Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (February 2015)
29 slides from Camden National's investor presentation, Feb 11, 2015
Slide 1: February 11, 2015
February 11, 2015 NASDAQ: CAC 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information presented may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties some of which are
Slide 3: Camden National Corporation
Camden National Corporation Camden National Corporation is a Maine-based community bank focused on delivering long- term shareholder value through banking, brokerage and wealth management services in Maine, New Hampshire and select markets of Northern New England. 3
Slide 4: Camden National Corporation Overview
Camden National Corporation Overview Corporate Snapshot • Headquartered in Camden, ME; Founded 1875 • Subsidiaries: • Camden National Bank - $2.8 billion Assets • Acadia Trust - $711 million AUM • 471 Employees • 44 Branch Locations Financial Overview Shareholder Profile • Shares Outstanding 7.4 mil
Slide 5: Camden National Corporation Profile
Camden National Corporation Profile • Founded 1875 in Camden, Maine • Largest publicly traded community bank in Maine and Northern New England • Second largest Maine based bank • Fourth in the state for deposit market share Source: SNL Financial 5
Slide 6: Financial Highlights: Balance Sheet
(in 000’s) 12/31/14 12/31/13 Loans (a) $1,773 $1,580 Investment Securities 804 828 Total Assets 2,790 2,604 Deposits (b) 1,932 1,814 Borrowings 577 530 Shareholders’ Equity 245 231 (a) Loan growth since 12/31/13 of $192.2 million, or 12%. (b) Deposit growth since 12/31/13 of $118.2 million, or 6.5%.
Slide 7: Financial Highlights
12/31/14 12/31/13 Net Income (in millions) $24.6 $22.8 Diluted Earnings per Share $3.28 $2.97 Return on Tangible Equity 13.46% 14.55% Return on Assets 0.92% 0.88% Efficiency Ratio 61.58% 62.78% Net Interest Margin 3.11% 3.20% Financial Highlights December 31, 2014 and 2013 7
Slide 8: Loan Profile
Total Loans: $1.77 billion Yield: 4.23% Loan Profile As of 12/31/14 • $37 million legal lending limit • Largest relationship $32 million • Top industry exposures: • Lodging of $181 million • Nonresidential building operators of $171 million • 9% out of state Commercial & CRE loans of total loans Cha
Slide 9: Investment Portfolio
Portfolio Stats Market Value $783 Million Average Yield 2.25% Duration 3.52 Years Premium $8.9 Million Premium as % of Portfolio 1.14% Investment Portfolio As of 12/31/14 Excludes FRB/FHLB stock of $20 million 9 MBS 48% Agency CMO 45% Municipals 6% Non-Agency 1% Book Value - $784 Million
Slide 10: Funding
Funding: $2.51 billion Total Funding Cost: 0.50% Deposit Cost: 0.28% Funding As of 12/31/14 Change in Funding Mix (Average Balances) 10 Checking 30% Savings/Money Market 26% CD's 21% Borrowings 23% Funding Mix $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2008 2009 2010 2011 2012 2013 2014 M il
Slide 11: Net Interest Margin, Cost of Funds and Interest Rate Risk
Net Interest Margin Cost of Funds Average Asset Yield Proxy Peer – Average of 17 publicly traded commercial and savings banks in the Northeast (as of 12/31/14) National Peer – 226 Banks and Thrifts $1-$5 billion-excl. merger targets (as of 12/31/14) Source: SNL Financial Interest Rate Risk (Assumes
Slide 12: Why Camden National?
Why Camden National? • Earnings power and capital generation to fund growth • Successful record of acquired and organic growth • Disciplined risk management • Strategic repositioning for future shareholder value • Long-term value and return to shareholders 12
Slide 13: Solid Earnings Performance to Fund Growth
Solid Earnings Performance to Fund Growth • Investment in branches, lenders, and technology impact financial performance in the short-term • Driven to create consistent returns for our shareholders • Efficient operations focused on revenue generation Proxy Peer – Average of 17 publicly traded commer
Slide 14: Solid Track Record of Organic and Acquired Growth
Solid Track Record of Organic and Acquired Growth Asset Growth History Source: SNL Financial 14 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Assets (in millions) United Corp. $54 million KSB
Slide 15: Disciplined Risk Management Culture
Disciplined Risk Management Culture • Strong capital growth to support future growth • Credit quality consistent with Northeast peer group • Stable asset quality through economic downturn NPAs to Total Assets Net Charge Offs to Average Loans Total Risk Based Capital Highlights Proxy Peer – Average o
Slide 16: Strategic Repositioning: Focus on Growth Markets
Source: SNL Financial Strategic Repositioning Focus on Growth Markets Franklin County Branch Divestiture ($86MM Deposits) I-95 Corridor BofA Branch Acquisition ($287MM Deposits) Mid-Coast Region ($917MM Deposits) 16
Slide 17: Strategic Repositioning: Preparing for the Future
• Branch Acquisitions • Acquisition of 14 branches from Bank of America resulted in $287 million in core deposits • Increased our market share in Maine and improved presence in growth markets • Earn back of Tangible Book Value within four years • Branch Divestitures/Consolidation • Sold five branche
Slide 18: Strategic Repositioning: Preparing for the Future
• Talent Acquisition and Development • Hired 10 commercial bankers and mortgage originators • Improved credit administration • Internal management programs • New Markets – Manchester, New Hampshire • Experienced commercial real estate lender with 25 years • Loan production office based delivery plat
Slide 19: Long Term Value: Consistent Shareholder Returns
$8.57 $10.34 $11.81 $13.77 $14.48 $15.65 $16.40 $15.40 $17.79 $15.62 $18.86 $20.91 $22.66 $23.68 $23.98 $26.52 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tangible Book Value Long Term Value Consistent Shareholder Ret
Slide 20: Long Term Value: Dividend Commitment
• Consistent quarterly dividends and periodic special dividends • Dividend yield compared to National Peer Long Term Value Dividend Commitment Dividend Yield 20 $.99 $1.00 $1.00 $1.50 $1.00 $1.08 $1.11 $.00 $.20 $.40 $.60 $.80 $1.00 $1.20 $1.40 $1.60 2008 2009 2010 2011 2012 2013 2014 Dividends Per
Slide 21: Long Term Value: Relative Total Return Performance
• Compared to NASDAQ Bank and S&P 500 Bank • Compared to Proxy Peer Group Long Term Value Relative Total Return Performance (10-Year) 21 52.1% (13.0%) (35.0%) (100.0%) (80.0%) (60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0% 80.0% Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 D
Slide 22: Camden National Corporation
@ Camden National Corporation
Slide 23: Seasoned Management Team
Seasoned Management Team Age Years of Banking Experience Year joined Camden Greg Dufour, President and CEO 54 25+ 2001 Debbie Jordan, CPA, COO and CFO 49 20+ 2008 Joanne Campbell, EVP Risk Management 52 30+ 1996 Peter Greene, EVP Operations and Technology 55 30+ 2008 Tim Nightingale, EVP Senior Loan
Slide 24: Market Demographics
Market Demographics Current Southern Southern Footprint ME NH Market Segments & Growth Total Households 291,602 202,605 453,657 Projected Growth, 2014 to 2019 0.2% 1.9% 1.3% Mass Affluent Households 78,216 102,179 259,169 % of Total Households 26.8% 50.4% 57.1% Number of Businesses 41,767 32,627 65,
Slide 25: Deposit Market Share
Deposit Market Share 62% 6% 16% 10% 8% 25% 7% 2% 6% 41% 7% Source: SNL Financial FDIC Deposit Market Share data as of 6/30/14. (excludes credit unions) Maine 2014 Rank Institution 2014 Number of Branches 2014 Total Deposits in Market ($000) 2014 Total Market Share (%) 1 Toronto-Dominion Bank 50 3,16
Slide 26: Proxy Peer Group
Proxy Peer Group Arrow Financial Corporation - NY Bar Harbor Bankshares - ME Berkshire Hills Bancorp, Inc. - MA Brookline Bancorp, Inc. - MA Century Bancorp, Inc. - MA Chemung Financial Corporation - NY Enterprise Bancorp, Inc. - MA Financial Institutions, Inc. - NY First Bancorp, Inc. – ME Independ
Slide 27: Reconciliation of non-GAAP to GAAP Financial Measures
Reconciliation of non-GAAP to GAAP Financial Measures 27 Camden National presents its efficiency ratio using non-GAAP information. The GAAP-based efficiency ratio is non- interest expense divided by net interest income plus non -interest income from the consolidated statements of income. The non-GAA
Slide 28: Reconciliation of non-GAAP to GAAP Financial Measures
Reconciliation of non-GAAP to GAAP Financial Measures 28 Return on average tangible equity is the ratio of (i) net income, adjusted for tax -effected amortization of intangible assets, and goodwill impairment to (ii) average equity, adjusted for goodwill and other intan gible assets. The following t
Slide 29: Reconciliation of non-GAAP to GAAP Financial Measures
Reconciliation of non-GAAP to GAAP Financial Measures 29 The following table provides a reconciliation between tangibl e shareholders' equity to tangible assets and shareholders' equity to assets, which has been prepared in accordance with GAAP: (In Thousands) December 31, 2014 December 31, 2013 Sha
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