Camden National Corporation · NASDAQ:CAC
Camden National — Janney Investor Presentation (February 2021)
31 slides from Camden National's conference presentation, Feb 3, 2021
Slide 1: Janney Investor Presentation
Janney Investor Presentation Gregory Dufour | President & Chief Executive Officer Gregory White | Chief Financial Officer February 3, 2021 ¢ A NATIONAL 1 CORPORATION
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: Camden National Corporation
Camden National Corporation Largest publicly traded bank headquartered in Northern New England * $4.9 billion in assets ¢ 58 banking centers located in Maine ¢ 2 Ioan production offices * New Hampshire * Massachusetts * $560 million market cap ¢ 50 day avg share volume of approximately 38,000 « Anal
Slide 4: Focused, Culture, Consistent Performance, Credit Quality
Focused: • Gaining market share • Adherence to strategic plan • Opportunistically reviewing complementary acquisitions • Solid core funding and sticky deposit base Culture: • Experienced leadership team • Strong community spirit • Recognized by Greenwich Associates as a customer experience leader in
Slide 5: 2020 Financial Highlights
2020 Financial Highlights Full Year 2020 (record earnings year) Net Income $59.5 million Diluted Earnings Per Share $3.95 Return on Assets 1.23% Efficiency Ratio (non-GAAP) 52.56% Total Risk-Based Capital Ratio 15.40% e Candas NATIONAL CORPORATION Q4 2020 (record earnings quarter) Net Income $18.3 m
Slide 6: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NIl and NIM ($ in millions) $345 $35.5 $32.2 4Qi9 3Q20 4Q20 ma N|| —®=NIM Est anges in Net In Year1 Year 2 +200 bps 1.52% 772% -100 bps -0.67% -7.18% (1) Assumes flat balance sheet, no changes in asset/funding mix, and a parallel and pro rata shift in rate
Slide 7: Fee income is 27% of total revenue
Fee income is 27% of total revenue (net interest income plus fee income)
Slide 8: Loan Portfolio
Loan Portfolio Residential Real Estate * 70% located in Maine and 24% in Massachusetts * 62% are primary residences, 28% second homes and 10% investment property * 98% of balances at </= 80% LTV (or supplemented with private mortgage insurance) Commercial Real Estate * 67% of real estate located in
Slide 9: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry (as of 12/31/20) Other (14 Industries <3%) 20% Real Estate Investment Restaurants AN% % Construction 4% Manufacturing 4% Retail Trade 1% Health Care / Social Asst. 8% Lodging 4% e eoniten NATIONAL CORPORATION Real Estate Investment Brea
Slide 10: CRE Collateral by State
CRE Collateral by State : ME, $920.5 mil = asian sais i ae Z : NH, $242.7 mil MA, $128.3 mil CT, $7.0 mil RI, $3.4 mil + 97% of CRE collateral is located in Northern New England, including: * 100% of Lodging (54% in Maine) * 98% of Apartment Building Operators (72% in Maine) * 96% of Non-Residential
Slide 11: SBA PPP Loans
SBA PPP Loans 2020 Originations Total Balance Tier Units Production ($ in millions) | ($ in millions) * SBA PPP loans yielded 7.74% and 416% during Q4 and Q3, respectively $0 - $50,000 2,200 $35.1 $27.9 $50,001 - $250,000 650 $68.9 $35.1 * $2.2 million of origination fees $250,001 - $500,000 105 $35
Slide 12: Loan Deferral Details
Loan Deferral Details 6/30/2020 9/30/2020 12/31/2020 Deferred % of Category Deferred % of Category Deferred % of Category Volume Deferred Volume Deferred Volume Deferred Real Estate Investment $102.0 14.0% $12.8 1.7% $7.1 0.9% Lodging $174.8 66.2% $50.2 19.0% $6.9 2.6% Other Services (expt. Public A
Slide 13: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets 12/31/2009 1.07% 0.67% 0.50% r 34% 0.25% 9.20% ALL / NPLs 361.65% 12/31/2009 a 109.31% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 NCOs / Average Loans ALL / Total Loans 12/31/2009 9 fe 12/31/2009 nae : 1.33% 0.89% 0.87% 9.82% 0.81% 0.13% 0.07% 0.08% ||
Slide 14: CECL Adoption
CECL Adoption Allowance for credit losses reconciliation YTD YTD YTD YTD 2019 1Q20 2Q20 3Q20 4Q20 ALL (beginning of period) $24,712 $25,171 $25,171 $25,171 $25,171 Impact of adopting CECL. $0 $0 $0 $0 $233 Provision for loan losses $2,862 $1,772 $1,172 $12,172 $13,215 Net charge-offs $2,403 $422 $80
Slide 15: Securities Portfolio
Securities Portfolio * Book value was $1.1 billion, up $7 million, or 1%, linked- Securities Portfolio Mix quarter (Book Value at 12/31/20) U.S. Agencies and Other * — Average yield (FTE) of 2.05%, down 21 bps linked- Se ; M quarter aa A - sees CMO - * — Unrealized net gain of $37.3 million on AFS c
Slide 16: Funding Mix
Funding Mix Deposits Average Funding * Average balance of $3.7 billion 2020 * Average deposit cost of 0.38% for 2020 Bonrwinge + 2°¢ highest deposit market share in Maine (10.8% of deposits as of 6/30/20) + 8t highest deposit market share in York and CDs Cumberland counties (5.1% of deposits as of 1
Slide 17: Strong Liquidity Position
Strong Liquidity Position Well Positioned to Support Liquidity Needs Liquidity Sources (12/31/20) Amount G in millions) Excess Cash $89.6 Unpledged Investment Securities $470.0 Lines of Credit Exposure Unpledged Municipal Securities $104.6 1% Increase in Utilization YoY Over Collateralized Securitie
Slide 18: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CET1) Ratio 9.53% 9.55% 9.07% 9.13% 15.40% 12.45% Bask 14.04% 14.14% 14.36% 14.44% 1.27% 11.30% 11.62% 11.80% Required icine) Required Required inimum(1), Minioum(), 7.00% 4.00% 2016 = 2017-2018 ~=— 20
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 and dividend yield
• Stock price appreciation of 54.32% • Average dividend yield of 2.90%
Slide 21: 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 * 145 year operating history * #2 overall deposit market share in Maine, 1St in community banks ¢ #3 mor
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 60 30+ 2001 Greg White EVP Chief Financial Officer 55 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 4Q20 3Q20 2Q20 1Q20 4Q19 Net interest income $35,461 $34,481 $34,539 $31,826 $32,239 Non-interest income $14,331 $12,696 $12,060 $11,403 $11,948 Total revenue $49,792 $47,177 $46,599 $43,229 $44,187 Non-interest expense $26,692 $25,221 $23,509 $24,561 $24,814 Pretax, pre
Slide 25: Balance Sheet
Balance Sheet $ millions 4Q20 3Q20 2Q20 1Q20 4Q19 Loans $3,261 $3,313 $3,363 $3,185 $3,107 Investment Securities $1,129 $1,122 $1,064 $976 $933 Total Assets $4,899 $5,154 $4,959 $4,595 $4,430 Deposits $4,005 $4,224 $3,996 $3,564 $3,538 Borrowings $247 $294 $330 $421 $338 Shareholders’ Equity $529 $5
Slide 26: Non-Residential Building Operators Collateral by State
Non-Residential Building Operators Collateral by State E, $258.8 mil NH, $126 mil MA, $28.4 mil VT, $5.3 mil ia » $5. RI, $3.4 mil CT, $420K NY, ~ Ceaniien NATIONAL CORPORATION
Slide 27: Apartment Building Operators Collateral by State
Apartment Building Operators Collateral by State AE, $194.8 mil NH, $50.6 mil NY; A, $21.0 mil 5 , i ~%, e Ceaniien NATIONAL CORPORATION
Slide 28: Lodging Collateral by State
Lodging Collateral by State VT, $27.4 ME, $139.3 mil NH, $32.1 mil MA, $58.1 mil e Ceaniien NATIONAL 28 CORPORATION
Slide 29: Historical Credit Metrics
Historical Credit Metrics NPAs / Assets 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% ‘110012 0°13 «14151617, 118 "19. YTD "20 Loan Loss Reserves / Gross Loans 2.10% 1.75% 1.40% 1.05% 0.70% 0.35% 0.00% ‘410012013 14151617, 11819 YTD ‘20 () ENC loan loss reserves / gross ans as presented under the incurr
Slide 30: Profitability Trends
Profitability Trends —+—Camden National Corp. ——Peer Group ROAA ROAE 1.50% 15.00% 1.25% 12.50% 1.00% 10.00% 0.75% 7.50% 0.50% 5.00% 0.25% 2.50% 0.00% 0.00% ‘410 '120« 13: ‘14 "15 "1617, 18 ‘19 YTD ‘11.012 ‘13 ‘14 15 ‘1617, "1819 YTD ‘20 ‘20 Net Interest Margin Efficiency Ratio 4.00% 70.00% 3.75% 65.
Slide 31: Top Mortgage Lenders in Maine by Origination Units
Top 15 Lenders Origination Units Rank % of Total Bangor Savings Bank 6,484 1 11.0% Quicken Loans 3,793 2 6.4% Camden National Bank 3,426 3 5.8% Residential Mortgage Services Inc. 3,317 4 5.6% United Wholesale Mortgage 2,045 5 3.5% Key Bank 1,903 6 3.2% Kennebec Savings Bank 1,898 7 3.2% First, N.A.
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