Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Investor Presentation (April 2018)
20 slides from Bar Harbor Bankshares's investor presentation, Apr 25, 2018
Slide 1: April 2018 Investor Presentation
139 205 174 0 162 97 0 119 192 91 155 213 April 2018 Investor Presentation
Slide 2: Legal Disclaimer
139 205 174 0 162 97 0 119 192 91 155 213 2 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 expecta
Slide 3: Company Overview
139 205 174 0 162 97 0 119 192 91 155 213 3 Company Overview (NYSE American: BHB) Financial Highlights Asset and Income Generation Market Data¹ Total Assets Stock Price $29.98 Market Cap $463 Price / LTM Core EPS 13.7x Price / Tangible Book Value 190% Dividend Yield 2.49% Balance Sheet ($ Million) T
Slide 4: First Quarter 2018 - Highlights & Initiatives
139 205 174 0 162 97 0 119 192 91 155 213 4 First Quarter 2018 - Highlights & Initiatives • 8% y-o-y increase in core total revenue • 21% y-o-y increase in core EPS • 11% commercial and industrial loan growth (annualized) • 0.93% core ROA • 9.31% core ROE • Increased TBV /Share $0.20 or 5% (annualiz
Slide 5: Strategic Objectives
139 205 174 0 162 97 0 119 192 91 155 213 5 Strategic Objectives To be one of the most profitable banks headquartered in New England Increase sources of fee income via Trust, Treasury Management and Mortgage Banking Focus on the core bank: core commercial banking business, core funding, core earning
Slide 6: Management Team
139 205 174 0 162 97 0 119 192 91 155 213 6 Management Team Executive Background Curtis C. Simard President and CEO • Joined as President and CEO of Bar Harbor Bankshares and Bar Harbor Bank & Trust in June 2013 • Served as Managing Director of Corporate Banking for TD Bank and various management po
Slide 7: Company History
139 205 174 0 162 97 0 119 192 91 155 213 7 Company History Bar Harbor Trust Established in Bar Harbor, Maine 1887 1984 Established Bar Harbor Bankshares as a holding company 2012 Acquired Border Trust Company 2013 Curtis Simard hired as President & CEO 2014 Rick Maltz hired as Chief Operating Offic
Slide 8: Markets We Serve: Demographics / Economy
139 205 174 0 162 97 0 119 192 91 155 213 8 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
Slide 9: Markets We Serve: Deposit Market Share
139 205 174 0 162 97 0 119 192 91 155 213 9 Markets We Serve: Deposit Market Share Note: Deposit data as of June 30, 2017 Source: FDIC • 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 b
Slide 10: Profitability Metrics
139 205 174 0 162 97 0 119 192 91 155 213 10 Profitability Metrics Efficiency Ratio Net Interest Margin Core ROAE Core ROAA Source: Company filings 0.74% 0.94% 1.01% 1.02% 0.93% 0.50% 0.65% 0.80% 0.95% 1.10% 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 7.88% 9.32% 9.90% 9.97% 9.31% 5.00% 7.00% 9.00% 11.00% 20
Slide 11: Focus on Non-Interest Income
139 205 174 0 162 97 0 119 192 91 155 213 11 Focus on Non-Interest Income • Wealth Management and Financial Services ‒ Bar Harbor Financial Services ‒ Two wholly owned subsidiaries, Charter Trust and Bar Harbor Trust services offering trust management services • $1.8B AUM ‒ Total Revenue of $3.0 mil
Slide 12: Loan Portfolio Overview
139 205 174 0 162 97 0 119 192 91 155 213 12 Loan Portfolio Overview Source: Company filings Highlights Portfolio Composition as of 3/31/18 • Net loans of $2.5 billion as of March 31, 2018 • Yield on loans of 4.16% for the quarter ended March 31, 2018 • Increase of 4bps from 4Q17 • Increase of 16bps
Slide 13: Deposit Portfolio Overview
139 205 174 0 162 97 0 119 192 91 155 213 13 Deposit Portfolio Overview Source: Company filings Highlights Portfolio Composition as of 3/31/18 • Total deposits of $2.3 billion as of March 31, 2018 • Opened 3,200 new deposit accounts • Cost of interest bearing deposits of 0.82% • Loans / Deposits of
Slide 14: Asset Quality
139 205 174 0 162 97 0 119 192 91 155 213 14 Asset Quality Source: Company filings Reserves / Loans NCOs / Avg. Loans NPAs / Assets 0.19% 0.15% 0.20% 0.41% 0.59% 0.10% 0.25% 0.40% 0.55% 0.70% 0.85% 1.00% 1.15% 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 0.06% 0.03% 0.01% 0.04% 0.07% 0.00% 0.15% 0.30% 0.45% 0
Slide 15: Well Capitalized Institution
139 205 174 0 162 97 0 119 192 91 155 213 15 Well Capitalized Institution 8.9% 8.0% 8.4% 8.5% 8.6% 15.0% 11.1% 11.1% 11.3% 11.3% 15.0% 12.1% 12.1% 12.3% 12.2% 16.5% 13.6% 13.6% 13.8% 13.7% 8.7% 7.0% 7.0% 7.3% 7.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 12/16 Q 03/17 Q 06/17 Q 09/17 Q
Slide 16: Investment Considerations
139 205 174 0 162 97 0 119 192 91 155 213 16 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 • Pr
Slide 17: Appendix
139 205 174 0 162 97 0 119 192 91 155 213 Appendix
Slide 18: Historical Financial Performance
139 205 174 0 162 97 0 119 192 91 155 213 18 Historical Financial Performance (1) Data as of December 31, 2017. First quarter 2018 capital ratios will be available in Bar Harbor’s Form 10-Q Source: S&P Global Market Intelligence & Company filings For the Year Ended, For the Quarter Ended, 2014Y 2015
Slide 19: Non-GAAP to GAAP Reconciliations
139 205 174 0 162 97 0 119 192 91 155 213 19 Non-GAAP to GAAP Reconciliations Net income 4,211 6,556 8,617 6,609 7,812 Adj: Securi ty Gains - - (19) - - Adj: Loss on sa le of fixed assets , net 95 - (1) - - Adj: Acquis i tion expenses 3,112 2,459 346 (2,615) 335 Adj: Income taxes (37.57% in 2017, 35
Slide 20: Interest Rate Risk Analysis
139 205 174 0 162 97 0 119 192 91 155 213 20 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. It models instantaneous parallel s
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