Camden National Corporation · NASDAQ:CAC
Camden National — Stephens' Investor Presentation (June 2020)
27 slides from Camden National's conference presentation, Jun 2, 2020
Slide 1: Stephens' Investor Presentation
Stephens’ Investor Presentation Gregory Dufour | President & Chief Executive Officer Gregory White | Chief Financial Officer June 2, 2020 1
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non- GAAP Financial Measures FORWARD LOOKING STATEMENTS 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
Slide 3: Camden National Corporation
Camden National Corporation Largest publicly traded bank headquartered in Northern New England • $4.6 billion in assets • 58 banking centers located in Maine • 2 loan production offices • New Hampshire • Massachusetts • $500 million market cap • 50 day avg share volume of approximately 70,000 • Anal
Slide 4: Why Camden National?
Why Camden National? Organic franchise growth, opportunistic acquisitions Focused: Consistent Performance: • Gaining market share • Profitability achieved through • Adherence to strategic plan organic growth • Opportunistically reviewing • Improved productivity complementary acquisitions • Disciplin
Slide 5: Our COVID-19 Response
Our COVID-19 Response • Over 50% of our employees working remotely • Committed to no COVID-19-related layoffs for at least 90 days • Increased Stakeholder Emergency Fund by $100,000 • Provided special premium pay for banking center employees • Providing financial assistance due to COVID-19 personal
Slide 6: First Quarter 2020 Highlights
First Quarter 2020 Highlights Net Income $13.5 million • Entered a challenging environment with strong capital and liquidity Diluted Earnings Per Share $0.89 • Responded swiftly to support employees, customers, and communities Return on Average Assets • Good quarter with solid financial results, 1.2
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NII and NIM Total deposit costs ($ in millions) $35.0 0.82% $31.9 $32.2 $31.8 3.90% 3.70% 0.76% 0.76% $30.0 0.75% 3.50% 0.72% 3.18% $25.0 3.12% 3.08% 3.30% 3.10% 0.60% $20.0 2.90% 2.70% $15.0 2.50% 1Q19 4Q19 1Q20 NII NIM Oct Nov Dec Jan Feb Mar Estimated C
Slide 8: Diversified Revenue
Diversified Revenue Fee income is 26% of total revenue (net interest income plus fee income) 8
Slide 9: Focused on Improving Productivity and Creating Efficiencies
Focused on Improving Productivity and Creating Efficiencies Expenses and Efficiency ratio(1) Deposits per Branch $59 Annual Quarterly $56 $100 Millions $53 $80 $50 Millions $47 $60 57.7% 57.3% $44 57.1% 56.5% 55.8% 55.6% 54.9% 55.3% $41 $40 $38 $20 $35 64 61 60 60 61 $32 $0 2015 2016 2017 2018 2019
Slide 10: Loan Portfolio
Loan Portfolio Residential Real Estate Balances of $3.2 Billion • 70% located in Maine and 25% in Massachusetts (as of 3/31/20) • 64% are primary residences, 26% second homes and 10% investment property Home Equity and Consumer Commercial 10% • 98% of balances at </= 80% LTV(1) (or supplemented with
Slide 11: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry (as of 3/31/20) Other Nonresidential Other (12 Industries Buildings <2%) 7% 14% 1-4 Family 9% Office Buildings 28% Other Services (expt Public Admin) Industrial / 3% Warehouse Restaurants 10% 3% Real Estate Investment $712 Construction
Slide 12: Loan Assistance Programs
Loan Assistance Programs SBA Payroll Paycheck Program SBA PPP • Automated much of the loan (as of 5/22/2020) application process Balances Units (in millions) • Funded 10% of Maine’s SBA PPP Total 2,765 $228.2 loans by dollar amount Loan Deferral Program – granted extensions and deferrals Loan Deferr
Slide 13: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets ALL / NPLs 12/31/2009 256.86% 1.07% 225.77% 0.67% 171.17% 0.50% 118.92% 12/31/2009 0.34% 92.28% 109.31% 0.25% 0.23% 2016 2017 2018 2019 1Q20 2016 2017 2018 2019 1Q20 NCOs / Average Loans ALL / Total Loans 12/31/2009 12/31/2009 0.37% 1.33% 0.89% 0.87% 0.82% 0.
Slide 14: Securities Portfolio
Securities Portfolio Securities Portfolio Mix • Book value was $947 million (Book Value at 3/31/20) U.S. Agencies • Average yield of 2.67% for 1Q20 and Other 7% • Unrealized net gain of $29.4 million on AFS Municipal CMO - Agency 13% compared to $5.3 million at 12/31/19 34% • 99.9% AFS, 0.1% HTM • D
Slide 15: Funding Mix
Funding Mix Deposits Average Funding Q1 2020 • Average balance of $3.4 billion Borrowings • Average deposit cost of 0.70% for 1Q20 14% • 2nd highest deposit market share in Maine (11.4% of deposits as of 6/30/19) th • 8 highest deposit market share in York and CDs Cumberland counties (5.4% of deposi
Slide 16: Strong Liquidity Position
Strong Liquidity Position Well Positioned to Support Liquidity Needs Liquidity Sources (3/31/20) Amount ($ millions) Unpledged Investment Securities $109.4 Unpledged Municipal Securities $97.5 Over Collateralized Securities Pledging Position $102.8 Lines of Credit Exposure FHLB Borrowing Capacity $5
Slide 17: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CET1) Ratio 14.44% 11.80% 9.53% 9.55% 9.53% 14.04% 14.14% 14.36% 13.81% 11.27% 11.30% 11.62% 11.27% 8.83% 9.07% Required Minimum(1) 10.50% Required Minimum(1) Required 7.00% Minimum(1) 4.00% 2016 2017
Slide 18: Shareholder Value: Long-Term Metrics
Shareholder Value: Long-Term Metrics TBV Per Share(a) $26.39 $10.43 • TBV per share 15 year CAGR of 5.9% • Consistent dividend of 30%+ of annual '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Q1 '20 earnings • $90 million in share buybacks since 2004 Dividends as a % of Net Income •
Slide 19: Shareholder Value: Total Return
Shareholder Value: 15 Year Total Return • Stock price appreciation of 43.68% • Average dividend yield of 2.83% 300% 250% 243% 200% 150% 123% 100% 78% 50% 30% 0% -50% CAC SNL U.S. Bank $1B-$5B S&P 500 CAC Peer Group Index Source: S&P Global 19
Slide 20: Investment Summary
Investment Summary Proven Management Team • Delivered on previous acquisition commitments • Diverse experience from community and large bank perspectives Strong Market Share and Brand Recognition • 145 year operating history • #2 overall deposit market share in Maine, 1st in community banks • #3 mor
Slide 21: Appendix
Appendix ¢ NATIONAL 21 CORPORATION
Slide 22: Seasoned Management Team
Seasoned Management Team Years of Year joined Name Position Age Banking Camden Experience Greg Dufour President and CEO 60 30+ 2001 Greg White EVP Chief Financial Officer 55 30+ 2020 Debbie Jordan, CPA(1) EVP Chief Operating Officer 54 25+ 2008 Joanne Campbell EVP Risk Management 57 30+ 1996 William
Slide 23: Income Statement
Income Statement $ thousands 1Q20 4Q19 3Q19 2Q19 1Q19 Net interest income $31,826 $32,239 $31,923 $31,573 $31,895 Non-interest income $11,403 $11,948 $10,739 $10,037 $9,389 Total revenue $43,229 $44,187 $42,662 $41,610 $41,284 Non-interest expense $24,561 $24,814 $23,748 $23,958 $22,783 Pretax, pre-
Slide 24: Balance Sheet
Balance Sheet $ millions 1Q20 4Q19 3Q19 2Q19 1Q19 Loans $3,185 $3,107 $3,127 $3,113 $3,051 Investment Securities $976 $933 $926 $933 $937 Total Assets $4,595 $4,430 $4,520 $4,447 $4,421 Deposits $3,564 $3,538 $3,618 $3,592 $3,578 Borrowings $421 $338 $342 $311 $325 Shareholders’ Equity $493 $473 $47
Slide 25: Historical Credit Metrics
Historical Credit Metrics NPAs / Assets NCOs / Average Loans 3.00% 0.90% 2.50% 0.75% 2.00% 0.60% 1.50% 0.45% 1.00% 0.30% 0.50% 0.15% 0.00% 0.00% '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '20 '20 Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 2.10% 2.4
Slide 26: Profitability Trends
Profitability Trends ROAA ROAE 1.50% 15.00% 1.25% 12.50% 1.00% 10.00% 0.75% 7.50% 0.50% 5.00% 0.25% 2.50% 0.00% 0.00% '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '20 '20 Net Interest Margin Efficiency Ratio 4.00% 70.00% 3.75% 65.00% 3.50% 60.00% 3.25% 55.00% 3.00%
Slide 27: Mortgage Banking Activity
Mortgage Banking Activity Three Months Ended March 31, 2020 Top 15 Lenders in Maine Originations Rank % of Total Bangor Savings Bank 988 1 9.6% Quicken Loans 658 2 6.4% Camden National Bank 656 3 6.4% Key Bank 500 4 4.8% Residential Mortgage Services Inc. 490 5 4.8% United Wholesale Mortgage 410 6 4
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