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Bar Harbor Bankshares Reports Third Quarter Results; Declares Dividend

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  • BHB

BAR HARBOR, ME / ACCESSWIRE / October 21, 2021 / Bar Harbor Bankshares (NYSE American:BHB) reported third quarter 2021 net income of $11.0 million or $0.73 per diluted share, up from $8.4 million or $0.56 per diluted share in the same quarter of 2020. Core earnings (non-GAAP) were also $11.0 million or $0.73 per diluted share in the third quarter of 2021, compared to $9.2 million, or $0.61 per share for the same period of 2020.

THIRD QUARTER HIGHLIGHTS (ratios compared to the third quarter 2020)

  • 1.16% return on assets, for both GAAP and non-GAAP measures

  • 10% annualized commercial loan growth, excluding Paycheck Protection Program (PPP) loans

  • 32% annualized core deposit growth

  • 3.02% net interest margin (NIM) compared to 2.90%

  • 15% increase in fee income, excluding mortgage banking income and security gains

  • Bar Harbor Bank & Trust named as America's Best Bank in Maine by Newsweek Magazine

President and Chief Executive Officer, Curtis C. Simard stated, "Core earnings per share (non-GAAP) in the third quarter 2021 grew 20% over the same quarter of 2020. Our core return on assets in the third quarter was 1.16% compared to 0.96% in the third quarter of 2020, evidencing continued execution of our strategies that balance growth with earnings. This is indicative of the strength in our core businesses and the results of the strategic initiatives we have been undertaking. The momentum we've seen in each area affords us flexibility with diverse revenue streams to support our operations, even in uncertain economic environments."

"While fee income and efficiency improvements contributed to greater core profitability, the quarterly results also benefited from a 13 basis point expansion in the margin to 2.99% compared with 2.86% in the second quarter 2021 on a normalized basis (excluding PPP and excess cash effects). This improvement is a direct result of increased core funding as we gain market share and reduce our reliance on wholesale borrowings. As of September 30, 2021, our wholesale borrowings as a percentage of funding was 9%, down from 23% in the prior year."

Mr. Simard stated, "Our commercial teams continue to deliver strong commercial loan growth despite the competitive landscape in our footprint. The majority of the commercial real estate loan growth this quarter came from new multi-family residential and light industrial & manufacturing relationships with proven operators. Risk management remains at the forefront of all that we do. We saw yields bottoming out on residential loans this quarter and were able to increase contractual rates at times. Given the overall interest rate risk position of our balance sheet and this recent rate increase, we strategically directed more of our residential mortgage production on balance sheet versus selling it in the secondary market."

"We also executed another delever and security remix strategy during the third quarter, prepaying $89 million of FHLB borrowings and selling $44 million of credit sensitive municipal and corporate bonds. The additional purchase of securities was completed subsequent to quarter end, earlier in October. This transaction is expected to expand the NIM by 12 basis points and will be accretive to earnings by $0.02 on a quarterly basis."

Mr. Simard commented, "We continue to build long term shareholder value while providing a favorable dividend rate relative to community banking. The Company's return on equity for the third quarter rose to 10.38% from 8.25% in the same quarter of 2020. A clear path to equity preservation is strong credit quality. We remain committed to our underwriting standards evidenced by further improvement in past-due accounts, non-accruals and a near zero net-charge-off ratio."

Mr. Simard concluded, "While our financial results for the quarter and our overall performance thus far in the year speak to the soundness of our strategy, we are thrilled to be named by Newsweek Magazine as one of "America's Best Banks." Best Bank winners were selected from over 2,500 financial institutions and assessed on more than 30 separate factors including the overall health of the bank, customer service performance and features, digital and branch presence, account and loan options, interest rate offerings, and fees.This award acknowledges that our strategy is resonating with customers. I am proud of our employees and congratulate them on earning this great award."

DIVIDEND DECLARED

The Board of Directors voted to declare a cash dividend of $0.24 per share to shareholders of record at the close of business on November 17, 2021, payable on December 17, 2021. This dividend equates to a 3.42% annualized yield based on the $28.05 closing price of the Company's common stock at the end of the third quarter of 2021.

FINANCIAL CONDITION

Total assets were $3.7 billion at the end of the third quarter. Bar Harbor Bankshares (the "Company") executed a balance sheet delever and security remix strategy where $89.0 million of Federal Home Loan Bank advances were prepaid and $43.5 million of securities were sold to reduce credit risk exposure while generating gains. The replenishment of those securities is expected to be fulfilled early in the fourth quarter 2021.

Loans were $2.5 billion at the end of the third quarter reflecting growth of $18.6 million or 3% on an annualized basis. Excluding PPP loans, commercial loans increased $38.0 million led by two new relationships totaling $21.2 million as well as the deepening of existing commercial relationships. PPP loan balances totaled $24.2 million at quarter-end, consisting of $24.1 million of 2021 originations and $145 thousand from 2020. Unearned deferred fees on PPP loans totaled $1.2 million at the end of the quarter and are expected to be mostly recognized by year-end 2021. COVID loan modifications totaled $4.7 million, down from $19.0 million at the end of the second quarter 2021. Total residential loans increased $26.9 million from the end of the second quarter 2021, which primarily included $39.0 million of originations that were strategically put on the balance sheet when rates were higher in the quarter.

The allowance for credit losses was $22.4 million for the third quarter. As economic forecasts continue to improve the Company maintains its disciplined approach to credit quality with an allowance to total loans coverage ratio of 0.89%. Net charge-offs totaled $193 thousand, or 0.03% of the total loan portfolio, and non-accruing loans decreased to $12.2 million from $13.6 million at the end of the second quarter 2021. The ratio of accruing past due loans to total loans improved to 0.12% of total loans from 0.15% at the end of the second quarter 2021 and 0.58% at year-end 2020.

Total deposits increased $184.8 million to $3.0 billion during the quarter, due to significant core deposit growth. Core deposits grew $186.3 million, or 32% on an annualized basis, during the quarter as over 800 new customer accounts were opened. As a result the loan to deposit ratio improved to 84% from 89% at the end of the second quarter 2021. Time deposits decreased $1.5 million during the quarter as customers continue to move funds to transactional accounts upon contractual maturity.

The Company's book value per share was $27.92 at September 30, 2021, compared with $27.64 at the end of the second quarter 2021. Tangible book value per share (non-GAAP measure) was $19.48 at the end of the third quarter 2021, compared to $19.17 at the end of the second quarter 2021, an annualized growth rate of 6%. Other comprehensive income included unrealized gains on securities totaling $4.4 million in the third quarter 2021 compared to $7.2 million at the end of the second quarter 2021.

RESULTS OF OPERATIONS

Net income in the third quarter 2021 was $11.0 million, or $0.73 per share, compared to $8.4 million, or $0.56 per share, in the same quarter of 2020. Net income improved on higher fee income and fees from PPP loans in the quarter. PPP loan fees contributed $0.13 to earnings per share in the third quarter of 2021 and $0.06 in the same period of 2020. Core earnings (non-GAAP) totaled $11.0 million or $0.73 per share, compared to $9.2 million, or $0.61 per share, in the same quarter of 2020. Non-core items (non-GAAP) netted to an insignificant amount in the third quarter 2021 and reduced net income by $781 thousand in the same period of 2020.

Net interest margin was 3.02% compared to 2.90% in the same period of 2020. Acceleration of PPP loan fee amortization due to forgiveness contributed 28 basis points to NIM in the third quarter 2021 and 1 basis point in the same period of 2020. Interest-bearing cash balances, held mostly at the Federal Reserve Bank, reduced NIM by 26 basis points in the quarter and 8 basis points in the third quarter 2020. The yield on earning assets totaled 3.41% compared to 3.57% in the third quarter 2020. Excluding the impact of PPP and excess cash, the yield on earning assets totaled 3.42% and 3.67% for the same periods. The yield on loans was 3.98% in the third quarter 2021, 3.70% in the second quarter 2021 and 3.81% in the third quarter of 2020. Excluding PPP loans the yield on loans was 3.62% in the third quarter of 2021, 3.64% in the second quarter of 2021 and 3.83% in the third quarter 2020. Costs of funds decreased to 0.50% from 0.82% in the third quarter 2020 due to lower deposit rates and reduced wholesale borrowings.

The provision for credit losses for the quarter was a benefit of $174 thousand, compared to an expense of $1.8 million in the third quarter of 2020. The provision recapture in the third quarter 2021 is attributable to continued strong credit quality and improving economic forecasts.

Non-interest income in the third quarter 2021 was $11.4 million, compared to $10.1 million in the same quarter of 2020. The increase was due to higher customer service fees, wealth management income, and a gain on securities sales. Customer service fees were $3.5 million in the third quarter compared to $2.9 million in the same period of 2020. The increase is due to over 800 new accounts that were opened during the quarter and a higher volume of customer activity and transactions. Wealth management income increased 10% over the same quarter of 2020 to $3.9 million with assets under management of $2.4 billion compared to $2.1 billion in the same period of 2020. The Company sold securities resulting in a $1.9 million gain as part of the aforementioned remix strategy. Mortgage banking activities contributed $850 thousand, compared to $2.6 million in the same period of 2020. The Company took advantage of volatility in the yield curve in the third quarter and put residential mortgages on the balance sheet when rates were higher and sold loans in the secondary market when rates were low.

Non-interest expense was $23.4 million in the third quarter 2021 from $22.4 million in the same quarter of 2020. Salaries and benefits expense decreased to $11.7 million compared to $11.8 million in the same quarter of 2020, reflecting full-time equivalents of 428 compared to 457 in the third quarter of 2020. Non-core expenses (non-GAAP) in the third quarter 2021 totaled $1.9 million and were mostly made up of the $1.8 million prepayment penalty on debt extinguishment. In the same quarter of 2020 non-core expenses (non-GAAP) totaled $1.0 million and included costs to consolidate our wealth management systems. The efficiency ratio for the third quarter was 59.18% compared to 59.47% in the same period of 2020. Excluding the effects of PPP the efficiency ratio was 63.35% and 61.30% for the same respective periods.

BACKGROUND

Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 130 years. Bar Harbor provides full-service community banking with office locations in all three Northern New England states of Maine, New Hampshire and Vermont. For more information, visit www.barharbor.bank.

FORWARD LOOKING STATEMENTS

Certain statements under the headings "THIRD QUARTER HIGHLIGHTS", "FINANCIAL CONDITION" and "RESULTS OF OPERATIONS" contained in this document, that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this earnings release the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions are intended to identify forward-looking statements, but these terms are not the exclusive means of identifying forward-looking statements. These forward-looking statements are subject to significant risks, assumptions and uncertainties, including among other things, changes in general economic and business conditions, increased competitive pressures, changes in the interest rate environment, legislative and regulatory change, changes in the financial markets, and other risks and uncertainties disclosed from time to time in documents that the Company files with the Securities and Exchange Commission, including but not limited to those discussed in the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and any subsequently filed Quarterly Reports on Form 10-Q. Because of these and other uncertainties, the Company's actual results, performance or achievements, or industry results, may be materially different from the results indicated by these forward-looking statements. In addition, the Company's past results of operations do not necessarily indicate future results. You should not place undue reliance on any of the forward-looking statements, which speak only as of the dates on which they were made. The Company is not undertaking an obligation to update forward-looking statements, even though its situation may change in the future, except as required under federal securities law. The Company qualifies all of its forward-looking statements by these cautionary statements.

NON-GAAP FINANCIAL MEASURES

This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP core earnings information set forth is not necessarily comparable to non-GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information.

The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.

The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

CONTACTS:

Josephine Iannelli, EVP, Chief Financial Officer & Treasurer; (207) 288-3314

TABLE

INDEX

CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED)

A

Selected Financial Highlights

B

Balance Sheets

C

Loan and Deposit Analysis

D

Statements of Income

E

Statements of Income (Five Quarter Trend)

F

Average Yields and Costs

G

Average Balances

H

Asset Quality Analysis

I

Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data

BAR HARBOR BANKSHARES
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED

At or for the Quarters Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2021

2021

2021

2020

2020

PER SHARE DATA






Net earnings, diluted

$

0.73

$

0.60

$

0.63

$

0.58

$

0.56

Core earnings, diluted (1)

0.73

0.63

0.68

0.62

0.61

Total book value (6)

27.92

27.64

27.10

27.29

26.74

Tangible book value (1) (6)

19.48

19.17

18.61

18.77

18.21

Market price at period end

28.05

28.62

29.42

22.59

20.55

Dividends

0.24

0.24

0.22

0.22

0.22

PERFORMANCE RATIOS (2)

Return on assets

1.16

%

0.97

%

1.03

%

0.92

%

0.88

%

Core return on assets (1)

1.16

1.01

1.11

0.98

0.96

Pre-tax, pre-provision return on assets

1.43

1.13

1.22

1.30

1.29

Core pre-tax, pre-provision return on assets (1)

1.43

1.18

1.32

1.38

1.39

Return on equity (6)

10.38

8.77

9.45

8.42

8.25

Core return on equity (1) (6)

10.39

9.14

10.14

8.99

9.02

Return on tangible equity (6)

15.08

12.91

14.01

12.52

12.32

Core return on tangible equity (1) (6)

15.09

13.45

15.01

13.33

13.44

Net interest margin, fully taxable equivalent (FTE) (1) (3)

3.02

2.74

2.88

3.02

2.90

Core net interest margin (1) (4)

2.75

2.67

2.78

2.79

2.89

Efficiency ratio (1)

59.18

63.45

61.95

61.98

59.47

FINANCIAL DATA (In millions)

Total assets (6)

$

3,738

$

3,639

$

3,730

$

3,724

$

3,861

Total earning assets (5)

3,394

3,282

3,381

3,371

3,505

Total investments

556

636

641

599

619

Total loans

2,534

2,516

2,551

2,563

2,685

Allowance for credit losses

22

23

24

19

18

Total goodwill and intangible assets

126

127

127

127

127

Total deposits

3,007

2,822

2,912

2,906

2,935

Total shareholders' equity (6)

418

414

405

407

399

Net income

11

9

9

9

8

Core earnings (1)

11

9

10

9

9

ASSET QUALITY AND CONDITION RATIOS

Net charge-offs (current quarter annualized)/average loans

0.03

%

0.01

%

0.03

%

0.03

%

0.06

%

Allowance for credit losses/total loans

0.89

0.91

0.93

0.74

0.67

Loans/deposits

84

89

88

88

91

Shareholders' equity to total assets (6)

11.19

11.37

10.86

10.93

10.34

Tangible shareholders' equity to tangible assets (6)

8.08

8.17

7.72

7.78

7.27

  1. Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in table I for additional information.

  2. All performance ratios are based on average balance sheet amounts, where applicable.

  3. Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.

  4. Core net interest margin excludes Paycheck Protection Program loans.

  5. Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.

  6. Prior quarters have been revised for derivatives that were incorrectly presented as assets instead of liabilities and related equity effects net of tax.


BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(in thousands)

2021

2021

2021

2020

2020

Assets

Cash and due from banks

$

39,081

$

41,440

$

39,039

$

27,566

$

22,722

Interest-bearing deposits with other banks

302,118

132,278

184,473

198,441

192,935

Total cash and cash equivalents

341,199

173,718

223,512

226,007

215,657

Securities available for sale

545,327

621,849

626,403

585,046

604,529

Federal Home Loan Bank stock

10,192

14,145

14,826

14,036

13,975

Total securities

555,519

635,994

641,229

599,082

618,504

Loans held for sale

7,505

7,942

10,148

23,988

23,721

Total loans

2,534,154

2,515,560

2,551,064

2,562,885

2,684,970

Less: Allowance for credit losses

(22,448

)

(22,815

)

(23,653

)

(19,082

)

(17,907

)

Net loans

2,511,706

2,492,745

2,527,411

2,543,803

2,667,063

Premises and equipment, net

50,070

51,119

52,253

52,458

51,424

Other real estate owned

-

-

-

-

1,983

Goodwill

119,477

119,477

119,477

119,477

119,477

Other intangible assets

6,966

7,198

7,431

7,670

7,913

Cash surrender value of bank-owned life insurance

79,380

78,886

78,388

77,870

77,388

Deferred tax asset, net (1)

5,811

4,902

5,761

3,047

3,797

Other assets (1)

60,712

67,064

64,479

70,873

74,400

Total assets (1)

$

3,738,345

$

3,639,045

$

3,730,089

$

3,724,275

$

3,861,327

Liabilities and shareholders' equity

Demand and other non-interest bearing deposits

$

664,395

$

599,598

$

586,487

$

544,636

$

515,064

NOW deposits

888,021

802,681

761,817

738,849

706,048

Savings deposits

605,977

578,361

560,095

521,638

511,938

Money market deposits

379,651

371,075

365,507

402,731

388,356

Time deposits

469,221

470,758

638,436

698,361

813,509

Total deposits

3,007,265

2,822,473

2,912,342

2,906,215

2,934,915

Senior borrowings

190,267

279,991

292,210

276,062

385,472

Subordinated borrowings

60,083

60,042

60,003

59,961

59,920

Total borrowings

250,350

340,033

352,213

336,023

445,392

Other liabilities (1)

62,295

62,779

60,354

74,972

81,849

Total liabilities (1)

3,319,910

3,225,285

3,324,909

3,317,210

3,462,156

Total shareholders' equity (1)

418,435

413,760

405,180

407,065

399,171

Total liabilities and shareholders' equity (1)

$

3,738,345

$

3,639,045

$

3,730,089

$

3,724,275

$

3,861,327

Net shares outstanding

14,987

14,972

14,950

14,916

14,929

  1. Prior quarters have been revised for derivatives that were incorrectly presented as assets instead of liabilities and related equity effects net of tax.

BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED

LOAN ANALYSIS

Annualized

Growth %

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Quarter

Year to

(in thousands)

2021

2021

2021

2020

2020

End

Date

Commercial real estate

$

1,170,372

$

1,135,857

$

1,118,669

$

1,084,381

$

1,045,635

12

%

11

%

Commercial and industrial

331,091

327,729

317,500

323,864

324,647

4

3

Paycheck Protection Program (PPP)

24,227

65,918

77,878

53,774

131,537

*

(74

)

Total commercial loans

1,525,690

1,529,504

1,514,047

1,462,019

1,501,819

(1

)

6

Total commercial loans, excluding PPP

1,501,463

1,463,586

1,436,169

1,408,245

1,370,282

10

9

Residential real estate

849,692

822,774

868,084

923,891

997,485

13

(11

)

Consumer

100,933

103,589

106,835

113,544

119,340

(10

)

(15

)

Tax exempt and other

57,839

59,693

62,098

63,431

66,326

(12

)

(12

)

Total loans

$

2,534,154

$

2,515,560

$

2,551,064

$

2,562,885

$

2,684,970

3

%

(1

)%

DEPOSIT ANALYSIS

Annualized

Growth %


Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Quarter

Year to

(in thousands)

2021

2021

2021

2020

2020

End

Date

Demand

$

664,395

$

599,598

$

586,487

$

544,636

$

515,064

43

%

29

%

NOW

888,021

802,681

761,817

738,849

706,048

43

27

Savings

605,977

578,361

560,095

521,638

511,938

19

22

Money market

379,651

371,075

365,507

402,731

388,356

9

(8

)

Total non-maturity deposits

2,538,044

2,351,715

2,273,906

2,207,854

2,121,406

32

20

Total time deposits

469,221

470,758

638,436

698,361

813,509

(1

)

(44

)

Total deposits

$

3,007,265

$

2,822,473

$

2,912,342

$

2,906,215

$

2,934,915

26

%

5

%

*Indicates ratios of 100% or greater.

BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in thousands, except per share data)

2021

2020

2021

2020

Interest and dividend income

Loans

$

25,094

$

25,918

$

72,490

$

80,398

Securities and other

3,821

4,557

11,792

15,006

Total interest and dividend income

28,915

30,475

84,282

95,404

Interest expense

Deposits

1,555

3,869

7,109

14,437

Borrowings

1,778

1,941

5,415

7,149

Total interest expense

3,333

5,810

12,524

21,586

Net interest income

25,582

24,665

71,758

73,818

Provision for credit losses

(174

)

1,800

(1,428

)

4,265

Net interest income after provision for credit losses

25,756

22,865

73,186

69,553

Non-interest income

Trust and investment management fee income

3,868

3,532

11,335

10,060

Customer service fees

3,515

2,886

9,742

8,437

Gain on sales of securities, net

1,930

-

1,980

1,486

Mortgage banking income

850

2,649

4,973

4,230

Bank-owned life insurance income

494

492

1,510

1,525

Customer derivative income

341

316

837

1,417

Other income

352

227

726

1,078

Total non-interest income

11,350

10,102

31,103

28,233

Non-interest expense

Salaries and employee benefits

11,743

11,809

35,275

35,602

Occupancy and equipment

4,029

4,279

12,251

12,559

(Gain) loss on sales of premises and equipment, net

(146

)

-

(137

)

90

Outside services

547

438

1,512

1,414

Professional services

491

479

1,200

1,488

Communication

188

215

707

698

Marketing

339

300

1,163

970

Amortization of intangible assets

233

256

707

768

Loss on debt extinguishment

1,768

-

1,768

1,351

Acquisition, conversion and other expenses

318

691

1,759

952

Other expenses

3,862

3,952

11,382

11,152

Total non-interest expense

23,372

22,419

67,587

67,044

Income before income taxes

13,734

10,548

36,702

30,742

Income tax expense

2,706

2,146

7,169

6,138

Net income

$

11,028

$

8,402

$

29,533

$

24,604

Earnings per share:

Basic

$

0.74

$

0.56

$

1.97

$

1.60

Diluted

0.73

0.56

1.96

1.60

Weighted average shares outstanding:

Basic

14,983

15,079

14,961

15,359

Diluted

15,051

15,103

15,035

15,382

BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(in thousands, except per share data)

2021

2021

2021

2020

2020

Interest and dividend income

Loans

$

25,094

$

23,191

$

24,205

$

26,687

$

25,918

Securities and other

3,821

3,992

3,979

4,013

4,557

Total interest and dividend income

28,915

27,183

28,184

30,700

30,475

Interest expense

Deposits

1,555

2,603

2,951

3,606

3,869

Borrowings

1,778

1,826

1,811

1,732

1,941

Total interest expense

3,333

4,429

4,762

5,338

5,810

Net interest income

25,582

22,754

23,422

25,362

24,665

Provision for credit losses

(174

)

(765

)

(489

)

1,360

1,800

Net interest income after provision for credit losses

25,756

23,519

23,911

24,002

22,865

Non-interest income

Trust and investment management fee income

3,868

3,801

3,666

3,318

3,532

Customer service fees

3,515

3,257

2,970

2,890

2,886

Gain on sales of securities, net

1,930

50

-

3,959

-

Mortgage banking income

850

1,553

2,570

2,654

2,649

Bank-owned life insurance income

494

498

518

482

492

Customer derivative income

341

86

410

1,086

316

Other income

352

260

114

334

227

Total non-interest income

11,350

9,505

10,248

14,723

10,102

Non-interest expense

Salaries and employee benefits

11,743

11,356

12,176

13,318

11,809

Occupancy and equipment

4,029

3,894

4,328

4,192

4,279

Loss (gain) on sales of premises and equipment, net

(146

)

1

8

(122

)

-

Outside services

547

533

432

571

438

Professional services

491

151

558

572

479

Communication

188

198

321

194

215

Marketing

339

534

290

415

300

Amortization of intangible assets

233

233

241

256

256

Loss on debt extinguishment

1,768

-

-

-

-

Acquisition, conversion and other expenses

318

552

889

4,849

691

Other expenses

3,862

4,272

3,248

3,571 ...