Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Shareholder Meeting (May 2022)
27 slides from Bar Harbor Bankshares's shareholder meeting presentation, May 17, 2022
Slide 1: Annual Shareholders Meeting
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Slide 2: Legal Disclaimer
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
Slide 3: A Bank that Thinks Differently
A Bank that Thinks Differently • Employee and customer experience is the foundation of superior performance, which leads to significant financial benefit to shareholders • Geography, heritage and performance are key while being relentlessly committed to a service and sales driven culture with a focu
Slide 4: Overview of Bar Harbor Bank & Trust
Overview of Bar Harbor Bank & Trust • We strive to be one of the most profitable banks in New England; and to provide exceptional service to people, businesses and communities we serve • Business overview • Over 50 locations spanning Northern New England 1 • $ 2.4 billion in AUM in wealth management
Slide 5: Customers, Culture, Team
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Slide 6: Positioned for Future Success
Positioned for Future Success 6 2012 - 2016 ✓ Expanded key executives ✓ Acquired Border Trust Company (2012) ✓ Acquired Lake Sunapee Bank Group (2016) 2017 - 2019 ✓ Expanded key lending and retail executives ✓ Upgraded core systems ✓ Expanded treasury services Business ✓ Expanded footprint in critic
Slide 7: Senior Executive Team
Senior Executive Team Curtis C. Simard President & Chief Executive Officer • Joined as President & CEO of Bar Harbor Bank & Trust in June of 2013 • Served as Managing Director of Corporate Banking for TD Bank • Over 25+ years of industry experience SVP, Chief Human Resources Officer Alison DiPaola •
Slide 8: Our Markets
Our Markets The Bank serves a wide range of markets in Maine, New Hampshire and Vermont. Within our markets, tourism, agriculture, and fishing remain strong and continue to drive economic activity. These core markets have also maintained their strength through diversification into various services i
Slide 9: Committed to Building Thriving Communities
Committed to Building Thriving Communities Volunteer community service hours in 2021. Over 1,000 of which was part of BHBT’s paid time volunteer program .. Number of employees who volunteered their time to local charitable organizations. Dollars raised in 2021 by employees for community causes suppo
Slide 10: Delivering on Our Strategy
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Slide 11: BHB: Investment Summary
BHB: Investment Summary • W e 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 through all market conditions • Growing market share as our customer service differentiates us from our co
Slide 12: 2021 Achievements
2021 Achievements 12 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 effective
Slide 13: Q1 2022 Overview
Q1 2022 Overview • Poised for Growth • 21 % annualized commercial loan growth • 8 7 % loan to deposit ratio • 2.95 % net interest margin, compared to 2.88 % • 11 % increase in fee - based revenue • 0.25 % non - performing asset ratio to total assets, compared to 0.38% • Wealth Management Conversion
Slide 14: Diversification and Growth of Non-Interest Income
Diversification and Growth of Non‐Interest Income • Wealth Management and Customer Service Fees continue to grow • Wealth Management Fees grew 2 % from Q1 2021 to Q1 2022, while Customer Service Fees grew 22% • Market conditions drove outsized Mortgage Banking Fees in Q1 2021 14 In Thousands
Slide 15: Prudent Balance Sheet Management
Prudent Balance Sheet Management 15 Liquidity Interest Rate Risk (IRR) Positioning & Modeling Enhancements • Grew total deposits by 5% from Q1 2021 to Q1 2022 • Non - Maturity deposits grew from 78% to 87% of Total Deposits from Q1 2021 to Q1 2022 • Continued reduction in Wholesale Borrowings includ
Slide 16: Loans – Focus on Profitability
Loans – Focus on Profitability • 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 • Commercial Loans have increased from 46% to 64% of the Loan Portfol
Slide 17: SBA PPP Loan Summary
SBA PPP Loan Summary • 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 • Minimal PPP Balances remain as of 3/31/2022 and are expect
Slide 18: 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 and Q1 2022, with declining levels of non - performing loans • Continuing to maintain $0 in Bank - owned Real Estate (OREO) from fo
Slide 19: Asset Quality
Asset Quality 19 0.03% 0.01% 0.03% - 0.02% - 0.01% (200) (150) (100) (50) - 50 100 150 200 250 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net Charge Off - $ and as a % of Average Loans 0.38% 0.37% 0.33% 0.27% 0.25% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1
Slide 20: Deposits – Growing Core
Deposits – Growing Core 20 • Continued focus and strong execution on moving to lower cost core deposits • Y - o - Y reduction of time deposits from 22% to 13% of total deposits • Non - interest bearing deposits increased from 20% to 21% of total deposits In Thousands
Slide 21: Continued Commitment to Strong Capital
Continued Commitment to Strong Capital 21 Note: The blue horizontal lines indicate minimum required levels for “well - capitalized” banks 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Total Capital to Risk - Weighted Assets 7.00% 7.50% 8.00
Slide 22: Investor Relations Contact Information
Investor Relations Contact Information 22 Facebook @BHBTsocial LinkedIn Bar Harbor Bank & Trust Twitter @barharborbank Connect with us on Social Media Visit our Website www.barharbor.bank/shareholder - relations Contact by Phone (207)288 - 2637 Write to us at Bar Harbor Bankshares Attn: Investor Rel
Slide 23: Appendix
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Slide 24: Historical Financial Performance
Historical Financial Performance 24 2018Y 2019Y 2020Y 2021Y 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 Total Assets $3,608 $3,669 $3,724 $3,709 $3,730 $3,639 $3,738 $3,709 $3,692 Total Loans 2,488 2,635 2,563 2,532 2,551 2,516 2,534 2,532 2,655 Total Deposits 2,483 2,696 2,906 3,049 2,651 2,695 2,935 3,049
Slide 25: Non-GAAP to GAAP Reconciliations
Non‐GAAP to GAAP Reconciliations 25 Dollar values in thousands, except per share amounts or otherwise noted GAAP net income 8,640 9,480 9,025 11,028 9,766 39,299 9,112 Plus (less): Gain sale of securities, net (3,959) - (50) (1,930) (890) (2,870) (9) (Gain) loss on sale of fixed assets, net (122) 8
Slide 26: Non-GAAP to GAAP Reconciliations (continued)
Non‐GAAP to GAAP Reconciliations (continued) 26 Dollar values in thousands, except per share amounts or otherwise noted Averages Total average earning assets (E) $3,388 $3,359 $3,398 $3,412 $3,440 $3,373 $3,386 Total average assets (F) 3,756 3,717 3,746 3,764 3,764 3,718 3,712 Total average sharehol
Slide 27: Interest Rate Risk Analysis
Interest Rate Risk Analysis 27 Change in Change Change Change in Change Change Interest Rates NII NII Interest Rates EVE EVE (basis points) ($ millions) ( % ) (basis points) ($ millions) ( % ) +400 26.66 26.77% +400 79.47 19.62% +300 20.81 20.90% +300 69.98 17.28% +200 14.66 14.72% +200 54.10 13.36%
Bar Harbor Bankshares — Shareholder Meeting (May 2022) on 6ix