Camden National Corporation · NASDAQ:CAC
Camden National — Q4 2020 Earnings Presentation
14 slides from Camden National's earnings presentation, Jan 26, 2021
Slide 1: Fourth Quarter 2020 Earnings Conference Call
Fourth Quarter 2020 Earnings Conference Call January 26, 2020 e Candas NATIONAL CORPORATION
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: Fourth Quarter 2020 Highlights
Fourth Quarter 2020 Highlights Net Income * Net income up 9% over last quarter $18.3 million driven by higher mortgage banking income Diluted Earnings Per Share $1.22 ¢ Loan deferrals declined to 0.8% of Ley loans, down from 5.5% last quarter Return onAsseis 9 e Asset quality remains strong 1.45% *
Slide 4: Income Statement
Income Statement Increase/(Decrease) $ thousands 4Q20 3Q20 4Q19 3 z + SBA PPP loans added $3.7mm to 4Q20 interest Net interest income $35,461 $980 $3,222 income, $1.3mm higher than 320 3 , + Year-over-year increase driven by strong mortgage Non-interest income $14,331 $1,635 $2,383 bankingincome Tot
Slide 5: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin NIl and NIM ($ in millions) $345 $35.5 $32.2 4Qi9 3Q20 4Q20 ma N|| —®=NIM Estimated Changes in Net Interest Inc Year1 Year 2 +200 bps 1.52% 772% -100 bps -0.67% -7.18% (1) Assumes flat balance sheet, no changes in asset/funding mix, and a parallel and pro
Slide 6: Loan Portfolio
Loan Portfolio Residential Real Estate * 70% located in Maine and 24% in Massachusetts * 62% are primary residences, 28% second homes and 10% investment property * 98% of balances at </= 80% LTV (or supplemented with private mortgage insurance) Commercial Real Estate * 67% of real estate located in
Slide 7: Commercial Diversification
Commercial Diversification CRE and Commercial Loans by Industry (as of 12/31/20) Other (14 Industries <3%) 20% Real Estate Investment Restaurants AN% % Construction 4% Manufacturing 4% Retail Trade 1% Health Care / Social Asst. 8% Lodging 4% e eoniten NATIONAL CORPORATION Real Estate Investment Brea
Slide 8: SBA PPP Loans
SBA PPP Loans 2020 Originations Total Balance Tier Units Production ($ in millions) | ($ in millions) * SBA PPP loans yielded 7.74% and 416% during Q4 and Q3, respectively $0 - $50,000 2,200 $35.1 $27.9 $50,001 - $250,000 650 $68.9 $35.1 * $2.2 million of origination fees $250,001 - $500,000 105 $35
Slide 9: Loan Deferral Details
Loan Deferral Details 9/30/2020 12/31/2020 Category Deferred % of Category Deferred of Category million Volume Deferred Volume eferred Real Estate Investment $12.8 1.7% $7.1 0.9% Lodging $50.2 19.0% $6.9 2.6% Other Services (expt. Public Admin) $8.7 16.9% $3.5 78% Other Accommodation $11 3.3% $1.4 4
Slide 10: Solid Credit Quality
Solid Credit Quality NPAs / Total Assets 12/31/2009 1.07% 0.67% 0.50% r 34% 0.25% 9.20% ALL / NPLs 361.65% 12/31/2009 a 109.31% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 NCOs / Average Loans ALL / Total Loans 12/31/2009 9 fe 12/31/2009 nae : 1.33% 0.89% 0.87% 9.82% 0.81% 0.13% 0.07% 0.08% ||
Slide 11: Securities Portfolio
Securities Portfolio * Book value was $1.1 billion, up $7 million, or 1%, linked- Securities Portfolio Mix quarter (Book Value at 12/31/20) U.S. Agencies and Other * — Average yield (FTE) of 2.05%, down 21 bps linked- Se ; M quarter aa A - sees CMO - * — Unrealized net gain of $37.3 million on AFS c
Slide 12: CECL Adoption
CECL Adoption Allowance for credit losses reconciliation YTD YTD YTD YTD 2019 1Q20 2Q20 3Q20 4Q20 ALL (beginning of period) $24,712 $25,171 $25,171 $25,171 $25,171 Impact of adopting CECL. $0 $0 $0 $0 $233 Provision for loan losses $2,862 $1,772 $1,172 $12,172 $13,215 Net charge-offs $2,403 $422 $80
Slide 13: Strong Liquidity Position
Strong Liquidity Position Well Positioned to Support Liquidity Needs Liquidity Sources (12/31/20) Amount G in millions) Excess Cash $89.6 Unpledged Investment Securities $470.0 Lines of Credit Exposure Unpledged Municipal Securities $104.6 1% Increase in Utilization YoY Over Collateralized Securitie
Slide 14: Strong Capital Position
Strong Capital Position Tier 1 Leverage Ratio Total Risk Based Capital Ratio Common Equity Tier 1 (CET1) Ratio 9.53% 9.55% 9.07% 9.13% 15.40% 12.45% Bask 14.04% 14.14% 14.36% 14.44% 1.27% 11.30% 11.62% 11.80% Required icine) Required Required inimum(1), Minioum(), 7.00% 4.00% 2016 = 2017-2018 ~=— 20