Camden National to merge with Northway Financial

Camden National (CAC) and Northway Financial (NWYF), the parent company of Northway Bank, have entered into a definitive agreement under which Camden National will acquire Northway in an all-stock transaction valued at approximately $86.6 M. The combined company will have 74 branches serving markets throughout a contiguous footprint in New Hampshire and Maine, with approximately $7.0B in assets, $5.1B in loans, $5.5B in deposits, and $2.0B of Assets Under Administration. The combined company will operate under the Camden National Bank name. Northway shareholders will receive 0.83 shares of Camden National common stock for each outstanding share of Northway common stock. Based on Camden National’s closing stock price of $37.90 on September 9, 2024, the transaction is valued at approximately $86.6M or $31.46 per share of Northway common stock. Following the completion of the transaction, one Northway director will join the boards of directors of both Camden National and Camden National Bank upon the completion of the transaction. As of June 30, 2024, Northway had approximately $1.3B of total assets, $0.9B of total loans, and $1.0B of deposits. On a combined basis, the merger is expected to be approximately 19.9% accretive to Camden National’s 2025 EPS and 32.7% accretive to Camden National’s 2026 EPS. Following the completion of the merger, Camden National’s capital ratios are expected to remain significantly above “well-capitalized” thresholds, with the pro forma company well-positioned for future growth. The merger is expected to be completed during Q1 of 2025, subject to certain customary conditions, including the receipt of required regulatory approvals and approval by Northway shareholders. Upon completion of the transaction, Camden National shareholders will own approximately 86% of the combined company and Northway’s shareholders will own approximately 14% of the combined company, which will continue to trade on Nasdaq under the “CAC” stock ticker symbol.