Camden National Corporation · NASDAQ:CAC
Camden National — Janney Investor Presentation (January 2020)
29 slides from Camden National's conference presentation, Jan 29, 2020
Slide 1: Janney Investor Presentation
Janney Investor Presentation Gregory Dufour | President & Chief Executive Officer January 29, 2020 0
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 • $4.4 billion in assets • 61 banking centers located in Maine(1) • 2 loan production offices • New Hampshire (1) • Massachusetts (1) • $700+ million market cap • 50 day avg share volume of approximately 5
Slide 4: 2019 Financial Highlights
2019 Financial Highlights Strong earnings performance • Net income of $57.2 million, up 8% over 2018 • Return on tangible equity: 15.99%(a) • Return on assets: 1.30% • Tangible common equity ratio: 8.66%(a) Solid growth & great asset quality • Average loans of $3.1 billion; YoY growth of 8% • Averag
Slide 5: Performance to Proxy Peer Group
Performance to Proxy Peer Group 9/30/2019 Performance Ratios (%) CAC Peer Median Peer Average ROAA 1.27 1.15 1.04 ROAE 12.29 10.59 9.88 ROATCE 15.81 12.71 11.97 Net Interest Margin (Reported) 3.13 3.27 3.32 Efficiency Ratio 55.40 60.28 62.93 Loans / Deposits 86.43 95.88 96.04 Market Ratios - 01/23/2
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
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 $4.4 Acquired Growth: $1.7 billion $4.3 15 Year CAGR: 7.5% $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 $1.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 8: Focused on Building Market Share and Key Market Expansion
Focused on Building Market Share and Key Market Expansion Strong Market Share: State of Maine • Mortgage originations: 2nd (7.0% market share YTD 12/31/19) • Deposit market share: 2nd (11.4% market share as of 6/30/19) Core Market High Growth Maine Counties: York and Cumberland • Mortgage originatio
Slide 9: Focused on Building Market Share: Deposit Opportunity in Maine
Focused on Building Market Share: Deposit Opportunity in Maine 2019 STATE OF MAINE - 6/30/2019 Avg. Deposits and ($ 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 3,3
Slide 10: 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
Slide 11: Focused on Growing and Diversifying Revenue
Focused on Growing and Diversifying Revenue Fee income is 25% of total revenue (net interest income plus fee income) 10
Slide 12: Focused on Improving Productivity and Creating Efficiencies
Focused on Improving Productivity and Creating Efficiencies Expense and Efficiency ratio(1) Deposits per Branch $59 Annual Quarterly $56 $100 Millions $53 Millions $80 $50 $47 $60 57.7% 57.3% 57.1% 56.5% 55.8% 55.6% $44 54.9% 55.3% $40 $41 $38 $20 $35 64 61 60 60 61 $0 $32 2017 2018 2019 4Q18 1Q19 2
Slide 13: Balanced Loan Mix & Strong Credit Culture
Balanced Loan Mix & Strong Credit Culture 2019 Avg. Loans • Internal lending limit of $37 million with one relationship exceeding $25 million as Home Equity/ of 12/31/19 Consumer Commercial 11% 14% • Commercial Diversification: $382 million Nonresidential Building Operator Residential Mortgages $243
Slide 14: Prudent Investments
Prudent Investments 2019 Investments FRB/FHLB Stock Agency/Sub. 1% Notes/Other 1% SBA 5% Municipal 11% WAL Shock Rate Shock WAL Agency CMO 37% +200bps 6.94 Current 5.24 -100bps 4.16 MBS 44% -200bps 3.83 Average Investments: $925 million Average Yield (FTE): 2.64% 13
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 1.13% 4.70% 4.68% 1.07% 1.08% 4.65% 4.60% 4.60% 1.05% 4.49% 4.49% 0.94% 0.94% 0.86% 0.85% 0.85% 0.81% 4.20% 4.18% 0.78% 4.15% 4.11% 4.11% 0.77% 3.97% 4.02% 0.65% 0.52% 2018 201
Slide 16: Net Interest Margin
Net Interest Margin Annual Quarterly 3.21% 3.18% 3.16% 3.15% 3.11% 3.09% 3.12% 0.07% 0.04% 0.06% 0.04% 0.04% 0.04% 0.03% Interest Rate Risk Estimated Changes In Net Interest Income(a) Year 1 3.10% 3.11% 3.14% 3.14% 3.07% 3.05% 3.09% +200bp (0.6)% -100bp (0.4)% Year 2 +200bp 4.0% -100bp (5.6)% 2018 2
Slide 17: Shareholder Value Long-Term Metrics
Shareholder Value Long-Term Metrics TBV Per Share(a) $24.77 $10.43 • TBV per share 15 year CAGR of 5.9% • Consistent dividend of 30%+ of annual earnings • $82 million in share buybacks since 2004 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 (repurchased 488,052 shares through Dece
Slide 18: Shareholder Value Year Total Return
Shareholder Value 15 Year Total Return • Stock price appreciation of 75.31% • Average dividend yield of 2.79% 300% 264% 250% 200% 174% 150% 139% 100% 75% 50% 0% Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 -50% CAC SNL U.S. Bank $1B-
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 (9 years in a row) Customers. Shareholder. 2019 Greenwich Named to Customer Sandler O’Neill Experience (CX) Sm
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 • 145 year operating history • 2nd overall deposit market share in Maine, 1st in community banks • #2 mo
Slide 21: Appendix
Appendix - Chonden NATIONAL CORPORATION
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(1) COO & CFO 54 25+ 2008 Joanne Campbell EVP Risk Management 57 30+ 1996 SVP Managing Director of Jennifer Mirabile 60 30+ 2017 Wealth Management Tim
Slide 23: Financial Highlights: Balance Sheet
Financial Highlights Balance Sheet (in million’s) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Loans $3,095 $3,111 $3,100 $3,042 $3,026 Investment Securities 933 926 933 937 927 Total Assets 4,430 4,520 4,447 4,421 4,297 Deposits 3,538 3,618 3,592 3,578 3,464 Borrowings 338 342 311 325 342 Shareholders’
Slide 24: Financial Highlights: Net Income and Key Ratios
Financial Highlights Net Income and Key Ratios Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Net Income (in millions) $15.2 $14.5 $13.2 $14.3 $14.0 Diluted Earnings per Share $0.99 $0.94 $0.85 $0.91 $0.89 Return on Tangible Equity(1) 16.26% 15.67% 15.00% 17.08% 17.43% Return on Assets 1.35% 1.29% 1.21% 1.
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 2.50% 3.00% 2.5
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%
Slide 27: Mortgage Banking Activity
Mortgage Banking Activity Twelve Months Ended December 31, 2019 Top 15 Lenders Originations Rank % of Total Bangor Savings Bank 4,399 1 10.0% Camden National Bank 3,080 2 7.0% Residential Mortgage Services Inc. 2,341 3 5.3% Quicken Loans 2,158 4 4.9% Kennebec Savings Bank 1,550 5 3.5% United Wholesa
Slide 28: Market Overview
Market Overview Maine New Hampshire Massachusetts Population in Millions 1.34 1.36 6.90 (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 $61,900 $81,669 $85,145 (2019) Demographics Projected HH Income Change 9.7% 9.9
Slide 29: Capital Position and Payout
Capital Position and Payout Capital Position EPS and Dividend Payout 14.36% 14.46% 14.44% $0.99 14.12% 13.97% $0.94 $0.91 $0.89 $0.85 8.49% 8.44% 8.66% 8.02% 8.21% $0.33 $0.30 $0.30 $0.30 $0.30 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Total RBC Ratio Tangible Common Equity Ratio(1) Diluted
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