Bar Harbor Bankshares Announces a 30% Increase in 2002 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)--Feb. 14, 2003 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 $1.3 million or 41 cents per diluted share of capital stock for the fourth quarter of 2002, representing an increase of $499 thousand or 16 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared with the same period in 2001. For the year ended December 31, 2002, earnings were $4.6 million or $1.40 per diluted share compared with $3.5 million or $1.06 per diluted share earned last year, representing increases of 30% and 32% respectively. In making the announcement, Murphy said, "We are truly pleased with the earnings improvement we have achieved on a year-over-year basis, and the many accomplishments of our organization and its employees." Total assets ended the year at $554 million, representing an increase of $67 million or 14% compared with 2001. Led by strong consumer real estate lending, total loans at December 31, 2002 stood at $352 million representing an increase of $54 million, or 18%, compared with December 31, 2001. Deposit growth also continued during 2002, ending the year at $322 million, or 10% higher than 2001. 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. At December 31, 2002, total non-performing loans amounted to $1.2 million or 0.33% of total loans, compared with $2.3 million or 0.79% at the same date last year. The provision for possible loan losses totaled $1.1 million in 2002, compared with $2.0 million in 2001. At year-end, the Company's reserve for possible loan losses expressed as a percent of non-performing loans stood at 424%, compared with 178% at December 31, 2001. "We are especially pleased with the continued strengthening of the credit quality in the loan portfolio," said Murphy. "Our ability to reduce the loan loss provision from 2001 levels, while elevating credit quality ratios, has reflected favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. on our 2002 performance." Net interest income for the year ended December 31, 2002, on a fully tax equivalent basis, amounted to $20.2 million, representing an increase of $1.9 million or 10% compared with 2001. The increase in net interest income was entirely attributed to $52 million in average earning asset Earning asset An asset that generates income, e.g., income from rental property. growth between periods, as the 2002 net interest margin declined seven basis points to 4.14%, compared with 2001. "Managing our net interest margin has been especially challenging during this period of historically low interest rates, as yields on our 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 adjusted downward at a faster pace than our overall cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. ," said Murphy. "We have been 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." Non-interest income declined $1.1 million in 2002, or $14.7%, compared with 2001. These results were principally attributed to declining revenue at 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, as fees generated from the market value of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and retail brokerage transactions were impacted by the sharp declines in the stock market and an overall industry slowdown in retail investor Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. activities. Non-interest expense declined $153 thousand in 2002, or 0.8%, compared with 2001. Included in 2001 non-interest expense was a one time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $618 thousand recorded in the fourth quarter at BTI Financial Group. This charge was the principal factor underlying the $499 thousand or 60% increase in fourth quarter net income, compared with the same quarter in 2001. The Company's capital position ended the year strong, with a capital to assets ratio of 9.7%, 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. , Bar Harbor Banking and Trust Company and BTI Financial Group. Bar Harbor Banking and Trust Company, founded in 1887, provides full service banking with ten locations throughout Down East Maine. 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. BTI Financial Group offers a comprehensive array of private banking, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , brokerage, investment management and trust services to individuals, businesses, not-for-profit organizations and municipalities, while providing the highest level of customized personal service. 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)
4th Quarter
Period End Average
Balance Sheet Data 12/31/02 12/31/01 2002 2001
Total Assets $553,818 $487,203 $550,159 $478,937
Total Loans 351,535 297,970 345,986 294,242
Reserve for possible loan
losses 4,975 4,169 4,928 4,124
Total Deposits 322,015 291,833 326,656 291,700
Borrowings 156,558 136,059 163,930 126,426
Shareholders' Equity 53,836 52,538 53,539 53,411
Three Months Ended Year Ended
Results Of Operations 12/31/02 12/31/01 12/31/02 12/31/01
Interest and dividend income $8,189 $8,260 $32,352 $33,892
Interest expense 3,152 3,280 12,775 15,751
Net interest income 5,037 4,980 19,577 18,141
Provision for possible loan
losses 225 350 1,100 2,000
Net interest income after
provision for loan losses 4,812 4,630 18,477 16,141
Noninterest income 1,362 1,855 6,413 7,520
Noninterest expense 4,427 5,337 18,336 18,489
Pre-Tax Income 1,747 1,148 6,554 5,172
Income Tax 419 319 1,742 1,661
Net income before accounting
change 1,328 829 4,812 3,511
Less: Accounting change net of
tax - - 247 -
Net income $1,328 $829 $4,565 $3,511
Earnings per share:
Basic before accounting
change $0.42 $0.25 $1.49 $1.07
Accounting change - - (0.07) -
Basic after accounting
change $0.42 $0.25 $1.42 $1.07
Diluted before accounting
change $0.41 $0.25 $1.47 $1.06
Accounting change - - (0.07) -
Diluted after accounting
change $0.41 $0.25 $1.40 $1.06
Dividends per share $0.19 $0.19 $0.76 $0.76
Return on Average Equity 9.84% 6.16% 8.64% 6.57%
Return on Average Assets 0.96% 0.69% 0.88% 0.75%
Capital to Assets, period end 9.72% 10.78%
Book Value per share, period
end $16.93 $16.13
Shares outstanding,
period end 3,179,891 3,257,050
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