2015 ANNUAL REPORT
A year of
growth.
opportunity.
A future of
Greenville
Dover-Foxcroft
Milo
Bingham
Corinth
Madison
Hermon
Newport
Hampden
Old Town
Orono
Bangor (3)
Brewer
Waterville (2)
Oakland
Bucksport
Ellsworth (2)
Belfast (2)
Blue Hill
Town Hill
Milbridge
Calais
Machias
Jonesport
Manchester
Winthrop
Hallowell
Richmond
Augusta (4)
Randolph
Gardiner
Lewiston
Auburn
Union
Castine
Camden (2)
Bar Harbor
Rockland
Stonington
Vinalhaven
Waldoboro Thomaston
Damariscotta
Wiscasset
Bath
Topsham
Brunswick (2)
Falmouth
Portland (2)
Saco
Kennebunk
Manchester
York
Braintree
Boothbay Harbor
LOCATION KEY
Camden National Bank
Acadia Trust
From here.
Anywhere.
Dear Fellow Shareholders:
Camden National has undergone a deliberate transformation
during the past twelve months, highlighted by the acquisition of
SBM, Financial Inc., the parent company of The Bank of Maine,
combined with several other strategic investments. Today, our
presence extends from Central, Downeast, and the company’s
home territory of Midcoast Maine through Southern Maine and
select markets in New Hampshire and Massachusetts. In just
a short time, we have evolved from “that bank on the coast
of Maine” to the largest and strongest financial institution
headquartered in Northern New England.
Our investments in 2015 went beyond acquisitions that extended
our geographic reach to include technological advances and
product enhancements, as well as heightened community and
employee involvement. These actions are part of our long-term
commitment to providing the best banking experience for our
four constituencies—customers, shareholders, communities and
employees, who we call and consider stakeholders. Developed
by management and our Board of Directors, our strategic plan
ensures the relevance, viability and success of our organization in
a rapidly changing environment.
The strategic objective is to strengthen our company through
profitable growth that aligns with our commitment to banking and
other financial services delivered through our community-based
model. This is our key differentiator—we offer the same advanced
products and services as our largest competitors, while staying
true to our roots as a local, genuine Maine bank.
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2
Strategic aquisition
for continued growth.
The acquisition of The Bank of Maine advanced our strategic goal
to increase market share by expanding our presence in Central
Maine and entering new markets in the more economically vibrant
southern tier of the state. We also expanded our mortgage
lending capability by leveraging The Bank of Maine’s previous
investments in that business line, which included mortgage
origination capabilities in Massachusetts as well as in all fifty states
and a robust secondary sales program. Today we are the second-
largest originator of mortgages in Maine, offering a wide array of
mortgage products through 30 mortgage loan originators and 64
banking centers.
Our business and commercial services now include a strong
Portland-based team of commercial lenders serving Southern
Maine. This leverages our investment in our business cash
management product line—now called Treasury Management
Services which provides sophisticated corporate treasury
management services to businesses, government and non-profit
organizations through a locally based and highly specialized
group.
Retail and consumer services also benefited from the acquisition
with the addition of 24 banking centers and now with 85 ATMs
throughout Maine, offering even more convenience to our
customers. Additionally, we have enhanced our consumer deposit
products by introducing Promise Rewards checking accounts that
directly benefit customers as their banking relationships grow
with us.
Our growth into Southern Maine also allows us to leverage both of
our wealth management and brokerage services through Acadia
Trust and Camden Financial Consultants, and is complemented by
our expanded commercial and retail franchise which will deepen
relationships with new and prospective customers. We are excited
about the potential to grow these organizations and anticipate
higher levels of investment in the future.
3
New brand.
Same lasting values.
Our expansion and growth in 2015 prompted a rebranding of Camden National
Corporation and Camden National Bank to reflect our new position as the
preeminent financial institution in Northern New England. Our updated brand mark
acknowledges our past through the use of the anchor, a symbol of the company
since the early 1900s, and the more stylized, modern look and distinctive arch
speaks to our solid footing in modern banking as well as our optimism for the future.
4
A focus
on technology.
Our ability to adopt new technologies as well as products
and services, and leverage those resources to meet customer,
regulatory and operational demands, is critical to our success.
Scale matters more than ever, so it’s also important to have
the capital, financial and human resources to meet these ever
increasing demands.
Some of our technology investments
in 2015 included:
Creating a “unified user experience” for our mobile and
online banking platforms
Initiating a multi-year project to implement a Customer
Relationship Management system to better serve customers
as well as enhance our sales process
Implementing EMV chip-based debit cards to protect our
customers from debit card-based fraud – we are one of the
first banks in Maine to do so
Expanding the use of our residential mortgage based system
to meet the new regulatory requirements of the TILA-RESPA
Integrated Disclosure rule, which is designed to make it easier
for our customers to understand key features of their
mortgage loan
Expanding and strengthening our information security
capabilities to protect both the company and our customers
from cyber-based fraud and intrusion
5
Financial Highlights.
Camden National Corporation is a $3.7 billion diversified bank holding company, headquartered in Camden, Maine,
that employs more than 650 employees at Camden National Bank and the wealth management company, Acadia
Trust, N.A. Camden National Bank is a full-service community bank with a network of 64 banking centers and
85 ATMs throughout Maine, as well as lending offices in Massachusetts and New Hampshire. The bank has been in
business since 1875 and has a well-established reputation for financial stability, growth and community impact.
2014
2013
2015
2014
Year-over-Year Change
(Dollars in thousands, except per share data)
Earnings and Dividends
Total revenues
Total operating expenses
Net income
Core operating earnings(2)
Dividends declared on common shares
Per Share Data
Diluted earnings per share
Core operating earnings per share(2)
Cash dividends per share
Book value at end of period
Tangible book value at end of period(3)
Closing stock price
(1)
2015
$ 113,934
$ 81,139
$ 20,952
$ 28,186
$ 10,602
$ 2.60
$ 3.49
$ 1.20
$ 35.54
$ 25.33
$ 44.09
$ 100,627 $ 103,276
$ 62,397 $ 66,333
$ 24,570 $ 22,783
$ 24,277 $ 20,734
$ 8,251 $ 8,274
$ 3.28 $ 2.97
$ 3.24 $ 2.70
$ 1.11 $ 1.08
$ 33.01 $ 30.49
$ 26.52 $ 23.98
$ 39.84 $ 41.84
At Year End
Total assets
$ 3,709,871
$ 2,789,853 $2,603,829
Total investment securities
$ 855,995
$ 803,633 $ 828,201
Total loans and loans held for sale
$ 2,501,164
$ 1,772,610 $ 1,580,402
Total deposits
$ 2,726,379
$ 1,932,097 $ 1,813,824
Total sharesholders' equity
$ 363,190
$ 245,109 $ 231,096
13%
30%
(15)%
16%
28%
(21)%
8%
8%
8%
(4)%
11%
33%
7%
41%
41%
48%
(3)%
(6)%
8%
17%
0%
11%
20%
3%
8%
11%
(5)%
7%
(3)%
12%
7%
6%
Financial Ratios
Return on average assets
Core return on average assets(2)
Return on average equity
Core return on average tangible equity(2)
Net interest margin
Efficiency ratio(4)
0.70%
0.94%
7.54%
13.20%
3.19%
61.13%
Total risk-based capital ratio
•
1
12.98%
Non-performing assets to total assets
0.66%
0.92%
0.90%
10.37%
13.30%
3.11%
61.58%
15.16%
0.82%
0.88%
0.80%
9.74%
12.84%
3.20%
62.78%
16.45%
1.18%
(1) Includes SBM Financial, Inc.’s acquired assets
and liabilities.
(2) Excludes non-core revenues and operating expenses.
(3) Excludes balance sheet impact of intangible assets
generated through acquisitions on shareholders’
equity and/or total assets.
(4) Operating expenses (less acquisition-related costs
and other one-time costs) as a percentage of fully
tax-equivalent net interest income plus fee
revenue (excluding gains or losses on investment
securities and other one-time gains).
For a complete set of Consolidated Financial Statements,
refer to the Company’s 2015 Annual Report on Form 10-K.
6
Looking forward.
Financially strong.
Typically, when an organization goes through such a strategic
transformation, the day-to-day business becomes a secondary
priority. We’re proud of everyone who took on the challenge
to equally prioritize daily operations and acquisition-related
activities.
We reached new heights with total assets of $3.7 billion as of
December 31, 2015 and record core operating earnings of $28.2
million, when excluding costs related to the acquisition. Our
core earnings per diluted share for 2015 increased 8% to $3.49
$3.7
$2.8
$2.6
per common share, while core return on average tangible equity
Total Assets ($ Billions)
$28.2 $24.3 $20.7
declined 10 basis points to 13.20% reflecting our expanded
capital base.
We experienced strong loan growth in our markets with organic
loan growth of 6%, or $102.4 million, in 2015. When organic growth
is combined with the $615.2 million acquired portfolio from The
Bank of Maine, our total loans outstanding totaled $2.5 billion as of
December 31, 2015. Supporting our loans is a strong deposit base
that was $2.7 billion as of December 31, 2015, reflecting organic
deposit growth of 6%, or $107.3 million, and acquired additional
deposits of $687.0 million.
Through these changes, our asset quality and capital levels also
remained strong. Net charge-offs to average loans were 0.10% in
Core Operating Earnings ($ Millions)
2015 compared to 0.16% in 2014, and our non-performing assets to
$3.49 $3.24 $2.70
Core EPS
total assets declined 16 basis points to 0.66% as of December 31,
2015. We remain a “well capitalized” organization, as defined by
our regulators on December 31, 2015, with total risk-based capital
of 12.98%.
During 2015, we paid $1.20 of dividends per common share.
We remain focused on the tangible book value of our common
shares, which declined 4% to $25.33 as of December 31, 2015 as a
result of the issuance of 2.7 million shares in connection with the
SBM Financial acquisition. As reported when we announced the
acquisition, we expect to recapture that dilution within five years.
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201520142013201520142013201520142013 New faces on the Board.
Two directors of SBM Financial joined our
board during the year. With over 40 years of
banking experience, David Ott deepens the
Board’s understanding of the banking industry
and Maine. He previously served as Senior
Executive Vice President and Chief Banking
Officer at TD Bank and held other executive-
level positions at Bank North and Fleet Bank
of Maine. Carl Soderberg provides additional
banking experience gained through his service
at both SBM Financial and First Citizens Bank,
a predecessor to SBM. He is an accomplished
businessman with interests throughout Maine,
as well as an active community member and
supporter.
Our focus in 2016 is to align our organizational
resources for growth by leveraging our
considerable strengths. At the same time,
we will look for opportunities that match our
strategic and operational objectives.
As always, your support is greatly appreciated.
Sincerely,
Karen W. Stanley
Chair, Board of Directors
Gregory A. Dufour
President and CEO
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Camden National Corporation Board of Directors:
Pictured from left to right: Craig S. Gunderson, John M. Rohman, John W.
Holmes, Ann W. Bresnahan, James H. Page, Ph.D., S. Catherine Longley,
Gregory A. Dufour, Karen W. Stanley (Chair), David C. Flanagan, Robin A.
Sawyer, CPA, Carl J. Soderberg, Lawrence J. Sterrs, and David J. Ott.
Camden National Bank Board of Directors:
Pictured from left to right (back row): Carl J. Soderberg, John M. Rohman,
John W. Holmes, Ann W. Bresnahan, James L. Markos, Jr., Esq., Gregory A.
Dufour, Robert D. Merrill, David J. Ott, and David C. Flanagan; (front row,
seated): William P. Dubord, Karen W. Stanley (Chair), and
Rosemary B. Weymouth
Executive Management:
Pictured left to right (back row): Joanne T. Campbell, Edmund M. Hayden
III, Gregory A. Dufour, Deborah A. Jordan, CPA, and Timothy P. Nightin-
gale; (front row): June B. Parent, Renée D. Smyth, and Carolyn C. Crosby
Corporate Information
Common Stock
Camden National Corporation’s common stock is listed on
the NASDAQ Global Select Market and is traded under the
symbol CAC.
Annual Meeting
Camden National’s 2016 Annual Meeting of the Shareholders
will be held Tuesday, April 26th at 3:00 pm at the Point
Lookout Conference Center, Hedges Hall, Lincolnville, Maine.
Shareholder Services
Camden National’s shareholder services are provided
by American Stock Transfer & Trust Company, LLC (AST).
Shareholders may contact AST through one of the
following methods:
ONLINE
Registered shareholders can view their account inform-
ation through AST’s website, www.amstock.com, by clicking
on Shareholders/Account Access. This website provides
instructions on how to gain access to shareholder account
information, perform certain transactions, request forms or
participate in the Investors Choice Dividend Reinvestment
& Direct Stock Purchase and Sale Plan. Shareholders may
also e-mail our transfer agent at info@amstock.com.
TELEPHONE
Shareholders may call AST’s toll-free number
(800) 937-5449 for assistance.
WRITTEN CORRESPONDENCE
Shareholders should mail written account inquiries or other
requests for assistance regarding stock ownership to:
Camden National Corporation
c/o American Stock Transfer & Trust Co., LLC
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
Dividend Reinvestment and Stock Purchase and Sale
Camden National is pleased to offer the Investors Choice
Dividend Reinvestment & Direct Stock Purchase and Sale Plan
(Plan), a voluntary plan administered by AST. Under the Plan,
shareholders may reinvest dividends, purchase additional
shares, sell all or part of shares owned or deposit their Camden
National stock certificates for safekeeping or sale.
For more information, call (800) 937-5449 or visit AST’s
website at www.amstock.com.
Financial Publications Available at No Charge
Additional copies of Camden National’s Annual Report on
Form 10-K, quarterly reports and other corporate publications
are available, without charge, at www.CamdenNational.com
or upon request by emailing IR@CamdenNational.com, calling
(800) 860-8821 or by writing to: Camden National Corporation,
P.O. Box 310, Camden, ME 04843
Media Inquiries
Media representatives seeking general information
should contact:
Renée Smyth
Chief Marketing Officer
(207) 518-5607
rsmyth@CamdenNational.com
Analyst Coverage
The following analysts published research about
Camden National in 2015:
Keefe, Bruyette & Woods, Inc.
Piper Jaffray
In every community an
opportunity to help.
Hope@Home is our statewide program to help
Maine’s homeless and raise awareness around this
issue by donating $100 to a community shelter in
Maine every time a customer finances a new home
through Camden National Bank. In 2015, Camden
National Bank donated over $44,000 to homeless
shelters in Maine, and we hope to give even more
in the years to come.
FAME Bank of the Year
Camden National Bank was once again recognized
for its commitment to helping businesses secure
the financing they need to grow and flourish. We
were recognized by the Finance Authority of Maine
(FAME) as its Financial Institution of the Year,
marking the sixth year out of the last seven that the
bank has received this distinction.
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2 Elm Street | PO Box 310 | Camden, ME 04843 | CamdenNational.com