Camden National Corporation · NASDAQ:CAC
Camden National — Q2 2020 Earnings Presentation
15 slides from Camden National's earnings presentation, Jul 28, 2020
Slide 1: Second Quarter 2020 Earnings Conference Call
Second Quarter 2020 Earnings Conference Call July 28, 2020 1
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: Responding to Our Employees, Customers and Communities
Responding to Our Employees, Customers and Communities • Majority of non-banking center employees continue to work remotely • Continue to provide swift and confidential economic support to our employees through our special Stakeholder Emergency Fund for personal or family circumstances • Provided sp
Slide 4: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights Net Income • Pre-tax/pre-provision earnings (non- $10.9 million GAAP) up 24% over last quarter • Maintained a strong capital and liquidity Diluted Earnings Per Share position $0.73 Originated approximately 10% of Maine’s • Return on Average Assets SBA PPP loans 0.90% •
Slide 5: Income Statement
Income Statement Inc/(Dec) $ thousands 2Q20 1Q20 2Q19 Highlights Net interest income $34,539 $2,713 $2,966 • SBA PPP loans added $1.7mm to 2Q20 interest income • Linked quarter and year-over-year increase driven by Non-interest income $12,060 $657 $2,023 strong mortgage banking income Total revenue
Slide 6: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NII and NIM Total deposit costs 2020 ($ in millions) $34.5 5.00% $35 0.76% 0.75% $31.6 $31.8 0.60% $30 4.00% 3.11% 3.08% 3.11% 0.41% $25 3.00% 0.34% 0.31% $20 2.00% $15 1.00% 2Q19 1Q20 2Q20 NII NIM Jan Feb Mar Apr May Jun Estimated Changes in Net Interest
Slide 7: Securities Portfolio
Securities Portfolio Securities Portfolio Mix • Book value was $1.1 billion, up $79 million, or 8%, (Book Value at 6/30/20) linked-quarter U.S. Agencies and Other • Average yield of 2.60%, down 7 bps linked-quarter 6% Municipal 12% • Unrealized net gain of $38.5 million on AFS CMO - Agency compared
Slide 8: Balance Sheet: Strong Liquidity Position
Balance Sheet: Strong Liquidity Position Well Positioned to Support Liquidity Needs Liquidity Sources (6/30/20) Amount ($ millions) Unpledged Investment Securities $243.0 Unpledged Municipal Securities $98.0 Over Collateralized Securities Pledging Position $145.1 Lines of Credit Exposure FHLB Borrow
Slide 9: Loan Portfolio
Loan Portfolio Residential Real Estate Balances of $3.3 Billion (as of 6/30/20) • 71% located in Maine and 24% in Massachusetts Home Equity • 65% are primary residences, 25% second homes and 10% and Consumer investment property 9% Commercial 13% • 97% of balances at </= 80% LTV(1) (or supplemented w
Slide 10: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry Real Estate Investment Breakdown (as of 6/30/20) (as of 6/30/20) Other (12 Industries Other Nonresidential <2%) Buildings 16% 7% 1-4 Family 8% Professional, Scientific, & Office Buildings Technical Services 29% 3% Real Estate Industrial
Slide 11: Loan Assistance Programs
Loan Assistance Programs SBA PPP SBA Paycheck Protection Program (as of 6/30/2020) • Funded 10% of Maine’s SBA PPP loans by Balances dollar amount Units (in millions) Total Production 2,919 $237.0 Total Outstanding 2,893 $225.8 Loan Deferral Program Loan Deferral Program – granted extensions (as of
Slide 12: Loan Deferral Details
Loan Deferral Details Deferred $ Deferred $ Deferred $ Category % of Category % of Category Volume at Volume at Volume at ($ in millions) Deferred(1) Deferred(1) 4/22/2020 6/30/2020 7/23/2020 Lodging $183.4 $174.8 66.2% $91.9 34.8% Real Estate Investment $84.7 $102.0 14.0% $78.9 10.8% Health Care/So
Slide 13: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets ALL / NPLs 310.87% 12/31/2009 1.07% 225.77% 0.67% 171.17% 0.50% 118.92% 0.34% 92.28% 12/31/2009 0.25% 0.23% 109.31% 2016 2017 2018 2019 2Q20 2016 2017 2018 2019 2Q20 NCOs / Average Loans ALL / Total Loans 12/31/2009 12/31/2009 0.37% 1.33% 1.07% 0.89% 0.87% 0.
Slide 14: Incurred Loss vs CECL
Incurred Loss vs CECL Allowance for Credit Losses(1) ($ in millions) 1/1/2020 6/30/2020 ACL $25.2 $35.6 ACL as % of Loans 0.81% 1.07% Incurred Loss YTD Provision for Credit Losses $11.2 YTD Provision for Credit Losses as 0.69% % of Average Loans (annualized) ACL $27.0 - $31.0 $40.0 - $44.0 ACL as %
Slide 15: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CET1) Ratio 14.56% 11.80% 9.53% 9.55% 14.04% 14.14% 14.36% 14.44% 11.27% 11.30% 11.62% 11.69% 8.83% 9.07% 8.95% Required Minimum(1), 10.50% Required Minimum(1), Required 7.00% Minimum(1), 4.00% 2016 20