Camden National Corporation · NASDAQ:CAC
Camden National — Piper Jaffray Financial Institutions Conference 2016
25 slides from Camden National's conference presentation, May 5, 2016
Slide 1: Piper Jaffray Financial Institutions Conference
Piper Jaffray Financial Institutions Conference Gregory Dufour | President & Chief Executive Officer Deborah Jordan, CPA | EVP, Chief Operating and Financial Officer May 4-6, 2016 0
Slide 2: Forward Looking Statements
Forward Looking Statements 1 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: 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 4: Camden National Corporation key facts
Camden National Corporation Headquarters Camden, ME Employees Over 650 Ticker CAC (NASDAQ) Current Price $43.51 52 Week Range $37.23 to $47.49 Avg. Daily Volume 27,600 Assets $3.8 billion Loans / Deposits $2.5 billion / $2.7 billion Market Cap $447 million Analyst Coverage Piper Jaffrey (overweight
Slide 5: Opportunistic but disciplined approach to growth
Opportunistic but disciplined approach to growth 4 • Successful track record of growing the franchise through combination of organic growth and acquisitions (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 201
Slide 6: Focused Priorities: Build Market Share
Focused Priorities Following a strategic plan with three major initiatives: 5 • 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: Ac
Slide 7: Focused Priorities: Create Efficiencies
Focused Priorities Maintain discipline around expense control 6 • Focus on improving Efficiency Ratio • The Bank of Maine (SBM Financial) cost savings of $11 million in 2016 • Branch Right Sizing • Branch consolidation: 1 location (2016), 4 locations (2015), and 2 locations (2013) • Divested 5 rural
Slide 8: Focused Priorities: Expand Business Banking Services
Focused Priorities Strategically positioned for future growth 7 • 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 upgr
Slide 9: Strategic Plan for Growth
Strategic Plan for Growth 8 Core Market Acquired Market Growth Target Camden National Corporation • 63 banking centers • 3 wealth management offices • 1 outside loan production office (NH) • 1 outside mortgage office (MA) Positions us in • Cumberland and York County • 36% of Maine’s population • 35%
Slide 10: 2015 Core Earnings Results
2015 Core Earnings Results Solid earnings performance complimented by cost savings and momentum from The Bank of Maine (SBM Financial) acquisition 9 The Bank of Maine Impact • 11% EPS accretion in 2016 and mid-teens beyond. • Tangible Book Value dilution of 12% with earn back in five years • 15%+ In
Slide 11: Loan Mix & Strong Credit Culture
Loan Mix & Strong Credit Culture • Community-based, relationship focused lenders with local decision making • Larger institutional experience (TD Bank, Citizens) to compliment an already strong credit focus • Significant small-business lending driven by unmatched market expertise • All key credit qu
Slide 12: Funding Mix & Market Share
Funding Mix & Market Share 11 Source: SNL Financial. Deposit data as of June 2015. 3/31/16 Funding:$3.3 billion Total Funding Cost: 0.49% Deposit Cost: 0.26% STATE OF MAINE ($ in millions) Rank Instituition Deposits Branches Market Share % 1 Toronto-Dominion Bank $3,309 49 13.3 2 KeyCorp 2,891 51 11
Slide 13: Peer Analysis
Peer Analysis 12 Camden National Corporation’s peer group consists of the following: Arrow Financial Corporation (AROW), Bar Harbor Bankshares (BHB), Berkshire Hills Bancorp, Inc. (BHLB), Boston Private Financial Holdings, Inc. (BPFH), Brookline Bancorp, Inc. (BRKL), Century Bancorp, Inc. (CNBKA), C
Slide 14: 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 (average dividend payout ratio of 37%) $77 million of share repurchases 0 20,000 4
Slide 15: Investment Summary
Investment Summary Experienced Leaders • 25+ years average banking experience and 12 years with CAC Strong Market Share and Brand Recognition • 140 year operating history • 3rd overall deposit market share in Maine • #2 mortgage originator in Maine, with 7.4% of all mortgage originations in the stat
Slide 16: Why Invest in Camden National?
Why Invest in 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 15
Slide 17: Appendix
amaen NATIONAL CORPORATION Appendix
Slide 18: Seasoned Management Team
Seasoned Management Team 17 Name Position Age Years of Banking Experience Year joined Camden Greg Dufour President and CEO 55 25+ 2001 Debbie Jordan, CPA COO & CFO 50 20+ 2008 Joanne Campbell EVP Risk Management 52 30+ 1996 Carolyn Crosby SVP Human Resources 49 25+ 1996 Mary Beth Haut President/CEO
Slide 19: Total Return
Total Return 18 393% 108% 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 appreciation of 209.40% • Average dividen
Slide 20: Financial Highlights: Balance Sheet
Financial Highlights 19 Organic (in million’s) 3/31/16 3/31/15 Acquired $ % Loans (a) $2,509 $1,792 $628 $89 5% Investment Securities 910 814 40 56 7% Total Assets 3,763 2,811 840 112 4% Deposits 2,675 1,966 687 22 1% Borrowings 659 548 0 111 20% Shareholders’ Equity 375 252 Tier 1 Leverage Ratio 8.
Slide 21: Net Income and Key Ratios
Net Income and Key Ratios Financial Highlights 20 For The Three Months Ended March 31, 2016 2015 2016 2015 Core(a) GAAP Net Income (in millions) $8.8 $6.3 $8.3 $5.6 Diluted Earnings per Share $0.85 $0.84 $0.81 $0.75 Return on Tangible Equity (b) 13.72% 13.10% 9.07% 9.19% Return on Assets 0.94% 0.91%
Slide 22: Profitability Trends
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: SNL Financial 21 Net Interest Margin Efficiency Ratio ROAA ROAE 2.50% 2.75% 3.00% 3.25% 3.5
Slide 23: Historical Credit Metrics
Historical Credit Metrics 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: SNL Financial 22 NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans N
Slide 24: Mortgage Banking Activity
Mortgage Banking Activity • The SBM Financial acquisition positions CAC as the #2 Mortgage Originator in Maine 23 Source: MRS, Inc. Top 15 Lenders Originations Rank % of Total Originations Rank % of Total Bangor Savings Bank 3,469 1 8.5% 3,059 1 8.4% Camden National Bank + The Bank of Maine 3,039 7.
Slide 25: Market Overview
Market Overview Maine • Projected 7.57% growth in household income for 2015 to 2020 • Unemployment rate of 4.0% as of December 2015 • Hospitality and tourism generate more than $2 billion in household income annually New Hampshire • Projected 7.57% growth in household income for 2015 to 2020 • Unemp
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