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): January 23, 2025
BAR HARBOR BANKSHARES
(Exact Name of Registrant as Specified in its Charter)
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|---|---|---|
| Maine | 001-13349 | 01-0393663 |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File No.) | (I.R.S. Employer<br>Identification No.) |
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| 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
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| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, par value $2.00 per share | BHB | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 23, 2025, Bar Harbor Bankshares, issued a press release reporting our financial results for the quarter ended December 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 January 23, 2025, we announced in the Earnings Release that our Board of Directors declared a quarterly cash dividend of $0.30 per share to shareholders of record at the close of business on February 20, 2025 and will be payable on March 20, 2025.
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 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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|---|---|---|
| Exhibit No. | **** | Description |
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| 99.1 | | Press Release dated January 23, 2025 |
| 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, as amended, 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 | |
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| January 23, 2025 | By: | /s/ Curtis C. Simard |
| | | Curtis C. Simard |
| | | President and CEO |
Exhibit 99.1
Bar Harbor Bankshares Reports Fourth Quarter 2024 Results; Declares Dividend
BAR HARBOR, MAINE – January 23, 2025 - Bar Harbor Bankshares (NYSE American: BHB) (the “Company”) reported fourth quarter 2024 GAAP and core (Non-GAAP) net income of $11.0 million or $0.72 per diluted share compared to GAAP and core (Non-GAAP) net income of $9.9 million or $0.65 per diluted share in the same quarter of 2023.
FOURTH QUARTER 2024 HIGHLIGHTS
| • | Return on assets of 1.09% |
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| • | Commercial loan growth of 14% annualized |
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| • | Net interest margin of 3.17% |
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| • | Non-accruing loans to total loans ratio of 0.22% |
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| • | Wealth management related fee income growth of 9% year over year |
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Bar Harbor Bankshares’ President and Chief Executive Officer, Curtis C. Simard, stated, “Our team has set forth and delivered another year of execution on our definitive strategy of balancing growth with earnings. We continue to demonstrate that our Bank is built for uncertainties, whether economic or rate environment, rooted in an authentic culture. We were honored in December by Newsweek as one of “America’s Best Regional Banks” for the second consecutive year. This distinction reflects the dedication, talent, and teamwork of our employees. Over 9,000 financial institutions were evaluated. We stood out for our financial strength and exceptional service. This recognition is a validation of the trust our customers and communities place in us daily. In addition, Forbes recognized our institution as one of the “World’s Best Banks” and “Best-in-State Banks,” as well as Newsweek naming us one of “America’s Best Banks.” These accolades reflect the focus on delivering exceptionally well and best demonstrate confidently operating with accountability.
Over the past several years, our commercial team has delivered consistent and strong loan growth, adhering to conservative structures and appropriate pricing to maintain our margin goals. The results of our efforts underscore the importance of disciplined growth and the value of building lasting relationships. Like many community banks, much of the Commercial growth has been strategically concentrated in our Commercial Real Estate (CRE) segment. As we enter 2025, we remain committed to this critical lending segment for continued growth and embark on a strategic initiative to accelerate the growth in our Commercial & Industrial (C&I) Lending segment. As you may have read, we announced the addition of two exceptional professionals to our Middle Market Commercial Banking team: Larry Wold and Heather Whitfield. With more than 35 years of experience each, they bring extensive C&I expertise and market presence that will enhance and strengthen our existing C&I Lending capabilities in 2025 ultimately better diversifying and balancing the overall Commercial portfolio. We believe we may be entering a period of talent shift as experienced candidates are becoming available.
We also added to our Treasury Management team both on the front line and in operations support as they have proven to be a tremendous partner growing both fee income and attracting new deposit customers. Our Wealth Management division grew both with existing customers and new business relationships generated by longstanding team members and catalyst recruits. Our Wealth Management team combined with brokerage services manages $3.3 billion in assets with over 130 new clients added in 2024 alone.
As we enter 2025, we continue to actively manage the balance sheet, investing excess liquidity diligently without compromising our credit or interest rate risk appetites. We are excited about this new year and feel we are well positioned financially, culturally and reputation wise.”
DIVIDEND DECLARED
The Board of Directors of the Company voted to declare a cash dividend of $0.30 per share to shareholders of record at the close of business on February 20, 2025 payable on March 20, 2025. This dividend equates to a 3.92% annualized yield based on the $30.58 closing share price of the Company’s common stock on December 31, 2024, the last trading day of the fourth quarter 2024.
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FINANCIAL CONDITION (Quarter results for December 31, 2024 compared to September 30, 2024)
Total assets grew to $4.1 billion at the end of the fourth quarter 2024 compared to $4.0 billion at the end of the third quarter 2024 primarily due to steady loan growth, partially offset by lower cash balances.
Total cash and cash equivalents were $72.2 million at the end of the fourth quarter 2024, compared to $81.2 million at end of the third quarter 2024. Interest-earning deposits held with other banks totaled $37.9 million at the end of the fourth quarter 2024, compared to $41.3 million at the end of the third quarter and yielded 4.92% and 5.54%, respectively. The change in cash balances was driven by utilization for loan originations.
Total loans grew $65.4 million or 8% on an annualized basis. Commercial loans grew $63.9 million or 15% annualized, Commercial and Industrial loans grew $6.0 million, or 6% annualized, Tax Exempt loans increased $5.1 million or 25% annualized, and Consumer loans increased $388 thousand, or 2% annualized in the fourth quarter 2024. Residential real estate decreased by $10.1 million, or 5% annualized, compared to the end of the third quarter 2024, as we focus on growing the portfolio with higher yielding commercial loans.
Federal Home Loan Bank (“FHLB”) stock increased to $12.2 million at the end of the fourth quarter 2024 compared to $7.6 million at the end of the third quarter 2024 driven by an increase in FHLB borrowings to fund loan originations and payoff the Federal Reserve’s Bank Term Funding Program.
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| Securities available for sale decreased to $521.0 million compared to $535.9 million at September 30, 2024 driven by paydowns of $15.4 million, net amortization of $343 thousand, and called securities of $2.0 million, partially offset by $14.2 million in purchases. The weighted average yield of the total securities portfolio for the fourth quarter 2024 was 3.79% compared to 3.96% for the previous quarter primarily due to the interest rate environment and change in the profile of the yield curve. The allowance for credit losses on available for sale investments increased to $568 thousand at December 31, 2024, driven by two corporate securities with a book value of $9.0 million, unrealized non-credit losses of $2.7 million and unrealized credit losses of $568 thousand. Fair value adjustments decreased the security portfolio by $62.3 million at the end of the fourth quarter compared to $52.3 million at the end of the third quarter. As of the end of the fourth and third quarters 2024, respectively, our securities portfolio maintained an average life of nine and eight years with an effective duration of five years for both quarters and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.<br><br> |
The allowance for credit losses on loans decreased $279 thousand to $28.7 million at the end of the fourth quarter 2024 compared to $29.0 million at the end of the third quarter 2024. Our allowance for credit losses continues to reflect our strong asset quality metrics and general macroeconomic trends, and provides a relatively stable allowance for credit losses to total loans coverage ratio of 0.91%. Non-accruing loans remained flat during the fourth quarter 2024 at $7.0 million from $7.1 million in the third quarter 2024. There were minor shifts in balances as commercial real estate, commercial and industrial and residential real estate decreased, partially offset by consumer increases. The increase in consumer non-accruing loans were attributed to two home equity loans. Total non-accruing loans to total loans was 0.22% in the fourth compared to 0.23% in the third quarter 2024. Charge-offs and specific reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values.
Total deposits remained flat at $3.3 billion at December 31, 2024 and September 30, 2024. Money Market accounts increased 26% on an annualized basis, or $25.1 million, to $406 million and time deposit balances increased 6% on an annualized basis to $830 million driven by the rate environment attracting investors as a safe place with a competitive rate to store their money. Non-interest bearing demand deposits decreased $29.3 million to $576 million or 19% on an annualized basis and interest-bearing demand deposits decreased $3.7 million or 2% on an annualized basis.
Senior borrowings increased $63.8 million to $250.0 million driven by funding commercial loan growth originations. FHLB borrowings increased $108.9 million to $242.7 million at the end of the fourth quarter 2024 compared to $133.8 million at the end of the third quarter 2024. Borrowings under the Federal Reserve’s Bank Term Funding Program were paid off at the end of the fourth quarter 2024 compared to $45 million at the end of the third quarter 2024. Subordinated debt was paid down $20 million from $40 million at the end of the third quarter 2024. Total borrowing costs decreased from 4.38% at the end of the third quarter 2024 to 4.20% at the end of the fourth quarter 2024.
The Company's book value per share was $30.00 as of the end of the fourth quarter 2024 compared to $30.12 at the end of the third quarter 2024. Tangible book value per share (non-GAAP) was $21.93 at the end of the fourth quarter 2024, compared to $22.02 at the end of the third quarter 2024.
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RESULTS OF OPERATIONS (Quarter results for December 31, 2024 compared to December 31, 2023)
The net interest margin remained stable at 3.17% in the fourth quarter 2024 compared to the same respective quarter 2023. Despite an increase year over year within the quarter in deposit costs driven by the interest rate environment and growth in deposits, the cost of funds pressure was offset by lower borrowing balances and costs. As loan balances grew year over year, the yield on loans grew 16 basis points to 5.40% in the fourth quarter 2024, up from 5.24% in the same quarter 2023. Costs of interest-bearing deposits grew 36 basis points to 2.41% from 2.05% in the fourth quarter 2023 driven by the continued competitive pricing within the interest rate environment.
Total interest and dividend income increased by 3.7% to $47.5 million in the fourth quarter 2024 primarily driven by the repricing of adjustable-rate loans and originations of higher fixed-rate loans within the commercial portfolio. Yields on earning assets grew to 5.14% compared to 5.02% in the fourth quarter 2023. The yield on commercial real estate loans grew to 5.61% in the fourth quarter 2024 from 5.46% in the fourth quarter 2023. The residential real estate yield grew to 4.13% in the fourth quarter 2024 compared to 3.94% in the fourth quarter 2023. Yield growth was offset by Consumer loans decreasing from 7.14% to 6.89% in the fourth quarter year over year.
Total interest expense increased by 8.2% to $18.4 million in the fourth quarter 2024 compared to $17.0 million in the fourth quarter 2023 driven by an increase in cost of funds compounded with a $126.5 million increase in deposits and a shift in the mix of deposits from interest-bearing demand and savings to money market and time deposits. Interest-bearing demand and savings decreased $48.6 million and time deposits increased $130 million in 2024 compared to the same quarter 2023. Money Market accounts increased $35.5 million in the fourth quarter 2024 compared to 2023. Borrowings decreased to $2.2 million in the fourth quarter 2024 compared to $4.1 million from the fourth quarter 2023, driven by a $40.9 million in paydowns and a 44 basis point decrease in costs to 4.20% in the fourth quarter 2024 compared to 4.64% in the fourth quarter 2023.
The provision for credit losses on loans was a recapture of $147 thousand in fourth quarter 2024 compared to a provision of $687 thousand in the fourth quarter 2023 as net charge-offs remain stable and minimal and credit quality continues to remain strong. The provision for credit losses on available for sale securities increased $1.2 million in the fourth quarter 2024 driven by a deterioration in scheduled interest payments and estimated future cash flows on two securities as noted above. A reserve was recorded for $603 thousand on interest which was charged-off and a $568 thousand reserve on unrealized credit losses.
Non-interest income was $9.4 million in the fourth quarter 2024 compared to $8.7 million in the same quarter 2023. Wealth management income grew 9.1% to $3.7 million compared to $3.4 million in the fourth quarter 2023. Non-brokerage assets under management grew 13.2% to $2.8 billion from $2.5 billion in the fourth quarter 2024 compared to the previous year driven by higher security valuations and a 4.8% growth in the managed accounts. Customer derivative income increased $344 thousand to $495 thousand compared to $151 thousand in the fourth quarter 2023 driven by an increase in dollars and volume on customer swaps due to the interest rate environment. Increases were offset by a $187 thousand or 4.9% decrease in customer service fees driven by lower non-sufficient funds fees and interchange income.
Non-interest expenses decreased $328 thousand to $23.9 million in the fourth quarter 2024 compared to $24.2 million in the fourth quarter 2023 driven by a recapture on provision for unfunded commitments compounded with decreases in salary and benefit expenses, losses on premises and equipment sold, outside services costs, and losses on premises held for sale, partially offset by increases in occupancy and equipment and other expenses. Unfunded commitment balances declined in the fourth quarter 2024 compared to the same quarter 2023 driving the $625 thousand recapture in reserves in the fourth quarter 2024 compared to an $85 thousand recapture in 2023. Salary and benefit expenses decreased 1%, or $153 thousand in the fourth quarter 2024 compared to 2023 driven by the higher discount rate on postretirement liabilities. Losses on sales of premises and equipment decreased $210 thousand driven by ATM upgrades in the fourth quarter of 2024 compared to facilities upgrades in the fourth quarter of 2023. Acquisition, conversion and other expenses decreased $263 thousand driven by losses recorded in premises held for sale for the Avery Lane property in the fourth quarter 2023 which was sold in the second quarter 2024. Outside services decreased $143 thousand driven by cost savings initiatives in the fourth quarter 2024 compared to the fourth quarter 2023. Occupancy and Equipment costs increased $353 thousand in 2024 compared to 2023 driven by an increase in leasehold extension agreements compared to the prior year. Other expenses increased $719 thousand to $4.3 million from $3.6 million in the fourth quarter 2023 primarily due to a decrease in cash surrender value of a split dollar insurance arrangement for $353 thousand, an increase of $177 thousand in credit, debit and ATM card expenses, and increased charitable contributions of $134 thousand.
Income tax expense was $2.6 million for the fourth quarter of 2024 and 2023, respectively. Our effective tax rate for the period ended December 31, 2024 was 19% compared to 21% in the fourth quarter 2023.
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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) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (2) changes in consumer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (4) the impact of liquidity needs on our results of operations and financial condition; (5) changes in the size and nature of our competition; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand, pricing or collectability; (8) the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; (9) operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, climate change, war, terrorism, civil unrest, and future pandemics; (10) lack of strategic growth opportunities or our failure to execute on available opportunities; (11) our ability to effectively manage problem credits; (12) our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; (13) our ability to retain executive officers and key employees and their customer and community relationships; (14) regulatory, litigation, and reputational risks and the applicability of insurance coverage; (15) changes in the reliability of our vendors, internal control systems or information systems; (16) the potential impact of climate change; (17) changes in legislation or regulation and accounting principles, policies, and guidelines; (18) reductions in the market value or outflows of wealth management assets under management; and (19) changes in the assumptions used in making such forward-looking statements. 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
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Dec 31, | **** | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | |||||
| | | 2024 | | | 2024 | | 2024 | | 2024 | | 2023 | |||||
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Net earnings, diluted | $ | 0.72 | $ | 0.80 | $ | 0.67 | $ | 0.66 | $ | 0.65 | | |||||
| Core earnings, diluted ^(1)^ | | 0.72 | | 0.80 | | 0.66 | | 0.66 | | 0.68 | | |||||
| Total book value | | 30.00 | | 30.12 | | 28.81 | | 28.64 | | 28.48 | | |||||
| Tangible book value ^(1)^ | | 21.93 | | 22.02 | | 20.68 | | 20.48 | | 20.28 | | |||||
| Market price at period end | | 30.58 | | 30.84 | | 26.88 | | 26.48 | | 29.36 | | |||||
| Dividends | | 0.30 | | 0.30 | | 0.30 | | 0.28 | | 0.28 | | |||||
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| PERFORMANCE RATIOS ^(2)^ | | | | | | | | | | | | | | | | |
| Return on assets | | 1.09 | % | | 1.20 | % | | 1.04 | % | | 1.03 | % | | 1.00 | % | |
| Core return on assets ^(1)^ | | 1.09 | | 1.20 | | 1.02 | | 1.03 | | 1.04 | | |||||
| Pre-tax, pre-provision return on assets | | | 1.44 | | | 1.37 | | | 1.36 | | | 1.32 | | | 1.34 | |
| Core pre-tax, pre-provision return on assets^(1)^ | | | 1.45 | | | 1.37 | | | 1.33 | | | 1.32 | | | 1.39 | |
| Return on equity | | 9.52 | | 10.68 | | 9.46 | | 9.32 | | 9.43 | | |||||
| Core return on equity ^(1)^ | | 9.57 | | 10.68 | | 9.25 | | 9.32 | | 9.82 | | |||||
| Return on tangible equity | | | 13.23 | | | 14.90 | | | 13.44 | | | 13.26 | | | 13.65 | |
| Core return on tangible equity ^(1)^ | | 13.29 | | 14.90 | | 13.15 | | 13.27 | | 14.21 | | |||||
| Net interest margin, fully taxable equivalent ^(1) (3)^ | | 3.17 | | 3.15 | | 3.09 | | 3.14 | | 3.17 | | |||||
| Efficiency ratio ^(1)^ | | 59.84 | | 62.09 | | 62.78 | | 62.71 | | 61.22 | | |||||
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| FINANCIAL DATA (In millions) | | | | | | | | | | | | | | | | |
| Total assets | $ | 4,083 | $ | 4,030 | $ | 4,034 | $ | 3,959 | $ | 3,971 | | |||||
| Total earning assets ^(4)^ | | 3,782 | | 3,720 | | 3,726 | | 3,663 | | 3,664 | | |||||
| Total investments | | 533 | | 543 | | 528 | | 538 | | 547 | | |||||
| Total loans | | 3,147 | | 3,082 | | 3,064 | | 3,012 | | 2,999 | | |||||
| Allowance for credit losses | | 29 | | 29 | | 29 | | 28 | | 28 | | |||||
| Total goodwill and intangible assets | | 123 | | 124 | | 124 | | 124 | | 124 | | |||||
| Total deposits | | 3,268 | | 3,261 | | 3,140 | | 3,127 | | 3,141 | | |||||
| Total shareholders' equity | | 458 | | 460 | | 439 | | 436 | | 432 | | |||||
| Net income | | 11 | | 12 | | 10 | | 10 | | 10 | | |||||
| Core earnings^(1)^ | | 11 | | 12 | | 10 | | 10 | | 10 | | |||||
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| ASSET QUALITY AND CONDITION RATIOS | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries)^(5)^/average loans | | 0.02 | % | | 0.01 | % | | 0.01 | % | | 0.01 | % | | 0.07 | % | |
| Allowance for credit losses on loans/total loans | | 0.91 | | 0.94 | | 0.94 | | 0.94 | | 0.94 | | |||||
| Loans/deposits | | 96 | | 95 | | 98 | | 96 | | 95 | | |||||
| Shareholders' equity to total assets | | 11.23 | | 11.41 | | 10.88 | | 11.01 | | 10.88 | | |||||
| Tangible shareholders' equity to tangible assets | | 8.46 | | 8.61 | | 8.06 | | 8.13 | | 8.00 | |
| (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. |
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| (3) | Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans. |
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| (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
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | |||||
| (in thousands) | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | |||||
| Assets | | | | | | ||||||||||
| Cash and due from banks | | $ | 34,266 | | $ | 39,877 | | $ | 39,673 | | $ | 30,770 | | $ | 42,221 |
| Interest-earning deposits with other banks | | 37,896 | | 41,343 | | 62,163 | | 45,449 | | 52,621 | |||||
| Total cash and cash equivalents | | 72,162 | | 81,220 | | 101,836 | | 76,219 | | 94,842 | |||||
| | | | | | | | | | | | | | | | |
| Securities available for sale | | 521,018 | | 535,892 | | 512,928 | | 527,603 | | 534,574 | |||||
| Federal Home Loan Bank stock | | 12,237 | | 7,600 | | 14,755 | | 9,960 | | 12,788 | |||||
| Total securities | | 533,255 | | 543,492 | | 527,683 | | 537,563 | | 547,362 | |||||
| Less: Allowance for credit losses on securities available for sale | | | (568) | | | — | | | — | | | — | | | — |
| Net securities | | 532,687 | | 543,492 | | 527,683 | | 537,563 | | 547,362 | |||||
| | | | | | | | | | | | | | | | |
| Loans held for sale | | | 1,235 | | | 1,272 | | | 3,897 | | | 3,137 | | | 2,189 |
| | | | | | | | | | | | | | | | |
| Total loans | | 3,147,096 | | 3,081,735 | | 3,064,181 | | 3,011,672 | | 2,999,049 | |||||
| Less: Allowance for credit losses on loans | | (28,744) | | (29,023) | | (28,855) | | (28,355) | | (28,142) | |||||
| Net loans | | 3,118,352 | | 3,052,712 | | 3,035,326 | | 2,983,317 | | 2,970,907 | |||||
| | | | | | | | | | | | | | | | |
| Premises and equipment, net | | 51,237 | | 51,644 | | 51,628 | | 47,849 | | 48,287 | |||||
| Other real estate owned | | — | | — | | — | | — | | — | |||||
| Goodwill | | 119,477 | | 119,477 | | 119,477 | | 119,477 | | 119,477 | |||||
| Other intangible assets | | 3,938 | | 4,171 | | 4,404 | | 4,637 | | 4,869 | |||||
| Cash surrender value of bank-owned life insurance | | 81,858 | | 81,824 | | 81,221 | | 80,642 | | 80,037 | |||||
| Deferred tax asset, net | | 23,330 | | 20,923 | | 24,750 | | 23,849 | | 22,979 | |||||
| Other assets | | 79,051 | | 73,192 | | 83,978 | | 82,285 | | 79,936 | |||||
| Total assets | | $ | 4,083,327 | | $ | 4,029,927 | | $ | 4,034,200 | | $ | 3,958,975 | | $ | 3,970,885 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Non-interest bearing demand | | $ | 575,649 | | $ | 604,963 | | $ | 553,067 | | $ | 544,495 | | $ | 569,714 |
| Interest-bearing demand | | 910,191 | | 913,910 | | 882,068 | | 888,591 | | 946,978 | |||||
| Savings | | 545,816 | | 544,235 | | 544,980 | | 551,493 | | 553,963 | |||||
| Money market | | 405,758 | | 380,624 | | 359,208 | | 365,289 | | 370,242 | |||||
| Time | | 830,274 | | 817,354 | | 801,143 | | 777,208 | | 700,260 | |||||
| Total deposits | | 3,267,688 | | 3,261,086 | | 3,140,466 | | 3,127,076 | | 3,141,157 | |||||
| | | | | | | | | | | | | | | | |
| Senior borrowings | | 249,981 | | 186,207 | | 329,349 | | 269,437 | | 271,044 | |||||
| Subordinated borrowings | | 40,620 | | 60,580 | | 60,541 | | 60,501 | | 60,461 | |||||
| Total borrowings | | 290,601 | | 246,787 | | 389,890 | | 329,938 | | 331,505 | |||||
| | | | | | | | | | | | | | | | |
| Other liabilities | | 66,610 | | 62,138 | | 64,937 | | 66,247 | | 66,164 | |||||
| Total liabilities | | 3,624,899 | | 3,570,011 | | 3,595,293 | | 3,523,261 | | 3,538,826 | |||||
| | | | | | | | | | | | | | | | |
| Total shareholders’ equity | | 458,428 | | 459,916 | | 438,907 | | 435,714 | | 432,059 | |||||
| Total liabilities and shareholders’ equity | | $ | 4,083,327 | | $ | 4,029,927 | | $ | 4,034,200 | | $ | 3,958,975 | | $ | 3,970,885 |
| | | | | | | | | | | | | | | | |
| Net shares outstanding | | 15,280 | | 15,268 | | 15,232 | | 15,212 | | 15,172 |
B
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | ||||
| | | | | | | | | | | | | | | | | | Growth % | ||||
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Quarter | | Year | |||||||
| (in thousands) | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | | to Date | | to Date | |||||||
| Commercial real estate | | $ | 1,741,223 | | $ | 1,677,310 | | $ | 1,634,658 | | $ | 1,574,802 | | $ | 1,552,061 | 15 | % | | 12 | % | |
| Commercial and industrial | | 388,599 | | 382,554 | | 421,297 | | 412,567 | | 400,169 | 6 | | (3) | | |||||||
| Total commercial loans | | 2,129,822 | | 2,059,864 | | 2,055,955 | | 1,987,369 | | 1,952,230 | 14 | | 9 | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | 826,492 | | 836,566 | | 854,718 | | 873,213 | | 889,904 | (5) | | (7) | | |||||||
| Consumer | | 103,803 | | 103,415 | | 99,776 | | 95,838 | | 97,001 | 2 | | 7 | | |||||||
| Tax exempt and other | | 86,979 | | 81,890 | | 53,732 | | 55,252 | | 59,914 | 25 | | 45 | | |||||||
| Total loans | | $ | 3,147,096 | | $ | 3,081,735 | | $ | 3,064,181 | | $ | 3,011,672 | | $ | 2,999,049 | 8 | % | | 5 | % |
DEPOSIT ANALYSIS
| | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | ||||
| | | | | | | | | | | | | | | | | | Growth % | ||||
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Quarter | | Year | |||||||
| (in thousands) | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | | to Date | | to Date | |||||||
| Non-interest bearing demand | | $ | 575,649 | | $ | 604,963 | | $ | 553,067 | | $ | 544,495 | | $ | 569,714 | (19) | % | | 1 | % | |
| Interest-bearing demand | | 910,191 | | 913,910 | | 882,068 | | 888,591 | | 946,978 | (2) | | (4) | | |||||||
| Savings | | 545,816 | | 544,235 | | 544,980 | | 551,493 | | 553,963 | 1 | | (1) | | |||||||
| Money market | | 405,758 | | 380,624 | | 359,208 | | 365,289 | | 370,242 | 26 | | 10 | | |||||||
| Total non-maturity deposits | | 2,437,414 | | 2,443,732 | | 2,339,323 | | 2,349,868 | | 2,440,897 | (1) | | — | | |||||||
| Time | | 830,274 | | 817,354 | | 801,143 | | 777,208 | | 700,260 | 6 | | 19 | | |||||||
| Total deposits | | $ | 3,267,688 | | $ | 3,261,086 | | $ | 3,140,466 | | $ | 3,127,076 | | $ | 3,141,157 | 1 | % | | 4 | % |
C
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Year Ended | ||||||||
| | | December 31, | | December 31, | ||||||||
| (in thousands, except per share data) | **** | 2024 | **** | 2023 | **** | 2024 | **** | 2023 | ||||
| Interest and dividend income | | | | | ||||||||
| Loans | | $ | 41,700 | | $ | 39,531 | | $ | 163,846 | | $ | 149,420 |
| Securities and other | | 5,783 | | 6,284 | | 24,878 | | 24,762 | ||||
| Total interest and dividend income | | 47,483 | | 45,815 | | 188,724 | | 174,182 | ||||
| Interest expense | | | | | | | ||||||
| Deposits | | 16,210 | | 12,962 | | 61,696 | | 38,232 | ||||
| Borrowings | | 2,206 | | 4,060 | | 13,189 | | 18,275 | ||||
| Total interest expense | | 18,416 | | 17,022 | | 74,885 | | 56,507 | ||||
| Net interest income | | 29,067 | | 28,793 | | 113,839 | | 117,675 | ||||
| Provision for credit losses on securities available for sale | | | 1,171 | | | — | | | 1,171 | | | — |
| Provision for credit losses on loans | | (147) | | 687 | | 955 | | 2,908 | ||||
| Net interest income after provision for credit losses | | 28,043 | | 28,106 | | 111,713 | | 114,767 | ||||
| Non-interest income | | | | | ||||||||
| Trust and investment management fee income | | 3,709 | | 3,401 | | 15,701 | | 14,283 | ||||
| Customer service fees | | 3,604 | | 3,791 | | 14,839 | | 15,168 | ||||
| Gain on sales of securities, net | | — | | — | | 50 | | 34 | ||||
| Mortgage banking income | | | 597 | | | 515 | | | 2,093 | | | 1,587 |
| Bank-owned life insurance income | | 590 | | 533 | | 2,304 | | 2,699 | ||||
| Customer derivative income | | 495 | | 151 | | 928 | | 409 | ||||
| Other income | | 397 | | 305 | | 973 | | 893 | ||||
| Total non-interest income | | 9,392 | | 8,696 | | 36,888 | | 35,073 | ||||
| Non-interest expense | | | | | ||||||||
| Salaries and employee benefits | | 13,358 | | 13,511 | | 54,849 | | 52,516 | ||||
| Occupancy and equipment | | 3,634 | | 3,282 | | 13,788 | | 13,386 | ||||
| Depreciation | | | 1,042 | | | 1,027 | | | 4,196 | | | 4,198 |
| Loss (gain) on sales of premises and equipment, net | | 71 | | 281 | | (192) | | 182 | ||||
| Outside services | | 372 | | 515 | | 1,558 | | 1,671 | ||||
| Professional services | | 343 | | 369 | | 1,422 | | 1,586 | ||||
| Communication | | 189 | | 190 | | 759 | | 697 | ||||
| Marketing | | 492 | | 485 | | 2,014 | | 1,696 | ||||
| Amortization of intangible assets | | 233 | | 233 | | 932 | | 932 | ||||
| FDIC assessment | | | 457 | | | 457 | | | 1,808 | | | 1,743 |
| Acquisition, conversion and other expenses | | — | | 263 | | 20 | | 283 | ||||
| Provision for unfunded commitments | | | (625) | | — | | (775) | | (85) | |||
| Other expenses | | 4,319 | | 3,600 | | 15,608 | | 13,918 | ||||
| Total non-interest expense | | 23,885 | | 24,213 | | 95,987 | | 92,723 | ||||
| Income before income taxes | | 13,550 | | 12,589 | | 52,614 | | 57,117 | ||||
| Income tax expense | | 2,551 | | 2,644 | | 9,070 | | 12,265 | ||||
| Net income | | $ | 10,999 | | $ | 9,945 | | $ | 43,544 | | $ | 44,852 |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | ||||||||
| Basic | | $ | 0.72 | | $ | 0.66 | | $ | 2.86 | | $ | 2.96 |
| Diluted | | 0.72 | | 0.65 | | 2.84 | | 2.95 | ||||
| | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | ||||||||
| Basic | | 15,261 | | 15,164 | | 15,240 | | 15,142 | ||||
| Diluted | | 15,346 | | 15,221 | | 15,311 | | 15,195 |
D
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | |||||
| (in thousands, except per share data) | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | |||||
| Interest and dividend income | | | | | | ||||||||||
| Loans | | $ | 41,700 | | $ | 42,042 | | $ | 40,634 | | $ | 39,470 | | $ | 39,531 |
| Securities and other | | 5,783 | | | 6,538 | | | 6,204 | | | 6,353 | | | 6,284 | |
| Total interest and dividend income | | 47,483 | | | 48,580 | | | 46,838 | | | 45,823 | | | 45,815 | |
| Interest expense | | | | | | | | | | ||||||
| Deposits | | 16,210 | | | 16,174 | | | 14,780 | | | 14,532 | | | 12,962 | |
| Borrowings | | 2,206 | | | 3,448 | | | 4,299 | | | 3,236 | | | 4,060 | |
| Total interest expense | | 18,416 | | | 19,622 | | | 19,079 | | | 17,768 | | | 17,022 | |
| Net interest income | | 29,067 | | | 28,958 | | | 27,759 | | | 28,055 | | | 28,793 | |
| Provision for credit losses on securities available for sale | | | 1,171 | | | — | | | — | | | — | | | — |
| Provision for credit losses on loans | | (147) | | | 228 | | | 585 | | | 289 | | | 687 | |
| Net interest income after provision for credit losses | | 28,043 | | | 28,730 | | | 27,174 | | | 27,766 | | | 28,106 | |
| Non-interest income | | | | | | | | | | ||||||
| Trust and investment management fee income | | 3,709 | | | 4,129 | | | 4,193 | | | 3,670 | | | 3,401 | |
| Customer service fees | | 3,604 | | | 3,788 | | | 3,737 | | | 3,710 | | | 3,791 | |
| Gain on sales of securities, net | | — | | | — | | | 50 | | | — | | | — | |
| Mortgage banking income | | | 597 | | | 681 | | | 558 | | | 257 | | | 515 |
| Bank-owned life insurance income | | 590 | | | 570 | | | 583 | | | 561 | | | 533 | |
| Customer derivative income | | 495 | | | 265 | | | 168 | | | — | | | 151 | |
| Other income | | 397 | | | 220 | | | 168 | | | 188 | | | 305 | |
| Total non-interest income | | 9,392 | | | 9,653 | | | 9,457 | | | 8,386 | | | 8,696 | |
| Non-interest expense | | | | | | | | | | ||||||
| Salaries and employee benefits | | 13,358 | | | 14,383 | | | 13,860 | | | 13,248 | | | 13,511 | |
| Occupancy and equipment | | 3,634 | | | 3,405 | | | 3,317 | | | 3,432 | | | 3,282 | |
| Depreciation | | | 1,042 | | | 1,048 | | | 1,065 | | | 1,041 | | | 1,027 |
| Loss (gain) on sales of premises and equipment, net | | 71 | | | — | | | (248) | | | (15) | | | 281 | |
| Outside services | | 372 | | | 386 | | | 462 | | | 338 | | | 515 | |
| Professional services | | 343 | | | 441 | | | 238 | | | 400 | | | 369 | |
| Communication | | 189 | | | 189 | | | 192 | | | 189 | | | 190 | |
| Marketing | | 492 | | | 434 | | | 521 | | | 567 | | | 485 | |
| Amortization of intangible assets | | 233 | | | 233 | | | 233 | | | 233 | | | 233 | |
| FDIC assessment | | | 457 | | | 451 | | | 448 | | | 452 | | | 457 |
| Acquisition, conversion and other expenses | | — | | | — | | | — | | | 20 | | | 263 | |
| Provision for unfunded commitments | | | (625) | | | 35 | | | — | | | (185) | | | — |
| Other expenses | | 4,319 | | | 3,767 | | | 3,754 | | | 3,768 | | | 3,600 | |
| Total non-interest expense | | 23,885 | | 24,772 | | 23,842 | | 23,488 | | 24,213 | |||||
| Income before income taxes | | 13,550 | | 13,611 | | 12,789 | | 12,664 | | 12,589 | |||||
| Income tax expense | | 2,551 | | | 1,418 | | | 2,532 | | | 2,569 | | | 2,644 | |
| Net income | | $ | 10,999 | | $ | 12,193 | | $ | 10,257 | | $ | 10,095 | | $ | 9,945 |
| | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | ||||||||||
| Basic | | $ | 0.72 | | $ | 0.80 | | $ | 0.67 | | $ | 0.66 | | $ | 0.66 |
| Diluted | | 0.72 | | 0.80 | | 0.67 | | 0.66 | | 0.65 | |||||
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | ||||||||||
| Basic | | 15,261 | | | 15,261 | | | 15,227 | | | 15,198 | | | 15,164 | |
| Diluted | | 15,346 | | | 15,326 | | | 15,275 | | | 15,270 | | | 15,221 |
E
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | **** | ||||||||
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** |
| | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | **** |
| Earning assets | | | | | | | | | | | |
| Interest-earning deposits with other banks^^ | | 4.92 | % | 5.54 | % | 5.65 | % | 5.88 | % | 6.42 | % |
| Securities available for sale and FHLB stock | | 3.79 | | 3.96 | | 4.00 | | 4.02 | | 3.85 | |
| Loans: | | | | | | | | | | | |
| Commercial real estate | 5.61 | | 5.67 | | 5.61 | | 5.47 | | 5.46 | | |
| Commercial and industrial | 6.62 | 6.98 | 6.76 | 6.68 | 6.66 | | |||||
| Residential real estate | 4.13 | 4.11 | 4.13 | 4.09 | 3.94 | | |||||
| Consumer | 6.89 | 7.23 | 7.26 | 7.22 | 7.14 | | |||||
| Total loans | 5.40 | 5.49 | 5.41 | 5.31 | 5.24 | | |||||
| Total earning assets | 5.14 | % | 5.24 | % | 5.18 | % | 5.10 | % | 5.02 | % | |
| | | | | | | | | | | | |
| Funding liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Interest-bearing demand | 1.42 | % | 1.48 | % | 1.39 | % | 1.34 | % | 1.33 | % | |
| Savings | 0.72 | 0.70 | 0.65 | 0.63 | 0.48 | | |||||
| Money market | 2.94 | 3.13 | 2.93 | 3.07 | 2.80 | | |||||
| Time | 4.30 | 4.39 | 4.33 | 4.18 | 3.93 | | |||||
| Total interest-bearing deposits | 2.41 | 2.45 | 2.35 | 2.26 | 2.05 | | |||||
| Borrowings | 4.20 | 4.38 | 4.57 | 4.35 | 4.64 | | |||||
| Total interest-bearing liabilities | 2.54 | % | 2.66 | % | 2.64 | % | 2.48 | % | 2.37 | % | |
| | | | | | | | | | | | |
| Net interest spread | 2.60 | 2.58 | 2.54 | 2.62 | 2.65 | | |||||
| Net interest margin, fully taxable equivalent^(1)^ | 3.17 | 3.15 | 3.09 | 3.14 | 3.17 | |
| (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 | |||||||||||||
| | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, | | Dec 31, | |||||
| (in thousands) | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | |||||
| Assets | | | | | | ||||||||||
| Interest-earning deposits with other banks^(1)^ | | $ | 24,000 | | $ | 54,897 | | $ | 27,407 | | $ | 36,608 | | $ | 36,794 |
| Securities available for sale and FHLB stock ^(2)^ | | | 598,478 | | | 601,489 | | | 606,779 | | | 604,658 | | | 608,793 |
| Loans: | | | | | | | | | | | | | | | |
| Commercial real estate | | | 1,699,869 | | | 1,645,933 | | | 1,600,253 | | | 1,558,506 | | | 1,554,961 |
| Commercial and industrial | | 458,157 | | 473,049 | | 468,052 | | 464,762 | | 457,642 | |||||
| Residential real estate | | 836,375 | | 851,426 | | 865,412 | | 884,767 | | 898,147 | |||||
| Consumer | | 103,681 | | 101,230 | | 97,371 | | 96,163 | | 95,193 | |||||
| Total loans ^(3)^ | | 3,098,082 | | 3,071,638 | | 3,031,088 | | 3,004,198 | | 3,005,943 | |||||
| Total earning assets | | 3,720,560 | | 3,728,024 | | 3,665,274 | | 3,645,464 | | 3,651,530 | |||||
| Cash and due from banks | | 32,771 | | 34,036 | | 30,809 | | 29,900 | | 34,741 | |||||
| Allowance for credit losses | | (29,021) | | (28,893) | | (28,567) | | (28,122) | | (28,057) | |||||
| Goodwill and other intangible assets | | 123,527 | | 123,761 | | 123,994 | | 124,225 | | 124,459 | |||||
| Other assets | | 171,351 | | 170,113 | | 168,239 | | 166,538 | | 157,159 | |||||
| Total assets | | $ | 4,019,188 | | $ | 4,027,041 | | $ | 3,959,749 | | $ | 3,938,005 | | $ | 3,939,832 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Deposits: | | | | | | | | | | | | | | | |
| Interest-bearing demand | | $ | 898,597 | | $ | 888,325 | | $ | 858,657 | | $ | 899,349 | | $ | 916,314 |
| Savings | | 543,430 | | 547,482 | | 542,950 | | 552,231 | | 552,932 | |||||
| Money market | | 394,536 | | 378,855 | | 355,731 | | 390,720 | | 365,142 | |||||
| Time | | 842,379 | | 807,180 | | 775,932 | | 738,683 | | 670,628 | |||||
| Total interest-bearing deposits | | 2,678,942 | | 2,621,842 | | 2,533,270 | | 2,580,983 | | 2,505,016 | |||||
| Borrowings | | 208,990 | | 312,891 | | 378,121 | | 298,918 | | 347,459 | |||||
| Total interest-bearing liabilities | | 2,887,932 | | 2,934,733 | | 2,911,391 | | 2,879,901 | | 2,852,475 | |||||
| Non-interest bearing demand deposits | | 604,017 | | 577,428 | | 546,448 | | 554,816 | | 604,638 | |||||
| Other liabilities | | 67,533 | | 60,731 | | 65,712 | | 67,327 | | 64,092 | |||||
| Total liabilities | | 3,559,482 | | 3,572,892 | | 3,523,551 | | 3,502,044 | | 3,521,205 | |||||
| Total shareholders' equity | | 459,706 | | 454,149 | | 436,198 | | 435,961 | | 418,627 | |||||
| Total liabilities and shareholders' equity | | $ | 4,019,188 | | $ | 4,027,041 | | $ | 3,959,749 | | $ | 3,938,005 | | $ | 3,939,832 |
| (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 | | |||||||||||||
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | |||||
| (in thousands) | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | **** | |||||
| NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Non-accruing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 1,321 | $ | 1,451 | $ | 551 | $ | 578 | $ | 610 | | |||||
| Commercial and industrial | | 1,098 | | 1,218 | | 1,301 | | 1,152 | | 363 | | |||||
| Residential real estate | | 3,290 | | 3,453 | | 3,511 | | 4,169 | | 3,742 | | |||||
| Consumer | | 1,285 | | 978 | | 914 | | 971 | | 813 | | |||||
| Total non-accruing loans | | 6,994 | | 7,100 | | 6,277 | | 6,870 | | 5,528 | | |||||
| Non-performing securities available for sale^(1)^ | | | 5,760 | | | — | | | — | | | — | | | — | |
| Other real estate owned | | — | | — | | — | | — | | — | | |||||
| Total non-performing assets | $ | 12,754 | $ | 7,100 | $ | 6,277 | $ | 6,870 | $ | 5,528 | | |||||
| | | | | | | | | | | | | | | | | |
| Total non-accruing loans/total loans | | 0.22 | % | | 0.23 | % | | 0.20 | % | | 0.23 | % | | 0.18 | % | |
| Total non-performing assets/total assets | | 0.31 | | 0.18 | | 0.16 | | 0.17 | | 0.14 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 29,023 | $ | 28,855 | $ | 28,355 | $ | 28,142 | $ | 28,011 | | |||||
| Charged-off loans | | (150) | | (98) | | (106) | | (113) | | (632) | | |||||
| Recoveries on charged-off loans | | 18 | | 38 | | 21 | | 37 | | 76 | | |||||
| Net loans (charged-off) recovered | | (132) | | (60) | | (85) | | (76) | | (556) | | |||||
| Provision for credit losses on loans | | (147) | | 228 | | 585 | | 289 | | 687 | | |||||
| Balance at end of period | $ | 28,744 | $ | 29,023 | $ | 28,855 | $ | 28,355 | $ | 28,142 | | |||||
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses/total loans | | 0.91 | % | | 0.94 | % | | 0.94 | % | | 0.94 | % | | 0.94 | % | |
| Allowance for credit losses/non-accruing loans | | 411 | | 409 | | 460 | | 413 | | 509 | | |||||
| | | | | | | | | | | | | | | | | |
| NET LOAN (CHARGE-OFFS) RECOVERIES | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | — | $ | — | $ | — | $ | (3) | $ | — | | |||||
| Commercial and industrial | | (84) | | (8) | | (2) | | (64) | | (479) | | |||||
| Residential real estate | | 3 | | 5 | | 3 | | 5 | | 3 | | |||||
| Consumer | | (51) | | (57) | | (86) | | (14) | | (80) | | |||||
| Total, net | $ | (132) | $ | (60) | $ | (85) | $ | (76) | $ | (556) | | |||||
| | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries) (QTD annualized)/average loans | | 0.02 | % | | 0.01 | % | | 0.01 | % | | 0.01 | % | | 0.07 | % | |
| Net charge-offs (recoveries) (YTD annualized)/average loans | | 0.01 | | 0.01 | | 0.01 | | 0.01 | | 0.02 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON SECURITIES AVAILABLE FOR SALE | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | | |||||
| Charged-off interest receivable on securities available for sale | | (603) | | — | | — | | — | | — | | |||||
| Provision for credit losses on securities available for sale | | 1,171 | | — | | — | | — | | — | | |||||
| Balance at end of period | $ | 568 | $ | — | $ | — | $ | — | $ | — | |
| (1) | Non-performing securities available for sale consists of book value of $9.0 million, unrealized non-credit losses of $2.7 million and unrealized credit losses of $568 thousand. |
|---|
H
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | |||||||||||||
| | | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | ||||||
| (in thousands) | | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | ||||||
| Net income | | | | $ | 10,999 | | $ | 12,193 | | $ | 10,257 | | $ | 10,095 | | $ | 9,945 |
| Non-core items: | | | | | | | | | | | | | | | | | |
| Gain on sale of securities, net | | | | — | | — | | (50) | | — | | — | |||||
| Loss (gain) on sale of premises and equipment, net | | | | 71 | | — | | (248) | | (15) | | 281 | |||||
| Acquisition, conversion and other expenses | | | | — | | — | | — | | 20 | | 263 | |||||
| Income tax expense ^(1)^ | | | | (17) | | — | | 71 | | (1) | | (131) | |||||
| Total non-core items | | | | | 54 | | | — | | | (227) | | | 4 | | | 413 |
| Core earnings ^(2)^ | (A) | | $ | 11,053 | | $ | 12,193 | | $ | 10,030 | | $ | 10,099 | | $ | 10,358 | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | (B) | | $ | 29,067 | | $ | 28,958 | | $ | 27,759 | | $ | 28,055 | | $ | 28,793 | |
| Non-interest income | | | | 9,392 | | 9,653 | | 9,457 | | 8,586 | | 8,850 | |||||
| Total revenue | | | | 38,459 | | 38,611 | | 37,216 | | 36,641 | | 37,643 | |||||
| Gain on sale of securities, net | | | | — | | — | | (50) | | — | | — | |||||
| Total core revenue ^(2)^ | (C) | | $ | 38,459 | | $ | 38,611 | | $ | 37,166 | | $ | 36,641 | | $ | 37,643 | |
| | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | 23,885 | | 24,772 | | 23,842 | | 23,688 | | 24,367 | |||||
| Non-core expenses: | | | | | | | | | | | | | | | | | |
| (Loss) gain on sale of premises and equipment, net | | | | (71) | | — | | 248 | | 15 | | (281) | |||||
| Acquisition, conversion and other expenses | | | | — | | — | | — | | (20) | | (263) | |||||
| Total non-core expenses | | | | | (71) | | | — | | | 248 | | | (5) | | | (544) |
| Core non-interest expense ^(2)^ | (D) | | $ | 23,814 | | $ | 24,772 | | $ | 24,090 | | $ | 23,683 | | $ | 23,823 | |
| | | | | | | | | | | | | | | | | | |
| Total revenue | | | | | 38,459 | | | 38,611 | | | 37,216 | | | 36,641 | | | 37,643 |
| Total non-interest expense | | | | | 23,885 | | | 24,772 | | | 23,842 | | | 23,688 | | | 24,367 |
| Pre-tax, pre-provision net revenue | | | | $ | 14,574 | | $ | 13,839 | | $ | 13,374 | | $ | 12,953 | | $ | 13,276 |
| | | | | | | | | | | | | | | | | | |
| Core revenue^(2)^ | | | | | 38,459 | | | 38,611 | | | 37,166 | | | 36,641 | | | 37,643 |
| Core non-interest expense^(2)^ | | | | | 23,814 | | | 24,772 | | | 24,090 | | | 23,683 | | | 23,823 |
| Core pre-tax, pre-provision net revenue^(2)^ | | (U) | | $ | 14,645 | | $ | 13,839 | | $ | 13,076 | | $ | 12,958 | | $ | 13,820 |
| | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | ||||||||||
| Average earning assets | (E) | | $ | 3,721 | | $ | 3,728 | | $ | 3,665 | | $ | 3,645 | | $ | 3,652 | |
| Average assets | (F) | | 4,019 | | 4,027 | | 3,960 | | 3,938 | | 3,940 | ||||||
| Average shareholders' equity | (G) | | 460 | | 454 | | 436 | | 436 | | 419 | ||||||
| Average tangible shareholders' equity ^(2) (3)^ | (H) | | 336 | | 330 | | 312 | | 312 | | 294 | ||||||
| Tangible shareholders' equity, period-end ^(2) (3)^ | (I) | | 335 | | 336 | | 315 | | 312 | | 308 | ||||||
| Tangible assets, period-end ^(2) (3)^ | (J) | | 3,960 | | 3,906 | | 3,910 | | 3,835 | | 3,847 | ||||||
| | | | | | | | | | | | | | | | | | |
I
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | |||||||
| (in thousands) | | | | 2024 | | 2024 | | 2024 | | 2024 | | 2023 | **** | |||||
| Common shares outstanding, period-end | (K) | | 15,280 | | 15,268 | | 15,232 | | 15,212 | | 15,172 | | ||||||
| Average diluted shares outstanding | (L) | | 15,346 | | 15,326 | | 15,275 | | 15,270 | | 15,221 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Core earnings per share, diluted ^(2)^ | (A/L) | | $ | 0.72 | | $ | 0.80 | | $ | 0.66 | | $ | 0.66 | | $ | 0.68 | | |
| Tangible book value per share, period-end ^(2)^ | (I/K) | | 21.93 | | 22.02 | | 20.68 | | 20.48 | | 20.28 | | ||||||
| Tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | | 8.46 | | 8.61 | | 8.06 | | 8.13 | | 8.00 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Performance ratios ^(4)^ | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | 1.09 | % | | 1.20 | % | | 1.04 | % | | 1.03 | % | | 1.00 | % | |
| Core return on assets ^(2)^ | (A/F) | | 1.09 | | 1.20 | | 1.02 | | 1.03 | | 1.04 | | ||||||
| Pre-tax, pre-provision return on assets | | | | | 1.44 | | | 1.37 | | | 1.36 | | | 1.32 | | | 1.34 | |
| Core pre-tax, pre-provision return on assets^(2)^ | | (U/F) | | | 1.45 | | | 1.37 | | | 1.33 | | | 1.32 | | | 1.39 | |
| GAAP return on equity | | | | 9.52 | | 10.68 | | 9.46 | | 9.32 | | 9.43 | | |||||
| Core return on equity ^(2)^ | (A/G) | | 9.57 | | 10.68 | | 9.25 | | 9.32 | | 9.82 | | ||||||
| Return on tangible equity | | | | | 13.23 | | | 14.90 | | | 13.44 | | | 13.26 | | | 13.65 | |
| Core return on tangible equity ^(1) (2)^ | (A+Q)/H | | 13.29 | | 14.90 | | 13.15 | | 13.27 | | 14.21 | | ||||||
| Efficiency ratio ^(2) (5)^ | (D-O-Q)/(C+N) | | 59.84 | | 62.09 | | 62.78 | | 62.91 | | 61.38 | | ||||||
| Net interest margin, fully taxable equivalent ^(2)^ | (B+P)/E | | 3.17 | | 3.15 | | 3.09 | | 3.14 | | 3.17 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Supplementary data (in thousands) | | | | | | | | | | | | | | | | | | |
| Taxable equivalent adjustment for efficiency ratio | (N) | | $ | 718 | | $ | 686 | | $ | 528 | | $ | 523 | | $ | 561 | | |
| Franchise taxes included in non-interest expense | (O) | | 139 | | 138 | | 191 | | 70 | | 141 | | ||||||
| Tax equivalent adjustment for net interest margin | (P) | | 578 | | 550 | | 389 | | 388 | | 395 | | ||||||
| Intangible amortization | (Q) | | 233 | | 233 | | 233 | | 233 | | 233 | |
| (1) | Assumes a marginal tax rate of 23.73% in the fourth quarter 2024, 23.82% in the second and third quarter 2024, 24.01% in the first quarter 2024 and the fourth quarter 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) | All performance ratios are based on average balance sheet amounts, where applicable. |
| --- | --- |
| (5) | 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