8-K
BAR HARBOR BANKSHARES (BHB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OFTHE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 27, 2021
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.) |
| | | |
| 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 April 27, 2021, Bar Harbor Bankshares issued a press release reporting its financial results for the quarter ended March 31, 2021. The full text of this press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.
The information contained herein, including the exhibit furnished herewith, is intended to be furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such filing.
Item 8.01 Other Events
On April 20, 2021, the Board of Directors authorized a stock repurchase plan (the “Plan”). Under the terms of the Plan, the Company is authorized to repurchase up to 5% of its outstanding common stock, representing approximately 747,000 shares as of March 31, 2021. The plan is authorized to last no longer than twelve months, and may be suspended or discontinued at any time without notice.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
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|---|---|---|
| Exhibit No. | **** | Description |
| | | |
| 99.1<br><br>104 | | Press Release dated April 27, 2021<br><br>Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document<br><br> |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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| | Bar Harbor Bankshares | |
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| April 27, 2021 | By: | /s/ Curtis C. Simard |
| | | Curtis C. Simard |
| | | President and CEO |
Exhibit 99.1
Bar Harbor Bankshares Reports First Quarter Results; Record Core ROA
BAR HARBOR, MAINE – April 27, 2021 - Bar Harbor Bankshares (NYSE American: BHB) reported a 26% increase in earnings for the first quarter 2021 compared to the same quarter of 2020. Net income in the first quarter 2021 was $9.5 million, or $0.63 per share, compared to $7.7 million, or $0.50 per share in the same quarter of 2020. For the same periods, core earnings (non-GAAP) were $10.2 million, or $0.68 per share, compared to $7.8 million, or $0.50 per share. Non-core charges (non-GAAP) in the first quarter 2021 included a reduction in workforce charges totaling $900 thousand, or $0.05 per share.
FIRST QUARTER FINANCIAL HIGHLIGHTS (compared to the first quarter 2020, unless otherwise noted)
| ● | 1.03% return on assets; 1.11% core return on assets (non-GAAP) |
|---|---|
| ● | 8% annualized total commercial loan growth, excluding PPP loans |
| --- | --- |
| ● | 12% annualized increase in core deposits |
| --- | --- |
| ● | 5% increase in pre-tax, pre-provision net revenue; 13% excluding non-core charges (non-GAAP) |
| --- | --- |
| ● | 22% increase in fee income |
| --- | --- |
| ● | 0.55% non-accrual to total loan ratio, 0.47% excluding purchased credit deteriorated (PCD) loans (non-GAAP), net charge-offs near zero |
| --- | --- |
President and Chief Executive Officer, Curtis C. Simard stated, “During the first quarter, we increased core earnings 36% over the prior year, boosting our core return on assets to 1.11%. Earnings in the quarter were driven by strong 8% annualized growth in total commercial loans excluding PPP loans, higher wealth management and mortgage banking income, lower core non-interest expenses and a credit provision recapture. In short, a 13% increase in core pre-tax, pre-provision net revenue reflects continued development across the Company’s varying businesses lines. Wealth management income increased 9% due to a 23% increase in assets under management (AUM) compared to the same quarter of 2020. This increase reflects the strength of our newly consolidated platform as well as improved market conditions. Balancing growth with earnings is a key fundamental of our business model. Mindful of this, we continue to generate significant gains from residential loan sales that are more profitable to the Bank in the short and long term versus recording them on our balance sheet.
“Our management teams did a great job focusing on profitability, reducing most categories of non-interest expense during the first quarter 2021. Also, during the first quarter, we kicked off an intensive review of our non-interest expense leveraging a strategic third-party partner. The goal of the review is to identify normalized expense run-rates that are optimal for our current size and footprint, and establish sustainable run-rates that allow for revenue growth in the future. We recorded non-core charges related to early retirement and reduction in workforce initiatives, as a result of early milestones achieved in our expense review. These non-core charges are expected to decrease salary and benefit expense by more than $3.0 million annually starting in the second quarter 2021. The final results of the review and action plans are expected to be completed by the end of the second quarter. Our provision for credit losses was also a benefit to earnings of $500 thousand due to improved macroeconomic expectations along with lower specific reserves. Of note, we did not take outsized provisions in prior quarters based on the results of our quarterly stress testing and tightly managed credit discipline. ”
Mr. Simard continued, “Our loan to deposit ratio remains strong at 88% as we continue to enhance liquidity levels through new core deposit account openings totaling 4,300 in the first quarter. Deposit growth has also allowed us to optimize our cost of funds by reducing wholesale funding as a percentage of total debt to 15%, compared to 29% for the first quarter 2020. Over the past several quarters excess liquidity was used to fund earning asset growth, specifically in commercial loans.
“We adopted CECL effective January 1, 2021, which increased our allowance for credit losses (ACL) by $5.2 million and reserve for unfunded commitments by $1.6 million. As a result of the adoption, the coverage ratio of ACL to total loans increased to 0.94% from 0.76% in the fourth quarter of 2020, excluding PPP loans. Additionally, past due accounts within the commercial real estate and residential product lines were significantly down from year-end 2020 and total past due accounts were about half of levels experienced prior to the pandemic. Past due accounts totaled $15.7 million for the first quarter 2021 compared to $31.1 million for the same quarter of 2020. While uncertainties around general economic factors still exist, we continue to see positive trends in our credit quality indicators.
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“We continue to support our customers with PPP loans and COVID related loan modifications. At the end of the quarter, we had $23.7 million and $54.2 million of PPP loans that were originated in 2020 and 2021, respectively. Unearned fees on PPP loans at quarter-end were $340 thousand from 2020 originations and $3.5 million from 2021 originations. Although most of these loans are expected to be forgiven, the impact is not expected to have a significant effect on the operating results of any single quarter. COVID modifications totaled $43.0 million at the end of the quarter, down from $68.6 million at year-end 2020, and largely represent commercial loans. These modifications are considered modest and backed by the strong credit quality of the borrowers. Most of the modifications are set to resume normal principal and interest payments starting in the second quarter.”
Mr. Simard further stated, “Our capital position continues to strengthen as we grow tangible book value on a 7% organic basis that excludes unrealized security gains and the impact of adopting CECL (non-GAAP). As previously announced we increased our quarterly cash dividend 9% with an approximate annual yield of 3.26% on the heels of the 2020 repurchase of approximately 720 thousand shares. In addition, the Board of Directors approved a stock repurchase plan, authorizing the repurchase of up to 5% of our outstanding common stock, representing approximately 747,000 shares as of March 31, 2021, which is authorized to last no longer than 12 months. These return of capital measures are supported by expanded earnings, continuous growth in capital and on-going profitability programs, validating our commitment to building shareholder value.”
Mr. Simard concluded, “We are pleased with our start to 2021. Our talented teams remain committed to our customers and communities, and we continue to focus on our fee businesses, balance sheet management and credit performance. These strategic priorities drive all areas of revenue and expense control expanding both return on assets and return on capital for the long-term.”
FINANCIAL CONDITION
Total asset growth was flat in the first quarter 2021 as we continue to reposition and take advantage of the current interest rate and market conditions of the banking industry. Total loans decreased during the quarter primarily due to prepayments within the commercial and industrial and residential portfolios along with secondary market sales. Those decreases were partially offset by increases in commercial real estate and PPP loan growth.
Commercial real estate loans grew 13% on an annualized basis and included new originations of highly sought after borrowers in favorable industries within our footprint. PPP loans totaled $77.9 million at quarter-end consisting of $54.2 million from 2021 originations and $23.7 million remaining from 2020 originations. Applications for 2021 PPP loans continue to be processed and are expected to end by the third quarter 2021 timeframe in accordance with the Consolidation and Appropriations Act 2021. Residential loans, including held for sale loans, decreased $69.6 million due to $60.7 million of originations less sales of $69.2 million and prepayments of $61.1 million due to our strategy to sell newly originated loans, allowing for the run-off of lower yielding loans.
Total deposits during the quarter increased $6.1 million to $2.9 billion. Non-maturity deposits increased $66.1 million, or 12% on an annualized basis due to growth in new customer accounts totaling 4,300. Time deposits decreased $59.9 million to $638.4 million at quarter-end as the result of $57.0 million of brokered deposits reaching maturity.
The Company adopted the accounting standard known as CECL as of January 1, 2021. The effect of adoption increased the ACL by $5.2 million and unfunded commitment reserves by $1.6 million at the beginning of the quarter. The overall impact to equity was $5.2 million net of deferred taxes. During the quarter the ACL decreased due to improved macroeconomic forecasts and reserves on specific loans. The ACL to total loans ratio, excluding PPP, for the first quarter expanded to 0.94% from 0.76% in the fourth quarter 2020. The increase in non-accrual loans is primarily due to the conversion of purchase credit impaired (PCI) loans to purchase credit deteriorated (PCD) loans with the CECL adoption, which does not represent a true change in the credit quality of our portfolios. Excluding PCD loans, our ratio of non-accrual loans to total was 0.47% for the first quarter compared to 0.48% at year-end 2020. While the first quarter ACL includes the effect of net charge-offs, the majority is due to the settlement of a PCD loan that had a $300 thousand discount that increased interest income as a recovery. There were no significant downgrades in credit quality identified through commercial loan stress testing or through regular credit reviews.
The Company’s book value per share was $27.13 at March 31, 2021 compared with $27.58 at December 31, 2020. Net unrealized gains on securities increased equity by $4.5 million at the end of the quarter and $10.0 million at year-end 2020. Unrealized gains during the quarter were lower due to fair value adjustments affected by the upward movement in the treasury yield curve in years 3 to 30 and related impact to our weighted average 5 year portfolio duration. Equity was also reduced by $5.2 million in the first quarter due to implementing CECL. Excluding security adjustments and CECL adoption, tangible book value per share was $18.69 and $18.38 as of March 31, 2021 and December 31, 2020, respectively.
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RESULTS OF OPERATIONS
Net income in the first quarter 2021 was $9.5 million, or $0.63 per share, compared to $7.7 million, or $0.50 per share, in the same quarter of 2020. Net income benefited from higher fee income, lower operating expenses and a credit provision recapture in the first quarter 2021. Core earnings in the first quarter 2021 totaled $10.2 million or $0.68 per share, compared to $7.8 million, or $0.50 per share, in the same quarter of 2020. Non-core charges totaled $897 thousand and $226 thousand in first quarter of 2021 and 2020, respectively.
Net interest margin (NIM) in the first quarter of 2021 was 2.88% compared to 3.04% in the same period of 2020. The decrease in NIM is due to the Federal Reserve rate cuts in response to the pandemic, which lowered the yields on many classes of earning assets and also lowered the costs of interest-bearing liabilities. The yield on earning assets was 3.46% compared to 4.12% in the first quarter 2020 reflecting loan originations and repricing of variable rate products in a lower interest rate environment. Costs of funds decreased to 0.72% compared to 1.28% in the first quarter 2020 due to lower rates and reductions to wholesale funding afforded by significant growth in core deposits. PPP loans added 10 basis points to NIM during the quarter as the majority of the remaining 2020 originations were forgiven. Accretion on PPP loans originated in the first quarter 2021 are not expected to materially affect NIM until loans are forgiven starting in the third quarter. Excess liquidity in the form of cash balances held mostly at the Federal Reserve Bank in the first quarter 2021 reduced NIM by 15 basis points.
The provision for credit losses for the quarter was a benefit of $489 thousand compared to an expense of $1.1 million in the first quarter of 2020. The provision recapture in the first quarter 2021 is attributable to improving economic forecasts and lower amounts of specific reserves due to credit improvements.
Non-interest income in the first quarter 2021 increased to $10.2 million from $8.4 million in the same quarter in 2020 due to higher wealth management and mortgage banking income. While customer service fees were slightly down compared to the first quarter 2020, the income has been building up on a sequential quarter basis and is approaching pre-pandemic levels. Wealth management is up 9% as AUM expanded 23% over the first quarter of 2020 due to improved market conditions. Mortgage banking activities continue to contribute a significant amount of fee income due to the favorability of sales given the current interest rate environment. Secondary market sales of residential mortgage loans totaled $69.2 million compared to $14.8 million in the same quarter of 2020.
Non-interest expense was $22.5 million in the first quarter 2021 compared to $22.4 million in the same quarter of 2020. The increase includes $800 thousand of higher non-core expenses offset by $700 thousand in operational expense improvements. Non-core expenses in the first quarter 2021were primarily charges from early retirement and reductions in workforce programs while the same quarter of 2020 included costs to consolidate our wealth management systems. Reductions to most categories of non-interest expense in the quarter helped drive our efficiency ratio (non-GAAP) to 61.95%, down from 64.82% for the same period of 2020.
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BACKGROUND
Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 130 years. Bar Harbor provides full-service community banking with office locations in all three Northern New England states of Maine, New Hampshire and Vermont. For more information, visit www.barharbor.bank.
FORWARD LOOKING STATEMENTS
Certain statements under the headings "FIRST QUARTER FINANCIAL HIGHLIGHTS", “FINANCIAL CONDITION” and “RESULTS OF OPERATIONS” contained in this document , including regarding the Company’s intention to repurchase shares of its common stock from time to time, that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this earnings release the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions are intended to identify forward-looking statements, but these terms are not the exclusive means of identifying forward-looking statements. These forward-looking statements are subject to significant risks, assumptions and uncertainties, including among other things, changes in general economic and business conditions, increased competitive pressures, changes in the interest rate environment, legislative and regulatory change, changes in the financial markets, and other risks and uncertainties disclosed from time to time in documents that the Company files with the Securities and Exchange Commission, including but not limited to those discussed in the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and any subsequently filed Quarterly Reports on Form 10-Q. Because of these and other uncertainties, the Company’s actual results, performance or achievements, or industry results, may be materially different from the results indicated by these forward-looking statements. In addition, the Company’s past results of operations do not necessarily indicate future results. You should not place undue reliance on any of the forward-looking statements, which speak only as of the dates on which they were made. The Company is not undertaking an obligation to update forward-looking statements, even though its situation may change in the future, except as required under federal securities law. The Company qualifies all of its forward-looking statements by these cautionary statements.
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NON-GAAP FINANCIAL MEASURES
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP core earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information.
The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.
The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.
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CONTACTS
Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314
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| TABLE | |
| INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
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| A | Selected Financial Highlights |
| B | Footnotes to Selected Financial Highlights |
| C | Balance Sheets |
| D | Loan and Deposit Analysis |
| E | Statements of Income |
| F | Statements of Income (Five Quarter Trend) |
| G | Average Yields and Costs |
| H | Average Balances |
| I | Asset Quality Analysis |
| J | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data |
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BAR HARBOR BANKSHARES
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||
| | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | **** | |||||
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Net earnings, diluted | $ | 0.63 | $ | 0.58 | $ | 0.56 | $ | 0.55 | $ | 0.50 | | |||||
| Core earnings, diluted ^(1) (2)^ | | 0.68 | | 0.62 | | 0.61 | | 0.56 | | 0.50 | | |||||
| Total book value | | 27.13 | | 27.58 | | 27.09 | | 26.56 | | 25.90 | | |||||
| Tangible book value ^(2)^ | | 18.64 | | 19.05 | | 18.56 | | 18.18 | | 17.70 | | |||||
| Market price at period end | | 29.42 | | 22.59 | | 20.55 | | 22.39 | | 17.28 | | |||||
| Dividends | | 0.22 | | 0.22 | | 0.22 | | 0.22 | | 0.22 | | |||||
| | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS ^(3)^ | | | | | | | | | | | | | | | | |
| Return on assets | | 1.03 | % | | 0.92 | % | | 0.88 | % | | 0.90 | % | | 0.85 | % | |
| Core return on assets ^(1) (2)^ | | 1.11 | | 0.98 | | 0.96 | | 0.91 | | 0.86 | | |||||
| Return on equity | | 9.45 | | 8.39 | | 8.22 | | 8.40 | | 7.64 | | |||||
| Core return on equity ^(1) (2)^ | | 10.13 | | 8.95 | | 8.98 | | 8.52 | | 7.71 | | |||||
| Core return on tangible equity ^(1) (2)^ | | 15.00 | | 13.27 | | 13.36 | | 12.72 | | 11.54 | | |||||
| Net interest margin, fully taxable equivalent (FTE) ^(2) (4)^ | | 2.88 | | 3.02 | | 2.90 | | 2.93 | | 3.04 | | |||||
| Core net interest margin^(1) (2)^ ^(5)^ | | | 2.78 | | | 2.79 | | | 2.89 | | | 2.92 | | | 3.04 | |
| Efficiency ratio ^(2)^ | | 61.95 | | 61.98 | | 59.47 | | 60.67 | | 64.82 | | |||||
| | | | | | | | | | | | | | | | | |
| ORGANIC GROWTH (Year-to-date, annualized) ^(2)^ | | | | | | | | | | | | | | | | |
| Total commercial loans | | 14 | % | | 17 | % | | 27 | % | | 33 | % | | 6 | % | |
| Total loans | | (2) | | (3) | | 3 | | 5 | | (2) | | |||||
| Total deposits | | 1 | | 8 | | 12 | | (0) | | (7) | | |||||
| | | | | | | | | | | | | | | | | |
| FINANCIAL DATA (In millions) | | | | | | | | | | | | | | | | |
| Total assets | $ | 3,730 | $ | 3,726 | $ | 3,860 | $ | 3,780 | $ | 3,677 | | |||||
| Total earning assets ^(6)^ | | 3,371 | | 3,360 | | 3,496 | | 3,414 | | 3,313 | | |||||
| Total investments | | 641 | | 599 | | 619 | | 662 | | 646 | | |||||
| Total loans | | 2,551 | | 2,563 | | 2,685 | | 2,706 | | 2,623 | | |||||
| Allowance for credit losses | | 24 | | 19 | | 18 | | 17 | | 15 | | |||||
| Total goodwill and intangible assets | | 127 | | 127 | | 127 | | 128 | | 128 | | |||||
| Total deposits | | 2,912 | | 2,906 | | 2,935 | | 2,695 | | 2,651 | | |||||
| Total shareholders' equity | | 406 | | 411 | | 404 | | 404 | | 404 | | |||||
| Net income | | 9 | | 9 | | 8 | | 8 | | 8 | | |||||
| Core earnings^(1) (2)^ | | 10 | | 9 | | 9 | | 9 | | 8 | | |||||
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY AND CONDITION RATIOS | | | | | | | | | | | | | | | | |
| Net charge-offs (current quarter annualized)/average loans | | 0.03 | % | | 0.03 | % | | 0.06 | % | | 0.02 | % | | 0.18 | % | |
| Allowance for credit losses/total loans | | 0.93 | | 0.74 | | 0.67 | | 0.61 | | 0.58 | | |||||
| Loans/deposits | | 88 | | 88 | | 91 | | 100 | | 99 | | |||||
| Shareholders' equity to total assets | | 10.87 | | 11.04 | | 10.48 | | 10.69 | | 10.98 | | |||||
| Tangible shareholders' equity to tangible assets | | 7.73 | | 7.90 | | 7.42 | | 7.57 | | 7.77 | |
A
| (1) | Core measurements are non-GAAP financial measures adjusted to exclude net non-operating charges primarily related to acquisitions, restructurings, system conversions, loss on debt extinguishment and gain or loss on sale of securities, other real estate owned and premises and equipment. Refer to the Reconciliation of Non-GAAP Financial Measures in table J for additional information. |
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| (2) | Non-GAAP financial measure. |
| --- | --- |
| (3) | All performance ratios are based on average balance sheet amounts, where applicable. |
| --- | --- |
| (4) | Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans. |
| --- | --- |
| (5) | Core net interest margin excludes Paycheck Protection Program loans. |
| --- | --- |
| (6) | Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost. |
| --- | --- |
B
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| (in thousands) | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | |||||
| Assets | | | | | | ||||||||||
| Cash and due from banks | | $ | 39,039 | | $ | 27,566 | | $ | 22,722 | | $ | 24,430 | | $ | 42,282 |
| Interest-bearing deposits with other banks | | 184,473 | | 198,441 | | 192,935 | | 46,243 | | 43,373 | |||||
| Total cash and cash equivalents | | 223,512 | | 226,007 | | 215,657 | | 70,673 | | 85,655 | |||||
| | | | | | | | | | | | | | | | |
| Securities available for sale | | 626,403 | | 585,046 | | 604,529 | | 641,574 | | 626,341 | |||||
| Federal Home Loan Bank stock | | 14,826 | | 14,036 | | 13,975 | | 20,265 | | 19,897 | |||||
| Total securities | | 641,229 | | 599,082 | | 618,504 | | 661,839 | | 646,238 | |||||
| | | | | | | | | | | | | | | | |
| Loans held for sale | | | 10,148 | | | 23,988 | | | 23,721 | | | 22,979 | | | 11,701 |
| | | | | | | | | | | | | | | | |
| Total loans | | 2,551,064 | | 2,562,885 | | 2,684,970 | | 2,706,438 | | 2,623,282 | |||||
| Less: Allowance for credit losses | | (23,653) | | (19,082) | | (17,907) | | (16,509) | | (15,297) | |||||
| Net loans | | 2,527,411 | | 2,543,803 | | 2,667,063 | | 2,689,929 | | 2,607,985 | |||||
| | | | | | | | | | | | | | | | |
| Premises and equipment, net | | 52,253 | | 52,458 | | 51,424 | | 50,464 | | 49,978 | |||||
| Other real estate owned | | — | | — | | 1,983 | | 2,318 | | 2,205 | |||||
| Goodwill | | 119,477 | | 119,477 | | 119,477 | | 119,477 | | 119,477 | |||||
| Other intangible assets | | 7,431 | | 7,670 | | 7,913 | | 8,155 | | 8,398 | |||||
| Cash surrender value of bank-owned life insurance | | 78,388 | | 77,870 | | 77,388 | | 76,896 | | 76,400 | |||||
| Deferred tax asset, net | | 5,639 | | 1,745 | | 2,180 | | 2,451 | | 3,166 | |||||
| Other assets | | 64,742 | | 73,662 | | 74,400 | | 75,084 | | 66,139 | |||||
| Total assets | | $ | 3,730,230 | | $ | 3,725,762 | | $ | 3,859,710 | | $ | 3,780,265 | | $ | 3,677,342 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Demand and other non-interest bearing deposits | | $ | 586,487 | | $ | 544,636 | | $ | 515,064 | | $ | 504,325 | | $ | 400,410 |
| NOW deposits | | 761,817 | | 738,849 | | 706,048 | | 642,908 | | 578,320 | |||||
| Savings deposits | | 560,095 | | 521,638 | | 511,938 | | 466,668 | | 423,345 | |||||
| Money market deposits | | 365,507 | | 402,731 | | 388,356 | | 402,835 | | 404,385 | |||||
| Time deposits | | 638,436 | | 698,361 | | 813,509 | | 678,126 | | 844,097 | |||||
| Total deposits | | 2,912,342 | | 2,906,215 | | 2,934,915 | | 2,694,862 | | 2,650,557 | |||||
| | | | | | | | | | | | | | | | |
| Senior borrowings | | 292,210 | | 276,062 | | 385,472 | | 546,863 | | 497,580 | |||||
| Subordinated borrowings | | 60,003 | | 59,961 | | 59,920 | | 59,879 | | 59,849 | |||||
| Total borrowings | | 352,213 | | 336,023 | | 445,392 | | 606,742 | | 557,429 | |||||
| | | | | | | | | | | | | | | | |
| Other liabilities | | 60,094 | | 72,183 | | 74,958 | | 74,487 | | 65,601 | |||||
| Total liabilities | | 3,324,649 | | 3,314,421 | | 3,455,265 | | 3,376,091 | | 3,273,587 | |||||
| | | | | | | | | | | | | | | | |
| Total common shareholders' equity | | 405,581 | | 411,341 | | 404,445 | | 404,174 | | 403,755 | |||||
| Total liabilities and shareholders' equity | | $ | 3,730,230 | | $ | 3,725,762 | | $ | 3,859,710 | | $ | 3,780,265 | | $ | 3,677,342 |
| | | | | | | | | | | | | | | | |
| Net shares outstanding | | 14,950 | | 14,916 | | 14,929 | | 15,214 | | 15,587 |
C
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | |
| | | | | | | | | | | | | | | | | | Growth % | |
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Quarter | ||||||
| (in thousands) | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | | End | ||||||
| Commercial real estate | | $ | 1,118,669 | | $ | 1,084,381 | | $ | 1,045,635 | | $ | 982,070 | | $ | 948,178 | 13 | % | |
| Commercial and industrial | | 317,500 | | 323,864 | | 324,647 | | 340,898 | | 321,605 | (8) | |||||||
| Paycheck Protection Program (PPP) | | | 77,878 | | | 53,774 | | | 131,537 | | | 131,626 | | | — | | 179 | |
| Total commercial loans | | 1,514,047 | | 1,462,019 | | 1,501,819 | | 1,454,594 | | 1,269,783 | 14 | |||||||
| Total commercial loans, excluding PPP | | 1,436,169 | | 1,408,245 | | 1,370,282 | | 1,322,968 | | 1,269,783 | 8 | |||||||
| | | | | | | | | | | | | | | | | | | |
| Residential real estate | | 868,084 | | 923,891 | | 997,485 | | 1,060,729 | | 1,120,627 | (24) | |||||||
| Consumer | | 106,835 | | 113,544 | | 119,340 | | 124,197 | | 128,120 | (24) | |||||||
| Tax exempt and other | | 62,098 | | 63,431 | | 66,326 | | 66,918 | | 104,752 | (8) | |||||||
| Total loans | | $ | 2,551,064 | | $ | 2,562,885 | | $ | 2,684,970 | | $ | 2,706,438 | | $ | 2,623,282 | (2) | % |
DEPOSIT ANALYSIS
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | | | | | | | | | Annualized | |
| | | | | | | | | | | | | | | | | | Growth % | |
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Quarter | ||||||
| (in thousands) | | 2021 | | 2021 | | 2020 | | 2020 | | 2020 | | End | ||||||
| Demand | | $ | 586,487 | | $ | 544,636 | | $ | 515,064 | | $ | 504,325 | | $ | 400,410 | 31 | % | |
| NOW | | 761,817 | | 738,849 | | 706,048 | | 642,908 | | 578,320 | 12 | |||||||
| Savings | | 560,095 | | 521,638 | | 511,938 | | 466,668 | | 423,345 | 29 | |||||||
| Money market | | 365,507 | | 402,731 | | 388,356 | | 402,835 | | 404,385 | (37) | |||||||
| Total non-maturity deposits | | 2,273,906 | | 2,207,854 | | 2,121,406 | | 2,016,736 | | 1,806,460 | 12 | |||||||
| Total time deposits | | 638,436 | | 698,361 | | 813,509 | | 678,126 | | 844,097 | (34) | |||||||
| Total deposits | | $ | 2,912,342 | | $ | 2,906,215 | | $ | 2,934,915 | | $ | 2,694,862 | | $ | 2,650,557 | 1 | % |
D
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Three Months Ended | ||||
| | | March 31, | ||||
| (in thousands, except per share data) | **** | 2021 | **** | 2020 | ||
| Interest and dividend income | | | ||||
| Loans | | $ | 24,205 | | $ | 27,987 |
| Securities and other | | 3,979 | | 5,507 | ||
| Total interest and dividend income | | 28,184 | | 33,494 | ||
| Interest expense | | | | |||
| Deposits | | 2,951 | | 6,020 | ||
| Borrowings | | 1,811 | | 2,911 | ||
| Total interest expense | | 4,762 | | 8,931 | ||
| Net interest income | | 23,422 | | 24,563 | ||
| Provision for credit losses | | (489) | | 1,111 | ||
| Net interest income after provision for loan losses | | 23,911 | | 23,452 | ||
| Non-interest income | | | ||||
| Trust and investment management fee income | | 3,666 | | 3,369 | ||
| Customer service fees | | 2,970 | | 3,112 | ||
| Gain on sales of securities, net | | — | | 135 | ||
| Mortgage banking income | | | 2,570 | | | 457 |
| Bank-owned life insurance income | | 518 | | 537 | ||
| Customer derivative income | | 410 | | 588 | ||
| Other income | | 114 | | 223 | ||
| Total non-interest income | | 10,248 | | 8,421 | ||
| Non-interest expense | | | ||||
| Salaries and employee benefits | | 12,176 | | 11,884 | ||
| Occupancy and equipment | | 4,328 | | 4,420 | ||
| Loss on sales of premises and equipment, net | | 8 | | 92 | ||
| Outside services | | 432 | | 534 | ||
| Professional services | | 558 | | 672 | ||
| Communication | | 321 | | 289 | ||
| Marketing | | 290 | | 388 | ||
| Amortization of intangible assets | | 241 | | 256 | ||
| Loss on debt extinguishment | | — | | — | ||
| Acquisition, conversion and other expenses | | 889 | | 103 | ||
| Other expenses | | 3,248 | | 3,721 | ||
| Total non-interest expense | | 22,491 | | 22,359 | ||
| Income before income taxes | | 11,668 | | 9,514 | ||
| Income tax expense | | 2,188 | | 1,793 | ||
| Net income | | $ | 9,480 | | $ | 7,721 |
| | | | | | | |
| Earnings per share: | | | ||||
| Basic | | $ | 0.63 | | $ | 0.50 |
| Diluted | | 0.63 | | 0.50 | ||
| | | | | | | |
| Weighted average shares outstanding: | | | ||||
| Basic | | 14,934 | | 15,558 | ||
| Diluted | | 15,007 | | 15,593 |
E
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| (in thousands, except per share data) | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | |||||
| Interest and dividend income | | | | | | ||||||||||
| Loans | | $ | 24,205 | | $ | 26,687 | | $ | 25,918 | | $ | 26,493 | | $ | 27,987 |
| Securities and other | | 3,979 | | 4,013 | | 4,557 | | 4,942 | | 5,507 | |||||
| Total interest and dividend income | | 28,184 | | 30,700 | | 30,475 | | 31,435 | | 33,494 | |||||
| Interest expense | | | | | | ||||||||||
| Deposits | | 2,951 | | 3,606 | | 3,869 | | 4,548 | | 6,020 | |||||
| Borrowings | | 1,811 | | 1,732 | | 1,941 | | 2,297 | | 2,911 | |||||
| Total interest expense | | 4,762 | | 5,338 | | 5,810 | | 6,845 | | 8,931 | |||||
| Net interest income | | 23,422 | | 25,362 | | 24,665 | | 24,590 | | 24,563 | |||||
| Provision for credit losses | | (489) | | 1,360 | | 1,800 | | 1,354 | | 1,111 | |||||
| Net interest income after provision for credit losses | | 23,911 | | | 24,002 | | 22,865 | | 23,236 | | 23,452 | ||||
| Non-interest income | | | | | | ||||||||||
| Trust and investment management fee income | | 3,666 | | 3,318 | | 3,532 | | 3,159 | | 3,369 | |||||
| Customer service fees | | 2,970 | | 2,890 | | 2,886 | | 2,439 | | 3,112 | |||||
| Gain on sales of securities, net | | — | | 3,959 | | — | | 1,351 | | 135 | |||||
| Mortgage banking income | | | 2,570 | | | 2,654 | | | 2,649 | | | 1,124 | | | 457 |
| Bank-owned life insurance income | | 518 | | 482 | | 492 | | 496 | | 537 | |||||
| Customer derivative income | | 410 | | 1,086 | | 316 | | 513 | | 588 | |||||
| Other income | | 114 | | 334 | | 227 | | 628 | | 223 | |||||
| Total non-interest income | | 10,248 | | 14,723 | | 10,102 | | 9,710 | | 8,421 | |||||
| Non-interest expense | | | | | | ||||||||||
| Salaries and employee benefits | | 12,176 | | 13,318 | | 11,809 | | 11,909 | | 11,884 | |||||
| Occupancy and equipment | | 4,328 | | 4,192 | | 4,279 | | 3,860 | | 4,420 | |||||
| Loss (gain) on sales of premises and equipment, net | | 8 | | (122) | | — | | (2) | | 92 | |||||
| Outside services | | 432 | | 571 | | 438 | | 442 | | 534 | |||||
| Professional services | | 558 | | 572 | | 479 | | 337 | | 672 | |||||
| Communication | | 321 | | 194 | | 215 | | 194 | | 289 | |||||
| Marketing | | 290 | | 415 | | 300 | | 282 | | 388 | |||||
| Amortization of intangible assets | | 241 | | 256 | | 256 | | 256 | | 256 | |||||
| Loss on debt extinguishment | | — | | — | | — | | 1,351 | | — | |||||
| Acquisition, conversion and other expenses | | 889 | | 4,849 | | 691 | | 158 | | 103 | |||||
| Other expenses | | 3,248 | | 3,571 | | 3,952 | | 3,479 | | 3,721 | |||||
| Total non-interest expense | | 22,491 | | 27,816 | | 22,419 | | 22,266 | | 22,359 | |||||
| Income before income taxes | | 11,668 | | 10,909 | | 10,548 | | 10,680 | | 9,514 | |||||
| Income tax expense | | 2,188 | | 2,269 | | 2,146 | | 2,199 | | 1,793 | |||||
| Net income | | $ | 9,480 | | $ | 8,640 | | $ | 8,402 | | $ | 8,481 | | $ | 7,721 |
| | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | ||||||||||
| Basic | | $ | 0.63 | | $ | 0.58 | | $ | 0.56 | | $ | 0.55 | | $ | 0.50 |
| Diluted | | 0.63 | | 0.58 | | 0.56 | | 0.55 | | 0.50 | |||||
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | ||||||||||
| Basic | | 14,934 | | 14,909 | | 15,079 | | 15,424 | | 15,558 | |||||
| Diluted | | 15,007 | | 14,952 | | 15,103 | | 15,441 | | 15,593 |
F
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | **** | ||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** |
| | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | **** |
| Earning assets | | | | | | | | | | | |
| Interest-bearing deposits with other banks^(1)^ | | 0.09 | % | 0.11 | % | 0.09 | % | 0.08 | % | 1.16 | % |
| Securities available for sale and FHLB stock | | 2.79 | | 2.97 | | 3.04 | | 3.26 | | 3.50 | |
| Loans: | | | | | | | | | | | |
| Commercial real estate | 3.68 | | 3.74 | | 3.81 | | 4.11 | | 4.46 | | |
| Commercial and industrial | 3.86 | 3.92 | 4.39 | 4.13 | 4.89 | | |||||
| Paycheck protection program | | 8.12 | | 11.56 | | 3.18 | | 3.34 | | — | |
| Residential | 3.76 | 3.74 | 3.71 | 3.81 | 3.84 | | |||||
| Consumer | 3.56 | 3.65 | 3.42 | 3.81 | 5.20 | | |||||
| Total loans | 3.85 | 4.03 | 3.81 | 3.94 | 4.30 | | |||||
| Total earning assets | 3.46 | % | 3.65 | % | 3.57 | % | 3.73 | % | 4.12 | % | |
| | | | | | | | | | | | |
| Funding liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| NOW | 0.14 | % | 0.15 | % | 0.14 | % | 0.14 | % | 0.40 | % | |
| Savings | 0.13 | 0.13 | 0.13 | 0.15 | 0.25 | | |||||
| Money market | 0.14 | 0.14 | 0.16 | 0.40 | 1.01 | | |||||
| Time deposits | 1.44 | 1.64 | 1.69 | 1.94 | 1.92 | | |||||
| Total interest-bearing deposits | 0.51 | 0.61 | 0.66 | 0.81 | 1.08 | | |||||
| Borrowings | 2.16 | 1.83 | 1.60 | 1.51 | 2.10 | | |||||
| Total interest-bearing liabilities | 0.72 | % | 0.77 | % | 0.82 | % | 0.96 | % | 1.28 | % | |
| | | | | | | | | | | | |
| Net interest spread | 2.74 | 2.88 | 2.75 | 2.77 | 2.84 | | |||||
| Net interest margin^(1)^ | 2.88 | 3.02 | 2.90 | 2.93 | 3.04 | | |||||
| Core net interest margin ^(2)^ | 2.78 | 2.79 | 2.89 | 2.92 | 3.04 | |
| (1) | Income from interest-bearing deposits with other banks has been separated from securities and restated for prior periods to conform to the current period presentation. |
|---|---|
| (2) | Core net interest margin excludes Paycheck Protection Program loans. |
| --- | --- |
G
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | |||||||||||||
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, | |||||
| (in thousands) | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | |||||
| Assets | | | | | | ||||||||||
| Interest-bearing deposits with other banks^(1)^ | | $ | 176,728 | | $ | 176,747 | | $ | 92,066 | | $ | 71,067 | | $ | 16,933 |
| Securities available for sale and FHLB stock ^(2)^ | | | 613,459 | | | 563,118 | | | 627,162 | | | 648,185 | | | 661,848 |
| Loans: | | | | | | | | | | | | | | | |
| Commercial real estate | | | 1,099,937 | | | 1,059,574 | | | 1,012,194 | | | 952,264 | | | 945,851 |
| Commercial and industrial | | 377,176 | | 386,201 | | 399,734 | | 417,620 | | 423,393 | |||||
| Paycheck protection program | | | 65,149 | | | 91,109 | | | 131,605 | | | 104,740 | | | — |
| Residential real estate | | 916,633 | | 995,173 | | 1,060,084 | | 1,117,608 | | 1,141,908 | |||||
| Consumer | | 109,802 | | 115,876 | | 121,248 | | 126,413 | | 130,471 | |||||
| Total loans ^(3)^ | | 2,568,697 | | 2,647,933 | | 2,724,865 | | 2,718,645 | | 2,641,623 | |||||
| Total earning assets | | 3,358,884 | | 3,387,798 | | 3,444,093 | | 3,437,897 | | 3,320,404 | |||||
| Cash and due from banks | | 23,221 | | 22,473 | | 36,521 | | 43,165 | | 40,818 | |||||
| Allowance for credit losses | | (24,822) | | (18,690) | | (17,028) | | (15,678) | | (15,242) | |||||
| Goodwill and other intangible assets | | 127,024 | | 127,264 | | 127,508 | | 127,751 | | 128,014 | |||||
| Other assets | | 232,477 | | 237,424 | | 223,316 | | 213,986 | | 187,765 | |||||
| Total assets | | $ | 3,716,784 | | $ | 3,756,269 | | $ | 3,814,410 | | $ | 3,807,121 | | $ | 3,661,759 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Deposits: | | | | | | | | | | | | | | | |
| NOW | | $ | 749,100 | | $ | 713,464 | | $ | 677,706 | | $ | 611,860 | | $ | 570,127 |
| Savings | | 541,203 | | 516,266 | | 488,508 | | 450,621 | | 410,931 | |||||
| Money market | | 378,743 | | 399,543 | | 396,351 | | 411,232 | | 373,650 | |||||
| Time deposits | | 675,422 | | 734,523 | | 777,424 | | 776,042 | | 892,654 | |||||
| Total interest-bearing deposits | | 2,344,468 | | 2,363,796 | | 2,339,989 | | 2,249,755 | | 2,247,362 | |||||
| Borrowings | | 340,209 | | 376,437 | | 481,687 | | 612,538 | | 556,824 | |||||
| Total interest-bearing liabilities | | 2,684,677 | | 2,740,233 | | 2,821,676 | | 2,862,293 | | 2,804,186 | |||||
| Non-interest-bearing demand deposits | | 550,657 | | 535,402 | | 507,844 | | 472,688 | | 406,951 | |||||
| Other liabilities | | 74,646 | | 71,119 | | 78,072 | | 66,302 | | 44,343 | |||||
| Total liabilities | | 3,309,980 | | 3,346,754 | | 3,407,592 | | 3,401,283 | | 3,255,480 | |||||
| Total shareholders' equity | | 406,804 | | 409,515 | | 406,818 | | 405,838 | | 406,279 | |||||
| Total liabilities and shareholders' equity | | $ | 3,716,784 | | $ | 3,756,269 | | $ | 3,814,410 | | $ | 3,807,121 | | $ | 3,661,759 |
| (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. |
| --- | --- |
H
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||
| (in thousands) | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | **** | |||||
| NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Non-accruing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 4,664 | $ | 4,251 | $ | 4,714 | $ | 3,981 | $ | 2,227 | | |||||
| Commercial installment | | 1,534 | | 1,466 | | 1,820 | | 1,790 | | 1,996 | | |||||
| Residential real estate | | 6,753 | | 5,729 | | 7,154 | | 7,194 | | 5,089 | | |||||
| Consumer installment | | 1,118 | | 742 | | 720 | | 1,023 | | 744 | | |||||
| Total non-accruing loans | | 14,069 | | 12,188 | | 14,408 | | 13,988 | | 10,056 | | |||||
| Other real estate owned | | — | | — | | 1,983 | | 2,318 | | 2,205 | | |||||
| Total non-performing assets | $ | 14,069 | $ | 12,188 | $ | 16,391 | $ | 16,306 | $ | 12,261 | | |||||
| | | | | | | | | | | | | | | | | |
| Total non-accruing loans/total loans | | 0.55 | % | | 0.48 | % | | 0.54 | % | | 0.52 | % | | 0.38 | % | |
| Total non-performing assets/total assets | | 0.38 | | 0.33 | | 0.42 | | 0.43 | | 0.33 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 19,082 | $ | 17,907 | $ | 16,509 | $ | 15,297 | $ | 15,353 | | |||||
| Charged-off loans | | (216) | | (297) | | (439) | | (220) | | (1,211) | | |||||
| Recoveries on charged-off loans | | 48 | | 112 | | 37 | | 78 | | 44 | | |||||
| Net loans charged-off | | (168) | | (185) | | (402) | | (142) | | (1,167) | | |||||
| Impact of CECL adoption | | | 5,228 | | | — | | | — | | | — | | | — | |
| Provision for credit losses | | (489) | | 1,360 | | 1,800 | | 1,354 | | 1,111 | | |||||
| Balance at end of period | $ | 23,653 | $ | 19,082 | $ | 17,907 | $ | 16,509 | $ | 15,297 | | |||||
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses/total loans | | 0.93 | % | | 0.74 | % | | 0.66 | % | | 0.60 | % | | 0.58 | % | |
| Allowance for credit losses/non-accruing loans | | 168 | | 157 | | 124 | | 118 | | 152 | | |||||
| | | | | | | | | | | | | | | | | |
| NET LOAN CHARGE-OFFS | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | (131) | $ | 63 | $ | (252) | $ | 71 | $ | (846) | | |||||
| Commercial installment | | 1 | | (228) | | (10) | | (155) | | (170) | | |||||
| Residential real estate | | (28) | | (21) | | 1 | | (20) | | (1) | | |||||
| Consumer installment | | (10) | | 1 | | (141) | | (38) | | (150) | | |||||
| Total, net | $ | (168) | $ | (185) | $ | (402) | $ | (142) | $ | (1,167) | | |||||
| | | | | | | | | | | | | | | | | |
| Net charge-offs (QTD annualized)/average loans | | 0.03 | % | | 0.03 | % | | 0.06 | % | | 0.02 | % | | 0.18 | % | |
| Net charge-offs (YTD annualized)/average loans | | 0.03 | | 0.07 | | 0.08 | | 0.10 | | 0.18 | | |||||
| | | | | | | | | | | | | | | | | |
| DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | | | | | | | | | | | | | | | | |
| 30-89 Days delinquent | | 0.43 | % | | 0.58 | % | | 0.16 | % | | 0.28 | % | | 0.84 | % | |
| 90+ Days delinquent and still accruing | | 0.01 | | — | | 0.08 | | 0.04 | | 0.08 | | |||||
| Total accruing delinquent loans | | 0.44 | | 0.58 | | 0.24 | | 0.32 | | 0.92 | | |||||
| Non-accruing loans | | 0.55 | | 0.48 | | 0.54 | | 0.52 | | 0.38 | | |||||
| Total delinquent and non-accruing loans | | 0.99 | % | | 1.06 | % | | 0.78 | % | | 0.84 | % | | 1.30 | % |
I
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | |||||||||||||
| | | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | ||||||
| (in thousands) | | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | ||||||
| Net income | | | | $ | 9,480 | | $ | 8,640 | | $ | 8,402 | | $ | 8,481 | | $ | 7,721 |
| (Gain) on sale of securities, net | | | | — | | (3,959) | | — | | (1,351) | | (135) | |||||
| Loss (gain) on sale of premises and equipment, net | | | | 8 | | (122) | | — | | (2) | | 92 | |||||
| (Gain) loss on other real estate owned | | | | — | | (11) | | 335 | | — | | 31 | |||||
| Loss on debt extinguishment | | | | — | | — | | — | | 1,351 | | — | |||||
| Acquisition, conversion and other expenses | | | | 889 | | 4,849 | | 691 | | 158 | | 103 | |||||
| Income tax expense ^(1)^ | | | | (213) | | (179) | | (245) | | (37) | | (22) | |||||
| Core earnings ^(2)^ | (A) | | $ | 10,164 | | $ | 9,218 | | $ | 9,183 | | $ | 8,600 | | $ | 7,790 | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | (B) | | $ | 23,422 | | $ | 25,362 | | $ | 24,665 | | $ | 24,590 | | $ | 24,563 | |
| Non-interest income | | | | 10,248 | | 14,723 | | 10,102 | | 9,710 | | 8,421 | |||||
| Total Revenue | | | | 33,670 | | 40,085 | | 34,767 | | 34,300 | | 32,984 | |||||
| (Gain) on sale of securities, net | | | | — | | (3,959) | | — | | (1,351) | | (135) | |||||
| Total core revenue ^(2)^ | (C) | | $ | 33,670 | | $ | 36,126 | | $ | 34,767 | | $ | 32,949 | | $ | 32,849 | |
| | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | 22,491 | | 27,816 | | 22,419 | | 22,266 | | 22,359 | |||||
| (Loss) gain on sale of premises and equipment, net | | | | (8) | | 122 | | — | | 2 | | (92) | |||||
| Gain (loss) on other real estate owned | | | | — | | 11 | | (335) | | — | | (31) | |||||
| Loss on debt extinguishment | | | | — | | — | | — | | (1,351) | | — | |||||
| Acquisition, conversion and other expenses | | | | (889) | | (4,849) | | (691) | | (158) | | (103) | |||||
| Core non-interest expense ^(2)^ | (D) | | $ | 21,594 | | $ | 23,100 | | $ | 21,393 | | $ | 20,759 | | $ | 22,133 | |
| | | | | | | | | | | | | | | | | | |
| Total revenue | | | | | 33,670 | | | 40,085 | | | 34,767 | | | 34,300 | | | 32,984 |
| Total non-interest expense | | | | | 22,491 | | | 27,816 | | | 22,419 | | | 22,266 | | | 22,359 |
| Pre-tax, pre-provision net revenue | | | | $ | 11,179 | | $ | 12,269 | | $ | 12,348 | | $ | 12,034 | | $ | 10,625 |
| | | | | | | | | | | | | | | | | | |
| Core revenue | | | | | 33,670 | | | 36,126 | | | 34,767 | | | 32,949 | | | 32,849 |
| Core non-interest expense | | | | | 21,594 | | | 23,100 | | | 21,393 | | | 20,759 | | | 22,133 |
| Core pre-tax, pre-provision net revenue | | | | $ | 12,076 | | $ | 13,026 | | $ | 13,374 | | $ | 12,190 | | $ | 10,716 |
| | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | ||||||||||
| Average earning assets | (E) | | $ | 3,359 | | $ | 3,388 | | $ | 3,444 | | $ | 3,438 | | $ | 3,320 | |
| Average paycheck protection program (PPP) loans | | (R) | | | 65 | | | 91 | | | 132 | | | 105 | | | — |
| Average earning assets, excluding PPP loans | | (S) | | | 3,294 | | | 3,297 | | | 3,312 | | | 3,333 | | | 3,320 |
| Average assets | (F) | | 3,717 | | 3,756 | | 3,814 | | 3,807 | | 3,662 | ||||||
| Average shareholders' equity | (G) | | 407 | | 410 | | 407 | | 406 | | 406 | ||||||
| Average tangible shareholders' equity ^(2) (3)^ | (H) | | 280 | | 282 | | 279 | | 278 | | 278 | ||||||
| Tangible shareholders' equity, period-end ^(2) (3)^ | (I) | | 279 | | 284 | | 277 | | 277 | | 276 | ||||||
| Tangible assets, period-end ^(2) (3)^ | (J) | | 3,603 | | 3,598 | | 3,732 | | 3,653 | | 3,549 | ||||||
| | | | | | | | | | | | | | | | | | |
J
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||||
| (in thousands) | | | | 2021 | | 2020 | | 2020 | | 2020 | | 2020 | **** | |||||
| Common shares outstanding, period-end | (K) | | 14,950 | | 14,916 | | 14,929 | | 15,214 | | 15,587 | | ||||||
| Average diluted shares outstanding | (L) | | 15,007 | | 14,952 | | 15,103 | | 15,441 | | 15,593 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Core earnings per share, diluted ^(2)^ | (A/L) | | $ | 0.68 | | $ | 0.62 | | $ | 0.61 | | $ | 0.56 | | $ | 0.50 | | |
| Tangible book value per share, period-end ^(2)^ | (I/K) | | 18.64 | | 19.05 | | 18.56 | | 18.18 | | 17.70 | | ||||||
| Securities adjustment, net of tax ^(1) (4)^ | (M) | | 4,510 | | 10,023 | | 11,681 | | 11,412 | | 9,560 | | ||||||
| Tangible book value per share, excluding securities adjustment ^(2) (4)^ | (I+M)/K | | 18.34 | | 18.38 | | 17.78 | | 17.43 | | 17.09 | | ||||||
| Tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | | 7.73 | | 7.90 | | 7.42 | | 7.57 | | 7.77 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Performance ratios ^(5)^ | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | 1.03 | % | | 0.92 | % | | 0.88 | % | | 0.90 | % | | 0.85 | % | |
| Core return on assets ^(2)^ | (A/F) | | 1.11 | | 0.98 | | 0.96 | | 0.91 | | 0.86 | | ||||||
| GAAP return on equity | | | | 9.45 | | 8.39 | | 8.22 | | 8.40 | | 7.64 | | |||||
| Core return on equity ^(2)^ | (A/G) | | 10.13 | | 8.95 | | 8.98 | | 8.52 | | 7.71 | | ||||||
| Core return on tangible equity ^(1) (2)^ | (A+Q)/H | | 15.00 | | 13.27 | | 13.36 | | 12.72 | | 11.54 | | ||||||
| Efficiency ratio ^(2) (6)^ | (D-O-Q)/(C+N) | | 61.95 | | 61.98 | | 59.47 | | 60.67 | | 64.82 | | ||||||
| Net interest margin | (B+P)/E | | 2.88 | | 3.02 | | 2.90 | | 3.04 | | 2.94 | | ||||||
| Core net interest margin^(2) (7)^ | | (B+P-T)/S | | | 2.78 | | | 2.79 | | | 2.89 | | | 2.92 | | | 3.04 | |
| | | | | | | | | | | | | | | | | | | |
| Supplementary data (in thousands) | | | | | | | | | | | | | | | | | | |
| Taxable equivalent adjustment for efficiency ratio | (N) | | $ | 595 | | $ | 542 | | $ | 570 | | $ | 646 | $ | 719 | | ||
| Franchise taxes included in non-interest expense | (O) | | 125 | | 117 | | 121 | | 120 | | 119 | | ||||||
| Tax equivalent adjustment for net interest margin | (P) | | 433 | | 396 | | 416 | | 490 | | 551 | | ||||||
| Intangible amortization | (Q) | | 241 | | 256 | | 256 | | 256 | | 256 | | ||||||
| Interest and fees on PPP loans | (T) | | 1,304 | | 2,648 | | 1,052 | | 869 | | — | |
| (1) | Assumes a marginal tax rate of 23.71% in the first quarter of 2021 and fourth quarter of 2020 and 23.87% for the first three quarters of 2020. |
|---|---|
| (2) | Non-GAAP financial measure. |
| --- | --- |
| (3) | Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end. |
| --- | --- |
| (4) | Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity. |
| --- | --- |
| (5) | All performance ratios are based on average balance sheet amounts, where applicable. |
| --- | --- |
| (6) | Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis. |
| --- | --- |
| (7) | Core net interest margin excludes Paycheck Protection Program loans. |
| --- | --- |
K