Bar Harbor Bankshares, Inc. · AMEX:BHB
Bar Harbor Bankshares — Investor Presentation (July 2024)
30 slides from Bar Harbor Bankshares's investor presentation, Jul 29, 2024
Slide 1: Investor Presentation
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Slide 2: Legal Disclaimer: Cautionary Statement Regarding Forward-Looking Statements
Legal Disclaimer Cautionary Statement Regarding Forward-Looking Statements This presentation, including any oral statements made regarding the contents of this presentation, contains certain statements, other than statements of historical fact, that address activities, events or developments that th
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 benefits to our shareholders • Commitment to risk management • Service and sales driven culture with a focus on core business growth • Fee income is fundamental to our pro
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 scal
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 June 30, 2024 • Over 50 locations spanning Northern New England1 • $3.1 billion in AUM Ba
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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 30+ 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: Our Strategy is Working and the Industry is Taking Notice
Our Strategy is Working and the Industry is Taking Notice 10 Recognized as one of America’s Best Banks by Newsweek in collaboration with LendingTree Recognized as one of America’s Best Regional Banks by Newsweek in collaboration with PLANT-A Insights Group Named as a Best-in-State Bank by Forbes Mag
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 b
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Slide 13: 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 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 differentiate
Slide 14: 2024 Year-to-Date Overview
2024 Year-to-Date Overview • Poised for Continued, Profitable Growth • 1.04% return on assets • 9.39% return on equity • 4% annualized total loan growth, 11% annualized commercial loan growth • 3.12% net interest margin • 63% efficiency ratio1 • 0.16% non-performing assets ratio to total assets • Co
Slide 15: Q2 2024 Overview
Q2 2024 Overview • 1.04% return on assets • 9.46% return on equity • 7% annualized total loan growth, 14% annualized commercial loan growth • 3.09% net interest margin • 63% efficiency ratio1 • 0.16% non-performing assets ratio to total assets • Book value per share of $28.81 “Our business is based
Slide 16: Diversification of Non-Interest Income
Diversification of Non-Interest Income • We have diverse sources of non-interest income that continue to be a significant contribution in any rate environment • Mortgage production is opportunistically managed between balance sheet and secondary market sales • Bar Harbor Wealth Management, along wit
Slide 17: Loans – Focus on Profitability
Loans – Focus on Profitability • Continue to prudently evaluate our loan portfolio mix & strategy • As of Q2 2024, Commercial Loans have increased from 50% to 69% of the Loan Portfolio since Q2 2019 17
Slide 18: Credit-Oriented Culture: Asset Quality Remained Strong at Q2 2024
Credit-Oriented Culture Asset Quality Remained Strong at Q2 2024 • Accruing delinquent loans remain low at 0.10% of total loans • Non-accruing loans were steady at 0.20% of total loans • Net loan charge-offs of $85 thousand in Q2 2024 18 • Q2 2024 Allowance for Credit Losses remains well funded at 0
Slide 19: Commercial Real Estate – Office Exposure
Commercial Real Estate – Office Exposure Office portfolio remains sound amid industry challenges Total outstanding office loans of $248 million, or ~ 8% of total loans, at Q2 2024 • 86% of total Office Exposure is pass-rated, with just 4% rated Substandard or worse • Weighted average risk rating of
Slide 20: Commercial Real Estate – Office Exposure: New/Renewal Loan Activity
Commercial Real Estate – Office Exposure New/Renewal Loan Activity • In Q1 2024, BHBT originated a new $10.2 million CREM on a mixed-use (office/retail/parking) property in Portland, ME with 92% occupancy, 65% LTV, and 1.30x DSCR. There has been no material new activity in the office sub-segment out
Slide 21: Asset Quality
Asset Quality 21 (200) (100) - 100 200 300 400 500 600 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Thousands Net Charge Offs $ 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16% 0.18% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 NPAs as a % of Total Assets 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% Q2 2023 Q3 20
Slide 22: Deposits – Maintain Portfolio Composition
Deposits – Maintain Portfolio Composition 22 • Shift in deposit composition due to customer preference for time deposits given current and future expectations of the rate market
Slide 23: Continued Commitment to Strong Capital
Continued Commitment to Strong Capital 23 Note: The blue horizontal lines indicate minimum required levels for “well-capitalized” banks Capital ratios for the second quarter 2024 are not yet available 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q
Slide 24: Interest Rate Sensitivity Position
Interest Rate Sensitivity Position 24 • The Bank repositioned its net interest income (“NII”) sensitivity from an asset sensitive position while rates were rising to a more neutral position as we navigate the top of the rate cycle. • Economic value of equity (“EVE”) is slightly liability sensitive,
Slide 25: Investor Relations Contact Information
Investor Relations Contact Information 25 Facebook @BHBTsocial LinkedIn Bar Harbor Bank & Trust Instagram @BHBTSocial 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 Relations
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Slide 27: Historical Financial Performance
Historical Financial Performance 27 1 Capital ratios for the second quarter 2024 are not yet available Audited Unaudited 2019Y 2020Y 2021Y 2022Y 2023Y 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Total Assets $3,669 $3,724 $3,709 $3,910 $3,971 $4,029 $3,984 $3,971 $3,959 $4,034 Total Loans 2,635 2,563 2,532 2
Slide 28: Non-GAAP to GAAP Reconciliations
Non-GAAP to GAAP Reconciliations 28 Audited Unaudited 2019Y 2020Y 2021Y 2022Y 2023Y 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Net income $ 22,620 $ 33,244 $ 39,299 $ 43,557 $ 44,852 $ 10,791 $ 11,104 $ 9,945 $ 10,095 $ 10,257 Non-core items: Gain on sale of securities, net (237) (5,445) (2,870) (53) (34) —
Slide 29: Non-GAAP to GAAP Reconciliations (continued)
Non-GAAP to GAAP Reconciliations (continued) 29 Audited Unaudited 2019Y 2020Y 2021Y 2022Y 2023Y 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Total revenue $ 118,879 $142,136 $137,834 $149,002 $153,504 $ 37,770 $ 38,001 $ 37,643 $ 36,641 $ 37,392 Total non-interest expense 89,733 94,860 90,508 91,253 93,479 23
Slide 30: Non-GAAP to GAAP Reconciliations (continued)
Non-GAAP to GAAP Reconciliations (continued) 30 Audited Unaudited 2019Y 2020Y 2021Y 2022Y 2023Y 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 Performance ratios (5) GAAP return on assets 0.62% 0.88% 1.06% 1.16% 1.14% 1.10% 1.11% 1.00% 1.03% 1.04% Core return on assets (2) (A/F) 0.82 0.93 1.10 1.17 1.15 1.09 1.
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