Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bar Harbor Bankshares Reports Second Quarter Results; Declares Dividend By: ACCESSWIRE July 21, 2022 at 16:15 PM EDT BAR HARBOR, ME / ACCESSWIRE / July 21, 2022 / Bar Harbor Bankshares (NYSE American:BHB) reported second quarter 2022 net income of $10.5 million or $0.70 per diluted share compared to $9.0 million or $0.60 per diluted share in the same quarter of 2021. Earnings per share in the prior year quarter included a $0.05 benefit from Paycheck Protection Program (PPP) loans offset by $0.03 of non-core items (non-GAAP).SECOND QUARTER HIGHLIGHTS (ratios compared to the second quarter 2021)1.14% return on assets, compared to 0.97%11% annualized loan growth9% annualized core deposit growth3.19% net interest margin, compared to 2.74%59% efficiency ratio, compared to 63%0.21% non-performing asset ratio to total assets, compared to 0.37%President and Chief Executive Officer, Curtis C. Simard stated, "Our performance in the second quarter continues to reflect all the hard work everyone is doing across our Company. We increased net income per diluted share by 17%, which improved all of our performance metrics even without any benefit from PPP accretion. We delivered loan growth across all product offerings; Commercial loans, excluding PPP, grew 14% on annualized basis, driven both by existing and new customer growth. This strong loan growth in the first half of the year, along with rising rates, drove meaningful growth in net interest income and expansion in net interest margin. The quarter was also highlighted by solid, positive operating leverage which improved our efficiency ratio.""Wealth management income remained strong during the quarter. Assets under management decreased 9%, which is manageable compared to the 16% decline in the S&P 500 index for the same period. Net customer cash inflows were strong in the quarter. We completed the consolidation of our wealth platforms under the Bar Harbor Wealth Management brand during the quarter which delivers a simplified, comprehensive offering across our footprint. We've invested in continuous improvements in our financial planning capabilities, reflecting our deep, long-term care for our customers and their families.""Asset quality continues to remain strong as total nonperforming assets improved by $1.3 million to 0.21% of total assets and net charge-offs were essentially zero during the quarter. As the economic environment continues to evolve, we believe that our disciplined strategy to responsibly grow business lines where we possess specialized sector and underwriting expertise has resulted in almost no losses for the quarter. We remain committed to those relationships with proven operators. This has allowed us to maintain a superior credit risk profile in our commercial banking business."Mr. Simard further stated, "As we continue to grow profitably, we remain steadfast in our commitment to return capital to our shareholders. Last month, our Board of Directors authorized a stock repurchase plan for up to 5% of our common shares, which represents approximately 751,000 shares. No repurchases were made in the second quarter and we will continue to be opportunistic taking into consideration market conditions, including interest rate volatility and potential loan and risk-weighted asset growth. We grew tangible book value 6% excluding unrealized security losses, which are considered temporary in nature. And as of the June 30, 2022 stock price, our dividend yield is now over 4%. Given our already strong capital ratios and our organic growth rate, we continue to be well-positioned as we look to future growth."Mr. Simard concluded, "Our customers and communities have noticed our success as we further establish ourselves as the go-to banking institution in Northern New England. With that in mind, I am excited to share that in addition to being named one of America's Best Banks by Newsweek for 2022, we were recently recognized as one of America's Best Banks by Forbes Magazine. This type of recognition from such a renowned publication does not come easily. It is a testament to our teams' hard work every day. Looking forward into the second half of 2022, there are macroeconomic factors that remain uncertain. We believe having a strong balance sheet, robust pipelines, a sound mix of fee-based businesses, and a focus on expense management as we execute against our strategies will provide the foundation for continued success."DIVIDEND DECLAREDThe Board of Directors voted to declare a cash dividend of $0.26 per share to shareholders of record at the close of business on August 16, 2022 payable on September 16, 2022. This dividend equates to a 4.02% annualized yield based on the $25.86 closing price of the Company's common stock at the end of the second quarter of 2022.FINANCIAL CONDITIONLoans were $2.7 billion at the end of the second quarter. Excluding PPP loans, commercial loans increased $55.8 million from the end of the first quarter 2022 and included over 70 new customer relationships. Total residential loans increased $8.3 million from the end of the first quarter 2022, and included $18.3 million of originations on the balance sheet offset by prepayments and amortization.The allowance for credit losses was $23.8 million for the second quarter, compared to $23.2 million at the end of the first quarter 2022. A steadying economic forecast and disciplined approach to credit quality resulted in an allowance to total loans coverage ratio of 0.87% consistent with the end of the first quarter. The second quarter 2022 charged off loans resulted in a net recovery of $32 thousand compared to $95 thousand in the first quarter. Non-accruing loans for the second quarter 2022 decreased to $7.9 million from $9.2 million at the end of the first quarter. The ratio of accruing past due loans to total loans was 0.12% of total loans at the end of the second quarter from 0.25% at the end of the first quarter.Total deposits were $3.1 billion at the end of the second quarter 2022 compared to $3.0 billion at the end of the first quarter. Core deposits grew $60.8 million, or 9% on an annualized basis, during the quarter as nearly 840 net new customer accounts were opened. The loan to deposit ratio was 89% compared to 87% at the end of the first quarter 2022, the increase was due to outsized loan growth. Time deposits decreased $30.0 million during the quarter attributable to customers continuing to move funds to transactional accounts upon contractual maturity.The Company's book value per share was $26.19 at June 30, 2022, compared with $27.11 at the end of the first quarter. Tangible book value per share (non-GAAP measure) was $17.83 at the end of the second quarter 2022, compared to $18.72 at the end of the first quarter. Other comprehensive income included unrealized loss on securities totaling $38.3 million in the second quarter 2022 compared to $20.2 million at the end of the first quarter.RESULTS OF OPERATIONSNet income in the second quarter 2022 was $10.5 million, or $0.70 per diluted share, compared to $9.0 million, or $0.60 per diluted share, in the same quarter of 2021. Core earnings (non-GAAP) totaled $10.5 million or $0.70 per diluted share, compared to $9.4 million, or $0.63 per diluted share, in the same quarter of 2021. PPP income was $27 thousand compared to $1.1 million in the second quarter 2021.Net interest margin was 3.19% compared to 2.74% in the same period of 2021. Acceleration of PPP loan fee amortization due to forgiveness contributed 7 basis points in the second quarter 2021. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 5 basis points in the second quarter 2022 and 19 basis points in the second quarter 2021. The yield on earning assets totaled 3.46% compared to 3.26% in the second quarter 2021. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.51% and 3.44% for the same periods. The yield on loans was 3.71% in the second quarter 2022, and 3.70% in the second quarter of 2021. Excluding PPP loans the yield on loans was 3.71% in the second quarter of 2022 and 3.64% in the second quarter 2021. Costs of interest-bearing liabilities decreased to 0.36% from 0.66% in the second quarter 2021 due to lower deposit rates and less wholesale borrowings.The provision for credit losses for the quarter was $534 thousand, compared to a recapture of $765 thousand in the second quarter of 2021. The provision in the second quarter 2022 is attributable to loan growth offset in part by continued improvement in credit quality metrics.Non-interest income in the second quarter 2022 was $9.0 million, compared to $9.5 million in the same quarter of 2021. Customer service fees were $3.7 million in the second quarter compared to $3.3 million in the same period of 2021. The increase included over 800 net new accounts that were opened during the quarter and a higher volume of customer activity and transactions. Wealth management income was $3.8 million in the second quarter of 2022 and the second quarter of 2021 on strong cash inflows offset by market volatility effects on assets under management. Mortgage banking income was $488 thousand, compared to $1.5 million in the same period of 2021 reflecting higher on balance sheet activity and lower residential loan originations.Non-interest expense was $21.7 million in the second quarter 2022 and the same quarter of 2021 reflecting consistent and stable costs across most categories. The efficiency ratio in the second quarter 2022 was 59.25%, down from 63.45% in the second quarter 2021. Non-core expenses (non-GAAP) in the second quarter 2022 consisted of a $10 thousand loss on the sale of premises and equipment. In the same quarter of 2021, non-core expenses (non-GAAP) totaled $553 thousand were mostly a one-time reduction in workforce.BACKGROUNDBar 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 STATEMENTSCertain statements under the headings "SECOND QUARTER HIGHLIGHTS" 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, 2021 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 MEASURESThis 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.###CONTACTSJosephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEXCONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) SELECTEDFINANCIALHIGHLIGHTSUNAUDITED_350ASelected Financial HighlightsBBalance SheetsCLoan and Deposit AnalysisDStatements of IncomeEStatements of Income (Five Quarter Trend)FAverage Yields and CostsGAverage BalancesHAsset Quality AnalysisI-JReconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary DataBAR HARBOR BANKSHARES SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2022 2022 2021 2021 2021 PER SHARE DATA Net earnings, diluted $0.70 $0.60 $0.65 $0.73 $0.60 Core earnings, diluted (1) 0.70 0.62 0.68 0.73 0.63 Total book value 26.19 27.11 28.27 27.92 27.64 Tangible book value (1) 17.83 18.72 19.86 19.48 19.17 Market price at period end 25.86 28.62 28.93 28.05 28.62 Dividends 0.26 0.24 0.24 0.24 0.24 PERFORMANCE RATIOS (2) Return on assets 1.14% 1.00% 1.02% 1.16% 0.97%Core return on assets (1) 1.14 1.02 1.07 1.16 1.01 Pre-tax, pre-provision return on assets 1.50 1.28 1.26 1.43 1.13 Core pre-tax, pre-provision return on assets (1) 1.50 1.31 1.33 1.43 1.18 Return on equity 10.58 8.89 9.16 10.38 8.77 Core return on equity (1) 10.59 9.07 9.60 10.39 9.14 Return on tangible equity 15.74 13.01 13.30 15.08 12.91 Core return on tangible equity (1) 15.76 13.27 13.93 15.09 13.45 Net interest margin, fully taxable equivalent (FTE) (1) (3) 3.19 2.95 2.79 3.02 2.74 Core net interest margin (1) (4) 3.19 2.93 2.69 2.75 2.67 Efficiency ratio (1) 59.25 62.40 60.74 59.18 63.45 FINANCIAL DATA (In millions) Total assets $3,712 $3,692 $3,709 $3,738 $3,639 Total earning assets (5) 3,399 3,367 3,380 3,394 3,282 Total investments 593 611 626 556 636 Total loans 2,727 2,655 2,532 2,534 2,516 Allowance for credit losses 24 23 23 22 23 Total goodwill and intangible assets 126 126 126 126 127 Total deposits 3,079 3,048 3,049 3,007 2,822 Total shareholders' equity 394 407 424 418 414 Net income 11 9 10 11 9 Core earnings (1) 11 9 10 11 9 ASSET QUALITY AND CONDITION RATIOS Net (recoveries) charge-offs (current quarter annualized)/average loans (0.01)% (0.01)% -% 0.03% 0.01%Allowance for credit losses/total loans 0.87 0.87 0.90 0.89 0.91 Loans/deposits 89 87 83 84 89 Shareholders' equity to total assets 10.60 11.02 11.43 11.19 11.37 Tangible shareholders' equity to tangible assets 7.47 7.88 8.32 8.08 8.17 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in table I-J for additional information.(2) All performance ratios are based on average balance sheet amounts, where applicable.(3) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.(4) Core net interest margin excludes Paycheck Protection Program loans.(5) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Assets Cash and due from banks $40,834 $38,656 $33,508 $39,081 $41,440 Interest-earning deposits with other banks 26,282 72,393 216,881 302,118 132,278 Total cash and cash equivalents 67,116 111,049 250,389 341,199 173,718 Securities available for sale 586,142 603,910 618,276 545,327 621,849 Federal Home Loan Bank stock 6,572 7,384 7,384 10,192 14,145 Total securities 592,714 611,294 625,660 555,519 635,994 Loans held for sale 3,539 2,843 5,523 7,505 7,942 Total loans 2,727,274 2,654,562 2,531,910 2,534,154 2,515,560 Less: Allowance for credit losses (23,756) (23,190) (22,718) (22,448) (22,815)Net loans 2,703,518 2,631,372 2,509,192 2,511,706 2,492,745 Premises and equipment, net 48,350 48,891 49,382 50,070 51,119 Other real estate owned - - - - - Goodwill 119,477 119,477 119,477 119,477 119,477 Other intangible assets 6,267 6,500 6,733 6,966 7,198 Cash surrender value of bank-owned life insurance 80,262 79,861 79,020 79,380 78,886 Deferred tax asset, net 18,405 12,614 5,547 5,811 4,902 Other assets 72,596 68,169 58,310 60,712 67,064 Total assets $3,712,244 $3,692,070 $3,709,233 $3,738,345 $3,639,045 Liabilities and shareholders' equity Demand and other non-interest bearing deposits $670,268 $653,471 $664,420 $664,395 $599,598 NOW deposits 883,239 918,768 940,631 888,021 802,681 Savings deposits 663,676 658,834 628,670 605,977 578,361 Money market deposits 499,456 424,750 389,291 379,651 371,075 Time deposits 361,906 391,940 425,532 469,221 470,758 Total deposits 3,078,545 3,047,763 3,048,544 3,007,265 2,822,473 Senior borrowings 117,347 118,538 118,400 190,267 279,991 Subordinated borrowings 60,206 60,165 60,124 60,083 60,042 Total borrowings 177,553 178,703 178,524 250,350 340,033 Other liabilities 62,549 58,605 58,018 62,295 62,779 Total liabilities 3,318,647 3,285,071 3,285,086 3,319,910 3,225,285 Total shareholders' equity 393,597 406,999 424,147 418,435 413,760 Total liabilities and shareholders' equity $3,712,244 $3,692,070 $3,709,233 $3,738,345 $3,639,045 Net shares outstanding 15,026 15,013 15,001 14,987 14,972 BAR HARBOR BANKSHARES CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITEDLOAN ANALYSIS Annualized Growth % (in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Quarter to Date Year to Date Commercial real estate $1,331,860 $1,289,968 $1,210,580 $1,170,372 $1,135,857 13% 20%Commercial and industrial 360,304 346,394 340,129 331,091 327,729 16 12 Paycheck Protection Program (PPP) 170 1,126 6,669 24,227 65,918 * * Total commercial loans 1,692,334 1,637,488 1,557,378 1,525,690 1,529,504 13 17 Total commercial loans, excluding PPP 1,692,164 1,636,362 1,550,709 1,501,463 1,463,586 14 18 Residential real estate 876,644 868,382 821,004 849,692 822,774 4 14 Consumer 100,816 96,876 98,949 100,933 103,589 16 4 Tax exempt and other 57,480 51,816 54,579 57,839 59,693 44 11 Total loans $2,727,274 $2,654,562 $2,531,910 $2,534,154 $2,515,560 11% 15%DEPOSIT ANALYSIS Annualized Growth % (in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Quarter to Date Year to Date Demand $670,268 $653,471 $664,420 $664,395 $599,598 10% 2%NOW 883,239 918,768 940,631 888,021 802,681 (15) (12)Savings 663,676 658,834 628,670 605,977 578,361 3 11 Money market 499,456 424,750 389,291 379,651 371,075 70 57 Total non-maturity deposits 2,716,639 2,655,823 2,623,012 2,538,044 2,351,715 9 7 Total time deposits 361,906 391,940 425,532 469,221 470,758 (31) (30)Total deposits $3,078,545 $3,047,763 $3,048,544 $3,007,265 $2,822,473 4% 2%*Indicates ratios of 100% or greater.BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2022 2021 2022 2021 Interest and dividend income Loans $24,581 $23,191 $47,252 $47,396 Securities and other 4,207 3,992 8,033 7,971 Total interest and dividend income 28,788 27,183 55,285 55,367 Interest expense Deposits 1,195 2,603 2,384 5,554 Borrowings 1,074 1,826 2,084 3,637 Total interest expense 2,269 4,429 4,468 9,191 Net interest income 26,519 22,754 50,817 46,176 Provision for credit losses 534 (765) 911 (1,254)Net interest income after provision for credit losses 25,985 23,519 49,906 47,430 Non-interest income Trust and investment management fee income 3,829 3,801 7,583 7,467 Customer service fees 3,656 3,257 7,272 6,227 Gain on sales of securities, net - 50 9 50 Mortgage banking income 488 1,553 1,112 4,123 Bank-owned life insurance income 504 498 1,005 1,016 Customer derivative income 137 86 155 496 Other income 347 260 1,134 374 Total non-interest income 8,961 9,505 18,270 19,753 Non-interest expense Salaries and employee benefits 11,368 11,356 23,515 23,532 Occupancy and equipment 4,373 3,894 8,796 8,222 Loss (gain) on sales of premises and equipment, net 10 1 (65) 9 Outside services 410 533 750 965 Professional services 528 151 701 709 Communication 188 198 413 519 Marketing 369 534 632 824 Amortization of intangible assets 233 233 466 474 Loss on debt extinguishment - - - - Acquisition, conversion and other expenses - 552 325 1,441 Other expenses 4,221 4,272 8,053 7,520 Total non-interest expense 21,700 21,724 43,586 44,215 Income before income taxes 13,246 11,300 24,590 22,968 Income tax expense 2,743 2,275 4,975 4,463 Net income $10,503 $9,025 $19,615 $18,505 Earnings per share: Basic $0.70 $0.60 $1.31 $1.24 Diluted 0.70 0.60 1.30 1.23 Weighted average shares outstanding: Basic 15,018 14,965 15,014 14,950 Diluted 15,077 15,042 15,094 15,026 BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2022 2022 2021 2021 2021 Interest and dividend income Loans $24,581 $22,671 $22,746 $25,094 $23,191 Securities and other 4,207 3,826 3,776 3,821 3,992 Total interest and dividend income 28,788 26,497 26,522 28,915 27,183 Interest expense Deposits 1,195 1,189 1,434 1,555 2,603 Borrowings 1,074 1,010 1,273 1,778 1,826 Total interest expense 2,269 2,199 2,707 3,333 4,429 Net interest income 26,519 24,298 23,815 25,582 22,754 Provision for credit losses 534 377 126 (174) (765)Net interest income after provision for credit losses 25,985 23,921 23,689 25,756 23,519 Non-interest income Trust and investment management fee income 3,829 3,754 3,844 3,868 3,801 Customer service fees 3,656 3,616 3,470 3,515 3,257 Gain on sales of securities, net - 9 890 1,930 50 Mortgage banking income 488 624 1,563 850 1,553 Bank-owned life insurance income 504 501 669 494 498 Customer derivative income 137 18 173 341 86 Other income 347 787 549 352 260 Total non-interest income 8,961 9,309 11,158 11,350 9,505 Non-interest expense Salaries and employee benefits 11,368 12,147 11,842 11,743 11,356 Occupancy and equipment 4,373 4,423 4,105 4,029 3,894 Loss (gain) on sales of premises and equipment, net 10 (75) 515 (146) 1 Outside services 410 340 431 547 533 Professional services 528 173 556 491 151 Communication 188 225 205 188 198 Marketing 369 263 378 339 534 Amortization of intangible assets 233 233 233 233 233 Loss on debt extinguishment - - 1,083 1,768 - Acquisition, conversion and other expenses - 325 (92) 318 552 Other expenses 4,221 3,832 3,665 3,862 4,272 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Income before income taxes 13,246 11,344 11,926 13,734 11,300 Income tax expense 2,743 2,232 2,160 2,706 2,275 Net income $10,503 $9,112 $9,766 $11,028 $9,025 Earnings per share: Basic $0.70 $0.61 $0.65 $0.74 $0.60 Diluted 0.70 0.60 0.65 0.73 0.60 Weighted average shares outstanding: Basic 15,018 15,011 14,993 14,983 14,965 Diluted 15,077 15,102 15,075 15,051 15,042 BAR HARBOR BANKSHARES AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2022 2022 2021 2021 2021 Earning assets Interest-earning deposits with other banks 0.80% 0.16% 0.16% 0.15% 0.09%Securities available for sale and FHLB stock 2.69 2.55 2.66 2.59 2.66 Loans: Commercial real estate 3.82 3.50 3.40 3.53 3.54 Commercial and industrial 3.67 3.46 3.23 3.79 3.60 Paycheck protection program 13.99 26.49 26.25 23.28 5.56 Residential real estate 3.55 3.55 3.61 3.64 3.80 Consumer 3.82 3.51 3.49 3.78 3.44 Total loans 3.71 3.54 3.58 3.98 3.70 Total earning assets 3.46% 3.21% 3.10% 3.41% 3.26% Funding liabilities Deposits: NOW 0.14% 0.14% 0.14% 0.13% 0.12%Savings 0.08 0.09 0.08 0.08 0.10 Money market 0.19 0.12 0.12 0.12 0.12 Time deposits 0.58 0.62 0.77 0.88 1.37 Total interest-bearing deposits 0.20 0.20 0.24 0.27 0.45 Borrowings 2.41 2.29 2.17 2.11 2.12 Total interest-bearing liabilities 0.36% 0.35% 0.41% 0.50% 0.66% Net interest spread 3.10 2.86 2.69 2.91 2.60 Net interest margin 3.19 2.95 2.79 3.02 2.74 Core net interest margin (1) 3.19 2.93 2.69 2.75 2.67 (1) Core net interest margin (Non-GAAP) excludes Paycheck Protection Program loans.BAR HARBOR BANKSHARES AVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Assets Interest-earning deposits with other banks (1) $63,317 $140,383 $325,260 $284,429 $228,825 Securities available for sale and FHLB stock (2) 637,881 629,811 578,323 610,381 635,978 Loans: Commercial real estate 1,296,162 1,264,798 1,189,803 1,153,813 1,122,831 Commercial and industrial 412,518 393,759 386,156 391,191 378,634 Paycheck protection program 788 2,999 14,824 45,835 76,701 Residential real estate 863,172 856,252 844,872 824,686 850,119 Consumer 98,588 97,594 100,723 101,545 104,851 Total loans (3) 2,671,228 2,615,402 2,536,378 2,517,070 2,533,136 Total earning assets 3,372,426 3,385,596 3,439,961 3,411,880 3,397,939 Cash and due from banks 35,051 32,742 37,818 38,750 21,414 Allowance for credit losses (23,228) (23,256) (22,525) (22,607) (23,419)Goodwill and other intangible assets 126,090 126,090 126,324 126,556 126,789 Other assets 174,880 190,846 200,097 209,509 223,362 Total assets $3,685,219 $3,712,018 $3,781,675 $3,764,088 $3,746,085 Liabilities and shareholders' equity Deposits: NOW $893,239 $930,556 $913,326 $860,206 $781,836 Savings 657,047 640,672 620,599 591,440 568,193 Money market 457,088 414,130 395,341 381,755 368,826 Time deposits 375,782 406,730 450,559 471,934 619,454 Total interest-bearing deposits 2,383,156 2,392,088 2,379,825 2,305,335 2,338,309 Borrowings 178,519 178,958 232,492 334,097 345,896 Total interest-bearing liabilities 2,561,675 2,571,046 2,612,317 2,639,432 2,684,205 Non-interest-bearing demand deposits 661,412 660,717 684,895 641,769 591,982 Other liabilities 63,912 64,619 61,480 61,436 57,227 Total liabilities 3,286,999 3,296,382 3,358,692 3,342,637 3,333,414 Total shareholders' equity 398,220 415,636 422,983 421,451 412,671 Total liabilities and shareholders' equity $3,685,219 $3,712,018 $3,781,675 $3,764,088 $3,746,085 (1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.(2) Average balances for securities available-for-sale are based on amortized cost.(3) Total average loans include non-accruing loans and loans held for sale.BAR HARBOR BANKSHARES ASSET QUALITY ANALYSIS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $1,483 $1,633 $2,890 $3,646 $4,367 Commercial installment 632 905 1,056 1,163 1,370 Residential real estate 4,882 5,612 5,192 6,311 6,788 Consumer installment 881 1,063 1,053 1,087 1,054 Total non-accruing loans 7,878 9,213 10,191 12,207 13,579 Other real estate owned - - - - - Total non-performing assets $7,878 $9,213 $10,191 $12,207 $13,579 Total non-accruing loans/total loans 0.29% 0.35% 0.40% 0.48% 0.54%Total non-performing assets/total assets 0.21 0.25 0.27 0.33 0.37 PROVISION AND ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $23,190 $22,718 $22,448 $22,815 $23,653 Charged-off loans (62) (83) (154) (286) (239)Recoveries on charged-off loans 94 178 298 93 166 Net loans charged-off 32 95 144 (193) (73)Provision for credit losses 534 377 126 (174) (765)Balance at end of period $23,756 $23,190 $22,718 $22,448 $22,815 Allowance for credit losses/total loans 0.87% 0.87% 0.90% 0.89% 0.91%Allowance for credit losses/non-accruing loans 300 252 223 184 168 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $59 $54 $216 $(69) $(105)Commercial installment 12 25 53 (24) (7)Residential real estate 6 76 8 13 88 Consumer installment (45) (60) (133) (113) (49)Total, net $32 $95 $144 $(193) $(73) Net (recoveries) charge-offs (QTD annualized)/average loans -% (0.01)% (0.02)% 0.03% 0.01%Net (recoveries) charge-offs (YTD annualized)/average loans (0.01) (0.01) 0.01 0.02 0.02 DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS 30-89 Days delinquent 0.09% 0.22% 0.31% 0.09% 0.13%90+ Days delinquent and still accruing 0.03 0.03 0.01 0.02 0.02 Total accruing delinquent loans 0.12 0.25 0.32 0.12 0.15 Non-accruing loans 0.29 0.35 0.40 0.48 0.54 Total delinquent and non-accruing loans 0.41% 0.60% 0.72% 0.60% 0.69%BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Net income $10,503 $9,112 $9,766 $11,028 $9,025 Non-core items: Gain on sale of securities, net - (9) (890) (1,930) (50)Loss (gain) on sale of premises and equipment, net 10 (75) 515 (146) 1 Loss on debt extinguishment - - 1,083 1,768 - Acquisition, conversion and other expenses - 325 (92) 318 552 Income tax expense (1) (2) (56) (144) (2) (119)Total non-core items 8 185 472 8 384 Core earnings (2)(A) $10,511 $9,297 $10,238 $11,036 $9,409 Net interest income(B) $26,519 $24,298 $23,815 $25,582 $22,754 Non-interest income 8,961 9,309 11,158 11,350 9,505 Total Revenue 35,480 33,607 34,973 36,932 32,259 Gain on sale of securities, net - (9) (890) (1,930) (50)Total core revenue (2)(C) $35,480 $33,598 $34,083 $35,002 $32,209 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Non-core expenses: (Loss) gain on sale of premises and equipment, net (10) 75 (515) 146 (1)Loss on debt extinguishment - - (1,083) (1,768) - Acquisition, conversion and other expenses - (325) 92 (318) (552)Total non-core expenses (10) (250) (1,506) (1,940) (553)Core non-interest expense (2)(D) $21,690 $21,636 $21,415 $21,432 $21,171 Total revenue 35,480 33,607 34,973 36,932 32,259 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Pre-tax, pre-provision net revenue $13,780 $11,721 $12,052 $13,560 $10,535 Core revenue (2) 35,480 33,598 34,083 35,002 32,209 Core non-interest expense (2) 21,690 21,636 21,415 21,432 21,171 Core pre-tax, pre-provision net revenue (2)(U) $13,790 $11,962 $12,668 $13,570 $11,038 (in millions) Average earning assets(E) $3,372 $3,386 $3,440 $3,412 $3,398 Average paycheck protection program (PPP) loans(R) 1 3 15 46 77 Average earning assets, excluding PPP loans(S) 3,371 3,383 3,425 3,366 3,321 Average assets(F) 3,685 3,712 3,764 3,764 3,746 Average shareholders' equity(G) 398 416 423 421 413 Average tangible shareholders' equity (2) (3)(H) 272 290 297 295 286 Tangible shareholders' equity, period-end (2) (3)(I) 268 281 298 292 287 Tangible assets, period-end (2) (3)(J) 3,587 3,566 3,583 3,612 3,512 BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Common shares outstanding, period-end(K) 15,018 15,013 15,001 14,987 14,972 Average diluted shares outstanding(L) 15,077 15,102 15,075 15,051 15,042 Core earnings per share, diluted (2)(A/L) $0.70 $0.62 $0.68 $0.73 $0.63 Tangible book value per share, period-end (2)(I/K) 17.83 18.72 19.86 19.48 19.17 Securities adjustment, net of tax (1) (4)(M) (38,304) (20,225) 1,985 4,398 7,237 Tangible book value per share, excluding securities adjustment (2) (4)(I+M)/K 20.38 20.07 19.73 19.19 18.69 Tangible shareholders' equity/total tangible assets (2)(I/J) 7.47 7.88 8.32 8.08 8.17 Performance ratios (5) GAAP return on assets 1.14% 1.00% 1.02% 1.16% 0.97%Core return on assets (2)(A/F) 1.14 1.02 1.07 1.16 1.01 Pre-tax, pre-provision return on assets 1.50 1.28 1.26 1.43 1.13 Core pre-tax, pre-provision returnon assets (2)(U/F) 1.50 1.31 1.33 1.43 1.18 GAAP return on equity 10.58 8.89 9.16 10.38 8.77 Core return on equity (2)(A/G) 10.59 9.07 9.60 10.39 9.14 Return on tangible equity 15.74 13.01 13.30 15.08 12.91 Core return on tangible equity (1) (2)(A+Q)/H 15.76 13.27 13.93 15.09 13.45 Efficiency ratio (2) (6)(D-O-Q)/(C+N) 59.25 62.40 60.74 59.18 63.45 Net interest margin(B+P)/E 3.19 2.95 2.79 3.02 2.74 Core net interest margin (2) (7)(B+P-T)/S 3.19 2.93 2.69 2.75 2.67 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio(N) $491 $476 $573 $576 $586 Franchise taxes included in non-interest expense(O) 144 141 132 143 128 Tax equivalent adjustment for net interest margin(P) 334 320 369 421 430 Intangible amortization(Q) 233 233 233 233 233 Interest and fees on PPP loans(T) 27 196 981 2,690 1,064 (1) Assumes a marginal tax rate of 23.41% for the first and second quarter of 2022 and fourth quarter of 2021 and 23.71% for the first three quarters of 2021.(2) Non-GAAP financial measure.(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.(4) Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.(5) All performance ratios are based on average balance sheet amounts, where applicable.(6) Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.(7) Core net interest margin excludes Paycheck Protection Program loans.SOURCE: Bar Harbor Bank and TrustView source version on accesswire.com: https://www.accesswire.com/709307/Bar-Harbor-Bankshares-Reports-Second-Quarter-Results-Declares-Dividend Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Bar Harbor Bankshares Reports Second Quarter Results; Declares Dividend By: ACCESSWIRE July 21, 2022 at 16:15 PM EDT BAR HARBOR, ME / ACCESSWIRE / July 21, 2022 / Bar Harbor Bankshares (NYSE American:BHB) reported second quarter 2022 net income of $10.5 million or $0.70 per diluted share compared to $9.0 million or $0.60 per diluted share in the same quarter of 2021. Earnings per share in the prior year quarter included a $0.05 benefit from Paycheck Protection Program (PPP) loans offset by $0.03 of non-core items (non-GAAP).SECOND QUARTER HIGHLIGHTS (ratios compared to the second quarter 2021)1.14% return on assets, compared to 0.97%11% annualized loan growth9% annualized core deposit growth3.19% net interest margin, compared to 2.74%59% efficiency ratio, compared to 63%0.21% non-performing asset ratio to total assets, compared to 0.37%President and Chief Executive Officer, Curtis C. Simard stated, "Our performance in the second quarter continues to reflect all the hard work everyone is doing across our Company. We increased net income per diluted share by 17%, which improved all of our performance metrics even without any benefit from PPP accretion. We delivered loan growth across all product offerings; Commercial loans, excluding PPP, grew 14% on annualized basis, driven both by existing and new customer growth. This strong loan growth in the first half of the year, along with rising rates, drove meaningful growth in net interest income and expansion in net interest margin. The quarter was also highlighted by solid, positive operating leverage which improved our efficiency ratio.""Wealth management income remained strong during the quarter. Assets under management decreased 9%, which is manageable compared to the 16% decline in the S&P 500 index for the same period. Net customer cash inflows were strong in the quarter. We completed the consolidation of our wealth platforms under the Bar Harbor Wealth Management brand during the quarter which delivers a simplified, comprehensive offering across our footprint. We've invested in continuous improvements in our financial planning capabilities, reflecting our deep, long-term care for our customers and their families.""Asset quality continues to remain strong as total nonperforming assets improved by $1.3 million to 0.21% of total assets and net charge-offs were essentially zero during the quarter. As the economic environment continues to evolve, we believe that our disciplined strategy to responsibly grow business lines where we possess specialized sector and underwriting expertise has resulted in almost no losses for the quarter. We remain committed to those relationships with proven operators. This has allowed us to maintain a superior credit risk profile in our commercial banking business."Mr. Simard further stated, "As we continue to grow profitably, we remain steadfast in our commitment to return capital to our shareholders. Last month, our Board of Directors authorized a stock repurchase plan for up to 5% of our common shares, which represents approximately 751,000 shares. No repurchases were made in the second quarter and we will continue to be opportunistic taking into consideration market conditions, including interest rate volatility and potential loan and risk-weighted asset growth. We grew tangible book value 6% excluding unrealized security losses, which are considered temporary in nature. And as of the June 30, 2022 stock price, our dividend yield is now over 4%. Given our already strong capital ratios and our organic growth rate, we continue to be well-positioned as we look to future growth."Mr. Simard concluded, "Our customers and communities have noticed our success as we further establish ourselves as the go-to banking institution in Northern New England. With that in mind, I am excited to share that in addition to being named one of America's Best Banks by Newsweek for 2022, we were recently recognized as one of America's Best Banks by Forbes Magazine. This type of recognition from such a renowned publication does not come easily. It is a testament to our teams' hard work every day. Looking forward into the second half of 2022, there are macroeconomic factors that remain uncertain. We believe having a strong balance sheet, robust pipelines, a sound mix of fee-based businesses, and a focus on expense management as we execute against our strategies will provide the foundation for continued success."DIVIDEND DECLAREDThe Board of Directors voted to declare a cash dividend of $0.26 per share to shareholders of record at the close of business on August 16, 2022 payable on September 16, 2022. This dividend equates to a 4.02% annualized yield based on the $25.86 closing price of the Company's common stock at the end of the second quarter of 2022.FINANCIAL CONDITIONLoans were $2.7 billion at the end of the second quarter. Excluding PPP loans, commercial loans increased $55.8 million from the end of the first quarter 2022 and included over 70 new customer relationships. Total residential loans increased $8.3 million from the end of the first quarter 2022, and included $18.3 million of originations on the balance sheet offset by prepayments and amortization.The allowance for credit losses was $23.8 million for the second quarter, compared to $23.2 million at the end of the first quarter 2022. A steadying economic forecast and disciplined approach to credit quality resulted in an allowance to total loans coverage ratio of 0.87% consistent with the end of the first quarter. The second quarter 2022 charged off loans resulted in a net recovery of $32 thousand compared to $95 thousand in the first quarter. Non-accruing loans for the second quarter 2022 decreased to $7.9 million from $9.2 million at the end of the first quarter. The ratio of accruing past due loans to total loans was 0.12% of total loans at the end of the second quarter from 0.25% at the end of the first quarter.Total deposits were $3.1 billion at the end of the second quarter 2022 compared to $3.0 billion at the end of the first quarter. Core deposits grew $60.8 million, or 9% on an annualized basis, during the quarter as nearly 840 net new customer accounts were opened. The loan to deposit ratio was 89% compared to 87% at the end of the first quarter 2022, the increase was due to outsized loan growth. Time deposits decreased $30.0 million during the quarter attributable to customers continuing to move funds to transactional accounts upon contractual maturity.The Company's book value per share was $26.19 at June 30, 2022, compared with $27.11 at the end of the first quarter. Tangible book value per share (non-GAAP measure) was $17.83 at the end of the second quarter 2022, compared to $18.72 at the end of the first quarter. Other comprehensive income included unrealized loss on securities totaling $38.3 million in the second quarter 2022 compared to $20.2 million at the end of the first quarter.RESULTS OF OPERATIONSNet income in the second quarter 2022 was $10.5 million, or $0.70 per diluted share, compared to $9.0 million, or $0.60 per diluted share, in the same quarter of 2021. Core earnings (non-GAAP) totaled $10.5 million or $0.70 per diluted share, compared to $9.4 million, or $0.63 per diluted share, in the same quarter of 2021. PPP income was $27 thousand compared to $1.1 million in the second quarter 2021.Net interest margin was 3.19% compared to 2.74% in the same period of 2021. Acceleration of PPP loan fee amortization due to forgiveness contributed 7 basis points in the second quarter 2021. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 5 basis points in the second quarter 2022 and 19 basis points in the second quarter 2021. The yield on earning assets totaled 3.46% compared to 3.26% in the second quarter 2021. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.51% and 3.44% for the same periods. The yield on loans was 3.71% in the second quarter 2022, and 3.70% in the second quarter of 2021. Excluding PPP loans the yield on loans was 3.71% in the second quarter of 2022 and 3.64% in the second quarter 2021. Costs of interest-bearing liabilities decreased to 0.36% from 0.66% in the second quarter 2021 due to lower deposit rates and less wholesale borrowings.The provision for credit losses for the quarter was $534 thousand, compared to a recapture of $765 thousand in the second quarter of 2021. The provision in the second quarter 2022 is attributable to loan growth offset in part by continued improvement in credit quality metrics.Non-interest income in the second quarter 2022 was $9.0 million, compared to $9.5 million in the same quarter of 2021. Customer service fees were $3.7 million in the second quarter compared to $3.3 million in the same period of 2021. The increase included over 800 net new accounts that were opened during the quarter and a higher volume of customer activity and transactions. Wealth management income was $3.8 million in the second quarter of 2022 and the second quarter of 2021 on strong cash inflows offset by market volatility effects on assets under management. Mortgage banking income was $488 thousand, compared to $1.5 million in the same period of 2021 reflecting higher on balance sheet activity and lower residential loan originations.Non-interest expense was $21.7 million in the second quarter 2022 and the same quarter of 2021 reflecting consistent and stable costs across most categories. The efficiency ratio in the second quarter 2022 was 59.25%, down from 63.45% in the second quarter 2021. Non-core expenses (non-GAAP) in the second quarter 2022 consisted of a $10 thousand loss on the sale of premises and equipment. In the same quarter of 2021, non-core expenses (non-GAAP) totaled $553 thousand were mostly a one-time reduction in workforce.BACKGROUNDBar 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 STATEMENTSCertain statements under the headings "SECOND QUARTER HIGHLIGHTS" 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, 2021 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 MEASURESThis 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.###CONTACTSJosephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEXCONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) SELECTEDFINANCIALHIGHLIGHTSUNAUDITED_350ASelected Financial HighlightsBBalance SheetsCLoan and Deposit AnalysisDStatements of IncomeEStatements of Income (Five Quarter Trend)FAverage Yields and CostsGAverage BalancesHAsset Quality AnalysisI-JReconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary DataBAR HARBOR BANKSHARES SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2022 2022 2021 2021 2021 PER SHARE DATA Net earnings, diluted $0.70 $0.60 $0.65 $0.73 $0.60 Core earnings, diluted (1) 0.70 0.62 0.68 0.73 0.63 Total book value 26.19 27.11 28.27 27.92 27.64 Tangible book value (1) 17.83 18.72 19.86 19.48 19.17 Market price at period end 25.86 28.62 28.93 28.05 28.62 Dividends 0.26 0.24 0.24 0.24 0.24 PERFORMANCE RATIOS (2) Return on assets 1.14% 1.00% 1.02% 1.16% 0.97%Core return on assets (1) 1.14 1.02 1.07 1.16 1.01 Pre-tax, pre-provision return on assets 1.50 1.28 1.26 1.43 1.13 Core pre-tax, pre-provision return on assets (1) 1.50 1.31 1.33 1.43 1.18 Return on equity 10.58 8.89 9.16 10.38 8.77 Core return on equity (1) 10.59 9.07 9.60 10.39 9.14 Return on tangible equity 15.74 13.01 13.30 15.08 12.91 Core return on tangible equity (1) 15.76 13.27 13.93 15.09 13.45 Net interest margin, fully taxable equivalent (FTE) (1) (3) 3.19 2.95 2.79 3.02 2.74 Core net interest margin (1) (4) 3.19 2.93 2.69 2.75 2.67 Efficiency ratio (1) 59.25 62.40 60.74 59.18 63.45 FINANCIAL DATA (In millions) Total assets $3,712 $3,692 $3,709 $3,738 $3,639 Total earning assets (5) 3,399 3,367 3,380 3,394 3,282 Total investments 593 611 626 556 636 Total loans 2,727 2,655 2,532 2,534 2,516 Allowance for credit losses 24 23 23 22 23 Total goodwill and intangible assets 126 126 126 126 127 Total deposits 3,079 3,048 3,049 3,007 2,822 Total shareholders' equity 394 407 424 418 414 Net income 11 9 10 11 9 Core earnings (1) 11 9 10 11 9 ASSET QUALITY AND CONDITION RATIOS Net (recoveries) charge-offs (current quarter annualized)/average loans (0.01)% (0.01)% -% 0.03% 0.01%Allowance for credit losses/total loans 0.87 0.87 0.90 0.89 0.91 Loans/deposits 89 87 83 84 89 Shareholders' equity to total assets 10.60 11.02 11.43 11.19 11.37 Tangible shareholders' equity to tangible assets 7.47 7.88 8.32 8.08 8.17 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in table I-J for additional information.(2) All performance ratios are based on average balance sheet amounts, where applicable.(3) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.(4) Core net interest margin excludes Paycheck Protection Program loans.(5) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Assets Cash and due from banks $40,834 $38,656 $33,508 $39,081 $41,440 Interest-earning deposits with other banks 26,282 72,393 216,881 302,118 132,278 Total cash and cash equivalents 67,116 111,049 250,389 341,199 173,718 Securities available for sale 586,142 603,910 618,276 545,327 621,849 Federal Home Loan Bank stock 6,572 7,384 7,384 10,192 14,145 Total securities 592,714 611,294 625,660 555,519 635,994 Loans held for sale 3,539 2,843 5,523 7,505 7,942 Total loans 2,727,274 2,654,562 2,531,910 2,534,154 2,515,560 Less: Allowance for credit losses (23,756) (23,190) (22,718) (22,448) (22,815)Net loans 2,703,518 2,631,372 2,509,192 2,511,706 2,492,745 Premises and equipment, net 48,350 48,891 49,382 50,070 51,119 Other real estate owned - - - - - Goodwill 119,477 119,477 119,477 119,477 119,477 Other intangible assets 6,267 6,500 6,733 6,966 7,198 Cash surrender value of bank-owned life insurance 80,262 79,861 79,020 79,380 78,886 Deferred tax asset, net 18,405 12,614 5,547 5,811 4,902 Other assets 72,596 68,169 58,310 60,712 67,064 Total assets $3,712,244 $3,692,070 $3,709,233 $3,738,345 $3,639,045 Liabilities and shareholders' equity Demand and other non-interest bearing deposits $670,268 $653,471 $664,420 $664,395 $599,598 NOW deposits 883,239 918,768 940,631 888,021 802,681 Savings deposits 663,676 658,834 628,670 605,977 578,361 Money market deposits 499,456 424,750 389,291 379,651 371,075 Time deposits 361,906 391,940 425,532 469,221 470,758 Total deposits 3,078,545 3,047,763 3,048,544 3,007,265 2,822,473 Senior borrowings 117,347 118,538 118,400 190,267 279,991 Subordinated borrowings 60,206 60,165 60,124 60,083 60,042 Total borrowings 177,553 178,703 178,524 250,350 340,033 Other liabilities 62,549 58,605 58,018 62,295 62,779 Total liabilities 3,318,647 3,285,071 3,285,086 3,319,910 3,225,285 Total shareholders' equity 393,597 406,999 424,147 418,435 413,760 Total liabilities and shareholders' equity $3,712,244 $3,692,070 $3,709,233 $3,738,345 $3,639,045 Net shares outstanding 15,026 15,013 15,001 14,987 14,972 BAR HARBOR BANKSHARES CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITEDLOAN ANALYSIS Annualized Growth % (in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Quarter to Date Year to Date Commercial real estate $1,331,860 $1,289,968 $1,210,580 $1,170,372 $1,135,857 13% 20%Commercial and industrial 360,304 346,394 340,129 331,091 327,729 16 12 Paycheck Protection Program (PPP) 170 1,126 6,669 24,227 65,918 * * Total commercial loans 1,692,334 1,637,488 1,557,378 1,525,690 1,529,504 13 17 Total commercial loans, excluding PPP 1,692,164 1,636,362 1,550,709 1,501,463 1,463,586 14 18 Residential real estate 876,644 868,382 821,004 849,692 822,774 4 14 Consumer 100,816 96,876 98,949 100,933 103,589 16 4 Tax exempt and other 57,480 51,816 54,579 57,839 59,693 44 11 Total loans $2,727,274 $2,654,562 $2,531,910 $2,534,154 $2,515,560 11% 15%DEPOSIT ANALYSIS Annualized Growth % (in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Quarter to Date Year to Date Demand $670,268 $653,471 $664,420 $664,395 $599,598 10% 2%NOW 883,239 918,768 940,631 888,021 802,681 (15) (12)Savings 663,676 658,834 628,670 605,977 578,361 3 11 Money market 499,456 424,750 389,291 379,651 371,075 70 57 Total non-maturity deposits 2,716,639 2,655,823 2,623,012 2,538,044 2,351,715 9 7 Total time deposits 361,906 391,940 425,532 469,221 470,758 (31) (30)Total deposits $3,078,545 $3,047,763 $3,048,544 $3,007,265 $2,822,473 4% 2%*Indicates ratios of 100% or greater.BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2022 2021 2022 2021 Interest and dividend income Loans $24,581 $23,191 $47,252 $47,396 Securities and other 4,207 3,992 8,033 7,971 Total interest and dividend income 28,788 27,183 55,285 55,367 Interest expense Deposits 1,195 2,603 2,384 5,554 Borrowings 1,074 1,826 2,084 3,637 Total interest expense 2,269 4,429 4,468 9,191 Net interest income 26,519 22,754 50,817 46,176 Provision for credit losses 534 (765) 911 (1,254)Net interest income after provision for credit losses 25,985 23,519 49,906 47,430 Non-interest income Trust and investment management fee income 3,829 3,801 7,583 7,467 Customer service fees 3,656 3,257 7,272 6,227 Gain on sales of securities, net - 50 9 50 Mortgage banking income 488 1,553 1,112 4,123 Bank-owned life insurance income 504 498 1,005 1,016 Customer derivative income 137 86 155 496 Other income 347 260 1,134 374 Total non-interest income 8,961 9,505 18,270 19,753 Non-interest expense Salaries and employee benefits 11,368 11,356 23,515 23,532 Occupancy and equipment 4,373 3,894 8,796 8,222 Loss (gain) on sales of premises and equipment, net 10 1 (65) 9 Outside services 410 533 750 965 Professional services 528 151 701 709 Communication 188 198 413 519 Marketing 369 534 632 824 Amortization of intangible assets 233 233 466 474 Loss on debt extinguishment - - - - Acquisition, conversion and other expenses - 552 325 1,441 Other expenses 4,221 4,272 8,053 7,520 Total non-interest expense 21,700 21,724 43,586 44,215 Income before income taxes 13,246 11,300 24,590 22,968 Income tax expense 2,743 2,275 4,975 4,463 Net income $10,503 $9,025 $19,615 $18,505 Earnings per share: Basic $0.70 $0.60 $1.31 $1.24 Diluted 0.70 0.60 1.30 1.23 Weighted average shares outstanding: Basic 15,018 14,965 15,014 14,950 Diluted 15,077 15,042 15,094 15,026 BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2022 2022 2021 2021 2021 Interest and dividend income Loans $24,581 $22,671 $22,746 $25,094 $23,191 Securities and other 4,207 3,826 3,776 3,821 3,992 Total interest and dividend income 28,788 26,497 26,522 28,915 27,183 Interest expense Deposits 1,195 1,189 1,434 1,555 2,603 Borrowings 1,074 1,010 1,273 1,778 1,826 Total interest expense 2,269 2,199 2,707 3,333 4,429 Net interest income 26,519 24,298 23,815 25,582 22,754 Provision for credit losses 534 377 126 (174) (765)Net interest income after provision for credit losses 25,985 23,921 23,689 25,756 23,519 Non-interest income Trust and investment management fee income 3,829 3,754 3,844 3,868 3,801 Customer service fees 3,656 3,616 3,470 3,515 3,257 Gain on sales of securities, net - 9 890 1,930 50 Mortgage banking income 488 624 1,563 850 1,553 Bank-owned life insurance income 504 501 669 494 498 Customer derivative income 137 18 173 341 86 Other income 347 787 549 352 260 Total non-interest income 8,961 9,309 11,158 11,350 9,505 Non-interest expense Salaries and employee benefits 11,368 12,147 11,842 11,743 11,356 Occupancy and equipment 4,373 4,423 4,105 4,029 3,894 Loss (gain) on sales of premises and equipment, net 10 (75) 515 (146) 1 Outside services 410 340 431 547 533 Professional services 528 173 556 491 151 Communication 188 225 205 188 198 Marketing 369 263 378 339 534 Amortization of intangible assets 233 233 233 233 233 Loss on debt extinguishment - - 1,083 1,768 - Acquisition, conversion and other expenses - 325 (92) 318 552 Other expenses 4,221 3,832 3,665 3,862 4,272 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Income before income taxes 13,246 11,344 11,926 13,734 11,300 Income tax expense 2,743 2,232 2,160 2,706 2,275 Net income $10,503 $9,112 $9,766 $11,028 $9,025 Earnings per share: Basic $0.70 $0.61 $0.65 $0.74 $0.60 Diluted 0.70 0.60 0.65 0.73 0.60 Weighted average shares outstanding: Basic 15,018 15,011 14,993 14,983 14,965 Diluted 15,077 15,102 15,075 15,051 15,042 BAR HARBOR BANKSHARES AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2022 2022 2021 2021 2021 Earning assets Interest-earning deposits with other banks 0.80% 0.16% 0.16% 0.15% 0.09%Securities available for sale and FHLB stock 2.69 2.55 2.66 2.59 2.66 Loans: Commercial real estate 3.82 3.50 3.40 3.53 3.54 Commercial and industrial 3.67 3.46 3.23 3.79 3.60 Paycheck protection program 13.99 26.49 26.25 23.28 5.56 Residential real estate 3.55 3.55 3.61 3.64 3.80 Consumer 3.82 3.51 3.49 3.78 3.44 Total loans 3.71 3.54 3.58 3.98 3.70 Total earning assets 3.46% 3.21% 3.10% 3.41% 3.26% Funding liabilities Deposits: NOW 0.14% 0.14% 0.14% 0.13% 0.12%Savings 0.08 0.09 0.08 0.08 0.10 Money market 0.19 0.12 0.12 0.12 0.12 Time deposits 0.58 0.62 0.77 0.88 1.37 Total interest-bearing deposits 0.20 0.20 0.24 0.27 0.45 Borrowings 2.41 2.29 2.17 2.11 2.12 Total interest-bearing liabilities 0.36% 0.35% 0.41% 0.50% 0.66% Net interest spread 3.10 2.86 2.69 2.91 2.60 Net interest margin 3.19 2.95 2.79 3.02 2.74 Core net interest margin (1) 3.19 2.93 2.69 2.75 2.67 (1) Core net interest margin (Non-GAAP) excludes Paycheck Protection Program loans.BAR HARBOR BANKSHARES AVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Assets Interest-earning deposits with other banks (1) $63,317 $140,383 $325,260 $284,429 $228,825 Securities available for sale and FHLB stock (2) 637,881 629,811 578,323 610,381 635,978 Loans: Commercial real estate 1,296,162 1,264,798 1,189,803 1,153,813 1,122,831 Commercial and industrial 412,518 393,759 386,156 391,191 378,634 Paycheck protection program 788 2,999 14,824 45,835 76,701 Residential real estate 863,172 856,252 844,872 824,686 850,119 Consumer 98,588 97,594 100,723 101,545 104,851 Total loans (3) 2,671,228 2,615,402 2,536,378 2,517,070 2,533,136 Total earning assets 3,372,426 3,385,596 3,439,961 3,411,880 3,397,939 Cash and due from banks 35,051 32,742 37,818 38,750 21,414 Allowance for credit losses (23,228) (23,256) (22,525) (22,607) (23,419)Goodwill and other intangible assets 126,090 126,090 126,324 126,556 126,789 Other assets 174,880 190,846 200,097 209,509 223,362 Total assets $3,685,219 $3,712,018 $3,781,675 $3,764,088 $3,746,085 Liabilities and shareholders' equity Deposits: NOW $893,239 $930,556 $913,326 $860,206 $781,836 Savings 657,047 640,672 620,599 591,440 568,193 Money market 457,088 414,130 395,341 381,755 368,826 Time deposits 375,782 406,730 450,559 471,934 619,454 Total interest-bearing deposits 2,383,156 2,392,088 2,379,825 2,305,335 2,338,309 Borrowings 178,519 178,958 232,492 334,097 345,896 Total interest-bearing liabilities 2,561,675 2,571,046 2,612,317 2,639,432 2,684,205 Non-interest-bearing demand deposits 661,412 660,717 684,895 641,769 591,982 Other liabilities 63,912 64,619 61,480 61,436 57,227 Total liabilities 3,286,999 3,296,382 3,358,692 3,342,637 3,333,414 Total shareholders' equity 398,220 415,636 422,983 421,451 412,671 Total liabilities and shareholders' equity $3,685,219 $3,712,018 $3,781,675 $3,764,088 $3,746,085 (1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.(2) Average balances for securities available-for-sale are based on amortized cost.(3) Total average loans include non-accruing loans and loans held for sale.BAR HARBOR BANKSHARES ASSET QUALITY ANALYSIS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $1,483 $1,633 $2,890 $3,646 $4,367 Commercial installment 632 905 1,056 1,163 1,370 Residential real estate 4,882 5,612 5,192 6,311 6,788 Consumer installment 881 1,063 1,053 1,087 1,054 Total non-accruing loans 7,878 9,213 10,191 12,207 13,579 Other real estate owned - - - - - Total non-performing assets $7,878 $9,213 $10,191 $12,207 $13,579 Total non-accruing loans/total loans 0.29% 0.35% 0.40% 0.48% 0.54%Total non-performing assets/total assets 0.21 0.25 0.27 0.33 0.37 PROVISION AND ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $23,190 $22,718 $22,448 $22,815 $23,653 Charged-off loans (62) (83) (154) (286) (239)Recoveries on charged-off loans 94 178 298 93 166 Net loans charged-off 32 95 144 (193) (73)Provision for credit losses 534 377 126 (174) (765)Balance at end of period $23,756 $23,190 $22,718 $22,448 $22,815 Allowance for credit losses/total loans 0.87% 0.87% 0.90% 0.89% 0.91%Allowance for credit losses/non-accruing loans 300 252 223 184 168 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $59 $54 $216 $(69) $(105)Commercial installment 12 25 53 (24) (7)Residential real estate 6 76 8 13 88 Consumer installment (45) (60) (133) (113) (49)Total, net $32 $95 $144 $(193) $(73) Net (recoveries) charge-offs (QTD annualized)/average loans -% (0.01)% (0.02)% 0.03% 0.01%Net (recoveries) charge-offs (YTD annualized)/average loans (0.01) (0.01) 0.01 0.02 0.02 DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS 30-89 Days delinquent 0.09% 0.22% 0.31% 0.09% 0.13%90+ Days delinquent and still accruing 0.03 0.03 0.01 0.02 0.02 Total accruing delinquent loans 0.12 0.25 0.32 0.12 0.15 Non-accruing loans 0.29 0.35 0.40 0.48 0.54 Total delinquent and non-accruing loans 0.41% 0.60% 0.72% 0.60% 0.69%BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Net income $10,503 $9,112 $9,766 $11,028 $9,025 Non-core items: Gain on sale of securities, net - (9) (890) (1,930) (50)Loss (gain) on sale of premises and equipment, net 10 (75) 515 (146) 1 Loss on debt extinguishment - - 1,083 1,768 - Acquisition, conversion and other expenses - 325 (92) 318 552 Income tax expense (1) (2) (56) (144) (2) (119)Total non-core items 8 185 472 8 384 Core earnings (2)(A) $10,511 $9,297 $10,238 $11,036 $9,409 Net interest income(B) $26,519 $24,298 $23,815 $25,582 $22,754 Non-interest income 8,961 9,309 11,158 11,350 9,505 Total Revenue 35,480 33,607 34,973 36,932 32,259 Gain on sale of securities, net - (9) (890) (1,930) (50)Total core revenue (2)(C) $35,480 $33,598 $34,083 $35,002 $32,209 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Non-core expenses: (Loss) gain on sale of premises and equipment, net (10) 75 (515) 146 (1)Loss on debt extinguishment - - (1,083) (1,768) - Acquisition, conversion and other expenses - (325) 92 (318) (552)Total non-core expenses (10) (250) (1,506) (1,940) (553)Core non-interest expense (2)(D) $21,690 $21,636 $21,415 $21,432 $21,171 Total revenue 35,480 33,607 34,973 36,932 32,259 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Pre-tax, pre-provision net revenue $13,780 $11,721 $12,052 $13,560 $10,535 Core revenue (2) 35,480 33,598 34,083 35,002 32,209 Core non-interest expense (2) 21,690 21,636 21,415 21,432 21,171 Core pre-tax, pre-provision net revenue (2)(U) $13,790 $11,962 $12,668 $13,570 $11,038 (in millions) Average earning assets(E) $3,372 $3,386 $3,440 $3,412 $3,398 Average paycheck protection program (PPP) loans(R) 1 3 15 46 77 Average earning assets, excluding PPP loans(S) 3,371 3,383 3,425 3,366 3,321 Average assets(F) 3,685 3,712 3,764 3,764 3,746 Average shareholders' equity(G) 398 416 423 421 413 Average tangible shareholders' equity (2) (3)(H) 272 290 297 295 286 Tangible shareholders' equity, period-end (2) (3)(I) 268 281 298 292 287 Tangible assets, period-end (2) (3)(J) 3,587 3,566 3,583 3,612 3,512 BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Common shares outstanding, period-end(K) 15,018 15,013 15,001 14,987 14,972 Average diluted shares outstanding(L) 15,077 15,102 15,075 15,051 15,042 Core earnings per share, diluted (2)(A/L) $0.70 $0.62 $0.68 $0.73 $0.63 Tangible book value per share, period-end (2)(I/K) 17.83 18.72 19.86 19.48 19.17 Securities adjustment, net of tax (1) (4)(M) (38,304) (20,225) 1,985 4,398 7,237 Tangible book value per share, excluding securities adjustment (2) (4)(I+M)/K 20.38 20.07 19.73 19.19 18.69 Tangible shareholders' equity/total tangible assets (2)(I/J) 7.47 7.88 8.32 8.08 8.17 Performance ratios (5) GAAP return on assets 1.14% 1.00% 1.02% 1.16% 0.97%Core return on assets (2)(A/F) 1.14 1.02 1.07 1.16 1.01 Pre-tax, pre-provision return on assets 1.50 1.28 1.26 1.43 1.13 Core pre-tax, pre-provision returnon assets (2)(U/F) 1.50 1.31 1.33 1.43 1.18 GAAP return on equity 10.58 8.89 9.16 10.38 8.77 Core return on equity (2)(A/G) 10.59 9.07 9.60 10.39 9.14 Return on tangible equity 15.74 13.01 13.30 15.08 12.91 Core return on tangible equity (1) (2)(A+Q)/H 15.76 13.27 13.93 15.09 13.45 Efficiency ratio (2) (6)(D-O-Q)/(C+N) 59.25 62.40 60.74 59.18 63.45 Net interest margin(B+P)/E 3.19 2.95 2.79 3.02 2.74 Core net interest margin (2) (7)(B+P-T)/S 3.19 2.93 2.69 2.75 2.67 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio(N) $491 $476 $573 $576 $586 Franchise taxes included in non-interest expense(O) 144 141 132 143 128 Tax equivalent adjustment for net interest margin(P) 334 320 369 421 430 Intangible amortization(Q) 233 233 233 233 233 Interest and fees on PPP loans(T) 27 196 981 2,690 1,064 (1) Assumes a marginal tax rate of 23.41% for the first and second quarter of 2022 and fourth quarter of 2021 and 23.71% for the first three quarters of 2021.(2) Non-GAAP financial measure.(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.(4) Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.(5) All performance ratios are based on average balance sheet amounts, where applicable.(6) Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.(7) Core net interest margin excludes Paycheck Protection Program loans.SOURCE: Bar Harbor Bank and TrustView source version on accesswire.com: https://www.accesswire.com/709307/Bar-Harbor-Bankshares-Reports-Second-Quarter-Results-Declares-Dividend
BAR HARBOR, ME / ACCESSWIRE / July 21, 2022 / Bar Harbor Bankshares (NYSE American:BHB) reported second quarter 2022 net income of $10.5 million or $0.70 per diluted share compared to $9.0 million or $0.60 per diluted share in the same quarter of 2021. Earnings per share in the prior year quarter included a $0.05 benefit from Paycheck Protection Program (PPP) loans offset by $0.03 of non-core items (non-GAAP).SECOND QUARTER HIGHLIGHTS (ratios compared to the second quarter 2021)1.14% return on assets, compared to 0.97%11% annualized loan growth9% annualized core deposit growth3.19% net interest margin, compared to 2.74%59% efficiency ratio, compared to 63%0.21% non-performing asset ratio to total assets, compared to 0.37%President and Chief Executive Officer, Curtis C. Simard stated, "Our performance in the second quarter continues to reflect all the hard work everyone is doing across our Company. We increased net income per diluted share by 17%, which improved all of our performance metrics even without any benefit from PPP accretion. We delivered loan growth across all product offerings; Commercial loans, excluding PPP, grew 14% on annualized basis, driven both by existing and new customer growth. This strong loan growth in the first half of the year, along with rising rates, drove meaningful growth in net interest income and expansion in net interest margin. The quarter was also highlighted by solid, positive operating leverage which improved our efficiency ratio.""Wealth management income remained strong during the quarter. Assets under management decreased 9%, which is manageable compared to the 16% decline in the S&P 500 index for the same period. Net customer cash inflows were strong in the quarter. We completed the consolidation of our wealth platforms under the Bar Harbor Wealth Management brand during the quarter which delivers a simplified, comprehensive offering across our footprint. We've invested in continuous improvements in our financial planning capabilities, reflecting our deep, long-term care for our customers and their families.""Asset quality continues to remain strong as total nonperforming assets improved by $1.3 million to 0.21% of total assets and net charge-offs were essentially zero during the quarter. As the economic environment continues to evolve, we believe that our disciplined strategy to responsibly grow business lines where we possess specialized sector and underwriting expertise has resulted in almost no losses for the quarter. We remain committed to those relationships with proven operators. This has allowed us to maintain a superior credit risk profile in our commercial banking business."Mr. Simard further stated, "As we continue to grow profitably, we remain steadfast in our commitment to return capital to our shareholders. Last month, our Board of Directors authorized a stock repurchase plan for up to 5% of our common shares, which represents approximately 751,000 shares. No repurchases were made in the second quarter and we will continue to be opportunistic taking into consideration market conditions, including interest rate volatility and potential loan and risk-weighted asset growth. We grew tangible book value 6% excluding unrealized security losses, which are considered temporary in nature. And as of the June 30, 2022 stock price, our dividend yield is now over 4%. Given our already strong capital ratios and our organic growth rate, we continue to be well-positioned as we look to future growth."Mr. Simard concluded, "Our customers and communities have noticed our success as we further establish ourselves as the go-to banking institution in Northern New England. With that in mind, I am excited to share that in addition to being named one of America's Best Banks by Newsweek for 2022, we were recently recognized as one of America's Best Banks by Forbes Magazine. This type of recognition from such a renowned publication does not come easily. It is a testament to our teams' hard work every day. Looking forward into the second half of 2022, there are macroeconomic factors that remain uncertain. We believe having a strong balance sheet, robust pipelines, a sound mix of fee-based businesses, and a focus on expense management as we execute against our strategies will provide the foundation for continued success."DIVIDEND DECLAREDThe Board of Directors voted to declare a cash dividend of $0.26 per share to shareholders of record at the close of business on August 16, 2022 payable on September 16, 2022. This dividend equates to a 4.02% annualized yield based on the $25.86 closing price of the Company's common stock at the end of the second quarter of 2022.FINANCIAL CONDITIONLoans were $2.7 billion at the end of the second quarter. Excluding PPP loans, commercial loans increased $55.8 million from the end of the first quarter 2022 and included over 70 new customer relationships. Total residential loans increased $8.3 million from the end of the first quarter 2022, and included $18.3 million of originations on the balance sheet offset by prepayments and amortization.The allowance for credit losses was $23.8 million for the second quarter, compared to $23.2 million at the end of the first quarter 2022. A steadying economic forecast and disciplined approach to credit quality resulted in an allowance to total loans coverage ratio of 0.87% consistent with the end of the first quarter. The second quarter 2022 charged off loans resulted in a net recovery of $32 thousand compared to $95 thousand in the first quarter. Non-accruing loans for the second quarter 2022 decreased to $7.9 million from $9.2 million at the end of the first quarter. The ratio of accruing past due loans to total loans was 0.12% of total loans at the end of the second quarter from 0.25% at the end of the first quarter.Total deposits were $3.1 billion at the end of the second quarter 2022 compared to $3.0 billion at the end of the first quarter. Core deposits grew $60.8 million, or 9% on an annualized basis, during the quarter as nearly 840 net new customer accounts were opened. The loan to deposit ratio was 89% compared to 87% at the end of the first quarter 2022, the increase was due to outsized loan growth. Time deposits decreased $30.0 million during the quarter attributable to customers continuing to move funds to transactional accounts upon contractual maturity.The Company's book value per share was $26.19 at June 30, 2022, compared with $27.11 at the end of the first quarter. Tangible book value per share (non-GAAP measure) was $17.83 at the end of the second quarter 2022, compared to $18.72 at the end of the first quarter. Other comprehensive income included unrealized loss on securities totaling $38.3 million in the second quarter 2022 compared to $20.2 million at the end of the first quarter.RESULTS OF OPERATIONSNet income in the second quarter 2022 was $10.5 million, or $0.70 per diluted share, compared to $9.0 million, or $0.60 per diluted share, in the same quarter of 2021. Core earnings (non-GAAP) totaled $10.5 million or $0.70 per diluted share, compared to $9.4 million, or $0.63 per diluted share, in the same quarter of 2021. PPP income was $27 thousand compared to $1.1 million in the second quarter 2021.Net interest margin was 3.19% compared to 2.74% in the same period of 2021. Acceleration of PPP loan fee amortization due to forgiveness contributed 7 basis points in the second quarter 2021. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 5 basis points in the second quarter 2022 and 19 basis points in the second quarter 2021. The yield on earning assets totaled 3.46% compared to 3.26% in the second quarter 2021. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.51% and 3.44% for the same periods. The yield on loans was 3.71% in the second quarter 2022, and 3.70% in the second quarter of 2021. Excluding PPP loans the yield on loans was 3.71% in the second quarter of 2022 and 3.64% in the second quarter 2021. Costs of interest-bearing liabilities decreased to 0.36% from 0.66% in the second quarter 2021 due to lower deposit rates and less wholesale borrowings.The provision for credit losses for the quarter was $534 thousand, compared to a recapture of $765 thousand in the second quarter of 2021. The provision in the second quarter 2022 is attributable to loan growth offset in part by continued improvement in credit quality metrics.Non-interest income in the second quarter 2022 was $9.0 million, compared to $9.5 million in the same quarter of 2021. Customer service fees were $3.7 million in the second quarter compared to $3.3 million in the same period of 2021. The increase included over 800 net new accounts that were opened during the quarter and a higher volume of customer activity and transactions. Wealth management income was $3.8 million in the second quarter of 2022 and the second quarter of 2021 on strong cash inflows offset by market volatility effects on assets under management. Mortgage banking income was $488 thousand, compared to $1.5 million in the same period of 2021 reflecting higher on balance sheet activity and lower residential loan originations.Non-interest expense was $21.7 million in the second quarter 2022 and the same quarter of 2021 reflecting consistent and stable costs across most categories. The efficiency ratio in the second quarter 2022 was 59.25%, down from 63.45% in the second quarter 2021. Non-core expenses (non-GAAP) in the second quarter 2022 consisted of a $10 thousand loss on the sale of premises and equipment. In the same quarter of 2021, non-core expenses (non-GAAP) totaled $553 thousand were mostly a one-time reduction in workforce.BACKGROUNDBar 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 STATEMENTSCertain statements under the headings "SECOND QUARTER HIGHLIGHTS" 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, 2021 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 MEASURESThis 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.###CONTACTSJosephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEXCONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) SELECTEDFINANCIALHIGHLIGHTSUNAUDITED_350ASelected Financial HighlightsBBalance SheetsCLoan and Deposit AnalysisDStatements of IncomeEStatements of Income (Five Quarter Trend)FAverage Yields and CostsGAverage BalancesHAsset Quality AnalysisI-JReconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary DataBAR HARBOR BANKSHARES SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2022 2022 2021 2021 2021 PER SHARE DATA Net earnings, diluted $0.70 $0.60 $0.65 $0.73 $0.60 Core earnings, diluted (1) 0.70 0.62 0.68 0.73 0.63 Total book value 26.19 27.11 28.27 27.92 27.64 Tangible book value (1) 17.83 18.72 19.86 19.48 19.17 Market price at period end 25.86 28.62 28.93 28.05 28.62 Dividends 0.26 0.24 0.24 0.24 0.24 PERFORMANCE RATIOS (2) Return on assets 1.14% 1.00% 1.02% 1.16% 0.97%Core return on assets (1) 1.14 1.02 1.07 1.16 1.01 Pre-tax, pre-provision return on assets 1.50 1.28 1.26 1.43 1.13 Core pre-tax, pre-provision return on assets (1) 1.50 1.31 1.33 1.43 1.18 Return on equity 10.58 8.89 9.16 10.38 8.77 Core return on equity (1) 10.59 9.07 9.60 10.39 9.14 Return on tangible equity 15.74 13.01 13.30 15.08 12.91 Core return on tangible equity (1) 15.76 13.27 13.93 15.09 13.45 Net interest margin, fully taxable equivalent (FTE) (1) (3) 3.19 2.95 2.79 3.02 2.74 Core net interest margin (1) (4) 3.19 2.93 2.69 2.75 2.67 Efficiency ratio (1) 59.25 62.40 60.74 59.18 63.45 FINANCIAL DATA (In millions) Total assets $3,712 $3,692 $3,709 $3,738 $3,639 Total earning assets (5) 3,399 3,367 3,380 3,394 3,282 Total investments 593 611 626 556 636 Total loans 2,727 2,655 2,532 2,534 2,516 Allowance for credit losses 24 23 23 22 23 Total goodwill and intangible assets 126 126 126 126 127 Total deposits 3,079 3,048 3,049 3,007 2,822 Total shareholders' equity 394 407 424 418 414 Net income 11 9 10 11 9 Core earnings (1) 11 9 10 11 9 ASSET QUALITY AND CONDITION RATIOS Net (recoveries) charge-offs (current quarter annualized)/average loans (0.01)% (0.01)% -% 0.03% 0.01%Allowance for credit losses/total loans 0.87 0.87 0.90 0.89 0.91 Loans/deposits 89 87 83 84 89 Shareholders' equity to total assets 10.60 11.02 11.43 11.19 11.37 Tangible shareholders' equity to tangible assets 7.47 7.88 8.32 8.08 8.17 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in table I-J for additional information.(2) All performance ratios are based on average balance sheet amounts, where applicable.(3) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.(4) Core net interest margin excludes Paycheck Protection Program loans.(5) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Assets Cash and due from banks $40,834 $38,656 $33,508 $39,081 $41,440 Interest-earning deposits with other banks 26,282 72,393 216,881 302,118 132,278 Total cash and cash equivalents 67,116 111,049 250,389 341,199 173,718 Securities available for sale 586,142 603,910 618,276 545,327 621,849 Federal Home Loan Bank stock 6,572 7,384 7,384 10,192 14,145 Total securities 592,714 611,294 625,660 555,519 635,994 Loans held for sale 3,539 2,843 5,523 7,505 7,942 Total loans 2,727,274 2,654,562 2,531,910 2,534,154 2,515,560 Less: Allowance for credit losses (23,756) (23,190) (22,718) (22,448) (22,815)Net loans 2,703,518 2,631,372 2,509,192 2,511,706 2,492,745 Premises and equipment, net 48,350 48,891 49,382 50,070 51,119 Other real estate owned - - - - - Goodwill 119,477 119,477 119,477 119,477 119,477 Other intangible assets 6,267 6,500 6,733 6,966 7,198 Cash surrender value of bank-owned life insurance 80,262 79,861 79,020 79,380 78,886 Deferred tax asset, net 18,405 12,614 5,547 5,811 4,902 Other assets 72,596 68,169 58,310 60,712 67,064 Total assets $3,712,244 $3,692,070 $3,709,233 $3,738,345 $3,639,045 Liabilities and shareholders' equity Demand and other non-interest bearing deposits $670,268 $653,471 $664,420 $664,395 $599,598 NOW deposits 883,239 918,768 940,631 888,021 802,681 Savings deposits 663,676 658,834 628,670 605,977 578,361 Money market deposits 499,456 424,750 389,291 379,651 371,075 Time deposits 361,906 391,940 425,532 469,221 470,758 Total deposits 3,078,545 3,047,763 3,048,544 3,007,265 2,822,473 Senior borrowings 117,347 118,538 118,400 190,267 279,991 Subordinated borrowings 60,206 60,165 60,124 60,083 60,042 Total borrowings 177,553 178,703 178,524 250,350 340,033 Other liabilities 62,549 58,605 58,018 62,295 62,779 Total liabilities 3,318,647 3,285,071 3,285,086 3,319,910 3,225,285 Total shareholders' equity 393,597 406,999 424,147 418,435 413,760 Total liabilities and shareholders' equity $3,712,244 $3,692,070 $3,709,233 $3,738,345 $3,639,045 Net shares outstanding 15,026 15,013 15,001 14,987 14,972 BAR HARBOR BANKSHARES CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITEDLOAN ANALYSIS Annualized Growth % (in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Quarter to Date Year to Date Commercial real estate $1,331,860 $1,289,968 $1,210,580 $1,170,372 $1,135,857 13% 20%Commercial and industrial 360,304 346,394 340,129 331,091 327,729 16 12 Paycheck Protection Program (PPP) 170 1,126 6,669 24,227 65,918 * * Total commercial loans 1,692,334 1,637,488 1,557,378 1,525,690 1,529,504 13 17 Total commercial loans, excluding PPP 1,692,164 1,636,362 1,550,709 1,501,463 1,463,586 14 18 Residential real estate 876,644 868,382 821,004 849,692 822,774 4 14 Consumer 100,816 96,876 98,949 100,933 103,589 16 4 Tax exempt and other 57,480 51,816 54,579 57,839 59,693 44 11 Total loans $2,727,274 $2,654,562 $2,531,910 $2,534,154 $2,515,560 11% 15%DEPOSIT ANALYSIS Annualized Growth % (in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Quarter to Date Year to Date Demand $670,268 $653,471 $664,420 $664,395 $599,598 10% 2%NOW 883,239 918,768 940,631 888,021 802,681 (15) (12)Savings 663,676 658,834 628,670 605,977 578,361 3 11 Money market 499,456 424,750 389,291 379,651 371,075 70 57 Total non-maturity deposits 2,716,639 2,655,823 2,623,012 2,538,044 2,351,715 9 7 Total time deposits 361,906 391,940 425,532 469,221 470,758 (31) (30)Total deposits $3,078,545 $3,047,763 $3,048,544 $3,007,265 $2,822,473 4% 2%*Indicates ratios of 100% or greater.BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2022 2021 2022 2021 Interest and dividend income Loans $24,581 $23,191 $47,252 $47,396 Securities and other 4,207 3,992 8,033 7,971 Total interest and dividend income 28,788 27,183 55,285 55,367 Interest expense Deposits 1,195 2,603 2,384 5,554 Borrowings 1,074 1,826 2,084 3,637 Total interest expense 2,269 4,429 4,468 9,191 Net interest income 26,519 22,754 50,817 46,176 Provision for credit losses 534 (765) 911 (1,254)Net interest income after provision for credit losses 25,985 23,519 49,906 47,430 Non-interest income Trust and investment management fee income 3,829 3,801 7,583 7,467 Customer service fees 3,656 3,257 7,272 6,227 Gain on sales of securities, net - 50 9 50 Mortgage banking income 488 1,553 1,112 4,123 Bank-owned life insurance income 504 498 1,005 1,016 Customer derivative income 137 86 155 496 Other income 347 260 1,134 374 Total non-interest income 8,961 9,505 18,270 19,753 Non-interest expense Salaries and employee benefits 11,368 11,356 23,515 23,532 Occupancy and equipment 4,373 3,894 8,796 8,222 Loss (gain) on sales of premises and equipment, net 10 1 (65) 9 Outside services 410 533 750 965 Professional services 528 151 701 709 Communication 188 198 413 519 Marketing 369 534 632 824 Amortization of intangible assets 233 233 466 474 Loss on debt extinguishment - - - - Acquisition, conversion and other expenses - 552 325 1,441 Other expenses 4,221 4,272 8,053 7,520 Total non-interest expense 21,700 21,724 43,586 44,215 Income before income taxes 13,246 11,300 24,590 22,968 Income tax expense 2,743 2,275 4,975 4,463 Net income $10,503 $9,025 $19,615 $18,505 Earnings per share: Basic $0.70 $0.60 $1.31 $1.24 Diluted 0.70 0.60 1.30 1.23 Weighted average shares outstanding: Basic 15,018 14,965 15,014 14,950 Diluted 15,077 15,042 15,094 15,026 BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2022 2022 2021 2021 2021 Interest and dividend income Loans $24,581 $22,671 $22,746 $25,094 $23,191 Securities and other 4,207 3,826 3,776 3,821 3,992 Total interest and dividend income 28,788 26,497 26,522 28,915 27,183 Interest expense Deposits 1,195 1,189 1,434 1,555 2,603 Borrowings 1,074 1,010 1,273 1,778 1,826 Total interest expense 2,269 2,199 2,707 3,333 4,429 Net interest income 26,519 24,298 23,815 25,582 22,754 Provision for credit losses 534 377 126 (174) (765)Net interest income after provision for credit losses 25,985 23,921 23,689 25,756 23,519 Non-interest income Trust and investment management fee income 3,829 3,754 3,844 3,868 3,801 Customer service fees 3,656 3,616 3,470 3,515 3,257 Gain on sales of securities, net - 9 890 1,930 50 Mortgage banking income 488 624 1,563 850 1,553 Bank-owned life insurance income 504 501 669 494 498 Customer derivative income 137 18 173 341 86 Other income 347 787 549 352 260 Total non-interest income 8,961 9,309 11,158 11,350 9,505 Non-interest expense Salaries and employee benefits 11,368 12,147 11,842 11,743 11,356 Occupancy and equipment 4,373 4,423 4,105 4,029 3,894 Loss (gain) on sales of premises and equipment, net 10 (75) 515 (146) 1 Outside services 410 340 431 547 533 Professional services 528 173 556 491 151 Communication 188 225 205 188 198 Marketing 369 263 378 339 534 Amortization of intangible assets 233 233 233 233 233 Loss on debt extinguishment - - 1,083 1,768 - Acquisition, conversion and other expenses - 325 (92) 318 552 Other expenses 4,221 3,832 3,665 3,862 4,272 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Income before income taxes 13,246 11,344 11,926 13,734 11,300 Income tax expense 2,743 2,232 2,160 2,706 2,275 Net income $10,503 $9,112 $9,766 $11,028 $9,025 Earnings per share: Basic $0.70 $0.61 $0.65 $0.74 $0.60 Diluted 0.70 0.60 0.65 0.73 0.60 Weighted average shares outstanding: Basic 15,018 15,011 14,993 14,983 14,965 Diluted 15,077 15,102 15,075 15,051 15,042 BAR HARBOR BANKSHARES AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2022 2022 2021 2021 2021 Earning assets Interest-earning deposits with other banks 0.80% 0.16% 0.16% 0.15% 0.09%Securities available for sale and FHLB stock 2.69 2.55 2.66 2.59 2.66 Loans: Commercial real estate 3.82 3.50 3.40 3.53 3.54 Commercial and industrial 3.67 3.46 3.23 3.79 3.60 Paycheck protection program 13.99 26.49 26.25 23.28 5.56 Residential real estate 3.55 3.55 3.61 3.64 3.80 Consumer 3.82 3.51 3.49 3.78 3.44 Total loans 3.71 3.54 3.58 3.98 3.70 Total earning assets 3.46% 3.21% 3.10% 3.41% 3.26% Funding liabilities Deposits: NOW 0.14% 0.14% 0.14% 0.13% 0.12%Savings 0.08 0.09 0.08 0.08 0.10 Money market 0.19 0.12 0.12 0.12 0.12 Time deposits 0.58 0.62 0.77 0.88 1.37 Total interest-bearing deposits 0.20 0.20 0.24 0.27 0.45 Borrowings 2.41 2.29 2.17 2.11 2.12 Total interest-bearing liabilities 0.36% 0.35% 0.41% 0.50% 0.66% Net interest spread 3.10 2.86 2.69 2.91 2.60 Net interest margin 3.19 2.95 2.79 3.02 2.74 Core net interest margin (1) 3.19 2.93 2.69 2.75 2.67 (1) Core net interest margin (Non-GAAP) excludes Paycheck Protection Program loans.BAR HARBOR BANKSHARES AVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Assets Interest-earning deposits with other banks (1) $63,317 $140,383 $325,260 $284,429 $228,825 Securities available for sale and FHLB stock (2) 637,881 629,811 578,323 610,381 635,978 Loans: Commercial real estate 1,296,162 1,264,798 1,189,803 1,153,813 1,122,831 Commercial and industrial 412,518 393,759 386,156 391,191 378,634 Paycheck protection program 788 2,999 14,824 45,835 76,701 Residential real estate 863,172 856,252 844,872 824,686 850,119 Consumer 98,588 97,594 100,723 101,545 104,851 Total loans (3) 2,671,228 2,615,402 2,536,378 2,517,070 2,533,136 Total earning assets 3,372,426 3,385,596 3,439,961 3,411,880 3,397,939 Cash and due from banks 35,051 32,742 37,818 38,750 21,414 Allowance for credit losses (23,228) (23,256) (22,525) (22,607) (23,419)Goodwill and other intangible assets 126,090 126,090 126,324 126,556 126,789 Other assets 174,880 190,846 200,097 209,509 223,362 Total assets $3,685,219 $3,712,018 $3,781,675 $3,764,088 $3,746,085 Liabilities and shareholders' equity Deposits: NOW $893,239 $930,556 $913,326 $860,206 $781,836 Savings 657,047 640,672 620,599 591,440 568,193 Money market 457,088 414,130 395,341 381,755 368,826 Time deposits 375,782 406,730 450,559 471,934 619,454 Total interest-bearing deposits 2,383,156 2,392,088 2,379,825 2,305,335 2,338,309 Borrowings 178,519 178,958 232,492 334,097 345,896 Total interest-bearing liabilities 2,561,675 2,571,046 2,612,317 2,639,432 2,684,205 Non-interest-bearing demand deposits 661,412 660,717 684,895 641,769 591,982 Other liabilities 63,912 64,619 61,480 61,436 57,227 Total liabilities 3,286,999 3,296,382 3,358,692 3,342,637 3,333,414 Total shareholders' equity 398,220 415,636 422,983 421,451 412,671 Total liabilities and shareholders' equity $3,685,219 $3,712,018 $3,781,675 $3,764,088 $3,746,085 (1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.(2) Average balances for securities available-for-sale are based on amortized cost.(3) Total average loans include non-accruing loans and loans held for sale.BAR HARBOR BANKSHARES ASSET QUALITY ANALYSIS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $1,483 $1,633 $2,890 $3,646 $4,367 Commercial installment 632 905 1,056 1,163 1,370 Residential real estate 4,882 5,612 5,192 6,311 6,788 Consumer installment 881 1,063 1,053 1,087 1,054 Total non-accruing loans 7,878 9,213 10,191 12,207 13,579 Other real estate owned - - - - - Total non-performing assets $7,878 $9,213 $10,191 $12,207 $13,579 Total non-accruing loans/total loans 0.29% 0.35% 0.40% 0.48% 0.54%Total non-performing assets/total assets 0.21 0.25 0.27 0.33 0.37 PROVISION AND ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $23,190 $22,718 $22,448 $22,815 $23,653 Charged-off loans (62) (83) (154) (286) (239)Recoveries on charged-off loans 94 178 298 93 166 Net loans charged-off 32 95 144 (193) (73)Provision for credit losses 534 377 126 (174) (765)Balance at end of period $23,756 $23,190 $22,718 $22,448 $22,815 Allowance for credit losses/total loans 0.87% 0.87% 0.90% 0.89% 0.91%Allowance for credit losses/non-accruing loans 300 252 223 184 168 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $59 $54 $216 $(69) $(105)Commercial installment 12 25 53 (24) (7)Residential real estate 6 76 8 13 88 Consumer installment (45) (60) (133) (113) (49)Total, net $32 $95 $144 $(193) $(73) Net (recoveries) charge-offs (QTD annualized)/average loans -% (0.01)% (0.02)% 0.03% 0.01%Net (recoveries) charge-offs (YTD annualized)/average loans (0.01) (0.01) 0.01 0.02 0.02 DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS 30-89 Days delinquent 0.09% 0.22% 0.31% 0.09% 0.13%90+ Days delinquent and still accruing 0.03 0.03 0.01 0.02 0.02 Total accruing delinquent loans 0.12 0.25 0.32 0.12 0.15 Non-accruing loans 0.29 0.35 0.40 0.48 0.54 Total delinquent and non-accruing loans 0.41% 0.60% 0.72% 0.60% 0.69%BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Net income $10,503 $9,112 $9,766 $11,028 $9,025 Non-core items: Gain on sale of securities, net - (9) (890) (1,930) (50)Loss (gain) on sale of premises and equipment, net 10 (75) 515 (146) 1 Loss on debt extinguishment - - 1,083 1,768 - Acquisition, conversion and other expenses - 325 (92) 318 552 Income tax expense (1) (2) (56) (144) (2) (119)Total non-core items 8 185 472 8 384 Core earnings (2)(A) $10,511 $9,297 $10,238 $11,036 $9,409 Net interest income(B) $26,519 $24,298 $23,815 $25,582 $22,754 Non-interest income 8,961 9,309 11,158 11,350 9,505 Total Revenue 35,480 33,607 34,973 36,932 32,259 Gain on sale of securities, net - (9) (890) (1,930) (50)Total core revenue (2)(C) $35,480 $33,598 $34,083 $35,002 $32,209 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Non-core expenses: (Loss) gain on sale of premises and equipment, net (10) 75 (515) 146 (1)Loss on debt extinguishment - - (1,083) (1,768) - Acquisition, conversion and other expenses - (325) 92 (318) (552)Total non-core expenses (10) (250) (1,506) (1,940) (553)Core non-interest expense (2)(D) $21,690 $21,636 $21,415 $21,432 $21,171 Total revenue 35,480 33,607 34,973 36,932 32,259 Total non-interest expense 21,700 21,886 22,921 23,372 21,724 Pre-tax, pre-provision net revenue $13,780 $11,721 $12,052 $13,560 $10,535 Core revenue (2) 35,480 33,598 34,083 35,002 32,209 Core non-interest expense (2) 21,690 21,636 21,415 21,432 21,171 Core pre-tax, pre-provision net revenue (2)(U) $13,790 $11,962 $12,668 $13,570 $11,038 (in millions) Average earning assets(E) $3,372 $3,386 $3,440 $3,412 $3,398 Average paycheck protection program (PPP) loans(R) 1 3 15 46 77 Average earning assets, excluding PPP loans(S) 3,371 3,383 3,425 3,366 3,321 Average assets(F) 3,685 3,712 3,764 3,764 3,746 Average shareholders' equity(G) 398 416 423 421 413 Average tangible shareholders' equity (2) (3)(H) 272 290 297 295 286 Tangible shareholders' equity, period-end (2) (3)(I) 268 281 298 292 287 Tangible assets, period-end (2) (3)(J) 3,587 3,566 3,583 3,612 3,512 BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2022 2022 2021 2021 2021 Common shares outstanding, period-end(K) 15,018 15,013 15,001 14,987 14,972 Average diluted shares outstanding(L) 15,077 15,102 15,075 15,051 15,042 Core earnings per share, diluted (2)(A/L) $0.70 $0.62 $0.68 $0.73 $0.63 Tangible book value per share, period-end (2)(I/K) 17.83 18.72 19.86 19.48 19.17 Securities adjustment, net of tax (1) (4)(M) (38,304) (20,225) 1,985 4,398 7,237 Tangible book value per share, excluding securities adjustment (2) (4)(I+M)/K 20.38 20.07 19.73 19.19 18.69 Tangible shareholders' equity/total tangible assets (2)(I/J) 7.47 7.88 8.32 8.08 8.17 Performance ratios (5) GAAP return on assets 1.14% 1.00% 1.02% 1.16% 0.97%Core return on assets (2)(A/F) 1.14 1.02 1.07 1.16 1.01 Pre-tax, pre-provision return on assets 1.50 1.28 1.26 1.43 1.13 Core pre-tax, pre-provision returnon assets (2)(U/F) 1.50 1.31 1.33 1.43 1.18 GAAP return on equity 10.58 8.89 9.16 10.38 8.77 Core return on equity (2)(A/G) 10.59 9.07 9.60 10.39 9.14 Return on tangible equity 15.74 13.01 13.30 15.08 12.91 Core return on tangible equity (1) (2)(A+Q)/H 15.76 13.27 13.93 15.09 13.45 Efficiency ratio (2) (6)(D-O-Q)/(C+N) 59.25 62.40 60.74 59.18 63.45 Net interest margin(B+P)/E 3.19 2.95 2.79 3.02 2.74 Core net interest margin (2) (7)(B+P-T)/S 3.19 2.93 2.69 2.75 2.67 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio(N) $491 $476 $573 $576 $586 Franchise taxes included in non-interest expense(O) 144 141 132 143 128 Tax equivalent adjustment for net interest margin(P) 334 320 369 421 430 Intangible amortization(Q) 233 233 233 233 233 Interest and fees on PPP loans(T) 27 196 981 2,690 1,064 (1) Assumes a marginal tax rate of 23.41% for the first and second quarter of 2022 and fourth quarter of 2021 and 23.71% for the first three quarters of 2021.(2) Non-GAAP financial measure.(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.(4) Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.(5) All performance ratios are based on average balance sheet amounts, where applicable.(6) Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.(7) Core net interest margin excludes Paycheck Protection Program loans.SOURCE: Bar Harbor Bank and TrustView source version on accesswire.com: https://www.accesswire.com/709307/Bar-Harbor-Bankshares-Reports-Second-Quarter-Results-Declares-Dividend