Bar Harbor Bankshares Reports Record Fourth Quarter Revenues

BAR HARBOR, MAINE / ACCESSWIRE / January 28, 2020 / Bar Harbor Bankshares (NYSE American: BHB) reported fourth quarter 2019 net income of $4.2 million, or $0.27 per share, compared to $5.0 million, or $0.32 per share, in the prior quarter and $7.6 million or $0.49 per share in the fourth quarter of 2018. The non-GAAP measure of core earnings in the fourth quarter 2019 increased 20% to $8.8 million, or $0.56 per share, from $7.3 million, or $0.47 per share in the prior quarter and decreased from $9.2 million, or $0.59 per share in the fourth quarter of 2018. On October 25, 2019, the Company completed the previously announced acquisition of eight branches within Central Maine and closed five branches effective December 31, 2019, as part of its strategic review. During the quarter the Company recorded non-core charges totaling $0.29 per share after-tax, primarily related to the one-time costs associated with the acquisition and balance sheet optimization initiatives that were part of the strategic review.

FOURTH QUARTER FINANCIAL HIGHLIGHTS (compared to prior quarter, unless otherwise noted):

  • 98% loan to deposit ratio, improved from 103%
  • 6% increase in total revenue to $31.9 million
  • 20 basis point expansion in net interest margin to 2.95%
  • 0.44% non-performing loans to total loans, down from 0.65%
  • Called higher cost subordinated debt and replaced with upsized issuance

President and Chief Executive Officer, Curtis C. Simard stated, "We finished the year with what I can only classify as judicious and efficient execution on all fronts. This includes repositioning the Company's balance sheet, expanding our footprint within Central Maine and affirming our profitability strategies. Our strong performance and the recalibration of the balance sheet increased core return on assets to 0.96% for the quarter. In the fourth quarter, we achieved record revenues from higher interest and fee income, as well as lower cost of funds resulting from the expansion of our franchise."

Mr. Simard continued, "We completed several initiatives in the fourth quarter that reduced our cost of funds while improving interest rate risk and overall capital positions. Following the completion of the Central Maine branch acquisition, the Company used the net deposit proceeds to extinguish approximately $140 million of higher cost FHLB borrowings. Shortly thereafter, given the change in our balance sheet profile and funding needs, we terminated $90 million in interest rate caps related to rolling three-month FHLB borrowings. The losses from the caps were reclassified from other comprehensive income to earnings, with no further dilution to equity. We also completed a $40 million subordinated debt issuance which replaced $22 million of higher cost subordinated notes called earlier in the quarter. The offering was more than two times oversubscribed, driven by one of the most effective executions for 2019, and presented an opportunity to upsize the deal. It's this level of interest in our Company and belief in our long-term strategy that will allow us to continue building franchise value for our shareholders."

Mr. Simard went on to say, "Our loan origination teams continue to adhere to our disciplined underwriting practices and selectively pursue those opportunities that are accretive to our profitability metrics. This resulted in originations that kept relative pace with loan payoffs as we remixed the balance sheet and curtailed growth in lower yielding assets. In addition we exited certain non-performing loans further improving our non-performing loans to total loans to 0.44%. Implementation of all of these strategies, along with additional investment remixes that started in the third quarter resulted in net interest margin expanding 20 basis points in the fourth quarter, despite the current rate environment."

Mr. Simard concluded, "Our efforts these past few quarters have positioned us well for 2020 and will move us towards our stated goals of higher quality earnings and capital growth with continued focus on our customers and relationships which are driving current momentum."

FINANCIAL CONDITION

Total assets increased in the fourth quarter 2019 by $56.7 million to $3.7 billion primarily due to loans, goodwill and other intangible assets recorded from the branch acquisition. Securities available for sale declined $12.4 million as the Company both de-levered and remixed the investment portfolio as part of the strategic review. Loans in the fourth quarter grew by $63.8 million as acquired balances of $100.8 million were recorded and principally offset by run-off in jumbo residential loans of $14.2 million and two commercial relationships of $17.2 million that paid-off during the quarter. Mortgage growth on-balance sheet was curtailed as the secondary market platform was leveraged for fee income given the current rate environment. Non-maturity deposits increased by $172.2 million in the quarter including acquired balances, net of any year-end seasonal dips in demand deposit balances. Cash proceeds received from the acquisition were used to pay off approximately $140.0 million of higher cost FHLB borrowings during the quarter. Longer term subordinated borrowings increased by $17.0 million as existing notes at higher rates were called and opportunistically replaced with an upsized $40.0 million private placement issued in November 2019. The loan to deposit ratio improved to 98% in the fourth quarter 2019 compared to 103% in the prior quarter as a result of the branch acquisition.

Non-accruing loans in the fourth quarter 2019 decreased $5.1 million primarily due to one commercial real estate relationship that was settled with a $530 thousand recovery. The settlement also contributed to the improvement of the non-performing loans to total loans ratio to 0.44% from 0.65% in the prior quarter. The increase in 30-day past due accounts for the quarter is attributable to the payment schedules and calendar dates.

The Company's book value per share was $25.48 at year-end 2019 compared with $25.37 at the end of the third quarter 2019 and $23.87 at year-end 2018. Tangible book value per share was $17.30 compared to $18.49 at the end of the third quarter and $16.94 at year-end 2018, with the decrease during the quarter reflecting the goodwill and intangibles recorded from the branch acquisition. Excluding the impact from the acquisition, tangible book value per share increased to $18.62; an increase of 10% annualized from the third quarter 2019 and for the year.

RESULTS OF OPERATIONS

Net income in the fourth quarter 2019 was $4.2 million, or $0.27 per share, compared to $5.0 million, or $0.32 per share, in the prior quarter and $7.6 million, or $0.49 per share in the fourth quarter 2018. The non-GAAP measure of core earnings in the fourth quarter 2019 was $8.8 million or $0.56 per share, up 20% from $7.3 million or $0.47 per share in the previous quarter and down from $9.2 million or $0.59 per share in the fourth quarter 2018. Results in the fourth quarter included operations from the branch acquisition as of the October 25, 2019 effective date. Total revenue comprising of net interest income and total non-interest income increased to $31.9 million in the fourth quarter 2019 as compared to $30.1 million in the previous quarter and $29.7 million in the fourth quarter of 2018. Net interest income grew $1.7 million during the quarter primarily as a result of leveraging the low cost of deposits acquired to repay higher cost of funds. Net interest margin in the fourth quarter 2019 expanded 20 basis points due to the strategic initiatives previously discussed. Execution of these strategies improved cost of borrowings by 32 basis points on a quarter-over-quarter basis.

Non-interest income was $7.8 million compared to $7.6 million for the third quarter 2019 and $7.4 million in the fourth quarter of 2018. The increase in the quarter was driven by trust and investment management fee income and customer services fees associated from the branch acquisition.

Non-interest expense increased to $26.8 million in the fourth quarter 2019 from $23.4 million in the prior quarter and $20.1 million in the fourth quarter of 2018. The increase in the quarter is primarily a result of a $700 thousand increase in occupancy costs related to the acquired properties and other costs associated with the acquisition and strategic review. The $3.2 million loss associated with the termination of the interest rate caps was reclassified from shareholders' equity and included in acquisition, conversion and other expenses. The prior quarter included $2.2 million of branch optimization costs.

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.barharbor.bank.

FORWARD LOOKING STATEMENTS

Certain statements under the heading "FOURTH 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 gains/losses on securities, premises, equipment and other real estate owned, 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.

###

CONTACTS

Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314

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

  

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

PER SHARE DATA

          

Net earnings, diluted

 

$

0.27

  

$

0.32

  

$

0.39

  

$

0.47

  

$

0.49

 

Core earnings, diluted (1) (2)

 

0.56

  

0.47

  

0.41

  

0.47

  

0.59

 

Total book value

 

25.48

  

25.37

  

25.13

  

24.54

  

23.87

 

Tangible book value (2)

 

17.30

  

18.49

  

18.23

  

17.63

  

16.94

 

Market price at period end

 

25.39

  

24.93

  

26.59

  

25.87

  

22.43

 

Dividends

 

0.22

  

0.22

  

0.22

  

0.20

  

0.20

 
           

PERFORMANCE RATIOS (3)

          

Return on assets

 

0.46

%

 

0.55

%

 

0.67

%

 

0.83

%

 

0.85

%

Core return on assets (1) (2)

 

0.96

  

0.80

  

0.70

  

0.83

  

1.03

 

Return on equity

 

4.21

  

5.04

  

6.33

  

7.83

  

8.31

 

Core return on equity (1) (2)

 

8.81

  

7.36

  

6.57

  

7.83

  

10.01

 

Core return on tangible equity (1) (2)

 

12.66

  

10.31

  

9.30

  

11.19

  

14.46

 

Net interest margin, fully taxable equivalent (FTE) (2) (4)

 

2.95

  

2.75

  

2.65

  

2.77

  

2.78

 

Net interest margin (FTE), excluding purchased loan accretion (2) (4)

2.88

  

2.65

  

2.56

  

2.67

  

2.70

 

Efficiency ratio (2)

 

62.56

  

65.02

  

68.48

  

63.94

  

59.91

 
           

ORGANIC GROWTH (Year-to-date, annualized) (2) (6)

          

Total commercial loans

 

6.0

%

 

10.5

%

 

10.1

%

 

(3.3

%)

 

1.4

%

Total loans

 

2.0

  

4.7

  

7.1

  

5.9

  

0.2

 

Total deposits

 

(1.8

)

 

0.6

  

(0.1

)

 

(2.8

)

 

5.6

 
           

FINANCIAL DATA (In millions)

          

Total assets

 

$

3,669

  

$

3,612

  

$

3,688

  

$

3,629

  

$

3,608

 

Total earning assets (5)

 

3,336

  

3,270

  

3,355

  

3,312

  

3,263

 

Total investments

 

684

  

703

  

784

  

782

  

761

 

Total loans

 

2,641

  

2,577

  

2,578

  

2,527

  

2,490

 

Allowance for loan losses

 

15

  

15

  

15

  

14

  

14

 

Total goodwill and intangible assets

 

127

  

107

  

107

  

107

  

108

 

Total deposits

 

2,696

  

2,494

  

2,481

  

2,466

  

2,483

 

Total shareholders' equity

 

396

  

394

  

391

  

381

  

371

 

Net income

 

4

  

5

  

6

  

7

  

8

 

Core earnings (1) (2)

 

9

  

7

  

6

  

7

  

9

 
           

ASSET QUALITY AND CONDITION RATIOS

          

Net charge-offs (current quarter annualized)/average loans

 

0.08

%

 

0.02

%

 

-

%

 

0.03

%

 

0.03

%

Allowance for loan losses/total loans

 

0.58

  

0.60

  

0.57

  

0.55

  

0.56

 

Loans/deposits

 

98

  

103

  

104

  

102

  

100

 

Shareholders' equity to total assets

 

10.80

  

10.92

  

10.59

  

10.50

  

10.27

 

Tangible shareholders' equity to tangible assets

 

7.60

  

8.20

  

7.92

  

7.77

  

7.51

 

_________________

(1) Core measurements are non-GAAP financial measures that are adjusted to exclude net non-operating charges primarily related to acquisitions, restructurings, system conversions, loss on debt extinguishment 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.
(6) Assets acquired from eight branches purchased from People's United Bank, National Association as of October 25, 2019, were excluded from calculation.

BAR HARBOR BANKSHARES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

           

(in thousands)

 

Dec 31, 2019

 

Sep 30, 2019

 

Jun 30, 2019

 

Mar 31, 2019

 

Dec 31, 2018

Assets

          

Cash and due from banks

 

$

37,261

  

$

50,032

  

$

42,657

  

$

37,504

  

$

35,208

 

Interest-bearing deposits with the Federal Reserve Bank

 

19,649

  

21,561

  

17,203

  

16,599

  

63,546

 

Total cash and cash equivalents

 

56,910

  

71,593

  

59,860

  

54,103

  

98,754

 

Securities available for sale, at fair value

 

663,230

  

675,675

  

748,560

  

747,235

  

725,837

 

Federal Home Loan Bank stock

 

20,679

  

27,469

  

35,220

  

35,107

  

35,659

 

Total securities

 

683,909

  

703,144

  

783,780

  

782,342

  

761,496

 

Commercial real estate

 

930,661

  

923,773

  

881,479

  

821,567

  

826,699

 

Commercial and industrial

 

423,291

  

402,706

  

416,725

  

409,937

  

404,870

 

Residential real estate

 

1,151,857

  

1,143,452

  

1,167,759

  

1,184,053

  

1,144,698

 

Consumer

 

135,283

  

107,375

  

112,275

  

111,402

  

113,960

 

Total loans

 

2,641,092

  

2,577,306

  

2,578,238

  

2,526,959

  

2,490,227

 

Less: Allowance for loan losses

 

(15,353

)

 

(15,353

)

 

(14,572

)

 

(13,997

)

 

(13,866

)

Net loans

 

2,625,739

  

2,561,953

  

2,563,666

  

2,512,962

  

2,476,361

 
           

Premises and equipment, net

 

51,205

  

47,644

  

50,230

  

49,661

  

48,804

 

Other real estate owned

 

2,236

  

2,455

  

2,351

  

2,351

  

2,351

 

Goodwill

 

118,649

  

100,085

  

100,085

  

100,085

  

100,085

 

Other intangible assets

 

8,641

  

6,879

  

7,072

  

7,266

  

7,459

 

Cash surrender value of bank-owned life insurance

 

75,863

  

75,368

  

74,871

  

74,352

  

73,810

 

Deferred tax asset, net

 

3,865

  

4,988

  

5,649

  

7,632

  

9,514

 

Other assets

 

42,111

  

38,365

  

40,071

  

38,441

  

29,853

 

Total assets

 

$

3,669,128

  

$

3,612,474

  

$

3,687,635

  

$

3,629,195

  

$

3,608,487

 
           

Liabilities and shareholders' equity

          

Demand and other non-interest bearing deposits

 

$

414,534

  

$

380,707

  

$

354,125

  

$

342,030

  

$

370,889

 

NOW deposits

 

575,809

  

490,315

  

472,576

  

470,277

  

484,717

 

Savings deposits

 

388,683

  

360,570

  

352,657

  

346,813

  

358,888

 

Money market deposits

 

384,090

  

359,328

  

305,506

  

349,833

  

335,951

 

Time deposits

 

932,635

  

902,665

  

996,512

  

956,818

  

932,793

 

Total deposits

 

2,695,751

  

2,493,585

  

2,481,376

  

2,465,771

  

2,483,238

 
           

Senior borrowings

 

471,396

  

641,819

  

733,084

  

703,283

  

680,823

 

Subordinated borrowings

 

59,920

  

42,928

  

42,943

  

42,958

  

42,973

 

Total borrowings

 

531,316

  

684,747

  

776,027

  

746,241

  

723,796

 
           

Other liabilities

 

45,654

  

39,683

  

39,670

  

36,160

  

30,874

 

Total liabilities

 

3,272,721

  

3,218,015

  

3,297,073

  

3,248,172

  

3,237,908

 
           

Total common shareholders' equity

 

396,407

  

394,459

  

390,562

  

381,023

  

370,579

 

Total liabilities and shareholders' equity

 

$

3,669,128

  

$

3,612,474

  

$

3,687,635

  

$

3,629,195

  

$

3,608,487

 
           

Net shares outstanding

 

15,558

  

15,549

  

15,544

  

15,524

  

15,523

 
 

BAR HARBOR BANKSHARES

CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED

 

LOAN ANALYSIS

              

Organic Annualized Growth %

              

(in thousands)

 

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

 

Acquired(1)

 

Quarter End

 

Year to Date

Commercial real estate

 

$

930,661

  

$

923,773

  

$

881,479

  

$

821,567

  

$

826,699

  

$

25,054

  

(7.9

)%

 

9.5

%

Commercial and industrial

 

318,988

  

301,590

  

312,029

  

305,185

  

309,544

  

19,739

  

(3.1

)

 

(3.3

)

Total commercial loans

 

1,249,649

  

1,225,363

  

1,193,508

  

1,126,752

  

1,136,243

  

44,793

  

(6.7

)

 

6.0

 

Residential real estate

 

1,151,857

  

1,143,452

  

1,167,759

  

1,184,053

  

1,144,698

  

23,716

  

(5.4

)

 

(1.4

)

Consumer

 

135,283

  

107,375

  

112,275

  

111,402

  

113,960

  

29,530

  

(6.0

)

 

(7.2

)

Tax exempt and other

 

104,303

  

101,116

  

104,696

  

104,752

  

95,326

  

2,753

  

1.7

  

6.5

 

Total loans

 

$

2,641,092

  

$

2,577,306

  

$

2,578,238

  

$

2,526,959

  

$

2,490,227

  

$

100,792

  

(5.7

)%

 

2.0

%

(1) Acquired loans from eight branches purchased from People's United Bank, National Association as of October 25, 2019.

DEPOSIT ANALYSIS

              

Organic Annualized Growth %

              

(in thousands)

 

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

 

Acquired(1)

 

Quarter End

 

Year to Date

Demand

 

$

414,534

  

$

380,707

  

$

354,125

  

$

342,030

  

$

370,889

  

$

51,933

  

(19.0

)%

 

(2.2

)%

NOW

 

575,809

  

490,315

  

472,576

  

470,277

  

484,717

  

85,980

  

(0.4

)

 

1.1

 

Savings

 

388,683

  

360,570

  

352,657

  

346,813

  

358,888

  

25,841

  

2.5

  

1.1

 

Money market

 

384,090

  

359,328

  

305,506

  

349,833

  

335,951

  

26,399

  

(1.8

)

 

6.5

 

Total non-maturity deposits

 

1,763,116

  

1,590,920

  

1,484,864

  

1,508,953

  

1,550,445

  

190,153

  

(4.5

)

 

1.5

 

Total time deposits

 

932,635

  

902,665

  

996,512

  

956,818

  

932,793

  

68,240

  

(17.0

)

 

(7.3

)

Total deposits

 

$

2,695,751

  

$

2,493,585

  

$

2,481,376

  

$

2,465,771

  

$

2,483,238

  

$

258,393

  

(9.0

)%

 

(1.8

)%

(1) Acquired deposits from eight branches purchased from People's United Bank, National Association as of October 25, 2019.

BAR HARBOR BANKSHARES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

         
  

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

(in thousands, except per share data)

 

2019

 

2018

 

2019

 

2018

Interest and dividend income

        

Loans

 

$

28,361

  

$

26,743

  

$

111,042

  

$

104,015

 

Securities and other

 

5,756

  

6,029

  

24,349

  

23,436

 

Total interest and dividend income

 

34,117

  

32,772

  

135,391

  

127,451

 

Interest expense

        

Deposits

 

6,698

  

5,653

  

27,034

  

19,521

 

Borrowings

 

3,315

  

4,855

  

18,547

  

17,047

 

Total interest expense

 

10,013

  

10,508

  

45,581

  

36,568

 

Net interest income

 

24,104

  

22,264

  

89,810

  

90,883

 

Provision for loan losses

 

538

  

572

  

2,317

  

2,780

 

Net interest income after provision for loan losses

 

23,566

  

21,692

  

87,493

  

88,103

 

Non-interest income

        

Trust and investment management fee income

 

3,227

  

2,949

  

12,063

  

11,985

 

Customer service fees

 

2,791

  

2,477

  

10,127

  

9,538

 

Gain (loss) on sales of securities, net

 

80

  

(924

)

 

237

  

(924

)

Bank-owned life insurance income

 

495

  

493

  

2,053

  

1,821

 

Customer derivative income

 

475

  

315

  

2,028

  

860

 

Other income

 

738

  

2,140

  

2,561

  

4,655

 

Total non-interest income

 

7,806

  

7,450

  

29,069

  

27,935

 

Non-interest expense

        

Salaries and employee benefits

 

11,432

  

9,269

  

45,000

  

40,964

 

Occupancy and equipment

 

4,113

  

3,022

  

14,214

  

12,386

 

(Loss) gain on sales of premises and equipment, net

 

(3

)

 

-

  

18

  

-

 

Outside services

 

540

  

811

  

1,818

  

2,408

 

Professional services

 

370

  

458

  

2,191

  

1,474

 

Communication

 

114

  

103

  

821

  

804

 

Marketing

 

453

  

536

  

1,872

  

1,743

 

Amortization of intangible assets

 

240

  

207

  

861

  

828

 

Loss on debt extinguishment

 

1,096

  

-

  

1,096

  

-

 

Acquisition, conversion and other expenses

 

4,998

  

1,109

  

8,317

  

1,728

 

Other expenses

 

3,450

  

4,581

  

13,525

  

13,204

 

Total non-interest expense

 

26,803

  

20,096

  

89,733

  

75,539

 

Income before income taxes

 

4,569

  

9,046

  

26,829

  

40,499

 

Income tax expense

 

362

  

1,426

  

4,209

  

7,562

 

Net income

 

$

4,207

  

$

7,620

  

$

22,620

  

$

32,937

 
         

Earnings per share:

        

Basic

 

$

0.27

  

$

0.49

  

$

1.46

  

$

2.13

 

Diluted

 

0.27

  

0.49

  

1.45

  

2.12

 
         

Weighted average shares outstanding:

        

Basic

 

15,554

  

15,516

  

15,541

  

15,488

 

Diluted

 

15,602

  

15,574

  

15,587

  

15,564

 
 

BAR HARBOR BANKSHARES

CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED

           

(in thousands, except per share data)

 

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

Interest and dividend income

          

Loans

 

$

28,361

  

$

28,157

  

$

27,660

  

$

26,864

  

$

26,743

 

Securities and other

 

5,756

  

6,105

  

6,125

  

6,363

  

6,029

 

Total interest and dividend income

 

34,117

  

34,262

  

33,785

  

33,227

  

32,772

 

Interest expense

          

Deposits

 

6,698

  

7,143

  

6,886

  

6,307

  

5,653

 

Borrowings

 

3,315

  

4,674

  

5,403

  

5,155

  

4,855

 

Total interest expense

 

10,013

  

11,817

  

12,289

  

11,462

  

10,508

 

Net interest income

 

24,104

  

22,445

  

21,496

  

21,765

  

22,264

 

Provision for loan losses

 

538

  

893

  

562

  

324

  

572

 

Net interest income after provision for loan losses

 

23,566

  

21,552

  

20,934

  

21,441

  

21,692

 

Non-interest income

          

Trust and investment management fee income

 

3,227

  

3,013

  

3,066

  

2,757

  

2,949

 

Customer service fees

 

2,791

  

2,553

  

2,618

  

2,165

  

2,477

 

Gain (loss) on sales of securities, net

 

80

  

157

  

-

  

-

  

(924

)

Bank-owned life insurance income

 

495

  

497

  

519

  

542

  

493

 

Customer derivative income

 

475

  

828

  

696

  

29

  

315

 

Other income

 

738

  

595

  

554

  

674

  

2,140

 

Total non-interest income

 

7,806

  

7,643

  

7,453

  

6,167

  

7,450

 

Non-interest expense

          

Salaries and employee benefits

 

11,432

  

11,364

  

11,685

  

10,519

  

9,269

 

Occupancy and equipment

 

4,113

  

3,415

  

3,300

  

3,386

  

3,022

 

(Loss) gain on sales of premises and equipment, net

 

(3

)

 

-

  

21

  

-

  

-

 

Outside services

 

540

  

424

  

443

  

411

  

811

 

Professional services

 

370

  

707

  

570

  

544

  

458

 

Communication

 

114

  

189

  

283

  

235

  

103

 

Marketing

 

453

  

613

  

511

  

295

  

536

 

Amortization of intangible assets

 

240

  

207

  

207

  

207

  

207

 

Loss on debt extinguishment

 

1,096

  

-

  

-

  

-

  

-

 

Acquisition, conversion and other expenses

 

4,998

  

3,039

  

280

  

-

  

1,109

 

Other expenses

 

3,450

  

3,442

  

3,606

  

3,027

  

4,581

 

Total non-interest expense

 

26,803

  

23,400

  

20,906

  

18,624

  

20,096

 

Income before income taxes

 

4,569

  

5,795

  

7,481

  

8,984

  

9,046

 

Income tax expense

 

362

  

780

  

1,364

  

1,703

  

1,426

 

Net income

 

$

4,207

  

$

5,015

  

$

6,117

  

$

7,281

  

$

7,620

 
           

Earnings per share:

          

Basic

 

$

0.27

  

$

0.32

  

$

0.39

  

$

0.47

  

$

0.49

 

Diluted

 

0.27

  

0.32

  

0.39

  

0.47

  

0.49

 
           

Weighted average shares outstanding:

          

Basic

 

15,554

  

15,547

  

15,538

  

15,523

  

15,516

 

Diluted

 

15,602

  

15,581

  

15,586

  

15,587

  

15,574

 
 

BAR HARBOR BANKSHARES

AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED

           
  

Quarters Ended

  

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

Earning assets

          

Commercial real estate

 

4.69

%

 

4.74

%

 

4.74

%

 

4.78

%

 

4.71

%

Commercial and industrial

 

4.58

  

4.78

  

4.75

  

4.79

  

4.61

 

Residential

 

3.89

  

3.88

  

3.93

  

3.94

  

3.83

 

Consumer

 

4.84

  

5.13

  

5.21

  

5.25

  

5.07

 

Total loans

 

4.33

  

4.38

  

4.39

  

4.42

  

4.31

 

Securities and other

 

3.49

  

3.44

  

3.29

  

3.47

  

3.28

 

Total earning assets

 

4.15

%

 

4.17

%

 

4.13

%

 

4.19

%

 

4.07

%

           

Funding liabilities

          

NOW

 

0.44

%

 

0.51

%

 

0.49

%

 

0.51

%

 

0.50

%

Savings

 

0.20

  

0.21

  

0.21

  

0.19

  

0.18

 

Money market

 

1.17

  

1.37

  

1.44

  

1.38

  

0.93

 

Time deposits

 

2.06

  

2.16

  

2.11

  

2.00

  

1.85

 

Total interest-bearing deposits

 

1.19

  

1.33

  

1.32

  

1.25

  

1.12

 

Borrowings

 

2.30

  

2.62

  

2.74

  

2.74

  

2.53

 

Total interest-bearing liabilities

 

1.42

%

 

1.65

%

 

1.71

%

 

1.66

%

 

1.50

%

           

Net interest spread

 

2.74

  

2.52

  

2.42

  

2.53

  

2.57

 

Net interest margin

 

2.95

  

2.75

  

2.65

  

2.77

  

2.78

 
 

BAR HARBOR BANKSHARES

AVERAGE BALANCES - UNAUDITED

           
  

Quarters Ended

(in thousands)

 

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

Assets

          

Commercial real estate

 

$

928,445

  

$

900,568

  

$

846,921

  

$

825,596

  

$

836,813

 

Commercial and industrial

 

412,595

  

410,453

  

416,000

  

405,107

  

393,396

 

Residential real estate

 

1,156,215

  

1,154,552

  

1,176,583

  

1,143,862

  

1,137,493

 

Consumer

 

127,425

  

109,562

  

111,641

  

113,060

  

114,960

 

Total loans (1)

 

2,624,680

  

2,575,135

  

2,551,145

  

2,487,625

  

2,482,662

 

Securities and other (2)

 

683,939

  

732,925

  

779,072

  

777,458

  

762,901

 

Total earning assets

 

3,308,619

  

3,308,060

  

3,330,217

  

3,265,083

  

3,245,563

 

Cash and due from banks

 

67,642

  

62,999

  

52,728

  

50,298

  

68,904

 

Allowance for loan losses

 

(15,657

)

 

(14,965

)

 

(14,459

)

 

(14,119

)

 

(13,922

)

Goodwill and other intangible assets

 

114,537

  

107,058

  

107,252

  

107,446

  

107,657

 

Other assets

 

179,512

  

178,804

  

170,340

  

152,332

  

138,074

 

Total assets

 

$

3,654,653

  

$

3,641,956

  

$

3,646,078

  

$

3,561,040

  

$

3,546,276

 
           

Liabilities and shareholders' equity

          

NOW

 

$

551,335

  

$

487,506

  

$

459,572

  

$

468,392

  

$

475,449

 

Savings

 

378,997

  

359,242

  

352,733

  

346,707

  

346,905

 

Money market

 

379,361

  

338,013

  

338,095

  

335,882

  

272,612

 

Time deposits

 

918,528

  

947,949

  

935,616

  

894,160

  

914,674

 

Total interest bearing deposits

 

2,228,221

  

2,132,710

  

2,086,016

  

2,045,141

  

2,009,640

 

Borrowings

 

571,936

  

708,222

  

789,953

  

761,885

  

761,781

 

Total interest-bearing liabilities

 

2,800,157

  

2,840,932

  

2,875,969

  

2,807,026

  

2,771,421

 

Non-interest-bearing demand deposits

 

418,324

  

368,100

  

349,322

  

351,362

  

384,636

 

Other liabilities

 

40,136

  

37,975

  

33,107

  

25,520

  

26,569

 

Total liabilities

 

3,258,617

  

3,247,007

  

3,258,398

  

3,183,908

  

3,182,626

 
           

Total shareholders' equity

 

396,036

  

394,949

  

387,680

  

377,132

  

363,650

 
           

Total liabilities and shareholders' equity

 

$

3,654,653

  

$

3,641,956

  

$

3,646,078

  

$

3,561,040

  

$

3,546,276

 

_____________________________________

  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)

 

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

NON-PERFORMING ASSETS

          

Non-accruing loans:

          

Commercial real estate

 

$

3,489

  

$

8,519

  

$

7,048

  

$

7,516

  

$

8,156

 

Commercial installment

 

1,836

  

2,077

  

2,081

  

2,192

  

2,331

 

Residential real estate

 

5,335

  

5,340

  

5,965

  

6,326

  

7,210

 

Consumer installment

 

890

  

743

  

861

  

565

  

538

 

Total non-accruing loans

 

11,550

  

16,679

  

15,955

  

16,599

  

18,235

 

Other real estate owned

 

2,236

  

2,455

  

2,351

  

2,351

  

2,351

 

Total non-performing assets

 

$

13,786

  

$

19,134

  

$

18,306

  

$

18,950

  

$

20,586

 
           

Total non-accruing loans/total loans

 

0.44

%

 

0.65

%

 

0.62

%

 

0.66

%

 

0.73

%

Total non-performing assets/total assets

 

0.38

  

0.53

  

0.50

  

0.52

  

0.57

 
           

PROVISION AND ALLOWANCE FOR LOAN LOSSES

          

Balance at beginning of period

 

$

15,353

  

$

14,572

  

$

13,997

  

$

13,866

  

$

13,487

 

Charged-off loans

 

(603

)

 

(215

)

 

(104

)

 

(231

)

 

(631

)

Recoveries on charged-off loans

 

65

  

103

  

117

  

38

  

438

 

Net loans charged-off

 

(538

)

 

(112

)

 

13

  

(193

)

 

(193

)

Provision for loan losses

 

538

  

893

  

562

  

324

  

572

 

Balance at end of period

 

$

15,353

  

$

15,353

  

$

14,572

  

$

13,997

  

$

13,866

 
           

Allowance for loan losses/total loans

 

0.58

%

 

0.60

%

 

0.57

%

 

0.55

%

 

0.56

%

Allowance for loan losses/non-accruing loans

 

133

  

92

  

91

  

84

  

76

 
           

NET LOAN CHARGE-OFFS

          

Commercial real estate

 

$

(92

)

 

$

1

  

$

114

  

$

(41

)

 

$

(25

)

Commercial installment

 

(331

)

 

62

  

(12

)

 

(15

)

 

53

 

Residential real estate

 

(16

)

 

(124

)

 

(65

)

 

(86

)

 

(31

)

Consumer installment

 

(99

)

 

(51

)

 

(24

)

 

(51

)

 

(190

)

Total, net

 

$

(538

)

 

$

(112

)

 

$

13

  

$

(193

)

 

$

(193

)

           

Net charge-offs (QTD annualized)/average loans

 

0.08

%

 

0.02

%

 

0.03

%

 

0.03

%

 

0.03

%

Net charge-offs (YTD annualized)/average loans

 

0.03

  

0.02

  

0.01

  

0.03

  

0.05

 
           

DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS

          

30-89 Days delinquent

 

0.74

%

 

0.18

%

 

0.29

%

 

0.21

%

 

0.38

%

90+ Days delinquent and still accruing

 

0.01

  

0.03

  

-

  

-

  

0.01

 

Total accruing delinquent loans

 

0.75

  

0.21

  

0.29

  

0.21

  

0.39

 

Non-accruing loans

 

0.44

  

0.65

  

0.62

  

0.66

  

0.73

 

Total delinquent and non-accruing loans

 

1.19

%

 

0.86

%

 

0.91

%

 

0.87

%

 

1.12

%

 

BAR HARBOR BANKSHARES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED

   

At or for the Quarters Ended

(in thousands)

  

Dec 31,
2019

 

Sep 30,
2019

 

Jun 30,
2019

 

Mar 31,
2019

 

Dec 31,
2018

Net income

  

$

4,207

  

$

5,015

  

$

6,117

  

$

7,281

  

$

7,620

 

Plus (less):

           

(Gain) loss on sale of securities, net

  

(80

)

 

(157

)

 

-

  

-

  

924

 

(Gain) loss on sale of premises and equipment, net

  

(3

)

 

-

  

21

  

-

  

-

 

Loss on other real estate owned

  

20

  

146

  

-

  

-

  

5

 

Loss on debt extinguishment

  

1,096

  

-

  

-

  

-

  

-

 

Acquisition, restructuring and other expenses

  

4,998

  

3,039

  

280

  

-

  

1,109

 

Income tax expense (1)

  

(1,440

)

 

(720

)

 

(72

)

 

-

  

(485

)

Total core earnings (2)

(A)

 

$

8,798

  

$

7,323

  

$

6,346

  

$

7,281

  

$

9,173

 
            

Net interest income

(B)

 

$

24,104

  

$

22,445

  

$

21,496

  

$

21,765

  

$

22,264

 

Plus: Non-interest income

  

7,806

  

7,643

  

7,453

  

6,167

  

7,450

 

Total Revenue

  

31,910

  

30,088

  

28,949

  

27,932

  

29,714

 

Adj: (Gain) loss on sale of securities, net

  

(80

)

 

(157

)

 

-

  

-

  

924

 

Total core revenue (2)

(C)

 

$

31,830

  

$

29,931

  

$

28,949

  

$

27,932

  

$

30,638

 
            

Total non-interest expense

  

26,803

  

23,400

  

20,906

  

18,624

  

20,096

 

Less: Gain (loss) on sale of premises and equipment, net

  

3

  

-

  

(21

)

 

-

  

-

 

Less: Loss on other real estate owned

  

(20

)

 

(146

)

 

-

  

-

  

(5

)

Less: Loss on debt extinguishment

  

(1,096

)

 

-

  

-

  

-

  

-

 

Less: Acquisition, conversion and other expenses

  

(4,998

)

 

(3,039

)

 

(280

)

 

-

  

(1,109

)

Core non-interest expense (2)

(D)

 

$

20,692

  

$

20,215

  

$

20,605

  

$

18,624

  

$

18,982

 
            

(in millions)

           

Total average earning assets

(E)

 

$

3,309

  

$

3,308

  

$

3,330

  

$

3,265

  

$

3,246

 

Total average assets

(F)

 

3,655

  

3,642

  

3,646

  

3,561

  

3,546

 

Total average shareholders' equity

(G)

 

396

  

395

  

388

  

377

  

364

 

Total average tangible shareholders' equity (2) (3)

(H)

 

281

  

288

  

280

  

270

  

256

 

Total tangible shareholders' equity, period-end (2) (3)

(I)

 

269

  

287

  

283

  

274

  

263

 

Total tangible assets, period-end (2) (3)

(J)

 

3,542

  

3,506

  

3,580

  

3,522

  

3,501

 
            

(in thousands)

           

Total common shares outstanding, period-end

(K)

 

15,558

  

15,549

  

15,544

  

15,524

  

15,523

 

Average diluted shares outstanding

(L)

 

15,602

  

15,581

  

15,586

  

15,587

  

15,574

 
            

Core earnings per share, diluted (2)

(A/L)

 

$

0.56

  

$

0.47

  

$

0.41

  

$

0.47

  

$

0.59

 

Tangible book value per share, period-end (2)

(I/K)

 

17.30

  

18.49

  

18.23

  

17.63

  

16.94

 

Securities adjustment, net of tax (1) (4)

(M)

 

5,549

  

8,002

  

5,550

  

(1,842

)

 

(8,663

)

Tangible book value per share, excluding securities adjustment (2)

(I+M)/K

 

16.94

  

17.98

  

17.88

  

17.75

  

17.50

 

Total tangible shareholders' equity/total tangible assets (2)

(I/J)

 

7.60

  

8.20

  

7.92

  

7.77

  

7.51

 
            

Performance ratios (5)

           

GAAP return on assets

  

0.46

%

 

0.55

%

 

0.67

%

 

0.83

%

 

0.85

%

Core return on assets (2)

(A/F)

 

0.96

  

0.80

  

0.70

  

0.83

  

1.03

 

GAAP return on equity

  

4.21

  

5.04

  

6.33

  

7.83

  

8.31

 

Core return on equity (2)

(A/G)

 

8.81

  

7.36

  

6.57

  

7.83

  

10.01

 

Core return on tangible equity (2) (6)

(A+Q)/H

 

12.66

  

10.31

  

9.30

  

11.19

  

14.46

 

Efficiency ratio (2) (7)

(D-O-Q)/(C+N)

 

62.56

  

65.02

  

68.48

  

63.94

  

59.91

 

Net interest margin

(B+P)/E

 

2.95

  

2.75

  

2.65

  

2.77

  

2.78

 
            

Supplementary data (in thousands)

           

Taxable equivalent adjustment for efficiency ratio

(N)

 

$

674

  

$

658

  

$

676

  

$

684

  

$

633

 

Franchise taxes included in non-interest expense

(O)

 

119

  

119

  

111

  

120

  

39

 

Tax equivalent adjustment for net interest margin

(P)

 

516

  

503

  

514

  

515

  

488

 

Intangible amortization

(Q)

 

240

  

207

  

207

  

207

  

207

 

_________________

(1) Assumes a marginal tax rate of 23.78% in the first three quarters of 2019 and 23.87% in the fourth quarter 2019. A marginal tax rate of 23.78% was used in the fourth quarter of 2018.
(2) Non-GAAP financial measure.
(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.
(4) Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.
(5) All performance ratios are based on average balance sheet amounts, where applicable.
(6) 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 23.78% in the first three quarters of 2019 and 23.87% in the fourth quarter 2019 and 23.78% in the fourth quarter of 2018, by tangible equity.
(7) Efficiency ratio is computed by dividing adjusted non-interest expense by the sum of net interest income on a fully taxable equivalent basis and adjusted non-interest income.

SOURCE: Bar Harbor Bankshares



View source version on accesswire.com:
https://www.accesswire.com/574395/Bar-Harbor-Bankshares-Reports-Record-Fourth-Quarter-Revenues

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.