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): April 18, 2024
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 April 18, 2024, Bar Harbor Bankshares, or the Company, issued a press release reporting our financial results for the quarter ended March 31, 2024, or the Earnings Release. The full text of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, or this Report, and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished under this Item 2.02 of this Report and the exhibit attached hereto are deemed to be “furnished” and shall not be deemed “filed” for the purpose of Section 18 of the Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
On April 18, 2024, we announced in the Earnings Release that our Board of Directors (i) declared a quarterly cash dividend of $0.30 per share to shareholders of record at the close of business on May 16, 2024 and will be payable on June 14, 2024 and (ii) authorized a repurchase plan, or the Plan, of up to 5% of our outstanding common stock, representing approximately 761,000 shares, as of March 31, 2024.
The disclosure contained in Item 2.02 of this Report, including the Earnings Release furnished as Exhibit 99.1 to this Report, is incorporated into this Item 7.01 by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished under this Item 7.01 of this Report and the exhibit attached hereto are deemed to be “furnished” and shall not be deemed “filed” for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.
Item 8.01Other Events
On April 18, 2024, we announced that our Board of Directors authorized the Plan. The Plan does not obligate the repurchase of any particular amount of the Company’s common stock, and may be suspended or discontinued at any time without notice. Share repurchases, if any, will be made from time to time in the open market, through block trades, or otherwise, in private negotiated transactions. The timing and amount of any share repurchases will depend on a variety of factors, including, among others, securities law restrictions (including limitations provided in Rules 10b-18 and 10b5-1 under the Exchange Act, the trading price of the Company's common stock, other regulatory requirements, potential alternative uses for capital, and the Company's financial performance. The Plan does not require the Company to acquire any particular amount of common stock, and the Plan may be modified or suspended at any time at our Board of Directors’ discretion.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | |
|---|---|---|
| Exhibit No. | **** | Description |
| | | |
| 99.1 | | Press Release dated April 18, 2024 |
| 104 | | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document |
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 | |
| | | |
| April 18, 2024 | By: | /s/ Curtis C. Simard |
| | | Curtis C. Simard |
| | | President and CEO |
Exhibit 99.1
Bar Harbor Bankshares Reports First Quarter 2024 Results; Declares Increased Dividend; Announces Share Repurchase Plan
BAR HARBOR, MAINE – April 18, 2024 - Bar Harbor Bankshares (NYSE American: BHB) (the “Company”) reported first quarter 2024 GAAP and core (Non-GAAP) net income of $10.1 million or $0.66 per diluted share compared to $13.0 million or $0.86 per diluted share in the same quarter of 2023.
FIRST QUARTER 2024 HIGHLIGHTS
| • | Return on assets of 1.03% |
|---|---|
| • | Commercial loan growth of 7% annualized |
| --- | --- |
| • | Net interest margin of 3.14% |
| --- | --- |
| • | Non-accruing loans to total loans ratio of 0.23% |
| --- | --- |
Bar Harbor Bankshares’ President and Chief Executive Officer, Curtis C. Simard, stated, “We are pleased to announce our financial results for the first quarter, as we deliver stable earnings which are in line with expectations. We continue to see yield expansion across all earning asset classes. Our liquidity and capital levels remain robust, and our credit metrics are strong with nominal charge-offs. Despite an uncertain economic environment, our performance in the first quarter reflects the strength of our balance sheet and our teams as we execute on our strategy to grow profitably while continuing to conservatively sustain the level of our allowance for credit losses. Our Bar Harbor Wealth Management division combined with our brokerage services crossed a milestone as assets under management grew above $3.0 billion. The Company continues to build long-term shareholder value which has once again enabled us to increase our dividend per share for the seventh straight year by 7% over last year’s dividend amount, and approve our annual resolution for a stock buyback program of up to 5% of the total outstanding shares.”
DIVIDEND DECLARED AND STOCK REPURCHASE PLAN APPROVED
The Board of Directors of the Company (the “Board”) voted to declare a cash dividend of $0.30 per share to shareholders at the close of business on May 16, 2024 payable on June 14, 2024. This dividend equates to a 4.53% annualized yield based on the $26.48 closing share price of the Company’s common stock on March 28, 2024, the last trading day of the first quarter 2024. Additionally, the Board authorized the repurchase of up to 5% of the Company’s outstanding common stock, representing approximately 761,000 shares as of March 31, 2024 under a share repurchase plan (the “Plan”). The Plan is authorized to last no longer than twelve months.
FINANCIAL CONDITION (March 31, 2024 compared to December 31, 2023)
Total assets were $4.0 billion at the end of both the first quarter of 2024 and the fourth quarter of 2023, primarily due to loan growth offset by lower cash and security balances during the quarter.
Total cash and cash equivalents were $76.2 million, compared to $94.8 million at year-end 2023. Interest-earning cash held with other banks totaled $45.3 million compared to $52.6 million at year-end 2023 and yielded 5.88% and 6.42%, respectively.
Total loans grew 2%, on an annualized basis and remained at $3 billion at the end of both the first quarter 2024 and fourth quarter 2023. Commercial loans grew by $35.1 million or 7% annualized primarily driven by $22.7 million or 6% increase in commercial real estate and $12.4 million or 12% increase in commercial and industrial growth. Residential loans decreased by $16.7 million or 8% compared to the fourth quarter 2023, primarily due to continued lower demand for prevailing mortgage rates and sales into the secondary market. Tax exempt loans decreased by $4.7 million or 31% driven by payoffs within the first quarter of 2024.
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Securities decreased to $527.6 million compared to $534.6 million at year-end 2023 driven by $485 thousand in net amortization, and $7.8 million of amortizing securities pay-downs offset by security purchases of $4.8 million. Fair value adjustments decreased the security portfolio by $64.9 million at quarter-end compared to $62.4 million at year-end. The year to date weighted average yield of the securities portfolio was 4.02% compared to 3.85% at year-end primarily due to a run-off of lower coupon fixed-rate securities. As of quarter-end and year-end, our securities portfolio had an average life of nine years with an effective duration of five years and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.
The allowance for credit losses remained flat at $28.4 million at the end of the first quarter 2024 compared to the end of the fourth quarter 2023. Our allowance for credit losses continues to be driven by a combination of portfolio loan growth, nominal credit movement and general macroeconomic trends. Non-accruing loans increased during the first quarter 2024 to $6.9 million from $5.5 million in the fourth quarter 2023, but declined on a year-over-year basis. Charge-offs and specific reserves on non-accruing loans remain nominal, with these non-accruing relationships supported by relatively strong collateral values.
Total deposits remained at $3.1 billion at the end of the first quarter 2024 and the end of fourth quarter 2023. The $58.4 million decrease in interest bearing demand deposits and the $25.2 million decrease in non-interest bearing demand deposits in the first quarter 2024 were offset by an increase in time deposits of $76.9 million primarily due to remix in higher yielding deposit categories as customers are anticipating rates to decrease and are maximizing their own returns. Brokered certificate of deposit accounts (“CDs”) increased by $55 million, and senior borrowings remained relatively flat at $269.4 million in the first quarter 2024 compared to $271.0 million at the end of the fourth quarter 2023.
The Company's book value per share was $28.64 as of March 31, 2024 compared to $28.48 as of December 31, 2023. Unrealized losses on securities, net of taxes, reduced book value per share by $3.26 and $3.14 at the end of those respective periods. Tangible book value per share (non-GAAP measure) was $20.48 at the end of the first quarter 2024, compared to $20.28 at the end of the fourth quarter 2023.
RE SULTS OF OPERATIONS (March 31, 2024 compared to March 31, 2023)
Net interest margin was 3.14% compared to 3.54% in the first quarter 2023. The decrease was primarily driven by a higher cost of funds offset by rising asset yields in the first quarter of 2024. The yield on loans grew 49 basis points to 5.31% in the first quarter 2024, up from 4.82% in the same quarter of 2023. Costs of interest-bearing liabilities increased to 2.48% from 1.39% in the first quarter 2023 showing evolution of the market pricing amongst interest-bearing demand deposits, money market accounts and time deposits as customers are seeking out more competitive rates. We continue to experience a shift in deposit composition from non-maturity deposits to CDs. Cost of borrowing decreased $944 thousand or 22.5% in the first quarter of 2024 compared to the first quarter of 2023 driven by wholesale borrowings in the first quarter 2024 decreased $68.8 million to $269.4 million from $338.2 million in the same quarter of 2023.
Total interest and dividend income increased by $5.4 million or 13.4% to $45.8 million compared to $40.4 million in the first quarter 2023 primarily driven by the repricing of adjustable loans and originations of higher fixed rate loans within the commercial portfolio. The yield on commercial real estate loans grew 39 basis points to 5.47% at the end of the first quarter 2024 from 5.08% in the first quarter of 2023. Commercial and industrial yield grew 79 basis points to yield 6.68% at the end of the first quarter 2024 compared to 5.89% at the end of the first quarter 2023. Increases in yields were driven by the current rate environment.
The provision for credit losses was $289 thousand compared to $798 thousand in the first quarter of 2023 as net charge-offs to total loans continue to remain nominal. Credit quality continues to be strong as non-accruing loans to total loans declined 3 basis points to 0.23% at the end of the first quarter 2024 compared to 0.26% in the first quarter 2023. Total delinquent and non-accruing loans to total loans declined 15 basis points from 0.52% at the end of the first quarter 2023 to 0.37% in the first quarter 2024.
Non-interest income was $8.6 million in the first quarter 2024 compared to $9.2 million in the same quarter 2023 primarily driven by elevated BOLI income of $622 thousand related to one-time death benefits, and customer derivative income $132 thousand at the end of the first quarter 2023. Wealth management income grew 3% to $3.7 million compared to $3.6 million in the first quarter in 2023.
Non-interest expense was $23.7 million in the first quarter 2024 compared to $22.7 million in the first quarter 2023 driven by salary and benefits, marketing and other expenses. Salary and benefit expenses increased 4% or $477 thousand from the comparative quarter driven by cost of living increases in the first quarter 2024. Marketing expenses increased to $567 thousand compared to $409 thousand in the first quarter of 2023. Other expenses increased to $4.4 million from $4.1 million in the first quarter of 2023 primarily due to increases in assessments, software expenses, and debit card replacement costs in the first quarter of 2024.
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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 Bank & Trust 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
All statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this release the words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” and “potential,” and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements relating to Company’s balance sheet management, our credit trends, our overall credit performance, and the Company’s strategic plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) deterioration in the financial performance and/or condition of borrowers of Bar Harbor Bank & Trust (the “Bank”), including as a result of the negative impact of inflationary pressures on our customers and their businesses resulting in significant increases in credit losses and provisions for those losses; (2) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (3) increased levels of other real estate owned, primarily as a result of foreclosures; (4) the impact of liquidity needs on our results of operations and financial condition; (5) competition from financial institutions and other financial service providers; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand or loan pricing; (8) adverse conditions in the national or local economies including in our markets throughout Northern New England; (9) changes in consumer spending, borrowing and saving habits; (10) the emergence and effects related to a future pandemic, epidemic or outbreak of an infectious disease, including actions taken by governmental officials to curb the spread of such an infectious disease, and the resulting impact on general economic and financial market conditions and on the Company’s and our customers' business, results of operations, asset quality and financial condition; (11) the effects of civil unrest, international hostilities or other geopolitical events, including the war in Ukraine and recent hostilities in the Middle East; (12) lack of strategic growth opportunities or our failure to execute on available opportunities; (13) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits; (14) our ability to effectively manage problem credits; (15) our ability to successfully implement efficiency initiatives on time and with the results projected; (16) our ability to successfully develop and market new products and implement technology effectively; (17) the impact of negative developments in the financial industry and United States and global capital and credit markets; (18) our ability to retain executive officers and key employees and their customer and community relationships; (19) our ability to adapt to technological changes; (20) risks associated with litigation, including reputational and financial risks and the applicability of insurance coverage; (21) the vulnerability of the Bank’s computer and information technology systems and networks, and the systems and networks of third parties with whom the Company or the Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches and interruptions; (22) changes in the reliability of our vendors, internal control systems or information systems; (23) ongoing competition in the labor markets and increased employee turnover; (24) the potential impact of climate change; (25) our ability to comply with various governmental and regulatory requirements applicable to financial institutions; (26) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments; (27) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; (28) adverse impacts (including costs, fines, reputational harm, or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions; and (29) general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate. Additional factors which could affect the forward-looking statements can be found in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company’s ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.
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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. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. 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. 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 | **** | |||||||||||||
| | **** | Mar 31, | **** | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| | | 2024 | | | 2023 | | 2023 | | 2023 | | 2023 | |||||
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Net earnings, diluted | $ | 0.66 | $ | 0.65 | $ | 0.73 | $ | 0.71 | $ | 0.86 | | |||||
| Core earnings, diluted ^(1)^ | | 0.66 | | 0.68 | | 0.73 | | 0.71 | | 0.86 | | |||||
| Total book value | | 28.64 | | 28.48 | | 26.67 | | 27.12 | | 27.00 | | |||||
| Tangible book value ^(1)^ | | 20.48 | | 20.28 | | 18.45 | | 18.88 | | 18.74 | | |||||
| Market price at period end | | 26.48 | | 29.36 | | 23.63 | | 24.64 | | 26.45 | | |||||
| Dividends | | 0.28 | | 0.28 | | 0.28 | | 0.28 | | 0.26 | | |||||
| | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS ^(2)^ | | | | | | | | | | | | | | | | |
| Return on assets | | 1.03 | % | | 1.00 | % | | 1.11 | % | | 1.10 | % | | 1.36 | % | |
| Core return on assets ^(1)^ | | 1.03 | | 1.04 | | 1.11 | | 1.09 | | 1.36 | | |||||
| Pre-tax, pre-provision return on assets | | | 1.32 | | | 1.34 | | | 1.49 | | | 1.47 | | | 1.81 | |
| Core pre-tax, pre-provision return on assets^(1)^ | | | 1.32 | | | 1.39 | | | 1.49 | | | 1.46 | | | 1.81 | |
| Return on equity | | 9.31 | | 9.43 | | 10.72 | | 10.49 | | 12.96 | | |||||
| Core return on equity ^(1)^ | | 9.32 | | 9.82 | | 10.72 | | 10.42 | | 12.94 | | |||||
| Return on tangible equity | | | 13.25 | | | 13.65 | | | 15.65 | | | 15.28 | | | 18.97 | |
| Core return on tangible equity ^(1)^ | | 13.26 | | 14.21 | | 15.65 | | 15.19 | | 18.94 | | |||||
| Net interest margin, fully taxable equivalent ^(1) (3)^ | | 3.14 | | 3.17 | | 3.18 | | 3.22 | | 3.54 | | |||||
| Efficiency ratio ^(1)^ | | 62.91 | | 61.38 | | 58.59 | | 60.25 | | 54.72 | | |||||
| | | | | | | | | | | | | | | | | |
| FINANCIAL DATA (In millions) | | | | | | | | | | | | | | | | |
| Total assets | $ | 3,959 | $ | 3,971 | $ | 3,984 | $ | 4,029 | $ | 3,928 | | |||||
| Total earning assets ^(4)^ | | 3,663 | | 3,664 | | 3,687 | | 3,716 | | 3,628 | | |||||
| Total investments | | 538 | | 547 | | 524 | | 556 | | 573 | | |||||
| Total loans | | 3,012 | | 2,999 | | 2,993 | | 3,007 | | 2,944 | | |||||
| Allowance for credit losses | | 28 | | 28 | | 28 | | 27 | | 27 | | |||||
| Total goodwill and intangible assets | | 124 | | 124 | | 125 | | 125 | | 125 | | |||||
| Total deposits | | 3,127 | | 3,141 | | 3,140 | | 3,090 | | 3,054 | | |||||
| Total shareholders' equity | | 436 | | 432 | | 404 | | 411 | | 408 | | |||||
| Net income | | 10 | | 10 | | 11 | | 11 | | 13 | | |||||
| Core earnings^(1)^ | | 10 | | 10 | | 11 | | 11 | | 13 | | |||||
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY AND CONDITION RATIOS | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries)^(5)^/average loans | | 0.01 | % | | 0.07 | % | | — | % | | — | % | | 0.01 | % | |
| Allowance for credit losses/total loans | | 0.94 | | 0.94 | | 0.94 | | 0.91 | | 0.90 | | |||||
| Loans/deposits | | 96 | | 95 | | 95 | | 97 | | 96 | | |||||
| Shareholders' equity to total assets | | 11.01 | | 10.88 | | 10.15 | | 10.20 | | 10.40 | | |||||
| Tangible shareholders' equity to tangible assets | | 8.13 | | 8.00 | | 7.25 | | 7.32 | | 7.45 | |
| (1) | Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables 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) | Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost. |
| --- | --- |
| (5) | Current quarter annualized. |
| --- | --- |
A
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| (in thousands) | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | |||||
| Assets | | | | | | ||||||||||
| Cash and due from banks | | $ | 30,770 | | $ | 42,221 | | $ | 41,210 | | $ | 46,532 | | $ | 37,769 |
| Interest-earning deposits with other banks | | 45,449 | | 52,621 | | 81,606 | | 77,253 | | 44,933 | |||||
| Total cash and cash equivalents | | 76,219 | | 94,842 | | 122,816 | | 123,785 | | 82,702 | |||||
| | | | | | | | | | | | | | | | |
| Securities available for sale | | 527,603 | | 534,574 | | 509,453 | | 538,178 | | 557,040 | |||||
| Federal Home Loan Bank stock | | 9,960 | | 12,788 | | 14,834 | | 17,784 | | 15,718 | |||||
| Total securities | | 537,563 | | 547,362 | | 524,287 | | 555,962 | | 572,758 | |||||
| | | | | | | | | | | | | | | | |
| Loans held for sale | | | 3,137 | | | 2,189 | | | 2,016 | | | 3,669 | | | 463 |
| | | | | | | | | | | | | | | | |
| Total loans | | 3,011,672 | | 2,999,049 | | 2,992,791 | | 3,007,480 | | 2,944,005 | |||||
| Less: Allowance for credit losses | | (28,355) | | (28,142) | | (28,011) | | (27,362) | | (26,607) | |||||
| Net loans | | 2,983,317 | | 2,970,907 | | 2,964,780 | | 2,980,118 | | 2,917,398 | |||||
| | | | | | | | | | | | | | | | |
| Premises and equipment, net | | 47,849 | | 48,287 | | 47,790 | | 47,412 | | 47,549 | |||||
| Other real estate owned | | — | | — | | — | | — | | — | |||||
| Goodwill | | 119,477 | | 119,477 | | 119,477 | | 119,477 | | 119,477 | |||||
| Other intangible assets | | 4,637 | | 4,869 | | 5,102 | | 5,335 | | 5,568 | |||||
| Cash surrender value of bank-owned life insurance | | 80,642 | | 80,037 | | 79,469 | | 78,967 | | 78,436 | |||||
| Deferred tax asset, net | | 23,849 | | 22,979 | | 28,328 | | 24,181 | | 22,858 | |||||
| Other assets | | 82,285 | | 79,936 | | 89,876 | | 89,641 | | 81,269 | |||||
| Total assets | | $ | 3,958,975 | | $ | 3,970,885 | | $ | 3,983,941 | | $ | 4,028,547 | | $ | 3,928,478 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Demand and other non-interest bearing deposits | | $ | 544,495 | | $ | 569,714 | | $ | 618,421 | | $ | 602,667 | | $ | 636,710 |
| Interest-bearing demand deposits | | 888,591 | | 946,978 | | 929,481 | | 911,488 | | 908,483 | |||||
| Savings deposits | | 551,493 | | 553,963 | | 572,271 | | 588,769 | | 628,798 | |||||
| Money market deposits | | 365,289 | | 370,242 | | 361,839 | | 351,762 | | 475,577 | |||||
| Time deposits | | 777,208 | | 700,260 | | 658,482 | | 635,559 | | 404,246 | |||||
| Total deposits | | 3,127,076 | | 3,141,157 | | 3,140,494 | | 3,090,245 | | 3,053,814 | |||||
| | | | | | | | | | | | | | | | |
| Senior borrowings | | 269,437 | | 271,044 | | 307,070 | | 398,972 | | 338,244 | |||||
| Subordinated borrowings | | 60,501 | | 60,461 | | 60,422 | | 60,371 | | 60,330 | |||||
| Total borrowings | | 329,938 | | 331,505 | | 367,492 | | 459,343 | | 398,574 | |||||
| | | | | | | | | | | | | | | | |
| Other liabilities | | 66,247 | | 66,164 | | 71,747 | | 68,243 | | 67,680 | |||||
| Total liabilities | | 3,523,261 | | 3,538,826 | | 3,579,733 | | 3,617,831 | | 3,520,068 | |||||
| | | | | | | | | | | | | | | | |
| Total shareholders’ equity | | 435,714 | | 432,059 | | 404,208 | | 410,716 | | 408,410 | |||||
| Total liabilities and shareholders’ equity | | $ | 3,958,975 | | $ | 3,970,885 | | $ | 3,983,941 | | $ | 4,028,547 | | $ | 3,928,478 |
| | | | | | | | | | | | | | | | |
| Net shares outstanding | | 15,212 | | 15,172 | | 15,156 | | 15,144 | | 15,124 |
B
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | |
| | | | | | | | | | | | | | | | | | Growth % | |
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Quarter | ||||||
| (in thousands) | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | | to Date | ||||||
| Commercial real estate | | $ | 1,574,802 | | $ | 1,552,061 | | $ | 1,548,835 | | $ | 1,551,748 | | $ | 1,519,219 | 6 | % | |
| Commercial and industrial | | 412,567 | | 400,169 | | 391,347 | | 388,430 | | 364,315 | 12 | |||||||
| Total commercial loans | | 1,987,369 | | 1,952,230 | | 1,940,182 | | 1,940,178 | | 1,883,534 | 7 | |||||||
| | | | | | | | | | | | | | | | | | | |
| Residential real estate | | 873,213 | | 889,904 | | 896,757 | | 907,741 | | 906,059 | (8) | |||||||
| Consumer | | 95,838 | | 97,001 | | 95,160 | | 96,947 | | 98,616 | (5) | |||||||
| Tax exempt and other | | 55,252 | | 59,914 | | 60,692 | | 62,614 | | 55,796 | (31) | |||||||
| Total loans | | $ | 3,011,672 | | $ | 2,999,049 | | $ | 2,992,791 | | $ | 3,007,480 | | $ | 2,944,005 | 2 | % |
DEPOSIT ANALYSIS
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | |
| | | | | | | | | | | | | | | | | | Growth % | |
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Quarter | ||||||
| (in thousands) | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | | to Date | ||||||
| Demand | | $ | 544,495 | | $ | 569,714 | | $ | 618,421 | | $ | 602,667 | | $ | 636,710 | (18) | % | |
| Interest-bearing demand deposits | | 888,591 | | 946,978 | | 929,481 | | 911,488 | | 908,483 | (25) | |||||||
| Savings | | 551,493 | | 553,963 | | 572,271 | | 588,769 | | 628,798 | (2) | |||||||
| Money market | | 365,289 | | 370,242 | | 361,839 | | 351,762 | | 475,577 | (5) | |||||||
| Total non-maturity deposits | | 2,349,868 | | 2,440,897 | | 2,482,012 | | 2,454,686 | | 2,649,568 | (15) | |||||||
| Total time deposits | | 777,208 | | 700,260 | | 658,482 | | 635,559 | | 404,246 | 44 | |||||||
| Total deposits | | $ | 3,127,076 | | $ | 3,141,157 | | $ | 3,140,494 | | $ | 3,090,245 | | $ | 3,053,814 | (2) | % |
C
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Three Months Ended | ||||
| | | March 31, | ||||
| (in thousands, except per share data) | **** | 2024 | **** | 2023 | ||
| Interest and dividend income | | | ||||
| Loans | | $ | 39,470 | | $ | 34,560 |
| Securities and other | | 6,353 | | 5,791 | ||
| Total interest and dividend income | | 45,823 | | 40,351 | ||
| Interest expense | | | ||||
| Deposits | | 14,532 | | 5,265 | ||
| Borrowings | | 3,236 | | 4,180 | ||
| Total interest expense | | 17,768 | | 9,445 | ||
| Net interest income | | 28,055 | | 30,906 | ||
| Provision for credit losses | | 289 | | 798 | ||
| Net interest income after provision for credit losses | | 27,766 | | 30,108 | ||
| Non-interest income | | | ||||
| Trust and investment management fee income | | 3,670 | | 3,555 | ||
| Customer service fees | | 3,710 | | 3,677 | ||
| Gain on sales of securities, net | | — | | 34 | ||
| Mortgage banking income | | | 257 | | | 279 |
| Bank-owned life insurance income | | 561 | | 1,148 | ||
| Customer derivative income | | — | | 132 | ||
| Other income | | 388 | | 359 | ||
| Total non-interest income | | 8,586 | | 9,184 | ||
| Non-interest expense | | | ||||
| Salaries and employee benefits | | 13,248 | | 12,771 | ||
| Occupancy and equipment | | 4,473 | | 4,414 | ||
| Gain on sales of premises and equipment, net | | (15) | | (13) | ||
| Outside services | | 338 | | 356 | ||
| Professional services | | 400 | | 426 | ||
| Communication | | 189 | | 162 | ||
| Marketing | | 567 | | 409 | ||
| Amortization of intangible assets | | 233 | | 233 | ||
| Acquisition, conversion and other expenses | | 20 | | 20 | ||
| Provision for unfunded commitments | | | (185) | | (175) | |
| Other expenses | | 4,420 | | 4,101 | ||
| Total non-interest expense | | 23,688 | | 22,704 | ||
| Income before income taxes | | 12,664 | | 16,588 | ||
| Income tax expense | | 2,569 | | 3,576 | ||
| Net income | | $ | 10,095 | | $ | 13,012 |
| | | | | | | |
| Earnings per share: | | | ||||
| Basic | | $ | 0.66 | | $ | 0.86 |
| Diluted | | 0.66 | | 0.86 | ||
| | | | | | | |
| Weighted average shares outstanding: | | | ||||
| Basic | | 15,198 | | 15,110 | ||
| Diluted | | 15,270 | | 15,190 |
D
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| (in thousands, except per share data) | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | |||||
| Interest and dividend income | | | | | | ||||||||||
| Loans | | $ | 39,470 | | $ | 39,531 | | $ | 38,412 | | $ | 36,917 | | $ | 34,560 |
| Securities and other | | 6,353 | | | 6,284 | | | 6,723 | | | 5,964 | | | 5,791 | |
| Total interest and dividend income | | 45,823 | | | 45,815 | | | 45,135 | | | 42,881 | | | 40,351 | |
| Interest expense | | | | | | | | | | ||||||
| Deposits | | 14,532 | | | 12,962 | | | 11,415 | | | 8,590 | | | 5,265 | |
| Borrowings | | 3,236 | | | 4,060 | | | 4,534 | | | 5,501 | | | 4,180 | |
| Total interest expense | | 17,768 | | | 17,022 | | | 15,949 | | | 14,091 | | | 9,445 | |
| Net interest income | | 28,055 | | | 28,793 | | | 29,186 | | | 28,790 | | | 30,906 | |
| Provision for credit losses | | 289 | | | 687 | | | 673 | | | 750 | | | 798 | |
| Net interest income after provision for credit losses | | 27,766 | | | 28,106 | | | 28,513 | | | 28,040 | | | 30,108 | |
| Non-interest income | | | | | | | | | | ||||||
| Trust and investment management fee income | | 3,670 | | | 3,401 | | | 3,522 | | | 3,805 | | | 3,555 | |
| Customer service fees | | 3,710 | | | 3,791 | | | 3,926 | | | 3,774 | | | 3,677 | |
| Gain on sales of securities, net | | — | | | — | | | — | | | — | | | 34 | |
| Mortgage banking income | | | 257 | | | 515 | | | 415 | | | 378 | | | 279 |
| Bank-owned life insurance income | | 561 | | | 533 | | | 515 | | | 503 | | | 1,148 | |
| Customer derivative income | | — | | | 151 | | | 43 | | | 83 | | | 132 | |
| Other income | | 388 | | | 459 | | | 394 | | | 437 | | | 359 | |
| Total non-interest income | | 8,586 | | | 8,850 | | | 8,815 | | | 8,980 | | | 9,184 | |
| Non-interest expense | | | | | | | | | | ||||||
| Salaries and employee benefits | | 13,248 | | | 13,511 | | | 13,011 | | | 13,223 | | | 12,771 | |
| Occupancy and equipment | | 4,473 | | | 4,309 | | | 4,469 | | | 4,392 | | | 4,414 | |
| (Gain) loss on sales of premises and equipment, net | | (15) | | | 281 | | | — | | | (86) | | | (13) | |
| Outside services | | 338 | | | 515 | | | 376 | | | 424 | | | 356 | |
| Professional services | | 400 | | | 369 | | | 436 | | | 355 | | | 426 | |
| Communication | | 189 | | | 190 | | | 170 | | | 175 | | | 162 | |
| Marketing | | 567 | | | 485 | | | 326 | | | 476 | | | 409 | |
| Amortization of intangible assets | | 233 | | | 233 | | | 233 | | | 233 | | | 233 | |
| Acquisition, conversion and other expenses | | 20 | | | 263 | | | — | | | — | | | 20 | |
| Provision for unfunded commitments | | | (185) | | | — | | | 45 | | | 45 | | | (175) |
| Other expenses | | 4,420 | | | 4,211 | | | 3,950 | | | 4,155 | | | 4,101 | |
| Total non-interest expense | | 23,688 | | 24,367 | | 23,016 | | 23,392 | | 22,704 | |||||
| Income before income taxes | | 12,664 | | 12,589 | | 14,312 | | 13,628 | | 16,588 | |||||
| Income tax expense | | 2,569 | | | 2,644 | | | 3,208 | | | 2,837 | | | 3,576 | |
| Net income | | $ | 10,095 | | $ | 9,945 | | $ | 11,104 | | $ | 10,791 | | $ | 13,012 |
| | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | ||||||||||
| Basic | | $ | 0.66 | | $ | 0.66 | | $ | 0.73 | | $ | 0.71 | | $ | 0.86 |
| Diluted | | 0.66 | | 0.65 | | 0.73 | | 0.71 | | 0.86 | |||||
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | ||||||||||
| Basic | | 15,198 | | | 15,164 | | | 15,155 | | | 15,139 | | | 15,110 | |
| Diluted | | 15,270 | | | 15,221 | | | 15,196 | | | 15,180 | | | 15,190 |
E
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | **** | ||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** |
| | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | **** |
| Earning assets | | | | | | | | | | | |
| Interest-earning deposits with other banks^^ | | 5.88 | % | 6.42 | % | 5.02 | % | 5.59 | % | 4.28 | % |
| Securities available for sale and FHLB stock | | 4.02 | | 3.85 | | 3.87 | | 3.71 | | 3.66 | |
| Loans: | | | | | | | | | | | |
| Commercial real estate | 5.47 | | 5.46 | | 5.34 | | 5.21 | | 5.08 | | |
| Commercial and industrial | 6.68 | 6.66 | 6.56 | 6.42 | 5.89 | | |||||
| Residential real estate | 4.09 | 3.94 | 3.84 | 3.76 | 3.71 | | |||||
| Consumer | 7.22 | 7.14 | 6.88 | 6.67 | 6.37 | | |||||
| Total loans | 5.31 | 5.24 | 5.11 | 4.99 | 4.82 | | |||||
| Total earning assets | 5.10 | % | 5.02 | % | 4.90 | % | 4.77 | % | 4.61 | % | |
| | | | | | | | | | | | |
| Funding liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Interest-bearing demand deposits | 1.34 | % | 1.33 | % | 1.11 | % | 0.94 | % | 0.51 | % | |
| Savings | 0.63 | 0.48 | 0.42 | 0.37 | 0.30 | | |||||
| Money market | 3.07 | 2.80 | 2.55 | 2.52 | 2.14 | | |||||
| Time deposits | 4.18 | 3.93 | 3.65 | 2.82 | 1.34 | | |||||
| Total interest-bearing deposits | 2.26 | 2.05 | 1.81 | 1.45 | 0.91 | | |||||
| Borrowings | 4.35 | 4.64 | 4.59 | 4.73 | 4.25 | | |||||
| Total interest-bearing liabilities | 2.48 | % | 2.37 | % | 2.19 | % | 1.99 | % | 1.39 | % | |
| | | | | | | | | | | | |
| Net interest spread | 2.62 | 2.65 | 2.71 | 2.78 | 3.22 | | |||||
| Net interest margin, fully taxable equivalent^(1)^ | 3.14 | 3.17 | 3.18 | 3.22 | 3.54 | |
| (1) | Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. |
|---|
F
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | |||||||||||||
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, | |||||
| (in thousands) | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | |||||
| Assets | | | | | | ||||||||||
| Interest-earning deposits with other banks^(1)^ | | $ | 36,608 | | $ | 36,794 | | $ | 70,499 | | $ | 21,440 | | $ | 19,819 |
| Securities available for sale and FHLB stock ^(2)^ | | | 604,658 | | | 608,793 | | | 620,851 | | | 636,088 | | | 643,523 |
| Loans: | | | | | | | | | | | | | | | |
| Commercial real estate | | | 1,558,506 | | | 1,554,961 | | | 1,550,188 | | | 1,536,035 | | | 1,505,681 |
| Commercial and industrial | | 464,762 | | 457,642 | | 439,915 | | 434,384 | | 413,921 | |||||
| Residential real estate | | 884,767 | | 898,147 | | 909,296 | | 911,788 | | 902,348 | |||||
| Consumer | | 96,163 | | 95,193 | | 96,362 | | 97,518 | | 100,124 | |||||
| Total loans ^(3)^ | | 3,004,198 | | 3,005,943 | | 2,995,761 | | 2,979,725 | | 2,922,074 | |||||
| Total earning assets | | 3,645,464 | | 3,651,530 | | 3,687,111 | | 3,637,253 | | 3,585,416 | |||||
| Cash and due from banks | | 29,900 | | 34,741 | | 36,713 | | 32,067 | | 31,556 | |||||
| Allowance for credit losses | | (28,122) | | (28,057) | | (27,473) | | (26,932) | | (25,971) | |||||
| Goodwill and other intangible assets | | 124,225 | | 124,459 | | 124,926 | | 124,926 | | 125,158 | |||||
| Other assets | | 166,538 | | 157,159 | | 162,801 | | 163,388 | | 168,773 | |||||
| Total assets | | $ | 3,938,005 | | $ | 3,939,832 | | $ | 3,984,078 | | $ | 3,930,702 | | $ | 3,884,932 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Deposits: | | | | | | | | | | | | | | | |
| Interest-bearing demand deposits | | $ | 899,349 | | $ | 916,314 | | $ | 915,072 | | $ | 885,091 | | $ | 883,134 |
| Savings | | 552,231 | | 552,932 | | 579,090 | | 602,724 | | 646,291 | |||||
| Money market | | 390,720 | | 365,142 | | 358,742 | | 423,013 | | 481,951 | |||||
| Time deposits | | 738,683 | | 670,628 | | 645,285 | | 468,188 | | 342,994 | |||||
| Total interest-bearing deposits | | 2,580,983 | | 2,505,016 | | 2,498,189 | | 2,379,016 | | 2,354,370 | |||||
| Borrowings | | 298,918 | | 347,459 | | 391,976 | | 466,402 | | 398,837 | |||||
| Total interest-bearing liabilities | | 2,879,901 | | 2,852,475 | | 2,890,165 | | 2,845,418 | | 2,753,207 | |||||
| Non-interest-bearing demand deposits | | 554,816 | | 604,638 | | 610,644 | | 608,180 | | 651,885 | |||||
| Other liabilities | | 67,327 | | 64,092 | | 72,409 | | 64,346 | | 72,693 | |||||
| Total liabilities | | 3,502,044 | | 3,521,205 | | 3,573,218 | | 3,517,944 | | 3,477,785 | |||||
| Total shareholders' equity | | 435,961 | | 418,627 | | 410,860 | | 412,758 | | 407,147 | |||||
| Total liabilities and shareholders' equity | | $ | 3,938,005 | | $ | 3,939,832 | | $ | 3,984,078 | | $ | 3,930,702 | | $ | 3,884,932 |
| (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 | | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||
| (in thousands) | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | **** | |||||
| NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Non-accruing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 578 | $ | 610 | $ | 867 | $ | 909 | $ | 1,163 | | |||||
| Commercial and industrial | | 1,152 | | 363 | | 1,595 | | 1,814 | | 1,917 | | |||||
| Residential real estate | | 4,169 | | 3,742 | | 3,673 | | 3,415 | | 3,830 | | |||||
| Consumer | | 971 | | 813 | | 635 | | 565 | | 886 | | |||||
| Total non-accruing loans | | 6,870 | | 5,528 | | 6,770 | | 6,703 | | 7,796 | | |||||
| Other real estate owned | | — | | — | | — | | — | | — | | |||||
| Total non-performing assets | $ | 6,870 | $ | 5,528 | $ | 6,770 | $ | 6,703 | $ | 7,796 | | |||||
| | | | | | | | | | | | | | | | | |
| Total non-accruing loans/total loans | | 0.23 | % | | 0.18 | % | | 0.23 | % | | 0.22 | % | | 0.26 | % | |
| Total non-performing assets/total assets | | 0.17 | | 0.14 | | 0.17 | | 0.17 | | 0.20 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 28,142 | $ | 28,011 | $ | 27,362 | $ | 26,607 | $ | 25,860 | | |||||
| Charged-off loans | | (113) | | (632) | | (74) | | (199) | | (68) | | |||||
| Recoveries on charged-off loans | | 37 | | 76 | | 50 | | 204 | | 17 | | |||||
| Net loans (charged-off) recovered | | (76) | | (556) | | (24) | | 5 | | (51) | | |||||
| Provision for credit losses | | 289 | | 687 | | 673 | | 750 | | 798 | | |||||
| Balance at end of period | $ | 28,355 | $ | 28,142 | $ | 28,011 | $ | 27,362 | $ | 26,607 | | |||||
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses/total loans | | 0.94 | % | | 0.94 | % | | 0.94 | % | | 0.91 | % | | 0.90 | % | |
| Allowance for credit losses/non-accruing loans | | 413 | | 509 | | 414 | | 408 | | 341 | | |||||
| | | | | | | | | | | | | | | | | |
| NET LOAN (CHARGE-OFFS) RECOVERIES | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | (3) | $ | — | $ | — | $ | (72) | $ | 3 | | |||||
| Commercial and industrial | | (64) | | (479) | | 34 | | 139 | | 2 | | |||||
| Residential real estate | | 5 | | 3 | | 13 | | 3 | | 4 | | |||||
| Consumer | | (14) | | (80) | | (71) | | (65) | | (60) | | |||||
| Total, net | $ | (76) | $ | (556) | $ | (24) | $ | 5 | $ | (51) | | |||||
| | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries) (QTD annualized)/average loans | | 0.01 | % | | 0.07 | % | | — | % | | — | % | | 0.01 | % | |
| Net charge-offs (recoveries) (YTD annualized)/average loans | | 0.01 | | 0.02 | | 0.01 | | — | | 0.01 | | |||||
| | | | | | | | | | | | | | | | | |
| DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | | | | | | | | | | | | | | | | |
| 30-89 Days delinquent | | 0.14 | % | | 0.11 | % | | 0.13 | % | | 0.09 | % | | 0.26 | % | |
| 90+ Days delinquent and still accruing | | — | | 0.01 | | 0.03 | | 0.02 | | — | | |||||
| Total accruing delinquent loans | | 0.14 | | 0.12 | | 0.16 | | 0.11 | | 0.26 | | |||||
| Non-accruing loans | | 0.23 | | 0.18 | | 0.23 | | 0.22 | | 0.26 | | |||||
| Total delinquent and non-accruing loans | | 0.37 | % | | 0.30 | % | | 0.39 | % | | 0.33 | % | | 0.52 | % |
H
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | |||||||||||||
| | | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | ||||||
| (in thousands) | | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | ||||||
| Net income | | | | $ | 10,095 | | $ | 9,945 | | $ | 11,104 | | $ | 10,791 | | $ | 13,012 |
| Non-core items: | | | | | | | | | | | | | | | | | |
| Gain on sale of securities, net | | | | — | | — | | — | | — | | (34) | |||||
| (Gain) loss on sale of premises and equipment, net | | | | (15) | | 281 | | — | | (86) | | (13) | |||||
| Acquisition, conversion and other expenses | | | | 20 | | 263 | | — | | — | | 20 | |||||
| Income tax expense ^(1)^ | | | | (1) | | (131) | | — | | 20 | | 6 | |||||
| Total non-core items | | | | | 4 | | | 413 | | | — | | | (66) | | | (21) |
| Core earnings ^(2)^ | (A) | | $ | 10,099 | | $ | 10,358 | | $ | 11,104 | | $ | 10,725 | | $ | 12,991 | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | (B) | | $ | 28,055 | | $ | 28,793 | | $ | 29,186 | | $ | 28,790 | | $ | 30,906 | |
| Non-interest income | | | | 8,586 | | 8,850 | | 8,815 | | 8,980 | | 9,184 | |||||
| Total revenue | | | | 36,641 | | 37,643 | | 38,001 | | 37,770 | | 40,090 | |||||
| Gain on sale of securities, net | | | | — | | — | | — | | — | | (34) | |||||
| Total core revenue ^(2)^ | (C) | | $ | 36,641 | | $ | 37,643 | | $ | 38,001 | | $ | 37,770 | | $ | 40,056 | |
| | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | 23,688 | | 24,367 | | 23,016 | | 23,392 | | 22,704 | |||||
| Non-core expenses: | | | | | | | | | | | | | | | | | |
| Gain (loss) on sale of premises and equipment, net | | | | 15 | | (281) | | — | | 86 | | 13 | |||||
| Acquisition, conversion and other expenses | | | | (20) | | (263) | | — | | — | | (20) | |||||
| Total non-core expenses | | | | | (5) | | | (544) | | | — | | | 86 | | | (7) |
| Core non-interest expense ^(2)^ | (D) | | $ | 23,683 | | $ | 23,823 | | $ | 23,016 | | $ | 23,478 | | $ | 22,697 | |
| | | | | | | | | | | | | | | | | | |
| Total revenue | | | | | 36,641 | | | 37,643 | | | 38,001 | | | 37,770 | | | 40,090 |
| Total non-interest expense | | | | | 23,688 | | | 24,367 | | | 23,016 | | | 23,392 | | | 22,704 |
| Pre-tax, pre-provision net revenue | | | | $ | 12,953 | | $ | 13,276 | | $ | 14,985 | | $ | 14,378 | | $ | 17,386 |
| | | | | | | | | | | | | | | | | | |
| Core revenue^(2)^ | | | | | 36,641 | | | 37,643 | | | 38,001 | | | 37,770 | | | 40,056 |
| Core non-interest expense^(2)^ | | | | | 23,683 | | | 23,823 | | | 23,016 | | | 23,478 | | | 22,697 |
| Core pre-tax, pre-provision net revenue^(2)^ | | (U) | | $ | 12,958 | | $ | 13,820 | | $ | 14,985 | | $ | 14,292 | | $ | 17,359 |
| | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | ||||||||||
| Average earning assets | (E) | | $ | 3,645 | | $ | 3,652 | | $ | 3,687 | | $ | 3,637 | | $ | 3,585 | |
| Average assets | (F) | | 3,938 | | 3,940 | | 3,984 | | 3,931 | | 3,885 | ||||||
| Average shareholders' equity | (G) | | 436 | | 419 | | 411 | | 413 | | 407 | ||||||
| Average tangible shareholders' equity ^(2) (3)^ | (H) | | 312 | | 294 | | 286 | | 288 | | 282 | ||||||
| Tangible shareholders' equity, period-end ^(2) (3)^ | (I) | | 312 | | 308 | | 280 | | 286 | | 283 | ||||||
| Tangible assets, period-end ^(2) (3)^ | (J) | | 3,835 | | 3,847 | | 3,859 | | 3,904 | | 3,803 | ||||||
| | | | | | | | | | | | | | | | | | |
I
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||||
| (in thousands) | | | | 2024 | | 2023 | | 2023 | | 2023 | | 2023 | **** | |||||
| Common shares outstanding, period-end | (K) | | 15,212 | | 15,172 | | 15,156 | | 15,144 | | 15,124 | | ||||||
| Average diluted shares outstanding | (L) | | 15,270 | | 15,221 | | 15,196 | | 15,180 | | 15,190 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Core earnings per share, diluted ^(2)^ | (A/L) | | $ | 0.66 | | $ | 0.68 | | $ | 0.73 | | $ | 0.71 | | $ | 0.86 | | |
| Tangible book value per share, period-end ^(2)^ | (I/K) | | 20.48 | | 20.28 | | 18.45 | | 18.88 | | 18.74 | | ||||||
| Securities adjustment, net of tax ^(1) (4)^ | (M) | | (49,633) | | (47,649) | | (66,530) | | (55,307) | | (50,646) | | ||||||
| Tangible book value per share, excluding securities adjustment ^(2) (4)^ | (I+M)/K | | 23.75 | | 23.42 | | 22.84 | | 22.53 | | 22.08 | | ||||||
| Tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | | 8.13 | | 8.00 | | 7.25 | | 7.32 | | 7.45 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Performance ratios ^(5)^ | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | 1.03 | % | | 1.00 | % | | 1.11 | % | | 1.10 | % | | 1.36 | % | |
| Core return on assets ^(2)^ | (A/F) | | 1.03 | | 1.04 | | 1.11 | | 1.09 | | 1.36 | | ||||||
| Pre-tax, pre-provision return on assets | | | | | 1.32 | | | 1.34 | | | 1.49 | | | 1.47 | | | 1.81 | |
| Core pre-tax, pre-provision return on assets^(2)^ | | (U/F) | | | 1.32 | | | 1.39 | | | 1.49 | | | 1.46 | | | 1.81 | |
| GAAP return on equity | | | | 9.31 | | 9.43 | | 10.72 | | 10.49 | | 12.96 | | |||||
| Core return on equity ^(2)^ | (A/G) | | 9.32 | | 9.82 | | 10.72 | | 10.42 | | 12.94 | | ||||||
| Return on tangible equity | | | | | 13.25 | | | 13.65 | | | 15.65 | | | 15.28 | | | 18.97 | |
| Core return on tangible equity ^(1) (2)^ | (A+Q)/H | | 13.26 | | 14.21 | | 15.65 | | 15.19 | | 18.94 | | ||||||
| Efficiency ratio ^(2) (6)^ | (D-O-Q)/(C+N) | | 62.91 | | 61.38 | | 58.59 | | 60.25 | | 54.72 | | ||||||
| Net interest margin, fully taxable equivalent ^(2)^ | (B+P)/E | | 3.14 | | 3.17 | | 3.18 | | 3.22 | | 3.54 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Supplementary data (in thousands) | | | | | | | | | | | | | | | | | | |
| Taxable equivalent adjustment for efficiency ratio | (N) | | $ | 523 | | $ | 561 | | $ | 565 | | $ | 539 | | $ | 727 | | |
| Franchise taxes included in non-interest expense | (O) | | 70 | | 141 | | 186 | | 163 | | 148 | | ||||||
| Tax equivalent adjustment for net interest margin | (P) | | 388 | | 395 | | 405 | | 382 | | 368 | | ||||||
| Intangible amortization | (Q) | | 233 | | 233 | | 233 | | 233 | | 233 | |
| (1) | Assumes a marginal tax rate of 24.01% in the first quarter 2024 and the fourth quarter 2023, and 23.80% in the first three quarters of 2023. |
|---|---|
| (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. |
| --- | --- |
J