Bar Harbor Bankshares (NYSE
American: BHB) reported third quarter GAAP earnings of $8.6
million, or 56 cents per share. Core earnings totaled $8.8 million
or 57 cents per share representing a 10% increase over the prior
quarter. This increase reflects the strength of the Company's now
expanded footprint and seasoned team.
THIRD QUARTER FINANCIAL HIGHLIGHTS (comparisons are to
prior quarter unless otherwise stated):
- 1.01% core return on assets (non-GAAP
measure)
- 6% increase in non-interest income
- 22% annualized commercial loan
growth
- 11% annualized total deposit
growth
- 54% efficiency ratio (non-GAAP
measure)
- 9.90% core return on equity (non-GAAP
measure)
President and Chief Executive Officer, Curtis C. Simard stated,
“It was a record quarter for us in both total revenue and earnings.
These are remarkable results and demonstrate the stability in our
business while now having the platform for even stronger organic
growth. We drove core return on assets to 1.01% as we continue to
focus on profitable growth and fee income. Our operational
improvements resulted in a 54% efficiency ratio for the quarter and
significant positive operating leverage. We continue to position
our balance sheet to optimize performance, as is evidenced by our
strong loan growth this quarter while adhering to superior credit
quality. We maintained our loan to deposit ratio flat despite
funding significant production for the quarter. I am proud of the
job our teams are doing and look forward to a strong finish to
2017."
“We are committed to creating shareholder value. The Company’s
core return on equity ratio is the highest it’s been in five
quarters as we approach the 10% threshold. We continue to earn
tangible book value to pre-acquisition levels and believe that can
expand even further by adhering to our disciplined model of
balancing growth and profitability. The recently announced sale of
our insurance business will also be accretive to tangible equity in
the fourth quarter. This allows us to focus on investments in the
core banking areas that represent the most efficient use of
capital, which will ultimately benefit our shareholders and remain
consistent with our brand as a true community bank.”
RESULTS OF OPERATIONSGAAP earnings increased to $8.6
million in the third quarter from $6.6 million in the linked
quarter primarily driven by higher fee income, additional cost
saves and lower system conversion expenses. Core earnings (a
non-GAAP measure) were $8.8 million in the third quarter compared
to $8.1 million in the prior quarter. Yields on loans remained
consistent with prior quarter, and include the benefit of purchased
loan accretion. Third quarter security yields decreased as
prepayment speeds increased, resulting in faster premium
amortization. The cost of interest bearing deposits increased as a
result of both interest rate hikes and an extension in maturities
as we continue to actively manage the balance sheet. The Company’s
overall cost of funds increased similarly as a result of extending
funding maturities, in line with our overall interest rate risk
management strategy.
Total non-interest income increased $7.0 million compared to
$6.6 million in the prior quarter. The increase is primarily due to
an expanded customer base resulting in a higher number of
transactions. Mr. Simard stated, "we continue to focus on
non-interest income as the key to higher profitability and are
currently in the process of expanding treasury management services
for our customers. We anticipate a roll-out of our enhanced product
offerings by the end of this year. As we continue to expand ROA,
investments in fee income businesses such as trust, secondary
marketing mortgage operations, and treasury management services
will be critical."
Non-interest expense decreased $2.5 million in the current
quarter as salary and benefit costs improved by $0.5 million and
acquisition related costs declined by $2.1 million. The efficiency
ratio was 54% compared to 56% in the prior quarter and 63% in the
first quarter of 2017. This positive trend reflects disciplined
cost control and realized cost saves with the acquisition.
The effective tax rate was 29.3% in the third quarter as
compared to 31.6% in the second quarter. The third quarter rate
includes a benefit from certain return to provision adjustments
related to amendments for prior year tax filings.
FINANCIAL CONDITIONTotal assets remained flat at $3.5
billion at the end of the third quarter while total loans grew by
$52 million or 9% on an annualized basis. The majority of the loan
growth was driven by the commercial portfolio, which grew at an
annualized rate of 22%. Investments decreased $7.0 million
primarily due to mandatory redemptions of FHLB stock. The loan
growth was funded by growth in total deposits, which increased
$62.1 million or 11% annualized thereby decreasing our wholesale
reliance during the quarter.
The Company's book value per share increased to $22.90 from
$22.53 in the second quarter while tangible book value (a non-GAAP
measure) increased to $15.84 from $15.44. Asset quality metrics
remained strong during the third quarter with a ratio of
non-accruing loans to total loans of 0.28% and a ratio of net
charge-offs to total loans of 0.01%.
BACKGROUNDBar 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
125 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.bhbt.com.
FORWARD LOOKING STATEMENTSThis document contains
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. There are several factors that could
cause actual results to differ significantly from expectations
described in the forward-looking statements. For a discussion of
such factors, please see the Company’s most recent reports on Forms
10-K and 10-Q filed with the Securities and Exchange Commission and
available on the SEC’s website at www.sec.gov. The Company does not
undertake any obligation to update forward-looking statements.
NON-GAAP FINANCIAL MEASURESThis document contains certain
non-GAAP financial measures in addition to results presented in
accordance with Generally Accepted Accounting Principles (“GAAP”).
These non-GAAP measures provide supplemental perspectives on
operating results, performance trends, and financial condition.
They 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 included beginning on page J in the accompanying
financial tables. In all cases, it should be understood that
non-GAAP per share measures do not depict amounts that accrue
directly to the benefit of shareholders.
The Company utilizes the non-GAAP measure of core earnings in
evaluating operating trends, including components for core revenue
and expense. These measures exclude items which the Company does
not view as related to its normalized operations. These items
include securities gains/losses, acquisition costs, restructuring
costs, and systems conversion costs. Non-core adjustments are
presented net of an adjustment for income tax expense. This
adjustment is determined as the difference between the GAAP tax
rate and the effective tax rate applicable to core income. The
efficiency ratio is adjusted for non-core revenue and expense items
and for tax preference items. The Company also calculates measures
related to tangible equity, which adjust equity (and assets where
applicable) to exclude intangible assets due to the importance of
these measures to the investment community. Charges related to the
acquisition of Lake Sunapee Bank Group consists primarily of
severance and retention cost, systems conversion and integration
costs, and professional fees. The Company’s disclosure of organic
growth of loans in 2017 is also adjusted for the Lake Sunapee Bank
Group acquisition.
TABLE
INDEX
CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED)
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
BAR HARBOR BANKSHARES SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED At or for the Quarters
Ended (1)(3) Sep 30,2017 Jun 30,2017
Mar 31,2017 Dec 31,2016 Sep
30,2016
PER SHARE DATA Net earnings, diluted $ 0.56 $ 0.42 $
0.29 $ 0.28 $ 0.40 Core earnings, diluted (1) (2) 0.57 0.52 0.43
0.41 0.34 Total book value 22.90 22.53 22.17 17.19 18.09 Tangible
book value (2) 15.84 15.44 15.07 16.61 17.51 Market price at period
end 31.36 30.82 33.08 31.55 24.48 Dividends 0.19 0.19 0.19 0.19
0.18
PERFORMANCE RATIOS Return on assets 0.99 % 0.76
% 0.50 % 0.59 % 0.86 % Core return on assets (1) (2) 1.01 0.94 0.74
0.87 0.73 Return on equity 9.67 7.55 5.34 6.36 8.78 Core return on
equity (1) (2) 9.90 9.32 7.88 9.34 7.49 Core return on tangible
equity (1) (2) 14.51 13.78 12.24 9.66 7.75 Net interest margin,
fully taxable equivalent (FTE) (4) 3.06 3.16 3.11 2.89 2.84 Net
interest margin (FTE), excluding purchased loan accretion (4) 2.93
3.02 3.01 2.89 2.84 Efficiency ratio (2) 53.59 54.64 61.62 59.24
61.24
GROWTH (Year-to-date, annualized) Total
commercial loans (2) 20.5 % 7.2 % 20.0 % 14.9 % 3.3 % Total loans
(2) 12.2 7.0 13.3 15.0 15.0 Total deposits (2) 10.6 2.3 (10.2 ) 6.5
17.7
FINANCIAL DATA (In millions) Total assets $
3,476 $ 3,503 $ 3,427 $ 1,755 $ 1,718 Total earning assets 3,184
3,139 3,139 1,683 1,649 Total investments 756 763 767 554 561 Total
loans 2,429 2,377 2,372 1,129 1,088 Allowance for loan losses 12 11
11 10 10 Total goodwill and intangible assets 109 109 109 5 5 Total
deposits 2,275 2,213 2,174 1,050 1,034 Total shareholders' equity
353 347 341 157 164 Net income 9 7 4 3 4 Core income (2) 9 8 6 4 3
ASSET QUALITY AND CONDITION RATIOS Net charge-offs
(current quarter annualized)/average loans (5) 0.01 % 0.03 % 0.06 %
(0.03 )% (0.03 )% Allowance for loan losses/total loans (5) 0.49
0.48 0.46 0.92 0.93 Loans/deposits 107 107 109 108 105
Shareholders' equity to total assets 10.17 9.91 9.95 8.93 9.57
Tangible shareholders' equity to tangible assets (2)
7.26 7.01 6.99
8.65 9.29
(1) Adjusted measurements are non-GAAP financial measures that
are adjusted to exclude net non-operating charges primarily related
to acquisitions, and gain on sale of securities. Refer to the
Reconciliation of Non-GAAP Financial Measures in table J for
additional information.(2) Non-GAAP financial measure.(3) All
performance ratios are annualized and are based on average balance
sheet amounts, where applicable.(4) Fully taxable equivalent
considers the impact of tax advantaged investment securities and
loans.(5) Generally accepted accounting principles require that
loans acquired in a business combination be recorded at fair value,
whereas loans from business activities are recorded at cost. The
fair value of loans acquired in a business combination includes
expected loan losses, and there is no loan loss allowance recorded
for these loans at the time of acquisition. Accordingly, the ratio
of the loan loss allowance to total loans is reduced as a result of
the existence of such loans, and this measure is not directly
comparable to prior periods. Similarly, net loan charge-offs are
normally reduced for loans acquired in a business combination since
these loans are recorded net of expected loan losses. Therefore,
the ratio of net loan charge-offs to average loans is reduced as a
result of the existence of such loans, and this measure is not
directly comparable to prior periods. Other institutions may have
loans acquired in a business combination, and therefore there may
be no direct comparability of these ratios between and among other
institutions.
BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In
thousands) September 30, 2017 June 30, 2017 March 31, 2017 (1)
December 31, 2016
Assets Cash and due from banks $ 31,223 $
28,112 $ 29,245 $ 8,219 Interest-bearing deposit with the Federal
Reserve Bank 17,501 90,881 12,781 220
Total cash and cash equivalents 48,724 118,993 42,026 8,439
Securities available for sale, at fair value 718,459 718,364
724,224 528,856 Federal Home Loan Bank stock 37,107 44,168
42,404 25,331 Total securities 755,566 762,532
766,628 554,187 Commercial real estate 793,572 738,584 779,635
418,119 Commercial and industrial 357,072 350,002 309,995 151,240
Residential real estate 1,152,628 1,160,832 1,155,436 506,612
Consumer 125,590 127,229 127,370 53,093
Total loans 2,428,862 2,376,647 2,372,436 1,129,064 Less: Allowance
for loan losses (11,950 ) (11,442 ) (10,884 ) (10,419 ) Net loans
2,416,912 2,365,205 2,361,552 1,118,645 Premises and
equipment, net 48,309 48,590 45,581 23,419 Other real estate owned
122 122 363 90 Goodwill 100,255 100,255 99,901 4,935 Other
intangible assets 8,811 9,047 9,282 377 Cash surrender value of
bank-owned life insurance 57,613 57,233 56,627 24,450 Deferred tax
asset, net 13,052 13,211 14,158 5,990 Other assets 26,368
28,223 31,365 14,817 Total assets $ 3,475,732
$ 3,503,411 $ 3,427,483 $ 1,755,349
Liabilities and shareholders' equity Demand and other
non-interest bearing deposits $ 357,398 $ 332,339 $ 349,896 $
98,856 NOW deposits 442,085 451,171 242,876 175,150 Savings
deposits 373,118 360,306 511,091 77,623 Money market deposits
300,398 285,312 349,491 282,234 Time deposits 802,110
783,876 720,899 416,437 Total deposits
2,275,109 2,213,004 2,174,253 1,050,300 Senior borrowings
775,582 872,021 842,150 531,596 Subordinated borrowings 43,048
43,063 43,078 5,000 Total borrowings
818,630 915,084 885,228 536,596 Other liabilities 28,534
28,201 26,954 11,713 Total liabilities
3,122,273 3,156,289 3,086,435 1,598,609 Total common
shareholders' equity 353,459 347,122 341,048
156,740 Total liabilities and shareholders' equity $
3,475,732 $ 3,503,411 $ 3,427,483 $ 1,755,349
Net shares outstanding (2) 15,432
15,407 15,385 9,116
(1) The Company completed the acquisition of Lake Sunapee Bank
Group on January 13, 2017.(2) Adjusted for 3-for-2 stock-split
completed in March 2017.
BAR HARBOR BANKSHARES CONSOLIDATED LOAN & DEPOSIT
ANALYSIS - UNAUDITED
LOAN
ANALYSIS
Organic Annualized Growth % (1) September 30,
2017 (in thousands) Sep 30, 2017 Balance Jun 30, 2017 Balance Mar
31, 2017 Balance Acquired Lake Sunapee Bank Balance (2) Dec 31,
2016 Balance Quarter End Year to Date Commercial real
estate $ 793,572 $ 738,584 $ 779,635 $ 345,586 $ 418,119 29.8 %
10.7 % Commercial and industrial 270,759 269,960
236,526 89,259 135,564 1.2 50.8
Total commercial loans 1,064,331 1,008,544 1,016,161 434,845
553,683 22.1 20.5 Residential real estate 1,152,628 1,160,832
1,155,436 652,255 506,612 (2.8 ) (1.8 ) Consumer 125,590 127,229
127,370 76,489 53,093 (5.2 ) (11.3 ) Tax exempt and other 86,313
80,042 73,469 44,611 15,676 31.3
249.0 Total loans $ 2,428,862
$ 2,376,647 $ 2,372,436
$ 1,208,200 $ 1,129,064
8.8 % 12.2 %
(1) Non-GAAP financial measure.(2) Acquired Lake Sunapee Bank
loans are as of January 13, 2017.
DEPOSIT
ANALYSIS
Organic Annualized Growth % (1) September 30,
2017 (in thousands) Sep 30, 2017 Balance Jun 30, 2017 Balance Mar
31, 2017 Balance Acquired Lake Sunapee Bank Balance (2) Dec 31,
2016 Balance Quarter End Year to Date Demand $ 357,398 $
332,339 $ 349,896 $ 248,051 $ 98,856 30.2 % 15.9 % NOW 442,085
451,171 242,876 39,999 175,150 (8.1 ) 194.4 Money market 300,398
285,312 349,491 103,142 282,234 21.2 (45.2 ) Savings 373,118
360,306 511,091 467,735 77,623 14.2
(332.8 ) Total non-maturity deposits 1,472,999 1,429,128
1,453,354 858,927 633,863 12.3 (4.7 ) Total time deposits 802,110
783,876 720,899 291,684 416,437
9.3 33.9 Total deposits $ 2,275,109
$ 2,213,004 $ 2,174,253
$ 1,150,611 $ 1,050,300
11.2 % 10.6 %
(1) Non-GAAP financial measure.(2) Acquired Lake Sunapee Bank
deposits are as of January 13, 2017.
BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME -
UNAUDITED
Three Months Ended September 30, Nine Months Ended September
30, (In thousands, except per share data) 2017 2016 2017 2016
Interest and dividend income Loans $ 24,661 $ 10,295 $
70,081 $ 30,627 Securities and other 5,402 3,828
15,832 12,014 Total interest and dividend income 30,063
14,123 85,913 42,641
Interest expense Deposits 3,177 1,755
7,926 4,931 Borrowings 3,408 1,369 9,327 3,993
Total interest expense 6,585 3,124 17,253
8,924
Net interest income 23,478 10,999 68,660
33,717 Provision for loan losses 660 139 2,191 754 Net
interest income after provision for loan losses 22,818
10,860 66,469 32,963
Non-interest income Trust
and investment management fee income 3,040 975 9,228 2,878
Insurance and brokerage service income 329 — 1,020 — Customer
service fees 2,638 706 5,990 1,999 Gain on sales of securities, net
19 1,354 19 4,489 Bank-owned life insurance income 380 197 1,165
540 Other income 554 140 2,043 408 Total
non-interest income 6,960 3,372 19,465 10,314
Non-interest expense Salaries and employee benefits 9,617
4,832 30,065 14,648 Occupancy and equipment 2,894 1,156 8,573 3,466
Loss on sales of premises and equipment, net (1 ) 216 94 216
Outside services 907 181 2,220 430 Professional services 428 250
1,357 1,084 Communication 382 128 1,040 492 Amortization of
intangible assets 189 1 534 25 Acquisition expenses 346 320 5,917
812 Other expenses 2,824 1,666 8,663 4,305
Total non-interest expense 17,586 8,750 58,463
25,478 Income before income taxes 12,192 5,482 27,471 17,799
Income tax expense 3,575 1,850 8,085 5,450
Net income $ 8,617 $
3,632 $ 19,386 $ 12,349
Earnings per share: Basic (1) $ 0.56 $ 0.40 $ 1.27 $
1.37 Diluted (1) 0.56 0.40 1.27 1.35
Weighted average
shares outstanding: Basic (1) 15,420 9,064 15,098 9,037 Diluted
(1) 15,511 9,162
15,204 9,138
(1) Adjusted for 3-for-2 stock-split completed in March
2017.
BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME
(5 Quarter Trend) - UNAUDITED
(In thousands, except per
share data) Sep 30,2017 Jun 30,2017 Mar 31,2017 Dec 31,2016 Sep
30,2016
Interest and dividend income Loans $ 24,661 $ 24,226
$ 21,194 $ 11,026 $ 10,295 Securities and other 5,402 5,439
4,991 3,820 3,828 Total interest and dividend
income 30,063 29,665 26,185 14,846 14,123
Interest expense
Deposits 3,177 2,539 2,210 1,768 1,755 Borrowings 3,408
3,317 2,603 1,421 1,369 Total interest expense
6,585 5,856 4,813 3,189 3,124
Net
interest income 23,478 23,809 21,372 11,657 10,999 Provision
for loan losses 660 736 795 225 139 Net
interest income after provision for loan losses 22,818
23,073 20,577 11,432 10,860
Non-interest
income Trust and investment management fee income 3,040 3,324
2,864 951 975 Insurance and brokerage service income 329 327 364 —
— Customer service fees 2,638 1,991 1,360 649 706 Gain on sales of
securities, net 19 — — 9 1,354 Bank-owned life insurance income 380
386 399 163 197 Other income 554 530 959 263
140 Total non-interest income 6,960 6,558
5,946 2,035 3,372
Non-interest expense
Salaries and employee benefits 9,617 10,127 10,321 5,127 4,832
Occupancy and equipment 2,894 3,013 2,666 1,144 1,156 Loss on sales
of premises and equipment,net (1 ) — 95 32 216 Outside services 907
716 597 337 181 Professional services 428 489 440 405 250
Communication 382 290 368 94 128 Amortization of intangible assets
189 188 157 1 1 Acquisition expenses 346 2,459 3,112 1,838 320
Other expenses 2,824 2,764 3,075 1,479
1,666 Total non-interest expense 17,586 20,046 20,831
10,457 8,750 Income before income taxes 12,192
9,585 5,692 3,010 5,482 Income tax expense 3,575 3,029
1,481 426 1,850
Net income
$ 8,617 $ 6,556 $
4,211 $ 2,584 $ 3,632
Earnings per share: Basic (1) $ 0.56 $ 0.43 $ 0.29 $
0.28 $ 0.40 Diluted (1) 0.56 0.42 0.29 0.28 0.40
Weighted
average shares outstanding: Basic (1) 15,420 15,393 14,471
9,096 9,064 Diluted (1) 15,511
15,506 14,591 9,215
9,162
(1) Adjusted for 3-for-2 stock split completed in March
2017.
BAR HARBOR BANKSHARES AVERAGE YIELDS AND COSTS (Fully
Taxable Equivalent - Annualized) - UNAUDITED
Quarters
Ended Sep 30,2017 Jun 30,2017 Mar 31,2017 Dec 31,2016 Sep
30,2016
Earning assets Loans 4.13 % 4.14 % 4.00 % 3.94 %
3.89 % Securities and other 3.13 3.19 3.01
3.01 3.07 Total earning assets 3.89 % 3.91 % 3.76 %
3.65 % 3.62 %
Funding liabilities Interest bearing
deposits 0.66 % 0.56 % 0.52 % 0.76 % 0.78 % Borrowings 1.66
1.41 1.25 1.05 1.06 Total
interest-bearing liabilities 0.96 % 0.85 % 0.76 % 0.86 % 0.88 %
Net interest
spread 2.93 3.06 3.00 2.79 2.74 Net interest margin
3.06 3.16 3.11
2.89 2.84
BAR
HARBOR BANKSHARES AVERAGE BALANCES - UNAUDITED
Quarters Ended (In thousands) Sep 30,2017 Jun 30,2017 Mar 31,2017
Dec 31,2016 Sep 30,2016
Assets Total loans (1) $ 2,402,171 $
2,377,141 $ 2,346,340 $ 1,119,065 $ 1,058,253 Securities and other
(2) 754,450 761,546 746,653 556,365
551,456 Total earning assets 3,156,621 3,138,687 3,092,993
1,675,430 1,609,709 Cash and due from banks 49,169 87,332 25,556
5,976 5,819 Allowance for loan losses (11,786 ) (11,292 ) (10,584 )
(10,336 ) (10,095 ) Goodwill and other intangible assets 109,147
109,108 109,261 5,324 5,347 Other assets 149,394 110,129
122,396 71,807 78,755 Total assets $
3,452,545 $ 3,433,964 $ 3,339,622 $ 1,748,201
$ 1,689,535
Liabilities and shareholders'
equity Total interest-bearing deposits $ 1,901,501 $ 1,811,226
$ 1,798,014 $ 930,983 $ 897,703 Borrowings 812,938 941,789
856,328 537,818 514,999 Total
interest-bearing liabilities 2,714,439 2,753,015 2,654,342
1,468,801 1,412,702 Non-interest-bearing demand deposits 354,470
320,503 350,497 108,961 103,971 Other liabilities 30,079
13,145 19,334 7,929 7,376 Total
liabilities 3,098,988 3,086,663 3,024,173 1,585,691 1,524,049
Total shareholders' equity 353,557 347,301 315,449 162,510
165,486 Total liabilities
and shareholders' equity $ 3,452,545
$ 3,433,964 $ 3,339,622
$ 1,748,201 $ 1,689,535
(1) Total loans include non-accruing loans.(2) Average balances
for securities available-for-sale are based on amortized cost.
BAR HARBOR BANKSHARES ASSET QUALITY ANALYSIS -
UNAUDITED
At or for the Quarters Ended (in thousands)
Sep 30,2017 Jun 30,2017 Mar 31,2017 Dec 31,2016 Sep 30,2016
NON-PERFORMING ASSETS Non-accruing loans: Commercial real
estate $ 2,467 $ 2,090 $ 2,354 $ 2,564 $ 2,478 Commercial
installment 236 270 451 315 276 Residential real estate 3,619 2,783
3,066 3,419 3,429 Consumer installment 496 160 160
198 219 Total non-accruing loans 6,818 5,303
6,031 6,496 6,402 Other real estate owned 122 122 363
90 189 Total non-performing assets $ 6,940
$ 5,425 $ 6,394 $ 6,586 $ 6,591
Total non-accruing loans/total loans 0.28 % 0.22 % 0.25 %
0.58 % 0.59 % Total non-performing assets/total assets 0.20 0.15
0.19 0.38 0.38
PROVISION AND ALLOWANCE FOR LOAN
LOSSES Balance at beginning of period $ 11,442 $ 10,884 $
10,419 $ 10,103 $ 9,891 Charged-off loans (297 ) (213 ) (344 ) (28
) (120 ) Recoveries on charged-off loans 145 35 14
119 193 Net loans charged-off (152 ) (178 )
(330 ) 91 73 Provision for loan losses 660 736 795
225 139 Balance at end of period $ 11,950
$ 11,442 $ 10,884 $ 10,419 $ 10,103
Allowance for loan losses/total loans 0.49 % 0.48 %
0.46 % 0.92 % 0.93 % Allowance for loan losses/non-accruing loans
175 216 180 160 158
NET LOAN CHARGE-OFFS Commercial
real estate $ (16 ) $ (6 ) $ (103 ) $ 5 $ (77 ) Commercial
installment 6 (138 ) (17 ) 89 156 Residential real estate (79 ) (13
) (198 ) 8 (11 ) Consumer installment (63 ) (21 ) (12 ) (11 ) 5
Total, net $ (152 ) $ (178 ) $ (330 ) $ 91 $ 73
Net charge-offs (QTD annualized)/average loans 0.01 %
0.03 % 0.06 % (0.03 )% (0.03 )% Net charge-offs (YTD
annualized)/average loans 0.02 0.04 0.06 (0.03 ) 0.01
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS 30-89 Days
delinquent 0.35 % 0.55 % 0.33 % 0.54 % 0.15 % 90+ Days delinquent
and still accruing 0.01 — — — —
Total accruing delinquent loans 0.35 0.55 0.33 0.54 0.15
Non-accruing loans 0.28 0.22 0.25 0.58
0.59 Total delinquent and non-accruing loans
0.63 % 0.77 % 0.58 % 1.12
% 0.74 %
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY
DATA- UNAUDITED At or for the Quarters Ended (in
thousands) Sep 30,2017 Jun 30,2017
Mar 31,2017 Dec 31,2016 Sep
30,2016 Net income $ 8,617 $ 6,556 $ 4,211 $ 2,584 $ 3,632 Adj:
Security Gains (19 ) — — (9 ) (1,354 ) Adj: Loss on sale of fixed
assets, net (1 ) — 95 32 216 Adj: Acquisition expenses 346 2,459
3,112 1,838 320 Adj: Income taxes (37.57% in 2017, 35.0% in 2016)
(122 ) (924 ) (1,205 ) (651 ) 286 Total core income (4) (A)
$ 8,821 $ 8,091 $ 6,213 $ 3,794 $ 3,100
Net-interest income (B) $ 23,478 $ 23,809 $ 21,372 $
11,657 $ 10,999 Plus: Non-interest income 6,960 6,558
5,946 2,035 3,372 Total Revenue 30,438
30,367 27,318 13,692 14,371 Adj: Net security gains (19 ) —
— (9 ) (1,354 ) Total core revenue (4) (C) $ 30,419
$ 30,367 $ 27,318 $ 13,683 $ 13,017
Total non-interest expense $ 17,586 $ 20,046 $ 20,831
$ 10,457 $ 8,750 Less: Acquisition expenses (346 ) (2,459 )
(3,112 ) (1,838 ) (320 ) Core non-interest expense (4) (D) $ 17,240
$ 17,587 $ 17,719 $ 8,619 $ 8,430
(in millions) Total average earning assets (E) $
3,157 $ 3,139 $ 3,093 $ 1,675 $ 1,610 Total average assets (F)
3,453 3,434 3,340 1,748 1,690 Total average shareholders' equity
(G) 354 347 315 163 165 Total average tangible shareholders' equity
(H) 244 238 206 157 160 Total tangible shareholders' equity,
period-end (1) (I) 244 238 232 151 159 Total tangible assets,
period-end (1) (J) 3,367 3,394 3,318 1,750 1,713 (in
thousands) Total common shares outstanding, period-end (K) 15,432
15,407 15,385 9,116 9,084 Average diluted shares outstanding (L)
15,511 15,506 14,591 9,215 9,162 Core earnings per share,
diluted (A/L) $ 0.57 $ 0.52 $ 0.43 $ 0.41 $ 0.34 Tangible book
value per share, period-end (I/K) 15.84 15.44 15.07 16.61 17.51
Total tangible shareholders' equity/total tangible assets (H/J)
7.26 7.01 6.99 8.65 9.29 Performance ratios (2) GAAP return
on assets 0.99 % 0.76 % 0.50 % 0.59 % 0.86 % Core return on assets
(4) (A/F) 1.01 0.94 0.74 0.87 0.73 GAAP return on equity 9.67 7.55
5.34 6.36 8.78 Core return on equity (4) (A/G) 9.90 9.32 7.88 9.34
7.49 Core return on tangible equity (3) (4) (A/I) 14.51 13.79 12.24
9.66 7.75 Efficiency ratio (4)(5) (D-N-P)/(C+M) 53.59 54.64 61.62
59.24 61.24 Net interest margin (B+O)/E 3.06 3.16 3.11 2.89 2.84
Supplementary data (in thousands)
Taxable equivalent adjustment for efficiency ratio (M) 1,107
1,185 977 538 434 Franchise taxes included in non-interest expense
(N) 154 158 126 37 36 Tax equivalent adjustment for net interest
margin (O) 878 936 754 182 168 Intangible amortization
(P) 189 188 157
157 157
(1) Total tangible shareholders' equity is computed by taking
total shareholders' equity less the intangible assets at
period-end. Total tangible assets is computed by taking total
assets less the intangible assets at period-end.(2) Ratios are
annualized and based on average balance sheet amounts, where
applicable. Quarterly data may not sum to year-to-date data due to
rounding.(3) Core return on tangible equity is computed by dividing
the total core income adjusted for the tax-effected amortization of
intangible assets, assuming a marginal rate of 37.57% in 2017 and
35.0% in 2016, by tangible equity.(4) Non-GAAP financial
measure.(5) Efficiency ratio is computed by dividing total core
tangible non-interest expense by the sum of total net interest
income on a fully taxable equivalent basis and total core
non-interest income. The Company uses this non-GAAP measure to
provide important information about its operating efficiency.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171019006598/en/
Bar Harbor BanksharesJosephine Iannelli, 207-288-3314EVP, Chief
Financial Officer & TreasurerorMarsha Sawyer, 207-288-3314EVP,
Investor Relations
Bar Harbor Bankshares (AMEX:BHB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bar Harbor Bankshares (AMEX:BHB)
Historical Stock Chart
From Apr 2023 to Apr 2024