Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (September 2021)
27 slides from Camden National's investor presentation, Sep 8, 2021
Slide 1: Investor Presentation
Investor Presentation Gregory Dufour | President & Chief Executive Officer Gregory White | Chief Financial Officer September 8-9, 2021 e Cenaten NATIONAL CORPORATION
Slide 2: Forward Looking Statements
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 are
Slide 3: Non-GAAP Financial Measures
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 fina
Slide 4: Camden National Corporation
Camden National Corporation Largest publicly traded bank headquartered in Northern New England « NASDAQ: CAC * Total Assets: $5.2 billion ¢ Market Cap: $700 million * Average Daily Volume: 43,000 ¢ 58 banking centers * Maine - 57 * New Hampshire - 1 * 21loan production offices * New Hampshire - 1 *
Slide 5: Why Camden National?
Why Camden National? Organic franchise growth, opportunistic acquisitions Focused: Consistent Performance: * Gaining market share * Profitability achieved through organic « Adherence to strategic plan growth * Opportunistically reviewing * Improved productivity complementary acquisitions * Disciplin
Slide 6: Awarded and Recognized
Awarded and Recognized Top honors for serving our constituents: kaekkne Kkk kt RAYMOND JAMES S&P Global 2020 SP GLOBAL BEST-PERFORMING COMMUNITY BANKS. 2020 RAYMOND JAMES COMMUNITY, BANKERS CUP. keene FAME FINANCE AUTHORITY OF MAINE 2020 FINANCE AUTHORITY ‘OF MAINE (FAME) LENDER AT ‘WORK FOR MAINE A
Slide 7: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights * Second quarter net income down 8% compared Net Income to the prior quarter’s record earnings $18.1 million * Second quarter mortgage banking income $4.5 . ‘ million lower on a linked quarter basis due to Diluted Earnings Per Share strategic shift to hold more residen
Slide 8: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income in millions) Recent actions and continued focus $34.5 $34.5 $35.5 $33.5 + Hold a larger portion of residential mortgage S17 $24 $3.7 $32.4 — production in portfolio sia * Deploy excess cash into investment portfolio * Commercial loan gr
Slide 9: Diversified Revenue
Diversified Revenue * Non-Interest Income consistently Total Revenue - 5 Year Trend 24% - 27% of total revenue Bivmitions) * SBA PPP loans contributed $7.8 sseg S87 en million to 2020 and $3.5 million to aE 3153.9 : oak 27.0% YTD 6/30/21 total revenue 25.9% 25.1% nsieued ¢ $5.4 million of SBA PPP or
Slide 10: Focused on Efficient Operation
Focused on Efficient Operation since 2013 Camden Balanced approach to investing in the franchise while maintaining efficient operation YTD efficiency ratio through 6/30/21 of 53.76% Continued investments in technology, digital offerings, and customer experience Consolidated/sold 14 branches ¢ NATION
Slide 11: Loan Portfolio
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 (or supplemented with private mortgage insurance) Commercial Real Estate * 68% of real estate located in M
Slide 12: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry Real Estate Investment Breakdown (as of 6/30/21) (as of 6/30/21) Other Nonresidential Buildings Other (14 Industries <3%) 20% Office Buildings 25% Real Estate Wishes tial / Investment ee Restaurants ls x 42% Construction 4% Manufacturin
Slide 13: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets * ACLon loans at a 3.8x coverage of NPLs at oe 6/30/21 0.50% . + Annualized YTD net charge-offs were 0.03% of average loans at 6/30/21 [| . ¢ There were no loans operating under a short-term deferral arrangement at 6/30/21 2016 2017 2018 2019 Oo 2a21 Loans pr
Slide 14: Securities Portfolio
Securities Portfolio Securities Portfolio Mix and Trend * Deployed portion of excess ( in millions) liquidity in 2020 and YTD 6/30/21 into the investment portfolio $1,091 * Average yield (FTE) of 1.78%, down $907 $921 $949 $928 1% 9 bps linked-quarter 12% 10% 12% F i gai 37% * — Unrealized net gain
Slide 15: Funding Mix
Funding Mix Deposits Average Funding Trend ($ in billions) yao + Average balance of $4.0 billion ss $4.23 . + Average deposit cost of 0.16% $3.40 $3.54 So58 a * 24 highest deposit market share in Maine 24.9% ae 13.4% (10.8% of deposits as of 6/30/20) 1.4% se + 8th highest deposit market share in Yor
Slide 16: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio 9.53% 9.55% 9.48% 9.07% 9.13% Required MinimumQ(t), 4.00% 2017 2018 2019 2020 2021 in millions) Tier 1 Leverage Total Risk Based Capital Ratio 15.40% 15.26% 14.14% 14.36% 14.44% Required Minimum(1), 10.50% 2017 2018 Required Minimum Ratios at Gryp ||| ue
Slide 17: TBV Per Share and Dividends as a % of Net Income
TBV Per Share(a) Dividends as a % of Net Income • • • •
Slide 18: Stock price appreciation and average dividend yield
15 Year Stock price appreciation of 60.93% Average dividend yield of 2.93%
Slide 19: Investment Summary
Investment Summary Proven Management Team RBQA * Delivered on previous acquisition commitments * Long-term strategic perspective * Diverse experience from community and large bank perspectives va! Strong Market Share and Brand Recognition @ 146 year operating history (an #2 overall deposit market sh
Slide 20: Appendix
Appendix ¢ Ss NATIONAL 20 CORPORATION
Slide 21: Seasoned Management Team
Seasoned Management Team Years of Position Banking Reanated Experience 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 52 20+ 2020 Jennifer Mirabile EV
Slide 22: Income Statement
Income Statement $ thousands 2Q21 121 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, pre-
Slide 23: Balance Sheet
Balance Sheet $ millions 2Q21 121 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 $546
Slide 24: Historical Credit Metrics
Historical Credit Metrics —+—Camden National Corp. —+Peer Group NPAs / Assets NCOs / Average Loans 3.00% 0.90% 2.50% 0.75% 2.00% 0.60% 1.50% 0.45% 1.00% 0.30% 0.50% 0.15% 0.00% 0.00% 120°'13 14° (‘15 ‘16 ‘17 ‘18 ‘19 '20 YTD 12013 ‘14 15 16 «6'17° "18 «=6'19 "20. «YTD ‘21 ‘21 Loan Loss Reserves / Gro
Slide 25: Profitability Trends
Profitability Trends ROAA 1.80% 1.50% 1.20% 0.90% 0.60% 0.30% 0.00% Net Interest Margin 4.00% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 42013 ‘14 15 "16 ‘17 18 ‘19 '20 YTD "24 —+—Camden National Corp. —+Peer Group ROAE 15.00% 12.50% 10.00% 7.50% 5.00% 2.50% 0.00% "12013 14 15 "16 «17, ‘18 «19 "20. YTD Eff
Slide 26: Deposit Cost Trend
Deposit Cost Trend + 54% of CD portfolio matures in the next 12 months at 0.38% 0.35% + Redesigned consumer checking 0.29% product set, shifting $272 million of interest checking balances to non- interest checking 0.23% 0.19% . $3.9 billion of non-maturity deposits at 0.13% 0.16% * $1.2 billion have
Slide 27: Top Lenders Origination Units Rank
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. 1,562 4 5.0% United Wholesale Mortgage 1,403 5 4.5% Kennebec Savings Bank 1,096 6 3.5% First, N.A. 1,059 7 3.4% Key Bank 1
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