, particularly because the techniques used by cyber criminals change frequently, often are not recognized until launched and can be initiated from a variety of sources.
Valuations of financial instruments in future periods may result in significant changes in the value of financial instruments we own. At the time of any disposition of such financial instruments, the price that we realize will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value.
At the time of any disposition of such financial instruments, the price that we realize will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value.
We primarily serve individuals and businesses located in the state of Maine, with 68% of our loan portfolio concentrated among borrowers in Maine as of December 31, 2023, with higher concentrations of exposure in Cumberland, Kennebec, Knox and York counties.
Prior to 2025, we primarily served individuals and businesses located in the state of Maine, with 68% of our loan portfolio concentrated among borrowers in Maine as of December 31, 2024, with higher concentrations of exposure in Cumberland, Kennebec, Knox and York counties.
High vacancy rates in commercial properties, including higher vacancy rates experienced during and after the COVID-19 pandemic have affected, and in the future may affect, the value of commercial real estate, including by causing the value of properties securing commercial real estate loans to be less than the amounts owed on such loans .
High vacancy rates in commercial properties have affected, and in the future may affect, the value of commercial real estate, including by causing the value of properties securing commercial real estate loans to be less than the amounts owed on such loans .
Changes in domestic and foreign economic conditions, volatility in financial markets, and general trends in business and finance, all of which are beyond our control, could adversely impact the market value of these assets and the fee revenues derived from the management of these assets. 17 Continued market volatility has impacted, and may in the future impact, our business and the value of our common stock.
Changes in domestic and foreign economic conditions, volatility in financial markets, and general trends in business and finance, all of which are beyond our control, could adversely impact the market value of these assets and the fee revenues derived from the management of these assets.
Risks associated with climate change are continuing to evolve rapidly, making it difficult to assess the effects of climate change on our business, and we expect that climate change-related risks will continue to evolve and increase over time.
Risks associated with climate change are continuing to evolve rapidly, making it difficult to assess the effects of climate change on our business, and we expect that climate change-related risks will continue to evolve and increase over time. Acts of terrorism, pandemics and other external events could harm our business.
If a counterparty should default, become insolvent, declare bankruptcy, or otherwise cease to exist, the value of our investment may be impaired. This could result in provision for credit losses or realized losses being charged against future income.
Any such losses could materially and adversely affect our results of operations. In addition, if a counterparty should default, become insolvent, declare bankruptcy, or otherwise cease to exist, the value of our investment securities may be impaired. This could result in provision for credit losses or realized losses being charged against future income.
In addition, volatility and uncertainty related to inflation and its effects, which could potentially contribute to poor economic conditions, may contribute to or enhance some of the risks described in this section.
In addition, volatility and uncertainty related to inflation and its effects may contribute to or enhance some of the risks described in this section.
Market conditions over the last several years, including those resulting from the COVID-19 pandemic, have involved unprecedented dislocations and highlight the limitations inherent in using historical data to manage risk.
Market conditions over the last several years have involved unprecedented dislocations and highlight the limitations inherent in using historical data to manage risk.
Because market interest rates may change by differing magnitudes and at different times, significant changes in interest rates over an extended period of time could reduce overall net interest income. In response to inflation, the Federal Reserve raised targeted Effective Federal Funds Rate significantly during 2022 and through July 2023 to a target range of 5.25% – 5.5%.
Because market interest rates may change by differing magnitudes and at different times, significant changes in interest rates over an extended period of time could reduce overall net interest income. In response to inflation, the Federal Reserve raised targeted Effective Federal Funds Rate throughout 2022 and 2023, and in 2024 began to lower interest rates.
The Company has suffered, and could in the future suffer, adverse consequences to the extent that pandemics, such as the COVID-19 pandemic, terrorist activities, civil unrest, international hostilities, including Russia’s invasion of Ukraine and conflict in the Middle East, or other external events affect the financial markets or the economy in general or in any region in which the Company, or third parties on which the Company relies, operate.
The Company has suffered, and could in the future suffer, adverse consequences to the extent that pandemics, terrorist activities, civil unrest, international hostilities, or other external events affect the financial markets or the economy in general or in any region in which the Company, or third parties on which the Company relies, operate.
Our ability to manage liquidity will be severely constrained if we are unable to maintain access to funding or if adequate financing is not available to accommodate future growth at acceptable costs, or if there are unforeseen outflows of cash or collateral, such as that seen by certain financial institutions during 2020 when corporate customers drew on revolving credit facilities at a historic pace in response to COVID-19 or by certain banks that experienced large and sudden outflows of deposits in 2023.
Our ability to manage liquidity will be severely constrained if we are unable to maintain access to funding or if adequate financing is not available to accommodate future growth at acceptable costs, or if there are unforeseen outflows of cash or collateral, such as that seen by certain banks that experienced large and sudden outflows of deposits in 2023.
Climate change may result in reduced availability of insurance for our borrowers, including insurance that protects property pledged as collateral, or disrupt their operations, which could increase our credit risk by diminishing borrowers’ repayment capacity or collateral values. Efforts to transition to a low-carbon economy could result in new and/or more stringent regulatory requirements.
Climate change may result in reduced availability of insurance for our borrowers, including insurance that protects property pledged as collateral, or disrupt their operations, which could increase our credit risk by diminishing borrowers’ repayment capacity or collateral values.
In addition, we may incur significant training, licensing, maintenance, consulting and amortization expenses during and after systems implementations, and any such costs may continue for an extended period of time. We rely on other companies to provide key components of our business infrastructure.
In addition, we may incur significant training, licensing, maintenance, consulting and amortization expenses during and after systems implementations, and any such costs may continue for an extended period of time.
For example, higher inflation could reduce demand for our products, adversely affect the creditworthiness of our borrowers or result in lower values for our interest-earning assets and investment securities. Higher inflation could also lead to higher interest rates, which could negatively affect our performance.
For example, higher inflation has in the past reduced, and could in the future reduce, demand for our products, adversely affect the creditworthiness of our borrowers or result in lower values for our interest-earning assets and investment securities.
Volatility due to failures of other banks or general uncertainty regarding the health of banks may affect customer deposit behavior and cause deposit withdrawals.
In addition, volatility due to failures of other banks or general uncertainty regarding the health of banks may affect customer deposit behavior and cause deposit withdrawals, even if we are not experiencing the same uncertainty.
Climate change presents several risks, including (i) operational risk from the physical effects of climate events on our facilities and other assets, on our vendors’ facilities and on our customers’ assets, including real estate pledged as collateral for our loans; and (ii) transitional risks, including new or more stringent regulatory requirements and potential effects on our reputation and/or changes in our business as a result of our climate change practices, our carbon footprint and our business relationships with customers who operate in carbon-intensive industries.
Climate change presents several risks, including (i) operational risk from the physical effects of climate events on our facilities and other assets, on our vendors’ facilities and on our customers’ assets, including real estate pledged as collateral for our loans; and (ii) transitional risks, including new or more stringent regulatory requirements and potential effects on our reputation and/or changes in our business as a result of our climate change practices, our carbon footprint and our business relationships with customers who operate in carbon-intensive industries. 27 Natural disasters can disrupt our operations, result in damage to our properties, reduce or destroy the value of the collateral for our loans and negatively affect the economies in which we operate, which could have a material adverse effect on our results of operations and financial condition.
Fluctuations in market interest rates have in the past adversely affected, and may in the future adversely affect, our performance. Our profitability depends to a large extent upon our net interest income, which is the difference between interest income earned from loans and investments and the interest expense paid on deposits and borrowings.
Our profitability depends to a large extent upon our net interest income, which is the difference between interest income earned from loans and investments and the interest expense paid on deposits and borrowings.
Due to strong competition, Camden National Wealth Management may not be able to attract and retain clients at current levels. Competition is strong as there are numerous well-established and successful investment management and wealth advisory firms including commercial banks and trust companies, investment advisory firms, mutual fund companies, stock brokerage firms, and other financial companies.
Competition is strong as there are numerous well-established and successful investment management and wealth advisory firms including commercial banks and trust companies, investment advisory firms, mutual fund companies, stock brokerage firms, and other financial companies.
Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. From time to time, the FASB and the SEC change the financial accounting and reporting standards that govern the preparation of our financial statements.
From time to time, the FASB and the SEC change the financial accounting and reporting standards that govern the preparation of our financial statements. These changes can be hard to anticipate and implement and can materially impact how we record and report our financial condition and results of operations.
Camden National Wealth Management may be negatively affected by changes in economic and market conditions. A substantial portion of income from fiduciary services is dependent on the market value of wealth management assets under management, which are primarily marketable securities.
A substantial portion of income from fiduciary services is dependent on the market value of wealth management assets under management, which are primarily marketable securities.
We maintain a diversified securities portfolio and have exposure to many different counterparties, and we routinely execute transactions with counterparties in the financial industry, including brokers and dealers, other commercial banks, investment banks, mutual and hedge funds, and other financial institutions.
We maintain a diversified securities portfolio and have exposure to many different counterparties, and we routinely execute transactions with counterparties in the financial services industry.
In addition, other fintechs have partnered with existing banks to allow them to offer deposit and loan products to their customers. Regulatory changes may also make it easier for fintechs to partner with banks and offer deposit products.
In addition, other fintechs have partnered with existing banks to allow them to offer deposit and loan products to their customers. Regulatory changes may also make it easier for fintechs to partner with banks and offer deposit products, or increase the ability of fintechs to compete through the use of non-banking products such as cryptocurrency or alternative payment systems.
The adverse effects of pandemics, terrorist activities, civil unrest, international hostilities or other external events also could be increased to the extent that there is a lack of preparedness on the part of national or regional emergency responders or on the part of other organizations and businesses that the Company transacts with, particularly those that it depends upon, but has no control over.
The adverse effects of pandemics, terrorist activities, civil unrest, international hostilities or other external events also could be increased to the extent that there is a lack of preparedness on the part of national or regional emergency responders or on the part of other organizations and businesses that we transact with, particularly those that we depend upon, but have no control over. 28 Accounting and Tax Risk Our financial statements are based in part on assumptions and estimates, which, if wrong, could cause unexpected losses in the future.
In addition, the value of securities, derivatives and other financial instruments which we own can be affected materially by market volatility. Volatility, illiquid market conditions or other disruptions in the financial markets may make it difficult to value certain financial instruments.
Volatility, illiquid market conditions or other disruptions in the financial markets may make it difficult to value certain financial instruments. Valuations of financial instruments in future periods may result in significant changes in the value of financial instruments we own.
These changes can be hard to anticipate and implement and can materially impact how we record and report our financial condition and results of operations.
Changes in accounting standards can be difficult to predict and can materially impact how we record and report our financial condition and results of operations. Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations.
Recent increases in short-term interest rates have resulted in and are expected to continue to result in more intense competition in deposit pricing. Competition and increasing interest rates have caused us to increase the interest rates we pay on deposits.
Increases in short-term interest rates throughout 2022 and 2023 resulted in more intense competition in deposit pricing. Competition and increasing interest rates caused us to increase the interest rates we pay on deposits. Although the Federal Reserve began to lower short-term interest rates in 2024, competition for deposits remains elevated.
We might not be successful in developing or introducing new products and services, adapting to changing customer preferences and spending and saving habits (which may be altered significantly and suddenly), achieving market acceptance of our products and services, or sufficiently developing and maintaining loyal customer relationships. 20 Camden National Wealth Management faces intense competition in attracting and retaining clients.
We might not be successful in developing or introducing new products and services, adapting to changing customer preferences and spending and saving habits (which may be altered significantly and suddenly), achieving market acceptance of our products and services, or sufficiently developing and maintaining loyal customer relationships. 20 Sustainability-related topics as well as companies’ actions and initiatives on such issues, have received significant attention from a wide range of stakeholders.
Government action and legislation may also impact us and the value of our common stock. We cannot predict what impact, if any, future volatility will have on our business or share price and for these and other reasons our shares of common stock may trade at a price lower than that at which they were purchased.
Government action and legislation may also impact us and the value of our common stock. We cannot predict what impact, if any, future volatility will have on our business or share price. In addition, the value of securities, derivatives and other financial instruments which we own can be affected materially by market volatility.
Failure to properly utilize system enhancements that are implemented in the future could result in impairment charges that adversely impact our financial condition and results of operations and could result in significant costs to remediate or replace the defective components.
Due to the complexity and interconnectedness of information technology systems, the process of enhancing our systems can itself create a risk of systems disruptions and security issues. Failure to properly utilize system enhancements that are implemented in the future could result in impairment charges and could result in significant costs to remediate or replace the defective components.
If the Company provides inadequate succession planning, or is unable to continue to retain and attract qualified employees, this could result in a material adverse effect on the Company’s performance, including its competitive position. COVID-19 had significant effects on labor and employment, including heightened pressures on employers to increase compensation and provide work-from-home and other flexible working arrangements.
If the Company provides inadequate succession planning, or is unable to continue to retain and attract qualified employees, this could result in a material adverse effect on the Company’s performance, including its competitive position. We could be held responsible for environmental liabilities of properties we acquired through foreclosure.
Any impairment charge would have a negative effect on our shareholders’ equity and financial results and may cause a decline in our stock price. 29 Changes in accounting standards can be difficult to predict and can materially impact how we record and report our financial condition and results of operations.
We may be required to take an impairment charge in the future. Any impairment charge would have a negative effect on our shareholders’ equity and financial results and may cause a decline in our stock price. On January 2, 2025, we completed the acquisition of Northway.
Ongoing legislative or regulatory uncertainties and changes regarding climate risk management and practices may result in higher regulatory, compliance, credit and reputational risks and costs, and failure to comply with any new laws or regulations could result in legal or regulatory sanctions and harm to our reputation.
Failure to comply with any applicable laws or regulations could result in legal or regulatory sanctions and harm to our reputation. Failure to adequately consider transition risks in our operations could lead to a loss of market share, lower revenues, decreased asset values and higher credit costs.
From time to time, we are named or threatened to be named as defendants in various lawsuits, including class actions, arising from our business activities.
For example, banking organizations have been subject to claims regarding patent infringement or other violations of intellectual property rights in recent years which, in some cases, have resulted in large judgments against the banks. From time to time, we are named or threatened to be named as defendants in various lawsuits, including class actions, arising from our business activities.
Given the significant judgments involved, there is risk that material provisions may be recorded to establish an allowance for credit losses resulting in realized losses. In 2023, we fully wrote-off a $1.8 million Signature Bank corporate bond, as Signature Bank failed in March 2023, and we recognized the charge-off through provisions for credit losses on our investment securities portfolio.
Given the significant judgments involved, there is risk that material provisions may be recorded to establish an allowance for credit losses resulting in realized losses. 17 Camden National Wealth Management may be negatively affected by changes in economic and market conditions.
These conditions may continue or worsen if the Federal Reserve continues to hold interest rates at the current level or raise interest rates in response to inflationary pressures or other economic conditions. Volatility in interest rates can also result in customer deposits flowing away from financial institutions into direct investments.
Higher funding costs may continue to reduce our net interest margin and net interest income. 16 Volatility in interest rates can also result in customer deposits flowing away from financial institutions into direct investments.
We could be adversely affected by the actions or commercial soundness, strength or stability of other financial institutions.
This uncertainty complicates business planning for our customers in certain industries, and any resulting changes in our customers’ spending and borrowing patterns in response to this uncertainty could have an adverse effect on our business and results of operations. We could be adversely affected by the actions or commercial soundness, strength or stability of other financial institutions.
Removed
For example, economic concerns were heightened during the COVID-19 pandemic from early 2020 through 2022. In addition, bank failures in March and April of 2023 prompted by sudden and significant withdrawals of deposits at the failing banks resulted in significant volatility in the stock prices of certain financial services institutions.
Added
For example, changes in these conditions caused by the COVID-19 pandemic, geopolitical events such as Russia’s invasion in Ukraine, and inflation adversely affected our business in prior periods.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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The Company’s process for identifying, assessing, managing and prioritizing cybersecurity risks throughout the Company includes: • A third party risk assessment program for the Company’s third party vendors that access the Company’s data (each, a “Vendor”) to ensure that all Vendors meet the Company’s cybersecurity requirements, including, periodic risk assessments of Vendors, monitoring Vendor compliance with the Company’s cybersecurity requirements, and a requirement that all contracts with Vendors include provisions requiring the Vendor to notify the Company of any cyber incident, and/or to maintain minimum levels of cybersecurity insurance; • A security awareness program that includes training employees on best practices for securing the Company’s data, as well as regular social engineering testing to keep employees informed of cybersecurity threats and to train them to look for malicious emails and other potential cybersecurity threats; • A dedicated information security team that monitors threats and vulnerabilities that arise, and regularly performs threat intelligence and vulnerability management; • The Company’s engagement of a third party to conduct periodic independent testing of the Company’s cybersecurity defenses to confirm that the defenses are effective; • A Managed Detection and Response (“MDR”) service that continuously monitors the Company’s systems and alerts the Company’s information security team of any detected anomalies or suspicious activity and stops any event that is deemed dangerous to the Company’s systems or networks; • An Incident Response Plan (“IRP”) and Business Continuity Plan (“BCP”) which outline steps to be taken during a cyber incident and to recover systems and continue business operations following a cyber incident; and 30 • A Cybersecurity Incident Response Team (“CSIRT”) that tracks cyber incidents, including those that affect third parties that are handling the Company’s data.
The Company’s process for identifying, assessing, managing and prioritizing cybersecurity risks throughout the Company includes: • A third party risk assessment program for the Company’s third party vendors that access the Company’s data (each, a “Vendor”) to ensure that all Vendors meet the Company’s cybersecurity requirements, including, periodic risk assessments of Vendors, monitoring Vendor compliance with the Company’s cybersecurity requirements, and a requirement that all contracts with Vendors include provisions requiring the Vendor to notify the Company of any cyber incident, and/or to maintain minimum levels of cybersecurity insurance; • A security awareness program that includes training employees on best practices for securing the Company’s data, as well as regular social engineering testing to keep employees informed of cybersecurity threats and to train them to look for malicious emails and other potential cybersecurity threats; • A dedicated information security team that monitors threats and vulnerabilities that arise, and regularly performs threat intelligence and vulnerability management; • The Company’s engagement of a third party to conduct periodic independent testing of the Company’s cybersecurity defenses to confirm that the defenses are effective; • A Managed Detection and Response (“MDR”) service that continuously monitors the Company’s systems and alerts the Company’s information security team of any detected anomalies or suspicious activity and stops any event that is deemed dangerous to the Company’s systems or networks; • An Incident Response Plan (“IRP”) and Business Continuity Plan (“BCP”) which outline steps to be taken during a cyber incident and to recover systems and continue business operations following a cyber incident; and • A Cybersecurity Incident Response Team (“CSIRT”) that tracks cyber incidents, including those that affect third parties that are handling the Company’s data.
The CRO and the DIS oversee the information security department’s implementation and maintenance of the cybersecurity security risk management program, including oversight of Vendors and regular reporting to the Board of Directors and its Audit and Technology Committees on the effectiveness of the cybersecurity risk management program.
The CRO and the DIS oversee the information security department’s implementation and maintenance of the cybersecurity risk management program, including oversight of Vendors and regular reporting to the Board of Directors and its Audit and Technology Committees on the effectiveness of the 30 cybersecurity risk management program.
Cybersecurity Threats During the fiscal year ended December 31, 2023, the Company did not identify any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected, or that are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition other than the risks described in Item 1A.
Cybersecurity Threats During the fiscal year ended December 31, 2024, the Company did not identify any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected, or that are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition other than the risks described in Item 1A.
The DIS has held senior management positions in information security for the past ten years. The DIS holds several industry certifications including Certified Information Systems Security Professional (“CISSP”), Certified Information Systems Auditor (“CISA”), Certified in Risk and Management Systems Controls (“CRISC”) and Certified Data Privacy Solutions Engineer (“CDPSE”).
The DIS holds several industry certifications including Certified Information Systems Security Professional (“CISSP”), Certified Information Systems Auditor (“CISA”), Certified in Risk and Management Systems Controls (“CRISC”) and Certified Data Privacy Solutions Engineer (“CDPSE”).
Prior to becoming CRO, he served as SVP and Director of Information Security & ERM for six years and prior to that served five years as Vice President and Senior Information Security Officer of the Company.
Prior to becoming CRO, he served as SVP and Director of Information Security & ERM for six years and prior to that served five years as Vice President and Senior Information Security Officer of the Company. Prior to joining the Company, the CRO had a ten year career in information technology and began his career serving with the U.S.
Prior to joining the Company, the CRO had a ten year career in information technology and began his career serving with the United States Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications. The Company’s DIS joined the Company in 2023 and has over 20 years of experience in information technology and cybersecurity.
Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications. The Company’s DIS joined the Company in 2023 and has over 20 years of experience in information technology and cybersecurity. The DIS has held senior management positions in information security for the past ten years.

Item 2. Properties

Properties — owned and leased real estate

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Item 2. Properties The Company owns its principal executive offices, located at 2 Elm Street, Camden, Maine, and the Company leases additional executive offices at 3 Canal Plaza, Portland, Maine.
Item 2. Properties As of December 31, 2024, the Company owns its principal executive offices, located at 2 Elm Street, Camden, Maine, and the Company leases additional executive offices at 3 Canal Plaza, Portland, Maine.
None of the properties owned by the Company are subject to a mortgage or other encumbrance. All facilities are fully utilized and considered suitable and adequate for the purposes intended. For additional information regarding the Company's premises and equipment and lease obligations see Notes 5 and 6 of the consolidated financial statements within Item 8. Financial Statements and Supplementary Data.
All facilities are fully utilized and considered suitable and adequate for the purposes intended. For additional information regarding the Company's premises and equipment and lease obligations see Notes 6 and 7 of the consolidated financial statements within Item 8. Financial Statements and Supplementary Data.
The Company also owns and operates a service center in Rockport, Maine, and owns or leases, and operates, 56 branches located throughout Maine, a branch in Portsmouth, New Hampshire, a commercial loan production office in Manchester, New Hampshire, and a mortgage loan production office in Braintree, Massachusetts.
The Company also owns and operates a service center in Rockport, Maine, and owns or leases, and operates, 56 branches located throughout Maine, a branch in Portsmouth, New Hampshire, and a commercial loan production office in Manchester, New Hampshire. None of the properties owned by the Company are subject to a mortgage or other encumbrance.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Item 3. Legal Proceedings The Company is currently involved, and from time to time in the future may become involved, in various legal claims that 31 arise in the normal course of the Company’s business.
Item 3. Legal Proceedings The Company is currently involved, and from time to time in the future may become involved, in various legal claims that arise in the normal course of the Company’s business.
As of December 31, 2023 and 2022, the Company did not maintain material reserves against legal claims. Item 4. Mine Safety Disclosures Not applicable. 32 PART II
As of December 31, 2024 and 2023, the Company did not maintain material reserves against legal claims. Item 4. Mine Safety Disclosures Not applicable. 31 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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For purposes of comparison, the graph illustrates comparable shareholder returns of the S&P U.S. SmallCAP Banks Index and the Russell 2000 Stock Index. The graph assumes a $100 investment on December 31, 2018 in the Company’s common stock and each of the foregoing indices and assumes the reinvestment of all dividends.
For purposes of comparison, the graph illustrates comparable shareholder returns of the S&P U.S. SmallCAP Banks Index and the Russell 2000 Index. The graph assumes a $100 investment on December 31, 2019 in the Company’s common stock and each of the foregoing indices and assumes the reinvestment of all dividends.
The comparisons in the graph are based on historical data and are not indicative of, nor intended to forecast, future performance of the Company’s common stock. 33 Stock Performance Graph In January 2023, the Board of Directors approved a common stock repurchase program, authorizing management to repurchase up to 750,000 shares, or approximately 5%, of the Company's outstanding common stock, that had an expiration date of the earlier of (i) reaching the authorized share repurchase amount, (ii) vote by the Board of Directors to terminate the plan, or (iii) one year.
The comparisons in the graph are based on historical data and are not indicative of, nor intended to forecast, future performance of the Company’s common stock. 32 Stock Performance Graph In January 2024, the Board of Directors approved a common stock repurchase program, authorizing management to repurchase up to 750,000 shares, or approximately 5%, of the Company's outstanding common stock, that had an expiration date of the earlier of (i) reaching the authorized share repurchase amount, (ii) vote by the Board of Directors to terminate the plan, or (iii) one year.
For further information on dividend restrictions, refer to Item 1. “Business—Supervision and Regulation” and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources.” The following graph illustrates the annual percentage change in the cumulative total shareholder return of the Company’s common stock for the period December 31, 2018 through December 31, 2023.
For further information on dividend restrictions, refer to Item 1. “Business—Supervision and Regulation” and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources.” The following graph illustrates the annual percentage change in the cumulative total shareholder return of the Company’s common stock for the period December 31, 2019 through December 31, 2024.
The high and low closing sales prices (as quoted by NASDAQ for 2023 and 2022) and cash dividends declared per share of the Company’s common stock, by calendar quarter for the past two years, were as follows: 2023 2022 Market Price Dividends Declared per Share Market Price Dividends Declared per Share High Low High Low First Quarter $ 42.35 $ 35.43 $ 0.42 $ 51.63 $ 46.72 $ 0.40 Second Quarter 35.73 28.98 0.42 47.94 41.93 0.40 Third Quarter 36.75 28.20 0.42 49.01 42.60 0.40 Fourth Quarter 38.89 26.82 0.42 44.07 40.38 0.42 As of February 28, 2024, there were 14,566,850 shares of the Company’s common stock outstanding, and there were approximately 1,000 holders of record of the Company’s common stock.
The high and low closing sales prices (as quoted by NASDAQ for 2024 and 2023) and cash dividends declared per share of the Company’s common stock, by calendar quarter for the past two years, were as follows: 2024 2023 Market Price Dividends Declared per Share Market Price Dividends Declared per Share High Low High Low First Quarter $ 37.80 $ 30.44 $ 0.42 $ 42.35 $ 35.43 $ 0.42 Second Quarter 33.40 28.65 0.42 35.73 28.98 0.42 Third Quarter 41.68 32.01 0.42 36.75 28.20 0.42 Fourth Quarter 49.57 38.75 0.42 38.89 26.82 0.42 As of February 25, 2025, there were 16,864,810 shares of the Company’s common stock outstanding, and there were approximately 1,000 holders of record of the Company’s common stock.
As of December 31, 2023, the Company repurchased 65,692 shares at an average price of $30.44, none of which were repurchased during the fourth quarter of 2023. This repurchase program expired after one year in January 2024.
As of December 31, 2024, the Company repurchased 50,000 shares at an average price of $32.19, none of which were repurchased during the fourth quarter of 2024. This repurchase program expired in January 2025.
Issuer's Purchases of Equity Securities Period Total number of shares (or units) purchased Average price paid per share (or unit) Total number of shares (or units) purchased as part of publicly announced plans or programs Maximum number (or appropriate dollar value) of shares (or units) that may yet be purchased under the plans or programs October 1-31, 2023 — $ — — 684,308 November 1-30, 2023 — — — 684,308 December 1-31, 2023 — — — 684,308 Total — $ — — 684,308 In January 2024, the Board of Directors authorized a common stock repurchase program authorizing management to repurchase up to 750,000 shares, or approximately 5%, of the Company's outstanding common stock.
Issuer's Purchases of Equity Securities Period Total number of shares (or units) purchased Average price paid per share (or unit) Total number of shares (or units) purchased as part of publicly announced plans or programs Maximum number (or appropriate dollar value) of shares (or units) that may yet be purchased under the plans or programs October 1-31, 2024 — $ — — 700,000 November 1-30, 2024 — — — 700,000 December 1-31, 2024 — — — 700,000 Total — $ — — 700,000 33 Item 6. [Reserved] Not applicable.
Removed
This program replaces the 2023 repurchase program and will terminate upon the earlier of (i) reaching the authorized share repurchase amount, (ii) vote by the Board of Directors to terminate the plan, or (iii) January 5, 2024. 34 Item 6. [Reserved] Not applicable.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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We designate our debt securities as AFS or HTM based on our intent and investment strategy and they are carried at fair value or amortized cost, respectively. Our FHLBB and FRB common stock is carried at cost, and our mutual fund investments are carried at fair value.
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.
MBS and CMO debt security cash flow will vary depending on the interest rate environment because borrowers may have the right to call or prepay obligations with or without prepayment penalties. The rise in interest rates during 2023 and 2022 resulted in slowing cash flows.
MBS and CMO debt security cash flow will vary depending on the interest rate environment because borrowers may have the right to call or prepay obligations with or without prepayment penalties. The rise in interest rates during 2022 and 2023 resulted in slowing cash flows.
Strategic Alignment Risk. Strategic alignment risk is the current and prospective impact on earnings or capital arising from adverse business decisions, improper implementation of decisions, or lack of responsiveness to industry changes.
Strategic alignment risk is the current and prospective impact on earnings or capital arising from adverse business decisions, improper implementation of decisions, or lack of responsiveness to industry changes.
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. Regulatory assessments are the costs incurred and paid to various regulatory agencies, including the FDIC and OCC.
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. 49 Regulatory assessments are the costs incurred and paid to various regulatory agencies, including the FDIC and OCC.
CRITICAL ACCOUNTING POLICIES Critical accounting policies 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.
CRITICAL ACCOUNTING ESTIMATES 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.
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. 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.
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.
This risk is a function of the compatibility of the Company's strategic goals, the business strategies developed to achieve those goals, the resources deployed against these goals, and the quality of implementation. Reputation Risk. Reputation risk is the current and prospective impact on earnings and capital arising from negative public opinion.
This risk is a function of the compatibility of the Company's strategic goals, the business strategies developed to achieve those goals, the resources deployed against these goals, and the quality of implementation. 71 Reputation Risk. Reputation risk is the current and prospective impact on earnings and capital arising from negative public opinion.
The Company continues to dedicate significant resources to monitor and manage credit risk throughout our loan portfolio and includes management and board-level oversight as follows: • The Credit Risk team, Collection and Special Assets team and the Credit Risk Policy Committee, which is an internal management committee comprised of various executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Risk, and Commercial and Retail Banking, oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, and maintain the integrity of the loan rating system. 60 • The adequacy of the ACL is overseen by the Management Provision Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Compliance, and Commercial and Retail Banking.
The Company continues to dedicate significant resources to monitor and manage credit risk throughout our loan portfolio and includes management and board-level oversight as follows: • The Credit Risk team, Collection and Special Assets team and the Credit Risk Policy Committee, which is an internal management committee comprised of various executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Risk, and Commercial and Retail Banking, oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, and maintain the integrity of the loan rating system. 57 • The adequacy of the ACL is overseen by the Management Provision Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Collections and Special Assets, Compliance, and Commercial and Retail Banking.
Unlike many industrial companies, substantially all of our assets and virtually all of our liabilities are monetary in nature. As a result, interest rates have a more significant impact on our performance than the general level of inflation.
Unlike many industrial companies, substantially all of our assets and virtually all of 46 our liabilities are monetary in nature. As a result, interest rates have a more significant impact on our performance than the general level of inflation.
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 life on these securities was 8.5 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.
Operational risk is evident in each product and service offered by the Company and encompasses product development and delivery, transaction processing, systems development, change management, complexity of products and services, human resource elements and the internal control environment.
Operational risk is evident in each product and service offered by the Company and encompasses product development and delivery, transaction processing, systems development, change management, complexity of products and services, human resource elements and the 70 internal control environment.
We consider the ACL on loans to be a critical accounting policy given the uncertainty in evaluating the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of the loans in its portfolio.
We consider the ACL on loans to be a critical accounting estimate given the uncertainty in evaluating the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of the loans in its portfolio.
We assessed our loss factors again in the fourth quarter of 2023 and there were no changes made to the ACL on loans calculation for reporting as of December 31, 2023. • Forecast Period and Reversion speed: The company uses a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers.
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. • Forecast Period and Reversion speed: The company uses a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers.
Due to the potential for unexpected fluctuations in both deposits and loans, active management of liquidity is necessary. We maintain various sources of funding and levels of liquid assets and monitor liquidity in accordance with internal guidelines and all applicable regulatory requirements. At December 31, 2023 and 2022, the Company's liquidity level exceeded its target.
Due to the potential for unexpected fluctuations in both deposits and loans, active management of liquidity is necessary. We maintain various sources of funding and levels of liquid assets and monitor liquidity in accordance with internal guidelines and all applicable regulatory requirements. At December 31, 2024 and 2023, the Company's liquidity level exceeded its target.
The Company's residential mortgage loan portfolio is also a significant source of contingent liquidity for the Company that could be accessed in a reasonable time period through the sale of loans on the secondary market, as needed. As of December 31, 2023, qualifying loans with a book value of $1.9 billion were pledged as collateral.
The Company's residential mortgage loan portfolio is also a significant source of contingent liquidity for the Company that could be accessed in a reasonable time period through the sale of loans on the secondary market, as needed. As of December 31, 2024, qualifying loans with a book value of $1.9 billion were pledged as collateral.
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.
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.
(2) Reported on a tax-equivalent basis calculated using a 21% tax rate, including certain commercial loans. (3) Non-accrual loans and loans held for sale are included in total average loans. 49 The following table presents certain information on a fully-taxable equivalent basis regarding changes in interest income and interest expense for the periods indicated.
(2) Reported on a tax-equivalent basis calculated using a 21% tax rate, including certain commercial loans. (3) Non-accrual loans and loans held for sale are included in total average loans. 45 The following table presents certain information on a fully-taxable equivalent basis regarding changes in interest income and interest expense for the periods indicated.
Should asset quality metrics deteriorate in 2024, the costs associated with OREO, collection and foreclosure efforts likely would increase. 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.
Should asset quality metrics deteriorate in 2025, the costs associated with OREO, collection and foreclosure efforts likely would increase. 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.
At December 31, 2023 and 2022, 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.
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.
Refer to Note 19 of the consolidated financial statements for further discussion of income taxes and related deferred tax assets and liabilities. 2022 Operating Results as Compared to 2021 Operating Results Results of operations for the year ended December 31, 2022 compared to the year ended December 31, 2021 can be found in Item 7.
Refer to Note 19 of the consolidated financial statements for further discussion of income taxes and related deferred tax assets and liabilities. 2023 Operating Results as Compared to 2022 Operating Results Results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022 can be found in Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The discussion below focuses on the factors affecting our consolidated results of operations and financial condition at and for the year ended December 31, 2023, and where appropriate, factors that may affect our future financial performance, unless stated otherwise.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The discussion below focuses on the factors affecting our consolidated results of operations and financial condition at and for the year ended December 31, 2024, and where appropriate, factors that may affect our future financial performance, unless stated otherwise.
The significant key assumptions used with the ACL on loans calculation at December 31, 2023 and 2022 using the CECL methodology, included: • Macroeconomic factors (loss drivers): Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period.
The significant key assumptions used with the ACL on loans calculation at December 31, 2024 and 2023 using the CECL methodology, included: • Macroeconomic factors (loss drivers): Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period.
Refer to Note 12 of the consolidated financial statements for further discussion of our derivatives and hedge instruments. 71 CAPITAL RESOURCES As part of our goal to operate a safe, sound and profitable financial organization, we are committed to maintaining a strong capital base.
Refer to Note 12 of the consolidated financial statements for further discussion of our derivatives and hedge instruments. 67 CAPITAL RESOURCES As part of our goal to operate a safe, sound and profitable financial organization, we are committed to maintaining a strong capital base.
While not anticipated as of December 31, 2023, 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.
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.
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, 2023 and 2022, junior subordinated debentures totaling $44.3 million. FHLBB Collateral.
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. FHLBB Collateral.
The AFS and HTM 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 corporate and municipal bonds by nationally recognized rating agencies.
The AFS and HTM 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 corporate and municipal bonds that are highly rated by nationally recognized rating agencies.
While our current evaluation indicates that the ACL on loans at December 31, 2023 and 2022 was appropriate, the allowance may need to be increased under adversely different conditions or assumptions.
While our current evaluation indicates that the ACL on loans at December 31, 2024 and 2023 was appropriate, the allowance may need to be increased under adversely different conditions or assumptions.
As of and for the years ended December 31, 2023, 2022 and 2021, we did not record any allowances or write-down any of our AFS debt securities in an unrealized loss position.
As of and for the years ended December 31, 2024, 2023 and 2022, we did not record any allowances or write-down any of our AFS debt securities in an unrealized loss position.
The (a) changes in volume (change in volume multiplied by prior year's rate), (b) changes in rates (change in rate multiplied by current year's volume), and (c) changes in rate/volume (change in rate multiplied by the change in volume), which is allocated to the change due to rate column. For the Year Ended December 31, 2023 vs.
The (a) changes in volume (change in volume multiplied by prior year's rate), (b) changes in rates (change in rate multiplied by current year's volume), and (c) changes in rate/volume (change in rate multiplied by the change in volume), which is allocated to the change due to rate column. For the Year Ended December 31, 2024 vs.
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.
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.
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, 2023 or December 31, 2022. Refer to “—Financial Condition—Investments,” and Note 2 of the consolidated financial statements for further discussion of investments.
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. 50 Refer to “—Financial Condition—Investments,” and Note 2 of the consolidated financial statements for further discussion of investments.
Throughout 2023, our CD product offering 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, 2023 was 6 months.
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.
“Management's Discussion and Analysis of Financial Condition and Results of Operations .” The following is provided to aid the reader and provide a reference page when reviewing this section of the Form 10-K: Acronym Description Acronym Description AFS: Available-for-sale GAAP: Generally accepted accounting principles in the United States ALCO: Asset/Liability Committee GDP: Gross domestic product ACL: Allowance for credit losses HTM: Held-to-maturity AOCI: Accumulated other comprehensive income (loss) LGD: Loss given default ASC: Accounting Standards Codification LIBOR: London Interbank Offered Rate ASU: Accounting Standards Update LTIP: Long-Term Performance Share Plan Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation Management ALCO: Management Asset/Liability Committee BOLI: Bank-owned life insurance MBS: Mortgage-backed security Board ALCO: Board of Directors' Asset/Liability Committee MSPP: Management Stock Purchase Plan BTFP: Bank Term Funding Program, introduced by the Federal Reserve Bank in March 2023 N/A: Not applicable CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation N.M.: Not meaningful CD: Certificate of deposits OCC: Office of the Comptroller of the Currency CECL: Current Expected Credit Losses OCI: Other comprehensive income (loss) Company: Camden National Corporation OREO: Other real estate owned CMO: Collateralized mortgage obligation PD: Probability of default CUSIP: Committee on Uniform Securities Identification Procedures ROU: Right-of-use DCRP: Defined Contribution Retirement Plan SBA: U.S.
“Management's Discussion and Analysis of Financial Condition and Results of Operations .” The following is provided to aid the reader and provide a reference page when reviewing this section of the Form 10-K: Acronym Description Acronym Description AFS: Available-for-sale GAAP: Generally accepted accounting principles in the United States ALCO: Asset/Liability Committee GDP: Gross domestic product ACL: Allowance for credit losses HTM: Held-to-maturity AOCI: Accumulated other comprehensive income (loss) LGD: Loss given default ASC: Accounting Standards Codification LIBOR: London Interbank Offered Rate ASU: Accounting Standards Update LTIP: Long-Term Performance Share Plan Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation Management ALCO: Management Asset/Liability Committee BOLI: Bank-owned life insurance MBS: Mortgage-backed security Board ALCO: Board of Directors' Asset/Liability Committee MSPP: Management Stock Purchase Plan BTFP: Bank Term Funding Program, introduced by the Federal Reserve Bank in March 2023 N/A: Not applicable CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation Northway Northway Financial, Inc., acquired by the Company on January 2, 2025 CD: Certificate of deposits Northway Bank Wholly-owned subsidiary bank of Northway Financial, Inc., which merged into Camden National Bank on January 2, 2025 CECL: Current Expected Credit Losses N.M.: Not meaningful Company: Camden National Corporation OCC: Office of the Comptroller of the Currency CMO: Collateralized mortgage obligation OCI: Other comprehensive income (loss) CUSIP: Committee on Uniform Securities Identification Procedures OREO: Other real estate owned DCRP: Defined Contribution Retirement Plan PD: Probability of default EPS: Earnings per share ROU: Right-of-use FASB: Financial Accounting Standards Board SBA: U.S.
Refer to “—Financial Condition—Investments,” and Note 2 of the consolidated financial statements for further discussion. Other Income includes third party merchant and credit card commissions, customer loan swap fees and other miscellaneous fees and net gains on equity securities.
Refer to “—Financial Condition—Investments,” and Note 3 of the consolidated financial statements for further discussion. 48 Other Income includes third party merchant and credit card commissions, customer loan swap fees and other miscellaneous fees and net gains on equity securities.
Poorly managed technology and cybersecurity risk can leave an institution exposed to a variety of cyber crimes, with consequences ranging from data disruption to economic destitution. Reputation risk due to a technology and/or cybersecurity event can be significant to overcome depending on the severity of the event.
Poorly managed technology and cybersecurity risk can leave an institution exposed to a variety of cybercrimes, with consequences ranging from data disruption to economic destitution. Reputation risk due to a technology and/or cybersecurity event can be significant to overcome depending on the severity of the event.
The Company's effective income tax rate for the year ended December 31, 2023 of 19.4% 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 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 book value of corporate and municipal bonds carrying a credit rating of “AA” or higher at December 31, 2023 and 2022 was 4% and 7%, respectively, of the AFS and HTM debt securities. Our other investments on the consolidated statements of condition consist of FHLBB and FRB common stock. These investments are carried at cost.
The book value of corporate and municipal bonds carrying a credit rating of “AA” or higher at December 31, 2024 and 2023 and was 5% and 4% of the AFS and HTM debt securities, respectively. Our other investments on the consolidated statements of condition consist of FHLBB and FRB common stock. These investments are carried at cost.
The recorded ACL on loans and HTM debt investments is determined based on the amortized cost basis of the assets and may be determined at various levels, including homogeneous loan pools, individual credits with unique risk factors, and CUSIP. We use a discounted cash flow approach to calculate the ACL for each loan segment.
The recorded ACL on loans is determined based on the amortized cost basis of the assets and may be determined at various levels, including homogeneous loan pools and individual credits with unique risk factors. We use a discounted cash flow approach to calculate the ACL for each loan segment.
Our AFS debt securities portfolio, which comprised 53% and 55% of our investment portfolio at December 31, 2023 and 2022, respectively, was carried at fair value using level 2 valuation techniques. Refer to Notes 1 and 21 of the consolidated financial statements for further details on the Company's fair value techniques.
Our AFS debt securities portfolio, which comprised 52% and 53% of our investment portfolio at December 31, 2024 and 2023, respectively, was carried at fair value using level 2 valuation techniques. Refer to Notes 1 and 21 of the consolidated financial statements for further details on the Company's fair value techniques.
At December 31, 2023 and 2022, the Company and Bank met all regulatory capital requirements and the Bank continues to be classified as “well capitalized” under prompt corrective action provisions. 72 RISK MANAGEMENT The Company’s Board of Directors and management have identified significant risk categories which affect the Company.
At December 31, 2024 and 2023, the Company and Bank met all regulatory capital requirements and the Bank continues to be classified as “well capitalized” under prompt corrective action provisions. 68 RISK MANAGEMENT The Company’s Board of Directors and management have identified significant risk categories which affect the Company.
The Company’s asset quality remained strong at December 31, 2023 and 2022. Refer to “—Financial Condition—Asset Quality” for further details. Provision for credit losses on off-balance credit exposures. At December 31, 2023, the ACL on off-balance sheet credit exposures was $2.4 million, as compared to $3.3 million as of December 31, 2022.
The Company’s asset quality remained strong at December 31, 2024 and 2023. Refer to “—Financial Condition—Asset Quality” for further details. 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.
As of December 31, 2023 and 2022, the Company's MBS and CMO debt securities portfolio totaled 91% and 87%, respectively, of the Company's 70 investment portfolio. The investment portfolio is also a significant source of contingent liquidity for the Company that could be accessed in a reasonable time period through the sale of investments on the secondary market, if needed.
As of December 31, 2024 and 2023, the Company's MBS and CMO debt securities portfolio totaled 91% of the Company's investment portfolio. The investment portfolio is also a significant source of contingent liquidity for the Company that could be accessed in a reasonable time period through the sale of investments on the secondary market, if needed.
Estimated Changes in Net Interest Income As of December 31, Rate Change from Year 1 – Base 2023 2022 2021 Year 1 +200 basis points (0.6) % (3.9) % 0.8 % -100 basis points N/A N/A (1.3) % -200 basis points — % 3.1 % N/A Year 2 +200 basis points 11.4 % 8.8 % 5.6 % -100 basis points N/A N/A (10.5) % -200 basis points 11.5 % 11.6 % N/A The preceding sensitivity analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results.
Estimated Changes in Net Interest Income As of December 31, Rate Change from Year 1 – Base 2024 2023 2022 Year 1 +200 basis points (1.6) % (0.6) % (3.9) % -200 basis points 3.0 % — % 3.1 % Year 2 +200 basis points 5.2 % 11.4 % 8.8 % -200 basis points 14.4 % 11.5 % 11.6 % The preceding sensitivity analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results.
Small Business Administration Paycheck Protection Program FASB: Financial Accounting Standards Board SERP: Supplemental executive retirement plans FDIC: Federal Deposit Insurance Corporation SOFR: Secured Overnight Financing Rate FHLBB: Federal Home Loan Bank of Boston TDR: Troubled-debt restructured loan FHLMC: Federal Home Loan Mortgage Corporation UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation FRB: Federal Reserve System Board of Governors U.S.: United States of America FRBB: Federal Reserve Bank of Boston 36 NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP 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); and core deposits and average core deposits.
Small Business Administration Paycheck Protection Program FHLBB: Federal Home Loan Bank of Boston SERP: Supplemental executive retirement plans FHLMC: Federal Home Loan Mortgage Corporation SOFR: Secured Overnight Financing Rate FRB: Federal Reserve System Board of Governors UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation FRBB: Federal Reserve Bank of Boston U.S.: United States of America 35 NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP 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.
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. 42 Refer to “—Results of Operations—Provision for Credit Losses,” “—Financial Condition—Asset Quality,” and Note 3 of the consolidated financial statements for further discussion. ACL on Off-Balance Sheet Credit Exposures.
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. Refer to “—Results of Operations—Provision for Credit Losses,” “—Financial Condition—Asset Quality,” and Note 3 of the consolidated financial statements for further discussion.
The overall mix of debt securities at December 31, 2023 compared to December 31, 2022 remains relatively unchanged and well positioned to provide a stable source of cash flow. The duration of our debt investment securities portfolio at December 31, 2023 was 5.7 years, compared to 5.8 years at December 31, 2022.
The overall mix of debt securities at December 31, 2024 compared to December 31, 2023 remains relatively unchanged and well positioned to provide a stable source of cash flow. The duration of our debt investment securities portfolio at December 31, 2024 was 5.2 years, compared to 5.7 years at December 31, 2023.
We, as the sole shareholder of the Bank, are entitled to dividends, when and as declared by the Bank's Board of Directors from legally available funds. For the years ended December 31, 2023, 2022, and 2021, the Bank declared dividends payable to the Company in the amount of $22.5 million, $31.7 million, and $41.7 million, respectively.
We, as the sole shareholder of the Bank, are entitled to dividends, when and as declared by the Bank's Board of Directors from legally available funds. For the years ended December 31, 2024, 2023, and 2022, the Bank declared dividends payable to the Company in the amount of $30.1 million, $22.5 million, and $31.7 million, respectively.
BOLI is invested in the “general account” of quality insurance companies or in separate account products, 94% of our balances are with insurance carriers that had an A.M. Best rating of “B++” or better at December 31, 2023. 64 Deposits The Company receives checking, savings and time deposits primarily from customers located within our markets.
BOLI is invested in the “general account” of quality insurance companies or in separate account products, 94% of our balances are with insurance carriers that had an A.M. Best rating of “A” or better at December 31, 2024. Deposits The Company receives checking, savings and time deposits primarily from customers located within our markets.
We declared dividends to shareholders in the aggregate amount of $24.5 million, or $1.68 per share, $23.7 million, or $1.62 per share, and $22.1 million, or $1.48 per share, for the years ended December 31, 2023, 2022 and 2021, respectively.
We declared dividends to shareholders in the aggregate amount of $24.5 million, or $1.68 per share, $24.5 million, or $1.68 per share, and $23.7 million, or $1.62 per share, for the years ended December 31, 2024, 2023 and 2022, respectively.
Included within the Company’s cash and cash equivalents balances at December 31, 2023 and 2022, 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 $15.4 million and $5.4 million, respectively. We actively, and the counterparty, manage these cash accounts daily.
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.
The banks in the portfolio range from the largest U.S. banks to community banks, with 32% of our exposure as of December 31, 2023, being to global systemically important banks, or "G-SIBs." A limited number of our rated corporate bonds have been downgraded in 2023 as a result of stress in the banking system, although all remain investment-grade as of December 31, 2023.
The banks in the portfolio range from the largest U.S. banks to community banks, with 35% of our exposure as of December 31, 2024, being to global systemically important banks, or "G-SIBs." A limited number of our rated corporate bonds were downgraded in 2023 as a result of stress in the banking system, although all remain investment-grade as of December 31, 2024.
At December 31, 2023 and 2022, the Company and the Bank exceeded all regulatory capital requirements, and the Bank met the capital ratios necessary to be considered “well capitalized” under the prompt corrective action framework.
At each of December 31, 2024 and 2023, the Company and the Bank exceeded all regulatory capital requirements, and the Bank met the capital ratios necessary to be considered “well capitalized” under the prompt corrective action framework.
At December 31, 2023 and 2022, all municipal bonds carried an investment-grade credit rating. At December 31, 2023 and 2022, corporate bonds were 3% and 4% of the book value of the total bond portfolio, respectively.
At December 31, 2024 and 2023, all municipal bonds carried an investment-grade credit rating. At December 31, 2024 and 2023, corporate bonds were 3% of the book value of the total bond portfolio.
Refer to “ — Critical Accounting Policies ” and Note 1 of the consolidated financial statements for further discussion of our practices and policies, and refer to Note 2 of the consolidated financial statements for additional details of our assessment of the allowance for AFS investments as of and for the year ended December 31, 2023. 56 We assess our HTM debt securities each reporting period to determine if an allowance should be recorded or if a write-down is required.
Refer to Note 1 of the consolidated financial statements for further discussion of our practices and policies, and refer to Note 2 of the consolidated financial statements for additional details of our assessment of the allowance for AFS investments as of December 31, 2024 and 2023. 53 We assess our HTM debt securities each reporting period to determine if an allowance should be recorded or if a write-down is required.
At December 31, 2023, the non-residential building operators' industry (operators of commercial and industrial buildings, retail establishments, theaters, banks and insurance buildings) and lessors of residential buildings industry (lessors of buildings used as residences, such as single-family homes, apartments and town houses) concentrations were 33% and 28% of our total commercial real estate portfolio and 13% and 11% of total loans, respectively.
At December 31, 2024, the lessors of residential buildings industry (lessors of buildings used as residences, such as single-family homes, apartments and town houses) and the non-residential building operators' industry (operators of commercial and industrial buildings, retail establishments, theaters, banks and insurance buildings) concentrations were 32% and 31%, respectively, of our total commercial real estate portfolio and both were 13% of total loans.
Net interest income, which is our largest source of revenue, accounted for 81%, 78% and 73% of total revenues for the years ended 2023, 2022 and 2021, respectively.
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.
In the first quarter of 2023, we wrote-off a $1.8 million corporate bond issued by Signature Bank due to Signature Bank's failure through provision expense on the consolidated statements of income. This corporate bond was designated as HTM and previously carried no ACL.
In the first quarter of 2023, we wrote-off a $1.8 million corporate bond issued by Signature Bank due to Signature Bank's failure through provision expense on the consolidated statements of income. This corporate bond was designated as HTM and previously carried no ACL. In January 2024, we sold the Signature Bank security and recovered $910,000.
As macroeconomic factor condition worsen, the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans.
As macroeconomic factor conditions worsen, the PD increases, and the 40 corresponding LGD increases, resulting in an increase in the ACL on loans.
As of December 31, 2023, our distribution channels include 56 branches within Maine, two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester, a mortgage loan production office in Braintree, Massachusetts, and an online residential mortgage and small business digital loan platform.
As of December 31, 2024, our distribution channels included 56 branches within Maine, two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester, and an online residential mortgage and small business digital loan platform.
At December 31, 2023 and 2022, the book value of U.S. government and government-sponsored agencies represented approximately 91% and 88%, respectively, of the AFS and HTM debt securities portfolio.
At December 31, 2024 and 2023, the book value of U.S. government and government-sponsored agencies represented approximately 91% of the AFS and HTM debt securities portfolio.
The weighted average life of our debt securities portfolio remained consistent at 7.8 years at December 31, 2023 and 2022. The Company’s AFS debt securities that are in an unrealized loss position are assessed to determine if an allowance should be recorded or if a write-down is required in accordance with ASU 2016-13.
The weighted average life of our debt securities portfolio at December 31, 2024 was 7.0 years, compared to 7.8 years at December 31, 2023. The Company’s AFS debt securities that are in an unrealized loss position are assessed to determine if an allowance should be recorded or if a write-down is required in accordance with ASU 2016-13.
At December 31, 2022, the non-residential building operators’ industry and lessors of residential building industry concentrations were 34% and 28%, respectively, of total commercial real estate portfolio and 14% and 11% of total loans. At December 31, 2023, there were no other industry concentrations within our loan portfolio that exceeded 10% of total loans.
At December 31, 2023, the non-residential building operators’ industry and lessors of residential building industry concentrations were 33% and 28%, respectively, of total commercial real estate portfolio and 13% and 11% of total loans. At December 31, 2024, there were no other industry concentrations within our loan portfolio that exceeded 10% of total loans.
(b) Office loans are located in non-urban locations, including 52% in Maine, 26% in New Hampshire, and 22% in Massachusetts at December 31, 2023. (c) Represents multi-family (1-4 units) that are used for commercial purposes.
(b) Office loans are nearly all located in non-urban locations, including 52% in Maine, 26% in New Hampshire, and 23% in Massachusetts at December 31, 2024. (c) Represents multi-family (1-4 units) that are used for commercial purposes.
There were 67 no changes to the Company’s or the Bank's capital ratios that occurred subsequent to December 31, 2023 that would change the Company or Bank's regulatory capital categorization.
There 63 were no changes to the Company’s or the Bank's capital ratios that occurred subsequent to December 31, 2024 that would change the Company or Bank's regulatory capital categorization.
The remaining $9.6 million and $9.4 million of book value, or 23% and 20% of the corporate bond portfolio, were non-rated corporate bonds of community banks within our markets. As of December 31, 2023, the corporate bond portfolio was made up of 18 different companies, which included 16 different banks.
The remaining $11.2 million and $9.6 million of book value, or 30% and 23% of the corporate bond portfolio, were non-rated corporate bonds of community banks within our markets. As of December 31, 2024, the corporate bond portfolio was made up of 18 different companies, which included 16 different banks.
As of December 31, 2023, we had interest rate swap agreements with a total notional of $43.0 million related to our junior subordinated debentures, $100.0 million of notional interest swap agreements on variable rate loans to mitigate exposure to falling interest rates, $50.0 million of notional interest rate swap agreements on variable rate deposits to mitigate exposure to rising rates, $125.0 million of notional interest rate swap agreements on short-term fixed-rate rolling funding to mitigate exposure to rising rates, and $375.0 million of notional interest rate swap agreements to hedge fixed-rate residential mortgages using the “portfolio layer” method, and $298.1 million of notional interest rate swap agreements related to commercial loan level derivative program with both our commercial customers and a corresponding swap dealer.
As of December 31, 2024, we had interest rate swap agreements with a total notional of $43.0 million related to our junior subordinated debentures, $50.0 million of notional interest rate swap agreements on variable rate deposits to mitigate exposure to rising rates, $400.0 million of notional interest rate swap agreements on short-term fixed-rate rolling funding to mitigate exposure to rising rates, and $375.0 million of notional interest rate swap agreements to hedge fixed-rate residential mortgages using the “portfolio layer” method, and $313.4 million of notional interest rate swap agreements related to commercial loan level derivative program with both our commercial customers and a corresponding swap dealer.
The following table presents certain information regarding shareholders’ equity for the periods indicated: As of and For the Year Ended December 31, 2023 2022 2021 Financial Ratios Average equity to average assets 8.18 % 8.51 % 10.33 % Common equity ratio 8.66 % 7.96 % 9.84 % Tangible common equity ratio (non-GAAP) 7.11 % 6.37 % 8.22 % Dividend payout ratio 56.38 % 38.76 % 32.03 % Per Share Data Book value per share $ 33.99 $ 30.98 $ 36.72 Tangible book value per share (non-GAAP) $ 27.42 $ 24.37 $ 30.15 Dividends declared per share $ 1.68 $ 1.62 $ 1.48 LIQUIDITY Our liquidity needs require the availability of cash to meet the withdrawal demands of depositors and credit commitments to borrowers.
The following table presents certain information regarding shareholders’ equity for the periods indicated: As of and For the Year Ended December 31, 2024 2023 2022 Financial Ratios Average equity to average assets 8.92 % 8.18 % 8.51 % Common equity ratio 9.15 % 8.66 % 7.96 % Tangible common equity ratio (non-GAAP) 7.64 % 7.11 % 6.37 % Dividend payout ratio 46.28 % 56.38 % 38.76 % Per Share Data Book value per share $ 36.44 $ 33.99 $ 30.98 Tangible book value per share (non-GAAP) $ 29.91 $ 27.42 $ 24.37 Dividends declared per share $ 1.68 $ 1.68 $ 1.62 LIQUIDITY Our liquidity needs require the availability of cash to meet the withdrawal demands of depositors and credit commitments to borrowers.
Through the Bank, we also have available lines of credit with the FHLBB of $9.9 million, with a correspondent bank of $85.0 69 million, and with the FRB Discount Window of $39.4 million as of December 31, 2023. We also believe that we have additional untapped access to the brokered deposit market and wholesale reverse repurchase transaction market.
Through the Bank, we also have available lines of credit with the FHLBB of $9.9 million, with correspondent banks of $85.0 million, and with the FRB Discount Window of $35.0 million as of December 31, 2024. We also believe that we have additional untapped access to the brokered deposit market and wholesale reverse repurchase transaction market.
“ Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s 2022 annual report on Form 10-K filed with the SEC on March 10, 2023. 54 FINANCIAL CONDITION Cash and Cash Equivalents Total cash and cash equivalents at December 31, 2023 were $99.8 million, compared to $75.4 million at December 31, 2022.
“ Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s 2023 annual report on Form 10-K filed with the SEC on March 8, 2024. 51 FINANCIAL CONDITION Cash and Cash Equivalents Total cash and cash equivalents at December 31, 2024 were $215.0 million, compared to $99.8 million at December 31, 2023.
Total uninsured and uncollateralized deposits that exceeded the FDIC deposit insurance limit of $250,000 and were not secured by pledged assets or any other guarantee of the Company totaled $669.5 million, or 15% of total deposits, as of December 31, 2023 and $745.9 million, or 16% of total deposits, as of December 31, 2022.
Total uninsured and uncollateralized deposits that exceeded the FDIC deposit insurance limit of $250,000 and that were not secured by pledged assets or any other guarantee of the Company, totaled $760.8 million, or 16%, of total deposits as of December 31, 2024, and $669.5million, or 15%, of total deposits as of December 31, 2023.
At December 31, 2023 and 2022, corporate bonds with a book value of $31.2 million and $36.9 million, or 77% and 80% of the corporate bond portfolio, carried an investment-grade credit rating.
At December 31, 2024 and 2023, corporate bonds with a book value of $25.9 million and $31.2 million, or 70% and 77% of the corporate bond portfolio, carried an investment-grade credit rating.
As of 55 December 31, 2023 and 2022, our investment in FHLBB stock totaled $10.0 million and $7.3 million, respectively, and our investment in FRB stock was $5.4 million at each date. Our investments in mutual funds are designated as trading securities and carried at fair value.
As of 52 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. Our investments in mutual funds are designated as trading securities and carried at fair value.
At December 31, 2023 and 2022, core deposit intangible assets totaled $971,000 and $1.6 million, respectively, and related amortization was $592,000, $625,000, and $655,000 for the years ended 2023, 2022 and 2021, respectively. There were no indications of potential risk of impairment of core deposit intangible assets for any of the aforementioned years.
At December 31, 2024 and 2023, core deposit intangible assets totaled $415,000 and $971,000, respectively, and related amortization was $556,000, $592,000, and $625,000 for the years ended 2024, 2023 and 2022, respectively. There were no indications of potential risk of impairment of core deposit intangible assets for any of the aforementioned years.
For the Year Ended December 31, (In thousands) 2023 2022 2021 Net interest income, as presented $ 132,263 $ 147,694 $ 137,436 Adjustment for the effect of tax-exempt income (1) 901 937 987 Net interest income, tax equivalent $ 133,164 $ 148,631 $ 138,423 (1) Reported on a tax-equivalent basis using a 21% income tax rate. Core Deposits.
For the Year Ended December 31, (In thousands) 2024 2023 2022 Net interest income, as presented $ 132,453 $ 132,263 $ 147,694 Adjustment for the effect of tax-exempt income (1) 637 901 937 Net interest income, tax equivalent $ 133,090 $ 133,164 $ 148,631 (1) Reported on a tax-equivalent basis using a 21% income tax rate. Core Deposits.
(2) Revenue is the sum of net interest income and non-interest income. 38 Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity.
(2) Revenue is the sum of net interest income and non-interest income. 37 Return on Average Tangible Equity and Core Return on Average Tangible Equity.
In January 2024, the Company's Board of Directors authorized the repurchase of up to 750,000 shares of the Company's common stock, representing approximately 5.0% of the Company's issued and outstanding shares of common stock as of December 31, 2023.
In January 2024, the Company's Board of Directors authorized the repurchase of up to 750,000 shares of the Company's common stock, representing approximately 5.0% of the Company's issued and outstanding shares of common stock as of December 31, 2023. This program replaced the 2023 program and matured on January 4, 2025.
For the Year Ended December 31, (In thousands, except number of shares, per share data and ratios) 2023 2022 2021 Adjusted Net Income: Net income, as presented $ 43,383 $ 61,439 $ 69,014 Adjustment for net loss on sale of securities 10,310 912 — Adjustment for Signature Bank bond write-off 1,838 — — Tax impact of above adjustments (1) (2,551) (192) — Adjusted net income $ 52,980 $ 62,159 $ 69,014 Adjusted Diluted Earnings per Share: Diluted earnings per share, as presented $ 2.97 $ 4.17 $ 4.60 Adjustment for net loss on sale of securities 0.71 0.06 — Adjustment for Signature Bank bond write-off 0.13 — — Tax impact of above adjustments (1) (0.18) (0.01) — Adjusted diluted earnings per share $ 3.63 $ 4.22 $ 4.60 Adjusted Return on Average Assets: Return on average assets, as presented 0.76 % 1.12 % 1.31 % Adjustment for net loss on sale of securities 0.18 % 0.02 % — Adjustment for Signature Bank bond write-off 0.03 % — — Tax impact of above adjustments (1) (0.04) % — — Adjusted return on average assets 0.93 % 1.14 % 1.31 % Adjusted Return on Average Equity: Return on average equity, as presented 9.30 % 13.15 % 12.72 % Adjustment for net loss on sale of securities 2.21 % 0.20 % — Adjustment for Signature Bank bond write-off 0.39 % — — Tax impact of above adjustments (1) (0.55) % (0.04) % — Adjusted return on average equity 11.35 % 13.31 % 12.72 % (1) Assumed a 21% income tax rate. 37 Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income.
For the Year Ended December 31, (In thousands, except number of shares, per share data and ratios) 2024 2023 2022 Core Net Income: Net income, as presented $ 53,004 $ 43,383 $ 61,439 Adjustment for net loss on sale of securities — 10,310 912 Adjustment for Signature Bank bond (recovery) write-off (910) 1,838 — Adjustment for merger and acquisition costs 1,159 Tax impact of above adjustments (1) 179 (2,551) (192) Core net income $ 53,432 $ 52,980 $ 62,159 Core Diluted Earnings per Share: Diluted earnings per share, as presented $ 3.62 $ 2.97 $ 4.17 Adjustment for net loss on sale of securities — 0.71 0.06 Adjustment for Signature Bank bond (recovery) write-off (0.06) 0.13 — Adjustment for merger and acquisition costs 0.08 Tax impact of above adjustments (1) 0.01 (0.18) (0.01) Core diluted earnings per share $ 3.65 $ 3.63 $ 4.22 Core Return on Average Assets: Return on average assets, as presented 0.92 % 0.76 % 1.12 % Adjustment for net loss on sale of securities — % 0.18 % 0.02 % Adjustment for Signature Bank bond (recovery) write-off (0.02) % 0.03 % — Adjustment for merger and acquisition costs 0.02 % Tax impact of above adjustments (1) — % (0.04) % — Core return on average assets 0.92 % 0.93 % 1.14 % Core Return on Average Equity: Return on average equity, as presented 10.36 % 9.30 % 13.15 % Adjustment for net loss on sale of securities — % 2.21 % 0.20 % Adjustment for Signature Bank bond (recovery) write-off (0.18) % 0.39 % — Adjustment for merger and acquisition costs 0.23 % Tax impact of above adjustments (1) 0.04 % (0.55) % (0.04) % Core return on average equity 10.45 % 11.35 % 13.31 % (1) Assumed a 21% income tax rate for eligible costs. 36 Pre-Tax, Pre-Provision Income.
The following table below provides certain information on our short-term borrowings at and for the period ended: December 31, (Dollars in thousands) 2023 2022 2021 FHLBB and correspondent bank overnight borrowings: Balance outstanding at end of year $ 24,950 $ 18,725 $ — Average daily balance outstanding 141,318 52,908 297 Maximum balance outstanding at any month end 189,400 102,225 — Weighted average interest rate for the year 4.82 % 2.43 % 0.40 % Weighted average interest rate at end of year 5.56 % 4.38 % — % FHLBB advances (less than one year): Balance outstanding at end of year $ 125,000 $ 50,000 $ — Average daily balance outstanding 104,740 27,192 — Maximum balance outstanding at any month end 140,000 50,000 — Weighted average interest rate for the year 3.14 % 2.94 % — % Weighted average interest rate at end of year 5.53 % 4.93 % — % BTFP: Balance outstanding at end of year $ 135,000 $ — $ — Average daily balance outstanding 89,510 — — Maximum balance outstanding at any month end 135,000 — — Weighted average interest rate for the year 4.70 % — % — % Weighted average interest rate at end of year 4.70 % — % — % Customer repurchase agreements: Balance outstanding at end of year $ 200,657 $ 196,451 $ 211,608 Average daily balance outstanding 191,646 215,761 185,246 Maximum balance outstanding at any month end 210,140 268,876 217,320 Weighted average interest rate for the year 1.49 % 0.51 % 0.31 % Weighted average interest rate at end of year 1.56 % 1.00 % 0.25 % Junior Subordinated Debentures.
The following table below provides certain information on our short-term borrowings at and for the period ended: December 31, (Dollars in thousands) 2024 2023 2022 FHLBB and correspondent bank overnight borrowings: Balance outstanding at end of year $ — $ 24,950 $ 18,725 Average daily balance outstanding 9,313 141,318 52,908 Maximum balance outstanding at any month end 81,000 189,400 102,225 Weighted average interest rate for the year 5.65 % 4.82 % 2.43 % Weighted average interest rate at end of year — % 5.56 % 4.38 % FHLBB advances (less than one year): Balance outstanding at end of year $ 325,000 $ 125,000 $ 50,000 Average daily balance outstanding 233,060 104,740 27,192 Maximum balance outstanding at any month end 325,000 140,000 50,000 Weighted average interest rate for the year 4.09 % 3.14 % 2.94 % Weighted average interest rate at end of year 4.62 % 5.53 % 4.93 % BTFP: Balance outstanding at end of year $ — $ 135,000 $ — Average daily balance outstanding 123,617 89,510 — Maximum balance outstanding at any month end 225,000 135,000 — Weighted average interest rate for the year 4.77 % 4.70 % — % Weighted average interest rate at end of year — % 4.70 % — % Customer repurchase agreements: Balance outstanding at end of year $ 175,621 $ 200,657 $ 196,451 Average daily balance outstanding 185,299 191,646 215,761 Maximum balance outstanding at any month end 204,456 210,140 268,876 Weighted average interest rate for the year 1.73 % 1.49 % 0.51 % Weighted average interest rate at end of year 1.64 % 1.56 % 1.00 % Junior Subordinated Debentures.
For the Year Ended December 31, (In thousands) 2023 2022 2021 Total average deposits, as presented (1) $ 4,481,322 $ 4,472,063 $ 4,096,411 Adjustment for average certificates of deposit (453,723) (295,586) (333,352) Average core deposits $ 4,027,599 $ 4,176,477 $ 3,763,059 (1) Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.
For the Year Ended December 31, (In thousands) 2023 2023 2022 Total average deposits, as presented (1) $ 4,385,401 $ 4,481,322 $ 4,472,063 Adjustment for average certificates of deposit (567,182) (453,723) (295,586) Average core deposits $ 3,818,219 $ 4,027,599 $ 4,176,477 (1) Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.
The balance of CDs that exceeded the FDIC deposit insurance limit of $250,000 was $167.2 million, or 27% of CD balances, as of December 31, 2023, and $84.5 million, or 28% of CD balances, as of December 31, 2022.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk Information required by this Item 7A is included in Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management” and is incorporated into this Item 7A by reference. 76
Item 7A. Quantitative and Qualitative Disclosures About Market Risk Information required by this Item 7A is included in Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management” and is incorporated into this Item 7A by reference. 72

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