BAR HARBOR, ME/ ACCESSWIRE / October 27, 2020 / Bar Harbor Bankshares (NYSE American: BHB) reported third quarter 2020 net income of $8.4 million or $0.56 per share compared to $5.0 million or $0.32 per share in the same quarter of 2019. The non-GAAP measure of core earnings increased 30% to $9.2 million, or $0.61 per share in the third quarter 2020 compared to $7.3 million or $0.47 per share in the third quarter of 2019.
THIRD QUARTER FINANCIAL HIGHLIGHTS (compared to the third quarter of 2019, unless otherwise noted)
- 13% annualized total commercial loan growth
- 92% loan to deposit ratio
- 2.98% net interest margin compared to 2.75%
- 32% increase in non-interest income
- 0.56% non-accruing loans to total loans, excluding Paycheck Protection Program (PPP) loans
- 0.88% return on assets compared to 0.55%; 0.96% core return on assets compared to 0.80% (non-GAAP)
- 59.5% efficiency ratio compared to 65.0%
President and Chief Executive Officer, Curtis C. Simard stated, "As a direct result of our well executed strategies, the Company expanded all key performance metrics on a year-over-year and linked quarter basis. These strategies not only entailed expense and deleveraging initiatives, but also focused on increasing core deposits thus reducing overall funding costs, and expanding fee income. Core return on assets increased to 0.96% as we continue to achieve positive operating leverage with minimal reliance on accretion from PPP related fees. We continue to see an upswing in customer activity since our state economies re-opened this past summer on a limited basis and a further rebound in branch operations compared to the first half of the year. Our loan to deposit ratio improved to 92% as we continue to grow deposits on relatively flat, total loan growth. Given the current economic environment, we have selectively grown commercial loans by 14% for the quarter, excluding PPP loans, and pushed much of the mortgage production through our secondary market platform. Our teams did a great job of keeping pace with the high demand of the mortgage markets for new and refinanced loans, resulting in over four times the gains compared to the third quarter 2019. We continue to adhere to our risk-based credit philosophy and profitability disciplines as is evidenced by our results this quarter. Excess liquidity generated during the quarter was used to pay down wholesale borrowings as part of on-going initiatives to de-lever and expand net interest margin."
Mr. Simard continued, "One of our greatest strengths is the diversity in capabilities surrounding fee income. Our wealth management business is a significant contributor to fee income, as well as a keystone for deepening customer relationships with $2.1 billion in assets under management. We had previously consolidated leadership and combined operations onto a common platform in our wealth management business, leading to the unifying of policies and sharing of ideas under one environment driven by best practices. I'm now excited to say we are working with our regulators to bring both of our wealth management companies and our brokerage teams under one name Bar Harbor Wealth Management. Bringing this business together under one brand was the logical next step as we align talent, engagement and culture."
Mr. Simard went on to say, "From an asset quality perspective, the Company experienced a significant decrease in loans under COVID-related forbearance since the second quarter. As of September 30, 2020 total outstanding deferrals, which primarily consist of interest only forbearance, were $78.7 million or 3% of total loans, with consumer mortgages representing $4.6 million of the total or less than half a percent of the consumer portfolio. Our third quarter stress testing resulted in no significant risk-rating downgrades or changes to reserves. Our allowance for loan losses is well established to absorb any inherent losses in our portfolio and increased during the quarter on higher commercial loan growth. Our steady allowance levels coupled with an extensive stress testing process speaks to the quality of our credit culture, while we continue to report low levels of net charge-offs and past due accounts. The increase in non-accruing loans for the quarter is due to one additional commercial loan that has since paid off at its carrying value. The hotel industry is one of our bigger credit exposures; however, we have seen minimal degradation as those borrowers are strong, proven operators with an average loan to value ratio of less than 60% for the segment. More so, any individual hotel exposure with a loan to value ratio greater than 65% was specifically included in our stress testing."
Mr. Simard further stated, "Throughout the year we have supported our customers by originating approximately 1,900 PPP loans totaling $131.6 million. Net unearned fees remaining on PPP loans at the end of the third quarter was $3.8 million and accretion will accelerate as the loans are reimbursed by the Small Business Administration (SBA). At this time we have submitted over 50% of PPP loans to the SBA for forgiveness, pending approval, and our teams continue to work closely with customers on the remaining balance."
Mr. Simard concluded, "Despite the significant challenges posed by the COVID-19 pandemic and related market conditions, we continue to maintain high levels of capital and liquidity, diversified revenue streams, strong credit performance and an exceptional core deposit base. We are confident in our business model to grow investor returns while maintaining our culture and commitment to customers, employees and communities throughout this economic cycle."
FINANCIAL CONDITION
Total assets were $3.9 billion at the end of the third quarter compared to $3.8 billion in the second quarter of 2020. Loan balances in the third quarter 2020 decreased by $20.7 million largely due to secondary market sales and prepayments of residential mortgages offset by total commercial loan growth. Mortgage loan originations totaled $86.5 million from new and refinancing activity given the lower interest rate environment. During the quarter nearly all residential originations were sold in the secondary market to generate fee income. Total commercial loans grew at an annualized rate of 13% led by commercial real estate loans offset by a decrease in commercial and industrial (C&I) loans. The decrease in C&I is primarily due to one customer with loans totaling $39.8 million that were refinanced to a lower principal of $25.0 million along with an open line of credit. Core deposits increased 21% on an annualized basis due to growth from new accounts and an overall decrease in customer spending given current market conditions. As a result the loan to deposit ratio improved to 92% in the third quarter 2020 compared to 101% in the second quarter of 2020. Borrowings decreased by $161.4 million as excess liquidity primarily from higher deposit balances was used to pay down short-term borrowings. As part of the deleveraging strategy, total securities decreased $43.3 million in the third quarter as we allowed for natural run-off of amortizing and maturing fixed rate investments with the pay down of short term borrowings.
The third quarter 2020 allowance for loan losses increased by $1.4 million, which includes a $1.8 million provision for loan loss offset by net charge-offs of $402 thousand. The allowance for loan losses to total loans ratio for the third quarter expanded to 0.66% from 0.60% in the second quarter 2020 based on commercial loan growth and adjustments to reflect current economic conditions. Past due and delinquent loans as a percentage of total loans decreased to 0.77% from 0.83% at the end of the second quarter. The increase in non-accruing loans in the third quarter is primarily due to an additional commercial loan totaling $693 thousand that has subsequently settled at its carrying value. Third quarter stress testing of the Company's commercial loan portfolio included the top 50 relationships, all criticized loans greater than $1.0 million, hospitality loans over $250 thousand with loan to values in excess of 65%, and any seasonal payment, restaurant, or term loans maturing within a year that are greater than $500 thousand. Results of the stress testing led to no significant risk-rating downgrades or changes to reserves. While the impact of COVID-19 and other market conditions remain uncertain, we believe the existing allowance for loan losses is sufficient to absorb inherent losses based on our disciplined credit approach, experienced losses and methodology, and current and ongoing stress testing reviews of the portfolio.
The Company's book value per share was $27.09 at the end of the third quarter 2020 compared to $26.56 at the end of the second quarter 2020. Tangible book value per share (non-GAAP measure) was $18.56 at the end of the third quarter 2020 compared to $18.18 at the second quarter 2020; an annualized growth rate of 8%. A continued low interest rate environment has had a positive impact on the fair value of the Company's securities portfolio. Other comprehensive income included unrealized gains on securities totaling $11.7 million in the third quarter 2020 compared to $11.4 million at the end of the second quarter 2020.
RESULTS OF OPERATIONS
Net income in the third quarter 2020 was $8.4 million, or $0.56 per share, compared to $5.0 million, or $0.32 per share, in the same quarter of 2019. The non-GAAP measure of core earnings in the third quarter 2020 totaled $9.2 million, or $0.61 per share, compared to $7.3 million, or $0.47 per share, in the same quarter of 2019. The improvement in net income is driven by expanded net interest margin and higher non-interest income. Net interest margin in the third quarter 2020 increased to 2.98% from 2.75% in the same period of 2019 primarily due to a lower cost of funds. Costs of funds decreased to 0.82% compared to 1.65% in the third quarter 2019 due to a shift in funding sources from borrowings to core deposits. Cost of deposits and borrowings also benefited from the Federal Reserve rate cuts in 2020 and other key indexes in response to COVID-19. Additionally, excess liquidity was used to pay off $239.4 million of borrowings since the third quarter of 2019 in connection with deleveraging strategies that further reduced interest expense. Yields from earning assets were 3.67% compared to 4.17% in the third quarter 2019 reflecting loan originations and repricing of variable rate products in a lower interest rate environment. Excluding the effects of PPP loans, the third quarter yield on total earning assets was 3.72%. Net unearned fees on PPP loans at the end of the third quarter was $3.8 million and accretion will accelerate as the loans are reimbursed by the Small Business Administration.
The third quarter 2020 provision for loan losses increased to $1.8 million from $893 thousand in the same quarter 2019. While overall credit quality in the loan portfolio remains strong, the increase in the reserve is indicative of the continued commercial loan growth and higher economic adjustments reflecting elevated risk from COVID-19.
Non-interest income in the third quarter 2020 was $10.1 million compared to $7.6 million in the same quarter in 2019. The increase is primarily due to a $2.2 million increase in mortgage banking income associated with secondary market sales of $86.2 million compared to $20.7 million in the same quarter of 2019. Customer service fees increased 13% and trust and investment management fees increased 17% as the result of expanded operations into Central Maine partially offset by lower activity stemming from COVID-19.
Non-interest expense was $22.4 million in the third quarter 2020 compared to $23.4 million in the same quarter of 2019. The decrease is principally due to lower acquisition, conversion and other expenses, which totaled $691 thousand in 2020 compared to $3.0 million in 2019. Salary and benefit expense and occupancy costs were also higher during the third quarter 2020 to support the Company's expanded branch model and wealth management business. Operating expenses remained controlled as demonstrated by the drop in the efficiency ratio to 59.5% compared to 65.0% for the same period a year ago.
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 headings "THIRD QUARTER FINANCIAL HIGHLIGHTS", "FINANCIAL CONDITION" and "RESULTS OF OPERATIONS" 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, 2019. 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 | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.56 | $ | 0.55 | $ | 0.50 | $ | 0.27 | $ | 0.32 | ||||||||||
Core earnings, diluted (1) (2) | 0.61 | 0.56 | 0.50 | 0.56 | 0.47 | |||||||||||||||
Total book value | 27.09 | 26.56 | 25.90 | 25.48 | 25.37 | |||||||||||||||
Tangible book value (2) | 18.56 | 18.18 | 17.70 | 17.30 | 18.49 | |||||||||||||||
Market price at period end | 20.55 | 22.39 | 17.28 | 25.39 | 24.93 | |||||||||||||||
Dividends | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | |||||||||||||||
PERFORMANCE RATIOS (3) | ||||||||||||||||||||
Return on assets | 0.88 | % | 0.90 | % | 0.85 | % | 0.46 | % | 0.55 | % | ||||||||||
Core return on assets (1) (2) | 0.96 | 0.91 | 0.86 | 0.96 | 0.80 | |||||||||||||||
Return on equity | 8.22 | 8.40 | 7.64 | 4.21 | 5.04 | |||||||||||||||
Core return on equity (1) (2) | 8.98 | 8.52 | 7.71 | 8.81 | 7.36 | |||||||||||||||
Core return on tangible equity (1) (2) | 13.36 | 12.72 | 11.54 | 12.66 | 10.31 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (2) (4) | 2.98 | 3.00 | 3.06 | 2.95 | 2.75 | |||||||||||||||
Net interest margin (FTE), excluding purchased loan accretion (2) (4) | 2.92 | 2.88 | 2.99 | 2.88 | 2.65 | |||||||||||||||
Efficiency ratio (2) | 59.47 | 60.67 | 64.82 | 62.56 | 65.02 | |||||||||||||||
ORGANIC GROWTH (Year-to-date, annualized) (2) (6) | ||||||||||||||||||||
Total commercial loans | 27 | % | 33 | % | 6 | % | 6 | % | 11 | % | ||||||||||
Total loans | 3 | 7 | (1 | ) | 2 | 5 | ||||||||||||||
Total deposits | 12 | (0 | ) | (7 | ) | (2 | ) | 1 | ||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets | $ | 3,860 | $ | 3,780 | $ | 3,677 | $ | 3,669 | $ | 3,612 | ||||||||||
Total earning assets (5) | 3,312 | 3,376 | 3,269 | 3,336 | 3,270 | |||||||||||||||
Total investments | 619 | 662 | 646 | 684 | 703 | |||||||||||||||
Total loans | 2,709 | 2,729 | 2,635 | 2,641 | 2,577 | |||||||||||||||
Allowance for loan losses | 18 | 17 | 15 | 15 | 15 | |||||||||||||||
Total goodwill and intangible assets | 127 | 128 | 128 | 127 | 107 | |||||||||||||||
Total deposits | 2,935 | 2,695 | 2,651 | 2,696 | 2,494 | |||||||||||||||
Total shareholders' equity | 404 | 404 | 404 | 396 | 394 | |||||||||||||||
Net income | 8 | 8 | 8 | 4 | 5 | |||||||||||||||
Core earnings (1) (2) | 9 | 9 | 8 | 9 | 7 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.06 | % | 0.02 | % | 0.18 | % | 0.08 | % | 0.02 | % | ||||||||||
Allowance for loan losses/total loans | 0.66 | 0.60 | 0.58 | 0.58 | 0.60 | |||||||||||||||
Loans/deposits | 92 | 101 | 99 | 98 | 103 | |||||||||||||||
Shareholders' equity to total assets | 10.48 | 10.69 | 10.98 | 10.80 | 10.92 | |||||||||||||||
Tangible shareholders' equity to tangible assets | 7.42 | 7.57 | 7.77 | 7.60 | 8.20 | |||||||||||||||
- Core measurements are non-GAAP financial measures 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, other real estate owned and premises and equipment. Refer to the Reconciliation of Non-GAAP Financial Measures in table J for additional information.
- Non-GAAP financial measure.
- All performance ratios are based on average balance sheet amounts, where applicable.
- Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.
- Earning assets includes non-accruing loans and securities are valued at amortized cost.
- 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
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 53,173 | $ | 52,776 | $ | 68,481 | $ | 37,261 | $ | 50,032 | ||||||||||
Interest-bearing deposits with the Federal Reserve Bank | 162,484 | 17,897 | 17,174 | 19,649 | 21,561 | |||||||||||||||
Total cash and cash equivalents | 215,657 | 70,673 | 85,655 | 56,910 | 71,593 | |||||||||||||||
Securities available for sale, at fair value | 604,529 | 641,574 | 626,341 | 663,230 | 675,675 | |||||||||||||||
Federal Home Loan Bank stock | 13,975 | 20,265 | 19,897 | 20,679 | 27,469 | |||||||||||||||
Total securities | 618,504 | 661,839 | 646,238 | 683,909 | 703,144 | |||||||||||||||
Commercial real estate | 1,045,635 | 982,070 | 948,178 | 930,661 | 923,773 | |||||||||||||||
Commercial and industrial | 522,510 | 539,442 | 426,357 | 423,291 | 402,706 | |||||||||||||||
Residential real estate | 1,021,206 | 1,083,708 | 1,132,328 | 1,151,857 | 1,143,452 | |||||||||||||||
Consumer | 119,340 | 124,197 | 128,120 | 135,283 | 107,375 | |||||||||||||||
Total loans | 2,708,691 | 2,729,417 | 2,634,983 | 2,641,092 | 2,577,306 | |||||||||||||||
Less: Allowance for loan losses | (17,907 | ) | (16,509 | ) | (15,297 | ) | (15,353 | ) | (15,353 | ) | ||||||||||
Net loans | 2,690,784 | 2,712,908 | 2,619,686 | 2,625,739 | 2,561,953 | |||||||||||||||
Premises and equipment, net | 51,424 | 50,464 | 49,978 | 51,205 | 47,644 | |||||||||||||||
Other real estate owned | 1,983 | 2,318 | 2,205 | 2,236 | 2,455 | |||||||||||||||
Goodwill | 119,477 | 119,477 | 119,477 | 118,649 | 100,085 | |||||||||||||||
Other intangible assets | 7,913 | 8,155 | 8,398 | 8,641 | 6,879 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 77,388 | 76,896 | 76,400 | 75,863 | 75,368 | |||||||||||||||
Deferred tax asset, net | 2,180 | 2,451 | 3,166 | 3,865 | 4,988 | |||||||||||||||
Other assets | 74,400 | 75,084 | 66,139 | 42,111 | 38,365 | |||||||||||||||
Total assets | $ | 3,859,710 | $ | 3,780,265 | $ | 3,677,342 | $ | 3,669,128 | $ | 3,612,474 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 515,064 | $ | 504,325 | $ | 400,410 | $ | 414,534 | $ | 380,707 | ||||||||||
NOW deposits | 706,048 | 642,908 | 578,320 | 575,809 | 490,315 | |||||||||||||||
Savings deposits | 511,938 | 466,668 | 423,345 | 388,683 | 360,570 | |||||||||||||||
Money market deposits | 388,356 | 402,835 | 404,385 | 384,090 | 359,328 | |||||||||||||||
Time deposits | 813,509 | 678,126 | 844,097 | 932,635 | 902,665 | |||||||||||||||
Total deposits | 2,934,915 | 2,694,862 | 2,650,557 | 2,695,751 | 2,493,585 | |||||||||||||||
Senior borrowings | 385,472 | 546,863 | 497,580 | 471,396 | 641,819 | |||||||||||||||
Subordinated borrowings | 59,920 | 59,879 | 59,849 | 59,920 | 42,928 | |||||||||||||||
Total borrowings | 445,392 | 606,742 | 557,429 | 531,316 | 684,747 | |||||||||||||||
Other liabilities | 74,958 | 74,487 | 65,601 | 45,654 | 39,683 | |||||||||||||||
Total liabilities | 3,455,265 | 3,376,091 | 3,273,587 | 3,272,721 | 3,218,015 | |||||||||||||||
Total common shareholders' equity | 404,445 | 404,174 | 403,755 | 396,407 | 394,459 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,859,710 | $ | 3,780,265 | $ | 3,677,342 | $ | 3,669,128 | $ | 3,612,474 | ||||||||||
Net shares outstanding | 14,929 | 15,214 | 15,587 | 15,558 | 15,549 | |||||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| Annualized | ||||||||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Quarter | Year to | ||||||||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | End | Date | |||||||||||||||||||||
Commercial real estate | $ | 1,045,635 | $ | 982,070 | $ | 948,178 | $ | 930,661 | $ | 923,773 | 26 | % | 16 | % | ||||||||||||||
Commercial and industrial | 456,184 | 472,524 | 321,605 | 318,988 | 301,590 | (14 | ) | 57 | ||||||||||||||||||||
Total commercial loans | 1,501,819 | 1,454,594 | 1,269,783 | 1,249,649 | 1,225,363 | 13 | 27 | |||||||||||||||||||||
Residential real estate | 1,021,206 | 1,083,708 | 1,132,328 | 1,151,857 | 1,143,452 | (23 | ) | (15 | ) | |||||||||||||||||||
Consumer | 119,340 | 124,197 | 128,120 | 135,283 | 107,375 | (16 | ) | (16 | ) | |||||||||||||||||||
Tax exempt and other | 66,326 | 66,918 | 104,752 | 104,303 | 101,116 | (4 | ) | (49 | ) | |||||||||||||||||||
Total loans | $ | 2,708,691 | $ | 2,729,417 | $ | 2,634,983 | $ | 2,641,092 | $ | 2,577,306 | (3 | )% | 3 | % | ||||||||||||||
DEPOSIT ANALYSIS
| Annualized | ||||||||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Quarter | Year to | ||||||||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | End | Date | |||||||||||||||||||||
Demand | $ | 515,064 | $ | 504,325 | $ | 400,410 | $ | 414,534 | $ | 380,707 | 9 | % | 32 | % | ||||||||||||||
NOW | 706,048 | 642,908 | 578,320 | 575,809 | 490,315 | 39 | 30 | |||||||||||||||||||||
Savings | 511,938 | 466,668 | 423,345 | 388,683 | 360,570 | 39 | 42 | |||||||||||||||||||||
Money market | 388,356 | 402,835 | 404,385 | 384,090 | 359,328 | (14 | ) | 1 | ||||||||||||||||||||
Total non-maturity deposits | 2,121,406 | 2,016,736 | 1,806,460 | 1,763,116 | 1,590,920 | 21 | 27 | |||||||||||||||||||||
Total time deposits | 813,509 | 678,126 | 844,097 | 932,635 | 902,665 | 80 | (17 | ) | ||||||||||||||||||||
Total deposits | $ | 2,934,915 | $ | 2,694,862 | $ | 2,650,557 | $ | 2,695,751 | $ | 2,493,585 | 36 | % | 12 | % | ||||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
(in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Loans | $ | 25,918 | $ | 28,157 | $ | 80,398 | $ | 82,681 | ||||||||
Securities and other | 4,557 | 6,105 | 15,006 | 18,593 | ||||||||||||
Total interest and dividend income | 30,475 | 34,262 | 95,404 | 101,274 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 3,869 | 7,143 | 14,437 | 20,336 | ||||||||||||
Borrowings | 1,941 | 4,674 | 7,149 | 15,232 | ||||||||||||
Total interest expense | 5,810 | 11,817 | 21,586 | 35,568 | ||||||||||||
Net interest income | 24,665 | 22,445 | 73,818 | 65,706 | ||||||||||||
Provision for loan losses | 1,800 | 893 | 4,265 | 1,779 | ||||||||||||
Net interest income after provision for loan losses | 22,865 | 21,552 | 69,553 | 63,927 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and investment management fee income | 3,532 | 3,013 | 10,060 | 8,836 | ||||||||||||
Customer service fees | 2,886 | 2,553 | 8,437 | 7,336 | ||||||||||||
Gain on sales of securities, net | - | 157 | 1,486 | 157 | ||||||||||||
Mortgage banking income | 2,649 | 452 | 4,230 | 1,094 | ||||||||||||
Bank-owned life insurance income | 492 | 497 | 1,525 | 1,558 | ||||||||||||
Customer derivative income | 316 | 828 | 1,417 | 1,553 | ||||||||||||
Other income | 227 | 143 | 1,078 | 729 | ||||||||||||
Total non-interest income | 10,102 | 7,643 | 28,233 | 21,263 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 11,809 | 11,364 | 35,602 | 33,568 | ||||||||||||
Occupancy and equipment | 4,279 | 3,415 | 12,559 | 10,101 | ||||||||||||
Loss on sales of premises and equipment, net | - | - | 90 | 21 | ||||||||||||
Outside services | 438 | 424 | 1,414 | 1,278 | ||||||||||||
Professional services | 479 | 707 | 1,488 | 1,821 | ||||||||||||
Communication | 215 | 189 | 698 | 707 | ||||||||||||
Marketing | 300 | 613 | 970 | 1,419 | ||||||||||||
Amortization of intangible assets | 256 | 207 | 768 | 621 | ||||||||||||
Loss on debt extinguishment | - | - | 1,351 | - | ||||||||||||
Acquisition, conversion and other expenses | 691 | 3,039 | 952 | 3,319 | ||||||||||||
Other expenses | 3,952 | 3,442 | 11,152 | 10,075 | ||||||||||||
Total non-interest expense | 22,419 | 23,400 | 67,044 | 62,930 | ||||||||||||
Income before income taxes | 10,548 | 5,795 | 30,742 | 22,260 | ||||||||||||
Income tax expense | 2,146 | 780 | 6,138 | 3,847 | ||||||||||||
Net income | $ | 8,402 | $ | 5,015 | $ | 24,604 | $ | 18,413 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.56 | $ | 0.32 | $ | 1.60 | $ | 1.19 | ||||||||
Diluted | 0.56 | 0.32 | 1.60 | 1.18 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 15,079 | 15,547 | 15,359 | 15,536 | ||||||||||||
Diluted | 15,103 | 15,581 | 15,382 | 15,582 | ||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands, except per share data) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 25,918 | $ | 26,493 | $ | 27,987 | $ | 28,361 | $ | 28,157 | ||||||||||
Securities and other | 4,557 | 4,942 | 5,507 | 5,756 | 6,105 | |||||||||||||||
Total interest and dividend income | 30,475 | 31,435 | 33,494 | 34,117 | 34,262 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 3,869 | 4,548 | 6,020 | 6,698 | 7,143 | |||||||||||||||
Borrowings | 1,941 | 2,297 | 2,911 | 3,315 | 4,674 | |||||||||||||||
Total interest expense | 5,810 | 6,845 | 8,931 | 10,013 | 11,817 | |||||||||||||||
Net interest income | 24,665 | 24,590 | 24,563 | 24,104 | 22,445 | |||||||||||||||
Provision for loan losses | 1,800 | 1,354 | 1,111 | 538 | 893 | |||||||||||||||
Net interest income after provision for loan losses | 22,865 | 23,236 | 23,452 | 23,566 | 21,552 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 3,532 | 3,159 | 3,369 | 3,227 | 3,013 | |||||||||||||||
Customer service fees | 2,886 | 2,439 | 3,112 | 2,791 | 2,553 | |||||||||||||||
Gain on sales of securities, net | - | 1,351 | 135 | 80 | 157 | |||||||||||||||
Mortgage banking income | 2,649 | 1,124 | 457 | 532 | 452 | |||||||||||||||
Bank-owned life insurance income | 492 | 496 | 537 | 495 | 497 | |||||||||||||||
Customer derivative income | 316 | 513 | 588 | 475 | 828 | |||||||||||||||
Other income | 227 | 628 | 223 | 206 | 143 | |||||||||||||||
Total non-interest income | 10,102 | 9,710 | 8,421 | 7,806 | 7,643 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 11,809 | 11,909 | 11,884 | 11,432 | 11,364 | |||||||||||||||
Occupancy and equipment | 4,279 | 3,860 | 4,420 | 4,113 | 3,415 | |||||||||||||||
(Gain) loss on sales of premises and equipment, net | - | (2 | ) | 92 | (3 | ) | - | |||||||||||||
Outside services | 438 | 442 | 534 | 540 | 424 | |||||||||||||||
Professional services | 479 | 337 | 672 | 370 | 707 | |||||||||||||||
Communication | 215 | 194 | 289 | 114 | 189 | |||||||||||||||
Marketing | 300 | 282 | 388 | 453 | 613 | |||||||||||||||
Amortization of intangible assets | 256 | 256 | 256 | 240 | 207 | |||||||||||||||
Loss on debt extinguishment | - | 1,351 | - | 1,096 | - | |||||||||||||||
Acquisition, conversion and other expenses | 691 | 158 | 103 | 4,998 | 3,039 | |||||||||||||||
Other expenses | 3,952 | 3,479 | 3,721 | 3,450 | 3,442 | |||||||||||||||
Total non-interest expense | 22,419 | 22,266 | 22,359 | 26,803 | 23,400 | |||||||||||||||
Income before income taxes | 10,548 | 10,680 | 9,514 | 4,569 | 5,795 | |||||||||||||||
Income tax expense | 2,146 | 2,199 | 1,793 | 362 | 780 | |||||||||||||||
Net income | $ | 8,402 | $ | 8,481 | $ | 7,721 | $ | 4,207 | $ | 5,015 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.56 | $ | 0.55 | $ | 0.50 | $ | 0.27 | $ | 0.32 | ||||||||||
Diluted | 0.56 | 0.55 | 0.50 | 0.27 | 0.32 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 15,079 | 15,424 | 15,558 | 15,554 | 15,547 | |||||||||||||||
Diluted | 15,103 | 15,441 | 15,593 | 15,602 | 15,581 | |||||||||||||||
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||||||||
Earning assets | ||||||||||||||||||||
Commercial real estate | 3.81 | % | 4.11 | % | 4.46 | % | 4.69 | % | 4.74 | % | ||||||||||
Commercial and industrial | 4.09 | 3.97 | 4.89 | 4.58 | 4.78 | |||||||||||||||
Residential | 3.71 | 3.81 | 3.84 | 3.89 | 3.88 | |||||||||||||||
Consumer | 3.42 | 3.81 | 5.20 | 4.84 | 5.13 | |||||||||||||||
Total loans | 3.81 | 3.94 | 4.30 | 4.33 | 4.38 | |||||||||||||||
Securities and other | 3.05 | 3.26 | 3.53 | 3.49 | 3.44 | |||||||||||||||
Total earning assets | 3.67 | % | 3.81 | % | 4.14 | % | 4.15 | % | 4.17 | % | ||||||||||
Funding liabilities | ||||||||||||||||||||
NOW | 0.14 | % | 0.14 | % | 0.40 | % | 0.44 | % | 0.51 | % | ||||||||||
Savings | 0.13 | 0.15 | 0.25 | 0.20 | 0.21 | |||||||||||||||
Money market | 0.16 | 0.40 | 1.01 | 1.17 | 1.37 | |||||||||||||||
Time deposits | 1.69 | 1.94 | 1.92 | 2.06 | 2.16 | |||||||||||||||
Total interest-bearing deposits | 0.66 | 0.81 | 1.08 | 1.19 | 1.33 | |||||||||||||||
Borrowings | 1.60 | 1.51 | 2.10 | 2.30 | 2.62 | |||||||||||||||
Total interest-bearing liabilities | 0.82 | % | 0.96 | % | 1.28 | % | 1.42 | % | 1.65 | % | ||||||||||
Net interest spread | 2.85 | 2.85 | 2.86 | 2.73 | 2.52 | |||||||||||||||
Net interest margin | 2.98 | 3.00 | 3.06 | 2.95 | 2.75 | |||||||||||||||
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
Assets | ||||||||||||||||||||
Commercial real estate | $ | 1,012,194 | $ | 952,264 | $ | 945,851 | $ | 928,445 | $ | 900,568 | ||||||||||
Commercial and industrial | 531,339 | 522,360 | 423,393 | 412,595 | 410,453 | |||||||||||||||
Residential real estate | 1,060,084 | 1,117,608 | 1,141,908 | 1,156,215 | 1,154,552 | |||||||||||||||
Consumer | 121,248 | 126,413 | 130,471 | 127,425 | 109,562 | |||||||||||||||
Total loans (1) | 2,724,865 | 2,718,645 | 2,641,623 | 2,624,680 | 2,575,135 | |||||||||||||||
Securities and other (2) | 627,162 | 648,185 | 661,848 | 683,939 | 732,925 | |||||||||||||||
Total earning assets | 3,352,027 | 3,366,830 | 3,303,471 | 3,308,619 | 3,308,060 | |||||||||||||||
Cash and due from banks | 128,587 | 114,232 | 57,751 | 67,642 | 62,999 | |||||||||||||||
Allowance for loan losses | (17,028 | ) | (15,678 | ) | (15,242 | ) | (15,657 | ) | (14,965 | ) | ||||||||||
Goodwill and other intangible assets | 127,508 | 127,751 | 128,014 | 114,537 | 107,058 | |||||||||||||||
Other assets | 223,316 | 213,986 | 187,765 | 179,512 | 178,804 | |||||||||||||||
Total assets | $ | 3,814,410 | $ | 3,807,121 | $ | 3,661,759 | $ | 3,654,653 | $ | 3,641,956 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
NOW | $ | 677,706 | $ | 611,860 | $ | 570,127 | $ | 551,335 | $ | 487,506 | ||||||||||
Savings | 488,508 | 450,621 | 410,931 | 378,997 | 359,242 | |||||||||||||||
Money market | 396,351 | 411,232 | 373,650 | 379,361 | 338,013 | |||||||||||||||
Time deposits | 777,424 | 776,042 | 892,654 | 918,528 | 947,949 | |||||||||||||||
Total interest bearing deposits | 2,339,989 | 2,249,755 | 2,247,362 | 2,228,221 | 2,132,710 | |||||||||||||||
Borrowings | 481,687 | 612,538 | 556,824 | 571,936 | 708,222 | |||||||||||||||
Total interest-bearing liabilities | 2,821,676 | 2,862,293 | 2,804,186 | 2,800,157 | 2,840,932 | |||||||||||||||
Non-interest-bearing demand deposits | 507,844 | 472,688 | 406,951 | 418,324 | 368,100 | |||||||||||||||
Other liabilities | 78,072 | 66,302 | 44,343 | 40,136 | 37,975 | |||||||||||||||
Total liabilities | 3,407,592 | 3,401,283 | 3,255,480 | 3,258,617 | 3,247,007 | |||||||||||||||
Total shareholders' equity | 406,818 | 405,838 | 406,279 | 396,036 | 394,949 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,814,410 | $ | 3,807,121 | $ | 3,661,759 | $ | 3,654,653 | $ | 3,641,956 | ||||||||||
- Total loans include non-accruing loans.
- 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 | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 4,714 | $ | 3,981 | $ | 2,227 | $ | 3,489 | $ | 8,519 | ||||||||||
Commercial installment | 1,820 | 1,790 | 1,996 | 1,836 | 2,077 | |||||||||||||||
Residential real estate | 7,154 | 7,194 | 5,089 | 5,335 | 5,340 | |||||||||||||||
Consumer installment | 720 | 1,023 | 744 | 890 | 743 | |||||||||||||||
Total non-accruing loans | 14,408 | 13,988 | 10,056 | 11,550 | 16,679 | |||||||||||||||
Other real estate owned | 1,983 | 2,318 | 2,205 | 2,236 | 2,455 | |||||||||||||||
Total non-performing assets | $ | 16,391 | $ | 16,306 | $ | 12,261 | $ | 13,786 | $ | 19,134 | ||||||||||
Total non-accruing loans/total loans | 0.53 | % | 0.51 | % | 0.38 | % | 0.44 | % | 0.65 | % | ||||||||||
Total non-performing assets/total assets | 0.42 | 0.43 | 0.33 | 0.38 | 0.53 | |||||||||||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 16,509 | $ | 15,297 | $ | 15,353 | $ | 15,353 | $ | 14,572 | ||||||||||
Charged-off loans | (439 | ) | (220 | ) | (1,211 | ) | (603 | ) | (215 | ) | ||||||||||
Recoveries on charged-off loans | 37 | 78 | 44 | 65 | 103 | |||||||||||||||
Net loans charged-off | (402 | ) | (142 | ) | (1,167 | ) | (538 | ) | (112 | ) | ||||||||||
Provision for loan losses | 1,800 | 1,354 | 1,111 | 538 | 893 | |||||||||||||||
Balance at end of period | $ | 17,907 | $ | 16,509 | $ | 15,297 | $ | 15,353 | $ | 15,353 | ||||||||||
Allowance for loan losses/total loans | 0.66 | % | 0.60 | % | 0.58 | % | 0.58 | % | 0.60 | % | ||||||||||
Allowance for loan losses/non-accruing loans | 124 | 118 | 152 | 133 | 92 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (252 | ) | $ | 71 | $ | (846 | ) | $ | (92 | ) | $ | 1 | |||||||
Commercial installment | (10 | ) | (155 | ) | (170 | ) | (331 | ) | 62 | |||||||||||
Residential real estate | 1 | (20 | ) | (1 | ) | (16 | ) | (124 | ) | |||||||||||
Consumer installment | (141 | ) | (38 | ) | (150 | ) | (99 | ) | (51 | ) | ||||||||||
Total, net | $ | (402 | ) | $ | (142 | ) | $ | (1,167 | ) | $ | (538 | ) | $ | (112 | ) | |||||
Net charge-offs (QTD annualized)/average loans | 0.06 | % | 0.02 | % | 0.18 | % | 0.08 | % | 0.02 | % | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.08 | 0.10 | 0.18 | 0.03 | 0.02 | |||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.16 | % | 0.28 | % | 0.84 | % | 0.74 | % | 0.18 | % | ||||||||||
90+ Days delinquent and still accruing | 0.08 | 0.04 | 0.08 | 0.01 | 0.03 | |||||||||||||||
Total accruing delinquent loans | 0.24 | 0.32 | 0.92 | 0.75 | 0.21 | |||||||||||||||
Non-accruing loans | 0.53 | 0.51 | 0.38 | 0.44 | 0.65 | |||||||||||||||
Total delinquent and non-accruing loans | 0.77 | % | 0.83 | % | 1.30 | % | 1.19 | % | 0.86 | % | ||||||||||
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED
| At or for the Quarters Ended | |||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | |||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||||||||
Net income | $ | 8,402 | $ | 8,481 | $ | 7,721 | $ | 4,207 | $ | 5,015 | |||||||||||
Plus (less): | |||||||||||||||||||||
Gain on sale of securities, net | - | (1,351 | ) | (135 | ) | (80 | ) | (157 | ) | ||||||||||||
(Gain) loss on sale of premises and equipment, net | - | (2 | ) | 92 | (3 | ) | - | ||||||||||||||
Loss on other real estate owned | 335 | - | 31 | 20 | 146 | ||||||||||||||||
Loss on debt extinguishment | - | 1,351 | - | 1,096 | - | ||||||||||||||||
Acquisition, conversion and other expenses | 691 | 158 | 103 | 4,998 | 3,039 | ||||||||||||||||
Income tax expense (1) | (245 | ) | (37 | ) | (22 | ) | (1,440 | ) | (720 | ) | |||||||||||
Total core earnings (2) | (A) | $ | 9,183 | $ | 8,600 | $ | 7,790 | $ | 8,798 | $ | 7,323 | ||||||||||
Net interest income | (B) | $ | 24,665 | $ | 24,590 | $ | 24,563 | $ | 24,104 | $ | 22,445 | ||||||||||
Plus: Non-interest income | 10,102 | 9,710 | 8,421 | 7,806 | 7,643 | ||||||||||||||||
Total Revenue | 34,767 | 34,300 | 32,984 | 31,910 | 30,088 | ||||||||||||||||
Adj: Gain on sale of securities, net | - | (1,351 | ) | (135 | ) | (80 | ) | (157 | ) | ||||||||||||
Total core revenue (2) | (C) | $ | 34,767 | $ | 32,949 | $ | 32,849 | $ | 31,830 | $ | 29,931 | ||||||||||
Total non-interest expense | 22,419 | 22,266 | 22,359 | 26,803 | 23,400 | ||||||||||||||||
Less: Gain (loss) on sale of premises and equipment, net | - | 2 | (92 | ) | 3 | - | |||||||||||||||
Less: Loss on other real estate owned | (335 | ) | - | (31 | ) | (20 | ) | (146 | ) | ||||||||||||
Less: Loss on debt extinguishment | - | (1,351 | ) | - | (1,096 | ) | - | ||||||||||||||
Less: Acquisition, conversion and other expenses | (691 | ) | (158 | ) | (103 | ) | (4,998 | ) | (3,039 | ) | |||||||||||
Core non-interest expense (2) | (D) | $ | 21,393 | $ | 20,759 | $ | 22,133 | $ | 20,692 | $ | 20,215 | ||||||||||
(in millions) | |||||||||||||||||||||
Total average earning assets | (E) | $ | 3,352 | $ | 3,367 | $ | 3,306 | $ | 3,309 | $ | 3,308 | ||||||||||
Total average assets | (F) | 3,814 | 3,807 | 3,662 | 3,655 | 3,642 | |||||||||||||||
Total average shareholders' equity | (G) | 407 | 406 | 406 | 396 | 395 | |||||||||||||||
Total average tangible shareholders' equity (2) (3) | (H) | 279 | 278 | 278 | 281 | 288 | |||||||||||||||
Total tangible shareholders' equity, period-end (2) (3) | (I) | 277 | 277 | 276 | 269 | 287 | |||||||||||||||
Total tangible assets, period-end (2) (3) | (J) | 3,732 | 3,653 | 3,549 | 3,542 | 3,506 | |||||||||||||||
(in thousands) | |||||||||||||||||||||
Total common shares outstanding, period-end | (K) | 14,929 | 15,214 | 15,587 | 15,558 | 15,549 | |||||||||||||||
Average diluted shares outstanding | (L) | 15,103 | 15,441 | 15,593 | 15,602 | 15,581 | |||||||||||||||
Core earnings per share, diluted (2) | (A/L) | $ | 0.61 | $ | 0.56 | $ | 0.50 | $ | 0.56 | $ | 0.47 | ||||||||||
Tangible book value per share, period-end (2) | (I/K) | 18.56 | 18.18 | 17.70 | 17.30 | 18.49 | |||||||||||||||
Securities adjustment, net of tax (1) (4) | (M) | 11,681 | 11,412 | 9,560 | 5,549 | 8,002 | |||||||||||||||
Tangible book value per share, excluding securities adjustment (2) | (I+M)/K | 17.78 | 17.43 | 17.09 | 16.94 | 17.98 | |||||||||||||||
Total tangible shareholders' equity/total tangible assets (2) | (I/J) | 7.42 | 7.57 | 7.77 | 7.60 | 8.20 | |||||||||||||||
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED
| At or for the Quarters Ended | ||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||||||
(in thousands) | 2020 | 2020 | 2020 | 2019 | 2019 | |||||||||||||||||||
Performance ratios (5) | ||||||||||||||||||||||||
GAAP return on assets | 0.88 | % | 0.90 | % | 0.85 | % | 0.46 | % | 0.55 | % | ||||||||||||||
Core return on assets (2) | (A/F) | 0.96 | 0.91 | 0.86 | 0.96 | 0.80 | ||||||||||||||||||
GAAP return on equity | 8.22 | 8.40 | 7.64 | 4.21 | 5.04 | |||||||||||||||||||
Core return on equity (2) | (A/G) | 8.98 | 8.52 | 7.71 | 8.81 | 7.36 | ||||||||||||||||||
Core return on tangible equity (2) (6) | (A+Q)/H | 13.36 | 12.72 | 11.54 | 12.66 | 10.31 | ||||||||||||||||||
Efficiency ratio (2) (7) | (D-O-Q)/(C+N) | 59.47 | 60.67 | 64.82 | 62.56 | 65.02 | ||||||||||||||||||
Net interest margin | (B+P)/E | 2.98 | 3.00 | 3.06 | 2.95 | 2.75 | ||||||||||||||||||
Supplementary data (in thousands) | ||||||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 570 | $ | 646 | $ | 719 | $ | 674 | $ | 658 | |||||||||||||
Franchise taxes included in non-interest expense | (O) | 121 | 120 | 119 | 119 | 119 | ||||||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 416 | 490 | 551 | 516 | 503 | ||||||||||||||||||
Intangible amortization | (Q) | 256 | 256 | 256 | 240 | 207 | ||||||||||||||||||
- Assumes a marginal tax rate of 23.87% for the first three quarters of 2020 and the fourth quarter of 2019 and 23.78% in the first three quarters of 2019.
- Non-GAAP financial measure.
- 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.
- 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.
- All performance ratios are based on average balance sheet amounts, where applicable.
- Adjusted return on tangible equity is computed by taking core earnings divided by shareholders' equity less the tax-effected amortization of intangible assets, assuming a marginal rate of 23.87% for the first three quarters of 2020 and the fourth quarter of 2019, and 23.78% in the first three quarters of 2019.
- Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.
SOURCE: Bar Harbor Bank and Trust
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