EX-99.1 2 ex991earningsreleaseq126.htm EX-99.1 Document
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CONTACT:                                
Michael Archer
Executive Vice President
Chief Financial Officer
Camden National Corporation
(800) 860-8821
marcher@CamdenNational.bank

FOR IMMEDIATE RELEASE



Camden National Corporation Delivers Solid First Quarter 2026 Results with Net Income of $21.9 Million and Diluted EPS of $1.29


CAMDEN, Maine, April 28, 2026/PRNewswire/--Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”) reported net income of $21.9 million and diluted earnings per share (“EPS”) of $1.29 for the quarter ended March 31, 2026, resulting in a return on average assets of 1.28%, a return on average equity of 12.58%, and a return on average tangible equity (non‑GAAP) of 18.17%.

“Our reported net income of nearly $22 million for the first quarter reflects the benefits of the acquisition we completed last year, including our ability to efficiently scale the combined organization and accelerate our strategy to grow and strengthen our franchise,” said Simon Griffiths, President and Chief Executive Officer of Camden National Corporation. “We delivered solid performance in the first quarter through strong asset quality, expense management and deposit growth. Looking ahead, we remain focused on sustained growth and disciplined execution as we continue to meet our customers’ evolving needs through advice-based conversations.”

FIRST QUARTER 2026 HIGHLIGHTS

•Net income for the first quarter was $21.9 million, compared to $7.3 million for the first quarter of 2025 and $22.6 million for the fourth quarter of 2025 (“linked-quarter”). On a non‑GAAP basis, adjusted net income was $21.9 million, compared to $15.8 million for the first quarter of 2025 and $22.6 million for the fourth quarter of 2025, representing a year‑over‑year increase of 39% and a linked‑quarter decrease of 3%.
•Diluted EPS for the first quarter was $1.29, compared to $0.43 for the first quarter of 2025 and $1.33 for the fourth quarter of 2025. On a non‑GAAP basis, adjusted diluted earnings per share was $1.29, compared to $0.93 for the first quarter of 2025 and $1.33 for the fourth quarter of 2025, representing a year‑over‑year increase of 39% and a linked‑quarter decrease of 3%.
•The GAAP efficiency ratio for the first quarter was 55.50%, and the non-GAAP efficiency ratio was 53.21%, compared to 54.16% and 51.69%, respectively, for the fourth quarter of 2025.
•Book value per share was $41.98 and tangible book value per share (non-GAAP) was $30.58 at March 31, 2026, representing increases of 11% and 18%, respectively, compared to March 31, 2025.

•The Company repurchased 33,131 shares of its common stock at a weighted-average price of $44.85 during the first quarter of 2026.

FINANCIAL OPERATING RESULTS (Q1 2026 vs. Q4 2025)

Net interest income for the first quarter of 2026 totaled $52.4 million, a decrease of 3% from the fourth quarter of 2025. Net interest margin contracted 5 basis points to 3.24% during the first quarter, driven by lower fair value mark accretion income of $956,000 and a 1% decline in average interest-earning assets compared to the prior quarter. Core net interest margin was 2.92% for the first quarter of 2026 and the fourth quarter of 2025.

Provision expense was $553,000 for the first quarter of 2026, compared to $3.0 million for the fourth quarter of 2025. Asset quality remained solid during the first quarter, as highlighted by an annualized net charge-offs-to average-loans ratio of 0.04% at March 31, 2026, compared to 0.26% on a quarterly basis at December 31, 2025.

Non-interest income for the first quarter of 2026 totaled $12.0 million, compared to $14.1 million for the fourth quarter of 2025. The decrease between quarters was driven by a decline in debit card income, reflecting the timing of recognition of our annual Visa incentive bonus and typical debit card seasonality, as well as lower customer loan swap income and deposit-related service charge income, which we anticipate will normalize in the second quarter of 2026.

Non-interest expense for the first quarter of 2026 totaled $35.7 million, a 3% decrease compared to the fourth quarter of 2025. The linked-quarter decline was primarily driven by the timing of certain retirement plan costs related to former Northway employees that were incurred in the fourth quarter of 2025, and lower performance incentive accruals and regulatory assessment fees. The Company’s GAAP and non‑GAAP efficiency ratios for the first quarter of 2026 were 55.50% and 53.21% compared to 54.16% and 51.69%, respectively, for the fourth quarter of 2025.

FINANCIAL CONDITION

Total assets were $7.0 billion at March 31, 2026 and December 31, 2025.

Investments totaled $1.4 billion at March 31, 2026, representing a 3% decrease from December 31, 2025.

Total Loans were $5.0 billion at both March 31, 2026 and December 31, 2025, reflecting typical seasonal patterns for the first quarter. The Company entered the second quarter with a committed loan pipeline of $128.3 million.

The Company’s asset quality continues to be strong, supported by healthy credit metrics, including past-due loans of 0.06% of total loans and non-performing assets of 0.16% of total assets. The allowance for credit losses (“ACL”) on loans increased one basis point during the quarter to 0.92% of total loans at March 31, 2026. The ACL coverage ratio was 4.2 times non-performing loans at March 31, 2026, compared to 6.4 times at December 31, 2025.

Deposits totaled $5.6 billion at March 31, 2026, representing a 1% increase from December 31, 2025, driven by the success of the Company’s high-yield savings product and recent onboarding of new business deposit customers. The increase in deposits enabled the Company to reduce higher‑cost, short‑term borrowings by $68.3 million during the quarter. As of March 31, 2026, the Company’s loan‑to‑deposit ratio was 89%, compared to 90% at December 31, 2025.

As of March 31, 2026, the Company maintained capital ratios well in excess of all regulatory requirements, including a Common Equity Tier 1 ratio of 12.01%, a Tier 1 risk-based ratio of 13.32%, a total risk-based ratio of 14.27%, and a Tier 1 leverage ratio of 9.43%.


The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 3.54%, based on the Company's closing share price of $47.45 as reported by NASDAQ on March 31, 2026. The dividend will be payable on April 30, 2026, to shareholders of record on April 15, 2026.

Q1 2026 CONFERENCE CALL

Camden National Corporation will host a conference call and webcast at 3:00 p.m. Eastern Time on Tuesday, April 28, 2026, to discuss its first quarter of 2026 financial results and outlook. Participants should dial into the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (Domestic):
(833) 461-5787
Link to obtain live dial-in
(All other locations):
https://help.events.q4inc.com/eahc/international-dial-in-numbers
Meeting ID:
616576518
Live webcast URL:
https://events.q4inc.com/attendee/616576518

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

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company, with $7.0 billion in assets. Founded in 1875, Camden National Bank has 72 banking centers in Maine and New Hampshire and is a full-service community bank offering the latest digital banking, complemented by award-winning, personalized service. Additional information is available at CamdenNational.bank. Member FDIC. Equal Housing Lender.

Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including certain plans, expectations, goals, projections, and other statements, which are subject to numerous risks, assumptions, and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures; inflation; ongoing competition in labor markets and employee turnover; deterioration in the value of Camden National's investment securities; changes in consumer spending and savings habits; changes in the interest rate environment; changes in general economic conditions, including as a result of tariffs and retaliatory tariffs; operational risks including, but not limited to, cybersecurity, fraud, pandemics and natural disasters; legislative and regulatory changes that adversely affect the business in which Camden National is engaged; turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions which could affect Camden National's ability to attract and retain depositors, and could affect the ability of financial services providers, including the Company, to borrow or raise capital; actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions; changes to regulatory capital requirements; changes in the securities markets and other risks and uncertainties disclosed from time to time in Camden National’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated

by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of notable and global current events, including hostilities in Iran and recent rulings on the permissibility of certain tariffs, 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. Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

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

ANNUALIZED DATA

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

Selected Financial Data
(unaudited)
At or For The
Three Months Ended
(In thousands, except number of shares and per share data)March 31,
2026		December 31,
2025		March 31,
2025
Financial Condition Data
Loans$4,963,017 $4,965,138 $4,885,086 
Total assets6,961,581 6,974,584 6,964,785 
Deposits5,585,352 5,537,781 5,597,478 
Shareholders' equity710,007 696,558 640,054 
Operating Data and Per Share Data
Net income $21,883 $22,559 $7,326 
Pre-tax, pre-provision income (non-GAAP)(1)
28,630 31,192 15,603 
Diluted EPS
1.29 1.33 0.43 
Profitability Ratios
Return on average assets1.28 %1.28 %0.43 %
Return on average equity12.58 %13.01 %4.75 %
Return on average tangible equity (non-GAAP)(1)
18.17 %19.06 %8.06 %
GAAP efficiency ratio
55.50 %54.16 %74.02 %
Efficiency ratio (non-GAAP)(1)
53.21 %51.69 %58.72 %
Net interest margin (fully-taxable equivalent)3.24 %3.29 %3.04 %
Core net interest margin (fully-taxable equivalent) (non-GAAP)(1)
2.92 %2.92 %2.68 %
Asset Quality Ratios
ACL on loans to total loans0.92 %0.91 %0.96 %
Non-performing loans to total loans0.22 %0.14 %0.15 %
Capital Ratios
Common equity ratio10.20 %9.99 %9.19 %
Tangible common equity ratio (non-GAAP)(1)
7.64 %7.41 %6.49 %
Book value per share
$41.98 $41.16 $37.91 
Tangible book value per share (non-GAAP)(1)
$30.58 $29.69 $26.02 
Tier 1 leverage capital ratio9.43 %9.12 %8.58 %
Total risk-based capital ratio14.27 %13.95 %13.13 %
(1)    This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).”



Consolidated Statements of Condition Data
(unaudited)
(In thousands)March 31,
2026		December 31,
2025		March 31,
2025
% Change Mar 2026 vs. Dec 2025
% Change Mar 2026 vs. Mar 2025
ASSETS   
Cash, cash equivalents and restricted cash$133,736 $97,492 $219,414 37 %(39)%
Investments:   
Trading securities4,383 5,747 4,860 (24)%(10)%
Available-for-sale securities, at fair value901,617 930,401 836,130 (3)%8 %
Held-to-maturity securities, at amortized cost473,257 485,292 516,682 (2)%(8)%
Other investments23,411 26,497 26,284 (12)%(11)%
Total investments1,402,668 1,447,937 1,383,956 (3)%1 %
Loans held for sale, at fair value17,618 15,040 11,059 17 %59 %
Loans:
Commercial real estate2,195,741 2,185,105 2,067,098 — %6 %
Commercial414,694 417,439 487,409 (1)%(15)%
Residential real estate1,993,435 2,012,922 2,028,062 (1)%(2)%
Home equity
342,874 332,256 283,491 3 %21 %
Consumer
16,273 17,416 19,026 (7)%(14)%
Total loans4,963,017 4,965,138 4,885,086 — %2 %
      Less: allowance for credit losses on loans(45,576)(45,276)(46,723)1 %(2)%
       Net loans4,917,441 4,919,862 4,838,363 — %2 %
Goodwill and core deposit intangible assets192,731 194,085 200,770 (1)%(4)%
Other assets297,387 300,168 311,223 (1)%(4)%
Total assets$6,961,581 $6,974,584 $6,964,785 — %— %
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Liabilities  
Deposits:  
Non-interest checking$1,077,696 $1,113,450 $1,132,648 (3)%(5)%
Interest checking1,770,622 1,703,971 1,714,944 4 %3 %
Savings and money market1,966,149 1,910,708 1,828,332 3 %8 %
Certificates of deposit652,002 679,087 703,873 (4)%(7)%
Brokered deposits118,883 130,565 217,681 (9)%(45)%
Total deposits5,585,352 5,537,781 5,597,478 1 %— %
Short-term borrowings513,429 581,780 567,436 (12)%(10)%
Long-term borrowings1,000 1,000 — — %N.M.
Junior subordinated debentures61,590 61,515 61,290 — %— %
Accrued interest and other liabilities90,203 95,950 98,527 (6)%(8)%
Total liabilities6,251,574 6,278,026 6,324,731 — %(1)%
Commitments and Contingencies 
Shareholders’ Equity  
Common stock, no par value214,693 215,797 213,589 (1)%1 %
Retained earnings559,885 545,149 508,720 3 %10 %
Accumulated other comprehensive loss:  
Net unrealized loss on debt securities, net of tax (71,141)(70,405)(89,613)1 %(21)%
Net unrealized gain on cash flow hedging derivative instruments, net of tax6,042 5,478 6,953 10 %(13)%
Net unrecognized gain on postretirement plans, net of tax
528 539 405 (2)%30 %
Total accumulated other comprehensive loss(64,571)(64,388)(82,255)— %(21)%
Total shareholders’ equity710,007 696,558 640,054 2 %11 %
Total liabilities and shareholders’ equity$6,961,581 $6,974,584 $6,964,785 — %— %
N.M. = Not meaningful




Consolidated Statements of Income Data
(unaudited)
For The
Three Months Ended
(In thousands, except per share data)March 31,
2026		December 31,
2025		March 31,
2025
% Change Mar 2026 vs. Dec 2025
% Change Mar 2026 vs. Mar 2025
Interest Income
Interest and fees on loans$66,679 $70,032 $66,549 (5)%— %
Taxable interest on investments10,296 10,489 9,772 (2)%5 %
Nontaxable interest on investments455 455 468 — %(3)%
Dividend income413 457 520 (10)%(21)%
Other interest income528 610 1,086 (13)%(51)%
Total interest income78,371 82,043 78,395 (4)%— %
Interest Expense
Interest on deposits21,648 23,353 24,621 (7)%(12)%
Interest on borrowings3,476 3,867 4,018 (10)%(13)%
Interest on junior subordinated debentures889 905 898 (2)%(1)%
Total interest expense26,013 28,125 29,537 (8)%(12)%
Net interest income52,358 53,918 48,858 (3)%7 %
Provision for credit losses
553 2,969 9,429 (81)%N.M.
Net interest income after provision for credit losses
51,805 50,949 39,429 2 %31 %
Non-Interest Income
Debit card income3,422 4,689 3,233 (27)%6 %
Service charges on deposit accounts2,158 2,558 2,318 (16)%(7)%
Income from fiduciary services2,014 1,927 1,838 5 %10 %
Brokerage and insurance commissions1,735 1,674 1,697 4 %2 %
Mortgage banking income, net828 863 508 (4)%63 %
Bank-owned life insurance791 820 660 (4)%20 %
Other income1,032 1,603 942 (36)%10 %
Total non-interest income11,980 14,134 11,196 (15)%7 %
Non-Interest Expense
Salaries and employee benefits19,615 20,077 20,243 (2)%(3)%
Furniture, equipment and data processing4,644 4,571 4,731 2 %(2)%
Net occupancy costs3,059 2,795 3,033 9 %1 %
Debit card expense1,616 1,653 1,690 (2)%(4)%
Amortization of core deposit intangible assets1,354 1,474 1,473 (8)%(8)%
Regulatory assessments907 1,146 986 (21)%(8)%
Consulting and professional fees921 999 1,498 (8)%(39)%
Merger and acquisition costs
— 41 7,525 (100)%(100)%
Other real estate owned and collection costs, net
6 43 90 (86)%(93)%
Other expenses3,586 4,061 3,182 (12)%13 %
Total non-interest expense35,708 36,860 44,451 (3)%(20)%
Income before income tax expense (benefit)
28,077 28,223 6,174 (1)%355 %
Income Tax Expense (Benefit)
6,194 5,664 (1,152)9 %(638)%
Net Income$21,883 $22,559 $7,326 (3)%199 %
Per Share Data
Basic earnings per share$1.29 $1.34 $0.43 (4)%200 %
Diluted earnings per share$1.29 $1.33 $0.43 (3)%200 %
N.M. = Not meaningful



Quarterly Average Balance and Yield/Rate Analysis
(unaudited)
Average Balance
Yield/Rate
For The Three Months EndedFor The Three Months Ended
(Dollars in thousands)March 31,
2026		December 31,
2025		March 31,
2025		March 31,
2026		December 31,
2025		March 31,
2025
Assets
Interest-earning assets:
Interest-bearing deposits in other banks
and other interest-earning assets
$32,360 $42,711 $84,211 4.70 %4.20 %4.44 %
Investments - taxable1,395,629 1,393,828 1,375,818 3.11 %3.18 %3.04 %
Investments - nontaxable(1)
61,137 61,184 62,485 3.77 %3.77 %3.79 %
Loans(2):
Commercial real estate2,183,289 2,182,891 2,065,534 5.61 %5.79 %5.69 %
Commercial(1)
360,451 371,987 409,037 6.12 %6.36 %6.37 %
Municipal(1)
51,070 93,664 90,554 5.18 %4.65 %6.17 %
Residential real estate2,018,838 2,031,695 2,034,024 4.77 %4.87 %4.71 %
Home equity
336,593 323,238 283,516 6.67 %6.94 %7.27 %
Consumer
16,769 17,718 19,631 9.43 %9.40 %9.13 %
     Total loans 4,967,010 5,021,193 4,902,296 5.39 %5.52 %5.45 %
Total interest-earning assets6,456,136 6,518,916 6,424,810 4.88 %5.00 %4.91 %
Other assets477,500 479,563 477,556 
Total assets$6,933,636 $6,998,479 $6,902,366 
Liabilities & Shareholders' Equity
Deposits:
Non-interest checking$1,088,115 $1,174,537 $1,107,398 — %— %— %
Interest checking1,682,848 1,674,762 1,703,056 1.60 %1.73 %1.85 %
Savings1,114,741 1,059,967 894,803 1.41 %1.36 %0.98 %
Money market815,112 832,435 918,637 2.32 %2.46 %2.63 %
Certificates of deposit665,552 690,278 706,851 3.17 %3.38 %3.72 %
Total deposits5,366,368 5,431,979 5,330,745 1.54 %1.61 %1.70 %
Borrowings:
Brokered deposits129,178 127,995 196,510 3.99 %4.21 %4.62 %
Customer repurchase agreements256,619 264,926 236,437 0.93 %1.05 %1.29 %
Junior subordinated debentures61,545 61,479 61,282 5.85 %5.84 %5.94 %
Other borrowings324,853 338,290 348,402 3.60 %3.71 %3.80 %
Total borrowings772,195 792,690 842,631 2.96 %3.07 %3.44 %
Total funding liabilities6,138,563 6,224,669 6,173,376 1.72 %1.79 %1.94 %
Other liabilities89,737 85,874 103,201 
Shareholders' equity705,336 687,936 625,789 
Total liabilities & shareholders' equity$6,933,636 $6,998,479 $6,902,366 
Net interest rate spread (fully-taxable equivalent)3.16 %3.21 %2.97 %
Net interest margin (fully-taxable equivalent)3.24 %3.29 %3.04 %
Core net interest margin (fully-taxable equivalent)(3)
2.92 %2.92 %2.68 %
(1) Reported on a tax-equivalent basis calculated using the federal corporate income tax rate of 21%, including certain commercial loans.
(2) Non-accrual loans and loans held for sale are included in total average loans.
(3) This is a non-GAAP measure. Please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).”




Asset Quality Data
(unaudited)
(In thousands)
At or for the
Three Months Ended
March 31,
2026
At or for the
Year Ended
December 31, 2025
At or for the
Nine Months Ended
September 30, 2025
At or for the
Six Months Ended
June 30, 2025
At or for the
Three Months Ended
March 31,
2025
Non-accrual loans:
Residential real estate$2,252 $2,667 $3,393 $3,678 $4,322 
Commercial real estate5,420 639 134 145 271 
Commercial2,689 3,042 4,103 13,514 1,803 
Home equity
596 672 697 834 848 
Consumer
2 3 3 6 7 
Total non-accrual loans10,959 7,023 8,330 18,177 7,251 
Accruing loans past due 90 days
— — — — — 
Total non-performing loans10,959 7,023 8,330 18,177 7,251 
Other real estate owned— — — 72 72 
Total non-performing assets$10,959 $7,023 $8,330 $18,249 $7,323 
Loans 30-89 days past due:
Residential real estate$772 $1,565 $725 $1,519 $1,754 
Commercial real estate569 5,284 5,014 1,120 380 
Commercial1,350 541 1,865 884 767 
Home equity
328 713 456 457 301 
Consumer
58 59 37 134 139 
Total loans 30-89 days past due$3,077 $8,162 $8,097 $4,114 $3,341 
ACL on loans at the beginning of the period$45,276 $35,728 $35,728 $35,728 $35,728 
ACL established on acquired PCD loans(1)
— 3,071 3,071 3,071 3,071 
Provision for loan losses
806 22,031 19,009 15,469 8,873 
Charge-offs:
Residential real estate— 4 4 4 4 
Commercial real estate— 3,220 218 191 191 
Commercial627 12,659 12,320 1,245 896 
Home equity
— 21 21 3 3 
Consumer
43 185 152 102 26 
Total charge-offs 670 16,089 12,715 1,545 1,120 
Total recoveries (164)(535)(408)(299)(171)
Net charge-offs506 15,554 12,307 1,246 949 
ACL on loans at the end of the period$45,576 $45,276 $45,501 $53,022 $46,723 
Components of ACL:
ACL on loans$45,576 $45,276 $45,501 $53,022 $46,723 
ACL on off-balance sheet credit exposures(2)
2,810 3,064 3,117 3,685 3,362 
ACL, end of period$48,386 $48,340 $48,618 $56,707 $50,085 
Ratios:
Non-performing loans to total loans0.22 %0.14 %0.17 %0.37 %0.15 %
Non-performing assets to total assets0.16 %0.10 %0.12 %0.26 %0.11 %
ACL on loans to total loans0.92 %0.91 %0.91 %1.08 %0.96 %
Net charge-offs to average loans (annualized):
Quarter-to-date0.04 %0.26 %0.89 %0.02 %0.08 %
Year-to-date0.04 %0.31 %0.33 %0.05 %0.08 %
ACL on loans to non-performing loans415.88 %644.68 %546.23 %291.70 %644.37 %
Loans 30-89 days past due to total loans0.06 %0.16 %0.16 %0.08 %0.07 %
(1)    Purchase credit deteriorated (“PCD”).
(2)    Presented within accrued interest and other liabilities on the consolidated statements of condition.



Reconciliation of non-GAAP to GAAP Financial Measures
(unaudited)
Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on Average Equity:
For the
Three Months Ended
(In thousands, except number of shares, per share data and ratios)March 31,
2026		December 31,
2025		March 31,
2025
Adjusted Net Income:
Net income, as presented$21,883 $22,559 $7,326 
Adjustments before taxes:
Provision for non-PCD acquired loans— — 6,294 
Provision for acquired unfunded commitments— — 249 
Merger and acquisition costs— 41 7,525 
Total adjustments before taxes
— 41 14,068 
Tax impact of above adjustments, as applicable(1)
— (9)(3,205)
Adjustment for deferred tax valuation adjustment(2)
— — (2,421)
Adjusted net income
$21,883 $22,591 $15,768 
Adjusted Diluted Earnings per Share:
Diluted earnings per share, as presented$1.29 $1.33 $0.43 
Adjustments before taxes:
Provision for non-PCD acquired loans— — 0.37 
Provision for acquired unfunded commitments— — 0.01 
Merger and acquisition costs— — 0.45 
Total adjustments before taxes
— — 0.83 
Tax impact of above adjustments, as applicable(1)
— — (0.19)
Adjustment for deferred tax valuation adjustment(2)
— — (0.14)
Adjusted diluted earnings per share
$1.29 $1.33 $0.93 
Adjusted Return on Average Assets:
Return on average assets, as presented1.28 %1.28 %0.43 %
Adjustments before taxes:
Provision for non-PCD acquired loans— %— %0.37 %
Provision for acquired unfunded commitments— %— %0.01 %
Merger and acquisition costs— %— %0.44 %
Total adjustments before taxes
— %— %0.82 %
Tax impact of above adjustments, as applicable(1)
— %— %(0.19)%
Adjustment for deferred tax valuation adjustment(2)
— %— %(0.14)%
Adjusted return on average assets
1.28 %1.28 %0.92 %
Adjusted Return on Average Equity:
Return on average equity, as presented12.58 %13.01 %4.75 %
Adjustments before taxes:
Provision for non-PCD acquired loans— %— %4.08 %
Provision for acquired unfunded commitments— %— %0.16 %
Merger and acquisition costs— %0.02 %4.88 %
Total adjustments before taxes
— %0.02 %9.12 %
Tax impact of above adjustments, as applicable(1)
— %— %(2.08)%
Adjustment for deferred tax valuation adjustment(2)
— %— %(1.57)%
Adjusted return on average equity
12.58 %13.03 %10.22 %
(1)    Calculated using an estimated combined marginal income tax rate of 23%.
(2)     A one-time deferred tax valuation adjustment of $2.4 million resulted from a change in the apportionment of state income taxes due to the Northway acquisition.



Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income:
For the
Three Months Ended
(In thousands)March 31,
2026		December 31,
2025		March 31,
2025
Net income, as presented$21,883 $22,559 $7,326 
Adjustment for provision for credit losses
553 2,969 9,429 
Adjustment for income tax expense (benefit)
6,194 5,664 (1,152)
 Pre-tax, pre-provision income
28,630 31,192 15,603 
Adjustment for merger and acquisition costs— 41 7,525 
Adjusted pre-tax, pre-provision income
$28,630 $31,233 $23,128 

Efficiency Ratio:
For the
Three Months Ended
(Dollars in thousands)March 31,
2026		December 31,
2025		March 31,
2025
Non-interest expense, as presented$35,708 $36,860 $44,451 
Adjustment for merger and acquisition costs
— (41)(7,525)
Adjustment for amortization of core deposit intangible assets(1,354)(1,474)(1,473)
Adjusted non-interest expense$34,354 $35,345 $35,453 
Net interest income, as presented$52,358 $53,918 $48,858 
Adjustment for the effect of tax-exempt income(1)
225 331 326 
Non-interest income, as presented11,980 14,134 11,196 
Adjusted net interest income plus non-interest income
$64,563 $68,383 $60,380 
GAAP efficiency ratio
55.50 %54.16 %74.02 %
Non-GAAP efficiency ratio53.21 %51.69 %58.72 %
(1)    Reported on a tax-equivalent basis using a 21% income tax rate.


Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity:
For the
Three Months Ended
(Dollars in thousands)March 31,
2026		December 31,
2025		March 31,
2025
Return on Average Tangible Equity:
Net income, as presented$21,883 $22,559 $7,326 
Adjustment for amortization of core deposit intangible assets1,354 1,474 1,473 
Tax impact of above adjustment(1)
(311)(339)(339)
Net income, adjusted for amortization of core deposit intangible assets$22,926 $23,694 $8,460 
Average equity, as presented$705,336 $687,936 $625,789 
Adjustment for average goodwill and core deposit intangible assets(193,554)(194,800)(200,125)
Average tangible equity$511,782 $493,136 $425,664 
Return on average equity12.58 %13.01 %4.75 %
Return on average tangible equity18.17 %19.06 %8.06 %
Adjusted Return on Average Tangible Equity:
Adjusted net income (refer to the "Adjusted Net Income" non-GAAP reconciliation table)
$21,883 $22,591 $15,768 
Adjustment for amortization of core deposit intangible assets1,354 1,474 1,473 
Tax impact of above adjustment(1)
(311)(339)(339)
Adjusted net income, adjusted for amortization of core deposit intangible assets
$22,926 $23,726 $16,902 
Adjusted return on average tangible equity
18.17 %19.09 %16.10 %
(1)    Calculated using an estimated combined marginal income tax rate of 23%.



Core Net Interest Margin (fully-taxable equivalent):
For the
Three Months Ended
(In thousands)March 31,
2026		December 31,
2025		March 31,
2025
Net interest margin, tax equivalent, as presented
3.24 %3.29 %3.04 %
Net accretion income on loans from purchase accounting(1)
(0.26)%(0.31)%(0.30)%
Net accretion income on investments from purchase accounting(2)
(0.06)%(0.07)%(0.07)%
Net amortization on time deposits and borrowings from purchase accounting(3)
— %0.01 %0.01 %
Core net interest margin (fully-taxable equivalent)
2.92 %2.92 %2.68 %
(1)    Recognized $3.7 million, $4.6 million and $4.3 million of net accretion income on loans from purchase accounting for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(2)    Recognized $759,000, $857,000 and $831,000 of net accretion income on investments from purchase accounting for the three ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
(3)    Recognized $75,000 of amortization expense on borrowings from purchase accounting for the three months ended March, 31, 2026 and $131,000 of amortization expense on time deposits and borrowings from purchase accounting for the three months ended December 31, 2025 and March 31, 2025.

Tangible Book Value Per Share and Tangible Common Equity Ratio:
(In thousands, except number of shares, per share data and ratios)March 31,
2026		December 31,
2025		March 31,
2025
Tangible Book Value Per Share:
Shareholders' equity, as presented$710,007 $696,558 $640,054 
Adjustment for goodwill and core deposit intangible assets(192,731)(194,085)(200,770)
Tangible shareholders' equity$517,276 $502,473 $439,284 
Shares outstanding at period end16,914,371 16,924,310 16,885,571 
Book value per share$41.98 $41.16 $37.91 
Tangible book value per share$30.58 $29.69 $26.02 
Tangible Common Equity Ratio:
Total assets$6,961,581 $6,974,584 $6,964,785 
Adjustment for goodwill and core deposit intangible assets(192,731)(194,085)(200,770)
Tangible assets$6,768,850 $6,780,499 $6,764,015 
Common equity ratio10.20 %9.99 %9.19 %
Tangible common equity ratio7.64 %7.41 %6.49 %