Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (August 2022)
26 slides from Camden National's investor presentation, Aug 2, 2022
Slide 1: Investor Presentation
Investor Presentation Gregory Dufour | President & Chief Executive Officer Michael Archer | EVP, Chief Financial Officer August 2-3, 2022 ¢ NATIONAL 1 CORPORATION
Slide 2: Forward Looking Statements
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 numerou
Slide 3: Non-GAAP Financial Measures
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 fina
Slide 4: Camden National Corporation
Camden National Corporation Largest publicly traded bank headquartered in Northern New England (parent company of Camden National Bank) * NASDAQ: CAC * Total Assets: $5.5 billion * Total Loans: $3.7 billion « Total Deposits: $4.5 billion + Assets Under Administration: $1.6 billion « Market Cap: $672
Slide 5: Why Camden National?
Why Camden National? Strong Financial Metrics * History of strong financial performance and stable growth * Solid efficiency ratio, ROAA and ROATCE * Strong credit culture with a history of superior credit quality Strong Shareholder Returns Gi) @)—-®) * History of growing dividends * Opportunistical
Slide 6: Acquisitions and long-term growth rates
Acquisitions: 2008 Union Bankshares 2012 Bank of America (14 branches) 2015 The Bank of Maine as of 12/31/21 3 Year 5 Year 10 Year Total Return 47.7% 25.2% 195.8% TBV/Sh CAGR 11.7% 10.0% 7.2% EPS CAGR 10.7% 12.3% 8.8% Total Assets CAGR 8.6% 7.3% 9.1%
Slide 7: History of Delivering Strong and Stable Financial Performance
History of Delivering Strong and Stable Financial Performance ROAA ROAE 1.80% 15.00% 1.50% 12.50% 1.20% 10.00% 0.90% 7.50% 0.60% 5.00% 0.30% 2.50% 0.00% 0.00% 130014 «15 16 «17, 11819 "20 "21. Be 130014 (15 "16 17 "18 "19 "200 ‘21 om Efficiency Ratio History of exceeding peer average performance 00%
Slide 8: Recent Accomplishments and Activities
Recent Accomplishments and Activities ¢ Record financial performance in 2021 ¢ Repurchased 161,556 shares of Camden National common stock through May 24, 2022 * Continued investment in technology and digital offerings to consistently enhance the overall customer experience and providing customers wi
Slide 9: Corporate governance and sustainability practices
We believe good corporate governance practices that foster diversity and inclusion, environmental stewardship, innovation and social and economic equity will promote sustainability in everything we do. € 3.7 MILLION pages of paper saved by encouraging Paperless statements Created a Diversity, Equity
Slide 10: Second Quarter 2022 Highlights
Second Quarter 2022 Highlights * Second quarter earnings before tax and provision Net Income (non-GAAP) increased 6% over last quarter $15.0 million * Total loans growth of 5% in the second quarter Diluted Earnings Per Share * — Provision for credit losses of $2.3 million to $1.02 support both stron
Slide 11: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income (Sin millions) Balance Sheet Position and Update + Balance sheet is asset sensitive in Year 2 56-8 S368 S263. (modeled); strategies employed result in asset 35.3 $34.7 $33.5 19 $2.7 one sensitivity in Year 1 _ + Loan growth driven by fi
Slide 12: Growing and Diversified Revenue Stream
Growing and Diversified Revenue Stream ¢ Annual Non-Interest Income consistently 24% - 27% of Total Revenue + SBA PPP loans contributed $8.2 million to 2021 and $1.2 million to YTD 6/30/22 total revenue ¢ 2Q22 Non-Interest Income percentage of Total Revenue higher due to lower percentage of mortgage
Slide 13: • • • 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.
• • • 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10. 0% 0 500 1000 15000 2000 25000 3000
Slide 14: Loan Portfolio
Loan Portfolio Residential Real Estate + 67% located in Maine and 25% in Massachusetts + 61% are primary residences, 30% second homes and 9% investment property + 97% of balances at </= 80% LTV (or supplemented with private mortgage insurance) Commercial Real Estate + 66% of real estate located in M
Slide 15: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets e ACLon loans at a 5.9x coverage of NPLs at 6/30/22 e Annualized YTD net charge-offs were 0.02% of average loans at 6/30/22 There were no loans operating under a short-term deferral arrangement at 6/30/22 « Loans 30-89 days past due were 0.06% of total loans
Slide 16: Investment Portfolio
Investment Portfolio + Deployed portion of excess liquidity in 2020 Securities Portfolio Mix and Trend” and 2021 into the investment portfolio $ in millions) $1,426 . Average yield (FTE) of 1.91%, up 8 bps linked- quarter . Unrealized losses on investment portfolio $1,091 24% increased to ($76.5) mi
Slide 17: Funding Mix
Funding Mix Deposits * Average balance of $4.4 billion * Average deposit cost of 0.21% + 3" highest deposit market share in Maine (8.3% of deposits as of 6/30/21) * Loan-to-deposit ratio of 82% at 6/30/22, up from 77% at 3/31/22 * $4.2 billion of non-maturity deposits (incl. brokered) are at an aver
Slide 18: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CET1) Ratio 9.53% 9.55% 9.13% g.g2% 9.25% 14.36% 14.44% 542% 14.71% sa 10% 11.62% 11.80% 12-45% 12.47% 11.90% Required Minimumd) 10.50% Required Required inimumd) Minimum) 7.00% 4.00% 2018 © 2019«2020S
Slide 19: Stock price appreciation and average dividend yield
15 Year Stock price appreciation of 92.23% Average dividend yield of 3.01%
Slide 20: TBV Per Share and Dividends as a % of Net Income
TBV Per Share(a) Dividends as a % of Net Income • • • •
Slide 21: Appendix
Appendix ¢ NATIONAL 2 CORPORATION
Slide 22: Seasoned Management Team
Seasoned Management Team Years of Position Banking eee Experience Greg Dufour President and CEO 62 30+ 2001 Mike Archer, CPA EVP Chief Financial Officer 38 9 2013 Joanne Campbell EVP Enterprise Risk Management & Chief Risk Officer 60 30+ 1996 William Martel EVP Technology & Support Services 52 20+ 2
Slide 23: Income Statement
Income Statement $ thousands 2Q22 122 4Q21 3Q21 2Q21 Net interest income $36,534 $36,365 $35,567 $34,746 33,529 Non-interest income $11,141 $9,825 $12,101 $11,099 $11,320 Total revenue $47,675 $46,190 $47,668 $45,845 $44,849 Non-interest expense $26,556 $26,209 $26,968 $26,263 25,590 Pretax, pre-pro
Slide 24: Balance Sheet
Balance Sheet $ millions 2Q22 122 4Q21 3Q21 2Q21 Loans $3,724 $3,534 $3,431 $3,326 $3,301 Investment Securities $1,353 $1,437 $1,523 $1,471 $1,416 Total Assets $5,466 $5,420 $5,500 $5,503 $5,152 Deposits $4,527 $4,577 $4,609 $4,605 $4,294 Borrowings $416 $282 $256 $256 $215 Shareholders’ Equity $446
Slide 25: Credit Quality Metrics
Credit Quality Metrics NPAs / Assets 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Loan 2.10% 1.75% 1.40% 1.05% 0.70% 0.35% 0.00% Camden CORPORATION Loss Reserves / Gross Loans‘ 130014 «15 (‘16 "17 ‘18 "19 ‘20 ‘21 YTD "22 ——Camden National Corp. ——Peer Group NCOs / Average Loans 0.90% 0.75% 0.60% 0.45%
Slide 26: Top Lenders Origination Units Rank
Top 15 Lenders Origination Units Rank % of Total Bangor Savings Bank 2,392 1 10.9% Camden National Bank 1,516 2 6.9% Quicken Loans 1,271 3 5.8% Kennebec Savings Bank 897 4 4.1% First, N.A. 850 5 3.9% USA - various agencies 770 6 3.5% United Wholesale Mortgage 735 7 3.3% Key Bank 698 8 3.2% Machias S
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