8-K
BAR HARBOR BANKSHARES (BHB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 28, 2020
BAR HARBOR BANKSHARES
(Exact Name of Registrant as Specified in its Charter)
| Maine | 001-13349 | 01-0393663 | |||
|---|---|---|---|---|---|
| (State or Other Jurisdiction)<br><br>of Incorporation) | (Commission File No.) | (I.R.S. Employer<br><br>Identification No.) | PO Box 400 | 04609-0400 | |
| --- | --- | ||||
| 82 Main Street | (Zip Code) | ||||
| Bar Harbor, Maine | |||||
| (Address of Principal Executive Offices) |
Registrant’s telephone number, including area code: (207) 288-3314
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Securities registered pursuant to Section 12(b) of the Act | Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|---|
| Common Stock, par value $2.00 per share | BHB | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On January 28, 2020, Bar Harbor Bankshares issued a press release reporting its financial results for the quarter ended December 31, 2019. The full text of this press release is furnished as Exhibit 99.1 and incorporated herein by reference.
The information contained herein, including the exhibit furnished herewith, is intended to be furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated January 28, 2020 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| Bar Harbor Bankshares | ||
|---|---|---|
| January 28, 2020 | By: | /s/ Curtis C. Simard |
| Curtis C. Simard | ||
| President and CEO |
Exhibit
Bar Harbor Bankshares Reports Record Fourth Quarter Revenues
BAR HARBOR, MAINE - January 28, 2020 -- Bar Harbor Bankshares (NYSE American: BHB) reported fourth quarter 2019 net income of $4.2 million, or $0.27 per share, compared to $5.0 million, or $0.32 per share, in the prior quarter and $7.6 million or $0.49 per share in the fourth quarter of 2018. The non-GAAP measure of core earnings in the fourth quarter 2019 increased 20% to $8.8 million, or $0.56 per share, from $7.3 million, or $0.47 per share in the prior quarter and decreased from $9.2 million, or $0.59 per share in the fourth quarter of 2018. On October 25, 2019, the Company completed the previously announced acquisition of eight branches within Central Maine and closed five branches effective December 31, 2019, as part of its strategic review. During the quarter the Company recorded non-core charges totaling $0.29 per share after-tax, primarily related to the one-time costs associated with the acquisition and balance sheet optimization initiatives that were part of the strategic review.
FOURTH QUARTER FINANCIAL HIGHLIGHTS (compared to prior quarter, unless otherwise noted):
| • | 98% loan to deposit ratio, improved from 103% |
|---|---|
| • | 6% increase in total revenue to $31.9 million |
| --- | --- |
| • | 20 basis point expansion in net interest margin to 2.95% |
| --- | --- |
| • | 0.44% non-performing loans to total loans, down from 0.65% |
| --- | --- |
| • | Called higher cost subordinated debt and replaced with upsized issuance |
| --- | --- |
President and Chief Executive Officer, Curtis C. Simard stated, “We finished the year with what I can only classify as judicious and efficient execution on all fronts. This includes repositioning the Company’s balance sheet, expanding our footprint within Central Maine and affirming our profitability strategies. Our strong performance and the recalibration of the balance sheet increased core return on assets to 0.96% for the quarter. In the fourth quarter, we achieved record revenues from higher interest and fee income, as well as lower cost of funds resulting from the expansion of our franchise.”
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Mr. Simard continued, “We completed several initiatives in the fourth quarter that reduced our cost of funds while improving interest rate risk and overall capital positions. Following the completion of the Central Maine branch acquisition, the Company used the net deposit proceeds to extinguish approximately $140 million of higher cost FHLB borrowings. Shortly thereafter, given the change in our balance sheet profile and funding needs, we terminated $90 million in interest rate caps related to rolling three-month FHLB borrowings. The losses from the caps were reclassified from other comprehensive income to earnings, with no further dilution to equity. We also completed a $40 million subordinated debt issuance which replaced $22 million of higher cost subordinated notes called earlier in the quarter. The offering was more than two times oversubscribed, driven by one of the most effective executions for 2019, and presented an opportunity to upsize the deal. It’s this level of interest in our Company and belief in our long-term strategy that will allow us to continue building franchise value for our shareholders.”
Mr. Simard went on to say, “Our loan origination teams continue to adhere to our disciplined underwriting practices and selectively pursue those opportunities that are accretive to our profitability metrics. This resulted in originations that kept relative pace with loan payoffs as we remixed the balance sheet and curtailed growth in lower yielding assets. In addition we exited certain non-performing loans further improving our non-performing loans to total loans to 0.44%. Implementation of all of these strategies, along with additional investment remixes that started in the third quarter resulted in net interest margin expanding 20 basis points in the fourth quarter, despite the current rate environment.”
Mr. Simard concluded, “Our efforts these past few quarters have positioned us well for 2020 and will move us towards our stated goals of higher quality earnings and capital growth with continued focus on our customers and relationships which are driving current momentum.”
FINANCIAL CONDITION
Total assets increased in the fourth quarter 2019 by $56.7 million to $3.7 billion primarily due to loans, goodwill and other intangible assets recorded from the branch acquisition. Securities available for sale declined $12.4 million as the Company both de-levered and remixed the investment portfolio as part of the strategic review. Loans in the fourth quarter grew by $63.8 million as acquired balances of $100.8 million were recorded and principally offset by run-off in jumbo residential loans of $14.2 million and two commercial relationships of $17.2 million that paid-off during the quarter. Mortgage growth on-balance sheet was curtailed as the secondary market platform was leveraged for fee income given the current rate environment. Non-maturity deposits increased by $172.2 million in the quarter including acquired balances, net of any year-end seasonal dips in demand deposit balances. Cash proceeds received from the acquisition were used to
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pay off approximately $140.0 million of higher cost FHLB borrowings during the quarter. Longer term subordinated borrowings increased by $17.0 million as existing notes at higher rates were called and opportunistically replaced with an upsized $40.0 million private placement issued in November 2019. The loan to deposit ratio improved to 98% in the fourth quarter 2019 compared to 103% in the prior quarter as a result of the branch acquisition.
Non-accruing loans in the fourth quarter 2019 decreased $5.1 million primarily due to one commercial real estate relationship that was settled with a $530 thousand recovery. The settlement also contributed to the improvement of the non-performing loans to total loans ratio to 0.44% from 0.65% in the prior quarter. The increase in 30-day past due accounts for the quarter is attributable to the payment schedules and calendar dates.
The Company’s book value per share was $25.48 at year-end 2019 compared with $25.37 at the end of the third quarter 2019 and $23.87 at year-end 2018. Tangible book value per share was $17.30 compared to $18.49 at the end of the third quarter and $16.94 at year-end 2018, with the decrease during the quarter reflecting the goodwill and intangibles recorded from the branch acquisition. Excluding the impact from the acquisition, tangible book value per share increased to $18.62; an increase of 10% annualized from the third quarter 2019 and for the year.
RESULTS OF OPERATIONS
Net income in the fourth quarter 2019 was $4.2 million, or $0.27 per share, compared to $5.0 million, or $0.32 per share, in the prior quarter and $7.6 million, or $0.49 per share in the fourth quarter 2018. The non-GAAP measure of core earnings in the fourth quarter 2019 was $8.8 million or $0.56 per share, up 20% from $7.3 million or $0.47 per share in the previous quarter and down from $9.2 million or $0.59 per share in the fourth quarter 2018. Results in the fourth quarter included operations from the branch acquisition as of the October 25, 2019 effective date. Total revenue comprising of net interest income and total non-interest income increased to $31.9 million in the fourth quarter 2019 as compared to $30.1 million in the previous quarter and $29.7 million in the fourth quarter of 2018. Net interest income grew $1.7 million during the quarter primarily as a result of leveraging the low cost of deposits acquired to repay higher cost of funds. Net interest margin in the fourth quarter 2019 expanded 20 basis points due to the strategic initiatives previously discussed. Execution of these strategies improved cost of borrowings by 32 basis points on a quarter-over-quarter basis.
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Non-interest income was $7.8 million compared to $7.6 million for the third quarter 2019 and $7.4 million in the fourth quarter of 2018. The increase in the quarter was driven by trust and investment management fee income and customer services fees associated from the branch acquisition.
Non-interest expense increased to $26.8 million in the fourth quarter 2019 from $23.4 million in the prior quarter and $20.1 million in the fourth quarter of 2018. The increase in the quarter is primarily a result of a $700 thousand increase in occupancy costs related to the acquired properties and other costs associated with the acquisition and strategic review. The $3.2 million loss associated with the termination of the interest rate caps was reclassified from shareholders’ equity and included in acquisition, conversion and other expenses. The prior quarter included $2.2 million of branch optimization costs.
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BACKGROUND
Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 130 years. Bar Harbor provides full-service community banking with office locations in all three Northern New England states of Maine, New Hampshire and Vermont. For more information, visit www.barharbor.bank.
FORWARD LOOKING STATEMENTS
Certain statements under the heading "FOURTH QUARTER FINANCIAL HIGHLIGHTS" contained in this document that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this earnings release the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions are intended to identify forward-looking statements, but these terms are not the exclusive means of identifying forward-looking statements. These forward-looking statements are subject to significant risks, assumptions and uncertainties, including among other things, changes in general economic and business conditions, increased competitive pressures, changes in the interest rate environment, legislative and regulatory change, changes in the financial markets, and other risks and uncertainties disclosed from time to time in documents that the Company files with the Securities and Exchange Commission, including but not limited to those discussed in the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Because of these and other uncertainties, the Company’s actual results, performance or achievements, or industry results, may be materially different from the results indicated by these forward-looking statements. In addition, the Company’s past results of operations do not necessarily indicate future results. You should not place undue reliance on any of the forward-looking statements, which speak only as of the dates on which they were made. The Company is not undertaking an obligation to update forward-looking statements, even though its situation may change in the future, except as required under federal securities law. The Company qualifies all of its forward-looking statements by these cautionary statements.
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NON-GAAP FINANCIAL MEASURES
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP core earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information.
The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.
The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.
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CONTACTS
Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314
| TABLE<br><br>INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) | |
|---|---|---|
| A | Selected Financial Highlights | |
| B | Footnotes to Selected Financial Highlights | |
| C | Balance Sheets | |
| D | Loan and Deposit Analysis | |
| E | Statements of Income | |
| F | Statements of Income (Five Quarter Trend) | |
| G | Average Yields and Costs | |
| H | Average Balances | |
| I | Asset Quality Analysis | |
| J | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data | |
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| BAR HARBOR BANKSHARES | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED | |||||||||||||||
| At or for the Quarters Ended | |||||||||||||||
| Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | |||||||||||
| PER SHARE DATA | |||||||||||||||
| Net earnings, diluted | $ | 0.27 | $ | 0.32 | $ | 0.39 | $ | 0.47 | $ | 0.49 | |||||
| Core earnings, diluted ^(1) (2)^ | 0.56 | 0.47 | 0.41 | 0.47 | 0.59 | ||||||||||
| Total book value | 25.48 | 25.37 | 25.13 | 24.54 | 23.87 | ||||||||||
| Tangible book value ^(2)^ | 17.30 | 18.49 | 18.23 | 17.63 | 16.94 | ||||||||||
| Market price at period end | 25.39 | 24.93 | 26.59 | 25.87 | 22.43 | ||||||||||
| Dividends | 0.22 | 0.22 | 0.22 | 0.20 | 0.20 | ||||||||||
| PERFORMANCE RATIOS ^(3)^ | |||||||||||||||
| Return on assets | 0.46 | % | 0.55 | % | 0.67 | % | 0.83 | % | 0.85 | % | |||||
| Core return on assets ^(1) (2)^ | 0.96 | 0.80 | 0.70 | 0.83 | 1.03 | ||||||||||
| Return on equity | 4.21 | 5.04 | 6.33 | 7.83 | 8.31 | ||||||||||
| Core return on equity ^(1) (2)^ | 8.81 | 7.36 | 6.57 | 7.83 | 10.01 | ||||||||||
| Core return on tangible equity ^(1) (2)^ | 12.66 | 10.31 | 9.30 | 11.19 | 14.46 | ||||||||||
| Net interest margin, fully taxable equivalent (FTE) ^(2) (4)^ | 2.95 | 2.75 | 2.65 | 2.77 | 2.78 | ||||||||||
| Net interest margin (FTE), excluding purchased loan accretion ^(2) (4)^ | 2.88 | 2.65 | 2.56 | 2.67 | 2.70 | ||||||||||
| Efficiency ratio ^(2)^ | 62.56 | 65.02 | 68.48 | 63.94 | 59.91 | ||||||||||
| ORGANIC GROWTH (Year-to-date, annualized) ^(2) (6)^ | |||||||||||||||
| Total commercial loans | 6.0 | % | 10.5 | % | 10.1 | % | (3.3 | %) | 1.4 | % | |||||
| Total loans | 2.0 | 4.7 | 7.1 | 5.9 | 0.2 | ||||||||||
| Total deposits | (1.8 | ) | 0.6 | (0.1 | ) | (2.8 | ) | 5.6 | |||||||
| FINANCIAL DATA (In millions) | |||||||||||||||
| Total assets | $ | 3,669 | $ | 3,612 | $ | 3,688 | $ | 3,629 | $ | 3,608 | |||||
| Total earning assets ^(5)^ | 3,336 | 3,270 | 3,355 | 3,312 | 3,263 | ||||||||||
| Total investments | 684 | 703 | 784 | 782 | 761 | ||||||||||
| Total loans | 2,641 | 2,577 | 2,578 | 2,527 | 2,490 | ||||||||||
| Allowance for loan losses | 15 | 15 | 15 | 14 | 14 | ||||||||||
| Total goodwill and intangible assets | 127 | 107 | 107 | 107 | 108 | ||||||||||
| Total deposits | 2,696 | 2,494 | 2,481 | 2,466 | 2,483 | ||||||||||
| Total shareholders' equity | 396 | 394 | 391 | 381 | 371 | ||||||||||
| Net income | 4 | 5 | 6 | 7 | 8 | ||||||||||
| Core earnings ^(1) (2)^ | 9 | 7 | 6 | 7 | 9 | ||||||||||
| ASSET QUALITY AND CONDITION RATIOS | |||||||||||||||
| Net charge-offs (current quarter annualized)/average loans | 0.08 | % | 0.02 | % | — | % | 0.03 | % | 0.03 | % | |||||
| Allowance for loan losses/total loans | 0.58 | 0.60 | 0.57 | 0.55 | 0.56 | ||||||||||
| Loans/deposits | 98 | 103 | 104 | 102 | 100 | ||||||||||
| Shareholders' equity to total assets | 10.80 | 10.92 | 10.59 | 10.50 | 10.27 | ||||||||||
| Tangible shareholders' equity to tangible assets | 7.60 | 8.20 | 7.92 | 7.77 | 7.51 |
A
____________________________________
(1) Core measurements are non-GAAP financial measures that are adjusted to exclude net non-operating charges primarily related
to acquisitions, restructurings, system conversions, loss on debt extinguishment and gain or loss on sale of securities and premises and equipment. Refer to the Reconciliation of Non-GAAP Financial Measures in table J for additional information.
(2) Non-GAAP financial measure.
(3) All performance ratios are based on average balance sheet amounts, where applicable.
(4) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.
(5) Earning assets includes non-accruing loans and securities are valued at amortized cost.
(6) Assets acquired from eight branches purchased from People's United Bank, National Association as of October 25, 2019, were
excluded from calculation.
B
| BAR HARBOR BANKSHARES | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS - UNAUDITED | |||||||||||||||
| (in thousands) | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||||
| Assets | |||||||||||||||
| Cash and due from banks | $ | 37,261 | $ | 50,032 | $ | 42,657 | $ | 37,504 | $ | 35,208 | |||||
| Interest-bearing deposits with the Federal Reserve Bank | 19,649 | 21,561 | 17,203 | 16,599 | 63,546 | ||||||||||
| Total cash and cash equivalents | 56,910 | 71,593 | 59,860 | 54,103 | 98,754 | ||||||||||
| Securities available for sale, at fair value | 663,230 | 675,675 | 748,560 | 747,235 | 725,837 | ||||||||||
| Federal Home Loan Bank stock | 20,679 | 27,469 | 35,220 | 35,107 | 35,659 | ||||||||||
| Total securities | 683,909 | 703,144 | 783,780 | 782,342 | 761,496 | ||||||||||
| Commercial real estate | 930,661 | 923,773 | 881,479 | 821,567 | 826,699 | ||||||||||
| Commercial and industrial | 423,291 | 402,706 | 416,725 | 409,937 | 404,870 | ||||||||||
| Residential real estate | 1,151,857 | 1,143,452 | 1,167,759 | 1,184,053 | 1,144,698 | ||||||||||
| Consumer | 135,283 | 107,375 | 112,275 | 111,402 | 113,960 | ||||||||||
| Total loans | 2,641,092 | 2,577,306 | 2,578,238 | 2,526,959 | 2,490,227 | ||||||||||
| Less: Allowance for loan losses | (15,353 | ) | (15,353 | ) | (14,572 | ) | (13,997 | ) | (13,866 | ) | |||||
| Net loans | 2,625,739 | 2,561,953 | 2,563,666 | 2,512,962 | 2,476,361 | ||||||||||
| Premises and equipment, net | 51,205 | 47,644 | 50,230 | 49,661 | 48,804 | ||||||||||
| Other real estate owned | 2,236 | 2,455 | 2,351 | 2,351 | 2,351 | ||||||||||
| Goodwill | 118,649 | 100,085 | 100,085 | 100,085 | 100,085 | ||||||||||
| Other intangible assets | 8,641 | 6,879 | 7,072 | 7,266 | 7,459 | ||||||||||
| Cash surrender value of bank-owned life insurance | 75,863 | 75,368 | 74,871 | 74,352 | 73,810 | ||||||||||
| Deferred tax asset, net | 3,865 | 4,988 | 5,649 | 7,632 | 9,514 | ||||||||||
| Other assets | 42,111 | 38,365 | 40,071 | 38,441 | 29,853 | ||||||||||
| Total assets | $ | 3,669,128 | $ | 3,612,474 | $ | 3,687,635 | $ | 3,629,195 | $ | 3,608,487 | |||||
| Liabilities and shareholders' equity | |||||||||||||||
| Demand and other non-interest bearing deposits | $ | 414,534 | $ | 380,707 | $ | 354,125 | $ | 342,030 | $ | 370,889 | |||||
| NOW deposits | 575,809 | 490,315 | 472,576 | 470,277 | 484,717 | ||||||||||
| Savings deposits | 388,683 | 360,570 | 352,657 | 346,813 | 358,888 | ||||||||||
| Money market deposits | 384,090 | 359,328 | 305,506 | 349,833 | 335,951 | ||||||||||
| Time deposits | 932,635 | 902,665 | 996,512 | 956,818 | 932,793 | ||||||||||
| Total deposits | 2,695,751 | 2,493,585 | 2,481,376 | 2,465,771 | 2,483,238 | ||||||||||
| Senior borrowings | 471,396 | 641,819 | 733,084 | 703,283 | 680,823 | ||||||||||
| Subordinated borrowings | 59,920 | 42,928 | 42,943 | 42,958 | 42,973 | ||||||||||
| Total borrowings | 531,316 | 684,747 | 776,027 | 746,241 | 723,796 | ||||||||||
| Other liabilities | 45,654 | 39,683 | 39,670 | 36,160 | 30,874 | ||||||||||
| Total liabilities | 3,272,721 | 3,218,015 | 3,297,073 | 3,248,172 | 3,237,908 | ||||||||||
| Total common shareholders' equity | 396,407 | 394,459 | 390,562 | 381,023 | 370,579 | ||||||||||
| Total liabilities and shareholders' equity | $ | 3,669,128 | $ | 3,612,474 | $ | 3,687,635 | $ | 3,629,195 | $ | 3,608,487 | |||||
| Net shares outstanding | 15,558 | 15,549 | 15,544 | 15,524 | 15,523 |
C
| BAR HARBOR BANKSHARES | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED | ||||||||||||||||
| LOAN ANALYSIS | ||||||||||||||||
| Organic Annualized Growth % | ||||||||||||||||
| (in thousands) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | Acquired^(1)^ | Quarter End | Year to Date | ||||||||
| Commercial real estate | $ | 930,661 | $ | 923,773 | $ | 881,479 | $ | 821,567 | $ | 826,699 | $ | 25,054 | (7.9 | )% | 9.5 | % |
| Commercial and industrial | 318,988 | 301,590 | 312,029 | 305,185 | 309,544 | 19,739 | (3.1 | ) | (3.3 | ) | ||||||
| Total commercial loans | 1,249,649 | 1,225,363 | 1,193,508 | 1,126,752 | 1,136,243 | 44,793 | (6.7 | ) | 6.0 | |||||||
| Residential real estate | 1,151,857 | 1,143,452 | 1,167,759 | 1,184,053 | 1,144,698 | 23,716 | (5.4 | ) | (1.4 | ) | ||||||
| Consumer | 135,283 | 107,375 | 112,275 | 111,402 | 113,960 | 29,530 | (6.0 | ) | (7.2 | ) | ||||||
| Tax exempt and other | 104,303 | 101,116 | 104,696 | 104,752 | 95,326 | 2,753 | 1.7 | 6.5 | ||||||||
| Total loans | $ | 2,641,092 | $ | 2,577,306 | $ | 2,578,238 | $ | 2,526,959 | $ | 2,490,227 | $ | 100,792 | (5.7 | )% | 2.0 | % |
(1) Acquired loans from eight branches purchased from People's United Bank, National Association as of October 25, 2019.
| DEPOSIT ANALYSIS | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Organic Annualized Growth % | ||||||||||||||||
| (in thousands) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | Acquired^(1)^ | Quarter End | Year to Date | ||||||||
| Demand | $ | 414,534 | $ | 380,707 | $ | 354,125 | $ | 342,030 | $ | 370,889 | $ | 51,933 | (19.0 | )% | (2.2 | )% |
| NOW | 575,809 | 490,315 | 472,576 | 470,277 | 484,717 | 85,980 | (0.4 | ) | 1.1 | |||||||
| Savings | 388,683 | 360,570 | 352,657 | 346,813 | 358,888 | 25,841 | 2.5 | 1.1 | ||||||||
| Money market | 384,090 | 359,328 | 305,506 | 349,833 | 335,951 | 26,399 | (1.8 | ) | 6.5 | |||||||
| Total non-maturity deposits | 1,763,116 | 1,590,920 | 1,484,864 | 1,508,953 | 1,550,445 | 190,153 | (4.5 | ) | 1.5 | |||||||
| Total time deposits | 932,635 | 902,665 | 996,512 | 956,818 | 932,793 | 68,240 | (17.0 | ) | (7.3 | ) | ||||||
| Total deposits | $ | 2,695,751 | $ | 2,493,585 | $ | 2,481,376 | $ | 2,465,771 | $ | 2,483,238 | $ | 258,393 | (9.0 | )% | (1.8 | )% |
(1) Acquired deposits from eight branches purchased from People's United Bank, National Association as of October 25, 2019.
D
| BAR HARBOR BANKSHARES | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | |||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| (in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | |||||||
| Interest and dividend income | |||||||||||
| Loans | $ | 28,361 | $ | 26,743 | $ | 111,042 | $ | 104,015 | |||
| Securities and other | 5,756 | 6,029 | 24,349 | 23,436 | |||||||
| Total interest and dividend income | 34,117 | 32,772 | 135,391 | 127,451 | |||||||
| Interest expense | |||||||||||
| Deposits | 6,698 | 5,653 | 27,034 | 19,521 | |||||||
| Borrowings | 3,315 | 4,855 | 18,547 | 17,047 | |||||||
| Total interest expense | 10,013 | 10,508 | 45,581 | 36,568 | |||||||
| Net interest income | 24,104 | 22,264 | 89,810 | 90,883 | |||||||
| Provision for loan losses | 538 | 572 | 2,317 | 2,780 | |||||||
| Net interest income after provision for loan losses | 23,566 | 21,692 | 87,493 | 88,103 | |||||||
| Non-interest income | |||||||||||
| Trust and investment management fee income | 3,227 | 2,949 | 12,063 | 11,985 | |||||||
| Customer service fees | 2,791 | 2,477 | 10,127 | 9,538 | |||||||
| Gain (loss) on sales of securities, net | 80 | (924 | ) | 237 | (924 | ) | |||||
| Bank-owned life insurance income | 495 | 493 | 2,053 | 1,821 | |||||||
| Customer derivative income | 475 | 315 | 2,028 | 860 | |||||||
| Other income | 738 | 2,140 | 2,561 | 4,655 | |||||||
| Total non-interest income | 7,806 | 7,450 | 29,069 | 27,935 | |||||||
| Non-interest expense | |||||||||||
| Salaries and employee benefits | 11,432 | 9,269 | 45,000 | 40,964 | |||||||
| Occupancy and equipment | 4,113 | 3,022 | 14,214 | 12,386 | |||||||
| (Loss) gain on sales of premises and equipment, net | (3 | ) | — | 18 | — | ||||||
| Outside services | 540 | 811 | 1,818 | 2,408 | |||||||
| Professional services | 370 | 458 | 2,191 | 1,474 | |||||||
| Communication | 114 | 103 | 821 | 804 | |||||||
| Marketing | 453 | 536 | 1,872 | 1,743 | |||||||
| Amortization of intangible assets | 240 | 207 | 861 | 828 | |||||||
| Loss on debt extinguishment | 1,096 | — | 1,096 | — | |||||||
| Acquisition, conversion and other expenses | 4,998 | 1,109 | 8,317 | 1,728 | |||||||
| Other expenses | 3,450 | 4,581 | 13,525 | 13,204 | |||||||
| Total non-interest expense | 26,803 | 20,096 | 89,733 | 75,539 | |||||||
| Income before income taxes | 4,569 | 9,046 | 26,829 | 40,499 | |||||||
| Income tax expense | 362 | 1,426 | 4,209 | 7,562 | |||||||
| Net income | $ | 4,207 | $ | 7,620 | $ | 22,620 | $ | 32,937 | |||
| Earnings per share: | |||||||||||
| Basic | $ | 0.27 | $ | 0.49 | $ | 1.46 | $ | 2.13 | |||
| Diluted | 0.27 | 0.49 | 1.45 | 2.12 | |||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 15,554 | 15,516 | 15,541 | 15,488 | |||||||
| Diluted | 15,602 | 15,574 | 15,587 | 15,564 |
E
| BAR HARBOR BANKSHARES | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED | ||||||||||||
| (in thousands, except per share data) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | |||||||
| Interest and dividend income | ||||||||||||
| Loans | $ | 28,361 | $ | 28,157 | $ | 27,660 | $ | 26,864 | $ | 26,743 | ||
| Securities and other | 5,756 | 6,105 | 6,125 | 6,363 | 6,029 | |||||||
| Total interest and dividend income | 34,117 | 34,262 | 33,785 | 33,227 | 32,772 | |||||||
| Interest expense | ||||||||||||
| Deposits | 6,698 | 7,143 | 6,886 | 6,307 | 5,653 | |||||||
| Borrowings | 3,315 | 4,674 | 5,403 | 5,155 | 4,855 | |||||||
| Total interest expense | 10,013 | 11,817 | 12,289 | 11,462 | 10,508 | |||||||
| Net interest income | 24,104 | 22,445 | 21,496 | 21,765 | 22,264 | |||||||
| Provision for loan losses | 538 | 893 | 562 | 324 | 572 | |||||||
| Net interest income after provision for loan losses | 23,566 | 21,552 | 20,934 | 21,441 | 21,692 | |||||||
| Non-interest income | ||||||||||||
| Trust and investment management fee income | 3,227 | 3,013 | 3,066 | 2,757 | 2,949 | |||||||
| Customer service fees | 2,791 | 2,553 | 2,618 | 2,165 | 2,477 | |||||||
| Gain (loss) on sales of securities, net | 80 | 157 | — | — | (924 | ) | ||||||
| Bank-owned life insurance income | 495 | 497 | 519 | 542 | 493 | |||||||
| Customer derivative income | 475 | 828 | 696 | 29 | 315 | |||||||
| Other income | 738 | 595 | 554 | 674 | 2,140 | |||||||
| Total non-interest income | 7,806 | 7,643 | 7,453 | 6,167 | 7,450 | |||||||
| Non-interest expense | ||||||||||||
| Salaries and employee benefits | 11,432 | 11,364 | 11,685 | 10,519 | 9,269 | |||||||
| Occupancy and equipment | 4,113 | 3,415 | 3,300 | 3,386 | 3,022 | |||||||
| (Loss) gain on sales of premises and equipment, net | (3 | ) | — | 21 | — | — | ||||||
| Outside services | 540 | 424 | 443 | 411 | 811 | |||||||
| Professional services | 370 | 707 | 570 | 544 | 458 | |||||||
| Communication | 114 | 189 | 283 | 235 | 103 | |||||||
| Marketing | 453 | 613 | 511 | 295 | 536 | |||||||
| Amortization of intangible assets | 240 | 207 | 207 | 207 | 207 | |||||||
| Loss on debt extinguishment | 1,096 | — | — | — | — | |||||||
| Acquisition, conversion and other expenses | 4,998 | 3,039 | 280 | — | 1,109 | |||||||
| Other expenses | 3,450 | 3,442 | 3,606 | 3,027 | 4,581 | |||||||
| Total non-interest expense | 26,803 | 23,400 | 20,906 | 18,624 | 20,096 | |||||||
| Income before income taxes | 4,569 | 5,795 | 7,481 | 8,984 | 9,046 | |||||||
| Income tax expense | 362 | 780 | 1,364 | 1,703 | 1,426 | |||||||
| Net income | $ | 4,207 | $ | 5,015 | $ | 6,117 | $ | 7,281 | $ | 7,620 | ||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.27 | $ | 0.32 | $ | 0.39 | $ | 0.47 | $ | 0.49 | ||
| Diluted | 0.27 | 0.32 | 0.39 | 0.47 | 0.49 | |||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 15,554 | 15,547 | 15,538 | 15,523 | 15,516 | |||||||
| Diluted | 15,602 | 15,581 | 15,586 | 15,587 | 15,574 |
F
| BAR HARBOR BANKSHARES | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED | ||||||||||
| Quarters Ended | ||||||||||
| Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | ||||||
| Earning assets | ||||||||||
| Commercial real estate | 4.69 | % | 4.74 | % | 4.74 | % | 4.78 | % | 4.71 | % |
| Commercial and industrial | 4.58 | 4.78 | 4.75 | 4.79 | 4.61 | |||||
| Residential | 3.89 | 3.88 | 3.93 | 3.94 | 3.83 | |||||
| Consumer | 4.84 | 5.13 | 5.21 | 5.25 | 5.07 | |||||
| Total loans | 4.33 | 4.38 | 4.39 | 4.42 | 4.31 | |||||
| Securities and other | 3.49 | 3.44 | 3.29 | 3.47 | 3.28 | |||||
| Total earning assets | 4.15 | % | 4.17 | % | 4.13 | % | 4.19 | % | 4.07 | % |
| Funding liabilities | ||||||||||
| NOW | 0.44 | % | 0.51 | % | 0.49 | % | 0.51 | % | 0.50 | % |
| Savings | 0.20 | 0.21 | 0.21 | 0.19 | 0.18 | |||||
| Money market | 1.17 | 1.37 | 1.44 | 1.38 | 0.93 | |||||
| Time deposits | 2.06 | 2.16 | 2.11 | 2.00 | 1.85 | |||||
| Total interest-bearing deposits | 1.19 | 1.33 | 1.32 | 1.25 | 1.12 | |||||
| Borrowings | 2.30 | 2.62 | 2.74 | 2.74 | 2.53 | |||||
| Total interest-bearing liabilities | 1.42 | % | 1.65 | % | 1.71 | % | 1.66 | % | 1.50 | % |
| Net interest spread | 2.74 | 2.52 | 2.42 | 2.53 | 2.57 | |||||
| Net interest margin | 2.95 | 2.75 | 2.65 | 2.77 | 2.78 |
G
| BAR HARBOR BANKSHARES | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AVERAGE BALANCES - UNAUDITED | |||||||||||||||
| Quarters Ended | |||||||||||||||
| (in thousands) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | ||||||||||
| Assets | |||||||||||||||
| Commercial real estate | $ | 928,445 | $ | 900,568 | $ | 846,921 | $ | 825,596 | $ | 836,813 | |||||
| Commercial and industrial | 412,595 | 410,453 | 416,000 | 405,107 | 393,396 | ||||||||||
| Residential real estate | 1,156,215 | 1,154,552 | 1,176,583 | 1,143,862 | 1,137,493 | ||||||||||
| Consumer | 127,425 | 109,562 | 111,641 | 113,060 | 114,960 | ||||||||||
| Total loans ^(1)^ | 2,624,680 | 2,575,135 | 2,551,145 | 2,487,625 | 2,482,662 | ||||||||||
| Securities and other^(2)^ | 683,939 | 732,925 | 779,072 | 777,458 | 762,901 | ||||||||||
| Total earning assets | 3,308,619 | 3,308,060 | 3,330,217 | 3,265,083 | 3,245,563 | ||||||||||
| Cash and due from banks | 67,642 | 62,999 | 52,728 | 50,298 | 68,904 | ||||||||||
| Allowance for loan losses | (15,657 | ) | (14,965 | ) | (14,459 | ) | (14,119 | ) | (13,922 | ) | |||||
| Goodwill and other intangible assets | 114,537 | 107,058 | 107,252 | 107,446 | 107,657 | ||||||||||
| Other assets | 179,512 | 178,804 | 170,340 | 152,332 | 138,074 | ||||||||||
| Total assets | $ | 3,654,653 | $ | 3,641,956 | $ | 3,646,078 | $ | 3,561,040 | $ | 3,546,276 | |||||
| Liabilities and shareholders' equity | |||||||||||||||
| NOW | $ | 551,335 | $ | 487,506 | $ | 459,572 | $ | 468,392 | $ | 475,449 | |||||
| Savings | 378,997 | 359,242 | 352,733 | 346,707 | 346,905 | ||||||||||
| Money market | 379,361 | 338,013 | 338,095 | 335,882 | 272,612 | ||||||||||
| Time deposits | 918,528 | 947,949 | 935,616 | 894,160 | 914,674 | ||||||||||
| Total interest bearing deposits | 2,228,221 | 2,132,710 | 2,086,016 | 2,045,141 | 2,009,640 | ||||||||||
| Borrowings | 571,936 | 708,222 | 789,953 | 761,885 | 761,781 | ||||||||||
| Total interest-bearing liabilities | 2,800,157 | 2,840,932 | 2,875,969 | 2,807,026 | 2,771,421 | ||||||||||
| Non-interest-bearing demand deposits | 418,324 | 368,100 | 349,322 | 351,362 | 384,636 | ||||||||||
| Other liabilities | 40,136 | 37,975 | 33,107 | 25,520 | 26,569 | ||||||||||
| Total liabilities | 3,258,617 | 3,247,007 | 3,258,398 | 3,183,908 | 3,182,626 | ||||||||||
| Total shareholders' equity | 396,036 | 394,949 | 387,680 | 377,132 | 363,650 | ||||||||||
| Total liabilities and shareholders' equity | $ | 3,654,653 | $ | 3,641,956 | $ | 3,646,078 | $ | 3,561,040 | $ | 3,546,276 |
_____________________________________
| (1) | Total loans include non-accruing loans. |
|---|---|
| (2) | Average balances for securities available-for-sale are based on amortized cost. |
| --- | --- |
H
| BAR HARBOR BANKSHARES | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSET QUALITY ANALYSIS - UNAUDITED | |||||||||||||||
| At or for the Quarters Ended | |||||||||||||||
| (in thousands) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | ||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||
| Non-accruing loans: | |||||||||||||||
| Commercial real estate | $ | 3,489 | $ | 8,519 | $ | 7,048 | $ | 7,516 | $ | 8,156 | |||||
| Commercial installment | 1,836 | 2,077 | 2,081 | 2,192 | 2,331 | ||||||||||
| Residential real estate | 5,335 | 5,340 | 5,965 | 6,326 | 7,210 | ||||||||||
| Consumer installment | 890 | 743 | 861 | 565 | 538 | ||||||||||
| Total non-accruing loans | 11,550 | 16,679 | 15,955 | 16,599 | 18,235 | ||||||||||
| Other real estate owned | 2,236 | 2,455 | 2,351 | 2,351 | 2,351 | ||||||||||
| Total non-performing assets | $ | 13,786 | $ | 19,134 | $ | 18,306 | $ | 18,950 | $ | 20,586 | |||||
| Total non-accruing loans/total loans | 0.44 | % | 0.65 | % | 0.62 | % | 0.66 | % | 0.73 | % | |||||
| Total non-performing assets/total assets | 0.38 | 0.53 | 0.50 | 0.52 | 0.57 | ||||||||||
| PROVISION AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||
| Balance at beginning of period | $ | 15,353 | $ | 14,572 | $ | 13,997 | $ | 13,866 | $ | 13,487 | |||||
| Charged-off loans | (603 | ) | (215 | ) | (104 | ) | (231 | ) | (631 | ) | |||||
| Recoveries on charged-off loans | 65 | 103 | 117 | 38 | 438 | ||||||||||
| Net loans charged-off | (538 | ) | (112 | ) | 13 | (193 | ) | (193 | ) | ||||||
| Provision for loan losses | 538 | 893 | 562 | 324 | 572 | ||||||||||
| Balance at end of period | $ | 15,353 | $ | 15,353 | $ | 14,572 | $ | 13,997 | $ | 13,866 | |||||
| Allowance for loan losses/total loans | 0.58 | % | 0.60 | % | 0.57 | % | 0.55 | % | 0.56 | % | |||||
| Allowance for loan losses/non-accruing loans | 133 | 92 | 91 | 84 | 76 | ||||||||||
| NET LOAN CHARGE-OFFS | |||||||||||||||
| Commercial real estate | $ | (92 | ) | $ | 1 | $ | 114 | $ | (41 | ) | $ | (25 | ) | ||
| Commercial installment | (331 | ) | 62 | (12 | ) | (15 | ) | 53 | |||||||
| Residential real estate | (16 | ) | (124 | ) | (65 | ) | (86 | ) | (31 | ) | |||||
| Consumer installment | (99 | ) | (51 | ) | (24 | ) | (51 | ) | (190 | ) | |||||
| Total, net | $ | (538 | ) | $ | (112 | ) | $ | 13 | $ | (193 | ) | $ | (193 | ) | |
| Net charge-offs (QTD annualized)/average loans | 0.08 | % | 0.02 | % | 0.03 | % | 0.03 | % | 0.03 | % | |||||
| Net charge-offs (YTD annualized)/average loans | 0.03 | 0.02 | 0.01 | 0.03 | 0.05 | ||||||||||
| DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS | |||||||||||||||
| 30-89 Days delinquent | 0.74 | % | 0.18 | % | 0.29 | % | 0.21 | % | 0.38 | % | |||||
| 90+ Days delinquent and still accruing | 0.01 | 0.03 | — | — | 0.01 | ||||||||||
| Total accruing delinquent loans | 0.75 | 0.21 | 0.29 | 0.21 | 0.39 | ||||||||||
| Non-accruing loans | 0.44 | 0.65 | 0.62 | 0.66 | 0.73 | ||||||||||
| Total delinquent and non-accruing loans | 1.19 | % | 0.86 | % | 0.91 | % | 0.87 | % | 1.12 | % |
I
| BAR HARBOR BANKSHARES | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED | ||||||||||||||||
| At or for the Quarters Ended | ||||||||||||||||
| (in thousands) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | |||||||||||
| Net income | $ | 4,207 | $ | 5,015 | $ | 6,117 | $ | 7,281 | $ | 7,620 | ||||||
| Plus (less): | ||||||||||||||||
| (Gain) loss on sale of securities, net | (80 | ) | (157 | ) | — | — | 924 | |||||||||
| (Gain) loss on sale of premises and equipment, net | (3 | ) | — | 21 | — | — | ||||||||||
| Loss on other real estate owned | 20 | 146 | — | — | 5 | |||||||||||
| Loss on debt extinguishment | 1,096 | — | — | — | — | |||||||||||
| Acquisition, restructuring and other expenses | 4,998 | 3,039 | 280 | — | 1,109 | |||||||||||
| Income tax expense ^(1)^ | (1,440 | ) | (720 | ) | (72 | ) | — | (485 | ) | |||||||
| Total core earnings ^(2)^ | (A) | $ | 8,798 | $ | 7,323 | $ | 6,346 | $ | 7,281 | $ | 9,173 | |||||
| Net interest income | (B) | $ | 24,104 | $ | 22,445 | $ | 21,496 | $ | 21,765 | $ | 22,264 | |||||
| Plus: Non-interest income | 7,806 | 7,643 | 7,453 | 6,167 | 7,450 | |||||||||||
| Total Revenue | 31,910 | 30,088 | 28,949 | 27,932 | 29,714 | |||||||||||
| Adj: (Gain) loss on sale of securities, net | (80 | ) | (157 | ) | — | — | 924 | |||||||||
| Total core revenue^(2)^ | (C) | $ | 31,830 | $ | 29,931 | $ | 28,949 | $ | 27,932 | $ | 30,638 | |||||
| Total non-interest expense | 26,803 | 23,400 | 20,906 | 18,624 | 20,096 | |||||||||||
| Less: Gain (loss) on sale of premises and equipment, net | 3 | — | (21 | ) | — | — | ||||||||||
| Less: Loss on other real estate owned | (20 | ) | (146 | ) | — | — | (5 | ) | ||||||||
| Less: Loss on debt extinguishment | (1,096 | ) | — | — | — | — | ||||||||||
| Less: Acquisition, conversion and other expenses | (4,998 | ) | (3,039 | ) | (280 | ) | — | (1,109 | ) | |||||||
| Core non-interest expense ^(2)^ | (D) | $ | 20,692 | $ | 20,215 | $ | 20,605 | $ | 18,624 | $ | 18,982 | |||||
| (in millions) | ||||||||||||||||
| Total average earning assets | (E) | $ | 3,309 | $ | 3,308 | $ | 3,330 | $ | 3,265 | $ | 3,246 | |||||
| Total average assets | (F) | 3,655 | 3,642 | 3,646 | 3,561 | 3,546 | ||||||||||
| Total average shareholders' equity | (G) | 396 | 395 | 388 | 377 | 364 | ||||||||||
| Total average tangible shareholders' equity ^(2) (3)^ | (H) | 281 | 288 | 280 | 270 | 256 | ||||||||||
| Total tangible shareholders' equity, period-end ^(2) (3)^ | (I) | 269 | 287 | 283 | 274 | 263 | ||||||||||
| Total tangible assets, period-end ^(2) (3)^ | (J) | 3,542 | 3,506 | 3,580 | 3,522 | 3,501 | ||||||||||
| (in thousands) | ||||||||||||||||
| Total common shares outstanding, period-end | (K) | 15,558 | 15,549 | 15,544 | 15,524 | 15,523 | ||||||||||
| Average diluted shares outstanding | (L) | 15,602 | 15,581 | 15,586 | 15,587 | 15,574 | ||||||||||
| Core earnings per share, diluted ^(2)^ | (A/L) | $ | 0.56 | $ | 0.47 | $ | 0.41 | $ | 0.47 | $ | 0.59 | |||||
| Tangible book value per share, period-end ^(2)^ | (I/K) | 17.30 | 18.49 | 18.23 | 17.63 | 16.94 | ||||||||||
| Securities adjustment, net of tax ^(1) (4)^ | (M) | 5,549 | 8,002 | 5,550 | (1,842 | ) | (8,663 | ) | ||||||||
| Tangible book value per share, excluding securities adjustment ^(2)^ | (I+M)/K | 16.94 | 17.98 | 17.88 | 17.75 | 17.50 | ||||||||||
| Total tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | 7.60 | 8.20 | 7.92 | 7.77 | 7.51 |
J
| BAR HARBOR BANKSHARES | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED | ||||||||||||||||
| At or for the Quarters Ended | ||||||||||||||||
| (in thousands) | Dec 31, <br>2019 | Sep 30, <br>2019 | Jun 30, <br>2019 | Mar 31, <br>2019 | Dec 31, <br>2018 | |||||||||||
| Performance ratios ^(5)^ | ||||||||||||||||
| GAAP return on assets | 0.46 | % | 0.55 | % | 0.67 | % | 0.83 | % | 0.85 | % | ||||||
| Core return on assets ^(2)^ | (A/F) | 0.96 | 0.80 | 0.70 | 0.83 | 1.03 | ||||||||||
| GAAP return on equity | 4.21 | 5.04 | 6.33 | 7.83 | 8.31 | |||||||||||
| Core return on equity ^(2)^ | (A/G) | 8.81 | 7.36 | 6.57 | 7.83 | 10.01 | ||||||||||
| Core return on tangible equity ^(2) (6)^ | (A+Q)/H | 12.66 | 10.31 | 9.30 | 11.19 | 14.46 | ||||||||||
| Efficiency ratio ^(2) (7)^ | (D-O-Q)/(C+N) | 62.56 | 65.02 | 68.48 | 63.94 | 59.91 | ||||||||||
| Net interest margin | (B+P)/E | 2.95 | 2.75 | 2.65 | 2.77 | 2.78 | ||||||||||
| Supplementary data (in thousands) | ||||||||||||||||
| Taxable equivalent adjustment for efficiency ratio | (N) | $ | 674 | $ | 658 | $ | 676 | $ | 684 | $ | 633 | |||||
| Franchise taxes included in non-interest expense | (O) | 119 | 119 | 111 | 120 | 39 | ||||||||||
| Tax equivalent adjustment for net interest margin | (P) | 516 | 503 | 514 | 515 | 488 | ||||||||||
| Intangible amortization | (Q) | 240 | 207 | 207 | 207 | 207 |
______________________________________
| (1) | Assumes a marginal tax rate of 23.78% in the first three quarters of 2019 and 23.87% in the fourth quarter 2019. A marginal tax rate of 23.78% was used in the fourth quarter of 2018. |
|---|---|
| (2) | Non-GAAP financial measure. |
| --- | --- |
| (3) | Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end. |
| --- | --- |
| (4) | Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity. |
| --- | --- |
| (5) | All performance ratios are based on average balance sheet amounts, where applicable. |
| --- | --- |
| (6) | Adjusted return on tangible equity is computed by dividing the total core income adjusted for the tax-effected amortization of intangible assets, assuming a marginal rate of 23.78% in the first three quarters of 2019 and 23.87% in the fourth quarter 2019 and 23.78% in the fourth quarter of 2018, by tangible equity. |
| --- | --- |
| (7) | Efficiency ratio is computed by dividing adjusted non-interest expense by the sum of net interest income on a fully taxable equivalent basis and adjusted non-interest income. |
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