Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (March 2023)
29 slides from Camden National's investor presentation, Mar 13, 2023
Slide 1: Investor Presentation
1 Investor Presentation Gregory Dufour | President & Chief Executive Officer Michael Archer | EVP, Chief Financial Officer March 13, 2023
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including certain plans, exceptions, goals, projections, and statements, which are subject to numer
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures. Management uses these non-GAAP financial measures for purposes of measuring our performance against our peer group and other financial institutions and analyzing our internal performance. These non-GAAP fin
Slide 4: Camden National Corporation
4 Camden National Corporation Largest publicly traded bank headquartered in Northern New England (parent company of Camden National Bank) All data is presented as of December 31, 2022 unless otherwise noted. NASDAQ: CAC *As of December 31, 2022 $607 Million Market Cap $5.7 Billion Assets 39,050 Aver
Slide 5: Why Camden National?
5 Why Camden National? Strong Long-Term Financial Performance and Shareholder Returns • History of strong financial performance and stable growth • Strong capital position with a history of growing dividends and repurchasing shares • Strong credit culture with a history of superior credit quality St
Slide 6: Camden National by the Numbers
6 Camden National by the Numbers Shareholder Total Return 5 Year = 16% Dividends (CAGR) 5 Year = 12% TBVPS(1) (CAGR) 5 Year = 4% Share Repurchases (as a % of outstanding) 5 Year = 8% Net Income (CAGR) 5 Year = 17% PTPP Earnings (CAGR) 5 Year = 5% ROATE (average) 5 Year = 16.03% ROAA (average) 5 Year
Slide 7: Current Priorities and Recent Actions
7 Current Priorities and Recent Actions Priorities Recent Actions Earnings Credit Quality Corporate Responsibility Human Capital & Customers • Optimize net interest margin • Expand presence in southern ME, MA & NH • Expand small business market share • Prudent expense management • Investments in pro
Slide 8: Creating Long-Term Shareholder Value
8 -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 CAC CAC Proxy Peer Group S&P SmallCap Banks Russell2000 249% 182% 178% 104% Creating Long-Term Shareholder Value Source: S&P Global Data r
Slide 9: Balanced Long-Term Growth
9 $2.3 $2.2 $2.3 $2.3 $2.6 $2.6 $2.8 $3.7 $3.9 $4.1 $4.3 $4.4 $4.9 $5.5 $5.7 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Assets $ in billions Balanced Long-Term Growth Acquisitions: 2008 Union Bankshares 2012 Bank of America (14 branches) 2015 The Bank of Maine O
Slide 10: 2022 ESG Highlights
10 2022 ESG Highlights Committed to continual corporate responsibility progress as we work to create a thriving, sustainable, inclusive future for all our constituents 2022 Highlights: • Introduced a board- approved diversity core value and statement • Increased diversity of Board Directors • Develo
Slide 11: Summary Financial Highlights
11 Summary Financial Highlights
Slide 12: 2022 Financial Summary
12 2022 Financial Summary Total Assets $5.7 Billion Average Deposits $4.5 Billion 3% YoY Growth 7% 5 Year CAGR Net Income $61.4 Million 9% YoY Growth 11% 5 Year CAGR (11%) YoY Growth 17% 5 Year CAGR Return on Assets 1.12% Return on Equity 13.15% Diluted Earnings Per Share $4.17 Efficiency Ratio(1) 5
Slide 13: Net Interest Income and Net Interest Margin
13 Net Interest Income and Net Interest Margin Avg. Earning Assets $5.2 Billion Avg. Funding $4.9 Billion 7% YoY Growth 7% YoY Growth All data is presented as of December 31, 2022 unless otherwise noted. Earning Asset Yield 3.34% 27 bps Growth Funding Cost 0.51% 27 bps Growth
Slide 14: Interest Rate Sensitivity
14 Interest Rate Sensitivity Interest Rate Risk Position(1) • Liability sensitive Year 1 and asset sensitive Year 2; strategies employed improve asset sensitivity in Year 1 Current Strategy and Actions • Disciplined loan pricing • Manage deposit pricing on an exception-basis • Deposit acquisition th
Slide 15: Liquidity Position
15 Liquidity Position Liquidity Sources (12/31/22) Amount ($ in millions) Excess Cash $17.9 Unpledged Investment Securities $321.5 Unpledged Municipal Securities $89.9 Over Collateralized Securities Pledging Position $228.6 FHLB Borrowing Capacity $760.6 Current Fed Discount Window Availability $42.
Slide 16: Diversified Revenue Stream
16 Diversified Revenue Stream Peer Group defined as publicly traded banks and thrifts headquartered in the United States with total assets between $2.0 billion and $10.0 billion, excluding merger targets. All data is presented as of December 31, 2022 unless otherwise noted. • Assets under administra
Slide 17: Driving Efficiency and Scale
17 Driving Efficiency and Scale • Balanced approach to investing in the franchise while maintaining efficient operations • Efforts underway to enhance processes to drive efficiency and scale, including technology / software, digital channels, and RPA Efficiency ratio is a non-GAAP measure. Refer to
Slide 18: Loan Portfolio
18 Loan Portfolio Loan Portfolio Trend ($ in Billions) Loan Portfolio Mix All data is presented as of December 31, 2022 unless otherwise noted.
Slide 19: Commercial Diversification
19 Commercial Diversification $2.0 billion $1.0 billion Commercial Real Estate • 62% of real estate located in Maine, 18% in New Hampshire, and 9% in Massachusetts • 80% non-owner occupied, 20% owner occupied Real Estate Investment Breakdown (as of 12/31/22) CRE and Commercial Loans by Industry (as
Slide 20: Solid Credit Quality
20 Solid Credit Quality Data presented for periods prior to 2020 does not reflect the impact of CECL. Peer Group defined as publicly traded banks and thrifts headquartered in the United States with total assets between $2.0 billion and $10.0 billion, excluding merger targets. Source: S&P Global. Dat
Slide 21: Investment Portfolio
21 Investment Portfolio 2018 2019 2020 2021 2022 Book Yield (FTE) 2.46% 2.64% 2.38% 1.80% 2.14% Modified Duration 4.14 4.65 3.95 4.75 5.83 Securities / Assets 22% 21% 22% 28% 24% (1) Excludes impact of unrealized gains/losses. All data is presented as of December 31, 2022 unless otherwise noted. • 5
Slide 22: Funding
22 Funding Average Funding MixAverage Funding Trend ($ in billions) 87% 87% 80% 74% 83% Loan to Deposit Ratio All data is presented as Q4 2022 averages unless otherwise stated.
Slide 23: Strong Capital Position
23 Strong Capital Position (1) “Required Minimum” including capital conservation buffer. (2) This is a non-GAAP measure. Refer to the Company’s financial information filed with the SEC for the respective period. Tier 1 Leverage Ratio Total Risk-Based Capital Ratio TCE Ratio(2) In Q2 2022, transferre
Slide 24: Appendix
eC Garden NATIONAL CORPORATION Appendix
Slide 25: Executive Management Team
25 Executive Management Team Name Position Age Years of Banking Experience Year Joined Camden Greg Dufour President and CEO 62 30+ 2001 Mike Archer, CPA EVP Chief Financial Officer 39 10 2013 Joanne Campbell EVP Enterprise Risk Management & Chief Risk Officer 60 30+ 1996 William Martel EVP Technolog
Slide 26: Fourth Quarter 2022 Highlights
26 Fourth Quarter 2022 Highlights • Net income increased by $1.1MM, or 8%, over third quarter • Total loans grew $150MM, or 4%, during the fourth quarter. Resulting in loan growth of 17% for 2022 • Deposits grew $258MM, or 6%, during the fourth quarter and core deposits grew $146MM, or 3%, during th
Slide 27: Income Statement
27 Income Statement $ thousands 4Q22 3Q22 2Q22 1Q22 4Q21 Net interest income $36,982 $37,813 $36,534 $36,365 $36,797 Non-interest income $9,782 $9,954 $11,141 $9,825 $12,101 Total revenue $46,764 $47,767 $47,675 $46,190 $48,898 Non-interest expense $26,993 $27,091 $26,556 $26,209 $26,968 Pretax, pre
Slide 28: Balance Sheet
28 Balance Sheet $ millions 4Q22 3Q22 2Q22 1Q22 4Q21 Loans $4,010 $3,861 $3,724 $3,534 $3,431 Investment Securities $1,259 $1,277 $1,353 $1,437 $1,523 Total Assets $5,672 $5,552 $5,466 $5,420 $5,500 Deposits $4,827 $4,569 $4,527 $4,577 $4,609 Borrowings $310 $465 $416 $282 $256 Shareholders’ Equity
Slide 29: Maine Mortgage Banking Activity
29 Maine Mortgage Banking Activity Top 15 Lenders Origination Units Rank % of Total Bangor Savings Bank 4,542 1 10.9% Camden National Bank 2,926 2 7.0% Quicken Loans 2,045 3 4.9% First, N.A. 1,703 4 4.1% Kennebec Savings Bank 1,647 5 3.9% United Wholesale Mortgage 1,426 6 3.4% USA - various agencies