Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Investor Presentation (February 2022)
22 slides from Bar Harbor Bankshares's investor presentation, Feb 28, 2022
Slide 1: Investor Presentation March 2022
Investor PresentationMarch, 2022
Slide 2: Legal Disclaimer
Legal DisclaimerForward Looking StatementsCertain statements contained in this document that are not historical facts may constitute forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Act of1934,
Slide 3: Company Overview
Assets:$3,709Net Loans:$2,509Deposits:$3,049 Shareholder Equity:$424NPAs / Total Assets:0.27%Employees (FTE):423 Core Return on Avera g e Assets21.07%Core Return on Avera g e E q uit y 29.60%Net Interest Margin22.79%Stock Price$28.93Market cap (MM)$434Price / LTM Core EPS11.08xPrice / Tangible Book
Slide 4: Customers - Culture - Team
4I™. BAR HARBOR BANKSHARES een, Customers - Culture - Team BAR HARBOR CHARTER BAR HARBOR FINANCIAL SERVICES TRUST BAR HARBOR BANK & TRUST
Slide 5: Positioned for Future Success
Positioned for Future Success52012 -2016Expanded key executives Acquired Border Trust Company (2012)Acquired Lake Sunapee Bank Group (2016) 2017 -2019Expanded key lending and retail executivesUpgraded core systemsExpanded treasury services BusinessExpanded footprint in critical Southern New H
Slide 6: Seasoned Management Team
Seasoned Management Team Seasoned Leadership •Executive team has an average of over 26 years experience•Colleagues understand the value of working together to deliver results6Curtis C. SimardPresident & Chief Executive Officer•Joined as President and CEO of Bar Harbor Bank & Trust in June of 2013•Se
Slide 7: Committed to Building Thriving Communities
Committed to Building Thriving CommunitiesVolunteer community service hours. Over 2,000 of which was part of BHBT’s paid time volunteer program.Number of employees who volunteered their time to local charitable organizations.Dollars raised by employees for community causes supporting over 34 nonprof
Slide 8: BHB: Investment Summary
BHB: Investment Summary•Long before COVID, we set out to build a balanced Bank that is not reliant on any one business, with a strong risk-focused credit culture, and a judicious approach to managing capital•Growing market share as our customer service differentiates us from our competition•Focusing
Slide 9: 2021 Achievements
2021 Achievements9 Customers, Culture and Team Delivering on Our Strategy Commitment to Shareholders•Successfully managed through COVID-19•Continued to make branches and services available for customers during the pandemic•Worked to ensure our employees had the tools necessary to effectively do thei
Slide 10: SBA PPP Loan Update
SBA PPP Loan Update10•Originated $67.7 million in Round 2 PPP Loans in 2021•$6 million in income generated in 2021 by the Round 1 & 2 PPP Programs•$7 million in PPP Balances with a Net Fee of $219 thousand remaining at the end of 2021•Remaining PPP Balances expected to be forgiven by the end of Q1-2
Slide 11: Diversification and Growth of Fee Income
Diversification and Growth of Fee Income•Continue to expand and diversify fee income •Trust & Wealth Income up 13% in 2021•Customer Service Fees up 17% in 202111Numbers in $ millions unless otherwise noted
Slide 12: Prudent Balance Sheet Management
Prudent Balance Sheet Management12 Liquidity Interest Rate Risk (IRR) Positioning & Modeling Enhancements•Grew total deposits by 5% in 2021•Opened 16,041 deposit accounts in 2021•Further reduced loan-to-deposit ratio from 88% in Q4 2020 to 83% in Q4 2021•Continued Reduction in Wholesale Borrowings•T
Slide 13: Loans - Focus on Profitability
Loans –Focus on Profitability 13(in thousands)•Continue to prudently evaluate our loan portfolio mix & strategy, currently pushing most residential mortgage product through secondary market platform, allowing stronger growth in commercial loans•Excluding PPP loans, total commercial loan growth incre
Slide 14: Strong Credit-Oriented Culture
Strong Credit-Oriented Culture•All loans with COVID-19-related deferrals have resumed regularly scheduled P&I payments.•Net Recoveries were achieved in Q4-2021, with declining levels of non-performing loans.•Continuing to maintain $0 in Bank-owned Real Estate (OREO) from foreclosure activity.•With C
Slide 15: Asset Quality Metrics
Asset Quality Metrics15(in thousands)(in thousands)(in thousands) NCOsNCOs/Average Loans NPLsNPLs/Total Loans (period end) ACLACL/Total Loans (period end)
Slide 16: Deposits - Growing Core
Deposits –Growing Core•Continued focus and strong execution on moving to lower cost core deposits•Y-o-Y reduction of time deposits from 24% to 14% of total deposits•Non-interest bearing deposits increased from 19% to 22% of total deposits16(in thousands)
Slide 17: Investor Relations Contact Information
Investor Relations Contact Information17Facebook@BHBTsocialLinkedInBar Harbor Bank & TrustTwitter@barharborbankConnect with us on Social MediaVisit our Websitewww.barharbor.bank/shareholder-relationsContact by Phone(207) 288-2637Write to us atBar Harbor Bankshares Attn: Investor Relations PO Box 400
Slide 18: Appendix
4I™ BAR HARBOR BANKSHARES eo = Appendix BAR HARBOR CHARTER BAR HARBOR FINANCIAL SERVICES TRUST BAR HARBOR BANK & TRUST
Slide 19: Historical Financial Performance
Historical Financial Performance19 2018Y2019Y2020Y2021Y2021Q12021Q22021Q32021Q4Total Assets$3,608$3,669$3,724$3,709$3,730$3,639$3,738$3,709Total Loans2,4882,6352,5632,5322,5512,5162,5342,532Total Deposits2,4832,6962,9063,0492,6512,6952,9353,049Total Equity$371$396$407$424$405$414$418$424Tang. Common
Slide 20: Non-GAAP to GAAP Reconciliations
Non-GAAP to GAAP Reconciliations201Assumes a marginal tax rate of 23.71%.2Non-GAAP financial measure.3Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided bycore revenue on a fully taxable equivalent basis. GAAP net income8,640
Slide 21: Non-GAAP to GAAP Reconciliations (continued)
Non-GAAP to GAAP Reconciliations (continued)211Assumes a marginal tax rate of 23.71%.2Non-GAAP financial measure.3Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided bycore revenue on a fully taxable equivalent basis. Averages
Slide 22: Interest Rate Risk Analysis
Interest Rate Risk Analysis22On a quarterly basis, the company measures and reports NII and EVE at risk to isolate the change in income and value related solely to interest-earning assets and interest-bearing liabilities. The NII analysis below shows the impact of instantaneous parallel shifts in th
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