Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Shareholder Meeting (May 2015)
25 slides from Bar Harbor Bankshares's shareholder meeting presentation, May 19, 2015
Slide 1: Bar Harbor Bankshares
BAR HARBOR BANKSHARES “enorme, Financial Condition December 31, 2014
Slide 2: Safe Harbor Statement
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Slide 3: 2014 General Economic Environment
2014 General Economic Environment «Continued slow pace of economic recovery “+Monetary policy leaning towards tightening Long terminterest rates near historic lows + Sporadic and localized improverentin real estate markets “Backdrop of heavy regulation _sIncreased expectations of customer delivery c
Slide 4: 2014 Environment Specific to BHB
2014 Environment Specific to BHB + Successful tourist season + Strong lobster landings + Strong wild blueberry season Weak loan demand exacerbated by brisk competition — ‘creates pricing and structure pressures + Improving our sales culture and the customer experience
Slide 5: Validation of Performance and Culture
Validation of Performance and Culture “American Banker, Top 200 Community Banks + "Best Places to Work in Maine” eae ‘est Places to TOP 200 Work in ME 4~. BAR HARBOR BANKSHARES Annual Shareholders’ Meeting » May 19, 2015
Slide 6: First Quarter 2015
First Quarter 2015 The momentum continues... Record Earnings +ROA- 1.06% *ROE- 10.57% = Commercial loan growth of $27 million, or 6.0% __*Stable credit quality : Increased shareholder divi ed
Slide 7: Investments in Our Future
Investments in Our Future 2014 Sample Investments + Branch renovations in Deer Isle & South China + E-Platform advancement: - Upgrade website and on-line banking - Launch tablet banking -Instant issue debit card capability Retail mobile capture -Social media entrance
Slide 8: Investments in Our Future
Investments in Our Future 2014 Sample Investments + Sales training to advance sales development and provide diversification within our risk appetite “Brand affirmation + Revised Employee Wellness Program launch 2016 Planned Strategic Objectives
Slide 9: Investments in Our Future
Investments in Our Future Improving the ‘Customer and Employee Experience drives performance and creates shareholder value and... is centralto the r Harbor Bank & Trust Brand
Slide 10: Financial Condition December 31, 2014
BAR HARBOR BANKSHARES “enorme, Financial Condition December 31, 2014
Slide 11: Total Assets
Total Assets ($in mitions) 31.500 12% Loans up 306.20, ore Lomns up 320.7, 2st au 10 2015 BAR HARBOR ANKSHARES Annual Shareholders’ Meeting » May 19, 2015
Slide 12: Loan Portfolio
Loan Portfolio rasta Lodging inaustyy represents SOT CRE mortgage perttolia BAR HARBOR BANKSHARES ‘Annual Shareholders’ Meeting » May 19, 2015
Slide 13: Investment Securities
Investment Securities Ug coven Ne municipal debt wh, obligations ated below investment grade + Postolo yield - 3.695% = Portola duration ~ Less than 8 years MuniipalDaat Obligations oe GseMaS ons BAR HARBOR TANKSHARES ‘Annual Shareholders’ Meeting » May 19, 2015
Slide 14: Non-Performing to Total Loans
Non-Performing to Total Loans 250% 200% 250% $— 2.36% Notaiecve feterersion 207% 150% 1.00% ogee ore 2010 zon 2012 2013 Ev BH2—=UBPRPeerGants BAR HARBOR ANKSHARES ‘Annual Shareholders’ Meeting » May 19, 2015
Slide 15: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans 0.60% ore Festorstie 0.40% 020% 0.00% BAR HARBOR BANKSHARES. Annual Shareholders’ Meeting » May 19, 2015
Slide 16: Total Deposits
Total Deposits ($in mittions) 00 00 700 0 00 10 200 2008” 2006” 2007 2008-2009 «0011-202 «2a 204 BAR HARBOR ANKSHARES ‘Annual Shareholders’ Meeting + May 19, 2015
Slide 17: "Well Capitalized"
a3 9 a “Well Capitalized” Capital Ratios ree Aaequse = Wel =BH8 4~. BAR HARBOR Annual Shareholders’ Meeting = May 19, 2015
Slide 18: Efficiency Ratio
BAR HARBOR Efficiency Ratio EHS Proxy Peer aUBPR eer Annual Shareholders’ Meeting » May 19, 2015
Slide 19: Net Income
Net Income ($in millions) a2 125 a3 1 | | : zor” 2008 2009” 2010 2011-2012” 2018 OM BAR HARBOR BANKSHARES ‘Annual Shareholders’ Meeting » May 19, 2015
Slide 20: EPS & Shareholder Dividends
EPS & Shareholder Dividends es up30.23, orga Divipenos up 30.07, eae BAR HARBOR BANKSHARES Annual Shareholders’ Meeting » May 19, 2015
Slide 21: Return On Average Assets
Return On Average Assets BAR HARBOR BANKSHARES Annual Shareholders’ Meeting » May 19, 2015
Slide 22: Total Shareholder Return
Total Shareholder Return COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN! scours tens a reg conga Segajeoey desvaee
Slide 23: Adjusted for Stock Split
3 for 2 Stock Split
Slide 24: Challenging Fundamentals
Challenging Fundamentals + Pace of economic recovery + Prolonged low interest rate environment + Managing interest rate risk Defending the net interest margin — acritical measure that requires a ae potas ‘eaming assets
Slide 25: Near-Term Challenges
Near-Term Challenges + Increasing core deposits Proactively manage increasing regulation + Sustaining credit discipline in the face of aggressive competition Deploying capital profitably “Balancing growth & earnings ~ The very foundation of our model ~
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