Bar Harbor Bankshares Reports Second Quarter 2024 Results; Declares Dividend

Rhea-AI Summary

Bar Harbor Bankshares (NYSE American:BHB) reported Q2 2024 GAAP net income of $10.3 million ($0.67 per diluted share) and core net income of $10.0 million ($0.66 per diluted share). Key highlights include:

• 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

The Board declared a cash dividend of $0.30 per share, payable on September 13, 2024. Total assets grew $75.2 million, primarily due to loan growth and higher cash balances. The company maintained strong credit quality and experienced growth in its wealth management business.

Positive

• Commercial loan growth of 14% annualized
• 14% growth in trust and investment fee income
• Assets under management grew 12% to $2.6 billion
• Yield on loans grew 42 basis points to 5.41%
• Strong credit quality with non-accruing loans to total loans at 0.20%

Negative

• Net interest margin decreased to 3.09% from 3.22% in Q2 2023
• Non-interest expense increased to $24.0 million from $23.4 million in Q2 2023
• Shift from non-maturity deposits to higher-cost certificate of deposit accounts

Insights

Financial Analyst

Bar Harbor Bankshares has delivered its second quarter 2024 results, showcasing some positive yet mixed signals. The GAAP net income of $10.3 million and core net income of $10.0 million have slightly decreased compared to the same period last year, indicating minor headwinds. The Return on Assets (ROA) of 1.04% is a healthy figure for a regional bank, reflecting efficient use of assets to generate earnings.

Commercial loan growth stands out with a 14% annualized increase, driven by strong performance in commercial real estate and industrial loans. This shift from residential to commercial loans indicates a strategic move towards higher yield opportunities, although it comes with its own set of risks related to market fluctuations in the commercial sector.

The bank's Net Interest Margin (NIM) of 3.09% has contracted from 3.22% in the same quarter of 2023. This decrease is primarily attributed to rising costs of interest-bearing deposits, which could be a concern if the trend continues amidst a competitive interest rate environment. However, the bank has managed to keep non-accruing loans low at 0.20%, reflecting strong credit quality and effective risk management.

Bar Harbor Bankshares' decision to declare a dividend of $0.30 per share, yielding an annualized 4.46%, is an attractive proposition for income-focused investors, offering a stable return despite modest earnings growth.

Overall, the financial results show good growth strategies and sound financial health, but potential investors should monitor the NIM trends and the loan portfolio's credit quality.

Market Research Analyst

Bar Harbor Bankshares' second quarter 2024 performance indicates a deliberate strategic shift towards enhancing commercial loan portfolios and wealth management services. The 14% growth in trust and investment fee income and significant new client acquisitions in wealth management underscore the bank's ability to expand its fee-based income streams, which are less sensitive to interest rate changes than traditional lending income.

The increase in Commercial Real Estate (CRE) loans by 15% suggests a robust demand in the business sector. While this provides higher yields, it's important to note the associated risks of potential market downturns in the commercial real estate sector. The growth in commercial and industrial loans also points to strong economic activity and confidence among local businesses.

On the deposit side, there is a noticeable shift from non-maturity deposits to Certificates of Deposit (CDs), likely driven by competitive interest rates offered by peers. This trend could impact liquidity management if the dependence on CDs continues to escalate. Nonetheless, the bank's total deposits of $3.1 billion remain stable, suggesting strong customer loyalty and retention.

For retail investors, these developments suggest that while the bank is diversifying its income sources, close attention should be paid to the stability of its commercial loan growth and the sustainability of its competitive deposit rates to ensure long-term profitability.

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 DECLARED
The 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.

BACKGROUND
Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 135 years. Bar Harbor 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 STATEMENTS
All statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 MEASURES
This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. 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 BANKSHARES
SELECTED 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 BANKSHARES
CONSOLIDATED 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 BANKSHARES
CONSOLIDATED 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 BANKSHARES
CONSOLIDATED 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 BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED

		Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in thousands, except per share data)		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 BANKSHARES
AVERAGE 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 BANKSHARES
AVERAGE 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 BANKSHARES
AVERAGE 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 BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED

			At or for the Quarters Ended
			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in thousands)			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 BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED

			At or for the Quarters Ended
			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in thousands)			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

FAQ

What was Bar Harbor Bankshares' (BHB) net income for Q2 2024?

Bar Harbor Bankshares reported GAAP net income of $10.3 million and core net income of $10.0 million for Q2 2024.

What was the dividend declared by Bar Harbor Bankshares (BHB) for Q2 2024?

The Board of Directors declared a cash dividend of $0.30 per share, payable on September 13, 2024, to shareholders of record as of August 15, 2024.

How much did Bar Harbor Bankshares' (BHB) commercial loans grow in Q2 2024?

Bar Harbor Bankshares reported commercial loan growth of 14% annualized in Q2 2024.

What was Bar Harbor Bankshares' (BHB) net interest margin in Q2 2024?

Bar Harbor Bankshares reported a net interest margin (NIM) of 3.09% for Q2 2024.

How much did Bar Harbor Bankshares' (BHB) assets under management grow in Q2 2024?

Bar Harbor Bankshares' assets under management grew 12% to $2.6 billion in Q2 2024 compared to Q2 2023.