Bar Harbor Bankshares Announces 2015 Earnings
BAR HARBOR, Maine (January 28, 2016) - Bar Harbor Bankshares (NYSE MKT: BHB) (the "Company") the parent company of Bar Harbor Bank & Trust (the "Bank"), today announced record net income of $15.2 million for the year ended December 31, 2015, representing an increase of $540 thousand, or 3.7%, compared with 2014. The Company also reported record diluted earnings per share of $2.50 for 2015, representing an increase of $0.05, or 2.0%, compared with 2014. The Company's return on average equity amounted to 10.01%, compared with 10.69% in 2014. The Company's return on average assets amounted to 0.98%, compared with 1.03% in 2014.
The Company also reported net income of $3.5 million for the quarter ended December 31, 2015, or diluted earnings per share of $0.57, compared with $3.1 million or diluted earnings per share of $0.52 in the fourth quarter of 2014, representing increases of $366 thousand and $0.05, or 11.8% and 9.6%, respectively.
"Our 2015 performance continues to underscore a balance between growth and earnings," said Company President and Chief Executive Officer, Curtis C. Simard. "We are proud to report our tenth consecutive year of record earnings following our recently announced nineteenth consecutive quarterly cash dividend increase."
Mr. Simard continued, "Our 2015 performance featured total loan growth of over $71 million, led by a $51.1 million or 11.2% increase in our commercial loan portfolio. The Bank's total deposits increased $84.7 million in 2015, or almost 10%, reflecting one of our strongest deposit growth rates in recent years. Despite pressure on our net interest margin, we were able to increase net interest income by $1.1 million, while increasing our non-interest income by $1.2 million, or 15.7%. Credit quality remained stable during 2015, highlighted by a $5.3 million or 43.0% decline in non- performing loans and moderately lower levels of net loan charge-off experience compared with last year."
In concluding, Mr. Simard added, "We believe our commitment to pursuing a strategy of achieving long-term sustainable growth, profitability, and shareholder value without sacrificing our soundness is again evident from our financial results and overall performance. As we have said in the past, this is at the very heart of our model. Of note, we continue to prudently invest for our future in both our products and team as we continue to seek out opportunities to responsibly expand our business and deliver the promise of successful community banking to our customers, prospects, employees, and shareholders alike."
Balance Sheet
$5.3 million, or 43.0%. Total non-performing loans expressed as a percentage of total loans ended the year at 0.71%, down from 1.34% at year-end 2014. Similarly, the allowance for loan losses expressed as a ratio to non-performing loans ended the year at 134.7%, up from 73.0% at December 31, 2014.
Total net loan charge-offs amounted to $1.3 million in 2015, or net charge-offs to average loans outstanding of 0.14%, compared with $1.3 million or 0.15% in 2014. The Bank recorded a provision for loan losses of $1.8 million in 2015, representing a decline of $48 thousand or 2.6% compared with 2014. At December 31, 2015, the Bank's allowance for loan losses stood at $9.4 million, representing an increase of $470 thousand or 5.2% compared with year end 2014.
The Company's Board of Directors recently declared a first quarter 2016 regular cash dividend of
26.5 cents per share of common stock, representing an increase of 2.0 cents or 8.2% compared with the first quarter of 2015. Based on the year-end 2015 price of BHB's common stock of $34.42 per share, the dividend yield amounted to 3.08%.
Results of Operations
For the quarter ended December 31, 2015, net interest income on a tax-equivalent basis amounted to
$11.8 million, representing an increase of $317 thousand, or 2.8%, compared with the fourth quarter of 2014. The increase in net interest income was principally attributed to average earning asset growth of $95.7 million or 6.9%, as the tax-equivalent net interest margin declined thirteen basis points to 3.15% compared with the fourth quarter of 2014. The decline in the net interest margin was principally attributable to a fourteen basis point decline in the weighted average earning asset yield to 3.86%, partially offset by a two basis point decline in the weighted average cost of interest bearing liabilities compared with the fourth quarter of 2014.
$9.0 million, representing an increase of $1.2 million, or 15.7%, compared with 2014. The increase in non-interest income was principally attributed to a $931 thousand increase in realized securities gains compared with 2014. Other operating income amounted to $1.2 million in 2015 representing an increase of $347 thousand or 42.1% compared with 2015, principally reflecting additional income associated with the Bank's purchase of additional Bank Owned Life Insurance in the first quarter of this year. Income generated from debit card service charges and fees amounted to $1.7 million in 2015 representing an increase of $110 thousand or 6.9% compared with 2014, largely reflecting continued growth of the Bank's retail deposit base and continued success with a program that offers rewards for certain debit card transactions.
Partially offsetting the foregoing increases in non-interest income was a $79 thousand or 8.1% decline in service charges on deposits compared with 2014, principally reflecting lower levels of customer overdraft activity. Revenue from trust and other financial services amounted to $3.9 million in 2015 representing a decline of $88 thousand or 2.2% compared with 2014, largely reflecting lower volumes of retail brokerage activity.
Total other operating expenses amounted to $7.2 million in 2015, up $232 thousand, or 3.3%, compared with 2014. This increase was attributed to a variety of expense categories, the most significant of which included fees for professional services and shareholder related expenses. Furniture and equipment expenses amounted to $2.3 million in 2015, up $155 thousand, or 7.2%, compared with 2014. These increases were largely attributed to a variety of technology upgrades and certain new technology systems and applications.
About Bar Harbor Bankshares
Bar Harbor Bankshares is the parent company of its wholly owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust provides full service community banking with fifteen branch office locations serving downeast, midcoast and central Maine.
This earnings release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Bar Harbor Bankshares (the "Company") for which the Company claims the protection of the safe harbor provided by the Private Securities Litigation Reform Act of 1995, as amended. You can identify these forward- looking statements by the use of words like "strategy," "anticipates" "expects," "plans," "believes," "will," "estimates," "intends," "projects," "goals," "targets," and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. Forward-looking statements include, but are not limited to, those made in connection with estimates with respect to the future results of operation, financial condition, and the business of the Company which are subject to change based on the impact of various factors that could cause actual results to differ materially from those projected or suggested due to certain risks and uncertainties. These risks and uncertainties include, but are not limited to, cyber attacks or other failures in our technology and privacy protection measures, changes in general economic conditions, interest rates, deposit flows, loan demand, internal controls, legislation or regulation and accounting principles, policies or guidelines, as well as other economic, competitive, governmental, regulatory and accounting and technological factors affecting the Company's operations. Furthermore, there is a risk that the Company may not identify or be successful in realizing upon new opportunities to expand its business consistent with its business strategy, which would limit our growth and may have a negative impact on future results of operations. For more information about these risks and uncertainties and other factors, please see the Company's Annual Report on Form 10-K, as updated by the Company's Quarterly Reports on Form 10-Q and other filings on file with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.
Bar Harbor Bankshares Inc. issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 January 2016 19:46:25 UTC
Original Document: https://www.bhbt.com/assets/files/GQqFW1Hv/2016/01/29/Press Release-Earnings 2015.pdf