BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The accompanying unaudited consolidated interim financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation (the "Company") as of March 31, 2022 and December 31, 2021, the consolidated statements of income for the three months ended March 31, 2022 and 2021, the consolidated statements of comprehensive income for the three months ended March 31, 2022 and 2021, the consolidated statements of changes in shareholders' equity for the three months ended March 31, 2022 and 2021, and the consolidated statements of cash flows for the three months ended March 31, 2022 and 2021. The consolidated financial statements include the accounts of the Company and Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company (which includes the consolidated accounts of Healthcare Professional Funding Corporation ("HPFC") and Property A, Inc. as of and for the three months ended March 31, 2022 and 2021). All intercompany accounts and transactions have been eliminated in consolidation. Assets held by the Bank in a fiduciary capacity, through Camden National Wealth Management, a division of the Bank, are not assets of the Company and, therefore, are not included in the consolidated statements of condition. The Company also owns 100% of the common stock of Camden Capital Trust A and Union Bankshares Capital Trust I. These entities are unconsolidated subsidiaries of the Company. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not impact net income or shareholders' equity as previously reported. Net income reported for the three months ended March 31, 2022, is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

The acronyms, abbreviations and definitions identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Management's Discussion and Analysis of Financial Condition and Results of Operations." The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q.

Acronym

Description

Acronym

Description

AFS:

Available-for-sale

GAAP:

Generally accepted accounting principles in the United States

ALCO:

Asset/Liability Committee

GDP:

Gross domestic product

ACL:

Allowance for credit losses

HPFC:

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

AOCI:

Accumulated other comprehensive income (loss)

HTM:

Held-to-maturity

ASC:

Accounting Standards Codification

IRS:

Internal Revenue Service

ASU:

Accounting Standards Update

LGD:

Loss given default

Bank:

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

LIBOR:

London Interbank Offered Rate

BOLI:

Bank-owned life insurance

LTIP:

Long-Term Performance Share Plan

Board ALCO:

Board of Directors' Asset/Liability Committee

Management ALCO:

Management Asset/Liability Committee

CARES Act:

Coronavirus Aid, Relief, and Economic Security Act, signed into law in March 2020 in response to COVID-19

MBS:

Mortgage-backed security

CCTA:

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

MSPP:

Management Stock Purchase Plan

CDs:

Certificate of deposits

N/A:

Not applicable

CECL:

Current Expected Credit Losses

N.M.:

Not meaningful

Company:

Camden National Corporation

OCC:

Office of the Comptroller of the Currency

CMO:

Collateralized mortgage obligation

OCI:

Other comprehensive income (loss)

CUSIP:

Committee on Uniform Securities Identification Procedures

OREO:

Other real estate owned

DCRP:

Defined Contribution Retirement Plan

OTTI:

Other-than-temporary impairment

EPS:

Earnings per share

PD:

Probability of default

FASB:

Financial Accounting Standards Board

SBA:

U.S. Small Business Administration

FDIC:

Federal Deposit Insurance Corporation

SBA PPP:

U.S. Small Business Administration Paycheck Protection Program

FHLB:

Federal Home Loan Bank

SERP:

Supplemental executive retirement plans

FHLBB:

Federal Home Loan Bank of Boston

SOFR:

Secured Overnight Financing Rate

FHLMC:

Federal Home Loan Mortgage Corporation

TDR:

Troubled-debt restructured loan

FNMA:

Federal National Mortgage Association

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