Camden National Corporation · NASDAQ:CAC
Camden National — Q3 2020 Earnings Presentation
14 slides from Camden National's earnings presentation, Oct 27, 2020
Slide 1: Third Quarter 2020 Earnings Conference Call
Third Quarter 2020 Earnings Conference Call October 27, 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: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights Net Income • Net income up 53% over last quarter $16.8 million driven by lower loan loss provision Diluted Earnings Per Share • Loan deferrals declined to 5.5% of loans, down from 16.4% last quarter $1.11 • Asset quality remains strong Return on Average Assets 1.34% • M
Slide 4: Income Statement
Income Statement Increase/(Decrease) $ thousands 3Q20 2Q20 3Q19 Highlights • SBA PPP loans added $2.4mm to 3Q20 interest Net interest income $34,481 ($58) $2,558 income • Year-over-year increase driven by strong mortgage Non-interest income $12,696 $636 $1,957 banking income Total revenue $47,177 $5
Slide 5: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NII and NIM Total deposit costs 2020 ($ in millions) $40.0 5.00% 0.76% 0.75% $34.5 $34.5 4.50% $35.0 $31.9 4.00% 0.60% $30.0 3.09% 3.11% 3.00% 3.50% 0.41% 3.00% 0.34% 0.31% 0.31% $25.0 2.50% 0.28% 0.27% 2.00% $20.0 1.50% $15.0 1.00% 3Q19 2Q20 3Q20 Jan Feb
Slide 6: Loan Portfolio
Loan Portfolio Residential Real Estate Balances of $3.3 Billion (as of 9/30/20) • 71% located in Maine and 24% in Massachusetts Home Equity 64% are primary residences, 26% second homes and 10% • and Consumer investment property 9% Commercial 11% • 97% of balances at </= 80% LTV(1) (or supplemented w
Slide 7: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry Real Estate Investment Breakdown (as of 9/30/20) (as of 9/30/20) Other Nonresidential Other (14 Industries Buildings <3%) 8% 20% 1-4 Family 8% Office Buildings 28% Real Estate Investment Industrial / 39% Warehouse Restaurants 10% 3% $1.
Slide 8: SBA PPP Loans
SBA PPP Loans Total Total • Funded 11% of Maine’s SBA PPP Balance Tier Units Production Outstanding(1) ($ in millions) ($ in millions) loans by dollar amount $0 - $50,000 2,200 $35.1 $34.9 • SBA PPP loans yielded 4.16% and $50,001 - $250,000 650 $68.9 $67.1 3.79% during Q3 and Q2, $250,001 - $500,00
Slide 9: Loan Deferral Details
Loan Deferral Details 6/30/2020 9/30/2020 Category Deferred % of Category Deferred % of Category ($ in millions) Volume Deferred Volume Deferred Lodging $174.8 66.2% $50.2 19.0% Real Estate Investment $102.0 14.0% $12.8 1.7% Health Care/Social Asst. $29.9 19.8% $9.1 6.1% Retail Trade $28.1 19.4% $4.
Slide 10: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets ALL / NPLs 326.55% 12/31/2009 1.07% 225.77% 0.67% 171.17% 0.50% 118.92% 0.34% 92.28% 12/31/2009 0.25% 0.22% 109.31% 2016 2017 2018 2019 3Q20 2016 2017 2018 2019 3Q20 NCOs / Average Loans ALL / Total Loans 12/31/2009 12/31/2009 0.37% 1.11% 1.33% 0.89% 0.87% 0.
Slide 11: Securities Portfolio
Securities Portfolio Securities Portfolio Mix • Book value was $1.1 billion, up $58 million, or 6%, (Book Value at 9/30/20) linked-quarter U.S. Agencies and Other 5% • Average yield of 2.26%, down 34 bps linked-quarter Municipal 11% CMO - • Unrealized net gain of $37.7 million on AFS compared Agency
Slide 12: Incurred Loss vs CECL
Incurred Loss vs CECL Allowance for Credit Losses (includes the allowance for loan losses and off-balance sheet credit exposures) ($ in millions) 1/1/2020 9/30/2020 ACL $25.2 $36.4 ACL as % of Loans 0.81% 1.11% Incurred Loss YTD Provision for Credit Losses $12.2 YTD Provision for Credit Losses as 0.
Slide 13: Strong Liquidity Position
Strong Liquidity Position Well Positioned to Support Liquidity Needs Liquidity Sources (9/30/20) Amount ($ in millions) Excess Cash $297.8 Unpledged Investment Securities $354.3 Lines of Credit Exposure Unpledged Municipal Securities $102.1 6% Increase in Utilization YoY Over Collateralized Securiti
Slide 14: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CET1) Ratio 15.15% 11.80% 12.21% 9.53% 9.55% 14.04% 14.14% 14.36% 14.44% 11.27% 11.30% 11.62% 8.83% 9.07% 8.96% Required Minimum(1), 10.50% Required Minimum(1), Required 7.00% Minimum(1), 4.00% 2016 20