Bar Harbor Bankshares Announces a 21% Increase in Earnings.Business Editors BAR HARBOR Bar Harbor, town (1990 pop. 2,768), SE Maine, on Mount Desert Island and on Frenchman Bay; settled 1763, inc. 1796. It was a famed New England resort during the 19th cent. Bar Harbor is a port of entry, with ferry connections to Yarmouth, N.S., during the summer. , Maine--(BUSINESS WIRE)--Oct. 31, 2002 Bar Harbor Bankshares (AMEX AMEX See: American Stock Exchange : BHB BHB Bar Harbor, ME, USA (Airport Code) BHB Bachelor of Human Biology BHB Black Hat Briefing (conference) BHB Bald Headed Bastard BHB Block History Buffer ) President and Chief Executive Officer, Joseph M. Murphy, today announced net income of $1.15 million or 35 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of capital stock for the quarter ended September September: see month. 30, 2002 and $3.24 million or 99 cents per diluted share for the nine months then ended, compared with $1.22 million or 37 cents per diluted share and $2.68 million or 81 cents per diluted share for the same periods in 2001. Earnings for the nine months ended September 30, 2002 represent an increase of $555 thousand or 21%, and an increase of 18 cents per diluted share or 22%, compared with the same period last year. In making the announcement, Murphy said, "I am especially pleased with the earnings improvement we have achieved on a year-over-year basis, and the continued strengthening of the credit quality in the Company's loan portfolio. Managing our net interest margin has been especially challenging during this period of historically low interest rates, as the yields on our interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin continue to adjust downward." Net interest income for the nine months ended September 30, 2002, on a fully tax equivalent basis, amounted to $15.0 million, representing an increase of $1.7 million, or 13%, compared with the same period last year. The increase in net interest income is principally attributed to $48 million in average earning asset Earning asset An asset that generates income, e.g., income from rental property. growth between periods, and a modest improvement in the Company's net interest margin, from 4.09% to 4.17%. The net interest margin was 4.05% for the quarter, an 8 basis point decline from the previous quarter. "We need to exercise caution and restraint in the current interest rate environment," said Murphy. "We are focusing on the interest rate risk associated with the re-pricing of our assets and liabilities, and vigilantly managing our potential exposure to rising rates over the longer term." The Company continued to maintain its non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. at significantly lower levels than in prior years and attributes this success to the strengthening of its credit administration process and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards, aided by a healthy local economy. At September 30, 2002, total non-performing loans amounted to $1.0 million or 0.31% of total loans, compared with $3.2 million or 1.10% at the same date last year. For the nine months ended September 30, 2002, the provision for possible loan losses was $875 thousand compared with $1.7 million for the same period in 2001. At September 30, 2002, the Company's reserve for possible loan losses expressed as a percent of non-performing loans, was 466%, compared with 124% at the same date last year and 178% at December December: see month. 31, 2001. Total average assets during the quarter amounted to $532 million, representing an increase of $65 million, or 14%, compared with the third quarter of 2001. Led by strong consumer real estate lending, average loans grew $41 million between periods, or 14%. Total average deposits increased $26 million between periods, or 9%. Capital remained strong for the quarter with a 9.7% ratio of capital to total assets, and was well above regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for well-capitalized institutions. Bar Harbor Bankshares is the parent company of the wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Bar Harbor Banking and Trust Company and BTI BTI Beverage Testing Institute BTI Boyce Thompson Institute BTI British American Tobacco (stock symbol) BTI Boston Theological Institute Bti Bacillus Thuringiensis Israelensis BTI BioTechnology Institute BTI Binding Tariff Information Financial Group. Bar Harbor Banking and Trust Company, founded in 1887, provides full service banking with ten locations throughout Down East Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. . BTI Financial Group subsidiaries include Bar Harbor Trust Services, a Maine chartered trust company; Block Capital Management, an SEC registered investment advisor Registered Investment Advisor (RIA) is a designation obtainable in the United States by an individual who has registered with the U.S. Securities and Exchange Commission or state regulatory agency (where the primary business is situated or multiple States in some cases) in ; and Dirigo Investments, Inc., a NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). registered broker dealer. Driven by our mission statement, every member of the Bar Harbor Bankshares family is committed to helping our customers, communities, employees and shareholders achieve their financial goals and dreams.
Bar Harbor Bankshares
Selected Financial Information
(dollars in thousands except per share data)
Period End 3rd Quarter Average
Balance Sheet Data 09/30/2002 09/30/2001 2002 2001
Total Assets $548,403 $466,266 $532,087 $467,192
Total Loans 338,537 291,125 331,480 290,236
Reserve for
possible loan
losses 4,823 3,987 4,747 4,066
Total Deposits 330,903 294,493 314,048 288,112
Borrowings 156,219 112,732 155,900 119,160
Shareholders' Equity 53,241 53,199 53,069 52,125
Three Months Ended Nine Months Ended
Results Of Operations 09/30/2002 09/30/2001 09/30/2002 09/30/2001
Interest and dividend
income $ 8,207 $ 8,495 $ 24,163 $ 25,632
Interest expense 3,267 3,715 9,623 12,471
Net interest income 4,940 4,780 14,540 13,161
Provision for possible
loan losses 275 250 875 1,650
Net interest income
after provision for
loan losses 4,665 4,530 13,665 11,511
Noninterest income 2,228 2,125 5,051 5,665
Noninterest expense 5,232 4,813 13,909 13,152
Pre-Tax Income 1,661 1,842 4,807 4,024
Income Tax 514 627 1,323 1,342
Net income before
accounting change 1,147 1,215 3,484 2,682
Less: Accounting
change net of tax - - 247 -
Net income $ 1,147 $ 1,215 $ 3,237 $ 2,682
Earnings per share:
Basic before
accounting change $ 0.36 $ 0.37 $ 1.08 $ 0.81
Accounting change - - (0.08) -
Basic after
accounting change $ 0.36 $ 0.37 $ 1.00 $ 0.81
Diluted before
accounting change $ 0.35 $ 0.37 $ 1.06 $ 0.81
Accounting change - - (0.07) -
Diluted after
accounting change $ 0.35 $ 0.37 $ 0.99 $ 0.81
Dividends per share $ 0.19 $ 0.19 $ 0.57 $ 0.57
Return on Average
Equity 8.64% 9.29% 8.22% 6.91%
Return on Average
Assets 0.90% 1.04% 0.85% 0.77%
Capital to Assets,
period end 9.71% 11.41%
Book Value per
share, period end $ 16.65 $ 16.27
Shares outstanding,
period end 3,197,562 3,270,194
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