Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (August 2021)
28 slides from Camden National's investor presentation, Aug 3, 2021
Slide 1: Investor Presentation
1 Investor Presentation Gregory Dufour | President & Chief Executive Officer Gregory White | Chief Financial Officer August 3, 2021
Slide 2: Forward Looking Statements
2 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 ar
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 • $5.2 billion in assets • 58 banking centers • Maine - 57 • New Hampshire - 1 • 2 loan production offices • New Hampshire - 1 • Massachusetts - 1 • $670 million market cap • 50 day avg share volume of a
Slide 5: Why Camden National?
5 Why Camden National? Organic franchise growth, opportunistic acquisitions Focused: • Gaining market share • Adherence to strategic plan • Opportunistically reviewing complementary acquisitions • Solid core funding and sticky deposit base Culture: • Experienced leadership team • Strong community sp
Slide 6: Awarded and Recognized
6 Awarded and Recognized Top honors for serving our constituents: In 2020, we learned that 8 out of 10 of our consumer customers are very likely to recommend us to friends and family – a strong indicator of customer satisfaction and loyalty.
Slide 7: Second Quarter 2021 Highlights
7 Second Quarter 2021 Highlights • Second quarter net income down 8% compared to last quarter’s record earnings • Second quarter mortgage banking income $4.5 million lower on a linked quarter basis due to strategic shift to hold more residential mortgage production in portfolio • Provision release o
Slide 8: Net Interest Income and Net Interest Margin
8 Net Interest Income and Net Interest Margin Estimated Changes in Net Interest Income(1) Year 1 Year 2 +200 bps 0.81% 5.86% -100 bps -1.27% -11.41% (1) Assumes flat balance sheet, no changes in asset/funding mix, and a parallel and pro rata shift in rates over a 12 month period. In the down -100 bp
Slide 9: Diversified Revenue
9 Diversified Revenue Fee income is 25% of total revenue (net interest income plus fee income) All data is presented as of June 30, 2021.
Slide 10: Loan Portfolio
10 Loan Portfolio Residential Real Estate • 68% located in Maine and 25% in Massachusetts • 63% are primary residences, 29% second homes and 8% investment property • 97% of balances at </= 80% LTV(1) (or supplemented with private mortgage insurance) Commercial Real Estate • 68% of real estate locate
Slide 11: Commercial Diversification
11 Commercial Diversification CRE and Commercial Loans by Industry (as of 6/30/21) Real Estate Investment Breakdown (as of 6/30/21) Exposure to COVID-19 impacted industries • $389.6 million, or 12% of total loan portfolio, is within Lodging, Sr. Living & Care Facilities, Restaurants, and Travel & Re
Slide 12: SBA PPP Loans
12 SBA PPP Loans Year Units Total Production ($ in millions) Total Outstanding(1) ($ in millions) 2020 3,034 $244.8 $29.5 2021 1,620 $102.2 $102.0 Total 4,654 $347.0 $131.5 Period Origination Fees ($ in millions) Interest ($ in millions) Total Income ($ in millions) Full Year 2020 $6.2 $1.6 $7.8 Q1
Slide 13: COVID-19 Loan Deferral Details
13 COVID-19 Loan Deferral Details 12/31/2020 3/31/2021 6/30/2021 Category ($ in millions) Deferred Volume % of Category Deferred Deferred Volume % of Category Deferred Deferred Volume % of Category Deferred Real Estate Investment $7.1 0.9% $0.9 0.1% $0.0 0.0% Lodging $6.9 2.6% $0.0 0.0% $0.0 0.0% Ot
Slide 14: Solid Credit Quality
14 Solid Credit Quality Data presented for periods prior to 2020 does not reflect the impact of CECL, as the Company has elected to delay implementation of CECL pursuant to the CARES Act. NPAs / Total Assets ACL on Loans / NPLs NCOs / Average Loans ACL on Loans / Total Loans
Slide 15: Securities Portfolio
15 Securities Portfolio ($ in millions) 2Q20 3Q20 4Q20 1Q21 2Q21 Average Book Value $961 $1,029 $1,067 $1,065 $1,244 Book Yield (FTE) 2.60% 2.26% 2.05% 1.87% 1.78% Modified Duration 4.12 3.91 3.95 4.31 4.75 All data is presented as of June 30, 2021. • Book value was $1.4 billion, up $281 million, or
Slide 16: Funding Mix
16 Funding Mix All data is presented as Q2 2021 averages unless otherwise stated. Average Funding Q2 2021 Deposits • Average balance of $4.0 billion • Average deposit cost of 0.16% • 2nd highest deposit market share in Maine (10.8% of deposits as of 6/30/20) • 8th highest deposit market share in Yor
Slide 17: Strong Capital Position
17 Strong Capital Position ($ in millions) Ratios at 6/30/21 Amount Required Minimum(1) Cushion Capital Above Required Minimum Asset Growth Tier 1 Leverage 9.48% $474.9 4.00% $274.6 $6,864.3 Total Assets for Leverage Ratio $5,008.3 Common Equity Tier 1 12.94% $431.9 7.00% $198.3 $2,832.5 Total Risk
Slide 18: Shareholder Value: Long-Term Metrics
18 Shareholder Value: Long-Term Metrics a) This is a non-GAAP measure. Refer to the Company’s financial information filed with the SEC for the respective period. b) 2005 and 2011, special dividend of $0.50 per share. c) 2015 increase is due to reduction in net income related to merger and acquisitio
Slide 19: Shareholder Value: Total Return
19 Shareholder Value: 15 Year Total Return • Stock price appreciation of 48.62% • Average dividend yield of 2.93% Source: S&P Global Data range: July 28, 2006 – July 28, 2021 370% 135% 135% 75%
Slide 20: Investment Summary
20 Investment Summary Proven Management Team • Delivered on previous acquisition commitments • Long-term strategic perspective • Diverse experience from community and large bank perspectives Strong Market Share and Brand Recognition • 146 year operating history • #2 overall deposit market share in M
Slide 21: Appendix
Appendix ¢ A s NATIONAL ai CORPORATION
Slide 22: Seasoned Management Team
22 Seasoned Management Team Name Position Age Years of Banking Experience Year joined Camden Greg Dufour President and CEO 61 30+ 2001 Greg White EVP Chief Financial Officer 56 30+ 2020 Joanne Campbell EVP Risk Management 59 30+ 1996 William Martel EVP Technology & Support Services 51 20+ 2020 Jenni
Slide 23: Income Statement
23 Income Statement $ thousands 2Q21 1Q21 4Q20 3Q20 2Q20 Net interest income $33,529 $32,364 $35,461 $34,481 $34,539 Non-interest income $11,320 $15,215 $14,331 $12,696 $12,060 Total revenue $44,849 $47,579 $49,792 $47,177 $46,599 Non-interest expense $25,590 $24,899 $26,692 $25,221 $23,509 Pretax,
Slide 24: Balance Sheet
24 Balance Sheet $ millions 2Q21 1Q21 4Q20 3Q20 2Q20 Loans $3,301 $3,259 $3,261 $3,313 $3,363 Investment Securities $1,416 $1,131 $1,133 $1,125 $1,068 Total Assets $5,152 $5,089 $4,899 $5,154 $4,959 Deposits $4,294 $4,212 $4,005 $4,224 $3,996 Borrowings $215 $246 $247 $294 $330 Shareholders’ Equity
Slide 25: Historical Credit Metrics
25 Historical Credit Metrics NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans(1) Nonaccrual Loans / Loans (1) CNC loan loss reserves / gross loans as presented under the incurred loss model. Note: Peer Group defined as publicly traded banks and thrifts headquartered in the United
Slide 26: Profitability Trends
26 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, excluding merger targets. Source: S&P Global ROAA ROAE Net Interest Margin Efficiency Ratio
Slide 27: Deposit Cost Trend
27 Deposit Cost Trend • 54% of CD portfolio matures in the next 12 months at 0.38% • Redesigned consumer checking product set, shifting $272 million of interest checking balances to non- interest checking • $3.9 billion of non-maturity deposits at 0.13% • $1.2 billion have balances >$1 million at a
Slide 28: Maine Mortgage Banking Activity
28 Maine Mortgage Banking Activity Source: MRS, Inc. Data obtained from registry of deeds throughout the state of Maine. Top 15 Lenders Origination Units Rank % of Total Bangor Savings Bank 3,057 1 9.8% Quicken Loans 2,345 2 7.5% Camden National Bank 1,754 3 5.6% Residential Mortgage Services Inc. 1
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