Camden National Corporation · NASDAQ:CAC

Camden National — Investor Presentation (September 2019)

29 slides from Camden National's investor presentation, Sep 24, 2019

  1. Slide 1: Investor Presentation

    Investor Presentation Gregory Dufour | President & Chief Executive Officer Deborah Jordan | Chief Operating & Financial Officer September 24, 2019 0

  2. 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,

  3. Slide 3: Camden National Corporation

    Camden National Corporation Largest publicly traded bank headquartered in Northern New England • $4.4 billion in assets • 60 banking centers located in Maine • 3 loan production offices • New Hampshire (2) • Massachusetts (1) • $685+ million market cap • 50 day avg share volume of approximately 37,0

  4. Slide 4: Q2 2019 Financial Highlights

    Q2 2019 Financial Highlights Strong earnings performance • Net income of $13.2 million • Return on tangible equity: 15.00%(a) • Return on assets: 1.21% • Tangible common equity ratio: 8.49%(a) Solid growth • Total loans of $3.1 billion; LTM growth of 8% • Total deposits of $3.6 billion; LTM growth o

  5. Slide 5: Performance to Northeast Bank Peer Group

    Performance to Northeast Bank Peer Group 6/30/2019 Performance Ratios (%) CAC Peer Median Peer Average ROAA 1.26 1.15 1.01 ROAE 12.26 10.19 9.68 ROATCE 15.85 12.67 11.78 Net Interest Margin (Reported) 3.14 3.26 3.33 Efficiency Ratio 55.71 60.52 62.30 Loans / Deposits 86.32 97.31 96.92 Market Ratios

  6. Slide 6: Why Camden National?

    Why Camden National? Organic franchise growth, opportunistic acquisitions Focused: Consistent Performance: • Gaining market share • Profitability achieved through • Adherence to strategic plan organic growth • Opportunistically reviewing • Improved productivity complementary acquisitions • Disciplin

  7. Slide 7: Focused on Building Market Share: Asset Growth History

    Focused on Building Market Share: Asset Growth History Total Assets $ in Billions Organic Growth: $1.3 billion Acquired Growth: $1.7 billion $4.3 15 Year CAGR: 8.2% $4.1 $3.9 $3.7 $2.8 $2.6 $2.6 $2.3 $2.2 $2.3 $2.3 $1.8 $1.7 $1.7 $1.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  8. Slide 8: Focused on Building Market Share and Key Market Expansion

    Focused on Building Market Share and Key Market Expansion Strong Market Share: State of Maine • Mortgage originations: 2nd (8.1% market share YTD 6/30/19) • Deposit market share: 2nd (11.4% market share as of 6/30/19) Core Market High Growth Maine Counties: York and Cumberland • Mortgage origination

  9. Slide 9: Focused on Building Market Share: Deposit Opportunity in Maine

    Focused on Building Market Share: Deposit Opportunity in Maine Q2 2019 STATE OF MAINE - 6/30/2019 Avg. Deposits and ($ in millions) Funding Market Rank Institution Deposits Branches Share % 1 Toronto-Dominion Bank $ 3,999 44 12.6 2 Camden National Corp. 3,620 61 11.4 Borrowings 3 Bangor Bancorp MHC

  10. Slide 10: Focused on Building Market Share Through Customer Interactions

    Focused on Building Market Share Through Customer Interactions In person: 60 banking centers 3.0 million transactions In-person Guidance + Technology Advancement 71 ATMs • MortgageTouch® 1.4 million transactions • BusinessTouchTM • TreasuryLinkTM Digital: • Pay Up Web & Mobile Banking 8% increase in

  11. Slide 11: Focused on Growing and Diversifying Revenue

    Focused on Growing and Diversifying Revenue Fee income is 23% of total revenue (net interest income plus fee income) 10

  12. Slide 12: Focused on Improving Productivity and Creating Efficiencies

    Focused on Improving Productivity and Creating Efficiencies Expense and Efficiency ratio(1) Deposits per Branch $53 Annual Quarterly $100 $50 Millions $47 Millions $80 $44 $60 58.4% 57.5% 57.7% 57.3% 57.3% 57.1% 56.5% 54.9% $41 $40 $38 $20 $35 44 44 64 61 60 $0 $32 2016 2017 2018 2Q18 3Q18 4Q18 1Q19

  13. Slide 13: Balanced Loan Mix & Strong Credit Culture

    Balanced Loan Mix & Strong Credit Culture Q2 2019 Avg. Loans • Internal lending limit of $37 million • Two credit relationships over $25 million Home Equity/ Consumer Commercial 11% 14% Business Type: 1. Assisted Living and Related Care 2. Insurance Residential Mortgages • Commercial Diversification

  14. Slide 14: Prudent Investments

    Prudent Investments Q2 2019 Investments FRB/FHLB Stock Agency/Sub. 1% Notes/Other 2% SBA 5% Municipal 10% WAL Shock Rate Shock WAL Agency CMO 38% +200bps 5.69 -100bps 3.64 MBS 44% -200bps 3.19 Average Investments: $930 million Average Yield (FTE): 2.65% Weighted Average Life (WAL): 4.43 13

  15. Slide 15: Yield and Cost Trends

    Yield and Cost Trends Total Earning Asset and Loan Yields Total Funding and Deposit Costs Annual Quarterly Annual Quarterly 4.70% 4.68% 1.13% 4.60% 1.07% 4.49% 4.49% 4.43% 4.25% 0.94% 4.20% 4.18% 0.88% 0.86% 4.11% 0.85% 0.84% 0.78% 3.97% 3.97% 3.90% 3.76% 0.65% 0.59% 0.52% 0.53% 0.48% 0.32% 2017 201

  16. Slide 16: Net Interest Margin

    Net Interest Margin Annual Quarterly 3.21% 3.18% 3.19% 3.16% 3.14% 3.11% 3.10% 0.07% 0.04% 0.09% 0.06% 0.05% 0.06% 0.04% Interest Rate Risk Estimated Changes In Net Interest Income(a) Year 1 3.10% 3.10% 3.04% 3.09% 3.14% 3.14% 3.07% +200bp 0.5% -100bp (0.5)% -200bp (1.1)% Year 2 +200bp 5.1% -100bp (

  17. Slide 17: Shareholder Value Long-Term Metrics

    Shareholder Value Long-Term Metrics TBV Per Share(a) $23.88 $10.43 • TBV per share 15 year CAGR of 5.5% • Consistent dividend of 30%+ of annual earnings '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Q2 '19 • $79 million in share buybacks since 2004 (January 2019 program of Dividends as

  18. Slide 18: Shareholder Value Total Return

    Shareholder Value 15 Year Total Return • Stock price appreciation of 108.06% • Average dividend yield of 2.78% 300% 250% 252% 226% 200% 150% 145% 100% 85% 50% 0% Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 -50% CAC SNL U.S. Bank $1B

  19. Slide 19: Awards & Recognition

    Awards & Recognition  We are recognized for our outstanding achievements from all aspects of our business. Risk. Lending. 2018 Model FAME Lender for Risk at Work for Management Maine Award (for 9 years) Customers. Shareholder. 2018 Greenwich Named to Customer Sandler O’Neill Experience (CX) Sm-All

  20. Slide 20: 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 • 140+ year operating history • 2nd overall deposit market share in Maine • #2 mortgage originator in Ma

  21. Slide 21: Appendix

    Appendix - Chonden NATIONAL CORPORATION

  22. Slide 22: Seasoned Management Team

    Seasoned Management Team Years of Banking Year joined Name Position Age Experience Camden Greg Dufour President and CEO 59 30+ 2001 Debbie Jordan, CPA COO & CFO 53 25+ 2008 Joanne Campbell EVP Risk Management 57 30+ 1996 SVP Managing Director of Jennifer Mirabile 60 30+ 2017 Wealth Management Tim Ni

  23. Slide 23: Financial Highlights: Balance Sheet

    Financial Highlights Balance Sheet Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Loans $3,100 $3,042 $3,026 $2,909 $2,868 Investment Securities 933 937 927 888 918 Total Assets 4,447 4,421 4,297 4,190 4,194 Deposits 3,592 3,578 3,464 3,221 3,056 Borrowings 311 325 342 479 661 468 454 436 416 410 Tier 1 Le

  24. Slide 24: Financial Highlights: Net Income and Key Ratios

    Financial Highlights Net Income and Key Ratios Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Net Income (in millions) $13.2 $14.3 $14.0 $14.1 $12.2 Diluted Earnings per Share $0.85 $0.91 $0.89 $0.90 $0.78 Return on Tangible Equity(1) 15.00% 17.08% 17.43% 17.84% 16.23% Return on Assets 1.21% 1.33% 1.32% 1.

  25. Slide 25: Historical Credit Metrics

    Historical Credit Metrics NPAs / Assets NCOs / Average Loans 3.00% 1.25% 2.50% 1.00% 2.00% 0.75% 1.50% 0.50% 1.00% 0.25% 0.50% 0.00% 0.00% '10 '11 '12 '13 '14 '15 '16 '17 '18 YTD '19 '10 '11 '12 '13 '14 '15 '16 '17 '18 YTD '19 Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 2.00% 3.00% 2.5

  26. Slide 26: Profitability Trends

    Profitability Trends ROAA ROAE 1.40% 14.00% 1.20% 12.00% 1.00% 10.00% 0.80% 8.00% 0.60% 6.00% 0.40% 4.00% 0.20% 2.00% 0.00% 0.00% '10 '11 '12 '13 '14 '15 '16 '17 '18 YTD '19 '10 '11 '12 '13 '14 '15 '16 '17 '18 YTD '19 Net Interest Margin Efficiency Ratio 4.00% 70.00% 3.75% 65.00% 3.50% 60.00% 3.25%

  27. Slide 27: Mortgage Banking Activity

    Mortgage Banking Activity Six Months Ended June 30, 2019 Top 15 Lenders Originations Rank % of Total Bangor Savings Bank 1,691 1 9.3% Camden National Bank 1,466 2 8.1% Residential Mortgage Services Inc. 881 3 4.9% Quicken Loans 846 4 4.7% Kennebec Savings Bank 640 5 3.5% Key Bank 639 6 3.5% United W

  28. Slide 28: Market Overview

    Market Overview Maine New Hampshire Massachusetts Population in Millions 1.34 1.36 6.90 (Dec 2018) Population Increase 0.8% 3.0% 5.4% (2010-2018) Projected Population Change 0.8% 1.8% 3.1% (2019-2024) Median Household Income $58,124 $77,568 $82,084 (2018) Demographics Projected HH Income Change 9.7%

  29. Slide 29: Capital Position and Payout

    Capital Position and Payout Capital Position EPS and Dividend Payout 14.55% 14.46% $0.90 $0.91 14.33% 14.36% 14.12% $0.89 $0.85 $0.78 8.49% 8.02% 8.21% 7.59% 7.74% $0.30 $0.30 $0.30 $0.30 $0.30 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Total RBC Ratio Tangible Common Equity Ratio(1) Diluted

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