Bar Harbor Bankshares Reports Third Quarter Earnings
BAR HARBOR, MAINE - October 18, 2018 -- 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
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| • | 14.3% annualized increase in non-maturity deposit accounts |
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| • | 57.9% efficiency ratio (non-GAAP measure) |
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| • | 1.01% return on average assets |
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| • | 9.92% return on average equity |
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| • | 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.”
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| BHB - Bar Harbor Bankshares | Page 1 | www.bhbt.com |
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%
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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.
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| BHB - Bar Harbor Bankshares | Page 3 | www.bhbt.com |
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.
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| BHB - Bar Harbor Bankshares | Page 4 | www.bhbt.com |
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.
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| BHB - Bar Harbor Bankshares | Page 5 | www.bhbt.com |
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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| BAR HARBOR BANKSHARES |
| SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED |
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| | | 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 |
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Core earnings, diluted (1) (2) | | 0.58 |
| | 0.56 |
| | 0.52 |
| | 0.58 |
| | 0.57 |
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| Total book value | | 23.06 |
| | 22.97 |
| | 22.78 |
| | 22.96 |
| | 22.90 |
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Tangible book value (2) | | 16.11 |
| | 16.00 |
| | 15.78 |
| | 15.94 |
| | 15.84 |
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| Market price at period end | | 28.72 |
| | 30.29 |
| | 27.72 |
| | 27.01 |
| | 31.36 |
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| Dividends | | 0.20 |
| | 0.20 |
| | 0.19 |
| | 0.19 |
| | 0.19 |
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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 |
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| Return on equity | | 9.92 |
| | 9.65 |
| | 9.01 |
| | 7.35 |
| | 9.67 |
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Core return on equity (1) (2) | | 9.98 |
| | 9.86 |
| | 9.31 |
| | 9.97 |
| | 9.90 |
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Core return on tangible equity (1) (2) | | 14.52 |
| | 14.43 |
| | 13.72 |
| | 14.56 |
| | 14.53 |
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Net interest margin, fully taxable equivalent (FTE) (2) (4) | | 2.81 |
| | 2.91 |
| | 2.97 |
| | 3.04 |
| | 3.06 |
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Net interest margin (FTE), excluding purchased loan accretion (2) (4) | 2.71 |
| | 2.80 |
| | 2.85 |
| | 2.93 |
| | 2.93 |
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Efficiency ratio (2) | | 57.88 |
| | 58.83 |
| | 60.44 |
| | 53.02 |
| | 53.53 |
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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 |
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| Total deposits | | 2.2 |
| | 1.9 |
| | (1.8 | ) | | 14.4 |
| | 10.6 |
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FINANCIAL DATA (In millions) | | | | | | | | | | |
| Total assets | | $ | 3,561 |
| | $ | 3,541 |
| | $ | 3,511 |
| | $ | 3,565 |
| | $ | 3,476 |
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Total earning assets (5) | | 3,253 |
| | 3,250 |
| | 3,235 |
| | 3,244 |
| | 3,183 |
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| Total investments | | 747 |
| | 749 |
| | 757 |
| | 755 |
| | 756 |
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| Total loans | | 2,484 |
| | 2,485 |
| | 2,464 |
| | 2,486 |
| | 2,429 |
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| Allowance for loan losses | | 13 |
| | 13 |
| | 13 |
| | 12 |
| | 12 |
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| Total goodwill and intangible assets | | 108 |
| | 108 |
| | 108 |
| | 108 |
| | 109 |
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| Total deposits | | 2,390 |
| | 2,375 |
| | 2,341 |
| | 2,352 |
| | 2,275 |
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| Total shareholders' equity | | 358 |
| | 356 |
| | 352 |
| | 355 |
| | 353 |
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| Net income | | 9 |
| | 9 |
| | 8 |
| | 7 |
| | 9 |
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Core income (1) (2) | | 9 |
| | 9 |
| | 8 |
| | 9 |
| | 9 |
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| 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 |
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| Loans/deposits | | 104 |
| | 105 |
| | 105 |
| | 106 |
| | 107 |
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| Shareholders' equity to total assets | | 10.04 |
| | 10.05 |
| | 10.03 |
| | 9.95 |
| | 10.17 |
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| Tangible shareholders' equity to tangible assets | | 7.24 |
| | 7.22 |
| | 7.17 |
| | 7.12 |
| | 7.26 |
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(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.
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| BAR HARBOR BANKSHARES |
| CONSOLIDATED BALANCE SHEETS - UNAUDITED |
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| (in thousands) | | Sep 30,
2018 | | Jun 30,
2018 | | Mar 31,
2018 | | Dec 31,
2017 | | Sep 30,
2017 |
| Assets | | | | | | |
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| Cash and due from banks | | $ | 53,154 |
| | $ | 39,327 |
| | $ | 35,088 |
| | $ | 34,262 |
| | $ | 31,223 |
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| Interest-bearing deposits with the Federal Reserve Bank | | 19,420 |
| | 22,066 |
| | 12,725 |
| | 56,423 |
| | 17,501 |
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| Total cash and cash equivalents | | 72,574 |
| | 61,393 |
| | 47,813 |
| | 90,685 |
| | 48,724 |
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| Securities available for sale, at fair value | | 712,658 |
| | 710,147 |
| | 718,559 |
| | 717,242 |
| | 718,459 |
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| Federal Home Loan Bank stock | | 34,154 |
| | 38,712 |
| | 38,105 |
| | 38,105 |
| | 37,107 |
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| Total securities | | 746,812 |
| | 748,859 |
| | 756,664 |
| | 755,347 |
| | 755,566 |
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| Commercial real estate | | 840,018 |
| | 838,546 |
| | 824,721 |
| | 826,746 |
| | 793,572 |
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| Commercial and industrial | | 385,814 |
| | 400,293 |
| | 387,205 |
| | 379,423 |
| | 357,072 |
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| Residential real estate | | 1,140,519 |
| | 1,127,895 |
| | 1,132,977 |
| | 1,155,682 |
| | 1,152,628 |
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| Consumer | | 117,239 |
| | 118,332 |
| | 119,516 |
| | 123,762 |
| | 125,590 |
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| Total loans | | 2,483,590 |
| | 2,485,066 |
| | 2,464,419 |
| | 2,485,613 |
| | 2,428,862 |
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| 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 |
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| Premises and equipment, net | | 47,621 |
| | 48,038 |
| | 48,464 |
| | 47,708 |
| | 48,309 |
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| Other real estate owned | | 68 |
| | 129 |
| | 216 |
| | 122 |
| | 122 |
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| Goodwill | | 100,085 |
| | 100,085 |
| | 100,085 |
| | 100,085 |
| | 100,255 |
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| Other intangible assets | | 7,690 |
| | 7,921 |
| | 8,152 |
| | 8,383 |
| | 8,811 |
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| Cash surrender value of bank-owned life insurance | | 73,316 |
| | 58,811 |
| | 58,433 |
| | 57,997 |
| | 57,613 |
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| Deferred tax asset, net | | 11,527 |
| | 10,309 |
| | 9,627 |
| | 7,180 |
| | 13,052 |
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| Other assets | | 31,196 |
| | 33,534 |
| | 29,793 |
| | 24,389 |
| | 26,368 |
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| Total assets | | $ | 3,560,992 |
| | $ | 3,541,055 |
| | $ | 3,510,987 |
| | $ | 3,565,184 |
| | $ | 3,475,732 |
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| Liabilities and shareholders' equity | | | | | | |
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| 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 |
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| Savings deposits | | 354,908 |
| | 350,339 |
| | 361,591 |
| | 364,799 |
| | 373,118 |
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| Money market deposits | | 254,142 |
| | 260,642 |
| | 303,777 |
| | 305,275 |
| | 300,398 |
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| Time deposits | | 937,615 |
| | 972,252 |
| | 884,848 |
| | 866,346 |
| | 802,110 |
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| Total deposits | | 2,390,349 |
| | 2,374,721 |
| | 2,341,400 |
| | 2,352,085 |
| | 2,275,109 |
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| Senior borrowings | | 739,224 |
| | 735,924 |
| | 742,198 |
| | 786,688 |
| | 775,582 |
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| Subordinated borrowings | | 42,988 |
| | 43,003 |
| | 43,018 |
| | 43,033 |
| | 43,048 |
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| Total borrowings | | 782,212 |
| | 778,927 |
| | 785,216 |
| | 829,721 |
| | 818,630 |
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| Other liabilities | | 30,746 |
| | 31,444 |
| | 32,214 |
| | 28,737 |
| | 28,534 |
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| Total liabilities | | 3,203,307 |
| | 3,185,092 |
| | 3,158,830 |
| | 3,210,543 |
| | 3,122,273 |
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| Total common shareholders' equity | | 357,685 |
| | 355,963 |
| | 352,157 |
| | 354,641 |
| | 353,459 |
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| Total liabilities and shareholders' equity | | $ | 3,560,992 |
| | $ | 3,541,055 |
| | $ | 3,510,987 |
| | $ | 3,565,184 |
| | $ | 3,475,732 |
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| Net shares outstanding | | 15,509 |
| | 15,496 |
| | 15,459 |
| | 15,443 |
| | 15,432 |
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| BAR HARBOR BANKSHARES |
| CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED |
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| LOAN ANALYSIS |
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| | | | | | | | | | | | | Annualized Growth % |
| (in thousands) | | Sep 30, 2018 | | Jun 30, 2018 | | Mar 31, 2018 | | Dec 31, 2017 | | Sep 30, 2017 | | Quarter End | | Year to Date |
| 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 |
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| Total commercial loans | | 1,144,002 |
| | 1,152,226 |
| | 1,126,532 |
| | 1,120,453 |
| | 1,064,331 |
| | (2.9 | ) | | 2.8 |
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| 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 | )% |
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| DEPOSIT ANALYSIS |
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| | | | | | | | | | | | | Annualized Growth % |
| (in thousands) | | Sep 30,
2018 | | Jun 30,
2018 | | Mar 31,
2018 | | Dec 31,
2017 | | Sep 30,
2017 | | Quarter End | | Year to Date |
| 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 |
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| 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 |
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| Total deposits | | $ | 2,390,349 |
| | $ | 2,374,721 |
| | $ | 2,341,400 |
| | $ | 2,352,085 |
| | $ | 2,275,109 |
| | 2.6 | % | | 2.2 | % |
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| BAR HARBOR BANKSHARES |
| CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
| | | | | | | | | |
| | | Three Months Ended September 30, | | Nine Months Ended September 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. |
