10-K 1 cac-20231231.htm 10-K cac-20231231
false2023FY0000750686http://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#OtherLiabilitieshttp://fasb.org/us-gaap/2023#LoansAndLeasesReceivableNetOfDeferredIncomehttp://fasb.org/us-gaap/2023#LoansAndLeasesReceivableNetOfDeferredIncomeP10YP3YP0YP0Y00007506862023-01-012023-12-3100007506862023-06-30iso4217:USD00007506862024-02-28xbrli:shares00007506862023-12-3100007506862022-12-31iso4217:USDxbrli:shares00007506862022-01-012022-12-3100007506862021-01-012021-12-310000750686us-gaap:DebitCardMember2023-01-012023-12-310000750686us-gaap:DebitCardMember2022-01-012022-12-310000750686us-gaap:DebitCardMember2021-01-012021-12-310000750686us-gaap:DepositAccountMember2023-01-012023-12-310000750686us-gaap:DepositAccountMember2022-01-012022-12-310000750686us-gaap:DepositAccountMember2021-01-012021-12-310000750686us-gaap:FiduciaryAndTrustMember2023-01-012023-12-310000750686us-gaap:FiduciaryAndTrustMember2022-01-012022-12-310000750686us-gaap:FiduciaryAndTrustMember2021-01-012021-12-310000750686us-gaap:CommonStockMember2020-12-310000750686us-gaap:RetainedEarningsMember2020-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100007506862020-12-310000750686us-gaap:RetainedEarningsMember2021-01-012021-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310000750686us-gaap:CommonStockMember2021-01-012021-12-310000750686us-gaap:CommonStockMember2021-12-310000750686us-gaap:RetainedEarningsMember2021-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100007506862021-12-310000750686us-gaap:RetainedEarningsMember2022-01-012022-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000750686us-gaap:CommonStockMember2022-01-012022-12-310000750686us-gaap:CommonStockMember2022-12-310000750686us-gaap:RetainedEarningsMember2022-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000750686us-gaap:RetainedEarningsMember2023-01-012023-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000750686us-gaap:CommonStockMember2023-01-012023-12-310000750686us-gaap:CommonStockMember2023-12-310000750686us-gaap:RetainedEarningsMember2023-12-310000750686us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000750686cac:CCTAAndUBCTMember2023-12-31xbrli:pure00007506862020-01-010000750686us-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-12-310000750686cac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMember2023-12-310000750686us-gaap:CorporateDebtSecuritiesMember2023-12-310000750686us-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310000750686cac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMember2022-12-310000750686us-gaap:CorporateDebtSecuritiesMember2022-12-310000750686cac:TransferredSecuritiesMember2022-06-012022-06-300000750686cac:TransferredSecuritiesMember2023-12-31cac:security0000750686us-gaap:AvailableforsaleSecuritiesMember2023-12-310000750686us-gaap:AvailableforsaleSecuritiesMember2022-12-310000750686us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310000750686us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-12-310000750686cac:SignatureBankCorporateBondMember2023-01-012023-12-310000750686us-gaap:AssetPledgedAsCollateralMember2023-12-310000750686us-gaap:AssetPledgedAsCollateralMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMember2022-12-310000750686us-gaap:CommercialLoanMember2023-12-310000750686us-gaap:CommercialLoanMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686cac:HomeEquityPortfolioSegmentMember2023-12-310000750686cac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686cac:RetailLoanMember2023-12-310000750686cac:RetailLoanMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-01-012023-12-310000750686us-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310000750686cac:HomeEquityPortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2021-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2021-12-310000750686us-gaap:CommercialPortfolioSegmentMember2021-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2021-12-310000750686cac:HomeEquityPortfolioSegmentMember2021-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2021-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2022-01-012022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-01-012022-12-310000750686us-gaap:CommercialPortfolioSegmentMember2022-01-012022-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-12-310000750686cac:HomeEquityPortfolioSegmentMember2022-01-012022-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2022-01-012022-12-310000750686cac:NonResidentialBuildingOperatorsIndustrySectorMembercac:LoanConcentrationRiskMembercac:TotalLoanPortfolioMember2023-01-012023-12-310000750686cac:NonResidentialBuildingOperatorsIndustrySectorMembercac:LoanConcentrationRiskMembercac:TotalLoanPortfolioMember2022-01-012022-12-310000750686cac:NonResidentialBuildingOperatorsIndustrySectorMembercac:LoanConcentrationRiskMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686cac:NonResidentialBuildingOperatorsIndustrySectorMembercac:LoanConcentrationRiskMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:PassMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:SpecialMentionMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:SubstandardMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:DoubtfulMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:PassMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:SpecialMentionMember2023-12-310000750686us-gaap:SubstandardMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-12-310000750686us-gaap:DoubtfulMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-01-012023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2023-12-310000750686us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310000750686us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310000750686us-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:SpecialMentionMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:SubstandardMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:DoubtfulMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:PerformingFinancingReceivableMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:NonperformingFinancingReceivableMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686cac:HomeEquityPortfolioSegmentMember2023-12-310000750686cac:HomeEquityPortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:PassMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:SpecialMentionMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:SubstandardMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:DoubtfulMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:PassMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:SpecialMentionMember2022-12-310000750686us-gaap:SubstandardMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-12-310000750686us-gaap:DoubtfulMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2022-12-310000750686us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000750686us-gaap:SubstandardMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000750686us-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMember2022-12-310000750686us-gaap:PassMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:SpecialMentionMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:SubstandardMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:DoubtfulMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:PerformingFinancingReceivableMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:NonperformingFinancingReceivableMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686cac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:NonperformingFinancingReceivableMember2022-12-310000750686us-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:FinancialAssetPastDueMember2023-12-310000750686us-gaap:FinancialAssetNotPastDueMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:FinancialAssetPastDueMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-12-310000750686cac:HomeEquityPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686cac:HomeEquityPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310000750686us-gaap:FinancialAssetNotPastDueMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-12-310000750686us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:FinancingReceivables30To59DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMember2023-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-12-310000750686us-gaap:FinancialAssetPastDueMember2023-12-310000750686us-gaap:FinancialAssetNotPastDueMember2023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:FinancialAssetPastDueMember2022-12-310000750686us-gaap:FinancialAssetNotPastDueMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:FinancialAssetPastDueMember2022-12-310000750686cac:CommercialRealEstatePortfolioSegmentOwnerOccupiedMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000750686cac:HomeEquityPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686cac:HomeEquityPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310000750686us-gaap:FinancialAssetNotPastDueMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310000750686us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686us-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310000750686us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310000750686us-gaap:FinancialAssetPastDueMember2022-12-310000750686us-gaap:FinancialAssetNotPastDueMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMember2023-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:ResidentialPortfolioSegmentMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMember2022-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:ResidentialPortfolioSegmentMember2022-12-310000750686us-gaap:RealEstateMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:CollateralPledgedMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:RealEstateMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:CollateralPledgedMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:RealEstateMember2023-12-310000750686us-gaap:CollateralPledgedMember2023-12-310000750686us-gaap:RealEstateMember2022-12-310000750686us-gaap:CollateralPledgedMember2022-12-310000750686us-gaap:PrincipalForgivenessMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PaymentDeferralMember2023-01-012023-12-310000750686us-gaap:ExtendedMaturityMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:ContractualInterestRateReductionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:ExtendedMaturityAndPrincipalForgivenessMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:ExtendedMaturityAndInterestRateReductionMembercac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686cac:CommercialRealEstatePortfolioSegmentNonOwnerOccupiedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-12-310000750686us-gaap:PrincipalForgivenessMember2023-01-012023-12-310000750686us-gaap:PaymentDeferralMember2023-01-012023-12-310000750686us-gaap:ExtendedMaturityMember2023-01-012023-12-310000750686us-gaap:ContractualInterestRateReductionMember2023-01-012023-12-310000750686us-gaap:ExtendedMaturityAndPrincipalForgivenessMember2023-01-012023-12-310000750686us-gaap:ExtendedMaturityAndInterestRateReductionMember2023-01-012023-12-310000750686us-gaap:CoreDepositsMember2023-12-310000750686us-gaap:CoreDepositsMember2022-12-310000750686us-gaap:BuildingAndBuildingImprovementsMember2023-12-310000750686us-gaap:BuildingAndBuildingImprovementsMember2022-12-310000750686us-gaap:FurnitureAndFixturesMember2023-12-310000750686us-gaap:FurnitureAndFixturesMember2022-12-310000750686us-gaap:LandAndLandImprovementsMember2023-12-310000750686us-gaap:LandAndLandImprovementsMember2022-12-310000750686us-gaap:EquipmentMember2023-01-012023-12-310000750686us-gaap:EquipmentMember2022-01-012022-12-310000750686us-gaap:EquipmentMember2021-01-012021-12-310000750686us-gaap:BuildingAndBuildingImprovementsMember2023-01-012023-12-310000750686us-gaap:BuildingAndBuildingImprovementsMember2022-01-012022-12-310000750686us-gaap:BuildingAndBuildingImprovementsMember2021-01-012021-12-310000750686us-gaap:SoftwareDevelopmentMember2023-01-012023-12-310000750686us-gaap:SoftwareDevelopmentMember2022-01-012022-12-310000750686us-gaap:SoftwareDevelopmentMember2021-01-012021-12-310000750686us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-12-31cac:employee0000750686us-gaap:FixedRateResidentialMortgageMember2023-01-012023-12-310000750686us-gaap:FixedRateResidentialMortgageMember2022-01-012022-12-310000750686us-gaap:FixedRateResidentialMortgageMember2021-01-012021-12-310000750686us-gaap:ForwardContractsMember2023-01-012023-12-310000750686us-gaap:ForwardContractsMember2022-01-012022-12-310000750686us-gaap:ForwardContractsMember2021-01-012021-12-310000750686cac:ServicingAssetsMember2023-01-012023-12-310000750686cac:ServicingAssetsMember2022-01-012022-12-310000750686cac:ServicingAssetsMember2021-01-012021-12-310000750686us-gaap:ShortTermDebtMembercac:CustomerRepurchaseAgreementsMember2023-12-310000750686cac:CustomerRepurchaseAgreementsMember2023-12-310000750686us-gaap:ShortTermDebtMembercac:CustomerRepurchaseAgreementsMember2022-12-310000750686us-gaap:ShortTermDebtMembercac:FHLBBandCorrespondentBankOvernightBorrowingsMember2023-12-310000750686cac:FHLBBandCorrespondentBankOvernightBorrowingsMember2023-12-310000750686us-gaap:ShortTermDebtMembercac:FHLBBandCorrespondentBankOvernightBorrowingsMember2022-12-310000750686us-gaap:ShortTermDebtMembercac:BankTermFundingProgramMember2023-12-310000750686cac:BankTermFundingProgramMember2023-12-310000750686us-gaap:ShortTermDebtMembercac:BankTermFundingProgramMember2022-12-310000750686us-gaap:ShortTermDebtMember2023-12-310000750686us-gaap:ShortTermDebtMember2022-12-310000750686cac:SubsidiaryOneMemberus-gaap:JuniorSubordinatedDebtMember2023-12-310000750686cac:SubsidiaryOneMemberus-gaap:JuniorSubordinatedDebtMember2022-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:SubsidiaryTwoMember2023-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:SubsidiaryTwoMember2022-12-310000750686cac:SubordinatedDebtandJuniorSubordinatedDebtMember2023-12-310000750686cac:SubordinatedDebtandJuniorSubordinatedDebtMember2022-12-310000750686cac:FHLBBBorrowingMaturingJanuary2023Memberus-gaap:LongTermDebtMember2023-12-310000750686cac:FHLBBBorrowingMaturingJanuary2023Memberus-gaap:LongTermDebtMember2022-12-310000750686us-gaap:LongTermDebtMembercac:FHLBBBorrowingMaturingMarch2023Member2023-12-310000750686us-gaap:LongTermDebtMembercac:FHLBBBorrowingMaturingMarch2023Member2022-12-310000750686us-gaap:SecuritiesInvestmentMemberus-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:AssetPledgedAsCollateralMember2023-12-310000750686us-gaap:SecuritiesInvestmentMemberus-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:AssetPledgedAsCollateralMember2022-12-310000750686us-gaap:FederalHomeLoanBankAdvancesMember2023-12-310000750686us-gaap:InterestRateSwapMemberus-gaap:FederalHomeLoanBankAdvancesMember2023-12-310000750686us-gaap:ShortTermDebtMembercac:BankTermFundingProgramMember2023-05-310000750686us-gaap:SecuritiesInvestmentMembercac:BankTermFundingProgramMemberus-gaap:AssetPledgedAsCollateralMember2023-12-310000750686us-gaap:SubsequentEventMemberus-gaap:ShortTermDebtMembercac:BankTermFundingProgramMember2024-01-310000750686cac:SubsidiaryOneMemberus-gaap:JuniorSubordinatedDebtMember2006-04-012006-04-300000750686cac:SubsidiaryOneMemberus-gaap:JuniorSubordinatedDebtMember2006-04-300000750686cac:SubsidiaryOneMemberus-gaap:JuniorSubordinatedDebtMembercac:SecuredOvernightFinancingRateSOFRMember2006-01-012006-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:SubsidiaryTwoMember2008-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:SubsidiaryTwoMember2006-01-012006-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:SubsidiaryTwoMember2006-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:LondonInterbankOfferedRateLIBOR1Membercac:SubsidiaryTwoMember2006-01-012006-12-310000750686us-gaap:JuniorSubordinatedDebtMembercac:SecuredOvernightFinancingRateSOFRMembercac:SubsidiaryTwoMember2006-01-012006-12-310000750686us-gaap:JuniorSubordinatedDebtMember2023-12-310000750686us-gaap:InterestRateSwapMember2023-12-310000750686cac:PNCMember2023-12-310000750686us-gaap:FederalReserveBankAdvancesMember2023-12-310000750686us-gaap:FederalHomeLoanBankAdvancesMember2022-12-310000750686us-gaap:SecuritiesInvestmentMemberus-gaap:FederalReserveBankAdvancesMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:RetailMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:RetailMember2022-12-310000750686us-gaap:RetailMembercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMember2023-12-310000750686us-gaap:RetailMembercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMember2022-12-310000750686us-gaap:RetailMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-12-310000750686us-gaap:RetailMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000750686us-gaap:RetailMember2023-12-310000750686us-gaap:RetailMember2022-12-310000750686us-gaap:CommitmentsToExtendCreditMember2023-12-310000750686us-gaap:CommitmentsToExtendCreditMember2022-12-310000750686us-gaap:StandbyLettersOfCreditMember2023-12-310000750686us-gaap:StandbyLettersOfCreditMember2022-12-310000750686us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2023-12-310000750686us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:NondesignatedMember2023-12-310000750686us-gaap:LoanParticipationsAndAssignmentsMemberus-gaap:NondesignatedMember2023-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMember2023-12-310000750686us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2023-12-310000750686us-gaap:NondesignatedMember2023-12-310000750686us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2022-12-310000750686us-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:NondesignatedMember2022-12-310000750686us-gaap:LoanParticipationsAndAssignmentsMemberus-gaap:NondesignatedMember2022-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMember2022-12-310000750686us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2022-12-310000750686us-gaap:NondesignatedMember2022-12-310000750686us-gaap:LoansReceivableMember2023-12-310000750686us-gaap:LoansReceivableMember2022-12-310000750686cac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686cac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseDepositsMember2023-01-012023-12-310000750686cac:InterestRateContractFourMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestRateContractFourMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestRateContractFourMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseBorrowingsMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMembercac:InterestExpenseBorrowingsMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseBorrowingsMember2023-01-012023-12-310000750686cac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2023-01-012023-12-310000750686cac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686cac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseDepositsMember2022-01-012022-12-310000750686cac:InterestRateContractFourMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestRateContractFourMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestRateContractFourMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseBorrowingsMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMembercac:InterestExpenseBorrowingsMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseBorrowingsMember2022-01-012022-12-310000750686cac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2022-01-012022-12-310000750686cac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestRateContractOneMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2021-01-012021-12-310000750686cac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestRateContractTwoMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2021-01-012021-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMember2021-01-012021-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseDepositsMember2021-01-012021-12-310000750686cac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestRateContractThreeMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2021-01-012021-12-310000750686us-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686us-gaap:CashFlowHedgingMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseBorrowingsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseBorrowingsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310000750686us-gaap:CashFlowHedgingMembercac:InterestExpenseDepositsMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2023-01-012023-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMembercac:InterestExpenseDepositsMember2023-01-012023-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMembercac:InterestExpenseBorrowingsMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2022-01-012022-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMembercac:InterestExpenseDepositsMember2022-01-012022-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMembercac:InterestExpenseBorrowingsMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2021-01-012021-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMembercac:InterestExpenseDepositsMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:InterestRateContractMemberus-gaap:FairValueHedgingMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseBorrowingsMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseBorrowingsMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestExpenseBorrowingsMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestExpenseBorrowingsMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMembercac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeIncludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseBorrowingsMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMemberus-gaap:CashFlowHedgingMember2023-01-012023-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseBorrowingsMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMemberus-gaap:CashFlowHedgingMember2022-01-012022-12-310000750686cac:InterestIncomeLoansAndFeesMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMembercac:InterestExpenseDepositsMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:InterestExpenseSubordinatedDebenturesMembercac:AOCIDerivativeQualifyingAsHedgeExcludedComponentMemberus-gaap:CashFlowHedgingMember2021-01-012021-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:NondesignatedMember2023-01-012023-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:NondesignatedMember2022-01-012022-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:NondesignatedMember2021-01-012021-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMember2023-01-012023-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMember2022-01-012022-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:NondesignatedMember2021-01-012021-12-310000750686us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2023-01-012023-12-310000750686us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2022-01-012022-12-310000750686us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2021-01-012021-12-310000750686us-gaap:NondesignatedMember2023-01-012023-12-310000750686us-gaap:NondesignatedMember2022-01-012022-12-310000750686us-gaap:NondesignatedMember2021-01-012021-12-310000750686cac:CustomerLoanSwapDealerBankMember2023-12-310000750686cac:CustomerLoanSwapsCommercialCustomerMember2023-12-310000750686us-gaap:InterestRateContractMember2023-12-310000750686cac:CustomerLoanSwapsCommercialCustomerMember2022-12-310000750686us-gaap:InterestRateContractMember2022-12-310000750686cac:CustomerLoanSwapDealerBankMember2022-12-310000750686srt:SubsidiariesMember2023-12-310000750686srt:SubsidiariesMember2022-12-310000750686us-gaap:JuniorSubordinatedDebtMember2008-12-310000750686srt:SubsidiariesMember2021-12-310000750686cac:ShareRepurchaseProgramFiveMember2021-02-280000750686cac:ShareRepurchaseProgramFiveMember2021-01-012021-12-310000750686cac:ShareRepurchaseProgramSixMember2022-01-310000750686cac:ShareRepurchaseProgramSixMember2022-01-012022-12-310000750686cac:ShareRepurchaseProgramSixMember2023-01-030000750686cac:ShareRepurchaseProgramSixMember2023-01-012023-12-310000750686us-gaap:SubsequentEventMembercac:ShareRepurchaseProgramSixMember2024-01-040000750686cac:InterestExpenseBorrowingsAndSubordinatedDebenturesMember2023-01-012023-12-310000750686cac:InterestExpenseBorrowingsAndSubordinatedDebenturesMember2022-01-012022-12-310000750686cac:InterestExpenseBorrowingsAndSubordinatedDebenturesMember2021-01-012021-12-310000750686cac:InterestIncomeInterestAndFeesOnLoansMember2023-01-012023-12-310000750686cac:InterestIncomeInterestAndFeesOnLoansMember2022-01-012022-12-310000750686cac:InterestIncomeInterestAndFeesOnLoansMember2021-01-012021-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-12-310000750686us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310000750686us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000750686us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000750686cac:ProductsAndServicesDebtCardIncomeMember2023-01-012023-12-310000750686cac:ProductsAndServicesDebtCardIncomeMember2022-01-012022-12-310000750686cac:ProductsAndServicesDebtCardIncomeMember2021-01-012021-12-310000750686cac:ProductsAndServicesDepositAccountsServiceChargesMember2023-01-012023-12-310000750686cac:ProductsAndServicesDepositAccountsServiceChargesMember2022-01-012022-12-310000750686cac:ProductsAndServicesDepositAccountsServiceChargesMember2021-01-012021-12-310000750686cac:ProductsAndServicesFiduciaryServicesIncomeMember2023-01-012023-12-310000750686cac:ProductsAndServicesFiduciaryServicesIncomeMember2022-01-012022-12-310000750686cac:ProductsAndServicesFiduciaryServicesIncomeMember2021-01-012021-12-310000750686cac:ProductsAndServicesBrokerageandInsuranceCommissionsMember2023-01-012023-12-310000750686cac:ProductsAndServicesBrokerageandInsuranceCommissionsMember2022-01-012022-12-310000750686cac:ProductsAndServicesBrokerageandInsuranceCommissionsMember2021-01-012021-12-310000750686cac:ProductsAndServicesOtherIncomeMember2023-01-012023-12-310000750686cac:ProductsAndServicesOtherIncomeMember2022-01-012022-12-310000750686cac:ProductsAndServicesOtherIncomeMember2021-01-012021-12-310000750686cac:StockOptionAndIncentivePlan2022Member2022-04-260000750686cac:QualifiedStockOptionsMembercac:StockOptionAndIncentivePlan2022Member2022-04-262022-04-260000750686cac:StockOptionAndIncentivePlan2022Member2022-04-262022-04-260000750686cac:StockOptionAndIncentivePlanTwentyTwelveMember2012-05-010000750686cac:StockOptionAndIncentivePlanTwentyTwelveMembercac:QualifiedStockOptionsMember2012-05-012012-05-010000750686cac:StockOptionAndIncentivePlanTwentyTwelveMembercac:NonqualifiedStockOptionsMember2012-05-012012-05-010000750686cac:StockOptionAndIncentivePlanTwentyTwelveMember2023-01-012023-12-310000750686us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-12-310000750686us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-12-310000750686us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310000750686us-gaap:RestrictedStockUnitsRSUMember2022-12-310000750686us-gaap:RestrictedStockUnitsRSUMember2023-12-310000750686us-gaap:RestrictedStockMember2023-01-012023-12-310000750686us-gaap:RestrictedStockMember2022-01-012022-12-310000750686us-gaap:RestrictedStockMember2021-01-012021-12-310000750686us-gaap:RestrictedStockMember2022-12-310000750686us-gaap:RestrictedStockMember2023-12-310000750686cac:ManagementStockPurchasePlanMember2023-01-012023-12-310000750686cac:ManagementStockPurchasePlanMember2022-01-012022-12-310000750686cac:ManagementStockPurchasePlanMember2021-01-012021-12-310000750686cac:ManagementStockPurchasePlanMember2022-12-310000750686cac:ManagementStockPurchasePlanMember2023-12-310000750686cac:ManagementStockPurchasePlanMembercac:InterestandOtherLiabilitiesMember2023-01-012023-12-310000750686cac:ManagementStockPurchasePlanMembercac:InterestandOtherLiabilitiesMember2022-01-012022-12-310000750686us-gaap:PerformanceSharesMember2023-01-012023-12-310000750686us-gaap:PerformanceSharesMember2022-01-012022-12-310000750686us-gaap:PerformanceSharesMember2021-01-012021-12-310000750686us-gaap:PerformanceSharesMember2022-12-310000750686us-gaap:PerformanceSharesMember2023-12-310000750686cac:PerformanceSharesPayoutLessThanTargetMember2023-01-012023-12-310000750686cac:DeferredStockAwardsMember2023-01-012023-12-310000750686cac:DeferredStockAwardsMember2022-01-012022-12-310000750686cac:DeferredStockAwardsMember2021-01-012021-12-310000750686cac:DCRPAwardsMember2022-12-310000750686cac:DCRPAwardsMember2023-01-012023-12-310000750686cac:DCRPAwardsMember2023-12-310000750686cac:ProfitSharingPlanMember2021-01-012021-12-310000750686us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-01-012023-12-310000750686us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2022-12-310000750686us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2021-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-12-310000750686us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2022-01-012022-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-12-310000750686us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2023-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-12-310000750686us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2021-01-012021-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MinimumMember2023-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MaximumMember2023-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MinimumMember2022-12-310000750686us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMembersrt:MaximumMember2022-12-310000750686us-gaap:DomesticCountryMember2016-10-160000750686us-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686cac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Membercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel2Membercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel3Membercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Membercac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel2Membercac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel3Membercac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000750686us-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686cac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Membercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel2Membercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel3Membercac:CollateralizedMortgageObligationsIssuedByUnitedStatesGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686cac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Membercac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel2Membercac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel3Membercac:CustomerLoanSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000750686us-gaap:CollateralPledgedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000750686cac:ImpairedLoansSpecificallyReservedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000750686cac:ImpairedLoansSpecificallyReservedMemberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-12-310000750686cac:ImpairedLoansSpecificallyReservedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000750686cac:ImpairedLoansSpecificallyReservedMemberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000750686us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000750686us-gaap:FairValueInputsLevel1Member2023-12-310000750686us-gaap:FairValueInputsLevel2Member2023-12-310000750686us-gaap:FairValueInputsLevel3Member2023-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMember2023-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2023-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel2Member2023-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FairValueInputsLevel2Member2023-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel2Member2023-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2023-12-310000750686us-gaap:CarryingReportedAmountFairValueDisclosureMembercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:FairValueInputsLevel1Membercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:FairValueInputsLevel2Membercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:FairValueInputsLevel3Membercac:HomeEquityPortfolioSegmentMember2023-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:ConsumerPortfolioSegmentMember2023-12-310000750686us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000750686us-gaap:FairValueInputsLevel1Member2022-12-310000750686us-gaap:FairValueInputsLevel2Member2022-12-310000750686us-gaap:FairValueInputsLevel3Member2022-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2022-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel2Member2022-12-310000750686us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FairValueInputsLevel2Member2022-12-310000750686us-gaap:CommercialPortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel1Member2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel2Member2022-12-310000750686us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FairValueInputsLevel3Member2022-12-310000750686us-gaap:CarryingReportedAmountFairValueDisclosureMembercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:FairValueInputsLevel1Membercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:FairValueInputsLevel2Membercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:FairValueInputsLevel3Membercac:HomeEquityPortfolioSegmentMember2022-12-310000750686us-gaap:ConsumerPortfolioSegmentMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000750686us-gaap:FairValueInputsLevel1Memberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686us-gaap:FairValueInputsLevel2Memberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686us-gaap:FairValueInputsLevel3Memberus-gaap:ConsumerPortfolioSegmentMember2022-12-310000750686srt:ParentCompanyMember2023-12-310000750686srt:ParentCompanyMember2022-12-310000750686us-gaap:RelatedPartyMembersrt:ParentCompanyMember2023-12-310000750686us-gaap:RelatedPartyMembersrt:ParentCompanyMember2022-12-310000750686srt:ParentCompanyMember2023-01-012023-12-310000750686srt:ParentCompanyMember2022-01-012022-12-310000750686srt:ParentCompanyMember2021-01-012021-12-310000750686srt:ParentCompanyMember2021-12-310000750686srt:ParentCompanyMember2020-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2023

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-28190

CAMDEN NATIONAL CORPORATION
(Exact Name of Registrant As Specified in Its Charter) 
Maine 01-0413282
(State or Other Jurisdiction of
Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
2 Elm StreetCamdenME04843
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (207) 236-8821
 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Exchange on Which Registered
Common Stock, without par valueCACThe NASDAQ Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act: None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer Accelerated filer
Non-accelerated filerSmaller reporting company
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 account standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant’s most recently completed second fiscal quarter: $438,245,610.

The number of shares outstanding of each of the registrant’s classes of common stock as of February 28, 2024 was 14,566,850.

Certain information required in response to Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K is incorporated by reference from Camden National Corporation’s Definitive Proxy Statement for the 2024 Annual Meeting of Shareholders pursuant to Regulation 14A of the General Rules and Regulations of the Commission.




CAMDEN NATIONAL CORPORATION
2023 FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS
Page
PART I
PART II
PART III
PART IV

i


FORWARD-LOOKING STATEMENTS

The discussions set forth below and in the documents we incorporate by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995, including certain plans, exceptions, goals, projections, and statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “plan,” “target,” or “goal” or future or conditional verbs such as “will,” “may,” “might,” “should,” “could” and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements should not be relied on, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Camden National Corporation (the “Company”). These risks, uncertainties and other factors may cause the actual results, performance or achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
 
The following factors, among others, could cause the Company’s financial performance to differ materially from the Company’s goals, plans, objectives, intentions, expectations and other forward-looking statements:
 
weakness in the United States economy in general and the regional and local economies within the New England region and Maine, which could result in a deterioration of credit quality, an increase in the allowance for credit losses or a reduced demand for the Company’s credit or fee-based products and services;
changes in trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
inflation, interest rate, market, and monetary fluctuations;
ongoing competition in the labor markets and increased employee turnover;
the adequacy of succession planning for key executives or other personnel, and the Company’s ability to transition effectively to new members of the senior executive team;
competitive pressures, including continued industry consolidation and the increased financial services provided by non-banks;
deterioration in the value of the Company's investment securities;
commercial real estate vacancies and their impact on the ability of borrowers to repay their loans;
volatility in the securities markets that could adversely affect the value or credit quality of the Company’s assets, impairment of goodwill, or the availability and terms of funding necessary to meet the Company’s liquidity needs;
changes in information technology and other operational risks, including cybersecurity, that require increased capital spending;
changes in consumer spending and savings habits;
changes in tax, banking, securities and insurance laws and regulations;
the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters;
changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board ("FASB"), and other accounting standard setters;
the effects of climate change on the Company and its customers, borrowers or service providers;
the effects of civil unrest, international hostilities, including the war in Ukraine and conflict in the Middle East, or other geopolitical events;
the effects of epidemics and pandemics;
turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including Camden National Bank, 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;
increases in deposit insurance assessments due to bank failures;
1


changes to regulatory capital requirements in response to recent development affecting the banking sector; and
questions about the soundness of one or more financial institutions with which the Company does business.

In addition, statements regarding the potential effects of notable national 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, possibly 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.

You should carefully review all of these factors, and be aware that there may be other factors that could cause the Company's actual results to differ materially from those anticipated, including the risk factors listed in Part I, Item 1A, “Risk Factors,” beginning on page 15. Readers should carefully review the risk factors described therein and should not place undue reliance on our forward-looking statements.

These forward-looking statements were based on information, plans and estimates at the date of this report, and we undertake no obligation to update any forward-looking statements for any reason, including to reflect changes in underlying assumptions or factors, new information, future events or other changes, except to the extent required by applicable law or regulation.
2


PART I

Item 1. Business

Overview. Camden National Corporation (hereafter referred to as “we,” “our,” “us,” or the “Company”) is a publicly-held bank holding company, with $5.7 billion in assets at December 31, 2023, incorporated under the laws of the State of Maine and headquartered in Camden, Maine. Camden National Bank (the “Bank”), a wholly-owned subsidiary of the Company, was founded in 1875. The Company was founded in 1984, went public in 1997 and is registered with NASDAQ Global Market (“NASDAQ”) under the ticker symbol “CAC.”

Our consolidated financial statements accompanying this Form 10-K include the accounts of the Company, the Bank and the Bank’s subsidiaries and divisions. All inter-company accounts and transactions have been eliminated in consolidation.

Who We Are. We are an award-winning, full-service community bank supporting individuals, families, and businesses at every stage of their financial journey. With offices across Northern New England, we offer competitive financial products and services, delivered by a talented team and complemented by the latest in digital banking to empower our customers to bank the way they want. Founded in 1875, we’re passionate about making a difference in people’s lives, so that together we can thrive in a vibrant, prosperous community for all.

As a dedicated community bank, we actively give back and make a difference in our communities and neighborhoods where we live, work, and play. Community is at the core of what we do and why we do it, and as we’ve grown over the years, our commitment to socially-minded growth and giving back has deepened.

Our Commitment to Corporate Responsibility. Our commitment to environmental, social, and governance (“ESG”) progress is an integral part of our company culture as we work to create a thriving, sustainable, and inclusive future for all of our constituents.

Our Core Values. We are uncompromisingly committed to our core values, and rigorously pursue opportunities to add long-term value for our customers, shareholders, employees, and the communities we serve.

We are guided and inspired by our Core Values:
Honesty and integrity – above all else
Trust – built on fairness
Service – second to none
Responsibility – to use our resources for the greater good
Excellence – through hard work and lifelong learning
Diversity – realized through inclusion and respect

Our culture and values are strengths that support our strategic goal to generate consistent, sustainable long-term value for all of our constituents.

What We Do. The Company, as a diversified financial services provider, pursues the objective of achieving long-term sustainable growth by balancing growth opportunities against profit, while mitigating risks inherent in the financial services industry. The primary business of the Company and the Bank is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers. The Company, 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. For the years ended December 31, 2023, 2022 and 2021, net interest income was our primary revenue source, representing 81%, 78%, and 73%, of our total revenues1, respectively. Net interest income is the interest earned on our lending activities, investment securities and other interest-earning assets, less the interest paid on interest-bearing deposits and borrowings (i.e. our primary business activities).

We have achieved a five-year compounded annual asset growth rate of 5%, resulting in $5.7 billion in total assets at December 31, 2023. Asset growth over the past five years of $1.3 billion has been all organic, including further growth and
1 Revenue is the sum of net interest income and non-interest income.
3


expansion into Southern Maine, and select markets in New Hampshire and Massachusetts. Our primary focus continues to be on profitable organic growth and we may pursue acquisitions that support our long-term strategy and fit our culture and core values.

The financial services industry continues to experience consolidations through mergers that could create opportunities for us to promote our value proposition to other financial institutions and financial service companies. 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. We consider our growth markets to be those that that have accelerated growth opportunities in comparison to our other markets, based on current and forecasted demographic information, and where we currently have less of a presence and market share. Further details of our financial information can be found within the consolidated financial statements within Item 8. Financial Statements and Supplementary Data of this report.

Camden National Bank. The Bank is a national banking association chartered under the laws of the United States and headquartered in Camden, Maine. Originally founded in 1875, the Bank became a direct, wholly-owned subsidiary of the Company as a result of a corporate reorganization in 1984. 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, 2023, the Bank had 56 branches in 13 of Maine's 16 counties, two locations in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester, a mortgage loan production office in Braintree, Massachusetts, and 65 ATMs. The Bank optimizes its in-person professional financial guidance with state-of-the-art technology, delivered through sophisticated digital channels. 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. 

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 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. Camden Financial Consultants provides full-service brokerage and insurance and its financial offerings include college, retirement, and estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities.

Securities and advisory services are offered through LPL Financial (“LPL”), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Camden Financial Consultants and the Bank are not registered as a broker-dealer or investment advisor and are not affiliated with LPL Financial. Registered representatives of LPL offer products and services using Camden Financial Consultants, and may also be employees of the Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Camden Financial Consultants or the Bank. Securities and insurance offered through LPL or its affiliates are not insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency, are not bank deposits or obligations and may lose value.

Customers may also access the Bank’s products and services using other channels, including on-line at www.CamdenNational.bank or download our mobile phone application (or “app”).

Competition. We compete throughout Maine, and select areas of New Hampshire and Massachusetts. Our primary markets historically have been and continue to be within Maine. Within Maine, we operate in 13 of the state's 16 counties, with our primary markets and presence being throughout coastal and central Maine. Many of these markets are characterized as rural areas. Major competitors in our primary market area include local independent banks, as well as local branches of large regional and national banking organizations and brokerage houses, marketplace lenders and other financial technology companies (“fintechs”), financial advisors, thrift institutions and credit unions. Other competitors for deposits and loans within our primary market area include insurance companies, money market funds, consumer finance companies and financing affiliates of consumer durable goods manufacturers.
4



We have effectively competed with other financial institutions by emphasizing customer service, highlighted by local decision-making, establishing long-term customer relationships, building customer loyalty and providing products and services designed to meet the needs of customers. Through Camden National Wealth Management and Camden Financial Consultants, we compete for trust, trust-related, investment management, individual retirement, foundation and endowment management services and brokerage services with local banks and non-banks, as well as with a number of brokerage firms and investment advisors with offices in our market area. In addition, most of these services are widely available to our customers by telephone, online and mobile channels through firms located outside our market area.

Investor Relations. The Company’s Investor Relations information can be obtained through our internet address, www.CamdenNational.bank or www.CamdenNationalCorporation.com. The Company makes available on or through its Investor Relations page, without charge, its annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the SEC. The Company’s reports filed with, or furnished to, the SEC are also available at the SEC’s website at www.sec.gov. In addition, the Company makes available, free of charge, its press releases and Code of Business Conduct and Ethics through the Company’s Investor Relations page. Information on our website is not incorporated by reference into this document and should not be considered part of this report.

Human Capital

We recognize the importance of our relationships with our employees, customers, and the communities we serve. Our employees—known as “Stakeholders” at Camden National Bank—are the key to our success. We are powered by an extraordinary team of 600 employees, as of December 31, 2023, who work together to provide expert banking solutions to help people achieve their financial potential.

We believe we have the experience and responsibility to take a proactive approach to engage and support a broad range of employees. We strive to ensure our employees’ work experience permits them to use their skills and passions to make a difference while growing their careers and being recognized and appreciated for their diverse talents, backgrounds, and perspectives.

Employee Development and Retention. To attract, engage, and retain top talent, we strive to create a supportive workplace, with opportunities for our employees to grow and develop in their careers. We provide numerous training and development opportunities, a robust tuition reimbursement program, and competitive compensation, including a minimum starting wage of $17 per hour for all employees.

Diversity, Equity and Inclusion. We recognize that a diverse, equitable, and inclusive workforce is essential to achieving and maintaining a thriving company. We are on a constantly evolving journey toward fostering diversity, equity and inclusion (“DEI”) throughout the organization. Through our commitment to fostering a fair, safe, and welcoming workplace environment for all, we aim to maintain a culture that enables our employees to be their best in serving our customers and communities, while achieving business success. We maintain a number of human resources and other policies, including an anti-harassment and anti-retaliation policy, to promote a workplace that is safe for all and that supports a culture where people feel they can report incidents that threaten that safety. In addition, we have a confidential whistleblower program that forwards complaints to the audit committee and the Board of Directors, and we work to take necessary action as quickly as possible after a complaint is received.

We also prohibit discrimination on the grounds of race, color, religion, sex, sexual orientation (including gender identity and gender expression), national origin, citizenship status, age, disability, genetic information, or veteran status. We employ based on talent and potential for growth, and we value a diversity of backgrounds and ideas. As of December 31, 2023, approximately 67% of our employees self-identified as women, and approximately 45% of our vice presidents, 37% of our senior vice presidents and 33% of our executive vice presidents self-identified as women.

Our commitment to DEI starts at the top of our organization, with oversight of our initiatives provided by the Board of Directors and our president and CEO. Our president and CEO sponsors our Diversity, Equity, and Inclusion Council (“DEI Council”) established in 2021. The DEI Council is self-governed by employees and represents the diversity of our employee population, including employees who identify as racially diverse and LGBTQ+. The DEI Council's purpose is to provide a channel for open communication and feedback, and provide valued advice on all matters pertaining to diversity, equity and inclusion across our organization.

5


To strengthen our DEI commitment, during 2023 we identified a DEI officer to lead the organization’s DEI efforts and expand its diverse talent pipelines to shape an environment where diverse voices and backgrounds continue to be welcomed and heard. In 2023, we completed a full-scope review of our recruiting process with an external consultant to determine whether employment applicants included diverse pools of candidates; the review had no major improvement suggestion. In addition, we expanded our partnerships with organizations to support us in building a diverse recruiting pipeline and saw a 6% increase in the number of diverse applicants (i.e., non-white, veteran status and/or people with a disability) over the last year. We were recognized in 2023 by the Employer Support of the Guard and Reserve State Committee as we were presented with the Above and Beyond Award in recognition of the support we provide to our National Guard and Reserve employees.

Health and Wellness. We are also deeply committed to the health and well-being of our employees. This commitment is reflected in the benefits we offer our employees, including: market-competitive compensation; healthcare; paid time off, including parental/family leave; retirement benefits; short-term and long-term disability; an employee hardship fund, which provides employees dealing with a financial hardship access to funds that the employee is not required to repay; an emotional well-being support program and a wellness reimbursement program.

Information about our Executive Officers

The following table sets forth certain information regarding the executive officers of the Company, as defined by Rule 3b-7 of the Securities and Exchange Act of 1934, as amended.
Executive OfficerPositionAge
Simon R. Griffiths
President and Chief Executive Officer50
Michael R. Archer, CPAExecutive Vice President, Chief Financial Officer40
David J. Ackley
Executive Vice President, Chief Risk Officer
48
William H. MartelExecutive Vice President, Technology and Support Services, Chief Technology Officer54
Jennifer L. MirabileExecutive Vice President, Managing Director, Camden National Wealth Management64
Patricia A. RoseExecutive Vice President, Retail and Mortgage Banking Officer60
Ryan A. Smith
Executive Vice President, Chief Credit Officer
51
Renée D. SmythExecutive Vice President, Chief Experience and Marketing Officer53

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. Prior to joining the Company, Mr. Griffiths most recently served as EVP - Head of Core Banking at Citizens Bank, managing the retail, business banking, contact center, deposit and core banking delivery channels. Mr. Griffiths joined Citizens Bank in 2015 from Santander Bank, where he served as EVP, Managing Director of the retail network. Mr. Griffiths started his banking career at Washington Mutual Bank in 2002.

Michael R. Archer joined the Company in October 2013 and became EVP, Chief Financial Officer (“CFO”) of the Company on January 3, 2022. Prior to becoming EVP, CFO, Mr. Archer served as the Company’s Senior Vice President (“SVP”) and Corporate Controller from June 2016 until January 2022. Prior to joining the Company, Mr. Archer spent seven years at PricewaterhouseCoopers, LLP. Mr. Archer is a licensed Certified Public Accountant, and a graduate of the American Bankers Association Stonier Graduate School of Banking where he also completed the Wharton Leadership Program. Mr. Archer currently serves as a member of local non-profit organizations, including as the Treasurer and a board member of Jobs for Maine's Graduates, Inc., board member for the local little league, and as a committee member for the local town recreational department.

David J. Ackley joined the Company in 2011 and became EVP, Chief Risk Officer in July 2023. 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. Ackley began his career as a Communication Computer Systems Operator for the United States Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications before spending 14 years as Science and Technology Corporation’s Manager of Information Technology. He is a founding member of the Boston Federal Reserve’s Cyber Threat Sharing Forum and currently serves on the American Bankers Association’s Risk and Compliance Conference Planning Committee.

6


William H. Martel joined the Company in March 2020 as EVP, Technology and Support Services and currently holds the title of EVP, Chief Technology Officer. Prior to joining the Company Mr. Martel served as Head of U.S. Operations Technology for Santander U.S. in Boston, leading the Operations and Information Technology Service Management transformations for the US. Previously, Mr. Martel was a Senior Vice President 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.

Jennifer L. Mirabile joined the Company in 2017 as the Managing Director of Camden National Wealth Management. A licensed CFP since 1998, Ms. Mirabile brings more than 28 years of experience in senior wealth management, private banking and relationship management from her previous roles at People's United Bank Wealth Management and Key Private Bank. Ms. Mirabile currently serves as a member of several nonprofit committees and serves on the board of directors for the Penobscot Bay YMCA.

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. Rose began her career in banking at Fleet Bank and Sovereign Bank where she held a variety of leadership roles and served as Market President of Retail Banking in Eastern Massachusetts and New Hampshire.

Ryan A. Smith joined the Company in 2012 and held the title of EVP, Commercial Banking for the Company from 2020 through 2023 before being named as EVP, Chief Credit Officer in December 2023. Prior to becoming an EVP, Mr. Smith led the southern Maine commercial banking line of business and the treasury management line of business from 2012 through 2015, when he then became Director of Commercial Banking for central and midcoast Maine from 2015 through 2019. In 2019, he was promoted to SVP, Director of Credit Administration.

Renée D. Smyth joined the Company as SVP, Chief Marketing Officer upon completion of the merger of Camden National Corporation and SBM Financial, Inc., the parent company of The Bank of Maine, on October 16, 2015. She was promoted to EVP, Chief Experience and Marketing Officer in May 2017. Ms. Smyth served as SVP, Head of Marketing for The Bank of Maine, from 2010 through October 15, 2015. Prior to joining the Company, Ms. Smyth was SVP and Director of Affinity Programs for Override, an international loyalty marketing service company. She is a strategic advisor to Finding Our Voices and the American Heart Association’s Go Red for Women.

All of the executive officers hold office at the discretion of the Company’s Board of Directors. There are no arrangements or understandings between any of the directors, officers or any other persons pursuant to which any of the officers have been selected as officers. There are no “family relationships” among the directors and executive officers, as the Securities and Exchange Commission defines that term.

Supervision and Regulation

The following discussion addresses elements of the regulatory framework applicable to bank holding companies and their subsidiaries. This regulatory framework is intended primarily for the protection of depositors, the Federal Deposit Insurance Fund (“DIF”), and the banking system as a whole, rather than the protection of shareholders or non-depository creditors of a bank holding company such as the Company.

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”).

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. Changes in applicable laws or regulations, and in their interpretation and application by regulatory agencies and other governmental authorities, cannot be predicted, but may have a material effect on our business, financial condition or results of operations.

7


Regulation of the Company

As a bank holding company, the Company is subject to regulation, supervision and examination by the FRB, which has the authority, among other things, to order bank holding companies to cease and desist from unsafe or unsound banking practices; to assess civil money penalties; and to order termination of non-banking activities or termination of ownership and control of a non-banking subsidiary by a bank holding company.

Source of Strength. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), the Company is required to serve as a source of financial strength for the Bank. This support may be required at times when the Company may not have the resources to provide it. In the event of a bank holding company’s bankruptcy, any commitment by the bank holding company to a federal bank regulatory agency to maintain the capital of a bank subsidiary will be assumed by the bankruptcy trustee and entitled to a priority of payment.

Acquisitions and Activities. The BHCA prohibits a bank holding company, without prior approval of the FRB, from acquiring all or substantially all the assets of a bank, acquiring control of a bank, merging or consolidating with another bank holding company, or acquiring direct or indirect ownership or control of any voting shares of another bank or bank holding company if, after such acquisition, the acquiring bank holding company would control more than 5% of any class of the voting shares of such other bank or bank holding company. The BHCA also prohibits a bank holding company from engaging directly or indirectly in activities other than those of banking, managing or controlling banks or furnishing services to its subsidiary banks. 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. The Change in Bank Control Act prohibits a person or group of persons acting in concert from acquiring “control” of a bank holding company unless the FRB has been notified and has not objected to the transaction. Under a rebuttable presumption established by the FRB, the acquisition of 10% or more of a class of voting securities of a bank holding company with a class of securities registered under Section 12 of the Exchange Act would generally constitute the acquisition of control of a bank holding company. In addition, the BHCA prohibits any company from acquiring control of a bank or bank holding company without first having obtained the approval of the FRB. 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.

Regulation of the Bank

The Bank is subject to regulation, supervision, and examination by the OCC. Additionally, the Federal Deposit Insurance Corporation (“FDIC”) has secondary supervisory authority as the insurer of the Bank’s deposits. The Bank is also subject to regulations issued by the Consumer Financial Protection Bureau (“CFPB”), as enforced by the OCC. The FRB may directly examine the subsidiaries of the Company, including the Bank. The enforcement powers available to the federal banking regulators include, among other things, the ability to issue cease and desist or removal orders; to terminate insurance of deposits; to assess civil money penalties; to issue directives to increase capital; to place the Bank into receivership; and to initiate injunctive actions against banking organizations and institution-affiliated parties.

Deposit Insurance. The deposit obligations of the Bank are insured by the FDIC’s DIF up to the applicable limits. Under the Federal Deposit Insurance Act (“FDIA”), insurance of deposits may be terminated by the FDIC if the FDIC finds that the insured depository institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

The Bank’s deposits are subject to deposit insurance assessments to maintain the DIF. The Bank’s deposit insurance assessments are based on its assets. To determine its deposit insurance assessment, the Bank computes the base amount of its average consolidated assets less its average tangible equity (defined as the amount of Tier I capital) and the applicable assessment rate. 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. Each of the seven financial ratios and a weighted average of CAMELS component ratings is multiplied by a corresponding pricing multiplier. The sum of these products is added to a uniform amount, with the resulting sum being an institution’s initial base assessment rate (subject to minimum or maximum assessment rates based on a bank’s CAMELS composite rating). This method takes into account various measures, including an institution’s leverage ratio, brokered deposit ratio, one year asset growth, the ratio of net income before taxes to total assets and considerations related to asset quality.
8


In October 2022, the FDIC finalized a rule to increase the initial base deposit insurance assessment rate schedules for all insured depository institutions by 2 basis points, beginning with the first quarterly assessment period of 2023. The increased assessment rate is intended to improve the likelihood that the DIF reserve ratio would reach the required minimum of 1.35 percent by the statutory deadline of September 30, 2028. Under the FDIC’s final rule, assessments for established small banks range from 2.5 to 32 basis points, after adjustments. The FDIC has the power to make further adjustments to deposit insurance assessment rates at any time, and the Company is not able to predict the amount or timing of any such adjustment.

In November, 2023, the FDIC finalized a rule that imposes special assessments to recover the losses to the DIF resulting from the FDIC’s use, in March 2023, of the systemic risk exception to the least-cost resolution test under the FDIA in connection with the receiverships of Silicon Valley Bank and Signature Bank. Under the rule, the assessment base is the estimated uninsured deposits that an insured depository institution reported in its December 31, 2022 Call Report, excluding the first $5 billion in estimated uninsured deposits. Because the Bank reported less than $5 billion in estimated uninsured deposits in its December 31, 2022 Call Report, the Bank will not be subject to the special assessments.

Activities and Investments of National Banking Associations. National banking associations must comply with the National Bank Act and the regulations promulgated thereunder by the OCC, which limit the activities of national banking associations to those that are deemed to be part of, or incidental to, the “business of banking.” Activities that are part of, or incidental to, the business of banking include taking deposits, borrowing and lending money and discounting or negotiating promissory notes, drafts, bills of exchange, and other evidences of debt. Subsidiaries of national banking associations generally may only engage in activities permissible for the parent national bank.

Lending Restrictions. Federal law limits a bank’s authority to extend credit to its insiders, including its directors, executive officers and 10% shareholders, as well as to entities controlled by such persons. Among other things, extensions of credit to insiders are required to be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons. Also, the terms of such extensions of credit may not involve more than the normal risk of repayment or present other unfavorable features and may not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of the bank’s capital. An extension of credit to an insider includes credit exposure arising from a derivatives transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction or securities borrowing transaction. Additionally, asset sale transactions with insiders must be on market terms, and if the transaction represents more than 10% of the capital and surplus of the Bank, the transactions must be approved by a majority of the disinterested directors of the Bank.

Brokered Deposits. Section 29 of the FDIA and FDIC regulations generally limit the ability of an insured depository institution to accept, renew or roll over any brokered deposit unless the institution’s capital category is “well capitalized” under the prompt corrective action framework described below or, with a waiver from the FDIC, “adequately capitalized.” A bank that is “adequately capitalized” and that accepts or renews brokered deposits subject to a waiver from the FDIC is subject to additional restrictions on the interest rates it may offer. Depository institutions that have brokered deposits in excess of 10% of total assets will be subject to increased FDIC deposit insurance premium assessments. 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. 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”). The CRA requires the OCC to evaluate the Bank’s performance in helping to meet the credit needs of the entire communities it serves, including low and moderate-income neighborhoods, consistent with its safe and sound banking operations, and to take this record into consideration when evaluating certain applications. The OCC rates a national bank’s compliance with the CRA as “Outstanding,” “Satisfactory,” “Needs to Improve” or “Substantial Noncompliance.” Failure of the Bank to receive at least a “Satisfactory” rating could inhibit the Bank or the Company from undertaking certain activities, including acquisitions of other financial institutions. The Bank currently has an “Outstanding” CRA rating resulting from its 2021 CRA performance evaluation.

In October 2023, the OCC, together with the FRB and FDIC, issued a joint final rule to modernize the CRA regulatory framework. The final rule is intended, among other things, to adapt to changes in the banking industry, including the expanded role of mobile and online banking, and to tailor performance standards to account for differences in bank size and business models. The final rule introduces new tests under which the performance of banks with over $2 billion in assets, including the Bank, will be assessed. The new rule also includes data collection and reporting requirements, some of which would not apply to the Bank, because they are applicable only to banks with over $10 billion in assets. Most provisions of the final rule will become effective on January 1, 2026, and the data reporting requirements will become effective on January 1, 2027.
9


Capital Adequacy and Safety and Soundness

Regulatory Capital Requirements. The Company and the Bank are subject to risk-based capital requirements and rules issued by the FRB, the OCC and the FDIC (the “Capital Rules”) that are based on the Basel Committee on Banking Supervision’s (“Basel Committee”) framework for strengthening capital and liquidity regulation (referred to as Basel III). The Capital Rules are intended to reflect the relationship between the banking organization’s capital and the degree of risk associated with its operations based on transactions recorded on-balance sheet as well as off-balance sheet items. The FRB and the OCC may from time to time require that a banking organization maintain capital above the minimum levels discussed below, due to the banking organization’s financial condition or actual or anticipated growth. Under the Capital Rules, the Company and the Bank apply the Standardized Approach in measuring their risk-weighted assets (“RWA”) and regulatory capital.

The Capital Rules define qualifying capital instruments and specify minimum amounts of capital as a percentage of assets that banking organizations are required to maintain.

Under the Capital Rules, risk-based capital ratios are calculated by dividing Common Equity Tier 1 (“CET1”) capital, Tier 1 capital and total risk-based capital, respectively, by RWA. Assets and off-balance sheet credit equivalents are assigned a risk weight based primarily on supervisory assessments of relative credit risk.

Under the Capital Rules, the Company and the Bank are each required to maintain a minimum CET1 capital to RWA ratio of 4.5%, a minimum Tier 1 capital to RWA ratio of 6%, a minimum total capital to RWA ratio of 8% and a minimum leverage ratio of 4%. Additionally, the Capital Rules require a capital conservation buffer, consisting solely of CET1 capital in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total RWA, resulting in a requirement for the Company and the Bank effectively to maintain CET1, Tier 1 and total capital ratios of 7%, 8.5% and 10.5%, respectively. Banking institutions with a ratio of CET1 capital to RWA above the minimum requirement but below the capital conservation buffer face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases based on the amount of the shortfall and the institution’s “eligible retained income” (the greater of (i) net income for the preceding four quarters, net of distributions and associated tax effects not reflected in net income and (ii) average net income over the preceding four quarters).

The Capital Rules provide for a number of deductions from and adjustments to CET1 capital. As a “non-advanced approaches” firm under the Capital Rules, the Company is subject to rules that provide for simplified capital requirements relating to the threshold deductions for mortgage servicing assets, deferred tax assets arising from temporary differences that a banking organization could not realize through net operating loss carry backs, and investments in the capital of unconsolidated financial institutions, as well as the inclusion of minority interests in regulatory capital.

The Company and the Bank, as non-advanced approaches banking organizations, made a one-time, permanent election under the Capital Rules to exclude the effects of certain components of accumulated other comprehensive income (“AOCI”) included in shareholders’ equity under U.S. GAAP in determining regulatory capital ratios.

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%. Under these regulations, a “qualifying small banking organization” can choose to apply the Community Bank Leverage Ratio framework if its Community Bank Leverage Ratio (i.e., the ratio of its Tier 1 capital to average total consolidated assets minus certain deductions from total assets), is greater than the required threshold of 9%. A “qualifying small banking organization” that maintains tangible equity in excess of the applicable Community Bank Leverage Ratio would be deemed to be in compliance with (i) the leverage and risk-based capital requirements promulgated by the federal banking agencies; (ii) in the case of a depository institution, the capital ratio requirements to be considered “well-capitalized” under the federal banking agencies’ “prompt corrective action” regime (see “—Prompt Corrective Action” below); and (iii) “any other capital or leverage requirements” to which the organization is subject, unless the appropriate federal banking agency determines otherwise based on the particular organization’s risk profile. 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. 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. The Company will continue to evaluate the impact of the Community Bank Leverage Ratio and may opt into that framework in the future. The Company cannot guarantee, however, that it or the Bank will continue to meet
10


the conditions to be eligible to apply the Community Bank Leverage Ratio, nor can the Company predict at this time whether it or the Bank will choose to apply the Community Bank Leverage Ratio in the future.

In December 2017, the Basel Committee published standards that it described as the finalization of the Basel III post-crisis regulatory reforms. Among other things, these standards revise the Basel Committee's standardized approach for credit risk (including by recalibrating risk weights and introducing new capital requirements for certain “unconditionally cancellable commitments,” such as home equity lines of credit) and provides a new standardized approach for operational risk capital. Under the current U.S. capital rules, operational risk capital requirements and a capital floor apply only to advanced approaches institutions, and not to the Company or Bank. In July 2023, the federal banking regulators proposed revisions to the Basel III Capital Rules to implement the Basel Committee’s 2017 standards and make other changes to the Basel III Capital Rules. 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 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”). 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. Supervisory actions include: (i) restrictions on payment of capital distributions and management fees, (ii) requirements that a federal bank regulator monitor the condition of the institution and its efforts to restore its capital, (iii) submission of a capital restoration plan, (iv) restrictions on the growth of the institution’s assets and (v) requirements for prior regulatory approval of certain expansion proposals. A bank that is “critically undercapitalized” (i.e., has a ratio of tangible equity to total assets that is equal to or less than 2.0%) will be subject to further restrictions and generally will be placed in conservatorship or receivership within 90 days. An insured depository institution is considered “well capitalized” if it (i) has a total risk-based capital ratio of 10.0% or greater; (ii) has a Tier 1 risk-based capital ratio of 8.0% or greater; (iii) has a CET1 ratio of at least 6.5% or greater; (iv) has a leverage capital ratio of 5.0% or greater; and (v) is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure.

The FDIA’s prompt corrective action provisions apply only to depository institutions such as the Bank, and not to bank holding companies. Under the FRB’s regulations, a bank holding company, such as the Company, is considered “well capitalized” if the bank holding company (i) has a total risk based capital ratio of at least 10%, (ii) has a Tier 1 risk-based capital ratio of at least 6%, and (iii) is not subject to any written agreement order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. Although prompt corrective action regulations apply only to depository institutions and not to bank holding companies, a bank that is required to submit a capital restoration plan generally must concurrently submit a performance guarantee by its parent 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. "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.

The Bank and the Company meet all capital requirements under the Capital Rules, including the capital conservation buffer, and each meet the capital ratio requirements to be “well capitalized” for purposes of the prompt corrective action provisions of the FDIA and applicable FRB regulations, respectively.

Safety and Soundness Standards. The FDIA requires the federal bank regulatory agencies to prescribe safety and soundness standards, by regulations or guidelines, as the agencies deem appropriate. Guidelines adopted by the federal bank regulatory agencies establish general standards relating to internal controls and information systems, internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, asset quality, earnings and compensation, fees and benefits. In general, these guidelines require, among other things, appropriate systems and practices to identify and manage the risk and exposures specified in the guidelines. In addition, the federal banking agencies adopted regulations that authorize, but do not require, an agency to order an institution that has been given notice by an agency that it is not satisfying any of such safety and soundness standards to submit a compliance plan. 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. See “—Prompt Corrective Action” above. If an institution
11


fails to comply with such an order, the agency may seek to enforce such order in judicial proceedings and to impose civil money penalties.

Dividend and Share Repurchase Restrictions

The Company is a legal entity separate and distinct from its subsidiaries. The revenue of the Company (on a parent-only basis) is derived primarily from interest and dividends paid to it by the Bank. The right of the Company, and consequently the right of shareholders of the Company, to participate in any distribution of the assets or earnings of the Bank through the payment of such dividends or otherwise is necessarily subject to the prior claims of creditors of the Bank (including depositors), except to the extent that certain claims of the Company in a creditor capacity may be recognized. The Company and the Bank are subject to various federal and state restrictions on their ability to pay dividends as described below.

Restrictions on Bank Holding Company Dividends. The FRB has the authority to prohibit bank holding companies from paying dividends if such payment is deemed to be an unsafe or unsound practice. The FRB has indicated generally that it may be an unsafe or unsound practice for bank holding companies to pay dividends unless the bank holding company’s net income over the preceding year is sufficient to fund the dividends and the expected rate of earnings retention is consistent with the organization’s capital needs, asset quality and overall financial condition. FRB guidance also directs bank holding companies to inform the FRB reasonably in advance of declaring or paying a dividend that exceeds earnings for the period for which the dividend is being paid. Further, the Company’s ability to pay dividends is restricted if it does not maintain the capital conservation buffer. See “—Capital Adequacy and Safety and Soundness—Regulatory Capital Requirements” above.

Under Maine law, a corporation’s Board of Directors may declare, and the corporation may pay, dividends on its outstanding shares, in cash or other property, generally only out of the corporation’s unreserved and unrestricted earned surplus, or out of the unreserved and unrestricted net earnings of the current fiscal year and the next preceding fiscal year taken as a single period, except under certain circumstances, including when the corporation is insolvent, or when the payment of the dividend would render the corporation insolvent or when the declaration would be contrary to the corporation’s charter.

Restrictions on Bank Dividends. Under OCC regulations, national banks generally may not declare a dividend in excess of the bank’s undivided profits or, absent OCC approval, if the total amount of dividends declared by the national bank in any calendar year exceeds the total of the national bank’s retained net income year-to-date combined with its retained net income for the preceding two years. National banks also are prohibited from declaring or paying any dividend if, after making the dividend, the national bank would be considered “undercapitalized” (as defined by reference to other OCC regulations). The OCC has the authority to use its enforcement powers to prohibit a national bank, such as the Bank, from paying dividends if, in its opinion, the payment of dividends would constitute an unsafe or unsound practice. Further, the Bank’s ability to pay dividends is restricted if it does not maintain the capital conservation buffer. 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. The Bank is subject to these restrictions, which include quantitative and qualitative limits on the amounts and types of transactions that may occur, including extensions of credit (which include credit exposure arising from repurchase and reverse repurchase agreements, securities borrowing and derivative transactions) to affiliates, investments in the stock or securities of affiliates, purchases of assets from affiliates and other “covered transactions.” Generally, a bank’s (including its subsidiaries) covered transactions with any affiliate are subject to the following limits: (i) the aggregate amount of covered transactions with any one affiliate cannot exceed 10% of the bank’s capital stock and surplus; and (ii) the aggregate amount of covered transactions with all affiliates cannot exceed 20% of the bank’s capital stock and surplus. Transactions between a bank and its affiliates, including a parent holding company, must be on market terms and not otherwise unduly favorable to an affiliate, and, in the case of extensions of credit, be secured by specified amounts and types of collateral.

Anti-Tying Restrictions

Generally, a bank is prohibited from extending credit, leasing or selling property, furnishing any service or fixing or varying the consideration for any of the foregoing on the condition that (i) the customer obtains additional credit, property or services from the bank’s parent holding company or any subsidiary of the holding company, or (ii) the customer will not obtain credit, property or services from a competitor of the bank or its affiliates (except to the extent the restriction is a reasonable condition imposed to assure the soundness of the credit extended).
12



Consumer Protection Regulation

The Company and the Bank are subject to federal and state laws designed to protect consumers and prohibit unfair or deceptive business practices, including the Equal Credit Opportunity Act, the Fair Housing Act, the Home Ownership Protection Act, the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003 (“FACT Act”), the Gramm-Leach-Bliley Act of 1999 (“GLBA”), the Truth in Lending Act, the CRA, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act and various state law counterparts. These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must interact with customers when taking deposits, making loans, collecting loans and providing other services. In addition, the CFPB has a broad mandate to prohibit unfair, deceptive or abusive acts and practices, is specifically empowered to require certain disclosures to consumers and draft model disclosure forms, and is responsible for making rules and regulations under the federal consumer protection laws relating to financial products and services. Failure to comply with consumer protection laws and regulations can subject financial institutions to enforcement actions, fines and other penalties. The OCC examines the Bank for compliance with CFPB rules and enforces CFPB rules with respect to the Bank.

Mortgage Reform. The Dodd-Frank Act prescribes certain standards that mortgage lenders must consider before making a residential mortgage loan, including verifying a borrower’s ability to repay such mortgage loan, and allows borrowers to assert violations of certain provisions of the Truth in Lending Act as a defense to foreclosure proceedings. Under the Dodd-Frank Act, prepayment penalties are prohibited for certain mortgage transactions and creditors are prohibited from financing insurance policies in connection with a residential mortgage loan or home equity line of credit. In addition, the Dodd-Frank Act prohibits mortgage originators from receiving compensation based on the terms of residential mortgage loans and generally limits the ability of a mortgage originator to be compensated by others if compensation is received from a consumer. The Dodd-Frank Act requires mortgage lenders to make additional disclosures prior to the extension of credit, in each billing statement and for negative amortization loans and hybrid adjustable rate mortgages.

Data Privacy and Cyber Security. The GLBA requires financial institutions to implement policies and procedures regarding the disclosure of nonpublic personal information about consumers to nonaffiliated third parties. 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. However, an annual disclosure is not required to be provided by a financial institution if the financial institution only discloses information under exceptions from GLBA that do not require an opt out to be provided and if there has been no change in its privacy policies and practices since its most recent disclosure provided to consumers. The GLBA also requires that the Bank develop, implement and maintain a comprehensive written information security program designed to ensure the security and confidentiality of customer information (as defined under GLBA), to protect against anticipated threats or hazards to the security or integrity of such information; and to protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer. The Bank is also required to send a notice to customers whose sensitive information has been compromised if unauthorized use of this information is reasonably possible.

Most states, including the states where the Bank operates, have enacted legislation concerning breaches of data security and Congress is considering federal legislation that would require consumer notice of data security breaches. Pursuant to the FACT Act, the Bank must develop and implement a written identity theft prevention program to detect, prevent, and mitigate identity theft in connection with the opening of certain accounts or certain existing accounts. 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.

The U.S. federal bank regulatory agencies impose notification requirements on banking organizations with respect to significant computer security incidents. Under these regulations, a bank holding company, such as the Company, and a national bank, such as the Bank, are required to notify the FRB or OCC, respectively, within 36 hours of incidents that have materially disrupted or degraded, or are reasonably likely to materially disrupt or degrade the banking organization’s ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or pose a threat to the financial stability of the United States (“U.S.”).

13


Anti-Money Laundering

The Bank Secrecy Act. Under the Bank Secrecy Act (“BSA”), a financial institution is required to have systems in place to detect certain transactions, based on the size and nature of the transaction, and to monitor and report suspicious activity to appropriate law enforcement or regulatory authorities. Financial institutions, such as the Bank, are also required to adopt and implement policies and procedures with respect to, among other things, anti-money laundering (“AML”) compliance, suspicious activity, currency transaction reporting, customer identity verification and customer risk analysis, enhanced due diligence based upon risk and identification and monitoring of beneficial ownership. In addition, financial institutions are required to take steps to monitor their correspondent banking and private banking relationships as well as, if applicable, their relationships with “shell banks.” In evaluating an application under Section 3 of the BHCA to acquire a bank or an application under the Bank Merger Act to merge banks or affect a purchase of assets and assumption of deposits and other liabilities, the applicable federal banking regulator must consider the AML compliance record of both the applicant and the target.

In January 2021, the Anti-Money Laundering Act of 2020 (“AMLA”), which amends the BSA, was enacted. Among other things, the AMLA codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards by the U.S. Department of the Treasury for evaluating technology and internal processes for BSA compliance; and expands enforcement- and investigation-related authority, including a significant expansion in the available sanctions for certain BSA violations. Many of the statutory provisions in the AMLA will require additional rule-makings, reports and other measures, and the impact of the AMLA will depend on, among other things, rule-making and implementation guidance. In June 2021, the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury, issued the priorities for anti-money laundering and countering the financing of terrorism policy required under the AMLA. The priorities include: corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing.

OFAC. The U.S. has imposed economic sanctions that affect transactions with designated foreign countries, nationals and others. These sanctions, which are administered by the U.S. Treasury’s Office of Foreign Assets Control (“OFAC”), take many different forms. 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. 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.

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. The federal banking regulators have issued comprehensive guidance on incentive compensation policies (the “Incentive Compensation Guidance”) intended to ensure that the incentive compensation policies of banking organizations do not undermine safety and soundness of such organizations by encouraging excessive risk-taking. The Incentive Compensation Guidance is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. The Incentive Compensation Guidance 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.

In October 2022, the SEC adopted a final rule directing national securities exchanges and associations, including NASDAQ, to implement listing standards that require all listed companies to adopt policies mandating the recovery or “clawback” of excess incentive-based compensation earned by a current or former executive officer during the three fiscal years preceding a required accounting restatement, including to correct an error that would result in a material misstatement if the error were corrected in the current period. The excess compensation would be based on the amount the executive officer would have received had the incentive-based compensation been determined using the restated financial statements. NASDAQ’s
14


listing standards required by the SEC’s rule became effective in October 2023. The Company has adopted a clawback policy in accordance with these standards.









15


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. Any of the following risks could affect the Company’s financial condition and results of operations and could be material and/or adverse in nature. You should consider all of the following risks together with all of the other information in this Annual Report on Form 10-K.

Economic and Market Conditions Risk

Our financial condition and results of operations have been adversely affected, and in the future may be adversely affected, by the U.S. and international financial market and economic conditions.

We have been, and in the future may be, affected by general business and economic conditions in the U.S. and, to a lesser extent, abroad. These conditions include short-term and long-term interest rates, inflation, money supply, political issues, legislative and regulatory changes, fluctuations in both debt and equity capital markets, broad trends in industry and finance, unemployment, investor confidence and customer deposit behavior, all of which are beyond our control. These conditions can change suddenly and negatively. For example, economic concerns were heightened during the COVID-19 pandemic from early 2020 through 2022. In addition, bank failures in March and April of 2023 prompted by sudden and significant withdrawals of deposits at the failing banks resulted in significant volatility in the stock prices of certain financial services institutions. Volatility due to failures of other banks or general uncertainty regarding the health of banks may affect customer deposit behavior and cause deposit withdrawals. Other future changes in any of these conditions, including as a result of the COVID-19 pandemic, the war in Ukraine, conflict in the Middle East, the threat or occurrence of a U.S. sovereign default or government shutdown, a downgrade, or perceived future downgrade, in the U.S. sovereign credit rating or outlook, disruptions in the financial services industry or other future events that we are unable to predict, could result in increases in loan delinquencies and non-performing assets, decreases in loan collateral values, the value of our investment portfolio and demand for our products and services or otherwise adversely affect our financial condition or results of operations.

In addition, volatility and uncertainty related to inflation and its effects, which could potentially contribute to poor economic conditions, may contribute to or enhance some of the risks described in this section. For example, higher inflation could reduce demand for our products, adversely affect the creditworthiness of our borrowers or result in lower values for our interest-earning assets and investment securities. Higher inflation could also lead to higher interest rates, which could negatively affect our performance. See “Fluctuations in market interest rates have in the past adversely affected, and may in the future adversely affect, our performance” below. Any of these effects, or others that we are not able to predict, could adversely affect our financial condition or results of operations.

Fluctuations in market interest rates have in the past adversely affected, and may in the future adversely affect, our performance.

Our profitability depends to a large extent upon our net interest income, which is the difference between interest income earned from loans and investments and the interest expense paid on deposits and borrowings. Net interest income is our largest source of revenue and can be affected significantly by changes in market interest rates, including in the shape of the yield curve or in spreads between different market interest rates, as well as by changes related to inflation. In particular, changes in relative interest rates may reduce our net interest income as the difference between interest income and interest expense decreases. As a result, we have adopted asset and liability management policies to minimize the potential adverse effects of changes in interest rates on net interest income, primarily by altering the mix and maturity of loans, investments and funding sources. See Item 7. “Management’s Discussion and Analysis—Risk Management Policies—Interest Rate Risk” for additional information regarding the Company’s asset and liability management policies and practices, as well as its interest rate risk position, including assumptions used in determining such, as of December 31, 2023. There is risk that any change in interest rates could negatively affect our results of operations or financial condition. Because market interest rates may change by differing magnitudes and at different times, significant changes in interest rates over an extended period of time could reduce overall net interest income.

In response to inflation, the Federal Reserve raised targeted Effective Federal Funds Rate significantly during 2022 and through July 2023 to a target range of 5.25% – 5.5%. The sharp increase in interest rates has resulted in a prolonged inverted yield curve, where short-term interest rates exceed long-term interest rates. These increased interest rates negatively affected our results of operations during 2022 and 2023 by decreasing net interest income, and therefore decreasing revenue and net income, The increased interest rates also contributed in 2022 and 2023 to losses in our investment portfolio, including realized
16


and unrealized losses in the AFS portfolio and unrealized losses in the HTM portfolio, a $1.8 million charge-off of a Signature Bank corporate bond in 2023, slowing residential and commercial loan production, and may negatively impact our borrowers’ ability to repay their current loan obligations, though we have not yet seen any material degradation in our credit quality. These conditions may continue or worsen if the Federal Reserve continues to hold interest rates at the current level or raise interest rates in response to inflationary pressures or other economic conditions.

Volatility in interest rates can also result in customer deposits flowing away from financial institutions into direct investments. Direct investments, such as United States government and corporate securities and other investment vehicles (including money market mutual funds), generally pay higher rates of return than financial institutions because of the absence of federal insurance premiums, and a prolonged high-interest rate environment may cause the Bank to experience increased deposit migration. 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. Higher funding costs may continue to reduce our net interest margin and net interest income.

We could be adversely affected by the actions or commercial soundness, strength or stability of other financial institutions.

Actual or perceived issues with, or rumors or questions about, one or more financial institutions, or the financial services industry more generally, have led to, and may in the future lead to, market-wide liquidity problems; rapid and significant deposit withdrawals at certain banks, particularly those with elevated levels of uninsured deposits; losses or defaults by certain institutions, up to and including failures of certain banks; and significant volatility in the stock of financial services institutions. In addition, our ability to engage in routine funding and settlement transactions could be adversely affected by any of these events or by other events that affect the commercial soundness of other financial institutions. Failures of one or more banks that are unrelated to the Bank may in the future increase the Bank’s deposit insurance assessments, and customers and others may seek to make comparisons between failed or failing banks and the Bank, which, even if unfounded, can spread quickly through social media or other online channels. Such comparisons could affect customer confidence in the Bank and lead to deposit withdrawals or other negative effects we are unable to predict, any of which could materially and negatively affect our results of operations and financial condition.

Financial services institutions are interrelated as a result of trading, clearing, counterparty and other relationships. We maintain a diversified securities portfolio and have exposure to many different counterparties, and we routinely execute transactions with counterparties in the financial industry, including brokers and dealers, other commercial banks, investment banks, mutual and hedge funds, and other financial institutions. As a result, defaults by, or even rumors or questions about, the soundness, strength or stability of one or more financial services institutions, or the financial services industry generally, could lead to losses or defaults by us or by other institutions and organizations. Many of these transactions expose us to credit risk in the event of default of our counterparty or client. Furthermore, our credit risk may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due to us. Any such losses could materially and adversely affect our results of operations.

In addition, although we believe that we have adequately reviewed our investment securities for the need for an allowance for credit losses or impairment, over time, the economic and market environment may provide additional insight regarding the fair value of certain securities, which could change our judgment regarding the need for an allowance for credit losses or impairment. If a counterparty should default, become insolvent, declare bankruptcy, or otherwise cease to exist, the value of our investment may be impaired. This could result in provision for credit losses or realized losses being charged against future income. Given the significant judgments involved, there is risk that material provisions may be recorded to establish an allowance for credit losses resulting in realized losses. In 2023, we fully wrote-off a $1.8 million Signature Bank corporate bond, as Signature Bank failed in March 2023, and we recognized the charge-off through provisions for credit losses on our investment securities portfolio.

Camden National Wealth Management may be negatively affected by changes in economic and market conditions.

A substantial portion of income from fiduciary services is dependent on the market value of wealth management assets under management, which are primarily marketable securities. 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.

Our business performance and the trading price of shares of our common stock have in the past, and may in the future be, affected by many factors affecting financial institutions, including volatility in the credit, mortgage and housing markets, fluctuations in interest rates (including in response to inflation), the markets for securities relating to mortgages or housing, and the value of debt and mortgage-backed and other securities that we hold in our investment portfolio. Government action and legislation may also impact us and the value of our common stock. We cannot predict what impact, if any, future volatility will have on our business or share price and for these and other reasons our shares of common stock may trade at a price lower than that at which they were purchased.

In addition, the value of securities, derivatives and other financial instruments which we own can be affected materially by market volatility. Volatility, illiquid market conditions or other disruptions in the financial markets may make it difficult to value certain financial instruments. Valuations of financial instruments in future periods may result in significant changes in the value of financial instruments we own. At the time of any disposition of such financial instruments, the price that we realize will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value. Any of these factors could cause a decline in the value of financial instruments that we own, which may have an adverse effect on our results of operations. In addition, losses in the value of our investment securities or loan portfolio could affect market perception of us and create volatility in our stock price. Losses in the value of our investment securities, even if they do not affect earnings or capital, could also cause some depositors, particularly those who maintain uninsured and uncollateralized deposits, to question the stability of the Bank and to move their deposits away from the Bank. Such events could negatively affect our liquidity, financial condition and results of operations.

Credit Risk and Lending Business Risk

Our loans are concentrated in certain areas of Maine and adverse conditions in those markets could adversely affect our operations.

    We primarily serve individuals and businesses located in the state of Maine, with 68% of our loan portfolio concentrated among borrowers in Maine as of December 31, 2023, with higher concentrations of exposure in Cumberland, Kennebec, Knox and York counties. Further, because a substantial portion of the loan portfolio is secured by real estate in this area, the value of the associated collateral is also subject to regional real estate market conditions. Adverse economic, political or business developments or natural hazards, the severity and frequency of which are increasing as a result of climate change, may affect these areas and the ability of property owners in these areas to make payments of principal and interest on the underlying mortgages. If these regions experience adverse economic, political or business conditions, such as prolonged elevated inflation and interest rates, or if they experience a pandemic or similar event, such as occurred during the COVID-19 pandemic, we would likely experience higher rates of loss and delinquency on these loans than if the loans were more geographically diverse. In addition, adverse economic, political or other events may affect certain industries in our markets more than others. For example, the COVID-19 pandemic and the resulting restrictions on individuals and economic activity adversely affected hospitality, transportation and commercial real estate industries in Maine. 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.

At December 31, 2023, our commercial real estate and commercial loan portfolios comprised 51% of our total loan balances. Commercial loans generally carry larger loan balances and involve a higher risk of nonpayment or late payment than residential mortgage loans. Commercial loans may lack standardized terms and may include a balloon payment feature. The ability of a borrower to make or refinance a balloon payment may be affected by a number of factors, including the financial condition of the borrower, prevailing economic conditions and prevailing interest rates, and rising interest rates may make it more difficult or impossible for borrowers to refinance maturing loans. Repayment of these loans is generally more dependent on the economy and the successful operation of a business. High vacancy rates in commercial properties, including higher vacancy rates experienced during and after the COVID-19 pandemic have affected, and in the future may affect, the value of commercial real estate, including by causing the value of properties securing commercial real estate loans to be less than the amounts owed on such loans. 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. 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. Risks of higher credit losses and other risks described above that could result from adverse economic or other events affecting any industry within our commercial loan portfolio may be exacerbated by industry concentrations within the commercial loan portfolio.

If our allowance for credit losses for loans is not adequate to cover actual loan losses, our earnings could decrease.

We make various assumptions and judgments about the collectability of our loan portfolio and provide an allowance for credit losses for these loans (herein referred to as the “allowance for loan losses”) based on a number of factors. The level of the allowance for loan losses reflects management's continuing evaluation of industry concentrations, specific credit risks, credit loss experience, current loan portfolio quality, current economic trends and conditions, reasonable and supportable forecasts about the future, changes in competitive, legal, and regulatory conditions, and unidentified losses inherent in the current loan portfolio. On a monthly basis, management reviews the allowance for loan losses to assess recent asset quality trends and impact on the Company's financial condition. On a quarterly basis, the allowance for loan losses is reviewed and approved at the Company's Audit Committee, and later reviewed and ratified by the Bank's Board of Directors. Determination of the allowance for loan losses is inherently subjective because it requires significant estimates and management judgment of credit risks and future trends, which are subject to material changes. If our assumptions are incorrect, the allowance for loan losses may not be sufficient to cover the losses we could experience, which would have an adverse effect on operating results, and may also cause us to increase the allowance for loan losses in the future. Deterioration in economic conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans, changes in accounting principles, and other factors, both within and outside our control, may require an increase in the allowance for loan losses. In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our provisions for credit losses or recognize further loan charge-offs. Any increase in our allowance for loan losses or loan charge-offs as required by regulatory authorities could have a material adverse effect on our consolidated results of operations and financial condition. If additional amounts are provided to the allowance for credit losses, our earnings could decrease.

Prepayments of loans may negatively impact our business.

Generally, our customers may prepay the principal amount of their outstanding loans at any time, frequently without financial penalty to the borrower. The speeds at which such prepayments occur, as well as the size of such prepayments, are within our customers’ discretion. Fluctuations in interest rates, in certain circumstances, may also lead to high levels of loan prepayments. 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.

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. In our market areas, we compete for loans, deposits and other financial products and services with large financial companies, local independent banks, thrift institutions, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment banking firms, and other financial intermediaries that offer similar services. Some of these competitors have substantially greater resources and lending limits than those of the Bank and may offer services that the Bank does not or cannot provide. Some of our non-bank competitors are not subject to the same extensive regulations we are, and, as a result, may be able to compete more effectively for business. 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 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. Other regulation has raised the asset thresholds at which more onerous regulatory requirements apply, which could cause certain large bank holding companies with less than $250 billion in total consolidated assets, which were previously subject to more stringent enhanced prudential standards, to become more competitive or to pursue expansion more aggressively. 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. If we are unable to attract and retain customers, we may be unable to achieve growth in the loan and core deposit portfolios, and our results of operations and financial condition may be negatively affected.

In addition, return on shareholders’ equity and other measures of profitability, which affect the market price of our common stock, depend in part on continued growth and expansion. The ability to generate internal growth is affected by the competitive factors described herein as well as by the primarily rural characteristics and related demographic features of the markets we serve. If we are unable to compete or grow effectively in our markets, it could adversely affect our business and the price of our common stock.

Market changes may adversely affect pricing of, and demand for, our services and impact results of operations.

Channels for servicing our customers are evolving rapidly, with less reliance on traditional branches, more use of online and mobile banking, and increased demand for universal bankers and other relationship managers who can service multiple product lines. We compete with larger providers that are rapidly evolving their service offerings, thereby escalating the costs of evolving the Bank’s efforts to keep pace. We have a process for evaluating the profitability of our branches and other office and operational facilities. The identification of unprofitable operations and facilities can lead to restructuring charges and introduce the risk of disruptions to revenues and customer relationships.

In addition, our success depends, in part, on our ability to adapt products and services to changing industry standards. There is increasing pressure to provide products and services at lower prices. Lower prices can reduce our net interest margin and revenues from fee-based products and services. The adoption of new or emerging technologies, such as blockchain and artificial intelligence, or further developments in current technologies may require us to make substantial expenditures to modify or adapt our existing products and services to remain competitive. These and other capital investments in our businesses may not produce expected growth in earnings anticipated at the time of the expenditure. We might not be successful in developing or introducing new products and services, adapting to changing customer preferences and spending and saving habits (which may be altered significantly and suddenly), achieving market acceptance of our products and services, or sufficiently developing and maintaining loyal customer relationships.

20


Camden National Wealth Management faces intense competition in attracting and retaining clients.

Due to strong competition, Camden National Wealth Management may not be able to attract and retain clients at current levels. Competition is strong as there are numerous well-established and successful investment management and wealth advisory firms including commercial banks and trust companies, investment advisory firms, mutual fund companies, stock brokerage firms, and other financial companies. 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.

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 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. Furthermore, a number of banks in our markets or neighboring markets are organized as mutual banks and may not be interested in a transaction with a counterparty that is not organized in the same manner, such as the Company. These and other economic factors or competition for these acquisitions could result in increased acquisition prices and a lack of attractive acquisition opportunities. As a result, we may not be able to identify or acquire acquisition candidates.

In addition, we generally must receive federal regulatory approval before we can acquire a bank or bank holding company. Our ability to pursue or complete an attractive acquisition could be negatively affected by regulatory delay or other regulatory issues. We cannot be certain when or if, or on what terms and conditions, any required regulatory approvals will be granted. If we commit certain regulatory violations, including those that result in a downgrade in certain of our bank regulatory ratings, we may not be able to pursue future acquisitions for a period of time, or governmental authorities could preclude us from doing so even if we were otherwise able.

Liquidity Risk

Our cost of funds has increased and may in the future increase further as a result of loss of deposits, a change in deposit mix or changes in interest rates.

Deposits are a low cost, stable source of funding. We compete with banks, other financial institutions and fintechs for deposits. Recent increases in short-term interest rates have resulted in and are expected to continue to result in more intense competition in deposit pricing. Competition and increasing interest rates have caused us to increase the interest rates we pay on deposits. In addition, a loss in the value of our investment or loan portfolio, perceived concerns regarding our or the Bank’s capital position or perceived concerns regarding the level of the Bank’s uninsured and uncollateralized deposits could cause rapid and significant deposit outflows. Funding costs may increase further if we lose deposits and are forced to replace them with more expensive sources of funding, if clients shift their deposits into higher cost products or if we need to continue to raise interest rates to avoid losing deposits. Higher funding costs reduce our net interest margin, net interest income and net income. If we were to experience a significant outflow of deposits, we may face significantly increased funding costs, suffer significant losses and have a significantly reduced ability to raise new capital.

As of December 31, 2023, brokered deposits made up 2% of our total deposits. We have utilized and will continue to utilize brokered deposits when it is a more cost effective source of funding compared to alternative funding sources. Should we become less than well-capitalized under the prompt corrective action framework, our use of brokered deposits may be limited, which could result in the use of more costly funding sources that would reduce our net interest margin, net interest income and net income. 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.

The Company and the Bank must maintain sufficient funds to respond to the needs of depositors and borrowers. To manage liquidity, we draw upon a number of funding sources in addition to core deposit growth and repayments and maturities of loans and investments. These sources include brokered deposits, borrowings through the Federal Home Loan Bank of Boston (“FHLBB”) and correspondent banks, proceeds from the sale of investments and loans, and liquidity resources at the holding company. Our ability to manage liquidity will be severely constrained if we are unable to maintain access to funding or if adequate financing is not available to accommodate future growth at acceptable costs, or if there are unforeseen outflows of cash or collateral, such as that seen by certain financial institutions during 2020 when corporate customers drew on revolving credit facilities at a historic pace in response to COVID-19 or by certain banks that experienced large and sudden outflows of deposits in 2023. In addition, if we are required to rely more heavily on more expensive funding sources to support future growth, our revenues may not increase proportionately to cover our costs. In this case, operating margins and profitability would be adversely affected. Turbulence in the capital and credit markets may adversely affect our liquidity and financial condition and the willingness of certain counterparties and customers to do business with us.

We could lose access to sources of liquidity if we were to experience financial or regulatory issues.

We rely on sources of liquidity provided by the Federal Reserve, such as the Federal Reserve discount window and other liquidity facilities that the Federal Reserve may establish from time to time, as well as liquidity provided by FHLBB. To access these sources of liquidity, the Federal Reserve or FHLBB may impose conditions that we and the Bank are in sound financial condition (as determined by the Federal Reserve or FHLBB) or that we and the Bank maintain minimum supervisory ratings. If we or the Bank were to experience financial or regulatory issues, it could affect our or the Bank’s ability to access liquidity facilities, including at times when we or the Bank needs additional liquidity for the operation of its business. If we or the Bank were to lose access to these liquidity sources, it could have a material adverse effect on our operations and financial condition.

In addition, recent bank failures led to significant volatility in the financial services industry and to liquidity problems at certain institutions. Although governmental support was provided in connection with recent bank failures, including the FDIC’s invoking the systemic risk exception to guarantee uninsured deposits, there can be no guarantee that the FDIC will invoke the systemic risk exception in connection with any future bank failures or that the government would otherwise take any action to provide liquidity to troubled institutions. Further, even if governmental support for financial institutions is available in the future, it may not be sufficient to address systemic risks.

We are a holding company and dependent upon our subsidiary for dividends, distributions and other payments to meet our liquidity needs.

We are a legal entity separate and distinct from our direct and indirect subsidiaries. Our revenue (on a parent-only basis) is derived primarily from interest and dividends paid to us by the Bank. Our right, and consequently the right of our shareholders, to participate in any distribution of the assets or earnings of the Bank through the payment of such dividends or otherwise is necessarily subject to the prior claims of creditors of the Bank (including depositors), except to the extent that certain claims of us in a creditor capacity may be recognized.

Holders of our common stock are entitled to receive dividends only when, and if declared by our Board of Directors. Although we have historically declared cash dividends on our common stock, we are not required to do so and our Board of Directors may reduce or eliminate our common stock dividend in the future. The FRB has authority to prohibit bank holding companies from paying dividends if such payment is deemed to be an unsafe or unsound practice. Additionally, the OCC has the authority to use its enforcement powers to prohibit a bank from paying dividends if, in its opinion, the payment of dividends would constitute an unsafe or unsound practice. 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. If we experience losses in a series of consecutive quarters, we may be required to inform and consult with the FRB supervisory staff prior to declaring or paying any dividends. In this event, there can be no assurance that the FRB will approve the payment of such dividends. Our ability to pay dividends would also be restricted under current regulatory capital rules if we do not maintain a capital conservation buffer. A reduction or elimination of dividends could adversely affect the market price of our common stock. See Item 1. “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.

We are subject to regulation and supervision by the FRB, and the Bank is subject to regulation and supervision by the OCC and the FDIC, as well as regulations issued by the CFPB. Federal laws and regulations govern numerous matters affecting us, including changes in the ownership or control of banks and bank holding companies, maintenance of adequate capital and the financial condition of a financial institution, permissible types, amounts and terms of extensions of credit and investments, permissible non-banking activities, the level of reserves against deposits and restrictions on dividend payments. The OCC possesses the power to issue cease and desist orders to prevent or remedy unsafe or unsound practices or violations of law by banks subject to their regulation, and the FRB possesses similar powers with respect to bank holding companies. These and other restrictions limit the manner in which we may conduct business and obtain financing.

Our business is highly regulated and the laws, rules, regulations, and supervisory guidance and policies applicable to us are subject to regular modification and change, and there have been significant revisions to the laws and regulations applicable to banks and bank holding companies that have been enacted or proposed in recent years. We expect that we will remain subject to extensive regulation and supervision, and that the level of regulatory scrutiny may fluctuate over time, based on numerous factors, including changes in the U.S. presidential administration or one or both houses of Congress and public sentiment regarding financial institutions (which can be influenced by scandals and other incidents that involve participants in the industry). In particular, fee revenues from non-sufficient funds, overdraft protection and other bank fees have been, and may continue to be, subject to increased scrutiny. For example, the OCC has in the past discussed options to reform national bank overdraft practices that, if implemented, could impose significant restrictions on a national bank’s ability to charge overdraft protection fees. In addition, the CFPB recently proposed a rule that would significantly alter the regulatory framework applicable to overdraft fees imposed by financial institutions with $10 billion or more in total assets, including by imposing significant limits on the amount of overdraft fees a financial institution would be permitted to charge. Although the proposed rule would not apply to the Bank, the CFPB has indicated that it may consider changes to regulations applicable to smaller institutions such as the Bank. Formal rules or guidance to implement such restrictions have not been proposed, but the implementation of any such restrictions could adversely affect our non-interest income and results of operations. In addition, the Biden Administration has called on all regulatory agencies to reduce or eliminate certain fees relating to a number of services, including banking services. At the same time, the CFPB launched an initiative to reduce the amounts and types of fees financial institutions may charge. Such changes could affect our ability or willingness to provide certain products or services, necessitate changes to our business practices or reduce our revenues. Further, recent events in the banking industry, including three high-profile bank failures in 2023, and the results of regulatory investigations into the failures could result in increased regulatory scrutiny and heightened regulatory requirements, any of which could require us to expend significant time and effort to implement appropriate compliance procedures or to incur other expenses, and could negatively affect our financial condition or results of operations.

We are unable to predict the form or nature of any future changes to statutes or regulation, including the interpretation or implementation thereof. Changes to statutes, regulations, or regulatory policies, including changes in interpretation or implementation of statutes, regulations, or policies, have and could in the future subject us to additional costs, limit the types of financial services and products we may offer, and/or increase the ability of non-banks to offer competing financial services and products, among other things. Failure to comply with laws, regulations, policies or supervisory guidance could result in enforcement and other legal actions by federal or state authorities, including criminal and civil penalties, the loss of FDIC insurance, revocation of a banking charter, other sanctions by regulatory agencies, civil money penalties, and/or reputational damage, which could have a material adverse effect on our business, financial condition, and results of operations. See Item 1., “Business—Supervision and Regulation.”
23



We may become involved in lawsuits and legal proceedings that may lead to adverse consequences.

As a participant in the financial services industry, many aspects of the Company’s business involve substantial risk of legal liability. From time to time, we are named or threatened to be named as defendants in various lawsuits, including class actions, arising from our business activities. In addition, when other financial institutions receive adverse judgments in litigation or agree to settlements, that may encourage plaintiffs and their attorneys to bring and maintain claims, including class actions, against other financial institutions, including the Company. There is no assurance that litigation with private parties will not increase in the future. Future actions against us may result in judgments, settlements, fines, penalties or other results adverse to us, which could materially adversely affect our business, financial condition or results of operations, or cause serious reputational harm to us. Although we maintain insurance, the scope of this coverage may not provide us with full, or even partial, coverage in any particular case. 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.

The financial services industry is subject to intense scrutiny from bank supervisors in the examination process and aggressive enforcement of federal and state regulations, particularly with respect to mortgage-related practices and other consumer compliance matters, and compliance with AML, BSA and OFAC regulations, and economic sanctions against certain foreign countries and nationals. Enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. In addition, some legal/regulatory frameworks provide for the imposition of fines or penalties for noncompliance even though the noncompliance was inadvertent or unintentional and even though there were systems and procedures designed to ensure compliance in place at the time. There have been a number of significant enforcement actions in recent years by regulators, state attorneys general and the Department of Justice against banks and other non-bank financial institutions with respect to AML and sanctions laws, and some have resulted in substantial penalties including criminal pleas. 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.

We are subject to numerous laws designed to meet the credit needs of low- and moderate-income communities and to protect consumers, including the Community Reinvestment Act and fair lending laws, and failure to comply with these laws could lead to a wide variety of sanctions.

The Community Reinvestment Act, the Equal Credit Opportunity Act, the Fair Housing Act and other fair lending laws and regulations impose community investment and nondiscriminatory lending requirements on financial institutions. The FRB, OCC, CFPB, the Department of Justice and other federal agencies are responsible for enforcing these laws and regulations. A successful regulatory challenge to an institution’s performance under the Community Reinvestment Act, the Equal Credit Opportunity Act, the Fair Housing Act or other fair lending laws and regulations could result in a wide variety of sanctions, including damages and civil money penalties, injunctive relief, restrictions on mergers and acquisitions, restrictions on expansion and restrictions on entering new business lines. Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation. Such actions could have a material adverse effect on our business, financial condition and results of operations.

We are required to maintain sufficient capital and adequate liquidity.

As a banking organization, our capital and liquidity are subject to regulation and supervision by banking regulators. We are required to maintain minimum levels of capital. In addition, our banking regulators could require us to maintain more and higher quality capital than previously expected. Our banking regulators could also require us to hold higher levels of short-term investments, thereby limiting our ability to invest in longer-term or less liquid assets at higher yields. The need to maintain capital and liquidity could result in our being required to take steps to increase our regulatory capital and may dilute shareholder value or limit our ability to pay dividends or otherwise return capital to our investors through stock repurchases. 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. See Item 1. “Business-Supervision and Regulation-Regulatory Capital Requirements” for additional information on capital requirements applicable to us and the Bank.

24


Operational and Business Risk

Damage to our reputation could significantly harm our business.

We are dependent on our reputation within our market area, as a trusted and responsible financial company, for all aspects of our relationships with customers, employees, vendors, third-party service providers and others with whom we conduct business or potential future business, particularly because our business is primarily concentrated in certain areas of Maine. 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. If we fail to address any of these issues in an appropriate manner, we could be subject to additional legal risks, which, in turn, could increase the size and number of litigation claims and damages asserted or subject us to enforcement actions, fines and penalties and cause us to incur related costs and expenses. Because we primarily serve individuals and businesses located in Maine, any negative impact resulting from reputational harm, including any impact on our ability to attract and retain customers and employees, likely would be greater than if our business were more geographically diverse. 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.

We seek to monitor and control our risk exposure through a risk and control framework encompassing a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems, internal controls, management review processes and other mechanisms. While we employ a broad and diversified set of risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application may not be effective and may not anticipate every economic and financial outcome in all market environments or the specifics and timing of such outcomes. Market conditions over the last several years, including those resulting from the COVID-19 pandemic, have involved unprecedented dislocations and highlight the limitations inherent in using historical data to manage risk. 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.

Our business may be adversely affected if we are unable to attract and retain qualified employees.

The Company’s employees are its most important resource, and in many areas of the financial services industry, competition for qualified personnel is intense. If the Company provides inadequate succession planning, or is unable to continue to retain and attract qualified employees, this could result in a material adverse effect on the Company’s performance, including its competitive position.

COVID-19 had significant effects on labor and employment, including heightened pressures on employers to increase compensation and provide work-from-home and other flexible working arrangements. Since the COVID-19 pandemic, employees have shifted their focus to expectations that extend beyond compensation, including better work-life balance, improved advancement opportunities and improved training, and many businesses, including us, have experienced higher rates of turnover as a result of such changes. Our ability to compete successfully for talent has been and may continue to be affected by our ability to adapt quickly to such shifts in employee focus, and there is no assurance that these developments will not cause increased turnover or impede our ability to retain and attract qualified employees.

We could be held responsible for environmental liabilities of properties we acquired through foreclosure.

In the course of business, we may acquire, through foreclosure, properties securing loans originated or purchased that are in default. Particularly in commercial real estate lending, there is a risk that material environmental violations could be discovered on these properties. In this event, we might be required to remedy these violations at the affected properties at our sole cost and expense. The cost of remedial action could substantially exceed the value of affected properties. We may not have adequate remedies against the prior owner or other responsible parties and could find it difficult or impossible to sell the affected properties. These events could have an adverse effect on our financial condition and results of operations.
25



Systems failures, interruptions or breaches of security concerning our information base, including the information we maintain relating to our customers, could have an adverse effect on our financial condition and results of operations.

In the ordinary course of business, we rely on electronic communications and information systems to conduct our business and to store sensitive data, including financial information regarding customers. We are subject to certain operational risks, including, but not limited to, data processing system failures and errors, inadequate or failed internal processes, human error, customer or employee fraud, cyberattacks, hacking, identity theft and catastrophic failures resulting from terrorist acts or natural disasters. We depend upon data processing, software, communication, and information exchange on a variety of computing platforms and networks and over the internet, and we rely on the services of a variety of vendors to meet our data processing and communication needs. Despite instituted safeguards, we cannot be certain that all of our systems are entirely free from vulnerability to attack or other technological difficulties or failures. If information security is breached or other technology difficulties or failures occur, information may be lost or misappropriated, services and operations may be interrupted and we could be exposed to claims from customers. A cybersecurity breach or cyberattack could persist for an extended period before being detected and could result in theft of sensitive data or disruption of our transaction processing systems. While we maintain a system of internal controls and procedures, any of these results could have a material adverse effect on our reputation, business, financial condition, results of operations or liquidity.

We regularly assess and test our security systems and disaster preparedness, including back-up systems, but the risks are substantially escalating. As a result, cybersecurity and the continued enhancement of our controls and processes to protect our systems, data and networks from attacks, unauthorized access or significant damage remain a priority. We have expended substantial resources to protect our systems, and may be required to expend significant additional resources to modify our protective measures or to investigate and remediate vulnerabilities or other exposures in our computer systems and networks, and we may be subject to litigation and financial losses that are either not insured against or not fully covered through insurance maintained by us. Any such losses, which may be difficult to detect, could adversely affect our financial condition or results of operations. In addition, the occurrence of such a loss could expose the Company and the Bank to reputational risk, the loss of customers and additional regulatory scrutiny.

We are subject to a variety of cybersecurity risks that, if realized, could adversely affect our business, financial condition and results of operations.

Information security risks for financial institutions such as the Company and the Bank are significant due to the use of online, telephone and mobile banking channels by customers and the increased sophistication and activities of organized crime, hackers, terrorists and other external parties. Third parties with whom we or our customers do business also present operational and information security risks to us. We see an increasing trend of cyberattacks targeting providers in the financial services industry, as well as increased security breaches or failures of their own systems. Our operations rely on the secure processing, transmission and storage of confidential information in our computer systems and networks. Our businesses rely on our digital technologies, computer and email systems, software, and networks to conduct their operations. As our reliance on technology systems increases, the potential risks of technology-related interruptions in our operations or the occurrence of cyber incidents also increases. Our technologies, systems, networks and our customers’ devices are periodically the target of cyberattacks, and may be the target of future cyberattacks, including through the introduction of computer viruses, and/or malicious code, or by means of phishing attacks, social engineering or other information security breaches. Malicious actors may also attempt to fraudulently induce employees, customers or other users of our systems to disclose sensitive information, including passwords and other identifying information, in order to gain access to data or our systems.

In recent years, there have been several well-publicized attacks on various companies, including in the financial services industry, and personal, proprietary, and public e-mail systems in which the perpetrators gained unauthorized access to confidential information and customer data, often through the introduction of computer viruses or malware, cyberattacks, phishing, social engineering or other means. Even if not directed at the Company or the Bank specifically, attacks on other entities with whom we do business or on whom we otherwise rely or attacks on financial or other institutions important to the overall functioning of the financial system could adversely affect, directly or indirectly, aspects of our business.

Information security risks continue to increase, in part because of the proliferation of new technologies, ongoing work-from-home arrangements, the use of the Internet and telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of organized crime, hackers, terrorists, activists, and other external parties, some of which may be linked to terrorist organizations or hostile foreign governments. As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our systems or to investigate and remediate vulnerabilities. System enhancements and updates may also create risks associated with implementing and integrating new
26


systems. Due to the complexity and interconnectedness of information technology systems, the process of enhancing our systems can itself create a risk of systems disruptions and security issues.

Although we believe we have appropriate information security controls and procedures, we may not be able to anticipate, detect, or implement effective preventative measures against all potential threats, particularly because the techniques used by cyber criminals change frequently, often are not recognized until launched and can be initiated from a variety of sources. In addition, a cybersecurity breach or cyberattack could persist for an extended period before being detected, which could exacerbate the harmful effects of a successful cyberattack. If one or more of the events described above occurs, this could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our customers’ confidential, proprietary and other information, the theft of customer assets through fraudulent transactions or disruption of our or our customers’ or other third parties’ business operations, which could result in legal or regulatory action, significant losses, increased compliance costs or reputational damage, any of which could adversely affect our business, financial condition or results of operations. Because the investigation of any information security breach is inherently unpredictable and would require substantial time to complete, the Company may not be able to quickly remediate the consequences of any breach, which may increase the costs, and enhance the negative consequences associated with a breach. In addition, to the extent the Company’s insurance covers aspects of any breach, such insurance may not be sufficient to cover all of the Company’s losses.

As cybersecurity and data privacy risks for banking organizations and other financial institutions have significantly increased in recent years, cybersecurity and data privacy issues have become the subject of increasing legislative and regulatory focus. We could be adversely affected if new legislation or regulations are adopted or if existing legislation or regulations are modified such that we are required to alter our systems or are required to change our business practices or privacy policies. If cybersecurity, data privacy, data protection, data transfer or data retention laws are implemented, interpreted or applied in a manner inconsistent with our current practices, we may be subject to fines, litigation or regulatory enforcement actions or ordered to change our business practices, policies or systems in a manner that adversely affects our results of operations.

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 invest significant resources in information technology system enhancements in order to provide functionality and security at an appropriate level. The effective use of technology increases efficiency and enables financial institutions to better serve customers and reduce costs. Our future success will depend, in part, upon our ability to address the needs of our customers by using technology to provide products and services that will satisfy customer demands for convenience, as well as to create additional efficiencies in our operations. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. Failure to successfully implement and integrate future system enhancements could adversely impact the ability to provide timely and accurate financial information in compliance with legal and regulatory requirements, which could result in sanctions from regulatory authorities. Such sanctions could include fines and suspension of trading in our stock, among others. In addition, future system enhancements could have higher than expected costs and/or result in operating inefficiencies, which could increase the costs associated with the implementation as well as ongoing operations.

Failure to properly utilize system enhancements that are implemented in the future could result in impairment charges that adversely impact our financial condition and results of operations and could result in significant costs to remediate or replace the defective components. In addition, we may incur significant training, licensing, maintenance, consulting and amortization expenses during and after systems implementations, and any such costs may continue for an extended period of time.

We rely on other companies to provide key components of our business infrastructure.

Third party vendors provide key components of our business infrastructure such as internet connections, network access and core application processing. While we have selected these third party vendors carefully, we do not control their actions. Any problems caused by these third parties, including as a result of their not providing us their services for any reason or their performing their services poorly, could adversely affect our ability to deliver products and services to our customers or otherwise conduct our business efficiently and effectively. Replacing these third party vendors could also entail significant delay and expense.

Third parties with which we do business could also be sources of information security risk to us, including from breakdowns, systems failures or cyber threats through their systems to our systems. Any of these occurrences could impact our
27


ability to operate our business, or cause financial loss, potential liability to clients, reputational damage or regulatory consequences, any of which could have a material adverse effect on our financial condition or results of operations.

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. Climate change presents both immediate and long-term risks to us and our customers and these risks are expected to increase over time. 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.

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. A significant natural disaster, such as a tornado, hurricane, earthquake, fire or flood, could have a material adverse impact on our ability to conduct business (including as a result of damage to our own facilities or systems or to the facilities or systems of third-party vendors on which we rely), and our insurance coverage may be insufficient to compensate for losses that may occur. Because we primarily serve individuals and businesses located in Maine, a natural disaster likely would have a greater impact on our business, operations and financial condition than if our business were more geographically diverse.

Both the frequency and severity of some kinds of natural disasters, including wildfires, flooding, tornadoes and hurricanes, have increased, and we expect will continue to increase, as a result of climate change. In addition, long-term shifts in the climate, including altered distribution and intensity of rainfall, rising sea levels and a rising heat index, negatively affect our ability to predict the effects of natural disasters accurately. Climate change may result in reduced availability of insurance for our borrowers, including insurance that protects property pledged as collateral, or disrupt their operations, which could increase our credit risk by diminishing borrowers’ repayment capacity or collateral values.

Efforts to transition to a low-carbon economy could result in new and/or more stringent regulatory requirements. Federal and state banking regulators and supervisory authorities, investors and other stakeholders have increasingly viewed financial institutions as important in helping to address the risks related to climate change both directly and with respect to their customers, which may result in financial institutions coming under increased pressure regarding the disclosure and management of their climate risks and related lending and investment activities. Ongoing legislative or regulatory uncertainties and changes regarding climate risk management and practices may result in higher regulatory, compliance, credit and reputational risks and costs, and failure to comply with any new laws or regulations could result in legal or regulatory sanctions and harm to our reputation. In addition, changes to consumer and business preferences or in the attitudes of regulators, shareholders and employees regarding climate change, may affect the activities in which we engage and the products that we offer, and may require us to adjust our lending portfolios and business strategies. Risks associated with climate change are continuing to evolve rapidly, making it difficult to assess the effects of climate change on our business, and we expect that climate change-related risks will continue to evolve and increase over time.

In addition, environmental matters have been the subject of increased focus by regulators, particularly with respect to the accuracy of statements made by issuers regarding their ESG practices, initiatives and investment strategies. The SEC has established an enforcement task force to examine ESG practices and disclosures by public companies and identify inaccurate or misleading statements, often referred to as “greenwashing.” There have been enforcement actions relating to ESG disclosures and policies and procedures failures, and we expect that there will be a greater level of enforcement activity in the future. A perception or accusation of greenwashing could damage our reputation, result in litigation or enforcement actions, or adversely affect our ability to raise capital and attract and retain customers.

Acts of terrorism, pandemics and other external events could harm our business.

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. Any of these events could affect us directly (for example, by interrupting our systems, causing significant damage to our facilities or otherwise preventing us from conducting our ordinary business) or indirectly as a result of effects on our borrowers and other customers
28


or third-party vendors (for example, by damaging property pledged as collateral for our loans). The Company has suffered, and could in the future suffer, adverse consequences to the extent that pandemics, such as the COVID-19 pandemic, terrorist activities, civil unrest, international hostilities, including Russia’s invasion of Ukraine and conflict in the Middle East, or other external events affect the financial markets or the economy in general or in any region in which the Company, or third parties on which the Company relies, operate.

For example, the COVID-19 pandemic created economic and financial disruptions that have adversely affected, and may in the future adversely affect, the Company’s business, financial condition, capital and results of operations. During the COVID-19 pandemic, the Company experienced significant disruptions to its normal operations, including the temporary closing of branches and a sudden increase in the volume of work-from-home arrangements. In addition, the Company was indirectly negatively affected by the pandemic’s effects on the Company’s borrowers and other customers, and by its effects on global financial markets. The COVID-19 pandemic caused, and any future pandemics, terrorist activities, civil unrest or international hostilities, may cause, an increase in delinquencies, bankruptcies or defaults that could result in the Company experiencing higher levels of nonperforming assets, net charge-offs and provisions for credit losses.

Depending on the impact of current international hostilities on general economic and market conditions, there is a risk that adverse conditions could occur or worsen, including supply chain disruptions; higher inflation; decreased demand for the Company’s products and services or those of its borrowers, which could increase credit risk; challenges related to maintaining sufficient qualified personnel due to labor shortages, talent attrition, employee illness, or willingness to return to work; and disruptions to business operations at the Company and at counterparties, vendors and other service providers.

In addition, the escalation or continuation of international hostilities, including the war between Russia and Ukraine and conflict in the Middle East, could result in, among other things, further increased risk of cyberattacks, supply chain disruptions, higher inflation, lower consumer demand and increased volatility in commodity, currency and other financial markets.

The Company’s ability to mitigate the adverse consequences of these occurrences is in part dependent on the quality of the Company’s resiliency planning, and the Company’s ability, if any, to anticipate the nature of any such event that occurs. The adverse effects of pandemics, terrorist activities, civil unrest, international hostilities or other external events also could be increased to the extent that there is a lack of preparedness on the part of national or regional emergency responders or on the part of other organizations and businesses that the Company transacts with, particularly those that it depends upon, but has no control over.

Accounting and Tax Risk

Our financial statements are based in part on assumptions and estimates, which, if wrong, could cause unexpected losses in the future.

Pursuant to U.S. generally accepted accounting principles, we are required to use certain assumptions and estimates in preparing our financial statements, including in determining credit loss reserves, reserves related to litigation and the fair value of certain assets and liabilities, among other items. If assumptions or estimates underlying our financial statements are incorrect, we may experience material losses. For additional information, see Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies.”

We may be required to write down goodwill and other identifiable intangible assets.

When we acquire a business, a portion of the purchase price of the acquisition may be allocated to goodwill and other identifiable intangible assets. The excess of the purchase price over the fair value of the net identifiable tangible and intangible assets acquired determines the amount of the purchase price that is allocated to goodwill. At December 31, 2023, our goodwill and other identifiable intangible assets totaled $95.7 million. Under current accounting standards, if we determine goodwill or intangible assets are impaired, we would be required to write down the value of these assets to fair value. We conduct an annual review, or more frequently if events or circumstances warrant such additional review, to determine whether goodwill is impaired. We recently completed our goodwill impairment analysis as of November 30, 2023 and concluded goodwill was not impaired. We conduct a review of our other intangible assets for impairment should events or circumstances warrant such review. There were no triggers for such review for impairment for other intangible assets for the year ended December 31, 2023. We may be required to take an impairment charge in the future. Any impairment charge would have a negative effect on our shareholders’ equity and financial results and may cause a decline in our stock price.

29


Changes in accounting standards can be difficult to predict and can materially impact how we record and report our financial condition and results of operations.

Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. From time to time, the FASB and the SEC change the financial accounting and reporting standards that govern the preparation of our financial statements. These changes can be hard to anticipate and implement and can materially impact how we record and report our financial condition and results of operations. For example, the introduction of Accounting Standard Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), as updated, commonly referred to as “CECL,” substantially changed how we calculate our allowance for credit losses. Other future changes in accounting standards could materially impact how we report our financial condition, and we cannot predict whether such standards will be adopted or their resultant impact.

Changes in tax laws and regulations and differences in interpretation of tax laws and regulations may adversely impact our financial statements.

Local, state or federal tax authorities may interpret tax laws and regulations differently than we do and challenge tax positions that we have taken on tax returns. This may result in differences in the treatment of revenues, deductions, credits and/or differences in the timing of these items. The differences in treatment may result in payment of additional taxes, interest or penalties that could have a material adverse effect on our results. In addition, there may be future changes to tax laws, administrative rulings or court decisions that could adversely affect our financial condition, including an increased provision for income taxes and/or reduced net income. We are not able to predict the timing or impact of any changes in local, state or federal tax laws.

Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity
Cybersecurity Risk Management and Strategy

The Company has developed and implemented a comprehensive cybersecurity risk management program that is intended to protect the secure processing, transmission and storage of confidential information in its computer systems and networks. The Company’s cybersecurity risk management program, a component of the Company’s Enterprise Risk Management (“ERM”) Program, is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, regulatory guidance and other industry standards. The Company’s process for identifying, assessing, managing and prioritizing cybersecurity risks throughout the Company includes:
A third party risk assessment program for the Company’s third party vendors that access the Company’s data (each, a “Vendor”) to ensure that all Vendors meet the Company’s cybersecurity requirements, including, periodic risk assessments of Vendors, monitoring Vendor compliance with the Company’s cybersecurity requirements, and a requirement that all contracts with Vendors include provisions requiring the Vendor to notify the Company of any cyber incident, and/or to maintain minimum levels of cybersecurity insurance;
A security awareness program that includes training employees on best practices for securing the Company’s data, as well as regular social engineering testing to keep employees informed of cybersecurity threats and to train them to look for malicious emails and other potential cybersecurity threats;
A dedicated information security team that monitors threats and vulnerabilities that arise, and regularly performs threat intelligence and vulnerability management;
The Company’s engagement of a third party to conduct periodic independent testing of the Company’s cybersecurity defenses to confirm that the defenses are effective;
A Managed Detection and Response (“MDR”) service that continuously monitors the Company’s systems and alerts the Company’s information security team of any detected anomalies or suspicious activity and stops any event that is deemed dangerous to the Company’s systems or networks;
An Incident Response Plan (“IRP”) and Business Continuity Plan (“BCP”) which outline steps to be taken during a cyber incident and to recover systems and continue business operations following a cyber incident; and
30


A Cybersecurity Incident Response Team (“CSIRT”) that tracks cyber incidents, including those that affect third parties that are handling the Company’s data.

Cybersecurity Threats

During the fiscal year ended December 31, 2023, the Company did not identify any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected, or that are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition other than the risks described in Item 1A. “Risk Factors”.

Cybersecurity Governance

Board of Directors’ Oversight. The Company’s Board of Directors oversees the Company’s cybersecurity program, including the oversight of risks related to cybersecurity through various committees that are responsible for monitoring and testing the Company's information security. The Board of Directors conducts an annual review of the Company’s cybersecurity- related policies. 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. In 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. While the Board of Directors and its Audit and Technology Committees oversee management’s processes related to cybersecurity risks, management is responsible for identifying, monitoring and mitigating the material cybersecurity risks that face the Company. The Company’s CRO is directly responsible for the overall cybersecurity risk management program which is a part of the Company's ERM Program. The CRO and the DIS oversee the information security department’s implementation and maintenance of the cybersecurity security risk management program, including oversight of Vendors and regular reporting to the Board of Directors and its Audit and Technology Committees on the effectiveness of the cybersecurity risk management program. The 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. 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 United States Air Force, specializing in information technology, cybersecurity, risk mitigation, and encrypted communications.

The Company’s DIS joined the Company in 2023 and has over 20 years of experience in information technology and cybersecurity. The DIS has held senior management positions in information security for the past ten years. The DIS holds several industry certifications including Certified Information Systems Security Professional (“CISSP”), Certified Information Systems Auditor (“CISA”), Certified in Risk and Management Systems Controls (“CRISC”) and Certified Data Privacy Solutions Engineer (“CDPSE”).

Item 2. Properties

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

Item 3. Legal Proceedings

The Company is currently involved, and from time to time in the future may become involved, in various legal claims that
31


arise in the normal course of the Company’s business. The Company may also in the future become involved in other regulatory, judicial and/or arbitration proceedings relating to matters that arise in connection with the conduct of the Company’s business. Because of the difficulty in predicting the outcome of these matters, particularly when they are in their early stages, the Company cannot predict what the final outcome of each legal proceeding may be, or what the eventual loss, fine or penalty related to each proceeding may be, if any. Based on currently available information, in our opinion the results of legal proceedings that are currently pending are not expected to have a material effect on our consolidated financial statements.

Reserves are established for legal claims only when losses associated with the claims are judged to be probable, and the loss can be reasonably estimated. In many lawsuits and arbitrations, it is not possible to determine whether a liability has been incurred or to estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case a reserve will not be recognized until that time. As of December 31, 2023 and 2022, the Company did not maintain material reserves against legal claims.

Item 4. Mine Safety Disclosures

Not applicable.
32


PART II

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. The high and low closing sales prices (as quoted by NASDAQ for 2023 and 2022) and cash dividends declared per share of the Company’s common stock, by calendar quarter for the past two years, were as follows:
20232022
  Market PriceDividends Declared per ShareMarket PriceDividends Declared per Share
  HighLowHighLow
First Quarter$42.35 $35.43 $0.42 $51.63 $46.72 $0.40 
Second Quarter35.73 28.98 0.42 47.94 41.93 0.40 
Third Quarter36.75 28.20 0.42 49.01 42.60 0.40 
Fourth Quarter38.89 26.82 0.42 44.07 40.38 0.42 

As of February 28, 2024, there were 14,566,850 shares of the Company’s common stock outstanding, and there were approximately 1,000 holders of record of the Company’s common stock. Such number of shareholders does not reflect the number of persons or entities holding stock in nominee name through banks, brokerage firms and other nominees.

Although the Company has historically paid quarterly dividends on its common stock, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will be paid in the future. For further information on dividend restrictions, refer to Item 1. “Business—Supervision and Regulation” and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources.”

The following graph illustrates the annual percentage change in the cumulative total shareholder return of the Company’s common stock for the period December 31, 2018 through December 31, 2023. For purposes of comparison, the graph illustrates comparable shareholder returns of the S&P U.S. SmallCAP Banks Index and the Russell 2000 Stock Index. The graph assumes a $100 investment on December 31, 2018 in the Company’s common stock and each of the foregoing indices and assumes the reinvestment of all dividends. The comparisons in the graph are based on historical data and are not indicative of, nor intended to forecast, future performance of the Company’s common stock.


33



Stock Performance Graph

Screen Capture.jpg
In January 2023, the Board of Directors approved a common stock repurchase program, authorizing management to repurchase up to 750,000 shares, or approximately 5%, of the Company's outstanding common stock, that had an expiration date of the earlier of (i) reaching the authorized share repurchase amount, (ii) vote by the Board of Directors to terminate the plan, or (iii) one year. As of December 31, 2023, the Company repurchased 65,692 shares at an average price of $30.44, none of which were repurchased during the fourth quarter of 2023. This repurchase program expired after one year in January 2024.
Issuer's Purchases of Equity Securities
PeriodTotal
number of
shares (or units)
purchased
Average
price paid
per share (or unit)
Total number of
shares (or units) purchased
as part of publicly
announced plans or programs
Maximum number
(or appropriate dollar value) of shares (or
units) that may yet be
purchased under the
plans or programs
October 1-31, 2023
— $— — 684,308 
November 1-30, 2023
— — — 684,308 
December 1-31, 2023
— — — 684,308 
Total— $— — 684,308 

In January 2024, the Board of Directors authorized a common stock repurchase program authorizing management to repurchase up to 750,000 shares, or approximately 5%, of the Company's outstanding common stock. This program replaces the 2023 repurchase program and will terminate upon the earlier of (i) reaching the authorized share repurchase amount, (ii) vote by the Board of Directors to terminate the plan, or (iii) January 5, 2024.


34


Item 6. [Reserved]

Not applicable.

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The discussion below focuses on the factors affecting our consolidated results of operations and financial condition at and for the year ended December 31, 2023, and where appropriate, factors that may affect our future financial performance, unless stated otherwise. This discussion should be read in conjunction with the consolidated financial statements, notes to the consolidated financial statements and selected consolidated financial data.

Refer to the Company’s 2022 annual report on Form 10-K filed with the SEC on March 10, 2023 for the discussion of results of operations and financial condition at and for the year ended December 31, 2022.


35


ACRONYMS AND ABBREVIATIONS

The acronyms and abbreviations identified below are used throughout Item 7. “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:
AcronymDescriptionAcronymDescription
AFS:
Available-for-sale
GAAP:
Generally accepted accounting principles in the United States
ALCO:
Asset/Liability Committee
GDP:Gross domestic product
ACL:Allowance for credit losses
HTM:
Held-to-maturity
AOCI:
Accumulated other comprehensive income (loss)
LGD:Loss given default
ASC:
Accounting Standards Codification
LIBOR:
London Interbank Offered Rate
ASU:
Accounting Standards Update
LTIP:
Long-Term Performance Share Plan
Bank:
Camden National Bank, a wholly-owned subsidiary of Camden National Corporation
Management ALCO:
Management Asset/Liability Committee
BOLI:
Bank-owned life insurance
MBS:
Mortgage-backed security
Board ALCO:
Board of Directors' Asset/Liability Committee
MSPP:
Management Stock Purchase Plan
BTFP:
Bank Term Funding Program, introduced by the Federal Reserve Bank in March 2023
N/A:
Not applicable
CCTA:
Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation
N.M.:
Not meaningful
CD:
Certificate of deposits
OCC:
Office of the Comptroller of the Currency
CECL:Current Expected Credit Losses
OCI:
Other comprehensive income (loss)
Company:
Camden National Corporation
OREO:
Other real estate owned
CMO:
Collateralized mortgage obligation
PD:Probability of default
CUSIP:Committee on Uniform Securities Identification ProceduresROU:Right-of-use
DCRP:
Defined Contribution Retirement Plan
SBA:U.S. Small Business Administration
EPS:
Earnings per share
SBA PPP:U.S. Small Business Administration Paycheck Protection Program
FASB:
Financial Accounting Standards Board
SERP:
Supplemental executive retirement plans
FDIC:
Federal Deposit Insurance Corporation
SOFR:Secured Overnight Financing Rate
FHLBB:
Federal Home Loan Bank of Boston
TDR:
Troubled-debt restructured loan
FHLMC:
Federal Home Loan Mortgage Corporation
UBCT:
Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation
FRB:
Federal Reserve System Board of Governors
U.S.:
United States of America
FRBB:Federal Reserve Bank of Boston


36





NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP

In addition to evaluating the Company’s results of operations in accordance with GAAP, management supplements this evaluation with an analysis of certain non-GAAP financial measures, such as adjusted net income; adjusted diluted earnings per share; adjusted return on average assets; adjusted return on average equity; pre-tax, pre-provision income and adjusted pre-tax, pre-provision; income; the efficiency ratio; return on average tangible equity and adjusted return on average tangible equity; tangible book value per share and tangible common equity ratio; net interest income (fully-taxable equivalent); and core deposits and average core deposits. We utilize these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. We also believe these non-GAAP financial measures help investors better understand the Company’s operating performance and trends and allow for better performance comparisons to other banks. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company’s underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions.

Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity. Adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on average equity are each supplemental measures that exclude certain transactions as outlined and calculated in the table below. Each item reconciles to reported net income, diluted earnings per share, return on average assets and return on average equity. The Company believes these adjusted financial metrics assist users of its financial statements with their financial analysis period-over-period as they are adjusted for certain non-recurring items.
For the Year Ended
December 31,
(In thousands, except number of shares, per share data and ratios)
202320222021
Adjusted Net Income:
Net income, as presented$43,383 $61,439 $69,014 
Adjustment for net loss on sale of securities
10,310 912 — 
Adjustment for Signature Bank bond write-off
1,838 — — 
Tax impact of above adjustments(1)
(2,551)(192)— 
Adjusted net income$52,980 $62,159 $69,014 
Adjusted Diluted Earnings per Share:
Diluted earnings per share, as presented$2.97 $4.17 $4.60 
Adjustment for net loss on sale of securities
0.71 0.06 — 
Adjustment for Signature Bank bond write-off
0.13 — — 
Tax impact of above adjustments(1)
(0.18)(0.01)— 
Adjusted diluted earnings per share$3.63 $4.22 $4.60 
Adjusted Return on Average Assets:
Return on average assets, as presented0.76 %1.12 %1.31 %
Adjustment for net loss on sale of securities
0.18 %0.02 %— 
Adjustment for Signature Bank bond write-off
0.03 %— — 
Tax impact of above adjustments(1)
(0.04)%— — 
Adjusted return on average assets0.93 %1.14 %1.31 %
Adjusted Return on Average Equity:
Return on average equity, as presented
9.30 %13.15 %12.72 %
Adjustment for net loss on sale of securities
2.21 %0.20 %— 
Adjustment for Signature Bank bond write-off
0.39 %— — 
Tax impact of above adjustments(1)
(0.55)%(0.04)%— 
Adjusted return on average equity
11.35 %13.31 %12.72 %
(1)     Assumed a 21% income tax rate.



37





Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income. Pre-tax, pre-provision income and adjusted pre-tax, pre-provision income are each a supplemental measure of operating earnings and performance. Pre-tax, pre-provision income is calculated as net income before adjustment for provision (credit) for credit losses and adjustment for income tax expense, and adjusted pre-tax, pre-provision income is calculated as net income before adjustment for net loss on sale of securities and adjustment for SBA PPP loan income. These supplemental measures became more widely used by financial institutions as a measure of financial performance for comparability across financial institutions due to the provision for credit losses, as well as the SBA PPP loan income that was received on SBA loans originated, in response to the COVID-19 pandemic that were not a recurring and sustainable source of revenues for financial institutions.
For the Year Ended
December 31,
(In thousands)202320222021
Net income, as presented$43,383 $61,439 $69,014 
Adjustment for income tax expense
10,453 15,608 17,627 
Adjustment for provision (credit) for credit losses
2,100 4,500 (3,190)
Pre-tax, pre-provision income
$55,936 $81,547 $83,451 
Adjustment for net loss on sale of securities
10,310 912 — 
Adjustment for SBA PPP loan income
(14)(1,254)(8,170)
Adjusted pre-tax, pre-provision income
$66,232 $81,205 $75,281 

Efficiency Ratio. The efficiency ratio represents an approximate measure of the cost required for the Company to generate a dollar of revenue. This is a common measure used by financial institutions and is a key ratio for evaluating Company performance. The efficiency ratio is calculated as the ratio of (i) total non-interest expense, adjusted for certain operating expenses, as necessary to (ii) net interest income on a tax equivalent basis plus total non-interest income, adjusted for certain other income items, as necessary.
For the Year Ended
December 31,
(In thousands)202320222021
Non-interest expense, as presented$107,361 $106,849 $103,720 
Adjustment for prepayment fees on borrowings
— — (514)
Adjusted non-interest expense$107,361 $106,849 $103,206 
Net interest income, as presented$132,263 $147,694 $137,436 
Adjustment for the effect of tax-exempt income(1)
901 937 988 
Non-interest income, as presented31,034 40,702 49,735 
Adjustment for net loss on sale of securities
10,310 912 — 
Adjusted net interest income plus non-interest income$174,508 $190,245 $188,159 
Ratio of non-interest expense to total revenues(2)
65.75 %56.72 %55.41 %
Non-GAAP efficiency ratio
61.52 %56.16 %54.85 %
(1)    Reported on a tax-equivalent basis using a 21% income tax rate.
(2)    Revenue is the sum of net interest income and non-interest income.

38





Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity. Return on average tangible equity is the ratio of (i) net income, adjusted for tax effected amortization of core deposit intangible assets and other adjustments, as necessary, to (ii) average shareholders' equity, adjusted for average goodwill and core deposit intangible assets. This adjusted financial ratio reflects a shareholders' return on tangible capital deployed in our business and is a common performance measure within the financial services industry. Adjusted return on average tangible equity is calculated the same as return on average tangible equity but uses adjusted net income which excludes certain transactions as shown in the table above. The Company believes this adjusted metric assists users of its financial statements with their period-over-period financial analysis as it is adjusted for certain non-recurring items.
For the Year Ended
December 31,
(In thousands)202320222021
Return on Average Tangible Equity:
Net income, as presented$43,383 $61,439 $69,014 
Adjustment for amortization of core deposit intangible assets
592 625 655 
Tax impact of above adjustment(1)
(124)(131)(138)
Net income, adjusted for amortization of core deposit intangible assets$43,851 $61,933 $69,531 
Average equity, as presented$466,717 $467,245 $542,725 
Adjustment for average goodwill and core deposit intangible assets
(95,962)(96,572)(97,211)
Average tangible equity$370,755 $370,673 $445,514 
Return on average equity9.30 %13.15 %12.72 %
Return on average tangible equity11.83 %16.71 %15.61 %
Adjusted Return on Average Tangible Equity:
Adjusted net income (see “Adjusted Net Income” table above)
$52,980 $62,159 $69,014 
Adjustment for amortization of core deposit intangible assets
592 625 655 
Tax impact of above adjustment(1)
(124)(131)(138)
Adjusted net income, adjusted for amortization of core deposit intangible assets
$53,448 $62,653 $69,531 
Adjusted return on average tangible equity
14.42 %16.90 %15.61 %
(1)     Assumed a 21% income tax rate.

39





Tangible Book Value per Share and Tangible Common Equity Ratio.  Tangible book value per share is the ratio of (i) shareholders’ equity less goodwill, and core deposit intangible assets to (ii) total common shares outstanding at period end. Tangible book value per share is a common measure within our industry when assessing the value of a company as it removes goodwill and other intangible assets generated within purchase accounting upon a business combination.

Tangible common equity is the ratio of (i) shareholders’ equity less goodwill and core deposit intangible assets to (ii) total assets less goodwill and core deposit intangible assets. This ratio is a measure used within our industry to assess whether or not a company is highly leveraged.
(In thousands, except number of shares and per share data)December 31,
20232022
Tangible Book Value Per Share:
Shareholders' equity, as presented$495,064$451,278
Adjustment for goodwill and core deposit intangible assets
(95,668)(96,260)
Tangible shareholders' equity$399,396$355,018
Shares outstanding at period end14,565,95214,567,325
Book value per share$33.99 $30.98 
Tangible book value per share$27.42 $24.37 
Tangible Common Equity Ratio:
Total assets$5,714,506$5,671,850
Adjustment for goodwill and core deposit intangible assets
(95,668)(96,260)
Tangible assets$5,618,838$5,575,590
Common equity ratio8.66 %7.96 %
Tangible common equity ratio7.11 %6.37 %

Net Interest Income (Fully-Taxable Equivalent). Net interest income on a fully-taxable equivalent basis is net interest income plus the taxes that would have been paid had tax-exempt securities been taxable. This number attempts to enhance the comparability of the performance of assets that have different tax liabilities. This is a common measure with the financial services industry and is used within the calculation of net interest margin on a fully-taxable equivalent basis.
For the Year Ended
December 31,
(In thousands)202320222021
Net interest income, as presented$132,263 $147,694 $137,436 
Adjustment for the effect of tax-exempt income(1)
901 937 987 
Net interest income, tax equivalent$133,164 $148,631 $138,423 
(1)     Reported on a tax-equivalent basis using a 21% income tax rate.

Core Deposits. Core deposits are used by management to measure the portion of the Company's total deposits that management believes to be more stable and lower cost. The Company calculates core deposits as total deposits less CDs and brokered deposits. Management believes core deposits is a useful measure to assess the Company's deposit base, including its potential volatility.
December 31,
(In thousands)
2023
2022
Total deposits, as presented$4,597,360 $4,826,929 
Adjustment for certificates of deposit
(609,503)(300,451)
Adjustment for brokered deposits
(101,919)(181,253)
Core deposits$3,885,938 $4,345,225 

40





Average Core Deposits. Average core deposits are used by management to measure the portion of the Company's total deposits that management believes to be more stable and at a lower interest rate cost. The Company calculates average core deposits as total deposits less CDs. Management believes core deposits is a useful measure to assess the Company's deposit base, including its potential volatility.
For the Year Ended
December 31,
(In thousands)202320222021
Total average deposits, as presented(1)
$4,481,322 $4,472,063 $4,096,411 
Adjustment for average certificates of deposit
(453,723)(295,586)(333,352)
Average core deposits$4,027,599 $4,176,477 $3,763,059 
(1)     Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.

CRITICAL ACCOUNTING POLICIES

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. In preparing the Company’s consolidated financial statements, management is required to make significant estimates and assumptions that affect assets, liabilities, revenues, and expenses reported. Actual results could materially differ from our current estimates, as a result of changing conditions and future events. Several estimates are particularly critical and are susceptible to significant near-term change, including (i) the ACL, including the ACL on loans, off-balance sheet credit exposures and investments; (ii) accounting for acquisitions and the subsequent review of goodwill and intangible assets generated in an acquisition for impairment; (iii) income taxes; and (iv) accounting for defined benefit and postretirement plans.

Refer to Note 1 of the consolidated financial statements for additional details of the Company's accounting policies, including new accounting standards recently adopted.

Allowance for Credit Losses (“ACL”).  The ACL is calculated using the current expected credit loss accounting model, often referred to as “CECL.” Under CECL, the ACL at each reporting period serves as our best estimate of projected credit losses over the contractual life of certain assets, adjusted for expected prepayments, given an expectation of economic conditions and forecasts as of the valuation date.

The recorded ACL on loans and HTM debt investments is determined based on the amortized cost basis of the assets and may be determined at various levels, including homogeneous loan pools, individual credits with unique risk factors, and CUSIP. We use a discounted cash flow approach to calculate the ACL for each loan segment. Within the discounted cash flow model, a probability of default (“PD”) and loss given default (“LGD”) assumption is applied to calculate the expected loss for each loan segment. PD is the probability the asset will default within a given timeframe and LGD is the percentage of the assets not expected to be collected due to default. PD and LGD data may be derived using (1) internal historical default and loss experience, as well as from (2) external data if there are not statistically meaningful loss events or our own internal loss data does not span a full economic cycle for a given loan segment.

CECL may create more volatility in our ACL, particularly our ACL on loans and ACL on off-balance sheet credit exposures. Under CECL, our ACL may increase or decrease period-to-period based on many factors, including, but not limited to: (i) macroeconomic forecasts and conditions; (ii) a change in the forecast period; (iii) a change in the reversion speed; (iv) a change in the prepayment speed assumption; (v) an increase or decrease in loan balances, including changes to our loan portfolio mix; (vi) credit quality of the loan portfolio; and (vii) various qualitative factors outlined in ASU 2016-13.

Under CECL, the ACL on AFS securities is reviewed to determine the extent the fair value of a security designated as AFS is less than its amortized cost and we either (i) intend to sell the security or (ii) it is more-likely-than-not we will be required to sell the security before recovery of its amortized cost basis, then the investment is permanently impaired and the amortized cost basis is written down to fair value and a corresponding impairment charge is recorded within the consolidated statements of income. If neither of the above is true, but the fair value of the investment is below its amortized cost basis at the reporting date, then an allowance is established on the AFS investment for the portion of the impairment that is due to credit reasons (e.g. credit rating downgrades, past due receivables, and/or other macro- or micro-adverse trends). The allowance established on an AFS investment due to credit losses is limited to the amount the fair value of the investment is below its amortized cost basis as of the reporting date. If the fair value of the investment is below its amortized cost basis for non-credit-related reasons (e.g. interest rate environment), then the impairment continues to be recognized within shareholders' equity through AOCI.
41






ACL on Loans. We consider the ACL on loans to be a critical accounting policy given the uncertainty in evaluating the allowance required to cover management’s estimate of all expected credit losses over the expected contractual life of the loans in its portfolio. Determining the appropriateness of the allowance is a key management function that requires significant judgment and estimate by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the current loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance in future periods. While our current evaluation indicates that the ACL on loans at December 31, 2023 and 2022 was appropriate, the allowance may need to be increased under adversely different conditions or assumptions.

The significant key assumptions used with the ACL on loans calculation at December 31, 2023 and 2022 using the CECL methodology, included:
Macroeconomic factors (loss drivers): Macroeconomic factors are used within our discounted cash flow model to forecast the PD over the forecast period. As macroeconomic factor condition worsen, the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans. We monitor and assess Maine unemployment, changes in Maine GDP, changes in National GDP, and changes in Maine's Housing Price Index at least annually to determine if these macroeconomic factors continue to be the most predictive indicator of losses within our loan portfolio. Macroeconomic factors used in the calculation of the ACL on loans may change from time to time and in times of greater uncertainty, we may consider a range of possible forecasts and evaluate the probability of each scenario. We assessed our loss factors again in the fourth quarter of 2023 and there were no changes made to the ACL on loans calculation for reporting as of December 31, 2023.
Forecast Period and Reversion speed: The company uses a reasonable and supportable forecast period in developing the ACL, which represents the time period that management believes it can reasonably forecast the identified loss drivers. Generally, the forecast period management believes to be reasonable and supportable is set annually and validated through an assessment of economic leading indicators. In periods of greater volatility and uncertainty, such as that seen across the global markets and economies, including the U.S., we are likely to use a shorter forecast period, whereas when markets, economies and various other factors are considered more stable and certain, we are likely to use a longer forecast period. Generally, we expect our forecast period to range from one to three years. Once the reasonable and supportable forecast period is determined, The company reverts its loss expectations to the long-run historical mean for the remainder of the contract life of the asset, adjusted for prepayments. In determining the length of time over which the reversion will take place (i.e. “reversion speed”), we consider such factors such as, but not limited to, historical loan loss experience over previous economic cycles, as well as where we believe we are within the current economic cycle.
At December 31, 2023, we used a two-year forecast period and a two-year reversion period for each loan segment to measure the ACL on loans. At December 31, 2022, we used a one-year forecast period and one-year reversion period for each loan segment to measure the ACL on loans. This change was to better align 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. The prepayment speed assumption is utilized with the discounted cash flow model (i.e. the CECL model) to forecast expected cash flows over the contractual life of the loan, adjusted for expected prepayments. A higher prepayment speed assumption will drive a lower ACL, and vice versa. In the fourth quarter of 2023 we decreased our prepayment speeds for our residential, commercial real estate non-owner-occupied and commercial real estate owner-occupied. These decreases were to better align the prepayment speeds in the model with the current portfolio in the current interest rate environment.
Qualitative factors: Companies are required to consider various qualitative factors that may impact expected credit losses. We continue to consider qualitative factors in determining and arriving at our ACL on loans each reporting period. In 2023 the Company increased the qualitative factors used to address the increased risk in certain commercial real estate segments to ensure the Company has adequate reserves over these segments.

As of December 31, 2023 and 2022, the recorded ACL on loans was $36.9 million and represented our best estimate of expected credit losses within our loan portfolio as of each date. However, we may adjust our assumptions to account for differences between expected and actual losses each period. A future change of our assumptions will likely alter the level of allowance required and may have a material impact on future results of operations and financial condition. The ACL is reviewed periodically within a calendar quarter to assess trends in the aforementioned key assumptions, as well as asset quality within our loan portfolio, and we consider the impact of these trends on the ACL and the Company's financial condition, if any. The ACL on loans is reviewed and approved on a quarterly basis by the Company's Audit Committee, and later reviewed and ratified by the Bank's Board of Directors.
42






Refer to “—Results of Operations—Provision for Credit Losses,” “—Financial Condition—Asset Quality,” and Note 3 of the consolidated financial statements for further discussion.

ACL on Off-Balance Sheet Credit Exposures. We consider the ACL on off-balance sheet credit exposures to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover management’s estimate of all expected credit losses on expected future loan fundings of, primarily, unfunded loan commitments for those that are not unconditionally cancellable by the Company. The expected credit loss factor calculated for each loan segment using the ACL on loans methodology described above, as well as within Note 1 of the consolidated financial statements, is used to calculate the ACL on off-balance sheet credit exposures for each applicable loan segment, and, thus, are subject to the same level of estimation risk and volatility previously described. In addition, one other key assumption is used to derive the allowance on off-balance sheet credit exposures and that is the expected funding rate. The expected funding rate is derived using historical loan-level data for credit line usage, and is applied to total off-balance sheet credit exposures at each reporting date, excluding any that are unconditionally cancellable by the Company, to determine the expected funding amount. As unfunded loan commitments are funded, the allowance migrates from that provided for off-balance sheet credit exposures to the ACL on loans. If the expected funding rate or any other key assumption used is not reasonable, then this could have an adverse impact on the total ACL upon funding.

As of December 31, 2023 and 2022, the recorded ACL on off-balance sheet credit exposures was $2.4 million and $3.3 million, respectively, and presented within accrued interest and other liabilities on the consolidated statements of condition. Increases (decreases) to the allowance are presented within provision (credit) for credit losses on the consolidated statements of income. The allowance at December 31, 2023 and 2022, represented our best estimate, however, we may adjust our assumptions to account for differences between expected and actual losses from period to period. A future change to our assumptions will likely alter the level of allowance required and may have a material impact on future results of operations and financial condition.

Refer to “—Results of Operations—Provision for Credit Losses,” “—Financial Condition—Asset Quality,” and Note 3 and 11 of the consolidated financial statements for further discussion.

ACL for HTM Debt Securities. The estimate of expected credit losses on our HTM investment portfolio is based on the expected cash flows of each individual CUSIP over its contractual life and considers historical credit loss information, current conditions and reasonable and supportable forecasts. Given the rarity of municipal defaults and losses, we utilize external third party loss forecast models as the sole source of municipal default and loss rates. Investment cash flows are modeled over a reasonable and supportable forecast period and then revert to the long-term average economic conditions on a straight line basis (similar to that of our ACL on loans policy). Management may exercise discretion to make adjustments based on various environmental factors.

At December 31, 2023 and 2022, the Company held securities in its HTM portfolio with an amortized cost basis of $545.0 million and $546.6 million, that primarily consisted of MBS and CMO debt securities issued or guaranteed by U.S. government-sponsored agencies. Under ASU 2016-13, we may exclude certain securities when the historical credit loss information, adjusted for current conditions and forecasts, resulting in zero risk of nonpayment of the amortized cost basis of the security. We have evaluated and determined there is zero risk of nonpayment on all securities guaranteed by the U.S government agencies. In 2023, the Company engaged a third party to calculate the necessary allowances required due on all other HTM securities. In the first quarter of 2023, we recorded provision expense of $1.8 million on one HTM debt security, which was driven by the full write-off of one Signature Bank corporate bond due to its failure in March 2023. This was the only exposure we had to failed banks in 2023. However, no allowance was carried given the immaterial amount that was calculated based on the nature of such securities as of December 31, 2023 or 2022. Should our HTM portfolio continue grow in size, change its mix and/or experience credit deterioration, an allowance may be recorded at that time.

Refer to “—Financial Condition—Investments” and Note 2 of the consolidated financial statements for further discussion.

ACL on AFS Debt Securities. We consider the ACL on AFS debt securities to be a critical accounting policy given the size of the investment portfolio and level of estimation used to determine the allowance, as appropriate. As of December 31, 2023 and 2022, the Company's AFS portfolio is entirely made up of assets that are fair valued using level 2 valuation techniques in accordance with ASC 820, Fair Value Measurement. We engage a third party pricing agency to assist with the valuation of such debt securities and the assets are carried at fair value at each reporting period. An allowance is recorded on an AFS debt security to the extent an event has occurred that suggests receipt of full contractual payments are at risk. When such an event has been identified, a discounted cash flow model is used to determine the expected losses due to credit risk, and an allowance
43





is recorded to reduce the carrying value of the debt security by the calculated expected loss amount, limited to the amount by which the fair value of the debt security is below its amortized cost basis.

As further described within “—Financial Condition—Investments,” the Company's AFS portfolio, as of December 31, 2023 and 2022, was primarily consisted of MBS and CMO debt securities issued or guaranteed by U.S. government-sponsored agencies, and, thus, presenting little to no credit risk. As of December 31, 2023 and 2022, the Company had not identified indications of credit risk and did not carry any allowance for credit losses on its AFS portfolio and did not record any permanent impairments during the remainder of 2023, 2022, 2021.

Refer to “—Financial Condition—Investments” and Note 2 of the consolidated financial statements for further discussion.

Purchase Price Allocation and Impairment of Goodwill and Identifiable Intangible Assets. We record all acquired assets and liabilities at fair value, which is an estimate determined by the use of internal valuation techniques. We also may engage external valuation services to assist with the valuation of material assets and liabilities acquired, including, but not limited to, loans, core deposit intangibles and/or other intangible assets, real estate and time deposits. As part of purchase accounting, we typically acquire goodwill and other intangible assets as part of the purchase price. These assets are subject to ongoing periodic impairment tests under differing accounting models. We did not acquire any other company or assets during 2023 or 2022.

Goodwill impairment evaluations are required to be performed at least annually, but may be required more frequently if certain conditions indicate a potential impairment may exist. Our policy is to perform the goodwill impairment analysis annually as of November 30th, or more frequently as warranted. The goodwill impairment evaluation is required to be performed at the reporting unit level. Goodwill impairment is measured by the amount the book value of the reporting unit exceeds its fair value, and an impairment charge is recorded for the lesser of this amount or the amount to write-down goodwill to zero.

We elected to use the quantitative analysis to perform the annual goodwill impairment assessment as of November 30, 2023 and 2022 and concluded that goodwill was not impaired. We may use a qualitative analysis to evaluate goodwill for impairment when it is believed that it is not more-likely-than-not that the fair value of the reporting unit is below its book value, or if a quantitative analysis was recently used to estimate the fair value of the reporting unit, and there are not any indications of events that would suggest such conclusions for impairment have changed. The Company did not recognize any impairment of goodwill in 2023, 2022 or 2021.

The Company's core deposit intangible assets have a finite life and are amortized over their estimated useful lives. Core deposit intangible assets are subject to impairment tests if events or circumstances indicate a possible inability to realize the carrying amount. Core deposit intangible assets are measured for impairment utilizing a cost recovery model. We did not identify any events or circumstances that occurred in 2023, 2022 or 2021 that would indicate that our core deposit intangible assets may be impaired and should be evaluated for such.

Refer to “—Financial Condition—Goodwill and Core Deposit Intangible Assets” and Note 4 of the consolidated financial statements for further discussion.

Income Taxes. We account for income taxes by deferring income taxes based on the estimated future tax effects of differences between the book and tax bases of assets and liabilities, considering the provisions of enacted tax laws. These differences result in deferred tax assets and liabilities, which are included in the consolidated statements of condition.

We must also assess the likelihood that any deferred tax assets will be recovered from future taxable income and establish a valuation allowance for those assets determined not likely to be recoverable. At December 31, 2023 and 2022, the Company carried deferred tax assets totaling $42.2 million and $50.2 million, respectively, and did not record any valuation allowance on these deferred tax assets. Although we determined a valuation allowance was not required for our deferred tax assets as of December 31, 2023 and 2022, there is no guarantee that these assets will be realized. To the extent a valuation allowance on the Company's deferred tax assets is recorded in future periods, a material charge to the Company's consolidated statements of income may result and reduce net income. Judgment is required in determining the amount and timing of recognition of the resulting deferred tax assets and liabilities, including projections of future taxable income.

As of December 31, 2023, our federal and state income tax returns for 2022, 2021 and 2020 were open to audit by federal and various state authorities. If, as a result of an audit, we were to be assessed interest and penalties, the amounts would be recorded through other non-interest expense on the consolidated statements of income.

44





Refer to “—Results of Operations—Income Tax Expense” and Note 19 of the consolidated financial statements for further discussion.

Defined Benefit and Postretirement Plans. We use a December 31st measurement date to determine the expenses for the Company's defined benefit and postretirement plans and related financial disclosure information. Postretirement plan expense is sensitive to changes in the number of eligible employees, changes in the discount rate, mortality rate, and other expected
rates, such as medical cost trends rates and salary scale assumptions. There are no new entrants to the Company's defined benefit and postretirement plans.

Refer to Note 18 of the consolidated financial statements for further discussion.


EXECUTIVE OVERVIEW

2023 Overview. Throughout 2023, the U.S. economy and the financial services industry experienced significant and unexpected stress due to several key factors, including: (1) effects of material increases in short-term interest rates driven by aggressive increases in the Federal Funds Rate, which has resulted in a historically prolonged inversion of the interest rate yield curve; (2) liquidity issues resulting in part from three major bank failures that occurred in the first half of 2023 and which contributed to deposit outflows at certain banks; and (3) increased concerns regarding asset quality, particularly within the commercial real estate office space. The combination of these factors has placed great emphasis on deposit gathering across the industry, and coupled with rising short-term interest rates has resulted in rapidly rising deposit costs that have compressed net interest margins across the banking industry.

In response to the macro-environment and the factors outlined above, we shifted our priorities in 2023 to: (1) maintain our deposit base and liquidity strength; (2) optimize our net interest margin; and (3) maintain our strong asset quality. We continue to be focused on driving long-term shareholder value by working to maintain the financial strength and resiliency of the Company’s balance sheet. As of December 31, 2023, we are well-positioned not only to withstand current market turbulence but also to capitalize on opportunities that may arise within the markets in which the Company does business.

During 2023, through the combination of cash dividends and share repurchases, the Company returned $26.5 million of capital to shareholders, which included the repurchase of 65,692 shares of its common stock at a weighted average price of $30.44 and cash dividends to shareholders of $1.68 per share, a 4% increase over 2022. In January 2024, we announced a new share repurchase program approved by the Company’s Board of Directors for up to 750,000 shares, or approximately 5% of total shares outstanding at December 31, 2023, and the termination of our share repurchase program that was opened in 2023.

Operating Results. For 2023, the Company reported net income of $43.4 million and diluted earnings per share of $2.97, which were each 29% lower compared to 2022. Our 2023 financial results were impacted both by the macroeconomic conditions as described above, and by certain actions we took in response to these conditions as we focused on maintaining the long-term strength of our franchise, through maintaining and growing deposit relationships, maintaining our excellent asset quality, and maintaining capital levels. During 2023, the strength of our capital position enabled us to take certain actions to improve the Company’s future earnings capacity and improve profitability through by selling certain investments and redeploying the proceeds into higher yielding assets at current market rates. In doing so, the Company recorded pre-tax investment losses totaling $10.3 million (or $8.9 million in after-tax losses) in 2023, which contributed to the decrease in net income and diluted earnings per share compared to 2022. Adjusting for the investment losses, as well as a write-off of a $1.8 million (or $1.4 million after taxes) Signature Bank corporate bond due to its failure in the first quarter of 2023, adjusted net income (non-GAAP) and adjusted diluted earnings per share in 2023 decreased 15% and 14%, respectively, compared to 2022.

The Company, and the broader financial services industry, operated in an inverted yield curve environment for the entirety of 2023. The impact of the inverted yield curve has compressed the Company’s, and many other banks, net interest margin, which has driven a decrease in revenues and net income, as well as a reduction in profitability metrics, for 2023 compared to 2022. The Company’s net interest margin for 2023 was 2.46%, compared to 2.86% for 2022. We took several steps to stabilize net interest margin and reposition the Company’s balance sheet with a focus on improving our interest rate sensitivity to short- and long-term yield curve inversion for a longer time period, and positioning the Company for profitable growth as the economy and market conditions show signs of normalizing. In addition to the sales of investment securities described above, we took the following actions during 2023:
We executed $500.0 million of interest rate swaps designed to improve our interest rate risk position to rising and “higher for longer” short-term interest rates and generated $4.9 million of net interest income.
45





We leveraged the Bank Term Funding Program (i.e., a funding program created in early-2023 in response to bank failures to make additional funding available to depository institutions and to help stabilize market confidence) as it provided lower-cost alternative funding and provided us, and other banks, with the option to prepay borrowings under the program without penalty. To improve our liquidity position, we borrowed $135.0 million from the program at a rate of 4.70% for a period of one year.
We managed deposit costs actively through customer-level interactions and conversations, leveraging the strong relationships we build through our branch network and various channels. Since the beginning o