Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Shareholder Meeting (May 2021)
28 slides from Bar Harbor Bankshares's shareholder meeting presentation, May 18, 2021
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 1
Slide 3: Overview of Bar Harbor Bank & Trust
Overview of Bar Harbor Bank & Trust 3 Company Overview • 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 • $2.7 billion in Assets U
Slide 4: Customers, Culture, Team
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Slide 5: Positioned for Future Success
Positioned for Future Success 5 2012 ‐ 2016 Expanded key executives Acquired Border Trust Company (2012) 2017 ‐ 2019 2020 and Beyond Acquired Lake Sunapee Bank Group (2017) Expanded key lending and retail executives Upgraded core systems Expanded treasury services Business Expanded foo
Slide 6: Seasoned Management Team
Seasoned Management Team Seasoned Leadership •Executive team has an average of over 26 years experience • Colleagues understand the value of working together to deliver results Curtis C. Simard President & Chief Executive Officer • Joined as President & CEO of Bar Harbor Bank & Trust in June of 2013
Slide 7: Committed to Building Thriving Communities
Committed to Building Thriving Communities Volunteer community service hours. 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 by employees for community causes supporting over 34 nonp
Slide 8: Delivering on Our Strategy
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Slide 9: BHB: Investment Summary
BHB: Investment Summary • Long before the COVID‐19 pandemic, 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 • Growing market share as our customer service differentiates us from our
Slide 10: 2020 Achievements
2020 Achievements 10 Customers, Culture and Team Delivering on Our Strategy Commitment to shareholders Successfully managed through the COVID‐19 pandemic • Continued to make branches and services available for customers during the pandemic • Worked to ensure our employees had the tools necessary to
Slide 11: SBA PPP Loan Summary
SBA PPP Loan Summary 11 2020 SBA PPP Originations1 2020 SBA PPP Income1 1Numbers in $ millions unless otherwise noted
Slide 12: Q1 2021 Overview
Q1 2021 Overview 12 Results1 Looking Forward….. • 1.03% return on assets; 1.11% core return on assets2 • 8% annualized total commercial loan growth, excluding PPP loans • 12% annualized increase in core‐deposits • 5% increase in pre‐tax, pre‐provision net revenue; 13% excluding non‐core charges2 • 2
Slide 13: Diversification and Growth of Non-Interest Income
Diversification and Growth of Non‐Interest Income • Continue to expand and diversify non‐interest income • Comparing Q1 2021 to Q1 2020 TTM (Trailing Twelve Months) non‐interest income is up 43.0% • Wealth Management Income is up 9% comparing Q1 2021 to Q1 2020 TTM, with AUM as of Q1 2021 totaling $
Slide 14: Prudent Balance Sheet Management
Prudent Balance Sheet Management 14 Liquidity Interest Rate Risk (IRR) Positioning & Modeling Enhancements • Grew total deposits by 9.8%, and opened 13,250 deposit accounts over the LTM ending Q1 2021 vs. Q1 2020 • Further reduced loan to deposit ratio to 87.9% for Q1 2021 vs. 99.4% in Q1 2020 • Enh
Slide 15: Loans – Focus on Profitability
Loans –Focus on Profitability 15 Total Loans ($ in millions) • Excluding PPP loans, total commercial loan growth increased an annualized 8% in Q1 • Continue to prudently evaluate our loan portfolio mix & strategy, currently pushing most residential mortgage product through secondary market platform,
Slide 16: Strong Credit-Oriented Culture
Strong Credit‐Oriented Culture • During Q1 2021, the Bank continued loan‐level stress testing on greater than 60% of the commercial loans outstanding: • All Hospitality loans over $250 million • All loans included in the Bank’s Top 50 relationships • All criticized/classified loans (relationships) o
Slide 17: Asset Quality (CECL Implementation 2021 Q1)
Asset Quality 17 (CECL Implementation 2021 Q1) ($000s) ($000s) ($000s) ($000s) 1Non‐performing loans to total loan ratio for Q1 2021, excluding purchase credit deteriorated PCD loans is 0.47%, or $12 million 1 1
Slide 18: Loan Deferral Trends
Loan Deferral Trends 18 Accommodation deferrals are both: • Scheduled to resume full P&I payments by June 2021 • Currently making interest‐only payments to the Bank
Slide 19: Deposits – Growing Core
Deposits –Growing Core • Continued focus and strong execution on moving to lower cost core deposits1 • Y‐o‐Y reduction of 24.4% of non‐core deposits, while increasing core deposits 9.9% • Reduction of 126bps in cost of core interest bearing deposits; reduction of 48bps in non‐core deposits Y‐o‐Y • N
Slide 20: Continued Commitment to Strong Capital
Continued Commitment to Strong Capital 20 4.0% 10.5% 7.0% Represents “required minimum” capital ratio plus buffer Source: Company filings, calculated at the holding company level
Slide 21: Prudent Capital Management – Stock Repurchase
Prudent Capital Management –Stock Repurchase 21 Source: Bloomberg LLP, Company Filings 1Current Market Price defined as market closing price ($28.78) as of May 5, 2021 Opportunistically repurchased shares below current market price1 • Received approval to repurchase up to 5% of common equity shares
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 Relatio
Slide 23: Appendix
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Slide 24: Historical Financial Performance
Historical Financial Performance 24 1Non‐GAAP financial measure 2Profitability, yield and cost metrics are based on average balance sheet amounts where applicable 3Exludes PPP loans
Slide 25: Non-GAAP to GAAP Reconciliations
Non‐GAAP to GAAP Reconciliations 25 1Assumes a marginal tax rate of 23.71% in the first quarter of 2021 and fourth quarter of 2020 and 23.87% for the first three quarters of 2020 2Non‐GAAP financial measure 3Efficiency ratio is computed by dividing core non‐interest expense net of franchise taxes an
Slide 26: Non-GAAP to GAAP Reconciliations (continued)
Non‐GAAP to GAAP Reconciliations (continued) 26 1Assumes a marginal tax rate of 23.71% in the first quarter of 2021 and fourth quarter of 2020 and 23.87% for the first three quarters of 2020 2Non‐GAAP financial measure 3Efficiency ratio is computed by dividing core non‐interest expense net of franch
Slide 27: Adoption of CECL
Adoption of CECL 27 Allowance for credit loss reconciliation1 1Note all figures in $000s unless otherwise noted
Slide 28: Interest Rate Risk Analysis
Interest Rate Risk Analysis 28 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 NII analysis below shows the impact of instantaneous parallel shifts in
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