Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Shareholder Meeting (May 2014)
25 slides from Bar Harbor Bankshares's shareholder meeting presentation, May 21, 2014
Slide 1: Annual Shareholders' Meeting May 20, 2014
Slide 2: Forward-looking statements
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Slide 3: 2013 General Economic Environment
2013 General Economic Environment * Slow pace of economic recovery ¢ Monetary policy targeted at maintaining low interest rates ¢ Slightly improving real estate markets Inconsistent unemployment statistics Pn! of heavy regulation
Slide 4: 2013 Environment Specific to BHB
2013 Environment Specific to BHB + Reasonably successful tourist season despite political forces causing pvo park closures + Strong lobster landings + Strong wild blueberry season * Weak loan demand exacerbated by brisk competition — creates pricing and structure pressures
Slide 5: 2013 Financial Achievements
2013 Financial Achievements + Record earnings & EPS * Increased dividends in every quarter ¢ Higher levels of net interest income and non- interest income evidencing solid performance in all divisions Efficiency ratio of 55.8% 4y~ FO iBar HaRsoR| Tro
Slide 6: 2013 Financial Achievements
2013 Financial Achievements Average earning asset growth approaching $100mm Slowing Net Interest Margin compression Stable Credit Quality —a key measure amidst rebounding competition Prudent if not conservative Capital Ratios
Slide 7: Validation of Performance and Culture
Validation of Performance and Culture SANDLER 2074 AMERICA BANKER O'NEILL + PARTNERS COMMUNITY BANKS an BAR H, i iis?
Slide 8: First Quarter 2014
First Quarter 2014
Slide 9: Financial Condition December 31, 2013
Slide 10: Total Assets
$0 + 825 148 Total Assets (Gin millions) Total Assets up $7L.0m, or 5.4%
Slide 11: Loan Portfolio
Loan Portfolio 12/31/13 + Lodging industry represents Tax6) Home Equity "*52emet 32.6%6 of CRE mortgage 6% portfolio Consumer 2% CRE 39% Residential RE 37% 4 ~~ [Bar HaRBoR|
Slide 12: Investment Securities
Investment Securities eons *No municipal debt obligations ae rated below investment grade Private Label MES cre Municipal Debt esemas ci 1 ~ IBAR Harwor}
Slide 13: Non-Performing to Total Loans
Non-Performing to Total Loans 5.00%
Slide 14: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans ‘One relationship 0.60% 0.40% 37%
Slide 15: Total Deposits
Total Deposits (Gin millions) Up $39.9m, oF 5.0% |
Slide 16: "Well Capitalized"
“Well Capitalized” Capital Ratios
Slide 17: Efficiency Ratio
Efficiency Ratio 80.0% 5 10.0% — 60.0% 50.0% 40.0%
Slide 18: Net Income Available to Common Shareholders
Net Income Available to Common Shareholders (Gin millions) $14.0 $12.0 $10.0 $8.0. $6.0 $40 + Up $717k, or 5.8%
Slide 19: EPS & Shareholder Dividends
EPS & Shareholder Dividends ‘Up $0.16, or 5.0%
Slide 20: Return On Average Assets
Return On Average Assets 1.02% C 0.98% 0.98% 96% 0,97%1,00% 0.7784 0.039 09.2010 ee
Slide 21: Return On Average Equity
14.00% Return On Average Equity 12.00% oo 12.069 10.00% 8.00% — 6.00% 4.00% —
Slide 22: Total Shareholder Return
Total Shareholder Return COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN™ Among Bar Harbor Bankshares, and the ABA Nasdaq Community Bank Index
Slide 23: Headwinds requiring sustained focus
Headwinds requiring sustained focus ¢ Pace of economic recovery ¢ Prolonged low interest rate environment ¢ Managing interest rate risk ¢ Defending the net interest margin - a critical measure that requires superior customer experience
Slide 24: Near-Term Challenges
Near-Term Challenges Increasing core deposits Managing increasing government regulation Sustaining credit discipline in the face of aggressive competition Deploying capital profitably
Slide 25: Slide 25
Bar Harbor Bankshares — Shareholder Meeting (May 2014) on 6ix