Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (June 2023)
33 slides from Camden National's investor presentation, Jun 22, 2023
Slide 1: Investor Presentation
Ge Ginded NATIONAL CORPORATION Investor Presentation Greg Dufour | President & Chief Executive Officer Mike Archer | EVP, Chief Financial Officer June 22, 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 CORPORATION NASDAQ: CAC As of As of May 31, 2023 March 31, 2023 $431 $5.7 Million Billion Market Cap Assets 46,724 $4.1 Average Daily Billion Volume Loans 57 $4.6 Banking Billion Centers Deposits 2 $1.8 Loan Billion Production Assets Under Offices Administration
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: Camden National by the Numbers
Camden Camden National by the Numbers NATIONAL As of or for the quarter ended March 31, 2023 unless otherwise noted Loan/deposit ratio of 88% Deposits decreased 49 1% adjusting for hip that is used as a surrogate for borrowings Uninsured and uncollateralized deposits were 15% of total deposits Avail
Slide 7: Current Financial Update
lox Ginded NATIONAL CORPORATION Current Financial Update
Slide 8: 1Q 2023 Financial Highlights
€ 1Q 2023 Financial Highlights Camden CORPORATION * — Net income decreased by $2.6 million, or 17%, from Net Income the fourth quarter, while pre-tax, pre-provision $12.7 million earnings decreased $1.8 million, 9%, over the same period Diluted Earnings Per Share * — Total loans grew $62 million, or
Slide 9: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 10: - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 0.00% 1.00% 2.00% 3.00%
- 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00%
Slide 11: - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%
- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%
Slide 12: 6% YoY Growth 7% YoY Growth bps Growth bps Growth -1.00% 1.00% 3.00% 5.00%
6% YoY Growth 7% YoY Growth 85 bps Growth 124 bps Growth -1.00% 1.00% 3.00% 5.00% 7.00% 9.00% $15 .0 $20 .0 $25 .0 $30 .0 $35 .0 $40 .0
Slide 13: • • • • • • • • • • • 1.87% 10.96% +200
• • • • • • • • • • • 1.87% 10.96% +200 bp -200 bp
Slide 14: Primary liquidity vs uninsured deposits
Total primary liquidity is 1.9x uninsured and uncollateralized deposits as of 3/31/23 Customers with <$1mm in balances made up 65% of adjusted total deposits(3) at 3/31/23 and 63% at 12/31/22
Slide 15: Commercial Diversification
¢ Commercial Diversification Camden NATIONAL CORPORATION CRE and Commercial Loans by Industry Real Estate Investment Breakdown (as of 3/31/23) (as of 3/31/23) Other (14 Industries <3%) Other r Norresidential Office Buildings 20% Other Services (expt Public Admin) 3% Wholesale Trade 3 5% 5 Real Estat
Slide 16: Office Portfolio
; ¢ Office Portfolio Camden CORPORATION Office Loans > $1mm by State * Office loans represent 5% of total loans and 12% of the (as of 3/31/23) commercial real estate portfolio as of 3/31/23 + Projects require significant cash equity requirements, LTV minimum of 75% - 80% at origination, and requests
Slide 17: Investment Portfolio
; ¢ Investment Portfolio Camden CORPORATION CMO - Agency Backed Corporate Bond Ratings (21 holdings) $44.6 million Municipal Bond Ratings (139 holdings) MBS - Agency Backed 66% - 60% AFS, 40% HTM . 100% of municipal holdings are rated A- or better by at least one rating agency (50% carry additional
Slide 18: Strong Capital Position
Ge Ginded Strong Capital Position icin Tier 1 Leverage Ratio 9.30% 9.25% 9.24% 9.22% 9.24% Required Minimum(1) 4.00% 1022 2022 3022 4022 1023 Total Risk-Based Capital Ratio 14.51% 14.15% 13.81% 13.80% —*13.95% Required jinimum() 10:50% 1022 2Q22 3Q22 4Q22 1023 (1) “Required Minimum” including capita
Slide 19: Historical Financial Information
Historical Financial Information lox Ginded NATIONAL CORPORATION
Slide 20: Stock price appreciation and dividend yield
15 Year Stock price appreciation: 44.9% Average dividend yield: 3.17%
Slide 21: 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 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Assets $ in billions Acquisitions: 2008 Union Bankshares 2012 Bank of America (14 branches) 2015 The Bank of Maine Organic Growth 58% Acquisitio
Slide 22: Assets, deposits and net income growth
Total Assets $5.7 Billion Average Deposits $4.5 Billion 3% YoY Growth 7% 5 Year CAGR Net Income $61.4 Million 9% YoY Growth 11% 5 Year CAGR (11%) YoY Growth 17% 5 Year CAGR
Slide 23: 7% YoY Growth 7% YoY Growth bps YoY Growth bps YoY Growth
7% YoY Growth 7% YoY Growth 27 bps YoY Growth 27 bps YoY Growth
Slide 24: Diversified Revenue Stream
¢ Diversified Revenue Stream Camden NATIONAL CORPORATION Revenue Trend ($ in Millions) $50.5 $49.7 2018 2019 2020 2021 2022 ‘mms Debit Card Income mmm Service charges on deposit accounts mmm Fiduciary and Brokerage Income mmm Mortgage Banking Income mmm Other Income —O—CAC % of Revenue Peer % of Rev
Slide 25: Driving Efficiency and Scale
€ Driving Efficiency and Scale Camden NATIONAL CORPORATION Pn 61.60% 56.16% 56.38% 2018 2019 2020 2021 2022 mmm Efficiency Ratio (CAC) mums Efficiency Ratio (Peers) -— Overhead Expense Ratio (CAC) ——=Overhead Expense Ratio (Peers) ¢ Balanced approach to investing in the franchise while maintaining e
Slide 26: Loan Portfolio
¢ Loan Portfolio an Loan Portfolio Trend ( in Billions) Loan Portfolio Mix $4.0 Home Equity and Consumer $3.4 Commercial $3.1 $5.2 1% Na $3.0 ; 7 45% 44% 46% 42% Residential Real Estate 41% Commercial Real Estate 56% 54% 54% oa ‘a1% 2018 2019 2020 2021 2022 mCommercial Retail m™|SBA PPP All data is
Slide 27: Solid Credit Quality
¢ Solid Credit Quality Camden CORPORATION ——Camden National Corp. NPAs / Assets NCOs / Average Loans Peer Group 2.00% 1.00% 1.50% 0.75% 1.00% 0.50% 0.50% a 0.25% sean —_——____, a 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 2.00% 2.00% 1
Slide 28: Investment Portfolio
; ¢ Investment Portfolio Camden CORPORATION Securities Portfolio Mix and Trend ($ in millions) 1.521 $1,091 $949 $928 ' 2018 2019 2020 2021 2022 U.S. Agency Backed ® Municipal and Corporate Bonds Book Yield (FTE) 2.46% 2.64% 2.38% 1.80% 214% Modified Duration 414 4.65 3.95 475 5.83 Securities / Asse
Slide 29: 87% 87% 80% 74% 83% $3.7 $3.9 $4.2 $4.6 $4.9
87% 87% 80% 74% 83% $3.7 $3.9 $4.2 $4.6 $4.9
Slide 30: Strong Capital Position
€ Strong Capital Position Camden 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(1) 4.00% Required Minimum()) 2.00% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Total Risk-Based Capital Ratio 15.40% 14.36% ‘14.44% 14.71% 13.
Slide 31: Appendix
Appendix lox Ginded NATIONAL CORPORATION
Slide 32: 2022 ESG Highlights
2022 ESG Highlights Committed to continual corporate responsibility progress as we work to create a thriving, sustainable, inclusive future for all our constituents 2022 Highlights: * Introduced a board- approved diversity core value and statement ¢ Increased diversity of Board Directors * Began dev
Slide 33: Executive Management Team
¢ Executive Management Team Camden CORPORATION Position ey late Experience Greg Dufour President and CEO 63 30+ 2001 Mike Archer, CPA EVP Chief Financial Officer 39 10+ 2013 David Ackley SVP Information Security and Enterprise Risk Management 47 10+ 2011 Joanne Campbell EVP Enterprise Risk Managemen