Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (August 2023)
32 slides from Camden National's investor presentation, Aug 8, 2023
Slide 1: Investor Presentation
Ge Ginded NATIONAL CORPORATION Investor Presentation Greg Dufour | President & Chief Executive Officer Mike Archer | EVP, Chief Financial Officer August 8, 2023
Slide 2: Forward Looking Statements
¢ Forward Looking Statements Camden CORPORATION This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including certain plans, exceptions, goals, projections, and statements, which a
Slide 3: Non-GAAP Financial Measures
¢ Non-GAAP Financial Measures Camden CORPORATION This presentation includes certain non-GAAP financial measures, Management uses these non-GAAP financial measures for purposes of measuring our performance against our peer group. and other financial institutions and analyzing our internal performance
Slide 4: Camden National Corporation
¢ Camden National Corporation Camden NASDAQ: CAC As of As of July 31, 2023 June 30, 2023 $503 $5.7 Million Billion Market Cap Assets 52,165 $4.1 Average Daily Billion Volume Loans 57 $4.7 Banking Billion Centers Deposits 2 $1.8 Loan Billion Production Assets Under Offices Administration Analyst Cove
Slide 5: Why Camden National?
€ Why Camden National? Camden CORPORATION Strong Long-Term Financial Performance and Shareholder Returns * History of strong financial performance and stable growth ¢ Strong capital position with a history of growing dividends and repurchasing shares * Strong credit culture with a history of superio
Slide 6: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 7: Camden National by the Numbers
Camden Camden National by the Numbers rate (Annualized. CORPORATION As of or for the quarter ended June 30, 2023 unless otherwise noted Loan/deposit ratio of 87% Deposits increased 1% Uninsured and uncollateralized deposits were 15% of total deposits Available primary liquidity of $1.4 billion Avail
Slide 8: Q3 Forward Guidance
; ¢ Q3 Forward Guidance Camden CORPORATION Strategy Q3 Expectation + New loan originations 7%+ * Redeploy investment cash flows to fund loan growth and pay down borrowings 2.40% (+/- 5-10 bps) + Leverage interest rate swaps * Focus on deposit retention and growth + Slow loan growth to optimize net i
Slide 9: ESG Highlights
ESG Highlights Recent Actions: * Introduced a board- approved diversity core value and statement * Increased diversity of Board of Directors * Began developing an ESG framework and roadmap (with support of third-party consultant) * Shareholders approved de- classified Board structure As of or for th
Slide 10: Current Financial Update
lox Ginded NATIONAL CORPORATION Current Financial Update
Slide 11: 2Q 2023 Financial Highlights
€ 2Q 2023 Financial Highlights Camden CORPORATION Net Income $12.4 million As of or for the quarter ended June 30, 2023 unless otherwise noted + Net income decreased by 3% and pre-tax, pre- provision earnings decreased 13% from 1Q 2023 Diluted Earnings Per Share + Total loans grew <1% and deposits g
Slide 12: Loans
Loans Loan Portfolio Trend C$ in billions) $4.0 $4.1 $4.1 3.9 $3.7 $ $3.5 nN% Ql'22 Q2'22 Q3'22 Q4'22 Ql'23 Q2'23 mm Commercial mam Commercial Real Estate Residential Real Estate Home Equity and Consumer Loan Yield =O Fed Funds Effective(1) (1) _ Fed funds effective represents the quarterly average
Slide 13: Deposits
Deposits Average Deposit Composition and Cost (excl. Brokered) G in billions) $4.5 $4.6 Q3'22 Q4 '22 Ql'23 Q2'23 sam Non-interest checking mum Interest checking Savings Money market mam Certificates of deposit Deposit cost —O-Fed funds effective(1) 77% 82% 85% 83% 88% 87% Loan to Deposit Ratio (1) F
Slide 14: Investments
Investments Securities Portfolio Mix and Trend@ ($ in billions) Qi'22 222 Q3'22 Q4'22 Qi'23 Q2'23 sams MBS - Agency Backed mmm CMO - Agency Backed == Municipal === Other - Agency Backed sams Corporate Bonds —o-Investment Yield —O-Fed Funds Effective (1) 25% 23% 22% 22% 21% Investments/Total Assets (
Slide 15: -1.00% 1.00% 3.00% 5.00% 7.00% 9.00% $15 .0 $20 .0 $25 .0 $30 .0
-1.00% 1.00% 3.00% 5.00% 7.00% 9.00% $15 .0 $20 .0 $25 .0 $30 .0 $35 .0 $40 .0 6% YoY Growth 6% YoY Growth 101 bps Growth 152 bps Growth
Slide 16: Interest Rate Sensitivity
¢ Interest Rate Sensitivity Camden June 30, 2023 16.57% 14.91% == -1.01% Yearl Year 2 m@ +200 bp m -200 bp December 31, 2022 11.57% 8.78% 3.06% -3.93% m +200bp m -200 bp CORPORATION Interest Rate Risk Position” * Liability sensitive Year 1 and asset sensitive Year 2; strategies employed have improve
Slide 17: Uninsured Deposits and Liquidity
co Uninsured Deposits and Liquidity Camden CORPORATION Bess | et | Sass Deposits in excess of FDIC insurance $1,127.9 24.0% $1,112.4 24.0% $1,418.6 29.4% Cee Eee nsurance and $699.1 14.9% $6915 14.9% $745.9 15.5% Excess Cash $28.3 $17.3 $17.9 Unpledged Securities 522.3 570.2 411.4 Over Collateralize
Slide 18: Commercial Diversification
¢ Commercial Diversification Camden CORPORATION CRE and Commercial Loans by Industry Real Estate Investment Breakdown (as of 6/30/23) (as of 6/30/23) Other (15 Industries <3%) 7% Other Nonresidential Buildings a a Office Buildings 20% 1-4 Family 8% Construction 4% Manufacturing a Industrial / $1.1 W
Slide 19: Office Portfolio
; ¢ Office Portfolio Camden CORPORATION As of June 30, 2023 Office Loans > $1mm by State * Office loans represent 5% of total loans and 12% of the (as of 6/30/23) commercial real estate portfolio + Projects require significant cash equity requirements, LTV minimum of 75% - 80% at origination, and re
Slide 20: Investment Portfolio
Investment Portfolio As of June 30, 2023 Corporate Bonds 3% Municipal 8% MBS - Agency % Backed ~ 66% © 59% AFS, 41% HTM . Duration of 5.7 years and weighted-average life of 7.7 years . Net unrealized loss on debt securities was $139 million at 6/30/23 . AFS unrealized loss of $100 million : HTM unre
Slide 21: Capital and Credit
¢ Capital and Credit Camden CORPORATION TCE ratio and CETI ratio Criticized and classified loans / Total loans 13.16% Utd 172% 74% 11.90% 11.92% 1.95% 1.75% 1.68% 1.60% ‘1.40% TEN 6.13% 6.37% 6.56% ll af Qi'22 Q2'22 Q3'22 Q4 '22 Qi'23 Q2'23 Qi'22 Q2'22 Q3 '22 Q2'23 = Tangible Common Equity Ratio(1)
Slide 22: Historical Financial Information
lox Ginded NATIONAL CORPORATION Historical Financial Information
Slide 23: Stock price appreciation and dividend yield
15 Year Stock price appreciation: 68.0% Average dividend yield: 3.09%
Slide 24: Total Assets Growth and Acquisitions
$2.3 $2.2 $2.3 $2.3 $2.6 $2.6 $2.8 $3.7 $3.9 $4.1 $4.3 $4.4 $4.9 $5.5 $5.7 $5.7 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Total Assets $ in billions Acquisitions: 2008 Union Bankshares 2012 Bank of America (14 branches) 2015 The Bank of Maine Organic Growth
Slide 25: 7% YoY Growth 7% YoY Growth bps YoY Growth bps YoY Growth
7% YoY Growth 7% YoY Growth 27 bps YoY Growth 27 bps YoY Growth
Slide 26: Diversified Revenue Stream
Diversified Revenue Stream Revenue Trend ( in millions) $50.5 $49.7 El 5 we es 27% 27% 24% eked OE 22% 20% 21% — at 21% [a 2196 $200 | 18% | : = ca 6 20% 2018 2019 2020 2021 2022 2023 YTD a Debit Card Income mmm Service Charges on Deposit Accounts Fiduciary and Brokerage Income Mortgage Banking Inco
Slide 27: Driving Efficiency and Scale
¢ Driving Efficiency and Scale Camden NATIONAL CORPORATION 59.60% 60.13% 60.99% 57.71% 57.82% S7.AT% 56.16% 56.57% 2018 2019 2020 2021 2022 2023 YID mmm Efficiency Ratio (CAC) mam Efficiency Ratio (Proxy Peers) = Overhead Expense Ratio (CAC) ——Overhead Expense Ratio (Proxy Peers) * Balanced approach
Slide 28: 0.00% 0.50% 1.00% 1.50% 2.00% 2018 2019 2020 2021 2022 2023 YTD 0.00% 0.25%
0.00% 0.50% 1.00% 1.50% 2.00% 2018 2019 2020 2021 2022 2023 YTD 0.00% 0.25% 0.50% 0.75% 1.00% 2018 2019 2020 2021 2022 2023 YTD 0.00% 0.50% 1.00% 1.50% 2.00% 2018 2019 2020 2021 2022 2023 YTD
Slide 29: Strong Capital Position
¢ Strong Capital Position Camden NATIONAL CORPORATION Tier 1 Leverage Ratio TCE Ratio 9.53% 9.55% — gig ggg 9.22% 8.66% 8.99% 8.02% 8.22% 6.37% Required Minimum(l) 4.00% Required Minimum(t) 2.00% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Total Risk-Based Capital Ratio 14.36% 14.44% 18:50% 14
Slide 30: Capital Return Trend
(a J Camden NATIONAL CORPORATION Capital Return Trend ($ in millions) $39.4 ee Sl.2 History of returning capital to shareholders through dividends and share repurchases Annualized dividend yield of 5.42% at June 30, 2023 2018 2019 2020 2021 2022 2023 YTD mms Dividends mam Share Repurchase =OCAC Payo
Slide 31: Appendix
Appendix lox Ginded NATIONAL CORPORATION
Slide 32: Executive Management Team
¢ Executive Management Team Camden CORPORATION +H ears of Year Joined Position Banking Experience SENEIRL Greg Dufour President and CEO 63 30+ 2001 Mike Archer, CPA EVP Chief Financial Officer 39 10+ 2013 David Ackley EVP Chief Risk Officer 48 10+ 2011 William Martel EVP Technology & Support Service
Camden National — Investor Presentation (August 2023) on 6ix