BAR HARBOR, Maine–(BUSINESS WIRE)–Bar Harbor Bankshares (NYSE American: BHB or the “Company”) reported second quarter 2019 net income of $6.1 million, or $0.39 diluted earnings per share. Net income in the second quarter of 2018 totaled $8.5 million or $0.55 diluted earnings per share. Core earnings (non-GAAP measure) in the second quarter 2019 totaled $6.3 million or $0.41 diluted earnings per share and $8.7 million or $0.56 diluted earnings per share in the same period of 2018.
SECOND QUARTER FINANCIAL HIGHLIGHTS
- 8% annualized growth in total loans, led by 24% in commercial loans
- 14% annualized growth in demand deposits
- 5% growth in non-interest income, compared to second quarter 2018
- 0.62% non-accruing loans to total loans
- 10% annualized growth in book value per share
President and Chief Executive Officer, Curtis C. Simard stated, “Our financial performance in the second quarter was centered on growth in loans, deposits and non-interest income. We grew non-interest bearing demand deposits at a strong double-digit rate as the retail delivery team continues to focus on lasting customer relationships and lower cost non-maturity deposits. Loan growth was led by a surge in the commercial loan pipeline across all regions and specifically in the Portland area as our Loan Production Office is fully-up and running. We are concentrating on more tightly structured opportunities with proven borrowers to ensure that we hold true to our risk management discipline at all points of the economic cycle and regardless of competitive fervor.”
Mr. Simard further stated, “Last week we announced our branch acquisition in central Maine, which will be immediately accretive to earnings and reduce our loan to deposit ratio allowing for future growth through core funding. As we look forward, we are focused on revenue growth through relationship profitability as the Company continues to grow into the infrastructure that has now been put into place. That said, we will be executing on expense efficiencies in the third quarter, which will include relationship and product profitability, organizational opportunities and review of our branch network. This review is a function of our commitment to a balance between growth and earnings as the Company delivers on our long-term goals.”
Mr. Simard concluded, “The path to meeting our objectives includes an emphasis on fee based businesses. Our Wealth Management teams, which include Bar Harbor Trust Services, Charter Trust, and Bar Harbor Financial Services, are critical to this goal and will be further enhanced by Wealth Management business that is included with our recently announced branch acquisition. We are pleased to have hired Jason Edgar as the President of Wealth Management who will lead the teams as one collective business. Jason has strong roots in New England and has been a proven leader in the Wealth Management space for over 20 years. He will be instrumental in further enhancing revenue growth as we explore existing and future prospects, and strive to achieve full potential within this business.”
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of $0.22 per share to shareholders of record at the close of business on August 13, 2019, payable on September 13, 2019. This dividend equates to a 3.3% annualized yield based on the $26.59 closing price of the Company’s common stock at the end of the second quarter of 2019.
FINANCIAL CONDITION
Total assets increased in the second quarter by $58.4 million, or 6% annualized, to $3.7 billion. Loan balances in the second quarter 2019 were up $51.3 million from the first quarter or 8% annualized. Loan growth was led by commercial real estate and commercial and industrial loans, which grew during the second quarter at annualized rates of 29% and 9%, respectively. Our loan to deposit ratio increased to 104% in the second quarter 2019 from 102% in the first quarter 2019 given the robust loan growth.
The second quarter 2019 allowance for loan losses to total loans ratio remains strong at 0.57% with a coverage ratio to non-accruing loans at 91%, up from 84% as of the first quarter. Non-accruing loans decreased $644 thousand in the second quarter 2019 due to favorable settlements of several relationships approximating the carrying values of the loans. The ratio of non-accruing loans to total loans decreased to 0.62% from 0.66% at the end of the first quarter 2019.
The Company’s book value per share was $25.13 at the end of the second quarter 2019 compared to $24.54 the end of the first quarter 2019, representing a 10% annualized growth rate. Tangible book value per share (non-GAAP measure) was $18.23 at the end of the second quarter 2019 compared to $17.63 at the end of the first quarter 2019. In the second quarter, lower long-term rates continued to have a positive impact on the fair value adjustment in the securities portfolio. The fair value adjustment net of tax was a gain of $5.5 million in the second quarter 2019 compared to a loss of $1.8 million in the first quarter 2019.
RESULTS OF OPERATIONS
Net income in the second quarter 2019 was $6.1 million, or $0.39 per share, compared to $8.5 million, or $0.55 per share, in the same quarter of 2018. Interest and dividend income was up 7% to $33.8 million as quarterly yields on earning assets expanded 14 basis points on a year-over-year basis to 4.13%. Net interest margin in the second quarter 2019 decreased to 2.65% from 2.91% in the same period of 2018. The decrease reflects the impact of higher short-term interest rates and the flattening of the yield curve in 2019.
The second quarter 2019 provision for loan losses decreased to $562 thousand from $770 thousand in the same quarter 2018. We continue to have a positive quarterly trend in both recoveries and charged-off loans. The net charged-off loans to average loans ratio is at a zero annualized rate for the second quarter 2019. Asset quality continues to be strong with non-accruing loans to total loans at 0.62% in the second quarter 2019, down from 0.88% in the same quarter of 2018.
Non-interest income in the second quarter 2019 increased 5% to $7.5 million from $7.1 million in the same quarter in 2018. The increase was driven by greater customer service fees on higher transaction volume, an increase in customer derivative income due to commercial loan growth and an increase in bank-owned life insurance income given additional investments.
Non-interest expense increased to $20.9 million in the second quarter 2019 from $18.7 million in the prior year. The increase in salary and employee benefits is due to several strategic hires along with an increase in full-time equivalents to 474 from 451 in 2018. The increase in full-time equivalents is primarily related to new locations that were previously announced. Occupancy and equipment expense is also higher in 2019 compared to 2018 due to the new locations placed in service during the fourth quarter of 2018 and renovations to the Newport, New Hampshire branch in the spring of 2019.
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 130 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 under the heading “SECOND QUARTER FINANCIAL HIGHLIGHTS” 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, 2018. Because of these and other uncertainties, the Company’s actual results, performance or achievements, or industry results, may be materially different from the results indicated by these forward-looking statements. In addition, the Company’s past results of operations do not necessarily indicate future results. You should not place undue reliance on any of the forward-looking statements, which speak only as of the dates on which they were made. The Company is not undertaking an obligation to update forward-looking statements, even though its situation may change in the future, except as required under federal securities law. The Company qualifies all of its forward-looking statements by these cautionary statements.
NON-GAAP FINANCIAL MEASURES
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP core 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 core earnings in evaluating operating trends, including components for core 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 core earnings per share based on its measure of core 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 core earnings and core 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.
|
TABLE |
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 |
||||||||||||||||||
|
|
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
||||||||||
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net earnings, diluted |
|
$ |
0.39 |
|
|
$ |
0.47 |
|
|
$ |
0.49 |
|
|
$ |
0.58 |
|
|
$ |
0.55 |
|
|
Core earnings, diluted (1) (2) |
|
0.41 |
|
|
0.47 |
|
|
0.59 |
|
|
0.58 |
|
|
0.56 |
|
|||||
|
Total book value |
|
25.13 |
|
|
24.54 |
|
|
23.87 |
|
|
23.06 |
|
|
22.97 |
|
|||||
|
Tangible book value (2) |
|
18.23 |
|
|
17.63 |
|
|
16.94 |
|
|
16.11 |
|
|
16.00 |
|
|||||
|
Market price at period end |
|
26.59 |
|
|
25.87 |
|
|
22.43 |
|
|
28.72 |
|
|
30.29 |
|
|||||
|
Dividends |
|
0.22 |
|
|
0.20 |
|
|
0.20 |
|
|
0.20 |
|
|
0.20 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PERFORMANCE RATIOS (3) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Return on assets |
|
0.67 |
% |
|
0.83 |
% |
|
0.85 |
% |
|
1.01 |
% |
|
0.97 |
% |
|||||
|
Core return on assets (1) (2) |
|
0.70 |
|
|
0.83 |
|
|
1.03 |
|
|
1.01 |
|
|
1.00 |
|
|||||
|
Return on equity |
|
6.33 |
|
|
7.83 |
|
|
8.31 |
|
|
9.92 |
|
|
9.65 |
|
|||||
|
Core return on equity (1) (2) |
|
6.57 |
|
|
7.83 |
|
|
10.01 |
|
|
9.98 |
|
|
9.86 |
|
|||||
|
Core return on tangible equity (1) (2) |
|
9.30 |
|
|
11.19 |
|
|
14.46 |
|
|
14.52 |
|
|
14.43 |
|
|||||
|
Net interest margin, fully taxable equivalent (FTE) (2) (4) |
|
2.65 |
|
|
2.77 |
|
|
2.78 |
|
|
2.81 |
|
|
2.91 |
|
|||||
|
Net interest margin (FTE), excluding purchased loan accretion (2) (4) |
2.56 |
|
|
2.67 |
|
|
2.70 |
|
|
2.71 |
|
|
2.80 |
|
||||||
|
Efficiency ratio (2) |
|
68.48 |
|
|
63.94 |
|
|
59.91 |
|
|
57.88 |
|
|
58.83 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
GROWTH (Year-to-date, annualized) (2) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total commercial loans |
|
10.1 |
% |
|
(3.3 |
)% |
|
1.4 |
% |
|
2.8 |
% |
|
5.7 |
% |
|||||
|
Total loans |
|
7.1 |
|
|
5.9 |
|
|
0.2 |
|
|
(0.1 |
) |
|
— |
|
|||||
|
Total deposits |
|
(0.1 |
) |
|
(2.8 |
) |
|
5.6 |
|
|
2.2 |
|
|
1.9 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
FINANCIAL DATA (In millions) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total assets |
|
$ |
3,688 |
|
|
$ |
3,629 |
|
|
$ |
3,608 |
|
|
$ |
3,561 |
|
|
$ |
3,541 |
|
|
Total earning assets (2) (5) |
|
3,355 |
|
|
3,312 |
|
|
3,263 |
|
|
3,253 |
|
|
3,250 |
|
|||||
|
Total investments |
|
784 |
|
|
782 |
|
|
761 |
|
|
747 |
|
|
749 |
|
|||||
|
Total loans |
|
2,578 |
|
|
2,527 |
|
|
2,490 |
|
|
2,484 |
|
|
2,485 |
|
|||||
|
Allowance for loan losses |
|
15 |
|
|
14 |
|
|
14 |
|
|
13 |
|
|
13 |
|
|||||
|
Total goodwill and intangible assets |
|
107 |
|
|
107 |
|
|
108 |
|
|
108 |
|
|
108 |
|
|||||
|
Total deposits |
|
2,481 |
|
|
2,466 |
|
|
2,483 |
|
|
2,390 |
|
|
2,375 |
|
|||||
|
Total shareholders’ equity |
|
391 |
|
|
381 |
|
|
371 |
|
|
358 |
|
|
356 |
|
|||||
|
Net income |
|
6 |
|
|
7 |
|
|
8 |
|
|
9 |
|
|
9 |
|
|||||
|
Core income (1) (2) |
|
6 |
|
|
7 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
ASSET QUALITY AND CONDITION RATIOS |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net charge-offs (current quarter annualized)/average loans |
|
— |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.04 |
% |
|
0.06 |
% |
|||||
|
Allowance for loan losses/total loans |
|
0.57 |
|
|
0.55 |
|
|
0.56 |
|
|
0.54 |
|
|
0.53 |
|
|||||
|
Loans/deposits |
|
104 |
|
|
102 |
|
|
100 |
|
|
104 |
|
|
105 |
|
|||||
|
Shareholders’ equity to total assets |
|
10.59 |
|
|
10.50 |
|
|
10.27 |
|
|
10.04 |
|
|
10.05 |
|
|||||
|
Tangible shareholders’ equity to tangible assets |
|
7.92 |
|
|
7.77 |
|
|
7.51 |
|
|
7.24 |
|
|
7.22 |
|
|||||
|
(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 or loss on sale of securities and premises and equipment. 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 based on average balance sheet amounts, where applicable. |
|
(4) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans. |
|
(5) Earning assets includes non-accruing loans and securities are valued at amortized cost. |
|
BAR HARBOR BANKSHARES |
||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS – UNAUDITED |
||||||||||||||||||||
|
(in thousands) |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks |
|
$ |
42,657 |
|
|
$ |
37,504 |
|
|
$ |
35,208 |
|
|
$ |
53,154 |
|
|
$ |
39,327 |
|
|
Interest-bearing deposits with the Federal Reserve Bank |
|
17,203 |
|
|
16,599 |
|
|
63,546 |
|
|
19,420 |
|
|
22,066 |
|
|||||
|
Total cash and cash equivalents |
|
59,860 |
|
|
54,103 |
|
|
98,754 |
|
|
72,574 |
|
|
61,393 |
|
|||||
|
Securities available for sale, at fair value |
|
748,560 |
|
|
747,235 |
|
|
725,837 |
|
|
712,658 |
|
|
710,147 |
|
|||||
|
Federal Home Loan Bank stock |
|
35,220 |
|
|
35,107 |
|
|
35,659 |
|
|
34,154 |
|
|
38,712 |
|
|||||
|
Total securities |
|
783,780 |
|
|
782,342 |
|
|
761,496 |
|
|
746,812 |
|
|
748,859 |
|
|||||
|
Commercial real estate |
|
881,479 |
|
|
821,567 |
|
|
826,699 |
|
|
840,018 |
|
|
838,546 |
|
|||||
|
Commercial and industrial |
|
416,725 |
|
|
409,937 |
|
|
404,870 |
|
|
385,814 |
|
|
400,293 |
|
|||||
|
Residential real estate |
|
1,167,759 |
|
|
1,184,053 |
|
|
1,144,698 |
|
|
1,140,519 |
|
|
1,127,895 |
|
|||||
|
Consumer |
|
112,275 |
|
|
111,402 |
|
|
113,960 |
|
|
117,239 |
|
|
118,332 |
|
|||||
|
Total loans |
|
2,578,238 |
|
|
2,526,959 |
|
|
2,490,227 |
|
|
2,483,590 |
|
|
2,485,066 |
|
|||||
|
Less: Allowance for loan losses |
|
(14,572 |
) |
|
(13,997 |
) |
|
(13,866 |
) |
|
(13,487 |
) |
|
(13,090 |
) |
|||||
|
Net loans |
|
2,563,666 |
|
|
2,512,962 |
|
|
2,476,361 |
|
|
2,470,103 |
|
|
2,471,976 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Premises and equipment, net |
|
50,230 |
|
|
49,661 |
|
|
48,804 |
|
|
47,621 |
|
|
48,038 |
|
|||||
|
Other real estate owned |
|
2,351 |
|
|
2,351 |
|
|
2,351 |
|
|
68 |
|
|
129 |
|
|||||
|
Goodwill |
|
100,085 |
|
|
100,085 |
|
|
100,085 |
|
|
100,085 |
|
|
100,085 |
|
|||||
|
Other intangible assets |
|
7,072 |
|
|
7,266 |
|
|
7,459 |
|
|
7,690 |
|
|
7,921 |
|
|||||
|
Cash surrender value of bank-owned life insurance |
|
74,871 |
|
|
74,352 |
|
|
73,810 |
|
|
73,316 |
|
|
58,811 |
|
|||||
|
Deferred tax asset, net |
|
5,649 |
|
|
7,632 |
|
|
9,514 |
|
|
11,527 |
|
|
10,309 |
|
|||||
|
Other assets |
|
40,071 |
|
|
38,441 |
|
|
29,853 |
|
|
31,196 |
|
|
33,534 |
|
|||||
|
Total assets |
|
$ |
3,687,635 |
|
|
$ |
3,629,195 |
|
|
$ |
3,608,487 |
|
|
$ |
3,560,992 |
|
|
$ |
3,541,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Demand and other non-interest bearing deposits |
|
$ |
354,125 |
|
|
$ |
342,030 |
|
|
$ |
370,889 |
|
|
$ |
372,358 |
|
|
$ |
341,773 |
|
|
NOW deposits |
|
472,576 |
|
|
470,277 |
|
|
484,717 |
|
|
471,326 |
|
|
449,715 |
|
|||||
|
Savings deposits |
|
352,657 |
|
|
346,813 |
|
|
358,888 |
|
|
354,908 |
|
|
350,339 |
|
|||||
|
Money market deposits |
|
305,506 |
|
|
349,833 |
|
|
335,951 |
|
|
254,142 |
|
|
260,642 |
|
|||||
|
Time deposits |
|
996,512 |
|
|
956,818 |
|
|
932,793 |
|
|
937,615 |
|
|
972,252 |
|
|||||
|
Total deposits |
|
2,481,376 |
|
|
2,465,771 |
|
|
2,483,238 |
|
|
2,390,349 |
|
|
2,374,721 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Senior borrowings |
|
733,084 |
|
|
703,283 |
|
|
680,823 |
|
|
739,224 |
|
|
735,924 |
|
|||||
|
Subordinated borrowings |
|
42,943 |
|
|
42,958 |
|
|
42,973 |
|
|
42,988 |
|
|
43,003 |
|
|||||
|
Total borrowings |
|
776,027 |
|
|
746,241 |
|
|
723,796 |
|
|
782,212 |
|
|
778,927 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Other liabilities |
|
39,670 |
|
|
36,160 |
|
|
30,874 |
|
|
30,746 |
|
|
31,444 |
|
|||||
|
Total liabilities |
|
3,297,073 |
|
|
3,248,172 |
|
|
3,237,908 |
|
|
3,203,307 |
|
|
3,185,092 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total shareholders’ equity |
|
390,562 |
|
|
381,023 |
|
|
370,579 |
|
|
357,685 |
|
|
355,963 |
|
|||||
|
Total liabilities and shareholders’ equity |
|
$ |
3,687,635 |
|
|
$ |
3,629,195 |
|
|
$ |
3,608,487 |
|
|
$ |
3,560,992 |
|
|
$ |
3,541,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net shares outstanding |
|
15,544 |
|
|
15,524 |
|
|
15,523 |
|
|
15,509 |
|
|
15,496 |
|
|||||
|
BAR HARBOR BANKSHARES |
|||||||||||||||||||||||||||
|
CONSOLIDATED LOAN & DEPOSIT ANALYSIS – UNAUDITED |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
LOAN ANALYSIS |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 |
|||||||||||||||
|
(in thousands) |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Quarter |
|
Year to |
|||||||||||||
|
Commercial real estate |
|
$ |
881,479 |
|
|
$ |
821,567 |
|
|
$ |
826,699 |
|
|
$ |
840,018 |
|
|
$ |
838,546 |
|
|
29.2 |
% |
|
13.3 |
% |
|
|
Commercial and industrial |
|
312,029 |
|
|
305,185 |
|
|
309,544 |
|
|
303,984 |
|
|
313,680 |
|
|
9.0 |
|
|
1.6 |
|
||||||
|
Total commercial loans |
|
1,193,508 |
|
|
1,126,752 |
|
|
1,136,243 |
|
|
1,144,002 |
|
|
1,152,226 |
|
|
23.7 |
|
|
10.1 |
|
||||||
|
Residential real estate |
|
1,167,759 |
|
|
1,184,053 |
|
|
1,144,698 |
|
|
1,140,519 |
|
|
1,127,895 |
|
|
(5.5 |
) |
|
4.0 |
|
||||||
|
Consumer |
|
112,275 |
|
|
111,402 |
|
|
113,960 |
|
|
117,239 |
|
|
118,332 |
|
|
3.1 |
|
|
(3.0 |
) |
||||||
|
Tax exempt |
|
104,696 |
|
|
104,752 |
|
|
95,326 |
|
|
81,830 |
|
|
86,613 |
|
|
(0.2 |
) |
|
19.7 |
|
||||||
|
Total loans |
|
$ |
2,578,238 |
|
|
$ |
2,526,959 |
|
|
$ |
2,490,227 |
|
|
$ |
2,483,590 |
|
|
$ |
2,485,066 |
|
|
8.1 |
% |
|
7.1 |
% |
|
|
DEPOSIT ANALYSIS |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 |
|||||||||||||||
|
(in thousands) |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Quarter |
|
Year to |
|||||||||||||
|
Demand |
|
$ |
354,125 |
|
|
$ |
342,030 |
|
|
$ |
370,889 |
|
|
$ |
372,358 |
|
|
$ |
341,773 |
|
|
14.1 |
% |
|
(9.0 |
)% |
|
|
NOW |
|
472,576 |
|
|
470,277 |
|
|
484,717 |
|
|
471,326 |
|
|
449,715 |
|
|
2.0 |
|
|
(5.0 |
) |
||||||
|
Savings |
|
352,657 |
|
|
346,813 |
|
|
358,888 |
|
|
354,908 |
|
|
350,339 |
|
|
6.7 |
|
|
(3.5 |
) |
||||||
|
Money Market |
|
305,506 |
|
|
349,833 |
|
|
335,951 |
|
|
254,142 |
|
|
260,642 |
|
|
(50.7 |
) |
|
(18.1 |
) |
||||||
|
Total non-maturity deposits |
|
1,484,864 |
|
|
1,508,953 |
|
|
1,550,445 |
|
|
1,452,734 |
|
|
1,402,469 |
|
|
(6.4 |
) |
|
(8.5 |
) |
||||||
|
Total time deposits |
|
996,512 |
|
|
956,818 |
|
|
932,793 |
|
|
937,615 |
|
|
972,252 |
|
|
16.6 |
|
|
13.7 |
|
||||||
|
Total deposits |
|
$ |
2,481,376 |
|
|
$ |
2,465,771 |
|
|
$ |
2,483,238 |
|
|
$ |
2,390,349 |
|
|
$ |
2,374,721 |
|
|
2.5 |
% |
|
(0.1 |
)% |
|
|
BAR HARBOR BANKSHARES |
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED |
||||||||||||||||
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
(in thousands, except per share data) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
Interest and dividend income |
|
|
|
|
|
|
|
|
||||||||
|
Loans |
|
$ |
27,660 |
|
|
$ |
25,934 |
|
|
$ |
54,524 |
|
|
$ |
51,060 |
|
|
Securities and other |
|
6,125 |
|
|
5,784 |
|
|
12,488 |
|
|
11,435 |
|
||||
|
Total interest and dividend income |
|
33,785 |
|
|
31,718 |
|
|
67,012 |
|
|
62,495 |
|
||||
|
Interest expense |
|
|
|
|
|
|
|
|
||||||||
|
Deposits |
|
6,886 |
|
|
4,405 |
|
|
13,193 |
|
|
8,390 |
|
||||
|
Borrowings |
|
5,403 |
|
|
4,321 |
|
|
10,558 |
|
|
7,955 |
|
||||
|
Total interest expense |
|
12,289 |
|
|
8,726 |
|
|
23,751 |
|
|
16,345 |
|
||||
|
Net interest income |
|
21,496 |
|
|
22,992 |
|
|
43,261 |
|
|
46,150 |
|
||||
|
Provision for loan losses |
|
562 |
|
|
770 |
|
|
886 |
|
|
1,565 |
|
||||
|
Net interest income after provision for loan losses |
|
20,934 |
|
|
22,222 |
|
|
42,375 |
|
|
44,585 |
|
||||
|
Non-interest income |
|
|
|
|
|
|
|
|
||||||||
|
Trust and investment management fee income |
|
3,066 |
|
|
3,122 |
|
|
5,823 |
|
|
6,084 |
|
||||
|
Customer service fees |
|
2,618 |
|
|
2,347 |
|
|
4,783 |
|
|
4,571 |
|
||||
|
Bank-owned life insurance income |
|
519 |
|
|
377 |
|
|
1,061 |
|
|
823 |
|
||||
|
Customer derivative income |
|
696 |
|
|
545 |
|
|
725 |
|
|
545 |
|
||||
|
Other income |
|
554 |
|
|
730 |
|
|
1,228 |
|
|
1,336 |
|
||||
|
Total non-interest income |
|
7,453 |
|
|
7,121 |
|
|
13,620 |
|
|
13,359 |
|
||||
|
Non-interest expense |
|
|
|
|
|
|
|
|
||||||||
|
Salaries and employee benefits |
|
11,685 |
|
|
10,375 |
|
|
22,204 |
|
|
21,364 |
|
||||
|
Occupancy and equipment |
|
3,300 |
|
|
2,925 |
|
|
6,686 |
|
|
5,998 |
|
||||
|
Loss on sales of premises and equipment, net |
|
21 |
|
|
— |
|
|
21 |
|
|
— |
|
||||
|
Outside services |
|
443 |
|
|
581 |
|
|
854 |
|
|
1,141 |
|
||||
|
Professional services |
|
570 |
|
|
360 |
|
|
1,114 |
|
|
793 |
|
||||
|
Communication |
|
283 |
|
|
304 |
|
|
518 |
|
|
484 |
|
||||
|
Marketing |
|
511 |
|
|
588 |
|
|
806 |
|
|
914 |
|
||||
|
Amortization of intangible assets |
|
207 |
|
|
207 |
|
|
414 |
|
|
414 |
|
||||
|
Acquisition, conversion and other expenses |
|
280 |
|
|
214 |
|
|
280 |
|
|
549 |
|
||||
|
Other expenses |
|
3,606 |
|
|
3,131 |
|
|
6,633 |
|
|
5,880 |
|
||||
|
Total non-interest expense |
|
20,906 |
|
|
18,685 |
|
|
39,530 |
|
|
37,537 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes |
|
7,481 |
|
|
10,658 |
|
|
16,465 |
|
|
20,407 |
|
||||
|
Income tax expense |
|
1,364 |
|
|
2,123 |
|
|
3,067 |
|
|
4,060 |
|
||||
|
Net income |
|
$ |
6,117 |
|
|
$ |
8,535 |
|
|
$ |
13,398 |
|
|
$ |
16,347 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.55 |
|
|
$ |
0.86 |
|
|
$ |
1.06 |
|
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.55 |
|
|
0.86 |
|
|
1.05 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
15,538 |
|
|
15,482 |
|
|
15,531 |
|
|
15,465 |
|
||||
|
Diluted |
|
15,586 |
15,571 |
15,582 |
15,560 |
|
||||||||||
|
BAR HARBOR BANKSHARES |
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) – UNAUDITED |
||||||||||||||||||||
|
(in thousands, except per share data) |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
||||||||||
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans |
|
$ |
27,660 |
|
|
$ |
26,864 |
|
|
$ |
26,743 |
|
|
$ |
26,212 |
|
|
$ |
25,934 |
|
|
Securities and other |
|
6,125 |
|
|
6,363 |
|
|
6,029 |
|
|
5,972 |
|
|
5,784 |
|
|||||
|
Total interest and dividend income |
|
33,785 |
|
|
33,227 |
|
|
32,772 |
|
|
32,184 |
|
|
31,718 |
|
|||||
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits |
|
6,886 |
|
|
6,307 |
|
|
5,653 |
|
|
5,478 |
|
|
4,405 |
|
|||||
|
Borrowings |
|
5,403 |
|
|
5,155 |
|
|
4,855 |
|
|
4,237 |
|
|
4,321 |
|
|||||
|
Total interest expense |
|
12,289 |
|
|
11,462 |
|
|
10,508 |
|
|
9,715 |
|
|
8,726 |
|
|||||
|
Net interest income |
|
21,496 |
|
|
21,765 |
|
|
22,264 |
|
|
22,469 |
|
|
22,992 |
|
|||||
|
Provision for loan losses |
|
562 |
|
|
324 |
|
|
572 |
|
|
643 |
|
|
770 |
|
|||||
|
Net interest income after provision for loan losses |
|
20,934 |
|
|
21,441 |
|
|
21,692 |
|
|
21,826 |
|
|
22,222 |
|
|||||
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Trust and investment management fee income |
|
3,066 |
|
|
2,757 |
|
|
2,949 |
|
|
2,952 |
|
|
3,122 |
|
|||||
|
Customer service fees |
|
2,618 |
|
|
2,165 |
|
|
2,477 |
|
|
2,490 |
|
|
2,347 |
|
|||||
|
Loss on sales of securities, net |
|
— |
|
|
— |
|
|
(924 |
) |
|
— |
|
|
— |
|
|||||
|
Bank-owned life insurance income |
|
519 |
|
|
542 |
|
|
493 |
|
|
505 |
|
|
377 |
|
|||||
|
Customer derivative income |
|
696 |
|
|
29 |
|
|
315 |
|
|
— |
|
|
545 |
|
|||||
|
Other income |
|
554 |
|
|
674 |
|
|
2,140 |
|
|
1,179 |
|
|
730 |
|
|||||
|
Total non-interest income |
|
7,453 |
|
|
6,167 |
|
|
7,450 |
|
|
7,126 |
|
|
7,121 |
|
|||||
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Salaries and employee benefits |
|
11,685 |
|
|
10,519 |
|
|
9,269 |
|
|
10,331 |
|
|
10,375 |
|
|||||
|
Occupancy and equipment |
|
3,300 |
|
|
3,386 |
|
|
3,022 |
|
|
3,366 |
|
|
2,925 |
|
|||||
|
Loss on sales of premises and equipment, net |
|
21 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Outside services |
|
443 |
|
|
411 |
|
|
811 |
|
|
456 |
|
|
581 |
|
|||||
|
Professional services |
|
570 |
|
|
544 |
|
|
458 |
|
|
223 |
|
|
360 |
|
|||||
|
Communication |
|
283 |
|
|
235 |
|
|
103 |
|
|
217 |
|
|
304 |
|
|||||
|
Marketing |
|
511 |
|
|
295 |
|
|
536 |
|
|
293 |
|
|
588 |
|
|||||
|
Amortization of intangible assets |
|
207 |
|
|
207 |
|
|
207 |
|
|
207 |
|
|
207 |
|
|||||
|
Acquisition, conversion, and other expenses |
|
280 |
|
|
— |
|
|
1,109 |
|
|
70 |
|
|
214 |
|
|||||
|
Other expenses |
|
3,606 |
|
|
3,027 |
|
|
4,581 |
|
|
2,743 |
|
|
3,131 |
|
|||||
|
Total non-interest expense |
|
20,906 |
|
|
18,624 |
|
|
20,096 |
|
|
17,906 |
|
|
18,685 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income before income taxes |
|
7,481 |
|
|
8,984 |
|
|
9,046 |
|
|
11,046 |
|
|
10,658 |
|
|||||
|
Income tax expense |
|
1,364 |
|
|
1,703 |
|
|
1,426 |
|
|
2,076 |
|
|
2,123 |
|
|||||
|
Net income |
|
$ |
6,117 |
|
|
$ |
7,281 |
|
|
$ |
7,620 |
|
|
$ |
8,970 |
|
|
$ |
8,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
|
$ |
0.39 |
|
|
$ |
0.47 |
|
|
$ |
0.49 |
|
|
$ |
0.58 |
|
|
$ |
0.55 |
|
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.47 |
|
|
$ |
0.49 |
|
|
$ |
0.58 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
|
15,538 |
|
|
15,523 |
|
|
15,516 |
|
|
15,503 |
|
|
15,482 |
|
|||||
|
Diluted |
|
15,586 |
|
|
15,587 |
|
|
15,574 |
|
|
15,580 |
|
|
15,571 |
|
|||||
Contacts
Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314
