Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Investor Presentation (February 2023)
25 slides from Bar Harbor Bankshares's investor presentation, Feb 24, 2023
Slide 1: February 2023 Investor Presentation
February 2023 Investor Presentation
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 superior performance, which leads to significant financial benefit to shareholders • Geography, heritage, and performance are key while remaining true to a community-focused culture • Commitment to risk management
Slide 5: 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 England1 • $2.3 billion in AUM in wealth management a
Slide 6: Customers, Culture, Team
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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: Fostering Sustainable Communities
Fostering Sustainable Communities 9 We are proud to Be recognized as one of America’s Best Banks by Newsweek As a community bank, we recognize that we are successful when our customers prosper We make significant investments in technology, our people, and branches. Our more than 50 branches are staf
Slide 10: Delivering on Our Strategy
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Slide 11: 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 • Growing market share as our customer service differentiates us from our compe
Slide 12: 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 13: Q4 2022 Overview
Q4 2022 Overview • 1.30% core return on assets, compared to 1.07% • 12.73% return on equity, compared to 9.16% • 7% annualized loan growth • 3.76% net interest margin, compared to 2.79% • 58% efficiency ratio, compared to 61% 1 • 0.17% non-performing assets to total assets ratio, compared to 0.27% “
Slide 14: Diversification of Non-Interest Income
Diversification of Non‐Interest Income • Customer Service Fee Income grew 6% year-over-year • Mortgage production is opportunistically managed between balance sheet and secondary market sales • In prior periods, market conditions drove outsized Mortgage Banking Fee Income and Derivative Fee Income •
Slide 15: Loans – Focus on Profitability
Loans – Focus on Profitability • Continue to prudently evaluate our loan portfolio mix & strategy • As of Q4 2022, Commercial Loans have increased from 49% to 66% of the Loan Portfolio since Q4 2017 15
Slide 16: Strong Credit-Oriented Culture
Strong Credit-Oriented Culture Asset Quality Remained Strong at Q4 2022 • Total delinquencies remain low at 0.17% of total loans • Non-accruing loans continued to decline; 0.23% of total loans at Q4 2022 • 2022 YTD net recoveries of $238M 16 • Q4 2022 ACL remains well-funded at 0.89% of total loans
Slide 17: Asset Quality
Asset Quality 17 In Thousands
Slide 18: Deposits – Growing Core
Deposits – Growing Core 18 • Continued focus and strong execution on moving to lower cost core deposits • Y-o-Y reduction of time deposits from 14% to 11% of total deposits • Non-interest bearing deposits remain at approximately 22% of total deposits • Non-Maturity deposits grew from 86% to 89% of T
Slide 19: Continued Commitment to Strong Capital
Continued Commitment to Strong Capital Note: The blue horizontal lines indicate minimum required levels for “well-capitalized” banks 19
Slide 20: Market Sensitivity Position
Market Sensitivity Position 20 • The bank repositioned its NII sensitivity throughout 2022, moving from an extremely 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 than $750MM in variable-rate as
Slide 21: Investor Relations Contact Information
Investor Relations Contact Information 21 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 22: Appendix
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Slide 23: Historical Financial Performance
Historical Financial Performance 23 2018Y 2019Y 2020Y 2021Y 2022Y 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4 Total Assets $3,608 $3,669 $3,724 $3,709 $3,910 $3,709 $3,692 $3,716 $3,840 $3,910 Total Loans 2,488 2,635 2,563 2,532 2,903 2,532 2,655 2,727 2,850 2,903 Total Deposits 2,483 2,696 2,906 3,049 3,043
Slide 24: Non-GAAP to GAAP Reconciliations
Non‐GAAP to GAAP Reconciliations Dollar values in thousands, except per share amounts or otherwise noted 24 GAAP net income 9,480 9,025 11,028 9,766 39,299 9,112 10,503 11,430 12,512 43,557 Plus (less): Gain sale of securities, net - (50) (1,930) (890) (2,870) (9) - (44) - (53) (Gain) loss on sale o
Slide 25: Non-GAAP to GAAP Reconciliations (continued)
Non‐GAAP to GAAP Reconciliations (continued) Dollar values in thousands, except per share amounts or otherwise noted 25 Averages Total average earning assets (E) $3,359 $3,398 $3,412 $3,440 $3,373 $3,386 $3,372 $3,459 $3,517 $3,425 Total average assets (F) 3,717 3,746 3,764 3,782 3,718 3,712 3,688 3
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