Camden National Profile
Camden National Corporation operates as the bank holding company for Camden National Bank that provides financial products and services.
The primary business of the company and the bank is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers. The company, through the bank, provides a broad array of banking and other financial services, including wealth management and trust services, brokerage, investment advisory and insurance services, to consumer, business, non-profit and municipal customers.
Camden National Bank
The bank is a national banking association chartered under the laws of the United States. The bank provides an array of banking and other financial services to consumer, institutional, municipal, non-profit and commercial customers. The bank has branches in Maine's 16 counties, in New Hampshire, including a branch in Portsmouth and a commercial loan production office in Manchester, a mortgage loan production office in Braintree, Massachusetts, and ATMs. The bank optimizes its in-person professional financial guidance with state-of-the-art technology, delivered through sophisticated digital channels. These digital products empower customers to bank anywhere at any time, including but not limited to, online and mobile banking; MortgageTouch, the company’s easy-to-use online platform for consumer borrowers; BusinessTouch, its online loan application system with instant approval, making borrowing faster and easier for small businesses; and TreasuryLink, its secure online platform designed to offer advanced cash management, monitoring capabilities and controls for commercial customers.
The bank offers comprehensive wealth management and trust services, including investment advisory services, through its wealth management team, doing business as Camden National Wealth Management, and brokerage, investment advisory, insurance and financial planning services through its financial consulting team, doing business as Camden Financial Consultants.
Camden National Wealth Management provides a broad range of fiduciary and asset management services to both individual and institutional clients. The wealth management services provided by Camden National Wealth Management complement the services provided by the bank, offering high net worth individuals and families, businesses and not-for profit customers investment management, financial planning and trustee services.
Camden Financial Consultants is in the business of helping clients meet all of their financial needs. Camden Financial Consultants provides full-service brokerage and insurance and its financial offerings include college, retirement, and estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities.
Healthcare Professional Funding Corporation
Healthcare Professional Funding Corporation (HPFC) is a wholly-owned subsidiary of the bank. HPFC provided specialized lending across the U.S. to dentists, optometrists and veterinarians. Effective February 19, 2016, HPFC's continued lending operations ceased and no further loans have been originated since that date.
Loans
Commercial Real Estate - Non-Owner-Occupied: Non-owner-occupied commercial estate loans are investment properties in which the primary source for repayment of the loan by the borrower is derived from rental income associated with the property or the proceeds of the sale, refinancing, or permanent refinancing of the property. Non owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, multi-family residential, commercial/retail office space, industrial/warehouse space, hotels, assisted living facilities and other specific use properties. Also included within the non-owner-occupied commercial real estate loan segment are construction projects until they are completed.
Commercial Real Estate - Owner-Occupied: Generally, owner-occupied commercial real estate loans are properties that are owned and operated by the borrower, and the primary source for repayment is the cash flow from the ongoing operations and activities conducted by the borrower's business. Owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, commercial/retail office space, restaurants, educational and medical practice facilities, and other specific use properties.
The U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP): SBA PPP loans are unsecured, fully-guaranteed commercial loans backed by the SBA, issued to qualifying small businesses as part of federal stimulus issued in response to the COVID-19 pandemic. Loans made under the program have terms of two or five years and are to be used by the borrower to offset certain payroll and other operating costs, such as rent and utilities. The loan and accrued interest, or a portion thereof, is eligible for forgiveness by the SBA should the qualifying small business meet certain conditions. These loans were originated under the guidance of the SBA, which has been subject to change. Effective May 31, 2021, the SBA PPP loan program ended and the company is no longer originating loans under this program.
Residential Real Estate: Residential real estate loans consist of loans secured by one-to four-family properties, including for investment purposes. The company generally retains in its portfolio adjustable rate mortgages, fixed rate mortgages with original terms of 30 years or less, and jumbo/non-conforming residential mortgages.
As part of the company’s overall asset/liability management strategy, it sells residential mortgages it originates to secondary market participants to manage its interest rate risk position and generate non-interest income. Factors the company considers in determining which loans to sell, include, but are not limited to, current and future outlook of the interest rate environment; loan terms, including loan size, interest rate, fixed or variable and maturity date; and estimated prepayment speed.
Consumer and Home Equity: Consumer and home equity loans are originated for a wide variety of purposes designed to meet the needs of the company’s customers. Consumer loans include overdraft protection, automobile, boat, recreational vehicle, and mobile home loans, home equity loans and lines, and secured and unsecured personal loans.
Deposits
The company receives checking, savings and time deposits primarily from customers located within its geographic market area. Other forms of deposits include brokered deposits and deposits with the Certificate of Deposit Account Registry System.
Investment Securities
As of December 31, 2022, the company’s securities included obligations of states and political subdivisions; mortgage-backed securities issued or guaranteed by the U.S. government-sponsored enterprises; collateralized mortgage obligations issued or guaranteed by the U.S. government-sponsored enterprises; and subordinated corporate bonds.
Supervision and Regulation
As a bank holding company, the company is subject to regulation, supervision and examination by the Board of Governors of the Federal Reserve System (FRB) under the Bank Holding Company Act of 1956, as amended (BHCA). As a national bank, the bank is subject to primary regulation, supervision and examination by the Office of the Comptroller of the Currency (OCC).
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the company is required to serve as a source of financial strength for the bank.
The bank is subject to regulation, supervision, and examination by the OCC. Additionally, the Federal Deposit Insurance Corporation (FDIC) has secondary supervisory authority as the insurer of the bank’s deposits. The bank is also subject to regulations issued by the Consumer Financial Protection Bureau (CFPB), as enforced by the OCC.
The bank’s deposits are subject to deposit insurance assessments to maintain the Federal Deposit Insurance Fund (DIF). The deposit obligations of the bank are insured by the FDIC’s DIF up to the applicable limits.
The CRA (Community Reinvestment Act) requires the OCC to evaluate the bank’s performance in helping to meet the credit needs of the entire communities it serves, including low and moderate-income neighborhoods, consistent with its safe and sound banking operations, and to take this record into consideration when evaluating certain applications. The bank has an ‘Outstanding’ CRA rating resulting from its 2021 CRA performance evaluation.
The company and the bank are subject to risk-based capital requirements and rules issued by the FRB, the OCC and the FDIC (the Capital Rules) that are based on the Basel Committee on Banking Supervision’s (Basel Committee) framework for strengthening capital and liquidity regulation (referred to as Basel III).
The company and the bank are subject to federal and state laws designed to protect consumers and prohibit unfair or deceptive business practices, including the Equal Credit Opportunity Act, the Fair Housing Act, the Home Ownership Protection Act, the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), the Gramm-Leach-Bliley Act of 1999 (GLBA), the Truth in Lending Act, the CRA, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act and various state law counterparts.
Sections 23A and 23B of the Federal Reserve Act and the FRB’s Regulation W restrict transactions between a bank and its affiliates, including its parent bank holding company. The bank is subject to these restrictions.
Pursuant to the Fair and Accurate Credit Transactions Act of 2003 (FACT Act), the bank must develop and implement a written identity theft prevention program to detect, prevent, and mitigate identity theft in connection with the opening of certain accounts or certain existing accounts. The company continues to evaluate the effect of the Adjustable Interest Rate (LIBOR) Act (LIBOR Act) and its implementing regulations on the company’s London Interbank Offered Rate (LIBOR)-linked contracts.
History
Camden National Corporation was founded in 1875. The company was incorporated in 1984.
