Earnings release
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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 Reports Third Quarter 2025 Earnings Camden National Reports Record Net Income of $21.2 Million for the Third Quarter CAMDEN, Maine, October 28, 2025/PRNewswire/--Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”) reported earnings for the quarter ended September 30, 2025, of $21.2 million and diluted earnings per share ("EPS") of $1.25, both increases of 51%, compared to the second quarter of 2025. For the third quarter ended September 30, 2025, the Company reported a return on average assets of 1.21%, a return on average equity of 12.75% and a return on average tangible equity (non-GAAP) of 19.14%. “We are proud to report record third quarter earnings of $21.2 million, setting a new highwater mark for the organization, and diluted earnings per share of $1.25, marking our strongest quarterly performance since 2021,” said Simon Griffiths, President and Chief Executive Officer of Camden National. “These financial results reflect the strength and resilience of our core franchise and mark a pivotal moment for the organization. With the successful acquisition and integration of Northway Financial, Inc. earlier this year, we are well-positioned to accelerate growth and deliver sustained value for our shareholders.” THIRD QUARTER 2025 HIGHLIGHTS • Net income for the third quarter of 2025 totaled $21.2 million, an increase of 51% over the second quarter of 2025, and, on a non-GAAP basis, pre-tax, pre-provision income increased 19% over the same period to $29.5 million for the third quarter of 2025. • Net interest margin for the third quarter of 2025 increased 10 basis points to 3.16%, compared to the second quarter of 2025. • The GAAP efficiency ratio for the third quarter of 2025 was 54.94% and was 52.47% on a non-GAAP basis, improving from 60.37% and 55.47%, respectively, compared to the second quarter of 2025. • Loans for the third quarter of 2025 grew 4% on an annualized basis. • Book value per share increased 4% during the third quarter of 2025 to $39.97 at September 30, 2025, and tangible book value per share (non-GAAP) increased 6% during the same period to $28.42 at September 30, 2025.
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FINANCIAL CONDITION As of September 30, 2025, total assets were $7.0 billion, representing a 1% increase since June 30, 2025. Investments totaled $1.4 billion on September 30, 2025, representing a 1% increase from June 30, 2025. The duration of the Company's total investment portfolio was 5.1 years as of September 30, 2025, compared to 5.3 years as of June 30, 2025. Loans totaled $5.0 billion on September 30, 2025, representing a 1% increase compared to the second quarter of 2025. The increase during the third quarter was driven by a 4% increase in the commercial real estate loan portfolio and a 5% increase in the home equity loan portfolio. Deposits totaled $5.4 billion as of September 30, 2025, representing a 2% decrease from June 30, 2025. Excluding brokered deposits, average deposits grew by 2% during the third quarter of 2025, driven by seasonal inflows during the summer months across our markets. As of September 30, 2025, the Company’s loan-to-deposit ratio was 93%, compared to 89% at June 30, 2025. As of September 30, 2025, the Company's common equity Tier 1 risk-based capital ratio was 11.17%, Tier 1 risk- based capital ratio was 12.47%, total risk-based capital ratio was 13.47% and Tier 1 leverage ratio was 8.94%. The Company’s regulatory capital ratios continue to be well in excess of regulatory capital requirements and continue to improve as the Company rebuilds its capital position following the acquisition of Northway Financial, Inc. (“Northway”) in the first quarter of 2025. The Company announced a cash dividend of $0.42 per share, representing an annualized dividend yield of 4.35%, based on the Company's closing share price of $38.59 as reported by NASDAQ on September 30, 2025. The dividend will be payable on October 31, 2025, to shareholders of record on October 15, 2025. ASSET QUALITY Overall, the Company’s asset quality remains strong as of September 30, 2025, as evident in its asset quality metrics, highlighted by non-performing assets of 0.12% of total assets and past-due loans of 0.16% of total loans. At June 30, 2025, the Company proactively disclosed and carried a specific reserve of $6.0 million on a syndicated loan in which the Company participated for a telecommunication services company that had entered into bankruptcy. During the third quarter of 2025, the Company charged-off $10.7 million of the $12.2 million carrying value of the loan due to developments in the bankruptcy proceedings. The allowance for credit losses (“ACL”) on loans was 0.91% of total loans as of September 30, 2025, compared to 1.08% at June 30, 2025. The decrease in the ACL on loans between periods reflects the resolution of the syndicated loan discussed above and the continued strength of the overall loan portfolio. At September 30, 2025, the ACL on loans was 5.5 times total non-performing loans. FINANCIAL OPERATING RESULTS (Q3 2025 vs. Q2 2025) Net interest income for the third quarter of 2025 was $51.3 million, an increase of $2.1 million, or 4%, compared to the second quarter of 2025. This growth was driven by net interest margin expansion of 10 basis points and average loan growth of 1% during the third quarter of 2025. Provision expense of $3.0 million was recorded for the third quarter of 2025, compared to provision expense of $6.9 million recorded for the second quarter of 2025. An improvement in our forecasted macroeconomic outlook at September 30, 2025, was offset by additional provision expense of $4.7 million for the third quarter of 2025 associated with the partial charge-off for the aforementioned syndication loan.
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Non-interest income for the third quarter of 2025 was $14.1 million, an increase of $1.1 million, or 8%, compared tothe second quarter of 2025. In 2025, we continue to see strong momentum within our fee income business lines, highlighted by 11% organic growth in assets under administration across our wealth and brokerage business lines to$2.4 billion at September 30, 2025. Additionally, during the third quarter of 2025, the Company sold two non-branch bank properties recognizing a net gain of $675,000 within non-interest income. Non-interest expense for the third quarter of 2025 was $35.9 million, a decrease of 4% compared to the second quarter of 2025. The decrease in non-interest expense between periods reflects the reduction in merger and acquisition (“M&A”) costs of $1.1 million between periods associated with the Northway acquisition completed on January 2, 2025. Non-interest expense, excluding core deposit intangible amortization and M&A costs, for the third quarter of 2025 totaled $34.1 million, a 2% decrease from the second quarter of 2025, as the Company achievedsynergies from the Northway acquisition. For the third quarter of 2025, the Company reported a GAAP and non-GAAP efficiency ratio of 54.94% and 52.47%, respectively, compared to 60.37% and 55.47% for the second quarter of 2025. Q3 2025 CONFERENCE CALL Camden National Corporation will host a conference call and webcast at 3:00 p.m. Eastern Time on Tuesday, October 28, 2025, to discuss its third quarter 2025 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) 470-1428 Link for live dial-in(All other locations): https://www.netroadshow.com/conferencing/global-numbers?confId=89497 Participant access code: 704581 Live webcast: https://events.q4inc.com/attendee/485415554 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, 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
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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, 2024, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of notable and global current events on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that the actual effects may differ, 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. Statements relating to the Company’s recent acquisition of Northway may also be forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include the reaction to the transaction of the Company’s customers, employees and counterparties; customer disintermediation; expected synergies, cost savings and other financial benefits of the transaction might not be realized within the expected timeframes or might be less than projected; and credit and interest rate risks associated with Camden’s and Northway’s respective businesses, customers, borrowings, repayment, investment and deposit practices. 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.
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Selected Financial Data (unaudited) At or For TheThree Months Ended At or For TheNine Months Ended (In thousands, except number of shares andper share data) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Financial Condition Data Loans $ 5,002,927 $ 4,931,369 $ 4,116,729 $ 5,002,927 $ 4,116,729 Total assets 6,981,522 6,920,044 5,745,180 6,981,522 5,745,180 Deposits 5,402,758 5,514,712 4,575,226 5,402,758 4,575,226 Shareholders' equity 676,444 652,148 529,900 676,444 529,900 Operating Data and Per Share Data Net income $ 21,194 $ 14,081 $ 13,073 $ 42,601 $ 38,338 Pre-tax, pre-provision income (non-GAAP)29,470 24,680 16,093 69,753 45,845 Diluted EPS 1.25 0.83 0.90 2.51 2.62 Profitability Ratios Return on average assets 1.21 % 0.82 % 0.91 % 0.82 % 0.89 % Return on average equity 12.75 % 8.77 % 10.04 % 8.86 % 10.13 % Return on average tangible equity (non-GAAP) 19.14 % 13.71 % 12.40 % 13.84 % 12.60 % GAAP efficiency ratio 54.94 % 60.37 % 64.23 % 62.84 % 64.58 % Efficiency ratio (non-GAAP) 52.47 % 55.47 % 62.08 % 55.47 % 63.46 % Net interest margin (fully-taxable equivalent)3.16 % 3.06 % 2.46 % 3.09 % 2.37 % Asset Quality Ratios ACL on loans to total loans 0.91 % 1.08 % 0.86 % 0.91 % 0.86 % Non-performing loans to total loans 0.17 % 0.37 % 0.13 % 0.17 % 0.13 % Capital Ratios Common equity ratio 9.69 % 9.42 % 9.22 % 9.69 % 9.22 % Tangible common equity ratio (non-GAAP)7.09 % 6.77 % 7.69 % 7.09 % 7.69 % Book value per share $ 39.97 $ 38.54 $ 36.35 $ 39.97 $ 36.35 Tangible book value per share (non-GAAP)$ 28.42 $ 26.90 $ 29.82 $ 28.42 $ 29.82 Tier 1 leverage capital ratio 8.94 % 8.74 % 9.84 % 8.94 % 9.84 % Total risk-based capital ratio 13.47 % 13.35 % 14.85 % 13.47 % 14.85 % (1) This is a non-GAAP measure, please see "Reconciliation of non-GAAP to GAAP Financial Measures (unaudited).” (1) (1) (1) (1) (1)
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Consolidated Statements of Condition Data (unaudited) (In thousands) September 30,2025 June 30,2025 September 30,2024 % ChangeSep 2025 vs.Jun 2025 % ChangeSep 2025 vs.Sep 2024 ASSETS Cash, cash equivalents and restricted cash $ 98,848 $ 113,815 $ 139,512 (13)% (29)% Investments: Trading securities 5,581 5,326 5,141 5 % 9 % Available-for-sale securities, at fair value 889,765 860,217 603,211 3 % 48 % Held-to-maturity securities, at amortized cost 495,007 509,298 526,251 (3)% (6)% Other investments 31,185 26,879 22,513 16 % 39 % Total investments 1,421,538 1,401,720 1,157,116 1 % 23 % Loans held for sale, at fair value 9,775 22,567 11,706 (57)% (16)% Loans: Commercial real estate 2,173,748 2,089,977 1,707,923 4 % 27 % Commercial 479,461 506,883 382,507 (5)% 25 % Residential real estate 2,017,675 2,018,332 1,762,395 — % 14 % Consumer and home equity 332,043 316,177 263,904 5 % 26 % Total loans 5,002,927 4,931,369 4,116,729 1 % 22 % Less: allowance for credit losses on loans (45,501) (53,022) (35,414) (14)% 28 % Net loans 4,957,426 4,878,347 4,081,315 2 % 21 % Goodwill and core deposit intangible assets 195,558 197,031 95,251 (1)% 105 % Other assets 298,377 306,564 260,280 (3)% 15 % Total assets $ 6,981,522 $ 6,920,044 $ 5,745,180 1 % 22 % LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Deposits: Non-interest checking $ 1,162,149 $ 1,118,080 $ 940,702 4 % 24 % Interest checking 1,535,482 1,663,335 1,445,828 (8)% 6 % Savings and money market 1,879,770 1,823,275 1,466,541 3 % 28 % Certificates of deposit 701,031 698,185 553,481 — % 27 % Brokered deposits 124,326 211,837 168,674 (41)% (26)% Total deposits 5,402,758 5,514,712 4,575,226 (2)% 18 % Short-term borrowings 748,492 599,367 516,336 25 % 45 % Long-term borrowings 1,000 — — N.M. N.M. Junior subordinated debentures 61,441 61,365 44,331 — % 39 % Accrued interest and other liabilities 91,387 92,452 79,387 (1)% 15 % Total liabilities 6,305,078 6,267,896 5,215,280 1 % 21 % Commitments and Contingencies Shareholders’ Equity Common stock, no par value 215,145 214,365 116,072 — % 85 % Retained earnings 529,721 515,662 500,927 3 % 6 % Accumulated other comprehensive loss: Net unrealized loss on debt securities, net of tax (74,348) (84,324) (91,349) (12)% (19)% Net unrealized gain on cash flow hedging derivativeinstruments, net of tax 5,532 6,045 4,506 (8)% 23 % Net unrecognized gain (loss) on postretirement plans, netof tax 394 400 (256) (2)% (254)% Total accumulated other comprehensive loss (68,422) (77,879) (87,099) (12)% (21)% Total shareholders’ equity 676,444 652,148 529,900 4 % 28 % Total liabilities and shareholders’ equity $ 6,981,522 $ 6,920,044 $ 5,745,180 1 % 22 % N.M. = Not meaningful
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Consolidated Statements of Income Data (unaudited) For TheThree Months Ended (In thousands, except per share data) September 30,2025 June 30,2025 September 30,2024 % ChangeSep 2025 vs.Jun 2025 % ChangeSep 2025 vs.Sep 2024 Interest Income Interest and fees on loans $ 69,070 $ 67,477 $ 55,484 2 % 24 % Taxable interest on investments 10,314 10,257 6,622 1 % 56 % Nontaxable interest on investments 456 455 462 — % (1)% Dividend income 470 493 389 (5)% 21 % Other interest income 584 641 764 (9)% (24)% Total interest income 80,894 79,323 63,721 2 % 27 % Interest Expense Interest on deposits 24,719 24,594 25,051 1 % (1)% Interest on borrowings 4,039 4,620 4,549 (13)% (11)% Interest on junior subordinated debentures 864 900 534 (4)% 62 % Total interest expense 29,622 30,114 30,134 (2)% (2)% Net interest income 51,272 49,209 33,587 4 % 53 % Provision for credit losses 2,972 6,920 239 (57)% N.M. Net interest income after provision for creditlosses 48,300 42,289 33,348 14 % 45 % Non-Interest Income Debit card income 3,704 3,646 3,169 2 % 17 % Service charges on deposit accounts 2,570 2,405 2,168 7 % 19 % Income from fiduciary services 1,884 1,981 1,817 (5)% 4 % Brokerage and insurance commissions 1,850 1,794 1,414 3 % 31 % Mortgage banking income, net 1,092 1,060 973 3 % 12 % Bank-owned life insurance 957 1,003 709 (5)% 35 % Other income 2,068 1,178 1,156 76 % 79 % Total non-interest income 14,125 13,067 11,406 8 % 24 % Non-Interest Expense Salaries and employee benefits 20,089 19,392 16,545 4 % 21 % Furniture, equipment and data processing 4,173 4,294 3,578 (3)% 17 % Net occupancy costs 2,666 2,693 1,890 (1)% 41 % Debit card expense 1,745 1,725 1,368 1 % 28 % Amortization of core deposit intangible assets 1,473 1,473 139 — % N.M. Regulatory assessments 1,020 1,127 784 (9)% 30 % Consulting and professional fees 810 1,310 788 (38)% 3 % Merger and acquisition costs 315 1,405 727 (78)% (57)% Other real estate owned and collection costs, net 46 91 94 (49)% (51)% Other expenses 3,590 4,086 2,987 (12)% 20 % Total non-interest expense 35,927 37,596 28,900 (4)% 24 % Income before income tax expense 26,498 17,760 15,854 49 % 67 % Income Tax Expense 5,304 3,679 2,781 44 % 91 % Net Income $ 21,194 $ 14,081 $ 13,073 51 % 62 % Per Share Data Basic earnings per share $ 1.25 $ 0.84 $ 0.90 49 % 39 % Diluted earnings per share $ 1.25 $ 0.83 $ 0.90 51 % 39 % N.M. = Not meaningful
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Consolidated Statements of Income Data (unaudited) For TheNine Months Ended (In thousands, except per share data) September 30,2025 September 30,2024 % ChangeSep 2025 vs.Sep 2024 Interest Income Interest and fees on loans $ 203,096 $ 160,615 26 % Taxable interest on investments 30,343 20,456 48 % Nontaxable interest on investments 1,379 1,388 (1)% Dividend income 1,483 1,222 21 % Other interest income 2,311 2,385 (3)% Total interest income 238,612 186,066 28 % Interest Expense Interest on deposits 73,934 72,398 2 % Interest on borrowings 12,677 15,032 (16)% Interest on junior subordinated debentures 2,662 1,592 67 % Total interest expense 89,273 89,022 — % Net interest income 149,339 97,044 54 % Provision (credit) for credit losses 19,321 (1,213) N.M. Net interest income after provision (credit) for credit losses 130,018 98,257 32 % Non-Interest Income Debit card income 10,583 9,104 16 % Service charges on deposit accounts 7,293 6,308 16 % Income from fiduciary services 5,703 5,436 5 % Brokerage and insurance commissions 5,341 4,094 30 % Mortgage banking income, net 2,660 2,297 16 % Bank-owned life insurance 2,620 2,086 26 % Other income 4,188 3,048 37 % Total non-interest income 38,388 32,373 19 % Non-Interest Expense Salaries and employee benefits 59,724 48,100 24 % Furniture, equipment and data processing 13,198 10,704 23 % Merger and acquisition costs 9,245 727 N.M. Net occupancy costs 8,392 5,941 41 % Debit card expense 5,160 3,943 31 % Amortization of core deposit intangible assets 4,419 417 N.M. Consulting and professional fees 3,618 2,797 29 % Regulatory assessments 3,133 2,454 28 % Other real estate owned and collection costs, net 227 151 50 % Other expenses 10,858 8,338 30 % Total non-interest expense 117,974 83,572 41 % Income before income tax expense 50,432 47,058 7 % Income Tax Expense 7,831 8,720 (10)% Net Income $ 42,601 $ 38,338 11 % Per Share Data Basic earnings per share $ 2.52 $ 2.63 (4)% Diluted earnings per share $ 2.51 $ 2.62 (4)% N.M. = Not meaningful
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Quarterly Average Balance and Yield/Rate Analysis (unaudited) Average Balance Yield/Rate For The Three Months Ended For The Three Months Ended (Dollars in thousands) September 30,2025 June 30,2025 September 30,2024 September 30,2025 June 30,2025 September 30,2024 Assets Interest-earning assets: Interest-bearing deposits in otherbanksand other interest-earning assets$ 38,170 $ 43,530 $ 48,914 4.45 % 4.47 % 4.66 % Investments - taxable 1,380,042 1,396,669 1,138,979 3.17 % 3.12 % 2.53 % Investments - nontaxable 61,114 61,044 61,864 3.77 % 3.78 % 3.78 % Loans: Commercial real estate 2,123,138 2,076,129 1,706,509 5.72 % 5.72 % 5.41 % Commercial 398,870 407,677 375,944 6.26 % 6.17 % 6.51 % Municipal 97,113 82,768 17,186 4.76 % 4.68 % 5.17 % Residential real estate 2,033,136 2,037,852 1,780,665 4.86 % 4.84 % 4.53 % Consumer and home equity 323,753 308,938 264,178 7.38 % 7.36 % 7.96 % Total loans 4,976,010 4,913,364 4,144,482 5.50 % 5.48 % 5.29 % Total interest-earning assets 6,455,336 6,414,607 5,394,239 4.98 % 4.94 % 4.69 % Other assets 469,590 471,188 317,319 Total assets $ 6,924,926 $ 6,885,795 $ 5,711,558 Liabilities & Shareholders' Equity Deposits: Non-interest checking $ 1,163,310 $ 1,103,025 $ 934,403 — % — % — % Interest checking 1,622,869 1,636,620 1,440,374 1.82 % 1.84 % 2.56 % Savings 1,011,847 959,987 679,118 1.34 % 1.20 % 0.95 % Money market 842,043 848,604 760,977 2.69 % 2.66 % 3.46 % Certificates of deposit 698,948 703,091 565,063 3.50 % 3.57 % 3.85 % Total deposits 5,339,017 5,251,327 4,379,935 1.69 % 1.70 % 2.09 % Borrowings: Brokered deposits 176,508 207,672 156,618 4.51 % 4.53 % 5.25 % Customer repurchase agreements246,775 234,491 190,936 1.18 % 1.31 % 1.92 % Junior subordinated debentures 61,404 61,325 44,331 5.58 % 5.88 % 4.79 % Other borrowings 354,099 398,408 336,899 3.70 % 3.88 % 4.28 % Total borrowings 838,786 901,896 728,784 3.27 % 3.50 % 3.90 % Total funding liabilities 6,177,803 6,153,223 5,108,719 1.90 % 1.96 % 2.35 % Other liabilities 87,495 88,790 84,617 Shareholders' equity 659,628 643,782 518,222 Total liabilities & shareholders'equity $ 6,924,926 $ 6,885,795 $ 5,711,558 Net interest rate spread (fully-taxable equivalent) 3.08 % 2.98 % 2.34 % Net interest margin (fully-taxable equivalent) 3.16 % 3.06 % 2.46 % Core net interest margin (fully-taxable equivalent) 2.82 % 2.70 % 2.46 % (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).” (1) (2) (1) (1) (3)
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Year-to-Date Average Balance and Yield/Rate Analysis (unaudited) Average Balance Yield/Rate For The Nine Months Ended For The Nine Months Ended (Dollars in thousands) September 30,2025 September 30,2024 September 30,2025 September 30,2024 Assets Interest-earning assets: Interest-bearing deposits in other banks and other interest-earningassets $ 55,276 $ 47,893 4.44 % 5.05 % Investments - taxable 1,384,151 1,163,118 3.11 % 2.55 % Investments - nontaxable 61,547 62,014 3.78 % 3.78 % Loans: Commercial real estate 2,088,486 1,696,882 5.71 % 5.15 % Commercial 405,140 384,402 6.27 % 6.35 % Municipal 90,161 16,067 5.20 % 4.82 % Residential real estate 2,035,004 1,775,502 4.80 % 4.47 % Consumer and home equity 312,024 260,635 7.38 % 7.93 % Total loans 4,930,815 4,133,488 5.48 % 5.15 % Total interest-earning assets 6,431,789 5,406,513 4.94 % 4.57 % Other assets 472,744 315,387 Total assets $ 6,904,533 $ 5,721,900 Liabilities & Shareholders' Equity Deposits: Non-interest checking $ 1,124,809 $ 923,207 — % — % Interest checking 1,653,975 1,469,812 1.84 % 2.54 % Savings 956,006 634,478 1.18 % 0.57 % Money market 869,446 762,131 2.66 % 3.39 % Certificates of deposit 702,929 577,007 3.60 % 3.84 % Total deposits 5,307,165 4,366,635 1.70 % 2.04 % Borrowings: Brokered deposits 193,634 146,969 4.55 % 5.28 % Customer repurchase agreements 239,286 186,401 1.26 % 1.78 % Junior subordinated debentures 61,337 44,331 5.80 % 4.80 % Other borrowings 366,814 379,751 3.80 % 4.41 % Total borrowings 861,071 757,452 3.41 % 3.96 % Total funding liabilities 6,168,236 5,124,087 1.94 % 2.32 % Other liabilities 93,096 92,361 Shareholders' equity 643,201 505,452 Total liabilities & shareholders' equity $ 6,904,533 $ 5,721,900 Net interest rate spread (fully-taxable equivalent) 3.00 % 2.25 % Net interest margin (fully-taxable equivalent) 3.09 % 2.37 % Core net interest margin (fully-taxable equivalent) 2.73 % 2.37 % (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).” (1) (2) (1) (1) (3)
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Year-to-Date Organic Loans And Deposits Growth (Unaudited) (A) (B) (C) (D) = (A) - (B) - (C) (In thousands) September 30,2025 December 31,2024 NorthwayAcquisitionPurchaseAccounting Nine Months EndedSeptember 30, 2025Organic Growth (Decline) Loans: Commercial real estate $ 2,173,748 $ 1,711,964 $ 360,272 $ 101,512 6 % Commercial 479,461 382,785 106,487 (9,811) (3)% Residential real estate 2,017,675 1,752,249 273,349 (7,923) — % Consumer and home equity 332,043 268,261 35,555 28,227 11 % Total loans $ 5,002,927 $ 4,115,259 $ 775,663 $ 112,005 3 % Deposits: Non-interest checking $ 1,162,149 $ 925,571 $ 197,320 $ 39,258 4 % Interest checking 1,535,482 1,483,589 315,891 (263,998) (18)% Savings and money market 1,879,770 1,511,589 285,889 82,292 5 % Certificates of deposit 701,031 532,424 172,573 (3,966) (1)% Brokered deposits 124,326 179,994 — (55,668) (31)% Total deposits $ 5,402,758 $ 4,633,167 $ 971,673 $ (202,082) (4)% (1) Represents fair value marks recorded on loans and deposits as of the acquisition date, January 2, 2025. (1)
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Asset Quality Data (unaudited) (In thousands) At or for theNine MonthsEndedSeptember 30,2025 At or for theSix MonthsEndedJune 30,2025 At or for theThree MonthsEndedMarch 31,2025 At or for theYear EndedDecember 31,2024 At or for theNine MonthsEndedSeptember 30,2024 Non-accrual loans: Residential real estate $ 3,393 $ 3,678 $ 4,322 $ 1,891 $ 2,497 Commercial real estate 134 145 271 559 130 Commercial 4,103 13,514 1,803 1,927 2,057 Consumer and home equity 700 840 855 452 666 Total non-accrual loans 8,330 18,177 7,251 4,829 5,350 Accruing loans past due 90 days — — — — — Total non-performing loans 8,330 18,177 7,251 4,829 5,350 Other real estate owned — 72 72 — — Total non-performing assets $ 8,330 $ 18,249 $ 7,323 $ 4,829 $ 5,350 Loans 30-89 days past due: Residential real estate $ 725 $ 1,519 $ 1,754 $ 558 $ 216 Commercial real estate 5,014 1,120 380 689 239 Commercial 1,865 884 767 393 578 Consumer and home equity 493 591 440 621 358 Total loans 30-89 days past due$ 8,097 $ 4,114 $ 3,341 $ 2,261 $ 1,391 ACL on loans at the beginning of theperiod $ 35,728 $ 35,728 $ 35,728 $ 36,935 $ 36,935 ACL established on acquired PCDloans 3,071 3,071 3,071 — — Provision (credit) for loan losses 19,009 15,469 8,873 53 (693) Charge-offs: Residential real estate 4 4 4 — — Commercial real estate 218 191 191 — — Commercial 12,320 1,245 896 1,784 1,157 Consumer and home equity 173 105 29 99 83 Total charge-offs 12,715 1,545 1,120 1,883 1,240 Total recoveries (408) (299) (171) (623) (412) Net charge-offs 12,307 1,246 949 1,260 828 ACL on loans at the end of the period$ 45,501 $ 53,022 $ 46,723 $ 35,728 $ 35,414 Components of ACL: ACL on loans $ 45,501 $ 53,022 $ 46,723 $ 35,728 $ 35,414 ACL on off-balance sheet creditexposures 3,117 3,685 3,362 2,806 2,743 ACL, end of period $ 48,618 $ 56,707 $ 50,085 $ 38,534 $ 38,157 Ratios: Non-performing loans to total loans 0.17 % 0.37 % 0.15 % 0.12 % 0.13 % Non-performing assets to total assets 0.12 % 0.26 % 0.11 % 0.08 % 0.09 % ACL on loans to total loans 0.91 % 1.08 % 0.96 % 0.87 % 0.86 % Net charge-offs to average loans(annualized): Quarter-to-date 0.89 % 0.02 % 0.08 % 0.04 % 0.03 % Year-to-date 0.33 % 0.05 % 0.08 % 0.03 % 0.03 % ACL on loans to non-performing loans 546.23 % 291.70 % 644.37 % 739.86 % 661.94 % Loans 30-89 days past due to total loans0.16 % 0.08 % 0.07 % 0.05 % 0.03 % (1) Purchase credit deteriorated (“PCD”). (2) Presented within accrued interest and other liabilities on the consolidated statements of condition. (1) (2)
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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 AverageEquity: For theThree Months Ended For theNine Months Ended (In thousands, except number of shares, pershare data and ratios) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Adjusted Net Income: Net income, as presented $ 21,194 $ 14,081 $ 13,073 $ 42,601 $ 38,338 Adjustments before taxes: Provision for non-PCD acquired loans — — — 6,294 — Provision for acquired unfundedcommitments — — — 249 — Merger and acquisition costs 315 1,405 727 9,245 727 Gain on sale of premises and equipment,net (675) — — (675) — Signature Bank bond recovery — — — — (910) Total adjustments before taxes (360) 1,405 727 15,113 (183) Tax impact of above adjustments 76 (295) (153) (3,145) 38 Adjustment for deferred tax valuationadjustment — — — (2,421) — Adjusted net income $ 20,910 $ 15,191 $ 13,647 $ 52,148 $ 38,193 Adjusted Diluted Earnings per Share: Diluted earnings per share, as presented$ 1.25 $ 0.83 $ 0.90 $ 2.51 $ 2.62 Adjustments before taxes: Provision for non-PCD acquired loans — — — 0.37 — Provision for acquired unfundedcommitments — — — 0.01 — Merger and acquisition costs 0.02 0.08 0.05 0.55 0.05 Gain on sale of premises and equipment,net (0.04) — — (0.04) — Signature Bank bond recovery — — — — (0.06) Total adjustments before taxes (0.02) 0.08 0.05 0.89 (0.01) Tax impact of above adjustments 0.01 (0.02) (0.01) (0.18) — Adjustment for deferred tax valuationadjustment — — — (0.14) — Adjusted diluted earnings per share$ 1.24 $ 0.89 $ 0.94 $ 3.08 $ 2.61 Adjusted Return on Average Assets: Return on average assets, as presented 1.21 % 0.82 % 0.91 % 0.82 % 0.89 % Adjustments before taxes: Provision for non-PCD acquired loans — % — % — % 0.12 % — % Provision for acquired unfundedcommitments — % — % — % 0.01 % — % Merger and acquisition costs 0.02 % 0.09 % 0.05 % 0.18 % 0.02 % Gain on sale of premises and equipment,net (0.04)% — % — % (0.01)% — % Signature Bank bond recovery — % — % — % — % (0.02)% Total adjustments before taxes (0.02)% 0.09 % 0.05 % 0.30 % — % Tax impact of above adjustments — % (0.02)% (0.01)% (0.06)% — % Adjustment for deferred tax valuationadjustment — % — % — % (0.05)% — % Adjusted return on average assets 1.19 % 0.89 % 0.95 % 1.01 % 0.89 % (1) (2) (1) (2) (1) (2)
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Adjusted Net Income; Adjusted Diluted Earnings per Share; Adjusted Return on Average Assets; and Adjusted Return on AverageEquity: For theThree Months Ended For theNine Months Ended (In thousands, except number of shares, pershare data and ratios) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Adjusted Return on Average Equity: Return on average equity, as presented 12.75 % 8.77 % 10.04 % 8.86 % 10.13 % Adjustments before taxes: Provision for non-PCD acquired loans — % — % — % 1.31 % — % Provision for acquired unfundedcommitments — % — % — % 0.05 % — % Merger and acquisition costs 0.19 % 0.88 % 0.56 % 1.92 % 0.19 % Gain on sale of premises and equipment,net (0.41)% — % — % (0.14)% — % Signature Bank bond recovery — % — % — % — % (0.24)% Total adjustments before taxes (0.22)% 0.88 % 0.56 % 3.14 % (0.05)% Tax impact of above adjustments 0.05 % (0.18)% (0.12)% (0.66)% 0.01 % Adjustment for deferred tax valuationadjustment — % — % — % (0.50)% — % Adjusted return on average equity 12.58 % 9.47 % 10.48 % 10.84 % 10.09 % (1) Assumed a 21% tax rate. (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 merger. Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income: For theThree Months Ended For theNine Months Ended (In thousands) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Net income, as presented $ 21,194 $ 14,081 $ 13,073 $ 42,601 $ 38,338 Adjustment for provision (credit) for creditlosses 2,972 6,920 239 19,321 (1,213) Adjustment for income tax expense 5,304 3,679 2,781 7,831 8,720 Pre-tax, pre-provision income 29,470 24,680 16,093 69,753 45,845 Adjustment for merger and acquisition costs 315 1,405 727 9,245 727 Adjustment for gain on sale of premises andequipment, net (675) — — (675) — Adjusted pre-tax, pre-provision income$ 29,110 $ 26,085 $ 16,820 $ 78,323 $ 46,572 (1) (2)
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Efficiency Ratio: For theThree Months Ended For theNine Months Ended (Dollars in thousands) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Non-interest expense, as presented$ 35,927 $ 37,596 $ 28,900 $ 117,974 $ 83,572 Adjustment for merger and acquisitioncosts (315) (1,405) (727) (9,245) (727) Adjustment for amortization of coredeposit intangible assets (1,473) (1,473) (139) (4,419) (417) Adjusted non-interest expense $ 34,139 $ 34,718 $ 28,034 $ 104,310 $ 82,428 Net interest income, as presented$ 51,272 $ 49,209 $ 33,587 $ 149,339 $ 97,044 Adjustment for the effect of tax-exemptincome 344 312 165 982 475 Adjusted net interest income 51,616 49,521 33,752 150,321 97,519 Non-interest income, as presented 14,125 13,067 11,406 38,388 32,373 Adjustment for gain on sale of premisesand equipment, net (675) — — (675) — Adjusted non-interest income 13,450 13,067 11,406 37,713 32,373 Adjusted net interest income plus adjustednon-interest income $ 65,066 $ 62,588 $ 45,158 $ 188,034 $ 129,892 GAAP efficiency ratio 54.94 % 60.37 % 64.23 % 62.84 % 64.58 % Non-GAAP efficiency ratio 52.47 % 55.47 % 62.08 % 55.47 % 63.46 % (1) Assumed a 21% tax rate. Return on Average Tangible Equity and Adjusted Return on Average Tangible Equity: For theThree Months Ended For theNine Months Ended (Dollars in thousands) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Return on Average Tangible Equity: Net income, as presented $ 21,194 $ 14,081 $ 13,073 $ 42,601 $ 38,338 Adjustment for amortization of coredeposit intangible assets 1,473 1,473 139 4,419 417 Tax impact of above adjustment (309) (309) (29) (928) (88) Net income, adjusted for amortization ofcore deposit intangible assets $ 22,358 $ 15,245 $ 13,183 $ 46,092 $ 38,667 Average equity, as presented $ 659,628 $ 643,782 $ 518,222 $ 643,201 $ 505,452 Adjustment for average goodwill and coredeposit intangible assets (196,279) (197,863) (95,319) (198,072) (95,460) Average tangible equity $ 463,349 $ 445,919 $ 422,903 $ 445,129 $ 409,992 Return on average equity 12.75 % 8.77 % 10.04 % 8.86 % 10.13 % Return on average tangible equity 19.14 % 13.71 % 12.40 % 13.84 % 12.60 % Adjusted Return on Average TangibleEquity: Adjusted net income (refer to the "AdjustedNet Income" non-GAAP reconciliationtable) $ 20,910 $ 15,191 $ 13,647 $ 52,148 $ 38,193 Adjustment for amortization of coredeposit intangible assets 1,473 1,473 139 4,419 417 Tax impact of above adjustment (309) (309) (29) (928) (88) Adjusted net income, adjusted foramortization of core deposit intangibleassets $ 22,074 $ 16,355 $ 13,757 $ 55,639 $ 38,522 Adjusted return on average tangible equity18.90 % 14.71 % 12.94 % 16.71 % 12.55 % (1) Assumed a 21% tax rate. (1) (1) (1)
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Core Net Interest Margin (fully-taxable equivalent): For theThree Months Ended For theNine Months Ended (In thousands) September 30,2025 June 30,2025 September 30,2024 September 30,2025 September 30,2024 Net interest margin, tax equivalent, aspresented 3.16 % 3.06 % 2.46 % 3.09 % 2.37 % Net accretion income on loans frompurchase accounting (0.27)% (0.30)% — (0.30)% — Net accretion income on investments frompurchase accounting (0.08)% (0.07)% — (0.07)% — Net amortization on time deposits andborrowings from purchase accounting 0.01 % 0.01 % — 0.01 % — Core net interest margin (fully-taxableequivalent) 2.82 % 2.70 % 2.46 % 2.73 % 2.37 % (1) Recognized $3.8 million and $12.4 million of net accretion income on loans from purchase accounting for the three and nine months ended September 30, 2025, respectively, and $4.3 million for the three months ended June 30, 2025. (2) Recognized $937,000 and $2.6 million of net accretion income on investments from purchase accounting for the three and nine months ended September 30, 2025, respectively, and $863,000 for the three months ended June 30, 2025. (3) Recognized $132,000 and $394,000 million of amortization expense on time deposits and borrowings from purchase accounting for the three and nine months ended September 30, 2025, respectively, and $131,000 for the three months ended June 30, 2025. Tangible Book Value Per Share and Tangible Common Equity Ratio: (In thousands, except number of shares, per share data and ratios)September 30,2025 June 30,2025 September 30,2024 Tangible Book Value Per Share: Shareholders' equity, as presented $ 676,444 $ 652,148 $ 529,900 Adjustment for goodwill and core deposit intangible assets (195,558) (197,031) (95,251) Tangible shareholders' equity $ 480,886 $ 455,117 $ 434,649 Shares outstanding at period end 16,922,225 16,919,689 14,577,218 Book value per share $ 39.97 $ 38.54 $ 36.35 Tangible book value per share $ 28.42 $ 26.90 $ 29.82 Tangible Common Equity Ratio: Total assets $ 6,981,522 $ 6,920,044 $ 5,745,180 Adjustment for goodwill and core deposit intangible assets (195,558) (197,031) (95,251) Tangible assets $ 6,785,964 $ 6,723,013 $ 5,649,929 Common equity ratio 9.69 % 9.42 % 9.22 % Tangible common equity ratio 7.09 % 6.77 % 7.69 % (1) (2) (3)