[July 19, 2018] |
|
Bar Harbor Bankshares Reports Second Quarter Earnings
Bar Harbor Bankshares (NYSE American: BHB)
reported second quarter 2018 GAAP earnings of $8.5 million, or 55 cents
per share, compared with $6.6 million, or 42 cents per share in the same
quarter of 2017. Core earnings in the second quarter 2018 totaled $8.7
million, or 56 cents per share, up from $8.1 million, or 52 cents in the
second quarter of 2017.
SECOND QUARTER FINANCIAL HIGHLIGHTS (comparisons are to the
second quarter 2017 unless otherwise noted):
-
9% annualized commercial loan growth
-
9% increase in non-interest income
-
58.8% efficiency ratio (non-GAAP measure)
-
1.00% core return on assets (non-GAAP measure)
-
9.86% core return on equity (non-GAAP measure)
-
9% annualized growth in tangible book value per share, excluding
security adjustments (non-GAAP measure)
President and Chief Executive Officer, Curtis C. Simard stated, "Our
teams had a successful second quarter as they executed on our strategies
and delivered on financial performance. We diversified revenue streams,
grew loans under a uniformed brand and banking franchise, adhered to our
strong credit culture and maintained a disciplined approach to expense
management. As a result, core return on assets improved to 1.00% on
stronger core earnings (non-GAAP measure), up 8% on a year-over-year
basis. Non-interest income grew by 9% year-over-year on higher customer
activity and fees from the build out of our derivatives platform. With
the additional talent we've hired and evolving needs of our customers,
we expanded our derivatives capabilities in the second quarter, which
contributed almost 3 cents of earnings per share. We expect this to be a
continuing source of non-interest income as we look forward."
"Our commercial teams continued to gain market share as we grew
commercial loans at an annualized rate of 9%. Our pipeline remains
robust going into the third quarter, especially in commercial and
industrial products."
Mr. Simard went on to say, "In April, we officially unified the Bar
Harbor Bank & Trust brand throughout our footprint as we now operate
under one name. Our brand identity as a True Community Bank is at the
heart of who we are and has further strengthened us as a result of this
unification."
"In the third quarter, we will convert our current Visa debit card
offering to Mastercard for all of our customers. The introduction of
this card will allow us to further enhance security and fraud detection
for customers to include EMV chips. In addition to the issuance of new
cards, a rewards program and instant issuance capabilities will be
rolled out at all of our branches and customer driven Bar Harbor card
controls will be provided though mobile devices."
Mr. Simard further stated, "One of the key elements in being a True
Community Bank is the donation of time, money and expertise to those
within our surrounding communities. In addition to the countless
volunteer hours that we have committed to our communities, the Bank has
already donated significantly this year to worthy causes in the places
we call home. We also rolled out an employee incentive program to
encourage charitable donations that will provide meaningful support to
non-profit businesses."
Mr. Simard concluded, "Excluding security adjustments, we are ahead of
schedule on the earn-back of dilution to tangible book value per share
and anticipate to be at pre-acquisition levels by year-end. We are proud
of our key performance metrics and community achievements and are
looking forward to the second half of 2018, as we build upon our current
momentum and continue to enhance shareholder value."
RESULTS OF OPERATIONS GAAP earnings increased to $8.5
million, or 55 cents per share, in the second quarter of 2018 from $6.6
million, or 42 cents per share, in the same period of 2017. Core
earnings were up 8% to $8.7 million, or 56 cents per share, in the
second quarter of 2018 compared to $8.1 million, or 52 cents per share,
in the second quarter of 2017. Core revenue totaled $30.1 million and
includes the benefit of higher non-interest income from expanded
customer activity fees and derivative income. Interest income totaled
$31.7 million, up 7% on a year-over-year basis, and yields on loans and
investments expanded eight basis points in total. However, net interest
margin in the second quarter 2018 decreased to 2.91% from 3.16% in the
prior year due to higher cost of funds driven by short-term interest
rate hikes. The Company's loan to deposit ratio improved two basis
points over the prior year to 105 at the end of the second quarter.
Given the further flattening of the yield curve, the Company did extend
liability durations during the quarter in an effort to mitigate the
impact of future Federal Reserve tightening. The contribution from
tax-equivalency adjustments also declined over the prior year as a
result of the lower federal statutory tax rate. The second quarter
provision for loan losses was $770 thousand and exceeded net
charge-offs, which follows the positive trend in all quarterly periods
presented.
Non-interest expense decreased to $18.7 million in the second quarter
2018 compared to $20.0 million in the second quarter of 2017. The
decrease primarily relates to lower acquisition, conversion and other
expenses, totaling $214 thousand in 2018 compared to $2.5 million in
2017. Offsetting this, brand consolidation costs also increased other
expense in the second quarter 2018 by $318 thousand.
The second quarter effective tax rate decreased to 19.9% in 2018
compared with 31.6% in the same quarter of 2017, primarily reflecting a
lower federal statutory tax rate. The effective tax rate in 2017 also
benefited from the acquisition and conversion related costs.
FINANCIAL CONDITION Total assets were $3.5 billion at the
end of the second quarter 2018 increasing $30.1 million primarily due to
growth in the loan portfolio. Total loans increased $20.6 million in the
second quarter with the majority of the growth driven by commercial
products lines. Non-accruing loans increased $1.6 million during the
quarter mostly due to the deterioration of one specific residential
relationship, which is expected to be settled for the full carrying
value of the obligation. Overall, asset quality metrics remain strong
with an allowance for credit losses to total loans ratio of 0.53%.
Excluding the impact of securities fair value adjustments, earnings grew
tangible book value per share (non-GAAP measure) to $16.81 compared from
$16.44 in the first of quarter of 2018.
BACKGROUND Bar Harbor Bankshares (NYSE American: BHB) is the
parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust.
Founded in 1887, Bar Harbor Bank & Trust is a true community bank
serving the financial needs of its clients for over 125 years. Bar
Harbor provides full-service community banking with office locations in
all three Northern New England states of Maine, New Hampshire and
Vermont. For more information, visit www.bhbt.com.
FORWARD LOOKING STATEMENTS Certain statements contained in
this document that are not historical facts may constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended ("Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and
are intended to be covered by the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. When used in this earnings
release the words "may," "will," "should," "could," "would," "plan,"
"potential," "estimate," "project," "believe," "intend," "anticipate,"
"expect," "target" and similar expressions are intended to identify
forward-looking statements, but these terms are not the exclusive means
of identifying forward-looking statements. These forward-looking
statements are subject to significant risks, assumptions and
uncertainties, including among other things, changes in general economic
and business conditions, increased competitive pressures, changes in the
interest rate environment, legislative and regulatory change, changes in
the financial markets, and other risks and uncertainties disclosed from
time to time in documents that the Company files with the Securities and
Exchange Commission, including but not limited to those discussed in the
section titled "Risk Factors" in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2017. Because of these and
other uncertainties, the Company's actual results, performance or
achievements, or industry results, may be materially different from the
results indicated by these forward-looking statements. In addition, the
Company's past results of operations do not necessarily indicate future
results. You should not place undue reliance on any of the
forward-looking statements, which speak only as of the dates on which
they were made. The Company is not undertaking an obligation to update
forward-looking statements, even though its situation may change in the
future, except as required under federal securities law. The Company
qualifies all of its forward-looking statements by these cautionary
statements.
NON-GAAP FINANCIAL MEASURES This document contains certain
non-GAAP financial measures in addition to results presented in
accordance with accounting principles generally accepted in the United
States of America ("GAAP"). These non-GAAP measures are intended to
provide the reader with additional supplemental perspectives on
operating results, performance trends, and financial condition. Non-GAAP
financial measures are not a substitute for GAAP measures; they should
be read and used in conjunction with the Company's GAAP financial
information. A reconciliation of non-GAAP financial measures to GAAP
measures is provided below. In all cases, it should be understood that
non-GAAP measures do not depict amounts that accrue directly to the
benefit of shareholders. An item which management excludes when
computing non-GAAP adjusted earnings can be of substantial importance to
the Company's results for any particular quarter or year. The Company's
non-GAAP adjusted earnings information set forth is not necessarily
comparable to non- GAAP information which may be presented by other
companies. Each non-GAAP measure used by the Company in this report as
supplemental financial data should be considered in conjunction with the
Company's GAAP financial information.
The Company utilizes the non-GAAP measure of adjusted earnings in
evaluating operating trends, including components for adjusted revenue
and expense. These measures exclude amounts which the Company views as
unrelated to its normalized operations, including securities
gains/losses, acquisition costs, restructuring costs, legal settlements,
and systems conversion costs. Non-GAAP adjustments are presented net of
an adjustment for income tax expense.
The Company also calculates adjusted earnings per share based on its
measure of adjusted earnings. The Company views these amounts as
important to understanding its operating trends, particularly due to the
impact of accounting standards related to acquisition activity. Analysts
also rely on these measures in estimating and evaluating the Company's
performance. Management also believes that the computation of non-GAAP
adjusted earnings and adjusted earnings per share may facilitate the
comparison of the Company to other companies in the financial services
industry. The Company also adjusts certain equity related measures to
exclude intangible assets due to the importance of these measures to the
investment community.
|
|
|
|
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
|
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, diluted
|
|
|
$
|
0.55
|
|
|
|
$
|
0.50
|
|
|
|
$
|
0.43
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.42
|
|
Core earnings, diluted (1) (2)
|
|
|
0.56
|
|
|
|
0.52
|
|
|
|
0.58
|
|
|
|
0.57
|
|
|
|
0.52
|
|
Total book value
|
|
|
22.97
|
|
|
|
22.78
|
|
|
|
22.96
|
|
|
|
22.90
|
|
|
|
22.53
|
|
Tangible book value (2)
|
|
|
16.00
|
|
|
|
15.78
|
|
|
|
15.94
|
|
|
|
15.84
|
|
|
|
15.44
|
|
Market price at period end
|
|
|
30.29
|
|
|
|
27.72
|
|
|
|
27.01
|
|
|
|
31.36
|
|
|
|
30.82
|
|
Dividends
|
|
|
0.19
|
|
|
|
0.19
|
|
|
|
0.19
|
|
|
|
0.19
|
|
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on assets
|
|
|
0.97
|
%
|
|
|
0.90
|
%
|
|
|
0.75
|
%
|
|
|
0.99
|
%
|
|
|
0.76
|
%
|
Core return on assets (1) (2)
|
|
|
1.00
|
|
|
|
0.93
|
|
|
|
1.02
|
|
|
|
1.01
|
|
|
|
0.94
|
|
Return on equity
|
|
|
9.65
|
|
|
|
9.01
|
|
|
|
7.35
|
|
|
|
9.67
|
|
|
|
7.55
|
|
Core return on equity (1) (2)
|
|
|
9.86
|
|
|
|
9.31
|
|
|
|
9.97
|
|
|
|
9.90
|
|
|
|
9.32
|
|
Core return on tangible equity (1) (2)
|
|
|
14.43
|
|
|
|
13.72
|
|
|
|
14.56
|
|
|
|
14.53
|
|
|
|
13.81
|
|
Net interest margin, fully taxable equivalent (FTE) (2) (4)
|
|
|
2.91
|
|
|
|
2.97
|
|
|
|
3.04
|
|
|
|
3.06
|
|
|
|
3.16
|
|
Net interest margin (FTE), excluding purchased loan accretion (2)
(4)
|
|
|
2.80
|
|
|
|
2.85
|
|
|
|
2.93
|
|
|
|
2.93
|
|
|
|
3.02
|
|
Efficiency ratio (2)
|
|
|
58.83
|
|
|
|
60.44
|
|
|
|
53.02
|
|
|
|
53.53
|
|
|
|
54.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH (Year-to-date, annualized) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans
|
|
|
5.7
|
%
|
|
|
2.2
|
%
|
|
|
23.8
|
%
|
|
|
20.5
|
%
|
|
|
7.2
|
%
|
Total loans
|
|
|
-
|
|
|
|
(3.4
|
)
|
|
|
13.1
|
|
|
|
12.2
|
|
|
|
7.0
|
|
Total deposits
|
|
|
1.9
|
|
|
|
(1.8
|
)
|
|
|
14.4
|
|
|
|
10.6
|
|
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA (In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
3,541
|
|
|
|
$
|
3,511
|
|
|
|
$
|
3,565
|
|
|
|
$
|
3,476
|
|
|
|
$
|
3,503
|
|
Total earning assets (5)
|
|
|
3,250
|
|
|
|
3,235
|
|
|
|
3,244
|
|
|
|
3,183
|
|
|
|
3,138
|
|
Total investments
|
|
|
749
|
|
|
|
757
|
|
|
|
755
|
|
|
|
756
|
|
|
|
763
|
|
Total loans
|
|
|
2,485
|
|
|
|
2,464
|
|
|
|
2,486
|
|
|
|
2,429
|
|
|
|
2,377
|
|
Allowance for loan losses
|
|
|
13
|
|
|
|
13
|
|
|
|
12
|
|
|
|
12
|
|
|
|
11
|
|
Total goodwill and intangible assets
|
|
|
108
|
|
|
|
108
|
|
|
|
108
|
|
|
|
109
|
|
|
|
109
|
|
Total deposits
|
|
|
2,375
|
|
|
|
2,341
|
|
|
|
2,352
|
|
|
|
2,275
|
|
|
|
2,213
|
|
Total shareholders' equity
|
|
|
356
|
|
|
|
352
|
|
|
|
355
|
|
|
|
353
|
|
|
|
347
|
|
Net income
|
|
|
9
|
|
|
|
8
|
|
|
|
7
|
|
|
|
9
|
|
|
|
7
|
|
Core income (1) (2)
|
|
|
9
|
|
|
|
8
|
|
|
|
9
|
|
|
|
9
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY AND CONDITION RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (current quarter annualized)/average loans
|
|
|
0.06
|
%
|
|
|
0.07
|
%
|
|
|
0.04
|
%
|
|
|
0.01
|
%
|
|
|
0.03
|
%
|
Allowance for loan losses/total loans
|
|
|
0.53
|
|
|
|
0.51
|
|
|
|
0.50
|
|
|
|
0.49
|
|
|
|
0.48
|
|
Loans/deposits
|
|
|
105
|
|
|
|
105
|
|
|
|
106
|
|
|
|
107
|
|
|
|
107
|
|
Shareholders' equity to total assets
|
|
|
10.05
|
|
|
|
10.03
|
|
|
|
9.95
|
|
|
|
10.17
|
|
|
|
9.91
|
|
Tangible shareholders' equity to tangible assets
|
|
|
7.22
|
|
|
|
7.17
|
|
|
|
7.12
|
|
|
|
7.26
|
|
|
|
7.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________
(1) Core measurements are non-GAAP financial measures that are adjusted
to exclude net non-operating charges primarily related to acquisitions,
system conversions and gain on sale of securities. Refer to the
Reconciliation of Non-GAAP Financial Measures in table J for additional
information. (2) Non-GAAP financial measure. (3) All
performance ratios are annualized and are based on average balance sheet
amounts, where applicable. (4) Fully taxable equivalent considers
the impact of tax-advantaged investment securities and loans. (5)
Earning assets includes non-accruing loans and securities are valued at
amortized cost.
|
BAR HARBOR BANKSHARES
|
CONSOLIDATED BALANCE SHEETS - UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
|
$
|
39,327
|
|
|
|
$
|
35,088
|
|
|
|
$
|
34,262
|
|
|
|
$
|
31,223
|
|
|
|
$
|
28,112
|
|
Interest-bearing deposits with the Federal Reserve Bank
|
|
|
|
22,066
|
|
|
|
12,725
|
|
|
|
56,423
|
|
|
|
17,501
|
|
|
|
90,881
|
|
Total cash and cash equivalents
|
|
|
|
61,393
|
|
|
|
47,813
|
|
|
|
90,685
|
|
|
|
48,724
|
|
|
|
118,993
|
|
Securities available for sale, at fair value
|
|
|
|
710,147
|
|
|
|
718,559
|
|
|
|
717,242
|
|
|
|
718,459
|
|
|
|
718,364
|
|
Federal Home Loan Bank stock
|
|
|
|
38,712
|
|
|
|
38,105
|
|
|
|
38,105
|
|
|
|
37,107
|
|
|
|
44,168
|
|
Total securities
|
|
|
|
748,859
|
|
|
|
756,664
|
|
|
|
755,347
|
|
|
|
755,566
|
|
|
|
762,532
|
|
Commercial real estate
|
|
|
|
838,546
|
|
|
|
824,721
|
|
|
|
826,746
|
|
|
|
793,572
|
|
|
|
738,584
|
|
Commercial and industrial
|
|
|
|
400,293
|
|
|
|
387,205
|
|
|
|
379,423
|
|
|
|
357,072
|
|
|
|
350,002
|
|
Residential real estate
|
|
|
|
1,127,895
|
|
|
|
1,132,977
|
|
|
|
1,155,682
|
|
|
|
1,152,628
|
|
|
|
1,160,832
|
|
Consumer
|
|
|
|
118,332
|
|
|
|
119,516
|
|
|
|
123,762
|
|
|
|
125,590
|
|
|
|
127,229
|
|
Total loans
|
|
|
|
2,485,066
|
|
|
|
2,464,419
|
|
|
|
2,485,613
|
|
|
|
2,428,862
|
|
|
|
2,376,647
|
|
Less: Allowance for loan losses
|
|
|
|
(13,090
|
)
|
|
|
(12,679
|
)
|
|
|
(12,325
|
)
|
|
|
(11,950
|
)
|
|
|
(11,442
|
)
|
Net loans
|
|
|
|
2,471,976
|
|
|
|
2,451,740
|
|
|
|
2,473,288
|
|
|
|
2,416,912
|
|
|
|
2,365,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net
|
|
|
|
48,038
|
|
|
|
48,464
|
|
|
|
47,708
|
|
|
|
48,309
|
|
|
|
48,590
|
|
Other real estate owned
|
|
|
|
129
|
|
|
|
216
|
|
|
|
122
|
|
|
|
122
|
|
|
|
122
|
|
Goodwill
|
|
|
|
100,085
|
|
|
|
100,085
|
|
|
|
100,085
|
|
|
|
100,255
|
|
|
|
100,255
|
|
Other intangible assets
|
|
|
|
7,921
|
|
|
|
8,152
|
|
|
|
8,383
|
|
|
|
8,811
|
|
|
|
9,047
|
|
Cash surrender value of bank-owned life insurance
|
|
|
|
58,811
|
|
|
|
58,433
|
|
|
|
57,997
|
|
|
|
57,613
|
|
|
|
57,233
|
|
Deferred tax asset, net
|
|
|
|
10,309
|
|
|
|
9,627
|
|
|
|
7,180
|
|
|
|
13,052
|
|
|
|
13,211
|
|
Other assets
|
|
|
|
33,534
|
|
|
|
29,793
|
|
|
|
24,389
|
|
|
|
26,368
|
|
|
|
28,223
|
|
Total assets
|
|
|
|
$
|
3,541,055
|
|
|
|
$
|
3,510,987
|
|
|
|
$
|
3,565,184
|
|
|
|
$
|
3,475,732
|
|
|
|
$
|
3,503,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and other non-interest bearing deposits
|
|
|
|
$
|
341,773
|
|
|
|
$
|
342,192
|
|
|
|
$
|
349,055
|
|
|
|
$
|
357,398
|
|
|
|
$
|
332,339
|
|
NOW deposits
|
|
|
|
449,715
|
|
|
|
448,992
|
|
|
|
466,610
|
|
|
|
442,085
|
|
|
|
451,171
|
|
Savings deposits
|
|
|
|
350,339
|
|
|
|
361,591
|
|
|
|
364,799
|
|
|
|
373,118
|
|
|
|
360,306
|
|
Money market deposits
|
|
|
|
260,642
|
|
|
|
303,777
|
|
|
|
305,275
|
|
|
|
300,398
|
|
|
|
285,312
|
|
Time deposits
|
|
|
|
972,252
|
|
|
|
884,848
|
|
|
|
866,346
|
|
|
|
802,110
|
|
|
|
783,876
|
|
Total deposits
|
|
|
|
2,374,721
|
|
|
|
2,341,400
|
|
|
|
2,352,085
|
|
|
|
2,275,109
|
|
|
|
2,213,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior borrowings
|
|
|
|
735,924
|
|
|
|
742,198
|
|
|
|
786,688
|
|
|
|
775,582
|
|
|
|
872,021
|
|
Subordinated borrowings
|
|
|
|
43,003
|
|
|
|
43,018
|
|
|
|
43,033
|
|
|
|
43,048
|
|
|
|
43,063
|
|
Total borrowings
|
|
|
|
778,927
|
|
|
|
785,216
|
|
|
|
829,721
|
|
|
|
818,630
|
|
|
|
915,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
31,444
|
|
|
|
32,214
|
|
|
|
28,737
|
|
|
|
28,534
|
|
|
|
28,201
|
|
Total liabilities
|
|
|
|
3,185,092
|
|
|
|
3,158,830
|
|
|
|
3,210,543
|
|
|
|
3,122,273
|
|
|
|
3,156,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shareholders' equity
|
|
|
|
355,963
|
|
|
|
352,157
|
|
|
|
354,641
|
|
|
|
353,459
|
|
|
|
347,122
|
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
3,541,055
|
|
|
|
$
|
3,510,987
|
|
|
|
$
|
3,565,184
|
|
|
|
$
|
3,475,732
|
|
|
|
$
|
3,503,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net shares outstanding
|
|
|
|
15,496
|
|
|
|
15,459
|
|
|
|
15,443
|
|
|
|
15,432
|
|
|
|
15,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAR HARBOR BANKSHARES
|
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
|
|
LOAN ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Growth %
|
(in thousands)
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
|
|
Quarter End
|
|
Year to Date
|
Commercial real estate
|
|
|
$
|
838,546
|
|
|
|
$
|
824,721
|
|
|
|
$
|
826,746
|
|
|
|
$
|
793,572
|
|
|
|
$
|
738,584
|
|
|
|
6.7
|
%
|
|
2.9
|
%
|
Commercial and industrial
|
|
|
313,680
|
|
|
|
301,811
|
|
|
|
293,707
|
|
|
|
270,759
|
|
|
|
269,960
|
|
|
|
15.7
|
|
|
13.6
|
|
Total commercial loans
|
|
|
1,152,226
|
|
|
|
1,126,532
|
|
|
|
1,120,453
|
|
|
|
1,064,331
|
|
|
|
1,008,544
|
|
|
|
9.1
|
|
|
5.7
|
|
Residential real estate
|
|
|
1,127,895
|
|
|
|
1,132,977
|
|
|
|
1,155,682
|
|
|
|
1,152,628
|
|
|
|
1,160,832
|
|
|
|
(1.8
|
)
|
|
(4.8
|
)
|
Consumer
|
|
|
118,332
|
|
|
|
119,516
|
|
|
|
123,762
|
|
|
|
125,590
|
|
|
|
127,229
|
|
|
|
(4.0
|
)
|
|
(8.8
|
)
|
Tax exempt and other
|
|
|
86,613
|
|
|
|
85,394
|
|
|
|
85,716
|
|
|
|
86,313
|
|
|
|
80,042
|
|
|
|
5.7
|
|
|
2.1
|
|
Total loans
|
|
|
$
|
2,485,066
|
|
|
|
$
|
2,464,419
|
|
|
|
$
|
2,485,613
|
|
|
|
$
|
2,428,862
|
|
|
|
$
|
2,376,647
|
|
|
|
3.4
|
%
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Growth %
|
(in thousands)
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
|
|
Quarter End
|
|
|
Year to Date
|
Demand
|
|
|
$
|
341,773
|
|
|
|
$
|
342,192
|
|
|
|
$
|
349,055
|
|
|
|
$
|
357,398
|
|
|
|
$
|
332,339
|
|
|
|
(0.5
|
)%
|
|
|
(4.2
|
)%
|
NOW
|
|
|
449,715
|
|
|
|
448,992
|
|
|
|
466,610
|
|
|
|
442,085
|
|
|
|
451,171
|
|
|
|
0.6
|
|
|
|
(7.2
|
)
|
Savings
|
|
|
350,339
|
|
|
|
361,591
|
|
|
|
364,799
|
|
|
|
373,118
|
|
|
|
360,306
|
|
|
|
(12.4
|
)
|
|
|
(7.9
|
)
|
Money Market
|
|
|
260,642
|
|
|
|
303,777
|
|
|
|
305,275
|
|
|
|
300,398
|
|
|
|
285,312
|
|
|
|
(56.8
|
)
|
|
|
(29.2
|
)
|
Total non-maturity deposits
|
|
|
1,402,469
|
|
|
|
1,456,552
|
|
|
|
1,485,739
|
|
|
|
1,472,999
|
|
|
|
1,429,128
|
|
|
|
(14.9
|
)
|
|
|
(11.2
|
)
|
Total time deposits
|
|
|
972,252
|
|
|
|
884,848
|
|
|
|
866,346
|
|
|
|
802,110
|
|
|
|
783,876
|
|
|
|
39.5
|
|
|
|
24.4
|
|
Total deposits
|
|
|
$
|
2,374,721
|
|
|
|
$
|
2,341,400
|
|
|
|
$
|
2,352,085
|
|
|
|
$
|
2,275,109
|
|
|
|
$
|
2,213,004
|
|
|
|
5.7
|
%
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAR HARBOR BANKSHARES
|
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
(in thousands, except per share data)
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
25,934
|
|
|
|
$
|
24,226
|
|
|
|
$
|
51,060
|
|
|
|
$
|
45,420
|
Securities and other
|
|
|
5,784
|
|
|
|
5,439
|
|
|
|
11,435
|
|
|
|
10,430
|
Total interest and dividend income
|
|
|
31,718
|
|
|
|
29,665
|
|
|
|
62,495
|
|
|
|
55,850
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
4,405
|
|
|
|
2,539
|
|
|
|
8,390
|
|
|
|
4,749
|
Borrowings
|
|
|
4,321
|
|
|
|
3,317
|
|
|
|
7,955
|
|
|
|
5,920
|
Total interest expense
|
|
|
8,726
|
|
|
|
5,856
|
|
|
|
16,345
|
|
|
|
10,669
|
Net interest income
|
|
|
22,992
|
|
|
|
23,809
|
|
|
|
46,150
|
|
|
|
45,181
|
Provision for loan losses
|
|
|
770
|
|
|
|
736
|
|
|
|
1,565
|
|
|
|
1,531
|
Net interest income after provision for loan losses
|
|
|
22,222
|
|
|
|
23,073
|
|
|
|
44,585
|
|
|
|
43,650
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment management fee income
|
|
|
3,122
|
|
|
|
3,324
|
|
|
|
6,084
|
|
|
|
6,188
|
Insurance brokerage service income
|
|
|
-
|
|
|
|
327
|
|
|
|
-
|
|
|
|
691
|
Customer service fees
|
|
|
2,347
|
|
|
|
1,991
|
|
|
|
4,571
|
|
|
|
3,764
|
Bank-owned life insurance income
|
|
|
377
|
|
|
|
386
|
|
|
|
823
|
|
|
|
785
|
Other income
|
|
|
1,275
|
|
|
|
530
|
|
|
|
1,881
|
|
|
|
1,076
|
Total non-interest income
|
|
|
7,121
|
|
|
|
6,558
|
|
|
|
13,359
|
|
|
|
12,504
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
10,375
|
|
|
|
10,127
|
|
|
|
21,364
|
|
|
|
20,448
|
Occupancy and equipment
|
|
|
2,925
|
|
|
|
2,829
|
|
|
|
5,998
|
|
|
|
5,495
|
Loss on sales of premises and equipment, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
95
|
Outside services
|
|
|
581
|
|
|
|
716
|
|
|
|
1,141
|
|
|
|
1,313
|
Professional services
|
|
|
360
|
|
|
|
489
|
|
|
|
793
|
|
|
|
929
|
Communication
|
|
|
304
|
|
|
|
290
|
|
|
|
484
|
|
|
|
658
|
Amortization of intangible assets
|
|
|
207
|
|
|
|
211
|
|
|
|
414
|
|
|
|
391
|
Acquisition, conversion and other expenses
|
|
|
214
|
|
|
|
2,459
|
|
|
|
549
|
|
|
|
5,571
|
Other expenses
|
|
|
3,719
|
|
|
|
2,925
|
|
|
|
6,794
|
|
|
|
5,977
|
Total non-interest expense
|
|
|
18,685
|
|
|
|
20,046
|
|
|
|
37,537
|
|
|
|
40,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
10,658
|
|
|
|
9,585
|
|
|
|
20,407
|
|
|
|
15,277
|
Income tax expense
|
|
|
2,123
|
|
|
|
3,029
|
|
|
|
4,060
|
|
|
|
4,510
|
Net income
|
|
|
$
|
8,535
|
|
|
|
$
|
6,556
|
|
|
|
$
|
16,347
|
|
|
|
$
|
10,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.55
|
|
|
|
$
|
0.43
|
|
|
|
$
|
1.06
|
|
|
|
$
|
0.72
|
Diluted
|
|
|
$
|
0.55
|
|
|
|
$
|
0.42
|
|
|
|
1.05
|
|
|
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
15,482
|
|
|
|
15,393
|
|
|
|
15,465
|
|
|
|
14,935
|
Diluted
|
|
|
15,571
|
|
|
|
15,506
|
|
|
|
15,560
|
|
|
|
15,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAR HARBOR BANKSHARES
|
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
$
|
25,934
|
|
|
|
$
|
25,126
|
|
|
|
$
|
24,895
|
|
|
|
$
|
24,661
|
|
|
|
$
|
24,226
|
Securities and other
|
|
|
5,784
|
|
|
|
5,651
|
|
|
|
5,261
|
|
|
|
5,402
|
|
|
|
5,439
|
Total interest and dividend income
|
|
|
31,718
|
|
|
|
30,777
|
|
|
|
30,156
|
|
|
|
30,063
|
|
|
|
29,665
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
4,405
|
|
|
|
3,985
|
|
|
|
3,381
|
|
|
|
3,177
|
|
|
|
2,539
|
Borrowings
|
|
|
4,321
|
|
|
|
3,634
|
|
|
|
3,279
|
|
|
|
3,408
|
|
|
|
3,317
|
Total interest expense
|
|
|
8,726
|
|
|
|
7,619
|
|
|
|
6,660
|
|
|
|
6,585
|
|
|
|
5,856
|
Net interest income
|
|
|
22,992
|
|
|
|
23,158
|
|
|
|
23,496
|
|
|
|
23,478
|
|
|
|
23,809
|
Provision for loan losses
|
|
|
770
|
|
|
|
795
|
|
|
|
597
|
|
|
|
660
|
|
|
|
736
|
Net interest income after provision for loan losses
|
|
|
22,222
|
|
|
|
22,363
|
|
|
|
22,899
|
|
|
|
22,818
|
|
|
|
23,073
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust and investment management fee income
|
|
|
3,122
|
|
|
|
2,962
|
|
|
|
3,042
|
|
|
|
3,040
|
|
|
|
3,324
|
Insurance brokerage service income
|
|
|
-
|
|
|
|
-
|
|
|
|
77
|
|
|
|
329
|
|
|
|
327
|
Customer service fees
|
|
|
2,347
|
|
|
|
2,224
|
|
|
|
2,495
|
|
|
|
2,638
|
|
|
|
1,991
|
Gain on sales of securities, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19
|
|
|
|
-
|
Bank-owned life insurance income
|
|
|
377
|
|
|
|
446
|
|
|
|
374
|
|
|
|
380
|
|
|
|
386
|
Other income
|
|
|
1,275
|
|
|
|
606
|
|
|
|
530
|
|
|
|
554
|
|
|
|
530
|
Total non-interest income
|
|
|
7,121
|
|
|
|
6,238
|
|
|
|
6,518
|
|
|
|
6,960
|
|
|
|
6,558
|
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
10,375
|
|
|
|
10,989
|
|
|
|
9,524
|
|
|
|
9,617
|
|
|
|
10,127
|
Occupancy and equipment
|
|
|
2,925
|
|
|
|
3,073
|
|
|
|
2,866
|
|
|
|
2,700
|
|
|
|
2,829
|
Gain on sales of premises and equipment,net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
Outside services
|
|
|
581
|
|
|
|
560
|
|
|
|
780
|
|
|
|
907
|
|
|
|
716
|
Professional services
|
|
|
360
|
|
|
|
433
|
|
|
|
298
|
|
|
|
428
|
|
|
|
489
|
Communication
|
|
|
304
|
|
|
|
180
|
|
|
|
249
|
|
|
|
382
|
|
|
|
290
|
Amortization of intangible assets
|
|
|
207
|
|
|
|
207
|
|
|
|
209
|
|
|
|
212
|
|
|
|
211
|
Acquisition, conversion, and other expenses
|
|
|
214
|
|
|
|
335
|
|
|
|
(2,615
|
)
|
|
|
346
|
|
|
|
2,459
|
Other expenses
|
|
|
3,719
|
|
|
|
3,075
|
|
|
|
2,952
|
|
|
|
2,995
|
|
|
|
2,925
|
Total non-interest expense
|
|
|
18,685
|
|
|
|
18,852
|
|
|
|
14,263
|
|
|
|
17,586
|
|
|
|
20,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
10,658
|
|
|
|
9,749
|
|
|
|
15,154
|
|
|
|
12,192
|
|
|
|
9,585
|
Income tax expense
|
|
|
2,123
|
|
|
|
1,937
|
|
|
|
8,545
|
|
|
|
3,575
|
|
|
|
3,029
|
Net income
|
|
|
$
|
8,535
|
|
|
|
$
|
7,812
|
|
|
|
$
|
6,609
|
|
|
|
$
|
8,617
|
|
|
|
$
|
6,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.55
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.43
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.43
|
Diluted
|
|
|
$
|
0.55
|
|
|
|
$
|
0.50
|
|
|
|
$
|
0.43
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
15,482
|
|
|
|
15,448
|
|
|
|
15,437
|
|
|
|
15,420
|
|
|
|
15,393
|
Diluted
|
|
|
15,571
|
|
|
|
15,553
|
|
|
|
15,537
|
|
|
|
15,511
|
|
|
|
15,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAR HARBOR BANKSHARES
|
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized)
- UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
4.48
|
%
|
|
|
4.41
|
%
|
|
|
4.30
|
%
|
|
|
4.28
|
%
|
|
|
4.24
|
%
|
Commercial and industrial
|
|
|
4.69
|
|
|
|
4.41
|
|
|
|
4.77
|
|
|
|
4.84
|
|
|
|
4.77
|
|
Residential
|
|
|
3.88
|
|
|
|
3.87
|
|
|
|
3.78
|
|
|
|
3.79
|
|
|
|
3.83
|
|
Consumer
|
|
|
4.65
|
|
|
|
4.47
|
|
|
|
4.17
|
|
|
|
4.34
|
|
|
|
4.71
|
|
Total loans
|
|
|
4.25
|
|
|
|
4.16
|
|
|
|
4.12
|
|
|
|
4.13
|
|
|
|
4.14
|
|
Securities and other
|
|
|
3.18
|
|
|
|
3.16
|
|
|
|
3.06
|
|
|
|
3.13
|
|
|
|
3.19
|
|
Total earning assets
|
|
|
3.99
|
%
|
|
|
3.92
|
%
|
|
|
3.87
|
%
|
|
|
3.89
|
%
|
|
|
3.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
0.37
|
%
|
|
|
0.34
|
%
|
|
|
0.31
|
%
|
|
|
0.32
|
%
|
|
|
0.25
|
%
|
Savings
|
|
|
0.17
|
|
|
|
0.18
|
|
|
|
0.19
|
|
|
|
0.18
|
|
|
|
0.13
|
|
Money market
|
|
|
0.79
|
|
|
|
0.68
|
|
|
|
0.58
|
|
|
|
0.52
|
|
|
|
0.45
|
|
Time deposits
|
|
|
1.51
|
|
|
|
1.39
|
|
|
|
1.19
|
|
|
|
1.13
|
|
|
|
1.01
|
|
Total interest bearing deposits
|
|
|
0.90
|
|
|
|
0.82
|
|
|
|
0.70
|
|
|
|
0.66
|
|
|
|
0.56
|
|
Borrowings
|
|
|
2.07
|
|
|
|
1.80
|
|
|
|
1.62
|
|
|
|
1.66
|
|
|
|
1.41
|
|
Total interest-bearing liabilities
|
|
|
1.25
|
%
|
|
|
1.11
|
%
|
|
|
0.97
|
%
|
|
|
0.96
|
%
|
|
|
0.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
2.74
|
|
|
|
2.81
|
|
|
|
2.90
|
|
|
|
2.93
|
|
|
|
3.06
|
|
Net interest margin
|
|
|
2.91
|
|
|
|
2.97
|
|
|
|
3.04
|
|
|
|
3.06
|
|
|
|
3.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAR HARBOR BANKSHARES
|
AVERAGE BALANCES - UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
(in thousands)
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
$
|
824,356
|
|
|
|
$
|
819,531
|
|
|
|
$
|
783,730
|
|
|
|
$
|
764,770
|
|
|
|
$
|
767,669
|
|
Commercial and industrial
|
|
|
396,471
|
|
|
|
380,029
|
|
|
|
362,881
|
|
|
|
353,194
|
|
|
|
322,147
|
|
Residential
|
|
|
1,126,714
|
|
|
|
1,147,010
|
|
|
|
1,161,865
|
|
|
|
1,158,069
|
|
|
|
1,159,714
|
|
Consumer
|
|
|
119,570
|
|
|
|
121,467
|
|
|
|
125,109
|
|
|
|
126,138
|
|
|
|
127,611
|
|
Total loans (1)
|
|
|
2,467,111
|
|
|
|
2,468,037
|
|
|
|
2,433,585
|
|
|
|
2,402,171
|
|
|
|
2,377,141
|
|
Securities and other (2)
|
|
|
767,886
|
|
|
|
765,328
|
|
|
|
753,282
|
|
|
|
754,450
|
|
|
|
761,546
|
|
Total earning assets
|
|
|
3,234,997
|
|
|
|
3,233,365
|
|
|
|
3,186,867
|
|
|
|
3,156,621
|
|
|
|
3,138,687
|
|
Cash and due from banks
|
|
|
50,869
|
|
|
|
53,151
|
|
|
|
65,145
|
|
|
|
49,169
|
|
|
|
87,332
|
|
Allowance for loan losses
|
|
|
(13,107
|
)
|
|
|
(12,589
|
)
|
|
|
(12,202
|
)
|
|
|
(11,786
|
)
|
|
|
(11,292
|
)
|
Goodwill and other intangible assets
|
|
|
108,118
|
|
|
|
108,349
|
|
|
|
108,769
|
|
|
|
109,147
|
|
|
|
109,108
|
|
Other assets
|
|
|
131,522
|
|
|
|
129,525
|
|
|
|
144,359
|
|
|
|
149,394
|
|
|
|
110,129
|
|
Total assets
|
|
|
$
|
3,512,399
|
|
|
|
$
|
3,511,801
|
|
|
|
$
|
3,492,938
|
|
|
|
$
|
3,452,545
|
|
|
|
$
|
3,433,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
|
|
|
$
|
441,645
|
|
|
|
$
|
447,026
|
|
|
|
$
|
449,669
|
|
|
|
$
|
447,459
|
|
|
|
$
|
440,452
|
|
Savings
|
|
|
351,712
|
|
|
|
362,508
|
|
|
|
368,714
|
|
|
|
368,443
|
|
|
|
362,899
|
|
Money market
|
|
|
288,169
|
|
|
|
305,105
|
|
|
|
308,071
|
|
|
|
292,110
|
|
|
|
275,687
|
|
Time deposits
|
|
|
872,149
|
|
|
|
857,796
|
|
|
|
799,348
|
|
|
|
793,489
|
|
|
|
732,188
|
|
Total interest bearing deposits
|
|
|
1,953,675
|
|
|
|
1,972,435
|
|
|
|
1,925,802
|
|
|
|
1,901,501
|
|
|
|
1,811,226
|
|
Borrowings
|
|
|
836,295
|
|
|
|
819,576
|
|
|
|
803,469
|
|
|
|
812,938
|
|
|
|
941,789
|
|
Total interest-bearing liabilities
|
|
|
2,789,970
|
|
|
|
2,792,011
|
|
|
|
2,729,271
|
|
|
|
2,714,439
|
|
|
|
2,753,015
|
|
Non-interest-bearing demand deposits
|
|
|
339,374
|
|
|
|
339,349
|
|
|
|
376,066
|
|
|
|
354,470
|
|
|
|
320,503
|
|
Other liabilities
|
|
|
28,386
|
|
|
|
29,000
|
|
|
|
30,971
|
|
|
|
30,079
|
|
|
|
13,145
|
|
Total liabilities
|
|
|
3,157,730
|
|
|
|
3,160,360
|
|
|
|
3,136,308
|
|
|
|
3,098,988
|
|
|
|
3,086,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
354,669
|
|
|
|
351,441
|
|
|
|
356,630
|
|
|
|
353,557
|
|
|
|
347,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
3,512,399
|
|
|
|
$
|
3,511,801
|
|
|
|
$
|
3,492,938
|
|
|
|
$
|
3,452,545
|
|
|
|
$
|
3,433,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________
(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)
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accruing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
$
|
8,883
|
|
|
|
$
|
8,422
|
|
|
|
$
|
8,343
|
|
|
|
$
|
2,467
|
|
|
|
$
|
2,090
|
|
Commercial installment
|
|
|
2,411
|
|
|
|
2,304
|
|
|
|
1,209
|
|
|
|
236
|
|
|
|
270
|
|
Residential real estate
|
|
|
9,945
|
|
|
|
8,548
|
|
|
|
4,266
|
|
|
|
3,619
|
|
|
|
2,783
|
|
Consumer installment
|
|
|
707
|
|
|
|
1,065
|
|
|
|
500
|
|
|
|
496
|
|
|
|
160
|
|
Total non-accruing loans
|
|
|
21,946
|
|
|
|
20,339
|
|
|
|
14,318
|
|
|
|
6,818
|
|
|
|
5,303
|
|
Other real estate owned
|
|
|
129
|
|
|
|
216
|
|
|
|
122
|
|
|
|
122
|
|
|
|
122
|
|
Total non-performing assets
|
|
|
$
|
22,075
|
|
|
|
$
|
20,555
|
|
|
|
$
|
14,440
|
|
|
|
$
|
6,940
|
|
|
|
$
|
5,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-accruing loans/total loans
|
|
|
0.88
|
%
|
|
|
0.83
|
%
|
|
|
0.58
|
%
|
|
|
0.28
|
%
|
|
|
0.22
|
%
|
Total non-performing assets/total assets
|
|
|
0.62
|
|
|
|
0.59
|
|
|
|
0.41
|
|
|
|
0.20
|
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
$
|
12,679
|
|
|
|
$
|
12,325
|
|
|
|
$
|
11,950
|
|
|
|
$
|
11,442
|
|
|
|
$
|
10,884
|
|
Charged-off loans
|
|
|
(517
|
)
|
|
|
(461
|
)
|
|
|
(277
|
)
|
|
|
(297
|
)
|
|
|
(213
|
)
|
Recoveries on charged-off loans
|
|
|
158
|
|
|
|
20
|
|
|
|
55
|
|
|
|
145
|
|
|
|
35
|
|
Net loans charged-off
|
|
|
(359
|
)
|
|
|
(441
|
)
|
|
|
(222
|
)
|
|
|
(152
|
)
|
|
|
(178
|
)
|
Provision for loan losses
|
|
|
770
|
|
|
|
795
|
|
|
|
597
|
|
|
|
660
|
|
|
|
736
|
|
Balance at end of period
|
|
|
$
|
13,090
|
|
|
|
$
|
12,679
|
|
|
|
$
|
12,325
|
|
|
|
$
|
11,950
|
|
|
|
$
|
11,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses/total loans
|
|
|
0.53
|
%
|
|
|
0.51
|
%
|
|
|
0.50
|
%
|
|
|
0.49
|
%
|
|
|
0.48
|
%
|
Allowance for loan losses/non-accruing loans
|
|
|
60
|
|
|
|
62
|
|
|
|
86
|
|
|
|
175
|
|
|
|
216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOAN CHARGE-OFFS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
$
|
(92
|
)
|
|
|
$
|
(91
|
)
|
|
|
$
|
(92
|
)
|
|
|
$
|
(16
|
)
|
|
|
$
|
(6
|
)
|
Commercial installment
|
|
|
(54
|
)
|
|
|
(140
|
)
|
|
|
1
|
|
|
|
6
|
|
|
|
(138
|
)
|
Residential real estate
|
|
|
(64
|
)
|
|
|
1
|
|
|
|
-
|
|
|
|
(79
|
)
|
|
|
(13
|
)
|
Consumer installment
|
|
|
(149
|
)
|
|
|
(211
|
)
|
|
|
(131
|
)
|
|
|
(63
|
)
|
|
|
(21
|
)
|
Total, net
|
|
|
$
|
(359
|
)
|
|
|
$
|
(441
|
)
|
|
|
$
|
(222
|
)
|
|
|
$
|
(152
|
)
|
|
|
$
|
(178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (QTD annualized)/average loans
|
|
|
0.06
|
%
|
|
|
0.07
|
%
|
|
|
0.04
|
%
|
|
|
0.01
|
%
|
|
|
0.03
|
%
|
Net charge-offs (YTD annualized)/average loans
|
|
|
0.06
|
|
|
|
0.07
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 Days delinquent
|
|
|
0.14
|
%
|
|
|
0.24
|
%
|
|
|
0.37
|
%
|
|
|
0.35
|
%
|
|
|
0.55
|
%
|
90+ Days delinquent and still accruing
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
-
|
|
Total accruing delinquent loans
|
|
|
0.14
|
|
|
|
0.24
|
|
|
|
0.39
|
|
|
|
0.36
|
|
|
|
0.55
|
|
Non-accruing loans
|
|
|
0.88
|
|
|
|
0.83
|
|
|
|
0.58
|
|
|
|
0.28
|
|
|
|
0.22
|
|
Total delinquent and non-accruing loans
|
|
|
1.02
|
%
|
|
|
1.07
|
%
|
|
|
0.97
|
%
|
|
|
0.64
|
%
|
|
|
0.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BAR HARBOR BANKSHARES
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY
DATA- UNAUDITED
|
|
|
|
|
At or for the Quarters Ended
|
(in thousands)
|
|
|
|
Jun 30, 2018
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
Net income
|
|
|
|
$
|
8,535
|
|
|
|
$
|
7,812
|
|
|
|
$
|
6,609
|
|
|
|
$
|
8,617
|
|
|
|
$
|
6,556
|
|
Adj: Security Gains
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19
|
)
|
|
|
-
|
|
Adj: Gain on sale of fixed assets, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
Adj: Loss on other real estate owned
|
|
|
|
23
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Adj: Acquisition, conversion and other expenses
|
|
|
|
214
|
|
|
|
335
|
|
|
|
(2,615
|
)
|
|
|
346
|
|
|
|
2,459
|
|
Adj: Income taxes (1)
|
|
|
|
(57
|
)
|
|
|
(81
|
)
|
|
|
982
|
|
|
|
(122
|
)
|
|
|
(924
|
)
|
Adj: Tax reform charge
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,988
|
|
|
|
-
|
|
|
|
-
|
|
Total core income (2)
|
(A)
|
|
|
$
|
8,715
|
|
|
|
$
|
8,066
|
|
|
|
$
|
8,964
|
|
|
|
$
|
8,821
|
|
|
|
$
|
8,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-interest income
|
(B)
|
|
|
$22,992
|
|
|
$23,158
|
|
|
$23,496
|
|
|
$23,478
|
|
|
$23,809
|
Plus: Non-interest income
|
|
|
|
7,121
|
|
|
|
6,238
|
|
|
|
6,518
|
|
|
|
6,960
|
|
|
|
6,558
|
|
Total Revenue
|
|
|
|
30,113
|
|
|
|
29,396
|
|
|
|
30,014
|
|
|
|
30,438
|
|
|
|
30,367
|
|
Adj: Net security gains
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(19
|
)
|
|
|
-
|
|
Total core revenue (2)
|
(C)
|
|
|
$30,113
|
|
|
$29,396
|
|
|
$30,014
|
|
|
$30,419
|
|
|
$30,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense
|
|
|
|
18,685
|
|
|
|
18,852
|
|
|
|
14,263
|
|
|
|
17,586
|
|
|
|
20,046
|
|
Less: Gain on sale of fixed assets, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
Less: Loss on other real estate owned
|
|
|
|
(23
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Less: Acquisition, conversion and other expenses
|
|
|
|
(214
|
)
|
|
|
(335
|
)
|
|
|
2,615
|
|
|
|
(346
|
)
|
|
|
(2,459
|
)
|
Core non-interest expense (2)
|
(D)
|
|
|
$18,448
|
|
|
$18,517
|
|
|
$16,878
|
|
|
$17,241
|
|
|
$17,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average earning assets
|
(E)
|
|
|
$
|
3,235
|
|
|
|
$
|
3,233
|
|
|
|
$
|
3,187
|
|
|
|
$
|
3,157
|
|
|
|
$
|
3,139
|
|
Total average assets
|
(F)
|
|
|
3,512
|
|
|
|
3,512
|
|
|
|
3,493
|
|
|
|
3,453
|
|
|
|
3,434
|
|
Total average shareholders' equity
|
(G)
|
|
|
355
|
|
|
|
351
|
|
|
|
357
|
|
|
|
354
|
|
|
|
347
|
|
Total average tangible shareholders' equity (2) (3)
|
(H)
|
|
|
247
|
|
|
|
243
|
|
|
|
248
|
|
|
|
244
|
|
|
|
238
|
|
Total tangible shareholders' equity, period-end (2) (3)
|
(I)
|
|
|
248
|
|
|
|
244
|
|
|
|
246
|
|
|
|
244
|
|
|
|
238
|
|
Total tangible assets, period-end (2) (3)
|
(J)
|
|
|
3,433
|
|
|
|
3,403
|
|
|
|
3,457
|
|
|
|
3,367
|
|
|
|
3,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shares outstanding, period-end
|
(K)
|
|
|
15,496
|
|
|
|
15,459
|
|
|
|
15,443
|
|
|
|
15,432
|
|
|
|
15,407
|
|
Average diluted shares outstanding
|
(L)
|
|
|
15,571
|
|
|
|
15,553
|
|
|
|
15,537
|
|
|
|
15,511
|
|
|
|
15,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per share, diluted (2)
|
(A/L)
|
|
|
$
|
0.56
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.58
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.52
|
|
Tangible book value per share, period-end (2)
|
(I/K)
|
|
|
16.00
|
|
|
|
15.78
|
|
|
|
15.94
|
|
|
|
15.84
|
|
|
|
15.44
|
|
Securities adjustment, net of tax (1)
|
(M)
|
|
|
(12,594)
|
|
|
(10,237)
|
|
|
1,711
|
|
|
|
(1,155
|
)
|
|
|
(827
|
)
|
Tangible book value per share, excluding securities adjustment (2)
|
(I+M)/K
|
|
|
16.81
|
|
|
|
16.44
|
|
|
|
15.83
|
|
|
|
15.91
|
|
|
|
15.49
|
|
Total tangible shareholders' equity/total tangible assets (2)
|
(H/J)
|
|
|
7.22
|
|
|
|
7.17
|
|
|
|
7.12
|
|
|
|
7.26
|
|
|
|
7.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP return on assets
|
|
|
|
0.97
|
%
|
|
|
0.90
|
%
|
|
|
0.75
|
%
|
|
|
0.99
|
%
|
|
|
0.76
|
%
|
Core return on assets (2)
|
(A/F)
|
|
|
1.00
|
|
|
|
0.93
|
|
|
|
1.02
|
|
|
|
1.01
|
|
|
|
0.94
|
|
GAAP return on equity
|
|
|
|
9.65
|
|
|
|
9.01
|
|
|
|
7.35
|
|
|
|
9.67
|
|
|
|
7.55
|
|
Core return on equity (2)
|
(A/G)
|
|
|
9.86
|
|
|
|
9.31
|
|
|
|
9.97
|
|
|
|
9.90
|
|
|
|
9.32
|
|
Core return on tangible equity (2) (4)
|
(A/I)
|
|
|
14.43
|
|
|
|
13.72
|
|
|
|
14.56
|
|
|
|
14.53
|
|
|
|
13.81
|
|
Efficiency ratio (2) (5)
|
(D-O-Q)/(C+N)
|
|
|
58.83
|
|
|
|
60.44
|
|
|
|
53.02
|
|
|
|
53.53
|
|
|
|
54.57
|
|
Net interest margin
|
(B+P)/E
|
|
|
2.91
|
|
|
|
2.97
|
|
|
|
3.04
|
|
|
|
3.06
|
|
|
|
3.16
|
|
Supplementary data (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment for efficiency ratio
|
(N)
|
|
|
$
|
622
|
|
|
|
$
|
645
|
|
|
|
$
|
1,122
|
|
|
|
$
|
1,107
|
|
|
|
$
|
1,185
|
|
Franchise taxes included in non-interest expense
|
(O)
|
|
|
159
|
|
|
|
152
|
|
|
|
161
|
|
|
|
154
|
|
|
|
158
|
|
Tax equivalent adjustment for net interest margin
|
(P)
|
|
|
502
|
|
|
|
503
|
|
|
|
897
|
|
|
|
878
|
|
|
|
936
|
|
Intangible amortization
|
(Q)
|
|
|
207
|
|
|
|
207
|
|
|
|
209
|
|
|
|
212
|
|
|
|
211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________
(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/20180719005925/en/
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