Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Investor Presentation (September 2018)
20 slides from Bar Harbor Bankshares's investor presentation, Sep 19, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018
Slide 2: Legal Disclaimer
Legal Disclaimer 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 state
Slide 3: Company Overview
Company Overview (NYSE American: BHB) Financial Highlights1 Asset and Income Generation Market Data Total Assets (MM's) Stock Price $29.45 3,565 Market Cap (MM's) $456 Price / LTM Core EPS 13.21x 3,541 Price / Tangible Book Value 184% 3,511 Dividend Yield 2.72% 3,503 Balance Sheet ($Million) 3,476 T
Slide 4: Second Quarter 2018 - Highlights & Initiatives
Second Quarter 2018 - Highlights & Initiatives A strong second quarter as BHB executed on our strategies and deliverables on financial performance. We diversified revenue streams, grew loans under a uniformed brand & banking franchise, and adhered to our strong credit culture. In addition to growing
Slide 5: 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 6: Management Team
Management Team Executive Background • Joined as President and CEO of Bar Harbor Bankshares and Bar Harbor Bank & Trust in June 2013 Curtis C. Simard • Served as Managing Director of Corporate Banking for TD Bank and various management positions at President and CEO Citizens Financial Group • Joined
Slide 7: Company History
Company History Ma ri on Colombo Acquisition of John Mercier hired as EVP, Bar Harbor Trust Rick Maltz hired Lake Sunapee hired to run Acquired Border Director of Retail Es tablished in Bar as Chief Operating Bank group – commercial Trust Company Del ivery Harbor, Maine Officer expansion into NH ban
Slide 8: Markets We Serve: Demographics / Economy
Markets We Serve: Demographics / Economy • Serving affluent and growing markets in the Maine, New Hampshire and Vermont • Strong employment evidenced by its major markets unemployment rates of 3.0% or less • Core markets have increasingly diversified into services industries while legacy manufacturi
Slide 9: Markets We Serve: Deposit Market Share
Markets We Serve: Deposit Market Share • Number 1 or 2 deposit market share position in 31 of the 42 communities we serve • Top 5 deposit market share position for 39 of the 42 communities we serve • 50 branch network provides strong geographical presence throughout our markets Maine Total Total Dep
Slide 10: Profitability Metrics
Profitability Metrics Core ROAA Core ROAE 1.01% 1.02% 9.97% 9.90% 1.00% 9.86% 0.94% 9.32% 9.31% 0.93% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Net Interest Margin Efficiency Ratio 3.16% 60.44% 58.83% 3.06% 3.04% 2.97% 54.57% 53.53% 2.91% 53.02% 2017Q2 2017Q3 2017Q4 2018Q
Slide 11: Focus on Non-Interest Income
Focus on Non-Interest Income Maximizing Existing Sources & Assets Under Management Developing New Initiatives $1,803 • Wealth Management and Financial Services $1,779 $1,754 $1,757 $1,759 ‒ Bar Harbor Financial Services ‒ Two wholly owned subsidiaries, Charter Trust and Bar Harbor Trust services off
Slide 12: Loan Portfolio Overview
Loan Portfolio Overview Portfolio Composition as of 6/30/18 Highlights Tax exempt Consumer and other 5% 3% • Net loans of $2.5 billion as of June 30, 2018 CRE 34% • Yield on loans of 4.25% for the quarter ended June 30, 2018 • Increase of 8.8 bps from 1Q18 Residential • Increase of 13.3 bps YTD 45%
Slide 13: Deposit Portfolio Overview
Deposit Portfolio Overview Portfolio Composition as of 6/30/18 Highlights Demand Time deposits 14% 41% • Total deposits of $2.4 billion as of June 30, 2018 NOW 19% • Opened 6,500 new deposit accounts YTD • Cost of interest bearing deposits of Savings 0.90% 15% Money Market 11% • Loans / Deposits of
Slide 14: Asset Quality
Asset Quality NPAs / Assets NCOs / Avg. Loans 0.50% 1.20% 1.00% 0.40% 0.80% 0.30% 0.59% 0.62% 0.60% 0.41% 0.20% 0.40% 0.20% 0.15% 0.07% 0.06% 0.10% 0.20% 0.03% 0.04% 0.01% 0.00% 0.00% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Reserves / Loans 1.20% 1.00% 0.80% 0.53% 0.48%
Slide 15: Well Capitalized Institution
Well Capitalized Institution 16.0% 13.8% 13.9% 13.9% 14.0% 13.6% 13.7% 12.3% 12.3% 12.4% 12.1% 12.2% 12.0% 11.5% 11.3% 11.4% 11.1% 11.3% 10.0% 8.6% 8.4% 8.5% 8.2% 8.3% 8.0% 7.3% 7.0% 7.1% 7.2% 7.2% 6.0% 4.0% 2.0% 0.0% 06/17 Q 09/17 Q 12/17 Q 03/18 Q 06/18 Q Tier 1 Leverage Ratio Common Equity Tier 1
Slide 16: Investment Considerations
Investment Considerations • Focused on building franchise value • Deep and talented management team • Profitable and efficient business model • Clear vision to grow core loan/deposit business • Development and expansion of non-interest income revenue • Proven ability to grow organically and via acqu
Slide 17: Appendix
Appendix
Slide 18: Historical Financial Performance
Historical Financial Performance Dollar values in thousands, except per share For the Year Ended, For the Quarter Ended, amounts or otherwise noted 2014Y 2015Y 2016Y 2017Y 2017Q3 2017Q4 2018Q1 2018Q2 Balance Sheet Total Assets $1,459 $1,580 $1,755 $3,565 $3,476 $3,565 $3,511 $3,541 Net Loans 910 981
Slide 19: Non-GAAP to GAAP Reconciliations
Non-GAAP to GAAP Reconciliations Dollar values in thousands, except per share 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 amounts or otherwise noted Net income 6,556 8,617 6,609 7,812 8,535 Adj: Security Gains - (19) - - - Adj: Loss on sale of fixed assets, net - (1) - - - Adj: Loss on OREO - - - - 23 Adj: M
Slide 20: 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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