Maine | 001-13349 | 01-0393663 | ||
(State or Other Jurisdiction) of Incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
PO Box 400 | 04609-0400 | |
82 Main Street | (Zip Code) | |
Bar Harbor, Maine | ||
(Address of Principal Executive Offices) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
(a) | Financial Statements of Businesses Acquired. Not applicable. |
(b) | Pro Forma Financial Information. Not applicable. |
(c) | Shell Company Transactions. Not applicable. |
(d) | Exhibits. |
Exhibit No. | Description | |
Bar Harbor Bankshares | ||
DATE: January 25, 2018 | By: | /s/ Curtis C. Simard |
Curtis C. Simard | ||
President and CEO |
• | 1.02% core return on assets (non-GAAP measure) |
• | 21% annualized commercial loan growth |
• | 13% annualized total deposit growth |
• | 53% efficiency ratio (non-GAAP measure) |
• | 9.97% core return on equity (non-GAAP measure) |
BHB - Bar Harbor Bankshares | Page 1 | www.bhbt.com |
BHB - Bar Harbor Bankshares | Page 2 | www.bhbt.com |
BHB - Bar Harbor Bankshares | Page 3 | www.bhbt.com |
BHB - Bar Harbor Bankshares | Page 4 | www.bhbt.com |
TABLE INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
BHB - Bar Harbor Bankshares | Page 5 | www.bhbt.com |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED | ||||||||||||||||||||
At or for the Quarters Ended (1)(3) | ||||||||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.43 | $ | 0.56 | $ | 0.42 | $ | 0.29 | $ | 0.28 | ||||||||||
Core earnings, diluted (1) (2) | 0.58 | 0.57 | 0.52 | 0.43 | 0.41 | |||||||||||||||
Total book value | 22.96 | 22.90 | 22.53 | 22.17 | 17.19 | |||||||||||||||
Tangible book value (2) | 15.94 | 15.84 | 15.44 | 15.07 | 16.61 | |||||||||||||||
Market price at period end | 27.01 | 31.36 | 30.82 | 33.08 | 31.55 | |||||||||||||||
Dividends | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on assets | 0.75 | % | 0.99 | % | 0.76 | % | 0.50 | % | 0.59 | % | ||||||||||
Core return on assets (1) (2) | 1.02 | 1.01 | 0.94 | 0.74 | 0.87 | |||||||||||||||
Return on equity | 7.35 | 9.67 | 7.55 | 5.34 | 6.36 | |||||||||||||||
Core return on equity (1) (2) | 9.97 | 9.90 | 9.32 | 7.88 | 9.34 | |||||||||||||||
Core return on tangible equity (1) (2) | 14.53 | 14.51 | 13.78 | 12.24 | 9.66 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (4) | 3.04 | 3.06 | 3.16 | 3.11 | 2.89 | |||||||||||||||
Net interest margin (FTE), excluding purchased loan accretion (4) | 2.93 | 2.93 | 3.02 | 3.01 | 2.89 | |||||||||||||||
Efficiency ratio (2) | 53.09 | 53.59 | 54.64 | 61.62 | 59.24 | |||||||||||||||
GROWTH (Year-to-date, annualized) | ||||||||||||||||||||
Total commercial loans (2) | 23.8 | % | 20.5 | % | 7.2 | % | 20.0 | % | 14.9 | % | ||||||||||
Total loans (2) | 13.1 | 12.2 | 7.0 | 13.3 | 15.0 | |||||||||||||||
Total deposits (2) | 14.4 | 10.6 | 2.3 | (10.2 | ) | 6.5 | ||||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets | $ | 3,565 | $ | 3,476 | $ | 3,503 | $ | 3,427 | $ | 1,755 | ||||||||||
Total earning assets | 3,241 | 3,184 | 3,139 | 3,139 | 1,683 | |||||||||||||||
Total investments | 755 | 756 | 763 | 767 | 554 | |||||||||||||||
Total loans | 2,486 | 2,429 | 2,377 | 2,372 | 1,129 | |||||||||||||||
Allowance for loan losses | 12 | 12 | 11 | 11 | 10 | |||||||||||||||
Total goodwill and intangible assets | 108 | 109 | 109 | 109 | 5 | |||||||||||||||
Total deposits | 2,352 | 2,275 | 2,213 | 2,174 | 1,050 | |||||||||||||||
Total shareholders' equity | 355 | 353 | 347 | 341 | 157 | |||||||||||||||
Net income | 7 | 9 | 7 | 4 | 3 | |||||||||||||||
Core income (2) | 9 | 9 | 8 | 6 | 4 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans (5) | 0.04 | % | 0.01 | % | 0.03 | % | 0.06 | % | (0.03 | )% | ||||||||||
Allowance for loan losses/total loans (5) | 0.50 | 0.49 | 0.48 | 0.46 | 0.92 | |||||||||||||||
Loans/deposits | 106 | 107 | 107 | 109 | 108 | |||||||||||||||
Shareholders' equity to total assets | 9.95 | 10.17 | 9.91 | 9.95 | 8.93 | |||||||||||||||
Tangible shareholders' equity to tangible assets (2) | 7.12 | 7.26 | 7.01 | 6.99 | 8.65 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED | ||||||||||||||||||||
(In thousands) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 34,262 | $ | 31,223 | $ | 28,112 | $ | 29,245 | $ | 8,219 | ||||||||||
Interest-bearing deposit with the Federal Reserve Bank | 56,423 | 17,501 | 90,881 | 12,781 | 220 | |||||||||||||||
Total cash and cash equivalents | 90,685 | 48,724 | 118,993 | 42,026 | 8,439 | |||||||||||||||
Securities available for sale, at fair value | 717,242 | 718,459 | 718,364 | 724,224 | 528,856 | |||||||||||||||
Federal Home Loan Bank stock | 38,105 | 37,107 | 44,168 | 42,404 | 25,331 | |||||||||||||||
Total securities | 755,347 | 755,566 | 762,532 | 766,628 | 554,187 | |||||||||||||||
Commercial real estate | 826,746 | 793,572 | 738,584 | 779,635 | 418,119 | |||||||||||||||
Commercial and industrial | 379,423 | 357,072 | 350,002 | 309,995 | 151,240 | |||||||||||||||
Residential real estate | 1,155,682 | 1,152,628 | 1,160,832 | 1,155,436 | 506,612 | |||||||||||||||
Consumer | 123,762 | 125,590 | 127,229 | 127,370 | 53,093 | |||||||||||||||
Total loans | 2,485,613 | 2,428,862 | 2,376,647 | 2,372,436 | 1,129,064 | |||||||||||||||
Less: Allowance for loan losses | (12,325 | ) | (11,950 | ) | (11,442 | ) | (10,884 | ) | (10,419 | ) | ||||||||||
Net loans | 2,473,288 | 2,416,912 | 2,365,205 | 2,361,552 | 1,118,645 | |||||||||||||||
Premises and equipment, net | 47,708 | 48,309 | 48,590 | 45,581 | 23,419 | |||||||||||||||
Other real estate owned | 122 | 122 | 122 | 363 | 90 | |||||||||||||||
Goodwill | 100,085 | 100,255 | 100,255 | 99,901 | 4,935 | |||||||||||||||
Other intangible assets | 8,383 | 8,811 | 9,047 | 9,282 | 377 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 57,997 | 57,613 | 57,233 | 56,627 | 24,450 | |||||||||||||||
Deferred tax asset, net | 7,180 | 13,052 | 13,211 | 14,158 | 5,990 | |||||||||||||||
Other assets | 24,389 | 26,368 | 28,223 | 31,365 | 14,817 | |||||||||||||||
Total assets | $ | 3,565,184 | $ | 3,475,732 | $ | 3,503,411 | $ | 3,427,483 | $ | 1,755,349 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 349,055 | $ | 357,398 | $ | 332,339 | $ | 349,896 | $ | 98,856 | ||||||||||
NOW deposits | 466,610 | 442,085 | 451,171 | 242,876 | 175,150 | |||||||||||||||
Savings deposits | 364,799 | 373,118 | 360,306 | 511,091 | 77,623 | |||||||||||||||
Money market deposits | 305,275 | 300,398 | 285,312 | 349,491 | 282,234 | |||||||||||||||
Time deposits | 866,346 | 802,110 | 783,876 | 720,899 | 416,437 | |||||||||||||||
Total deposits | 2,352,085 | 2,275,109 | 2,213,004 | 2,174,253 | 1,050,300 | |||||||||||||||
Senior borrowings | 786,688 | 775,582 | 872,021 | 842,150 | 531,596 | |||||||||||||||
Subordinated borrowings | 43,033 | 43,048 | 43,063 | 43,078 | 5,000 | |||||||||||||||
Total borrowings | 829,721 | 818,630 | 915,084 | 885,228 | 536,596 | |||||||||||||||
Other liabilities | 28,737 | 28,534 | 28,201 | 26,954 | 11,713 | |||||||||||||||
Total liabilities | 3,210,543 | 3,122,273 | 3,156,289 | 3,086,435 | 1,598,609 | |||||||||||||||
Total common shareholders' equity | 354,641 | 353,459 | 347,122 | 341,048 | 156,740 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,565,184 | $ | 3,475,732 | $ | 3,503,411 | $ | 3,427,483 | $ | 1,755,349 | ||||||||||
Net shares outstanding (2) | 15,443 | 15,432 | 15,407 | 15,385 | 9,116 |
(1) | The Company completed the acquisition of Lake Sunapee Bank Group on January 13, 2017. |
(2) | Adjusted for 3-for-2 stock-split completed in March 2017. |
BAR HARBOR BANKSHARES | ||||||||||||||||||||||||||||||
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED | ||||||||||||||||||||||||||||||
LOAN ANALYSIS | ||||||||||||||||||||||||||||||
Organic Annualized Growth % (1) December 31, 2017 | ||||||||||||||||||||||||||||||
(in thousands) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Acquired Lake Sunapee Bank (2) | Dec 31, 2016 | Quarter End | Year to Date | ||||||||||||||||||||||
Commercial real estate | $ | 826,746 | $ | 793,572 | $ | 738,584 | $ | 779,635 | $ | 345,586 | $ | 418,119 | 16.7 | % | 15.1 | % | ||||||||||||||
Commercial and industrial | 293,707 | 270,759 | 269,960 | 236,526 | 89,259 | 135,564 | 33.9 | 50.8 | ||||||||||||||||||||||
Total commercial loans | 1,120,453 | 1,064,331 | 1,008,544 | 1,016,161 | 434,845 | 553,683 | 21.1 | 23.8 | ||||||||||||||||||||||
Residential real estate | 1,155,682 | 1,152,628 | 1,160,832 | 1,155,436 | 652,255 | 506,612 | 1.1 | (0.6 | ) | |||||||||||||||||||||
Consumer | 123,762 | 125,590 | 127,229 | 127,370 | 76,489 | 53,093 | (5.8 | ) | (11.0 | ) | ||||||||||||||||||||
Tax exempt and other | 85,716 | 86,313 | 80,042 | 73,469 | 44,611 | 15,676 | (2.8 | ) | 162.2 | |||||||||||||||||||||
Total loans | $ | 2,485,613 | $ | 2,428,862 | $ | 2,376,647 | $ | 2,372,436 | $ | 1,208,200 | $ | 1,129,064 | 9.3 | % | 13.1 | % |
(1) | Non-GAAP financial measure. |
(2) | Acquired Lake Sunapee Bank loans are as of January 13, 2017. |
DEPOSIT ANALYSIS | ||||||||||||||||||||||||||||||
Organic Annualized Growth % (1) December 31, 2017 | ||||||||||||||||||||||||||||||
(in thousands) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Acquired Lake Sunapee Bank (2) | Dec 31, 2016 | Quarter End | Year to Date | ||||||||||||||||||||||
Demand | $ | 349,055 | $ | 357,398 | $ | 332,339 | $ | 349,896 | $ | 248,051 | $ | 98,856 | (9.3 | )% | 2.2 | % | ||||||||||||||
NOW | 466,610 | 442,085 | 451,171 | 242,876 | 39,999 | 175,150 | 22.2 | 143.6 | ||||||||||||||||||||||
Money market | 305,275 | 300,398 | 285,312 | 349,491 | 103,142 | 282,234 | 6.5 | (28.4 | ) | |||||||||||||||||||||
Savings | 364,799 | 373,118 | 360,306 | 511,091 | 467,735 | 77,623 | (8.9 | ) | (232.6 | ) | ||||||||||||||||||||
Total non-maturity deposits | 1,485,739 | 1,472,999 | 1,429,128 | 1,453,354 | 858,927 | 633,863 | 3.5 | (1.1 | ) | |||||||||||||||||||||
Total time deposits | 866,346 | 802,110 | 783,876 | 720,899 | 291,684 | 416,437 | 32.0 | 38.0 | ||||||||||||||||||||||
Total deposits | $ | 2,352,085 | $ | 2,275,109 | $ | 2,213,004 | $ | 2,174,253 | $ | 1,150,611 | $ | 1,050,300 | 13.5 | % | 14.4 | % |
(1) | Non-GAAP financial measure. |
(2) | Acquired Lake Sunapee Bank deposits are as of January 13, 2017. |
BAR HARBOR BANKSHARES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
(In thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Loans | $ | 24,895 | $ | 11,026 | $ | 94,976 | $ | 41,653 | ||||||||
Securities and other | 5,261 | 3,820 | 21,093 | 15,834 | ||||||||||||
Total interest and dividend income | 30,156 | 14,846 | 116,069 | 57,487 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 3,381 | 1,768 | 11,307 | 6,699 | ||||||||||||
Borrowings | 3,279 | 1,421 | 12,607 | 5,414 | ||||||||||||
Total interest expense | 6,660 | 3,189 | 23,914 | 12,113 | ||||||||||||
Net interest income | 23,496 | 11,657 | 92,155 | 45,374 | ||||||||||||
Provision for loan losses | 597 | 225 | 2,788 | 979 | ||||||||||||
Net interest income after provision for loan losses | 22,899 | 11,432 | 89,367 | 44,395 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and investment management fee income | 3,042 | 951 | 12,270 | 3,829 | ||||||||||||
Insurance and brokerage service income | 77 | — | 1,097 | — | ||||||||||||
Customer service fees | 2,495 | 649 | 8,484 | 2,648 | ||||||||||||
Gain on sales of securities, net | — | 9 | 19 | 4,498 | ||||||||||||
Bank-owned life insurance income | 374 | 163 | 1,539 | 703 | ||||||||||||
Other income | 530 | 263 | 2,573 | 671 | ||||||||||||
Total non-interest income | 6,518 | 2,035 | 25,982 | 12,349 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 9,524 | 5,127 | 39,589 | 19,775 | ||||||||||||
Occupancy and equipment | 3,060 | 1,144 | 11,633 | 4,610 | ||||||||||||
Loss on sales of premises and equipment, net | — | 32 | 94 | 248 | ||||||||||||
Outside services | 780 | 337 | 3,000 | 767 | ||||||||||||
Professional services | 298 | 405 | 1,655 | 1,489 | ||||||||||||
Communication | 249 | 94 | 1,289 | 586 | ||||||||||||
Amortization of intangible assets | 186 | 1 | 720 | 26 | ||||||||||||
Acquisition, conversion and other expenses | (2,615 | ) | 1,838 | 3,302 | 2,650 | |||||||||||
Other expenses | 2,781 | 1,479 | 11,444 | 5,784 | ||||||||||||
Total non-interest expense | 14,263 | 10,457 | 72,726 | 35,935 | ||||||||||||
Income before income taxes | 15,154 | 3,010 | 42,623 | 20,809 | ||||||||||||
Income tax expense | 8,545 | 426 | 16,630 | 5,876 | ||||||||||||
Net income | $ | 6,609 | $ | 2,584 | $ | 25,993 | $ | 14,933 | ||||||||
Earnings per share: | ||||||||||||||||
Basic (1) | $ | 0.43 | $ | 0.28 | $ | 1.71 | $ | 1.65 | ||||||||
Diluted (1) | 0.43 | 0.28 | 1.70 | 1.63 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic (1) | 15,437 | 9,096 | 15,184 | 9,069 | ||||||||||||
Diluted (1) | 15,537 | 9,215 | 15,290 | 9,143 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED | ||||||||||||||||||||
(In thousands, except per share data) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 24,895 | $ | 24,661 | $ | 24,226 | $ | 21,194 | $ | 11,026 | ||||||||||
Securities and other | 5,261 | 5,402 | 5,439 | 4,991 | 3,820 | |||||||||||||||
Total interest and dividend income | 30,156 | 30,063 | 29,665 | 26,185 | 14,846 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 3,381 | 3,177 | 2,539 | 2,210 | 1,768 | |||||||||||||||
Borrowings | 3,279 | 3,408 | 3,317 | 2,603 | 1,421 | |||||||||||||||
Total interest expense | 6,660 | 6,585 | 5,856 | 4,813 | 3,189 | |||||||||||||||
Net interest income | 23,496 | 23,478 | 23,809 | 21,372 | 11,657 | |||||||||||||||
Provision for loan losses | 597 | 660 | 736 | 795 | 225 | |||||||||||||||
Net interest income after provision for loan losses | 22,899 | 22,818 | 23,073 | 20,577 | 11,432 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 3,042 | 3,040 | 3,324 | 2,864 | 951 | |||||||||||||||
Insurance and brokerage service income | 77 | 329 | 327 | 364 | — | |||||||||||||||
Customer service fees | 2,495 | 2,638 | 1,991 | 1,360 | 649 | |||||||||||||||
Gain on sales of securities, net | — | 19 | — | — | 9 | |||||||||||||||
Bank-owned life insurance income | 374 | 380 | 386 | 399 | 163 | |||||||||||||||
Other income | 530 | 554 | 530 | 959 | 263 | |||||||||||||||
Total non-interest income | 6,518 | 6,960 | 6,558 | 5,946 | 2,035 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 9,524 | 9,617 | 10,127 | 10,321 | 5,127 | |||||||||||||||
Occupancy and equipment | 3,060 | 2,894 | 3,013 | 2,666 | 1,144 | |||||||||||||||
Loss on sales of premises and equipment,net | — | (1 | ) | — | 95 | 32 | ||||||||||||||
Outside services | 780 | 907 | 716 | 597 | 337 | |||||||||||||||
Professional services | 298 | 428 | 489 | 440 | 405 | |||||||||||||||
Communication | 249 | 382 | 290 | 368 | 94 | |||||||||||||||
Amortization of intangible assets | 186 | 189 | 188 | 157 | 1 | |||||||||||||||
Acquisition, conversion and other expenses | (2,615 | ) | 346 | 2,459 | 3,112 | 1,838 | ||||||||||||||
Other expenses | 2,781 | 2,824 | 2,764 | 3,075 | 1,479 | |||||||||||||||
Total non-interest expense | 14,263 | 17,586 | 20,046 | 20,831 | 10,457 | |||||||||||||||
Income before income taxes | 15,154 | 12,192 | 9,585 | 5,692 | 3,010 | |||||||||||||||
Income tax expense | 8,545 | 3,575 | 3,029 | 1,481 | 426 | |||||||||||||||
Net income | $ | 6,609 | $ | 8,617 | $ | 6,556 | $ | 4,211 | $ | 2,584 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic (1) | $ | 0.43 | $ | 0.56 | $ | 0.43 | $ | 0.29 | $ | 0.28 | ||||||||||
Diluted (1) | 0.43 | 0.56 | 0.42 | 0.29 | 0.28 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic (1) | 15,437 | 15,420 | 15,393 | 14,471 | 9,096 | |||||||||||||||
Diluted (1) | 15,537 | 15,511 | 15,506 | 14,591 | 9,215 |
BAR HARBOR BANKSHARES | |||||||||||||||
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED | |||||||||||||||
Quarters Ended | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Earning assets | |||||||||||||||
Loans | 4.12 | % | 4.13 | % | 4.14 | % | 4.00 | % | 3.94 | % | |||||
Securities and other | 3.06 | 3.13 | 3.19 | 3.01 | 3.01 | ||||||||||
Total earning assets | 3.87 | % | 3.89 | % | 3.91 | % | 3.76 | % | 3.65 | % | |||||
Funding liabilities | |||||||||||||||
Interest bearing deposits | 0.70 | % | 0.66 | % | 0.56 | % | 0.52 | % | 0.76 | % | |||||
Borrowings | 1.62 | 1.66 | 1.41 | 1.25 | 1.05 | ||||||||||
Total interest-bearing liabilities | 0.97 | % | 0.96 | % | 0.85 | % | 0.76 | % | 0.86 | % | |||||
Net interest spread | 2.90 | 2.93 | 3.06 | 3.00 | 2.79 | ||||||||||
Net interest margin | 3.04 | 3.06 | 3.16 | 3.11 | 2.89 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
AVERAGE BALANCES - UNAUDITED | ||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||
(In thousands) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||||||
Assets | ||||||||||||||||||||
Total loans (1) | $ | 2,433,585 | $ | 2,402,171 | $ | 2,377,141 | $ | 2,346,340 | $ | 1,119,065 | ||||||||||
Securities and other (2) | 753,282 | 754,450 | 761,546 | 746,653 | 556,365 | |||||||||||||||
Total earning assets | 3,186,867 | 3,156,621 | 3,138,687 | 3,092,993 | 1,675,430 | |||||||||||||||
Cash and due from banks | 65,145 | 49,169 | 87,332 | 25,556 | 5,976 | |||||||||||||||
Allowance for loan losses | (12,202 | ) | (11,786 | ) | (11,292 | ) | (10,584 | ) | (10,336 | ) | ||||||||||
Goodwill and other intangible assets | 108,769 | 109,147 | 109,108 | 109,261 | 5,324 | |||||||||||||||
Other assets | 144,359 | 149,394 | 110,129 | 122,396 | 71,807 | |||||||||||||||
Total assets | $ | 3,492,938 | $ | 3,452,545 | $ | 3,433,964 | $ | 3,339,622 | $ | 1,748,201 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Total interest-bearing deposits | $ | 1,925,802 | $ | 1,901,501 | $ | 1,811,226 | $ | 1,798,014 | $ | 930,983 | ||||||||||
Borrowings | 803,469 | 812,938 | 941,789 | 856,328 | 537,818 | |||||||||||||||
Total interest-bearing liabilities | 2,729,271 | 2,714,439 | 2,753,015 | 2,654,342 | 1,468,801 | |||||||||||||||
Non-interest-bearing demand deposits | 376,066 | 354,470 | 320,503 | 350,497 | 108,961 | |||||||||||||||
Other liabilities | 30,971 | 30,079 | 13,145 | 19,334 | 7,929 | |||||||||||||||
Total liabilities | 3,136,308 | 3,098,988 | 3,086,663 | 3,024,173 | 1,585,691 | |||||||||||||||
Total shareholders' equity | 356,630 | 353,557 | 347,301 | 315,449 | 162,510 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,492,938 | $ | 3,452,545 | $ | 3,433,964 | $ | 3,339,622 | $ | 1,748,201 |
(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, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 8,343 | $ | 2,467 | $ | 2,090 | $ | 2,354 | $ | 2,564 | ||||||||||
Commercial installment | 1,209 | 236 | 270 | 451 | 315 | |||||||||||||||
Residential real estate | 4,266 | 3,619 | 2,783 | 3,066 | 3,419 | |||||||||||||||
Consumer installment | 500 | 496 | 160 | 160 | 198 | |||||||||||||||
Total non-accruing loans | 14,318 | 6,818 | 5,303 | 6,031 | 6,496 | |||||||||||||||
Other real estate owned | 122 | 122 | 122 | 363 | 90 | |||||||||||||||
Total non-performing assets | $ | 14,440 | $ | 6,940 | $ | 5,425 | $ | 6,394 | $ | 6,586 | ||||||||||
Total non-accruing loans/total loans | 0.58 | % | 0.28 | % | 0.22 | % | 0.25 | % | 0.58 | % | ||||||||||
Total non-performing assets/total assets | 0.41 | 0.20 | 0.15 | 0.19 | 0.38 | |||||||||||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 11,950 | $ | 11,442 | $ | 10,884 | $ | 10,419 | $ | 10,103 | ||||||||||
Charged-off loans | (277 | ) | (297 | ) | (213 | ) | (344 | ) | (28 | ) | ||||||||||
Recoveries on charged-off loans | 55 | 145 | 35 | 14 | 119 | |||||||||||||||
Net loans charged-off | (222 | ) | (152 | ) | (178 | ) | (330 | ) | 91 | |||||||||||
Provision for loan losses | 597 | 660 | 736 | 795 | 225 | |||||||||||||||
Balance at end of period | $ | 12,325 | $ | 11,950 | $ | 11,442 | $ | 10,884 | $ | 10,419 | ||||||||||
Allowance for loan losses/total loans | 0.50 | % | 0.49 | % | 0.48 | % | 0.46 | % | 0.92 | % | ||||||||||
Allowance for loan losses/non-accruing loans | 86 | 175 | 216 | 180 | 160 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (92 | ) | $ | (16 | ) | $ | (6 | ) | $ | (103 | ) | $ | 5 | ||||||
Commercial installment | 1 | 6 | (138 | ) | (17 | ) | 89 | |||||||||||||
Residential real estate | — | (79 | ) | (13 | ) | (198 | ) | 8 | ||||||||||||
Consumer installment | (131 | ) | (63 | ) | (21 | ) | (12 | ) | (11 | ) | ||||||||||
Total, net | $ | (222 | ) | $ | (152 | ) | $ | (178 | ) | $ | (330 | ) | $ | 91 | ||||||
Net charge-offs (QTD annualized)/average loans | 0.04 | % | 0.01 | % | 0.03 | % | 0.06 | % | (0.03 | )% | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.04 | 0.04 | 0.04 | 0.06 | (0.03 | ) | ||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.37 | % | 0.35 | % | 0.55 | % | 0.33 | % | 0.54 | % | ||||||||||
90+ Days delinquent and still accruing | 0.02 | 0.01 | — | — | — | |||||||||||||||
Total accruing delinquent loans | 0.39 | 0.36 | 0.55 | 0.33 | 0.54 | |||||||||||||||
Non-accruing loans | 0.58 | 0.28 | 0.22 | 0.25 | 0.58 | |||||||||||||||
Total delinquent and non-accruing loans | 0.97 | % | 0.64 | % | 0.77 | % | 0.58 | % | 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, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | ||||||||||||||||
Net income | $ | 6,609 | $ | 8,617 | $ | 6,556 | $ | 4,211 | $ | 2,584 | |||||||||||
Adj: Security Gains | — | (19 | ) | — | — | (9 | ) | ||||||||||||||
Adj: Loss on sale of fixed assets, net | — | (1 | ) | — | 95 | 32 | |||||||||||||||
Adj: Acquisition, conversion and other expenses | (2,615 | ) | 346 | 2,459 | 3,112 | 1,838 | |||||||||||||||
Adj: Income taxes (37.57% in 2017, 35.0% in 2016) | 982 | (122 | ) | (924 | ) | (1,205 | ) | (651 | ) | ||||||||||||
Adj: Tax reform charge | 3,988 | — | — | — | — | ||||||||||||||||
Total core income (4) | (A) | $ | 8,964 | $ | 8,821 | $ | 8,091 | $ | 6,213 | $ | 3,794 | ||||||||||
Net-interest income | (B) | $ | 23,496 | $ | 23,478 | $ | 23,809 | $ | 21,372 | $ | 11,657 | ||||||||||
Plus: Non-interest income | 6,518 | 6,960 | 6,558 | 5,946 | 2,035 | ||||||||||||||||
Total Revenue | 30,014 | 30,438 | 30,367 | 27,318 | 13,692 | ||||||||||||||||
Adj: Net security gains | — | (19 | ) | — | — | (9 | ) | ||||||||||||||
Total core revenue (4) | (C) | $ | 30,014 | $ | 30,419 | $ | 30,367 | $ | 27,318 | $ | 13,683 | ||||||||||
Total non-interest expense | $ | 14,263 | $ | 17,586 | $ | 20,046 | $ | 20,831 | $ | 10,457 | |||||||||||
Less: Acquisition expenses | 2,615 | (346 | ) | (2,459 | ) | (3,112 | ) | (1,838 | ) | ||||||||||||
Core non-interest expense (4) | (D) | $ | 16,878 | $ | 17,240 | $ | 17,587 | $ | 17,719 | $ | 8,619 | ||||||||||
(in millions) | |||||||||||||||||||||
Total average earning assets | (E) | $ | 3,187 | $ | 3,157 | $ | 3,139 | $ | 3,093 | $ | 1,675 | ||||||||||
Total average assets | (F) | 3,493 | 3,453 | 3,434 | 3,340 | 1,748 | |||||||||||||||
Total average shareholders' equity | (G) | 357 | 354 | 347 | 315 | 163 | |||||||||||||||
Total average tangible shareholders' equity | (H) | 248 | 244 | 238 | 206 | 157 | |||||||||||||||
Total tangible shareholders' equity, period-end (1) | (I) | 246 | 244 | 238 | 232 | 152 | |||||||||||||||
Total tangible assets, period-end (1) | (J) | 3,457 | 3,367 | 3,394 | 3,318 | 1,750 | |||||||||||||||
(in thousands) | |||||||||||||||||||||
Total common shares outstanding, period-end | (K) | 15,443 | 15,432 | 15,407 | 15,385 | 9,116 | |||||||||||||||
Average diluted shares outstanding | (L) | 15,537 | 15,511 | 15,506 | 14,591 | 9,215 | |||||||||||||||
Core earnings per share, diluted | (A/L) | $ | 0.58 | $ | 0.57 | $ | 0.52 | $ | 0.43 | $ | 0.41 | ||||||||||
Tangible book value per share, period-end | (I/K) | 15.94 | 15.84 | 15.44 | 15.07 | 16.61 | |||||||||||||||
Total tangible shareholders' equity/total tangible assets | (H/J) | 7.12 | 7.26 | 7.01 | 6.99 | 8.65 | |||||||||||||||
Performance ratios (2) | |||||||||||||||||||||
GAAP return on assets | 0.75 | % | 0.99 | % | 0.76 | % | 0.50 | % | 0.59 | % | |||||||||||
Core return on assets (4) | (A/F) | 1.02 | 1.01 | 0.94 | 0.74 | 0.87 | |||||||||||||||
GAAP return on equity | 7.35 | 9.67 | 7.55 | 5.34 | 6.36 | ||||||||||||||||
Core return on equity (4) | (A/G) | 9.97 | 9.90 | 9.32 | 7.88 | 9.34 | |||||||||||||||
Core return on tangible equity (3) (4) | (A/I) | 14.53 | 14.51 | 13.78 | 12.24 | 9.66 |
Efficiency ratio (4)(5) | (D-N-P)/(C+M) | 53.09 | 53.59 | 54.64 | 61.62 | 59.24 | |||||||||||||||
Net interest margin | (B+O)/E | 3.04 | 3.06 | 3.16 | 3.11 | 2.89 | |||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (M) | 1,122 | 1,107 | 1,185 | 977 | 538 | |||||||||||||||
Franchise taxes included in non-interest expense | (N) | 161 | 154 | 158 | 126 | 37 | |||||||||||||||
Tax equivalent adjustment for net interest margin | (O) | 897 | 878 | 936 | 754 | 182 | |||||||||||||||
Intangible amortization | (P) | 186 | 189 | 188 | 157 | 157 |