Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Shareholder Meeting (May 2017)
27 slides from Bar Harbor Bankshares's shareholder meeting presentation, May 16, 2017
Slide 1: Annual Shareholders' Meeting May 16, 2017
Annual Shareholders’ Meeting May 16, 2017
Slide 2: Forward Looking Statements and Non-GAAP Financial Statements
Forward Looking Statements This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. There are several factors that could cause actual results to differ significantly from expectations described in the forward-looking statements. For a disc
Slide 3: A True Community Bank
A True Community Bank We understand the unique opportunities and challenges our customers face We provide exceptional support to the people, businesses and communities in the places we call home Our people are resourceful and friendly, and our customers can count on them to help find solutions
Slide 4: Preparing For Our Future
Invested in Processes, Products, Technology, Training, Leadership and Infrastructure Expanded our brand and business model into markets with similar geographic attributes and like-minded partners Created opportunity and growth for existing employees, while adding catalyst recruits across all l
Slide 5: 2016 Achievements
2016 Achievements Announced the acquisition of Lake Sunapee Bank Group (“LSBG”) in May 2016 and closed the transaction in January 2017 Total assets increased $175 million in the year to $1.8 billion Strong loan growth of 14% and deposit growth of 11% Net income of $14.9 million, which includ
Slide 6: Only community bank in New England with presence in Maine, New Hampshire, Vermont
We are now the only community bank based in New England with a branch presence in Maine, New Hampshire, and Vermont 6
Slide 7: First Quarter 2017 Highlights
First Quarter 2017 Highlights (comparisons are to first quarter 2016 unless otherwise stated) Completed acquisition of Lake Sunapee Bank Group on January 13, 2017 $3.4 billion in total assets, including $1.6 billion added from the acquisition Achieved 13% annualized organic total loan growth w
Slide 8: Larger Scale . . . Same Culture and Model
Larger Scale . . . Same Culture and Model Assets: $3.4 billion Loans: $2.4 billion Deposits: $2.2 billion Core Net Income: $6.2 million AUM: $1.8 billion Branches: 53 including 4 locations for Trust and Insurance only Footprint: Maine, New Hampshire, Vermont Shareholders’ Equity: $34
Slide 9: One Bank…One Culture
One Bank…One Culture Expanded Footprint creates greater opportunities Population and number of household data based on counties in which Bar Harbor has a presence after the acquisition Source: SNL Financial, Nielsen Estimates Local Population 1.1M # of Households 450K # of Communities 42 Number of C
Slide 10: Expansion that includes Demographically Appealing Markets
Expansion that includes Demographically Appealing Markets 10 Demographic data is deposit weighted by county Source: SNL Financial, Nielsen Estimates Projected Household Income Growth 2017-2022 Median Household Income 2017 In addition to the organic growth opportunity in Maine, expansion into New H
Slide 11: Strong Market Share with Growth Opportunity
Strong Market Share with Growth Opportunity 11 Source: SNL Financial. Deposit market share as of June 30, 2016 by city In the top 5 deposit market share position for 39 of the 42 communities we serve #2 Rank #3 Rank #4 Rank #5 Rank Other #1 Rank Number 1 or 2 deposit market share position in 31
Slide 12: Validation of Our Approach
Validation of Our Approach 12
Slide 13: Financial Performance: Earnings Per Share
Financial Performance Earnings Per Share 13 2012Y 2013Y 2014Y 2015Y 2016Y $1.41 $1.48 $1.63 $1.67 $1.63 $1.33 $1.45 $1.60 $1.57 $1.50 Reported EPS Core EPS 2016Q1 2017Q1 $0.48 $0.29 $0.38 $0.43 Reported EPS Core EPS A reconciliation of non-GAAP financial measures to GAAP measures are included in the
Slide 14: Financial Performance: Dividends Per Share
Financial Performance Dividends Per Share 14 Prior year amounts restated for 3-for-2 stock split completed in the first quarter of 2017 2012Y 2013Y 2014Y 2015Y 2016Y $0.520 $0.555 $0.603 $0.673 $0.727 2016Q1 2017Q1 $0.177 $0.187
Slide 15: Financial Performance: Return on Average Assets
15 Financial Performance Return on Average Assets (%) A reconciliation of non-GAAP financial measures to GAAP measures are included in the first quarter earnings release and Form 10-Q which can be found at www.bhbt.com, as well as within the attached Appendix. As necessary for comparative purposes,
Slide 16: Financial Performance: Return on Average Equity
16 Financial Performance Return on Average Equity (%) A reconciliation of non-GAAP financial measures to GAAP measures are included in the first quarter earnings release and Form 10-Q which can be found at www.bhbt.com, as well as within the attached Appendix. As necessary for comparative purposes,
Slide 17: Improved Fee Income and Continued Operating Efficiency
17 2015Y 2016Y 2017Q1 14.57 14.75 21.87 Non-Interest Income / Operating Revenue (%) Financial Performance Improved Fee Income and Continued Operating Efficiency 2015Y 2016Y 2017Q1 56.68 59.84 62.60 Efficiency Ratio (%) A reconciliation of non-GAAP financial measures to GAAP measures are included in
Slide 18: Loans
Loans 18 2015Y 2016Y 2017Q1 $990 $1,129 $2,372 Strong organic growth complemented by Lake Sunapee acquisition in 2017 Loans 2015Y 2016Y 3/31/2017 62.7 64.3 69.2 Loans / Assets (%) 14% organic growth 13% organic growth LSBG $1,208 $ millions A reconciliation of non-GAAP financial measures to GAAP mea
Slide 19: Strengthened Balance Sheet Mix
Strengthened Balance Sheet Mix 19 Less reliance on wholesale funding 2015Y 2016Y 3/31/2017 66.4 65.9 71.4 Deposits / Liabilities (%) 2015Y 2016Y 2017Q1 $943 $1,050 $2,174 Deposits $ millions Liabilities exclude subordinated debt and trust preferred debt.
Slide 20: Loan Composition
Loan Composition (As of 3/31/17) 20 CRE 33% C&I 10% Residential 49% Home Equity 5% Consumer & Other 3%
Slide 21: Superior Credit Quality
Superior Credit Quality 21 2012Y 2013Y 2014Y 2015Y 2016Y 2017Q1 1.02 0.84 0.95 0.61 0.53 0.19 NPAs / Assets (%) 2012Y 2013Y 2014Y 2015Y 2016Y 2017Q1 0.23 0.12 0.15 0.14 0.00 0.06 Net Charge-Offs / Average Loans (%)
Slide 22: Strong Capital Position
Strong Capital Position 22 TCE/TA Leverage Ratio Tier 1 Ratio Total Risk Based Ratio 9.4 9.4 15.6 17.1 8.7 8.9 15.0 16.5 7.0 8.0 12.1 13.6 12/31/2015 12/31/2016 3/31/2017 Well-Capitalized
Slide 23: Increasing Capital and Market Value
Increasing Capital and Market Value 23 $0 $100 $200 $300 $400 $500 $600 2015Y 2016Y 3/31/2017 $149 $151 $232 $207 $288 $509 Tangible Common Equity Market Value $ millions
Slide 24: Comparison of Five Year Cumulative Total Return
Comparison of 5 Year Cumulative Total Return* Copyright© 2017 Standard & Poor's, a division of S&P Global. All rights reserved. $0 $50 $100 $150 $200 $250 $300 12/11 12/12 12/13 12/14 12/15 12/16 Bar Harbor Bankshares NYSE MKT Composite S&P 500 ABA Nasdaq Community Bank Index *$100 invested on 12/31
Slide 25: The Path Forward
The Path Forward Leverage our size and expanded footprint while maintaining our community, customer, and employee focus as our most important asset Maintain our traditionally strong performance metrics – Continually becoming more core and less wholesale with an improving product suite – Execute
Slide 26: Appendix
Appendix
Slide 27: Reconciliation of GAAP to Non-GAAP Financials
27 Reconciliation of GAAP to Non-GAAP Financials 2 Year Ended December 31, March 31, March 31, 2012 2013 2014 2015 2016 2016 2017 Net Income: Net income, as reported 12,466$ 13,183$ 14,613$ 15,153$ 14,933$ 4,406$ 4,211$ Merger related expense, net of tax (1) - - - - 1,723 - 1,943 Securities gains, n
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