CAMDEN NATIONAL CORPCAC

CAMDEN NATIONAL CORP Leases Disclosure

10-KFiled Mar 6, 20263 min read
LEASES
The Company enters into noncancellable lease arrangements primarily for office space, space for ATM locations and some of its branches. Certain lease arrangements contain clauses requiring increasing rental payments over the lease term, which may be linked to an index (commonly the Consumer Price Index) or contractually stipulated.

The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company had a lease agreement to rent office space as a sub-tenant from another company in which a director of the Company serves as the Chairman and Chief Executive Officer of the other company, the original lease term extended through 2027. In the fourth quarter of 2025, the Company terminated the lease agreement and under the terms of the contract, paid the remaining lease obligation of $72,000.
The following ROU assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition as of the dates indicated:
December 31,
20252024
(In thousands)Consolidated Statements of Condition
Line Item
Operating Leases (1)
Finance LeasesTotalOperating LeasesFinance LeasesTotal
ROU assetsOther Assets$15,630 $6,103 $21,733 $10,349 $6,347 $16,696 
Lease liabilitiesOther Liabilities$14,631 $6,337 $20,968 $8,929 $6,573 $15,502 
(1)    The increase in 2025 was primarily driven by the Northway Acquisition. Refer to Note 2 for further details.

    In accordance with ASC 842, the components of lease expense for the periods indicated were as follows:
For the Year Ended
December 31,
(In thousands)202520242023
Operating lease cost(1)
$2,589 $1,579 $1,531 
Finance lease cost:
Amortization of ROU assets244 241 233 
Interest on lease liabilities(2)
241 223 147 
Total finance lease cost485 464 380 
Total lease cost(3)
$3,074 $2,043 $1,911 
(1)    Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs.
(2)    Includes immaterial variable lease costs.
(3)    Reported within net occupancy costs on the consolidated statements of income.
Supplemental cash flow information and non-cash activity related to leases was as follows for the periods indicated:
For the Year Ended
December 31,
(In thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,035 $1,393 $1,387 
Operating cash flows from finance leases142 148 144 
Financing cash flows from finance leases335 287 168 
ROU assets obtained in exchange for new lease obligations:
Operating leases(1)
$7,460 $— $165 
Finance leases— 2,335 — 
(1)    Includes $3.2 million of operating leases acquired through the Northway acquisition, see Note 2 for additional information.
Supplemental information related to leases was as follows as of the dates indicated:
December 31,
20252024
Weighted average remaining lease term:
Operating leases
11.4 years
13.0 years
Finance leases
17.3 years
18.0 years
Weighted average discount rate:
Operating leases3.96 %3.40 %
Finance leases3.92 %3.91 %

The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of December 31, 2025:
(In thousands)Operating LeasesFinance Leases
2026
$2,105 $396 
20271,974 371 
20281,831 374 
20291,738 377 
20301,381 2,260 
Thereafter9,252 5,081 
Total minimum lease payments18,281 8,859 
Less: amount representing interest(1)
3,650 2,522 
Present value of net minimum lease payments(2)
$14,631 $6,337 
(1)     Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate.
(2)     Reflects the liability reported within other liabilities on the consolidated statements of condition.

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 7, 2025
2023Mar 8, 2024
2022Mar 10, 2023
2021Mar 11, 2022
2020Mar 15, 2021
2019Mar 11, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesDebtCommitmentsNew StandardsPay vs Performance