Camden National Corporation · NASDAQ:CAC
Camden National — Piper Jaffray Financial Institutions Conference 2017
25 slides from Camden National's conference presentation, May 15, 2017
Slide 1: Piper Jaffray Financial Institutions Conference
Piper Jaffray Financial Institutions Conference Gregory Dufour | President & Chief Executive Officer Deborah Jordan | Chief Operating & Financial Officer May 15 - 17, 2017 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 is the largest bank headquartered in Northern New England • $3.9 billion in assets • 60 branches (Maine) and 2 loan offices (New Hampshire and Massachusetts) • Market cap over $650 million • Average daily share volume of 45,000 • Analyst Coverage • Piper
Slide 4: 1st Quarter 2017 Financial Highlights
1st Quarter 2017 Financial Highlights • Strong earnings performance o Net income of $10.1 million o Return on tangible equity: 14.37%(a) o Return on assets: 1.05% o Efficiency ratio: 58.00%(a) o Tangible common equity ratio: 7.74%(a) • Solid growth o Total loans $2.6 billion; annualized growth rate
Slide 5: Why Camden National?
Why Camden National? Organic franchise growth, opportunistic acquisitions 4 Credit: • Strong credit culture and history • Disciplined structure and process • Low nonperforming assets Culture: • Experienced, consistent leadership • Strong community-spirit • Continued branch optimization • Simple prod
Slide 6: Strong Performance to Northeast Bank Peer Group
Strong Performance to Northeast Bank Peer Group 5 Source: SNL Financial. 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), Brooklin
Slide 7: Focused on Building Market Share: Asset Growth History
Focused on Building Market Share: Asset Growth History 6 Successful track record of growing the franchise through combination of organic growth and acquisitions (42% organic growth over 20 year horizon). $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 1996 1998 2000 2002 2004 2006 20
Slide 8: Focused on Building Market Share: Market Expansion
Focused on Building Market Share: Market Expansion The Bank of Maine (SBM Financial) • October 2015 – simultaneous close and conversion • Deposits: $687 million • Loans: $615 million • Expansion into high growth Southern Maine market • Widens mortgage banking reach to Massachusetts • Positions bank
Slide 9: Expansion Strategies
Expansion Strategies • Introduced MortgageTouch, an online mortgage application • Hired two additional commercial lenders in New Hampshire • Announced opening of a Portsmouth, New Hampshire loan production office (site TBD) • Hired wealth management business developer for the Southern Maine/New Hamp
Slide 10: Focused on Building Market Share: Deposit Opportunity in Maine
Focused on Building Market Share: Deposit Opportunity in Maine 9 Source: SNL Financial. Deposit market share data as of June 2016. Average Funding: $3.5 billion Average Funding Cost: 0.53% Average Deposit Cost: 0.30% Deposits and Funding 3/31/17 STATE OF MAINE ($ in millions) Rank Institution Deposi
Slide 11: Focused on Growing and Diversifying Revenue
Focused on Growing and Diversifying Revenue Q1 2017 fee income represented 24% of total revenue (net interest income plus fee income), compared to 22% for Q1 2016 10 14% 18% 20% 21% 27% $0 $1 $2 $3 Other income Mortgage banking income Wealth management & brokerage Debit card income Service charges M
Slide 12: Focused on Improving Productivity and Creating Efficiencies
Focused on Improving Productivity and Creating Efficiencies 11 • Fully realized 37% cost save of upon completion of SBM acquisition • Consolidated/sold 16 branches over past five years 50 44 44 64 61 60 $32 $34 $36 $38 $40 $42 $44 2012 2013 2014 2015 2016 Q1 2017 Mill io n s Deposits per Branch (1)
Slide 13: Balanced Loan Mix & Strong Credit Culture
Balanced Loan Mix & Strong Credit Culture 12 3/31/17 Average Loans: $2.6 billion Average Yield: 4.15% • Internal lending limit of $37 million • Four Credit Relationships over $25 million 1. Assisted Living 2. Insurance 3. Hospital 4. Business Office • Commercial Diversification $349 million Nonresid
Slide 14: 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 13 NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans N
Slide 15: Investments & ALM Position
Investments & ALM Position Interest Rate Risk Estimated Changes In Net Interest Income(1) Year 1 +200bp (1.3)% -100bp (1.8)% Year 2 +200bp 3.0 % -100bp (8.4)% Average Investments: $936 million Average Yield: 2.45% Duration: 4.2 3/31/17 MBS 54% Agency CMO 31% Municipals 11% Agency/Sub. Notes/Other 1%
Slide 16: Shareholder Value Long-Term Metrics
Shareholder Value Long-Term Metrics 15 (a) 2005 and 2011, special dividend of $0.50 per share. (b) The increase in 2015 due to reduction in net income related to merger and acquisition costs of $7.2 million, after tax. (c) 2006 issuance of trust preferred and share buyback. Dividends as % of Net Inc
Slide 17: Shareholder Value Total Return
Shareholder Value 15 Year Total Return 16 Source: SNL Financial • Stock price appreciation of 175.47% • Average dividend yield of 2.81% 331% 209% 153% -50% 0% 50% 100% 150% 200% 250% 300% 350% 400% May-02 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-
Slide 18: Investment Summary
Investment Summary Proven Management Team • Delivered on previous acquisition commitments • Diverse experience from community and large bank perspectives Strong Market Share and Brand Recognition • 140+ year operating history • 3rd overall deposit market share in Maine • #2 mortgage originator in Ma
Slide 19: Appendix
amaen NATIONAL CORPORATION Appendix
Slide 20: Seasoned Management Team
Seasoned Management Team 19 Name Position Age Years of Banking Experience Year joined Camden Greg Dufour President and CEO 57 25+ 2001 Debbie Jordan, CPA COO & CFO 51 20+ 2008 Joanne Campbell EVP Risk Management 54 30+ 1996 Edmund Hayden EVP Chief Credit Officer 61 30+ 2015 Tim Nightingale EVP Senio
Slide 21: Financial Highlights: Balance Sheet
Financial Highlights 20 3/31/17 vs. 3/31/16 Change (in million’s) 3/31/17 3/31/16 Loans $2,645 $2,493 6% Investment Securities 943 910 4% Total Assets 3,938 3,763 5% Deposits 2,937 2,675 10% Borrowings 557 659 (15%) Shareholders’ Equity 398 375 6% Tier 1 Leverage Ratio 8.90% 8.42% - Balance Sheet
Slide 22: Net Income and Key Ratios
Net Income and Key Ratios Financial Highlights 21 3/31/17 3/31/16(a) Net Income (in millions) $10.1 $8.6 Diluted Earnings per Share $0.64 $0.56 Return on Tangible Equity(b) 14.37% 13.56% Return on Assets 1.05% 0.93% Efficiency Ratio(b) 58.00% 61.18% Net Interest Margin (Fully-Taxable Equivalent) 3.1
Slide 23: 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 22 ROAA ROAE Net Interest Margin Efficiency Ratio -0.20% 0.00% 0.20% 0.40% 0.
Slide 24: Mortgage Banking Activity
Mortgage Banking Activity 23 Top 15 Lenders Originations Rank % of Total Bangor Savings Bank 810 1 9.2% Camden National Bank 562 2 6.4% Residential Mortgage Services Inc. 446 3 5.1% TD Bank, N.A. 418 4 4.8% Key Bank 413 5 4.7% Quicken Loans 403 6 4.6% First, N.A. 305 7 3.5% Kennebec Savings Bank 277
Slide 25: Market Overview
Market Overview Maine • Projected 7.45% growth in household income for 2016 to 2021 • Unemployment rate of 3.0% as of March 2017 • Hospitality and tourism generate more than $2 billion in household income annually New Hampshire • Projected 9.90% growth in household income for 2016 to 2021 • Unemploy
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