Camden National Corporation · NASDAQ:CAC
Camden National — Raymond James Bank Conference (September 2020)
28 slides from Camden National's conference presentation, Sep 9, 2020
Slide 1: Raymond James Bank Conference
Raymond James Bank Conference Gregory Dufour | President & Chief Executive Officer Gregory White | Chief Financial Officer September 9, 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: Camden National Corporation
Camden National Corporation Largest publicly traded bank headquartered in Northern New England • $5.0 billion in assets • 58 banking centers located in Maine • 2 loan production offices • New Hampshire • Massachusetts • $490 million market cap • 50 day avg share volume of approximately 50,000 • Anal
Slide 4: 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
Slide 5: Our COVID-19 Response
Our COVID-19 Response • 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 special premium pay for banking cen
Slide 6: 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 $0.73 Originated approximately 10% of Maine’s • Return on Average Assets SBA PPP loans 0.90% •
Slide 7: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NII and NIM Total deposit costs 2020 ($ 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 8: Diversified Revenue
Diversified Revenue Fee income is 26% of total revenue (net interest income plus fee income) 8
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 Paycheck Protection Program SBA PPP (as of 8/31/2020) (as of 8/31/2020) Balances • Average loan size of $81,000 Units (in millions) • $5.8 million in unearned fees Total Production 3,034 $244.8 Total Outstanding 3,005 $229.5 Loan Deferral Program Loan Deferral Program (a
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 8/31/2020 Lodging $183.4 $174.8 66.2% $127.8 48.4% Real Estate Investment $84.7 $102.0 14.0% $20.5 2.8% Health Care/So
Slide 13: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets ALL / NPLs 310.87% 12/31/2009 1.07% 225.77% 0.67% 171.17% 0.50% 118.92% 0.34% 92.28% 12/31/2009 0.25% 0.23% 109.31% 2016 2017 2018 2019 2Q20 2016 2017 2018 2019 2Q20 NCOs / Average Loans ALL / Total Loans 12/31/2009 12/31/2009 0.37% 1.33% 1.07% 0.89% 0.87% 0.
Slide 14: Incurred Loss vs CECL
Incurred Loss vs CECL Allowance for Credit Losses(1) ($ 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: 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 16: Funding Mix
Funding Mix Deposits Average Funding Q2 2020 • Average balance of $3.7 billion Borrowings • Average deposit cost of 0.35% for 2Q20 14% • 2nd highest deposit market share in Maine (11.4% of deposits as of 6/30/19) • 8th highest deposit market share in York and CDs Cumberland counties (5.4% of deposit
Slide 17: Balance Sheet: Strong Liquidity Position
Balance Sheet: Strong Liquidity Position Well Positioned to Support Liquidity Needs Liquidity Sources (6/30/20) Amount ($ 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 18: 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
Slide 19: Shareholder Value: Long-Term Metrics
Shareholder Value: Long-Term Metrics TBV Per Share(a) $27.31 $10.43 • TBV per share 15 year CAGR of 5.9% • Consistent dividend of 30%+ of annual earnings '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '20 • $90 million in share buybacks since 2004 Dividends as a % of Net Income
Slide 20: Shareholder Value: Total Return
Shareholder Value: 15 Year Total Return • Stock price appreciation of 28.87% • Average dividend yield of 2.86% 350% 300% 292% 250% 200% 150% 100% 101% 66% 50% 19% 0% Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 -50% -100% CAC SNL U.S
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 • #2 mor
Slide 22: Appendix
Appendix ¢ Se NATIONAL 22 CORPORATION
Slide 23: Seasoned Management Team
Seasoned Management Team Years of Year joined Name Position Age Banking Camden Experience 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
Slide 24: Income Statement
Income Statement $ thousands 2Q20 1Q20 4Q19 3Q19 2Q19 Net interest income $34,539 $31,826 $32,239 $31,923 $31,573 Non-interest income $12,060 $11,403 $11,948 $10,739 $10,037 Total revenue $46,599 $43,229 $44,187 $42,662 $41,610 Non-interest expense $23,509 $24,561 $24,814 $23,748 $23,958 Pretax, pre
Slide 25: Balance Sheet
Balance Sheet $ millions 2Q20 1Q20 4Q19 3Q19 2Q19 Loans $3,363 $3,185 $3,107 $3,127 $3,113 Investment Securities $1,064 $976 $933 $926 $933 Total Assets $4,959 $4,595 $4,430 $4,520 $4,447 Deposits $3,996 $3,564 $3,538 $3,618 $3,592 Borrowings $330 $421 $338 $342 $311 Shareholders’ Equity $506 $493 $
Slide 26: Historical Credit Metrics
Historical Credit Metrics 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% '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '20 '20 Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 2.10% 2.4
Slide 27: Profitability Trends
Profitability Trends 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% '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '11 '12 '13 '14 '15 '16 '17 '18 '19 YTD '20 '20 Net Interest Margin Efficiency Ratio 4.00% 70.00% 3.75% 65.00% 3.50% 60.00% 3.25% 55.00% 3.00%
Slide 28: Maine Mortgage Banking Activity
Maine Mortgage Banking Activity Six Months Ended June 30, 2020 Top 15 Lenders Originations Rank % of Total Bangor Savings Bank 2,979 1 11.9% Camden National Bank 1,544 2 6.1% Quicken Loans 1,447 3 5.8% Residential Mortgage Services Inc. 1,277 4 5.1% Key Bank 962 5 3.8% Kennebec Savings Bank 825 6 3.
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