Camden National expands Northern New England presence with Northway Financial merger

Camden National Corporation, the parent company of Camden National Bank, has announced the successful completion of its merger with Northway Financial, Inc., the parent company of Northway Bank. This strategic union, valued at approximately $86.6 million in an all-stock transaction, positions Camden National as a premier publicly traded bank in Northern New England, expanding its footprint across Maine and New Hampshire.

What Does the Merger Mean for Northern New England?

The merger enhances Camden National’s reach and operational scale, creating a bank with total assets of $7.0 billion, $5.1 billion in loans, $5.5 billion in deposits, and $2.0 billion in assets under administration (AUA). The combined company will operate under the Camden National Bank brand, leveraging a network of 73 branches strategically located across both states.

Simon Griffiths, Camden National’s President and CEO, highlighted the cultural alignment and shared values between the two companies, calling the merger a natural fit. He explained that the expanded geographical footprint and increased operational capacity would bolster the bank’s ability to deliver innovative financial solutions, improve customer service, and drive shareholder value.

How the Merger Benefits Customers and Communities

The merger represents an opportunity to enhance banking services across Northern New England. Camden National plans to integrate Northway’s banking products into its own systems by March 2025, allowing customers to benefit from higher lending limits, broader product offerings, and advanced digital banking solutions.

Griffiths emphasised that both banks share a deep commitment to community-focused banking. He noted that this merger strengthens that commitment by enabling the combined institution to allocate resources more efficiently while maintaining personalised customer service.

William Woodward, CEO of Northway Financial, echoed Griffiths’ sentiments, describing the merger as a move to build a stronger foundation for growth in a competitive market. He stressed that the integration would allow for increased capital allocation and strategic investments, benefiting both clients and communities.

Financial Impact and Long-Term Outlook

The merger is expected to significantly boost Camden National’s earnings per share, with projections showing a 19.9% increase in 2025 and a 32.7% rise in 2026. The bank’s strong capital position, even post-merger, ensures compliance with regulatory requirements while allowing for continued growth.

Under the terms of the agreement, Northway shareholders received 0.83 shares of Camden National stock for each Northway share, resulting in Camden National shareholders owning 86% of the combined company. The merger also brings new leadership, with Larry Haynes, a former Northway director, joining Camden National’s Board of Directors and Audit Committee.

Haynes, a Certified Public Accountant and Certified Financial Planner®, is well-regarded for his deep knowledge of New Hampshire’s banking landscape. His appointment reflects Camden National’s focus on leveraging local expertise to strengthen its market presence.

What’s Next for Camden National Bank?

As Camden National integrates Northway Bank’s operations, customers can expect a seamless transition to enhanced banking systems by mid-March 2025. The expanded customer base will benefit from Camden National’s ongoing investments in technology and advice-driven financial planning.

Griffiths expressed gratitude to employees from both institutions, emphasising their role in the successful completion of the merger. He also welcomed new team members, customers, and shareholders, reiterating the bank’s commitment to fostering growth and innovation.

This merger solidifies Camden National’s position as a leader in regional banking, uniquely equipped to deliver value to customers and shareholders alike.