Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bar Harbor Bankshares Reports Second Quarter 2024 Results; Declares Dividend By: ACCESSWIRE July 18, 2024 at 12:15 PM EDT BAR HARBOR, ME / ACCESSWIRE / July 18, 2024 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") reported second quarter 2024 GAAP net income of $10.3 million and $0.67 per diluted share and core (Non-GAAP) net income of $10.0 million or $0.66 per diluted share compared to GAAP and core (Non-GAAP) net income $10.8 million or $0.71 per diluted share in the same quarter of 2023. SECOND QUARTER 2024 HIGHLIGHTS Return on assets of 1.04% Commercial loan growth of 14% annualized Net interest margin ("NIM") of 3.09% Non-accruing loans to total loans ratio of 0.20% 14% growth in trust and investment fee income Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, "We delivered another solid quarter, demonstrating our commitment to consistent, sustainable long-term performance. Our continued perseverance is seen in our results as we have been able to defend our NIM relative to our peers. Our wealth management team continues to perform well with strong client retention and new client acquisitions of over $100.0 million which will fund over the next several quarters. I am proud of our teamwork, dedication to risk management, and purposeful expense control, which when paired with our strong calling culture will continue to drive our success in the second half of the year." DIVIDEND DECLAREDThe Board of Directors of the Company voted to declare a cash dividend of $0.30 per share to shareholders of record at the close of business on August 15, 2024 payable on September 13, 2024. This dividend equates to a 4.46% annualized yield based on the $26.88 closing share price of the Company's common stock on June 28, 2024, the last trading day of the second quarter 2024. FINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)Total assets grew $75.2 million at the end of the second quarter 2024 compared to the first quarter 2024 primarily due to loan growth and higher cash balances, partially offset by lower securities available for sale at the end of the second quarter. Total cash and cash equivalents were $101.8 million, compared to $76.2 million at end of the first quarter 2024. Interest-earning deposits held with other banks totaled $62.2 million compared to $45.4 million at end of the first quarter and yielded 5.65% and 5.88%, respectively. Total loans grew $52.5 million or 7% on an annualized basis. Commercial loans grew by $68.6 million or 14% annualized primarily driven by a $59.9 million, or 15% increase in commercial real estate and a $8.7 million, or 8%, increase in commercial and industrial loans. Residential loans decreased by $18.5 million, or 8% annualized, compared to the first quarter 2024 as we continue to focus on our held-for-sale mortgage business and allocate portfolio balances to higher yielding commercial loans. Consumer loans increased $3.9 million, or 16% annualized, driven by new home equity line originations in the second quarter 2024. Securities available for sale decreased to $512.9 million compared to $527.6 million in the first quarter 2024 driven by pay downs of $22.0 million, called securities of $3.5 million, matured securities of $3.0 million and net amortization of $408 thousand, partially offset by security purchases of $18.1 million. Federal Home Loan Bank ("FHLB") stock increased to $14.8 million in the second quarter 2024 compared to $10.0 million in the first quarter 2024 driven by higher FHLB borrowings. Fair value adjustments decreased the security portfolio by $68.5 million at quarter-end of this quarter compared to $64.9 million at the end of the first quarter. The weighted average yield of the total securities portfolio for the second quarter 2024 was 4.00% compared to 4.02% at the end of the previous quarter primarily due to a run-off of lower coupon fixed-rate securities. As of the end of the first and second quarters 2024, respectively, our securities portfolio maintained an average life of nine years with an effective duration of five years and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise. The allowance for credit losses increased $500 thousand to $28.9 million at the end of the second quarter 2024 compared to $28.4 million at the end of the first quarter 2024. Our allowance for credit losses continues to be driven by a combination of portfolio loan growth, nominal credit movement and general macroeconomic trends. Non-accruing loans decreased during the second quarter 2024 to $6.3 million from $6.9 million in the first quarter 2024. Charge-offs and specific reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values. Total deposits remained at $3.1 billion at the end of the second quarter 2024. We continued to see a shift from non-maturity deposits to certificate of deposit accounts ("CDs"), as CDs increased $23.9 million in the second quarter versus the first quarter 2024. The increase was primarily driven by $6.8 million in personal CDs, $6.4 million in brokered deposits, $6.3 million in non-personal CDs, and $4.4 million in Certificate of Deposit Account Registry Service, also known as CDARS, deposits. Non-maturity deposits decreased 2% on an annualized basis or $10.6 million. Senior borrowings increased $59.9 million to $329.3 million from the first quarter 2024 driven by funding loan growth and liquidity. The Company's book value per share was $28.81 as of June 30, 2024 compared to $28.64 as of March 31, 2024. Unrealized losses on securities, net of taxes, reduced book value per share by $3.44 and $3.26 at the end of those respective periods. Tangible book value per share (Non-GAAP) was $20.68 at the end of the second quarter 2024, compared to $20.48 at the end of the first quarter 2024. RESULTS OF OPERATIONS (June 30, 2024 compared to June 30, 2023)Net interest margin was 3.09% compared to 3.22% in the second quarter 2023. The decrease was primarily driven by higher cost of funds, partially offset by lower borrowing costs. The yield on loans grew 42 basis points to 5.41% in the second quarter 2024, up from 4.99% in the same quarter 2023. Costs of interest-bearing deposits increased to 2.35% from 1.45% in the second quarter 2023 driven by the competitive pricing within the interest rate environment and change in deposit mix as we continue to experience a shift from non-maturity deposits to CDs. Borrowings decreased $69.5 million from the second quarter 2023 compounded with a 16 basis point decrease in yields on interest bearing liabilities to 4.57% in the second quarter 2024. Total interest and dividend income increased by 9.2% to $46.8 million in the second quarter 2023 primarily driven by the repricing of adjustable-rate loans and originations of higher fixed-rate loans within the commercial portfolio. The yield on commercial real estate loans grew to 5.61% at the end of the second quarter 2024 from 5.21% in the second quarter 2023. Commercial and industrial yield grew to 6.76% at the end of the second quarter 2024 compared to 6.42% at the end of the second quarter 2023. Yields on earning assets continue to grow to 5.18% compared to 4.77% in the second quarter 2023. The provision for credit losses was $585 thousand compared to $750 thousand in the second quarter 2023 as net charge-offs to total loans continue to remain nominal. Credit quality continues to be strong as non-accruing loans to total loans was 0.20% at the end of the second quarter 2024 compared to 0.22% in the second quarter 2023. Total delinquent and non-accruing loans to total loans was 0.30% at the end of the second quarter 2024 to compared to 0.33% in the second quarter 2023. Non-interest income was $9.6 million in the second quarter 2024 compared to $9.0 million in the same quarter 2023. Wealth management income grew 10% to $4.2 million compared to $3.8 million in the in the second quarter 2023. Assets under management grew 12% in the second quarter 2024 to $2.6 billion from $2.3 billion in the second quarter 2023 driven by higher security valuations and a 2% growth in the managed accounts. Mortgage banking income increased $180 thousand compared to the second quarter 2023 driven by increased margins on our held-for-sale mortgage business. Non-interest expense was $24.0 million in the second quarter 2024 compared to $23.4 million in the second quarter 2023 driven by salary and benefits, and other expenses, partially offset by the gain on sale of our Avery Lane office and lower professional services fees. Salary and benefit expenses increased 5%, or $637 thousand, from the comparative quarter 2023 driven in part by stock compensation due to increases in stock price and lower loan origination fee deferrals in the second quarter 2024. Other expenses increased to $4.4 million from $4.2 million in the second quarter 2023 primarily due to increases in charitable contributions to the community, software expenses, and debit and ATM card expenses. 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 Bank & Trust 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 STATEMENTSAll statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this release the words "believe," "anticipate," "expect," "may," "will," "assume," "should," "predict," "could," "would," "intend," "targets," "estimates," "projects," "plans," and "potential," and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements relating to Company's balance sheet management, our credit trends, our overall credit performance, and the Company's strategic plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (2) changes in consumer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (4) the impact of liquidity needs on our results of operations and financial condition; (5) changes in the size and nature of our competition; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand, pricing or collectability; (8) the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; (9) operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, climate change, war, terrorism, civil unrest, and future pandemics; (10) lack of strategic growth opportunities or our failure to execute on available opportunities; (11) our ability to effectively manage problem credits; (12) our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; (13) our ability to retain executive officers and key employees and their customer and community relationships; (14) regulatory, litigation, and reputational risks and the applicability of insurance coverage; (15) changes in the reliability of our vendors, internal control systems or information systems; (16) the potential impact of climate change; (17) changes in legislation or regulation and accounting principles, policies, and guidelines; (18) reductions in the market value or outflows of wealth management assets under management; and (19) changes in the assumptions used in making such forward-looking statements. Additional factors which could affect the forward-looking statements can be found in the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the "SEC") and available on the SEC's website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company's ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement. NON-GAAP FINANCIAL 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. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. 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. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense. The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community. ### CONTACTS Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEX CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) A Selected Financial Highlights B Balance Sheets C Loan and Deposit Analysis D Statements of Income E Statements of Income (Five Quarter Trend) F Average Yields and Costs G Average Balances H Asset Quality Analysis I-J Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data BAR HARBOR BANKSHARESSELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2024 2024 2023 2023 2023 PER SHARE DATA Net earnings, diluted $ 0.67 $ 0.66 $ 0.65 $ 0.73 $ 0.71 Core earnings, diluted (1) 0.66 0.66 0.68 0.73 0.71 Total book value 28.81 28.64 28.48 26.67 27.12 Tangible book value (1) 20.68 20.48 20.28 18.45 18.88 Market price at period end 26.88 26.48 29.36 23.63 24.64 Dividends 0.30 0.28 0.28 0.28 0.28 PERFORMANCE RATIOS (2) Return on assets 1.04 % 1.03 % 1.00 % 1.11 % 1.10 % Core return on assets (1) 1.02 1.03 1.04 1.11 1.09 Pre-tax, pre-provision return on assets 1.36 1.32 1.34 1.49 1.47 Core pre-tax, pre-provision return on assets (1) 1.33 1.32 1.39 1.49 1.46 Return on equity 9.46 9.31 9.43 10.72 10.49 Core return on equity (1) 9.25 9.32 9.82 10.72 10.42 Return on tangible equity 13.44 13.25 13.65 15.65 15.28 Core return on tangible equity (1) 13.15 13.26 14.21 15.65 15.19 Net interest margin, fully taxable equivalent (1) (3) 3.09 3.14 3.17 3.18 3.22 Efficiency ratio (1) 62.96 62.91 61.38 58.59 60.25 FINANCIAL DATA (In millions) Total assets $ 4,034 $ 3,959 $ 3,971 $ 3,984 $ 4,029 Total earning assets (4) 3,726 3,663 3,664 3,687 3,716 Total investments 528 538 547 524 556 Total loans 3,064 3,012 2,999 2,993 3,007 Allowance for credit losses 29 28 28 28 27 Total goodwill and intangible assets 124 124 124 125 125 Total deposits 3,140 3,127 3,141 3,140 3,090 Total shareholders' equity 439 436 432 404 411 Net income 10 10 10 11 11 Core earnings (1) 10 10 10 11 11 ASSET QUALITY AND CONDITION RATIOS Net charge-offs (recoveries)(5)/average loans 0.01 % 0.01 % 0.07 % - % - % Allowance for credit losses/total loans 0.94 0.94 0.94 0.94 0.91 Loans/deposits 98 96 95 95 97 Shareholders' equity to total assets 10.88 11.01 10.88 10.15 10.20 Tangible shareholders' equity to tangible assets 8.06 8.13 8.00 7.25 7.32 ____________________________________ (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables 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) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.(5) Current quarter annualized. A BAR HARBOR BANKSHARESCONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 Assets Cash and due from banks $ 39,673 $ 30,770 $ 42,221 $ 41,210 $ 46,532 Interest-earning deposits with other banks 62,163 45,449 52,621 81,606 77,253 Total cash and cash equivalents 101,836 76,219 94,842 122,816 123,785 Securities available for sale 512,928 527,603 534,574 509,453 538,178 Federal Home Loan Bank stock 14,755 9,960 12,788 14,834 17,784 Total securities 527,683 537,563 547,362 524,287 555,962 Loans held for sale 3,897 3,137 2,189 2,016 3,669 Total loans 3,064,181 3,011,672 2,999,049 2,992,791 3,007,480 Less: Allowance for credit losses (28,855 ) (28,355 ) (28,142 ) (28,011 ) (27,362 ) Net loans 3,035,326 2,983,317 2,970,907 2,964,780 2,980,118 Premises and equipment, net 51,628 47,849 48,287 47,790 47,412 Other real estate owned - - - - - Goodwill 119,477 119,477 119,477 119,477 119,477 Other intangible assets 4,404 4,637 4,869 5,102 5,335 Cash surrender value of bank-owned life insurance 81,221 80,642 80,037 79,469 78,967 Deferred tax asset, net 24,750 23,849 22,979 28,328 24,181 Other assets 83,978 82,285 79,936 89,876 89,641 Total assets $ 4,034,200 $ 3,958,975 $ 3,970,885 $ 3,983,941 $ 4,028,547 Liabilities and shareholders' equity Non-interest bearing demand $ 553,067 $ 544,495 $ 569,714 $ 618,421 $ 602,667 Interest-bearing demand 882,068 888,591 946,978 929,481 911,488 Savings 544,980 551,493 553,963 572,271 588,769 Money market 359,208 365,289 370,242 361,839 351,762 Time 801,143 777,208 700,260 658,482 635,559 Total deposits 3,140,466 3,127,076 3,141,157 3,140,494 3,090,245 Senior borrowings 329,349 269,437 271,044 307,070 398,972 Subordinated borrowings 60,541 60,501 60,461 60,422 60,371 Total borrowings 389,890 329,938 331,505 367,492 459,343 Other liabilities 64,937 66,247 66,164 71,747 68,243 Total liabilities 3,595,293 3,523,261 3,538,826 3,579,733 3,617,831 Total shareholders' equity 438,907 435,714 432,059 404,208 410,716 Total liabilities and shareholders' equity $ 4,034,200 $ 3,958,975 $ 3,970,885 $ 3,983,941 $ 4,028,547 Net shares outstanding 15,232 15,212 15,172 15,156 15,144 B BAR HARBOR BANKSHARESCONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED LOAN ANALYSIS Annualized Growth % Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Quarter Year (in thousands) 2024 2024 2023 2023 2023 to Date to Date Commercial real estate $ 1,634,658 $ 1,574,802 $ 1,552,061 $ 1,548,835 $ 1,551,748 15 % 11 % Commercial and industrial 421,297 412,567 400,169 391,347 388,430 8 11 Total commercial loans 2,055,955 1,987,369 1,952,230 1,940,182 1,940,178 14 11 Residential real estate 854,718 873,213 889,904 896,757 907,741 (8 ) (7 ) Consumer 99,776 95,838 97,001 95,160 96,947 16 6 Tax exempt and other 53,732 55,252 59,914 60,692 62,614 (11 ) (21 ) Total loans $ 3,064,181 $ 3,011,672 $ 2,999,049 $ 2,992,791 $ 3,007,480 7 % 4 % DEPOSIT ANALYSIS Annualized Growth % Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Quarter Year (in thousands) 2024 2024 2023 2023 2023 to Date to Date Non-interest bearing demand $ 553,067 $ 544,495 $ 569,714 $ 618,421 $ 602,667 6 % (6 )% Interest-bearing demand 882,068 888,591 946,978 929,481 911,488 (3 ) (14 ) Savings 544,980 551,493 553,963 572,271 588,769 (5 ) (3 ) Money market 359,208 365,289 370,242 361,839 351,762 (7 ) (6 ) Total non-maturity deposits 2,339,323 2,349,868 2,440,897 2,482,012 2,454,686 (2 ) (8 ) Time 801,143 777,208 700,260 658,482 635,559 12 29 Total deposits $ 3,140,466 $ 3,127,076 $ 3,141,157 $ 3,140,494 $ 3,090,245 2 % - % C BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2024 2023 2024 2023 Interest and dividend income Loans $ 40,634 $ 36,917 $ 80,104 $ 71,477 Securities and other 6,204 5,964 12,557 11,755 Total interest and dividend income 46,838 42,881 92,661 83,232 Interest expense Deposits 14,780 8,590 29,312 13,855 Borrowings 4,299 5,501 7,535 9,681 Total interest expense 19,079 14,091 36,847 23,536 Net interest income 27,759 28,790 55,814 59,696 Provision for credit losses 585 750 874 1,548 Net interest income after provision for credit losses 27,174 28,040 54,940 58,148 Non-interest income Trust and investment management fee income 4,193 3,805 7,863 7,360 Customer service fees 3,737 3,774 7,447 7,451 Gain on sales of securities, net 50 - 50 34 Mortgage banking income 558 378 815 657 Bank-owned life insurance income 583 503 1,144 1,651 Customer derivative income 168 83 168 215 Other income 344 437 732 796 Total non-interest income 9,633 8,980 18,219 18,164 Non-interest expense Salaries and employee benefits 13,860 13,223 27,108 25,994 Occupancy and equipment 4,382 4,392 8,855 8,806 Gain on sales of premises and equipment, net (248 ) (86 ) (263 ) (99 ) Outside services 462 424 800 780 Professional services 238 355 638 781 Communication 192 175 381 337 Marketing 521 476 1,088 885 Amortization of intangible assets 233 233 466 466 Acquisition, conversion and other expenses - - 20 20 Provision for unfunded commitments - 45 (185 ) (130 ) Other expenses 4,378 4,155 8,798 8,256 Total non-interest expense 24,018 23,392 47,706 46,096 Income before income taxes 12,789 13,628 25,453 30,216 Income tax expense 2,532 2,837 5,101 6,413 Net income $ 10,257 $ 10,791 $ 20,352 $ 23,803 Earnings per share: Basic $ 0.67 $ 0.71 $ 1.34 $ 1.57 Diluted 0.67 0.71 1.33 1.57 Weighted average shares outstanding: Basic 15,227 15,139 15,213 15,125 Diluted 15,275 15,180 15,273 15,186 D BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2024 2024 2023 2023 2023 Interest and dividend income Loans $ 40,634 $ 39,470 $ 39,531 $ 38,412 $ 36,917 Securities and other 6,204 6,353 6,284 6,723 5,964 Total interest and dividend income 46,838 45,823 45,815 45,135 42,881 Interest expense Deposits 14,780 14,532 12,962 11,415 8,590 Borrowings 4,299 3,236 4,060 4,534 5,501 Total interest expense 19,079 17,768 17,022 15,949 14,091 Net interest income 27,759 28,055 28,793 29,186 28,790 Provision for credit losses 585 289 687 673 750 Net interest income after provision for credit losses 27,174 27,766 28,106 28,513 28,040 Non-interest income Trust and investment management fee income 4,193 3,670 3,401 3,522 3,805 Customer service fees 3,737 3,710 3,791 3,926 3,774 Gain on sales of securities, net 50 - - - - Mortgage banking income 558 257 515 415 378 Bank-owned life insurance income 583 561 533 515 503 Customer derivative income 168 - 151 43 83 Other income 344 388 459 394 437 Total non-interest income 9,633 8,586 8,850 8,815 8,980 Non-interest expense Salaries and employee benefits 13,860 13,248 13,511 13,011 13,223 Occupancy and equipment 4,382 4,473 4,309 4,469 4,392 (Gain) loss on sales of premises and equipment, net (248 ) (15 ) 281 - (86 ) Outside services 462 338 515 376 424 Professional services 238 400 369 436 355 Communication 192 189 190 170 175 Marketing 521 567 485 326 476 Amortization of intangible assets 233 233 233 233 233 Acquisition, conversion and other expenses - 20 263 - - Provision for unfunded commitments - (185 ) - 45 45 Other expenses 4,378 4,420 4,211 3,950 4,155 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Income before income taxes 12,789 12,664 12,589 14,312 13,628 Income tax expense 2,532 2,569 2,644 3,208 2,837 Net income $ 10,257 $ 10,095 $ 9,945 $ 11,104 $ 10,791 Earnings per share: Basic $ 0.67 $ 0.66 $ 0.66 $ 0.73 $ 0.71 Diluted 0.67 0.66 0.65 0.73 0.71 Weighted average shares outstanding: Basic 15,227 15,198 15,164 15,155 15,139 Diluted 15,275 15,270 15,221 15,196 15,180 E BAR HARBOR BANKSHARESAVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2024 2024 2023 2023 2023 Earning assets Interest-earning deposits with other banks 5.65 % 5.88 % 6.42 % 5.02 % 5.59 % Securities available for sale and FHLB stock 4.00 4.02 3.85 3.87 3.71 Loans: Commercial real estate 5.61 5.47 5.46 5.34 5.21 Commercial and industrial 6.76 6.68 6.66 6.56 6.42 Residential real estate 4.13 4.09 3.94 3.84 3.76 Consumer 7.26 7.22 7.14 6.88 6.67 Total loans 5.41 5.31 5.24 5.11 4.99 Total earning assets 5.18 % 5.10 % 5.02 % 4.90 % 4.77 % Funding liabilities Deposits: Interest-bearing demand 1.39 % 1.34 % 1.33 % 1.11 % 0.94 % Savings 0.65 0.63 0.48 0.42 0.37 Money market 2.93 3.07 2.80 2.55 2.52 Time 4.33 4.18 3.93 3.65 2.82 Total interest-bearing deposits 2.35 2.26 2.05 1.81 1.45 Borrowings 4.57 4.35 4.64 4.59 4.73 Total interest-bearing liabilities 2.64 % 2.48 % 2.37 % 2.19 % 1.99 % Net interest spread 2.54 2.62 2.65 2.71 2.78 Net interest margin, fully taxable equivalent(1) 3.09 3.14 3.17 3.18 3.22 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. F BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 Assets Interest-earning deposits with other banks (1) $ 27,407 $ 36,608 $ 36,794 $ 70,499 $ 21,440 Securities available for sale and FHLB stock (2) 607,868 604,658 608,793 620,851 636,088 Loans: Commercial real estate 1,600,253 1,558,506 1,554,961 1,550,188 1,536,035 Commercial and industrial 468,052 464,762 457,642 439,915 434,384 Residential real estate 865,412 884,767 898,147 909,296 911,788 Consumer 97,371 96,163 95,193 96,362 97,518 Total loans (3) 3,031,088 3,004,198 3,005,943 2,995,761 2,979,725 Total earning assets 3,666,363 3,645,464 3,651,530 3,687,111 3,637,253 Cash and due from banks 30,809 29,900 34,741 36,713 32,067 Allowance for credit losses (28,567 ) (28,122 ) (28,057 ) (27,473 ) (26,932 ) Goodwill and other intangible assets 123,994 124,225 124,459 124,926 124,926 Other assets 167,150 166,538 157,159 162,801 163,388 Total assets $ 3,959,749 $ 3,938,005 $ 3,939,832 $ 3,984,078 $ 3,930,702 Liabilities and shareholders' equity Deposits: Interest-bearing demand $ 858,657 $ 899,349 $ 916,314 $ 915,072 $ 885,091 Savings 542,950 552,231 552,932 579,090 602,724 Money market 355,731 390,720 365,142 358,742 423,013 Time 775,932 738,683 670,628 645,285 468,188 Total interest-bearing deposits 2,533,270 2,580,983 2,505,016 2,498,189 2,379,016 Borrowings 378,121 298,918 347,459 391,976 466,402 Total interest-bearing liabilities 2,911,391 2,879,901 2,852,475 2,890,165 2,845,418 Non-interest-bearing demand deposits 546,448 554,816 604,638 610,644 608,180 Other liabilities 65,712 67,327 64,092 72,409 64,346 Total liabilities 3,523,551 3,502,044 3,521,205 3,573,218 3,517,944 Total shareholders' equity 436,198 435,961 418,627 410,860 412,758 Total liabilities and shareholders' equity $ 3,959,749 $ 3,938,005 $ 3,939,832 $ 3,984,078 $ 3,930,702 __________________________________ (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. G BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $ 551 $ 578 $ 610 $ 867 $ 909 Commercial and industrial 1,301 1,152 363 1,595 1,814 Residential real estate 3,511 4,169 3,742 3,673 3,415 Consumer 914 971 813 635 565 Total non-accruing loans 6,277 6,870 5,528 6,770 6,703 Other real estate owned - - - - - Total non-performing assets $ 6,277 $ 6,870 $ 5,528 $ 6,770 $ 6,703 Total non-accruing loans/total loans 0.20 % 0.23 % 0.18 % 0.23 % 0.22 % Total non-performing assets/total assets 0.16 0.17 0.14 0.17 0.17 PROVISION AND ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $ 28,355 $ 28,142 $ 28,011 $ 27,362 $ 26,607 Charged-off loans (106 ) (113 ) (632 ) (74 ) (199 ) Recoveries on charged-off loans 21 37 76 50 204 Net loans (charged-off) recovered (85 ) (76 ) (556 ) (24 ) 5 Provision for credit losses 585 289 687 673 750 Balance at end of period $ 28,855 $ 28,355 $ 28,142 $ 28,011 $ 27,362 Allowance for credit losses/total loans 0.94 % 0.94 % 0.94 % 0.94 % 0.91 % Allowance for credit losses/non-accruing loans 460 413 509 414 408 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $ - $ (3 ) $ - $ - $ (72 ) Commercial and industrial (2 ) (64 ) (479 ) 34 139 Residential real estate 3 5 3 13 3 Consumer (86 ) (14 ) (80 ) (71 ) (65 ) Total, net $ (85 ) $ (76 ) $ (556 ) $ (24 ) $ 5 Net charge-offs (recoveries) (QTD annualized)/average loans 0.01 % 0.01 % 0.07 % - % - % Net charge-offs (recoveries) (YTD annualized)/average loans 0.01 0.01 0.02 0.01 - DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS 30-89 Days delinquent 0.10 % 0.14 % 0.11 % 0.13 % 0.09 % 90+ Days delinquent and still accruing - - 0.01 0.03 0.02 Total accruing delinquent loans 0.10 0.14 0.12 0.16 0.11 Non-accruing loans 0.20 0.23 0.18 0.23 0.22 Total delinquent and non-accruing loans 0.30 % 0.37 % 0.30 % 0.39 % 0.33 % H BAR HARBOR BANKSHARESRECONCILIATION 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) 2024 2024 2023 2023 2023 Net income $ 10,257 $ 10,095 $ 9,945 $ 11,104 $ 10,791 Non-core items: Gain on sale of securities, net (50 ) - - - - (Gain) loss on sale of premises and equipment, net (248 ) (15 ) 281 - (86 ) Acquisition, conversion and other expenses - 20 263 - - Income tax expense (1) 71 (1 ) (131 ) - 20 Total non-core items (227 ) 4 413 - (66 ) Core earnings (2) (A) $ 10,030 $ 10,099 $ 10,358 $ 11,104 $ 10,725 Net interest income (B) $ 27,759 $ 28,055 $ 28,793 $ 29,186 $ 28,790 Non-interest income 9,633 8,586 8,850 8,815 8,980 Total revenue 37,392 36,641 37,643 38,001 37,770 Gain on sale of securities, net (50 ) - - - - Total core revenue (2) (C) $ 37,342 $ 36,641 $ 37,643 $ 38,001 $ 37,770 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Non-core expenses: Gain (loss) on sale of premises and equipment, net 248 15 (281 ) - 86 Acquisition, conversion and other expenses - (20 ) (263 ) - - Total non-core expenses 248 (5 ) (544 ) - 86 Core non-interest expense (2) (D) $ 24,266 $ 23,683 $ 23,823 $ 23,016 $ 23,478 Total revenue 37,392 36,641 37,643 38,001 37,770 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Pre-tax, pre-provision net revenue $ 13,374 $ 12,953 $ 13,276 $ 14,985 $ 14,378 Core revenue(2) 37,342 36,641 37,643 38,001 37,770 Core non-interest expense(2) 24,266 23,683 23,823 23,016 23,478 Core pre-tax, pre-provision net revenue(2) (U) $ 13,076 $ 12,958 $ 13,820 $ 14,985 $ 14,292 (in millions) Average earning assets (E) $ 3,666 $ 3,645 $ 3,652 $ 3,687 $ 3,637 Average assets (F) 3,960 3,938 3,940 3,984 3,931 Average shareholders' equity (G) 436 436 419 411 413 Average tangible shareholders' equity (2) (3) (H) 312 312 294 286 288 Tangible shareholders' equity, period-end (2) (3) (I) 315 312 308 280 286 Tangible assets, period-end (2) (3) (J) 3,910 3,835 3,847 3,859 3,904 I BAR HARBOR BANKSHARESRECONCILIATION 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) 2024 2024 2023 2023 2023 Common shares outstanding, period-end (K) 15,232 15,212 15,172 15,156 15,144 Average diluted shares outstanding (L) 15,275 15,270 15,221 15,196 15,180 Core earnings per share, diluted (2) (A/L) $ 0.66 $ 0.66 $ 0.68 $ 0.73 $ 0.71 Tangible book value per share, period-end (2) (I/K) 20.68 20.48 20.28 18.45 18.88 Securities adjustment, net of tax (1) (4) (M) (52,313 ) (49,633 ) (47,649 ) (66,530 ) (55,307 ) Tangible book value per share, excluding securities adjustment (2) (4) (I+M)/K 24.12 23.75 23.42 22.84 22.53 Tangible shareholders' equity/total tangible assets (2) (I/J) 8.06 8.13 8.00 7.25 7.32 Performance ratios (5) GAAP return on assets 1.04 % 1.03 % 1.00 % 1.11 % 1.10 % Core return on assets (2) (A/F) 1.02 1.03 1.04 1.11 1.09 Pre-tax, pre-provision return on assets 1.36 1.32 1.34 1.49 1.47 Core pre-tax, pre-provision return on assets (2) (U/F) 1.33 1.32 1.39 1.49 1.46 GAAP return on equity 9.46 9.31 9.43 10.72 10.49 Core return on equity (2) (A/G) 9.25 9.32 9.82 10.72 10.42 Return on tangible equity 13.44 13.25 13.65 15.65 15.28 Core return on tangible equity (1) (2) (A+Q)/H 13.15 13.26 14.21 15.65 15.19 Efficiency ratio (2) (6) (D-O-Q)/(C+N) 62.96 62.91 61.38 58.59 60.25 Net interest margin, fully taxable equivalent (2) (B+P)/E 3.09 3.14 3.17 3.18 3.22 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio (N) $ 528 $ 523 $ 561 $ 565 $ 539 Franchise taxes included in non-interest expense (O) 191 70 141 186 163 Tax equivalent adjustment for net interest margin (P) 389 388 395 405 382 Intangible amortization (Q) 233 233 233 233 233 ______________________________ (1) Assumes a marginal tax rate of 23.82% in the second quarter 2024, 24.01% in the first quarter 2024 and the fourth quarter 2023, and 23.80% in the first three quarters of 2023. (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. SOURCE: Bar Harbor Bank & Trust View the original press release on accesswire.com Stock Quote API & Stock News API supplied by www.cloudquote.io 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 2024 Results; Declares Dividend By: ACCESSWIRE July 18, 2024 at 12:15 PM EDT BAR HARBOR, ME / ACCESSWIRE / July 18, 2024 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") reported second quarter 2024 GAAP net income of $10.3 million and $0.67 per diluted share and core (Non-GAAP) net income of $10.0 million or $0.66 per diluted share compared to GAAP and core (Non-GAAP) net income $10.8 million or $0.71 per diluted share in the same quarter of 2023. SECOND QUARTER 2024 HIGHLIGHTS Return on assets of 1.04% Commercial loan growth of 14% annualized Net interest margin ("NIM") of 3.09% Non-accruing loans to total loans ratio of 0.20% 14% growth in trust and investment fee income Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, "We delivered another solid quarter, demonstrating our commitment to consistent, sustainable long-term performance. Our continued perseverance is seen in our results as we have been able to defend our NIM relative to our peers. Our wealth management team continues to perform well with strong client retention and new client acquisitions of over $100.0 million which will fund over the next several quarters. I am proud of our teamwork, dedication to risk management, and purposeful expense control, which when paired with our strong calling culture will continue to drive our success in the second half of the year." DIVIDEND DECLAREDThe Board of Directors of the Company voted to declare a cash dividend of $0.30 per share to shareholders of record at the close of business on August 15, 2024 payable on September 13, 2024. This dividend equates to a 4.46% annualized yield based on the $26.88 closing share price of the Company's common stock on June 28, 2024, the last trading day of the second quarter 2024. FINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)Total assets grew $75.2 million at the end of the second quarter 2024 compared to the first quarter 2024 primarily due to loan growth and higher cash balances, partially offset by lower securities available for sale at the end of the second quarter. Total cash and cash equivalents were $101.8 million, compared to $76.2 million at end of the first quarter 2024. Interest-earning deposits held with other banks totaled $62.2 million compared to $45.4 million at end of the first quarter and yielded 5.65% and 5.88%, respectively. Total loans grew $52.5 million or 7% on an annualized basis. Commercial loans grew by $68.6 million or 14% annualized primarily driven by a $59.9 million, or 15% increase in commercial real estate and a $8.7 million, or 8%, increase in commercial and industrial loans. Residential loans decreased by $18.5 million, or 8% annualized, compared to the first quarter 2024 as we continue to focus on our held-for-sale mortgage business and allocate portfolio balances to higher yielding commercial loans. Consumer loans increased $3.9 million, or 16% annualized, driven by new home equity line originations in the second quarter 2024. Securities available for sale decreased to $512.9 million compared to $527.6 million in the first quarter 2024 driven by pay downs of $22.0 million, called securities of $3.5 million, matured securities of $3.0 million and net amortization of $408 thousand, partially offset by security purchases of $18.1 million. Federal Home Loan Bank ("FHLB") stock increased to $14.8 million in the second quarter 2024 compared to $10.0 million in the first quarter 2024 driven by higher FHLB borrowings. Fair value adjustments decreased the security portfolio by $68.5 million at quarter-end of this quarter compared to $64.9 million at the end of the first quarter. The weighted average yield of the total securities portfolio for the second quarter 2024 was 4.00% compared to 4.02% at the end of the previous quarter primarily due to a run-off of lower coupon fixed-rate securities. As of the end of the first and second quarters 2024, respectively, our securities portfolio maintained an average life of nine years with an effective duration of five years and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise. The allowance for credit losses increased $500 thousand to $28.9 million at the end of the second quarter 2024 compared to $28.4 million at the end of the first quarter 2024. Our allowance for credit losses continues to be driven by a combination of portfolio loan growth, nominal credit movement and general macroeconomic trends. Non-accruing loans decreased during the second quarter 2024 to $6.3 million from $6.9 million in the first quarter 2024. Charge-offs and specific reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values. Total deposits remained at $3.1 billion at the end of the second quarter 2024. We continued to see a shift from non-maturity deposits to certificate of deposit accounts ("CDs"), as CDs increased $23.9 million in the second quarter versus the first quarter 2024. The increase was primarily driven by $6.8 million in personal CDs, $6.4 million in brokered deposits, $6.3 million in non-personal CDs, and $4.4 million in Certificate of Deposit Account Registry Service, also known as CDARS, deposits. Non-maturity deposits decreased 2% on an annualized basis or $10.6 million. Senior borrowings increased $59.9 million to $329.3 million from the first quarter 2024 driven by funding loan growth and liquidity. The Company's book value per share was $28.81 as of June 30, 2024 compared to $28.64 as of March 31, 2024. Unrealized losses on securities, net of taxes, reduced book value per share by $3.44 and $3.26 at the end of those respective periods. Tangible book value per share (Non-GAAP) was $20.68 at the end of the second quarter 2024, compared to $20.48 at the end of the first quarter 2024. RESULTS OF OPERATIONS (June 30, 2024 compared to June 30, 2023)Net interest margin was 3.09% compared to 3.22% in the second quarter 2023. The decrease was primarily driven by higher cost of funds, partially offset by lower borrowing costs. The yield on loans grew 42 basis points to 5.41% in the second quarter 2024, up from 4.99% in the same quarter 2023. Costs of interest-bearing deposits increased to 2.35% from 1.45% in the second quarter 2023 driven by the competitive pricing within the interest rate environment and change in deposit mix as we continue to experience a shift from non-maturity deposits to CDs. Borrowings decreased $69.5 million from the second quarter 2023 compounded with a 16 basis point decrease in yields on interest bearing liabilities to 4.57% in the second quarter 2024. Total interest and dividend income increased by 9.2% to $46.8 million in the second quarter 2023 primarily driven by the repricing of adjustable-rate loans and originations of higher fixed-rate loans within the commercial portfolio. The yield on commercial real estate loans grew to 5.61% at the end of the second quarter 2024 from 5.21% in the second quarter 2023. Commercial and industrial yield grew to 6.76% at the end of the second quarter 2024 compared to 6.42% at the end of the second quarter 2023. Yields on earning assets continue to grow to 5.18% compared to 4.77% in the second quarter 2023. The provision for credit losses was $585 thousand compared to $750 thousand in the second quarter 2023 as net charge-offs to total loans continue to remain nominal. Credit quality continues to be strong as non-accruing loans to total loans was 0.20% at the end of the second quarter 2024 compared to 0.22% in the second quarter 2023. Total delinquent and non-accruing loans to total loans was 0.30% at the end of the second quarter 2024 to compared to 0.33% in the second quarter 2023. Non-interest income was $9.6 million in the second quarter 2024 compared to $9.0 million in the same quarter 2023. Wealth management income grew 10% to $4.2 million compared to $3.8 million in the in the second quarter 2023. Assets under management grew 12% in the second quarter 2024 to $2.6 billion from $2.3 billion in the second quarter 2023 driven by higher security valuations and a 2% growth in the managed accounts. Mortgage banking income increased $180 thousand compared to the second quarter 2023 driven by increased margins on our held-for-sale mortgage business. Non-interest expense was $24.0 million in the second quarter 2024 compared to $23.4 million in the second quarter 2023 driven by salary and benefits, and other expenses, partially offset by the gain on sale of our Avery Lane office and lower professional services fees. Salary and benefit expenses increased 5%, or $637 thousand, from the comparative quarter 2023 driven in part by stock compensation due to increases in stock price and lower loan origination fee deferrals in the second quarter 2024. Other expenses increased to $4.4 million from $4.2 million in the second quarter 2023 primarily due to increases in charitable contributions to the community, software expenses, and debit and ATM card expenses. 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 Bank & Trust 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 STATEMENTSAll statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this release the words "believe," "anticipate," "expect," "may," "will," "assume," "should," "predict," "could," "would," "intend," "targets," "estimates," "projects," "plans," and "potential," and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements relating to Company's balance sheet management, our credit trends, our overall credit performance, and the Company's strategic plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (2) changes in consumer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (4) the impact of liquidity needs on our results of operations and financial condition; (5) changes in the size and nature of our competition; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand, pricing or collectability; (8) the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; (9) operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, climate change, war, terrorism, civil unrest, and future pandemics; (10) lack of strategic growth opportunities or our failure to execute on available opportunities; (11) our ability to effectively manage problem credits; (12) our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; (13) our ability to retain executive officers and key employees and their customer and community relationships; (14) regulatory, litigation, and reputational risks and the applicability of insurance coverage; (15) changes in the reliability of our vendors, internal control systems or information systems; (16) the potential impact of climate change; (17) changes in legislation or regulation and accounting principles, policies, and guidelines; (18) reductions in the market value or outflows of wealth management assets under management; and (19) changes in the assumptions used in making such forward-looking statements. Additional factors which could affect the forward-looking statements can be found in the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the "SEC") and available on the SEC's website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company's ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement. NON-GAAP FINANCIAL 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. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. 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. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense. The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community. ### CONTACTS Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEX CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) A Selected Financial Highlights B Balance Sheets C Loan and Deposit Analysis D Statements of Income E Statements of Income (Five Quarter Trend) F Average Yields and Costs G Average Balances H Asset Quality Analysis I-J Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data BAR HARBOR BANKSHARESSELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2024 2024 2023 2023 2023 PER SHARE DATA Net earnings, diluted $ 0.67 $ 0.66 $ 0.65 $ 0.73 $ 0.71 Core earnings, diluted (1) 0.66 0.66 0.68 0.73 0.71 Total book value 28.81 28.64 28.48 26.67 27.12 Tangible book value (1) 20.68 20.48 20.28 18.45 18.88 Market price at period end 26.88 26.48 29.36 23.63 24.64 Dividends 0.30 0.28 0.28 0.28 0.28 PERFORMANCE RATIOS (2) Return on assets 1.04 % 1.03 % 1.00 % 1.11 % 1.10 % Core return on assets (1) 1.02 1.03 1.04 1.11 1.09 Pre-tax, pre-provision return on assets 1.36 1.32 1.34 1.49 1.47 Core pre-tax, pre-provision return on assets (1) 1.33 1.32 1.39 1.49 1.46 Return on equity 9.46 9.31 9.43 10.72 10.49 Core return on equity (1) 9.25 9.32 9.82 10.72 10.42 Return on tangible equity 13.44 13.25 13.65 15.65 15.28 Core return on tangible equity (1) 13.15 13.26 14.21 15.65 15.19 Net interest margin, fully taxable equivalent (1) (3) 3.09 3.14 3.17 3.18 3.22 Efficiency ratio (1) 62.96 62.91 61.38 58.59 60.25 FINANCIAL DATA (In millions) Total assets $ 4,034 $ 3,959 $ 3,971 $ 3,984 $ 4,029 Total earning assets (4) 3,726 3,663 3,664 3,687 3,716 Total investments 528 538 547 524 556 Total loans 3,064 3,012 2,999 2,993 3,007 Allowance for credit losses 29 28 28 28 27 Total goodwill and intangible assets 124 124 124 125 125 Total deposits 3,140 3,127 3,141 3,140 3,090 Total shareholders' equity 439 436 432 404 411 Net income 10 10 10 11 11 Core earnings (1) 10 10 10 11 11 ASSET QUALITY AND CONDITION RATIOS Net charge-offs (recoveries)(5)/average loans 0.01 % 0.01 % 0.07 % - % - % Allowance for credit losses/total loans 0.94 0.94 0.94 0.94 0.91 Loans/deposits 98 96 95 95 97 Shareholders' equity to total assets 10.88 11.01 10.88 10.15 10.20 Tangible shareholders' equity to tangible assets 8.06 8.13 8.00 7.25 7.32 ____________________________________ (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables 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) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.(5) Current quarter annualized. A BAR HARBOR BANKSHARESCONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 Assets Cash and due from banks $ 39,673 $ 30,770 $ 42,221 $ 41,210 $ 46,532 Interest-earning deposits with other banks 62,163 45,449 52,621 81,606 77,253 Total cash and cash equivalents 101,836 76,219 94,842 122,816 123,785 Securities available for sale 512,928 527,603 534,574 509,453 538,178 Federal Home Loan Bank stock 14,755 9,960 12,788 14,834 17,784 Total securities 527,683 537,563 547,362 524,287 555,962 Loans held for sale 3,897 3,137 2,189 2,016 3,669 Total loans 3,064,181 3,011,672 2,999,049 2,992,791 3,007,480 Less: Allowance for credit losses (28,855 ) (28,355 ) (28,142 ) (28,011 ) (27,362 ) Net loans 3,035,326 2,983,317 2,970,907 2,964,780 2,980,118 Premises and equipment, net 51,628 47,849 48,287 47,790 47,412 Other real estate owned - - - - - Goodwill 119,477 119,477 119,477 119,477 119,477 Other intangible assets 4,404 4,637 4,869 5,102 5,335 Cash surrender value of bank-owned life insurance 81,221 80,642 80,037 79,469 78,967 Deferred tax asset, net 24,750 23,849 22,979 28,328 24,181 Other assets 83,978 82,285 79,936 89,876 89,641 Total assets $ 4,034,200 $ 3,958,975 $ 3,970,885 $ 3,983,941 $ 4,028,547 Liabilities and shareholders' equity Non-interest bearing demand $ 553,067 $ 544,495 $ 569,714 $ 618,421 $ 602,667 Interest-bearing demand 882,068 888,591 946,978 929,481 911,488 Savings 544,980 551,493 553,963 572,271 588,769 Money market 359,208 365,289 370,242 361,839 351,762 Time 801,143 777,208 700,260 658,482 635,559 Total deposits 3,140,466 3,127,076 3,141,157 3,140,494 3,090,245 Senior borrowings 329,349 269,437 271,044 307,070 398,972 Subordinated borrowings 60,541 60,501 60,461 60,422 60,371 Total borrowings 389,890 329,938 331,505 367,492 459,343 Other liabilities 64,937 66,247 66,164 71,747 68,243 Total liabilities 3,595,293 3,523,261 3,538,826 3,579,733 3,617,831 Total shareholders' equity 438,907 435,714 432,059 404,208 410,716 Total liabilities and shareholders' equity $ 4,034,200 $ 3,958,975 $ 3,970,885 $ 3,983,941 $ 4,028,547 Net shares outstanding 15,232 15,212 15,172 15,156 15,144 B BAR HARBOR BANKSHARESCONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED LOAN ANALYSIS Annualized Growth % Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Quarter Year (in thousands) 2024 2024 2023 2023 2023 to Date to Date Commercial real estate $ 1,634,658 $ 1,574,802 $ 1,552,061 $ 1,548,835 $ 1,551,748 15 % 11 % Commercial and industrial 421,297 412,567 400,169 391,347 388,430 8 11 Total commercial loans 2,055,955 1,987,369 1,952,230 1,940,182 1,940,178 14 11 Residential real estate 854,718 873,213 889,904 896,757 907,741 (8 ) (7 ) Consumer 99,776 95,838 97,001 95,160 96,947 16 6 Tax exempt and other 53,732 55,252 59,914 60,692 62,614 (11 ) (21 ) Total loans $ 3,064,181 $ 3,011,672 $ 2,999,049 $ 2,992,791 $ 3,007,480 7 % 4 % DEPOSIT ANALYSIS Annualized Growth % Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Quarter Year (in thousands) 2024 2024 2023 2023 2023 to Date to Date Non-interest bearing demand $ 553,067 $ 544,495 $ 569,714 $ 618,421 $ 602,667 6 % (6 )% Interest-bearing demand 882,068 888,591 946,978 929,481 911,488 (3 ) (14 ) Savings 544,980 551,493 553,963 572,271 588,769 (5 ) (3 ) Money market 359,208 365,289 370,242 361,839 351,762 (7 ) (6 ) Total non-maturity deposits 2,339,323 2,349,868 2,440,897 2,482,012 2,454,686 (2 ) (8 ) Time 801,143 777,208 700,260 658,482 635,559 12 29 Total deposits $ 3,140,466 $ 3,127,076 $ 3,141,157 $ 3,140,494 $ 3,090,245 2 % - % C BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2024 2023 2024 2023 Interest and dividend income Loans $ 40,634 $ 36,917 $ 80,104 $ 71,477 Securities and other 6,204 5,964 12,557 11,755 Total interest and dividend income 46,838 42,881 92,661 83,232 Interest expense Deposits 14,780 8,590 29,312 13,855 Borrowings 4,299 5,501 7,535 9,681 Total interest expense 19,079 14,091 36,847 23,536 Net interest income 27,759 28,790 55,814 59,696 Provision for credit losses 585 750 874 1,548 Net interest income after provision for credit losses 27,174 28,040 54,940 58,148 Non-interest income Trust and investment management fee income 4,193 3,805 7,863 7,360 Customer service fees 3,737 3,774 7,447 7,451 Gain on sales of securities, net 50 - 50 34 Mortgage banking income 558 378 815 657 Bank-owned life insurance income 583 503 1,144 1,651 Customer derivative income 168 83 168 215 Other income 344 437 732 796 Total non-interest income 9,633 8,980 18,219 18,164 Non-interest expense Salaries and employee benefits 13,860 13,223 27,108 25,994 Occupancy and equipment 4,382 4,392 8,855 8,806 Gain on sales of premises and equipment, net (248 ) (86 ) (263 ) (99 ) Outside services 462 424 800 780 Professional services 238 355 638 781 Communication 192 175 381 337 Marketing 521 476 1,088 885 Amortization of intangible assets 233 233 466 466 Acquisition, conversion and other expenses - - 20 20 Provision for unfunded commitments - 45 (185 ) (130 ) Other expenses 4,378 4,155 8,798 8,256 Total non-interest expense 24,018 23,392 47,706 46,096 Income before income taxes 12,789 13,628 25,453 30,216 Income tax expense 2,532 2,837 5,101 6,413 Net income $ 10,257 $ 10,791 $ 20,352 $ 23,803 Earnings per share: Basic $ 0.67 $ 0.71 $ 1.34 $ 1.57 Diluted 0.67 0.71 1.33 1.57 Weighted average shares outstanding: Basic 15,227 15,139 15,213 15,125 Diluted 15,275 15,180 15,273 15,186 D BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2024 2024 2023 2023 2023 Interest and dividend income Loans $ 40,634 $ 39,470 $ 39,531 $ 38,412 $ 36,917 Securities and other 6,204 6,353 6,284 6,723 5,964 Total interest and dividend income 46,838 45,823 45,815 45,135 42,881 Interest expense Deposits 14,780 14,532 12,962 11,415 8,590 Borrowings 4,299 3,236 4,060 4,534 5,501 Total interest expense 19,079 17,768 17,022 15,949 14,091 Net interest income 27,759 28,055 28,793 29,186 28,790 Provision for credit losses 585 289 687 673 750 Net interest income after provision for credit losses 27,174 27,766 28,106 28,513 28,040 Non-interest income Trust and investment management fee income 4,193 3,670 3,401 3,522 3,805 Customer service fees 3,737 3,710 3,791 3,926 3,774 Gain on sales of securities, net 50 - - - - Mortgage banking income 558 257 515 415 378 Bank-owned life insurance income 583 561 533 515 503 Customer derivative income 168 - 151 43 83 Other income 344 388 459 394 437 Total non-interest income 9,633 8,586 8,850 8,815 8,980 Non-interest expense Salaries and employee benefits 13,860 13,248 13,511 13,011 13,223 Occupancy and equipment 4,382 4,473 4,309 4,469 4,392 (Gain) loss on sales of premises and equipment, net (248 ) (15 ) 281 - (86 ) Outside services 462 338 515 376 424 Professional services 238 400 369 436 355 Communication 192 189 190 170 175 Marketing 521 567 485 326 476 Amortization of intangible assets 233 233 233 233 233 Acquisition, conversion and other expenses - 20 263 - - Provision for unfunded commitments - (185 ) - 45 45 Other expenses 4,378 4,420 4,211 3,950 4,155 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Income before income taxes 12,789 12,664 12,589 14,312 13,628 Income tax expense 2,532 2,569 2,644 3,208 2,837 Net income $ 10,257 $ 10,095 $ 9,945 $ 11,104 $ 10,791 Earnings per share: Basic $ 0.67 $ 0.66 $ 0.66 $ 0.73 $ 0.71 Diluted 0.67 0.66 0.65 0.73 0.71 Weighted average shares outstanding: Basic 15,227 15,198 15,164 15,155 15,139 Diluted 15,275 15,270 15,221 15,196 15,180 E BAR HARBOR BANKSHARESAVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2024 2024 2023 2023 2023 Earning assets Interest-earning deposits with other banks 5.65 % 5.88 % 6.42 % 5.02 % 5.59 % Securities available for sale and FHLB stock 4.00 4.02 3.85 3.87 3.71 Loans: Commercial real estate 5.61 5.47 5.46 5.34 5.21 Commercial and industrial 6.76 6.68 6.66 6.56 6.42 Residential real estate 4.13 4.09 3.94 3.84 3.76 Consumer 7.26 7.22 7.14 6.88 6.67 Total loans 5.41 5.31 5.24 5.11 4.99 Total earning assets 5.18 % 5.10 % 5.02 % 4.90 % 4.77 % Funding liabilities Deposits: Interest-bearing demand 1.39 % 1.34 % 1.33 % 1.11 % 0.94 % Savings 0.65 0.63 0.48 0.42 0.37 Money market 2.93 3.07 2.80 2.55 2.52 Time 4.33 4.18 3.93 3.65 2.82 Total interest-bearing deposits 2.35 2.26 2.05 1.81 1.45 Borrowings 4.57 4.35 4.64 4.59 4.73 Total interest-bearing liabilities 2.64 % 2.48 % 2.37 % 2.19 % 1.99 % Net interest spread 2.54 2.62 2.65 2.71 2.78 Net interest margin, fully taxable equivalent(1) 3.09 3.14 3.17 3.18 3.22 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. F BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 Assets Interest-earning deposits with other banks (1) $ 27,407 $ 36,608 $ 36,794 $ 70,499 $ 21,440 Securities available for sale and FHLB stock (2) 607,868 604,658 608,793 620,851 636,088 Loans: Commercial real estate 1,600,253 1,558,506 1,554,961 1,550,188 1,536,035 Commercial and industrial 468,052 464,762 457,642 439,915 434,384 Residential real estate 865,412 884,767 898,147 909,296 911,788 Consumer 97,371 96,163 95,193 96,362 97,518 Total loans (3) 3,031,088 3,004,198 3,005,943 2,995,761 2,979,725 Total earning assets 3,666,363 3,645,464 3,651,530 3,687,111 3,637,253 Cash and due from banks 30,809 29,900 34,741 36,713 32,067 Allowance for credit losses (28,567 ) (28,122 ) (28,057 ) (27,473 ) (26,932 ) Goodwill and other intangible assets 123,994 124,225 124,459 124,926 124,926 Other assets 167,150 166,538 157,159 162,801 163,388 Total assets $ 3,959,749 $ 3,938,005 $ 3,939,832 $ 3,984,078 $ 3,930,702 Liabilities and shareholders' equity Deposits: Interest-bearing demand $ 858,657 $ 899,349 $ 916,314 $ 915,072 $ 885,091 Savings 542,950 552,231 552,932 579,090 602,724 Money market 355,731 390,720 365,142 358,742 423,013 Time 775,932 738,683 670,628 645,285 468,188 Total interest-bearing deposits 2,533,270 2,580,983 2,505,016 2,498,189 2,379,016 Borrowings 378,121 298,918 347,459 391,976 466,402 Total interest-bearing liabilities 2,911,391 2,879,901 2,852,475 2,890,165 2,845,418 Non-interest-bearing demand deposits 546,448 554,816 604,638 610,644 608,180 Other liabilities 65,712 67,327 64,092 72,409 64,346 Total liabilities 3,523,551 3,502,044 3,521,205 3,573,218 3,517,944 Total shareholders' equity 436,198 435,961 418,627 410,860 412,758 Total liabilities and shareholders' equity $ 3,959,749 $ 3,938,005 $ 3,939,832 $ 3,984,078 $ 3,930,702 __________________________________ (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. G BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $ 551 $ 578 $ 610 $ 867 $ 909 Commercial and industrial 1,301 1,152 363 1,595 1,814 Residential real estate 3,511 4,169 3,742 3,673 3,415 Consumer 914 971 813 635 565 Total non-accruing loans 6,277 6,870 5,528 6,770 6,703 Other real estate owned - - - - - Total non-performing assets $ 6,277 $ 6,870 $ 5,528 $ 6,770 $ 6,703 Total non-accruing loans/total loans 0.20 % 0.23 % 0.18 % 0.23 % 0.22 % Total non-performing assets/total assets 0.16 0.17 0.14 0.17 0.17 PROVISION AND ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $ 28,355 $ 28,142 $ 28,011 $ 27,362 $ 26,607 Charged-off loans (106 ) (113 ) (632 ) (74 ) (199 ) Recoveries on charged-off loans 21 37 76 50 204 Net loans (charged-off) recovered (85 ) (76 ) (556 ) (24 ) 5 Provision for credit losses 585 289 687 673 750 Balance at end of period $ 28,855 $ 28,355 $ 28,142 $ 28,011 $ 27,362 Allowance for credit losses/total loans 0.94 % 0.94 % 0.94 % 0.94 % 0.91 % Allowance for credit losses/non-accruing loans 460 413 509 414 408 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $ - $ (3 ) $ - $ - $ (72 ) Commercial and industrial (2 ) (64 ) (479 ) 34 139 Residential real estate 3 5 3 13 3 Consumer (86 ) (14 ) (80 ) (71 ) (65 ) Total, net $ (85 ) $ (76 ) $ (556 ) $ (24 ) $ 5 Net charge-offs (recoveries) (QTD annualized)/average loans 0.01 % 0.01 % 0.07 % - % - % Net charge-offs (recoveries) (YTD annualized)/average loans 0.01 0.01 0.02 0.01 - DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS 30-89 Days delinquent 0.10 % 0.14 % 0.11 % 0.13 % 0.09 % 90+ Days delinquent and still accruing - - 0.01 0.03 0.02 Total accruing delinquent loans 0.10 0.14 0.12 0.16 0.11 Non-accruing loans 0.20 0.23 0.18 0.23 0.22 Total delinquent and non-accruing loans 0.30 % 0.37 % 0.30 % 0.39 % 0.33 % H BAR HARBOR BANKSHARESRECONCILIATION 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) 2024 2024 2023 2023 2023 Net income $ 10,257 $ 10,095 $ 9,945 $ 11,104 $ 10,791 Non-core items: Gain on sale of securities, net (50 ) - - - - (Gain) loss on sale of premises and equipment, net (248 ) (15 ) 281 - (86 ) Acquisition, conversion and other expenses - 20 263 - - Income tax expense (1) 71 (1 ) (131 ) - 20 Total non-core items (227 ) 4 413 - (66 ) Core earnings (2) (A) $ 10,030 $ 10,099 $ 10,358 $ 11,104 $ 10,725 Net interest income (B) $ 27,759 $ 28,055 $ 28,793 $ 29,186 $ 28,790 Non-interest income 9,633 8,586 8,850 8,815 8,980 Total revenue 37,392 36,641 37,643 38,001 37,770 Gain on sale of securities, net (50 ) - - - - Total core revenue (2) (C) $ 37,342 $ 36,641 $ 37,643 $ 38,001 $ 37,770 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Non-core expenses: Gain (loss) on sale of premises and equipment, net 248 15 (281 ) - 86 Acquisition, conversion and other expenses - (20 ) (263 ) - - Total non-core expenses 248 (5 ) (544 ) - 86 Core non-interest expense (2) (D) $ 24,266 $ 23,683 $ 23,823 $ 23,016 $ 23,478 Total revenue 37,392 36,641 37,643 38,001 37,770 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Pre-tax, pre-provision net revenue $ 13,374 $ 12,953 $ 13,276 $ 14,985 $ 14,378 Core revenue(2) 37,342 36,641 37,643 38,001 37,770 Core non-interest expense(2) 24,266 23,683 23,823 23,016 23,478 Core pre-tax, pre-provision net revenue(2) (U) $ 13,076 $ 12,958 $ 13,820 $ 14,985 $ 14,292 (in millions) Average earning assets (E) $ 3,666 $ 3,645 $ 3,652 $ 3,687 $ 3,637 Average assets (F) 3,960 3,938 3,940 3,984 3,931 Average shareholders' equity (G) 436 436 419 411 413 Average tangible shareholders' equity (2) (3) (H) 312 312 294 286 288 Tangible shareholders' equity, period-end (2) (3) (I) 315 312 308 280 286 Tangible assets, period-end (2) (3) (J) 3,910 3,835 3,847 3,859 3,904 I BAR HARBOR BANKSHARESRECONCILIATION 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) 2024 2024 2023 2023 2023 Common shares outstanding, period-end (K) 15,232 15,212 15,172 15,156 15,144 Average diluted shares outstanding (L) 15,275 15,270 15,221 15,196 15,180 Core earnings per share, diluted (2) (A/L) $ 0.66 $ 0.66 $ 0.68 $ 0.73 $ 0.71 Tangible book value per share, period-end (2) (I/K) 20.68 20.48 20.28 18.45 18.88 Securities adjustment, net of tax (1) (4) (M) (52,313 ) (49,633 ) (47,649 ) (66,530 ) (55,307 ) Tangible book value per share, excluding securities adjustment (2) (4) (I+M)/K 24.12 23.75 23.42 22.84 22.53 Tangible shareholders' equity/total tangible assets (2) (I/J) 8.06 8.13 8.00 7.25 7.32 Performance ratios (5) GAAP return on assets 1.04 % 1.03 % 1.00 % 1.11 % 1.10 % Core return on assets (2) (A/F) 1.02 1.03 1.04 1.11 1.09 Pre-tax, pre-provision return on assets 1.36 1.32 1.34 1.49 1.47 Core pre-tax, pre-provision return on assets (2) (U/F) 1.33 1.32 1.39 1.49 1.46 GAAP return on equity 9.46 9.31 9.43 10.72 10.49 Core return on equity (2) (A/G) 9.25 9.32 9.82 10.72 10.42 Return on tangible equity 13.44 13.25 13.65 15.65 15.28 Core return on tangible equity (1) (2) (A+Q)/H 13.15 13.26 14.21 15.65 15.19 Efficiency ratio (2) (6) (D-O-Q)/(C+N) 62.96 62.91 61.38 58.59 60.25 Net interest margin, fully taxable equivalent (2) (B+P)/E 3.09 3.14 3.17 3.18 3.22 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio (N) $ 528 $ 523 $ 561 $ 565 $ 539 Franchise taxes included in non-interest expense (O) 191 70 141 186 163 Tax equivalent adjustment for net interest margin (P) 389 388 395 405 382 Intangible amortization (Q) 233 233 233 233 233 ______________________________ (1) Assumes a marginal tax rate of 23.82% in the second quarter 2024, 24.01% in the first quarter 2024 and the fourth quarter 2023, and 23.80% in the first three quarters of 2023. (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. SOURCE: Bar Harbor Bank & Trust View the original press release on accesswire.com
BAR HARBOR, ME / ACCESSWIRE / July 18, 2024 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") reported second quarter 2024 GAAP net income of $10.3 million and $0.67 per diluted share and core (Non-GAAP) net income of $10.0 million or $0.66 per diluted share compared to GAAP and core (Non-GAAP) net income $10.8 million or $0.71 per diluted share in the same quarter of 2023. SECOND QUARTER 2024 HIGHLIGHTS Return on assets of 1.04% Commercial loan growth of 14% annualized Net interest margin ("NIM") of 3.09% Non-accruing loans to total loans ratio of 0.20% 14% growth in trust and investment fee income Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, "We delivered another solid quarter, demonstrating our commitment to consistent, sustainable long-term performance. Our continued perseverance is seen in our results as we have been able to defend our NIM relative to our peers. Our wealth management team continues to perform well with strong client retention and new client acquisitions of over $100.0 million which will fund over the next several quarters. I am proud of our teamwork, dedication to risk management, and purposeful expense control, which when paired with our strong calling culture will continue to drive our success in the second half of the year." DIVIDEND DECLAREDThe Board of Directors of the Company voted to declare a cash dividend of $0.30 per share to shareholders of record at the close of business on August 15, 2024 payable on September 13, 2024. This dividend equates to a 4.46% annualized yield based on the $26.88 closing share price of the Company's common stock on June 28, 2024, the last trading day of the second quarter 2024. FINANCIAL CONDITION (June 30, 2024 compared to March 31, 2024)Total assets grew $75.2 million at the end of the second quarter 2024 compared to the first quarter 2024 primarily due to loan growth and higher cash balances, partially offset by lower securities available for sale at the end of the second quarter. Total cash and cash equivalents were $101.8 million, compared to $76.2 million at end of the first quarter 2024. Interest-earning deposits held with other banks totaled $62.2 million compared to $45.4 million at end of the first quarter and yielded 5.65% and 5.88%, respectively. Total loans grew $52.5 million or 7% on an annualized basis. Commercial loans grew by $68.6 million or 14% annualized primarily driven by a $59.9 million, or 15% increase in commercial real estate and a $8.7 million, or 8%, increase in commercial and industrial loans. Residential loans decreased by $18.5 million, or 8% annualized, compared to the first quarter 2024 as we continue to focus on our held-for-sale mortgage business and allocate portfolio balances to higher yielding commercial loans. Consumer loans increased $3.9 million, or 16% annualized, driven by new home equity line originations in the second quarter 2024. Securities available for sale decreased to $512.9 million compared to $527.6 million in the first quarter 2024 driven by pay downs of $22.0 million, called securities of $3.5 million, matured securities of $3.0 million and net amortization of $408 thousand, partially offset by security purchases of $18.1 million. Federal Home Loan Bank ("FHLB") stock increased to $14.8 million in the second quarter 2024 compared to $10.0 million in the first quarter 2024 driven by higher FHLB borrowings. Fair value adjustments decreased the security portfolio by $68.5 million at quarter-end of this quarter compared to $64.9 million at the end of the first quarter. The weighted average yield of the total securities portfolio for the second quarter 2024 was 4.00% compared to 4.02% at the end of the previous quarter primarily due to a run-off of lower coupon fixed-rate securities. As of the end of the first and second quarters 2024, respectively, our securities portfolio maintained an average life of nine years with an effective duration of five years and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise. The allowance for credit losses increased $500 thousand to $28.9 million at the end of the second quarter 2024 compared to $28.4 million at the end of the first quarter 2024. Our allowance for credit losses continues to be driven by a combination of portfolio loan growth, nominal credit movement and general macroeconomic trends. Non-accruing loans decreased during the second quarter 2024 to $6.3 million from $6.9 million in the first quarter 2024. Charge-offs and specific reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values. Total deposits remained at $3.1 billion at the end of the second quarter 2024. We continued to see a shift from non-maturity deposits to certificate of deposit accounts ("CDs"), as CDs increased $23.9 million in the second quarter versus the first quarter 2024. The increase was primarily driven by $6.8 million in personal CDs, $6.4 million in brokered deposits, $6.3 million in non-personal CDs, and $4.4 million in Certificate of Deposit Account Registry Service, also known as CDARS, deposits. Non-maturity deposits decreased 2% on an annualized basis or $10.6 million. Senior borrowings increased $59.9 million to $329.3 million from the first quarter 2024 driven by funding loan growth and liquidity. The Company's book value per share was $28.81 as of June 30, 2024 compared to $28.64 as of March 31, 2024. Unrealized losses on securities, net of taxes, reduced book value per share by $3.44 and $3.26 at the end of those respective periods. Tangible book value per share (Non-GAAP) was $20.68 at the end of the second quarter 2024, compared to $20.48 at the end of the first quarter 2024. RESULTS OF OPERATIONS (June 30, 2024 compared to June 30, 2023)Net interest margin was 3.09% compared to 3.22% in the second quarter 2023. The decrease was primarily driven by higher cost of funds, partially offset by lower borrowing costs. The yield on loans grew 42 basis points to 5.41% in the second quarter 2024, up from 4.99% in the same quarter 2023. Costs of interest-bearing deposits increased to 2.35% from 1.45% in the second quarter 2023 driven by the competitive pricing within the interest rate environment and change in deposit mix as we continue to experience a shift from non-maturity deposits to CDs. Borrowings decreased $69.5 million from the second quarter 2023 compounded with a 16 basis point decrease in yields on interest bearing liabilities to 4.57% in the second quarter 2024. Total interest and dividend income increased by 9.2% to $46.8 million in the second quarter 2023 primarily driven by the repricing of adjustable-rate loans and originations of higher fixed-rate loans within the commercial portfolio. The yield on commercial real estate loans grew to 5.61% at the end of the second quarter 2024 from 5.21% in the second quarter 2023. Commercial and industrial yield grew to 6.76% at the end of the second quarter 2024 compared to 6.42% at the end of the second quarter 2023. Yields on earning assets continue to grow to 5.18% compared to 4.77% in the second quarter 2023. The provision for credit losses was $585 thousand compared to $750 thousand in the second quarter 2023 as net charge-offs to total loans continue to remain nominal. Credit quality continues to be strong as non-accruing loans to total loans was 0.20% at the end of the second quarter 2024 compared to 0.22% in the second quarter 2023. Total delinquent and non-accruing loans to total loans was 0.30% at the end of the second quarter 2024 to compared to 0.33% in the second quarter 2023. Non-interest income was $9.6 million in the second quarter 2024 compared to $9.0 million in the same quarter 2023. Wealth management income grew 10% to $4.2 million compared to $3.8 million in the in the second quarter 2023. Assets under management grew 12% in the second quarter 2024 to $2.6 billion from $2.3 billion in the second quarter 2023 driven by higher security valuations and a 2% growth in the managed accounts. Mortgage banking income increased $180 thousand compared to the second quarter 2023 driven by increased margins on our held-for-sale mortgage business. Non-interest expense was $24.0 million in the second quarter 2024 compared to $23.4 million in the second quarter 2023 driven by salary and benefits, and other expenses, partially offset by the gain on sale of our Avery Lane office and lower professional services fees. Salary and benefit expenses increased 5%, or $637 thousand, from the comparative quarter 2023 driven in part by stock compensation due to increases in stock price and lower loan origination fee deferrals in the second quarter 2024. Other expenses increased to $4.4 million from $4.2 million in the second quarter 2023 primarily due to increases in charitable contributions to the community, software expenses, and debit and ATM card expenses. 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 Bank & Trust 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 STATEMENTSAll statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this release the words "believe," "anticipate," "expect," "may," "will," "assume," "should," "predict," "could," "would," "intend," "targets," "estimates," "projects," "plans," and "potential," and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements relating to Company's balance sheet management, our credit trends, our overall credit performance, and the Company's strategic plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (2) changes in consumer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (4) the impact of liquidity needs on our results of operations and financial condition; (5) changes in the size and nature of our competition; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand, pricing or collectability; (8) the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; (9) operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, climate change, war, terrorism, civil unrest, and future pandemics; (10) lack of strategic growth opportunities or our failure to execute on available opportunities; (11) our ability to effectively manage problem credits; (12) our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; (13) our ability to retain executive officers and key employees and their customer and community relationships; (14) regulatory, litigation, and reputational risks and the applicability of insurance coverage; (15) changes in the reliability of our vendors, internal control systems or information systems; (16) the potential impact of climate change; (17) changes in legislation or regulation and accounting principles, policies, and guidelines; (18) reductions in the market value or outflows of wealth management assets under management; and (19) changes in the assumptions used in making such forward-looking statements. Additional factors which could affect the forward-looking statements can be found in the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the "SEC") and available on the SEC's website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company's ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement. NON-GAAP FINANCIAL 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. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. 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. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense. The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community. ### CONTACTS Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEX CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) A Selected Financial Highlights B Balance Sheets C Loan and Deposit Analysis D Statements of Income E Statements of Income (Five Quarter Trend) F Average Yields and Costs G Average Balances H Asset Quality Analysis I-J Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data BAR HARBOR BANKSHARESSELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2024 2024 2023 2023 2023 PER SHARE DATA Net earnings, diluted $ 0.67 $ 0.66 $ 0.65 $ 0.73 $ 0.71 Core earnings, diluted (1) 0.66 0.66 0.68 0.73 0.71 Total book value 28.81 28.64 28.48 26.67 27.12 Tangible book value (1) 20.68 20.48 20.28 18.45 18.88 Market price at period end 26.88 26.48 29.36 23.63 24.64 Dividends 0.30 0.28 0.28 0.28 0.28 PERFORMANCE RATIOS (2) Return on assets 1.04 % 1.03 % 1.00 % 1.11 % 1.10 % Core return on assets (1) 1.02 1.03 1.04 1.11 1.09 Pre-tax, pre-provision return on assets 1.36 1.32 1.34 1.49 1.47 Core pre-tax, pre-provision return on assets (1) 1.33 1.32 1.39 1.49 1.46 Return on equity 9.46 9.31 9.43 10.72 10.49 Core return on equity (1) 9.25 9.32 9.82 10.72 10.42 Return on tangible equity 13.44 13.25 13.65 15.65 15.28 Core return on tangible equity (1) 13.15 13.26 14.21 15.65 15.19 Net interest margin, fully taxable equivalent (1) (3) 3.09 3.14 3.17 3.18 3.22 Efficiency ratio (1) 62.96 62.91 61.38 58.59 60.25 FINANCIAL DATA (In millions) Total assets $ 4,034 $ 3,959 $ 3,971 $ 3,984 $ 4,029 Total earning assets (4) 3,726 3,663 3,664 3,687 3,716 Total investments 528 538 547 524 556 Total loans 3,064 3,012 2,999 2,993 3,007 Allowance for credit losses 29 28 28 28 27 Total goodwill and intangible assets 124 124 124 125 125 Total deposits 3,140 3,127 3,141 3,140 3,090 Total shareholders' equity 439 436 432 404 411 Net income 10 10 10 11 11 Core earnings (1) 10 10 10 11 11 ASSET QUALITY AND CONDITION RATIOS Net charge-offs (recoveries)(5)/average loans 0.01 % 0.01 % 0.07 % - % - % Allowance for credit losses/total loans 0.94 0.94 0.94 0.94 0.91 Loans/deposits 98 96 95 95 97 Shareholders' equity to total assets 10.88 11.01 10.88 10.15 10.20 Tangible shareholders' equity to tangible assets 8.06 8.13 8.00 7.25 7.32 ____________________________________ (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables 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) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.(5) Current quarter annualized. A BAR HARBOR BANKSHARESCONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 Assets Cash and due from banks $ 39,673 $ 30,770 $ 42,221 $ 41,210 $ 46,532 Interest-earning deposits with other banks 62,163 45,449 52,621 81,606 77,253 Total cash and cash equivalents 101,836 76,219 94,842 122,816 123,785 Securities available for sale 512,928 527,603 534,574 509,453 538,178 Federal Home Loan Bank stock 14,755 9,960 12,788 14,834 17,784 Total securities 527,683 537,563 547,362 524,287 555,962 Loans held for sale 3,897 3,137 2,189 2,016 3,669 Total loans 3,064,181 3,011,672 2,999,049 2,992,791 3,007,480 Less: Allowance for credit losses (28,855 ) (28,355 ) (28,142 ) (28,011 ) (27,362 ) Net loans 3,035,326 2,983,317 2,970,907 2,964,780 2,980,118 Premises and equipment, net 51,628 47,849 48,287 47,790 47,412 Other real estate owned - - - - - Goodwill 119,477 119,477 119,477 119,477 119,477 Other intangible assets 4,404 4,637 4,869 5,102 5,335 Cash surrender value of bank-owned life insurance 81,221 80,642 80,037 79,469 78,967 Deferred tax asset, net 24,750 23,849 22,979 28,328 24,181 Other assets 83,978 82,285 79,936 89,876 89,641 Total assets $ 4,034,200 $ 3,958,975 $ 3,970,885 $ 3,983,941 $ 4,028,547 Liabilities and shareholders' equity Non-interest bearing demand $ 553,067 $ 544,495 $ 569,714 $ 618,421 $ 602,667 Interest-bearing demand 882,068 888,591 946,978 929,481 911,488 Savings 544,980 551,493 553,963 572,271 588,769 Money market 359,208 365,289 370,242 361,839 351,762 Time 801,143 777,208 700,260 658,482 635,559 Total deposits 3,140,466 3,127,076 3,141,157 3,140,494 3,090,245 Senior borrowings 329,349 269,437 271,044 307,070 398,972 Subordinated borrowings 60,541 60,501 60,461 60,422 60,371 Total borrowings 389,890 329,938 331,505 367,492 459,343 Other liabilities 64,937 66,247 66,164 71,747 68,243 Total liabilities 3,595,293 3,523,261 3,538,826 3,579,733 3,617,831 Total shareholders' equity 438,907 435,714 432,059 404,208 410,716 Total liabilities and shareholders' equity $ 4,034,200 $ 3,958,975 $ 3,970,885 $ 3,983,941 $ 4,028,547 Net shares outstanding 15,232 15,212 15,172 15,156 15,144 B BAR HARBOR BANKSHARESCONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED LOAN ANALYSIS Annualized Growth % Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Quarter Year (in thousands) 2024 2024 2023 2023 2023 to Date to Date Commercial real estate $ 1,634,658 $ 1,574,802 $ 1,552,061 $ 1,548,835 $ 1,551,748 15 % 11 % Commercial and industrial 421,297 412,567 400,169 391,347 388,430 8 11 Total commercial loans 2,055,955 1,987,369 1,952,230 1,940,182 1,940,178 14 11 Residential real estate 854,718 873,213 889,904 896,757 907,741 (8 ) (7 ) Consumer 99,776 95,838 97,001 95,160 96,947 16 6 Tax exempt and other 53,732 55,252 59,914 60,692 62,614 (11 ) (21 ) Total loans $ 3,064,181 $ 3,011,672 $ 2,999,049 $ 2,992,791 $ 3,007,480 7 % 4 % DEPOSIT ANALYSIS Annualized Growth % Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Quarter Year (in thousands) 2024 2024 2023 2023 2023 to Date to Date Non-interest bearing demand $ 553,067 $ 544,495 $ 569,714 $ 618,421 $ 602,667 6 % (6 )% Interest-bearing demand 882,068 888,591 946,978 929,481 911,488 (3 ) (14 ) Savings 544,980 551,493 553,963 572,271 588,769 (5 ) (3 ) Money market 359,208 365,289 370,242 361,839 351,762 (7 ) (6 ) Total non-maturity deposits 2,339,323 2,349,868 2,440,897 2,482,012 2,454,686 (2 ) (8 ) Time 801,143 777,208 700,260 658,482 635,559 12 29 Total deposits $ 3,140,466 $ 3,127,076 $ 3,141,157 $ 3,140,494 $ 3,090,245 2 % - % C BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME - UNAUDITED Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2024 2023 2024 2023 Interest and dividend income Loans $ 40,634 $ 36,917 $ 80,104 $ 71,477 Securities and other 6,204 5,964 12,557 11,755 Total interest and dividend income 46,838 42,881 92,661 83,232 Interest expense Deposits 14,780 8,590 29,312 13,855 Borrowings 4,299 5,501 7,535 9,681 Total interest expense 19,079 14,091 36,847 23,536 Net interest income 27,759 28,790 55,814 59,696 Provision for credit losses 585 750 874 1,548 Net interest income after provision for credit losses 27,174 28,040 54,940 58,148 Non-interest income Trust and investment management fee income 4,193 3,805 7,863 7,360 Customer service fees 3,737 3,774 7,447 7,451 Gain on sales of securities, net 50 - 50 34 Mortgage banking income 558 378 815 657 Bank-owned life insurance income 583 503 1,144 1,651 Customer derivative income 168 83 168 215 Other income 344 437 732 796 Total non-interest income 9,633 8,980 18,219 18,164 Non-interest expense Salaries and employee benefits 13,860 13,223 27,108 25,994 Occupancy and equipment 4,382 4,392 8,855 8,806 Gain on sales of premises and equipment, net (248 ) (86 ) (263 ) (99 ) Outside services 462 424 800 780 Professional services 238 355 638 781 Communication 192 175 381 337 Marketing 521 476 1,088 885 Amortization of intangible assets 233 233 466 466 Acquisition, conversion and other expenses - - 20 20 Provision for unfunded commitments - 45 (185 ) (130 ) Other expenses 4,378 4,155 8,798 8,256 Total non-interest expense 24,018 23,392 47,706 46,096 Income before income taxes 12,789 13,628 25,453 30,216 Income tax expense 2,532 2,837 5,101 6,413 Net income $ 10,257 $ 10,791 $ 20,352 $ 23,803 Earnings per share: Basic $ 0.67 $ 0.71 $ 1.34 $ 1.57 Diluted 0.67 0.71 1.33 1.57 Weighted average shares outstanding: Basic 15,227 15,139 15,213 15,125 Diluted 15,275 15,180 15,273 15,186 D BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2024 2024 2023 2023 2023 Interest and dividend income Loans $ 40,634 $ 39,470 $ 39,531 $ 38,412 $ 36,917 Securities and other 6,204 6,353 6,284 6,723 5,964 Total interest and dividend income 46,838 45,823 45,815 45,135 42,881 Interest expense Deposits 14,780 14,532 12,962 11,415 8,590 Borrowings 4,299 3,236 4,060 4,534 5,501 Total interest expense 19,079 17,768 17,022 15,949 14,091 Net interest income 27,759 28,055 28,793 29,186 28,790 Provision for credit losses 585 289 687 673 750 Net interest income after provision for credit losses 27,174 27,766 28,106 28,513 28,040 Non-interest income Trust and investment management fee income 4,193 3,670 3,401 3,522 3,805 Customer service fees 3,737 3,710 3,791 3,926 3,774 Gain on sales of securities, net 50 - - - - Mortgage banking income 558 257 515 415 378 Bank-owned life insurance income 583 561 533 515 503 Customer derivative income 168 - 151 43 83 Other income 344 388 459 394 437 Total non-interest income 9,633 8,586 8,850 8,815 8,980 Non-interest expense Salaries and employee benefits 13,860 13,248 13,511 13,011 13,223 Occupancy and equipment 4,382 4,473 4,309 4,469 4,392 (Gain) loss on sales of premises and equipment, net (248 ) (15 ) 281 - (86 ) Outside services 462 338 515 376 424 Professional services 238 400 369 436 355 Communication 192 189 190 170 175 Marketing 521 567 485 326 476 Amortization of intangible assets 233 233 233 233 233 Acquisition, conversion and other expenses - 20 263 - - Provision for unfunded commitments - (185 ) - 45 45 Other expenses 4,378 4,420 4,211 3,950 4,155 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Income before income taxes 12,789 12,664 12,589 14,312 13,628 Income tax expense 2,532 2,569 2,644 3,208 2,837 Net income $ 10,257 $ 10,095 $ 9,945 $ 11,104 $ 10,791 Earnings per share: Basic $ 0.67 $ 0.66 $ 0.66 $ 0.73 $ 0.71 Diluted 0.67 0.66 0.65 0.73 0.71 Weighted average shares outstanding: Basic 15,227 15,198 15,164 15,155 15,139 Diluted 15,275 15,270 15,221 15,196 15,180 E BAR HARBOR BANKSHARESAVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2024 2024 2023 2023 2023 Earning assets Interest-earning deposits with other banks 5.65 % 5.88 % 6.42 % 5.02 % 5.59 % Securities available for sale and FHLB stock 4.00 4.02 3.85 3.87 3.71 Loans: Commercial real estate 5.61 5.47 5.46 5.34 5.21 Commercial and industrial 6.76 6.68 6.66 6.56 6.42 Residential real estate 4.13 4.09 3.94 3.84 3.76 Consumer 7.26 7.22 7.14 6.88 6.67 Total loans 5.41 5.31 5.24 5.11 4.99 Total earning assets 5.18 % 5.10 % 5.02 % 4.90 % 4.77 % Funding liabilities Deposits: Interest-bearing demand 1.39 % 1.34 % 1.33 % 1.11 % 0.94 % Savings 0.65 0.63 0.48 0.42 0.37 Money market 2.93 3.07 2.80 2.55 2.52 Time 4.33 4.18 3.93 3.65 2.82 Total interest-bearing deposits 2.35 2.26 2.05 1.81 1.45 Borrowings 4.57 4.35 4.64 4.59 4.73 Total interest-bearing liabilities 2.64 % 2.48 % 2.37 % 2.19 % 1.99 % Net interest spread 2.54 2.62 2.65 2.71 2.78 Net interest margin, fully taxable equivalent(1) 3.09 3.14 3.17 3.18 3.22 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. F BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 Assets Interest-earning deposits with other banks (1) $ 27,407 $ 36,608 $ 36,794 $ 70,499 $ 21,440 Securities available for sale and FHLB stock (2) 607,868 604,658 608,793 620,851 636,088 Loans: Commercial real estate 1,600,253 1,558,506 1,554,961 1,550,188 1,536,035 Commercial and industrial 468,052 464,762 457,642 439,915 434,384 Residential real estate 865,412 884,767 898,147 909,296 911,788 Consumer 97,371 96,163 95,193 96,362 97,518 Total loans (3) 3,031,088 3,004,198 3,005,943 2,995,761 2,979,725 Total earning assets 3,666,363 3,645,464 3,651,530 3,687,111 3,637,253 Cash and due from banks 30,809 29,900 34,741 36,713 32,067 Allowance for credit losses (28,567 ) (28,122 ) (28,057 ) (27,473 ) (26,932 ) Goodwill and other intangible assets 123,994 124,225 124,459 124,926 124,926 Other assets 167,150 166,538 157,159 162,801 163,388 Total assets $ 3,959,749 $ 3,938,005 $ 3,939,832 $ 3,984,078 $ 3,930,702 Liabilities and shareholders' equity Deposits: Interest-bearing demand $ 858,657 $ 899,349 $ 916,314 $ 915,072 $ 885,091 Savings 542,950 552,231 552,932 579,090 602,724 Money market 355,731 390,720 365,142 358,742 423,013 Time 775,932 738,683 670,628 645,285 468,188 Total interest-bearing deposits 2,533,270 2,580,983 2,505,016 2,498,189 2,379,016 Borrowings 378,121 298,918 347,459 391,976 466,402 Total interest-bearing liabilities 2,911,391 2,879,901 2,852,475 2,890,165 2,845,418 Non-interest-bearing demand deposits 546,448 554,816 604,638 610,644 608,180 Other liabilities 65,712 67,327 64,092 72,409 64,346 Total liabilities 3,523,551 3,502,044 3,521,205 3,573,218 3,517,944 Total shareholders' equity 436,198 435,961 418,627 410,860 412,758 Total liabilities and shareholders' equity $ 3,959,749 $ 3,938,005 $ 3,939,832 $ 3,984,078 $ 3,930,702 __________________________________ (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. G BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands) 2024 2024 2023 2023 2023 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $ 551 $ 578 $ 610 $ 867 $ 909 Commercial and industrial 1,301 1,152 363 1,595 1,814 Residential real estate 3,511 4,169 3,742 3,673 3,415 Consumer 914 971 813 635 565 Total non-accruing loans 6,277 6,870 5,528 6,770 6,703 Other real estate owned - - - - - Total non-performing assets $ 6,277 $ 6,870 $ 5,528 $ 6,770 $ 6,703 Total non-accruing loans/total loans 0.20 % 0.23 % 0.18 % 0.23 % 0.22 % Total non-performing assets/total assets 0.16 0.17 0.14 0.17 0.17 PROVISION AND ALLOWANCE FOR CREDIT LOSSES Balance at beginning of period $ 28,355 $ 28,142 $ 28,011 $ 27,362 $ 26,607 Charged-off loans (106 ) (113 ) (632 ) (74 ) (199 ) Recoveries on charged-off loans 21 37 76 50 204 Net loans (charged-off) recovered (85 ) (76 ) (556 ) (24 ) 5 Provision for credit losses 585 289 687 673 750 Balance at end of period $ 28,855 $ 28,355 $ 28,142 $ 28,011 $ 27,362 Allowance for credit losses/total loans 0.94 % 0.94 % 0.94 % 0.94 % 0.91 % Allowance for credit losses/non-accruing loans 460 413 509 414 408 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $ - $ (3 ) $ - $ - $ (72 ) Commercial and industrial (2 ) (64 ) (479 ) 34 139 Residential real estate 3 5 3 13 3 Consumer (86 ) (14 ) (80 ) (71 ) (65 ) Total, net $ (85 ) $ (76 ) $ (556 ) $ (24 ) $ 5 Net charge-offs (recoveries) (QTD annualized)/average loans 0.01 % 0.01 % 0.07 % - % - % Net charge-offs (recoveries) (YTD annualized)/average loans 0.01 0.01 0.02 0.01 - DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS 30-89 Days delinquent 0.10 % 0.14 % 0.11 % 0.13 % 0.09 % 90+ Days delinquent and still accruing - - 0.01 0.03 0.02 Total accruing delinquent loans 0.10 0.14 0.12 0.16 0.11 Non-accruing loans 0.20 0.23 0.18 0.23 0.22 Total delinquent and non-accruing loans 0.30 % 0.37 % 0.30 % 0.39 % 0.33 % H BAR HARBOR BANKSHARESRECONCILIATION 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) 2024 2024 2023 2023 2023 Net income $ 10,257 $ 10,095 $ 9,945 $ 11,104 $ 10,791 Non-core items: Gain on sale of securities, net (50 ) - - - - (Gain) loss on sale of premises and equipment, net (248 ) (15 ) 281 - (86 ) Acquisition, conversion and other expenses - 20 263 - - Income tax expense (1) 71 (1 ) (131 ) - 20 Total non-core items (227 ) 4 413 - (66 ) Core earnings (2) (A) $ 10,030 $ 10,099 $ 10,358 $ 11,104 $ 10,725 Net interest income (B) $ 27,759 $ 28,055 $ 28,793 $ 29,186 $ 28,790 Non-interest income 9,633 8,586 8,850 8,815 8,980 Total revenue 37,392 36,641 37,643 38,001 37,770 Gain on sale of securities, net (50 ) - - - - Total core revenue (2) (C) $ 37,342 $ 36,641 $ 37,643 $ 38,001 $ 37,770 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Non-core expenses: Gain (loss) on sale of premises and equipment, net 248 15 (281 ) - 86 Acquisition, conversion and other expenses - (20 ) (263 ) - - Total non-core expenses 248 (5 ) (544 ) - 86 Core non-interest expense (2) (D) $ 24,266 $ 23,683 $ 23,823 $ 23,016 $ 23,478 Total revenue 37,392 36,641 37,643 38,001 37,770 Total non-interest expense 24,018 23,688 24,367 23,016 23,392 Pre-tax, pre-provision net revenue $ 13,374 $ 12,953 $ 13,276 $ 14,985 $ 14,378 Core revenue(2) 37,342 36,641 37,643 38,001 37,770 Core non-interest expense(2) 24,266 23,683 23,823 23,016 23,478 Core pre-tax, pre-provision net revenue(2) (U) $ 13,076 $ 12,958 $ 13,820 $ 14,985 $ 14,292 (in millions) Average earning assets (E) $ 3,666 $ 3,645 $ 3,652 $ 3,687 $ 3,637 Average assets (F) 3,960 3,938 3,940 3,984 3,931 Average shareholders' equity (G) 436 436 419 411 413 Average tangible shareholders' equity (2) (3) (H) 312 312 294 286 288 Tangible shareholders' equity, period-end (2) (3) (I) 315 312 308 280 286 Tangible assets, period-end (2) (3) (J) 3,910 3,835 3,847 3,859 3,904 I BAR HARBOR BANKSHARESRECONCILIATION 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) 2024 2024 2023 2023 2023 Common shares outstanding, period-end (K) 15,232 15,212 15,172 15,156 15,144 Average diluted shares outstanding (L) 15,275 15,270 15,221 15,196 15,180 Core earnings per share, diluted (2) (A/L) $ 0.66 $ 0.66 $ 0.68 $ 0.73 $ 0.71 Tangible book value per share, period-end (2) (I/K) 20.68 20.48 20.28 18.45 18.88 Securities adjustment, net of tax (1) (4) (M) (52,313 ) (49,633 ) (47,649 ) (66,530 ) (55,307 ) Tangible book value per share, excluding securities adjustment (2) (4) (I+M)/K 24.12 23.75 23.42 22.84 22.53 Tangible shareholders' equity/total tangible assets (2) (I/J) 8.06 8.13 8.00 7.25 7.32 Performance ratios (5) GAAP return on assets 1.04 % 1.03 % 1.00 % 1.11 % 1.10 % Core return on assets (2) (A/F) 1.02 1.03 1.04 1.11 1.09 Pre-tax, pre-provision return on assets 1.36 1.32 1.34 1.49 1.47 Core pre-tax, pre-provision return on assets (2) (U/F) 1.33 1.32 1.39 1.49 1.46 GAAP return on equity 9.46 9.31 9.43 10.72 10.49 Core return on equity (2) (A/G) 9.25 9.32 9.82 10.72 10.42 Return on tangible equity 13.44 13.25 13.65 15.65 15.28 Core return on tangible equity (1) (2) (A+Q)/H 13.15 13.26 14.21 15.65 15.19 Efficiency ratio (2) (6) (D-O-Q)/(C+N) 62.96 62.91 61.38 58.59 60.25 Net interest margin, fully taxable equivalent (2) (B+P)/E 3.09 3.14 3.17 3.18 3.22 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio (N) $ 528 $ 523 $ 561 $ 565 $ 539 Franchise taxes included in non-interest expense (O) 191 70 141 186 163 Tax equivalent adjustment for net interest margin (P) 389 388 395 405 382 Intangible amortization (Q) 233 233 233 233 233 ______________________________ (1) Assumes a marginal tax rate of 23.82% in the second quarter 2024, 24.01% in the first quarter 2024 and the fourth quarter 2023, and 23.80% in the first three quarters of 2023. (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. SOURCE: Bar Harbor Bank & Trust View the original press release on accesswire.com
