BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The accompanying unaudited consolidated interim financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation (the "Company") as of September 30, 2023 and December 31, 2022, the consolidated statements of income for the three and nine months ended September 30, 2023 and 2022, the consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022, the consolidated statements of changes in shareholders' equity for the three and nine months ended September 30, 2023 and 2022, and the consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022. The consolidated financial statements include the accounts of the Company and Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company (which includes the consolidated accounts of Healthcare Professional Funding Corporation ("HPFC") and Property A, Inc.). All intercompany accounts and transactions have been eliminated in consolidation. Assets held by the Bank in a fiduciary capacity, through Camden National Wealth Management, a division of the Bank, are not assets of the Company and, therefore, are not included in the consolidated statements of condition. The Company also owns 100% of the common stock of Camden Capital Trust A and Union Bankshares Capital Trust I. These entities are unconsolidated subsidiaries of the Company. Certain reclassifications may have been made to prior period amounts to conform to the current period presentation. Any such reclassifications did not impact net income or shareholders' equity as previously reported. Net income reported for the three and nine months ended September 30, 2023, is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

The acronyms, abbreviations and definitions identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "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 these sections of the Form 10-Q.

Acronym

Description

Acronym

Description

AFS:

Available-for-sale

FRB:

Board of Governors of the Federal Reserve System

ALCO:

Asset/Liability Committee

FRBB:

Federal Reserve Bank of Boston

ACL:

Allowance for credit losses

GAAP:

Generally accepted accounting principles in the United States

AOCI:

Accumulated other comprehensive income (loss)

GDP:

Gross domestic product

ASC:

Accounting Standards Codification

HPFC:

Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank

ASU:

Accounting Standards Update

HTM:

Held-to-maturity

Bank:

Camden National Bank, a wholly-owned subsidiary of Camden National Corporation

IRS:

Internal Revenue Service

BOLI:

Bank-owned life insurance

LIBOR:

London Interbank Offered Rate

Board ALCO:

Board of Directors' Asset/Liability Committee

LTIP:

Long-Term Performance Share Plan

BTFP:

Bank Term Funding Program, introduced by the Federal Reserve Bank in March 2023

Management ALCO:

Management Asset/Liability Committee

CCTA:

Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation

MBS:

Mortgage-backed security

CDs:

Certificate of deposits

MSPP:

Management Stock Purchase Plan

CECL:

Current Expected Credit Losses

N/A:

Not applicable

Company:

Camden National Corporation

N.M.:

Not meaningful

CMO:

Collateralized mortgage obligation

OCC:

Office of the Comptroller of the Currency

CUSIP:

Committee on Uniform Securities Identification Procedures

OCI:

Other comprehensive income (loss)

DCRP:

Defined Contribution Retirement Plan

OREO:

Other real estate owned

EPS:

Earnings per share

SBA:

U.S. Small Business Administration

FASB:

Financial Accounting Standards Board

SBA PPP:

U.S. Small Business Administration Paycheck Protection Program

FDIC:

Federal Deposit Insurance Corporation

SERP:

Supplemental executive retirement plans

FHLB:

Federal Home Loan Bank

SOFR:

Secured Overnight Financing Rate

FHLBB:

Federal Home Loan Bank of Boston

TDR:

Troubled-debt restructured loan

FHLMC:

Federal Home Loan Mortgage Corporation

UBCT:

Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation

FNMA:

Federal National Mortgage Association

U.S:

United States of America

FOMC:

Federal Open Market Committee