Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Q2 2019 Earnings Presentation
22 slides from Bar Harbor Bankshares's earnings presentation, Jul 30, 2019
Slide 1: Investor Presentation July 31, 2019
Investor Presentation July 31, 2019
Slide 2: Company Overview
Company Overview (NYSE American: BHB) All financial data as of June 30, 2019 except BHB common equity price, which is as of July 24, 2019. 2
Slide 3: Second Quarter 2019 - Highlights & Initiatives
Second Quarter 2019 - Highlights & Initiatives A solid quarter that has started to shown the dividends of our strategies and ability to execute those strategies. Initiatives supporting and expanding loan growth, deposits and non-interest income continue to be a core focus. • Announced acquisition of
Slide 4: Central Maine Branch Acquisition Highlights
Central Maine Branch Acquisition Highlights Supporting Strategic Goals • Materially strengthens presence in Maine, fills in footprint around Bangor • 8 Full-service branches across Maine, adding to our existing 14 branches • Total estimated deposits of $287 MM and loans of $111 MM, as well as $284 M
Slide 5: Markets we Serve: Deposit Market Share
Markets we Serve: Deposit Market Share Blue Pins = BHB Retail Branches Yellow Pins = PUB acquired branches1 1PUB (People’s United Bank) acquired branches are branches acquired as part of the Transaction. Maine market data includes PUB acquired branches and deposits. Note: See appendix for GAAP recon
Slide 6: Strategic Objectives
Strategic Objectives We strive to be one of the most profitable banks in New England; to provide exceptional service to the people, businesses and communities we serve; and create a corporate culture that develops and rewards existing employees and attracts outside talent. To be one of the most prof
Slide 7: 2019 Outlook and Priorities
2019 Outlook and Priorities 2019 is about continuing to improve performance metrics while fine-tuning the way we operate and conduct our business to realize our greatest potential. • Expense and Revenue efficiency review in second half of 2019, including a branch optimization study • Debit card inst
Slide 8: Management Team
4m Management Team BAR HARBOR BANKSHARES Executive Curtis C. Simard President and CEO Josephine lannelli EVP, Chief Financial Officer & Treasurer Richard B. Maltz |EVP, Chief Operating & Risk Officer John Mercier EVP, Commercial Banking Marion Colombo EVP, Retail Delivery Background * Joined as Pres
Slide 9: Company History
Company History BAR HARBOR BANKSHARES —_— Acquisition of Lake Sunapee John Mercier Bank group — hired to run expansion into NH commercial Marlon cononibe Say and VT markets banking in NH and hired as EVP, as Chief Operating MT Director of Retail Officer Delivery Further Expansion into Southern NH Ba
Slide 10: Profitability Metrics
Profitability Metrics Core ROAA Core ROAE 1.00% 1.01% 1.03% 9.86% 9.98% 10.01% 0.83% 7.83% 0.70% 6.57% 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 Net Interest Margin Efficiency Ratio 2.91% 68.48% 2.81% 63.94% 2.78% 2.77% 59.91% 58.83% 2.65% 57.88% 2018Q2 2018Q3 2018Q4 2019
Slide 11: Focus on Non-Interest Income
Focus on Non-Interest Income Maximizing Existing Sources & Developing New Initiatives • Wealth Management and Financial Services ‒ Bar Harbor Financial Services ‒ Two wholly owned subsidiaries, Charter Trust and Bar Harbor Trust services offering trust management services • $1.8B AUM ‒ Total Revenue
Slide 12: Loan Portfolio Overview
Loan Portfolio Overview • Net loans of $2.6 billion as of June 30, 2019 • Yield on loans of 4.39% for the quarter ended June 30, 2019 • Increase of 8 bps YTD • QTD Annualized Loan Growth of 8.1% 2018 Q2 2019 Q2 Source: Company filings 12
Slide 13: Deposit Portfolio Overview
Deposit Portfolio Overview • Total deposits of $2.48 billion as of June 30, 2019 • Year-over-Year deposit growth of 4.49% • Loans / Deposits of 104% Source: Company filings 13
Slide 14: Asset Quality
Asset Quality NCOs / Avg. Loans NPAs / Assets 0.50% 1.20% 0.40% 1.00% 0.80% 0.30% 0.62% 0.61% 0.57% 0.52% 0.50% 0.60% 0.20% 0.40% 0.06% 0.10% 0.04% 0.03% 0.03% 0.20% 0.00% 0.00% 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 Reserves / Loans 1.20% 1.00% “Average risk rating on
Slide 15: Well Capitalized Institution
Well Capitalized Institution Source: Company filings, calculated at holding company level 15
Slide 16: Investment Considerations
Investment Considerations • Focused on building franchise value • Deep and talented management team • Team, platform and strategy in place to generate efficient growth • Profitable and efficient business model • Clear vision to grow core loan/deposit business • Development and expansion of non-inter
Slide 17: Appendix
Appendix
Slide 18: Legal Disclaimer: Forward Looking Statements
Legal Disclaimer Forward Looking Statements Certain statements 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 Act of 1
Slide 19: Legal Disclaimer: Non-GAAP Financial Statements
Legal Disclaimer Non-GAAP Financial Statements 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
Slide 20: Historical Financial Performance
Historical Financial Performance Source: Company filings 20
Slide 21: Non-GAAP to GAAP Reconciliations
Non-GAAP to GAAP Reconciliations 1Assumes a marginal tax rate of 23.78% in 2019. A marginal tax rate of 24.15% was used in the first and second quarter of 2018 and 23.78% was used in the third and fourth quarter of 2018 2 Non-GAAP financial measure. 3 Efficiency ratio is computed by dividing adjuste
Slide 22: Interest Rate Risk Analysis
Interest Rate Risk Analysis On 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 analysis below shows the impact of instantaneous parallel shifts in the mar
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