Bar Harbor Bankshares (NYSE
American: BHB) reported net income for third quarter 2018 of
$9.0 million, or 58 cents per share, compared with $8.6 million, or
56 cents per share, in the same quarter of 2017.
THIRD QUARTER FINANCIAL HIGHLIGHTS
- 14.3% annualized increase in
non-maturity deposit accounts
- 57.9% efficiency ratio (non-GAAP
measure)
- 1.01% return on average assets
- 9.92% return on average equity
- 10% annualized growth in tangible book
value per share, excluding security adjustments (non-GAAP
measure)
President and Chief Executive Officer, Curtis C. Simard stated,
“Our third quarter was marked by yet another period of continued
focus and execution of our strategies to grow profitability while
remaining true to our risk management disciplines including credit.
Our GAAP earnings per share this quarter equaled core earnings,
which reflect our normalized operations. Tangible book value per
share, excluding security adjustments, now exceeds pre-acquisition
levels, which were accomplished within two years of the deal
closing. We are committed to building long-term shareholder value,
as evidenced by continued focus on non-maturity deposits and
improvements in our return on assets, return on equity and
efficiency ratios.”
“Commercial loans have grown 3% on a year-to-date annualized
basis as our teams continue to gain market share within our
regions. Commercial loan balances can fluctuate based on timing
given some larger deals and a conscious effort to not over extend
on terms for the sake of interim periods. We remain true to core
banking and cultivating long-term relationships with our customers.
Total deposit balances were up 3% on an annualized basis for the
quarter including more than a 14% increase in non-maturity
deposits. New deposit accounts opened totaled 3,212 for the third
quarter and 9,211for the year.”
Mr. Simard went on to say, “We continue to focus on organic
growth within our footprint as we expand further into our markets
where we see the greatest opportunity to increase shareholder
value. We are on track to open our new branch in Manchester, New
Hampshire next month with plans for branches in Bedford, New
Hampshire and Belfast, Maine next year. These de novo branches will
help provide greater service and convenience to our existing
customers and the opportunity to further expand our growing deposit
base.”
“As you may have read in our press release earlier this month,
we announced a strategic expansion with the development of a
commercial loan office in Portland, Maine. This opportunity is
about being fully engaged in an important commercial market within
the state of Maine. We are already actively calling on the
commercial accounts in Portland, and by having a physical presence
in this market; we will be best positioned to service those needs.
To that end, we also announced Daryl Wentworth and Joe Delano have
joined our teams, two very seasoned and accomplished leaders in
this market. Daryl and Joe combined have over 50 years of
experience in both commercial real estate and commercial and
industrial lending; they have been recognized as proven idea
generators in the middle market space for New England.”
Mr. Simard concluded, “Over the past few quarters we have
further defined a culture that cares about our colleagues,
customers and community. These ideals, combined with our existing
model of balancing growth and earnings while following a steadfast
commitment to risk management and controls have given rise to a
catalyst for continued financial performance. The measures we have
taken are essential to enhancing profitability and achieving our
long-term goals. Together and as one team we are focused on
providing first class service to our customers and we look forward
to a strong close for the year in the fourth quarter.”
RESULTS OF OPERATIONS
Net income was up 5% to $9.0 million, or 58 cents per share, in
the third quarter of 2018 compared to $8.6 million, or 56 cents per
share, in the same quarter of 2017. Results in the prior year
include a $346 thousand charge, or 1 cent per share reduction, from
trailing acquisition and conversion costs.
Interest income totaled $32.2 million, up 7% on a year-over-year
basis, and yields on loans and investments expanded eleven basis
points in total. Net interest margin in the third quarter 2018
decreased to 2.81% from 3.06% in the prior year due to higher cost
of funds driven by short-term interest rate hikes. That decrease
included a lower contribution from tax-equivalency adjustments of
six basis points over the prior year as a result of the lower
federal statutory tax rate. The Company's loan to deposit ratio
improved 3% over the prior year to 104 at the end of the third
quarter. Total deposit growth of 3%, led by 14.3% growth in
non-maturity balances, helped to reduce other higher funding cost
realized as a result of recent rate increases.
The third quarter provision for loan losses was $643 thousand
and exceeded net charge-offs, which follows the positive trend in
all quarterly periods presented. Non-interest income increased to
$7.1 million or 2.4% from the prior year primarily due to a $685
thousand gain from a partial sale of the Company’s ownership
interest in Visa Class B shares. Non-interest expense increased to
$17.9 million in the third quarter 2018 from $17.6 million in the
same quarter of 2017. The increase is primarily due to higher
salary and benefit expense related the build-up of the Company’s
talent base with strategic hires. The decrease primarily relates to
acquisition, conversion and other expenses, which totaled $70
thousand in 2018 and $346 thousand in 2017. The third quarter
effective tax rate decreased to 18.8% in 2018 compared with 29.3%
in the same quarter of 2017, reflecting a lower federal statutory
tax rate.
FINANCIAL CONDITION
Total assets were $3.6 billion at the end of the third quarter
2018, up $20.0 million from the second quarter 2018. Loan balances
in the third quarter 2018 were relatively flat with the second
quarter with increases in residential products, which were offset
by lower commercial loan balances due to higher prepayments and
amortization. Asset quality improved during the third quarter with
lower non-accrual loans due to activities associated with
commercial workouts. Net loan charge-offs continue to be at
historic lows and the ratio of credit losses to total loans
improved to 0.54% at the end of the third quarter. The Company’s
risk-based capital ratio for the third quarter 2018 is expected to
be near 14.0% as tangible book value (non-GAAP measure) continued
to expand on a quarter-over-quarter basis. Excluding the impact of
securities fair value adjustments, earnings grew tangible book
value per share (non-GAAP measure) to $17.22 from $16.81 in the
second of quarter of 2018.
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 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 STATEMENTS
Certain statements contained in this document 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, 2017. 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.
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 adjusted earnings can
be of substantial importance to the Company's results for any
particular quarter or year. The Company's non-GAAP adjusted
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 adjusted earnings
in evaluating operating trends, including components for adjusted
revenue and expense. These measures exclude amounts which the
Company views as unrelated to its normalized operations, including
securities gains/losses, 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 adjusted earnings per share based on
its measure of adjusted 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 adjusted earnings and adjusted 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.
TABLEINDEX
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 Sep 30, 2018 Jun
30,2018 Mar 31,2018 Dec
31,2017 Sep 30,2017 PER SHARE
DATA Net earnings, diluted $ 0.58 $ 0.55 $ 0.50 $ 0.43 $ 0.56
Core earnings, diluted (1) (2) 0.58 0.56 0.52 0.58 0.57 Total book
value 23.06 22.97 22.78 22.96 22.90 Tangible book value (2) 16.11
16.00 15.78 15.94 15.84 Market price at period end 28.72 30.29
27.72 27.01 31.36 Dividends 0.20 0.20 0.19 0.19 0.19
PERFORMANCE RATIOS (3) Return on assets 1.01 % 0.97 % 0.90 %
0.75 % 0.99 % Core return on assets (1) (2) 1.01 1.00 0.93 1.02
1.01 Return on equity 9.92 9.65 9.01 7.35 9.67 Core return on
equity (1) (2) 9.98 9.86 9.31 9.97 9.90 Core return on tangible
equity (1) (2) 14.52 14.43 13.72 14.56 14.53 Net interest margin,
fully taxable equivalent (FTE) (2) (4) 2.81 2.91 2.97 3.04 3.06 Net
interest margin (FTE), excluding purchased loan accretion (2) (4)
2.71 2.80 2.85 2.93 2.93 Efficiency ratio (2) 57.88 58.83 60.44
53.02 53.53
GROWTH (Year-to-date, annualized) (2)
Total commercial loans 2.8 % 5.7 % 2.2 % 23.8 % 20.5 % Total loans
(0.1 ) — (3.4 ) 13.1 12.2 Total deposits 2.2 1.9 (1.8 ) 14.4 10.6
FINANCIAL DATA (In millions) Total assets $ 3,561 $
3,541 $ 3,511 $ 3,565 $ 3,476 Total earning assets (5) 3,253 3,250
3,235 3,244 3,183 Total investments 747 749 757 755 756 Total loans
2,484 2,485 2,464 2,486 2,429 Allowance for loan losses 13 13 13 12
12 Total goodwill and intangible assets 108 108 108 108 109 Total
deposits 2,390 2,375 2,341 2,352 2,275 Total shareholders' equity
358 356 352 355 353 Net income 9 9 8 7 9 Core income (1) (2) 9 9 8
9 9
ASSET QUALITY AND CONDITION RATIOS Net
charge-offs (current quarter annualized)/average loans 0.04 % 0.06
% 0.07 % 0.04 % 0.03 % Allowance for loan losses/total loans 0.54
0.53 0.51 0.50 0.49 Loans/deposits 104 105 105 106 107
Shareholders' equity to total assets 10.04 10.05 10.03 9.95 10.17
Tangible shareholders' equity to tangible assets 7.24
7.22 7.17 7.12
7.26
_____________________________________(1) Core measurements are
non-GAAP financial measures that are adjusted to exclude net
non-operating charges primarily related to acquisitions, system
conversions 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) Earning assets includes non-accruing loans and securities
are valued at amortized cost.
BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS
- UNAUDITED (in
thousands) Sep 30, 2018 Jun 30,2018
Mar 31,2018 Dec 31,2017 Sep
30,2017 Assets Cash and due from banks $ 53,154 $
39,327 $ 35,088 $ 34,262 $ 31,223 Interest-bearing deposits with
the Federal Reserve Bank 19,420 22,066 12,725
56,423 17,501 Total cash and cash equivalents 72,574
61,393 47,813 90,685 48,724 Securities available for sale, at fair
value 712,658 710,147 718,559 717,242 718,459 Federal Home Loan
Bank stock 34,154 38,712 38,105 38,105
37,107 Total securities 746,812 748,859 756,664 755,347
755,566 Commercial real estate 840,018 838,546 824,721 826,746
793,572 Commercial and industrial 385,814 400,293 387,205 379,423
357,072 Residential real estate 1,140,519 1,127,895 1,132,977
1,155,682 1,152,628 Consumer 117,239 118,332 119,516
123,762 125,590 Total loans 2,483,590
2,485,066 2,464,419 2,485,613 2,428,862 Less: Allowance for loan
losses (13,487 ) (13,090 ) (12,679 ) (12,325 ) (11,950 ) Net loans
2,470,103 2,471,976 2,451,740 2,473,288 2,416,912 Premises
and equipment, net 47,621 48,038 48,464 47,708 48,309 Other real
estate owned 68 129 216 122 122 Goodwill 100,085 100,085 100,085
100,085 100,255 Other intangible assets 7,690 7,921 8,152 8,383
8,811 Cash surrender value of bank-owned life insurance 73,316
58,811 58,433 57,997 57,613 Deferred tax asset, net 11,527 10,309
9,627 7,180 13,052 Other assets 31,196 33,534 29,793
24,389 26,368 Total assets $ 3,560,992
$ 3,541,055 $ 3,510,987 $ 3,565,184 $
3,475,732
Liabilities and shareholders' equity
Demand and other non-interest bearing deposits $ 372,358 $ 341,773
$ 342,192 $ 349,055 $ 357,398 NOW deposits 471,326 449,715 448,992
466,610 442,085 Savings deposits 354,908 350,339 361,591 364,799
373,118 Money market deposits 254,142 260,642 303,777 305,275
300,398 Time deposits 937,615 972,252 884,848
866,346 802,110 Total deposits 2,390,349 2,374,721
2,341,400 2,352,085 2,275,109 Senior borrowings 739,224
735,924 742,198 786,688 775,582 Subordinated borrowings 42,988
43,003 43,018 43,033 43,048
Total borrowings 782,212 778,927 785,216 829,721 818,630
Other liabilities 30,746 31,444 32,214 28,737
28,534 Total liabilities 3,203,307 3,185,092
3,158,830 3,210,543 3,122,273 Total common shareholders'
equity 357,685 355,963 352,157 354,641
353,459 Total liabilities and shareholders' equity $
3,560,992 $ 3,541,055 $ 3,510,987 $ 3,565,184
$ 3,475,732
Net shares outstanding
15,509 15,496 15,459
15,443 15,432
BAR
HARBOR BANKSHARES CONSOLIDATED LOAN & DEPOSIT ANALYSIS -
UNAUDITED
LOAN
ANALYSIS
Annualized Growth
% (in thousands)
Sep 30,2018
Jun 30,2018
Mar 31,2018
Dec 31,2017
Sep 30,2017
QuarterEnd
Year toDate
Commercial real estate $ 840,018 $ 838,546 $ 824,721 $ 826,746 $
793,572 0.7 % 2.1 % Commercial and industrial 303,984
313,680 301,811 293,707 270,759 (12.4 )
4.7 Total commercial loans 1,144,002 1,152,226 1,126,532
1,120,453 1,064,331 (2.9 ) 2.8 Residential real estate 1,140,519
1,127,895 1,132,977 1,155,682 1,152,628 4.5 (1.8 ) Consumer 117,239
118,332 119,516 123,762 125,590 (3.7 ) (7.0 ) Tax exempt and other
81,830 86,613 85,394 85,716 86,313
(22.1 ) (6.0 ) Total loans $ 2,483,590
$ 2,485,066 $ 2,464,419 $ 2,485,613
$ 2,428,862 (0.2 )% (0.1 )%
DEPOSIT
ANALYSIS
Annualized Growth
% (in thousands)
Sep 30,2018
Jun 30,2018 Mar 31,2018 Dec
31,2017 Sep 30,2017
QuarterEnd
Year toDate
Demand $ 372,358 $ 341,773 $ 342,192 $ 349,055 $ 357,398 35.8 % 8.9
% NOW 471,326 449,715 448,992 466,610 442,085 19.2 1.3 Savings
354,908 350,339 361,591 364,799 373,118 5.2 (3.6 ) Money Market
254,142 260,642 303,777 305,275 300,398
(10.0 ) (22.3 ) Total non-maturity deposits 1,452,734
1,402,469 1,456,552 1,485,739 1,472,999 14.3 (3.0 ) Total time
deposits 937,615 972,252 884,848 866,346
802,110 (14.3 ) 11.0 Total deposits $
2,390,349 $ 2,374,721 $ 2,341,400
$ 2,352,085 $ 2,275,109
2.6 % 2.2 %
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
(in thousands, except per share data) 2018
2017 2018 2017 Interest and dividend
income Loans $ 26,212 $ 24,661 $ 77,272 $ 70,081 Securities and
other 5,972 5,402 17,407 15,832 Total interest
and dividend income 32,184 30,063 94,679 85,913
Interest
expense Deposits 5,478 3,177 13,868 7,926 Borrowings 4,237
3,408 12,192 9,327 Total interest expense
9,715 6,585 26,060 17,253
Net interest
income 22,469 23,478 68,619 68,660 Provision for loan losses
643 660 2,208 2,191 Net interest income after
provision for loan losses 21,826 22,818 66,411
66,469
Non-interest income Trust and investment management
fee income 2,952 3,040 9,036 9,228 Insurance brokerage service
income — 329 — 1,020 Customer service fees 2,490 2,638 7,061 6,402
Gain on sales of securities, net — 19 — 19 Bank-owned life
insurance income 505 380 1,328 1,165 Other income 1,179 554
3,060 1,631 Total non-interest income 7,126
6,960 20,485 19,465
Non-interest expense
Salaries and employee benefits 10,331 9,617 31,695 30,065 Occupancy
and equipment 3,366 2,700 9,364 8,195 Loss on sales of premises and
equipment, net — (1 ) — 94 Outside services 456 907 1,597 2,220
Professional services 223 428 1,016 1,357 Communication 217 382 701
1,040 Amortization of intangible assets 207 212 621 603
Acquisition, conversion and other expenses 70 346 619 5,917 Other
expenses 3,036 2,995 9,830 8,972 Total
non-interest expense 17,906 17,586 55,443
58,463 Income before income taxes 11,046 12,192 31,453
27,471 Income tax expense 2,076 3,575 6,136
8,085
Net income $ 8,970 $ 8,617
$ 25,317 $ 19,386
Earnings per
share: Basic $ 0.58 $ 0.56 $ 1.64 $ 1.27 Diluted $ 0.58 $ 0.56
1.63 1.27
Weighted average shares outstanding: Basic
15,503 15,420 15,478 15,098 Diluted 15,580
15,511 15,564 15,204
BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME
(5 Quarter Trend) - UNAUDITED
(in thousands, except per share data) Sep 30,
2018 Jun 30,2018 Mar 31,2018
Dec 31,2017 Sep 30,2017 Interest and
dividend income Loans $ 26,212 $ 25,934 $ 25,126 $ 24,895 $
24,661 Securities and other 5,972 5,784 5,651
5,261 5,402 Total interest and dividend income 32,184
31,718 30,777 30,156 30,063
Interest expense Deposits 5,478
4,405 3,985 3,381 3,177 Borrowings 4,237 4,321 3,634
3,279 3,408 Total interest expense 9,715
8,726 7,619 6,660 6,585
Net
interest income 22,469 22,992 23,158 23,496 23,478 Provision
for loan losses 643 770 795 597 660
Net interest income after provision for loan losses 21,826
22,222 22,363 22,899 22,818
Non-interest income Trust and investment management fee
income 2,952 3,122 2,962 3,042 3,040 Insurance brokerage service
income — — — 77 329 Customer service fees 2,490 2,347 2,224 2,495
2,638 Gain on sales of securities, net — — — — 19 Bank-owned life
insurance income 505 377 446 374 380 Other income 1,179
1,275 606 530 554 Total non-interest
income 7,126 7,121 6,238 6,518 6,960
Non-interest expense Salaries and employee benefits
10,331 10,375 10,989 9,524 9,617 Occupancy and equipment 3,366
2,925 3,073 2,866 2,700 Gain on sales of premises and equipment,
net — — — — (1 ) Outside services 456 581 560 780 907 Professional
services 223 360 433 298 428 Communication 217 304 180 249 382
Amortization of intangible assets 207 207 207 209 212 Acquisition,
conversion, and other expenses 70 214 335 (2,615 ) 346 Other
expenses 3,036 3,719 3,075 2,952 2,995
Total non-interest expense 17,906 18,685
18,852 14,263 17,586 Income before
income taxes 11,046 10,658 9,749 15,154 12,192 Income tax expense
2,076 2,123 1,937 8,545 3,575
Net income $ 8,970 $ 8,535
$ 7,812 $ 6,609 $ 8,617
Earnings per share: Basic $ 0.58 $ 0.55 $ 0.51 $ 0.43
$ 0.56 Diluted $ 0.58 $ 0.55 $ 0.50 $ 0.43 $ 0.56
Weighted average shares outstanding: Basic 15,503 15,482
15,448 15,437 15,420 Diluted 15,580 15,571
15,553 15,537 15,511
BAR HARBOR BANKSHARES AVERAGE YIELDS AND
COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
Quarters Ended
Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec
31, 2017 Sep 30, 2017 Earning assets Commercial
real estate 4.57 % 4.48 % 4.41 % 4.30 % 4.28 % Commercial and
industrial 4.59 4.69 4.41 4.77 4.84 Residential 3.83 3.88 3.87 3.78
3.79 Consumer 4.85 4.65 4.47 4.17 4.34
Total loans 4.25 4.25 4.16 4.12 4.13 Securities and other
3.21 3.18 3.16 3.06 3.13 Total
earning assets 4.00 % 3.99 % 3.92 % 3.87 % 3.89 %
Funding
liabilities NOW 0.43 % 0.37 % 0.34 % 0.31 % 0.32 % Savings 0.17
0.17 0.18 0.19 0.18 Money market 0.76 0.79 0.68 0.58 0.52 Time
deposits 1.78 1.51 1.39 1.19 1.13
Total interest bearing deposits 1.06 0.90 0.82 0.70 0.66
Borrowings 2.26 2.07 1.80 1.62 1.66
Total interest-bearing liabilities 1.38 % 1.25 % 1.11 % 0.97
% 0.96 %
Net interest spread 2.62 2.74 2.81 2.90 2.93
Net interest margin 2.81 2.91
2.97 3.04 3.06
BAR HARBOR BANKSHARES AVERAGE BALANCES - UNAUDITED
Quarters Ended (in
thousands) Sep 30, 2018 Jun 30, 2018 Mar 31,
2018 Dec 31, 2017 Sep 30, 2017 Assets
Commercial real estate $ 837,058 $ 824,356 $ 819,531 $ 783,730 $
764,770 Commercial and industrial 388,831 396,471 380,029 362,881
353,194 Residential 1,120,336 1,126,714 1,147,010 1,161,865
1,158,069 Consumer 117,735 119,570 121,467
125,109 126,138 Total loans (1) 2,463,960 2,467,111
2,468,037 2,433,585 2,402,171 Securities and other (2) 773,562
767,886 765,328 753,282 754,450
Total earning assets 3,237,522 3,234,997 3,233,365 3,186,867
3,156,621 Cash and due from banks 63,272 50,869 53,151 65,145
49,169 Allowance for loan losses (13,463 ) (13,107 ) (12,589 )
(12,202 ) (11,786 ) Goodwill and other intangible assets 107,887
108,118 108,349 108,769 109,147 Other assets 137,466 131,522
129,525 144,359 149,394 Total assets $
3,532,684 $ 3,512,399 $ 3,511,801 $ 3,492,938
$ 3,452,545
Liabilities and shareholders'
equity NOW $ 461,875 $ 441,645 $ 447,026 $ 449,669 $ 447,459
Savings 356,834 351,712 362,508 368,714 368,443 Money market
259,738 288,169 305,105 308,071 292,110 Time deposits 964,108
872,149 857,796 799,348 793,489
Total interest bearing deposits 2,042,555 1,953,675 1,972,435
1,925,802 1,901,501 Borrowings 744,632 836,295
819,576 803,469 812,938 Total interest-bearing
liabilities 2,787,187 2,789,970 2,792,011 2,729,271 2,714,439
Non-interest-bearing demand deposits 357,856 339,374 339,349
376,066 354,470 Other liabilities 28,943 28,386
29,000 30,971 30,079 Total liabilities
3,173,986 3,157,730 3,160,360 3,136,308 3,098,988 Total
shareholders' equity 358,698 354,669 351,441 356,630 353,557
Total liabilities and
shareholders' equity $ 3,532,684 $ 3,512,399
$ 3,511,801 $ 3,492,938 $
3,452,545
_____________________________________(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 30,2018
Jun 30,2018
Mar 31,2018
Dec 31,2017
Sep 30,2017
NON-PERFORMING ASSETS Non-accruing loans: Commercial real
estate $ 8,348 $ 8,883 $ 8,422 $ 8,343 $ 2,467 Commercial
installment 2,303 2,411 2,304 1,209 236 Residential real estate
10,396 9,945 8,548 4,266 3,619 Consumer installment 727 707
1,065 500 496 Total non-accruing loans
21,774 21,946 20,339 14,318 6,818 Other real estate owned 68
129 216 122 122 Total non-performing
assets $ 21,842 $ 22,075 $ 20,555 $ 14,440
$ 6,940 Total non-accruing loans/total loans
0.88 % 0.88 % 0.83 % 0.58 % 0.28 % Total non-performing
assets/total assets 0.61 0.62 0.59 0.41 0.20
PROVISION
AND ALLOWANCE FOR LOAN LOSSES Balance at beginning of period $
13,090 $ 12,679 $ 12,325 $ 11,950 $ 11,442 Charged-off loans (298 )
(517 ) (461 ) (277 ) (297 ) Recoveries on charged-off loans 52
158 20 55 145 Net loans
charged-off (246 ) (359 ) (441 ) (222 ) (152 ) Provision for loan
losses 643 770 795 597 660
Balance at end of period $ 13,487 $ 13,090 $ 12,679
$ 12,325 $ 11,950 Allowance for loan
losses/total loans 0.54 % 0.53 % 0.51 % 0.50 % 0.49 % Allowance for
loan losses/non-accruing loans 62 60 62 86 175
NET LOAN
CHARGE-OFFS Commercial real estate $ (27 ) $ (92 ) $ (91 ) $
(92 ) $ (16 ) Commercial installment (53 ) (54 ) (140 ) 1 6
Residential real estate (123 ) (64 ) 1 — (79 ) Consumer installment
(43 ) (149 ) (211 ) (131 ) (63 ) Total, net $ (246 ) $ (359 ) $
(441 ) $ (222 ) $ (152 ) Net charge-offs (QTD
annualized)/average loans 0.04 % 0.06 % 0.07 % 0.04 % 0.03 % Net
charge-offs (YTD annualized)/average loans 0.06 0.06 0.07 0.04 0.04
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS 30-89
Days delinquent 0.17 % 0.14 % 0.24 % 0.37 % 0.35 % 90+ Days
delinquent and still accruing — — — 0.02
0.01 Total accruing delinquent loans 0.17 0.14 0.24
0.39 0.36 Non-accruing loans 0.88 0.88 0.83
0.58 0.28 Total delinquent and non-accruing loans
1.05 % 1.02 % 1.07 % 0.97 % 0.64
%
BAR HARBOR BANKSHARES RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED
At or for the Quarters Ended (in
thousands) Sep 30, 2018
Jun 30,2018 Mar 31,2018
Dec 31,2017 Sep 30,2017 Net
income $ 8,970 $ 8,535 $ 7,812 $ 6,609 $ 8,617 Adj: Security Gains
— — — — (19 ) Adj: Gain on sale of fixed assets, net — — — — (1 )
Adj: Loss on other real estate owned (8 ) 23 — — — Adj:
Acquisition, conversion and other expenses 70 214 335 (2,615 ) 346
Adj: Income taxes (1) (12 ) (57 ) (81 ) 982 (122 ) Adj: Tax reform
charge — — — 3,988 —
Total core income (2) (A) $ 9,020 $ 8,715
$ 8,066 $ 8,964 $ 8,821
Net-interest income (B) $22,469 $22,992 $23,158 $23,496 $23,478
Plus: Non-interest income 7,126 7,121
6,238 6,518 6,960 Total Revenue 29,595 30,113
29,396 30,014 30,438 Adj: Net security gains —
— — — (19 ) Total core revenue (2) (C)
$29,595 $30,113 $29,396 $30,014 $30,419
Total non-interest expense 17,906 18,685 18,852
14,263 17,586 Less: Gain on sale of fixed assets, net — — — — 1
Less: Loss on other real estate owned 8 (23 ) — — — Less:
Acquisition, conversion and other expenses (70 ) (214
) (335 ) 2,615 (346 ) Core non-interest expense (2)
(D) $17,844 $18,448 $18,517 $16,878
$17,241
(in millions) Total average earning
assets (E) $ 3,238 $ 3,235 $ 3,233 $ 3,187 $ 3,157 Total average
assets (F) 3,533 3,512 3,512 3,493 3,453 Total average
shareholders' equity (G) 359 355 351 357 354 Total average tangible
shareholders' equity (2) (3) (H) 251 247 243 248 244 Total tangible
shareholders' equity, period-end (2) (3) (I) 250 248 244 246 244
Total tangible assets, period-end (2) (3) (J) 3,453 3,433 3,403
3,457 3,367
(in thousands) Total common shares
outstanding, period-end (K) 15,509 15,496 15,459 15,443 15,432
Average diluted shares outstanding (L) 15,580 15,571 15,553 15,537
15,511 Core earnings per share, diluted (2) (A/L) $ 0.58 $
0.56 $ 0.52 $ 0.58 $ 0.57 Tangible book value per share, period-end
(2) (I/K) 16.11 16.00 15.78 15.94 15.84 Securities adjustment, net
of tax (1)(4) (M) (17,152 ) (12,594 ) (10,237 ) 1,711 (1,155 )
Tangible book value per share, excluding securities adjustment (2)
(I+M)/K 17.22 16.81 16.44 15.83 15.91 Total tangible shareholders'
equity/total tangible assets (2) (I/J) 7.24 7.22 7.17 7.12 7.26
Performance ratios GAAP return on assets 1.01 % 0.97
% 0.90 % 0.75 % 0.99 % Core return on assets (2) (A/F) 1.01 1.00
0.93 1.02 1.01 GAAP return on equity 9.92 9.65 9.01 7.35 9.67 Core
return on equity (2) (A/G) 9.98 9.86 9.31 9.97 9.90 Core return on
tangible equity (2) (5) (A/I) 14.52 14.43 13.72 14.56 14.53
Efficiency ratio (2) (6) (D-O-Q)/(C+N) 57.88 58.83 60.44 53.02
53.53 Net interest margin (B+P)/E 2.81 2.91 2.97 3.04 3.06
Supplementary data (in thousands) Taxable equivalent
adjustment for efficiency ratio (N) $ 654 $ 622 $ 645 $ 1,122 $
1,107 Franchise taxes included in non-interest expense (O) 129 159
152 161 154 Tax equivalent adjustment for net interest margin (P)
493 502 503 897 878 Intangible amortization (Q) 207
207 207 209
212
_____________________________________(1) Assumes a marginal tax
rate of 23.78% in third quarter 2018 net of adjustment for first
and second quarter 2018, which was recorded at a marginal rate of
24.15%. A marginal tax rate of 37.57% was used in 2017.(2) Non-GAAP
financial measure.(3) 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.(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) Adjusted 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
23.78% in third quarter 2018, 24.15% in first and second quarter
2018 and 37.57% in 2017, by tangible equity.(6) 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: https://www.businesswire.com/news/home/20181018005935/en/
Bar Harbor BanksharesJosephine Iannelli, 207-288-3314EVP, Chief
Financial Officer & Treasurer
Bar Harbor Bankshares (AMEX:BHB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bar Harbor Bankshares (AMEX:BHB)
Historical Stock Chart
From Sep 2023 to Sep 2024