Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (November 2015)
23 slides from Camden National's investor presentation, Nov 9, 2015
Slide 1: Investor Presentation
Investor Presentation Gregory Dufour | President & Chief Executive Officer Deborah Jordan | Chief Operating & Financial Officer Renée Smyth | Chief Marketing Officer November 9-10, 2015 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. A diversified busin
Slide 4: Camden National Corporation
Camden National Corporation Headquarters Camden, ME Ticker CAC (NASDAQ) Current Price $42.82 52 Week Range $35.67 to $43.29 Avg. Daily Volume 14,600 Assets $3.7 billion Loans $2.5 billion Deposits $2.7 billion Market Cap $437 million Analyst Coverage Piper Jaffrey (overweight) KBW (outperform) Infor
Slide 5: Investment Summary
Investment Summary Experienced Senior Management Team: • Senior management team has an average of over 25 years experience in banking and 12 years with the Company Strong Market Share and Brand Recognition • 140 year operating history • 3rd overall deposit market share in Maine upon acquisition of S
Slide 6: Focused Priorities
Focused Priorities Following a strategic plan with three major initiatives 5 Growth through acquisitions • Acquired SBM Financial (October 2015) • Acquired 14 Bank of America Branches and $287 million of deposits (2012) Growth through talent • Added 8 new lenders since 2013 • Deepened the credit ben
Slide 7: Market Overview
Market Overview Maine • Projected 7.79% growth in household income for 2015 to 2020 • Unemployment rate of 4.5% as of August 2015 • Hospitality and tourism generate more than $2 billion in household income annually New Hampshire • Projected 7.32% growth in household income for 2015 to 2020 • Unemplo
Slide 8: Growth through Acquisition
Growth through Acquisition SBM Financial (The Bank of Maine) • Acquired October 2015 • 24 branches • Deposits: $685 million • Loans: $646 million • Smooth integration and limited/isolated customer transition issues • Immediately expands market share to southern Maine • Opportunity to rebrand bank an
Slide 9: Earnings Results
Earnings Results • Solid earnings performance complimented by cost savings and momentum from the SBM Financial acquisition 8 SBM Financial Impact • Mid-teens EPS accretion in 2016 and beyond • Tangible Book Value dilution of 13.6% with earn back in five years • 15%+ Internal Rate of Return • Pro-for
Slide 10: Strong Credit Culture
Strong Credit Culture • Community-based, relationship focused lenders with local decision making • Significant small-business lending driven by unmatched market expertise • Disciplined risk management culture • Proactive internal and external loan review process anticipating problematic loans • Cons
Slide 11: Long-Term Shareholder Value
Long-Term Shareholder Value 10 $1.27 $3.28 $0.00 $1.00 $2.00 $3.00 $4.00 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 $8.57 $26.52 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 0% 10% 20% 30% 40% 50% 60% '99 '00 '01
Slide 12: 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 high growth markets • History of successfully integrating acquisitions • Strong and stable asset quality with disciplined credit enviro
Slide 13: Appendix
amaen NATIONAL CORPORATION Appendix
Slide 14: Seasoned Management Team
Seasoned Management Team 13 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 Peter Greene(a) EVP Operation
Slide 15: Financial Highlights: Balance Sheet
Financial Highlights 14 (in million’s) 9/30/15 9/30/14 12/31/14 12/31/13 Loans (a) $1,830 $1,726 $1,773 $1,580 Investment Securities 820 804 804 828 Total Assets 2,872 2,742 2,790 2,604 Deposits (b) 2,008 1,929 1,932 1,814 Borrowings 564 541 577 530 Shareholders’ Equity 259 240 245 231 Tier 1 Levera
Slide 16: Financial Highlights: Net Income and Key Ratios
Financial Highlights 15 Nine Months Ended Year Ended Core(a) 9/30/15 GAAP 9/30/15 9/30/14 2014 2013 Net Income (in millions) $20.5 $19.3 $18.5 $24.6 $22.8 Diluted Earnings per Share $2.74 $2.57 $2.46 $3.28 $2.97 Return on Tangible Equity(a) 13.75% 12.60% 13.71% 13.46% 14.55% Return on Assets 0.97% 0
Slide 17: 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 Source: SNL Financial 16 Net Interest Margin Efficiency Ratio ROAEROAA 2.00% 2.50% 3.00% 3.50% 4.00% '09 '10 '11 '12 '13 '14 Y
Slide 18: 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 Source: SNL Financial 17 NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 0.0
Slide 19: Loan Profile
Loan Profile 18 As of 9/30/15 Commercial 14% Commercial Real Estate 38% Residential Mortgages 32% Home Equity/Consumer 16% CNC Pro Forma Change in Portfolio Mix (Average Balances) Total Loans:$1.83 billion Yield: 4.07% Commercial 15% Commercial Real Estate 35% Residential Mortgages 35% Home Equity/C
Slide 20: Funding
Funding 19 As of 9/30/15 CNC Checking 31% Saving/Money Market 25% CD's 22% Borrowings 22% Pro Forma Change in Funding Mix (Average Balances) Funding:$2.57 billion Total Funding Cost: 0.47% Deposit Cost: 0.27% Checking 31% Saving/Money Market 28% CD's 23% Borrowings 18% Funding:$3.30 billion Total Fu
Slide 21: Asset Growth
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Asset Growth 20 Through 12/31/14 Organic Growth: $1,194 million Acquired Growth: $1,140 million Total Growth CAGR: 9.5% United Corp. $54 million KSB Bancorp $179 million Key Bank 4 Branches $54 m
Slide 22: Deposit Market Share
Deposit Market Share 21 Camden National (44 branches) SBM Financial (24 branches) (Consolidated 4 branches) Bangor Camden Augusta Brunswick Portland Kennebunk Source: SNL Financial. Deposit data as of June 2015. ($ in millions) Rank Instituition Deposits Branches Market Share % 1 Toronto-Dominion Ba
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. Year-to-Date as of August 31, Year Ended December 31, 2014 2015 2014 Top 15 Lenders Originations Rank % of Total Originations Originations Rank % Total Bangor Savings B
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