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) OFTHE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 21, 2022
BAR HARBOR BANKSHARES
(Exact Name of Registrant as Specified in its Charter)
| | | |
|---|---|---|
| Maine | 001-13349 | 01-0393663 |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File No.) | (I.R.S. Employer<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 July 21, 2022, Bar Harbor Bankshares issued a press release reporting its financial results for the quarter ended June 30, 2022. The full text of this press release is furnished as Exhibit 99.1 to this report 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 8.01 Other Events.
On July 21, 2022, Bar Harbor Bankshares announced that its Board of Directors declared a quarterly cash dividend of $0.26 per share to shareholders of record at the close of business on August 16, 2022 and payable on September 16, 2022.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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|---|---|---|
| Exhibit No. | **** | Description |
| | | |
| 99.1<br><br>104 | | Press Release dated July 21, 2022<br><br>Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document<br><br> |
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.
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| | Bar Harbor Bankshares | |
| | | |
| July, 21, 2022 | By: | /s/ Curtis C. Simard |
| | | Curtis C. Simard |
| | | President and CEO |
Exhibit 99.1
Bar Harbor Bankshares Reports Second Quarter Results; Declares Dividend
BAR HARBOR, MAINE – July 21, 2022 - Bar Harbor Bankshares (NYSE American: BHB) reported second quarter 2022 net income of $10.5 million or $0.70 per diluted share compared to $9.0 million or $0.60 per diluted share in the same quarter of 2021. Earnings per share in the prior year quarter included a $0.05 benefit from Paycheck Protection Program (PPP) loans offset by $0.03 of non-core items (non-GAAP).
SECOND QUARTER HIGHLIGHTS (ratios compared to the second quarter 2021)
| ● | 1.14% return on assets, compared to 0.97% |
|---|---|
| ● | 11% annualized loan growth |
| --- | --- |
| ● | 9% annualized core deposit growth |
| --- | --- |
| ● | 3.19% net interest margin, compared to 2.74% |
| --- | --- |
| ● | 59% efficiency ratio, compared to 63% |
| --- | --- |
| ● | 0.21% non-performing asset ratio to total assets, compared to 0.37% |
| --- | --- |
President and Chief Executive Officer, Curtis C. Simard stated, “Our performance in the second quarter continues to reflect all the hard work everyone is doing across our Company. We increased net income per diluted share by 17%, which improved all of our performance metrics even without any benefit from PPP accretion. We delivered loan growth across all product offerings; Commercial loans, excluding PPP, grew 14% on annualized basis, driven both by existing and new customer growth. This strong loan growth in the first half of the year, along with rising rates, drove meaningful growth in net interest income and expansion in net interest margin. The quarter was also highlighted by solid, positive operating leverage which improved our efficiency ratio.”
“Wealth management income remained strong during the quarter. Assets under management decreased 9%, which is manageable compared to the 16% decline in the S&P 500 index for the same period. Net customer cash inflows were strong in the quarter. We completed the consolidation of our wealth platforms under the Bar Harbor Wealth Management brand during the quarter which delivers a simplified, comprehensive offering across our footprint. We've invested in continuous improvements in our financial planning capabilities, reflecting our deep, long-term care for our customers and their families.”
“Asset quality continues to remain strong as total nonperforming assets improved by $1.3 million to 0.21% of total assets and net charge-offs were essentially zero during the quarter. As the economic environment continues to evolve, we believe that our disciplined strategy to responsibly grow business lines where we possess specialized sector and underwriting expertise has resulted in almost no losses for the quarter. We remain committed to those relationships with proven operators. This has allowed us to maintain a superior credit risk profile in our commercial banking business.”
Mr. Simard further stated, “As we continue to grow profitably, we remain steadfast in our commitment to return capital to our shareholders. Last month, our Board of Directors authorized a stock repurchase plan for up to 5% of our common shares, which represents approximately 751,000 shares. No repurchases were made in the second quarter and we will continue to be opportunistic taking into consideration market conditions, including interest rate volatility and potential loan and risk-weighted asset growth. We grew tangible book value 6% excluding unrealized security losses, which are considered temporary in nature. And as of the June 30, 2022 stock price, our dividend yield is now over 4%. Given our already strong capital ratios and our organic growth rate, we continue to be well-positioned as we look to future growth.”
Mr. Simard concluded, “Our customers and communities have noticed our success as we further establish ourselves as the go-to banking institution in Northern New England. With that in mind, I am excited to share that in addition to being named one of America’s Best Banks by Newsweek for 2022, we were recently recognized as one of America’s Best Banks by Forbes Magazine. This type of recognition from such a renowned publication does not come easily. It is a testament to our teams' hard work every day. Looking forward into the second half of 2022, there are macroeconomic factors that remain uncertain. We believe having a strong balance sheet, robust
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pipelines, a sound mix of fee-based businesses, and a focus on expense management as we execute against our strategies will provide the foundation for continued success.”
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of $0.26 per share to shareholders of record at the close of business on August 16, 2022 payable on September 16, 2022. This dividend equates to a 4.02% annualized yield based on the $25.86 closing price of the Company’s common stock at the end of the second quarter of 2022.
FINANCIAL CONDITION
Loans were $2.7 billion at the end of the second quarter. Excluding PPP loans, commercial loans increased $55.8 million from the end of the first quarter 2022 and included over 70 new customer relationships. Total residential loans increased $8.3 million from the end of the first quarter 2022, and included $18.3 million of originations on the balance sheet offset by prepayments and amortization.
The allowance for credit losses was $23.8 million for the second quarter, compared to $23.2 million at the end of the first quarter 2022. A steadying economic forecast and disciplined approach to credit quality resulted in an allowance to total loans coverage ratio of 0.87% consistent with the end of the first quarter. The second quarter 2022 charged off loans resulted in a net recovery of $32 thousand compared to $95 thousand in the first quarter. Non-accruing loans for the second quarter 2022 decreased to $7.9 million from $9.2 million at the end of the first quarter. The ratio of accruing past due loans to total loans was 0.12% of total loans at the end of the second quarter from 0.25% at the end of the first quarter.
Total deposits were $3.1 billion at the end of the second quarter 2022 compared to $3.0 billion at the end of the first quarter. Core deposits grew $60.8 million, or 9% on an annualized basis, during the quarter as nearly 840 net new customer accounts were opened. The loan to deposit ratio was 89% compared to 87% at the end of the first quarter 2022, the increase was due to outsized loan growth. Time deposits decreased $30.0 million during the quarter attributable to customers continuing to move funds to transactional accounts upon contractual maturity.
The Company’s book value per share was $26.19 at June 30, 2022, compared with $27.11 at the end of the first quarter. Tangible book value per share (non-GAAP measure) was $17.83 at the end of the second quarter 2022, compared to $18.72 at the end of the first quarter. Other comprehensive income included unrealized loss on securities totaling $38.3 million in the second quarter 2022 compared to $20.2 million at the end of the first quarter.
RESULTS OF OPERATIONS
Net income in the second quarter 2022 was $10.5 million, or $0.70 per diluted share, compared to $9.0 million, or $0.60 per diluted share, in the same quarter of 2021. Core earnings (non-GAAP) totaled $10.5 million or $0.70 per diluted share, compared to $9.4 million, or $0.63 per diluted share, in the same quarter of 2021. PPP income was $27 thousand compared to $1.1 million in the second quarter 2021.
Net interest margin was 3.19% compared to 2.74% in the same period of 2021. Acceleration of PPP loan fee amortization due to forgiveness contributed 7 basis points in the second quarter 2021. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 5 basis points in the second quarter 2022 and 19 basis points in the second quarter 2021. The yield on earning assets totaled 3.46% compared to 3.26% in the second quarter 2021. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.51% and 3.44% for the same periods. The yield on loans was 3.71% in the second quarter 2022, and 3.70% in the second quarter of 2021. Excluding PPP loans the yield on loans was 3.71% in the second quarter of 2022 and 3.64% in the second quarter 2021. Costs of interest-bearing liabilities decreased to 0.36% from 0.66% in the second quarter 2021 due to lower deposit rates and less wholesale borrowings.
The provision for credit losses for the quarter was $534 thousand, compared to a recapture of $765 thousand in the second quarter of 2021. The provision in the second quarter 2022 is attributable to loan growth offset in part by continued improvement in credit quality metrics.
Non-interest income in the second quarter 2022 was $9.0 million, compared to $9.5 million in the same quarter of 2021. Customer service fees were $3.7 million in the second quarter compared to $3.3 million in the same period of 2021. The increase included over 800 net new accounts that were opened during the quarter and a higher volume of customer activity and transactions. Wealth management income was $3.8 million in the second quarter of 2022 and the second quarter of 2021 on strong cash inflows offset by market volatility effects on assets under management. Mortgage banking income was $488 thousand, compared to $1.5 million in the same period of 2021 reflecting higher on balance sheet activity and lower residential loan originations.
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Non-interest expense was $21.7 million in the second quarter 2022 and the same quarter of 2021 reflecting consistent and stable costs across most categories. The efficiency ratio in the second quarter 2022 was 59.25%, down from 63.45% in the second quarter 2021. Non-core expenses (non-GAAP) in the second quarter 2022 consisted of a $10 thousand loss on the sale of premises and equipment. In the same quarter of 2021, non-core expenses (non-GAAP) totaled $553 thousand were mostly a one-time reduction in workforce.
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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 135 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 headings “SECOND QUARTER HIGHLIGHTS” and “RESULTS OF OPERATIONS” 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, 2021 and any subsequently filed Quarterly Reports on Form 10-Q. 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
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| TABLE | |
| INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
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| | |
| A | Selected Financial Highlights |
| B | Balance Sheets |
| C | Loan and Deposit Analysis |
| D | Statements of Income |
| E | Statements of Income (Five Quarter Trend) |
| F | Average Yields and Costs |
| G | Average Balances |
| H | Asset Quality Analysis |
| I-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 | **** | |||||||||||||
| | **** | Jun 30, | **** | **** | Mar 31, | **** | Dec 31, | | **** | Sep 30, | | **** | Jun 30, | | ||
| | | 2022 | | | 2022 | | 2021 | | | 2021 | | | 2021 | | ||
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Net earnings, diluted | $ | 0.70 | $ | 0.60 | $ | 0.65 | $ | 0.73 | $ | 0.60 | | |||||
| Core earnings, diluted ^(1)^ | | 0.70 | | 0.62 | | 0.68 | | 0.73 | | 0.63 | | |||||
| Total book value | | 26.19 | | 27.11 | | 28.27 | | 27.92 | | 27.64 | | |||||
| Tangible book value ^(1)^ | | 17.83 | | 18.72 | | 19.86 | | 19.48 | | 19.17 | | |||||
| Market price at period end | | 25.86 | | 28.62 | | 28.93 | | 28.05 | | 28.62 | | |||||
| Dividends | | 0.26 | | 0.24 | | 0.24 | | 0.24 | | 0.24 | | |||||
| | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS ^(2)^ | | | | | | | | | | | | | | | | |
| Return on assets | | 1.14 | % | | 1.00 | % | | 1.02 | % | | 1.16 | % | | 0.97 | % | |
| Core return on assets ^(1)^ | | 1.14 | | 1.02 | | 1.07 | | 1.16 | | 1.01 | | |||||
| Pre-tax, pre-provision return on assets | | | 1.50 | | | 1.28 | | | 1.26 | | | 1.43 | | | 1.13 | |
| Core pre-tax, pre-provision return on assets^(1)^ | | | 1.50 | | | 1.31 | | | 1.33 | | | 1.43 | | | 1.18 | |
| Return on equity | | 10.58 | | 8.89 | | 9.16 | | 10.38 | | 8.77 | | |||||
| Core return on equity ^(1)^ | | 10.59 | | 9.07 | | 9.60 | | 10.39 | | 9.14 | | |||||
| Return on tangible equity | | | 15.74 | | | 13.01 | | | 13.30 | | | 15.08 | | | 12.91 | |
| Core return on tangible equity ^(1)^ | | 15.76 | | 13.27 | | 13.93 | | 15.09 | | 13.45 | | |||||
| Net interest margin, fully taxable equivalent (FTE) ^(1) (3)^ | | 3.19 | | 2.95 | | 2.79 | | 3.02 | | 2.74 | | |||||
| Core net interest margin^(1) (4)^ | | | 3.19 | | | 2.93 | | | 2.69 | | | 2.75 | | | 2.67 | |
| Efficiency ratio ^(1)^ | | 59.25 | | 62.40 | | 60.74 | | 59.18 | | 63.45 | | |||||
| | | | | | | | | | | | | | | | | |
| FINANCIAL DATA (In millions) | | | | | | | | | | | | | | | | |
| Total assets | $ | 3,712 | $ | 3,692 | $ | 3,709 | $ | 3,738 | $ | 3,639 | | |||||
| Total earning assets ^(5)^ | | 3,399 | | 3,367 | | 3,380 | | 3,394 | | 3,282 | | |||||
| Total investments | | 593 | | 611 | | 626 | | 556 | | 636 | | |||||
| Total loans | | 2,727 | | 2,655 | | 2,532 | | 2,534 | | 2,516 | | |||||
| Allowance for credit losses | | 24 | | 23 | | 23 | | 22 | | 23 | | |||||
| Total goodwill and intangible assets | | 126 | | 126 | | 126 | | 126 | | 127 | | |||||
| Total deposits | | 3,079 | | 3,048 | | 3,049 | | 3,007 | | 2,822 | | |||||
| Total shareholders' equity | | 394 | | 407 | | 424 | | 418 | | 414 | | |||||
| Net income | | 11 | | 9 | | 10 | | 11 | | 9 | | |||||
| Core earnings^(1)^ | | 11 | | 9 | | 10 | | 11 | | 9 | | |||||
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY AND CONDITION RATIOS | | | | | | | | | | | | | | | | |
| Net (recoveries) charge-offs (current quarter annualized)/average loans | | (0.01) | % | | (0.01) | % | | — | % | | 0.03 | % | | 0.01 | % | |
| Allowance for credit losses/total loans | | 0.87 | | 0.87 | | 0.90 | | 0.89 | | 0.91 | | |||||
| Loans/deposits | | 89 | | 87 | | 83 | | 84 | | 89 | | |||||
| Shareholders' equity to total assets | | 10.60 | | 11.02 | | 11.43 | | 11.19 | | 11.37 | | |||||
| Tangible shareholders' equity to tangible assets | | 7.47 | | 7.88 | | 8.32 | | 8.08 | | 8.17 | |
| (1) | Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in table I-J for additional information. |
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| (2) | All performance ratios are based on average balance sheet amounts, where applicable. |
| --- | --- |
| (3) | Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans. |
| --- | --- |
| (4) | Core net interest margin excludes Paycheck Protection Program loans. |
| --- | --- |
| (5) | Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost. |
| --- | --- |
A
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | |||||
| (in thousands) | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | |||||
| Assets | | | | | | ||||||||||
| Cash and due from banks | | $ | 40,834 | | $ | 38,656 | | $ | 33,508 | | $ | 39,081 | | $ | 41,440 |
| Interest-earning deposits with other banks | | 26,282 | | 72,393 | | 216,881 | | 302,118 | | 132,278 | |||||
| Total cash and cash equivalents | | 67,116 | | 111,049 | | 250,389 | | 341,199 | | 173,718 | |||||
| | | | | | | | | | | | | | | | |
| Securities available for sale | | 586,142 | | 603,910 | | 618,276 | | 545,327 | | 621,849 | |||||
| Federal Home Loan Bank stock | | 6,572 | | 7,384 | | 7,384 | | 10,192 | | 14,145 | |||||
| Total securities | | 592,714 | | 611,294 | | 625,660 | | 555,519 | | 635,994 | |||||
| | | | | | | | | | | | | | | | |
| Loans held for sale | | | 3,539 | | | 2,843 | | | 5,523 | | | 7,505 | | | 7,942 |
| | | | | | | | | | | | | | | | |
| Total loans | | 2,727,274 | | 2,654,562 | | 2,531,910 | | 2,534,154 | | 2,515,560 | |||||
| Less: Allowance for credit losses | | (23,756) | | (23,190) | | (22,718) | | (22,448) | | (22,815) | |||||
| Net loans | | 2,703,518 | | 2,631,372 | | 2,509,192 | | 2,511,706 | | 2,492,745 | |||||
| | | | | | | | | | | | | | | | |
| Premises and equipment, net | | 48,350 | | 48,891 | | 49,382 | | 50,070 | | 51,119 | |||||
| Other real estate owned | | — | | — | | — | | — | | — | |||||
| Goodwill | | 119,477 | | 119,477 | | 119,477 | | 119,477 | | 119,477 | |||||
| Other intangible assets | | 6,267 | | 6,500 | | 6,733 | | 6,966 | | 7,198 | |||||
| Cash surrender value of bank-owned life insurance | | 80,262 | | 79,861 | | 79,020 | | 79,380 | | 78,886 | |||||
| Deferred tax asset, net | | 18,405 | | 12,614 | | 5,547 | | 5,811 | | 4,902 | |||||
| Other assets | | 72,596 | | 68,169 | | 58,310 | | 60,712 | | 67,064 | |||||
| Total assets | | $ | 3,712,244 | | $ | 3,692,070 | | $ | 3,709,233 | | $ | 3,738,345 | | $ | 3,639,045 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Demand and other non-interest bearing deposits | | $ | 670,268 | | $ | 653,471 | | $ | 664,420 | | $ | 664,395 | | $ | 599,598 |
| NOW deposits | | 883,239 | | 918,768 | | 940,631 | | 888,021 | | 802,681 | |||||
| Savings deposits | | 663,676 | | 658,834 | | 628,670 | | 605,977 | | 578,361 | |||||
| Money market deposits | | 499,456 | | 424,750 | | 389,291 | | 379,651 | | 371,075 | |||||
| Time deposits | | 361,906 | | 391,940 | | 425,532 | | 469,221 | | 470,758 | |||||
| Total deposits | | 3,078,545 | | 3,047,763 | | 3,048,544 | | 3,007,265 | | 2,822,473 | |||||
| | | | | | | | | | | | | | | | |
| Senior borrowings | | 117,347 | | 118,538 | | 118,400 | | 190,267 | | 279,991 | |||||
| Subordinated borrowings | | 60,206 | | 60,165 | | 60,124 | | 60,083 | | 60,042 | |||||
| Total borrowings | | 177,553 | | 178,703 | | 178,524 | | 250,350 | | 340,033 | |||||
| | | | | | | | | | | | | | | | |
| Other liabilities | | 62,549 | | 58,605 | | 58,018 | | 62,295 | | 62,779 | |||||
| Total liabilities | | 3,318,647 | | 3,285,071 | | 3,285,086 | | 3,319,910 | | 3,225,285 | |||||
| | | | | | | | | | | | | | | | |
| Total shareholders’ equity | | 393,597 | | 406,999 | | 424,147 | | 418,435 | | 413,760 | |||||
| Total liabilities and shareholders’ equity | | $ | 3,712,244 | | $ | 3,692,070 | | $ | 3,709,233 | | $ | 3,738,345 | | $ | 3,639,045 |
| | | | | | | | | | | | | | | | |
| Net shares outstanding | | 15,026 | | 15,013 | | 15,001 | | 14,987 | | 14,972 |
B
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | ||||
| | | | | | | | | | | | | | | | | | Growth % | ||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Quarter | | Year | |||||||
| (in thousands) | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | | to Date | | to Date | |||||||
| Commercial real estate | | $ | 1,331,860 | | $ | 1,289,968 | | $ | 1,210,580 | | $ | 1,170,372 | | $ | 1,135,857 | 13 | % | | 20 | % | |
| Commercial and industrial | | 360,304 | | 346,394 | | 340,129 | | 331,091 | | 327,729 | 16 | | 12 | | |||||||
| Paycheck Protection Program (PPP) | | | 170 | | | 1,126 | | | 6,669 | | | 24,227 | | | 65,918 | | * | | | * | |
| Total commercial loans | | 1,692,334 | | 1,637,488 | | 1,557,378 | | 1,525,690 | | 1,529,504 | 13 | | 17 | | |||||||
| Total commercial loans, excluding PPP | | 1,692,164 | | 1,636,362 | | 1,550,709 | | 1,501,463 | | 1,463,586 | 14 | | 18 | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | 876,644 | | 868,382 | | 821,004 | | 849,692 | | 822,774 | 4 | | 14 | | |||||||
| Consumer | | 100,816 | | 96,876 | | 98,949 | | 100,933 | | 103,589 | 16 | | 4 | | |||||||
| Tax exempt and other | | 57,480 | | 51,816 | | 54,579 | | 57,839 | | 59,693 | 44 | | 11 | | |||||||
| Total loans | | $ | 2,727,274 | | $ | 2,654,562 | | $ | 2,531,910 | | $ | 2,534,154 | | $ | 2,515,560 | 11 | % | | 15 | % |
DEPOSIT ANALYSIS
| | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | ||||
| | | | | | | | | | | | | | | | | | Growth % | ||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Quarter | | Year | |||||||
| (in thousands) | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | | to Date | | to Date | |||||||
| Demand | | $ | 670,268 | | $ | 653,471 | | $ | 664,420 | | $ | 664,395 | | $ | 599,598 | 10 | % | | 2 | % | |
| NOW | | 883,239 | | 918,768 | | 940,631 | | 888,021 | | 802,681 | (15) | | (12) | | |||||||
| Savings | | 663,676 | | 658,834 | | 628,670 | | 605,977 | | 578,361 | 3 | | 11 | | |||||||
| Money market | | 499,456 | | 424,750 | | 389,291 | | 379,651 | | 371,075 | 70 | | 57 | | |||||||
| Total non-maturity deposits | | 2,716,639 | | 2,655,823 | | 2,623,012 | | 2,538,044 | | 2,351,715 | 9 | | 7 | | |||||||
| Total time deposits | | 361,906 | | 391,940 | | 425,532 | | 469,221 | | 470,758 | (31) | | (30) | | |||||||
| Total deposits | | $ | 3,078,545 | | $ | 3,047,763 | | $ | 3,048,544 | | $ | 3,007,265 | | $ | 2,822,473 | 4 | % | | 2 | % |
*Indicates ratios of 100% or greater.
C
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | | June 30, | | June 30, | ||||||||
| (in thousands, except per share data) | **** | 2022 | **** | 2021 | **** | 2022 | **** | 2021 | ||||
| Interest and dividend income | | | | | ||||||||
| Loans | | $ | 24,581 | | $ | 23,191 | | $ | 47,252 | | $ | 47,396 |
| Securities and other | | 4,207 | | 3,992 | | 8,033 | | 7,971 | ||||
| Total interest and dividend income | | 28,788 | | 27,183 | | 55,285 | | 55,367 | ||||
| Interest expense | | | | | | |||||||
| Deposits | | 1,195 | | 2,603 | | 2,384 | | 5,554 | ||||
| Borrowings | | 1,074 | | 1,826 | | 2,084 | | 3,637 | ||||
| Total interest expense | | 2,269 | | 4,429 | | 4,468 | | 9,191 | ||||
| Net interest income | | 26,519 | | 22,754 | | 50,817 | | 46,176 | ||||
| Provision for credit losses | | 534 | | (765) | | 911 | | (1,254) | ||||
| Net interest income after provision for credit losses | | 25,985 | | 23,519 | | 49,906 | | 47,430 | ||||
| Non-interest income | | | | | ||||||||
| Trust and investment management fee income | | 3,829 | | 3,801 | | 7,583 | | 7,467 | ||||
| Customer service fees | | 3,656 | | 3,257 | | 7,272 | | 6,227 | ||||
| Gain on sales of securities, net | | — | | 50 | | 9 | | 50 | ||||
| Mortgage banking income | | | 488 | | | 1,553 | | | 1,112 | | | 4,123 |
| Bank-owned life insurance income | | 504 | | 498 | | 1,005 | | 1,016 | ||||
| Customer derivative income | | 137 | | 86 | | 155 | | 496 | ||||
| Other income | | 347 | | 260 | | 1,134 | | 374 | ||||
| Total non-interest income | | 8,961 | | 9,505 | | 18,270 | | 19,753 | ||||
| Non-interest expense | | | | | ||||||||
| Salaries and employee benefits | | 11,368 | | 11,356 | | 23,515 | | 23,532 | ||||
| Occupancy and equipment | | 4,373 | | 3,894 | | 8,796 | | 8,222 | ||||
| Loss (gain) on sales of premises and equipment, net | | 10 | | 1 | | (65) | | 9 | ||||
| Outside services | | 410 | | 533 | | 750 | | 965 | ||||
| Professional services | | 528 | | 151 | | 701 | | 709 | ||||
| Communication | | 188 | | 198 | | 413 | | 519 | ||||
| Marketing | | 369 | | 534 | | 632 | | 824 | ||||
| Amortization of intangible assets | | 233 | | 233 | | 466 | | 474 | ||||
| Loss on debt extinguishment | | — | | — | | — | | — | ||||
| Acquisition, conversion and other expenses | | — | | 552 | | 325 | | 1,441 | ||||
| Other expenses | | 4,221 | | 4,272 | | 8,053 | | 7,520 | ||||
| Total non-interest expense | | 21,700 | | 21,724 | | 43,586 | | 44,215 | ||||
| Income before income taxes | | 13,246 | | 11,300 | | 24,590 | | 22,968 | ||||
| Income tax expense | | 2,743 | | 2,275 | | 4,975 | | 4,463 | ||||
| Net income | | $ | 10,503 | | $ | 9,025 | | $ | 19,615 | | $ | 18,505 |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | ||||||||
| Basic | | $ | 0.70 | | $ | 0.60 | | $ | 1.31 | | $ | 1.24 |
| Diluted | | 0.70 | | 0.60 | | 1.30 | | 1.23 | ||||
| | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | ||||||||
| Basic | | 15,018 | | 14,965 | | 15,014 | | 14,950 | ||||
| Diluted | | 15,077 | | 15,042 | | 15,094 | | 15,026 |
D
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | |||||
| (in thousands, except per share data) | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | |||||
| Interest and dividend income | | | | | | ||||||||||
| Loans | | $ | 24,581 | | $ | 22,671 | | $ | 22,746 | | $ | 25,094 | | $ | 23,191 |
| Securities and other | | 4,207 | | | 3,826 | | | 3,776 | | | 3,821 | | 3,992 | ||
| Total interest and dividend income | | 28,788 | | | 26,497 | | | 26,522 | | | 28,915 | | 27,183 | ||
| Interest expense | | | | | | | | | |||||||
| Deposits | | 1,195 | | | 1,189 | | | 1,434 | | | 1,555 | | 2,603 | ||
| Borrowings | | 1,074 | | | 1,010 | | | 1,273 | | | 1,778 | | 1,826 | ||
| Total interest expense | | 2,269 | | | 2,199 | | | 2,707 | | | 3,333 | | 4,429 | ||
| Net interest income | | 26,519 | | | 24,298 | | | 23,815 | | | 25,582 | | 22,754 | ||
| Provision for credit losses | | 534 | | | 377 | | | 126 | | | (174) | | (765) | ||
| Net interest income after provision for credit losses | | 25,985 | | | 23,921 | | | 23,689 | | | 25,756 | | | 23,519 | |
| Non-interest income | | | | | | | | | |||||||
| Trust and investment management fee income | | 3,829 | | | 3,754 | | | 3,844 | | | 3,868 | | 3,801 | ||
| Customer service fees | | 3,656 | | | 3,616 | | | 3,470 | | | 3,515 | | 3,257 | ||
| Gain on sales of securities, net | | — | | | 9 | | | 890 | | | 1,930 | | 50 | ||
| Mortgage banking income | | | 488 | | | 624 | | | 1,563 | | | 850 | | | 1,553 |
| Bank-owned life insurance income | | 504 | | | 501 | | | 669 | | | 494 | | 498 | ||
| Customer derivative income | | 137 | | | 18 | | | 173 | | | 341 | | 86 | ||
| Other income | | 347 | | | 787 | | | 549 | | | 352 | | 260 | ||
| Total non-interest income | | 8,961 | | | 9,309 | | | 11,158 | | | 11,350 | | 9,505 | ||
| Non-interest expense | | | | | | | | | |||||||
| Salaries and employee benefits | | 11,368 | | | 12,147 | | | 11,842 | | | 11,743 | | 11,356 | ||
| Occupancy and equipment | | 4,373 | | | 4,423 | | | 4,105 | | | 4,029 | | 3,894 | ||
| Loss (gain) on sales of premises and equipment, net | | 10 | | | (75) | | | 515 | | | (146) | | 1 | ||
| Outside services | | 410 | | | 340 | | | 431 | | | 547 | | 533 | ||
| Professional services | | 528 | | | 173 | | | 556 | | | 491 | | 151 | ||
| Communication | | 188 | | | 225 | | | 205 | | | 188 | | 198 | ||
| Marketing | | 369 | | | 263 | | | 378 | | | 339 | | 534 | ||
| Amortization of intangible assets | | 233 | | | 233 | | | 233 | | | 233 | | 233 | ||
| Loss on debt extinguishment | | — | | | — | | | 1,083 | | | 1,768 | | — | ||
| Acquisition, conversion and other expenses | | — | | | 325 | | | (92) | | | 318 | | 552 | ||
| Other expenses | | 4,221 | | | 3,832 | | | 3,665 | | | 3,862 | | 4,272 | ||
| Total non-interest expense | | 21,700 | | 21,886 | | 22,921 | | 23,372 | | 21,724 | |||||
| Income before income taxes | | 13,246 | | 11,344 | | 11,926 | | 13,734 | | 11,300 | |||||
| Income tax expense | | 2,743 | | | 2,232 | | | 2,160 | | | 2,706 | | 2,275 | ||
| Net income | | $ | 10,503 | | $ | 9,112 | | $ | 9,766 | | $ | 11,028 | | $ | 9,025 |
| | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | ||||||||||
| Basic | | $ | 0.70 | | $ | 0.61 | | $ | 0.65 | | $ | 0.74 | | $ | 0.60 |
| Diluted | | 0.70 | | 0.60 | | 0.65 | | 0.73 | | 0.60 | |||||
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | ||||||||||
| Basic | | 15,018 | | | 15,011 | | | 14,993 | | 14,983 | | 14,965 | |||
| Diluted | | 15,077 | | | 15,102 | | | 15,075 | | 15,051 | | 15,042 |
E
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | **** | ||||||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** |
| | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | **** |
| Earning assets | | | | | | | | | | | |
| Interest-earning deposits with other banks^^ | | 0.80 | % | 0.16 | % | 0.16 | % | 0.15 | % | 0.09 | % |
| Securities available for sale and FHLB stock | | 2.69 | | 2.55 | | 2.66 | | 2.59 | | 2.66 | |
| Loans: | | | | | | | | | | | |
| Commercial real estate | 3.82 | | 3.50 | | 3.40 | | 3.53 | | 3.54 | | |
| Commercial and industrial | 3.67 | 3.46 | 3.23 | 3.79 | 3.60 | | |||||
| Paycheck protection program | | 13.99 | | 26.49 | | 26.25 | | 23.28 | | 5.56 | |
| Residential real estate | 3.55 | 3.55 | 3.61 | 3.64 | 3.80 | | |||||
| Consumer | 3.82 | 3.51 | 3.49 | 3.78 | 3.44 | | |||||
| Total loans | 3.71 | 3.54 | 3.58 | 3.98 | 3.70 | | |||||
| Total earning assets | 3.46 | % | 3.21 | % | 3.10 | % | 3.41 | % | 3.26 | % | |
| | | | | | | | | | | | |
| Funding liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| NOW | 0.14 | % | 0.14 | % | 0.14 | % | 0.13 | % | 0.12 | % | |
| Savings | 0.08 | 0.09 | 0.08 | 0.08 | 0.10 | | |||||
| Money market | 0.19 | 0.12 | 0.12 | 0.12 | 0.12 | | |||||
| Time deposits | 0.58 | 0.62 | 0.77 | 0.88 | 1.37 | | |||||
| Total interest-bearing deposits | 0.20 | 0.20 | 0.24 | 0.27 | 0.45 | | |||||
| Borrowings | 2.41 | 2.29 | 2.17 | 2.11 | 2.12 | | |||||
| Total interest-bearing liabilities | 0.36 | % | 0.35 | % | 0.41 | % | 0.50 | % | 0.66 | % | |
| | | | | | | | | | | | |
| Net interest spread | 3.10 | 2.86 | 2.69 | 2.91 | 2.60 | | |||||
| Net interest margin^^ | 3.19 | 2.95 | 2.79 | 3.02 | 2.74 | | |||||
| Core net interest margin ^(1)^ | 3.19 | 2.93 | 2.69 | 2.75 | 2.67 | |
| (1) | Core net interest margin (Non-GAAP) excludes Paycheck Protection Program loans. |
|---|
F
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | |||||||||||||
| | | Jun 30, | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | |||||
| (in thousands) | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | |||||
| Assets | | | | | | ||||||||||
| Interest-earning deposits with other banks^(1)^ | | $ | 63,317 | | $ | 140,383 | | $ | 325,260 | | $ | 284,429 | | $ | 228,825 |
| Securities available for sale and FHLB stock ^(2)^ | | | 637,881 | | | 629,811 | | | 578,323 | | | 610,381 | | | 635,978 |
| Loans: | | | | | | | | | | | | | | | |
| Commercial real estate | | | 1,296,162 | | | 1,264,798 | | | 1,189,803 | | | 1,153,813 | | | 1,122,831 |
| Commercial and industrial | | 412,518 | | 393,759 | | 386,156 | | 391,191 | | 378,634 | |||||
| Paycheck protection program | | | 788 | | | 2,999 | | | 14,824 | | | 45,835 | | | 76,701 |
| Residential real estate | | 863,172 | | 856,252 | | 844,872 | | 824,686 | | 850,119 | |||||
| Consumer | | 98,588 | | 97,594 | | 100,723 | | 101,545 | | 104,851 | |||||
| Total loans ^(3)^ | | 2,671,228 | | 2,615,402 | | 2,536,378 | | 2,517,070 | | 2,533,136 | |||||
| Total earning assets | | 3,372,426 | | 3,385,596 | | 3,439,961 | | 3,411,880 | | 3,397,939 | |||||
| Cash and due from banks | | 35,051 | | 32,742 | | 37,818 | | 38,750 | | 21,414 | |||||
| Allowance for credit losses | | (23,228) | | (23,256) | | (22,525) | | (22,607) | | (23,419) | |||||
| Goodwill and other intangible assets | | 126,090 | | 126,090 | | 126,324 | | 126,556 | | 126,789 | |||||
| Other assets | | 174,880 | | 190,846 | | 200,097 | | 209,509 | | 223,362 | |||||
| Total assets | | $ | 3,685,219 | | $ | 3,712,018 | | $ | 3,781,675 | | $ | 3,764,088 | | $ | 3,746,085 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Deposits: | | | | | | | | | | | | | | | |
| NOW | | $ | 893,239 | | $ | 930,556 | | $ | 913,326 | | $ | 860,206 | | $ | 781,836 |
| Savings | | 657,047 | | 640,672 | | 620,599 | | 591,440 | | 568,193 | |||||
| Money market | | 457,088 | | 414,130 | | 395,341 | | 381,755 | | 368,826 | |||||
| Time deposits | | 375,782 | | 406,730 | | 450,559 | | 471,934 | | 619,454 | |||||
| Total interest-bearing deposits | | 2,383,156 | | 2,392,088 | | 2,379,825 | | 2,305,335 | | 2,338,309 | |||||
| Borrowings | | 178,519 | | 178,958 | | 232,492 | | 334,097 | | 345,896 | |||||
| Total interest-bearing liabilities | | 2,561,675 | | 2,571,046 | | 2,612,317 | | 2,639,432 | | 2,684,205 | |||||
| Non-interest-bearing demand deposits | | 661,412 | | 660,717 | | 684,895 | | 641,769 | | 591,982 | |||||
| Other liabilities | | 63,912 | | 64,619 | | 61,480 | | 61,436 | | 57,227 | |||||
| Total liabilities | | 3,286,999 | | 3,296,382 | | 3,358,692 | | 3,342,637 | | 3,333,414 | |||||
| Total shareholders' equity | | 398,220 | | 415,636 | | 422,983 | | 421,451 | | 412,671 | |||||
| Total liabilities and shareholders' equity | | $ | 3,685,219 | | $ | 3,712,018 | | $ | 3,781,675 | | $ | 3,764,088 | | $ | 3,746,085 |
| (1) | Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter. |
|---|---|
| (2) | Average balances for securities available-for-sale are based on amortized cost. |
| --- | --- |
| (3) | Total average loans include non-accruing loans and loans held for sale. |
| --- | --- |
G
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | | |||||||||||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | |||||
| (in thousands) | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | **** | |||||
| NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Non-accruing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 1,483 | $ | 1,633 | $ | 2,890 | $ | 3,646 | $ | 4,367 | | |||||
| Commercial installment | | 632 | | 905 | | 1,056 | | 1,163 | | 1,370 | | |||||
| Residential real estate | | 4,882 | | 5,612 | | 5,192 | | 6,311 | | 6,788 | | |||||
| Consumer installment | | 881 | | 1,063 | | 1,053 | | 1,087 | | 1,054 | | |||||
| Total non-accruing loans | | 7,878 | | 9,213 | | 10,191 | | 12,207 | | 13,579 | | |||||
| Other real estate owned | | — | | — | | — | | — | | — | | |||||
| Total non-performing assets | $ | 7,878 | $ | 9,213 | $ | 10,191 | $ | 12,207 | $ | 13,579 | | |||||
| | | | | | | | | | | | | | | | | |
| Total non-accruing loans/total loans | | 0.29 | % | | 0.35 | % | | 0.40 | % | | 0.48 | % | | 0.54 | % | |
| Total non-performing assets/total assets | | 0.21 | | 0.25 | | 0.27 | | 0.33 | | 0.37 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 23,190 | $ | 22,718 | $ | 22,448 | $ | 22,815 | $ | 23,653 | | |||||
| Charged-off loans | | (62) | | (83) | | (154) | | (286) | | (239) | | |||||
| Recoveries on charged-off loans | | 94 | | 178 | | 298 | | 93 | | 166 | | |||||
| Net loans charged-off | | 32 | | 95 | | 144 | | (193) | | (73) | | |||||
| Provision for credit losses | | 534 | | 377 | | 126 | | (174) | | (765) | | |||||
| Balance at end of period | $ | 23,756 | $ | 23,190 | $ | 22,718 | $ | 22,448 | $ | 22,815 | | |||||
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses/total loans | | 0.87 | % | | 0.87 | % | | 0.90 | % | | 0.89 | % | | 0.91 | % | |
| Allowance for credit losses/non-accruing loans | | 300 | | 252 | | 223 | | 184 | | 168 | | |||||
| | | | | | | | | | | | | | | | | |
| NET LOAN (CHARGE-OFFS) RECOVERIES | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 59 | $ | 54 | $ | 216 | $ | (69) | $ | (105) | | |||||
| Commercial installment | | 12 | | 25 | | 53 | | (24) | | (7) | | |||||
| Residential real estate | | 6 | | 76 | | 8 | | 13 | | 88 | | |||||
| Consumer installment | | (45) | | (60) | | (133) | | (113) | | (49) | | |||||
| Total, net | $ | 32 | $ | 95 | $ | 144 | $ | (193) | $ | (73) | | |||||
| | | | | | | | | | | | | | | | | |
| Net (recoveries) charge-offs (QTD annualized)/average loans | | — | % | | (0.01) | % | | (0.02) | % | | 0.03 | % | | 0.01 | % | |
| Net (recoveries) charge-offs (YTD annualized)/average loans | | (0.01) | | (0.01) | | 0.01 | | 0.02 | | 0.02 | | |||||
| | | | | | | | | | | | | | | | | |
| DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | | | | | | | | | | | | | | | | |
| 30-89 Days delinquent | | 0.09 | % | | 0.22 | % | | 0.31 | % | | 0.09 | % | | 0.13 | % | |
| 90+ Days delinquent and still accruing | | 0.03 | | 0.03 | | 0.01 | | 0.02 | | 0.02 | | |||||
| Total accruing delinquent loans | | 0.12 | | 0.25 | | 0.32 | | 0.12 | | 0.15 | | |||||
| Non-accruing loans | | 0.29 | | 0.35 | | 0.40 | | 0.48 | | 0.54 | | |||||
| Total delinquent and non-accruing loans | | 0.41 | % | | 0.60 | % | | 0.72 | % | | 0.60 | % | | 0.69 | % |
H
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | |||||||||||||
| | | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | ||||||
| (in thousands) | | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | ||||||
| Net income | | | | $ | 10,503 | | $ | 9,112 | | $ | 9,766 | | $ | 11,028 | | $ | 9,025 |
| Non-core items: | | | | | | | | | | | | | | | | | |
| Gain on sale of securities, net | | | | — | | (9) | | (890) | | (1,930) | | (50) | |||||
| Loss (gain) on sale of premises and equipment, net | | | | 10 | | (75) | | 515 | | (146) | | 1 | |||||
| Loss on debt extinguishment | | | | — | | — | | 1,083 | | 1,768 | | — | |||||
| Acquisition, conversion and other expenses | | | | — | | 325 | | (92) | | 318 | | 552 | |||||
| Income tax expense ^(1)^ | | | | (2) | | (56) | | (144) | | (2) | | (119) | |||||
| Total non-core items | | | | | 8 | | | 185 | | | 472 | | | 8 | | | 384 |
| Core earnings ^(2)^ | (A) | | $ | 10,511 | | $ | 9,297 | | $ | 10,238 | | $ | 11,036 | | $ | 9,409 | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | (B) | | $ | 26,519 | | $ | 24,298 | | $ | 23,815 | | $ | 25,582 | | $ | 22,754 | |
| Non-interest income | | | | 8,961 | | 9,309 | | 11,158 | | 11,350 | | 9,505 | |||||
| Total Revenue | | | | 35,480 | | 33,607 | | 34,973 | | 36,932 | | 32,259 | |||||
| Gain on sale of securities, net | | | | — | | (9) | | (890) | | (1,930) | | (50) | |||||
| Total core revenue ^(2)^ | (C) | | $ | 35,480 | | $ | 33,598 | | $ | 34,083 | | $ | 35,002 | | $ | 32,209 | |
| | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | 21,700 | | 21,886 | | 22,921 | | 23,372 | | 21,724 | |||||
| Non-core expenses: | | | | | | | | | | | | | | | | | |
| (Loss) gain on sale of premises and equipment, net | | | | (10) | | 75 | | (515) | | 146 | | (1) | |||||
| Loss on debt extinguishment | | | | — | | — | | (1,083) | | (1,768) | | — | |||||
| Acquisition, conversion and other expenses | | | | — | | (325) | | 92 | | (318) | | (552) | |||||
| Total non-core expenses | | | | | (10) | | | (250) | | | (1,506) | | | (1,940) | | | (553) |
| Core non-interest expense ^(2)^ | (D) | | $ | 21,690 | | $ | 21,636 | | $ | 21,415 | | $ | 21,432 | | $ | 21,171 | |
| | | | | | | | | | | | | | | | | | |
| Total revenue | | | | | 35,480 | | | 33,607 | | | 34,973 | | | 36,932 | | | 32,259 |
| Total non-interest expense | | | | | 21,700 | | | 21,886 | | | 22,921 | | | 23,372 | | | 21,724 |
| Pre-tax, pre-provision net revenue | | | | $ | 13,780 | | $ | 11,721 | | $ | 12,052 | | $ | 13,560 | | $ | 10,535 |
| | | | | | | | | | | | | | | | | | |
| Core revenue^(2)^ | | | | | 35,480 | | | 33,598 | | | 34,083 | | | 35,002 | | | 32,209 |
| Core non-interest expense^(2)^ | | | | | 21,690 | | | 21,636 | | | 21,415 | | | 21,432 | | | 21,171 |
| Core pre-tax, pre-provision net revenue^(2)^ | | (U) | | $ | 13,790 | | $ | 11,962 | | $ | 12,668 | | $ | 13,570 | | $ | 11,038 |
| | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | ||||||||||
| Average earning assets | (E) | | $ | 3,372 | | $ | 3,386 | | $ | 3,440 | | $ | 3,412 | | $ | 3,398 | |
| Average paycheck protection program (PPP) loans | | (R) | | | 1 | | | 3 | | | 15 | | | 46 | | | 77 |
| Average earning assets, excluding PPP loans | | (S) | | | 3,371 | | | 3,383 | | | 3,425 | | | 3,366 | | | 3,321 |
| Average assets | (F) | | 3,685 | | 3,712 | | 3,764 | | 3,764 | | 3,746 | ||||||
| Average shareholders' equity | (G) | | 398 | | 416 | | 423 | | 421 | | 413 | ||||||
| Average tangible shareholders' equity ^(2) (3)^ | (H) | | 272 | | 290 | | 297 | | 295 | | 286 | ||||||
| Tangible shareholders' equity, period-end ^(2) (3)^ | (I) | | 268 | | 281 | | 298 | | 292 | | 287 | ||||||
| Tangible assets, period-end ^(2) (3)^ | (J) | | 3,587 | | 3,566 | | 3,583 | | 3,612 | | 3,512 | ||||||
| | | | | | | | | | | | | | | | | | |
I
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | |||||||
| (in thousands) | | | | 2022 | | 2022 | | 2021 | | 2021 | | 2021 | **** | |||||
| Common shares outstanding, period-end | (K) | | 15,018 | | 15,013 | | 15,001 | | 14,987 | | 14,972 | | ||||||
| Average diluted shares outstanding | (L) | | 15,077 | | 15,102 | | 15,075 | | 15,051 | | 15,042 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Core earnings per share, diluted ^(2)^ | (A/L) | | $ | 0.70 | | $ | 0.62 | | $ | 0.68 | | $ | 0.73 | | $ | 0.63 | | |
| Tangible book value per share, period-end ^(2)^ | (I/K) | | 17.83 | | 18.72 | | 19.86 | | 19.48 | | 19.17 | | ||||||
| Securities adjustment, net of tax ^(1) (4)^ | (M) | | (38,304) | | (20,225) | | 1,985 | | 4,398 | | 7,237 | | ||||||
| Tangible book value per share, excluding securities adjustment ^(2) (4)^ | (I+M)/K | | 20.38 | | 20.07 | | 19.73 | | 19.19 | | 18.69 | | ||||||
| Tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | | 7.47 | | 7.88 | | 8.32 | | 8.08 | | 8.17 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Performance ratios ^(5)^ | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | 1.14 | % | | 1.00 | % | | 1.02 | % | | 1.16 | % | | 0.97 | % | |
| Core return on assets ^(2)^ | (A/F) | | 1.14 | | 1.02 | | 1.07 | | 1.16 | | 1.01 | | ||||||
| Pre-tax, pre-provision return on assets | | | | | 1.50 | | | 1.28 | | | 1.26 | | | 1.43 | | | 1.13 | |
| Core pre-tax, pre-provision return on assets^(2)^ | | (U/F) | | | 1.50 | | | 1.31 | | | 1.33 | | | 1.43 | | | 1.18 | |
| GAAP return on equity | | | | 10.58 | | 8.89 | | 9.16 | | 10.38 | | 8.77 | | |||||
| Core return on equity ^(2)^ | (A/G) | | 10.59 | | 9.07 | | 9.60 | | 10.39 | | 9.14 | | ||||||
| Return on tangible equity | | | | | 15.74 | | | 13.01 | | | 13.30 | | | 15.08 | | | 12.91 | |
| Core return on tangible equity ^(1) (2)^ | (A+Q)/H | | 15.76 | | 13.27 | | 13.93 | | 15.09 | | 13.45 | | ||||||
| Efficiency ratio ^(2) (6)^ | (D-O-Q)/(C+N) | | 59.25 | | 62.40 | | 60.74 | | 59.18 | | 63.45 | | ||||||
| Net interest margin | (B+P)/E | | 3.19 | | 2.95 | | 2.79 | | 3.02 | | 2.74 | | ||||||
| Core net interest margin^(2) (7)^ | | (B+P-T)/S | | | 3.19 | | | 2.93 | | | 2.69 | | | 2.75 | | | 2.67 | |
| | | | | | | | | | | | | | | | | | | |
| Supplementary data (in thousands) | | | | | | | | | | | | | | | | | | |
| Taxable equivalent adjustment for efficiency ratio | (N) | | $ | 491 | | $ | 476 | | $ | 573 | | $ | 576 | | $ | 586 | | |
| Franchise taxes included in non-interest expense | (O) | | 144 | | 141 | | 132 | | 143 | | 128 | | ||||||
| Tax equivalent adjustment for net interest margin | (P) | | 334 | | 320 | | 369 | | 421 | | 430 | | ||||||
| Intangible amortization | (Q) | | 233 | | 233 | | 233 | | 233 | | 233 | | ||||||
| Interest and fees on PPP loans | (T) | | 27 | | 196 | | 981 | | 2,690 | | 1,064 | |
| (1) | Assumes a marginal tax rate of 23.41% for the first and second quarter of 2022 and fourth quarter of 2021 and 23.71% for the first three quarters of 2021. |
|---|---|
| (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) | Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis. |
| --- | --- |
| (7) | Core net interest margin excludes Paycheck Protection Program loans. |
| --- | --- |
J