8-K
BAR HARBOR BANKSHARES (BHB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OFTHE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 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 July 18, 2024, Bar Harbor Bankshares, or the Company, issued a press release reporting our financial results for the quarter ended June 30, 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 July 18, 2024, 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 August 15, 2024 and will be payable on September 13, 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 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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|---|---|---|
| Exhibit No. | **** | Description |
| | | |
| 99.1 | | Press Release dated July 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, 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 | |
| | | |
| July 18, 2024 | By: | /s/ Curtis C. Simard |
| | | Curtis C. Simard |
| | | President and CEO |
Exhibit 99.1
Bar Harbor Bankshares Reports Second Quarter 2024 Results; Declares Dividend
BAR HARBOR, MAINE – July 18, 2024 - Bar Harbor Bankshares (NYSE American: BHB) (the “Company”) reported second quarter 2024 GAAP net income of $10.3 million and $0.67 per diluted share and core (Non-GAAP) net income of $10.0 million or $0.66 per diluted share compared to GAAP and core (Non-GAAP) net income $10.8 million or $0.71 per diluted share in the same quarter of 2023.
SECOND QUARTER 2024 HIGHLIGHTS
| • | Return on assets of 1.04% |
|---|---|
| • | Commercial loan growth of 14% annualized |
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| • | Net interest margin (“NIM”) of 3.09% |
| --- | --- |
| • | Non-accruing loans to total loans ratio of 0.20% |
| --- | --- |
| • | 14% growth in trust and investment fee income |
| --- | --- |
Bar Harbor Bankshares’ President and Chief Executive Officer, Curtis C. Simard, stated, “We delivered another solid quarter, demonstrating our commitment to consistent, sustainable long-term performance. Our continued perseverance is seen in our results as we have been able to defend our NIM relative to our peers. Our wealth management team continues to perform well with strong client retention and new client acquisitions of over $100.0 million which will fund over the next several quarters. I am proud of our teamwork, dedication to risk management, and purposeful expense control, which when paired with our strong calling culture will continue to drive our success in the second half of the year.”
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 August 15, 2024 payable on September 13, 2024. This dividend equates to a 4.46% annualized yield based on the $26.88 closing share price of the Company’s common stock on June 28, 2024, the last trading day of the second quarter 2024.
FINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)
Total assets grew $75.2 million at the end of the second quarter 2024 compared to the first quarter 2024 primarily due to loan growth and higher cash balances, partially offset by lower securities available for sale at the end of the second quarter.
Total cash and cash equivalents were $101.8 million, compared to $76.2 million at end of the first quarter 2024. Interest-earning deposits held with other banks totaled $62.2 million compared to $45.4 million at end of the first quarter and yielded 5.65% and 5.88%, respectively.
Total loans grew $52.5 million or 7% on an annualized basis. Commercial loans grew by $68.6 million or 14% annualized primarily driven by a $59.9 million, or 15% increase in commercial real estate and a $8.7 million, or 8%, increase in commercial and industrial loans. Residential loans decreased by $18.5 million, or 8% annualized, compared to the first quarter 2024 as we continue to focus on our held-for-sale mortgage business and allocate portfolio balances to higher yielding commercial loans. Consumer loans increased $3.9 million, or 16% annualized, driven by new home equity line originations in the second quarter 2024.
Securities available for sale decreased to $512.9 million compared to $527.6 million in the first quarter 2024 driven by pay downs of $22.0 million, called securities of $3.5 million, matured securities of $3.0 million and net amortization of $408 thousand, partially offset by security purchases of $18.1 million. Federal Home Loan Bank (“FHLB”) stock increased to $14.8 million in the second quarter 2024 compared to $10.0 million in the first quarter 2024 driven by higher FHLB borrowings. Fair value adjustments decreased the security portfolio by $68.5 million at quarter-end of this quarter compared to $64.9 million at the end of the first quarter. The weighted average yield of the total securities portfolio for the second quarter 2024 was 4.00% compared to 4.02% at the end of the previous quarter primarily due to a run-off of lower coupon fixed-rate securities. As of the end of the first and second quarters 2024, respectively, our securities portfolio maintained 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.
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The allowance for credit losses increased $500 thousand to $28.9 million at the end of the second quarter 2024 compared to $28.4 million at the end of the first quarter 2024. 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 decreased during the second quarter 2024 to $6.3 million from $6.9 million in the first quarter 2024. Charge-offs and specific reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values.
Total deposits remained at $3.1 billion at the end of the second quarter 2024. We continued to see a shift from non-maturity deposits to certificate of deposit accounts (“CDs”), as CDs increased $23.9 million in the second quarter versus the first quarter 2024. The increase was primarily driven by $6.8 million in personal CDs, $6.4 million in brokered deposits, $6.3 million in non-personal CDs, and $4.4 million in Certificate of Deposit Account Registry Service, also known as CDARS, deposits. Non-maturity deposits decreased 2% on an annualized basis or $10.6 million. Senior borrowings increased $59.9 million to $329.3 million from the first quarter 2024 driven by funding loan growth and liquidity.
The Company's book value per share was $28.81 as of June 30, 2024 compared to $28.64 as of March 31, 2024. Unrealized losses on securities, net of taxes, reduced book value per share by $3.44 and $3.26 at the end of those respective periods. Tangible book value per share (Non-GAAP) was $20.68 at the end of the second quarter 2024, compared to $20.48 at the end of the first quarter 2024.
RESULTS OF OPERATIONS (June 30, 2024 compared to June 30, 2023)
Net interest margin was 3.09% compared to 3.22% in the second quarter 2023. The decrease was primarily driven by higher cost of funds, partially offset by lower borrowing costs. The yield on loans grew 42 basis points to 5.41% in the second quarter 2024, up from 4.99% in the same quarter 2023. Costs of interest-bearing deposits increased to 2.35% from 1.45% in the second quarter 2023 driven by the competitive pricing within the interest rate environment and change in deposit mix as we continue to experience a shift from non-maturity deposits to CDs. Borrowings decreased $69.5 million from the second quarter 2023 compounded with a 16 basis point decrease in yields on interest bearing liabilities to 4.57% in the second quarter 2024.
Total interest and dividend income increased by 9.2% to $46.8 million in the second quarter 2023 primarily driven by the repricing of adjustable-rate loans and originations of higher fixed-rate loans within the commercial portfolio. The yield on commercial real estate loans grew to 5.61% at the end of the second quarter 2024 from 5.21% in the second quarter 2023. Commercial and industrial yield grew to 6.76% at the end of the second quarter 2024 compared to 6.42% at the end of the second quarter 2023. Yields on earning assets continue to grow to 5.18% compared to 4.77% in the second quarter 2023.
The provision for credit losses was $585 thousand compared to $750 thousand in the second quarter 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 was 0.20% at the end of the second quarter 2024 compared to 0.22% in the second quarter 2023. Total delinquent and non-accruing loans to total loans was 0.30% at the end of the second quarter 2024 to compared to 0.33% in the second quarter 2023.
Non-interest income was $9.6 million in the second quarter 2024 compared to $9.0 million in the same quarter 2023. Wealth management income grew 10% to $4.2 million compared to $3.8 million in the in the second quarter 2023. Assets under management grew 12% in the second quarter 2024 to $2.6 billion from $2.3 billion in the second quarter 2023 driven by higher security valuations and a 2% growth in the managed accounts. Mortgage banking income increased $180 thousand compared to the second quarter 2023 driven by increased margins on our held–for-sale mortgage business.
Non-interest expense was $24.0 million in the second quarter 2024 compared to $23.4 million in the second quarter 2023 driven by salary and benefits, and other expenses, partially offset by the gain on sale of our Avery Lane office and lower professional services fees. Salary and benefit expenses increased 5%, or $637 thousand, from the comparative quarter 2023 driven in part by stock compensation due to increases in stock price and lower loan origination fee deferrals in the second quarter 2024. Other expenses increased to $4.4 million from $4.2 million in the second quarter 2023 primarily due to increases in charitable contributions to the community, software expenses, and debit and ATM card expenses.
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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.
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
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gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.
The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.
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CONTACTS
Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314
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| TABLE | |
| INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
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| | |
| A | Selected Financial Highlights |
| B | Balance Sheets |
| C | Loan and Deposit Analysis |
| D | Statements of Income |
| E | Statements of Income (Five Quarter Trend) |
| F | Average Yields and Costs |
| G | Average Balances |
| H | Asset Quality Analysis |
| I-J | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data |
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BAR HARBOR BANKSHARES
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Jun 30, | **** | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | |||||
| | | 2024 | | | 2024 | | 2023 | | 2023 | | 2023 | |||||
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Net earnings, diluted | $ | 0.67 | $ | 0.66 | $ | 0.65 | $ | 0.73 | $ | 0.71 | | |||||
| Core earnings, diluted ^(1)^ | | 0.66 | | 0.66 | | 0.68 | | 0.73 | | 0.71 | | |||||
| Total book value | | 28.81 | | 28.64 | | 28.48 | | 26.67 | | 27.12 | | |||||
| Tangible book value ^(1)^ | | 20.68 | | 20.48 | | 20.28 | | 18.45 | | 18.88 | | |||||
| Market price at period end | | 26.88 | | 26.48 | | 29.36 | | 23.63 | | 24.64 | | |||||
| Dividends | | 0.30 | | 0.28 | | 0.28 | | 0.28 | | 0.28 | | |||||
| | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS ^(2)^ | | | | | | | | | | | | | | | | |
| Return on assets | | 1.04 | % | | 1.03 | % | | 1.00 | % | | 1.11 | % | | 1.10 | % | |
| Core return on assets ^(1)^ | | 1.02 | | 1.03 | | 1.04 | | 1.11 | | 1.09 | | |||||
| Pre-tax, pre-provision return on assets | | | 1.36 | | | 1.32 | | | 1.34 | | | 1.49 | | | 1.47 | |
| Core pre-tax, pre-provision return on assets^(1)^ | | | 1.33 | | | 1.32 | | | 1.39 | | | 1.49 | | | 1.46 | |
| Return on equity | | 9.46 | | 9.31 | | 9.43 | | 10.72 | | 10.49 | | |||||
| Core return on equity ^(1)^ | | 9.25 | | 9.32 | | 9.82 | | 10.72 | | 10.42 | | |||||
| Return on tangible equity | | | 13.44 | | | 13.25 | | | 13.65 | | | 15.65 | | | 15.28 | |
| Core return on tangible equity ^(1)^ | | 13.15 | | 13.26 | | 14.21 | | 15.65 | | 15.19 | | |||||
| Net interest margin, fully taxable equivalent ^(1) (3)^ | | 3.09 | | 3.14 | | 3.17 | | 3.18 | | 3.22 | | |||||
| Efficiency ratio ^(1)^ | | 62.96 | | 62.91 | | 61.38 | | 58.59 | | 60.25 | | |||||
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| FINANCIAL DATA (In millions) | | | | | | | | | | | | | | | | |
| Total assets | $ | 4,034 | $ | 3,959 | $ | 3,971 | $ | 3,984 | $ | 4,029 | | |||||
| Total earning assets ^(4)^ | | 3,726 | | 3,663 | | 3,664 | | 3,687 | | 3,716 | | |||||
| Total investments | | 528 | | 538 | | 547 | | 524 | | 556 | | |||||
| Total loans | | 3,064 | | 3,012 | | 2,999 | | 2,993 | | 3,007 | | |||||
| Allowance for credit losses | | 29 | | 28 | | 28 | | 28 | | 27 | | |||||
| Total goodwill and intangible assets | | 124 | | 124 | | 124 | | 125 | | 125 | | |||||
| Total deposits | | 3,140 | | 3,127 | | 3,141 | | 3,140 | | 3,090 | | |||||
| Total shareholders' equity | | 439 | | 436 | | 432 | | 404 | | 411 | | |||||
| Net income | | 10 | | 10 | | 10 | | 11 | | 11 | | |||||
| Core earnings^(1)^ | | 10 | | 10 | | 10 | | 11 | | 11 | | |||||
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY AND CONDITION RATIOS | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries)^(5)^/average loans | | 0.01 | % | | 0.01 | % | | 0.07 | % | | — | % | | — | % | |
| Allowance for credit losses/total loans | | 0.94 | | 0.94 | | 0.94 | | 0.94 | | 0.91 | | |||||
| Loans/deposits | | 98 | | 96 | | 95 | | 95 | | 97 | | |||||
| Shareholders' equity to total assets | | 10.88 | | 11.01 | | 10.88 | | 10.15 | | 10.20 | | |||||
| Tangible shareholders' equity to tangible assets | | 8.06 | | 8.13 | | 8.00 | | 7.25 | | 7.32 | |
| (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
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | |||||
| (in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | |||||
| Assets | | | | | | ||||||||||
| Cash and due from banks | | $ | 39,673 | | $ | 30,770 | | $ | 42,221 | | $ | 41,210 | | $ | 46,532 |
| Interest-earning deposits with other banks | | 62,163 | | 45,449 | | 52,621 | | 81,606 | | 77,253 | |||||
| Total cash and cash equivalents | | 101,836 | | 76,219 | | 94,842 | | 122,816 | | 123,785 | |||||
| | | | | | | | | | | | | | | | |
| Securities available for sale | | 512,928 | | 527,603 | | 534,574 | | 509,453 | | 538,178 | |||||
| Federal Home Loan Bank stock | | 14,755 | | 9,960 | | 12,788 | | 14,834 | | 17,784 | |||||
| Total securities | | 527,683 | | 537,563 | | 547,362 | | 524,287 | | 555,962 | |||||
| | | | | | | | | | | | | | | | |
| Loans held for sale | | | 3,897 | | | 3,137 | | | 2,189 | | | 2,016 | | | 3,669 |
| | | | | | | | | | | | | | | | |
| Total loans | | 3,064,181 | | 3,011,672 | | 2,999,049 | | 2,992,791 | | 3,007,480 | |||||
| Less: Allowance for credit losses | | (28,855) | | (28,355) | | (28,142) | | (28,011) | | (27,362) | |||||
| Net loans | | 3,035,326 | | 2,983,317 | | 2,970,907 | | 2,964,780 | | 2,980,118 | |||||
| | | | | | | | | | | | | | | | |
| Premises and equipment, net | | 51,628 | | 47,849 | | 48,287 | | 47,790 | | 47,412 | |||||
| Other real estate owned | | — | | — | | — | | — | | — | |||||
| Goodwill | | 119,477 | | 119,477 | | 119,477 | | 119,477 | | 119,477 | |||||
| Other intangible assets | | 4,404 | | 4,637 | | 4,869 | | 5,102 | | 5,335 | |||||
| Cash surrender value of bank-owned life insurance | | 81,221 | | 80,642 | | 80,037 | | 79,469 | | 78,967 | |||||
| Deferred tax asset, net | | 24,750 | | 23,849 | | 22,979 | | 28,328 | | 24,181 | |||||
| Other assets | | 83,978 | | 82,285 | | 79,936 | | 89,876 | | 89,641 | |||||
| Total assets | | $ | 4,034,200 | | $ | 3,958,975 | | $ | 3,970,885 | | $ | 3,983,941 | | $ | 4,028,547 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Non-interest bearing demand | | $ | 553,067 | | $ | 544,495 | | $ | 569,714 | | $ | 618,421 | | $ | 602,667 |
| Interest-bearing demand | | 882,068 | | 888,591 | | 946,978 | | 929,481 | | 911,488 | |||||
| Savings | | 544,980 | | 551,493 | | 553,963 | | 572,271 | | 588,769 | |||||
| Money market | | 359,208 | | 365,289 | | 370,242 | | 361,839 | | 351,762 | |||||
| Time | | 801,143 | | 777,208 | | 700,260 | | 658,482 | | 635,559 | |||||
| Total deposits | | 3,140,466 | | 3,127,076 | | 3,141,157 | | 3,140,494 | | 3,090,245 | |||||
| | | | | | | | | | | | | | | | |
| Senior borrowings | | 329,349 | | 269,437 | | 271,044 | | 307,070 | | 398,972 | |||||
| Subordinated borrowings | | 60,541 | | 60,501 | | 60,461 | | 60,422 | | 60,371 | |||||
| Total borrowings | | 389,890 | | 329,938 | | 331,505 | | 367,492 | | 459,343 | |||||
| | | | | | | | | | | | | | | | |
| Other liabilities | | 64,937 | | 66,247 | | 66,164 | | 71,747 | | 68,243 | |||||
| Total liabilities | | 3,595,293 | | 3,523,261 | | 3,538,826 | | 3,579,733 | | 3,617,831 | |||||
| | | | | | | | | | | | | | | | |
| Total shareholders’ equity | | 438,907 | | 435,714 | | 432,059 | | 404,208 | | 410,716 | |||||
| Total liabilities and shareholders’ equity | | $ | 4,034,200 | | $ | 3,958,975 | | $ | 3,970,885 | | $ | 3,983,941 | | $ | 4,028,547 |
| | | | | | | | | | | | | | | | |
| Net shares outstanding | | 15,232 | | 15,212 | | 15,172 | | 15,156 | | 15,144 |
B
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | ||||
| | | | | | | | | | | | | | | | | | Growth % | ||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Quarter | | Year | |||||||
| (in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | to Date | | to Date | |||||||
| Commercial real estate | | $ | 1,634,658 | | $ | 1,574,802 | | $ | 1,552,061 | | $ | 1,548,835 | | $ | 1,551,748 | 15 | % | | 11 | % | |
| Commercial and industrial | | 421,297 | | 412,567 | | 400,169 | | 391,347 | | 388,430 | 8 | | 11 | | |||||||
| Total commercial loans | | 2,055,955 | | 1,987,369 | | 1,952,230 | | 1,940,182 | | 1,940,178 | 14 | | 11 | | |||||||
| | | | | | | | | | | | | | | | | | | | | | |
| Residential real estate | | 854,718 | | 873,213 | | 889,904 | | 896,757 | | 907,741 | (8) | | (7) | | |||||||
| Consumer | | 99,776 | | 95,838 | | 97,001 | | 95,160 | | 96,947 | 16 | | 6 | | |||||||
| Tax exempt and other | | 53,732 | | 55,252 | | 59,914 | | 60,692 | | 62,614 | (11) | | (21) | | |||||||
| Total loans | | $ | 3,064,181 | | $ | 3,011,672 | | $ | 2,999,049 | | $ | 2,992,791 | | $ | 3,007,480 | 7 | % | | 4 | % |
DEPOSIT ANALYSIS
| | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | ||||
| | | | | | | | | | | | | | | | | | Growth % | ||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Quarter | | Year | |||||||
| (in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | | to Date | | to Date | |||||||
| Non-interest bearing demand | | $ | 553,067 | | $ | 544,495 | | $ | 569,714 | | $ | 618,421 | | $ | 602,667 | 6 | % | | (6) | % | |
| Interest-bearing demand | | 882,068 | | 888,591 | | 946,978 | | 929,481 | | 911,488 | (3) | | (14) | | |||||||
| Savings | | 544,980 | | 551,493 | | 553,963 | | 572,271 | | 588,769 | (5) | | (3) | | |||||||
| Money market | | 359,208 | | 365,289 | | 370,242 | | 361,839 | | 351,762 | (7) | | (6) | | |||||||
| Total non-maturity deposits | | 2,339,323 | | 2,349,868 | | 2,440,897 | | 2,482,012 | | 2,454,686 | (2) | | (8) | | |||||||
| Time | | 801,143 | | 777,208 | | 700,260 | | 658,482 | | 635,559 | 12 | | 29 | | |||||||
| Total deposits | | $ | 3,140,466 | | $ | 3,127,076 | | $ | 3,141,157 | | $ | 3,140,494 | | $ | 3,090,245 | 2 | % | | — | % |
C
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | | June 30, | | June 30, | ||||||||
| (in thousands, except per share data) | **** | 2024 | **** | 2023 | **** | 2024 | **** | 2023 | ||||
| Interest and dividend income | | | | | ||||||||
| Loans | | $ | 40,634 | | $ | 36,917 | | $ | 80,104 | | $ | 71,477 |
| Securities and other | | 6,204 | | 5,964 | | 12,557 | | 11,755 | ||||
| Total interest and dividend income | | 46,838 | | 42,881 | | 92,661 | | 83,232 | ||||
| Interest expense | | | | | | | ||||||
| Deposits | | 14,780 | | 8,590 | | 29,312 | | 13,855 | ||||
| Borrowings | | 4,299 | | 5,501 | | 7,535 | | 9,681 | ||||
| Total interest expense | | 19,079 | | 14,091 | | 36,847 | | 23,536 | ||||
| Net interest income | | 27,759 | | 28,790 | | 55,814 | | 59,696 | ||||
| Provision for credit losses | | 585 | | 750 | | 874 | | 1,548 | ||||
| Net interest income after provision for credit losses | | 27,174 | | 28,040 | | 54,940 | | 58,148 | ||||
| Non-interest income | | | | | ||||||||
| Trust and investment management fee income | | 4,193 | | 3,805 | | 7,863 | | 7,360 | ||||
| Customer service fees | | 3,737 | | 3,774 | | 7,447 | | 7,451 | ||||
| Gain on sales of securities, net | | 50 | | — | | 50 | | 34 | ||||
| Mortgage banking income | | | 558 | | | 378 | | | 815 | | | 657 |
| Bank-owned life insurance income | | 583 | | 503 | | 1,144 | | 1,651 | ||||
| Customer derivative income | | 168 | | 83 | | 168 | | 215 | ||||
| Other income | | 344 | | 437 | | 732 | | 796 | ||||
| Total non-interest income | | 9,633 | | 8,980 | | 18,219 | | 18,164 | ||||
| Non-interest expense | | | | | ||||||||
| Salaries and employee benefits | | 13,860 | | 13,223 | | 27,108 | | 25,994 | ||||
| Occupancy and equipment | | 4,382 | | 4,392 | | 8,855 | | 8,806 | ||||
| Gain on sales of premises and equipment, net | | (248) | | (86) | | (263) | | (99) | ||||
| Outside services | | 462 | | 424 | | 800 | | 780 | ||||
| Professional services | | 238 | | 355 | | 638 | | 781 | ||||
| Communication | | 192 | | 175 | | 381 | | 337 | ||||
| Marketing | | 521 | | 476 | | 1,088 | | 885 | ||||
| Amortization of intangible assets | | 233 | | 233 | | 466 | | 466 | ||||
| Acquisition, conversion and other expenses | | — | | — | | 20 | | 20 | ||||
| Provision for unfunded commitments | | | — | | 45 | | (185) | | (130) | |||
| Other expenses | | 4,378 | | 4,155 | | 8,798 | | 8,256 | ||||
| Total non-interest expense | | 24,018 | | 23,392 | | 47,706 | | 46,096 | ||||
| Income before income taxes | | 12,789 | | 13,628 | | 25,453 | | 30,216 | ||||
| Income tax expense | | 2,532 | | 2,837 | | 5,101 | | 6,413 | ||||
| Net income | | $ | 10,257 | | $ | 10,791 | | $ | 20,352 | | $ | 23,803 |
| | | | | | | | | | | | | |
| Earnings per share: | | | | | ||||||||
| Basic | | $ | 0.67 | | $ | 0.71 | | $ | 1.34 | | $ | 1.57 |
| Diluted | | 0.67 | | 0.71 | | 1.33 | | 1.57 | ||||
| | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | ||||||||
| Basic | | 15,227 | | 15,139 | | 15,213 | | 15,125 | ||||
| Diluted | | 15,275 | | 15,180 | | 15,273 | | 15,186 |
D
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | |||||
| (in thousands, except per share data) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | |||||
| Interest and dividend income | | | | | | ||||||||||
| Loans | | $ | 40,634 | | $ | 39,470 | | $ | 39,531 | | $ | 38,412 | | $ | 36,917 |
| Securities and other | | 6,204 | | | 6,353 | | | 6,284 | | | 6,723 | | | 5,964 | |
| Total interest and dividend income | | 46,838 | | | 45,823 | | | 45,815 | | | 45,135 | | | 42,881 | |
| Interest expense | | | | | | | | | | ||||||
| Deposits | | 14,780 | | | 14,532 | | | 12,962 | | | 11,415 | | | 8,590 | |
| Borrowings | | 4,299 | | | 3,236 | | | 4,060 | | | 4,534 | | | 5,501 | |
| Total interest expense | | 19,079 | | | 17,768 | | | 17,022 | | | 15,949 | | | 14,091 | |
| Net interest income | | 27,759 | | | 28,055 | | | 28,793 | | | 29,186 | | | 28,790 | |
| Provision for credit losses | | 585 | | | 289 | | | 687 | | | 673 | | | 750 | |
| Net interest income after provision for credit losses | | 27,174 | | | 27,766 | | | 28,106 | | | 28,513 | | | 28,040 | |
| Non-interest income | | | | | | | | | | ||||||
| Trust and investment management fee income | | 4,193 | | | 3,670 | | | 3,401 | | | 3,522 | | | 3,805 | |
| Customer service fees | | 3,737 | | | 3,710 | | | 3,791 | | | 3,926 | | | 3,774 | |
| Gain on sales of securities, net | | 50 | | | — | | | — | | | — | | | — | |
| Mortgage banking income | | | 558 | | | 257 | | | 515 | | | 415 | | | 378 |
| Bank-owned life insurance income | | 583 | | | 561 | | | 533 | | | 515 | | | 503 | |
| Customer derivative income | | 168 | | | — | | | 151 | | | 43 | | | 83 | |
| Other income | | 344 | | | 388 | | | 459 | | | 394 | | | 437 | |
| Total non-interest income | | 9,633 | | | 8,586 | | | 8,850 | | | 8,815 | | | 8,980 | |
| Non-interest expense | | | | | | | | | | ||||||
| Salaries and employee benefits | | 13,860 | | | 13,248 | | | 13,511 | | | 13,011 | | | 13,223 | |
| Occupancy and equipment | | 4,382 | | | 4,473 | | | 4,309 | | | 4,469 | | | 4,392 | |
| (Gain) loss on sales of premises and equipment, net | | (248) | | | (15) | | | 281 | | | — | | | (86) | |
| Outside services | | 462 | | | 338 | | | 515 | | | 376 | | | 424 | |
| Professional services | | 238 | | | 400 | | | 369 | | | 436 | | | 355 | |
| Communication | | 192 | | | 189 | | | 190 | | | 170 | | | 175 | |
| Marketing | | 521 | | | 567 | | | 485 | | | 326 | | | 476 | |
| Amortization of intangible assets | | 233 | | | 233 | | | 233 | | | 233 | | | 233 | |
| Acquisition, conversion and other expenses | | — | | | 20 | | | 263 | | | — | | | — | |
| Provision for unfunded commitments | | | — | | | (185) | | | — | | | 45 | | | 45 |
| Other expenses | | 4,378 | | | 4,420 | | | 4,211 | | | 3,950 | | | 4,155 | |
| Total non-interest expense | | 24,018 | | 23,688 | | 24,367 | | 23,016 | | 23,392 | |||||
| Income before income taxes | | 12,789 | | 12,664 | | 12,589 | | 14,312 | | 13,628 | |||||
| Income tax expense | | 2,532 | | | 2,569 | | | 2,644 | | | 3,208 | | | 2,837 | |
| Net income | | $ | 10,257 | | $ | 10,095 | | $ | 9,945 | | $ | 11,104 | | $ | 10,791 |
| | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | ||||||||||
| Basic | | $ | 0.67 | | $ | 0.66 | | $ | 0.66 | | $ | 0.73 | | $ | 0.71 |
| Diluted | | 0.67 | | 0.66 | | 0.65 | | 0.73 | | 0.71 | |||||
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | ||||||||||
| Basic | | 15,227 | | | 15,198 | | | 15,164 | | | 15,155 | | | 15,139 | |
| Diluted | | 15,275 | | | 15,270 | | | 15,221 | | | 15,196 | | | 15,180 |
E
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | **** | ||||||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** |
| | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | **** |
| Earning assets | | | | | | | | | | | |
| Interest-earning deposits with other banks^^ | | 5.65 | % | 5.88 | % | 6.42 | % | 5.02 | % | 5.59 | % |
| Securities available for sale and FHLB stock | | 4.00 | | 4.02 | | 3.85 | | 3.87 | | 3.71 | |
| Loans: | | | | | | | | | | | |
| Commercial real estate | 5.61 | | 5.47 | | 5.46 | | 5.34 | | 5.21 | | |
| Commercial and industrial | 6.76 | 6.68 | 6.66 | 6.56 | 6.42 | | |||||
| Residential real estate | 4.13 | 4.09 | 3.94 | 3.84 | 3.76 | | |||||
| Consumer | 7.26 | 7.22 | 7.14 | 6.88 | 6.67 | | |||||
| Total loans | 5.41 | 5.31 | 5.24 | 5.11 | 4.99 | | |||||
| Total earning assets | 5.18 | % | 5.10 | % | 5.02 | % | 4.90 | % | 4.77 | % | |
| | | | | | | | | | | | |
| Funding liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Interest-bearing demand | 1.39 | % | 1.34 | % | 1.33 | % | 1.11 | % | 0.94 | % | |
| Savings | 0.65 | 0.63 | 0.48 | 0.42 | 0.37 | | |||||
| Money market | 2.93 | 3.07 | 2.80 | 2.55 | 2.52 | | |||||
| Time | 4.33 | 4.18 | 3.93 | 3.65 | 2.82 | | |||||
| Total interest-bearing deposits | 2.35 | 2.26 | 2.05 | 1.81 | 1.45 | | |||||
| Borrowings | 4.57 | 4.35 | 4.64 | 4.59 | 4.73 | | |||||
| Total interest-bearing liabilities | 2.64 | % | 2.48 | % | 2.37 | % | 2.19 | % | 1.99 | % | |
| | | | | | | | | | | | |
| Net interest spread | 2.54 | 2.62 | 2.65 | 2.71 | 2.78 | | |||||
| Net interest margin, fully taxable equivalent^(1)^ | 3.09 | 3.14 | 3.17 | 3.18 | 3.22 | |
| (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 | |||||||||||||
| | | Jun 30, | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | |||||
| (in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | |||||
| Assets | | | | | | ||||||||||
| Interest-earning deposits with other banks^(1)^ | | $ | 27,407 | | $ | 36,608 | | $ | 36,794 | | $ | 70,499 | | $ | 21,440 |
| Securities available for sale and FHLB stock ^(2)^ | | | 607,868 | | | 604,658 | | | 608,793 | | | 620,851 | | | 636,088 |
| Loans: | | | | | | | | | | | | | | | |
| Commercial real estate | | | 1,600,253 | | | 1,558,506 | | | 1,554,961 | | | 1,550,188 | | | 1,536,035 |
| Commercial and industrial | | 468,052 | | 464,762 | | 457,642 | | 439,915 | | 434,384 | |||||
| Residential real estate | | 865,412 | | 884,767 | | 898,147 | | 909,296 | | 911,788 | |||||
| Consumer | | 97,371 | | 96,163 | | 95,193 | | 96,362 | | 97,518 | |||||
| Total loans ^(3)^ | | 3,031,088 | | 3,004,198 | | 3,005,943 | | 2,995,761 | | 2,979,725 | |||||
| Total earning assets | | 3,666,363 | | 3,645,464 | | 3,651,530 | | 3,687,111 | | 3,637,253 | |||||
| Cash and due from banks | | 30,809 | | 29,900 | | 34,741 | | 36,713 | | 32,067 | |||||
| Allowance for credit losses | | (28,567) | | (28,122) | | (28,057) | | (27,473) | | (26,932) | |||||
| Goodwill and other intangible assets | | 123,994 | | 124,225 | | 124,459 | | 124,926 | | 124,926 | |||||
| Other assets | | 167,150 | | 166,538 | | 157,159 | | 162,801 | | 163,388 | |||||
| Total assets | | $ | 3,959,749 | | $ | 3,938,005 | | $ | 3,939,832 | | $ | 3,984,078 | | $ | 3,930,702 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Deposits: | | | | | | | | | | | | | | | |
| Interest-bearing demand | | $ | 858,657 | | $ | 899,349 | | $ | 916,314 | | $ | 915,072 | | $ | 885,091 |
| Savings | | 542,950 | | 552,231 | | 552,932 | | 579,090 | | 602,724 | |||||
| Money market | | 355,731 | | 390,720 | | 365,142 | | 358,742 | | 423,013 | |||||
| Time | | 775,932 | | 738,683 | | 670,628 | | 645,285 | | 468,188 | |||||
| Total interest-bearing deposits | | 2,533,270 | | 2,580,983 | | 2,505,016 | | 2,498,189 | | 2,379,016 | |||||
| Borrowings | | 378,121 | | 298,918 | | 347,459 | | 391,976 | | 466,402 | |||||
| Total interest-bearing liabilities | | 2,911,391 | | 2,879,901 | | 2,852,475 | | 2,890,165 | | 2,845,418 | |||||
| Non-interest bearing demand deposits | | 546,448 | | 554,816 | | 604,638 | | 610,644 | | 608,180 | |||||
| Other liabilities | | 65,712 | | 67,327 | | 64,092 | | 72,409 | | 64,346 | |||||
| Total liabilities | | 3,523,551 | | 3,502,044 | | 3,521,205 | | 3,573,218 | | 3,517,944 | |||||
| Total shareholders' equity | | 436,198 | | 435,961 | | 418,627 | | 410,860 | | 412,758 | |||||
| Total liabilities and shareholders' equity | | $ | 3,959,749 | | $ | 3,938,005 | | $ | 3,939,832 | | $ | 3,984,078 | | $ | 3,930,702 |
| (1) | Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter. |
|---|---|
| (2) | Average balances for securities available-for-sale are based on amortized cost. |
| --- | --- |
| (3) | Total average loans include non-accruing loans and loans held for sale. |
| --- | --- |
G
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | | |||||||||||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | |||||
| (in thousands) | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | **** | |||||
| NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Non-accruing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 551 | $ | 578 | $ | 610 | $ | 867 | $ | 909 | | |||||
| Commercial and industrial | | 1,301 | | 1,152 | | 363 | | 1,595 | | 1,814 | | |||||
| Residential real estate | | 3,511 | | 4,169 | | 3,742 | | 3,673 | | 3,415 | | |||||
| Consumer | | 914 | | 971 | | 813 | | 635 | | 565 | | |||||
| Total non-accruing loans | | 6,277 | | 6,870 | | 5,528 | | 6,770 | | 6,703 | | |||||
| Other real estate owned | | — | | — | | — | | — | | — | | |||||
| Total non-performing assets | $ | 6,277 | $ | 6,870 | $ | 5,528 | $ | 6,770 | $ | 6,703 | | |||||
| | | | | | | | | | | | | | | | | |
| Total non-accruing loans/total loans | | 0.20 | % | | 0.23 | % | | 0.18 | % | | 0.23 | % | | 0.22 | % | |
| Total non-performing assets/total assets | | 0.16 | | 0.17 | | 0.14 | | 0.17 | | 0.17 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 28,355 | $ | 28,142 | $ | 28,011 | $ | 27,362 | $ | 26,607 | | |||||
| Charged-off loans | | (106) | | (113) | | (632) | | (74) | | (199) | | |||||
| Recoveries on charged-off loans | | 21 | | 37 | | 76 | | 50 | | 204 | | |||||
| Net loans (charged-off) recovered | | (85) | | (76) | | (556) | | (24) | | 5 | | |||||
| Provision for credit losses | | 585 | | 289 | | 687 | | 673 | | 750 | | |||||
| Balance at end of period | $ | 28,855 | $ | 28,355 | $ | 28,142 | $ | 28,011 | $ | 27,362 | | |||||
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses/total loans | | 0.94 | % | | 0.94 | % | | 0.94 | % | | 0.94 | % | | 0.91 | % | |
| Allowance for credit losses/non-accruing loans | | 460 | | 413 | | 509 | | 414 | | 408 | | |||||
| | | | | | | | | | | | | | | | | |
| NET LOAN (CHARGE-OFFS) RECOVERIES | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | — | $ | (3) | $ | — | $ | — | $ | (72) | | |||||
| Commercial and industrial | | (2) | | (64) | | (479) | | 34 | | 139 | | |||||
| Residential real estate | | 3 | | 5 | | 3 | | 13 | | 3 | | |||||
| Consumer | | (86) | | (14) | | (80) | | (71) | | (65) | | |||||
| Total, net | $ | (85) | $ | (76) | $ | (556) | $ | (24) | $ | 5 | | |||||
| | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries) (QTD annualized)/average loans | | 0.01 | % | | 0.01 | % | | 0.07 | % | | — | % | | — | % | |
| Net charge-offs (recoveries) (YTD annualized)/average loans | | 0.01 | | 0.01 | | 0.02 | | 0.01 | | — | | |||||
| | | | | | | | | | | | | | | | | |
| DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | | | | | | | | | | | | | | | | |
| 30-89 Days delinquent | | 0.10 | % | | 0.14 | % | | 0.11 | % | | 0.13 | % | | 0.09 | % | |
| 90+ Days delinquent and still accruing | | — | | — | | 0.01 | | 0.03 | | 0.02 | | |||||
| Total accruing delinquent loans | | 0.10 | | 0.14 | | 0.12 | | 0.16 | | 0.11 | | |||||
| Non-accruing loans | | 0.20 | | 0.23 | | 0.18 | | 0.23 | | 0.22 | | |||||
| Total delinquent and non-accruing loans | | 0.30 | % | | 0.37 | % | | 0.30 | % | | 0.39 | % | | 0.33 | % |
H
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | |||||||||||||
| | | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | ||||||
| (in thousands) | | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | ||||||
| Net income | | | | $ | 10,257 | | $ | 10,095 | | $ | 9,945 | | $ | 11,104 | | $ | 10,791 |
| Non-core items: | | | | | | | | | | | | | | | | | |
| Gain on sale of securities, net | | | | (50) | | — | | — | | — | | — | |||||
| (Gain) loss on sale of premises and equipment, net | | | | (248) | | (15) | | 281 | | — | | (86) | |||||
| Acquisition, conversion and other expenses | | | | — | | 20 | | 263 | | — | | — | |||||
| Income tax expense ^(1)^ | | | | 71 | | (1) | | (131) | | — | | 20 | |||||
| Total non-core items | | | | | (227) | | | 4 | | | 413 | | | — | | | (66) |
| Core earnings ^(2)^ | (A) | | $ | 10,030 | | $ | 10,099 | | $ | 10,358 | | $ | 11,104 | | $ | 10,725 | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | (B) | | $ | 27,759 | | $ | 28,055 | | $ | 28,793 | | $ | 29,186 | | $ | 28,790 | |
| Non-interest income | | | | 9,633 | | 8,586 | | 8,850 | | 8,815 | | 8,980 | |||||
| Total revenue | | | | 37,392 | | 36,641 | | 37,643 | | 38,001 | | 37,770 | |||||
| Gain on sale of securities, net | | | | (50) | | — | | — | | — | | — | |||||
| Total core revenue ^(2)^ | (C) | | $ | 37,342 | | $ | 36,641 | | $ | 37,643 | | $ | 38,001 | | $ | 37,770 | |
| | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | 24,018 | | 23,688 | | 24,367 | | 23,016 | | 23,392 | |||||
| Non-core expenses: | | | | | | | | | | | | | | | | | |
| Gain (loss) on sale of premises and equipment, net | | | | 248 | | 15 | | (281) | | — | | 86 | |||||
| Acquisition, conversion and other expenses | | | | — | | (20) | | (263) | | — | | — | |||||
| Total non-core expenses | | | | | 248 | | | (5) | | | (544) | | | — | | | 86 |
| Core non-interest expense ^(2)^ | (D) | | $ | 24,266 | | $ | 23,683 | | $ | 23,823 | | $ | 23,016 | | $ | 23,478 | |
| | | | | | | | | | | | | | | | | | |
| Total revenue | | | | | 37,392 | | | 36,641 | | | 37,643 | | | 38,001 | | | 37,770 |
| Total non-interest expense | | | | | 24,018 | | | 23,688 | | | 24,367 | | | 23,016 | | | 23,392 |
| Pre-tax, pre-provision net revenue | | | | $ | 13,374 | | $ | 12,953 | | $ | 13,276 | | $ | 14,985 | | $ | 14,378 |
| | | | | | | | | | | | | | | | | | |
| Core revenue^(2)^ | | | | | 37,342 | | | 36,641 | | | 37,643 | | | 38,001 | | | 37,770 |
| Core non-interest expense^(2)^ | | | | | 24,266 | | | 23,683 | | | 23,823 | | | 23,016 | | | 23,478 |
| Core pre-tax, pre-provision net revenue^(2)^ | | (U) | | $ | 13,076 | | $ | 12,958 | | $ | 13,820 | | $ | 14,985 | | $ | 14,292 |
| | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | ||||||||||
| Average earning assets | (E) | | $ | 3,666 | | $ | 3,645 | | $ | 3,652 | | $ | 3,687 | | $ | 3,637 | |
| Average assets | (F) | | 3,960 | | 3,938 | | 3,940 | | 3,984 | | 3,931 | ||||||
| Average shareholders' equity | (G) | | 436 | | 436 | | 419 | | 411 | | 413 | ||||||
| Average tangible shareholders' equity ^(2) (3)^ | (H) | | 312 | | 312 | | 294 | | 286 | | 288 | ||||||
| Tangible shareholders' equity, period-end ^(2) (3)^ | (I) | | 315 | | 312 | | 308 | | 280 | | 286 | ||||||
| Tangible assets, period-end ^(2) (3)^ | (J) | | 3,910 | | 3,835 | | 3,847 | | 3,859 | | 3,904 | ||||||
| | | | | | | | | | | | | | | | | | |
I
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Jun 30, | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | |||||||
| (in thousands) | | | | 2024 | | 2024 | | 2023 | | 2023 | | 2023 | **** | |||||
| Common shares outstanding, period-end | (K) | | 15,232 | | 15,212 | | 15,172 | | 15,156 | | 15,144 | | ||||||
| Average diluted shares outstanding | (L) | | 15,275 | | 15,270 | | 15,221 | | 15,196 | | 15,180 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Core earnings per share, diluted ^(2)^ | (A/L) | | $ | 0.66 | | $ | 0.66 | | $ | 0.68 | | $ | 0.73 | | $ | 0.71 | | |
| Tangible book value per share, period-end ^(2)^ | (I/K) | | 20.68 | | 20.48 | | 20.28 | | 18.45 | | 18.88 | | ||||||
| Securities adjustment, net of tax ^(1) (4)^ | (M) | | (52,313) | | (49,633) | | (47,649) | | (66,530) | | (55,307) | | ||||||
| Tangible book value per share, excluding securities adjustment ^(2) (4)^ | (I+M)/K | | 24.12 | | 23.75 | | 23.42 | | 22.84 | | 22.53 | | ||||||
| Tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | | 8.06 | | 8.13 | | 8.00 | | 7.25 | | 7.32 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Performance ratios ^(5)^ | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | 1.04 | % | | 1.03 | % | | 1.00 | % | | 1.11 | % | | 1.10 | % | |
| Core return on assets ^(2)^ | (A/F) | | 1.02 | | 1.03 | | 1.04 | | 1.11 | | 1.09 | | ||||||
| Pre-tax, pre-provision return on assets | | | | | 1.36 | | | 1.32 | | | 1.34 | | | 1.49 | | | 1.47 | |
| Core pre-tax, pre-provision return on assets^(2)^ | | (U/F) | | | 1.33 | | | 1.32 | | | 1.39 | | | 1.49 | | | 1.46 | |
| GAAP return on equity | | | | 9.46 | | 9.31 | | 9.43 | | 10.72 | | 10.49 | | |||||
| Core return on equity ^(2)^ | (A/G) | | 9.25 | | 9.32 | | 9.82 | | 10.72 | | 10.42 | | ||||||
| Return on tangible equity | | | | | 13.44 | | | 13.25 | | | 13.65 | | | 15.65 | | | 15.28 | |
| Core return on tangible equity ^(1) (2)^ | (A+Q)/H | | 13.15 | | 13.26 | | 14.21 | | 15.65 | | 15.19 | | ||||||
| Efficiency ratio ^(2) (6)^ | (D-O-Q)/(C+N) | | 62.96 | | 62.91 | | 61.38 | | 58.59 | | 60.25 | | ||||||
| Net interest margin, fully taxable equivalent ^(2)^ | (B+P)/E | | 3.09 | | 3.14 | | 3.17 | | 3.18 | | 3.22 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Supplementary data (in thousands) | | | | | | | | | | | | | | | | | | |
| Taxable equivalent adjustment for efficiency ratio | (N) | | $ | 528 | | $ | 523 | | $ | 561 | | $ | 565 | | $ | 539 | | |
| Franchise taxes included in non-interest expense | (O) | | 191 | | 70 | | 141 | | 186 | | 163 | | ||||||
| Tax equivalent adjustment for net interest margin | (P) | | 389 | | 388 | | 395 | | 405 | | 382 | | ||||||
| Intangible amortization | (Q) | | 233 | | 233 | | 233 | | 233 | | 233 | |
| (1) | Assumes a marginal tax rate of 23.82% in the second quarter 2024, 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