Camden National Corporation · NASDAQ:CAC
Camden National — Investor Presentation (June 2022)
28 slides from Camden National's investor presentation, Jun 23, 2022
Slide 1: Investor Presentation
Investor Presentation Gregory Dufour | President & Chief Executive Officer Jared Merritt | SVP, Treasurer June 23, 2022 ¢ Camden NATIONAL CORPORATION
Slide 2: Forward Looking Statements
Forward Looking Statements 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 are subject to numerou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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. These non-GAAP fina
Slide 4: Camden National Corporation
Camden National Corporation Largest publicly traded bank headquartered in Northern New England (parent company of Camden National Bank) * NASDAQ: CAC * Total Assets: $5.4 billion * Total Loans: $3.5 billion « Total Deposits: $4.6 billion + Assets Under Administration: $1.7 billion * Market Cap (as o
Slide 5: Why Camden National?
Why Camden National? Strong Financial Metrics * History of strong financial performance and stable growth * Solid efficiency ratio, ROAA and ROATCE * Strong credit culture with a history of superior credit quality Strong Shareholder Returns Gi) @)—-®) * History of growing dividends * Opportunistical
Slide 6: Acquisitions and long-term total return and growth
Acquisitions: 2008 Union Bankshares 2012 Bank of America (14 branches) 2015 The Bank of Maine 3 Year 5 Year 10 Year Total Return 15.5% 28.0% 175.2% TBV/Sh CAGR 11.7% 10.0% 7.2% EPS CAGR 10.7% 12.3% 8.8% Total Assets CAGR 8.6% 7.3% 9.1%
Slide 7: History of Delivering Strong and Stable Financial Performance
History of Delivering Strong and Stable Financial Performance ROAA 1.80% 1.50% 1.20% 0.90% 0.60% 0.30% 0.00% 130014 «15 ‘16 ‘17 18 ‘19 '20 ‘21 YTD "22 Efficiency Ratio ROAE 15.00% 12.50% 10.00% 7.50% 5.00% 2.50% 0.00% History of exceeding peer average performance 00% metrics 65.00% * Q122 percent ra
Slide 8: Recent Accomplishments and Activities
Recent Accomplishments and Activities ¢ Record financial performance in 2021 ¢ Repurchased 161,556 shares of Camden National common stock through May 24, 2022 * Continued investment in technology and digital offerings to consistently enhance the overall customer experience and providing customers wi
Slide 9: Good corporate governance and sustainability
We believe good corporate governance practices that foster diversity and inclusion, environmental stewardship, innovation and social and economic equity will promote sustainability in everything we do. € 3.7 MILLION pages of paper saved by encouraging Paperless statements Created a Diversity, Equity
Slide 10: First Quarter 2022 Highlights
First Quarter 2022 Highlights * First quarter net income up 2% compared to Net Income the prior quarter $16.8 million * Total loans grew 3% in the first quarter (or 4% Diluted Earnings Per Share excluding SBA PPP loans“), resulting from $1.13 strong residential mortgage and commercial loan productio
Slide 11: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net Interest Income G inmillions) $32.4 S355 $1.9 $30.5 1921 2Q21 NII (less SBA PPP income) B s Positi ag $36.8 $36.4 + Balance sheet is asset sensitive, majority of the = $27 “ benefit comes in Year 2 as assets reprice slower $19 than funding + Loan growt
Slide 12: Growing and Diversified Revenue Stream
Growing and Diversified Revenue Stream ¢ Annual Non-Interest Income consistently 24% - 27% of Total Revenue « SBA PPP loans contributed $8.2 million to 2021 and $1.1 million to YTD 3/31/22 total revenue ¢ 1Q22 Non-Interest Income percentage of Total Revenue lower due to higher percentage of mortgage
Slide 13: Focused on Driving Efficiency and Scale
Focused on Driving Efficiency and Scale . . Operating Expense and Overhead Expense Ratio - 5 Year ¢ Balanced approach to investing Trend ¢$ inmitions) in the franchise while maintaining efficient operations $95.3 $100.0 $103.7 $88.5 $91.9 * YTD efficiency ratio through 3/31/22 of 56.47% * Continued
Slide 14: Loan Portfolio
Loan Portfolio Residential Real Estate * 68% located in Maine and 24% in Massachusetts * 62% are primary residences, 30% second homes and 8% investment property + 97% of balances at </= 80% LTV (or supplemented with private mortgage insurance) Commercial Real Estate + 67% of real estate located in M
Slide 15: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets e« ACLon loans at a 4.7x coverageof NPLs at 3/31/22 e Annualized YTD net charge-offs were 0.03% of average loans at 3/31/22 There were no loans operating under a short-term deferral arrangement at 3/31/22 * Loans 30-89 days past due were 0.04% of total loans
Slide 16: Investment Portfolio
Investment Portfolio * Deployed portion of excess liquidity in Securities Portfolio Mix and Trend ($ in millions) 2020 and 2021 into the investment $1,521 $1,528 portfolio ae . Average yield (FTE) of 1.83%, up 5 bps $1,091 ae linked-quarter $921 $949 $928 11% . Unrealized loss on AFS increased to 11
Slide 17: Funding Mix
Funding Mix Deposits * Average balance of $4.4 billion * Average deposit cost of 0.15% * 3! highest deposit market share in Maine (8.3% of deposits as of 6/30/21) * Loan-to-deposit ratio of 77% at 3/31/22, up from 74% at 12/31/21 * $4.3 billion of non-maturity deposits (excl. brokered) are at an ave
Slide 18: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio 9.53% 9.55% 913% gary 9.30% Required Minimum(!) 4.00% 2018 2019» 2020» 2021-1022 (Sin millions) Tier 1 Leverage 14.36% 14.44% 1ss0% 2018 2019 2020 Ratios at 3/31/22 $497.5 Total Risk Based Capital Ratio 14.71%. 2021 1022 Required Minimum® 14.51% Common E
Slide 19: Tangible Common Equity Ratio
Tangible Common Equity Ratio * Capital position remains sion 250% 860K ace ae anes strong, highlighted by n96y 7.85% 8.02% regulatory capital ratios all 7.25% above regulatory required minimums « Large decline in TCE ratio since 12/31/21 is the result of changes in market rates increasing the unreal
Slide 20: Stock price appreciation and average dividend yield
15 Year Stock price appreciation of 72.28% Average dividend yield of 2.99%
Slide 21: TBV Per Share and Dividends as a % of Net Income
TBV Per Share(a) Dividends as a % of Net Income • • • •
Slide 22: Appendix
Appendix ¢ Camden CORPORATION
Slide 23: Seasoned Management Team
Seasoned Management Team Years of Position Banking eee Experience Greg Dufour President and CEO 62 30+ 2001 Mike Archer, CPA EVP Chief Financial Officer 38 9 2013 Joanne Campbell EVP Enterprise Risk Management & Chief Risk Officer 59 30+ 1996 William Martel EVP Technology & Support Services 52 20+ 2
Slide 24: Income Statement
Income Statement $ thousands 1Q22 4Q21 3Q21 2921 1Q21 Net interest income $36,365 $35,567 $34,746 $33,529 $35,461 Non-interest income $9,825 $12,101 $11,099 $11,320 $14,331 Total revenue $46,190 $47,668 $45,845 $44,849 $49,792 Non-interest expense $26,209 $26,968 $26,263 $25,590 $26,692 Pretax, pre-
Slide 25: Balance Sheet
Balance Sheet $ millions 1Q22 4Q21 3Q21 2921 1Q21 Loans $3,534 $3,431 $3,326 $3,301 $3,259 Investment Securities $1,437 $1,523 $1,471 $1,416 $1,131 Total Assets $5,420 $5,500 $5,503 $5,152 $5,089 Deposits $4,577 $4,609 $4,605 $4,294 $4,212 Borrowings $282 $256 $256 $215 $246 Shareholders’ Equity $48
Slide 26: Credit Quality Metrics
Credit Quality Metrics ——Camden National Corp. ——Peer Group NPAs / Assets NCOs / Average Loans 3.00% 0.90% 2.50% 0.75% 2.00% 0.60% 1.50% 0.45% 1.00% 0.30% 0.50% 0.15% 0.00% 0.00% 430014 15 ‘16 ‘17 18 ‘19 ‘20 ‘21 YTD 4301415 16 17, 18 119 ‘20. ‘21. YTD "22 "22 Loan Loss Reserves / Gross Loans Nonaccr
Slide 27: Top Lenders Origination Units Rank
Top 15 Lenders Origination Units Rank % of Total Bangor Savings Bank 1,080 1 10.2% Quicken Loans 732 2 6.9% Camden National Bank 698 3 6.6% First, N.A. 421 4 4.0% USA - various agencies 394 5 3.7% Kennebec Savings Bank 388 6 3.7% United Wholesale Mortgage 384 7 3.6% Key Bank 353 8 3.3% Machias Savin
Slide 28: Tangible Common Equity Ratio reconciliation
Tangible Common Equity Ratio and Adjusted Tangible Common Equity to Adjusted Assets: (In thousands, except ratios) 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 3/31/2022 Shareholders' equity 403,413$ 435,825$ 473,415$ 529,314$ 541,294$ 482,446$ Less: goodwill and other intagible assets (99