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What changed in CAMDEN NATIONAL CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CAMDEN NATIONAL CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+428 added−407 removedSource: 10-K (2026-03-06) vs 10-K (2025-03-07)

Top changes in CAMDEN NATIONAL CORP's 2025 10-K

428 paragraphs added · 407 removed · 322 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

68 edited+25 added−16 removed121 unchanged
Biggest changeAnti-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.
Biggest changeConsumer 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.
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.
We consider our growth markets to be those 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.
The federal bank regulators have adopted regulations as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”) to implement an exemption from the Capital Rules for smaller banking organizations, including the Company and the Bank, that maintain a “Community Bank Leverage Ratio” of at least 8% to 10%.
The federal bank regulators have adopted regulations as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”) to implement an exemption from the Capital Rules for smaller banking organizations, 10 including the Company and the Bank, that maintain a “Community Bank Leverage Ratio” of at least 8% to 10%.
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.
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.
Generally, however, they contain one or more of the following elements: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on “U.S. persons” engaging in financial or other transactions relating to a sanctioned country or with certain designated persons and entities; (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons); and (iii) restrictions on transactions with or involving certain persons or entities.
Generally, however, they contain one or more of the following elements: (i) restrictions on trade with or 14 investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on “U.S. persons” engaging in financial or other transactions relating to a sanctioned country or with certain designated persons and entities; (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons); and (iii) restrictions on transactions with or involving certain persons or entities.
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.
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.
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”).
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”). Competition .
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.
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.
Under the BHCA, a company is deemed to control a bank or bank holding company if the company owns, controls or holds with power to vote 25% or more of a class of voting securities of the bank or bank holding company, controls in any manner the election of a majority of directors or trustees of the bank or bank holding company, or the FRB determines that the company has the power to exercise a controlling influence over the management or policies of the bank or bank holding company.
Under the BHCA, a company is deemed to control a bank or bank holding company if the company owns, controls or holds with power to vote 25% or more of a class of voting securities of the bank or bank holding company, controls in any manner the election of a 8 majority of directors or trustees of the bank or bank holding company, or the FRB determines that the company has the power to exercise a controlling influence over the management or policies of the bank or bank holding company.
The liability of the parent holding company under any such guarantee is limited to the lesser of five percent of the bank’s assets at the time it became “undercapitalized” or the amount needed to comply. Information concerning the Company and the Bank with respect to capital requirements is incorporated by reference from Item 7.
The liability of the parent holding company under any such guarantee is limited to the lesser of five percent of the bank’s assets at the time it became “undercapitalized” or the amount needed to comply. 11 Information concerning the Company and the Bank with respect to capital requirements is incorporated by reference from Item 7.
Under FDIC regulations, an institution that is “well capitalized” and has a CAMELS composite rating of 1 or 2 is permitted to exempt reciprocal deposits from treatment as brokered deposits up to the lesser of $5 billion or 20% of the institution’s total liabilities.
Under FDIC regulations, an institution that is “well capitalized” and has a CAMELS composite rating of 1 or 2 is permitted to exempt reciprocal deposits from 9 treatment as brokered deposits up to the lesser of $5 billion or 20% of the institution’s total liabilities.
See “—Capital Adequacy and Safety and Soundness—Regulatory Capital Requirements” above. Certain Transactions by Banks with their Affiliates Sections 23A and 23B of the Federal Reserve Act and the FRB’s Regulation W restrict transactions between a bank and its affiliates, including its parent bank holding company.
See “—Capital Adequacy and Safety and Soundness—Regulatory Capital Requirements” above. 12 Certain Transactions by Banks with their Affiliates Sections 23A and 23B of the Federal Reserve Act and the FRB’s Regulation W restrict transactions between a bank and its affiliates, including its parent bank holding company.
In general, the Bank must provide its customers with an initial and annual disclosure that explains its policies and procedures regarding the disclosure of such nonpublic personal information, and, except as otherwise required or permitted by law, the Bank is prohibited from disclosing such information except as provided in such policies and procedures.
In general, the Bank 13 must provide its customers with an initial and annual disclosure that explains its policies and procedures regarding the disclosure of such nonpublic personal information, and, except as otherwise required or permitted by law, the Bank is prohibited from disclosing such information except as provided in such policies and procedures.
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.
Prior to joining the Company, Mr. Archer spent seven years at PricewaterhouseCoopers, LLP (“PwC”). 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.
Institutions that are not well rated or “well capitalized” may treat reciprocal deposits as non-brokered up to an amount equal to a “special cap” set forth in the regulations. Community Reinvestment Act (“CRA”) .
Institutions that are not well rated or “well capitalized” may treat reciprocal deposits as non-brokered up to an amount equal to a “special cap” set forth in the regulations. Community Reinvestment Act .
Prior to becoming EVP, Chief Risk Officer, Mr. Ackley served as SVP and Director of Information Security & Enterprise Risk Management for the Company from 2016 through July 2023 and prior to that served as Vice President and Senior Information Security Officer of the Company. Mr.
Prior to becoming EVP, Chief Risk Officer, Mr. Ackley served as SVP and Director of Information Security & Enterprise Risk Management for the Company from 2016 through July 2023 and prior to that served as Vice President (“VP”) and Senior Information Security Officer of the Company. Mr.
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.
Smyth Executive Vice President, Chief Experience and Marketing Officer 55 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.
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.
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. 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 (“CRO”) in July 2023.
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.
Martel was a SVP at TD Bank and served in several senior 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. Garrett A.
The revised capital requirements of the proposed rule would not apply to the Company or Bank because they have less than $100 billion in total consolidated assets and trading assets and liabilities below the threshold for market risk requirements. Prompt Corrective Action .
The revised capital requirements of the proposed rule would not apply to the Company or Bank because they have less than $100 billion in total consolidated assets and trading assets and liabilities below the threshold for market risk requirements.
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.
We are powered by an extraordinary team of 683 employees, as of December 31, 2025, 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.
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.
We compete throughout Maine, New Hampshire, and select areas of Massachusetts. Many of the markets we compete in are characterized as rural areas.
"Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources" and Note 14 of the consolidated financial statements included within this report.
"Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources" and Note 15 of the consolidated financial statements included within this report.
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.
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 $18 per hour for all employees effective February 2026. Workplace Safety and Inclusion.
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 .
In 4 addition, most of these services are widely available to our customers via telephone, online and mobile channels from firms located outside our market area. Investor Relations. The Company’s Investor Relations information can be obtained through our internet address, www.CamdenNational.bank or www.CamdenNationalCorporation.com .
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.
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. Earlier in her career, Ms.
The Bank offers comprehensive wealth management and trust services, including investment advisory services, through our wealth management team, doing business as Camden National Wealth Management, and brokerage, investment advisory, insurance, and financial planning services through our financial consulting team, doing business as Camden Financial Consultants. • Camden National Wealth Management provides a broad range of fiduciary and asset management services to both individual and institutional clients.
The Bank offers comprehensive wealth management and trust services, including investment advisory services, through our wealth management team, doing business as Camden National Wealth Management, and brokerage, investment advisory, insurance, and financial planning services through our financial consulting team, doing business as Camden Financial Consultants. • Camden National Wealth Management provides a comprehensive suite of fiduciary and asset management services for both individual and institutional clients.
However, a bank holding company may engage in and may own shares of companies engaged in activities that the FRB has determined, by order or regulation, to be so closely related to banking as to be a proper incident thereto. Limitations on Acquisitions of Company Common Stock.
However, a bank holding company may engage in and may own shares of companies engaged in activities that the FRB has determined, by order or regulation, to be so closely related to banking as to be a proper incident thereto.
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.
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 $7.0 billion in assets at December 31, 2025, incorporated under the laws of the State of Maine and headquartered in Camden, Maine.
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.
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 SVP and Senior Managing Director of The Northern Trust Company, where he spent 15 years, and worked in 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 6%, resulting in $5.8 billion in total assets at December 31, 2024.
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 7%, resulting in $7.0 billion in total assets at December 31, 2025.
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.
For the years ended December 31, 2025, 2024 and 2023, net interest income was our primary revenue source, representing 79%, 75%, and 81%, of our total revenues 1 , respectively.
The Company has evaluated the potential impact of this rule and has elected not to apply the Community Bank Leverage Ratio framework to its operations, and instead measures its capital adequacy under the Capital Rules as described above.
The Company has evaluated the potential impact of this rule, including the proposal to lower the minimum required ratio, and has elected not to apply the Community Bank Leverage Ratio framework to its operations, and instead measures its capital adequacy under the Capital Rules as described above.
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.
Martel Executive Vice President, Technology and Support Services, Chief Technology Officer 56 Garrett A. McKnight Executive Vice President, Managing Director, Camden National Wealth Management 54 Barbara M. Raths Executive Vice President, Commercial Banking 51 Patricia A. Rose Executive Vice President, Retail and Mortgage Banking Officer 62 Ryan A. Smith Executive Vice President, Chief Credit Officer 53 Renée D.
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.
Patricia A. 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.
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 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”).
Bank’s Private Client Group as a Private Banker and Managing Director for seven years. Mr. McKnight serves on the Investment Committee for Elon University’s Endowment and the Board of Directors at Cape Arundel Golf Club. Barbara Raths joined the Company in 2019 and became EVP, Commercial Banking in March 2024. Prior to becoming EVP, Ms.
Bank’s Private Client Group as a Private Banker and Managing Director for seven years, he began his career at NationsBank/Bank of America. Mr. McKnight serves on the Investment Committee for Elon University’s Endowment and the Board of Directors at Cape Arundel Golf Club. Barbara Raths joined the Company in 2019 and became EVP, Commercial Banking in March 2024.
Raths served as the Company’s Senior Vice President and Director of Treasury Management and Government Banking, leading business, nonprofit, and government treasury management business development efforts. Prior to joining the Company, Ms.
Prior to becoming EVP, Ms. Raths served as the Company’s SVP and Director of Treasury Management and Government Banking, leading business, nonprofit, and government treasury management business development efforts. Prior to joining the Company, Ms.
The Company, through the Bank, provides a broad array of banking and other financial services including wealth management and trust services, brokerage, investment advisory and insurance services to consumer, business, non-profit and municipal customers.
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, through the Bank, provides a broad array of banking and other financial services including wealth management and trust services, brokerage, investment advisory and insurance services to consumer, business, non-profit and municipal customers.
The wealth management services provided by Camden National Wealth Management complement the services provided by the Bank, offering high net worth individuals and families, businesses and not-for profit customers investment management, financial planning and trustee services. • Camden Financial Consultants is in the business of helping clients work toward their financial goals.
Designed to complement the Bank’s core offerings, the Camden National Wealth Management platform serves high net worth individuals and families, businesses, and not-for profit customers investment management, financial planning and trustee services. • Camden Financial Consultants is in the business of helping clients work toward their financial goals.
The federal banking regulators must take certain mandatory supervisory actions, and are authorized to take other discretionary actions, with respect to institutions that are less than adequately capitalized, with supervisory actions progressively becoming more punitive as the institution’s capital category declines.
The FDIA establishes five capital categories (“well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized”). The federal banking regulators must take certain mandatory supervisory actions, and are authorized to take other discretionary actions, with respect to institutions that are less than adequately capitalized, with supervisory actions progressively becoming more punitive as the institution’s capital category declines.
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 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.
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.
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.
She is a member of Junior Achievement of Maine’s Board of Directors and serves on its Finance Committee and is a strategic advisor to Finding Our Voices. All of the executive officers hold office at the discretion of the Company’s Board of Directors.
Smyth served as an investment banker, advising clients on mergers and acquisitions and capital raising activities. She is a member of Junior Achievement of Maine’s Board of Directors and serves on its Finance Committee and is a strategic advisor to Finding Our Voices. All of the executive officers hold office at the discretion of the Company’s Board of Directors.
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.
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.
Raths currently chairs the Board of Trustees for the Maine Health and Higher Education Facilities Authority, serves as Secretary of the Board of Directors for the Maine International Trade Center, and is a member of the Maine District Export Council. Ms.
Raths currently chairs the Board of Trustees for the Maine Health and Higher Education Facilities Authority, serves on the Board of Directors for the Maine International Trade Center, and is a member of the Maine District Export Council. Ms. Raths is a graduate of the ABA Stonier Graduate School of Banking and received a leadership certificate from The Wharton School.
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.
He served as Chief People Officer for Alcom LLC from 2022 until joining the Company. Prior to that he served as VP, Human Resources for Rimini Street from 2020 to 2022, as VP, 6 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.
Executive and Incentive Compensation Guidelines adopted by the federal banking agencies prohibit excessive compensation as an unsafe and unsound practice and describe compensation as “excessive” when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal stockholder.
Due to legal challenges and other uncertainties, the effects of these measures on the Company or the Bank cannot be predicted at this time Executive and Incentive Compensation Guidelines adopted by the federal banking agencies prohibit excessive compensation as an unsafe and unsound practice and describe compensation as “excessive” when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal stockholder.
Use of such information is regulated under the FCRA, and the FCRA also regulates reporting information to consumer reporting agencies, prescreening individuals for credit offers, sharing of consumer reports between affiliates, and using affiliate credit data for marketing purposes. Similar state laws may impose additional requirements on the Bank.
Like other lenders, the Bank uses consumer reports in its underwriting activities. Use of such information is regulated under the FCRA, and the FCRA also regulates reporting information to consumer reporting agencies, prescreening individuals for credit offers, sharing of consumer reports between affiliates, and using affiliate credit data for marketing purposes.
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.
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.
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.
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.
Blocked assets (for example, property and bank deposits) cannot be paid out, withdrawn, set off or transferred in any manner without a license from OFAC. Failure to comply with these sanctions could have serious legal and reputational consequences for the Company.
Blocked assets (for example, property and bank deposits) cannot be paid out, withdrawn, set off or transferred in any manner without a license from OFAC.
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.
Boey is a member of the bar in Maine, New York and Washington D.C. 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.
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.
The Bank currently has a “Satisfactory” CRA rating resulting from its most recent CRA performance evaluation in 2024. In October 2023, the OCC, together with the FRB and FDIC, issued a joint final rule that introduced many changes to the CRA regulatory framework. However, the final rule was paused in 2024 as the result of a court ordered injunction.
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.
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. During 2025, the CFPB reduced its staff by over 80%. The reduction in force is the subject of litigation.
In addition, a notice of proposed rulemaking to revise the FCRA was published in December 2024, with comments to the proposal due in March 2025. Mortgage Reform.
Similar state laws may impose additional requirements on the Bank. A notice of proposed rulemaking to revise the FCRA was published in December 2024, with comments to the proposal due in March 2025. The CFPB subsequently withdrew the proposed rule in May 2025. Mortgage Reform.
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.
Executive Officer Position Age Simon R. Griffiths President and Chief Executive Officer 52 Michael R. Archer Executive Vice President, Chief Financial Officer 42 David J. Ackley Executive Vice President, Chief Risk Officer 50 Brandon Y. Boey Senior Vice President, General Counsel and Corporate Secretary 47 Andrew R. Forbes Executive Vice President, Chief Human Resources Officer 54 William H.
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.
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. We are committed to helping customers succeed financially and supporting sustainable economic growth in the markets we serve.
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.
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.
Supervision and Regulation The following discussion addresses elements of the regulatory framework applicable to bank holding companies and their subsidiaries.
There are no “family relationships” among the directors and executive officers, as the Securities and Exchange Commission defines that term. 7 Supervision and Regulation The following discussion addresses elements of the regulatory framework applicable to bank holding companies and their subsidiaries.
These digital products empower customers to bank anywhere at any time, including, but not limited to, online and mobile banking; MortgageTouch™ , our easy-to-use online platform for consumer borrowers; BusinessTouch™ , our online loan application system with instant approval, making borrowing faster and easier for small businesses; and TreasuryLink™ , our secure online platform designed to offer advanced cash management, monitoring capabilities and controls for commercial customers.
These digital offerings provide customers with access to banking services and include digital banking for self-service transactions; MortgageTouch®, an easy-to-use online platform for consumer borrowers; BusinessTouch®, an online loan application system for small business customers, making borrowing faster and easier for small businesses; and TreasuryLink®, a secure online platform providing cash management services, monitoring capabilities, and control features for commercial customers.
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.
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. Our competitive strategy emphasizes customer service through local decision-making, relationship-based banking, and the delivery of products and services, supported by digital delivery channels, that are intended to meet customer needs.
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.
These principles support our strategic objective to generate consistent, sustainable long-term value for our shareholders, customers, employees, and communities we serve. What We Do. 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.
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.
We continue to focus on driving profitable organic growth through growing customer relationships and deepening our market penetration across our markets, as well as pursuing attractive acquisition opportunities that support our strategy and fit our culture and core values, such as the acquisition of Northway. 1 Revenue is the sum of net interest income and non-interest income. 3 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 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.
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, 2025, the Bank had 72 branches throughout Maine and New Hampshire. The Bank complements its in-person banking services with digital delivery channels supported by internally developed and third-party technology platforms.
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.
Asset growth over the past five years of $1.4 billion included organic growth of $219.2 million and acquired total assets of $1.2 billion. Our growth over this period has been primarily within our Southern Maine, New Hampshire and select Massachusetts markets, complemented by the acquisition of Northway on January 2, 2025.
The FDIA requires the federal banking agencies to take prompt corrective action with respect to depository institutions that do not meet the minimum capital requirements described above. The FDIA establishes five capital categories (“well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized”).
However, the federal banking regulators have indicated they expect to issue a revised proposal, which is expected to modify aspects of the July 2023 proposal, including those described above. Prompt Corrective Action . The FDIA requires the federal banking agencies to take prompt corrective action with respect to depository institutions that do not meet the minimum capital requirements described above.
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 .
The acquisition of Northway added $971.9 million of deposits and $1.2 billion total assets to our balance sheet, and expanded our presence in New Hampshire by adding 17 branches to our network. Refer to Item 7.
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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.
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“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 2 of the consolidated financial statements for additional details regarding the Northway acquisition. Who We Are . We are an award-winning, relationship-driven community bank with a long history of supporting individuals, families, and businesses at every stage of their financial journey.
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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.
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We combine local decision-making with scalable products, modern digital capabilities, and deep market knowledge. With 72 branches across Northern New England, we offer a comprehensive suite of competitive financial products and services. Our investments in digital banking convenience, efficiency, and engagement, enabling customers to bank how, when, and where they choose. Our experienced teams provide personalized advance and tailored solutions.
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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.
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We actively reinvest in the neighborhoods where we live and operate through local lending, targeted philanthropy, and employee volunteerism. As we grow, we remain committed to doing so responsibly, supporting economic vitality, strengthening relationships, and reinforcing our brand as a trusted local partner.
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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.
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We believe strong communities and strong financial performance are mutually reinforcing, and together, they drive long-term value creation. Our Commitment to Community and Responsible Corporate Governance. Our commitment to responsible corporate governance and community engagement is embedded in our culture and decision-making.
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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.
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Brandon Y. Boey joined the Company in 2020 and was named General Counsel in 2023 and Corporate Secretary in 2024, overseeing the Bank’s legal functions, including corporate governance. Prior to becoming General Counsel and Corporate Secretary, Mr.
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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.
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Boey served as SVP, Legal Affairs and BSA Officer, and Director of Compliance bringing a unique range of corporate, regulatory and litigation experience to the Company. Mr.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe Federal Reserve Board may continue to lower short-term interest rates during 2025 in response to economic conditions. Longer-term interest rates, while volatile, have remained elevated. Volatility in interest rates can result in customer deposits flowing away from financial institutions into direct investments, and a prolonged high-interest rate environment may cause the Bank to experience increased deposit migration.
Biggest changeIn addition, volatility in interest rates can result in customer deposits flowing away from financial institutions into direct investments, and a prolonged high-interest rate environment may cause the Bank to experience increased deposit migration. This may cause the Bank to lose some of its low-cost deposit funding or could adversely affect the Bank’s operations and liquidity.
Further, as a bank holding company, we are required inform and consult with FRB supervisory staff prior to declaring and paying a dividend that exceeds earnings for the period for which the dividend is being paid.
Further, as a bank holding company, we are required to inform and consult with FRB supervisory staff prior to declaring and paying a dividend that exceeds earnings for the period for which the dividend is being paid.
To the extent the U.S. continues to transition to a low-carbon economy, related risks may arise from changes in consumer preferences, technologies, public policies and legal and regulatory requirements. New laws and regulations could result in significant costs as the we implement compliance, disclosure and other programs.
To the extent the U.S. continues to transition to a low-carbon economy, related risks may arise from changes in consumer preferences, technologies, public policies and legal and regulatory requirements. New laws and regulations could result in significant costs as we implement compliance, disclosure and other programs.
There is also increased competition by out-of-market competitors through online and mobile channels. Our long-term success depends on our ability to compete successfully with other financial institutions and fintechs. Because we maintain a smaller staff and have fewer financial and other resources than larger institutions with which we compete, we may be limited in our ability to attract customers.
There is also increased competition by out-of-market competitors through online and mobile channels. Our long-term success depends on our ability to compete successfully with other financial institutions and fintechs. Because we maintain a 19 smaller staff and have fewer financial and other resources than larger institutions with which we compete, we may be limited in our ability to attract customers.
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.
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 16 insurance premiums, and a prolonged high-interest rate environment may cause the Bank to experience increased deposit migration.
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.
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.
As a result, a judgment against us in any such litigation and/or legal costs incurred in defending us against such litigation could have a material adverse effect on our financial condition and results of operation. We may incur fines, penalties and other negative consequences from regulatory violations, possibly even inadvertent or unintentional violations.
As a result, a judgment against us in any such litigation and/or legal costs incurred in defending us against such litigation could have a material adverse effect on our financial condition and results of operation. 23 We may incur fines, penalties and other negative consequences from regulatory violations, possibly even inadvertent or unintentional violations.
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.
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 brand 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.
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.
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.
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 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 have higher rates of loss and delinquency on these loans than if the loans were more geographically diverse.
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.
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.
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 “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.
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.
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. Camden National Wealth Management may be negatively affected by changes in economic and market conditions.
Item 1A. Risk Factors An investment in the Company involves risk, which could be substantial. Market, liquidity, credit, operational, legal, compliance, reputational and strategic risks are inherent in our business. The material risks and uncertainties that management believes affect the Company are described below.
Item 1A. Risk Factors An investment in the Company involves risk, which could be substantial. Market, liquidity, credit, operational, legal, compliance and strategic risks are inherent in our business. The material risks and uncertainties that management believes affect the Company are described below.
We issued additional shares of our common stock as consideration for our acquisition of Northway, which diluted our shareholders’ ownership interests. Other future acquisitions may be material 21 to us, and we may issue additional shares of our common stock to pay for those acquisitions, which would further dilute current shareholders’ ownership interests.
We issued additional shares of our common stock as consideration for our acquisition of Northway, which diluted our shareholders’ ownership interests. Other future acquisitions may be material to us, and we may issue additional shares of our common stock to pay for those acquisitions, which would further dilute current shareholders’ ownership interests.
Our operations and financial performance could be adversely affected by natural disasters, and climate change may exacerbate those risks and create compliance, strategic, reputational and other risks. Our business, as well as the operations and activities of our customers, could be negatively affected by climate change.
Our operations and financial performance could be adversely affected by natural disasters, and climate change may exacerbate those risks and create compliance, strategic and other risks. Our business, as well as the operations and activities of our customers, could be negatively affected by climate change.
“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.
“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.
“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.
“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, 2025. There is risk that any change in interest rates could negatively affect our results of operations or financial condition.
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.
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 harm to our brand. In addition, the scope of insurance coverage we maintain may not provide us with full, or even partial, coverage in any particular case.
In particular, the activity of non-bank lenders and other financial technology companies (“fintechs”) has grown significantly over recent years and is expected to continue to grow. Fintechs have offered and may continue to offer bank or bank-like products. For example, a number of fintechs have applied for, and in some cases received, bank or industrial loan charters.
In particular, the activity of non-bank lenders and other financial technology companies (“fintechs”) has grown significantly over recent years and is expected to continue to grow. Fintechs have offered and may continue to offer bank or bank-like products. For example, a number of fintechs have applied for, and in some cases received, bank, non-depository national bank or industrial loan charters.
Moreover, the advent and expansion of social media creates the potential for rapid and widespread dissemination of information, including inaccurate, misleading, or false information, that could damage our reputation and affect our ability to attract and retain customers and employees. We may incur significant losses as a result of ineffective risk management processes and strategies.
Moreover, the advent and expansion of social media creates the potential for rapid and widespread dissemination of information, including inaccurate, misleading, or false information, that could damage our brand and affect our ability to attract and retain customers and employees. We may incur significant losses as a result of ineffective risk management processes and strategies.
If our risk and control framework, or the assumptions underlying our framework, prove ineffective, we may not be able to mitigate our risk exposures effectively, and, as a result, we could incur litigation, negative regulatory consequences, reputational damage or other adverse consequences, and we could suffer unexpected losses that may affect our business, financial condition or results of operations.
If our risk and control framework, or the assumptions underlying our framework, prove ineffective, we may not be able to mitigate our risk exposures effectively, and, as a result, we could incur litigation, negative regulatory consequences, damage to our brand or other adverse consequences, and we could suffer unexpected losses that may affect our business, financial condition or results of operations.
Moreover, our customers, stockholders, employees and other stakeholders have diverse expectations, demands and perspective on these topics, which are continuing to evolve. We may not be able to meet the diverse expectations and demands of all our stakeholders, which could harm our reputation, reduce customer demand for our products and services, and subject us to legal and operational risks.
Moreover, our customers, stockholders, employees and other stakeholders have diverse expectations, demands and perspective on these topics, which are continuing to evolve. We may not be able to meet the diverse expectations and demands of all our stakeholders, which could harm our brand, reduce customer demand for our products and services, and subject us to legal and operational risks.
Although the Company and the Bank have adopted policies and procedures designed to comply with these laws, any failure to comply with these laws and other regulations, or to maintain an adequate compliance program, could result in significant fines, penalties, lawsuits, regulatory sanctions, reputational damage, or restrictions on our business.
Although the Company and the Bank have adopted policies and procedures designed to comply with these laws, any failure to comply with these laws and other regulations, or to maintain an adequate compliance program, could result in significant fines, penalties, lawsuits, regulatory sanctions, damage to our brand, or restrictions on our business.
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.
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 brand, business, financial condition, results of operations or liquidity.
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.
Because we primarily serve individuals and businesses located in Maine and New Hampshire, any negative impact resulting from harm to our brand, 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.
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.
We recently completed our goodwill impairment analysis as of November 30, 2025 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, 2025.
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.
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 damage to our brand, any of which could adversely affect our business, financial condition or results of operations.
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.
Failure to comply with any applicable laws or regulations could result in legal or regulatory sanctions and harm to our brand. 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.
We could also experience increased expenses resulting from strategic planning, litigation and technology and market changes, and reputational harm as a result of negative public sentiment, regulatory scrutiny and reduced investor and employee confidence due to our response to climate change and our climate change strategy.
We could also experience increased expenses resulting from strategic planning, litigation and technology and market changes, and harm to our brand as a result of negative public sentiment, regulatory scrutiny and reduced investor and employee confidence due to our response to climate change and our climate change strategy.
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.
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 damage to our brand, which could have a material adverse effect on our business, financial condition, and results of operations.
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.
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, and future pandemics may affect, hospitality, transportation and commercial real estate industries in Maine.
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.
Any of these occurrences could impact our ability to operate our business, or cause financial loss, potential liability to clients, damage to our brand or regulatory consequences, any of which could have a material adverse effect on our financial condition or results of operations.
Our actual or perceived failure to (i) identify and address potential conflicts of interest, ethical issues, money-laundering, or privacy issues; (ii) meet legal and regulatory requirements applicable to the Bank and to the Company; (iii) maintain the privacy of customer and accompanying personal information; (iv) maintain adequate record keeping; (v) engage in proper sales and trading practices; and (vi) identify the legal, reputational, credit, liquidity and market risks inherent in our products; or any action of one of our employees that results in actual or perceived misconduct or error, among other things, could give rise to reputational risk that could cause harm to the Bank and our business prospects.
Our actual or perceived failure to (i) identify and address potential conflicts of interest, ethical issues, money-laundering, or privacy issues; (ii) meet legal and regulatory requirements applicable to the Bank and to the Company; (iii) maintain the privacy of customer and accompanying personal information; (iv) maintain adequate record keeping; (v) engage in proper sales and trading practices; and (vi) identify the legal, credit, liquidity and market risks inherent in our products; or any action of one of our employees that results in actual or perceived misconduct or error, among other things, could result in damage to our brand that could cause harm to the Bank and our business prospects.
Because of the risks associated with commercial loans, we may experience higher rates of default, and other risks described above may be more pronounced, than if the portfolio were more heavily weighted toward residential mortgage loans.
Beca use of the risks associated with commercial loans, we may experience higher rates of default, and other risks described above may be more pronounced, than if the portfolio were more heavily weighted toward residential mortgage loans.
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.
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 brand could significantly harm our business.
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.
At December 31, 2025, our commercial real estate and commercial loan portfolios comprised 52% 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.
We must adapt to information technology changes in the financial services industry, which could present operational issues, require significant capital spending, or impact our reputation. The financial services industry is constantly undergoing technological changes, with frequent introductions of new technology-driven products and services.
We must adapt to information technology changes in the financial services industry, which could present operational issues, require significant capital spending, or affect our brand. The financial services industry is constantly undergoing technological changes, with frequent introductions of new technology-driven products and services.
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.
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, 2025, brokered deposits made up 2% of our total deposits.
Failure to comply with any legislation, regulation or policy, including as a result of making good faith interpretations that may differ from those taken by enforcement authorities in relevant jurisdictions, could potentially result in substantial fines, criminal sanctions, reputational harm or operational changes.
Failure to comply with any legislation, regulation or policy, including as a result of making good faith interpretations that may differ from those taken by enforcement authorities in relevant jurisdictions, could potentially result in substantial fines, criminal sanctions, damage to the Company’s brand or operational changes.
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.
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, 2025, our goodwill and other identifiable intangible assets totaled $194.1 million.
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.
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.
As part of this acquisition, we expect additional goodwill and other intangible assets to be recognized upon completion of our purchase accounting, as further described within Note 23 of the consolidated financial statements. The goodwill and intangible assets created from the acquisition of Northway will also be subject to assessment for impairment as described above.
As part of this acquisition, additional goodwill and other intangible assets were recognized upon completion of our purchase accounting, as further described within Note 2 of the consolidated financial statements. The goodwill and intangible assets created from the acquisition of Northway were subject to assessment for impairment as described above.
Acts of terrorism, war or other international hostilities, civil unrest, violence or pandemics could cause disruptions to our business or the economy as a whole, such as the disruptions experienced during the COVID-19 pandemic.
Acts of terrorism, war or other international hostilities, civil unrest, violence or pandemics could cause disruptions to our business or the economy as a whole.
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.
Customers may also continue to move non-interest-bearing deposits into interest-bearing accounts, thereby increasing our overall deposit costs. Higher funding costs may continue to reduce our net interest margin and net interest income. Volatility in interest rates can also result in customer deposits flowing away from financial institutions into direct investments.
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.
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.
Our revenue (on a parent-only basis) is derived primarily from interest and dividends paid to us by the Bank.
We are a legal entity separate and distinct from our direct and indirect subsidiaries. Our revenue (on a parent-only basis) is derived primarily from interest and dividends paid to us by the Bank.
A significant reduction in interest income could have a negative impact on our results of operations and financial condition. 19 Competitive and Strategic Risk We experience strong competition within our industry and markets, which may impact our profitability and adversely affect the price of our common stock. Competition in the banking and financial services industry is strong.
Competitive and Strategic Risk We experience strong competition within our industry and markets, which may impact our profitability and adversely affect the price of our common stock. Competition in the banking and financial services industry is strong.
If customers prepay the principal amount of their loans, and we are unable to lend those funds to other borrowers or invest the funds at the same or higher interest rates, interest income will be reduced.
If customers prepay the principal amount of their loans, and we are unable to lend those funds to other borrowers or invest the funds at the same or higher interest rates, interest income will be reduced. A significant reduction in interest income could have a negative impact on our results of operations and financial condition.
Our ability to attract and retain wealth management clients is dependent upon our ability to compete with competitors’ investment products, level of investment performance, client services, and marketing and distribution capabilities. If we are not successful, our results of operations and financial condition may be negatively affected.
Our ability to attract and retain wealth management clients is dependent upon our ability to compete with competitors’ investment products, level of investment performance, client services, and marketing and distribution capabilities.
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.
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.
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.
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.
There has been recent significant change to U.S. trade policies, including tariffs affecting China, Canada and Mexico and there continues to be significant discussion regarding other potential changes to U.S. trade policies, treaties and tariffs, including the potential for additional tariffs. In addition, retaliatory tariffs have been imposed and additional retaliatory tariffs are likely.
There has been recent significant change to U.S. trade policies, including tariffs affecting numerous countries, as well as the imposition of retaliatory tariffs against the United States, and there continues to be significant discussion regarding other potential changes to U.S. trade policies, treaties and tariffs, including the potential for additional tariffs.
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.
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. In July 2025, President Trump signed into law the “Guiding and Establishing National Innovation for U.S.
The Company faces competition in pursuing acquisition opportunities, may not be able to identify attractive acquisition targets or may not be able to complete future acquisitions. In pursuing acquisition opportunities, we may be in competition with other companies having similar growth strategies, including banks, bank holding companies, mutual banks and mutual holding companies.
In pursuing acquisition opportunities, we may be in competition with other companies having similar growth strategies, including banks, bank holding companies, mutual banks and mutual holding companies. In addition, economic conditions may impede our ability to identify or acquire acquisition candidates.
The U.S. federal government, U.S. states and certain other countries and regions have adopted or are considering legislation, regulation or policies on these topics.
Sustainability-related topics as well as companies’ actions and initiatives on such issues, have received significant attention from a wide range of stakeholders. The U.S. federal government, U.S. states and certain other countries and regions have adopted or are considering legislation, regulation or policies on these topics.
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.
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. We are a holding company and dependent upon our subsidiary for dividends, distributions and other payments to meet our liquidity needs.
Removed
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.
Added
Under the current administration, certain U.S. banking regulators have processed charter applications on an accelerated timeline, including applications filed by fintechs. In addition, other fintechs have partnered with existing banks to allow them to offer deposit and loan products to their customers.
Removed
This may cause the Bank to lose some of its low-cost deposit funding or could adversely affect the Bank’s operations and liquidity. Customers may also continue to move non-interest-bearing deposits into interest-bearing accounts, thereby increasing our overall deposit costs.
Added
Stablecoins Act” or the “GENIUS Act.” The GENIUS Act establishes a regulatory framework for “payment stablecoins” and their issuers. Consumers and businesses may view payment stablecoins as a substitute for traditional bank deposits, which could result in deposit withdrawals and increased competition with the Bank’s deposit products.
Removed
Continued market volatility has impacted, and may in the future impact, our business and the value of our common stock.
Added
The GENIUS Act requires the Treasury Department and federal and state regulators to issue regulations on numerous topics to interpret and implement the statute. The effect of the GENIUS Act on the Company and the Bank will depend on the final form of any regulations and cannot be predicted at this time.
Removed
In addition, economic conditions may impede our ability to identify or acquire acquisition candidates. In particular, current market conditions have resulted in large unrealized losses in the investment portfolios at many banking organizations. If we were to acquire such an organization, any such losses would be recognized, thereby impeding our ability to complete an acquisition on acceptable terms.
Added
If we are not successful, our results of operations and financial condition may be negatively affected. 20 The Company faces competition in pursuing acquisition opportunities, may not be able to identify attractive acquisition targets or may not be able to complete future acquisitions.
Removed
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.
Removed
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.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn addition, the Technology Committee receives and evaluates quarterly updates from the DIS on cybersecurity performance and on cybersecurity trends and strategies. The Board of Directors receives quarterly updates from the EVP, Chief Risk Officer (“CRO”) on cybersecurity metrics and the cybersecurity risk management program’s performance. Management Oversight.
Biggest changeIn addition, the Technology Committee receives and evaluates quarterly updates from the DIS on cybersecurity performance and on cybersecurity trends and strategies. The Board of Directors receives quarterly updates from the EVP, CRO on cybersecurity metrics and the cybersecurity risk management program’s performance. Management Oversight.
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.
Cybersecurity Threats During the fiscal year ended December 31, 2025, 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 updates the CRO as appropriate, including as new developments or information related to cyber incidents arise. The Company’s CRO has over 27 years of experience in cybersecurity and information technology. The CRO joined the Company in 2011 and became CRO in July 2023.
The DIS updates the CRO as appropriate, including as new developments or information related to cyber incidents arise. The Company’s CRO has over 30 years of experience in cybersecurity and information technology. The CRO joined the Company in 2011 and became CRO in July 2023.
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.
Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications. The Company’s DIS joined the Company in 2023 and has over 23 years of experience in information technology and cybersecurity. The DIS has held senior management positions in information security for the past ten years.
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 becoming CRO, he served as SVP and Director of Information Security & ERM for six years and prior to that served five years as VP 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.
Quarterly, the Company’s Senior Vice President, Director of Information Security (“DIS”) presents reports to the Audit Committee on vulnerability management and cybersecurity testing effectiveness, emerging threats and industry and regulatory changes that affect cybersecurity, and responds to inquiries from the Audit Committee.
Quarterly, the Company’s SVP, Director of Information Security (“DIS”) presents reports to the Audit Committee on vulnerability management and cybersecurity testing effectiveness, emerging threats and industry and regulatory changes that affect cybersecurity, and responds to inquiries from the Audit Committee.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 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.
Biggest changeItem 2. Properties As of December 31, 2025, the Company owns its principal executive office in Camden, Maine, and leases additional executive offices in Portland, Maine. The Company also leases a service center in Camden, Maine, and owns or leases, and operates, 72 branches located throughout Maine and New Hampshire.
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.
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 6 and 7 of the consolidated financial statements within Item 8. Financial Statements and Supplementary Data.
Removed
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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Biggest changeAs 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
Biggest changeAs of December 31, 2025 and 2024, 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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Biggest changeIssuer'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.
Biggest changeIssuer'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, 2025 — $ — — — November 1-30, 2025 — — — — December 1-31, 2025 — — — — Total — $ — — — In January 2026, the Company's Board of Directors authorized the repurchase of up to 850,000 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, 2025.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock is currently traded on the NASDAQ Global Market (“NASDAQ”) under the ticker symbol “CAC.” The Company has paid quarterly dividends since its foundation in 1984.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock is traded on the NASDAQ Global Market (“NASDAQ”) under the ticker symbol “CAC.” The Company has paid quarterly dividends since its foundation in 1984.
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.
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, 2020 in the Company’s common stock and each of the foregoing indices and assumes the 32 reinvestment of all dividends.
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.
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, 2020 through December 31, 2025.
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.
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 and there were no shares repurchased during 2025.
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.
The high and low closing sales prices (as quoted by NASDAQ for 2025 and 2024) and cash dividends declared per share of the Company’s common stock, by calendar quarter for the past two years, were as follows: 2025 2024 Market Price Dividends Declared per Share Market Price Dividends Declared per Share High Low High Low First Quarter $ 46.52 $ 40.28 $ 0.42 $ 37.80 $ 30.44 $ 0.42 Second Quarter 41.49 36.35 0.42 33.40 28.65 0.42 Third Quarter 43.51 36.60 0.42 41.68 32.01 0.42 Fourth Quarter 46.47 35.45 0.42 49.57 38.75 0.42 As of February 24, 2026, there were 16,925,329 shares of the Company’s common stock outstanding, and there were approximately 1,000 holders of record of the Company’s common stock.
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.
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.
Added
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.
Added
The new repurchase program became effective on January 7, 2026 and will continue until the earlier of: (1) the authorized number of shares are repurchased, (2) the Company’s Board of Directors terminates the program or (3) January 7, 2027. 33 Item 6. [Reserved] Not applicable.

Item 7. Management's Discussion & Analysis

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

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Biggest changeFor 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.
Biggest changeFor the Year Ended December 31, (In thousands, except number of shares, per share data and ratios) 2025 2024 2023 Adjusted Net Income: Net income, as presented $ 65,160 $ 53,004 $ 43,383 Adjustments before taxes: Provision for non-PCD acquired loans 6,294 — — Provision for acquired unfunded commitments 249 — — Merger and acquisition costs 9,286 1,159 — Gain on sale of premises and equipment, net (675) — — Net loss on sale of securities — — 10,310 Signature Bank bond (recovery) write-off — (910) 1,838 Total adjustments before taxes 15,154 249 12,148 Tax impact of above adjustments, as applicable (1) (3,454) 179 (2,551) Adjustment for deferred tax valuation adjustment (2) (2,421) — — Adjusted net income $ 74,439 $ 53,432 $ 52,980 Adjusted Diluted Earnings per Share: Diluted earnings per share, as presented $ 3.84 $ 3.62 $ 2.97 Adjustments before taxes: Provision for non-PCD acquired loans 0.37 — — Provision for acquired unfunded commitments 0.01 — — Merger and acquisition costs 0.55 0.08 — Gain on sale of premises and equipment, net (0.04) — — Net loss on sale of securities — — 0.71 Signature Bank bond (recovery) write-off — (0.06) 0.13 Total adjustments before taxes 0.89 0.02 0.84 Tax impact of above adjustments, as applicable (1) (0.20) 0.01 (0.18) Adjustment for deferred tax valuation adjustment (2) (0.14) — — Adjusted diluted earnings per share $ 4.39 $ 3.65 $ 3.63 (1) Calculated using an estimated combined marginal income tax rate of 23% for the year ended December 31, 2025 and 21% for the years ended December 31, 2024 and 2023.
Non-Performing Assets . Non-performing assets include non-accrual loans, accruing loans 90 days or more past due, and property acquired through foreclosure or repossession.
Non-performing assets include non-accrual loans, accruing loans 90 days or more past due, and property acquired through foreclosure or repossession.
The reputation of financial services companies can be based on brand and trust, and the loss of brand or trust can negatively impact the Company's operations and financial results. Reputation risk exposure is present throughout the organization and our interactions with our various stakeholders, including, but not limited to, our customers, communities and investors.
The reputation of financial services companies can be based on brand and trust, and the loss of brand or trust can negatively impact the Company's operations and financial results. Brand risk exposure is present throughout the organization and our interactions with our various stakeholders, including, but not limited to, our customers, communities and investors.
Borrowings and Advances We utilize a variety of funding sources to manage our borrowings, including, but not limited to, FHLBB and correspondent bank overnight borrowings, FHLBB advances, customer and wholesale repurchase agreements, the Bank Term Funding Program (“BTFP”) (under which the Federal Reserve no longer allowed for additional borrowings from financial institutions as of March 11, 2024), and junior subordinated debentures.
Borrowings and Advances We utilize a variety of funding sources to manage our borrowings, including, but not limited to, FHLBB and correspondent bank overnight borrowings, FHLBB advances, customer and wholesale repurchase agreements, the Bank Term Funding Program (under which the Federal Reserve no longer allowed for additional borrowings from financial institutions as of March 11, 2024), and junior subordinated debentures.
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.
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. • The adequacy of the ACL is overseen by the Management Provision Committee, which is an internal management committee.
At December 31, 2024, the net unrealized losses on the transferred securities reported within AOCI were $41.8 million, net of a deferred tax asset of $11.4 million, and the weighted-average life on these securities was 7.9 years.
At December 31, 2024, the net unrealized losses on the transferred securities reported within AOCI were $41.8 million, net of a deferred tax asset of $11.4 million and the weighted-average of these securities was 7.9 years.
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.
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.
The Company manages compliance and legal risk through various internal and external audit programs, use of third parties for consulting and legal support, ongoing compliance risk assessments, the ERM Committee and various insurance programs. Strategic Alignment Risk.
The Company manages compliance and legal risk through various internal and external audit programs, use of third parties for consulting and legal support, ongoing compliance risk assessments, the ERM Committee and various insurance programs. 74 Strategic Alignment Risk.
At December 31, 2024 and 2023, we used a two-year forecast period and a two-year reversion period for each loan segment to measure the ACL on loans as we believe this methodology aligns the economic forecasted data used to calculate the ACL with the Company’s internal views of the future economic state. • Prepayment speeds: Prepayment speeds are determined for each loan segment utilizing our own historical loan data, as well as consideration of current environmental factors.
At December 31, 2025 and 2024, we used a two-year forecast period and a two-year reversion period for each loan segment to measure the ACL on loans as we believe this methodology aligns the economic forecasted data used to calculate the ACL with the Company’s internal views of the future economic state. • Prepayment speeds: Prepayment speeds are determined for each loan segment utilizing our own historical loan data, as well as consideration of current environmental factors.
As part of our liquidity management, we use internal designations of “short-term” and “long-term” borrowings, and manage our borrowings within each designation: • Short-term borrowings include, but are not limited to, FHLBB and correspondent bank overnight borrowings, FHLBB advances with maturity within one year of origination, the BTFP, and customer repurchase agreements; and • Long-term borrowings may include, but are not limited to, FHLBB advances with maturity greater than one year, wholesale repurchase agreements, and junior subordinated debentures.
As part of our liquidity management, we use internal designations of “short-term” and “long-term” borrowings, and manage our borrowings within each designation: • Short-term borrowings include, but are not limited to, FHLBB and correspondent bank overnight borrowings, FHLBB advances with maturity within one year of origination, customer repurchase agreements; and • Long-term borrowings may include, but are not limited to, FHLBB advances with maturity greater than one year, wholesale repurchase agreements, and junior subordinated debentures.
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.
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, 2025. Deposits The Company receives checking, savings and time deposits primarily from customers located within our markets.
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.
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, 2025 and 2024, the Company's liquidity level exceeded its target.
The regulatory environment mandates the Company and Bank maintain certain levels of capital. These capital levels can change based upon regulatory changes, which can then impact what the Company is able to accomplish from a strategic perspective. For further discussion regarding capital risk and management of this risk, refer to “—Capital Resources,” and Note 14 of the consolidated financial statements.
The regulatory environment mandates the Company and Bank maintain certain levels of capital. These capital levels can change based upon regulatory changes, which can then impact what the Company is able to accomplish from a strategic perspective. For further discussion regarding capital risk and management of this risk, refer to “—Capital Resources,” and Note 15 of the consolidated financial statements.
At December 31, 2024 and 2023, total investments were 20% and 21%, respectively, of total assets. In 2022, we transferred securities from AFS to HTM to help manage our capital position in a rising interest rate environment. The securities were reclassified at fair value at the time of the transfer, which was a non-cash transaction.
At December 31, 2025 and 2024, total investments were 21% and 20%, respectively, of total assets. In 2022, we transferred securities from AFS to HTM to help manage our capital position in a rising interest rate environment. The securities were reclassified at fair value at the time of the transfer, which was a non-cash transaction.
For further discussion regarding credit risk and the credit quality of the Company’s loan portfolio, refer to “—Financial Condition—Asset Quality,” and Note 3 of the consolidated financial statements. Liquidity Risk. Liquidity risk is the current and prospective risk to earnings or capital arising from the Company’s inability to meet its obligations when they come due, without incurring unacceptable losses.
For further discussion regarding credit risk and the credit quality of the Company’s loan portfolio, refer to “—Financial Condition—Asset Quality,” and Note 4 of the consolidated financial statements. Liquidity Risk. Liquidity risk is the current and prospective risk to earnings or capital arising from the Company’s inability to meet its obligations when they come due, without incurring unacceptable losses.
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.
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.
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 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. 38 Adjusted return on average tangible equity is calculated the same as return on average tangible equity but uses adjusted net income which excludes certain transactions as shown in the table above.
The Board and Management ALCO monitor derivative activities relative to their expectations and our hedging policies. Refer to Note 12 of the consolidated financial statements for further discussion of our derivatives instruments. Capital Risk. Capital risk is the risk that an investor may lose all or part of the principal amount invested.
The Board and Management ALCO monitor derivative activities relative to their expectations and our hedging policies. Refer to Note 13 of the consolidated financial statements for further discussion of our derivatives instruments. Capital Risk. Capital risk is the risk that an investor may lose all or part of the principal amount invested.
Refer to Notes 12 and 13 of the consolidated financial statements for additional detail on the Company’s derivatives and collateral. Investments The Company utilizes the investment portfolio to manage liquidity, interest rate risk, and regulatory capital, as well as to take advantage of market conditions to generate returns without undue risk.
Refer to Notes 13 and 14 of the consolidated financial statements for additional detail on the Company’s derivatives and collateral. Investments The Company utilizes the investment portfolio to manage liquidity, interest rate risk, and regulatory capital, as well as to take advantage of market conditions to generate returns without undue risk.
If we are required to use dividends from the Bank to service unforeseen commitments in the future, we may be required to reduce the dividends paid to our shareholders going forward. Please refer to Note 14 of the consolidated financial statements for discussion and details of the Company and Bank's capital regulatory requirements.
If we are required to use dividends from the Bank to service unforeseen commitments in the future, we may be required to reduce the dividends paid to our shareholders going forward. Please refer to Note 15 of the consolidated financial statements for discussion and details of the Company and Bank's capital regulatory requirements.
The Company manages its strategic alignment and reputation risk through various internal policies and programs, including, but not limited to, the Company's core values, code of ethics policy, financial code of ethics policy, Audit Committee complaint policy, employee handbook, and other policies and programs, as well as through strategic planning and oversight by the Board of Directors.
The Company manages its strategic alignment and brand risk through various internal policies and programs, including, but not limited to, the Company's core values, code of ethics policy, financial code of ethics policy, Audit Committee complaint policy, employee handbook, and other policies and programs, as well as through strategic planning and oversight by the Board of Directors.
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.
At December 31, 2025 and 2024, the Company’s investment portfolio generally consisted of MBS, CMO, municipal and corporate debt securities, FHLBB and FRB common stock, and mutual funds held in a rabbi trust for purposes of Company executive and director nonqualified retirement plans.
These financial instruments include commitments to extend credit and standby letters of credit. Many of the commitments will expire without being drawn upon, and thus, the total amount does not necessarily represent future cash requirements. Refer to Note 11 of the consolidated financial statements for additional details.
These financial instruments include commitments to extend credit and standby letters of credit. Many of the commitments will expire without being drawn upon, and thus, the total amount does not necessarily represent future cash requirements. Refer to Note 12 of the consolidated financial statements for additional details.
As macroeconomic factor conditions worsen, the PD increases, and the 40 corresponding LGD increases, resulting in an increase in the ACL on loans.
As macroeconomic factor conditions worsen, the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans.
Please refer to Notes 1 and 6 of the consolidated financial statements for discussion and details of our leases. In the normal course of business, we are a party to credit related financial instruments with off-balance sheet risk, which are not reflected in the consolidated statements of condition.
Please refer to Notes 1 and 7 of the consolidated financial statements for discussion and details of our leases. In the normal course of business, we are a party to credit related financial instruments with off-balance sheet risk, which are not reflected in the consolidated statements of condition.
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.
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, 2025, 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, 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.
The significant key assumptions used with the ACL on loans calculation at December 31, 2025 and 2024 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.
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.
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 73 internal control environment.
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.
While our current evaluation indicates that the ACL on loans at December 31, 2025 and 2024 was appropriate, the allowance may need to be increased under adversely different conditions or assumptions.
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.
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, 2025 vs.
Other forms of deposits include brokered deposits and deposits with the Certificate of Deposit Account Registry System (“CDARS”).
Other forms of deposits include brokered deposits and deposits with the Certificate of Deposit Account Registry System.
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.
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.
The Management Provision Committee supports the oversight efforts of the Audit Committee of the Board of Directors. • The Directors' Credit Committee of the Board of Directors reviews large credit exposures, monitors external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, and concentration levels. • The Audit Committee of the Board of Directors has approval authority and oversight responsibility for the ACL adequacy and methodology.
The Management Provision Committee supports the oversight efforts of the Audit Committee of the Board of Directors. • The Directors' Credit Committee of the Board of Directors reviews large credit exposures, monitors external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, and concentration levels. • The Audit Committee of the Board of Directors has approval authority and oversight responsibility for the ACL adequacy and methodology. 60 Non-Performing Assets .
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.
At December 31, 2025 and 2024, all municipal bonds carried an investment-grade credit rating. At December 31, 2025 and 2024, corporate bonds were 3% of the book value of the total bond portfolio.
We monitor and assess Maine unemployment, changes in Maine GDP, changes in National GDP, and changes in Maine's Housing Price Index at least annually to determine if these macroeconomic factors continue to be the most predictive indicator of losses within our loan portfolio.
We monitor and assess Maine unemployment, changes in National GDP, changes in National Retail Sales, and changes in Maine's Housing Price Index at least annually to determine if these macroeconomic factors 41 continue to be the most predictive indicator of losses within our loan portfolio.
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.
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. Brand Risk. Brand risk is the current and prospective impact on earnings and capital arising from negative public opinion.
As of December 31, 2024, client assets under management by Camden National Wealth Management were $1.2 billion. It is estimated that a 1% increase or decrease in client assets under management would result in a de minimis impact to our consolidated financial results. Interest Rate Risk. Interest rate risk represents the sensitivity of earnings to changes in market interest rates.
As of December 31, 2025, client assets under management by Camden National Wealth Management were $1.3 billion. It is estimated that a 1% increase or decrease in client assets under management would result in a de minimis impact to our consolidated financial results. Interest Rate Risk. Interest rate risk represents the sensitivity of earnings to changes in market interest rates.
All other market rates are floored at the lesser of current levels or 0.25%. 69 As of December 31, 2024, 2023 and 2022, our net interest income sensitivity analysis reflected the following changes to net interest income assuming no balance sheet growth or change in composition, and a parallel shift in interest rates.
All other market rates are floored at the lesser of current levels or 0.25%. 72 As of December 31, 2025, 2024 and 2023, our net interest income sensitivity analysis reflected the following changes to net interest income assuming no balance sheet growth or change in composition, and a parallel shift in interest rates.
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.
As of and for the years ended December 31, 2025, 2024 and 2023, we did not record 55 any allowances or write-down any of our AFS debt securities in an unrealized loss position.
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.
Estimated Changes in Net Interest Income As of December 31, Rate Change from Year 1 – Base 2025 2024 2023 Year 1 +200 basis points (2.1) % (1.6) % (0.6) % -200 basis points 3.1 % 3.0 % — % Year 2 +200 basis points 5.2 % 5.2 % 11.4 % -200 basis points 7.7 % 14.4 % 11.5 % The preceding sensitivity analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results.
Note 3 and Note 8 of the consolidated financial statements provide information on related party lending and deposit transactions, respectively. We have not entered into significant related party transactions. Asset Quality Asset quality is of the upmost importance to the Company, and continues to be of great focus given current market conditions.
Note 4 and Note 9 of the consolidated financial statements provide information on related party lending and deposit transactions, respectively. We have not entered into significant related party transactions. Asset Quality Asset quality is of the upmost importance to the Company, and continues to be of great focus given current market conditions.
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.
At December 31, 2025 and 2024, the Company and Bank met all regulatory capital requirements and the Bank continues to be classified as “well capitalized” under prompt corrective action provisions. 71 RISK MANAGEMENT The Company’s Board of Directors and management have identified significant risk categories which affect the Company.
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.
Small Business Administration FHLBB: Federal Home Loan Bank of Boston SERP: Supplemental executive retirement plans FRB: Federal Reserve System Board of Governors SOFR: Secured Overnight Financing Rate FRBB: Federal Reserve Bank of Boston UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation GAAP: Generally accepted accounting principles in the United States 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 adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income and adjusted pre-tax, pre-provision income; the efficiency ratio; return on average tangible equity and adjusted return on average tangible equity; tangible book value per share and tangible common equity ratio; net interest income (fully-taxable equivalent); core net interest margin (fully taxable equivalent); and core deposits and average core deposits.
The following table highlights the interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms ( i.e ., “foregone interest income”) for the periods indicated: For the Year Ended December 31, (In thousands) 2024 2023 2022 Foregone interest income $ 190 $ 131 $ 145 58 Potential Problem Loans .
The following table highlights the interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms ( i.e ., “foregone interest income”) for the periods indicated: For the Year Ended December 31, (In thousands) 2025 2024 2023 Foregone interest income $ 421 $ 190 $ 131 Potential Problem Loans .
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.
Refer to Note 20 of the consolidated financial statements for further discussion of income taxes and related deferred tax assets and liabilities. 2024 Operating Results as Compared to 2023 Operating Results Results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 can be found in Item 7.
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.
Included within the Company’s cash and cash equivalents balances at December 31, 2025 and 2024, was cash held in escrow by the FHLBB as collateral posted by the counterparties for our derivatives in a net asset position at each reporting date totaling $7.2 million and $13.2 million, respectively. We and the counterparty manage these cash accounts daily.
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.
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. Damage to our brand due to a technology and/or cybersecurity event can be significant to overcome depending on the severity of the event.
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.
Refer to Note 13 of the consolidated financial statements for further discussion of our derivatives and hedge instruments. 70 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.
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.
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, 2025, 2024, and 2023, the Bank declared dividends payable to the Company in the amount of $25.4 million, $30.1 million, and $22.5 million, respectively.
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.
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 $150.3 million as of December 31, 2025. We also believe that we have additional untapped access to the brokered deposit market and wholesale reverse repurchase transaction market.
The carrying value of residential real estate and commercial loans pledged as collateral was $1.9 billion for both December 31, 2024 and 2023, respectively. The carrying value of securities pledged as collateral at the FHLBB was $4.0 million and $4.3 million at December 31, 2024 and 2023, respectively.
The carrying value of residential real estate and commercial loans pledged as collateral was $2.3 billion and $1.9 billion for December 31, 2025 and 2024, respectively. The carrying value of securities pledged as collateral at the FHLBB was $0 and $4.0 million at December 31, 2025 and 2024, 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.
At December 31, 2025, 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 28% and 29%, respectively, of our total commercial real estate portfolio and both were 12% and 13%, respectively, of total loans.
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.
There were no changes to the Company’s or the Bank's capital ratios that occurred subsequent to December 31, 2025 that would change the Company or Bank's regulatory capital categorization.
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.
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, 2025, qualifying loans with a book value of $2.3 billion were pledged as collateral.
Our practice is to secure borrowings from the FHLBB with qualified commercial and residential real estate loans, home equity loans and certain investment securities. At December 31, 2024, our total borrowing capacity with FHLBB was $711.0 million. Customer repurchase agreements are secured by mortgage-backed securities and government-sponsored enterprises.
Our practice is to secure borrowings from the FHLBB with qualified commercial and residential real estate loans, home equity loans and certain investment securities. At December 31, 2025, our total borrowing capacity with FHLBB was $924.2 million. Customer repurchase agreements are secured by mortgage-backed securities and government-sponsored enterprises.
Return on average tangible equity is the ratio of (i) net income, adjusted for tax effected amortization of core deposit intangible assets and other adjustments, as necessary, to (ii) average shareholders' equity, adjusted for average goodwill and core deposit intangible assets.
Return on average tangible equity is the ratio of (i) net income, adjusted for tax effected amortization of CDI assets and other adjustments, as necessary, to (ii) average shareholders' equity, adjusted for average goodwill and CDI assets.
“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.
“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 GDP: Gross domestic product ALCO: Asset/Liability Committee HTM: Held-to-maturity ACL: Allowance for credit losses LGD: Loss given default AOCI: Accumulated other comprehensive income (loss) LIBOR: London Interbank Offered Rate ASC: Accounting Standards Codification LTIP: Long-Term Performance Share Plan ASU: Accounting Standards Update Management ALCO: Management Asset/Liability Committee Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation MBS: Mortgage-backed security BOLI: Bank-owned life insurance MSPP: Management Stock Purchase Plan Board ALCO: Board of Directors' Asset/Liability Committee N/A: Not applicable BTFP: Bank Term Funding Program, introduced by the Federal Reserve Bank in March 2023 NCT III: Northway Capital Trust III, an unconsolidated entity formed by Northway Financial, Inc., acquired by the Company on January 2, 2025 CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation NCT IV: Northway Capital Trust IV, an unconsolidated entity formed by Northway Financial, Inc., acquired by the Company on January 2, 2025 CD: Certificate of deposits Northway Northway Financial, Inc., acquired by the Company on January 2, 2025 CDI: Core deposit intangible 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 OBBBA: One Big Beautiful Bill Act CMO: Collateralized mortgage obligation OCC: Office of the Comptroller of the Currency CPR: Conditional prepayment rate OCI: Other comprehensive income (loss) CUSIP: Committee on Uniform Securities Identification Procedures OREO: Other real estate owned DCRP: Defined Contribution Retirement Plan PCD: Purchase Credit Deteriorated EPS: Earnings per share PD: Probability of default FASB: Financial Accounting Standards Board ROU: Right-of-use FDIC: Federal Deposit Insurance Corporation SBA: U.S.
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 HTM investments as of December 31, 2024 and 2023.
Refer to Note 1 of the consolidated financial statements for further discussion of our practices and policies, and refer to Note 3 of the consolidated financial statements for additional details of our assessment of the allowance for HTM investments as of December 31, 2025 and 2024.
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.
The overall mix of debt securities at December 31, 2025 compared to December 31, 2024 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, 2025 was 4.9 years, compared to 5.2 years at December 31, 2024.
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.
Our AFS debt securities portfolio, which comprised 64% and 52% of our investment portfolio at December 31, 2025 and 2024, respectively, was carried at fair value using level 2 valuation techniques. Refer to Notes 1 and 22 of the consolidated financial statements for further details on the Company's fair value techniques.
Tangible book value per share is the ratio of (i) shareholders’ equity less goodwill, and core deposit intangible assets to (ii) total common shares outstanding at period end.
Tangible Book Value per Share and Tangible Common Equity Ratio . Tangible book value per share is the ratio of (i) shareholders’ equity less goodwill, and CDI assets to (ii) total common shares outstanding at period end.
Income from fiduciary services represents the fees earned for investment advisory and trust services provided by Camden National Wealth Management. The fees earned are primarily a percentage of our clients' assets under management. Assets under management increased 10% during 2024 to $1.2 billion as of December 31, 2024.
Income from fiduciary services represents the fees earned for investment advisory and trust services provided by Camden National Wealth Management. The fees earned are primarily a percentage of our clients' assets under management. Assets under management increased 9% during 2025 to $1.3 billion as of December 31, 2025.
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.
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 $828.3 million, or 15%, of total deposits as of December 31, 2025, and $760.8 million, or 16%, of total deposits as of December 31, 2024.
Net interest income, which is our largest source of revenue, accounted for 75%, 81 % and 78% of total revenues for the years ended 2024, 2023 and 2022, respectively.
Net interest income, which is our largest source of revenue, accounted for 79%, 75 % and 81% of total revenues for the years ended 2025, 2024 and 2023, respectively.
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.
At December 31, 2025 and 2024, the book value of U.S. government and government-sponsored agencies represented approximately 93% and 91%, respectively, of the AFS and HTM debt securities portfolio.
(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.
(2) Revenue is the sum of net interest income and non-interest income. Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity.
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 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 4 of the consolidated financial statements for further discussion. Fair Value of Loans Acquired in Business Combinations.
Strong Asset Quality – Key credit quality metrics in both commercial and consumer portfolios remained resilient throughout 2024, headlined by non-performing assets of 0.11% of total assets and past due loans of 0.05% of total loans at December 31, 2024.
Strong Asset Quality – Key credit quality metrics in both commercial and consumer portfolios remained resilient throughout 2025, headlined by non-performing assets of 0.10% of total assets and past due loans of 0.16% of total loans at December 31, 2025.
We are required to maintain a certain level of investment in FHLBB stock based on our level of FHLBB advances, and maintain a certain level of investment in FRB common stock based on the Bank's capital levels.
These investments are carried at cost. We are required to maintain a certain level of investment in FHLBB stock based on our level of FHLBB advances, and maintain a certain level of investment in FRB common stock based on the Bank's capital levels.
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.
The following table presents certain information regarding shareholders’ equity for the periods indicated: As of and For the Year Ended December 31, 2025 2024 2023 Financial Ratios Average equity to average assets 9.44 % 8.92 % 8.18 % Common equity ratio 9.99 % 9.15 % 8.66 % Tangible common equity ratio (non-GAAP) 7.41 % 7.64 % 7.11 % Dividend payout ratio 45.21 % 46.28 % 56.38 % Per Share Data Book value per share $ 41.16 $ 36.44 $ 33.99 Tangible book value per share (non-GAAP) $ 29.69 $ 29.91 $ 27.42 Dividends declared per share $ 1.68 $ 1.68 $ 1.68 LIQUIDITY Our liquidity needs require the availability of cash to meet the withdrawal demands of depositors and credit commitments to borrowers.
In addition to managing our interest rate risk position and earnings through the sale of these loans, we also manage our liquidity position through timely sales of residential mortgage loans to the secondary market. For the year ended December 31, 2024, we sold 56%, or $221.9 million, of our residential mortgage loan originations to the secondary market. Investments .
In addition to managing our interest rate risk position and earnings through the sale of these loans, we also manage our liquidity position through timely sales of residential mortgage loans to the secondary market. For the year ended December 31, 2025, we sold 52%, or $242.4 million, of our residential mortgage loan originations to the secondary market. Investments .
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.
The weighted average life of our debt securities portfolio at December 31, 2025 was 6.7 years, compared to 7.0 years at December 31, 2024. 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.
As of December 31, 2024 and 2023, $334.8 million and $337.6 million of the MBS and CMO debt securities portfolio, or 56% and 54%, respectively, were designated as AFS and not pledged as collateral.
As of December 31, 2025 and 2024, $303.6 million and $334.8 million of the MBS and CMO debt securities portfolio, or 33% and 56%, respectively, were designated as AFS and not pledged as collateral.
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 book value of corporate and municipal bonds carrying a credit rating of “AA” or higher at each of December 31, 2025 and 2024 and was 4% and 5%, respectively, of the AFS and HTM debt securities. 54 Our other investments on the consolidated statements of condition consist of FHLBB, FRB and other correspondent bank common stock.
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.
We declared dividends to shareholders in the aggregate amount of $29.5 million, or $1.68 per share, $24.6 million, or $1.68 per share, and $24.5 million, or $1.68 per share, for the years ended December 31, 2025, 2024 and 2023, respectively.
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.
At December 31, 2025 and 2024, corporate bonds with a book value of $26.0 million and $25.9 million, or 68% and 70% of the corporate bond portfolio, carried an investment-grade credit rating.
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.
As of December 31, 2025, we had interest rate swap agreements with a total notional of $63.0 million related to our junior subordinated debentures, $25.0 million of notional interest rate swap agreements on variable rate deposits to mitigate exposure to rising rates, $325.0 million of notional interest rate swap agreements on short-term fixed-rate rolling funding to mitigate exposure to rising rates, and $475.0 million of notional interest rate swap agreements to hedge fixed-rate residential mortgages using the “portfolio layer” method, and $403.8 million of notional interest rate swap agreements related to commercial loan level derivative program with both our commercial customers and a corresponding swap dealer.
December 31, 2023 For the Year Ended December 31, 2023 vs.
December 31, 2024 For the Year Ended December 31, 2024 vs.
Regulatory assessment fees are based on a number of factors, including but not limited to, asset growth, regulator risk assessment and positive or negative trends specific to the financial institution.
Regulatory assessments are the costs incurred and paid to various regulatory agencies, including the FDIC and OCC. Regulatory assessment fees are based on a number of factors, including but not limited to, asset growth, regulator risk assessment and positive or negative trends specific to the financial institution.
“ 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.
“ Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s 2024 annual report on Form 10-K filed with the SEC on March 7, 2025. 53 FINANCIAL CONDITION Cash and Cash Equivalents Total cash and cash equivalents were $97.5 million as of December 31, 2025, compared to $215.0 million at December 31, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 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
Biggest changeItem 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. 75

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