Bar Harbor Bankshares (NYSE
American: BHB) reported first quarter 2018 GAAP earnings of
$7.8 million, or 50 cents per share, compared with $4.2 million, or
29 cents per share in the same quarter of 2017. Core earnings in
the first quarter 2018 totaled $8.1 million, or 52 cents per share,
up 21% from $6.2 million, or 43 cents in the first quarter of
2017.
FIRST QUARTER FINANCIAL HIGHLIGHTS (comparisons are to
the first quarter 2017 unless otherwise noted):
- $29.4 million vs. $27.3 million in
total revenue (non-GAAP measure)
- 8% increase in net interest income
- 11% annualized commercial and
industrial loan growth
- 0.93% core return on assets (non-GAAP
measure)
- 9.31% core return on equity (non-GAAP
measure)
President and Chief Executive Officer, Curtis C. Simard stated,
“Our teams hit the ground running and have delivered a strong start
to this year. We achieved both our revenue and net income
expectations for the first quarter of 2018. Total revenue increased
8% and core earnings per share is up 21% year-over-year as we
expanded our market presence throughout Northern New England. This
is just more proof that we continue to deliver on the commitments
made over a year ago as we focus on profitable growth through the
use of various revenue streams coupled with disciplined expense
management. As we have communicated before, we will continue to
hold firm our model of balancing growth and earnings.”
Mr. Simard went on to say, “We have much to be proud about the
way our teams performed in the first quarter. While some loan
closings were delayed during the first quarter, our loan pipelines
remain robust. We opened over 3,200 new deposit accounts while our
branch colleagues came together under new leadership, and our
wealth management team continued to drive significant fee income.
The first quarter also sparked a launch for many growth and
strategic initiatives throughout the Company. We rolled out an
expanded Treasury Management Services platform in January and we
hired a new EVP of Human Resources, John Land, who will focus on
the employee experience including total value compensation. We
remain committed to our customers, employees and shareholders as we
focus on being one of the most profitable banks in New
England.”
Mr. Simard further stated, “We have built a strong retail and
commercial bank franchise that understands the needs of our
customers and is committed to providing solutions while preserving
the culture in our communities. Our brand identity is prevalent in
the markets we serve, and while the acquisition allowed for some
name continuity, we’ve listened to our customers and their
preference to consolidate the brand under one name. In recognition
of the value proposition we represent, all of our Retail and
Commercial business lines will begin operating under the Bar Harbor
Bank & Trust name. The teams have expressed great enthusiasm
about this milestone, which is expected to strengthen our brand and
allow us to both streamline processes and deliver products more
efficiently. We expect that the brand consolidation will be
completed by the end of the second quarter 2018.”
Mr. Simard also stated “Similar to the brand consolidation, our
teams in wealth management are working to migrate Bar Harbor Trust
Services and Charter Trust onto a common operating platform. Fee
income remains a focus of the Company and wealth management is a
strong source of these revenue streams. The combined platform is
expected to improve operational efficiencies and deepen customer
relationships, allowing for further market penetration and
cross-sell opportunities which are central themes to our sales
objectives.”
Mr. Simard concluded, “2018 is about continuing to improve
performance metrics while fine-tuning and consolidating the way we
operate and conduct our business to realize our greatest potential
as a true community bank.”
RESULTS OF OPERATIONSGAAP earnings increased to $7.8
million, or 50 cents per share, in the first quarter of 2018 from
$4.2 million, or 29 cents per share, in the same period of 2017,
primarily as a result of the merger expenses reflected in the
previous year. Core earnings were up 21% to $8.1 million, or 52
cents per share, in the first quarter of 2018 compared to $6.2
million, or 43 cents per share, in the first quarter of 2017. The
increase in core earnings was driven by greater total revenue
resulting from both the growth in earning assets and in yields.
Interest income from earning assets increased to a record high for
a quarter of $30.8 million with a yield of 3.92%. The decline in
yield related to commercial and industrial loans was due to a lower
tax-equivalency adjustment on tax exempt loans given the new 2018
Federal tax rate. Net interest income in 2018 increased 8% compared
to 2017 despite higher funding costs. Net interest margin for the
first quarter was 2.97%, which includes a 5 basis point reduction
due to lower tax-equivalency adjustments. We continue to address
margin compression and balance sheet rate sensitivity through
variable rate loan originations and shifts in funding mix and term.
This strategy results in short-term incremental costs, but secures
the Company’s longer-term net interest margin goals and funding
requirements. Tax savings related to the lower Federal rate in 2018
is solely reflected within income tax expense and represents an
effective tax rate for the first quarter of 19.9%. The effective
tax rate for the same quarter in 2017 benefited from the
acquisition and conversion related costs.
Non-interest income was $6.2 million in the first quarter of
2018, as compared to $5.9 million in the same quarter of 2017. The
increase is principally due to higher trust management and customer
service fees, both related to a higher volume of customer
transactions.
Non-interest expense decreased to $18.9 million in the first
quarter 2018 compared to $20.8 million in the first quarter of
2017. The decrease is principally due to lower acquisition,
conversion and other expenses, which totaled $335 thousand in 2018
compared to $3.1 million in 2017. Non-interest expenses are
slightly elevated in the first quarter compared to the fourth
quarter and in line with expectations given higher employer taxes
and the additional increases in salary and employee benefits
related to employment taxes. The efficiency ratio improved to 60%
for the quarter compared to 61% in the first quarter of 2017. That
improvement includes realized cost savings from the acquisition
partially offset with higher salary and benefit expense due to
seasonally higher employer payroll taxes and recent strategic new
hires. We continue to focus on profitable growth with disciplined
expense management which is evidenced in our profitability metrics
for the quarter.
FINANCIAL CONDITIONTotal assets declined $54.2 million
during the first quarter in 2018 to $3.5 billion primarily as a
result of decreases in loan balances and excess cash. Total loans
decreased $21.2 million in the first quarter as certain significant
loan closings were delayed into the second quarter. Excess cash was
strategically used during the latter part of the first quarter to
pay down higher cost borrowings. Non-accruing loans increased by
$6.0 million during the quarter mostly due to the deterioration of
one specific residential relationship, which is expected to be
settled at the full carrying value of the obligation. Overall,
asset quality metrics remain strong with an allowance for credit
losses to total loans ratio of 0.51%. Total securities increased
$1.3 million during the quarter, which reflects purchases of
shorter duration investments offset by $10.7 million in fair value
adjustments. Excluding the impact of securities fair value
adjustments, strong earnings grew tangible book value per share
(non-GAAP) to $16.33 compared from $16.13 at the end of 2017.
BACKGROUNDBar Harbor Bankshares (NYSE American: BHB) is
the parent company of its wholly-owned subsidiary, Bar Harbor Bank
& Trust. Founded in 1887, Bar Harbor Bank & Trust is a true
community bank serving the financial needs of its clients for over
125 years. Bar Harbor provides full-service community banking with
office locations in all three Northern New England states of Maine,
New Hampshire and Vermont. For more information, visit www.bhbt.com.
FORWARD LOOKING STATEMENTSThis document contains
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. There are several factors that could
cause actual results to differ significantly from expectations
described in the forward-looking statements. For a discussion of
such factors, please see the Company’s most recent reports on Forms
10-K and 10-Q filed with the Securities and Exchange Commission and
available on the SEC’s website at www.sec.gov. The Company does not
undertake any obligation to update forward-looking statements.
NON-GAAP FINANCIAL MEASURESThis document contains certain
non-GAAP financial measures in addition to results presented in
accordance with Generally Accepted Accounting Principles (“GAAP”).
These non-GAAP measures provide supplemental perspectives on
operating results, performance trends, and financial condition.
They are not a substitute for GAAP measures; they should be read
and used in conjunction with the Company’s GAAP financial
information. A reconciliation of non-GAAP financial measures to
GAAP measures is included beginning on page J in the accompanying
financial tables. In all cases, it should be understood that
non-GAAP per share measures do not depict amounts that accrue
directly to the benefit of shareholders.
The Company utilizes the non-GAAP measure of core earnings in
evaluating operating trends, including components for core revenue
and expense. These measures exclude items which the Company does
not view as related to its normalized operations. These items
include securities gains/losses, acquisition costs, restructuring
costs, and systems conversion costs. Non-core adjustments are
presented net of an adjustment for income tax expense. This
adjustment is determined as the difference between the GAAP tax
rate and the effective tax rate applicable to core income. The
efficiency ratio, which the Company believes provides important
information about its operating efficiency, is adjusted for
non-core revenue and expense items and for tax preference items.
The Company also calculates measures related to tangible equity,
which adjust equity (and assets where applicable) to exclude
intangible assets due to the importance of these measures to the
investment community. Further detail regarding the computation of
the Company's non-GAAP measures is provided in the footnotes to the
reconciliation of non-GAAP financial measures to GAAP measures
included beginning on page J in the accompanying financial
tables.
TABLE
INDEX
CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED)
A
Selected Financial
Highlights
B
Footnotes to
Selected Financial Highlights
C
Balance
Sheets
D
Loan and Deposit
Analysis
E
Statements of
Income
F
Statements of Income
(Five Quarter Trend)
G
Average Yields and
Costs
H
Average
Balances
I
Asset Quality
Analysis
J
Reconciliation of
Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary
Data
BAR HARBOR BANKSHARES SELECTED FINANCIAL
HIGHLIGHTS - UNAUDITED At or for the Quarters
Ended Mar 31, 2018 Dec
31,2017 Sep 30,2017
Jun 30,2017 Mar
31,2017 PER SHARE DATA Net earnings, diluted $
0.50 $ 0.43 $ 0.56 $ 0.42 $ 0.29 Core earnings, diluted(1) (2) 0.52
0.58 0.57 0.52 0.43 Total book value 22.78 22.96 22.90 22.53 22.17
Tangible book value(2) 15.78 15.94 15.84 15.44 15.07 Market price
at period end 27.72 27.01 31.36 30.82 33.08 Dividends 0.19 0.19
0.19 0.19 0.19
PERFORMANCE RATIOS(3) Return on assets
0.90 % 0.75 % 0.99 % 0.76 % 0.50 % Core return on assets(1) (2)
0.93 1.02 1.01 0.94 0.74 Return on equity 9.01 7.35 9.67 7.55 5.34
Core return on equity(1) (2) 9.31 9.97 9.90 9.32 7.88 Core return
on tangible equity(1) (2) 13.72 14.56 14.53 13.81 12.27 Net
interest margin, fully taxable equivalent (FTE)(2)(4) 2.97 3.04
3.06 3.16 3.11 Net interest margin (FTE), excluding purchased loan
accretion(2)(4) 2.85 2.93 2.93 3.02 3.01 Efficiency ratio(2) 60.44
53.02 53.53 54.57 61.21
GROWTH (Year-to-date,
annualized)(2) Total commercial loans 2.2 % 23.8 % 20.5 % 7.2 %
20.0 % Total loans (3.4 ) 13.1 12.2 7.0 13.3 Total deposits (1.8 )
14.4 10.6 2.3 (10.2 )
FINANCIAL DATA (In millions)
Total assets $ 3,511 $ 3,565 $ 3,476 $ 3,503 $ 3,427 Total earning
assets 3,221 3,241 3,184 3,139 3,139 Total investments 757 755 756
763 767 Total loans 2,464 2,486 2,429 2,377 2,372 Allowance for
loan losses 13 12 12 11 11 Total goodwill and intangible assets 108
108 109 109 109 Total deposits 2,341 2,352 2,275 2,213 2,174 Total
shareholders' equity 352 355 353 347 341 Net income 8 7 9 7 4 Core
income(2) 8 9 9 8 6
ASSET QUALITY AND CONDITION
RATIOS Net charge-offs (current quarter annualized)/average
loans 0.07 % 0.04 % 0.01 % 0.03 % 0.06 % Allowance for loan
losses/total loans 0.51 0.50 0.49 0.48 0.46 Loans/deposits 105 106
107 107 109 Shareholders' equity to total assets 10.03 9.95 10.17
9.91 9.95 Tangible shareholders' equity to tangible assets
7.17 7.12 7.26
7.01 6.99
_____________________________________
(1) Core measurements are non-GAAP financial measures that are
adjusted to exclude net non-operating charges primarily related to
acquisitions, and gain on sale of securities. Refer to the
Reconciliation of Non-GAAP Financial Measures in table J for
additional information.(2) Non-GAAP financial measure.(3) All
performance ratios are annualized and are based on average balance
sheet amounts, where applicable.(4) Fully taxable equivalent
considers the impact of tax-advantaged investment securities and
loans.
BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS -
UNAUDITED
(in thousands) Mar
31,2018 Dec 31,2017 Sep
30,2017 Jun 30,2017 Mar
31,2017 Assets Cash and due from banks $ 35,088 $
34,262 $ 31,223 $ 28,112 $ 29,245 Interest-bearing deposits with
the Federal Reserve Bank 12,725 56,423 17,501
90,881 12,781 Total cash and cash equivalents 47,813
90,685 48,724 118,993 42,026 Securities available for sale, at fair
value 718,559 717,242 718,459 718,364 724,224 Federal Home Loan
Bank stock 38,105 38,105 37,107 44,168
42,404 Total securities 756,664 755,347 755,566 762,532
766,628 Commercial real estate 824,721 826,746 793,572 738,584
779,635 Commercial and industrial 387,205 379,423 357,072 350,002
309,995 Residential real estate 1,132,977 1,155,682 1,152,628
1,160,832 1,155,436 Consumer 119,516 123,762 125,590
127,229 127,370 Total loans 2,464,419
2,485,613 2,428,862 2,376,647 2,372,436 Less: Allowance for loan
losses (12,679 ) (12,325 ) (11,950 ) (11,442 ) (10,884 ) Net loans
2,451,740 2,473,288 2,416,912 2,365,205 2,361,552 Premises
and equipment, net 48,464 47,708 48,309 48,590 45,581 Other real
estate owned 216 122 122 122 363 Goodwill 100,085 100,085 100,255
100,255 99,901 Other intangible assets 8,152 8,383 8,811 9,047
9,282 Cash surrender value of bank-owned life insurance 58,433
57,997 57,613 57,233 56,627 Deferred tax asset, net 9,627 7,180
13,052 13,211 14,158 Other assets 29,793 24,389
26,368 28,223 31,365 Total assets $ 3,510,987
$ 3,565,184 $ 3,475,732 $ 3,503,411 $
3,427,483
Liabilities and shareholders' equity
Demand and other non-interest bearing deposits $ 342,192 $ 349,055
$ 357,398 $ 332,339 $ 349,896 NOW deposits 448,992 466,610 442,085
451,171 242,876 Savings deposits 361,591 364,799 373,118 360,306
511,091 Money market deposits 303,777 305,275 300,398 285,312
349,491 Time deposits 884,848 866,346 802,110
783,876 720,899 Total deposits 2,341,400 2,352,085
2,275,109 2,213,004 2,174,253 Senior borrowings 742,198
786,688 775,582 872,021 842,150 Subordinated borrowings 43,018
43,033 43,048 43,063 43,078
Total borrowings 785,216 829,721 818,630 915,084 885,228
Other liabilities 32,214 28,737 28,534 28,201
26,954 Total liabilities 3,158,830 3,210,543
3,122,273 3,156,289 3,086,435 Total common shareholders'
equity 352,157 354,641 353,459 347,122
341,048 Total liabilities and shareholders' equity $
3,510,987 $ 3,565,184 $ 3,475,732 $ 3,503,411
$ 3,427,483
Net shares outstanding
15,459 15,443
15,432 15,407
15,385
BAR HARBOR BANKSHARES CONSOLIDATED
LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN
ANALYSIS
Annualized Growth % (in
thousands) March 31,2018 December
31,2017 September 30,2017 June
30,2017 March 31,2017
March 31,2018
Commercial real estate $ 824,721 $ 826,746 $ 793,572 $ 738,584 $
779,635 (1.0 )% Commercial and industrial 301,811 293,707
270,759 269,960 236,526 11.0
Total commercial loans 1,126,532 1,120,453 1,064,331 1,008,544
1,016,161 2.2 Residential real estate 1,132,977 1,155,682 1,152,628
1,160,832 1,155,436 (7.9 ) Consumer 119,516 123,762 125,590 127,229
127,370 (13.7 ) Tax exempt and other 85,394 85,716
86,313 80,042 73,469 (1.5 ) Total loans
$ 2,464,419 $ 2,485,613
$ 2,428,862 $ 2,376,647
$ 2,372,436 (3.4 )%
DEPOSIT
ANALYSIS
Annualized Growth % (in
thousands) March 31,2018 December
31,2017 September 30,2017 June
30,2017 March 31,2017
March 31,2018
Demand $ 342,192 $ 349,055 $ 357,398 $ 332,339 $ 349,896 (7.9 )%
NOW 448,992 466,610 442,085 451,171 242,876 (15.1 ) Savings 361,591
364,799 373,118 360,306 511,091 (3.5 ) Money Market 303,777
305,275 300,398 285,312 349,491 (2.0 )
Total non-maturity deposits 1,456,552 1,485,739 1,472,999 1,429,128
1,453,354 (7.9 ) Total time deposits 884,848 866,346
802,110 783,876 720,899 8.5 Total
deposits $ 2,341,400 $ 2,352,085
$ 2,275,109 $ 2,213,004
$ 2,174,253 (1.8 )%
BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF
INCOME - UNAUDITED Three Months
Ended March 31, (in thousands, except per share data)
2018 2017 Interest and dividend income Loans $
25,126 $ 21,194 Securities and other 5,651 4,991 Total
interest and dividend income 30,777 26,185
Interest expense
Deposits 3,985 2,210 Borrowings 3,634 2,603 Total interest
expense 7,619 4,813
Net interest income 23,158
21,372 Provision for loan losses 795 795 Net interest income after
provision for loan losses 22,363 20,577
Non-interest
income Trust and investment management fee income 2,962 2,864
Insurance brokerage service income — 364 Customer service fees
2,224 1,773 Bank-owned life insurance income 446 399 Other income
606 546 Total non-interest income 6,238 5,946
Non-interest expense Salaries and employee benefits 10,989
10,321 Occupancy and equipment 3,073 2,666 Loss on sales of
premises and equipment, net — 95 Outside services 560 597
Professional services 433 440 Communication 180 368 Amortization of
intangible assets 207 180 Acquisition, conversion and other
expenses 335 3,112 Other expenses 3,075 3,052 Total
non-interest expense 18,852 20,831 Income before
income taxes 9,749 5,692 Income tax expense 1,937 1,481
Net income $ 7,812 $
4,211
Earnings per share: Basic $ 0.51 $ 0.29 Diluted
$ 0.50 $ 0.29
Weighted average shares outstanding:
Basic 15,448 14,471 Diluted 15,553
14,591
BAR HARBOR BANKSHARES CONSOLIDATED
STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
(in thousands, except per share data) Mar 31,
2018 Dec 31,2017 Sep 30,2017
Jun 30,2017 Mar 31,2017 Interest and
dividend income Loans $ 25,126 $ 24,895 $ 24,661 $ 24,226 $
21,194 Securities and other 5,651 5,261 5,402
5,439 4,991 Total interest and dividend income 30,777 30,156
30,063 29,665 26,185
Interest expense Deposits 3,985 3,381
3,177 2,539 2,210 Borrowings 3,634 3,279 3,408
3,317 2,603 Total interest expense 7,619 6,660
6,585 5,856 4,813
Net interest income 23,158
23,496 23,478 23,809 21,372 Provision for loan losses 795
597 660 736 795 Net interest income after
provision for loan losses 22,363 22,899 22,818
23,073 20,577
Non-interest income Trust and
investment management fee income 2,962 3,042 3,040 3,324 2,864
Insurance brokerage service income — 77 329 327 364 Customer
service fees 2,224 2,495 2,638 1,991 1,773 Gain on sales of
securities, net — — 19 — — Bank-owned life insurance income 446 374
380 386 399 Other income 606 530 554 530
546 Total non-interest income 6,238 6,518
6,960 6,558 5,946
Non-interest expense
Salaries and employee benefits 10,989 9,524 9,617 10,127 10,321
Occupancy and equipment 3,073 3,060 2,894 3,013 2,666 Loss on sales
of premises and equipment,net — — (1 ) — 95 Outside services 560
780 907 716 597 Professional services 433 298 428 489 440
Communication 180 249 382 290 368 Amortization of intangible assets
207 209 212 211 180 Acquisition, conversion, and other expenses 335
(2,615 ) 346 2,459 3,112 Other expenses 3,075 2,758
2,801 2,741 3,052 Total non-interest expense 18,852
14,263 17,586 20,046 20,831
Income before income taxes 9,749 15,154 12,192 9,585 5,692 Income
tax expense 1,937 8,545 3,575 3,029
1,481
Net income $ 7,812
$ 6,609 $ 8,617 $ 6,556
$ 4,211
Earnings per share:
Basic $ 0.51 $ 0.43 $ 0.56 $ 0.43 $ 0.29 Diluted $ 0.50 $ 0.43 $
0.56 $ 0.42 $ 0.29
Weighted average shares
outstanding: Basic 15,448 15,437 15,420 15,393 14,471 Diluted
15,553 15,537
15,511 15,506
14,591
BAR HARBOR BANKSHARES AVERAGE YIELDS AND
COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
Quarters Ended Mar 31, 2018 Dec 31,
2017 Sep 30, 2017 Jun 30, 2017 Mar 31,
2017 Earning assets Commercial real estate 4.41 % 4.30 %
4.28 % 4.24 % 4.24 % Commercial and industrial 4.41 4.77 4.84 4.77
4.73 Residential 3.87 3.78 3.79 3.83 3.74 Consumer 4.47 4.17
4.34 4.71 4.16 Total loans 4.16 4.12
4.13 4.14 4.00 Securities and other 3.16 3.06 3.13
3.19 3.01 Total earning assets 3.92 % 3.87 %
3.89 % 3.91 % 3.76 %
Funding liabilities NOW 0.34 %
0.31 % 0.32 % 0.25 % 0.14 % Savings 0.18 0.19 0.18 0.13 0.14 Money
market 0.68 0.58 0.52 0.45 0.40 Time deposits 1.39 1.19
1.13 1.01 0.98 Total interest bearing
deposits 0.82 0.70 0.66 0.56 0.52 Borrowings 1.80 1.62
1.66 1.41 1.25 Total interest-bearing
liabilities 1.11 % 0.97 % 0.96 % 0.85 % 0.76 %
Net interest spread 2.81 2.90 2.93 3.06
3.00 Net interest margin 2.97
3.04 3.06 3.16
3.11
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
Quarters Ended
(in thousands) Mar 31, 2018 Dec 31, 2017
Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Assets Commercial real estate $ 819,531 $ 783,730 $ 764,770
$ 767,669 $ 762,676 Commercial and industrial 380,029 362,881
353,194 322,147 293,903 Residential 1,147,010 1,161,865 1,158,069
1,159,714 1,161,911 Consumer 121,467 125,109 126,138
127,611 127,850 Total loans (1) 2,468,037
2,433,585 2,402,171 2,377,141 2,346,340 Securities and other (2)
765,328 753,282 754,450 761,546 746,653
Total earning assets 3,233,365 3,186,867 3,156,621 3,138,687
3,092,993 Cash and due from banks 53,151 65,145 49,169 87,332
25,556 Allowance for loan losses (12,589 ) (12,202 ) (11,786 )
(11,292 ) (10,584 ) Goodwill and other intangible assets 108,349
108,769 109,147 109,108 109,261 Other assets 129,525 144,359
149,394 110,129 122,396 Total assets $
3,511,801 $ 3,492,938 $ 3,452,545 $ 3,433,964
$ 3,339,622
Liabilities and shareholders'
equity NOW $ 447,026 $ 449,669 $ 447,459 $ 440,452 $ 456,967
Savings 362,508 368,714 368,443 362,899 340,555 Money market
305,105 308,071 292,110 275,687 334,225 Time deposits 857,796
799,348 793,489 732,188 666,267
Total interest bearing deposits 1,972,435 1,925,802 1,901,501
1,811,226 1,798,014 Borrowings 819,576 803,469
812,938 941,789 856,328 Total interest-bearing
liabilities 2,792,011 2,729,271 2,714,439 2,753,015 2,654,342
Non-interest-bearing demand deposits 339,349 376,066 354,470
320,503 350,497 Other liabilities 29,000 30,971
30,079 13,145 19,334 Total liabilities
3,160,360 3,136,308 3,098,988 3,086,663 3,024,173 Total
shareholders' equity 351,441 356,630 353,557 347,301 315,449
Total liabilities and
shareholders' equity $ 3,511,801
$ 3,492,938 $ 3,452,545 $
3,433,964 $ 3,339,622
_____________________________________
(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) Mar 31, 2018 Dec 31, 2017 Sep 30,
2017 Jun 30, 2017 Mar 31, 2017 NON-PERFORMING
ASSETS Non-accruing loans: Commercial real estate $ 8,422 $
8,343 $ 2,467 $ 2,090 $ 2,354 Commercial installment 2,304 1,209
236 270 451 Residential real estate 8,548 4,266 3,619 2,783 3,066
Consumer installment 1,065 500 496 160
160 Total non-accruing loans 20,339 14,318 6,818 5,303 6,031
Other real estate owned 216 122 122 122
363 Total non-performing assets $ 20,555 $ 14,440
$ 6,940 $ 5,425 $ 6,394 Total
non-accruing loans/total loans 0.83 % 0.58 % 0.28 % 0.22 % 0.25 %
Total non-performing assets/total assets 0.59 0.41 0.20 0.15 0.19
PROVISION AND ALLOWANCE FOR LOAN LOSSES Balance at
beginning of period $ 12,325 $ 11,950 $ 11,442 $ 10,884 $ 10,419
Charged-off loans (461 ) (277 ) (297 ) (213 ) (344 ) Recoveries on
charged-off loans 20 55 145 35 14
Net loans charged-off (441 ) (222 ) (152 ) (178 ) (330 )
Provision for loan losses 795 597 660 736
795 Balance at end of period $ 12,679 $ 12,325
$ 11,950 $ 11,442 $ 10,884
Allowance for loan losses/total loans 0.51 % 0.50 % 0.49 % 0.48 %
0.46 % Allowance for loan losses/non-accruing loans 62 86 175 216
180
NET LOAN CHARGE-OFFS Commercial real estate $ (91
) $ (92 ) $ (16 ) $ (6 ) $ (103 ) Commercial installment (140 ) 1 6
(138 ) (17 ) Residential real estate 1 — (79 ) (13 ) (198 )
Consumer installment (211 ) (131 ) (63 ) (21 ) (12 ) Total, net $
(441 ) $ (222 ) $ (152 ) $ (178 ) $ (330 ) Net charge-offs
(QTD annualized)/average loans 0.07 % 0.04 % 0.01 % 0.03 % 0.06 %
Net charge-offs (YTD annualized)/average loans 0.07 0.04 0.04 0.04
0.06
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS
30-89 Days delinquent 0.24 % 0.37 % 0.35 % 0.55 % 0.33 % 90+ Days
delinquent and still accruing — 0.02 0.01 —
— Total accruing delinquent loans 0.24 0.39 0.36 0.55
0.33 Non-accruing loans 0.83 0.58 0.28 0.22
0.25 Total delinquent and non-accruing loans
1.07 % 0.97 % 0.64 %
0.77 % 0.58 %
BAR HARBOR
BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND
SUPPLEMENTARY DATA- UNAUDITED At
or for the Quarters Ended (in thousands)
Mar 31, 2018 Dec
31,2017 Sep 30,2017
Jun 30,2017 Mar
31,2017 Net income $ 7,812 $ 6,609 $ 8,617 $ 6,556 $
4,211 Adj: Security Gains — — (19 ) — — Adj: Loss on sale of fixed
assets, net — — (1 ) — 95 Adj: Acquisition, conversion and other
expenses 335 (2,615 ) 346 2,459 3,112 Adj: Income taxes (1) (81 )
982 (122 ) (924 ) (1,205 ) Adj: Tax reform charge
— 3,988 — — — Total core
income (2) (A) $ 8,066 $ 8,964 $ 8,821
$ 8,091 $ 6,213 Net-interest income (B)
$ 23,158 $ 23,496 $ 23,478 $ 23,809 $ 21,372 Plus: Non-interest
income 6,238 6,518 6,960
6,558 5,946 Total Revenue 29,396 30,014 30,438 30,367
27,318 Adj: Net security gains — —
(19 ) — — Total core revenue (2)
(C) $ 29,396 $ 30,014 $ 30,419 $ 30,367
$ 27,318 Total non-interest expense 18,852 14,263
17,586 20,046 20,831 Less: Loss on sale of fixed assets, net — — 1
— (95 ) Less: Acquisition, conversion and other expenses
(335 ) 2,615 (346 ) (2,459 ) (3,112 ) Core
non-interest expense (2) (D) $ 18,517 $ 16,878
$ 17,241 $ 17,587 $ 17,624
(in millions) Total average earning assets (E) $ 3,233 $
3,187 $ 3,157 $ 3,139 $ 3,093 Total average assets (F) 3,512 3,493
3,453 3,434 3,340 Total average shareholders' equity (G) 351 357
354 347 315 Total average tangible shareholders' equity (2) (3) (H)
243 248 244 238 206 Total tangible shareholders' equity, period-end
(2)(3) (I) 244 246 244 238 232 Total tangible assets, period-end
(2) (3) (J) 3,403 3,457 3,367 3,394 3,318
(in
thousands) Total common shares outstanding, period-end (K)
15,459 15,443 15,432 15,407 15,385 Average diluted shares
outstanding (L) 15,553 15,537 15,511 15,506 14,591 Core
earnings per share, diluted (A/L) $ 0.52 $ 0.58 $ 0.57 $ 0.52 $
0.43 Tangible book value per share, period-end (2) (I/K) 15.78
15.94 15.84 15.44 15.07 Securities adjustment, net of tax (M)
(8,526 ) (2,867 ) 320 2,193 768 Tangible book value per share,
excluding securities adjustment (I+M)/K 16.33 16.13 15.82 15.29
15.02 Total tangible shareholders' equity/total tangible assets(2)
(H/J) 7.17 7.12 7.26 7.01 6.99
Performance ratios
GAAP return on assets 0.90 % 0.75 % 0.99 % 0.76 % 0.50 % Core
return on assets (2) (A/F) 0.93 1.02 1.01 0.94 0.74 GAAP return on
equity 9.01 7.35 9.67 7.55 5.34 Core return on equity (2) (A/G)
9.31 9.97 9.90 9.32 7.88 Core return on tangible equity (2) (4)
(A/I) 13.72 14.56 14.53 13.81 12.27 Efficiency ratio (2)(5)
(D-O-Q)/(C+N) 60.44 53.02 53.53 54.57 61.21 Net interest margin
(B+P)/E 2.97 3.04 3.06 3.16 3.11
Supplementary data (in
thousands) Taxable equivalent adjustment for efficiency ratio
(N) $ 645 $ 1,122 $ 1,107 $ 1,185 $ 977 Franchise taxes included in
non-interest expense (O) 152 161 154 158 126 Tax equivalent
adjustment for net interest margin (P) 503 897 878 936 754
Intangible amortization (Q) 207
209 212 211
180
_____________________________________
(1) Assumes a marginal tax rate of 24.15% in 2018 and 37.57% 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) 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 24.15% in 2018 and 37.57% in 2017, by tangible
equity.(5) Efficiency ratio is computed by dividing total core
tangible non-interest expense by the sum of total net interest
income on a fully taxable equivalent basis and total core
non-interest income. The Company uses this non-GAAP measure to
provide important information about its operating efficiency.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180419006451/en/
Bar Harbor BanksharesJosephine Iannelli, 207-288-3314EVP, Chief
Financial Officer & TreasurerorKim Ilg, 603-865-6085VP,
Investor Relations
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