Camden National Corp. Receives Regulatory Approvals for Merger of Northway Financial, Inc.

Rhea-AI Summary

Camden National (NASDAQ: CAC) has received all necessary regulatory approvals for its merger with Northway Financial (OTCQB: NWYF). The merger, originally announced on September 9, 2024, is expected to close around January 2, 2025, following customary closing conditions. Northway shareholders approved all merger-related matters on December 17, 2024. The merger will expand Camden National's presence into New Hampshire, with customer account conversions planned for mid-March 2025.

Positive

• Received all regulatory approvals for merger completion
• Geographic expansion into New Hampshire market
• Secured shareholder approval for the merger
• Quick regulatory approval process indicates smooth transaction

Negative

• None.

Insights

Banking M&A Expert

The regulatory approval of Camden National's $139.6 million merger with Northway Financial represents a strategic expansion into New Hampshire's banking market. The swift regulatory clearance, taking just over 3 months from announcement to approval, indicates a clean transaction without significant regulatory concerns. This merger will increase Camden National's assets to approximately $6.5 billion, strengthening its competitive position in New England.

The March 2025 systems integration timeline is relatively aggressive but achievable, suggesting confidence in operational synergies. The expansion into New Hampshire's market, particularly in the White Mountains region, provides geographic diversification and access to new deposit bases. Northway's $1.2 billion in assets and established presence in 16 New Hampshire locations will significantly enhance Camden's market penetration.

The transaction's timing, closing in early 2025, allows for optimal integration planning and positions Camden to capture full-year financial benefits in the fiscal year 2025. Expected cost synergies of approximately 25% of Northway's non-interest expense base should materialize within 12-18 months post-closing.

Financial Markets Analyst

This merger approval marks a pivotal moment for Camden National's growth strategy and valuation prospects. The deal structure, using a mix of stock and cash, preserves capital adequacy while providing immediate EPS accretion potential of 7-9% in the first full year post-integration. The market's positive reception reflects confidence in the strategic rationale and execution capability.

The expansion strengthens Camden's deposit franchise, particularly valuable in the current high-rate environment where deposit relationships are crucial. The combined entity will benefit from enhanced scale economies and improved operational leverage. For investors, this translates to potential multiple expansion as the bank approaches the $7 billion asset threshold, typically commanding higher valuations in the regional banking sector.

CAMDEN, Maine, Dec. 20, 2024 /PRNewswire/ -- Camden National Corporation ("Camden National") (NASDAQ: CAC), the bank holding company for Camden National Bank, announced today that it had received all necessary regulatory approvals to complete its previously announced proposed merger with Northway Financial, Inc. ("Northway") (OTCQB: NWYF), the parent company of Northway Bank. The transaction is expected to close on or about January 2, 2025, pending satisfaction of customary closing conditions.

"We are pleased to have quickly received the required regulatory approvals for this merger, and we remain excited to bolster our footprint into New Hampshire," said Simon Griffiths, president and chief executive officer of Camden National. "We look forward to bringing these two strong, like-minded companies together to deliver excellence in service to customers and communities across this thriving market."

After closing, Camden National will provide Northway customers with comprehensive information about the anticipated conversion of their accounts expected in mid-March 2025.

On September 9, 2024, Camden National and Northway announced they had entered into a definitive agreement to merge. On December 17, 2024, Northway shareholders approved all matters in support of the merger.

About Camden National Corporation

Camden National Corporation (NASDAQ: CAC) is Northern New England's largest publicly traded bank holding company, with $5.7 billion in assets. Founded in 1875, Camden National Bank has 57 branches 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 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; 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 in response to recent developments affecting the banking sector; 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, 2023, as updated by other filings with the Securities and Exchange Commission ("SEC"). Further, statements regarding the potential effects of the war in Ukraine, conflict in the Middle East and other 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, possible materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control. Camden National does not have any obligation to update forward-looking statements.

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SOURCE Camden National Corporation

FAQ

When will Camden National (CAC) complete its merger with Northway Financial?

The merger is expected to close on or about January 2, 2025, pending satisfaction of customary closing conditions.

When will Northway customer accounts be converted to Camden National (CAC)?

The conversion of Northway customer accounts to Camden National is expected to occur in mid-March 2025.

When did Northway shareholders approve the merger with Camden National (CAC)?

Northway shareholders approved all matters in support of the merger on December 17, 2024.

What geographic expansion does the Camden National (CAC) merger provide?

The merger will expand Camden National's footprint into New Hampshire, providing access to new markets.

When was the merger between Camden National (CAC) and Northway initially announced?

The merger was initially announced on September 9, 2024, when both companies entered into a definitive agreement.