BAR HARBOR, ME / ACCESSWIRE / July 21, 2021 / Bar Harbor Bankshares (NYSE American:BHB) reported second quarter 2021 net income of $9.0 million or $0.60 per share from $8.5 million or $0.55 per share in the same quarter of 2020, an increase of 9% in earnings per share. Core earnings (non-GAAP) were $9.4 million, or $0.63 per share, compared to $8.6 million, or $0.56 per share for the same periods. Non-core items (non-GAAP) reduced net income in the second quarter 2021 by $384 thousand, or $0.02 per share.
SECOND QUARTER FINANCIAL HIGHLIGHTS (compared to the second quarter 2020, unless otherwise noted)
- 9% growth in earnings per share, 13% growth in core earnings (non-GAAP)
- 0.97% return on assets; 1.01% core return on assets (non-GAAP)
- 8% annualized total commercial loan growth, excluding PPP loans
- 14% annualized increase in core deposits
- 13% increase in fee income
- Exceptional credit quality
President and Chief Executive Officer, Curtis C. Simard stated, "We had another quarter of double-digit core earnings growth and core return on assets of over 1.00%. Profitability increased on higher fee income driven from growth in core deposits and assets under management (AUM). Customer service income returned to pre-pandemic levels suggesting a potentially meaningful recovery in regional activity, augmented by a lift from our previously announced fee strategies implemented at the start of this year. The 8% annualized growth in commercial loans during the quarter, excluding PPP, reflects our commitment to meeting the needs of our existing customers and developing new relationships as we navigate past PPP activities. Our Wealth Management business continues to be a significant contributor to total non-interest income while our Retail and Commercial loan teams continue to generate new core deposit accounts, especially in DDA categories. More than 1,000 new banking relationships were created in the second quarter, highlighting both existing customer retention efforts and new customer initiatives. With the increase in mortgage rates late in the first quarter, we chose to opportunistically add balances to the balance sheet which helped stem the attrition. However, a focus on IRR management remains top of mind."
Mr. Simard continued, "We continued to organically grow our capital levels expanding tangible equity to tangible assets (non-GAAP) to 8.23%, while maintaining exceptional credit quality. All credit metrics remain strong and further improved in the quarter, primarily marked by lower past dues, minimal net charge-offs and improved coverage ratios. Overall, we continue to see favorable migration in risk ratings across most loan categories. Loan modification concessions made during the pandemic have essentially all resumed normal repayment schedules as of the end of the quarter."
Mr. Simard stated, "As we think about net interest margin (NIM) quarter over quarter, the second quarter had substantially less PPP fee acceleration and was further impacted by the excess cash on hand. Of note, $105 million of wholesale deposits matured on the last day of the quarter which will benefit our cost of funds going forward. We are starting to see a leveling off of NIM, excluding non-recurring items, as reliance on wholesale borrowings continues to be reduced and DDA growth continues. Given our overall asset sensitive balance sheet position and a more core-funded profile, we are well positioned for when rates start to move back up. Excluding the effects of one-time items, our second quarter NIM was 2.95% compared with the same adjusted metric of 2.86% in the first quarter 2021."
Mr. Simard commented, "In the first quarter, we announced the initiation of a comprehensive review of our non-interest expenses which included an annual reduction to salary and benefits of more than $3.0 million, along with additional cost savings associated with vendor contracts and process efficiencies. While some savings have been immediately realized in our second quarter run-rates, others will be phased in depending on contract timelines. As we continue to resume business-as-usual activities, we are also rolling out cost containment initiatives to absorb any potential increases associated with pandemic-delayed expenses. Lastly, we evaluate profitability at each branch within our footprint, at least annually, taking into consideration the unique geography of Northern New England and our customer needs."
Mr. Simard concluded, "As we move into the second half of the year, we are encouraged by an improving economic outlook and better operating conditions. Our collective resilience has prepared and positioned us to move forward with the same resolve that has sustained us throughout the pandemic. We have a unique complementary footprint that is enabling us to utilize all earnings levers that align with our model and strategy. We look forward to continuing to serve our customers and communities in the way they are accustomed to."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of $0.24 per share to shareholders of record at the close of business on August 17, 2021, payable on September 17, 2021. This dividend equates to a 3.35% annualized yield based on the $28.62 closing price of the Company's common stock at the end of the second quarter of 2021.
FINANCIAL CONDITION
Total assets were $3.6 billion at the end of the second quarter as the Company leveraged excess cash liquidity to reduce maturing brokered deposits of $104.7 million during the quarter. Loans decreased $35.5 million during the quarter, or 6% on an annualized basis, primarily due to PPP loan forgiveness and prepayments on residential loans.
During the quarter we developed 76 new commercial relationships, resulting in commercial real estate loan growth of 6% on an annualized basis and commercial and industrial loan growth 13% on an annualized basis, exclusive of PPP loans. PPP loan balances totaled $65.9 million at quarter-end, consisting of $62.7 million of 2021 originations and $3.2 million from 2020. Unearned deferred fee balances on PPP loans totaled $3.7 million at the end of the quarter. These balances are expected to be realized through early 2022. COVID loan modifications totaled $19.0 million, down from $43.0 million at the end of the first quarter 2021, as 97% of modified loans have resumed normal payment schedules. Total residential loans decreased $47.5 million, which includes $84.0 million of originations, $56.0 million of sales in the secondary market and $75.5 million of prepayments/amortization. Total originations during the quarter included $51.0 million that was sold on the secondary market and $33.0 million that was recorded on the balance sheet.
The allowance for credit losses decreased to $22.8 million during the second quarter due to stronger economic forecasts, offset by changes in overall loan mix. Net charge offs totaled $73 thousand, or less than 0.01% of the total loan portfolio, and non-accruing loans decreased to $13.6 million, or 0.54% of the total loans. The ratio of past due loans to total loans improved to 0.15% of total loans at June 30, 2021, decreasing from 0.44% in the first quarter of 2021. Commercial past due loans totaled $1.9 million at quarter end, which is the lowest level since 2016 when the portfolio was approximately 36% of its current size.
Total deposits decreased $90.0 million to $2.8 billion during the quarter, due to lower time deposits, offset by significant growth in core deposits. Core deposits increased $77.8 million, or 14% on an annualized basis, during the quarter. Over 1,000 new customer relationships were added in the quarter. Time deposits decreased $167.7 million during the quarter, primarily due to $104.7 million of brokered deposits not being replaced upon maturity due to excess liquidity. Retail time deposits decreased $63.0 million as customers moved funds to transactional accounts upon contractual maturity.
The Company's book value per share was $27.76 at June 30, 2021, compared with $27.13 at the end of the first quarter 2021. Tangible book value per share (non-GAAP measure) was $19.30 at the end of the second quarter 2021, compared to $18.64 at the end of the first quarter 2021, equating to an annualized growth rate of 14%. Other comprehensive income included unrealized gains on securities totaling $7.2 million in the second quarter 2021 compared to $4.5 million at the end of the first quarter 2021.
RESULTS OF OPERATIONS
Net income in the second quarter 2021 was $9.0 million, or $0.60 per share, compared to $8.5 million, or $0.55 per share, in the same quarter of 2020. Net income benefited from higher fee income and a credit provision recapture in the quarter. Core earnings totaled $9.4 million or $0.63 per share, compared to $8.6 million, or $0.56 per share, in the same quarter of 2020. Non-core items (non-GAAP) reduced net income by $384 thousand and $119 thousand in second quarters of 2021 and 2020, respectively.
Net interest margin equaled 2.74% compared to 2.93% in the same period of 2020. PPP loans contributed 7 basis points to NIM during the quarter as the majority of the remaining 2020 originations were forgiven. Accretion on PPP loans originated in 2021 are not expected to materially affect NIM until loans are forgiven starting in the third quarter 2021. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 19 basis points. The yield on earning assets totaled 3.26% compared to 3.73% in the second quarter 2020. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.44% and 3.98% for the same periods. Costs of funds decreased to 0.66% from 0.96% in the second quarter 2020 due to lower deposit rates and reductions to wholesale funding afforded by significant growth in core deposits. Brokered deposits that matured during second quarter carried 9 basis points of the total funding cost.
The provision for credit losses for the quarter was a benefit of $765 thousand, compared to an expense of $1.4 million in the second quarter of 2020. The provision recapture in the second quarter 2021 is attributable to improving economic forecasts and strong credit quality, offset by shifts in our loan mix.
Non-interest income in the second quarter 2021 equaled $9.5 million, compared to $9.7 million in the same quarter of 2020. Non-interest income, excluding gain on sales of securities, increased 13% on higher customer service fees, wealth management income, and gains on loan sales. Wealth management income increased 20% over the same quarter of 2020 as assets under management increased to $2.4 billion or 12% compared to the same period of 2020. Customer service fees increased $818 thousand compared to the second quarter of 2020 as customer activity and transactions now exceed pre-pandemic levels. Mortgage banking activities continue to contribute a significant amount of fee income, increasing to $1.6 million, compared to $1.1 million in the same period of 2020.
Non-interest expense improved to $21.7 million in the second quarter 2021 from $22.3 million in the same quarter of 2020. Salaries and benefits expense decreased 5% due to implementing workforce reduction programs at the beginning of the second quarter. Non-core expenses (non-GAAP) in the second quarter 2021 totaled $553 thousand and were mostly one-time reduction in workforce. In the same quarter of 2020 non-core expenses (non-GAAP) totaled $1.5 million and included costs to consolidate our wealth management systems and a loss on debt extinguishment.
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 "SECOND 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, 2020 and any subsequently filed Quarterly Reports on Form 10-Q. 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 | |||||||||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||||
PER SHARE DATA | |||||||||||||||||||||
Net earnings, diluted | $ | 0.60 | $ | 0.63 | $ | 0.58 | $ | 0.56 | $ | 0.55 | |||||||||||
Core earnings, diluted (1) (2) | 0.63 | 0.68 | 0.62 | 0.61 | 0.56 | ||||||||||||||||
Total book value | 27.76 | 27.13 | 27.58 | 27.09 | 26.56 | ||||||||||||||||
Tangible book value (2) | 19.30 | 18.64 | 19.05 | 18.56 | 18.18 | ||||||||||||||||
Market price at period end | 28.62 | 29.42 | 22.59 | 20.55 | 22.39 | ||||||||||||||||
Dividends | 0.24 | 0.22 | 0.22 | 0.22 | 0.22 | ||||||||||||||||
PERFORMANCE RATIOS (3) | |||||||||||||||||||||
Return on assets | 0.97 | % | 1.03 | % | 0.92 | % | 0.88 | % | 0.90 | % | |||||||||||
Core return on assets (1) (2) | 1.01 | 1.11 | 0.98 | 0.96 | 0.91 | ||||||||||||||||
Pre-tax, pre-provision return on assets | 1.13 | 1.22 | 1.30 | 1.29 | 1.27 | ||||||||||||||||
Core pre-tax, pre-provision return on assets (1) (2) | 1.18 | 1.32 | 1.38 | 1.39 | 1.29 | ||||||||||||||||
Return on equity | 8.76 | 9.45 | 8.39 | 8.22 | 8.40 | ||||||||||||||||
Core return on equity (1) (2) | 9.13 | 10.13 | 8.95 | 8.98 | 8.52 | ||||||||||||||||
Return on tangible equity | 12.88 | 14.01 | 12.45 | 12.24 | 12.55 | ||||||||||||||||
Core return on tangible equity (1) (2) | 13.42 | 15.00 | 13.27 | 13.36 | 12.72 | ||||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (2) (4) | 2.74 | 2.88 | 3.02 | 2.90 | 2.93 | ||||||||||||||||
Core net interest margin (1) (2) (5) | 2.67 | 2.78 | 2.79 | 2.89 | 2.92 | ||||||||||||||||
Efficiency ratio (2) | 63.45 | 61.95 | 61.98 | 59.47 | 60.67 | ||||||||||||||||
ORGANIC GROWTH (Year-to-date, annualized) (2) | |||||||||||||||||||||
Total commercial loans | 9 | % | 14 | % | 17 | % | 27 | % | 33 | % | |||||||||||
Total loans | (4 | ) | (2 | ) | (3 | ) | 3 | 5 | |||||||||||||
Total deposits | (6 | ) | 1 | 8 | 12 | (0) | |||||||||||||||
FINANCIAL DATA (In millions) | |||||||||||||||||||||
Total assets | $ | 3,640 | $ | 3,730 | $ | 3,726 | $ | 3,860 | $ | 3,780 | |||||||||||
Total earning assets (6) | 3,274 | 3,371 | 3,360 | 3,496 | 3,414 | ||||||||||||||||
Total investments | 636 | 641 | 599 | 619 | 662 | ||||||||||||||||
Total loans | 2,516 | 2,551 | 2,563 | 2,685 | 2,706 | ||||||||||||||||
Allowance for credit losses | 23 | 24 | 19 | 18 | 17 | ||||||||||||||||
Total goodwill and intangible assets | 127 | 127 | 127 | 127 | 128 | ||||||||||||||||
Total deposits | 2,822 | 2,912 | 2,906 | 2,935 | 2,695 | ||||||||||||||||
Total shareholders' equity | 416 | 406 | 411 | 404 | 404 | ||||||||||||||||
Net income | 9 | 9 | 9 | 8 | 8 | ||||||||||||||||
Core earnings (1) (2) | 9 | 10 | 9 | 9 | 9 | ||||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | |||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.01 | % | 0.03 | % | 0.03 | % | 0.06 | % | 0.02 | % | |||||||||||
Allowance for credit losses/total loans | 0.91 | 0.93 | 0.74 | 0.67 | 0.61 | ||||||||||||||||
Loans/deposits | 89 | 88 | 88 | 91 | 100 | ||||||||||||||||
Shareholders' equity to total assets | 11.42 | 10.87 | 11.04 | 10.48 | 10.69 | ||||||||||||||||
Tangible shareholders' equity to tangible assets | 8.23 | 7.73 | 7.90 | 7.42 | 7.57 | ||||||||||||||||
(1) 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.
(2) Non-GAAP financial measure.
(3) All performance ratios are based on average balance sheet amounts, where applicable.
(4) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.
(5) Core net interest margin excludes Paycheck Protection Program loans.
(6) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||||
(in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 41,440 | $ | 39,039 | $ | 27,566 | $ | 22,722 | $ | 24,430 | ||||||||||
Interest-bearing deposits with other banks | 132,278 | 184,473 | 198,441 | 192,935 | 46,243 | |||||||||||||||
Total cash and cash equivalents | 173,718 | 223,512 | 226,007 | 215,657 | 70,673 | |||||||||||||||
Securities available for sale | 621,849 | 626,403 | 585,046 | 604,529 | 641,574 | |||||||||||||||
Federal Home Loan Bank stock | 14,145 | 14,826 | 14,036 | 13,975 | 20,265 | |||||||||||||||
Total securities | 635,994 | 641,229 | 599,082 | 618,504 | 661,839 | |||||||||||||||
Loans held for sale | 7,942 | 10,148 | 23,988 | 23,721 | 22,979 | |||||||||||||||
Total loans | 2,515,560 | 2,551,064 | 2,562,885 | 2,684,970 | 2,706,438 | |||||||||||||||
Less: Allowance for credit losses | (22,815 | ) | (23,653 | ) | (19,082 | ) | (17,907 | ) | (16,509 | ) | ||||||||||
Net loans | 2,492,745 | 2,527,411 | 2,543,803 | 2,667,063 | 2,689,929 | |||||||||||||||
Premises and equipment, net | 51,119 | 52,253 | 52,458 | 51,424 | 50,464 | |||||||||||||||
Other real estate owned | - | - | - | 1,983 | 2,318 | |||||||||||||||
Goodwill | 119,477 | 119,477 | 119,477 | 119,477 | 119,477 | |||||||||||||||
Other intangible assets | 7,198 | 7,431 | 7,670 | 7,913 | 8,155 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 78,886 | 78,388 | 77,870 | 77,388 | 76,896 | |||||||||||||||
Deferred tax asset, net | 4,349 | 5,639 | 1,745 | 2,180 | 2,451 | |||||||||||||||
Other assets | 68,247 | 64,742 | 73,662 | 74,400 | 75,084 | |||||||||||||||
Total assets | $ | 3,639,675 | $ | 3,730,230 | $ | 3,725,762 | $ | 3,859,710 | $ | 3,780,265 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 599,598 | $ | 586,487 | $ | 544,636 | $ | 515,064 | $ | 504,325 | ||||||||||
NOW deposits | 802,681 | 761,817 | 738,849 | 706,048 | 642,908 | |||||||||||||||
Savings deposits | 578,361 | 560,095 | 521,638 | 511,938 | 466,668 | |||||||||||||||
Money market deposits | 371,075 | 365,507 | 402,731 | 388,356 | 402,835 | |||||||||||||||
Time deposits | 470,758 | 638,436 | 698,361 | 813,509 | 678,126 | |||||||||||||||
Total deposits | 2,822,473 | 2,912,342 | 2,906,215 | 2,934,915 | 2,694,862 | |||||||||||||||
Senior borrowings | 279,991 | 292,210 | 276,062 | 385,472 | 546,863 | |||||||||||||||
Subordinated borrowings | 60,042 | 60,003 | 59,961 | 59,920 | 59,879 | |||||||||||||||
Total borrowings | 340,033 | 352,213 | 336,023 | 445,392 | 606,742 | |||||||||||||||
Other liabilities | 61,597 | 60,094 | 72,183 | 74,958 | 74,487 | |||||||||||||||
Total liabilities | 3,224,103 | 3,324,649 | 3,314,421 | 3,455,265 | 3,376,091 | |||||||||||||||
Total common shareholders' equity | 415,572 | 405,581 | 411,341 | 404,445 | 404,174 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,639,675 | $ | 3,730,230 | $ | 3,725,762 | $ | 3,859,710 | $ | 3,780,265 | ||||||||||
Net shares outstanding | 14,972 | 14,950 | 14,916 | 14,929 | 15,214 | |||||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| Annualized Growth % | ||||||||||||||||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Quarter | Year to | ||||||||||||||||||||||
(in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | End | Date | |||||||||||||||||||||
Commercial real estate | $ | 1,135,857 | $ | 1,118,669 | $ | 1,084,381 | $ | 1,045,635 | $ | 982,070 | 6 | % | 9 | % | ||||||||||||||
Commercial and industrial | 327,729 | 317,500 | 323,864 | 324,647 | 340,898 | 13 | 2 | |||||||||||||||||||||
Paycheck Protection Program (PPP) | 65,918 | 77,878 | 53,774 | 131,537 | 131,626 | (61 | ) | 45 | ||||||||||||||||||||
Total commercial loans | 1,529,504 | 1,514,047 | 1,462,019 | 1,501,819 | 1,454,594 | 4 | 9 | |||||||||||||||||||||
Total commercial loans, excluding PPP | 1,463,586 | 1,436,169 | 1,408,245 | 1,370,282 | 1,322,968 | 8 | 8 | |||||||||||||||||||||
Residential real estate | 822,774 | 868,084 | 923,891 | 997,485 | 1,060,729 | (21 | ) | (22 | ) | |||||||||||||||||||
Consumer | 103,589 | 106,835 | 113,544 | 119,340 | 124,197 | (12 | ) | (18 | ) | |||||||||||||||||||
Tax exempt and other | 59,693 | 62,098 | 63,431 | 66,326 | 66,918 | (15 | ) | (12 | ) | |||||||||||||||||||
Total loans | $ | 2,515,560 | $ | 2,551,064 | $ | 2,562,885 | $ | 2,684,970 | $ | 2,706,438 | (6 | )% | (4 | )% | ||||||||||||||
DEPOSIT ANALYSIS
| Annualized Growth % | ||||||||||||||||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Quarter | Year to | ||||||||||||||||||||||
(in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | End | Date | |||||||||||||||||||||
Demand | $ | 599,598 | $ | 586,487 | $ | 544,636 | $ | 515,064 | $ | 504,325 | 9 | % | 20 | % | ||||||||||||||
NOW | 802,681 | 761,817 | 738,849 | 706,048 | 642,908 | 21 | 17 | |||||||||||||||||||||
Savings | 578,361 | 560,095 | 521,638 | 511,938 | 466,668 | 13 | 22 | |||||||||||||||||||||
Money market | 371,075 | 365,507 | 402,731 | 388,356 | 402,835 | 6 | (16 | ) | ||||||||||||||||||||
Total non-maturity deposits | 2,351,715 | 2,273,906 | 2,207,854 | 2,121,406 | 2,016,736 | 14 | 13 | |||||||||||||||||||||
Total time deposits | 470,758 | 638,436 | 698,361 | 813,509 | 678,126 | * | (65 | ) | ||||||||||||||||||||
Total deposits | $ | 2,822,473 | $ | 2,912,342 | $ | 2,906,215 | $ | 2,934,915 | $ | 2,694,862 | (12 | )% | (6 | )% | ||||||||||||||
*Indicates ratios of 100% or greater.
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Loans | $ | 23,191 | $ | 26,493 | $ | 47,396 | $ | 54,480 | ||||||||
Securities and other | 3,992 | 4,942 | 7,971 | 10,449 | ||||||||||||
Total interest and dividend income | 27,183 | 31,435 | 55,367 | 64,929 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 2,603 | 4,548 | 5,554 | 10,568 | ||||||||||||
Borrowings | 1,826 | 2,297 | 3,637 | 5,208 | ||||||||||||
Total interest expense | 4,429 | 6,845 | 9,191 | 15,776 | ||||||||||||
Net interest income | 22,754 | 24,590 | 46,176 | 49,153 | ||||||||||||
Provision for credit losses | (765 | ) | 1,354 | (1,254 | ) | 2,465 | ||||||||||
Net interest income after provision for credit losses | 23,519 | 23,236 | 47,430 | 46,688 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and investment management fee income | 3,801 | 3,159 | 7,467 | 6,528 | ||||||||||||
Customer service fees | 3,257 | 2,439 | 6,227 | 5,551 | ||||||||||||
Gain on sales of securities, net | 50 | 1,351 | 50 | 1,486 | ||||||||||||
Mortgage banking income | 1,553 | 1,124 | 4,123 | 1,581 | ||||||||||||
Bank-owned life insurance income | 498 | 496 | 1,016 | 1,033 | ||||||||||||
Customer derivative income | 86 | 513 | 496 | 1,101 | ||||||||||||
Other income | 260 | 628 | 374 | 851 | ||||||||||||
Total non-interest income | 9,505 | 9,710 | 19,753 | 18,131 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 11,356 | 11,909 | 23,532 | 23,793 | ||||||||||||
Occupancy and equipment | 3,894 | 3,860 | 8,222 | 8,280 | ||||||||||||
Loss (gain) on sales of premises and equipment, net | 1 | (2 | ) | 9 | 90 | |||||||||||
Outside services | 533 | 442 | 965 | 976 | ||||||||||||
Professional services | 151 | 337 | 709 | 1,009 | ||||||||||||
Communication | 198 | 194 | 519 | 483 | ||||||||||||
Marketing | 534 | 282 | 824 | 670 | ||||||||||||
Amortization of intangible assets | 233 | 256 | 474 | 512 | ||||||||||||
Loss on debt extinguishment | - | 1,351 | - | 1,351 | ||||||||||||
Acquisition, conversion and other expenses | 552 | 158 | 1,441 | 261 | ||||||||||||
Other expenses | 4,272 | 3,479 | 7,520 | 7,200 | ||||||||||||
Total non-interest expense | 21,724 | 22,266 | 44,215 | 44,625 | ||||||||||||
Income before income taxes | 11,300 | 10,680 | 22,968 | 20,194 | ||||||||||||
Income tax expense | 2,275 | 2,199 | 4,463 | 3,992 | ||||||||||||
Net income | $ | 9,025 | $ | 8,481 | $ | 18,505 | $ | 16,202 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.55 | $ | 1.24 | $ | 1.05 | ||||||||
Diluted | 0.60 | 0.55 | 1.23 | 1.04 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 14,965 | 15,424 | 14,950 | 15,500 | ||||||||||||
Diluted | 15,042 | 15,441 | 15,026 | 15,523 | ||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||||
(in thousands, except per share data) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 23,191 | $ | 24,205 | $ | 26,687 | $ | 25,918 | $ | 26,493 | ||||||||||
Securities and other | 3,992 | 3,979 | 4,013 | 4,557 | 4,942 | |||||||||||||||
Total interest and dividend income | 27,183 | 28,184 | 30,700 | 30,475 | 31,435 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 2,603 | 2,951 | 3,606 | 3,869 | 4,548 | |||||||||||||||
Borrowings | 1,826 | 1,811 | 1,732 | 1,941 | 2,297 | |||||||||||||||
Total interest expense | 4,429 | 4,762 | 5,338 | 5,810 | 6,845 | |||||||||||||||
Net interest income | 22,754 | 23,422 | 25,362 | 24,665 | 24,590 | |||||||||||||||
Provision for credit losses | (765 | ) | (489 | ) | 1,360 | 1,800 | 1,354 | |||||||||||||
Net interest income after provision for credit losses | 23,519 | 23,911 | 24,002 | 22,865 | 23,236 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 3,801 | 3,666 | 3,318 | 3,532 | 3,159 | |||||||||||||||
Customer service fees | 3,257 | 2,970 | 2,890 | 2,886 | 2,439 | |||||||||||||||
Gain on sales of securities, net | 50 | - | 3,959 | - | 1,351 | |||||||||||||||
Mortgage banking income | 1,553 | 2,570 | 2,654 | 2,649 | 1,124 | |||||||||||||||
Bank-owned life insurance income | 498 | 518 | 482 | 492 | 496 | |||||||||||||||
Customer derivative income | 86 | 410 | 1,086 | 316 | 513 | |||||||||||||||
Other income | 260 | 114 | 334 | 227 | 628 | |||||||||||||||
Total non-interest income | 9,505 | 10,248 | 14,723 | 10,102 | 9,710 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 11,356 | 12,176 | 13,318 | 11,809 | 11,909 | |||||||||||||||
Occupancy and equipment | 3,894 | 4,328 | 4,192 | 4,279 | 3,860 | |||||||||||||||
Loss (gain) on sales of premises and equipment, net | 1 | 8 | (122 | ) | - | (2 | ) | |||||||||||||
Outside services | 533 | 432 | 571 | 438 | 442 | |||||||||||||||
Professional services | 151 | 558 | 572 | 479 | 337 | |||||||||||||||
Communication | 198 | 321 | 194 | 215 | 194 | |||||||||||||||
Marketing | 534 | 290 | 415 | 300 | 282 | |||||||||||||||
Amortization of intangible assets | 233 | 241 | 256 | 256 | 256 | |||||||||||||||
Loss on debt extinguishment | - | - | - | - | 1,351 | |||||||||||||||
Acquisition, conversion and other expenses | 552 | 889 | 4,849 | 691 | 158 | |||||||||||||||
Other expenses | 4,272 | 3,248 | 3,571 | 3,952 | 3,479 | |||||||||||||||
Total non-interest expense | 21,724 | 22,491 | 27,816 | 22,419 | 22,266 | |||||||||||||||
Income before income taxes | 11,300 | 11,668 | 10,909 | 10,548 | 10,680 | |||||||||||||||
Income tax expense | 2,275 | 2,188 | 2,269 | 2,146 | 2,199 | |||||||||||||||
Net income | $ | 9,025 | $ | 9,480 | $ | 8,640 | $ | 8,402 | $ | 8,481 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.60 | $ | 0.63 | $ | 0.58 | $ | 0.56 | $ | 0.55 | ||||||||||
Diluted | 0.60 | 0.63 | 0.58 | 0.56 | 0.55 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 14,965 | 14,934 | 14,909 | 15,079 | 15,424 | |||||||||||||||
Diluted | 15,042 | 15,007 | 14,952 | 15,103 | 15,441 | |||||||||||||||
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-bearing deposits with other banks (1) | 0.09 | % | 0.09 | % | 0.11 | % | 0.09 | % | 0.08 | % | ||||||||||
Securities available for sale and FHLB stock | 2.66 | 2.79 | 2.97 | 3.04 | 3.26 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | 3.54 | 3.68 | 3.74 | 3.81 | 4.11 | |||||||||||||||
Commercial and industrial | 3.60 | 3.86 | 3.92 | 4.39 | 4.13 | |||||||||||||||
Paycheck protection program | 5.56 | 8.12 | 11.56 | 3.18 | 3.34 | |||||||||||||||
Residential real estate | 3.80 | 3.76 | 3.74 | 3.71 | 3.81 | |||||||||||||||
Consumer | 3.44 | 3.56 | 3.65 | 3.42 | 3.81 | |||||||||||||||
Total loans | 3.70 | 3.85 | 4.03 | 3.81 | 3.94 | |||||||||||||||
Total earning assets | 3.26 | % | 3.46 | % | 3.65 | % | 3.57 | % | 3.73 | % | ||||||||||
Funding liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
NOW | 0.12 | % | 0.14 | % | 0.15 | % | 0.14 | % | 0.14 | % | ||||||||||
Savings | 0.10 | 0.13 | 0.13 | 0.13 | 0.15 | |||||||||||||||
Money market | 0.12 | 0.14 | 0.14 | 0.16 | 0.40 | |||||||||||||||
Time deposits | 1.37 | 1.44 | 1.64 | 1.69 | 1.94 | |||||||||||||||
Total interest-bearing deposits | 0.45 | 0.51 | 0.61 | 0.66 | 0.81 | |||||||||||||||
Borrowings | 2.12 | 2.16 | 1.83 | 1.60 | 1.51 | |||||||||||||||
Total interest-bearing liabilities | 0.66 | % | 0.72 | % | 0.77 | % | 0.82 | % | 0.96 | % | ||||||||||
Net interest spread | 2.60 | 2.74 | 2.88 | 2.75 | 2.77 | |||||||||||||||
Net interest margin (1) | 2.74 | 2.88 | 3.02 | 2.90 | 2.93 | |||||||||||||||
Core net interest margin (2) | 2.67 | 2.78 | 2.79 | 2.89 | 2.92 | |||||||||||||||
(1) Income from interest-bearing deposits with other banks has been separated from securities and restated for prior periods to conform to the current period presentation.
(2) Core net interest margin excludes Paycheck Protection Program loans.
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||||
(in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
Assets | ||||||||||||||||||||
Interest-bearing deposits with other banks (1) | $ | 228,825 | $ | 176,728 | $ | 176,747 | $ | 92,066 | $ | 71,067 | ||||||||||
Securities available for sale and FHLB stock (2) | 635,978 | 613,459 | 563,118 | 627,162 | 648,185 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | 1,122,831 | 1,099,937 | 1,059,574 | 1,012,194 | 952,264 | |||||||||||||||
Commercial and industrial | 378,634 | 377,176 | 386,201 | 399,734 | 417,620 | |||||||||||||||
Paycheck protection program | 76,701 | 65,149 | 91,109 | 131,605 | 104,740 | |||||||||||||||
Residential real estate | 850,119 | 916,633 | 995,173 | 1,060,084 | 1,117,608 | |||||||||||||||
Consumer | 104,851 | 109,802 | 115,876 | 121,248 | 126,413 | |||||||||||||||
Total loans (3) | 2,533,136 | 2,568,697 | 2,647,933 | 2,724,865 | 2,718,645 | |||||||||||||||
Total earning assets | 3,397,939 | 3,358,884 | 3,387,798 | 3,444,093 | 3,437,897 | |||||||||||||||
Cash and due from banks | 21,414 | 23,221 | 22,473 | 36,521 | 43,165 | |||||||||||||||
Allowance for credit losses | (23,419 | ) | (24,822 | ) | (18,690 | ) | (17,028 | ) | (15,678 | ) | ||||||||||
Goodwill and other intangible assets | 126,789 | 127,024 | 127,264 | 127,508 | 127,751 | |||||||||||||||
Other assets | 223,369 | 232,477 | 237,424 | 223,316 | 213,986 | |||||||||||||||
Total assets | $ | 3,746,092 | $ | 3,716,784 | $ | 3,756,269 | $ | 3,814,410 | $ | 3,807,121 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
NOW | $ | 781,836 | $ | 749,100 | $ | 713,464 | $ | 677,706 | $ | 611,860 | ||||||||||
Savings | 568,193 | 541,203 | 516,266 | 488,508 | 450,621 | |||||||||||||||
Money market | 368,826 | 378,743 | 399,543 | 396,351 | 411,232 | |||||||||||||||
Time deposits | 619,454 | 675,422 | 734,523 | 777,424 | 776,042 | |||||||||||||||
Total interest-bearing deposits | 2,338,309 | 2,344,468 | 2,363,796 | 2,339,989 | 2,249,755 | |||||||||||||||
Borrowings | 345,896 | 340,209 | 376,437 | 481,687 | 612,538 | |||||||||||||||
Total interest-bearing liabilities | 2,684,205 | 2,684,677 | 2,740,233 | 2,821,676 | 2,862,293 | |||||||||||||||
Non-interest-bearing demand deposits | 591,982 | 550,657 | 535,402 | 507,844 | 472,688 | |||||||||||||||
Other liabilities | 56,630 | 74,646 | 71,119 | 78,072 | 66,302 | |||||||||||||||
Total liabilities | 3,332,817 | 3,309,980 | 3,346,754 | 3,407,592 | 3,401,283 | |||||||||||||||
Total shareholders' equity | 413,275 | 406,804 | 409,515 | 406,818 | 405,838 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,746,092 | $ | 3,716,784 | $ | 3,756,269 | $ | 3,814,410 | $ | 3,807,121 | ||||||||||
(1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.
(2) Average balances for securities available-for-sale are based on amortized cost.
(3) Total average loans include non-accruing loans and loans held for sale.
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| At or for the Quarters Ended | ||||||||||||||||||||
| Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | ||||||||||||||||
(in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 4,367 | $ | 4,664 | $ | 4,251 | $ | 4,714 | $ | 3,981 | ||||||||||
Commercial installment | 1,370 | 1,534 | 1,466 | 1,820 | 1,790 | |||||||||||||||
Residential real estate | 6,788 | 6,753 | 5,729 | 7,154 | 7,194 | |||||||||||||||
Consumer installment | 1,054 | 1,118 | 742 | 720 | 1,023 | |||||||||||||||
Total non-accruing loans | 13,579 | 14,069 | 12,188 | 14,408 | 13,988 | |||||||||||||||
Other real estate owned | - | - | - | 1,983 | 2,318 | |||||||||||||||
Total non-performing assets | $ | 13,579 | $ | 14,069 | $ | 12,188 | $ | 16,391 | $ | 16,306 | ||||||||||
Total non-accruing loans/total loans | 0.54 | % | 0.55 | % | 0.48 | % | 0.54 | % | 0.52 | % | ||||||||||
Total non-performing assets/total assets | 0.37 | 0.38 | 0.33 | 0.42 | 0.43 | |||||||||||||||
PROVISION AND ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 23,653 | $ | 19,082 | $ | 17,907 | $ | 16,509 | $ | 15,297 | ||||||||||
Impact of CECL adoption | - | 5,228 | - | - | - | |||||||||||||||
Charged-off loans | (239 | ) | (216 | ) | (297 | ) | (439 | ) | (220 | ) | ||||||||||
Recoveries on charged-off loans | 166 | 48 | 112 | 37 | 78 | |||||||||||||||
Net loans charged-off | (73 | ) | (168 | ) | (185 | ) | (402 | ) | (142 | ) | ||||||||||
Provision for credit losses | (765 | ) | (489 | ) | 1,360 | 1,800 | 1,354 | |||||||||||||
Balance at end of period | $ | 22,815 | $ | 23,653 | $ | 19,082 | $ | 17,907 | $ | 16,509 | ||||||||||
Allowance for credit losses/total loans | 0.91 | % | 0.93 | % | 0.74 | % | 0.66 | % | 0.60 | % | ||||||||||
Allowance for credit losses/non-accruing loans | 168 | 168 | 157 | 124 | 118 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (105 | ) | $ | (131 | ) | $ | 63 | $ | (252 | ) | $ | 71 | |||||||
Commercial installment | (7 | ) | 1 | (228 | ) | (10 | ) | (155 | ) | |||||||||||
Residential real estate | 88 | (28 | ) | (21 | ) | 1 | (20 | ) | ||||||||||||
Consumer installment | (49 | ) | (10 | ) | 1 | (141 | ) | (38 | ) | |||||||||||
Total, net | $ | (73 | ) | $ | (168 | ) | $ | (185 | ) | $ | (402 | ) | $ | (142 | ) | |||||
Net charge-offs (QTD annualized)/average loans | 0.01 | % | 0.03 | % | 0.03 | % | 0.06 | % | 0.02 | % | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.02 | 0.03 | 0.07 | 0.08 | 0.10 | |||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.13 | % | 0.43 | % | 0.58 | % | 0.16 | % | 0.28 | % | ||||||||||
90+ Days delinquent and still accruing | 0.02 | 0.01 | - | 0.08 | 0.04 | |||||||||||||||
Total accruing delinquent loans | 0.15 | 0.44 | 0.58 | 0.24 | 0.32 | |||||||||||||||
Non-accruing loans | 0.54 | 0.55 | 0.48 | 0.54 | 0.52 | |||||||||||||||
Total delinquent and non-accruing loans | 0.69 | % | 0.99 | % | 1.06 | % | 0.78 | % | 0.84 | % | ||||||||||
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED
| At or for the Quarters Ended | |||||||||||||||||||||
(in thousands) | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||||||||||||||||
Net income | $ | 9,025 | $ | 9,480 | $ | 8,640 | $ | 8,402 | $ | 8,481 | |||||||||||
Non-core items: | |||||||||||||||||||||
(Gain) on sale of securities, net | (50 | ) | - | (3,959 | ) | - | (1,351 | ) | |||||||||||||
Loss (gain) on sale of premises and equipment, net | 1 | 8 | (122 | ) | - | (2 | ) | ||||||||||||||
(Gain) loss on other real estate owned | - | - | (11 | ) | 335 | - | |||||||||||||||
Loss on debt extinguishment | - | - | - | - | 1,351 | ||||||||||||||||
Acquisition, conversion and other expenses | 552 | 889 | 4,849 | 691 | 158 | ||||||||||||||||
Income tax expense (1) | (119 | ) | (213 | ) | (179 | ) | (245 | ) | (37 | ) | |||||||||||
Total non-core items | 384 | 684 | 578 | 781 | 119 | ||||||||||||||||
Core earnings (2) | (A) | $ | 9,409 | $ | 10,164 | $ | 9,218 | $ | 9,183 | $ | 8,600 | ||||||||||
Net interest income | (B) | $ | 22,754 | $ | 23,422 | $ | 25,362 | $ | 24,665 | $ | 24,590 | ||||||||||
Non-interest income | 9,505 | 10,248 | 14,723 | 10,102 | 9,710 | ||||||||||||||||
Total Revenue | 32,259 | 33,670 | 40,085 | 34,767 | 34,300 | ||||||||||||||||
(Gain) on sale of securities, net | (50 | ) | - | (3,959 | ) | - | (1,351 | ) | |||||||||||||
Total core revenue (2) | (C) | $ | 32,209 | $ | 33,670 | $ | 36,126 | $ | 34,767 | $ | 32,949 | ||||||||||
Total non-interest expense | 21,724 | 22,491 | 27,816 | 22,419 | 22,266 | ||||||||||||||||
Non-core expenses: | |||||||||||||||||||||
(Loss) gain on sale of premises and equipment, net | (1 | ) | (8 | ) | 122 | - | 2 | ||||||||||||||
Gain (loss) on other real estate owned | - | - | 11 | (335 | ) | - | |||||||||||||||
Loss on debt extinguishment | - | - | - | - | (1,351 | ) | |||||||||||||||
Acquisition, conversion and other expenses | (552 | ) | (889 | ) | (4,849 | ) | (691 | ) | (158 | ) | |||||||||||
Total non-core expenses | (553 | ) | (897 | ) | (4,716 | ) | (1,026 | ) | (1,507 | ) | |||||||||||
Core non-interest expense (2) | (D) | $ | 21,171 | $ | 21,594 | $ | 23,100 | $ | 21,393 | $ | 20,759 | ||||||||||
Total revenue | 32,259 | 33,670 | 40,085 | 34,767 | 34,300 | ||||||||||||||||
Total non-interest expense | 21,724 | 22,491 | 27,816 | 22,419 | 22,266 | ||||||||||||||||
Pre-tax, pre-provision net revenue | $ | 10,535 | $ | 11,179 | $ | 12,269 | $ | 12,348 | $ | 12,034 | |||||||||||
Core revenue | 32,209 | 33,670 | 36,126 | 34,767 | 32,949 | ||||||||||||||||
Core non-interest expense | 21,171 | 21,594 | 23,100 | 21,393 | 20,759 | ||||||||||||||||
Core pre-tax, pre-provision net revenue | (U) | $ | 11,038 | $ | 12,076 | $ | 13,026 | $ | 13,374 | $ | 12,190 | ||||||||||
(in millions) | |||||||||||||||||||||
Average earning assets | (E) | $ | 3,398 | $ | 3,359 | $ | 3,388 | $ | 3,444 | $ | 3,438 | ||||||||||
Average paycheck protection program (PPP) loans | (R) | 77 | 65 | 91 | 132 | 105 | |||||||||||||||
Average earning assets, excluding PPP loans | (S) | 3,321 | 3,294 | 3,297 | 3,312 | 3,333 | |||||||||||||||
Average assets | (F) | 3,746 | 3,717 | 3,756 | 3,814 | 3,807 | |||||||||||||||
Average shareholders' equity | (G) | 413 | 407 | 410 | 407 | 406 | |||||||||||||||
Average tangible shareholders' equity (2) (3) | (H) | 287 | 280 | 282 | 279 | 278 | |||||||||||||||
Tangible shareholders' equity, period-end (2) (3) | (I) | 289 | 279 | 284 | 277 | 277 | |||||||||||||||
Tangible assets, period-end (2) (3) | (J) | 3,513 | 3,603 | 3,598 | 3,732 | 3,653 | |||||||||||||||
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED
| At or for the Quarters Ended | |||||||||||||||||||||||
(in thousands) | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||||||||||||||||||
Common shares outstanding, period-end | (K) | 14,972 | 14,950 | 14,916 | 14,929 | 15,214 | |||||||||||||||||
Average diluted shares outstanding | (L) | 15,042 | 15,007 | 14,952 | 15,103 | 15,441 | |||||||||||||||||
Core earnings per share, diluted (2) | (A/L) | $ | 0.63 | $ | 0.68 | $ | 0.62 | $ | 0.61 | $ | 0.56 | ||||||||||||
Tangible book value per share, period-end (2) | (I/K) | 19.30 | 18.64 | 19.05 | 18.56 | 18.18 | |||||||||||||||||
Securities adjustment, net of tax (1) (4) | (M) | 7,237 | 4,510 | 10,023 | 11,681 | 11,412 | |||||||||||||||||
Tangible book value per share, excluding securities adjustment (2) (4) | (I+M)/K | 18.81 | 18.34 | 18.38 | 17.78 | 17.43 | |||||||||||||||||
Tangible shareholders' equity/total tangible assets (2) | (I/J) | 8.22 | 7.73 | 7.90 | 7.42 | 7.57 | |||||||||||||||||
Performance ratios (5) | |||||||||||||||||||||||
GAAP return on assets | 0.97 | % | 1.03 | % | 0.92 | % | 0.88 | % | 0.90 | % | |||||||||||||
Core return on assets (2) | (A/F) | 1.01 | 1.11 | 0.98 | 0.96 | 0.91 | |||||||||||||||||
Pre-tax, pre-provision return on assets | 1.13 | 1.22 | 1.30 | 1.29 | 1.27 | ||||||||||||||||||
Core pre-tax, pre-provision return on assets (2) | (U/F) | 1.18 | 1.32 | 1.38 | 1.39 | 1.29 | |||||||||||||||||
GAAP return on equity | 8.76 | 9.45 | 8.39 | 8.22 | 8.40 | ||||||||||||||||||
Core return on equity (2) | (A/G) | 9.13 | 10.13 | 8.95 | 8.98 | 8.52 | |||||||||||||||||
Return on tangible equity | 12.88 | 14.01 | 12.45 | 12.24 | 12.55 | ||||||||||||||||||
Core return on tangible equity (1) (2) | (A+Q)/H | 13.42 | 15.00 | 13.27 | 13.36 | 12.72 | |||||||||||||||||
Efficiency ratio (2) (6) | (D-O-Q) /(C+N) | 63.45 | 61.95 | 61.98 | 59.47 | 60.67 | |||||||||||||||||
Net interest margin | (B+P)/E | 2.74 | 2.88 | 3.02 | 2.90 | 3.04 | |||||||||||||||||
Core net interest margin (2) (7) | (B+P-T)/S | 2.67 | 2.78 | 2.79 | 2.89 | 2.92 | |||||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 586 | $ | 595 | $ | 542 | $ | 570 | $ | 646 | ||||||||||||
Franchise taxes included in non-interest expense | (O) | 128 | 125 | 117 | 121 | 120 | |||||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 430 | 433 | 396 | 416 | 490 | |||||||||||||||||
Intangible amortization | (Q) | 233 | 241 | 256 | 256 | 256 | |||||||||||||||||
Interest and fees on PPP loans | (T) | 1,064 | 1,304 | 2,648 | 1,052 | 869 | |||||||||||||||||
(1) Assumes a marginal tax rate of 23.71% in the first and second quarter of 2021 and fourth quarter of 2020 and 23.87% for the first three quarters of 2020.
(2) Non-GAAP financial measure.
(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.
(4) Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.
(5) All performance ratios are based on average balance sheet amounts, where applicable.
(6) 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.
(7) Core net interest margin excludes Paycheck Protection Program loans.
SOURCE: Bar Harbor Bank and Trust