CAMDEN NATIONAL CORP (CAC)

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

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, as amended, including certain plans, expectations, 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,” “potential” 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 are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult for the Company to predict. The actual results, performance or achievements of the Company may differ materially from what is reflected in such forward-looking statements.

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 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 Northern New England region, 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 or the imposition of tariffs or retaliatory tariffs;

•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 and artificial intelligence, that require increased capital spending and introduce additional risk;

•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 hostilities in Iran, 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

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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;

•changes to regulatory capital requirements; 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, 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.

You should carefully review all of these factors, and be aware that there may be other factors that could cause differences, including the risk factors listed in our Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company's quarterly reports on Form 10-Q, including this report, and other filings with the Securities and Exchange Commission. 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 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.

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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; return on average tangible equity and adjusted return on average tangible equity; the efficiency and tangible common equity ratios; net interest margin and core net interest margin (both on a fully-taxable equivalent basis); tangible book value per share; core deposits and average core deposits. We utilize these non-GAAP financial measures for purposes of measuring performance against the Company's peer group and other financial institutions, as well as for analyzing its internal performance. The Company also believes these non-GAAP financial measures help investors better understand the Company's operating performance and trends and allows 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. The following table provides a reconciliation of net income, diluted EPS, return on average assets and return on average equity to adjusted net income, adjusted diluted EPS, adjusted return on average assets and adjusted return on average equity. Certain non-recurring transactions have been excluded to calculate adjusted net income, adjusted diluted EPS, adjusted return on average assets and adjusted return on average equity. We believe the following adjusted financial information and metrics assist users of our financial statements with their financial analysis period-over-period as it adjusts for certain non-recurring items.

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(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.

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Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income. Pre-tax, pre-provision income is a supplemental measure of operating earnings and performance. Pre-tax, pre-provision income is calculated as net income before provision for credit losses and income tax expense. This supplemental measure has become more widely used by financial institutions as a measure of financial performance for comparability across financial institutions.

Adjusted pre-tax, pre-provision income is a s

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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, 2025, 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 2024 annual report on Form 10-K filed with the SEC on March 7, 2025 for the discussion of results of operations and financial condition at and for the year ended December 31, 2024.

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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:

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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); core net interest margin (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.

(1)     Calculated using an estimated combined marginal income tax rate of 23% for the year ended December 31, 2025 and 21% for the years ended December 31, 2024 and 2023.

(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.

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(1)     Calculated using an estimated combined marginal income tax rate of 23% for the year ended December 31, 2025 and 21% for the years ended December 31, 2024 and 2023.

(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.

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Pre-Tax, Pre-Provision Income and Adjusted Pre-Tax, Pre-Provision Income. Pre-tax, pre-provision income is 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. This supplemental measure became widely used by financial institutions as a measure of financial performance for comparability across financial institutions.

Adjusted pre-tax, pre-provision income is a supplemental measure with certain non-recurring expenses excluded. We believe the following adjusted financial information and metrics assist users of our financial statements with their financial analysis period-over-period as it adjusts for certain non-recurring items.

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.

(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.

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 CDI assets and other adjustments, as necessary, to (ii) average shareholders' equity, adjusted for average goodwill and CDI 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.

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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.

(1)     Calculated using an estimated combined marginal income tax rate of 23% for the year ended December 31, 2025 and 21% for the years ended December 31, 2024 and 2023.

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 CDI 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 CDI assets to (ii) total assets less goodwill and CDI assets. This ratio is a measure used within our industry to assess whether or not a company is highly leveraged.

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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.

(1)     Reported on a tax-equivalent basis using a 21% income tax rate.

Core Net Interest Margin (fully-taxable equivalent). The following table provides a reconciliation of net interest margin (fully-taxable equivalent) to core net interest margin (fully-taxable equivalent). Certain non-recurring transactions have been excluded to calculate core net interest margin (fully-taxable equivalent). We believe the following adjusted financial information and metrics assist users of our financial statements with their financial analysis period-over-period as it adjusts for certain non-recurring items.

(1)    Recognized $17.0 million of net accretion income on loans from purchase accounting for the year ended December 31, 2025.

(2)    Recognized $3.5 million of net accretion income on investments from purchase accounting for the year ended December 31, 2025.

(3)    Recognized $525,000 of amortization expense on time deposits and borrowings from purchase accounting for the year ended December 31, 2025.

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.

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.

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(1)     Brokered deposits are excluded from total average deposits, as presented on the Average Balance, Interest and Yield/Rate analysis table.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting estimates 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. Estimates particularly critical and susceptible to significant near-term change, include (i) the ACL on loans, (ii) fair value of loans acquired in business combinations and (iii) goodwill.

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 is determined based on the amortized cost basis of the assets and may be determined at various levels, including homogeneous loan pools and individual credits with unique risk factors. 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 and particularly in our ACL on loans. Under CECL, our ACL may increase or decrease period-to-period based on many assumptions, 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) various qualitative factors outlined in ASU 2016-13.

ACL on Loans. We consider the ACL on loans to be a critical accounting estimate 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, 2025 and 2024 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, 2025 and 2024 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 conditions worsen, the PD increases, and the corresponding LGD increases, resulting in an increase in the ACL on loans. To identify the most appropriate loss drivers for each portfolio segment, we evaluate a broad set of economic indicators and perform correlation and back‑testing analyses to determine which variables demonstrate the strongest and most stable relationship to historical loss experience. We monitor and assess Maine unemployment, changes in National GDP, changes in National Retail Sales, and changes in Maine's Housing Price Index at least annually to determine if these macroeconomic factors

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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 reassessed our loss factors in the first quarter of 2025 and removed change in Maine GDP and added change in National Retail Sales to be used within the discounted cash flow model.

•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, 2025 and 2024, we used a two-year forecast period and a two-year reversion period for each loan segment to measure the ACL on loans as we believe this methodology aligns 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.

•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 2025, we provided for an additional qualitative factor for the loans acquired in the Northway acquisition.

As of December 31, 2025 and 2024, the recorded ACL on loans was $45.3 and $35.7 million, respectively, 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.

Refer to “—Results of Operations—Provision for Credit Losses,” “—Financial Condition—Asset Quality,” and Note 4 of the consolidated financial statements for further discussion.

Fair Value of Loans Acquired in Business Combinations. The loans acquired as part of the Northway acquisition were accounted for at fair value on January 2, 2025 (“Acquisition Date”). The fair value for these acquired loans was determined using a discounted cash flow approach that incorporated expected credit and prepayment-adjusted cash flows, discounted at market-based rates. This analysis considered factors such as loan type and collateral, interest rate structure, remaining term, credit quality indicators, and amortization status. Loans with similar risk characteristics were pooled for valuation purposes. Discount rates for loans were developed using a “build-up” approach, which considered the cost of funds, capital charges, servicing costs, liquidity premiums, and risk premiums.

The discount rate and prepayment speeds were the most significant assumptions within in the acquired loan portfolio valuation. Changes in these inputs would have a material effect on the fair value measurement, in particular:

•Discount rate: Increases or decreases in the discount rate would result in a significant change in the estimated fair value of the acquired loan portfolio due to the sensitivity of discounted cash flows to market‑based yield assumptions.

•Prepayment speed: Variations in expected prepayment speeds, whether higher or lower, would result in a meaningful change in the fair value estimate because prepayment behavior directly affects projected cash flows and expected loan duration.

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Additional information regarding these accounting policies is included in Note 1, Significant Accounting Policies, and Note 2, Business Combinations, to the Company’s audited consolidated financial statements in Item 8 of this Form 10-K.

Goodwill. We record all acquired assets and liabilities at fair value, which is an estimate determined by the use of internal and external valuation techniques. As part of purchase accounting, we typically acquire goodwill as part of the purchase price, which is subject to ongoing periodic impairment tests.

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, 2025 and 2024 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 2025, 2024 or 2023.

Refer to “—Financial Condition—Goodwill and Core Deposit Intangible Assets” and Note 5 of the consolidated financial statements for further discussion.

EXECUTIVE OVERVIEW

Strategic Overview. Our long-term strategy is anchored in three clear priorities: Running the Bank, Evolving the Bank, and Growing the Bank. Together, these priorities guide our actions, align our investments, and position the Company to deliver sustainable performance and long-term shareholder value.

•Running the Bank is about delivering consistent, reliable results by building on our core strengths and disciplined foundation. As we pursue change and growth, maintaining a strong operating framework remains paramount. This includes investing in and strengthening our corporate culture; driving toward top-quartile employee engagement and exceptional customer experiences through our “One Bank” approach; honoring our commitment to the communities we serve; and maintaining balance-sheet strength across interest rate risk, liquidity, asset quality, and capital. This focus provides the stability and resilience necessary to support our strategic ambitions.

•Evolving the Bank enables us to respond to a dynamic marketplace with agility and innovation. We are advancing our digital agenda across both customer and employee experiences to increase adoption, productivity, and efficiency. At the same time, we are repositioning our retail franchise to meet changing customer needs and expectations. Central to this evolution is the development of a high-touch, team-based operating model that leverages specialized expertise and places the customer at the center of every interaction.

•Grow the Bank focuses on expanding our customer base and deepening relationships by leveraging technology, scalable capabilities, and local market expertise. We pursue both organic and inorganic growth opportunities across our footprint. Organically, we see significant opportunity to scale our commercial franchise in our Southern Maine and New Hampshire growth markets through targeted hiring and the development of internal talent. Inorganically, we continue to evaluate merger and acquisition opportunities that offer compelling strategic and financial benefits, as demonstrated by our acquisition of Northway Financial, Inc., the holding company of Northway Bank, completed on January 2, 2025.

2025 Overview. On January 2, 2025, we completed our acquisition of Northway, which significantly increased our presence in New Hampshire by adding 17 branches and over 100 new employees. In mid-March 2025, we completed the full integration of the two banks and began realizing the combined organization’s full financial potential through the execution of synergies across employees, technology, software and vendor contracts. The integration of operations, systems, and teams enabled us to leverage the strengths of both institutions more effectively, resulting in meaningful improvements in scale, operating efficiency, and revenue‑generating capacity. As our post‑merger performance began to reflect the benefits of a larger balance sheet, a broader customer base, and an expanded geographic footprint, we delivered annual net income of $65.2 million and diluted EPS of $3.84 for 2025, compared to $53.0 million and $3.62, respectively, in 2024. On a non-GAAP basis, we

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reported annual adjusted net income of $74.4 million and diluted EPS of $4.39 for December 31, 2025, an increase of 39% and 20%, respectively, over 2024.

Throughout 2025, we executed several initiatives to improve our net interest margin. These actions, together with the Federal Reserve’s 75‑basis‑point reduction in the federal funds rate during the second half of the year, contributed to a meaningful increase in our net interest margin, from 3.04% for the first quarter of 2025 to 3.29% for the fourth quarter of 2025. Excluding the impact of purchase accounting accretion income, our non-GAAP, core net interest margin also increased significantly from 2.68% for the first quarter of 2025 to 2.92% for the fourth quarter of 2025. The steady improvement in our net interest margin throughout 2025, resulted in a net interest margin of 3.17% for the year ended December 31, 2025, compared to 2.46% for the year ended December 31, 2024.

The completion of the Northway acquisition and successful execution of our cost take-out strategies, as well as an improving net interest margin throughout 2025, drove significant improvement in the Company’s profitability metrics compared to 2024. We believe the Company is well-positioned for 2026, highlighted by the strength of its reported fourth quarter financial metrics, which included a return on average assets of 1.28%, a return on average equity of 13.01%, and a non-GAAP return on average tangible equity of 19.06%.

2025 Highlights. Our highlights for 2025 include:

Completed Northway Acquisition and Integration - Successfully completed the acquisition of Northway on January 2, 2025. Following the integration in mid-March 2025 and the realization of cost synergies across the combined organization, the Company delivered record quarterly net income in both the third and fourth quarters of 2025.

Improving Profitability – In 2025, total revenues (sum of net interest income and non-interest income) reached $255.8 million, an increase of 45% over 2024, while non-interest expense for 2025 was $154.8 million, an increase of 38% over 2024. The Company’s 2025 performance resulted in strong operating leverage generation and improvement in each of our profitability metrics, which can be seen in the financial highlights table on the following page.

Strong Asset Quality – Key credit quality metrics in both commercial and consumer portfolios remained resilient throughout 2025, headlined by non-performing assets of 0.10% of total assets and past due loans of 0.16% of total loans at December 31, 2025. Net charge-offs increased to 0.31% to average loans for 2025, compared to 0.03% for 2024, driven by two charge-offs in our commercial portfolio. The Company considers the two charge-offs in 2025 to be isolated incidents and does not believe they represent a systematic trend within the commercial portfolio.

Strong Capital Position – At December 31, 2025, all of our regulatory capital ratios were well in excess of regulatory capital requirements. Our capital and loan reserve levels, along with our strong credit quality position us for continued success.

Customer Experience Strength– We use net promoter score (“NPS”) to continuously measure and improve customer experience across our retail franchise. Our 2025 aggregate consumer NPS of 68 across Maine remained consistent with prior year and underscores strong customer advocacy relative to industry benchmarks.

Strong Employee Engagement – We measure employee engagement annually through a global, independent third party survey. In 2025, 92% of our employees participated in the confidential survey, reflecting strong engagement across the organization. The Company’s overall engagement score ranked in the 73rd percentile relative to the third-party’s global benchmark, further underscoring the strength of our culture and employee commitment.

Continued Commitment to our Communities – In 2025, we marked Camden National Bank’s 150th anniversary, reflecting a long-standing commitment to the communities we serve. Across our Maine and New Hampshire markets, we continue to support local communities through lending activities, deposit products designed to meet community needs, direct charitable contributions and active employee volunteerism, reinforcing our role as a trusted financial partner and community steward.

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RESULTS OF OPERATIONS

Net Interest Income and Net Interest Margin

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). Net interest income, which is our largest source of revenue, accounted for 79%, 75% and 81% of total revenues for the years ended 2025, 2024 and 2023, respectively. Net interest income is affected by factors including, but not limited to, changes in interest rates, loan and deposit pricing strategies and competitive conditions, loan prepayment speeds, the volume and mix of interest-earning assets and interest-bearing liabilities, and the level of non-performing assets.

Net Interest Income. Net interest income on a fully-taxable equivalent basis for the year ended December 31, 2025 was $204.6 million, an increase of 54% from 2024.

Interest income on a fully-taxable equivalent basis for 2025 totaled $322.0 million, representing an increase of $71.8 million, or 29%, compared to 2024, primarily driven by interest-earning assets yield expansion of 37 basis points to 4.99% for the year ended December 31, 2025, and an increase in average interest-earning assets of $1.0 billion, or 19% as of December 31, 2025, which was driven by the Northway acquisition on January 2, 2025. As part of the Northway acquisition, the Company acquired total loans of $775.7 million and investments of $230.0 million. For the year ended December 31, 2025, the Company recognized net fair value mark accretion from the purchase accounting of $20.5 million within interest income, which was made up of $17.0 million of fair value mark accretion on loans and $3.5 million of fair value mark accretion on investments. Additionally, between periods the Company’s yield on interest-earning assets continued to improve organically, contributing to the growth in net interest income, due to the continued reinvestment of cash flows from lower yielding interest-earning assets into new loan originations and investments at prevailing market interest rates.

Interest expense for 2025 increased $294,000, or less than 1%, compared to 2024, despite the increase in average funding liabilities of $1.0 billion, or 20%, which was driven by the Northway acquisition, due to the decrease in our average cost of funds between periods of 38 basis points to 1.90% for the year ended December 31, 2025. The decrease in our average cost of funds between periods reflects the change in the interest rate environment and our ability to lower deposit costs as the Federal Reserve lowered its Federal Funds Rate, and the benefit of adding Northway’s low-cost deposit franchise to the Company’s balance sheet.

Net Interest Margin. Net interest margin is calculated as net interest income on a fully-taxable equivalent basis as a percentage of average interest-earning assets. Our net interest margin on a fully-taxable equivalent basis was 3.17% for the year ended December 31, 2025, compared to 2.46% for 2024. On a non-GAAP basis, adjusted for fair value market accretion income recognized from purchase accounting, our core net interest margin was 2.82% for the year ended December 31, 2025, compared to 2.46% for 2024.

The following table presents, for the periods noted, average balances, interest income, interest expense, and the corresponding average yields earned and rates paid, as well as net interest income, net interest rate spread and net interest margin:

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(1)    Reported average balances are calculated on a daily basis.

(2)    Reported on a tax-equivalent basis calculated using a 21% tax rate, including certain commercial loans.

(3)    Non-accrual loans and loans held for sale are included in total average loans.

(4)    This is a non-GAAP measure. Please see "Non-GAAP Financial Measures and Reconciliation to GAAP” for additional information.

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The following table presents certain information on a fully-taxable equivalent basis regarding changes in interest income and interest expense for the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes attributable to rate and volume. The (a) changes in volume (change in volume multiplied by prior year's rate), (b) changes in rates (change in rate multiplied by current year's volume), and (c) changes in rate/volume (change in rate multiplied by the change in volume), which is allocated to the change due to rate column.

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Net interest income included the following for the periods indicated:

The Company's consolidated financial statements and the notes to the consolidated financial statements presented within have been prepared in accordance with GAAP, which requires the measurement of the financial position and operating results in terms of historical dollars and, in some cases, current fair values without considering changes in the relative purchasing power of money over time due to inflation. Unlike many industrial companies, substantially all of our assets and virtually all of our liabilities are monetary in nature. As a result, interest rates have a more significant impact on our performance than the general level of inflation. Over short periods of time, interest rates and the yield curve may not necessarily move in the same direction or in the same magnitude as inflation.

Provision (Credit) for Credit Losses

The provision (credit) for credit losses was made up of the following components for the periods indicated:

Provision for loan losses. For the year ended December 31, 2025, the Company recorded a provision for loan losses of $22.0 million. The provision primarily reflects the impact of net charge‑offs totaling $16.1 million during the period, driven principally by a $10.7 million partial charge‑off on a syndicated commercial loan participation and a $3.0 million partial charge‑off on a non‑owner‑occupied commercial real estate loan. The recognition of these charge‑offs required the Company to record an incremental $12.7 million in provision for loan loss expense during the year. In addition, in connection with the acquisition of Northway, the Company recorded a $6.3 million provision for loan losses and ACL on loans for the acquired loans that did not meet the criteria to be classified as purchased credit deteriorated (“PCD”) during 2025.

Provision for credit losses on off-balance credit exposures. At December 31, 2025, the ACL on off-balance sheet credit exposures was $3.1 million, as compared to $2.8 million as of December 31, 2024. The Company recorded a provision for credit losses on off-balance sheet credit exposures of $258,000. The 2025 provision was driven by the increase in unfunded credit lines of $43.2 million and the increase in the residential and commercial pipelines of $47.7 million between periods, primarily due to the acquisition of Northway in 2025.

Provision for HTM debt securities: For the year ended December 31, 2025 the Company did not record any provision on HTM debt securities. In the first quarter of 2024, the Company sold a corporate bond issued by Signature Bank that the Company wrote off in 2023 and recovered proceeds of $910,000.

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Non-Interest Income

The following table sets forth information regarding non-interest income for the periods indicated:

(1)     Revenue is the sum of net interest income and non-interest income.

Debit card income represents the interchange fees earned from debit card transactions of our business and consumer checking account customers, and the annual incentive bonus received from our network provider. The increase in 2025, compared to 2024, was primarily driven by the Northway acquisition, and the resulting addition of approximately 28,000 new debit card customers.

Service charges on deposit accounts represents the fees earned from providing various services to deposit customers, including overdraft, normal fees for servicing deposit accounts, and cash management fees for business customers. The increase in 2025, compared to 2024, was primarily driven by the Northway acquisition, and the resulting addition of approximately 50,000 customer accounts.

Income from fiduciary services represents the fees earned for investment advisory and trust services provided by Camden National Wealth Management. The fees earned are primarily a percentage of our clients' assets under management. Assets under management increased 9% during 2025 to $1.3 billion as of December 31, 2025.

Brokerage and insurance commissions represent the fees earned for brokerage services, investment advisory and insurance services provided by the Bank, doing business as Camden Financial Consultants. Assets under administration grew 22% during 2025 to $1.1 billion as of December 31, 2025, driven by overall market performance and the addition of a new team member.

Mortgage banking income, net is generated through the sale of residential mortgage loans to secondary market investors and also includes income recognized upon the sale of residential mortgages in which we maintain the servicing rights creating a mortgage servicing asset, net of related amortization of the capitalized mortgage servicing asset. Our practice has been to sell the servicing rights for residential mortgages originated, except for certain third party relationships that require the Company to service the loan.

The increase in mortgage banking income, net for the year ended December 31, 2025 compared to 2024, was driven by the increase in net gains recognized on residential mortgage loan sales during the period. For the year ended December 31, 2025, we sold $242.4 million of our originated residential mortgages, compared to $221.9 million sold during the same period in 2024.

Bank-owned life insurance represents the change in cash surrender value of the Company's various BOLI policies in place for certain current and former officers of the Company and Bank. The change in cash surrender value reflects the performance of the underlying investments of the policies. The increase in 2025, compared to 2024, was driven by market performance of the underlying investments. BOLI policies for 2025 included the addition of one policy as part of the Northway acquisition. The underlying investments on the acquired policy are tied to the equity markets and are more susceptible to market volatility than policies with more conservative underlying investments.

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Net loss on sale of securities represents the net loss recognized upon the sale of investment securities. We did not sell any investment securities during 2025 or 2024.

Other Income includes third party merchant and credit card commissions, customer loan swap fees and other miscellaneous fees and net gains on equity securities.

Non-Interest Expense

The following table sets forth information regarding non-interest expense for the periods indicated:

Salaries and employee benefits includes employee wages, commissions, incentives, equity compensation, employer-related taxes, insurance benefits, and certain other employee-related costs, net of direct employee-related costs incurred for loan originations. The increase in salaries and employee benefits expense for 2025 compared to 2024 was driven by the Northway acquisition, which added approximately 100 new employees, and an increase in performance incentive accruals of $1.7 million between periods due to Company financial performance.

Furniture, equipment and data processing includes depreciation expense of capitalized furniture, equipment and data-related costs, and ongoing system and other data processing costs, including outsourced solutions. The increase in furniture, equipment and data processing expense for 2025 compared to 2024 was due to the Northway acquisition, and our continued investment in customer‑facing digital technology platforms during 2025. These investments included enhancements to our digital suite of products offered to customers and upgrades to information security and resiliency systems.

Net occupancy costs include building and property costs associated with the operation of our branches, loan production offices and service centers, including, but not limited to, rent, depreciation, maintenance and related taxes, net of rental income earned from the lease of office space. The increase in net occupancy costs for 2025 compared to 2024 was primarily driven by the Northway acquisition. At December 31, 2025, the Company had 72 branches, compared to 56 as of December 31, 2024.

Merger and acquisition costs include transaction‑related expenses such as personnel termination costs, consulting and other professional fees, contract termination and system conversion costs, and other direct acquisition‑related charges. For the years ended December 31, 2025 and 2024, the Company incurred $9.3 million and $1.2 million, respectively, in costs associated with the Northway acquisition.

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The following table summarizes Merger-related costs incurred for the year ended December 31, 2025 and 2024:

Debit card expense is the cost incurred for the generation of debit card income, including third party switch network provider fees and related data transmission costs, and plastic card costs for the generation of debit cards for checking account customers. The increase in debit card expense for 2025 compared to 2024 was primarily driven by the Northway acquisition and the resulting addition of approximately 28,000 new debit card customers.

Amortization of CDI assets represents the periodic amortization of the Company’s CDI assets arising from the Northway acquisition. The CDI assets recorded in connection with the Northway acquisition totaled $48.1 million, and we estimate the useful life of these CDI assets to be ten years. Refer to Notes 2 and 5 of the consolidated financial statements for additional information.

Consulting and professional fees include third-party consulting services and other professional fees, such as audit and tax services, legal services, and Company and Bank director fees. The increase in consulting and professional fees for 2025 compared to 2024 resulted from the increase in director fees for, and increases due to increases from the Northway acquisition.

Regulatory assessments are the costs incurred and paid to various regulatory agencies, including the FDIC and OCC. Regulatory assessment fees are based on a number of factors, including but not limited to, asset growth, regulator risk assessment and positive or negative trends specific to the financial institution. The increase in regulatory assessment fees for 2025 compared to 2024 was driven by the Northway acquisition and increase in the Company’s total assets.

OREO and collection costs, net include the costs associated with OREO, collection and foreclosure efforts for the Company's loans.

Other expenses include employee-related costs, such as certain SERP and other postretirement benefits expenses; hiring, training, education, meeting and business travel costs; donations and marketing costs; postage, freight and courier costs; and other expenses. The increase in other expenses for 2025 compared to 2024 was primarily attributable to the Northway acquisition and an increase in marketing costs as we support new markets in New Hampshire, costs associated with a former Northway employee’s supplemental retirement plan, and increases in various operating expenses driven by the increased number of locations, customers and employees following the acquisition.

Income Tax Expense

Income tax expense for the years ended December 31, 2025 and 2024 was $13.5 million and $12.5 million, respectively, and our effective income tax rate was 17.2% for 2025 and 19.0% for 2024. The decrease in the Company's effective income tax rate between years was primarily driven by a one-time $2.4 million decrease in income tax expense associated with the remeasurement of the Company’s deferred tax assets and liabilities upon completion of the Northway acquisition, which increased our tax exposure in Massachusetts and New Hampshire. The remeasurement resulted in an increase to the Company’s deferred tax rate in 2025 to 22.8% from 21.5% in 2024.

The Company's deferred tax assets were $51.1 million and $40.0 million at December 31, 2025 and 2024, respectively. The increase in deferred tax assets during 2025 was primarily driven by the net deferred tax assets that were created through purchase accounting as a result of the Northway acquisition, and the aforementioned $2.4 million increase associated with the remeasurement of Company’s deferred tax assets and liabilities.

Although not anticipated as of December 31, 2025, should the Company realize a loss on these investments, the loss would be characterized as an ordinary loss for income tax purposes and not as a capital loss, and thus would not carry restrictions on use of any such loss.

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We continuously monitor and assess the need for a valuation allowance on our deferred tax assets, and we determined that no valuation allowance was necessary as of December 31, 2025 or December 31, 2024.

Refer to “—Financial Condition—Investments,” and Note 3 of the consolidated financial statements for further discussion of investments.

Refer to Note 20 of the consolidated financial statements for further discussion of income taxes and related deferred tax assets and liabilities.

2024 Operating Results as Compared to 2023 Operating Results

Results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 can be found in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s 2024 annual report on Form 10-K filed with the SEC on March 7, 2025.

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FINANCIAL CONDITION

Cash and Cash Equivalents

Total cash and cash equivalents were $97.5 million as of December 31, 2025, compared to $215.0 million at December 31, 2024. As part of the Northway acquisition, the Company acquired $48.3 million of cash, which was utilized to prepay all $45.0 million of Federal Home Loan Bank of Boston (“FHLBB”) borrowings assumed from Northway, largely offsetting the cash obtained through the acquisition. The Company continues to actively manage its cash balances. Refer to Note 2 of the consolidated financial statements for additional information on the assets and liabilities acquired from Northway.

Included within the Company’s cash and cash equivalents balances at December 31, 2025 and 2024, was cash held in escrow by the FHLBB as collateral posted by the counterparties for our derivatives in a net asset position at each reporting date totaling $7.2 million and $13.2 million, respectively. We and the counterparty manage these cash accounts daily. Refer to Notes 13 and 14 of the consolidated financial statements for additional detail on the Company’s derivatives and collateral.

Investments

The Company utilizes the investment portfolio to manage liquidity, interest rate risk, and regulatory capital, as well as to take advantage of market conditions to generate returns without undue risk. At December 31, 2025 and 2024, the Company’s investment portfolio generally consisted of MBS, CMO, municipal and corporate debt securities, FHLBB and FRB common stock, and mutual funds held in a rabbi trust for purposes of Company executive and director nonqualified retirement plans. We designate our debt securities as AFS or HTM based on our intent and investment strategy and they are carried at fair value and amortized cost, respectively. Our FHLBB and FRB common stock is carried at cost, and our mutual fund investments are carried at fair value. At December 31, 2025 and 2024, total investments were 21% and 20%, respectively, of total assets.

In 2022, we transferred securities from AFS to HTM to help manage our capital position in a rising interest rate environment. The securities were reclassified at fair value at the time of the transfer, which was a non-cash transaction. At December 31, 2025, the net unrealized losses on the transferred securities reported within AOCI were $36.7 million, net of a deferred tax asset of $10.6 million, and the weighted-average life on these securities was 7.3 years. At December 31, 2024, the net unrealized losses on the transferred securities reported within AOCI were $41.8 million, net of a deferred tax asset of $11.4 million and the weighted-average of these securities was 7.9 years.

At December 31, 2025 and 2024, the Company's investments portfolio totaled $1.4 billion and $1.1 billion, respectively, representing an increase of $308.7 million, or 27%, during 2025. The increase was driven by the addition of $230.0 million of investments, net of purchase accounting adjustments, from the Northway acquisition on January 2, 2025, and included debt securities totaling $227.4 million that were designated as AFS and $2.5 million of FHLBB and other corresponding banking relationship common stock. The other drivers for the net change in total investments during 2025 were:

•The sale of $56.4 million of acquired Northway debt securities shortly after the acquisition date to restructure the

combined investment portfolio. These debt securities were sold at fair value, and, thus, no gain or loss was recognized

upon sale;

•The purchase of $236.7 million of debt securities that we designated as AFS, and the purchase of $5.0 million of

subordinated corporate debt securities of another regional financial institution that we designated as HTM;

•Pay downs, calls and maturities of $152.7 million;

•Net amortization and accretion of $8.4 million; and

•The change in the fair value of the Company’s AFS debt securities of $37.0 million.

Our AFS debt securities portfolio, which comprised 64% and 52% of our investment portfolio at December 31, 2025 and 2024, respectively, was carried at fair value using level 2 valuation techniques. Refer to Notes 1 and 22 of the consolidated financial statements for further details on the Company's fair value techniques.

The AFS and HTM debt securities portfolio has limited credit risk due to its composition, which includes securities backed by the U.S. government and government-sponsored agencies, and corporate and municipal bonds that are highly rated by nationally recognized rating agencies. At December 31, 2025 and 2024, the book value of U.S. government and government-sponsored agencies represented approximately 93% and 91%, respectively, of the AFS and HTM debt securities portfolio. The book value of corporate and municipal bonds carrying a credit rating of “AA” or higher at each of December 31, 2025 and 2024 and was 4% and 5%, respectively, of the AFS and HTM debt securities.

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Our other investments on the consolidated statements of condition consist of FHLBB, FRB and other correspondent bank common stock. These investments are carried at cost. We are required to maintain a certain level of investment in FHLBB stock based on our level of FHLBB advances, and maintain a certain level of investment in FRB common stock based on the Bank's capital levels. As of December 31, 2025 and 2024, our investment in FHLBB stock totaled $17.7 million and $17.1 million, respectively, and our investment in FRB stock was $8.7 million and $5.4 million, respectively.

Our investments in mutual funds are designated as trading securities and carried at fair value. These investments are held within a rabbi trust and will be used for future payments associated with the Company’s Executive and Director Deferred Compensation Plan. These investments are carried at fair value using level 1 valuation techniques.

The following table sets forth the carrying value of the Company’s investments portfolio along with the percentage distribution as of the dates indicated:

We continuously monitor and evaluate our investment securities portfolio to identify and assess risks within our portfolio, including, but not limited to, the impact of the current rate environment and the related prepayment risk, and credit ratings. The overall mix of debt securities at December 31, 2025 compared to December 31, 2024 remains relatively unchanged and well positioned to provide a stable source of cash flow. The duration of our debt investment securities portfolio at December 31, 2025 was 4.9 years, compared to 5.2 years at December 31, 2024. The weighted average life of our debt securities portfolio at December 31, 2025 was 6.7 years, compared to 7.0 years at December 31, 2024.

The Company’s AFS debt securities that are in an unrealized loss position are assessed to determine if an allowance should be recorded or if a write-down is required. As of and for the years ended December 31, 2025, 2024 and 2023, we did not record

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any allowances or write-down any of our AFS debt securities in an unrealized loss position. Refer to Note 1 of the consolidated financial statements for further discussion of our practices and policies, and refer to Note 3 of the consolidated financial statements for additional details of our assessment of the allowance for AFS investments as of December 31, 2025 and 2024.

We assess our HTM debt securities each reporting period to determine if an allowance should be recorded or if a write-down is required. In the first quarter of 2023, we wrote-off a $1.8 million corporate bond issued by Signature Bank due to Signature Bank's failure through provision expense on the consolidated statements of income. This corporate bond was designated as HTM and previously carried no ACL. In January 2024, we sold the Signature Bank security and recovered $910,000. We completed a review of our HTM investment portfolio as of December 31, 2025 and 2024, and concluded that no ACL was warranted on any bonds at this time. Refer to Note 1 of the consolidated financial statements for further discussion of our practices and policies, and refer to Note 3 of the consolidated financial statements for additional details of our assessment of the allowance for HTM investments as of December 31, 2025 and 2024.

The fair value and book value of the Company's corporate bonds and municipal securities as of December 31, 2025 and 2024 was as follows:

At December 31, 2025 and 2024, municipal bonds were 4% and 5%, respectively, of the book value of the total bond portfolio. At December 31, 2025 and 2024, all municipal bonds carried an investment-grade credit rating.

At December 31, 2025 and 2024, corporate bonds were 3% of the book value of the total bond portfolio. At December 31, 2025 and 2024, corporate bonds with a book value of $26.0 million and $25.9 million, or 68% and 70% of the corporate bond portfolio, carried an investment-grade credit rating. The remaining corporate bonds with a book value of $12.2 million and $11.2 million at December 31, 2025 and 2024, respectively, were non-rated corporate bonds of community banks within our markets. As of December 31, 2025, the corporate bond portfolio was made up of 17 different companies, which included 15 different banks. The banks in the portfolio range from the largest U.S. banks to community banks, with 34% of our exposure as of December 31, 2025, being to global systemically important banks, or "G-SIBs." We continue to monitor and analyze the performance of our corporate bond portfolio.

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The following table presents the book value and fully-taxable equivalent weighted-average yields of debt investments by contractual maturity and the carrying value of other investments, for the periods indicated. Actual maturities of debt investments may differ from contractual maturities because borrowers may have the right to call or prepay.

(1)    Weighted average is calculated by dividing the book value by the book value times tax yield.

Loans

The following table sets forth the composition of our loan portfolio at the dates indicated, as well as the change during                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             2025: