Camden National Corporation · NASDAQ:CAC

Camden National — Piper Jaffray Eastern Bank Symposium 2019

28 slides from Camden National's conference presentation, May 14, 2019

  1. Slide 1: Piper Jaffray Eastern Bank Symposium

    Piper Jaffray Eastern Bank Symposium Gregory Dufour | President & Chief Executive Officer Deborah Jordan | Chief Operating & Financial Officer May 14, 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 • Camden National is the largest publicly traded bank headquartered in Northern New England • $4.4 billion in assets • 60 banking centers in Maine • 3 loan production offices • New Hampshire (2) • Massachusetts (1) • $700+ million market cap • 50 day avg share volume of a

  4. Slide 4: Q1 2019 Financial Highlights

    Q1 2019 Financial Highlights Strong earnings performance • Net income of $14.3 million • Return on tangible equity: 17.08%(a) • Return on assets: 1.33% • Tangible common equity ratio: 8.21%(a) Solid growth • Total loans of $3.0 billion; LTM growth of 9% • Total deposits of $3.6 billion; LTM growth o

  5. Slide 5: Performance to Northeast Bank Peer Group

    Performance to Northeast Bank Peer Group 3/31/2019 Performance Ratios (%) CAC Peer Median Peer Average ROAA 1.33 1.15 1.09 ROAE 13.13 11.63 11.19 ROATCE 17.08 12.65 12.99 Net Interest Margin (Reported) 3.18 3.02 3.14 Efficiency Ratio 54.86 60.10 58.82 Loans / Deposits 85.03 95.99 96.50 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: 7.9% $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 (7.9% market share for the first quarter of 2019) • Deposit market share: 2nd Core (10.5% market share as of 6/30/18) Market High Growth Maine Counties: York and Cumberland • Mo

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

    Focused on Building Market Share: Deposit Opportunity in Maine Q1 2019 STATE OF MAINE - 6/30/2018 Avg. Deposits and ($ in millions) Funding Market Rank Institution Deposits Branches Share % 1 Toronto-Dominion Bank $ 3,846 44 13.1 2 Camden National Corp. 3,084 61 10.5 Borrowings 3 Bangor Bancorp MHC

  10. 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

  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 58.76% 58.39% 57.53% 57.71% 57.33% 57.05% 56.50% 54.86% $41 $40 $38 $20 $35 44 44 64 61 60 $0 $32 2016 2017 2018 1Q18 2Q18 3

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

    Balanced Loan Mix & Strong Credit Culture Q1 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 Q1 2019 Investments FRB/FHLB SBA Agency/Sub. Stock 1% 5% Notes/Other 2% Municipal 10% WAL Shock Agency CMO Rate Shock WAL 38% +200bps 5.20 -100bps 3.46 -200bps 2.92 MBS 44% Average Investments: $946 million Average Yield (FTE): 2.65% Weighted Average Life (WAL): 4.15 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% 4.60% 1.07% 4.49% 4.49% 4.43% 0.94% 4.25% 4.30% 0.88% 4.20% 0.85% 0.84% 4.11% 0.78% 3.97% 3.97% 0.72% 3.90% 0.65% 3.76% 3.78% 0.59% 0.52% 0.53% 0.48% 0.42% 0.32% 2017 201

  16. Slide 16: Net Interest Margin

    Net Interest Margin Annual Quarterly 3.19% 3.16% 3.14% 3.21% 3.18% 3.10% 3.10% 0.09% 0.06% 0.05% 0.07% 0.04% 0.06% 0.06% Interest Rate Risk Estimated Changes In Net Interest Income(a) Year 1 +200bp 0.5% 3.10% 3.10% 3.04% 3.04% 3.09% 3.14% 3.14% -100bp (0.8)% -200bp (2.0)% Year 2 +200bp 6.9% -100bp (

  17. Slide 17: Shareholder Value Long-Term Metrics

    Shareholder Value Long-Term Metrics TBV Per Share(a) $22.81 $10.43 • TBV per share 15 year CAGR of 5.5% • Consistent dividend of 30%+ of '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Q1 annual earnings '19 • $65 million in share buybacks since 2004 (January 2019 program of Dividends as

  18. Slide 18: Shareholder Value Year Total Return

    Shareholder Value 15 Year Total Return • Stock price appreciation of 95.87% • Average dividend yield of 2.77% 250% 243% 200% 205% 150% 110% 100% 79% 50% 0% Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 -50% CAC SNL U.S. Bank $1B-$5B S

  19. Slide 19: 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

  20. Slide 20: Appendix

    Appendix - Chonden NATIONAL CORPORATION

  21. Slide 21: 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 56 30+ 1996 SVP Managing Director of Jennifer Mirabile 59 30+ 2017 Wealth Management Tim Ni

  22. Slide 22: Financial Highlights Balance Sheet

    Financial Highlights Balance Sheet Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Loans $3,042 $3,026 $2,909 $2,868 $2,789 Investment Securities 937 927 888 918 912 Total Assets 4,421 4,297 4,190 4,194 4,112 Deposits 3,578 3,464 3,221 3,056 3,026 Borrowings 325 342 479 661 622 454 436 416 410 403 Tier 1 Le

  23. Slide 23: Financial Highlights Net Income and Key Ratios

    Financial Highlights Net Income and Key Ratios Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Net Income (Loss) $14.3 $14.0 $14.1 $12.2 $12.8 (in millions) Diluted Earnings per Share $0.91 $0.89 $0.90 $0.78 $0.82 Return on Tangible Equity(1) 17.08% 17.43% 17.84% 16.23% 17.35% Return on Assets 1.33% 1.32% 1

  24. Slide 24: 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% '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Loan Loss Reserves / Gross Loans Nonaccrual Loans / Loans 2.00% 3.00% 2.50% 1.50%

  25. Slide 25: 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% '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Net Interest Margin Efficiency Ratio 4.00% 70.00% 3.75% 65.00% 3.50% 60.00% 3.25% 55.00% 3

  26. Slide 26: Mortgage Banking Activity

    Mortgage Banking Activity Three Months Ended March 31, 2019 Top 15 Lenders Originations Rank % of Total Bangor Savings Bank 689 1 9.2% Camden National Bank 592 2 7.9% Quicken Loans 376 3 5.0% Residential Mortgage Services Inc. 339 4 4.5% First, N.A. 270 5 3.6% Key Bank 269 6 3.6% Kennebec Savings Ba

  27. Slide 27: 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%

  28. Slide 28: Capital Position and Payout

    Capital Position and Payout Capital Position EPS and Dividend Payout 14.55% $0.91 14.32% 14.33% 14.36% 14.46% $0.90 $0.89 $0.82 $0.78 8.02% 8.21% 7.59% 7.59% 7.74% $0.30 $0.30 $0.30 $0.30 $0.25 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Total RBC Ratio Tangible Common Equity Ratio(1) Diluted

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