Camden National Corporation · NASDAQ:CAC
Camden National — Piper Jaffray Bank Symposium 2015
24 slides from Camden National's conference presentation, Dec 14, 2015
Slide 1: Piper Jaffray Bank Symposium
Piper Jaffray Bank Symposium Gregory Dufour | President & Chief Executive Officer December 14, 2015 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 Corporation, headquartered in Maine, is a full-service community bank focused on delivering long-term shareholder value through banking, brokerage and wealth management services in Maine, New Hampshire and select markets of New England. 2
Slide 4: Camden National Corporation
Camden National Corporation Headquarters Camden, ME Employees 700 Ticker CAC (NASDAQ) Current Price $45.35 52 Week Range $35.81 to $47.49 Avg. Daily Volume 16,700 Assets $3.7 billion Loans $2.5 billion Deposits $2.7 billion Market Cap $462 million Analyst Coverage Piper Jaffrey (overweight) KBW (out
Slide 5: Focused Priorities
Focused Priorities Following a strategic plan with three major initiatives 4 Growth through acquisitions • Recently acquired SBM Financial (2015): • Increased market segment by 41% or 202,605 households • Acquired 14 Bank of America Branches and $287 million of deposits (2012) Growth through talent
Slide 6: Strategic Plan for Growth
Strategic Plan for Growth SBM Financial (The Bank of Maine) • Acquired October 2015 • 24 branches • Deposits: $685 million • Loans: $646 million • Smooth integration and limited/isolated customer transition issues • Immediately expands market share to southern Maine • Opportunity to rebrand bank and
Slide 7: Earnings Results
Earnings Results • Solid earnings performance complimented by cost savings and momentum from the SBM Financial acquisition 6 SBM Financial Impact • Mid-teens EPS accretion in 2016 and beyond • Tangible Book Value dilution of 13.6% with earn back in five years • 15%+ Internal Rate of Return • Pro-for
Slide 8: Strong Credit Culture
Strong Credit Culture • Community-based, relationship focused lenders with local decision making • Significant small-business lending driven by unmatched market expertise • Disciplined risk management culture • Proactive internal and external loan review process anticipating problematic loans • Cons
Slide 9: Deposit Mix & Market Share
Deposit Mix & Market Share 8 Source: SNL Financial. Deposit data as of June 2015. ($ in millions) Rank Instituition Deposits Branches Market Share % 1 Toronto-Dominion Bank $ 3,309 49 13.3 2 KeyCorp 2,891 51 11.6 Camden + SBM 2,668 64 10.7 3 Bangor Bancorp MHC 2,265 60 9.1 4 Camden National Corp. 1,
Slide 10: Long-Term Shareholder Value
Long-Term Shareholder Value 9 $1.27 $3.28 $0.00 $1.00 $2.00 $3.00 $4.00 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 $8.57 $26.52 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 a) 2005 and 2011, special $0.50 dividend
Slide 11: Long-Term Shareholder Value
Long-Term Shareholder Value 10 0% 10% 20% 30% 40% 50% 60% '99 '00 '01 '02 '03 '04 '05 (a) '06 '07 '08 '09 '10 '11 (a) '12 '13 '14 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 '99 '00 '01 '02 '03 '04 '05 '06 (b) '07 '08 '09 '10 '11 '12 '13 '14 a) 2005 and 2011, special $0.50 dividend b) 2006 issuance of tr
Slide 12: Investment Summary
Investment Summary Experienced Senior Management Team: • 25+ years average banking experience and 12 years with CAC Strong Market Share and Brand Recognition • 140 year operating history • 3rd overall deposit market share in Maine • #2 mortgage originator in Maine, with 7.9% of all mortgage originat
Slide 13: Why Invest in Camden National?
Why Invest in Camden National? • Diversified business model creates strong franchise value • Track record of solid performance • Geographic footprint expanding into high growth markets • History of successfully integrating acquisitions • Strong and stable asset quality with disciplined credit enviro
Slide 14: Appendix
amaen NATIONAL CORPORATION Appendix
Slide 15: Seasoned Management Team
Seasoned Management Team 14 Name Position Age Years of Banking Experience Year joined Camden Greg Dufour President and CEO 55 25+ 2001 Debbie Jordan, CPA COO & CFO 50 20+ 2008 Joanne Campbell EVP Risk Management 52 30+ 1996 Carolyn Crosby SVP Human Resources 49 25+ 1996 Peter Greene(a) EVP Operation
Slide 16: Financial Highlights
Financial Highlights 15 (in million’s) 9/30/15 9/30/14 12/31/14 12/31/13 Loans (a) $1,830 $1,726 $1,773 $1,580 Investment Securities 820 804 804 828 Total Assets 2,872 2,742 2,790 2,604 Deposits (b) 2,008 1,929 1,932 1,814 Borrowings 564 541 577 530 Shareholders’ Equity 259 240 245 231 Tier 1 Levera
Slide 17: Financial Highlights
Financial Highlights 16 Nine Months Ended Year Ended Core(a) 9/30/15 GAAP 9/30/15 9/30/14 2014 2013 Net Income (in millions) $20.5 $19.3 $18.5 $24.6 $22.8 Diluted Earnings per Share $2.74 $2.57 $2.46 $3.28 $2.97 Return on Tangible Equity(a) 13.75% 12.60% 13.71% 13.46% 14.55% Return on Assets 0.97% 0
Slide 18: 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 Source: SNL Financial 17 Net Interest Margin Efficiency Ratio ROAE ROAA 2.00% 2.50% 3.00% 3.50% 4.00% '09 '10 '11 '12 '13 '14
Slide 19: 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 Source: SNL Financial 18 NPAs / Assets NCOs / Average Loans Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 0.0
Slide 20: Loan Profile
Loan Profile 19 As of 9/30/15 Commerc ial 14% Commerc ial Real Estate 38% Residenti al Mortgag es 32% Home Equity/C onsumer 16% CNC Pro Forma Change in Portfolio Mix (Average Balances) Total Loans:$1.83 billion Yield: 4.07% Commerc ial 15% Commerc ial Real Estate 35% Residenti al Mortgag es 35% Home
Slide 21: Funding
Funding 20 As of 9/30/15 CNC Checking 31% Saving/ Money Market 25% CD's 22% Borrowin gs 22% Pro Forma Change in Funding Mix (Average Balances) Funding:$2.57 billion Total Funding Cost: 0.47% Deposit Cost: 0.27% Checking 31% Saving/ Money Market 28% CD's 23% Borrowin gs 18% Funding:$3.30 billion Tota
Slide 22: Asset Growth
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Asset Growth 21 Through 12/31/14 Organic Growth: $1,194 million Acquired Growth: $1,140 million Total Growth CAGR: 9.5% United Corp. $54 million KSB Bancorp $179 million Key Bank 4 Branches $54 m
Slide 23: Mortgage Banking Activity
Mortgage Banking Activity • The SBM Financial acquisition positions CAC as the #2 Mortgage Originator in Maine 22 Source: MRS, Inc. Year-to-Date as of August 31, Year Ended December 31, 2014 2015 2014 Top 15 Lenders Originations Rank % of Total Originations Originations Rank % Total Bangor Savings B
Slide 24: Market Overview
Market Overview Maine • Projected 7.79% growth in household income for 2015 to 2020 • Unemployment rate of 4.5% as of August 2015 • Hospitality and tourism generate more than $2 billion in household income annually New Hampshire • Projected 7.32% growth in household income for 2015 to 2020 • Unemplo