BAR HARBOR, ME / ACCESSWIRE / October 21, 2021 / Bar Harbor Bankshares (NYSE American:BHB) reported third quarter 2021 net income of $11.0 million or $0.73 per diluted share, up from $8.4 million or $0.56 per diluted share in the same quarter of 2020. Core earnings (non-GAAP) were also $11.0 million or $0.73 per diluted share in the third quarter of 2021, compared to $9.2 million, or $0.61 per share for the same period of 2020.
THIRD QUARTER HIGHLIGHTS (ratios compared to the third quarter 2020)
- 1.16% return on assets, for both GAAP and non-GAAP measures
- 10% annualized commercial loan growth, excluding Paycheck Protection Program (PPP) loans
- 32% annualized core deposit growth
- 3.02% net interest margin (NIM) compared to 2.90%
- 15% increase in fee income, excluding mortgage banking income and security gains
- Bar Harbor Bank & Trust named as America's Best Bank in Maine by Newsweek Magazine
President and Chief Executive Officer, Curtis C. Simard stated, "Core earnings per share (non-GAAP) in the third quarter 2021 grew 20% over the same quarter of 2020. Our core return on assets in the third quarter was 1.16% compared to 0.96% in the third quarter of 2020, evidencing continued execution of our strategies that balance growth with earnings. This is indicative of the strength in our core businesses and the results of the strategic initiatives we have been undertaking. The momentum we've seen in each area affords us flexibility with diverse revenue streams to support our operations, even in uncertain economic environments."
"While fee income and efficiency improvements contributed to greater core profitability, the quarterly results also benefited from a 13 basis point expansion in the margin to 2.99% compared with 2.86% in the second quarter 2021 on a normalized basis (excluding PPP and excess cash effects). This improvement is a direct result of increased core funding as we gain market share and reduce our reliance on wholesale borrowings. As of September 30, 2021, our wholesale borrowings as a percentage of funding was 9%, down from 23% in the prior year."
Mr. Simard stated, "Our commercial teams continue to deliver strong commercial loan growth despite the competitive landscape in our footprint. The majority of the commercial real estate loan growth this quarter came from new multi-family residential and light industrial & manufacturing relationships with proven operators. Risk management remains at the forefront of all that we do. We saw yields bottoming out on residential loans this quarter and were able to increase contractual rates at times. Given the overall interest rate risk position of our balance sheet and this recent rate increase, we strategically directed more of our residential mortgage production on balance sheet versus selling it in the secondary market."
"We also executed another delever and security remix strategy during the third quarter, prepaying $89 million of FHLB borrowings and selling $44 million of credit sensitive municipal and corporate bonds. The additional purchase of securities was completed subsequent to quarter end, earlier in October. This transaction is expected to expand the NIM by 12 basis points and will be accretive to earnings by $0.02 on a quarterly basis."
Mr. Simard commented, "We continue to build long term shareholder value while providing a favorable dividend rate relative to community banking. The Company's return on equity for the third quarter rose to 10.38% from 8.25% in the same quarter of 2020. A clear path to equity preservation is strong credit quality. We remain committed to our underwriting standards evidenced by further improvement in past-due accounts, non-accruals and a near zero net-charge-off ratio."
Mr. Simard concluded, "While our financial results for the quarter and our overall performance thus far in the year speak to the soundness of our strategy, we are thrilled to be named by Newsweek Magazine as one of "America's Best Banks." Best Bank winners were selected from over 2,500 financial institutions and assessed on more than 30 separate factors including the overall health of the bank, customer service performance and features, digital and branch presence, account and loan options, interest rate offerings, and fees.This award acknowledges that our strategy is resonating with customers. I am proud of our employees and congratulate them on earning this great award."
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 November 17, 2021, payable on December 17, 2021. This dividend equates to a 3.42% annualized yield based on the $28.05 closing price of the Company's common stock at the end of the third quarter of 2021.
FINANCIAL CONDITION
Total assets were $3.7 billion at the end of the third quarter. Bar Harbor Bankshares (the "Company") executed a balance sheet delever and security remix strategy where $89.0 million of Federal Home Loan Bank advances were prepaid and $43.5 million of securities were sold to reduce credit risk exposure while generating gains. The replenishment of those securities is expected to be fulfilled early in the fourth quarter 2021.
Loans were $2.5 billion at the end of the third quarter reflecting growth of $18.6 million or 3% on an annualized basis. Excluding PPP loans, commercial loans increased $38.0 million led by two new relationships totaling $21.2 million as well as the deepening of existing commercial relationships. PPP loan balances totaled $24.2 million at quarter-end, consisting of $24.1 million of 2021 originations and $145 thousand from 2020. Unearned deferred fees on PPP loans totaled $1.2 million at the end of the quarter and are expected to be mostly recognized by year-end 2021. COVID loan modifications totaled $4.7 million, down from $19.0 million at the end of the second quarter 2021. Total residential loans increased $26.9 million from the end of the second quarter 2021, which primarily included $39.0 million of originations that were strategically put on the balance sheet when rates were higher in the quarter.
The allowance for credit losses was $22.4 million for the third quarter. As economic forecasts continue to improve the Company maintains its disciplined approach to credit quality with an allowance to total loans coverage ratio of 0.89%. Net charge-offs totaled $193 thousand, or 0.03% of the total loan portfolio, and non-accruing loans decreased to $12.2 million from $13.6 million at the end of the second quarter 2021. The ratio of accruing past due loans to total loans improved to 0.12% of total loans from 0.15% at the end of the second quarter 2021 and 0.58% at year-end 2020.
Total deposits increased $184.8 million to $3.0 billion during the quarter, due to significant core deposit growth. Core deposits grew $186.3 million, or 32% on an annualized basis, during the quarter as over 800 new customer accounts were opened. As a result the loan to deposit ratio improved to 84% from 89% at the end of the second quarter 2021. Time deposits decreased $1.5 million during the quarter as customers continue to move funds to transactional accounts upon contractual maturity.
The Company's book value per share was $27.92 at September 30, 2021, compared with $27.64 at the end of the second quarter 2021. Tangible book value per share (non-GAAP measure) was $19.48 at the end of the third quarter 2021, compared to $19.17 at the end of the second quarter 2021, an annualized growth rate of 6%. Other comprehensive income included unrealized gains on securities totaling $4.4 million in the third quarter 2021 compared to $7.2 million at the end of the second quarter 2021.
RESULTS OF OPERATIONS
Net income in the third quarter 2021 was $11.0 million, or $0.73 per share, compared to $8.4 million, or $0.56 per share, in the same quarter of 2020. Net income improved on higher fee income and fees from PPP loans in the quarter. PPP loan fees contributed $0.13 to earnings per share in the third quarter of 2021 and $0.06 in the same period of 2020. Core earnings (non-GAAP) totaled $11.0 million or $0.73 per share, compared to $9.2 million, or $0.61 per share, in the same quarter of 2020. Non-core items (non-GAAP) netted to an insignificant amount in the third quarter 2021 and reduced net income by $781 thousand in the same period of 2020.
Net interest margin was 3.02% compared to 2.90% in the same period of 2020. Acceleration of PPP loan fee amortization due to forgiveness contributed 28 basis points to NIM in the third quarter 2021 and 1 basis point in the same period of 2020. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 26 basis points in the quarter and 8 basis points in the third quarter 2020. The yield on earning assets totaled 3.41% compared to 3.57% in the third quarter 2020. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.42% and 3.67% for the same periods. The yield on loans was 3.98% in the third quarter 2021, 3.70% in the second quarter 2021 and 3.81% in the third quarter of 2020. Excluding PPP loans the yield on loans was 3.62% in the third quarter of 2021, 3.64% in the second quarter of 2021 and 3.83% in the third quarter 2020. Costs of funds decreased to 0.50% from 0.82% in the third quarter 2020 due to lower deposit rates and reduced wholesale borrowings.
The provision for credit losses for the quarter was a benefit of $174 thousand, compared to an expense of $1.8 million in the third quarter of 2020. The provision recapture in the third quarter 2021 is attributable to continued strong credit quality and improving economic forecasts.
Non-interest income in the third quarter 2021 was $11.4 million, compared to $10.1 million in the same quarter of 2020. The increase was due to higher customer service fees, wealth management income, and a gain on securities sales. Customer service fees were $3.5 million in the third quarter compared to $2.9 million in the same period of 2020. The increase is due to over 800 new accounts that were opened during the quarter and a higher volume of customer activity and transactions. Wealth management income increased 10% over the same quarter of 2020 to $3.9 million with assets under management of $2.4 billion compared to $2.1 billion in the same period of 2020. The Company sold securities resulting in a $1.9 million gain as part of the aforementioned remix strategy. Mortgage banking activities contributed $850 thousand, compared to $2.6 million in the same period of 2020. The Company took advantage of volatility in the yield curve in the third quarter and put residential mortgages on the balance sheet when rates were higher and sold loans in the secondary market when rates were low.
Non-interest expense was $23.4 million in the third quarter 2021 from $22.4 million in the same quarter of 2020. Salaries and benefits expense decreased to $11.7 million compared to $11.8 million in the same quarter of 2020, reflecting full-time equivalents of 428 compared to 457 in the third quarter of 2020. Non-core expenses (non-GAAP) in the third quarter 2021 totaled $1.9 million and were mostly made up of the $1.8 million prepayment penalty on debt extinguishment. In the same quarter of 2020 non-core expenses (non-GAAP) totaled $1.0 million and included costs to consolidate our wealth management systems. The efficiency ratio for the third quarter was 59.18% compared to 59.47% in the same period of 2020. Excluding the effects of PPP the efficiency ratio was 63.35% and 61.30% for the same respective periods.
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 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 | Balance Sheets |
| C | Loan and Deposit Analysis |
| D | Statements of Income |
| E | Statements of Income (Five Quarter Trend) |
| F | Average Yields and Costs |
| G | Average Balances |
| H | Asset Quality Analysis |
| I | 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, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.73 | $ | 0.60 | $ | 0.63 | $ | 0.58 | $ | 0.56 | ||||||||||
Core earnings, diluted (1) | 0.73 | 0.63 | 0.68 | 0.62 | 0.61 | |||||||||||||||
Total book value (6) | 27.92 | 27.64 | 27.10 | 27.29 | 26.74 | |||||||||||||||
Tangible book value (1) (6) | 19.48 | 19.17 | 18.61 | 18.77 | 18.21 | |||||||||||||||
Market price at period end | 28.05 | 28.62 | 29.42 | 22.59 | 20.55 | |||||||||||||||
Dividends | 0.24 | 0.24 | 0.22 | 0.22 | 0.22 | |||||||||||||||
PERFORMANCE RATIOS (2) | ||||||||||||||||||||
Return on assets | 1.16 | % | 0.97 | % | 1.03 | % | 0.92 | % | 0.88 | % | ||||||||||
Core return on assets (1) | 1.16 | 1.01 | 1.11 | 0.98 | 0.96 | |||||||||||||||
Pre-tax, pre-provision return on assets | 1.43 | 1.13 | 1.22 | 1.30 | 1.29 | |||||||||||||||
Core pre-tax, pre-provision return on assets (1) | 1.43 | 1.18 | 1.32 | 1.38 | 1.39 | |||||||||||||||
Return on equity (6) | 10.38 | 8.77 | 9.45 | 8.42 | 8.25 | |||||||||||||||
Core return on equity (1) (6) | 10.39 | 9.14 | 10.14 | 8.99 | 9.02 | |||||||||||||||
Return on tangible equity (6) | 15.08 | 12.91 | 14.01 | 12.52 | 12.32 | |||||||||||||||
Core return on tangible equity (1) (6) | 15.09 | 13.45 | 15.01 | 13.33 | 13.44 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (1) (3) | 3.02 | 2.74 | 2.88 | 3.02 | 2.90 | |||||||||||||||
Core net interest margin (1) (4) | 2.75 | 2.67 | 2.78 | 2.79 | 2.89 | |||||||||||||||
Efficiency ratio (1) | 59.18 | 63.45 | 61.95 | 61.98 | 59.47 | |||||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets (6) | $ | 3,738 | $ | 3,639 | $ | 3,730 | $ | 3,724 | $ | 3,861 | ||||||||||
Total earning assets (5) | 3,394 | 3,282 | 3,381 | 3,371 | 3,505 | |||||||||||||||
Total investments | 556 | 636 | 641 | 599 | 619 | |||||||||||||||
Total loans | 2,534 | 2,516 | 2,551 | 2,563 | 2,685 | |||||||||||||||
Allowance for credit losses | 22 | 23 | 24 | 19 | 18 | |||||||||||||||
Total goodwill and intangible assets | 126 | 127 | 127 | 127 | 127 | |||||||||||||||
Total deposits | 3,007 | 2,822 | 2,912 | 2,906 | 2,935 | |||||||||||||||
Total shareholders' equity (6) | 418 | 414 | 405 | 407 | 399 | |||||||||||||||
Net income | 11 | 9 | 9 | 9 | 8 | |||||||||||||||
Core earnings (1) | 11 | 9 | 10 | 9 | 9 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.03 | % | 0.01 | % | 0.03 | % | 0.03 | % | 0.06 | % | ||||||||||
Allowance for credit losses/total loans | 0.89 | 0.91 | 0.93 | 0.74 | 0.67 | |||||||||||||||
Loans/deposits | 84 | 89 | 88 | 88 | 91 | |||||||||||||||
Shareholders' equity to total assets (6) | 11.19 | 11.37 | 10.86 | 10.93 | 10.34 | |||||||||||||||
Tangible shareholders' equity to tangible assets (6) | 8.08 | 8.17 | 7.72 | 7.78 | 7.27 | |||||||||||||||
- Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in table I for additional information.
- 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.
- Core net interest margin excludes Paycheck Protection Program loans.
- Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.
- Prior quarters have been revised for derivatives that were incorrectly presented as assets instead of liabilities and related equity effects net of tax.
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 39,081 | $ | 41,440 | $ | 39,039 | $ | 27,566 | $ | 22,722 | ||||||||||
Interest-bearing deposits with other banks | 302,118 | 132,278 | 184,473 | 198,441 | 192,935 | |||||||||||||||
Total cash and cash equivalents | 341,199 | 173,718 | 223,512 | 226,007 | 215,657 | |||||||||||||||
Securities available for sale | 545,327 | 621,849 | 626,403 | 585,046 | 604,529 | |||||||||||||||
Federal Home Loan Bank stock | 10,192 | 14,145 | 14,826 | 14,036 | 13,975 | |||||||||||||||
Total securities | 555,519 | 635,994 | 641,229 | 599,082 | 618,504 | |||||||||||||||
Loans held for sale | 7,505 | 7,942 | 10,148 | 23,988 | 23,721 | |||||||||||||||
Total loans | 2,534,154 | 2,515,560 | 2,551,064 | 2,562,885 | 2,684,970 | |||||||||||||||
Less: Allowance for credit losses | (22,448 | ) | (22,815 | ) | (23,653 | ) | (19,082 | ) | (17,907 | ) | ||||||||||
Net loans | 2,511,706 | 2,492,745 | 2,527,411 | 2,543,803 | 2,667,063 | |||||||||||||||
Premises and equipment, net | 50,070 | 51,119 | 52,253 | 52,458 | 51,424 | |||||||||||||||
Other real estate owned | - | - | - | - | 1,983 | |||||||||||||||
Goodwill | 119,477 | 119,477 | 119,477 | 119,477 | 119,477 | |||||||||||||||
Other intangible assets | 6,966 | 7,198 | 7,431 | 7,670 | 7,913 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 79,380 | 78,886 | 78,388 | 77,870 | 77,388 | |||||||||||||||
Deferred tax asset, net (1) | 5,811 | 4,902 | 5,761 | 3,047 | 3,797 | |||||||||||||||
Other assets (1) | 60,712 | 67,064 | 64,479 | 70,873 | 74,400 | |||||||||||||||
Total assets (1) | $ | 3,738,345 | $ | 3,639,045 | $ | 3,730,089 | $ | 3,724,275 | $ | 3,861,327 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 664,395 | $ | 599,598 | $ | 586,487 | $ | 544,636 | $ | 515,064 | ||||||||||
NOW deposits | 888,021 | 802,681 | 761,817 | 738,849 | 706,048 | |||||||||||||||
Savings deposits | 605,977 | 578,361 | 560,095 | 521,638 | 511,938 | |||||||||||||||
Money market deposits | 379,651 | 371,075 | 365,507 | 402,731 | 388,356 | |||||||||||||||
Time deposits | 469,221 | 470,758 | 638,436 | 698,361 | 813,509 | |||||||||||||||
Total deposits | 3,007,265 | 2,822,473 | 2,912,342 | 2,906,215 | 2,934,915 | |||||||||||||||
Senior borrowings | 190,267 | 279,991 | 292,210 | 276,062 | 385,472 | |||||||||||||||
Subordinated borrowings | 60,083 | 60,042 | 60,003 | 59,961 | 59,920 | |||||||||||||||
Total borrowings | 250,350 | 340,033 | 352,213 | 336,023 | 445,392 | |||||||||||||||
Other liabilities (1) | 62,295 | 62,779 | 60,354 | 74,972 | 81,849 | |||||||||||||||
Total liabilities (1) | 3,319,910 | 3,225,285 | 3,324,909 | 3,317,210 | 3,462,156 | |||||||||||||||
Total shareholders' equity (1) | 418,435 | 413,760 | 405,180 | 407,065 | 399,171 | |||||||||||||||
Total liabilities and shareholders' equity (1) | $ | 3,738,345 | $ | 3,639,045 | $ | 3,730,089 | $ | 3,724,275 | $ | 3,861,327 | ||||||||||
Net shares outstanding | 14,987 | 14,972 | 14,950 | 14,916 | 14,929 | |||||||||||||||
- Prior quarters have been revised for derivatives that were incorrectly presented as assets instead of liabilities and related equity effects net of tax.
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) | 2021 | 2021 | 2021 | 2020 | 2020 | End | Date | |||||||||||||||||||||
Commercial real estate | $ | 1,170,372 | $ | 1,135,857 | $ | 1,118,669 | $ | 1,084,381 | $ | 1,045,635 | 12 | % | 11 | % | ||||||||||||||
Commercial and industrial | 331,091 | 327,729 | 317,500 | 323,864 | 324,647 | 4 | 3 | |||||||||||||||||||||
Paycheck Protection Program (PPP) | 24,227 | 65,918 | 77,878 | 53,774 | 131,537 | * | (74 | ) | ||||||||||||||||||||
Total commercial loans | 1,525,690 | 1,529,504 | 1,514,047 | 1,462,019 | 1,501,819 | (1 | ) | 6 | ||||||||||||||||||||
Total commercial loans, excluding PPP | 1,501,463 | 1,463,586 | 1,436,169 | 1,408,245 | 1,370,282 | 10 | 9 | |||||||||||||||||||||
Residential real estate | 849,692 | 822,774 | 868,084 | 923,891 | 997,485 | 13 | (11 | ) | ||||||||||||||||||||
Consumer | 100,933 | 103,589 | 106,835 | 113,544 | 119,340 | (10 | ) | (15 | ) | |||||||||||||||||||
Tax exempt and other | 57,839 | 59,693 | 62,098 | 63,431 | 66,326 | (12 | ) | (12 | ) | |||||||||||||||||||
Total loans | $ | 2,534,154 | $ | 2,515,560 | $ | 2,551,064 | $ | 2,562,885 | $ | 2,684,970 | 3 | % | (1 | )% | ||||||||||||||
DEPOSIT ANALYSIS
| Annualized | ||||||||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Quarter | Year to | ||||||||||||||||||||||
(in thousands) | 2021 | 2021 | 2021 | 2020 | 2020 | End | Date | |||||||||||||||||||||
Demand | $ | 664,395 | $ | 599,598 | $ | 586,487 | $ | 544,636 | $ | 515,064 | 43 | % | 29 | % | ||||||||||||||
NOW | 888,021 | 802,681 | 761,817 | 738,849 | 706,048 | 43 | 27 | |||||||||||||||||||||
Savings | 605,977 | 578,361 | 560,095 | 521,638 | 511,938 | 19 | 22 | |||||||||||||||||||||
Money market | 379,651 | 371,075 | 365,507 | 402,731 | 388,356 | 9 | (8 | ) | ||||||||||||||||||||
Total non-maturity deposits | 2,538,044 | 2,351,715 | 2,273,906 | 2,207,854 | 2,121,406 | 32 | 20 | |||||||||||||||||||||
Total time deposits | 469,221 | 470,758 | 638,436 | 698,361 | 813,509 | (1 | ) | (44 | ) | |||||||||||||||||||
Total deposits | $ | 3,007,265 | $ | 2,822,473 | $ | 2,912,342 | $ | 2,906,215 | $ | 2,934,915 | 26 | % | 5 | % | ||||||||||||||
*Indicates ratios of 100% or greater.
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Loans | $ | 25,094 | $ | 25,918 | $ | 72,490 | $ | 80,398 | ||||||||
Securities and other | 3,821 | 4,557 | 11,792 | 15,006 | ||||||||||||
Total interest and dividend income | 28,915 | 30,475 | 84,282 | 95,404 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,555 | 3,869 | 7,109 | 14,437 | ||||||||||||
Borrowings | 1,778 | 1,941 | 5,415 | 7,149 | ||||||||||||
Total interest expense | 3,333 | 5,810 | 12,524 | 21,586 | ||||||||||||
Net interest income | 25,582 | 24,665 | 71,758 | 73,818 | ||||||||||||
Provision for credit losses | (174 | ) | 1,800 | (1,428 | ) | 4,265 | ||||||||||
Net interest income after provision for credit losses | 25,756 | 22,865 | 73,186 | 69,553 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and investment management fee income | 3,868 | 3,532 | 11,335 | 10,060 | ||||||||||||
Customer service fees | 3,515 | 2,886 | 9,742 | 8,437 | ||||||||||||
Gain on sales of securities, net | 1,930 | - | 1,980 | 1,486 | ||||||||||||
Mortgage banking income | 850 | 2,649 | 4,973 | 4,230 | ||||||||||||
Bank-owned life insurance income | 494 | 492 | 1,510 | 1,525 | ||||||||||||
Customer derivative income | 341 | 316 | 837 | 1,417 | ||||||||||||
Other income | 352 | 227 | 726 | 1,078 | ||||||||||||
Total non-interest income | 11,350 | 10,102 | 31,103 | 28,233 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 11,743 | 11,809 | 35,275 | 35,602 | ||||||||||||
Occupancy and equipment | 4,029 | 4,279 | 12,251 | 12,559 | ||||||||||||
(Gain) loss on sales of premises and equipment, net | (146 | ) | - | (137 | ) | 90 | ||||||||||
Outside services | 547 | 438 | 1,512 | 1,414 | ||||||||||||
Professional services | 491 | 479 | 1,200 | 1,488 | ||||||||||||
Communication | 188 | 215 | 707 | 698 | ||||||||||||
Marketing | 339 | 300 | 1,163 | 970 | ||||||||||||
Amortization of intangible assets | 233 | 256 | 707 | 768 | ||||||||||||
Loss on debt extinguishment | 1,768 | - | 1,768 | 1,351 | ||||||||||||
Acquisition, conversion and other expenses | 318 | 691 | 1,759 | 952 | ||||||||||||
Other expenses | 3,862 | 3,952 | 11,382 | 11,152 | ||||||||||||
Total non-interest expense | 23,372 | 22,419 | 67,587 | 67,044 | ||||||||||||
Income before income taxes | 13,734 | 10,548 | 36,702 | 30,742 | ||||||||||||
Income tax expense | 2,706 | 2,146 | 7,169 | 6,138 | ||||||||||||
Net income | $ | 11,028 | $ | 8,402 | $ | 29,533 | $ | 24,604 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.74 | $ | 0.56 | $ | 1.97 | $ | 1.60 | ||||||||
Diluted | 0.73 | 0.56 | 1.96 | 1.60 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 14,983 | 15,079 | 14,961 | 15,359 | ||||||||||||
Diluted | 15,051 | 15,103 | 15,035 | 15,382 | ||||||||||||
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) | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 25,094 | $ | 23,191 | $ | 24,205 | $ | 26,687 | $ | 25,918 | ||||||||||
Securities and other | 3,821 | 3,992 | 3,979 | 4,013 | 4,557 | |||||||||||||||
Total interest and dividend income | 28,915 | 27,183 | 28,184 | 30,700 | 30,475 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 1,555 | 2,603 | 2,951 | 3,606 | 3,869 | |||||||||||||||
Borrowings | 1,778 | 1,826 | 1,811 | 1,732 | 1,941 | |||||||||||||||
Total interest expense | 3,333 | 4,429 | 4,762 | 5,338 | 5,810 | |||||||||||||||
Net interest income | 25,582 | 22,754 | 23,422 | 25,362 | 24,665 | |||||||||||||||
Provision for credit losses | (174 | ) | (765 | ) | (489 | ) | 1,360 | 1,800 | ||||||||||||
Net interest income after provision for credit losses | 25,756 | 23,519 | 23,911 | 24,002 | 22,865 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 3,868 | 3,801 | 3,666 | 3,318 | 3,532 | |||||||||||||||
Customer service fees | 3,515 | 3,257 | 2,970 | 2,890 | 2,886 | |||||||||||||||
Gain on sales of securities, net | 1,930 | 50 | - | 3,959 | - | |||||||||||||||
Mortgage banking income | 850 | 1,553 | 2,570 | 2,654 | 2,649 | |||||||||||||||
Bank-owned life insurance income | 494 | 498 | 518 | 482 | 492 | |||||||||||||||
Customer derivative income | 341 | 86 | 410 | 1,086 | 316 | |||||||||||||||
Other income | 352 | 260 | 114 | 334 | 227 | |||||||||||||||
Total non-interest income | 11,350 | 9,505 | 10,248 | 14,723 | 10,102 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 11,743 | 11,356 | 12,176 | 13,318 | 11,809 | |||||||||||||||
Occupancy and equipment | 4,029 | 3,894 | 4,328 | 4,192 | 4,279 | |||||||||||||||
Loss (gain) on sales of premises and equipment, net | (146 | ) | 1 | 8 | (122 | ) | - | |||||||||||||
Outside services | 547 | 533 | 432 | 571 | 438 | |||||||||||||||
Professional services | 491 | 151 | 558 | 572 | 479 | |||||||||||||||
Communication | 188 | 198 | 321 | 194 | 215 | |||||||||||||||
Marketing | 339 | 534 | 290 | 415 | 300 | |||||||||||||||
Amortization of intangible assets | 233 | 233 | 241 | 256 | 256 | |||||||||||||||
Loss on debt extinguishment | 1,768 | - | - | - | - | |||||||||||||||
Acquisition, conversion and other expenses | 318 | 552 | 889 | 4,849 | 691 | |||||||||||||||
Other expenses | 3,862 | 4,272 | 3,248 | 3,571 | 3,952 | |||||||||||||||
Total non-interest expense | 23,372 | 21,724 | 22,491 | 27,816 | 22,419 | |||||||||||||||
Income before income taxes | 13,734 | 11,300 | 11,668 | 10,909 | 10,548 | |||||||||||||||
Income tax expense | 2,706 | 2,275 | 2,188 | 2,269 | 2,146 | |||||||||||||||
Net income | $ | 11,028 | $ | 9,025 | $ | 9,480 | $ | 8,640 | $ | 8,402 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.74 | $ | 0.60 | $ | 0.63 | $ | 0.58 | $ | 0.56 | ||||||||||
Diluted | 0.73 | 0.60 | 0.63 | 0.58 | 0.56 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 14,983 | 14,965 | 14,934 | 14,909 | 15,079 | |||||||||||||||
Diluted | 15,051 | 15,042 | 15,007 | 14,952 | 15,103 | |||||||||||||||
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-bearing deposits with other banks (1) | 0.15 | % | 0.09 | % | 0.09 | % | 0.11 | % | 0.09 | % | ||||||||||
Securities available for sale and FHLB stock | 2.59 | 2.66 | 2.79 | 2.97 | 3.04 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | 3.53 | 3.54 | 3.68 | 3.74 | 3.81 | |||||||||||||||
Commercial and industrial | 3.79 | 3.60 | 3.86 | 3.92 | 4.39 | |||||||||||||||
Paycheck protection program | 23.28 | 5.56 | 8.12 | 11.56 | 3.18 | |||||||||||||||
Residential real estate | 3.64 | 3.80 | 3.76 | 3.74 | 3.71 | |||||||||||||||
Consumer | 3.78 | 3.44 | 3.56 | 3.65 | 3.42 | |||||||||||||||
Total loans | 3.98 | 3.70 | 3.85 | 4.03 | 3.81 | |||||||||||||||
Total earning assets | 3.41 | % | 3.26 | % | 3.46 | % | 3.65 | % | 3.57 | % | ||||||||||
Funding liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
NOW | 0.13 | % | 0.12 | % | 0.14 | % | 0.15 | % | 0.14 | % | ||||||||||
Savings | 0.08 | 0.10 | 0.13 | 0.13 | 0.13 | |||||||||||||||
Money market | 0.12 | 0.12 | 0.14 | 0.14 | 0.16 | |||||||||||||||
Time deposits | 0.88 | 1.37 | 1.44 | 1.64 | 1.69 | |||||||||||||||
Total interest-bearing deposits | 0.27 | 0.45 | 0.51 | 0.61 | 0.66 | |||||||||||||||
Borrowings | 2.11 | 2.12 | 2.16 | 1.83 | 1.60 | |||||||||||||||
Total interest-bearing liabilities | 0.50 | % | 0.66 | % | 0.72 | % | 0.77 | % | 0.82 | % | ||||||||||
Net interest spread | 2.91 | 2.60 | 2.74 | 2.88 | 2.75 | |||||||||||||||
Net interest margin (1) | 3.02 | 2.74 | 2.88 | 3.02 | 2.90 | |||||||||||||||
Core net interest margin (2) | 2.75 | 2.67 | 2.78 | 2.79 | 2.89 | |||||||||||||||
- 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.
- Core net interest margin excludes Paycheck Protection Program loans.
CHECK HERE CHECK HERE
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||
Assets | ||||||||||||||||||||
Interest-bearing deposits with other banks (1) | $ | 284,429 | $ | 228,825 | $ | 176,728 | $ | 176,747 | $ | 92,066 | ||||||||||
Securities available for sale and FHLB stock (2) | 610,381 | 635,978 | 613,459 | 563,118 | 627,162 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | 1,153,813 | 1,122,831 | 1,099,937 | 1,059,574 | 1,012,194 | |||||||||||||||
Commercial and industrial | 391,191 | 378,634 | 377,176 | 386,201 | 399,734 | |||||||||||||||
Paycheck protection program | 45,835 | 76,701 | 65,149 | 91,109 | 131,605 | |||||||||||||||
Residential real estate | 824,686 | 850,119 | 916,633 | 995,173 | 1,060,084 | |||||||||||||||
Consumer | 101,545 | 104,851 | 109,802 | 115,876 | 121,248 | |||||||||||||||
Total loans (3) | 2,517,070 | 2,533,136 | 2,568,697 | 2,647,933 | 2,724,865 | |||||||||||||||
Total earning assets | 3,411,880 | 3,397,939 | 3,358,884 | 3,387,798 | 3,444,093 | |||||||||||||||
Cash and due from banks | 38,750 | 21,414 | 23,221 | 22,473 | 36,521 | |||||||||||||||
Allowance for credit losses | (22,607 | ) | (23,419 | ) | (24,822 | ) | (18,690 | ) | (17,028 | ) | ||||||||||
Goodwill and other intangible assets | 126,556 | 126,789 | 127,024 | 127,264 | 127,508 | |||||||||||||||
Other assets (4) | 209,509 | 223,362 | 232,475 | 237,414 | 223,334 | |||||||||||||||
Total assets (4) | $ | 3,764,088 | $ | 3,746,085 | $ | 3,716,782 | $ | 3,756,259 | $ | 3,814,428 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
NOW | $ | 860,206 | $ | 781,836 | $ | 749,100 | $ | 713,464 | $ | 677,706 | ||||||||||
Savings | 591,440 | 568,193 | 541,203 | 516,266 | 488,508 | |||||||||||||||
Money market | 381,755 | 368,826 | 378,743 | 399,543 | 396,351 | |||||||||||||||
Time deposits | 471,934 | 619,454 | 675,422 | 734,523 | 777,424 | |||||||||||||||
Total interest-bearing deposits | 2,305,335 | 2,338,309 | 2,344,468 | 2,363,796 | 2,339,989 | |||||||||||||||
Borrowings | 334,097 | 345,896 | 340,209 | 376,437 | 481,687 | |||||||||||||||
Total interest-bearing liabilities | 2,639,432 | 2,684,205 | 2,684,677 | 2,740,233 | 2,821,676 | |||||||||||||||
Non-interest-bearing demand deposits | 641,769 | 591,982 | 550,657 | 535,402 | 507,844 | |||||||||||||||
Other liabilities (4) | 61,436 | 57,227 | 74,778 | 72,534 | 79,848 | |||||||||||||||
Total liabilities (4) | 3,342,637 | 3,333,414 | 3,310,112 | 3,348,169 | 3,409,368 | |||||||||||||||
Total shareholders' equity (4) | 421,451 | 412,671 | 406,670 | 408,090 | 405,060 | |||||||||||||||
Total liabilities and shareholders' equity (4) | $ | 3,764,088 | $ | 3,746,085 | $ | 3,716,782 | $ | 3,756,259 | $ | 3,814,428 | ||||||||||
- Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.
- Average balances for securities available-for-sale are based on amortized cost.
- Total average loans include non-accruing loans and loans held for sale.
- Prior quarters have been revised for derivatives that were incorrectly presented as assets instead of liabilities and related equity effects net of tax.
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDTED
| At or for the Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 3,646 | $ | 4,367 | $ | 4,664 | $ | 4,251 | $ | 4,714 | ||||||||||
Commercial installment | 1,163 | 1,370 | 1,534 | 1,466 | 1,820 | |||||||||||||||
Residential real estate | 6,311 | 6,788 | 6,753 | 5,729 | 7,154 | |||||||||||||||
Consumer installment | 1,087 | 1,054 | 1,118 | 742 | 720 | |||||||||||||||
Total non-accruing loans | 12,207 | 13,579 | 14,069 | 12,188 | 14,408 | |||||||||||||||
Other real estate owned | - | - | - | - | 1,983 | |||||||||||||||
Total non-performing assets | $ | 12,207 | $ | 13,579 | $ | 14,069 | $ | 12,188 | $ | 16,391 | ||||||||||
Total non-accruing loans/total loans | 0.48 | % | 0.54 | % | 0.55 | % | 0.48 | % | 0.54 | % | ||||||||||
Total non-performing assets/total assets | 0.33 | 0.37 | 0.38 | 0.33 | 0.42 | |||||||||||||||
PROVISION AND ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 22,815 | $ | 23,653 | $ | 19,082 | $ | 17,907 | $ | 16,509 | ||||||||||
Impact of CECL adoption | - | - | 5,228 | - | - | |||||||||||||||
Charged-off loans | (286 | ) | (239 | ) | (216 | ) | (297 | ) | (439 | ) | ||||||||||
Recoveries on charged-off loans | 93 | 166 | 48 | 112 | 37 | |||||||||||||||
Net loans charged-off | (193 | ) | (73 | ) | (168 | ) | (185 | ) | (402 | ) | ||||||||||
Provision for credit losses | (174 | ) | (765 | ) | (489 | ) | 1,360 | 1,800 | ||||||||||||
Balance at end of period | $ | 22,448 | $ | 22,815 | $ | 23,653 | $ | 19,082 | $ | 17,907 | ||||||||||
Allowance for credit losses/total loans | 0.89 | % | 0.91 | % | 0.93 | % | 0.74 | % | 0.66 | % | ||||||||||
Allowance for credit losses/non-accruing loans | 184 | 168 | 168 | 157 | 124 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (69 | ) | $ | (105 | ) | $ | (131 | ) | $ | 63 | $ | (252 | ) | ||||||
Commercial installment | (24 | ) | (7 | ) | 1 | (228 | ) | (10 | ) | |||||||||||
Residential real estate | 13 | 88 | (28 | ) | (21 | ) | 1 | |||||||||||||
Consumer installment | (113 | ) | (49 | ) | (10 | ) | 1 | (141 | ) | |||||||||||
Total, net | $ | (193 | ) | $ | (73 | ) | $ | (168 | ) | $ | (185 | ) | $ | (402 | ) | |||||
Net charge-offs (QTD annualized)/average loans | 0.03 | % | 0.01 | % | 0.03 | % | 0.03 | % | 0.06 | % | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.02 | 0.02 | 0.03 | 0.07 | 0.08 | |||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.09 | % | 0.13 | % | 0.43 | % | 0.58 | % | 0.16 | % | ||||||||||
90+ Days delinquent and still accruing | 0.02 | 0.02 | 0.01 | - | 0.08 | |||||||||||||||
Total accruing delinquent loans | 0.12 | 0.15 | 0.44 | 0.58 | 0.24 | |||||||||||||||
Non-accruing loans | 0.48 | 0.54 | 0.55 | 0.48 | 0.54 | |||||||||||||||
Total delinquent and non-accruing loans | 0.60 | % | 0.69 | % | 0.99 | % | 1.06 | % | 0.78 | % | ||||||||||
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) | 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Net income | $ | 11,028 | $ | 9,025 | $ | 9,480 | $ | 8,640 | $ | 8,402 | |||||||||||
Non-core items: | |||||||||||||||||||||
(Gain) on sale of securities, net | (1,930 | ) | (50 | ) | - | (3,959 | ) | - | |||||||||||||
(Gain) loss on sale of premises and equipment, net | (146 | ) | 1 | 8 | (122 | ) | - | ||||||||||||||
(Gain) loss on other real estate owned | - | - | - | (11 | ) | 335 | |||||||||||||||
Loss on debt extinguishment | 1,768 | - | - | - | - | ||||||||||||||||
Acquisition, conversion and other expenses | 318 | 552 | 889 | 4,849 | 691 | ||||||||||||||||
Income tax expense (1) | (2 | ) | (119 | ) | (213 | ) | (179 | ) | (245 | ) | |||||||||||
Total non-core items | 8 | 384 | 684 | 578 | 781 | ||||||||||||||||
Core earnings (2) | (A) | $ | 11,036 | $ | 9,409 | $ | 10,164 | $ | 9,218 | $ | 9,183 | ||||||||||
Net interest income | (B) | $ | 25,582 | $ | 22,754 | $ | 23,422 | $ | 25,362 | $ | 24,665 | ||||||||||
Non-interest income | 11,350 | 9,505 | 10,248 | 14,723 | 10,102 | ||||||||||||||||
Total Revenue | 36,932 | 32,259 | 33,670 | 40,085 | 34,767 | ||||||||||||||||
(Gain) on sale of securities, net | (1,930 | ) | (50 | ) | - | (3,959 | ) | - | |||||||||||||
Total core revenue (2) | (C) | $ | 35,002 | $ | 32,209 | $ | 33,670 | $ | 36,126 | $ | 34,767 | ||||||||||
Total non-interest expense | 23,372 | 21,724 | 22,491 | 27,816 | 22,419 | ||||||||||||||||
Non-core expenses: | |||||||||||||||||||||
Gain (loss) on sale of premises and equipment, net | 146 | (1 | ) | (8 | ) | 122 | - | ||||||||||||||
Gain (loss) on other real estate owned | - | - | - | 11 | (335 | ) | |||||||||||||||
Loss on debt extinguishment | (1,768 | ) | - | - | - | - | |||||||||||||||
Acquisition, conversion and other expenses | (318 | ) | (552 | ) | (889 | ) | (4,849 | ) | (691 | ) | |||||||||||
Total non-core expenses | (1,940 | ) | (553 | ) | (897 | ) | (4,716 | ) | (1,026 | ) | |||||||||||
Core non-interest expense (2) | (D) | $ | 21,432 | $ | 21,171 | $ | 21,594 | $ | 23,100 | $ | 21,393 | ||||||||||
Total revenue | 36,932 | 32,259 | 33,670 | 40,085 | 34,767 | ||||||||||||||||
Total non-interest expense | 23,372 | 21,724 | 22,491 | 27,816 | 22,419 | ||||||||||||||||
Pre-tax, pre-provision net revenue | $ | 13,560 | $ | 10,535 | $ | 11,179 | $ | 12,269 | $ | 12,348 | |||||||||||
Core revenue (2) | 35,002 | 32,209 | 33,670 | 36,126 | 34,767 | ||||||||||||||||
Core non-interest expense (2) | 21,432 | 21,171 | 21,594 | 23,100 | 21,393 | ||||||||||||||||
Core pre-tax, pre-provision net revenue (2) | (U) | $ | 13,570 | $ | 11,038 | $ | 12,076 | $ | 13,026 | $ | 13,374 | ||||||||||
(in millions) | |||||||||||||||||||||
Average earning assets | (E) | $ | 3,412 | $ | 3,398 | $ | 3,359 | $ | 3,388 | $ | 3,444 | ||||||||||
Average paycheck protection program (PPP) loans | (R) | 46 | 77 | 65 | 91 | 132 | |||||||||||||||
Average earning assets, excluding PPP loans | (S) | 3,366 | 3,321 | 3,294 | 3,297 | 3,312 | |||||||||||||||
Average assets | (F) | 3,764 | 3,746 | 3,717 | 3,756 | 3,814 | |||||||||||||||
Average shareholders' equity (8) | (G) | 421 | 413 | 407 | 408 | 405 | |||||||||||||||
Average tangible shareholders' equity (2) (3) (8) | (H) | 295 | 286 | 280 | 281 | 278 | |||||||||||||||
Tangible shareholders' equity, period-end (2) (3) (8) | (I) | 292 | 287 | 278 | 280 | 272 | |||||||||||||||
Tangible assets, period-end (2) (3) (8) | (J) | 3,612 | 3,512 | 3,603 | 3,597 | 3,734 | |||||||||||||||
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) | 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Common shares outstanding, period-end | (K) | 14,987 | 14,972 | 14,950 | 14,916 | 14,929 | |||||||||||||||
Average diluted shares outstanding | (L) | 15,051 | 15,042 | 15,007 | 14,952 | 15,103 | |||||||||||||||
Core earnings per share, diluted (2) | (A/L) | $ | 0.73 | $ | 0.63 | $ | 0.68 | $ | 0.62 | $ | 0.61 | ||||||||||
Tangible book value per share, period-end (2) (8) | (I/K) | 19.48 | 19.17 | 18.61 | 18.77 | 18.21 | |||||||||||||||
Securities adjustment, net of tax (1) (4) | (M) | 4,398 | 7,237 | 4,510 | 10,023 | 11,681 | |||||||||||||||
Tangible book value per share, excluding securities adjustment (2) (4) (8) | (I+M)/K | 19.19 | 18.69 | 18.31 | 18.09 | 17.42 | |||||||||||||||
Tangible shareholders' equity/total tangible assets (2) (8) | (I/J) | 8.08 | 8.17 | 7.72 | 7.78 | 7.28 | |||||||||||||||
Performance ratios (5) | |||||||||||||||||||||
GAAP return on assets | 1.16 | % | 0.97 | % | 1.03 | % | 0.92 | % | 0.88 | % | |||||||||||
Core return on assets (2) | (A/F) | 1.16 | 1.01 | 1.11 | 0.98 | 0.96 | |||||||||||||||
Pre-tax, pre-provision return on assets | 1.43 | 1.13 | 1.22 | 1.30 | 1.29 | ||||||||||||||||
Core pre-tax, pre-provision return on assets (2) | (U/F) | 1.43 | 1.18 | 1.32 | 1.38 | 1.39 | |||||||||||||||
GAAP return on equity (8) | 10.38 | 8.77 | 9.45 | 8.42 | 8.25 | ||||||||||||||||
Core return on equity (2) (8) | (A/G) | 10.39 | 9.14 | 10.14 | 8.99 | 9.02 | |||||||||||||||
Return on tangible equity (8) | 15.08 | 12.91 | 14.01 | 12.52 | 12.32 | ||||||||||||||||
Core return on tangible equity (1) (2) (8) | (A+Q)/H | 15.09 | 13.45 | 15.01 | 13.33 | 13.44 | |||||||||||||||
Efficiency ratio (2) (6) | (D-O-Q)/(C+N) | 59.18 | 63.45 | 61.95 | 61.98 | 59.47 | |||||||||||||||
Net interest margin | (B+P)/E | 3.02 | 2.74 | 2.88 | 3.02 | 2.90 | |||||||||||||||
Core net interest margin (2) (7) | (B+P-T)/S | 2.75 | 2.67 | 2.78 | 2.79 | 2.89 | |||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 576 | $ | 586 | $ | 595 | $ | 542 | $ | 570 | ||||||||||
Franchise taxes included in non-interest expense | (O) | 143 | 128 | 125 | 117 | 121 | |||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 421 | 430 | 433 | 396 | 416 | |||||||||||||||
Intangible amortization | (Q) | 233 | 233 | 241 | 256 | 256 | |||||||||||||||
Interest and fees on PPP loans | (T) | 2,690 | 1,064 | 1,304 | 2,648 | 1,052 | |||||||||||||||
- Assumes a marginal tax rate of 23.71% for 2021 and fourth quarter of 2020 and 23.87% for the first three quarters of 2020.
- 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.
- 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.
- Core net interest margin excludes Paycheck Protection Program loans.
- Prior quarters have been revised for derivatives that were incorrectly presented as assets instead of liabilities and related equity effects net of tax.
SOURCE : Bar Harbor Bankshares