Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Shareholder Meeting (May 2023)
29 slides from Bar Harbor Bankshares's shareholder meeting presentation, May 17, 2023
Slide 1: Annual Meeting of Shareholders
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Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements This presentation, including any oral statements made regarding the contents of this presentation, contains certain statements that are not historical facts that may constitute forward-looking statements within the meaning of Section 27A of the Securities
Slide 3: Legal Disclaimer: Non-GAAP Financial Measures
Legal Disclaimer Non-GAAP Financial Measures This presentation 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 reade
Slide 4: A Bank that Thinks Differently
A Bank that Thinks Differently • Employee and customer experience is the foundation of our performance, which leads to financial benefit to shareholders • Geography, heritage, and performance are key while remaining true to a culture that has long-term commitment to its communities • Commitment to r
Slide 5: How is Bar Harbor Bank & Trust different?
How is Bar Harbor Bank & Trust different? We have adhered to a strategy of prudent growth for over 135 years. We take deposits from neighbors and lend to neighbors. • We like to lend money. We have an investment portfolio, but we don’t run it as a separate line of business and it is purposefully sca
Slide 6: 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 as of March 31, 2023 • Over 50 locations spanning Northern New England1 • $2.3 billion in AUM i
Slide 7: Customers, Culture, Team
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Slide 8: 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 9: 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 10: Strategy is working and the industry is taking notice
Strategy is working and the industry is taking notice 10
Slide 11: Fostering Sustainable Communities
Fostering Sustainable Communities 11 As a community bank, we recognize that we are successful when our customers and communities prosper We make significant investments in technology, our people, and branches. Our more than 50 branches are staffed by friendly, knowledgeable bankers who are driven by
Slide 12: Committed to building thriving communities
Committed to building thriving communities Volunteer community service hours in 2022. Over 2,000 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 2022 by employees for community causes support
Slide 13: Delivering on Our Strategy
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Slide 14: BHB: Investment Summary
BHB: Investment Summary • We 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. We intend to do this by: • Growing market share as our customer service differ
Slide 15: 2022 Full Year Overview
2022 Full Year Overview • Poised for Continued, Profitable Growth • 1.17% core return on assets, compared to 1.10% • 15% annualized loan growth • 4% annualized non-maturity deposit growth • 3.36% net interest margin, compared to 2.88% • 59% efficiency ratio, compared to 61% 1 • 0.17% non-performing
Slide 16: Q1 2023 Overview
Q1 2023 Overview • 1.36% return on assets, compared to 1.00% • 12.96% return on equity, compared to 8.89% • 8% annualized commercial loan growth • 3.54% net interest margin, compared to 2.95% • 55% efficiency ratio, compared to 62% • 0.20% non-performing assets ratio to total assets, compared to 0.2
Slide 17: Diversification of Non-Interest Income
Diversification of Non‐Interest Income • Customer Service Fee Income grew 2% year-over-year, while Other Income grew 17% • Mortgage production is opportunistically managed between balance sheet and secondary market sales • In periods of low interest rates, market conditions drove outsized Mortgage B
Slide 18: Loans – Focus on Profitability
Loans – Focus on Profitability • Continue to prudently evaluate our loan portfolio mix & strategy • As of Q1 2023, Commercial Loans have increased from 49% to 66% of the Loan Portfolio since Q1 2018 18
Slide 19: Credit-Oriented Culture
Credit-Oriented Culture Asset Quality Remained Strong at Q1 2023 • Total delinquencies remain low at 0.41% of total loans • Non-accruing loans were relatively steady at 0.26% of total loans at Q1 2023 • 2023 Q1 reflects a nominal net charge-off position 19 • Q1 2023 allowance for credit losses remai
Slide 20: Commercial Real Estate – Office Exposure
Commercial Real Estate – Office Exposure Office portfolio remains sound amid industry challenges • Total outstanding office loans of $246 million, or ~ 8% of total loans, at Q1 2023 • 99% of total Office Exposure is pass-rated • Weighted average risk rating of 3.89 for Office, compared to 4.08 for t
Slide 21: Asset Quality
Asset Quality 21 In Thousands (200) (150) (100) (50) - 50 100 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Charge Offs 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 NPAs as a % of Total Assets 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% Q1 2022 Q2 2022 Q3
Slide 22: Deposits – Maintain Portfolio Composition
Deposits – Maintain Portfolio Composition 22 • Shift in deposit composition due to customer preference for time deposits • Time deposit balances flat on a year-over-year basis • Non-interest bearing deposits remain at approximately 21% of total deposits
Slide 23: Continued Commitment to Strong Capital
Continued Commitment to Strong Capital Note: The blue horizontal lines indicate minimum required levels for “well-capitalized” banks 23 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Total Capital to Risk-Weighted Assets 6.00% 7.00% 8.00% 9.
Slide 24: Interest Rate Sensitivity Position
Interest Rate Sensitivity Position 24 • The Bank repositioned its net interest income (“NII”) sensitivity over the past year, moving from a fairly asset sensitive position (to take advantage of the rising rate environment) towards a more neutral position as we near the top of the rate cycle • More t
Slide 25: Investor Relations Contact Information
Investor Relations Contact Information 25 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 Relatio
Slide 26: Appendix
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Slide 27: Historical Financial Performance
Historical Financial Performance 27 Audited Unaudited 2018Y 2019Y 2020Y 2021Y 2022Y 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 Total Assets $3,608 $3,669 $3,724 $3,709 $3,910 $3,692 $3,716 $3,840 $3,910 $3,928 Total Loans 2,488 2,635 2,563 2,532 2,903 2,655 2,727 2,850 2,903 2,944 Total Deposits 2,483 2,696
Slide 28: Non-GAAP to GAAP Reconciliations
Non‐GAAP to GAAP Reconciliations Dollar values in thousands, except per share amounts or otherwise noted 28 Audited GAAP net income 39,299 9,112 10,503 11,430 12,512 43,557 13,012 Plus (less): Gain sale of securities, net (2,870) (9) - (44) - (53) (34) (Gain) loss on sale of fixed assets, net 378 (7
Slide 29: Non-GAAP to GAAP Reconciliations (continued)
Non‐GAAP to GAAP Reconciliations (continued) Dollar values in thousands, except per share amounts or otherwise noted 29 Audited Averages Total average earning assets (E) $3,373 $3,386 $3,372 $3,459 $3,517 $3,425 $3,585 Total average assets (F) 3,718 3,712 3,688 3,772 3,818 3,747 3,885 Total average
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