Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (June 2021)
29 slides from Camden National's investor presentation, Jun 24, 2021
Slide 1: Investor Presentation
Investor Presentation Gregory Dufour | President & Chief Executive Officer Gregory White | Chief Financial Officer June 24, 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 $5.1 billion in assets 58 banking centers * Maine - 57 * New Hampshire - 1 * 21loan production offices ¢« New Hampshire - 1 « Massachusetts - 1 * $690 million market cap ¢ 50 day avg share volume of approx
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: Responsive and Ready to Serve our Customers
Responsive and Ready to Serve our Customers Dramatic shift to digital and hyper-connectivity 17 million digital banking logins vs. 2.1 million teller transactions 32% increase in Call Center activity 4|% increase in secure online chat 39% of funded mortgages started with an online app 41% growth in
Slide 7: First Quarter 2021 Highlights
First Quarter 2021 Highlights Net Income * Record quarterly net income, up 8% $19.7 million over last quarter Diluted Earnings Per Share * Released provision of $2.0 million $1.31 * Loan deferrals declined to 0.1% of Return on Assets loans, down from 0.8% last quarter 1.62% ¢ Asset quality remains s
Slide 8: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NIl and NIM ($ in millions) $35.5 $31.8 1420 4Q20 1a21 mame Nil —®—NIM Est anges in Net In Year1 Year 2 +200 bps 2.61% 10.03% -100 bps -0.94% -9.80% (1) Assumes flat balance sheet, no changes in asset/funding mix, and a parallel and pro rata shift in rates
Slide 9: Fee income is 32% of total revenue (net interest income plus fee income)
Fee income is 32% of total revenue (net interest income plus fee income)
Slide 10: Loan Portfolio
Loan Portfolio Residential Real Estate * 69% located in Maine and 25% in Massachusetts * 62% are primary residences, 29% second homes and 9% investment property * 98% of balances at </= 80% LTV® (or supplemented with private mortgage insurance) Commercial Real Estate * 68% of real estate located in
Slide 11: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry Real Estate Investment Breakdown (as of 3/31/21) (as of 3/31/21) Other Nonresidential Buildings 8% Other (14 Industries <3%) 20% 1-4 Family eo) Office Buildings 26% Industrial / Warehouse 10% Real Estate Investment Restaurants ‘41% Manu
Slide 12: SBA PPP Loans
SBA PPP Loans Total Originations y ; ; weal ° fol ; * $5.6 million of origination fees ear nits roduction utstan ing . ($ in mill ($ in million were yet to be recognized at 6/10/21 2020 3,034 $244.8 $417 2021 1,620 $102.2 $102.2 Total 4,654 $347.0 $143.9 Income Recognized Origination Period Fees ($
Slide 13: Loan Deferral Details
Loan Deferral Details 12/31/2020 3/31/2021 Category Deferred % of Category Deferred % of Category ($ in millions) Volume Deferred Volume Deferred Real Estate Investment $7.1 0.9% $0.9 0.1% Lodging $6.9 2.6% $0.0 0.0% Other Services (expt. Public Admin) $3.5 7.8% $0.0 0.0% Other Accommodation $1.4 41
Slide 14: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets 12/31/2009 1.07% 0.50% a 34% 0.25% 9.22% 0.20% 2017 ‘018 2019 2020 1021 NCOs / Average Loans 12/31/2009 ALL / NPLs 361.65% 352.15% 225.77% 17.17% 18.92% 12/31/2009 109.31% 2017 2018 2019 2020 1021 ALL / Total Loans ny agente 21/2008 0.37% =——————EE====_—==e 7
Slide 15: Securities Portfolio
Securities Portfolio * Book value was $1.1 billion, up $21 million, or 2%, linked- Securities Portfolio Mix (Book Value at 3/31/21) quarter USS. Agencies and Other «Average yield (FTE) of 1.87%, down 18 bps linked- oe quarter Municina} * — Unrealized net gain of $15.0 million on AFS compared to $37.
Slide 16: Funding Mix
Funding Mix Deposits + Average balance of $3.8 billion + Average deposit cost of 0.19% « 2d highest deposit market share in Maine (10.8% of deposits as of 6/30/20) * 8th highest deposit market share in York and Cumberland counties (5.1% of deposits as of 6/30/20) + Loan/ Deposit ratio of 77% at 3/31
Slide 17: Strong Liquidity Position
Strong Liquidity Position Lines of Credit Exposure Well Positioned to Support Liquidity Needs $1,292.4 Liquidity Sources ¢ Amount —_ $1,201.3 $1,178.0 in millions) Excess Cash $309.6 Unpledged Investment Securities $482.6 = 48% 48% Unpledged Municipal Securities $100.1 Over Collateralized Securities
Slide 18: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio 9.07% 9.53% 9.55% 9.61% 9.13% Required Minimum(t), 4.00% 2017 2018 2019 2020 1021 ($ in millions) Tier 1 Leverage Total Risk Based Capital Ratio 16.00% 14.14% 14.36% 14.44% 1540% Required Minimum(t), 10.50% 2017 2018 2019 2020 1021 Required Minimum Ratio
Slide 19: TBV Per Share and Dividends as a % of Net Income
TBV Per Share(a) Dividends as a % of Net Income • • • •
Slide 20: Stock price appreciation of 75.68%; average dividend yield of 2.92%
• Stock price appreciation of 75.68% • Average dividend yield of 2.92%
Slide 21: 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 22: Appendix
Appendix ¢ Ss NATIONAL 22 CORPORATION
Slide 23: 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 58 30+ 1996 William Martel EVP Technology & Support Services 51 20+ 2020 Jennifer Mirabile EV
Slide 24: Income Statement
Income Statement $ thousands 1021 4Q20 3Q20 2Q20 1020 Net interest income $32,364 $35,461 $34,481 $34,539 $31,826 Non-interest income $15,215 $14,331 $12,696 $12,060 $11,403 Total revenue $47,579 $49,792 $47,177 $46,599 $43,229 Non-interest expense $24,899 $26,692 $25,221 $23,509 $24,561 Pretax, pre
Slide 25: Balance Sheet
Balance Sheet $ millions 1021 4Q20 3Q20 2Q20 1020 Loans $3,259 $3,261 $3,313 $3,363 $3,185 Investment Securities $1,131 $1,133 $1,125 $1,068 $980 Total Assets $5,089 $4,899 $5,154 $4,959 $4,595 Deposits $4,212 $4,005 $4,224 $3,996 $3,564 Borrowings $246 $247 $294 $330 $421 Shareholders’ Equity $532
Slide 26: 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 QU ‘24 12°13 ‘14 15 ‘16 ‘17 ‘18 "19 '20 Qt'2t Loan Loss Reserves / Gross Loans
Slide 27: Profitability Trends
Profitability Trends —+—Camden National Corp. —+Peer Group ROAA ROAE 1.80% 15.00% 1.50% 12.50% 1.20% 10.00% 0.90% 7.50% 0.60% 5.00% 0.30% 2.50% 0.00% = 0.00% 120°'13 14 (‘15 "16 ‘17,18 "19 ‘20 QU ‘214 120 13 ‘14 [15 16 (‘17° 18 ("19 '20 QU'24 Net Interest Margin Efficiency Ratio 4.00% 70.00% 3.75% 6
Slide 28: Deposit Cost Trend
Deposit Cost Trend 0.70% + Continue to manage deposit rates lower + CD maturities: + 38% of all CDs maturing in the next 6 months 0.35% + $89 million at 0.42% in next 90 days 0.29% + $41 million at 0.43% in next 4-6 0.23% 0.19% months ql 0.16% 0.16% May '2 Q1'20. Q2'20. Q3'20.— 420 Ql‘21 Apr '2 ¢ SS
Slide 29: Top Lenders Origination Units Rank
Top 15 Lenders Origination Units Rank % of Total Bangor Savings Bank 1,443 1 9.7% Quicken Loans 1,192 2 8.0% Camden National Bank 878 3 5.9% Residential Mortgage Services Inc. 797 4 5.4% United Wholesale Mortgage 693 5 4.7% First, N.A. 534 6 3.6% Kennebec Savings Bank 458 7 3.1% Key Bank 446 8 3.0%