Bar Harbor Bankshares (the “Company”) (NYSE Amex: BHB) the
parent company of Bar Harbor Bank & Trust (the “Bank”), today
announced net income available to common shareholders of $3.0
million for the third quarter of 2011, representing an increase of
$140 thousand, or 4.9%, compared with the third quarter of 2010.
The Company’s diluted earnings per share amounted to $0.77 for the
quarter, compared with $0.75 in the third quarter of 2010,
representing an increase of 2.7%.
The Company’s annualized return on average shareholders’ equity
amounted to 10.45% for the quarter, compared with 10.81% in the
third quarter of 2010. The Company’s annualized return on average
assets amounted to 1.04%, unchanged from the third quarter of
2010.
For the nine months ended September 30, 2011, the Company
reported earnings available to common shareholders of $8.7 million,
up $672 thousand, or 8.4% compared with the first nine months of
2010. Diluted earnings per share amounted to $2.23, up $0.14, or
6.7% compared with the first nine months of 2010. The Company’s
annualized return on average shareholders’ equity amounted to
10.60% for the nine months ended September 30, 2011, compared with
10.94% for the same period in 2010. The Company’s annualized return
on average assets amounted to 1.01%, compared with 1.07% for the
nine months ended September 30, 2010.
In making the announcement, the Company’s President and Chief
Executive Officer, Joseph M. Murphy commented, “As we enter the
last quarter of 2011, we are pleased to report record quarterly and
year-to-date earnings, despite the weak economy and sluggish loan
demand. Our third quarter performance was highlighted by a 9.5%
increase in net interest income over the same quarter last year,
and marked the third consecutive quarter where we enjoyed an
expansion of our net interest margin. We continue to focus on the
management of our operating expenses and are pleased to report
quarterly and year-to-date efficiency ratios of 52.9% and 53.8%
respectively, both of which represent improvements over the same
periods last year and are markedly better than industry norms.
While these results are most gratifying, the future prospects for
the financial sector and our Company continue to be overshadowed by
the final outcome of regulatory reform legislation known as the
Dodd-Frank Wall Street Reform and Consumer Protection Act, which
could negatively impact future revenues and expenses. We are
awaiting the expected new rules, regulations and related process
changes and will expand our compliance resources appropriately. It
is our belief that our strong risk management culture remains a
primary reason for our success.”
Mr. Murphy concluded his remarks by adding, “As we look ahead to
2012, we are facing an economic environment that can best be
described as challenging and fraught with uncertainties. While our
local economy has performed somewhat better than the national
economy, we still face the issues of unemployment, tax policy,
depressed real estate values, political uncertainty and lack of
consumer confidence. We are anticipating diminished loan demand
along with some pressure on our net interest margin, given current
monetary policy and further quantitative easing by the Federal
Reserve. We believe we are prepared for these challenges and will
continue to seek out opportunities to expand our business and
deliver the promise of successful community banking to our
customers and shareholders alike. In this regard, we believe we are
well positioned for most uncertainties or opportunities that may
lie ahead, given our strong balance sheet, regulatory capital
ratios and tangible common equity position.”
Balance Sheet
Assets: Total assets ended the third quarter at
$1.16 billion, up $38.1 million, or 3.4%, compared with December
31, 2010. Asset growth was driven by increases in the Bank’s loan
and securities portfolios.
Loans: Total loans ended the third quarter at $714.2
million, representing an increase of $13.5 million, or 1.9%,
compared with December 31, 2010. Consumer loans were up $19.5
million, which was principally attributed to the purchase of a
Maine-based, seasoned portfolio of prime consumer loans in the
first quarter of 2011. Reflecting diminished business loan demand
in the communities served by the Bank, commercial loans declined
$2.3 million, or 0.6% compared with December 31, 2010.
Credit Quality: Total non-performing loans ended the
third quarter at $12.5 million, down from $13.7 million at December
31, 2010. One commercial real estate development loan to a local,
non-profit housing authority in support of an affordable housing
project accounted for $3.2 million of total non-performing loans,
down from $5.2 million at December 31, 2010. During the third
quarter the Bank charged off $1.9 million of this loan, of which
$1.2 million had already been allocated for in the Bank’s allowance
for loan losses in prior reporting periods. The extent of this loan
loss was principally attributed to the local town’s reconsideration
of a bond issuance that ultimately failed to gain voter support,
combined with a depressed real estate market and declining real
estate values over the past few years. For the nine months ended
September 30, 2011, total net loan charge-offs amounted to $2.2
million, compared with $774 thousand for the same period in
2010.
For the three and nine months ended September 30, 2011, the Bank
recorded provisions for loan losses of $750 thousand and $1.9
million, compared with $450 thousand and $1.5 million for the same
periods in 2010. The foregoing provisions were largely attributed
the aforementioned non-performing loan to a local, non-profit
housing authority. At September 30, 2011, the allowance for loan
losses (the “allowance”) stood at $8.2 million, down from $8.5
million at December 31, 2010. The allowance expressed as a
percentage of total loans stood at 1.14% at quarter end, down from
1.21% at December 31, 2010.
Securities: Total securities ended the third quarter at
$388.4 million, up $30.5 million, or 8.5% compared with December
31, 2010. Securities purchased during the first nine months of 2011
principally consisted of mortgage-backed securities issued and
guaranteed by U.S. Government agencies and
sponsored-enterprises.
Deposits: Historically, the banking business in the
Bank’s market area has been seasonal, with lower deposits in the
winter and spring and higher deposits in summer and autumn. The
timing and extent of seasonal swings have varied from year to year,
particularly with respect to demand deposits and NOW accounts.
Total deposits ended the third quarter at $762.1 million, up
$53.8 million, or 7.6%, compared with December 31, 2010. Demand
deposits and NOW accounts combined were up $24.4 million or 17.1%,
while savings, money market and time deposits combined were up
$29.3 million, or 5.2%.
Capital: At September 30, 2011, the Company and the Bank
continued to exceed regulatory requirements for “well-capitalized”
financial institutions. Under the capital adequacy guidelines
administered by the Bank’s principal regulators, “well-capitalized”
institutions are those with Tier I leverage, Tier I Risk-based, and
Total Risk-based ratios of at least 5%, 6% and 10%, respectively.
At September 30, 2011, the Company’s Tier I Leverage, Tier I
Risk-based, and Total Risk-based capital ratios were 9.30%, 14.38%
and 16.16%, respectively.
In the first quarter of 2010, the Company repurchased of all of
its previously issued shares of Preferred Stock from the U.S.
Department of the Treasury (the “Treasury”). The Preferred Stock
was sold to the Treasury in 2009 as part of the Emergency Economic
Stabilization Act. As a result of the repurchase, the Company
accelerated the accretion of $496 thousand in preferred stock
discount, reducing net income available to common shareholders and
diluted earnings per share by $496 thousand and $0.13,
respectively. Total preferred stock dividends and accretion of
discount amounted to $653 thousand in the first nine months of
2010, compared with none in 2011.
At September 30, 2011, the Company’s tangible common equity
ratio stood at 9.89%, up from 9.01% at December 31, 2010.
Shareholder Dividends: The Company paid regular cash
dividends of $0.275 per share of common stock in the third quarter
of 2011, up $0.005 from the prior quarter and representing an
increase of $0.015 or 5.8% compared with the third quarter of 2010.
As previously announced, the Company’s Board of Directors recently
declared a fourth quarter regular cash dividend of $0.28 per share
of common stock, representing an increase of $0.015 or 5.7%
compared with the fourth quarter of 2010. Based on the September
30, 2011 price of the Company’s common stock, the annualized
dividend yield amounted to 4.00%.
Results of Operations
Net Interest Income: For the three months ended September
30, 2011, net interest income on a tax-equivalent basis amounted to
$9.1 million, up $64 thousand on a linked-quarter basis and
representing an increase of $721 thousand, or 8.6% compared with
the third quarter of 2010. This increase was principally attributed
to average earning asset growth of $57.7 million, or 5.5%, combined
with an improved net interest margin. The net interest margin
amounted to 3.24% in the third quarter, an expansion of one basis
point on a linked-quarter basis, and nine basis points higher than
the third quarter of 2010. This improvement was principally
attributed to the cost of interest bearing liabilities, which
declined fifteen basis points more than the yield on average
earning assets compared with the third quarter of 2010.
For the nine months ended September 30, 2011, net interest
income on a tax-equivalent basis amounted to $26.8 million, up $1.7
million or 7.0% compared with the same period in 2010. This
increase was principally attributed to average earning asset growth
of $69.3 million or 6.7%, and to a lesser extent a one basis point
improvement in the tax-equivalent net-interest margin to 3.23%,
compared with the first nine months of 2010.
Non-interest Income: For the three months ended September
30, 2011, total non-interest income amounted to $2.1 million,
unchanged compared with the third quarter of 2010. Trust and other
financial services fees declined $54 thousand or 6.8%, but was
largely offset by a $43 thousand or 13.5% increase in credit and
debit card service charges and fees, and a $7 thousand or 1.9%
increase in service charges on deposit accounts. Total third
quarter securities gains net of other-than-temporary impairment
(“OTTI”) losses amounted to $421 thousand, compared with $407
thousand in the third quarter of 2010, representing an increase of
$14 thousand, or 3.4%.
For the nine months ended September 30, 2011, total non-interest
income amounted to $5.3 million, down $489 thousand or 8.5%,
compared with the first nine months of 2010. This decline was
principally attributed to a decline in securities gains net of OTTI
losses. Total securities gains net of OTTI losses amounted to $587
thousand for the nine months ended September 30, 2011, compared
with $1.2 million for the same period in 2010, representing a
decline of $637 thousand.
For the nine months ended September 30, 2011, trust and other
financial services fees amounted to $2.3 million, up $125 thousand
or 5.9% compared with the same period in 2010. Reflecting
additional new business, at September 30, 2011 assets under
management stood at $332.5 million, representing an increase of
$21.4 million or 7.1% compared with September 30, 2010.
For the nine months ended September 30, 2011, credit and debit
card service charges and fees amounted to $940 thousand, up $96
thousand or 11.4% compared with the first nine months of 2010. This
increase was principally attributed to continued growth of the
Bank’s retail deposit base, higher levels of merchant credit card
processing volumes, and continued success with a program that
offers rewards for certain debit card transactions.
Non-interest Expense: For the three months ended
September 30, 2011, total non-interest expense amounted to $5.7
million, up $166 thousand, or 3.0%, compared with the third quarter
of 2010. The increase in non-interest expense was principally
attributed to a $266 thousand or 8.9% increase in salaries and
employee benefits, largely reflecting $128 thousand in health
insurance credits recorded in the third quarter of 2010 based on
favorable claims experience. The foregoing increase was partially
offset by expense declines in a variety of expense categories.
For the nine months ended September 30, 2011, total non-interest
expense amounted to $17.0 million, up $866 thousand, or 5.4%
compared with the same period in 2010. The increase in non-interest
expense was attributed to a variety of expense categories including
higher levels of loan collection and other real estate owned
expenses as well as higher marketing and charitable contribution
expenses. Occupancy, furniture and equipment expenses were up a
combined $220 thousand, which were largely attributed to higher
levels of utilities expense, equipment and software depreciation,
and maintenance contract expenses related to a variety of
technology upgrades and new technology systems and applications.
Salaries and employee benefit expenses were up $471 thousand or
5.3%, which was principally attributed to normal increases in base
salaries, increases in employee health insurance premiums, as well
as changes in staffing levels and mix.
About Bar Harbor Bankshares
Bar Harbor Bankshares, a 2011 Best Places to Work in Maine
Company, 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 downeast and midcoast Maine.
This earnings release contains 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,
as amended. You can identify these forward-looking statements by
the use of words like “strategy,” “anticipates” “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. For more
information about these risks and uncertainties and other factors,
please see the Company’s Annual Report on Form 10-K, as updated by
the Company’s Quarterly Reports on Form 10-Q and other filings on
file with the SEC. All of these factors should be carefully
reviewed, and readers should not place undue reliance on these
forward-looking statements. 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 3rd Quarter Average
Balance Sheet Data 9/30/2011 12/31/2010
2011 2010 Total assets $ 1,156,032 $
1,117,933 $ 1,152,399 $ 1,093,371 Total securities 388,415 357,882
368,579 349,992 Total loans 714,218 700,670 723,219 681,646
Allowance for loan losses 8,153 8,500 9,698 8,611 Total deposits
762,094 708,328 752,996 697,753 Total Borrowings 270,962 300,014
279,903 284,968 Shareholders' equity 117,173 103,608 114,298
105,362
Three Months Ended Nine Months Ended
Results Of Operations 9/30/2011 9/30/2010
9/30/2011 9/30/2010 Interest and dividend
income $ 12,720 $ 12,879 $ 38,314 $ 38,438 Interest expense 4,016
4,933 12,652 14,639 Net interest income 8,704 7,946 25,662 23,799
Provision for loan losses 750 450 1,850 1,500
Net interest income
after provision for loan losses
7,954 7,496 23,812 22,299 Non-interest income 2,064 2,065 5,281
5,770 Non-interest expense 5,684 5,518
16,981 16,115 Income before income
taxes 4,334 4,043 12,112 11,954 Income taxes 1,324
1,173 3,460 3,321
Net income $ 3,010 $ 2,870 $ 8,652 $ 8,633
Preferred stock dividends and
accretion of discount
--- --- --- 653
Net income available to common
shareholders
$ 3,010 $ 2,870 $ 8,652 $ 7,980
Share and Per Common Share Data Period-end shares
outstanding 3,889,184 3,804,681 3,889,184 3,804,681 Basic average
shares outstanding 3,876,647 3,783,036 3,853,030 3,771,903 Diluted
average shares outstanding 3,889,257 3,829,349 3,874,690 3,821,628
Basic earnings per share $ 0.78 $ 0.76 $ 2.25 $ 2.12 Diluted
earnings per share $ 0.77 $ 0.75 $ 2.23 $ 2.09 Cash
dividends $ 0.275 $ 0.260 $ 0.815 $ 0.780 Book value $ 30.13 $
27.97 $ 30.13 $ 27.97 Tangible book value $ 29.32 $ 27.14 $ 29.32 $
27.14
Selected Financial Ratios Return on
Average Assets 1.04 % 1.04 % 1.01 % 1.07 % Return on Average Equity
10.45 % 10.81 % 10.60 % 10.94 % Tax-equivalent Net Interest Margin
3.24 % 3.15 % 3.23 % 3.22 % Efficiency Ratio (1) 52.9 % 54.9 % 53.8
% 54.3 %
At or for theNine Months
Ended
At or for theYear Ended
September 30, December 31,
Asset Quality
2011 2010 2010 Net charge-offs
to average loans, annualized 0.41 % 0.15 % 0.24 % Allowance for
loan losses to total loans 1.14 % 1.25 % 1.21 % Allowance for loan
losses to non-performing loans 65 % 96 % 62 % Non-performing loans
to total loans 1.75 % 1.31 % 1.95 % Non-performing assets to total
assets 1.34 % 0.82 % 1.28 %
Capital Ratios
Tier 1 leverage capital 9.30 % 9.06 % 9.01 % Tier 1 risk-based
capital 14.38 % 13.61 % 13.57 % Total risk-based capital 16.16 %
15.48 % 15.41 % Tangible equity to total assets 9.86 % 9.36 % 8.99
% Tangible common equity (2) 9.89 % 9.38 % 9.01 %
(1) Computed by dividing non-interest expense by the sum of tax
equivalent net interest income and non-interest income other than
net securities gains and OTTI.
(2) Computed by dividing the total common shareholders' equity,
less goodwill and other intangible assets, by total assets, less
goodwill and other intangible assets.
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