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 8.01 | Other Events |
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: | April 18, 2019 | By: | /s/ Curtis C. Simard |
Curtis C. Simard | |||
President and CEO |
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 | ||||||||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.47 | $ | 0.49 | $ | 0.58 | $ | 0.55 | $ | 0.50 | ||||||||||
Core earnings, diluted (1) (2) | 0.47 | 0.59 | 0.58 | 0.56 | 0.52 | |||||||||||||||
Total book value | 24.54 | 23.87 | 23.06 | 22.97 | 22.78 | |||||||||||||||
Tangible book value (2) | 17.63 | 16.94 | 16.11 | 16.00 | 15.78 | |||||||||||||||
Market price at period end | 25.87 | 22.43 | 28.72 | 30.29 | 27.72 | |||||||||||||||
Dividends | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | |||||||||||||||
PERFORMANCE RATIOS (3) | ||||||||||||||||||||
Return on assets | 0.83 | % | 0.85 | % | 1.01 | % | 0.97 | % | 0.90 | % | ||||||||||
Core return on assets (1) (2) | 0.83 | 1.03 | 1.01 | 1.00 | 0.93 | |||||||||||||||
Return on equity | 7.83 | 8.31 | 9.92 | 9.65 | 9.01 | |||||||||||||||
Core return on equity (1) (2) | 7.83 | 10.01 | 9.98 | 9.86 | 9.31 | |||||||||||||||
Core return on tangible equity (1) (2) | 11.19 | 14.46 | 14.52 | 14.43 | 13.72 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (2) (4) | 2.77 | 2.78 | 2.81 | 2.91 | 2.97 | |||||||||||||||
Net interest margin (FTE), excluding purchased loan accretion (2) (4) | 2.67 | 2.70 | 2.71 | 2.80 | 2.85 | |||||||||||||||
Efficiency ratio (2) | 63.94 | 59.91 | 57.88 | 58.83 | 60.44 | |||||||||||||||
GROWTH (Year-to-date, annualized) (2) | ||||||||||||||||||||
Total commercial loans | (3.3 | )% | 1.4 | % | 2.8 | % | 5.7 | % | 2.2 | % | ||||||||||
Total loans | 5.9 | 0.2 | (0.1 | ) | — | (3.4 | ) | |||||||||||||
Total deposits | (2.8 | ) | 5.6 | 2.2 | 1.9 | (1.8 | ) | |||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets | $ | 3,629 | $ | 3,608 | $ | 3,561 | $ | 3,541 | $ | 3,511 | ||||||||||
Total earning assets (2) (5) | 3,312 | 3,263 | 3,253 | 3,250 | 3,235 | |||||||||||||||
Total investments | 782 | 761 | 747 | 749 | 757 | |||||||||||||||
Total loans | 2,527 | 2,490 | 2,484 | 2,485 | 2,464 | |||||||||||||||
Allowance for loan losses | 14 | 14 | 13 | 13 | 13 | |||||||||||||||
Total goodwill and intangible assets | 107 | 108 | 108 | 108 | 108 | |||||||||||||||
Total deposits | 2,466 | 2,483 | 2,390 | 2,375 | 2,341 | |||||||||||||||
Total shareholders' equity | 381 | 371 | 358 | 356 | 352 | |||||||||||||||
Net income | 7 | 8 | 9 | 9 | 8 | |||||||||||||||
Core income (1) (2) | 7 | 9 | 9 | 9 | 8 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.03 | % | 0.03 | % | 0.04 | % | 0.06 | % | 0.07 | % | ||||||||||
Allowance for loan losses/total loans | 0.55 | 0.56 | 0.54 | 0.53 | 0.51 | |||||||||||||||
Loans/deposits | 102 | 100 | 104 | 105 | 105 | |||||||||||||||
Shareholders' equity to total assets | 10.50 | 10.27 | 10.04 | 10.05 | 10.03 | |||||||||||||||
Tangible shareholders' equity to tangible assets | 7.77 | 7.51 | 7.24 | 7.22 | 7.17 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED | ||||||||||||||||||||
(in thousands) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 37,504 | $ | 35,208 | $ | 53,154 | $ | 39,327 | $ | 35,088 | ||||||||||
Interest-bearing deposits with the Federal Reserve Bank | 16,599 | 63,546 | 19,420 | 22,066 | 12,725 | |||||||||||||||
Total cash and cash equivalents | 54,103 | 98,754 | 72,574 | 61,393 | 47,813 | |||||||||||||||
Securities available for sale, at fair value | 747,235 | 725,837 | 712,658 | 710,147 | 718,559 | |||||||||||||||
Federal Home Loan Bank stock | 35,107 | 35,659 | 34,154 | 38,712 | 38,105 | |||||||||||||||
Total securities | 782,342 | 761,496 | 746,812 | 748,859 | 756,664 | |||||||||||||||
Commercial real estate | 821,567 | 826,699 | 840,018 | 838,546 | 824,721 | |||||||||||||||
Commercial and industrial | 409,937 | 404,870 | 385,814 | 400,293 | 387,205 | |||||||||||||||
Residential real estate | 1,184,053 | 1,144,698 | 1,140,519 | 1,127,895 | 1,132,977 | |||||||||||||||
Consumer | 111,402 | 113,960 | 117,239 | 118,332 | 119,516 | |||||||||||||||
Total loans | 2,526,959 | 2,490,227 | 2,483,590 | 2,485,066 | 2,464,419 | |||||||||||||||
Less: Allowance for loan losses | (13,997 | ) | (13,866 | ) | (13,487 | ) | (13,090 | ) | (12,679 | ) | ||||||||||
Net loans | 2,512,962 | 2,476,361 | 2,470,103 | 2,471,976 | 2,451,740 | |||||||||||||||
Premises and equipment, net | 49,661 | 48,804 | 47,621 | 48,038 | 48,464 | |||||||||||||||
Other real estate owned | 2,351 | 2,351 | 68 | 129 | 216 | |||||||||||||||
Goodwill | 100,085 | 100,085 | 100,085 | 100,085 | 100,085 | |||||||||||||||
Other intangible assets | 7,266 | 7,459 | 7,690 | 7,921 | 8,152 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 74,352 | 73,810 | 73,316 | 58,811 | 58,433 | |||||||||||||||
Deferred tax asset, net | 7,632 | 9,514 | 11,527 | 10,309 | 9,627 | |||||||||||||||
Other assets | 38,441 | 29,853 | 31,196 | 33,534 | 29,793 | |||||||||||||||
Total assets | $ | 3,629,195 | $ | 3,608,487 | $ | 3,560,992 | $ | 3,541,055 | $ | 3,510,987 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 342,030 | $ | 370,889 | $ | 372,358 | $ | 341,773 | $ | 342,192 | ||||||||||
NOW deposits | 470,277 | 484,717 | 471,326 | 449,715 | 448,992 | |||||||||||||||
Savings deposits | 346,813 | 358,888 | 354,908 | 350,339 | 361,591 | |||||||||||||||
Money market deposits | 349,833 | 335,951 | 254,142 | 260,642 | 303,777 | |||||||||||||||
Time deposits | 956,818 | 932,793 | 937,615 | 972,252 | 884,848 | |||||||||||||||
Total deposits | 2,465,771 | 2,483,238 | 2,390,349 | 2,374,721 | 2,341,400 | |||||||||||||||
Senior borrowings | 703,283 | 680,823 | 739,224 | 735,924 | 742,198 | |||||||||||||||
Subordinated borrowings | 42,958 | 42,973 | 42,988 | 43,003 | 43,018 | |||||||||||||||
Total borrowings | 746,241 | 723,796 | 782,212 | 778,927 | 785,216 | |||||||||||||||
Other liabilities | 36,160 | 30,874 | 30,746 | 31,444 | 32,214 | |||||||||||||||
Total liabilities | 3,248,172 | 3,237,908 | 3,203,307 | 3,185,092 | 3,158,830 | |||||||||||||||
Total common shareholders' equity | 381,023 | 370,579 | 357,685 | 355,963 | 352,157 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,629,195 | $ | 3,608,487 | $ | 3,560,992 | $ | 3,541,055 | $ | 3,510,987 | ||||||||||
Net shares outstanding | 15,524 | 15,523 | 15,509 | 15,496 | 15,459 |
BAR HARBOR BANKSHARES | |||||||||||||||||||||||
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED | |||||||||||||||||||||||
LOAN ANALYSIS | |||||||||||||||||||||||
Annualized Growth % | |||||||||||||||||||||||
(in thousands) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Mar 31, 2019 | |||||||||||||||||
Commercial real estate | $ | 821,567 | $ | 826,699 | $ | 840,018 | $ | 838,546 | $ | 824,721 | (2.5 | )% | |||||||||||
Commercial and industrial | 305,185 | 309,544 | 303,984 | 313,680 | 301,811 | (5.6 | ) | ||||||||||||||||
Total commercial loans | 1,126,752 | 1,136,243 | 1,144,002 | 1,152,226 | 1,126,532 | (3.3 | ) | ||||||||||||||||
Residential real estate | 1,184,053 | 1,144,698 | 1,140,519 | 1,127,895 | 1,132,977 | 13.8 | |||||||||||||||||
Consumer | 111,402 | 113,960 | 117,239 | 118,332 | 119,516 | (9.0 | ) | ||||||||||||||||
Tax exempt and other | 104,752 | 95,326 | 81,830 | 86,613 | 85,394 | 39.6 | |||||||||||||||||
Total loans | $ | 2,526,959 | $ | 2,490,227 | $ | 2,483,590 | $ | 2,485,066 | $ | 2,464,419 | 5.9 | % |
DEPOSIT ANALYSIS | |||||||||||||||||||||||
Annualized Growth % | |||||||||||||||||||||||
(in thousands) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Mar 31, 2019 | |||||||||||||||||
Demand | $ | 342,030 | $ | 370,889 | $ | 372,358 | $ | 341,773 | $ | 342,192 | (31.1 | )% | |||||||||||
NOW | 470,277 | 484,717 | 471,326 | 449,715 | 448,992 | (11.9 | ) | ||||||||||||||||
Savings | 346,813 | 358,888 | 354,908 | 350,339 | 361,591 | (13.5 | ) | ||||||||||||||||
Money Market | 349,833 | 335,951 | 254,142 | 260,642 | 303,777 | 16.5 | |||||||||||||||||
Total non-maturity deposits | 1,508,953 | 1,550,445 | 1,452,734 | 1,402,469 | 1,456,552 | (10.7 | ) | ||||||||||||||||
Total time deposits | 956,818 | 932,793 | 937,615 | 972,252 | 884,848 | 10.3 | |||||||||||||||||
Total deposits | $ | 2,465,771 | $ | 2,483,238 | $ | 2,390,349 | $ | 2,374,721 | $ | 2,341,400 | (2.8 | )% |
BAR HARBOR BANKSHARES | ||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | ||||||||
Three Months Ended March 31, | ||||||||
(in thousands, except per share data) | 2019 | 2018 | ||||||
Interest and dividend income | ||||||||
Loans | $ | 26,864 | $ | 25,126 | ||||
Securities and other | 6,363 | 5,651 | ||||||
Total interest and dividend income | 33,227 | 30,777 | ||||||
Interest expense | ||||||||
Deposits | 6,307 | 3,985 | ||||||
Borrowings | 5,155 | 3,634 | ||||||
Total interest expense | 11,462 | 7,619 | ||||||
Net interest income | 21,765 | 23,158 | ||||||
Provision for loan losses | 324 | 795 | ||||||
Net interest income after provision for loan losses | 21,441 | 22,363 | ||||||
Non-interest income | ||||||||
Trust and investment management fee income | 2,757 | 2,962 | ||||||
Customer service fees | 2,165 | 2,224 | ||||||
Bank-owned life insurance income | 542 | 446 | ||||||
Other income | 703 | 606 | ||||||
Total non-interest income | 6,167 | 6,238 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 10,519 | 10,989 | ||||||
Occupancy and equipment | 3,386 | 3,073 | ||||||
Outside services | 411 | 560 | ||||||
Professional services | 544 | 433 | ||||||
Communication | 235 | 180 | ||||||
Amortization of intangible assets | 207 | 207 | ||||||
Acquisition, conversion and other expenses | — | 335 | ||||||
Other expenses | 3,322 | 3,075 | ||||||
Total non-interest expense | 18,624 | 18,852 | ||||||
Income before income taxes | 8,984 | 9,749 | ||||||
Income tax expense | 1,703 | 1,937 | ||||||
Net income | $ | 7,281 | $ | 7,812 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.47 | $ | 0.51 | ||||
Diluted | $ | 0.47 | $ | 0.50 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 15,523 | 15,448 | ||||||
Diluted | 15,587 | 15,553 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED | ||||||||||||||||||||
(in thousands, except per share data) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 26,864 | $ | 26,743 | $ | 26,212 | $ | 25,934 | $ | 25,126 | ||||||||||
Securities and other | 6,363 | 6,029 | 5,972 | 5,784 | 5,651 | |||||||||||||||
Total interest and dividend income | 33,227 | 32,772 | 32,184 | 31,718 | 30,777 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 6,307 | 5,653 | 5,478 | 4,405 | 3,985 | |||||||||||||||
Borrowings | 5,155 | 4,855 | 4,237 | 4,321 | 3,634 | |||||||||||||||
Total interest expense | 11,462 | 10,508 | 9,715 | 8,726 | 7,619 | |||||||||||||||
Net interest income | 21,765 | 22,264 | 22,469 | 22,992 | 23,158 | |||||||||||||||
Provision for loan losses | 324 | 572 | 643 | 770 | 795 | |||||||||||||||
Net interest income after provision for loan losses | 21,441 | 21,692 | 21,826 | 22,222 | 22,363 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 2,757 | 2,949 | 2,952 | 3,122 | 2,962 | |||||||||||||||
Customer service fees | 2,165 | 2,477 | 2,490 | 2,347 | 2,224 | |||||||||||||||
Gain on sales of securities, net | — | (924 | ) | — | — | — | ||||||||||||||
Bank-owned life insurance income | 542 | 493 | 505 | 377 | 446 | |||||||||||||||
Other income | 703 | 2,455 | 1,179 | 1,275 | 606 | |||||||||||||||
Total non-interest income | 6,167 | 7,450 | 7,126 | 7,121 | 6,238 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 10,519 | 9,269 | 10,331 | 10,375 | 10,989 | |||||||||||||||
Occupancy and equipment | 3,386 | 3,022 | 3,366 | 2,925 | 3,073 | |||||||||||||||
Outside services | 411 | 811 | 456 | 581 | 560 | |||||||||||||||
Professional services | 544 | 458 | 223 | 360 | 433 | |||||||||||||||
Communication | 235 | 103 | 217 | 304 | 180 | |||||||||||||||
Amortization of intangible assets | 207 | 207 | 207 | 207 | 207 | |||||||||||||||
Acquisition, conversion, and other expenses | — | 1,109 | 70 | 214 | 335 | |||||||||||||||
Other expenses | 3,322 | 5,117 | 3,036 | 3,719 | 3,075 | |||||||||||||||
Total non-interest expense | 18,624 | 20,096 | 17,906 | 18,685 | 18,852 | |||||||||||||||
Income before income taxes | 8,984 | 9,046 | 11,046 | 10,658 | 9,749 | |||||||||||||||
Income tax expense | 1,703 | 1,426 | 2,076 | 2,123 | 1,937 | |||||||||||||||
Net income | $ | 7,281 | $ | 7,620 | $ | 8,970 | $ | 8,535 | $ | 7,812 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.49 | $ | 0.58 | $ | 0.55 | $ | 0.51 | ||||||||||
Diluted | $ | 0.47 | $ | 0.49 | $ | 0.58 | $ | 0.55 | $ | 0.50 | ||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 15,523 | 15,516 | 15,503 | 15,482 | 15,448 | |||||||||||||||
Diluted | 15,587 | 15,574 | 15,580 | 15,571 | 15,553 |
BAR HARBOR BANKSHARES | |||||||||||||||
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED | |||||||||||||||
Quarters Ended | |||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Earning assets | |||||||||||||||
Commercial real estate | 4.78 | % | 4.71 | % | 4.57 | % | 4.48 | % | 4.41 | % | |||||
Commercial and industrial | 4.79 | 4.61 | 4.59 | 4.69 | 4.41 | ||||||||||
Residential | 3.94 | 3.83 | 3.83 | 3.88 | 3.87 | ||||||||||
Consumer | 5.25 | 5.07 | 4.85 | 4.65 | 4.47 | ||||||||||
Total loans | 4.42 | 4.31 | 4.25 | 4.25 | 4.16 | ||||||||||
Securities and other | 3.47 | 3.28 | 3.21 | 3.18 | 3.16 | ||||||||||
Total earning assets | 4.19 | % | 4.07 | % | 4.00 | % | 3.99 | % | 3.92 | % | |||||
Funding liabilities | |||||||||||||||
NOW | 0.51 | % | 0.50 | % | 0.43 | % | 0.37 | % | 0.34 | % | |||||
Savings | 0.19 | 0.18 | 0.17 | 0.17 | 0.18 | ||||||||||
Money market | 1.38 | 0.93 | 0.76 | 0.79 | 0.68 | ||||||||||
Time deposits | 2.00 | 1.85 | 1.78 | 1.51 | 1.39 | ||||||||||
Total interest bearing deposits | 1.25 | 1.12 | 1.06 | 0.90 | 0.82 | ||||||||||
Borrowings | 2.74 | 2.53 | 2.26 | 2.07 | 1.80 | ||||||||||
Total interest-bearing liabilities | 1.66 | % | 1.50 | % | 1.38 | % | 1.25 | % | 1.11 | % | |||||
Net interest spread | 2.53 | 2.57 | 2.62 | 2.74 | 2.81 | ||||||||||
Net interest margin | 2.77 | 2.78 | 2.81 | 2.91 | 2.97 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
AVERAGE BALANCES - UNAUDITED | ||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||
(in thousands) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||||||
Assets | ||||||||||||||||||||
Commercial real estate | $ | 825,596 | $ | 836,813 | $ | 837,058 | $ | 824,356 | $ | 819,531 | ||||||||||
Commercial and industrial | 405,107 | 393,396 | 388,831 | 396,471 | 380,029 | |||||||||||||||
Residential | 1,143,862 | 1,137,493 | 1,120,336 | 1,126,714 | 1,147,010 | |||||||||||||||
Consumer | 113,060 | 114,960 | 117,735 | 119,570 | 121,467 | |||||||||||||||
Total loans (1) | 2,487,625 | 2,482,662 | 2,463,960 | 2,467,111 | 2,468,037 | |||||||||||||||
Securities and other (2) | 777,458 | 762,901 | 773,562 | 767,886 | 765,328 | |||||||||||||||
Total earning assets | 3,265,083 | 3,245,563 | 3,237,522 | 3,234,997 | 3,233,365 | |||||||||||||||
Cash and due from banks | 50,298 | 68,904 | 63,272 | 50,869 | 53,151 | |||||||||||||||
Allowance for loan losses | (14,119 | ) | (13,922 | ) | (13,463 | ) | (13,107 | ) | (12,589 | ) | ||||||||||
Goodwill and other intangible assets | 107,446 | 107,657 | 107,887 | 108,118 | 108,349 | |||||||||||||||
Other assets | 152,332 | 138,074 | 137,466 | 131,522 | 129,525 | |||||||||||||||
Total assets | $ | 3,561,040 | $ | 3,546,276 | $ | 3,532,684 | $ | 3,512,399 | $ | 3,511,801 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
NOW | $ | 468,392 | $ | 475,449 | $ | 461,875 | $ | 441,645 | $ | 447,026 | ||||||||||
Savings | 346,707 | 346,905 | 356,834 | 351,712 | 362,508 | |||||||||||||||
Money market | 335,882 | 272,612 | 259,738 | 288,169 | 305,105 | |||||||||||||||
Time deposits | 894,160 | 914,674 | 964,108 | 872,149 | 857,796 | |||||||||||||||
Total interest bearing deposits | 2,045,141 | 2,009,640 | 2,042,555 | 1,953,675 | 1,972,435 | |||||||||||||||
Borrowings | 761,885 | 761,781 | 744,632 | 836,295 | 819,576 | |||||||||||||||
Total interest-bearing liabilities | 2,807,026 | 2,771,421 | 2,787,187 | 2,789,970 | 2,792,011 | |||||||||||||||
Non-interest-bearing demand deposits | 351,362 | 384,636 | 357,856 | 339,374 | 339,349 | |||||||||||||||
Other liabilities | 25,520 | 26,569 | 28,943 | 28,386 | 29,000 | |||||||||||||||
Total liabilities | 3,183,908 | 3,182,626 | 3,173,986 | 3,157,730 | 3,160,360 | |||||||||||||||
Total shareholders' equity | 377,132 | 363,650 | 358,698 | 354,669 | 351,441 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,561,040 | $ | 3,546,276 | $ | 3,532,684 | $ | 3,512,399 | $ | 3,511,801 |
(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) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 7,516 | $ | 8,156 | $ | 8,348 | $ | 8,883 | $ | 8,422 | ||||||||||
Commercial installment | 2,192 | 2,331 | 2,303 | 2,411 | 2,304 | |||||||||||||||
Residential real estate | 6,326 | 7,211 | 10,396 | 9,945 | 8,548 | |||||||||||||||
Consumer installment | 565 | 537 | 727 | 707 | 1,065 | |||||||||||||||
Total non-accruing loans | 16,599 | 18,235 | 21,774 | 21,946 | 20,339 | |||||||||||||||
Other real estate owned | 2,351 | 2,351 | 68 | 129 | 216 | |||||||||||||||
Total non-performing assets | $ | 18,950 | $ | 20,586 | $ | 21,842 | $ | 22,075 | $ | 20,555 | ||||||||||
Total non-accruing loans/total loans | 0.66 | % | 0.73 | % | 0.88 | % | 0.88 | % | 0.83 | % | ||||||||||
Total non-performing assets/total assets | 0.52 | 0.57 | 0.61 | 0.62 | 0.59 | |||||||||||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 13,866 | $ | 13,487 | $ | 13,090 | $ | 12,679 | $ | 12,325 | ||||||||||
Charged-off loans | (231 | ) | (631 | ) | (298 | ) | (517 | ) | (461 | ) | ||||||||||
Recoveries on charged-off loans | 38 | 438 | 52 | 158 | 20 | |||||||||||||||
Net loans charged-off | (193 | ) | (193 | ) | (246 | ) | (359 | ) | (441 | ) | ||||||||||
Provision for loan losses | 324 | 572 | 643 | 770 | 795 | |||||||||||||||
Balance at end of period | $ | 13,997 | $ | 13,866 | $ | 13,487 | $ | 13,090 | $ | 12,679 | ||||||||||
Allowance for loan losses/total loans | 0.55 | % | 0.56 | % | 0.54 | % | 0.53 | % | 0.51 | % | ||||||||||
Allowance for loan losses/non-accruing loans | 84 | 76 | 62 | 60 | 62 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (41 | ) | $ | (25 | ) | $ | (27 | ) | $ | (92 | ) | $ | (91 | ) | |||||
Commercial installment | (15 | ) | 53 | (53 | ) | (54 | ) | (140 | ) | |||||||||||
Residential real estate | (86 | ) | (31 | ) | (123 | ) | (64 | ) | 1 | |||||||||||
Consumer installment | (51 | ) | (190 | ) | (43 | ) | (149 | ) | (211 | ) | ||||||||||
Total, net | $ | (193 | ) | $ | (193 | ) | $ | (246 | ) | $ | (359 | ) | $ | (441 | ) | |||||
Net charge-offs (QTD annualized)/average loans | 0.03 | % | 0.03 | % | 0.04 | % | 0.06 | % | 0.07 | % | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.03 | 0.05 | 0.06 | 0.06 | 0.07 | |||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.21 | % | 0.38 | % | 0.17 | % | 0.14 | % | 0.24 | % | ||||||||||
90+ Days delinquent and still accruing | — | 0.01 | — | — | — | |||||||||||||||
Total accruing delinquent loans | 0.21 | 0.39 | 0.17 | 0.14 | 0.24 | |||||||||||||||
Non-accruing loans | 0.66 | 0.73 | 0.88 | 0.88 | 0.83 | |||||||||||||||
Total delinquent and non-accruing loans | 0.87 | % | 1.12 | % | 1.05 | % | 1.02 | % | 1.07 | % |
BAR HARBOR BANKSHARES | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED | |||||||||||||||||||||
At or for the Quarters Ended | |||||||||||||||||||||
(in thousands) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||||||||
Net income | $ | 7,281 | $ | 7,620 | $ | 8,970 | $ | 8,535 | $ | 7,812 | |||||||||||
Plus (less): | |||||||||||||||||||||
Loss on sale of securities, net | — | 924 | — | — | — | ||||||||||||||||
Loss (gain) on other real estate owned | — | 5 | (8 | ) | 23 | — | |||||||||||||||
Acquisition, conversion and other expenses | — | 1,109 | 70 | 214 | 335 | ||||||||||||||||
Income tax (expense) (1) | — | (485 | ) | (12 | ) | (57 | ) | (81 | ) | ||||||||||||
Total core income (2) | (A) | $ | 7,281 | $ | 9,173 | $ | 9,020 | $ | 8,715 | $ | 8,066 | ||||||||||
Net-interest income | (B) | $ | 21,765 | $ | 22,264 | $ | 22,469 | $ | 22,992 | $ | 23,158 | ||||||||||
Plus: Non-interest income | 6,167 | 7,450 | 7,126 | 7,121 | 6,238 | ||||||||||||||||
Total Revenue | 27,932 | 29,714 | 29,595 | 30,113 | 29,396 | ||||||||||||||||
Plus: Loss on sale of securities, net | — | 924 | — | — | — | ||||||||||||||||
Total core revenue (2) | (C) | $ | 27,932 | $ | 30,638 | $ | 29,595 | $ | 30,113 | $ | 29,396 | ||||||||||
Total non-interest expense | 18,624 | 20,096 | 17,906 | 18,685 | 18,852 | ||||||||||||||||
Less: Loss on other real estate owned | — | (5 | ) | 8 | (23 | ) | — | ||||||||||||||
Less: Acquisition, conversion and other expenses | — | (1,109 | ) | (70 | ) | (214 | ) | (335 | ) | ||||||||||||
Core non-interest expense (2) | (D) | $ | 18,624 | $ | 18,982 | $ | 17,844 | $ | 18,448 | $ | 18,517 | ||||||||||
(in millions) | |||||||||||||||||||||
Total average earning assets | (E) | $ | 3,265 | $ | 3,246 | $ | 3,238 | $ | 3,235 | $ | 3,233 | ||||||||||
Total average assets | (F) | 3,561 | 3,546 | 3,533 | 3,512 | 3,512 | |||||||||||||||
Total average shareholders' equity | (G) | 377 | 364 | 359 | 355 | 351 | |||||||||||||||
Total average tangible shareholders' equity (2) (3) | (H) | 270 | 256 | 251 | 247 | 243 | |||||||||||||||
Total tangible shareholders' equity, period-end (2) (3) | (I) | 274 | 263 | 250 | 248 | 244 | |||||||||||||||
Total tangible assets, period-end (2) (3) | (J) | 3,522 | 3,501 | 3,453 | 3,433 | 3,403 | |||||||||||||||
(in thousands) | |||||||||||||||||||||
Total common shares outstanding, period-end | (K) | 15,524 | 15,523 | 15,509 | 15,496 | 15,459 | |||||||||||||||
Average diluted shares outstanding | (L) | 15,587 | 15,574 | 15,580 | 15,571 | 15,553 | |||||||||||||||
Core earnings per share, diluted (2) | (A/L) | $ | 0.47 | $ | 0.59 | $ | 0.58 | $ | 0.56 | $ | 0.52 | ||||||||||
Tangible book value per share, period-end (2) | (I/K) | 17.63 | 16.94 | 16.11 | 16.00 | 15.78 | |||||||||||||||
Securities adjustment, net of tax (1) (4) | (M) | (1,842 | ) | (8,663 | ) | (17,152 | ) | (12,594 | ) | (10,237 | ) | ||||||||||
Tangible book value per share, excluding securities adjustment (2) | (I+M)/K | 17.75 | 17.50 | 17.22 | 16.81 | 16.44 | |||||||||||||||
Total tangible shareholders' equity/total tangible assets (2) | (I/J) | 7.77 | 7.51 | 7.24 | 7.22 | 7.17 | |||||||||||||||
BAR HARBOR BANKSHARES | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA- UNAUDITED | |||||||||||||||||||||
At or for the Quarters Ended | |||||||||||||||||||||
(in thousands) | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||||||||
Performance ratios | |||||||||||||||||||||
GAAP return on assets | 0.83 | % | 0.85 | % | 1.01 | % | 0.97 | % | 0.90 | % | |||||||||||
Core return on assets (2) | (A/F) | 0.83 | 1.03 | 1.01 | 1.00 | 0.93 | |||||||||||||||
GAAP return on equity | 7.83 | 8.31 | 9.92 | 9.65 | 9.01 | ||||||||||||||||
Core return on equity (2) | (A/G) | 7.83 | 10.01 | 9.98 | 9.86 | 9.31 | |||||||||||||||
Core return on tangible equity (2) (5) | (A+Q)/H | 11.19 | 14.46 | 14.52 | 14.43 | 13.72 | |||||||||||||||
Efficiency ratio (2) (6) | (D-O-Q)/(C+N) | 63.94 | 59.91 | 57.88 | 58.83 | 60.44 | |||||||||||||||
Net interest margin | (B+P)/E | 2.77 | 2.78 | 2.81 | 2.91 | 2.97 | |||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 684 | $ | 633 | $ | 654 | $ | 622 | $ | 645 | ||||||||||
Franchise taxes included in non-interest expense | (O) | 120 | 39 | 129 | 159 | 152 | |||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 515 | 488 | 493 | 502 | 503 | |||||||||||||||
Intangible amortization | (Q) | 207 | 207 | 207 | 207 | 207 |
(1) | Assumes a marginal tax rate of 23.78% in 2019. A marginal tax rate of 24.15% was used in the first and second quarter of 2018 and 23.78% was used in the third and 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) | 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 2019, 24.15% in the first and second quarter of 2018 and 23.78% in the third and fourth quarter of 2018, by tangible equity. |
(6) | 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. |