Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Investor Presentation (July 2018)
20 slides from Bar Harbor Bankshares's investor presentation, Jul 31, 2018
Slide 1: Investor Presentation August 2018
139 205 174 0 162 97 0 119 192 91 Investor Presentation 155 213 August 2018
Slide 2: Legal Disclaimer
139 205 Legal Disclaimer 174 0 Forward Looking Statements This document contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. There are several factors 162 that could cause actual results to differ significantly from expectations described in the for
Slide 3: Company Overview (NYSE American: BHB)
139 205 Company Overview (NYSE American: BHB) 174 Financial Highlights Asset and Income Generation 0 Market Data1 Total Assets (MM's) 162 Stock Price $28.61 3,565 97 Market Cap (MM's) $443 Price / LTM Core EPS 14.02x 3,541 Price / Tangible Book Value 179% 3,511 0 Dividend Yield 2.80% 3,503 119 Balan
Slide 4: Second Quarter 2018 - Highlights & Initiatives
139 205 Second Quarter 2018 - Highlights & Initiatives 174 A strong second quarter as BHB executed on our strategies and deliverables on financial 0 performance. We diversified revenue streams, grew loans under a uniformed brand & banking 162 franchise, and adhered to our strong credit culture. In a
Slide 5: Strategic Objectives
139 205 Strategic Objectives 174 We strive to be one of the most profitable banks in New England; to provide exceptional service to the 0 people, businesses and communities we serve; and create a corporate culture that develops and 162 rewards existing employees and attracts outside talent. 97 To be
Slide 6: Management Team
139 205 Management Team 174 0 Executive Background • Joined as President and CEO of Bar Harbor Bankshares and Bar Harbor Bank & Trust in June 2013 Curtis C. Simard 162 • Served as Managing Director of Corporate Banking for TD Bank and various management positions at President and CEO 97 Citizens Fin
Slide 7: Company History
139 205 Company History 174 0 Marion Colombo Acquisition of John Mercier hired as EVP, 162 Bar Harbor Trust Rick Maltz hired Lake Sunapee hired to run Acquired Border Director of Retail Established in Bar as Chief Operating Bank group – commercial 97 Trust Company Delivery Harbor, Maine Officer expa
Slide 8: Markets We Serve: Demographics / Economy
139 205 Markets We Serve: Demographics / Economy 174 • Serving affluent and growing markets in the Maine, New Hampshire and Vermont 0 162 • Strong employment evidenced by its major markets unemployment rates of 3.0% or less 97 • Core markets have increasingly diversified into services industries whi
Slide 9: Markets We Serve: Deposit Market Share
139 205 Markets We Serve: Deposit Market Share 174 • Number 1 or 2 deposit market share position in 31 of the 42 communities we serve 0 162 • Top 5 deposit market share position for 39 of the 42 communities we serve 97 • 50 branch network provides strong geographical presence throughout our markets
Slide 10: Profitability Metrics
139 205 Profitability Metrics 174 Core ROAA Core ROAE 0 1.01% 1.02% 9.97% 162 9.90% 9.86% 97 1.00% 0.94% 9.32% 9.31% 0 0.93% 119 192 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 91 Net Interest Margin Efficiency Ratio 155 3.16% 60.44% 213 58.83% 3.06% 3.04% 2.97% 54.57% 53.5
Slide 11: Focus on Non-Interest Income
139 205 Focus on Non-Interest Income 174 0 Maximizing Existing Sources & Assets Under Management 162 Developing New Initiatives $1,803 97 • Wealth Management and Financial Services $1,779 $1,754 $1,757 $1,759 ‒ Bar Harbor Financial Services 0 ‒ Two wholly owned subsidiaries, Charter 119 Trust and Ba
Slide 12: Loan Portfolio Overview
139 205 Loan Portfolio Overview 174 0 Portfolio Composition as of 6/30/18 Highlights 162 Tax exempt Consumer and other 97 5% 3% • Net loans of $2.5 billion as of June 30, 2018 0 CRE 119 34% • Yield on loans of 4.25% for the 192 quarter ended June 30, 2018 • Increase of 8.8 bps from 1Q18 91 155 Resid
Slide 13: Deposit Portfolio Overview
139 205 Deposit Portfolio Overview 174 0 Portfolio Composition as of 6/30/18 Highlights 162 Demand Time deposits 14% 97 41% • Total deposits of $2.4 billion as of June 30, 2018 0 NOW 119 19% • Opened 6,500 new deposit 192 accounts YTD 91 • Cost of interest bearing deposits of 155 Savings 0.90% 15% 2
Slide 14: Asset Quality
139 205 Asset Quality 174 0 NPAs / Assets NCOs / Avg. Loans 0.50% 162 1.20% 97 1.00% 0.40% 0.80% 0.30% 0.59% 0.62% 0 0.60% 0.41% 0.20% 119 0.40% 0.20% 0.15% 0.07% 0.06% 0.10% 0.20% 0.03% 0.04% 192 0.01% 0.00% 0.00% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 91 155 Reserves
Slide 15: Well Capitalized Institution
139 205 Well Capitalized Institution 174 16.0% 0 13.8% 13.9% 162 14.0% 13.6% 13.6% 13.7% 97 12.3% 12.3% 12.1% 12.1% 12.2% 12.0% 11.3% 11.4% 0 11.1% 11.1% 11.3% 119 10.0% 192 8.6% 8.4% 8.5% 8.2% 8.0% 8.0% 7.3% 7.2% 91 7.0% 7.0% 7.1% 155 6.0% 213 4.0% 2.0% 0.0% 03/17 Q 06/17 Q 09/17 Q 12/17 Q 03/18 Q
Slide 16: Investment Considerations
139 205 Investment Considerations 174 0 • Focused on building franchise value 162 97 • Deep and talented management team 0 • Profitable and efficient business model 119 192 • Clear vision to grow core loan/deposit business 91 • Development and expansion of non-interest income revenue 155 213 • Prove
Slide 17: Appendix
139 205 174 0 162 97 0 119 192 Appendix 91 155 213
Slide 18: Historical Financial Performance
139 205 Historical Financial Performance 174 Dollar values in thousands, except per share For the Year Ended, For the Quarter Ended, 0 amounts or otherwise noted 2014Y 2015Y 2016Y 2017Y 2017Q3 2017Q4 2018Q1 2018Q2 Balance Sheet 162 Total Assets $1,459 $1,580 $1,755 $3,565 $3,476 $3,565 $3,511 $3,541
Slide 19: Non-GAAP to GAAP Reconciliations
139 205 Non-GAAP to GAAP Reconciliations 174 Dollar values in thousands, except per share 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 0 amounts or otherwise noted Net income 6,556 8,617 6,609 7,812 8,535 162 Adj: Security Gains - (19) - - - Adj: Loss on sale of fixed assets, net - (1) - - - 97 Adj: Loss on O
Slide 20: Interest Rate Risk Analysis
139 205 Interest Rate Risk Analysis 174 On a quarterly basis, the company measures and reports NII and EVE at risk to isolate the change in income and value related solely 0 to interest-earning assets and interest-bearing liabilities. The analysis below shows the impact of instantaneous parallel shi
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