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: | October 18, 2018 | By: | /s/ Curtis C. Simard |
Curtis C. Simard | |||
President and CEO |
• | 14.3% annualized increase in non-maturity deposit accounts |
• | 57.9% efficiency ratio (non-GAAP measure) |
• | 1.01% return on average assets |
• | 9.92% return on average equity |
• | 10% annualized growth in tangible book value per share, excluding security adjustments (non-GAAP measure) |
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TABLE INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
BHB - Bar Harbor Bankshares | Page 6 | www.bhbt.com |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED | ||||||||||||||||||||
At or for the Quarters Ended | ||||||||||||||||||||
Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.58 | $ | 0.55 | $ | 0.50 | $ | 0.43 | $ | 0.56 | ||||||||||
Core earnings, diluted (1) (2) | 0.58 | 0.56 | 0.52 | 0.58 | 0.57 | |||||||||||||||
Total book value | 23.06 | 22.97 | 22.78 | 22.96 | 22.90 | |||||||||||||||
Tangible book value (2) | 16.11 | 16.00 | 15.78 | 15.94 | 15.84 | |||||||||||||||
Market price at period end | 28.72 | 30.29 | 27.72 | 27.01 | 31.36 | |||||||||||||||
Dividends | 0.20 | 0.20 | 0.19 | 0.19 | 0.19 | |||||||||||||||
PERFORMANCE RATIOS (3) | ||||||||||||||||||||
Return on assets | 1.01 | % | 0.97 | % | 0.90 | % | 0.75 | % | 0.99 | % | ||||||||||
Core return on assets (1) (2) | 1.01 | 1.00 | 0.93 | 1.02 | 1.01 | |||||||||||||||
Return on equity | 9.92 | 9.65 | 9.01 | 7.35 | 9.67 | |||||||||||||||
Core return on equity (1) (2) | 9.98 | 9.86 | 9.31 | 9.97 | 9.90 | |||||||||||||||
Core return on tangible equity (1) (2) | 14.52 | 14.43 | 13.72 | 14.56 | 14.53 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (2) (4) | 2.81 | 2.91 | 2.97 | 3.04 | 3.06 | |||||||||||||||
Net interest margin (FTE), excluding purchased loan accretion (2) (4) | 2.71 | 2.80 | 2.85 | 2.93 | 2.93 | |||||||||||||||
Efficiency ratio (2) | 57.88 | 58.83 | 60.44 | 53.02 | 53.53 | |||||||||||||||
GROWTH (Year-to-date, annualized) (2) | ||||||||||||||||||||
Total commercial loans | 2.8 | % | 5.7 | % | 2.2 | % | 23.8 | % | 20.5 | % | ||||||||||
Total loans | (0.1 | ) | — | (3.4 | ) | 13.1 | 12.2 | |||||||||||||
Total deposits | 2.2 | 1.9 | (1.8 | ) | 14.4 | 10.6 | ||||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets | $ | 3,561 | $ | 3,541 | $ | 3,511 | $ | 3,565 | $ | 3,476 | ||||||||||
Total earning assets (5) | 3,253 | 3,250 | 3,235 | 3,244 | 3,183 | |||||||||||||||
Total investments | 747 | 749 | 757 | 755 | 756 | |||||||||||||||
Total loans | 2,484 | 2,485 | 2,464 | 2,486 | 2,429 | |||||||||||||||
Allowance for loan losses | 13 | 13 | 13 | 12 | 12 | |||||||||||||||
Total goodwill and intangible assets | 108 | 108 | 108 | 108 | 109 | |||||||||||||||
Total deposits | 2,390 | 2,375 | 2,341 | 2,352 | 2,275 | |||||||||||||||
Total shareholders' equity | 358 | 356 | 352 | 355 | 353 | |||||||||||||||
Net income | 9 | 9 | 8 | 7 | 9 | |||||||||||||||
Core income (1) (2) | 9 | 9 | 8 | 9 | 9 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.04 | % | 0.06 | % | 0.07 | % | 0.04 | % | 0.03 | % | ||||||||||
Allowance for loan losses/total loans | 0.54 | 0.53 | 0.51 | 0.50 | 0.49 | |||||||||||||||
Loans/deposits | 104 | 105 | 105 | 106 | 107 | |||||||||||||||
Shareholders' equity to total assets | 10.04 | 10.05 | 10.03 | 9.95 | 10.17 | |||||||||||||||
Tangible shareholders' equity to tangible assets | 7.24 | 7.22 | 7.17 | 7.12 | 7.26 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED | ||||||||||||||||||||
(in thousands) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 53,154 | $ | 39,327 | $ | 35,088 | $ | 34,262 | $ | 31,223 | ||||||||||
Interest-bearing deposits with the Federal Reserve Bank | 19,420 | 22,066 | 12,725 | 56,423 | 17,501 | |||||||||||||||
Total cash and cash equivalents | 72,574 | 61,393 | 47,813 | 90,685 | 48,724 | |||||||||||||||
Securities available for sale, at fair value | 712,658 | 710,147 | 718,559 | 717,242 | 718,459 | |||||||||||||||
Federal Home Loan Bank stock | 34,154 | 38,712 | 38,105 | 38,105 | 37,107 | |||||||||||||||
Total securities | 746,812 | 748,859 | 756,664 | 755,347 | 755,566 | |||||||||||||||
Commercial real estate | 840,018 | 838,546 | 824,721 | 826,746 | 793,572 | |||||||||||||||
Commercial and industrial | 385,814 | 400,293 | 387,205 | 379,423 | 357,072 | |||||||||||||||
Residential real estate | 1,140,519 | 1,127,895 | 1,132,977 | 1,155,682 | 1,152,628 | |||||||||||||||
Consumer | 117,239 | 118,332 | 119,516 | 123,762 | 125,590 | |||||||||||||||
Total loans | 2,483,590 | 2,485,066 | 2,464,419 | 2,485,613 | 2,428,862 | |||||||||||||||
Less: Allowance for loan losses | (13,487 | ) | (13,090 | ) | (12,679 | ) | (12,325 | ) | (11,950 | ) | ||||||||||
Net loans | 2,470,103 | 2,471,976 | 2,451,740 | 2,473,288 | 2,416,912 | |||||||||||||||
Premises and equipment, net | 47,621 | 48,038 | 48,464 | 47,708 | 48,309 | |||||||||||||||
Other real estate owned | 68 | 129 | 216 | 122 | 122 | |||||||||||||||
Goodwill | 100,085 | 100,085 | 100,085 | 100,085 | 100,255 | |||||||||||||||
Other intangible assets | 7,690 | 7,921 | 8,152 | 8,383 | 8,811 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 73,316 | 58,811 | 58,433 | 57,997 | 57,613 | |||||||||||||||
Deferred tax asset, net | 11,527 | 10,309 | 9,627 | 7,180 | 13,052 | |||||||||||||||
Other assets | 31,196 | 33,534 | 29,793 | 24,389 | 26,368 | |||||||||||||||
Total assets | $ | 3,560,992 | $ | 3,541,055 | $ | 3,510,987 | $ | 3,565,184 | $ | 3,475,732 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 372,358 | $ | 341,773 | $ | 342,192 | $ | 349,055 | $ | 357,398 | ||||||||||
NOW deposits | 471,326 | 449,715 | 448,992 | 466,610 | 442,085 | |||||||||||||||
Savings deposits | 354,908 | 350,339 | 361,591 | 364,799 | 373,118 | |||||||||||||||
Money market deposits | 254,142 | 260,642 | 303,777 | 305,275 | 300,398 | |||||||||||||||
Time deposits | 937,615 | 972,252 | 884,848 | 866,346 | 802,110 | |||||||||||||||
Total deposits | 2,390,349 | 2,374,721 | 2,341,400 | 2,352,085 | 2,275,109 | |||||||||||||||
Senior borrowings | 739,224 | 735,924 | 742,198 | 786,688 | 775,582 | |||||||||||||||
Subordinated borrowings | 42,988 | 43,003 | 43,018 | 43,033 | 43,048 | |||||||||||||||
Total borrowings | 782,212 | 778,927 | 785,216 | 829,721 | 818,630 | |||||||||||||||
Other liabilities | 30,746 | 31,444 | 32,214 | 28,737 | 28,534 | |||||||||||||||
Total liabilities | 3,203,307 | 3,185,092 | 3,158,830 | 3,210,543 | 3,122,273 | |||||||||||||||
Total common shareholders' equity | 357,685 | 355,963 | 352,157 | 354,641 | 353,459 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,560,992 | $ | 3,541,055 | $ | 3,510,987 | $ | 3,565,184 | $ | 3,475,732 | ||||||||||
Net shares outstanding | 15,509 | 15,496 | 15,459 | 15,443 | 15,432 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||||||||
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED | ||||||||||||||||||||||||||
LOAN ANALYSIS | ||||||||||||||||||||||||||
Annualized Growth % | ||||||||||||||||||||||||||
(in thousands) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Quarter End | Year to Date | |||||||||||||||||||
Commercial real estate | $ | 840,018 | $ | 838,546 | $ | 824,721 | $ | 826,746 | $ | 793,572 | 0.7 | % | 2.1 | % | ||||||||||||
Commercial and industrial | 303,984 | 313,680 | 301,811 | 293,707 | 270,759 | (12.4 | ) | 4.7 | ||||||||||||||||||
Total commercial loans | 1,144,002 | 1,152,226 | 1,126,532 | 1,120,453 | 1,064,331 | (2.9 | ) | 2.8 | ||||||||||||||||||
Residential real estate | 1,140,519 | 1,127,895 | 1,132,977 | 1,155,682 | 1,152,628 | 4.5 | (1.8 | ) | ||||||||||||||||||
Consumer | 117,239 | 118,332 | 119,516 | 123,762 | 125,590 | (3.7 | ) | (7.0 | ) | |||||||||||||||||
Tax exempt and other | 81,830 | 86,613 | 85,394 | 85,716 | 86,313 | (22.1 | ) | (6.0 | ) | |||||||||||||||||
Total loans | $ | 2,483,590 | $ | 2,485,066 | $ | 2,464,419 | $ | 2,485,613 | $ | 2,428,862 | (0.2 | )% | (0.1 | )% |
DEPOSIT ANALYSIS | ||||||||||||||||||||||||||
Annualized Growth % | ||||||||||||||||||||||||||
(in thousands) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Quarter End | Year to Date | |||||||||||||||||||
Demand | $ | 372,358 | $ | 341,773 | $ | 342,192 | $ | 349,055 | $ | 357,398 | 35.8 | % | 8.9 | % | ||||||||||||
NOW | 471,326 | 449,715 | 448,992 | 466,610 | 442,085 | 19.2 | 1.3 | |||||||||||||||||||
Savings | 354,908 | 350,339 | 361,591 | 364,799 | 373,118 | 5.2 | (3.6 | ) | ||||||||||||||||||
Money Market | 254,142 | 260,642 | 303,777 | 305,275 | 300,398 | (10.0 | ) | (22.3 | ) | |||||||||||||||||
Total non-maturity deposits | 1,452,734 | 1,402,469 | 1,456,552 | 1,485,739 | 1,472,999 | 14.3 | (3.0 | ) | ||||||||||||||||||
Total time deposits | 937,615 | 972,252 | 884,848 | 866,346 | 802,110 | (14.3 | ) | 11.0 | ||||||||||||||||||
Total deposits | $ | 2,390,349 | $ | 2,374,721 | $ | 2,341,400 | $ | 2,352,085 | $ | 2,275,109 | 2.6 | % | 2.2 | % |
BAR HARBOR BANKSHARES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Loans | $ | 26,212 | $ | 24,661 | $ | 77,272 | $ | 70,081 | ||||||||
Securities and other | 5,972 | 5,402 | 17,407 | 15,832 | ||||||||||||
Total interest and dividend income | 32,184 | 30,063 | 94,679 | 85,913 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 5,478 | 3,177 | 13,868 | 7,926 | ||||||||||||
Borrowings | 4,237 | 3,408 | 12,192 | 9,327 | ||||||||||||
Total interest expense | 9,715 | 6,585 | 26,060 | 17,253 | ||||||||||||
Net interest income | 22,469 | 23,478 | 68,619 | 68,660 | ||||||||||||
Provision for loan losses | 643 | 660 | 2,208 | 2,191 | ||||||||||||
Net interest income after provision for loan losses | 21,826 | 22,818 | 66,411 | 66,469 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and investment management fee income | 2,952 | 3,040 | 9,036 | 9,228 | ||||||||||||
Insurance brokerage service income | — | 329 | — | 1,020 | ||||||||||||
Customer service fees | 2,490 | 2,638 | 7,061 | 6,402 | ||||||||||||
Gain on sales of securities, net | — | 19 | — | 19 | ||||||||||||
Bank-owned life insurance income | 505 | 380 | 1,328 | 1,165 | ||||||||||||
Other income | 1,179 | 554 | 3,060 | 1,631 | ||||||||||||
Total non-interest income | 7,126 | 6,960 | 20,485 | 19,465 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 10,331 | 9,617 | 31,695 | 30,065 | ||||||||||||
Occupancy and equipment | 3,366 | 2,700 | 9,364 | 8,195 | ||||||||||||
Loss on sales of premises and equipment, net | — | (1 | ) | — | 94 | |||||||||||
Outside services | 456 | 907 | 1,597 | 2,220 | ||||||||||||
Professional services | 223 | 428 | 1,016 | 1,357 | ||||||||||||
Communication | 217 | 382 | 701 | 1,040 | ||||||||||||
Amortization of intangible assets | 207 | 212 | 621 | 603 | ||||||||||||
Acquisition, conversion and other expenses | 70 | 346 | 619 | 5,917 | ||||||||||||
Other expenses | 3,036 | 2,995 | 9,830 | 8,972 | ||||||||||||
Total non-interest expense | 17,906 | 17,586 | 55,443 | 58,463 | ||||||||||||
Income before income taxes | 11,046 | 12,192 | 31,453 | 27,471 | ||||||||||||
Income tax expense | 2,076 | 3,575 | 6,136 | 8,085 | ||||||||||||
Net income | $ | 8,970 | $ | 8,617 | $ | 25,317 | $ | 19,386 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.58 | $ | 0.56 | $ | 1.64 | $ | 1.27 | ||||||||
Diluted | $ | 0.58 | $ | 0.56 | 1.63 | 1.27 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 15,503 | 15,420 | 15,478 | 15,098 | ||||||||||||
Diluted | 15,580 | 15,511 | 15,564 | 15,204 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED | ||||||||||||||||||||
(in thousands, except per share data) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 26,212 | $ | 25,934 | $ | 25,126 | $ | 24,895 | $ | 24,661 | ||||||||||
Securities and other | 5,972 | 5,784 | 5,651 | 5,261 | 5,402 | |||||||||||||||
Total interest and dividend income | 32,184 | 31,718 | 30,777 | 30,156 | 30,063 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 5,478 | 4,405 | 3,985 | 3,381 | 3,177 | |||||||||||||||
Borrowings | 4,237 | 4,321 | 3,634 | 3,279 | 3,408 | |||||||||||||||
Total interest expense | 9,715 | 8,726 | 7,619 | 6,660 | 6,585 | |||||||||||||||
Net interest income | 22,469 | 22,992 | 23,158 | 23,496 | 23,478 | |||||||||||||||
Provision for loan losses | 643 | 770 | 795 | 597 | 660 | |||||||||||||||
Net interest income after provision for loan losses | 21,826 | 22,222 | 22,363 | 22,899 | 22,818 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 2,952 | 3,122 | 2,962 | 3,042 | 3,040 | |||||||||||||||
Insurance brokerage service income | — | — | — | 77 | 329 | |||||||||||||||
Customer service fees | 2,490 | 2,347 | 2,224 | 2,495 | 2,638 | |||||||||||||||
Gain on sales of securities, net | — | — | — | — | 19 | |||||||||||||||
Bank-owned life insurance income | 505 | 377 | 446 | 374 | 380 | |||||||||||||||
Other income | 1,179 | 1,275 | 606 | 530 | 554 | |||||||||||||||
Total non-interest income | 7,126 | 7,121 | 6,238 | 6,518 | 6,960 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 10,331 | 10,375 | 10,989 | 9,524 | 9,617 | |||||||||||||||
Occupancy and equipment | 3,366 | 2,925 | 3,073 | 2,866 | 2,700 | |||||||||||||||
Gain on sales of premises and equipment, net | — | — | — | — | (1 | ) | ||||||||||||||
Outside services | 456 | 581 | 560 | 780 | 907 | |||||||||||||||
Professional services | 223 | 360 | 433 | 298 | 428 | |||||||||||||||
Communication | 217 | 304 | 180 | 249 | 382 | |||||||||||||||
Amortization of intangible assets | 207 | 207 | 207 | 209 | 212 | |||||||||||||||
Acquisition, conversion, and other expenses | 70 | 214 | 335 | (2,615 | ) | 346 | ||||||||||||||
Other expenses | 3,036 | 3,719 | 3,075 | 2,952 | 2,995 | |||||||||||||||
Total non-interest expense | 17,906 | 18,685 | 18,852 | 14,263 | 17,586 | |||||||||||||||
Income before income taxes | 11,046 | 10,658 | 9,749 | 15,154 | 12,192 | |||||||||||||||
Income tax expense | 2,076 | 2,123 | 1,937 | 8,545 | 3,575 | |||||||||||||||
Net income | $ | 8,970 | $ | 8,535 | $ | 7,812 | $ | 6,609 | $ | 8,617 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.58 | $ | 0.55 | $ | 0.51 | $ | 0.43 | $ | 0.56 | ||||||||||
Diluted | $ | 0.58 | $ | 0.55 | $ | 0.50 | $ | 0.43 | $ | 0.56 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 15,503 | 15,482 | 15,448 | 15,437 | 15,420 | |||||||||||||||
Diluted | 15,580 | 15,571 | 15,553 | 15,537 | 15,511 |
BAR HARBOR BANKSHARES | |||||||||||||||
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED | |||||||||||||||
Quarters Ended | |||||||||||||||
Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | |||||||||||
Earning assets | |||||||||||||||
Commercial real estate | 4.57 | % | 4.48 | % | 4.41 | % | 4.30 | % | 4.28 | % | |||||
Commercial and industrial | 4.59 | 4.69 | 4.41 | 4.77 | 4.84 | ||||||||||
Residential | 3.83 | 3.88 | 3.87 | 3.78 | 3.79 | ||||||||||
Consumer | 4.85 | 4.65 | 4.47 | 4.17 | 4.34 | ||||||||||
Total loans | 4.25 | 4.25 | 4.16 | 4.12 | 4.13 | ||||||||||
Securities and other | 3.21 | 3.18 | 3.16 | 3.06 | 3.13 | ||||||||||
Total earning assets | 4.00 | % | 3.99 | % | 3.92 | % | 3.87 | % | 3.89 | % | |||||
Funding liabilities | |||||||||||||||
NOW | 0.43 | % | 0.37 | % | 0.34 | % | 0.31 | % | 0.32 | % | |||||
Savings | 0.17 | 0.17 | 0.18 | 0.19 | 0.18 | ||||||||||
Money market | 0.76 | 0.79 | 0.68 | 0.58 | 0.52 | ||||||||||
Time deposits | 1.78 | 1.51 | 1.39 | 1.19 | 1.13 | ||||||||||
Total interest bearing deposits | 1.06 | 0.90 | 0.82 | 0.70 | 0.66 | ||||||||||
Borrowings | 2.26 | 2.07 | 1.80 | 1.62 | 1.66 | ||||||||||
Total interest-bearing liabilities | 1.38 | % | 1.25 | % | 1.11 | % | 0.97 | % | 0.96 | % | |||||
Net interest spread | 2.62 | 2.74 | 2.81 | 2.90 | 2.93 | ||||||||||
Net interest margin | 2.81 | 2.91 | 2.97 | 3.04 | 3.06 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
AVERAGE BALANCES - UNAUDITED | ||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||
(in thousands) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | |||||||||||||||
Assets | ||||||||||||||||||||
Commercial real estate | $ | 837,058 | $ | 824,356 | $ | 819,531 | $ | 783,730 | $ | 764,770 | ||||||||||
Commercial and industrial | 388,831 | 396,471 | 380,029 | 362,881 | 353,194 | |||||||||||||||
Residential | 1,120,336 | 1,126,714 | 1,147,010 | 1,161,865 | 1,158,069 | |||||||||||||||
Consumer | 117,735 | 119,570 | 121,467 | 125,109 | 126,138 | |||||||||||||||
Total loans (1) | 2,463,960 | 2,467,111 | 2,468,037 | 2,433,585 | 2,402,171 | |||||||||||||||
Securities and other (2) | 773,562 | 767,886 | 765,328 | 753,282 | 754,450 | |||||||||||||||
Total earning assets | 3,237,522 | 3,234,997 | 3,233,365 | 3,186,867 | 3,156,621 | |||||||||||||||
Cash and due from banks | 63,272 | 50,869 | 53,151 | 65,145 | 49,169 | |||||||||||||||
Allowance for loan losses | (13,463 | ) | (13,107 | ) | (12,589 | ) | (12,202 | ) | (11,786 | ) | ||||||||||
Goodwill and other intangible assets | 107,887 | 108,118 | 108,349 | 108,769 | 109,147 | |||||||||||||||
Other assets | 137,466 | 131,522 | 129,525 | 144,359 | 149,394 | |||||||||||||||
Total assets | $ | 3,532,684 | $ | 3,512,399 | $ | 3,511,801 | $ | 3,492,938 | $ | 3,452,545 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
NOW | $ | 461,875 | $ | 441,645 | $ | 447,026 | $ | 449,669 | $ | 447,459 | ||||||||||
Savings | 356,834 | 351,712 | 362,508 | 368,714 | 368,443 | |||||||||||||||
Money market | 259,738 | 288,169 | 305,105 | 308,071 | 292,110 | |||||||||||||||
Time deposits | 964,108 | 872,149 | 857,796 | 799,348 | 793,489 | |||||||||||||||
Total interest bearing deposits | 2,042,555 | 1,953,675 | 1,972,435 | 1,925,802 | 1,901,501 | |||||||||||||||
Borrowings | 744,632 | 836,295 | 819,576 | 803,469 | 812,938 | |||||||||||||||
Total interest-bearing liabilities | 2,787,187 | 2,789,970 | 2,792,011 | 2,729,271 | 2,714,439 | |||||||||||||||
Non-interest-bearing demand deposits | 357,856 | 339,374 | 339,349 | 376,066 | 354,470 | |||||||||||||||
Other liabilities | 28,943 | 28,386 | 29,000 | 30,971 | 30,079 | |||||||||||||||
Total liabilities | 3,173,986 | 3,157,730 | 3,160,360 | 3,136,308 | 3,098,988 | |||||||||||||||
Total shareholders' equity | 358,698 | 354,669 | 351,441 | 356,630 | 353,557 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,532,684 | $ | 3,512,399 | $ | 3,511,801 | $ | 3,492,938 | $ | 3,452,545 |
(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) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 8,348 | $ | 8,883 | $ | 8,422 | $ | 8,343 | $ | 2,467 | ||||||||||
Commercial installment | 2,303 | 2,411 | 2,304 | 1,209 | 236 | |||||||||||||||
Residential real estate | 10,396 | 9,945 | 8,548 | 4,266 | 3,619 | |||||||||||||||
Consumer installment | 727 | 707 | 1,065 | 500 | 496 | |||||||||||||||
Total non-accruing loans | 21,774 | 21,946 | 20,339 | 14,318 | 6,818 | |||||||||||||||
Other real estate owned | 68 | 129 | 216 | 122 | 122 | |||||||||||||||
Total non-performing assets | $ | 21,842 | $ | 22,075 | $ | 20,555 | $ | 14,440 | $ | 6,940 | ||||||||||
Total non-accruing loans/total loans | 0.88 | % | 0.88 | % | 0.83 | % | 0.58 | % | 0.28 | % | ||||||||||
Total non-performing assets/total assets | 0.61 | 0.62 | 0.59 | 0.41 | 0.20 | |||||||||||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 13,090 | $ | 12,679 | $ | 12,325 | $ | 11,950 | $ | 11,442 | ||||||||||
Charged-off loans | (298 | ) | (517 | ) | (461 | ) | (277 | ) | (297 | ) | ||||||||||
Recoveries on charged-off loans | 52 | 158 | 20 | 55 | 145 | |||||||||||||||
Net loans charged-off | (246 | ) | (359 | ) | (441 | ) | (222 | ) | (152 | ) | ||||||||||
Provision for loan losses | 643 | 770 | 795 | 597 | 660 | |||||||||||||||
Balance at end of period | $ | 13,487 | $ | 13,090 | $ | 12,679 | $ | 12,325 | $ | 11,950 | ||||||||||
Allowance for loan losses/total loans | 0.54 | % | 0.53 | % | 0.51 | % | 0.50 | % | 0.49 | % | ||||||||||
Allowance for loan losses/non-accruing loans | 62 | 60 | 62 | 86 | 175 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (27 | ) | $ | (92 | ) | $ | (91 | ) | $ | (92 | ) | $ | (16 | ) | |||||
Commercial installment | (53 | ) | (54 | ) | (140 | ) | 1 | 6 | ||||||||||||
Residential real estate | (123 | ) | (64 | ) | 1 | — | (79 | ) | ||||||||||||
Consumer installment | (43 | ) | (149 | ) | (211 | ) | (131 | ) | (63 | ) | ||||||||||
Total, net | $ | (246 | ) | $ | (359 | ) | $ | (441 | ) | $ | (222 | ) | $ | (152 | ) | |||||
Net charge-offs (QTD annualized)/average loans | 0.04 | % | 0.06 | % | 0.07 | % | 0.04 | % | 0.03 | % | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.06 | 0.06 | 0.07 | 0.04 | 0.04 | |||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.17 | % | 0.14 | % | 0.24 | % | 0.37 | % | 0.35 | % | ||||||||||
90+ Days delinquent and still accruing | — | — | — | 0.02 | 0.01 | |||||||||||||||
Total accruing delinquent loans | 0.17 | 0.14 | 0.24 | 0.39 | 0.36 | |||||||||||||||
Non-accruing loans | 0.88 | 0.88 | 0.83 | 0.58 | 0.28 | |||||||||||||||
Total delinquent and non-accruing loans | 1.05 | % | 1.02 | % | 1.07 | % | 0.97 | % | 0.64 | % |
BAR HARBOR BANKSHARES | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED | |||||||||||||||||||||
At or for the Quarters Ended | |||||||||||||||||||||
(in thousands) | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | ||||||||||||||||
Net income | $ | 8,970 | $ | 8,535 | $ | 7,812 | $ | 6,609 | $ | 8,617 | |||||||||||
Adj: Security Gains | — | — | — | — | (19 | ) | |||||||||||||||
Adj: Gain on sale of fixed assets, net | — | — | — | — | (1 | ) | |||||||||||||||
Adj: Loss on other real estate owned | (8 | ) | 23 | — | — | — | |||||||||||||||
Adj: Acquisition, conversion and other expenses | 70 | 214 | 335 | (2,615 | ) | 346 | |||||||||||||||
Adj: Income taxes (1) | (12 | ) | (57 | ) | (81 | ) | 982 | (122 | ) | ||||||||||||
Adj: Tax reform charge | — | — | — | 3,988 | — | ||||||||||||||||
Total core income (2) | (A) | $ | 9,020 | $ | 8,715 | $ | 8,066 | $ | 8,964 | $ | 8,821 | ||||||||||
Net-interest income | (B) | $ | 22,469 | $ | 22,992 | $ | 23,158 | $ | 23,496 | $ | 23,478 | ||||||||||
Plus: Non-interest income | 7,126 | 7,121 | 6,238 | 6,518 | 6,960 | ||||||||||||||||
Total Revenue | 29,595 | 30,113 | 29,396 | 30,014 | 30,438 | ||||||||||||||||
Adj: Net security gains | — | — | — | — | (19 | ) | |||||||||||||||
Total core revenue (2) | (C) | $ | 29,595 | $ | 30,113 | $ | 29,396 | $ | 30,014 | $ | 30,419 | ||||||||||
Total non-interest expense | 17,906 | 18,685 | 18,852 | 14,263 | 17,586 | ||||||||||||||||
Less: Gain on sale of fixed assets, net | — | — | — | — | 1 | ||||||||||||||||
Less: Loss on other real estate owned | 8 | (23 | ) | — | — | — | |||||||||||||||
Less: Acquisition, conversion and other expenses | (70 | ) | (214 | ) | (335 | ) | 2,615 | (346 | ) | ||||||||||||
Core non-interest expense (2) | (D) | $ | 17,844 | $ | 18,448 | $ | 18,517 | $ | 16,878 | $ | 17,241 | ||||||||||
(in millions) | |||||||||||||||||||||
Total average earning assets | (E) | $ | 3,238 | $ | 3,235 | $ | 3,233 | $ | 3,187 | $ | 3,157 | ||||||||||
Total average assets | (F) | 3,533 | 3,512 | 3,512 | 3,493 | 3,453 | |||||||||||||||
Total average shareholders' equity | (G) | 359 | 355 | 351 | 357 | 354 | |||||||||||||||
Total average tangible shareholders' equity (2) (3) | (H) | 251 | 247 | 243 | 248 | 244 | |||||||||||||||
Total tangible shareholders' equity, period-end (2) (3) | (I) | 250 | 248 | 244 | 246 | 244 | |||||||||||||||
Total tangible assets, period-end (2) (3) | (J) | 3,453 | 3,433 | 3,403 | 3,457 | 3,367 | |||||||||||||||
(in thousands) | |||||||||||||||||||||
Total common shares outstanding, period-end | (K) | 15,509 | 15,496 | 15,459 | 15,443 | 15,432 | |||||||||||||||
Average diluted shares outstanding | (L) | 15,580 | 15,571 | 15,553 | 15,537 | 15,511 | |||||||||||||||
Core earnings per share, diluted (2) | (A/L) | $ | 0.58 | $ | 0.56 | $ | 0.52 | $ | 0.58 | $ | 0.57 | ||||||||||
Tangible book value per share, period-end (2) | (I/K) | 16.11 | 16.00 | 15.78 | 15.94 | 15.84 | |||||||||||||||
Securities adjustment, net of tax (1)(4) | (M) | (17,152 | ) | (12,594 | ) | (10,237 | ) | 1,711 | (1,155 | ) | |||||||||||
Tangible book value per share, excluding securities adjustment(2) | (I+M)/K | 17.22 | 16.81 | 16.44 | 15.83 | 15.91 | |||||||||||||||
Total tangible shareholders' equity/total tangible assets (2) | (I/J) | 7.24 | 7.22 | 7.17 | 7.12 | 7.26 | |||||||||||||||
Performance ratios | |||||||||||||||||||||
GAAP return on assets | 1.01 | % | 0.97 | % | 0.90 | % | 0.75 | % | 0.99 | % | |||||||||||
Core return on assets (2) | (A/F) | 1.01 | 1.00 | 0.93 | 1.02 | 1.01 | |||||||||||||||
GAAP return on equity | 9.92 | 9.65 | 9.01 | 7.35 | 9.67 | ||||||||||||||||
Core return on equity (2) | (A/G) | 9.98 | 9.86 | 9.31 | 9.97 | 9.90 | |||||||||||||||
Core return on tangible equity (2) (5) | (A/I) | 14.52 | 14.43 | 13.72 | 14.56 | 14.53 | |||||||||||||||
Efficiency ratio (2) (6) | (D-O-Q)/(C+N) | 57.88 | 58.83 | 60.44 | 53.02 | 53.53 | |||||||||||||||
Net interest margin | (B+P)/E | 2.81 | 2.91 | 2.97 | 3.04 | 3.06 | |||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 654 | $ | 622 | $ | 645 | $ | 1,122 | $ | 1,107 | ||||||||||
Franchise taxes included in non-interest expense | (O) | 129 | 159 | 152 | 161 | 154 | |||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 493 | 502 | 503 | 897 | 878 | |||||||||||||||
Intangible amortization | (Q) | 207 | 207 | 207 | 209 | 212 |
(1) | Assumes a marginal tax rate of 23.78% in third quarter 2018 net of adjustment for first and second quarter 2018, which was recorded at a marginal rate of 24.15%. A marginal tax rate of 37.57% was used 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) | 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) | 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 third quarter 2018, 24.15% in first and second quarter 2018 and 37.57% in 2017, by tangible equity. |
(6) | 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. |