Bar Harbor Bankshares (the �Company�) (AMEX: BHB) the parent
company of Bar Harbor Bank & Trust (the �Bank�), today
announced net income of $2.0 million for the quarter ended June 30,
2008 or fully diluted earnings per share of $0.67, compared with
$1.8 million or fully diluted earnings per share of $0.59 for the
second quarter of 2007, representing increases of $186 thousand and
$0.08, or 10.1% and 13.6%, respectively. The increase in second
quarter 2008 earnings compared with the second quarter of 2007 was
principally attributed to a $936 thousand or 16.7% increase in net
interest income and a $274 thousand or 16.5% increase in
non-interest income, offset in part by a $681 thousand or 15.0%
increase in non-interest expenses. The Bank also recorded a
provision for loan losses of $297 thousand during the second
quarter, representing an increase of $264 thousand compared with
the same quarter last year. For the six months ended June 30, 2008,
net income amounted to $4.0 million, or fully diluted earnings per
share of $1.31, compared with $3.2 million or fully diluted
earnings per share of $1.03 for the same period in 2007,
representing increases of $763 thousand and $0.28, or 23.7% and
27.2%, respectively. The increased level of earnings was attributed
to a variety of factors including: a $1.9 million or 17.9% increase
in net interest income; a $1.4 million increase in net securities
gains (losses); and a $313 thousand gain representing the proceeds
from shares redeemed in connection with the Visa Inc. initial
public offering. Partially offsetting the foregoing revenue
increases was a $776 thousand increase in the provision for loan
losses and a $1.9 million increase in non-interest expenses, which
largely reflected the recording of a non-recurring $832 expense
reduction recorded in the first quarter of 2007 related to the
Company�s settlement of its limited postretirement benefit program.
In making the announcement, President and Chief Executive Officer,
Joseph M. Murphy commented, �Looking back at the first half of
2008, we are pleased with the Company�s earnings fundamentals and
strong financial condition, especially in light of the well
publicized problems being suffered by a large segment of the
banking and financial services industry. During the second quarter
we continued to enjoy an expanding net interest margin and a
significant increase in net interest income, reflecting an interest
rate environment favorable to the Bank�s balance sheet combined
with solid earning asset growth. Among the many issues being
experienced by the banking industry as a whole, is a serious
deterioration in asset quality involving loans and securities. We
are pleased to report that, as of quarter-end, our non-performing
loans remained at low levels, representing 0.44% of total loans and
up only $642 thousand compared with year-end 2007. Our securities
portfolio is comprised of high quality investments and does not
contain any securities collateralized by subprime pools of mortgage
backed securities.� In concluding, Mr. Murphy added, �Economic
conditions nationally and locally have softened and could
deteriorate further as this economic cycle continues to unfold.
Like most financial institutions, our future success will largely
depend upon maintaining our disciplined credit underwriting
standards and sustaining the strong asset quality levels we have
enjoyed for many years.� Financial Condition Assets: Total assets
ended the second quarter at $913 million, representing an increase
of $24 million, or 2.7%, compared with December 31, 2007. Loans:
Total loans ended the second quarter at $614 million, representing
an increase of $34 million, or 5.9%, compared with December 31,
2007. Business lending activity led the overall growth of the loan
portfolio. Credit Quality: The Bank�s non-performing loans ended
the second quarter at low levels, representing $2.7 million or
0.44% of total loans, compared with $2.1 million, or 0.36% at
December 31, 2007. For the six months ended June 30, 2008 net loan
charge-offs amounted to $318 thousand compared with $57 thousand
for the same period in 2007. For the three and six months ended
June 30, 2008, the Bank recorded provisions for loan losses of $297
thousand and $809 thousand, representing increases of $264 thousand
and $776 thousand compared with the same periods in 2007,
respectively. The increases in the provision were largely
attributed to growth in the loan portfolio, generally declining
real estate values in the markets served by the Bank, and an
increase in net loan charge-offs. Securities: Total securities
ended the second quarter at $252 million, representing a decline of
$13 million, or 4.7%, compared with December 31, 2007. The decline
in the securities portfolio was principally attributed to called
securities, pay-downs on mortgage-backed securities and sales of
securities, the cash flows from which were not fully reinvested,
largely due to prevailing market conditions and strong loan growth.
Deposits: Total deposits ended the second quarter at $576 million,
representing an increase of $37 million or 6.9% compared with
December 31, 2007. Historically, the banking business in the Bank�s
market area has been seasonal, with lower deposits in winter and
spring, and higher deposits in summer and autumn. Reflecting this
seasonality, as of June 30, 2008 demand deposits and NOW accounts
were showing declines of $11 million and $3 million compared with
December 31, 2007, or 17.3% and 4.0%, respectively. These declines
were more than offset with meaningful growth in retail time
deposits and savings and money market accounts, which posted
increases of $53 million and $4 million compared with December 31,
2007, or 37.6% and 2.2%, respectively. Borrowings: Total borrowings
ended the second quarter at $267 million, representing a decline of
$12 million, or 4.2%, compared with December 31, 2007. The decline
in borrowings principally reflected the strong retail deposit
growth achieved during the six months ended June 30, 2008, which
reduced the Bank�s dependence on borrowed funds. Capital:
Consistent with its long-term strategy of operating a sound and
profitable organization, the Bank continued to exceed regulatory
requirements for �well-capitalized� institutions. At June 30, 2008,
the Bank�s Tier I Leverage, Tier I Risk-based, and Total Risk-based
Capital ratios were 7.14%, 10.64% and 11.90%, respectively. Cash
Dividends: The Company paid cash dividends of 25 cents per share of
common stock in the second quarter of 2008, representing an
increase of 1.5 cents, or 6.4%, compared with the same quarter in
2007. The Company�s Board of Directors recently declared a third
quarter dividend of 26 cents per share, representing an increase of
2.0 cents, or 8.3%, compared with the dividend declared for the
same quarter in 2007. Results of Operations Net Interest Income:
For the three and six months ended June 30, 2008, net interest
income on a fully tax equivalent basis amounted to $6.7 million and
$13.3 million, representing increases of $979 thousand and $2.0
million, or 17.0% and 18.2%, compared with the same periods in
2007, respectively. The increases in net interest income were
principally attributed to average earning asset growth and an
improved net interest margin. The 325 basis point decline in
short-term interest rates over the past nine months favorably
impacted the Bank�s net interest margin, as the cost of interest
bearing liabilities declined faster and to a greater degree than
the decline in earning asset yields. Non-interest Income: For the
quarter ended June 30, 2008, total non-interest income amounted to
$1.9 million, representing an increase of $274 thousand, or 16.5%,
compared with the same quarter in 2007. The increase in
non-interest income was largely attributed to a $120 thousand
increase in net securities gains. Financial services fees and
credit and debit card fees also showed meaningful increases, up $97
thousand and $66 thousand, or 15.1% and 15.0%, respectively,
compared with the same quarter in 2007. For the six months ended
June 30, 2008, total non-interest income amounted to $4.0 million,
representing an increase of $1.9 million, or 95.5%, compared with
the same quarter in 2007. In the first half of 2007 the Bank
restructured a portion of its securities portfolio, recording net
securities losses of $902 thousand, whereas in the first half of
2008 the Bank recorded securities gains of $515. Also included in
non-interest income was a $313 gain recorded in the first quarter
of 2008 representing the proceeds from shares redeemed in
connection with the Visa, Inc. initial public offering. For the six
months ended June 30, 2008, credit and debit card fees and
financial services fees were up $132 thousand and $95 thousand, or
18.6% and 8.0%, respectively, compared with the same period last
year. Non-interest Expense: For the quarter ended June 30, 2008,
total non-interest expense amounted to $5.2 million representing an
increase of $681 thousand or 15.0%, compared with the same quarter
in 2007. The increase in non-interest expense was principally
attributed to higher levels of salaries and employee benefits, due
to a variety of factors enumerated below. For the six months ended
June 30, 2008, total non-interest expense amounted to $10.2
million, representing an increase of $1.9 million, or 22.4%,
compared with the same period in 2007. The increase in non-interest
expense was largely attributed to the settlement of the Company�s
limited postretirement program in the first quarter of 2007, which
reduced that reporting period�s non-interest expense by $832
thousand. The increase in non-interest expense was also attributed
to higher levels of salaries and employee benefits, which were up
$842 thousand or 18.7% compared with the first six months of 2007.
The increase in salaries and employee benefits was attributed to a
variety of factors including: strategic additions to staff; normal
increases in base salaries; higher levels of accrued incentive
compensation; certain employee severance payments; and a
non-recurring employee health insurance expense credit attained in
the second quarter of 2007 based on favorable claims experience.
Bar Harbor Bankshares is the parent company of its wholly owned
subsidiary, Bar Harbor Bank & Trust. Bar Harbor Bank &
Trust, founded in 1887, provides full service community banking
with twelve branch office locations serving down east and mid coast
Maine. This earnings release may contain certain forward-looking
statements with respect to the financial condition, results of
operations and business of Bar Harbor Bankshares (the �Company�)
for which the Company claims the protection of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995.
You can identify these forward-looking statements by the use of
words like �strategy,� �expects,� �plans,� �believes,� �will,�
�estimates,� �intends,� �projects,� �goals,� �targets,� and other
words of similar meaning. You can also identify them by the fact
that they do not relate strictly to historical or current facts.
Forward-looking statements include, but are not limited to, those
made in connection with estimates with respect to the future
results of operation, financial condition, and the business of the
Company which are subject to change based on the impact of various
factors that could cause actual results to differ materially from
those projected or suggested due to certain risks and
uncertainties. These risks and uncertainties include, but are not
limited to, changes in general economic conditions, interest rates,
deposit flows, loan demand, internal controls, legislation or
regulation and accounting principles, policies or guidelines, as
well as other economic, competitive, governmental, regulatory and
accounting and technological factors affecting the Company�s
operations. The Company assumes no obligation to update any
forward-looking statements as a result of new information or future
events or developments. Bar Harbor Bankshares Selected Financial
Information (dollars in thousands except per share data)
(unaudited) � � � � � � Period End 2nd Quarter Average Balance
Sheet Data 6/30/2008 12/31/2007 2008 2007 � Total assets $ 913,346
$ 889,472 $ 916,348 $ 812,228 Total securities 252,104 264,617
255,955 215,668 Total loans 613,635 579,711 610,176 549,980
Allowance for loan losses 5,234 4,743 5,078 4,545 Total deposits
576,378 539,116 576,208 499,215 Borrowings 267,286 278,853 268,870
245,826 Shareholders' equity 63,837 65,974 66,499 62,713 � Three
Months Ended Six Months Ended Results Of Operations 6/30/2008
6/30/2007 6/30/2008 6/30/2007 � Interest and dividend income $
13,165 $ 12,606 $ 26,595 $ 24,966 Interest expense 6,633 7,010
13,771 14,088 Net interest income 6,532 5,596 12,824 10,878
Provision for loan losses 297 33 809 33 Net interest income after
provision for loan losses 6,235 5,563 12,015 10,845 � Non-interest
income 1,932 1,658 3,981 2,036 Non-interest expense 5,234 4,553
10,222 8,350 Income before income taxes 2,933 2,668 5,774 4,531
Income taxes 904 825 1,793 1,313 Net income $ 2,029 $ 1,843 $ 3,981
$ 3,218 � Earnings per share: Basic $ 0.69 $ 0.61 $ 1.34 $ 1.06
Diluted $ 0.67 $ 0.59 $ 1.31 $ 1.03 � Cash dividends per share $
0.250 $ 0.210 $ 0.500 $ 0.445 � Return on Average Equity 12.27 %
11.79 % 11.96 % 10.42 % Return on Average Assets 0.89 % 0.91 % 0.88
% 0.79 %
Bar Harbor Bankshares (AMEX:BHB)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Bar Harbor Bankshares (AMEX:BHB)
Historical Stock Chart
Von Jul 2023 bis Jul 2024