Camden National Corporation · NASDAQ:CAC
Camden National — 2016 RBC Capital Markets Financial Institution Conference
25 slides from Camden National's conference presentation, Mar 8, 2016
Slide 1: 2016 RBC Capital Markets Financial Institution Conference
2016 RBC Capital Markets Financial Institution Conference Gregory Dufour | President & Chief Executive Officer Deborah Jordan | Chief Operating & Financial Officer March 9, 2016 0
Slide 2: Forward Looking Statements
Forward Looking Statements 1 This presentation contains certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including certain plans, exceptions, goals, projections, and statements, which ar
Slide 3: Camden National Corporation
Camden National Corporation Camden National Corporation, headquartered in Maine, is a full-service community bank focused on delivering long-term shareholder value through banking, brokerage and wealth management services in Maine, New Hampshire and select markets of New England. 2
Slide 4: Camden National Corporation
Camden National Corporation Headquarters Camden, ME Employees Over 650 Ticker CAC (NASDAQ) Current Price $40.01 52 Week Range $36.91 to $47.49 Avg. Daily Volume 39,067 Assets $3.7 billion Loans $2.5 billion Deposits $2.7 billion Market Cap $409 million Analyst Coverage Piper Jaffrey (overweight) KBW
Slide 5: Focused Priorities: Build Market Share
Focused Priorities Following a strategic plan with three major initiatives: 4 • Organic growth continues to be our #1 priority. • Growth through acquisitions • 2015: Acquired The Bank of Maine (SBM Financial) and $687 million of deposits: o Expanded market opportunity by 202,605 households • 2012: A
Slide 6: Focused Priorities: Create Efficiencies
Focused Priorities Maintain discipline around expense control 5 • Focus on improving Efficiency Ratio • SBM cost savings of $11 million in 2016 • Branch Consolidation • 1 location (2016) • 4 locations (2015) • 2 locations (2013) • Divested 5 rural branches (2013) • IT/Support: Invest in innovation a
Slide 7: Focused Priorities: Expand Business Banking Services
Focused Priorities Strategically positioned for future growth 6 • Geographic • Southern Maine • New Hampshire • Massachusetts • Products & Services • Mortgage Banking • Treasury Management • Business Banking • Technology • Q2 • Apple Pay Expand Business Banking Services 3
Slide 8: Strategic Plan for Growth: The Bank of Maine (SBM Financial)
Strategic Plan for Growth The Bank of Maine (SBM Financial) • Acquired October 2015 • 24 branches • Deposits: $687 million • Loans: $615 million • Smooth integration and limited/isolated customer transition issues • Immediately expands market share to high growth - Southern Maine • Created an opport
Slide 9: 2015 Earnings Results
2015 Earnings Results Solid earnings performance complimented by cost savings and momentum from The Bank of Maine (SBM Financial) acquisition 8 The Bank of Maine Impact • 11% EPS accretion in 2016 and mid-teens beyond. • Tangible Book Value dilution of 12% with earn back in five years • 15%+ Interna
Slide 10: Loan Mix & Strong Credit Culture
Loan Mix & Strong Credit Culture • Community-based, relationship focused lenders with local decision making • Larger institutional experience (TD Bank, Citizens) to compliment an already strong credit focus • Significant small-business lending driven by unmatched market expertise • All key credit qu
Slide 11: Deposit Mix & Market Share
Deposit Mix & Market Share 10 Source: SNL Financial. Deposit data as of June 2015. ($ in millions) Rank Instituition Deposits Branches Market Share % 1 Toronto-Dominion Bank $ 3,309 49 13.3 2 KeyCorp 2,891 51 11.6 Camden + SBM 2,668 64 10.7 3 Bangor Bancorp MHC 2,265 60 9.1 4 Camden National Corp. 1
Slide 12: Long-Term Shareholder Value
Long-Term Shareholder Value 11 a) 2005 and 2011, special dividend of $0.50 per share. b) The increase in 2015 reflects an increase in shares outstanding of 2.7 million issued in connection with the SBM acquisition. c) 2006 issuance of trust preferred and share buyback. Dividends as % of Net Income C
Slide 13: Peer Analysis
Peer Analysis 12 Private and Confidential Camden National Corporation’s peer group consists of the following: Arrow Financial Corporation (AROW), Bar Harbor Bankshares (BHB), Berkshire Hills Bancorp, Inc. (BHLB), Boston Private Financial Holdings, Inc. (BPFH), Brookline Bancorp, Inc. (BRKL), Century
Slide 14: Investment Summary
Investment Summary Experienced Leaders • 25+ years average banking experience and 12 years with CAC Strong Market Share and Brand Recognition • 140 year operating history • 3rd overall deposit market share in Maine • #2 mortgage originator in Maine, with 7.4% of all mortgage originations in the stat
Slide 15: Why Invest in Camden National?
Why Invest in Camden National? • Diversified business model creates strong franchise value • Track record of solid performance • Geographic footprint expanding into higher growth markets • History of successfully integrating acquisitions • Strong and stable asset quality with disciplined credit envi
Slide 16: Appendix
amaen NATIONAL CORPORATION Appendix
Slide 17: Seasoned Management Team
Seasoned Management Team 16 Name Position Age Years of Banking Experience Year joined Camden Greg Dufour President and CEO 55 25+ 2001 Debbie Jordan, CPA COO & CFO 50 20+ 2008 Joanne Campbell EVP Risk Management 52 30+ 1996 Carolyn Crosby SVP Human Resources 49 25+ 1996 Edmund Hayden EVP Chief Credi
Slide 18: Financial Highlights
Financial Highlights 17 Organic (in million’s) 12/31/15 12/31/14 Acquired $ % Loans $2,490 $1,773 $615 $102 6% Investment Securities 856 804 40 12 1% Total Assets 3,710 2,790 840 80 3% Deposits 2,726 1,932 687 107 6% Borrowings 573 577 0 (4) (1%) Shareholders’ Equity 363 245 Tier 1 Leverage Ratio 8.
Slide 19: Net Income and Key Ratios
Net Income and Key Ratios Financial Highlights 18 Core(a) GAAP 2015 2014 2015 2014 Net Income (in millions) $28.2 $24.3 $21.0 $24.6 Diluted Earnings per Share $3.49 $3.24 $2.60 $3.28 Return on Tangible Equity 13.20% 13.30% 7.54%(b) 10.37% Return on Assets 0.94% 0.90% 0.70% 0.92% Efficiency Ratio 61.
Slide 20: Profitability Trends
Profitability Trends Note: Peer Group defined as publicly traded banks and thrifts headquartered in the United States with total assets between $1.5 billion and $7.0 billion, excluding merger targets. Source: SNL Financial 19 Net Interest Margin Efficiency Ratio ROAA ROAE 2.00% 2.50% 3.00% 3.50% 4.0
Slide 21: Historical Credit Metrics
Historical Credit Metrics Note: Peer Group defined as publicly traded banks and thrifts headquartered in the United States with total assets between $1.5 billion and $7.0 billion, excluding merger targets. Source: SNL Financial 20 NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans N
Slide 22: Asset Growth
Asset Growth 21 • Successful track record of growing the franchise through combination of organic growth and acquisitions (40% organic growth over 20 year horizon). $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 United Corp. $54 millio
Slide 23: Mortgage Banking Activity
Mortgage Banking Activity • The SBM Financial acquisition positions CAC as the #2 Mortgage Originator in Maine 22 Source: MRS, Inc. Top 15 Lenders Originations Rank % of Total Originations Rank % of Total Bangor Savings Bank 3,469 1 8.5% 3,059 1 8.4% Camden National Bank + The Bank of Maine 3,039 7.
Slide 24: Market Overview
Market Overview Maine • Projected 7.57% growth in household income for 2015 to 2020 • Unemployment rate of 4.0% as of December 2015 • Hospitality and tourism generate more than $2 billion in household income annually New Hampshire • Projected 7.57% growth in household income for 2015 to 2020 • Unemp
Slide 25: Reconciliation of non-GAAP to GAAP Financial Measures
Reconciliation of non-GAAP to GAAP Financial Measures Private and Confidential24 Core Operating Earnings and Core Diluted EPS: The following tables provide a reconciliation of GAAP net income and GAAP diluted EPS to exclude the financial impact of certain transactions for which management does not b
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