Form 8-K - Current report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 30, 2024

Camden National Corporation

(Exact name of registrant as specified in its charter)

Maine			01-28190						01-0413282
(State or other jurisdiction of incorporation)			(Commission File Number)						(IRS Employer Identification No.)
Two Elm Street			Camden			Maine			04843
(Address of principal executive offices)									(Zip Code)

Registrant's telephone number, including area code: [phone]

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, without par value			CAC			The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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Item 2.02			Results of Operations and Financial Condition.

 

Camden National Corporation (the “Company”) issued a press release on July 30, 2024 announcing earnings for the fiscal quarter ended June 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1. This information is being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

Item 9.01			Financial Statements and Exhibits.

(d)    The following exhibits are filed with this Report:

 

Exhibit No.			Description
99.1			Press Release Announcing Earnings for the Fiscal Quarter Ended June 30, 2024.
101			Cover Page Interactive Data - the cover page XBRL tags are embedded within the Inline XBRL document.
104			Cover Page Interactive Data File - Included in Exhibit 101.

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: July 30, 2024

 

			CAMDEN NATIONAL CORPORATION (Registrant)
			By:			/s/ MICHAEL R. ARCHER
						Michael R. Archer Chief Financial Officer and Principal Financial & Accounting Officer

 

CONTACT:                                

Michael Archer

Executive Vice President

Chief Financial Officer

Camden National Corporation

[phone]

[e-mail]

FOR IMMEDIATE RELEASE

Camden National Corporation Reports Second Quarter 2024 Earnings of $12.0 Million and Diluted EPS of $0.81

Net Interest Margin Expands, Asset Quality Remains Strong

CAMDEN, Maine, July 30, 2024/PRNewswire/--Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”) today reported earnings for the quarter ended June 30, 2024 of $12.0 million and diluted earnings per share ("EPS") of $0.81, compared to $13.3 million and $0.91, respectively, for the first quarter of 2024.

On a non-GAAP-basis, earnings before provision expense and income tax expense (“Pre-tax, pre-provision income”) for the second quarter of 2024 was $15.5 million, compared to $14.2 million for the first quarter of 2024.

“This quarter’s results highlight the strength and stability of our long-standing organization,” said Simon Griffiths, president and chief executive officer of Camden National Corporation. “We’re benefiting from our strong capital position, disciplined credit culture and expense management. Our well-diversified and stable funding mix positions us well to win new client relationships and deepen existing ones through our relationship banking approach and exceptional customer service.”

For the first six months of 2024, the Company reported net income of $25.3 million and diluted EPS of $1.72, compared to $25.1 million and $1.72, respectively, for the six months ended June 30, 2023.

SECOND QUARTER 2024 HIGHLIGHTS

•Our return on average assets was 0.84% for the second quarter of 2024, and our return on average equity was 9.60% and, on a non-GAAP basis, our return on average tangible equity was 11.96%.

•Our net interest margin increased to 2.36% for the second quarter of 2024 from 2.30% for the first quarter of 2024.

•Our asset quality continues to be very strong, highlighted by loans 30-89 days past due of 0.05% of total loans and non-performing loans of 0.23% of total loans at June 30, 2024.

•Our capital position remained strong with regulatory capital ratios well in excess of required regulatory levels. At June 30, 2024, our common equity ratio was 8.88% and, on a non-GAAP basis, tangible common equity ratio was 7.34%.

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•At June 30, 2024, uninsured and uncollateralized1 deposits accounted for 14.6% of total deposits, and available liquidity sources were 2.0 times uninsured and uncollateralized deposits.

FINANCIAL CONDITION

As of June 30, 2024, total assets were $5.7 billion, a decrease of 1% since March 31, 2024. The decrease was driven by lower cash balances of $71.2 million between periods.

Investments totaled $1.1 billion on June 30, 2024, a decrease of 2% since March 31, 2024. We continue to redeploy monthly cash flows from the investment portfolio to fund loan growth to maximize our earning-asset yield. The investment portfolio represented 20% of total assets on June 30, 2024, and March 31, 2024. As of June 30, 2024, and March 31, 2024, the duration of the Company's securities was 5.5 years, and the weighted average life was 7.2 years at each date.

Loans totaled $4.1 billion on June 30, 2024, an increase of $18.3 million since March 31, 2024, driven by a 3% increase in our commercial loans and a 2% increase in consumer and home equity loans during the quarter. In the second quarter of 2024, we sold 52% of our residential mortgage production.

Asset quality through the second quarter of 2024 remained strong. We continue to review our loan portfolio and, to-date, we have not identified any signs of systemic stress. On June 30, 2024, loans 30-89 days past due to total loans remained flat from March 31, 2024 at 0.05% of total loans. Annualized net charge-offs for the second quarter of 2024 increased 2 basis points from the first quarter of 2024 to 0.04% of average loans. The Company’s allowance for credit losses ("ACL") on loans was 0.86% as of June 30, 2024, and March 31, 2024. On June 30, 2024, the ACL was 3.7 times the total non-performing loans, compared to 4.7 times on March 31, 2024.

Deposits totaled $4.5 billion on June 30, 2024, a decrease of 1% since March 31, 2024. Checking account balances decreased by 2% during the second quarter of 2024, primarily due to normal business activities of one of our large commercial relationships and managed outflow of high-cost municipal deposits to optimize our funding costs. In the second quarter of 2024, we launched a high-yield savings deposit product in an effort to raise cost effective deposits and drive new customer acquisition. Through this new product, we drove savings deposit growth of 8% during the second quarter of 2024.

In June 2024, we prepaid a portion of our Bank Term Funding Program ("BTFP") funding totaling $55.0 million. As of June 30, 2024, the Company had remaining BTFP funding of $170.0 million at a fixed interest rate of 4.76% that is scheduled to mature in January 2025.

As of June 30, 2024, the Company's regulatory capital ratios were each well in excess of regulatory capital requirements. The Company's common equity ratio was 8.88%, and, on a non-GAAP basis, its tangible common equity ratio was 7.34%, compared to 8.66% and 7.12%, respectively, at March 31, 2024.

The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 5.09%, based on the Company's closing share price of $33.00, as reported by NASDAQ on June 28, 2024 (the last trading day of the second quarter of 2024), payable on July 31, 2024, to shareholders of record on July 15, 2024.

The Company repurchased 50,000 shares of its common stock at an average price of $32.19 per share through the first six months of 2024.

1 Uncollateralized deposits are customer deposits for which the Company has not pledged any of its assets, including investment securities, or provided any other type of guarantee

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FINANCIAL OPERATING RESULTS (Q2 2024 vs. Q1 2024)

Net income for the second quarter of 2024 was $12.0 million, a decrease of $1.3 million, or 10%, compared to the first quarter of 2024. The decrease was driven by negative provision expense in the first quarter of 2024 of $2.1 million compared to provision expense of $650,000 for the second quarter. On a non-GAAP basis, pre-tax, pre-provision income was $15.5 million an increase $1.3 million, or 9%, between the same periods.

Net interest income for the second quarter of 2024 was $32.2 million, an increase of $911,000, or 3%, compared to the first quarter of 2024. The increase was driven by net interest margin expansion of six basis points between periods to 2.36% for the second quarter of 2024. Interest-earning asset yields increased 14 basis points to 4.58% for the second quarter of 2024, primarily due to the deployment of investment cash flows to fund new loan originations at current market interest rates and the maturity of a $100.0 million balance sheet derivative in June 2024 that contributed to the yield increase in the commercial real estate loan portfolio. The increase in our earning-asset yield more than offset the increase in funding costs, which increased eight basis points to 2.35% for the second quarter of 2024, led by an eight basis point increase in deposit costs to 2.05% over the same period.

Provision expense of $650,000 was recorded for the second quarter of 2024, consisting of provision for loan losses of $188,000 and the provision for unfunded commitments of $462,000. The provision for loan losses for the second quarter of 2024 was driven by modest loan growth. The provision for unfunded commitment for the second quarter of 2024 was driven by the increase in the committed commercial loan pipeline to $148.4 million as of June 30, 2024 compared to $86.0 million as of March 31, 2024.

Non-interest income for the second quarter of 2024 was $10.6 million, an increase of $323,000, or 3%, over the first quarter of 2024. The increase between periods was driven by an increase in debit card income of $203,000, and brokerage and wealth management income of $323,000 in total. Mortgage banking income was lower by $292,000 between periods and was driven by the change in fair value on loans held for sale and loan pipelines.

Non-interest expense for the second quarter of 2024 was $27.3 million, a decrease of $52,000, compared to the first quarter of 2024. We continue to manage costs in response to revenue pressures from the current economic environment. Our GAAP efficiency ratio for the second quarter of 2024 was 63.77% and non-GAAP efficiency ratio was 63.53%, compared to 65.78% and 65.55% for the first quarter of 2024, respectively.

Q2 2024 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 3:00 p.m., Eastern Time, on Tuesday, July 30, 2024 to discuss its second quarter 2024 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (Domestic):            [phone]

Live dial-in (All other locations):        [phone]

Participant access code:            401866

Live webcast:                https://events.q4inc.com/attendee/309824299

A link to the live webcast will be available on Camden National's website under "About — Investor Relations" at CamdenNational.bank prior to the meeting, and a replay of the webcast will be available on Camden National’s website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.

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ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ: CAC) is Northern New England’s largest publicly traded bank holding company, with $5.7 billion in assets and 57 banking centers in Maine and New Hampshire. Founded in 1875, Camden National Bank is a full-service community bank, offering the latest digital banking, complemented by award-winning, personalized service. Camden National Bank has been recognized as one of the Best Places to Work by Best Companies Group for three years in a row. To learn more, visit CamdenNational.bank. Member FDIC. Equal Housing Lender.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National's ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements in response to recent developments affecting the banking sector; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of the war in Ukraine, conflict in the Middle East and other notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possible materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Camden National does not have any obligation to update forward-looking statements.

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USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures such as: adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; tangible book value per share; core deposits and average core deposits. Management utilizes these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliations to the comparable GAAP financial measures can be found in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts. Annualized data may not be indicative of any four-quarter period and is presented for illustrative purposes only.

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Selected Financial Data

(unaudited)

						At or For The Three Months Ended																		At or For The Six Months Ended
(In thousands, except number of shares and per share data)						June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Financial Condition Data
Loans						$	4,139,361					$	4,121,040					$	4,100,131					$	4,139,361					$	4,100,131
Total assets						5,724,380						5,794,785						5,743,931						5,724,380						5,743,931
Deposits						4,514,020						4,551,524						4,693,745						4,514,020						4,693,745
Shareholders' equity						508,286						501,577						467,376						508,286						467,376
Operating Data and Per Share Data
Net income						$	11,993					$	13,272					$	12,389					$	25,265					$	25,116
Adjusted net income (non-GAAP)(1)						11,993						12,553						12,389						24,546						27,340
Pre-tax, pre-provision income (non-GAAP)(1)						15,519						14,233						15,657						29,752						33,638
Diluted EPS						0.81						0.91						0.85						1.72						1.72
Adjusted diluted EPS (non-GAAP)(1)						0.81						0.86						0.85						1.67						1.82
Profitability Ratios
Return on average assets						0.84		%				0.93		%				0.87		%				0.89		%				0.89		%
Adjusted return on average assets (non-GAAP)(1)						0.84		%				0.88		%				0.87		%				0.87		%				0.95		%
Return on average equity						9.60		%				10.77		%				10.66		%				10.18		%				10.91		%
Adjusted return on average equity (non-GAAP)(1)						9.60		%				10.19		%				10.66		%				9.89		%				11.54		%
Return on average tangible equity (non-GAAP)(1)						11.96		%				13.46		%				13.55		%				12.70		%				13.88		%
Adjusted return on average tangible equity (non-GAAP)(1)						11.96		%				12.74		%				13.55		%				12.34		%				15.10		%
GAAP efficiency ratio						63.77		%				65.78		%				63.42		%				64.76		%				61.31		%
Efficiency ratio (non-GAAP)(1)						63.53		%				65.55		%				63.07		%				64.52		%				60.99		%
Net interest margin (fully-taxable equivalent)						2.36		%				2.30		%				2.40		%				2.32		%				2.47		%
Asset Quality Ratios
ACL on loans to total loans						0.86		%				0.86		%				0.90		%				0.86		%				0.90		%
Non-performing loans to total loans						0.23		%				0.19		%				0.13		%				0.23		%				0.13		%
Annualized net charge-offs to average loans						0.04		%				0.02		%				0.04		%				0.03		%				0.03		%
Capital Ratios
Common equity ratio						8.88		%				8.66		%				8.14		%				8.88		%				8.14		%
Tangible common equity ratio (non-GAAP)(1)						7.34		%				7.12		%				6.58		%				7.34		%				6.58		%
Tier 1 leverage capital ratio						9.64		%				9.59		%				9.29		%				9.64		%				9.29		%
Total risk-based capital ratio						14.46		%				14.52		%				13.95		%				14.46		%				13.95		%

(1) This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited)."

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Consolidated Statements of Condition Data

(unaudited)

(In thousands)						June 30, 2024						March 30, 2024						June 30, 2023						% Change Jun 2024 vs. Mar 2024						% Change Jun 2024 vs. Jun 2023
ASSETS
Cash, cash equivalents and restricted cash						$	105,560					$	176,719					$	94,278					(40)		%				12		%
Investments:
Trading securities						4,959						4,847						4,235						2		%				17		%
Available-for-sale securities, at fair value						579,534						601,576						658,205						(4)		%				(12)		%
Held-to-maturity securities, at amortized cost						533,600						540,349						534,584						(1)		%				—		%
Other investments						17,105						16,392						14,655						4		%				17		%
Total investments						1,135,198						1,163,164						1,211,679						(2)		%				(6)		%
Loans held for sale, at fair value						14,321						9,524						12,036						50		%				19		%
Loans:
Commercial real estate						1,697,979						1,702,952						1,677,002						—		%				1		%
Commercial						409,682						397,395						422,437						3		%				(3)		%
Residential real estate						1,768,357						1,762,482						1,748,303						—		%				1		%
Consumer and home equity						263,343						258,211						252,389						2		%				4		%
Total loans						4,139,361						4,121,040						4,100,131						—		%				1		%
Less: allowance for credit losses on loans						(35,412)						(35,613)						(36,983)						(1)		%				(4)		%
Net loans						4,103,949						4,085,427						4,063,148						—		%				1		%
Goodwill and core deposit intangible assets						95,390						95,529						95,964						—		%				(1)		%
Other assets						269,962						264,422						266,826						2		%				1		%
Total assets						$	5,724,380					$	5,794,785					$	5,743,931					(1)		%				—		%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Non-interest checking						$	921,605					$	929,314					$	1,015,184					(1)		%				(9)		%
Interest checking						1,465,560						1,503,045						1,627,250						(2)		%				(10)		%
Savings and money market						1,399,464						1,379,437						1,377,791						1		%				2		%
Certificates of deposit						576,563						585,786						449,265						(2)		%				28		%
Brokered deposits						150,828						153,942						224,255						(2)		%				(33)		%
Total deposits						4,514,020						4,551,524						4,693,745						(1)		%				(4)		%
Short-term borrowings						552,606						601,499						448,182						(8)		%				23		%
Junior subordinated debentures						44,331						44,331						44,331						—		%				—		%
Accrued interest and other liabilities						105,137						95,854						90,297						10		%				16		%
Total liabilities						5,216,094						5,293,208						5,276,555						(1)		%				(1)		%
Commitments and Contingencies
Shareholders’ Equity
Common stock, no par value						115,543						116,449						114,302						(1)		%				1		%
Retained earnings						493,974						488,143						475,008						1		%				4		%
Accumulated other comprehensive loss:
Net unrealized loss on debt securities, net of tax						(110,308)						(111,357)						(127,829)						(1)		%				(14)		%
Net unrealized gain on cash flow hedging derivative instruments, net of tax						9,327						8,587						6,213						9		%				50		%
Net unrecognized loss on postretirement plans, net of tax						(250)						(245)						(318)						2		%				(21)		%
Total accumulated other comprehensive loss						(101,231)						(103,015)						(121,934)						(2)		%				(17)		%
Total shareholders’ equity						508,286						501,577						467,376						1		%				9		%
Total liabilities and shareholders’ equity						$	5,724,380					$	5,794,785					$	5,743,931					(1)		%				—		%

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Consolidated Statements of Income Data

(unaudited)

						For The Three Months Ended
(In thousands, except per share data)						June 30, 2024						March 31, 2024						June 30, 2023						% Change Jun 2024 vs. Mar 2024						% Change Jun 2024 vs. Jun 2023
Interest Income
Interest and fees on loans						$	53,422					$	51,709					$	48,645					3		%				10		%
Taxable interest on investments						6,807						7,027						5,852						(3)		%				16		%
Nontaxable interest on investments						461						465						762						(1)		%				(40)		%
Dividend income						521						312						267						67		%				95		%
Other interest income						951						670						529						42		%				80		%
Total interest income						62,162						60,183						56,055						3		%				11		%
Interest Expense
Interest on deposits						24,169						23,178						19,245						4		%				26		%
Interest on borrowings						5,285						5,198						3,587						2		%				47		%
Interest on junior subordinated debentures						524						534						533						(2)		%				(2)		%
Total interest expense						29,978						28,910						23,365						4		%				28		%
Net interest income						32,184						31,273						32,690						3		%				(2)		%
Provision (credit) for credit losses						650						(2,102)						103						131		%				531		%
Net interest income after provision (credit) for credit losses						31,534						33,375						32,587						(6)		%				(3)		%
Non-Interest Income
Debit card income						3,069						2,866						3,079						7		%				—		%
Service charges on deposit accounts						2,113						2,027						1,935						4		%				9		%
Income from fiduciary services						1,870						1,749						1,775						7		%				5		%
Brokerage and insurance commissions						1,441						1,239						1,152						16		%				25		%
Bank-owned life insurance						694						683						613						2		%				13		%
Mortgage banking income, net						516						808						590						(36)		%				(13)		%
Other income						942						950						966						(1)		%				(2)		%
Total non-interest income						10,645						10,322						10,110						3		%				5		%
Non-Interest Expense
Salaries and employee benefits						15,601						15,954						15,288						(2)		%				2		%
Furniture, equipment and data processing						3,497						3,629						3,179						(4)		%				10		%
Net occupancy costs						1,981						2,070						1,852						(4)		%				7		%
Debit card expense						1,311						1,264						1,262						4		%				4		%
Consulting and professional fees						1,149						860						1,375						34		%				(16)		%
Regulatory assessments						813						857						868						(5)		%				(6)		%
Amortization of core deposit intangible assets						139						139						148						—		%				(6)		%
Other real estate owned and collection costs, net						47						10						4						N.M.						N.M.
Other expenses						2,772						2,579						3,167						7		%				(12)		%
Total non-interest expense						27,310						27,362						27,143						—		%				1		%
Income before income tax expense						14,869						16,335						15,554						(9)		%				(4)		%
Income Tax Expense						2,876						3,063						3,165						(6)		%				(9)		%
Net Income						$	11,993					$	13,272					$	12,389					(10)		%				(3)		%
Per Share Data
Basic earnings per share						$	0.82					$	0.91					$	0.85					(10)		%				(4)		%
Diluted earnings per share						$	0.81					$	0.91					$	0.85					(11)		%				(5)		%

N.M. = Not meaningful

---

Consolidated Statements of Income Data

(unaudited)

						For the Six Months Ended
(In thousands, except per share data)						June 30, 2024						June 30, 2023						% Change Jun 2024 vs. Jun 2023
Interest Income
Interest and fees on loans						$	105,131					$	93,977					12		%
Taxable interest on investments						13,834						11,815						17		%
Nontaxable interest on investments						926						1,525						(39)		%
Dividend income						833						486						71		%
Other interest income						1,621						977						66		%
Total interest income						122,345						108,780						12		%
Interest Expense
Interest on deposits						47,347						35,077						35		%
Interest on borrowings						10,483						5,672						85		%
Interest on junior subordinated debentures						1,058						1,061						—		%
Total interest expense						58,888						41,810						41		%
Net interest income						63,457						66,970						(5)		%
(Credit) provision for credit losses						(1,452)						2,105						(169)		%
Net interest income after (credit) provision for credit losses						64,909						64,865						—		%
Non-Interest Income
Debit card income						5,935						6,017						(1)		%
Service charges on deposit accounts						4,140						3,697						12		%
Income from fiduciary services						3,619						3,375						7		%
Brokerage and insurance commissions						2,680						2,245						19		%
Bank-owned life insurance						1,377						1,205						14		%
Mortgage banking income, net						1,324						1,306						1		%
Other income						1,892						2,131						(11)		%
Total non-interest income						20,967						19,976						5		%
Non-Interest Expense
Salaries and employee benefits						31,555						29,861						6		%
Furniture, equipment and data processing						7,126						6,390						12		%
Net occupancy costs						4,051						3,931						3		%
Debit card expense						2,575						2,463						5		%
Consulting and professional fees						2,009						2,430						(17)		%
Regulatory assessments						1,670						1,713						(3)		%
Amortization of core deposit intangible assets						278						296						(6)		%
Other real estate owned and collection costs, net						57						9						533		%
Other expenses						5,351						6,215						(14)		%
Total non-interest expense						54,672						53,308						3		%
Income before income tax expense						31,204						31,533						(1)		%
Income Tax Expense						5,939						6,417						(7)		%
Net Income						$	25,265					$	25,116					1		%
Per Share Data
Basic earnings per share						$	1.73					$	1.72					1		%
Diluted earnings per share						$	1.72					$	1.72					—		%

---

Quarterly Average Balance and Yield/Rate Analysis

(unaudited)

						Average Balance																					Yield/Rate
						For The Three Months Ended																					For The Three Months Ended
(Dollars in thousands)						June 30, 2024						March 31, 2024						June 30, 2023									June 30, 2024						March 31, 2024									June 30, 2023
Assets
Interest-earning assets:
Interest-bearing deposits in other banks and other interest-earning assets						$	50,266					$	44,487					$	27,008								6.06		%				4.34		%							4.90		%
Investments - taxable						1,162,941						1,187,699						1,212,942									2.58		%				2.53		%							2.08		%
Investments - nontaxable(1)						61,794						62,385						105,210									3.78		%				3.78		%							3.67		%
Loans(2):
Commercial real estate						1,701,431						1,682,599						1,670,299									5.09		%				4.94		%							4.75		%
Commercial(1)						387,093						389,695						405,485									6.51		%				6.05		%							5.83		%
SBA PPP						244						324						512									2.29		%				4.46		%							4.27		%
Municipal(1)						16,351						14,653						17,484									4.84		%				4.40		%							3.98		%
Residential real estate						1,772,707						1,773,077						1,748,443									4.48		%				4.41		%							4.06		%
Consumer and home equity						260,384						257,305						253,308									7.93		%				7.89		%							7.53		%
Total loans						4,138,210						4,117,653						4,095,531									5.14		%				5.00		%							4.73		%
Total interest-earning assets						5,413,211						5,412,224						5,440,691									4.58		%				4.44		%							4.12		%
Other assets						323,065						305,756						271,822
Total assets						$	5,736,276					$	5,717,980					$	5,712,513
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking						$	901,774					$	933,321					$	999,809								—		%				—		%							—		%
Interest checking						1,479,201						1,490,185						1,638,677									2.52		%				2.53		%							2.28		%
Savings						624,034						599,791						685,282									0.52		%				0.20		%							0.10		%
Money market						760,844						764,585						692,330									3.41		%				3.29		%							2.47		%
Certificates of deposit						583,282						582,806						410,272									3.90		%				3.77		%							2.55		%
Total deposits						4,349,135						4,370,688						4,426,370									2.05		%				1.97		%							1.48		%
Borrowings:
Brokered deposits						150,799						133,385						237,083									5.28		%				5.31		%							4.89		%
Customer repurchase agreements						185,729						182,487						192,428									1.81		%				1.60		%							1.47		%
Junior subordinated debentures						44,331						44,331						44,331									4.75		%				4.85		%							4.83		%
Other borrowings						401,144						401,683						272,737									4.46		%				4.40		%							4.23		%
Total borrowings						782,003						761,886						746,579									4.00		%				3.96		%							3.77		%
Total funding liabilities						5,131,138						5,132,574						5,172,949									2.35		%				2.27		%							1.81		%
Other liabilities						102,658						89,893						73,366
Shareholders' equity						502,480						495,513						466,198
Total liabilities & shareholders' equity						$	5,736,276					$	5,717,980					$	5,712,513
Net interest rate spread (fully-taxable equivalent)																								2.23		%				2.17		%							2.31		%
Net interest margin (fully-taxable equivalent)																								2.36		%				2.30		%							2.40		%

(1) Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

(2) Non-accrual loans and loans held for sale are included in total average loans.

---

Year-to-Date Average Balance and Yield/Rate Analysis

(unaudited)

						Average Balance												Yield/Rate
						For The Six Months Ended												For The Six Months Ended
(Dollars in thousands)						June 30, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Assets
Interest-earning assets:
Interest-bearing deposits in other banks and other interest-earning assets						$	47,376					$	26,515					5.25		%				4.41		%
Investments - taxable						1,175,320						1,225,079						2.56		%				2.07		%
Investments - nontaxable(1)						62,090						105,355						3.78		%				3.67		%
Loans(2):
Commercial real estate						1,692,015						1,658,219						5.02		%				4.68		%
Commercial(1)						388,394						407,288						6.28		%				5.66		%
SBA PPP						284						553						3.53		%				3.35		%
Municipal(1)						15,502						16,744						4.63		%				3.78		%
Residential real estate						1,772,892						1,731,911						4.45		%				3.92		%
Consumer and home equity						258,844						253,533						7.91		%				7.31		%
Total loans						4,127,931						4,068,248						5.07		%				4.61		%
Total interest-earning assets						5,412,717						5,425,197						4.51		%				4.02		%
Other assets						314,411						274,961
Total assets						$	5,727,128					$	5,700,158
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking						$	917,547					$	1,037,927					—		%				—		%
Interest checking						1,484,693						1,664,128						2.53		%				2.14		%
Savings						611,913						709,907						0.37		%				0.09		%
Money market						762,715						695,687						3.35		%				2.33		%
Certificates of deposit						583,044						365,489						3.84		%				2.19		%
Total deposits						4,359,912						4,473,138						2.01		%				1.35		%
Borrowings:
Brokered deposits						142,092						228,866						5.29		%				4.49		%
Customer repurchase agreements						184,108						187,618						1.71		%				1.28		%
Junior subordinated debentures						44,331						44,331						4.80		%				4.83		%
Other borrowings						401,413						224,249						4.47		%				4.03		%
Total borrowings						771,944						685,064						3.98		%				3.48		%
Total funding liabilities						5,131,856						5,158,202						2.31		%				1.63		%
Other liabilities						96,275						77,522
Shareholders' equity						498,997						464,434
Total liabilities & shareholders' equity						$	5,727,128					$	5,700,158
Net interest rate spread (fully-taxable equivalent)																		2.20		%				2.39		%
Net interest margin (fully-taxable equivalent)																		2.32		%				2.47		%

(1) Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.

(2) Non-accrual loans and loans held for sale are included in total average loans

---

Asset Quality Data

(unaudited)

(In thousands)						At or for the Six Months Ended June 30, 2024						At or for the Three Months Ended March 31, 2024						At or for the Year Ended December 31, 2023						At or for the Nine Months Ended September 30, 2023						At or for the Six Months Ended June 30, 2023
Non-accrual loans:
Residential real estate						$	2,497					$	2,473					$	2,539					$	2,775					$	1,781
Commercial real estate						79						205						386						92						56
Commercial						4,409						1,980						1,725						1,083						729
Consumer and home equity						810						1,000						798						674						482
Total non-accrual loans						7,795						5,658						5,448						4,624						3,048
Accruing troubled-debt restructured loans prior to adoption of ASU 2022-02						1,846						1,973						1,990						1,997						2,140
Total non-performing loans						9,641						7,631						7,438						6,621						5,188
Other real estate owned						—						—						—						—						—
Total non-performing assets						$	9,641					$	7,631					$	7,438					$	6,621					$	5,188
Loans 30-89 days past due:
Residential real estate						$	400					$	797					$	1,290					$	751					$	1,192
Commercial real estate						678						92						740						188						112
Commercial						539						537						2,007						2,260						294
Consumer and home equity						628						618						922						603						653
Total loans 30-89 days past due						$	2,245					$	2,044					$	4,959					$	3,802					$	2,251
ACL on loans at the beginning of the period						$	36,935					$	36,935					$	36,922					$	36,922					$	36,922
(Credit) provision for loan losses						(976)						(1,164)						1,174						288						744
Charge-offs:
Residential real estate						—						—						18						18						18
Commercial real estate						—						—						58						58						—
Commercial						763						309						1,560						1,101						846
Consumer and home equity						55						36						91						63						31
Total charge-offs						818						345						1,727						1,240						895
Total recoveries						(271)						(187)						(566)						(437)						(212)
Net charge-offs						547						158						1,161						803						683
ACL on loans at the end of the period						$	35,412					$	35,613					$	36,935					$	36,407					$	36,983
Components of ACL:
ACL on loans						$	35,412					$	35,613					$	36,935					$	36,407					$	36,983
ACL on off-balance sheet credit exposures(1)						2,787						2,325						2,353						2,670						2,788
ACL, end of period						$	38,199					$	37,938					$	39,288					$	39,077					$	39,771
Ratios:
Non-performing loans to total loans						0.23		%				0.19		%				0.18		%				0.16		%				0.13		%
Non-performing assets to total assets						0.17		%				0.13		%				0.13		%				0.11		%				0.09		%
ACL on loans to total loans						0.86		%				0.86		%				0.90		%				0.90		%				0.90		%
Net charge-offs to average loans (annualized):
Quarter-to-date						0.04		%				0.02		%				0.04		%				0.01		%				0.04		%
Year-to-date						0.03		%				0.02		%				0.03		%				0.03		%				0.03		%
ACL on loans to non-performing loans						367.31		%				466.69		%				496.57		%				549.87		%				712.86		%
Loans 30-89 days past due to total loans						0.05		%				0.05		%				0.12		%				0.09		%				0.05		%

(1) Presented within accrued interest and other liabilities on the consolidated statements of condition.

---

Reconciliation of non-GAAP to GAAP Financial Measures

(unaudited)

Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity:
						For the Three Months Ended																		For the Six Months Ended
(In thousands, except number of shares, per share data and ratios)						June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Adjusted Net Income:
Net income, as presented						$	11,993					$	13,272					$	12,389					$	25,265					$	25,116
Adjustment for Signature Bank bond (recovery) write-off						—						(910)						—						(910)						1,838
Tax impact of above adjustments(1)						—						191						—						191						386
Adjusted net income						$	11,993					$	12,553					$	12,389					$	24,546					$	27,340
Adjusted Diluted Earnings per Share:
Diluted earnings per share, as presented						$	0.81					$	0.91					$	0.85					$	1.72					$	1.72
Adjustment for Signature Bank bond (recovery) write-off						—						(0.06)						—						(0.06)						0.13
Tax impact of above adjustments(1)						—						0.01						—						0.01						(0.03)
Adjusted diluted earnings per share						$	0.81					$	0.86					$	0.85					$	1.67					$	1.82
Adjusted Return on Average Assets:
Return on average assets, as presented						0.84		%				0.93		%				0.87		%				0.89		%				0.89		%
Adjustment for Signature Bank bond (recovery) write-off						—						(0.06)		%				—						(0.03)		%				0.07		%
Tax impact of above adjustments(1)						—						0.01		%				—						0.01		%				(0.01)		%
Adjusted return on average assets						0.84		%				0.88		%				0.87		%				0.87		%				0.95		%
Adjusted Return on Average Equity:
Return on average equity, as presented						9.60		%				10.77		%				10.66		%				10.18		%				10.91		%
Adjustment for Signature Bank bond (recovery) write-off						—						(0.74)		%				—						(0.37)		%				0.80		%
Tax impact of above adjustments(1)						—						0.16		%				—						0.08		%				(0.17)		%
Adjusted return on average equity						9.60		%				10.19		%				10.66		%				9.89		%				11.54		%

(1) Assumed a 21% tax rate.

Pre-Tax, Pre-Provision Income:
						For the Three Months Ended																		For the Six Months Ended
(In thousands)						June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Net income, as presented						$	11,993					$	13,272					$	12,389					$	25,265					$	25,116
Adjustment for provision (credit) for credit losses						650						(2,102)						103						(1,452)						2,105
Adjustment for income tax expense						2,876						3,063						3,165						5,939						6,417
Pre-tax, pre-provision income						$	15,519					$	14,233					$	15,657					$	29,752					$	33,638

---

Efficiency Ratio:
						For the Three Months Ended																		For the Six Months Ended
(Dollars in thousands)						June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Non-interest expense, as presented						$	27,310					$	27,362					$	27,143					$	54,672					$	53,308
Net interest income, as presented						$	32,184					$	31,273					$	32,690					$	63,457					$	66,970
Adjustment for the effect of tax-exempt income(1)						159						150						235						309						464
Non-interest income, as presented						10,645						10,322						10,110						20,967						19,976
Adjusted net interest income plus non-interest income						$	42,988					$	41,745					$	43,035					$	84,733					$	87,410
GAAP efficiency ratio						63.77		%				65.78		%				63.42		%				64.76		%				61.31		%
Non-GAAP efficiency ratio						63.53		%				65.55		%				63.07		%				64.52		%				60.99		%

(1) Assumed a 21% tax rate.

Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity:
						For the Three Months Ended																		For the Six Months Ended
(Dollars in thousands)						June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Return on Average Tangible Equity:
Net income, as presented						$	11,993					$	13,272					$	12,389					$	25,265					$	25,116
Adjustment for amortization of core deposit intangible assets						139						139						148						278						296
Tax impact of above adjustment(1)						(29)						(29)						(31)						(58)						(62)
Net income, adjusted for amortization of core deposit intangible assets						$	12,103					$	13,382					$	12,506					$	25,485					$	25,350
Average equity, as presented						$	502,480					$	495,513					$	466,198					$	498,997					$	464,434
Adjustment for average goodwill and core deposit intangible assets						(95,458)						(95,604)						(96,036)						(95,531)						(96,113)
Average tangible equity						$	407,022					$	399,909					$	370,162					$	403,466					$	368,321
Return on average equity						9.60		%				10.77		%				10.66		%				10.18		%				10.91		%
Return on average tangible equity						11.96		%				13.46		%				13.55		%				12.70		%				13.88		%
Adjusted Return on Average Tangible Equity:
Adjusted net income (see "Adjusted Net Income" table above)						$	11,993					$	12,553					$	12,389					$	24,546					$	27,340
Adjustment for amortization of core deposit intangible assets						139						139						148						278						296
Tax impact of above adjustment(1)						(29)						(29)						(31)						(58)						(62)
Adjusted net income, adjusted for amortization of core deposit intangible assets						$	12,103					$	12,663					$	12,506					$	24,766					$	27,574
Adjusted return on average tangible equity						11.96		%				12.74		%				13.55		%				12.34		%				15.10		%

(1) Assumed a 21% tax rate.

---

Tangible Book Value Per Share and Tangible Common Equity Ratio:
						June 30, 2024						March 31, 2024						June 30, 2023
(In thousands, except number of shares, per share data and ratios)
Tangible Book Value Per Share:
Shareholders' equity, as presented						$	508,286					$	501,577					$	467,376
Adjustment for goodwill and core deposit intangible assets						(95,390)						(95,529)						(95,964)
Tangible shareholders' equity						$	412,896					$	406,048					$	371,412
Shares outstanding at period end						14,569,262						14,593,830						14,554,778
Book value per share						$	34.89					$	34.37					$	32.11
Tangible book value per share						28.34						27.82						25.52
Tangible Common Equity Ratio:
Total assets						$	5,724,380					$	5,794,785					$	5,743,931
Adjustment for goodwill and core deposit intangible assets						(95,390)						(95,529)						(95,964)
Tangible assets						$	5,628,990					$	5,699,256					$	5,647,967
Common equity ratio						8.88		%				8.66		%				8.14		%
Tangible common equity ratio						7.34		%				7.12		%				6.58		%

Core Deposits:
(In thousands)						June 30, 2024						March 31, 2024						June 30, 2023
Total deposits						$	4,514,020					$	4,551,524					$	4,693,745
Adjustment for certificates of deposit						(576,563)						(585,786)						(449,265)
Adjustment for brokered deposits						(150,828)						(153,942)						(224,255)
Core deposits						$	3,786,629					$	3,811,796					$	4,020,225

Average Core Deposits:
						For the Three Months Ended																		For the Six Months Ended
(In thousands)						June 30, 2024						March 31, 2024						June 30, 2023						June 30, 2024						June 30, 2023
Total average deposits, as presented(1)						$	4,349,135					$	4,370,688					$	4,426,370					$	4,359,912					$	4,473,138
Adjustment for average certificates of deposit						(583,282)						(582,806)						(410,272)						(583,044)						(365,489)
Average core deposits						$	3,765,853					$	3,787,882					$	4,016,098					$	3,776,868					$	4,107,649

(1) Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.

Document and Entity Information Document	Jul. 30, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	Camden National Corp
Entity Central Index Key	0000750686
Amendment Flag	false
Entity Incorporation, State or Country Code	ME
Entity File Number	01-28190
Entity Tax Identification Number	01-0413282
Entity Address, Address Line One	Two Elm Street
Entity Address, City or Town	Camden
Entity Address, State or Province	ME
Entity Address, Postal Zip Code	04843
City Area Code	207
Local Phone Number	236-8821
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	CAC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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