BAR HARBOR, ME / ACCESSWIRE / October 19, 2022 / Bar Harbor Bankshares (NYSE American:BHB) reported third quarter 2022 net income of $11.4 million or $0.76 per diluted share compared to $11.0 million or $0.73 per diluted share in the same quarter of 2021. Earnings per share in the prior year quarter included a $0.14 per diluted share benefit from Paycheck Protection Program (PPP) loans.
THIRD QUARTER HIGHLIGHTS (all comparisons to the third quarter 2021)
- 1.20% return on assets, compared to 1.16%
- 18% annualized loan growth
- 12% annualized core deposit growth
- 3.47% net interest margin, compared to 3.02%
- 58% efficiency ratio, compared to 59%
- 0.20% non-performing assets ratio to total assets, compared to 0.33%
President and Chief Executive Officer, Curtis C. Simard stated, "We are pleased to report our third quarter 2022 results which reflect another strong quarter in loan growth, asset quality, and expansion in net interest margin as well as in all other profitability metrics. We increased net income by 27% over the third quarter of 2021 excluding the benefit from PPP loans. Total revenue was $38.7 million; a 9% increase from the prior quarter driven primarily by both growth in average assets and the expansion in net interest income due to our asset-sensitive position. Return on assets expanded 25 basis points excluding income from PPP loans in 2021. This quarter's earnings reflect strategically designed core run rates based on non-maturity deposits and commercial loan growth. We continue to practice disciplined expense management despite inflationary challenges seen across the US work force today. These combined efforts create positive operating leverage, which in part, drove the efficiency ratio down to 58%, compared to 59% or 63% excluding PPP loan accretion in the third quarter 2021.
"Loan growth was generated across all of our footprint and across all industry sectors and business lines. The economy in Northern New England continues to be resilient despite pressures from the broader economy. While the commercial loan market is active, we continue to be selective in those opportunities with proven operators who similarly are increasingly focused on bank execution. Overall on an annualized basis commercial loans grew by 25% and residential loans grew 9%, as much of the mortgage production during the quarter was shifted to the balance sheet taking advantage of the higher rate environment.
"On the liability side, we are growing core deposits at a strong double digit rate and gaining market share. This has allowed us to increase our deposit funding reliance and diligently manage our funding costs, which also contributed to our expanded margin.
Mr. Simard went on to say, "As always, our asset quality remains a pillar of our foundation as we continue to see negligible net charge-offs this quarter. Non-performing assets to total assets continues to be minimal at 0.20%. At the end of the third quarter, the allowance for credit losses (ACL) was 0.88% of total loans, up from 0.87% at the end of the second 2022 quarter primarily as a result of more conservative economic forecasting and outsized loan growth.
"We've grown our tangible book value per share, excluding the impact of unrealized security losses, at a compound annual growth rate of 8% on strong earnings offset in part by favorable dividend payments to investors. We should also note that while we have not classified any of our portfolio as held to maturity, we do have the ability to hold the investments to maturity and fully expect any unrealized loss positions to be recovered over time. We continue to manage the investment portfolio as a balance sheet tool versus a line of business, and to this point, classifying investments as available for sale preserves our flexibility.
Mr. Simard concluded, "Looking ahead, while the economy remains uncertain, our customer base remains strong, and we continue to be well positioned to support the needs within our communities regardless of the economic environment. We are actively managing the balance sheet, and, as we have proven in the past, we will continue to lend through the uncertainty while managing our market sensitivity position."
DIVIDEND DECLARED
The Board of Directors voted to declare a cash dividend of $0.26 per share to shareholders of record at the close of business on November 16, 2022 payable on December 16, 2022. This dividend equates to a 3.92% annualized yield based on the $26.52 closing share price of the Company's common stock on September 30, 2022, the last trading day of the third quarter 2022.
FINANCIAL CONDITION
Loans were $2.8 billion at the end of the third quarter. Commercial loans increased $106.4 million from the end of the second quarter 2022 and included 65 new customer relationships. Total residential loans increased $20.0 million from the end of the second quarter 2022, and included $35.1 million of originations on the balance sheet offset by prepayments and amortization.
The allowance for credit losses was $25.0 million for the third quarter, compared to $23.8 million at the end of the second quarter 2022. The increase in the ACL balance is largely due to significant loan growth during the quarter. The third quarter 2022 charged off loans resulted in a net charge-off of $44 thousand compared to a net recovery of $32 thousand in the second quarter. Non-accruing loans for the third quarter 2022 decreased to $7.8 million from $7.9 million at the end of the second quarter. The ratio of accruing past due loans to total loans was 0.10% of total loans at the end of the third quarter from 0.12% at the end of the second quarter.
Total deposits were $3.1 billion at the end of the third quarter 2022 as well as at the end of the second quarter. Core deposits grew $84.8 million, or 12% on an annualized basis. Time deposits decreased $27.7 million during the quarter attributable to customers continuing to move funds to transactional accounts upon contractual maturity. Excess cash and short-term borrowings were used as funding during the third quarter as loan growth outpaced deposit growth. The loan to deposit ratio was 91% compared to 89% at the end of the second quarter 2022.
The Company's book value per share was $25.22 at September 30, 2022, compared with $26.19 at the end of the second quarter. Tangible book value per share (non-GAAP measure) was $16.89 at the end of the third quarter 2022, compared to $17.83 at the end of the second quarter. Other comprehensive income included unrealized loss on securities totaling $58.7 million in the third quarter 2022 compared to $38.3 million at the end of the second quarter.
RESULTS OF OPERATIONS
Net income in the third quarter 2022 was $11.4 million, or $0.76 per diluted share, compared to $11.0 million, or $0.73 per diluted share, in the same quarter of 2021. In the third quarter 2022, there was no PPP income compared to $2.7 million in the third quarter 2021.
Net interest margin was 3.47% compared to 3.02% in the same period of 2021. Acceleration of PPP loan fee amortization due to forgiveness contributed 28 basis points in the third quarter 2021. Interest-bearing cash balances reduced net interest margin by 2 basis points in the third quarter 2022 and 26 basis points the prior year quarter. The yield on loans was 4.04% in the third quarter 2022, and 3.98% in the third quarter of 2021 or 3.62% when excluding interest from PPP loans. Costs of interest-bearing liabilities decreased to 0.48% from 0.50% in the third quarter 2021 primarily due to having a lower percentage of wholesale borrowings to total debt.
The provision for credit losses for the quarter was $1.3 million, compared to a recapture of $174 thousand in the third quarter of 2021. The provision in the current period is mainly attributable to outsized loan growth, while the recapture in the prior year quarter was due to improvement in economic forecasts.
Non-interest income in the third quarter 2022 was $8.8 million, compared to $11.4 million in the same quarter of 2021. Customer service fees grew to $3.8 million from $3.7 million on a higher number of transactional accounts. Wealth management income in the third quarter 2022 was $3.5 million, compared to $3.9 million in the same quarter of 2021 due to market adjustments that reduced assets under management. Mortgage banking income was $315 thousand, compared to $850 thousand in the same period of 2021 reflecting lower originations and higher on balance sheet activity.
Non-interest expense was $23.0 million in the third quarter 2022 and $23.4 million in the same quarter of 2021. Salaries and employee benefits increased by $500 thousand primarily due to annual merit increases in the second quarter 2022 and revaluation long-term incentive accruals to the Company's higher stock price at the end of the third quarter 2022. The efficiency ratio in the third quarter 2022 was 58%, down from 59%, 63% excluding PPP loan income in the third quarter 2021. Non-core expenses (non-GAAP) were $31 thousand compared to $1.9 million in the third quarter of 2021, which mostly consisted of a $1.8 million 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 135 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
All statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to the current economic outlook, potential risks to the economy, future interest rates, our ability to grow in the future, and management's optimism about the Company's market and financial positions. The words "believe," "anticipate," "expect," "may," "will," "assume," "should," "predict," "could," "would," "intend," "targets," "estimates," "projects," "plans," and "potential," and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about the Company's future financial and operating results and the Company's plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) deterioration in the financial condition of borrowers of Bar Harbor Bank & Trust, including as a result of the negative impact of inflationary pressures on our customers and their businesses resulting in significant increases in loan losses and provisions for those losses, (2) deterioration in the financial condition of borrowers of Bar Harbor Bank & Trust, including as a result of the negative impact of inflationary pressures on our customers and their businesses resulting in significant increases in loan losses and provisions for those losses, (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated, (4) increased levels of other real estate, primarily as a result of foreclosures, (5) the impact of liquidity needs on our results of operations and financial condition, (6) competition from financial institutions and other financial service providers, (7) the effect of interest rate increases on the cost of deposits, (8) unanticipated weakness in loan demand or loan pricing, (9) adverse conditions in the national or local economies including in Bar Harbor Bankshares' markets throughout Northern New England, (10) the effects of new outbreaks of COVID-19, including actions taken by governmental officials to curb the spread of the virus, and the resulting impact on general economic and financial market conditions and on Bar Harbor Bankshares' and its customers' business, results of operations, asset quality and financial condition, (11) the efficacy of vaccines against the COVID-19 virus, including new variants, (12) lack of strategic growth opportunities or our failure to execute on available opportunities, (13) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, (14) our ability to effectively manage problem credits, (15) our ability to successfully implement efficiency initiatives on time and with the results projected, (16) our ability to successfully develop and market new products and technology, (17) the impact of negative developments in the financial industry and United States and global capital and credit markets, (18) our ability to retain the services of key personnel, (19) our ability to adapt to technological changes, (20) risks associated with litigation, including reputational and financial risks and the applicability of insurance coverage, (21) the vulnerability of the Bar Harbor Bank & Trust's computer and information technology systems and networks, and the systems and networks of third parties with whom the Company or the Bar Harbor Bank & Trust contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches and interruptions, (22) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments, (23) adverse impacts (including costs, fines, reputational harm, or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions, and (24) general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate. Additional factors which could affect the forward-looking statements can be found in the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the "SEC") and available on the SEC's website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company's ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.
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-J | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data |
BAR HARBOR BANKSHARES
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED
| At or for the Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.76 | $ | 0.70 | $ | 0.60 | $ | 0.65 | $ | 0.73 | ||||||||||
Core earnings, diluted (1) | 0.76 | 0.70 | 0.62 | 0.68 | 0.73 | |||||||||||||||
Total book value | 25.22 | 26.19 | 27.11 | 28.27 | 27.92 | |||||||||||||||
Tangible book value (1) | 16.89 | 17.83 | 18.72 | 19.86 | 19.48 | |||||||||||||||
Market price at period end | 26.52 | 25.86 | 28.62 | 28.93 | 28.05 | |||||||||||||||
Dividends | 0.26 | 0.26 | 0.24 | 0.24 | 0.24 | |||||||||||||||
PERFORMANCE RATIOS (2) | ||||||||||||||||||||
Return on assets | 1.20 | % | 1.14 | % | 1.00 | % | 1.02 | % | 1.16 | % | ||||||||||
Core return on assets (1) | 1.20 | 1.14 | 1.02 | 1.07 | 1.16 | |||||||||||||||
Pre-tax, pre-provision return on assets | 1.65 | 1.50 | 1.28 | 1.26 | 1.43 | |||||||||||||||
Core pre-tax, pre-provision return on assets (1) | 1.65 | 1.50 | 1.31 | 1.33 | 1.43 | |||||||||||||||
Return on equity | 11.55 | 10.58 | 8.89 | 9.16 | 10.38 | |||||||||||||||
Core return on equity (1) | 11.54 | 10.59 | 9.07 | 9.60 | 10.39 | |||||||||||||||
Return on tangible equity | 17.25 | 15.74 | 13.01 | 13.30 | 15.08 | |||||||||||||||
Core return on tangible equity (1) | 17.24 | 15.76 | 13.27 | 13.93 | 15.09 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (1) (3) | 3.47 | 3.19 | 2.95 | 2.79 | 3.02 | |||||||||||||||
Core net interest margin (1) (4) | 3.47 | 3.19 | 2.93 | 2.69 | 2.75 | |||||||||||||||
Efficiency ratio (1) | 57.67 | 59.25 | 62.40 | 60.74 | 59.18 | |||||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets | $ | 3,840 | $ | 3,716 | $ | 3,692 | $ | 3,709 | $ | 3,738 | ||||||||||
Total earning assets (5) | 3,525 | 3,399 | 3,367 | 3,380 | 3,394 | |||||||||||||||
Total investments | 566 | 593 | 611 | 626 | 556 | |||||||||||||||
Total loans | 2,850 | 2,727 | 2,655 | 2,532 | 2,534 | |||||||||||||||
Allowance for credit losses | 25 | 24 | 23 | 23 | 22 | |||||||||||||||
Total goodwill and intangible assets | 126 | 126 | 126 | 126 | 126 | |||||||||||||||
Total deposits | 3,136 | 3,079 | 3,048 | 3,049 | 3,007 | |||||||||||||||
Total shareholders' equity | 380 | 394 | 407 | 424 | 418 | |||||||||||||||
Net income | 11 | 11 | 9 | 10 | 11 | |||||||||||||||
Core earnings (1) | 11 | 11 | 9 | 10 | 11 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (recoveries)(6)/average loans | 0.01 | % | - | % | (0.01 | )% | (0.02 | )% | 0.03 | % | ||||||||||
Allowance for credit losses/total loans | 0.88 | 0.87 | 0.87 | 0.90 | 0.89 | |||||||||||||||
Loans/deposits | 91 | 89 | 87 | 83 | 84 | |||||||||||||||
Shareholders' equity to total assets | 9.89 | 10.59 | 11.02 | 11.43 | 11.19 | |||||||||||||||
Tangible shareholders' equity to tangible assets | 6.85 | 7.46 | 7.88 | 8.32 | 8.08 | |||||||||||||||
- Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J 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.
- Current quarter annualized.
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 50,760 | $ | 40,834 | $ | 38,656 | $ | 33,508 | $ | 39,081 | ||||||||||
Interest-earning deposits with other banks | 31,305 | 26,282 | 72,393 | 216,881 | 302,118 | |||||||||||||||
Total cash and cash equivalents | 82,065 | 67,116 | 111,049 | 250,389 | 341,199 | |||||||||||||||
Securities available for sale | 556,752 | 586,142 | 603,910 | 618,276 | 545,327 | |||||||||||||||
Federal Home Loan Bank stock | 9,035 | 6,572 | 7,384 | 7,384 | 10,192 | |||||||||||||||
Total securities | 565,787 | 592,714 | 611,294 | 625,660 | 555,519 | |||||||||||||||
Loans held for sale | 982 | 3,539 | 2,843 | 5,523 | 7,505 | |||||||||||||||
Total loans | 2,850,364 | 2,727,274 | 2,654,562 | 2,531,910 | 2,534,154 | |||||||||||||||
Less: Allowance for credit losses | (25,018 | ) | (23,756 | ) | (23,190 | ) | (22,718 | ) | (22,448 | ) | ||||||||||
Net loans | 2,825,346 | 2,703,518 | 2,631,372 | 2,509,192 | 2,511,706 | |||||||||||||||
Premises and equipment, net | 48,010 | 48,350 | 48,891 | 49,382 | 50,070 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Goodwill | 119,477 | 119,477 | 119,477 | 119,477 | 119,477 | |||||||||||||||
Other intangible assets | 6,034 | 6,267 | 6,500 | 6,733 | 6,966 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 80,758 | 80,262 | 79,861 | 79,020 | 79,380 | |||||||||||||||
Deferred tax asset, net | 25,288 | 18,405 | 12,614 | 5,547 | 5,811 | |||||||||||||||
Other assets | 86,499 | 76,109 | 68,169 | 58,310 | 60,712 | |||||||||||||||
Total assets | $ | 3,840,246 | $ | 3,715,757 | $ | 3,692,070 | $ | 3,709,233 | $ | 3,738,345 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 700,218 | $ | 670,268 | $ | 653,471 | $ | 664,420 | $ | 664,395 | ||||||||||
NOW deposits | 918,822 | 883,239 | 918,768 | 940,631 | 888,021 | |||||||||||||||
Savings deposits | 669,317 | 663,676 | 658,834 | 628,670 | 605,977 | |||||||||||||||
Money market deposits | 513,075 | 499,456 | 424,750 | 389,291 | 379,651 | |||||||||||||||
Time deposits | 334,248 | 361,906 | 391,940 | 425,532 | 469,221 | |||||||||||||||
Total deposits | 3,135,680 | 3,078,545 | 3,047,763 | 3,048,544 | 3,007,265 | |||||||||||||||
Senior borrowings | 188,757 | 117,347 | 118,538 | 118,400 | 190,267 | |||||||||||||||
Subordinated borrowings | 60,248 | 60,206 | 60,165 | 60,124 | 60,083 | |||||||||||||||
Total borrowings | 249,005 | 177,553 | 178,703 | 178,524 | 250,350 | |||||||||||||||
Other liabilities | 75,596 | 66,062 | 58,605 | 58,018 | 62,295 | |||||||||||||||
Total liabilities | 3,460,281 | 3,322,160 | 3,285,071 | 3,285,086 | 3,319,910 | |||||||||||||||
Total shareholders' equity | 379,965 | 393,597 | 406,999 | 424,147 | 418,435 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,840,246 | $ | 3,715,757 | $ | 3,692,070 | $ | 3,709,233 | $ | 3,738,345 | ||||||||||
Net shares outstanding | 15,066 | 15,026 | 15,013 | 15,001 | 14,987 | |||||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| Annualized | ||||||||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Quarter | Year | ||||||||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | to Date | to Date | |||||||||||||||||||||
Commercial real estate | $ | 1,421,962 | $ | 1,331,860 | $ | 1,289,968 | $ | 1,210,580 | $ | 1,170,372 | 27 | % | 23 | % | ||||||||||||||
Commercial and industrial | 376,624 | 360,304 | 346,394 | 340,129 | 331,091 | 18 | 14 | |||||||||||||||||||||
Paycheck Protection Program (PPP) | - | 170 | 1,126 | 6,669 | 24,227 | * | * | |||||||||||||||||||||
Total commercial loans | 1,798,586 | 1,692,334 | 1,637,488 | 1,557,378 | 1,525,690 | 25 | 21 | |||||||||||||||||||||
Total commercial loans, excluding PPP | 1,798,586 | 1,692,164 | 1,636,362 | 1,550,709 | 1,501,463 | 25 | 21 | |||||||||||||||||||||
Residential real estate | 896,618 | 876,644 | 868,382 | 821,004 | 849,692 | 9 | 12 | |||||||||||||||||||||
Consumer | 100,822 | 100,816 | 96,876 | 98,949 | 100,933 | - | 3 | |||||||||||||||||||||
Tax exempt and other | 54,338 | 57,480 | 51,816 | 54,579 | 57,839 | (22 | ) | (1 | ) | |||||||||||||||||||
Total loans | $ | 2,850,364 | $ | 2,727,274 | $ | 2,654,562 | $ | 2,531,910 | $ | 2,534,154 | 18 | % | 17 | % | ||||||||||||||
DEPOSIT ANALYSIS
| Annualized | ||||||||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Quarter | Year | ||||||||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | to Date | to Date | |||||||||||||||||||||
Demand | $ | 700,218 | $ | 670,268 | $ | 653,471 | $ | 664,420 | $ | 664,395 | 18 | % | 7 | % | ||||||||||||||
NOW | 918,822 | 883,239 | 918,768 | 940,631 | 888,021 | 16 | (3 | ) | ||||||||||||||||||||
Savings | 669,317 | 663,676 | 658,834 | 628,670 | 605,977 | 3 | 9 | |||||||||||||||||||||
Money market | 513,075 | 499,456 | 424,750 | 389,291 | 379,651 | 11 | 42 | |||||||||||||||||||||
Total non-maturity deposits | 2,801,432 | 2,716,639 | 2,655,823 | 2,623,012 | 2,538,044 | 12 | 9 | |||||||||||||||||||||
Total time deposits | 334,248 | 361,906 | 391,940 | 425,532 | 469,221 | (31 | ) | (29 | ) | |||||||||||||||||||
Total deposits | $ | 3,135,680 | $ | 3,078,545 | $ | 3,047,763 | $ | 3,048,544 | $ | 3,007,265 | 7 | % | 4 | % | ||||||||||||||
*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) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest and dividend income | ||||||||||||||||
Loans | $ | 27,940 | $ | 25,094 | $ | 75,192 | $ | 72,490 | ||||||||
Securities and other | 5,145 | 3,821 | 13,178 | 11,792 | ||||||||||||
Total interest and dividend income | 33,085 | 28,915 | 88,370 | 84,282 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,801 | 1,555 | 4,185 | 7,109 | ||||||||||||
Borrowings | 1,374 | 1,778 | 3,458 | 5,415 | ||||||||||||
Total interest expense | 3,175 | 3,333 | 7,643 | 12,524 | ||||||||||||
Net interest income | 29,910 | 25,582 | 80,727 | 71,758 | ||||||||||||
Provision for credit losses | 1,306 | (174 | ) | 2,217 | (1,428 | ) | ||||||||||
Net interest income after provision for credit losses | 28,604 | 25,756 | 78,510 | 73,186 | ||||||||||||
Non-interest income | ||||||||||||||||
Trust and investment management fee income | 3,548 | 3,868 | 11,131 | 11,335 | ||||||||||||
Customer service fees | 3,836 | 3,515 | 11,108 | 9,742 | ||||||||||||
Gain on sales of securities, net | 44 | 1,930 | 53 | 1,980 | ||||||||||||
Mortgage banking income | 315 | 850 | 1,427 | 4,973 | ||||||||||||
Bank-owned life insurance income | 496 | 494 | 1,501 | 1,510 | ||||||||||||
Customer derivative income | 58 | 341 | 213 | 837 | ||||||||||||
Other income | 526 | 352 | 1,660 | 726 | ||||||||||||
Total non-interest income | 8,823 | 11,350 | 27,093 | 31,103 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 12,242 | 11,743 | 35,757 | 35,275 | ||||||||||||
Occupancy and equipment | 4,458 | 4,029 | 13,254 | 12,251 | ||||||||||||
Loss (gain) on sales of premises and equipment, net | - | (146 | ) | (65 | ) | (137 | ) | |||||||||
Outside services | 393 | 547 | 1,143 | 1,512 | ||||||||||||
Professional services | 421 | 491 | 1,122 | 1,200 | ||||||||||||
Communication | 204 | 188 | 617 | 707 | ||||||||||||
Marketing | 518 | 339 | 1,150 | 1,163 | ||||||||||||
Amortization of intangible assets | 233 | 233 | 699 | 707 | ||||||||||||
Loss on debt extinguishment | - | 1,768 | - | 1,768 | ||||||||||||
Acquisition, conversion and other expenses | 31 | 318 | 356 | 1,759 | ||||||||||||
Other expenses | 4,532 | 3,862 | 12,585 | 11,382 | ||||||||||||
Total non-interest expense | 23,032 | 23,372 | 66,618 | 67,587 | ||||||||||||
Income before income taxes | 14,395 | 13,734 | 38,985 | 36,702 | ||||||||||||
Income tax expense | 2,965 | 2,706 | 7,940 | 7,169 | ||||||||||||
Net income | $ | 11,430 | $ | 11,028 | $ | 31,045 | $ | 29,533 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.76 | $ | 0.74 | $ | 2.07 | $ | 1.97 | ||||||||
Diluted | 0.76 | 0.73 | 2.06 | 1.96 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 15,058 | 14,983 | 15,029 | 14,961 | ||||||||||||
Diluted | 15,113 | 15,051 | 15,100 | 15,035 | ||||||||||||
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) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 27,940 | $ | 24,581 | $ | 22,671 | $ | 22,746 | $ | 25,094 | ||||||||||
Securities and other | 5,145 | 4,207 | 3,826 | 3,776 | 3,821 | |||||||||||||||
Total interest and dividend income | 33,085 | 28,788 | 26,497 | 26,522 | 28,915 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 1,801 | 1,195 | 1,189 | 1,434 | 1,555 | |||||||||||||||
Borrowings | 1,374 | 1,074 | 1,010 | 1,273 | 1,778 | |||||||||||||||
Total interest expense | 3,175 | 2,269 | 2,199 | 2,707 | 3,333 | |||||||||||||||
Net interest income | 29,910 | 26,519 | 24,298 | 23,815 | 25,582 | |||||||||||||||
Provision for credit losses | 1,306 | 534 | 377 | 126 | (174 | ) | ||||||||||||||
Net interest income after provision for credit losses | 28,604 | 25,985 | 23,921 | 23,689 | 25,756 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 3,548 | 3,829 | 3,754 | 3,844 | 3,868 | |||||||||||||||
Customer service fees | 3,836 | 3,656 | 3,616 | 3,470 | 3,515 | |||||||||||||||
Gain on sales of securities, net | 44 | - | 9 | 890 | 1,930 | |||||||||||||||
Mortgage banking income | 315 | 488 | 624 | 1,563 | 850 | |||||||||||||||
Bank-owned life insurance income | 496 | 504 | 501 | 669 | 494 | |||||||||||||||
Customer derivative income | 58 | 137 | 18 | 173 | 341 | |||||||||||||||
Other income | 526 | 347 | 787 | 549 | 352 | |||||||||||||||
Total non-interest income | 8,823 | 8,961 | 9,309 | 11,158 | 11,350 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 12,242 | 11,368 | 12,147 | 11,842 | 11,743 | |||||||||||||||
Occupancy and equipment | 4,458 | 4,373 | 4,423 | 4,105 | 4,029 | |||||||||||||||
Loss (gain) on sales of premises and equipment, net | - | 10 | (75 | ) | 515 | (146 | ) | |||||||||||||
Outside services | 393 | 410 | 340 | 431 | 547 | |||||||||||||||
Professional services | 421 | 528 | 173 | 556 | 491 | |||||||||||||||
Communication | 204 | 188 | 225 | 205 | 188 | |||||||||||||||
Marketing | 518 | 369 | 263 | 378 | 339 | |||||||||||||||
Amortization of intangible assets | 233 | 233 | 233 | 233 | 233 | |||||||||||||||
Loss on debt extinguishment | - | - | - | 1,083 | 1,768 | |||||||||||||||
Acquisition, conversion and other expenses | 31 | - | 325 | (92 | ) | 318 | ||||||||||||||
Other expenses | 4,532 | 4,221 | 3,832 | 3,665 | 3,862 | |||||||||||||||
Total non-interest expense | 23,032 | 21,700 | 21,886 | 22,921 | 23,372 | |||||||||||||||
Income before income taxes | 14,395 | 13,246 | 11,344 | 11,926 | 13,734 | |||||||||||||||
Income tax expense | 2,965 | 2,743 | 2,232 | 2,160 | 2,706 | |||||||||||||||
Net income | $ | 11,430 | $ | 10,503 | $ | 9,112 | $ | 9,766 | $ | 11,028 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.76 | $ | 0.70 | $ | 0.61 | $ | 0.65 | $ | 0.74 | ||||||||||
Diluted | 0.76 | 0.70 | 0.60 | 0.65 | 0.73 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 15,058 | 15,018 | 15,011 | 14,993 | 14,983 | |||||||||||||||
Diluted | 15,113 | 15,077 | 15,102 | 15,075 | 15,051 | |||||||||||||||
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-earning deposits with other banks | 2.13 | % | 0.80 | % | 0.16 | % | 0.16 | % | 0.15 | % | ||||||||||
Securities available for sale and FHLB stock | 3.12 | 2.69 | 2.55 | 2.66 | 2.59 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | 4.26 | 3.82 | 3.50 | 3.40 | 3.53 | |||||||||||||||
Commercial and industrial | 4.46 | 3.67 | 3.46 | 3.23 | 3.79 | |||||||||||||||
Paycheck protection program | - | 13.99 | 26.49 | 26.25 | 23.28 | |||||||||||||||
Residential real estate | 3.45 | 3.55 | 3.55 | 3.61 | 3.64 | |||||||||||||||
Consumer | 4.55 | 3.82 | 3.51 | 3.49 | 3.78 | |||||||||||||||
Total loans | 4.04 | 3.71 | 3.54 | 3.58 | 3.98 | |||||||||||||||
Total earning assets | 3.84 | % | 3.46 | % | 3.21 | % | 3.10 | % | 3.41 | % | ||||||||||
Funding liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
NOW | 0.16 | % | 0.14 | % | 0.14 | % | 0.14 | % | 0.13 | % | ||||||||||
Savings | 0.08 | 0.08 | 0.09 | 0.08 | 0.08 | |||||||||||||||
Money market | 0.65 | 0.19 | 0.12 | 0.12 | 0.12 | |||||||||||||||
Time deposits | 0.55 | 0.58 | 0.62 | 0.77 | 0.88 | |||||||||||||||
Total interest-bearing deposits | 0.30 | 0.20 | 0.20 | 0.24 | 0.27 | |||||||||||||||
Borrowings | 2.69 | 2.41 | 2.29 | 2.17 | 2.11 | |||||||||||||||
Total interest-bearing liabilities | 0.48 | % | 0.36 | % | 0.35 | % | 0.41 | % | 0.50 | % | ||||||||||
Net interest spread | 3.36 | 3.10 | 2.86 | 2.69 | 2.91 | |||||||||||||||
Net interest margin | 3.47 | 3.19 | 2.95 | 2.79 | 3.02 | |||||||||||||||
Core net interest margin (1) | 3.47 | 3.19 | 2.93 | 2.69 | 2.75 | |||||||||||||||
- Core net interest margin (Non-GAAP) excludes Paycheck Protection Program loans.
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
Assets | ||||||||||||||||||||
Interest-earning deposits with other banks (1) | $ | 59,556 | $ | 63,317 | $ | 140,383 | $ | 325,260 | $ | 284,429 | ||||||||||
Securities available for sale and FHLB stock (2) | 642,475 | 637,881 | 629,811 | 578,323 | 610,381 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate | 1,351,599 | 1,296,162 | 1,264,798 | 1,189,803 | 1,153,813 | |||||||||||||||
Commercial and industrial | 421,963 | 412,518 | 393,759 | 386,156 | 391,191 | |||||||||||||||
Paycheck protection program | 94 | 788 | 2,999 | 14,824 | 45,835 | |||||||||||||||
Residential real estate | 882,158 | 863,172 | 856,252 | 844,872 | 824,686 | |||||||||||||||
Consumer | 101,175 | 98,588 | 97,594 | 100,723 | 101,545 | |||||||||||||||
Total loans (3) | 2,756,989 | 2,671,228 | 2,615,402 | 2,536,378 | 2,517,070 | |||||||||||||||
Total earning assets | 3,459,020 | 3,372,426 | 3,385,596 | 3,439,961 | 3,411,880 | |||||||||||||||
Cash and due from banks | 40,330 | 35,051 | 32,742 | 37,818 | 38,750 | |||||||||||||||
Allowance for credit losses | (24,061 | ) | (23,228 | ) | (23,256 | ) | (22,525 | ) | (22,607 | ) | ||||||||||
Goodwill and other intangible assets | 125,626 | 126,090 | 126,090 | 126,324 | 126,556 | |||||||||||||||
Other assets | 171,394 | 178,037 | 190,846 | 200,097 | 209,509 | |||||||||||||||
Total assets | $ | 3,772,309 | $ | 3,688,376 | $ | 3,712,018 | $ | 3,781,675 | $ | 3,764,088 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
NOW | $ | 905,668 | $ | 893,239 | $ | 930,556 | $ | 913,326 | $ | 860,206 | ||||||||||
Savings | 668,255 | 657,047 | 640,672 | 620,599 | 591,440 | |||||||||||||||
Money market | 491,683 | 457,088 | 414,130 | 395,341 | 381,755 | |||||||||||||||
Time deposits | 349,787 | 375,782 | 406,730 | 450,559 | 471,934 | |||||||||||||||
Total interest-bearing deposits | 2,415,393 | 2,383,156 | 2,392,088 | 2,379,825 | 2,305,335 | |||||||||||||||
Borrowings | 202,296 | 178,519 | 178,958 | 232,492 | 334,097 | |||||||||||||||
Total interest-bearing liabilities | 2,617,689 | 2,561,675 | 2,571,046 | 2,612,317 | 2,639,432 | |||||||||||||||
Non-interest-bearing demand deposits | 690,134 | 661,412 | 660,717 | 684,895 | 641,769 | |||||||||||||||
Other liabilities | 71,934 | 67,069 | 64,619 | 61,480 | 61,436 | |||||||||||||||
Total liabilities | 3,379,757 | 3,290,156 | 3,296,382 | 3,358,692 | 3,342,637 | |||||||||||||||
Total shareholders' equity | 392,552 | 398,220 | 415,636 | 422,983 | 421,451 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,772,309 | $ | 3,688,376 | $ | 3,712,018 | $ | 3,781,675 | $ | 3,764,088 | ||||||||||
- 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.
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| At or for the Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
(in thousands) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 1,587 | $ | 1,483 | $ | 1,633 | $ | 2,890 | $ | 3,646 | ||||||||||
Commercial installment | 348 | 632 | 905 | 1,056 | 1,163 | |||||||||||||||
Residential real estate | 4,858 | 4,882 | 5,612 | 5,192 | 6,311 | |||||||||||||||
Consumer installment | 981 | 881 | 1,063 | 1,053 | 1,087 | |||||||||||||||
Total non-accruing loans | 7,774 | 7,878 | 9,213 | 10,191 | 12,207 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Total non-performing assets | $ | 7,774 | $ | 7,878 | $ | 9,213 | $ | 10,191 | $ | 12,207 | ||||||||||
Total non-accruing loans/total loans | 0.27 | % | 0.29 | % | 0.35 | % | 0.40 | % | 0.48 | % | ||||||||||
Total non-performing assets/total assets | 0.20 | 0.21 | 0.25 | 0.27 | 0.33 | |||||||||||||||
PROVISION AND ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 23,756 | $ | 23,190 | $ | 22,718 | $ | 22,448 | $ | 22,815 | ||||||||||
Charged-off loans | (85 | ) | (62 | ) | (83 | ) | (154 | ) | (286 | ) | ||||||||||
Recoveries on charged-off loans | 41 | 94 | 178 | 298 | 93 | |||||||||||||||
Net loans charged-off | (44 | ) | 32 | 95 | 144 | (193 | ) | |||||||||||||
Provision for credit losses | 1,306 | 534 | 377 | 126 | (174 | ) | ||||||||||||||
Balance at end of period | $ | 25,018 | $ | 23,756 | $ | 23,190 | $ | 22,718 | $ | 22,448 | ||||||||||
Allowance for credit losses/total loans | 0.88 | % | 0.87 | % | 0.87 | % | 0.90 | % | 0.89 | % | ||||||||||
Allowance for credit losses/non-accruing loans | 322 | 300 | 252 | 223 | 184 | |||||||||||||||
NET LOAN (CHARGE-OFFS) RECOVERIES | ||||||||||||||||||||
Commercial real estate | $ | 7 | $ | 59 | $ | 54 | $ | 216 | $ | (69 | ) | |||||||||
Commercial installment | 12 | 12 | 25 | 53 | (24 | ) | ||||||||||||||
Residential real estate | (5 | ) | 6 | 76 | 8 | 13 | ||||||||||||||
Consumer installment | (58 | ) | (45 | ) | (60 | ) | (133 | ) | (113 | ) | ||||||||||
Total, net | $ | (44 | ) | $ | 32 | $ | 95 | $ | 144 | $ | (193 | ) | ||||||||
Net charge-offs (recoveries) (QTD annualized)/average loans | 0.01 | % | - | % | (0.01 | )% | (0.02 | )% | 0.03 | % | ||||||||||
Net charge-offs (recoveries) (YTD annualized)/average loans | - | (0.01 | ) | (0.01 | ) | 0.01 | 0.02 | |||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.09 | % | 0.09 | % | 0.22 | % | 0.31 | % | 0.09 | % | ||||||||||
90+ Days delinquent and still accruing | 0.01 | 0.03 | 0.03 | 0.01 | 0.02 | |||||||||||||||
Total accruing delinquent loans | 0.10 | 0.12 | 0.25 | 0.32 | 0.12 | |||||||||||||||
Non-accruing loans | 0.27 | 0.29 | 0.35 | 0.40 | 0.48 | |||||||||||||||
Total delinquent and non-accruing loans | 0.37 | % | 0.41 | % | 0.60 | % | 0.72 | % | 0.60 | % | ||||||||||
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) | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||||
Net income$ | $ | 11,430 | $ | 10,503 | $ | 9,112 | $ | 9,766 | $ | 11,028 | |||||||||||||
Non-core items: | |||||||||||||||||||||||
Gain on sale of securities, net | (44 | ) | - | (9 | ) | (890 | ) | (1,930 | ) | ||||||||||||||
Loss (gain) on sale of premises and equipment, net | - | 10 | (75 | ) | 515 | (146 | ) | ||||||||||||||||
Loss on debt extinguishment | - | - | - | 1,083 | 1,768 | ||||||||||||||||||
Acquisition, conversion and other expenses | 31 | - | 325 | (92 | ) | 318 | |||||||||||||||||
Income tax expense (1) | 3 | (2 | ) | (56 | ) | (144 | ) | (2 | ) | ||||||||||||||
Total non-core items | (10 | ) | 8 | 185 | 472 | 8 | |||||||||||||||||
Core earnings (2) | (A) | $ | 11,420 | $ | 10,511 | $ | 9,297 | $ | 10,238 | $ | 11,036 | ||||||||||||
Net interest income | (B) | $ | 29,910 | $ | 26,519 | $ | 24,298 | $ | 23,815 | $ | 25,582 | ||||||||||||
Non-interest income | 8,823 | 8,961 | 9,309 | 11,158 | 11,350 | ||||||||||||||||||
Total revenue | 38,733 | 35,480 | 33,607 | 34,973 | 36,932 | ||||||||||||||||||
Gain on sale of securities, net | (44 | ) | - | (9 | ) | (890 | ) | (1,930 | ) | ||||||||||||||
Total core revenue (2) | (C) | $ | 38,689 | $ | 35,480 | $ | 33,598 | $ | 34,083 | $ | 35,002 | ||||||||||||
Total non-interest expense | 23,032 | 21,700 | 21,886 | 22,921 | 23,372 | ||||||||||||||||||
Non-core expenses: | |||||||||||||||||||||||
(Loss) gain on sale of premises and equipment, net | - | (10 | ) | 75 | (515 | ) | 146 | ||||||||||||||||
Loss on debt extinguishment | - | - | - | (1,083 | ) | (1,768 | ) | ||||||||||||||||
Acquisition, conversion and other expenses | (31 | ) | - | (325 | ) | 92 | (318 | ) | |||||||||||||||
Total non-core expenses | (31 | ) | (10 | ) | (250 | ) | (1,506 | ) | (1,940 | ) | |||||||||||||
Core non-interest expense (2) | (D) | $ | 23,001 | $ | 21,690 | $ | 21,636 | $ | 21,415 | $ | 21,432 | ||||||||||||
Total revenue | 38,733 | 35,480 | 33,607 | 34,973 | 36,932 | ||||||||||||||||||
Total non-interest expense | 23,032 | 21,700 | 21,886 | 22,921 | 23,372 | ||||||||||||||||||
Pre-tax, pre-provision net revenue | $ | 15,701 | $ | 13,780 | $ | 11,721 | $ | 12,052 | $ | 13,560 | |||||||||||||
Core revenue(2) | 38,689 | 35,480 | 33,598 | 34,083 | 35,002 | ||||||||||||||||||
Core non-interest expense(2) | 23,001 | 21,690 | 21,636 | 21,415 | 21,432 | ||||||||||||||||||
Core pre-tax, pre-provision net revenue(2) | (U) | $ | 15,688 | $ | 13,790 | $ | 11,962 | $ | 12,668 | $ | 13,570 | ||||||||||||
(in millions) | |||||||||||||||||||||||
Average earning assets | (E) | $ | 3,459 | $ | 3,372 | $ | 3,386 | $ | 3,440 | $ | 3,412 | ||||||||||||
Average paycheck protection program (PPP) loans | (R) | - | 1 | 3 | 15 | 46 | |||||||||||||||||
Average earning assets, excluding PPP loans | (S) | 3,459 | 3,371 | 3,383 | 3,425 | 3,366 | |||||||||||||||||
Average assets | (F) | 3,772 | 3,688 | 3,712 | 3,782 | 3,764 | |||||||||||||||||
Average shareholders' equity | (G) | 393 | 398 | 416 | 423 | 421 | |||||||||||||||||
Average tangible shareholders' equity (2) (3) | (H) | 267 | 272 | 290 | 297 | 295 | |||||||||||||||||
Tangible shareholders' equity, period-end (2) (3) | (I) | 254 | 268 | 281 | 298 | 292 | |||||||||||||||||
Tangible assets, period-end (2) (3) | (J) | 3,715 | 3,587 | 3,566 | 3,583 | 3,612 | |||||||||||||||||
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) | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||||
Common shares outstanding, period-end | (K) | 15,066 | 15,026 | 15,013 | 15,001 | 14,987 | |||||||||||||||||
Average diluted shares outstanding | (L) | 15,113 | 15,077 | 15,102 | 15,075 | 15,051 | |||||||||||||||||
Core earnings per share, diluted (2) | (A/L) | $ | 0.76 | $ | 0.70 | $ | 0.62 | $ | 0.68 | $ | 0.73 | ||||||||||||
Tangible book value per share, period-end (2) | (I/K) | 16.89 | 17.83 | 18.72 | 19.86 | 19.48 | |||||||||||||||||
Securities adjustment, net of tax (1) (4) | (M) | (58,715 | ) | (38,304 | ) | (20,225 | ) | 1,985 | 4,398 | ||||||||||||||
Tangible book value per share, excluding securities adjustment (2) (4) | (I+M)/K | 20.79 | 20.38 | 20.07 | 19.73 | 19.19 | |||||||||||||||||
Tangible shareholders' equity/total tangible assets (2) | (I/J) | 6.85 | 7.47 | 7.88 | 8.32 | 8.08 | |||||||||||||||||
Performance ratios (5) | |||||||||||||||||||||||
GAAP return on assets | 1.20 | % | 1.14 | % | 1.00 | % | 1.02 | % | 1.16 | % | |||||||||||||
Core return on assets (2) | (A/F) | 1.20 | 1.14 | 1.02 | 1.07 | 1.16 | |||||||||||||||||
Pre-tax, pre-provision return on assets | 1.65 | 1.50 | 1.28 | 1.26 | 1.43 | ||||||||||||||||||
Core pre-tax, pre-provision return on assets (2) | (U/F) | 1.65 | 1.50 | 1.31 | 1.33 | 1.43 | |||||||||||||||||
GAAP return on equity | 11.55 | 10.58 | 8.89 | 9.16 | 10.38 | ||||||||||||||||||
Core return on equity (2) | (A/G) | 11.54 | 10.59 | 9.07 | 9.60 | 10.39 | |||||||||||||||||
Return on tangible equity | 17.25 | 15.74 | 13.01 | 13.30 | 15.08 | ||||||||||||||||||
Core return on tangible equity (1) (2) | (A+Q)/H | 17.24 | 15.76 | 13.27 | 13.93 | 15.09 | |||||||||||||||||
Efficiency ratio (2) (6) | (D-O-Q)/(C+N) | 57.67 | 59.25 | 62.40 | 60.74 | 59.18 | |||||||||||||||||
Net interest margin | (B+P)/E | 3.47 | 3.19 | 2.95 | 2.79 | 3.02 | |||||||||||||||||
Core net interest margin (2) (7) | (B+P-T)/S | 3.47 | 3.19 | 2.93 | 2.69 | 2.75 | |||||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 533 | $ | 491 | $ | 476 | $ | 573 | $ | 576 | ||||||||||||
Franchise taxes included in non-interest expense | (O) | 149 | 144 | 141 | 132 | 143 | |||||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 379 | 334 | 320 | 369 | 421 | |||||||||||||||||
Intangible amortization | (Q) | 233 | 233 | 233 | 233 | 233 | |||||||||||||||||
Interest and fees on PPP loans | (T) | - | 27 | 196 | 981 | 2,690 | |||||||||||||||||
- Assumes a marginal tax rate of 23.41% for the last four quarters and 23.71% for the third quarter of 2021.
- 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.
SOURCE: Bar Harbor Bank and Trust