Camden National Corporation · NASDAQ:CAC
Camden National — Shareholder Meeting (April 2016)
34 slides from Camden National's shareholder meeting presentation, Apr 26, 2016
Slide 1: 2016 Annual Shareholders Meeting
2016 Annual Shareholders Meeting
Slide 2: Welcome to the 2016 Annual Shareholders' Meeting
Welcome to the 2016 Annual Shareholders’ Meeting Karen W. Stanley Chairman of the Board
Slide 3: Agenda
Agenda • Business Meeting • Introductions • Reading of the Minutes • Shareholder Voting • Presentations • Financial Results – Deborah Jordan • Strategic Update – Greg Dufour • Questions and Answers
Slide 4: Camden National Bank Board of Directors
Camden National Bank Board of Directors • Karen Stanley, Chair • Gregory Dufour, President/CEO • Ann Bresnahan • William Dubord • David Flanagan • John Holmes • James Markos, Jr. • Robert Merrill • David Ott • John Rohman • Carl Soderberg • Rosemary Weymouth
Slide 5: Camden National Corporation Board of Directors
Camden National Corporation Board of Directors • Karen Stanley, Chair • Gregory Dufour, President/CEO • Ann Bresnahan • David Flanagan • Craig Gunderson • John Holmes • Catherine Longley • David Ott • James Page, Ph.D. • John Rohman • Robin Sawyer, CPA • Carl Soderberg • Lawrence Sterrs
Slide 6: Acadia Trust Board of Directors
Acadia Trust Board of Directors • Gregory Dufour, Chair • Ann Bresnahan • William Dubord • John Rohman • Karen Stanley • Mary Beth Haut, President/CEO
Slide 7: Camden National Corporation Senior Management Team
Camden National Corporation Senior Management Team Gregory Dufour, President and Chief Executive Officer Joanne Campbell, EVP - Risk Management Officer Carolyn Crosby, SVP - Human Resources & Development Mary Beth Haut, Acadia Trust; President and Chief Executive Officer Mac Hayden, EVP – Chief Cred
Slide 8: Meeting Minutes
amaen NATIONAL CORPORATION Meeting Minutes
Slide 9: Judges of Election, Proxies and Alternates
Judges of Election Paul Gibbons Orman Goodwin, Jr. Proxies Thomas Jackson Jeffrey Weymouth Alternates Parker Laite, Jr. Arthur Sprowl
Slide 10: Proposals
• Proposal 1: Election of Directors • David C. Flanagan • James H. Page, Ph.D. • Robin A. Sawyer, CPA • Karen W. Stanley • Proposal 2: “Say On Pay” • Proposal 3: Ratification of Independent Registered Public Accounting Firm • RSM US LLP Proposals
Slide 11: Submission of Proxy Votes
amaen NATIONAL CORPORATION Submission of Proxy Votes
Slide 12: Financial Results for 2015 and First Quarter 2016
Financial Results for 2015 and First Quarter 2016 Deborah Jordan Chief Operating Officer and Chief Financial Officer
Slide 13: Forward Looking Statements
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, exceptions, goals, projections, and statements, which are
Slide 14: 2015 Core Operating Earnings Results
2015 Core Operating Earnings Results Excludes impact of one-time merger related expenses as well as other non-recurring items. Please refer to our Form 10-K for the non-GAAP financial measures and reconciliation to GAAP. $26.4 $24.3 $23.6 $24.3 $28.2 $0 $5 $10 $15 $20 $25 $30 2011 2012 2013 2014 201
Slide 15: Loan Growth and Mix
Loan Growth and Mix (1) Includes loans held for sale. Commercial 15% Commercial Real Estate 37% Residential Mortgages 33% Home Equity/Consumer 15% Loan Mix 12/31/15 1,520 1,564 1,580 1,773 1,886 615 0 500 1,000 1,500 2,000 2,500 3,000 2011 2012 2013 2014 2015 $ ( in m ill io n s ) Total Loans Outsta
Slide 16: Funding Growth and Mix
Funding Growth and Mix 12/31/15 Funding: $3.3 billion Total Funding Cost: 0.47% Deposit Cost: 0.26% 12/31/14 Checking, 30% Saving/Money Market, 26% CD's, 21% Borrowings, 23% Funding: $2.5 billion Total Funding Cost: 0.50% Deposit Cost: 0.28% Borrowings, 17% Checking, 33% Savings/Money Market, 28% CD
Slide 17: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets Proxy Peer – Average of 21 publicly traded commercial and savings banks in the Northeast. BHCPR Peer – Average of 142 bank holding companies with $3B to $10B in assets. Source: SNL Financial 1.26% 1.11% 1.16% 0.82% 0.66% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%
Slide 18: Core Operating Expenses to Average Assets
Core Operating Expenses to Average Assets Non-GAAP financial measure – It excludes the impact of one-time merger related expenses as well as other non-recurring items. Proxy Peer – Average of 21 publicly traded commercial and savings banks in the Northeast. SNL U.S. Banks $3B-$10B – Average of all m
Slide 19: Core Return on Average Tangible Equity
Non-GAAP financial measure – It excludes the impact of one-time merger related expenses as well as other non-recurring items. Proxy Peer – Average of 21 publicly traded commercial and savings banks in the Northeast. SNL U.S. Banks $3B-$10B – Average of all major exchanges (NYSE, NYSE MKT, NASDAQ) ba
Slide 20: First Quarter 2016 Core Operating Results
(1) Defined as the sum of net interest income and non-interest income. (2) Non-GAAP measure. Please refer to the earnings release filed on Form 8-K on April 26, 2016 for the “Reconciliation of non-GAAP to GAAP Financial Measures” section. First Quarter 2016 Core Operating Results March 31, Increase
Slide 21: SBM Merger Update
Estimated Actual/Expected Deal Value: $135 million $137 million Tangible Book Value: 13.6% dilution at closing Earn back of 5 years Improvement to 12% dilution Maintain earn back of 5 years Earnings Per Share: 14% accretion in 2016 Mid-teens accretion in 2017 and beyond Reduction t
Slide 22: Voting Results
Voting Results Gregory A. Dufour President and Chief Executive Officer
Slide 23: CEO Comments
CEO Comments Gregory A. Dufour President and Chief Executive Officer
Slide 24: Camden National Corporation
Camden National Corporation Camden National Corporation • Headquartered in Maine – largest bank in Northern New England • Full-service community bank • Focused on delivering long-term shareholder value through banking, brokerage and wealth management services • Operates in Maine, New Hampshire and s
Slide 25: Camden National Corporation Key Facts
Camden National Corporation Headquarters Camden, ME Employees Over 650 Ticker CAC (NASDAQ) Current Price $43.34 52 Week Range $37.23 to $47.49 Avg. Daily Volume 27,210 Assets $3.8 billion Loans / Deposits $2.5 billion / $2.7 billion Market Cap $440 million Analyst Coverage Piper Jaffrey (overweight
Slide 26: 40% organic growth over year horizon
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 T h o u s a n d s United Corp. $54 million Key Bank 4 Branches $54 million KSB Bancorp $179 million Union Bankshares $565 million Bank of America 14
Slide 27: Strategic Plan for Growth
Strategic Plan for Growth Core Market Acquired Market Growth Target Camden National Corporation • 63 banking centers • 2 wealth management offices • 1 loan production office (NH) • 1 mortgage office (MA) Positions us in • Cumberland and York County • 36% of Maine’s population • 35% of Maine’s retail
Slide 28: Focused Priorities: Build Market Share
Focused Priorities Following a strategic plan with three major initiatives: • 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: Acqu
Slide 29: Focused Priorities: Create Efficiencies
Focused Priorities Maintain discipline around expense control • Focus on improving Efficiency Ratio • The Bank of Maine (SBM Financial) cost savings of $11 million in 2016 • Branch Consolidation • 1 location (2016) • 4 locations (2015) • 2 locations (2013) • Divested 5 rural branches (2013) • IT/Sup
Slide 30: Focused Priorities: Expand Business Banking Services
Focused Priorities Strategically positioned for future growth • Geographic expansion to high growth markets • Southern Maine • New Hampshire • Massachusetts • Product & service enhancements to meet diverse business needs • Mortgage Banking • Treasury Management • Business Banking • Technology upgrad
Slide 31: Dividend History
Dividend History (a) 2005 and 2011, special dividend of $0.50 per share. $0.63 $1.20 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 '00 '01 '02 '03 '04 '05 (a) '06 '07 '08 '09 '10 '11 (a) '12 '13 '14 '15 $118 million of dividends paid since 2000 Average dividend payout ratio of 37%
Slide 32: Returning Capital to Investors
Returning Capital to Investors (a) 2005 and 2011, special dividend of $0.50 per share. (b) 2006 issuance of trust preferred and share buyback. $195 million returned to shareholders since 2000 $118 million of dividends $77 million of share repurchases 0 20,000 40,000 60,000 80,000 100,000 120,000 140
Slide 33: Total Return
Total Return CNC: 393% S&P 500: 108% SNL U.S. Bank $1B-$5B: 152% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Source: SNL Financial Strong 15 year return • Stock price appreci
Slide 34: Why be a Shareholder of Camden National?
Why be a Shareholder of Camden National? • Track record of consistent and stable earnings • Diversified business model • Proven management team • Favorable trading range to book • Solid and consistent record of dividends