Bar Harbor Bankshares Reports a 22% Increase in Earnings.
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. 30, 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)
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BHB Block History Buffer ) President and Chief Executive Officer, Joseph M. Murphy, today announced net income of $1.23 million for the quarter ended September 30, 2003, compared with $1.15 million for the same quarter last year, representing an increase of 7%. For the nine months ended September 30, 2003, total earnings amounted to $3.94 million, representing an increase of $708 thousand or 22%, and an increase of 24 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 or 24%, compared with the same period last year.
In making the announcement, Mr. Murphy said, "We are pleased with the continued improvement in the Company's performance as we approach the close of 2003. The third quarter was particularly challenging, given the continued downward pressure on our net interest margin. With the rise in longer-term interest rates during the quarter, the prepayment speeds Prepayment speed
Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. on our interest earning assets Earning Assets
Any income-earning asset owned by a company.
These assets are generally interest-bearing accounts, bonds, and securities available for sale.
See also: Asset, Asset Valuation, Earnings, Net Interest Margin have recently slowed and our margin has begun to stabilize. We continue to maintain an asset sensitive balance sheet, positioning us well for rising rates and an improving economy."
Led by strong growth in both the consumer and commercial loan portfolios, total assets ended the quarter at $579 million, representing an all time high. Total loans stood at $379 million, representing increases of $27 million or 8% compared with year-end, and $40 million, or 12%, compared with the same date last year. For the nine months ended September 30, 2003, residential real estate loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. stood at $94 million, continuing the record pace which led to $117 million during all of 2002.
"We are especially pleased with the continued strengthening of the credit quality in our loan portfolio," said Mr. Murphy. "Our ability to reduce the loan loss provision from prior year levels has reflected favorably fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. on our 2003 performance," he added. At September 30, 2003 total 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. amounted to $1.6 million, or 0.41% of total loans, and the reserve for loan losses expressed as a percent of non-performing loans stood at 339%. For the nine months ended September 30, 2003 net charge offs amounted to $130 thousand, or 0.04% of average loans outstanding, compared with $221 thousand or 0.07% during the same period in 2002. At quarter end, the allowance for loan losses amounted to 1.39% of total loans, compared with 1.42% at December 31, 2002.
For the nine months ended September 30, 2003, total average deposits amounted to $317 million, representing an increase of $21 million or 7%, compared with the same period last year. At quarters-end, total deposits stood at $335 million, representing an increase of $13 million or 4% compared with December 31, 2002. A portion of the Company's deposit base is historically seasonal in nature, with balances typically declining during Winter and early Spring while peaking in the Fall. Seasonal deposits have typically been utilized to pay down short-term borrowings. "The rate of seasonal deposit inflows, particularly non-personal transaction account balances, has been somewhat lagging Lagging
Strategy used by a firm to stall payments, normally in response to exchange rate projections. prior year trends," said Mr. Murphy.
Throughout 2003, the yield on the Company's interest earning assets has declined at a faster pace than its cost of funds Cost of Funds
The interest rate paid on an outstanding loan.
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. , reflecting a period of historically low interest rates and accelerated prepayment speeds on loans and investment securities. Despite a 29 basis point decline in the net interest margin, for the nine months ended September 30, 2003 net interest income increased $226 thousand or 2%, compared with the same period in 2002. The increase in net interest income was principally attributed to the growth in average earning assets.
The Company's non-interest income amounted to $5.5 million for the nine months ended September 30, 2003, representing an increase of $390 thousand or 8%, compared with the same period in 2002. The increase in non-interest income was principally attributed to gains from the sale of investment securities.
Through the first nine months of 2003, total non-interest expense amounted to $14.3 million, representing an increase of $475 thousand or 3% compared with the same period last year. The increase was principally attributed to a $368 thousand or 5% increase in salaries and employee benefit expenses, reflecting strategic additions to the Company's workforce, employee compensation increases, and increases in subsidized sub·si·dize
tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es
1. To assist or support with a subsidy.
2. To secure the assistance of by granting a subsidy. employee health insurance and retirement benefits. Credit card and merchant processing expenses declined $102 thousand reflecting lower transaction volumes than experienced in the prior year. Non-interest expenses 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 declined $330 thousand or 12% between periods, reflecting measures taken to improve operating efficiency.
The Company continues to exceed 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, ending the quarter with a capital-to-assets ratio of 9.2%.
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.
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
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, non-profit organizations A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. and municipalities, while providing the highest level of customized personal service.
This earnings release may contain certain forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to the financial condition, results of operations and business of the Company for which the Company claims the protection of the safe harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. You can identify these forward-looking statements by the use of words like "strategy," "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, changes in general economic conditions, interest rates, deposit flows, loan demand, competition, 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. A further description of the general risks and uncertainties and other factors applicable to the Company can be found in the Company's Annual Report on Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the year ended December 31, 2002, in the section captioned "Management's Discussion and Analysis Management's discussion and analysis (MD&A)
A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations." 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 Selected Financial Information (dollars in thousands except per share data) Period End 3rd Quarter Average Balance Sheet Data 9/30/2003 9/30/2002 2003 2002 Total Assets $578,944 $548,403 $568,086 $532,087 Total Loans 378,738 338,537 375,792 331,480 Reserve for possible loan losses 5,265 4,823 5,301 4,747 Total Deposits 335,006 330,903 327,611 314,048 Borrowings 183,183 156,219 178,805 155,900 Shareholders' Equity 53,397 53,522 53,059 53,350 Three Months Ended Nine Months Ended Results Of Operations 9/30/2003 9/30/2002 9/30/2003 9/30/2002 Interest and dividend income $7,513 $8,149 $22,968 $23,959 Interest expense 2,728 3,267 8,406 9,623 Net interest income 4,785 4,882 14,562 14,336 Provision for possible loan losses 120 275 420 875 Net interest income after provision for loan losses 4,665 4,607 14,142 13,461 Noninterest income 1,953 2,174 5,533 5,143 Noninterest expense 4,978 5,120 14,272 13,797 Pre-Tax Income 1,640 1,661 5,403 4,807 Income Tax 411 514 1,458 1,323 Net income before accounting change 1,229 1,147 3,945 3,484 Less: Accounting change net of tax - - - (247) Net income $1,229 $1,147 $3,945 $3,237 Earnings per share: Basic before accounting change $0.39 $0.35 $1.25 $1.07 Accounting change - - - (0.07) Basic after accounting change $0.39 $0.35 $1.25 $1.00 Diluted before accounting change $0.37 $0.35 $1.23 $1.06 Accounting change $- $- $- $(0.07) Diluted after accounting change $0.37 $0.35 $1.23 $0.99 Dividends per share $0.19 $0.19 $0.57 $0.57 Return on Average Equity 9.29% 8.62% 14.85% 12.37% Return on Average Assets 0.87% 0.86% 1.43% 1.28% Capital to Assets, period end 9.22% 9.76% Book Value per share, period end $17.07 $16.74 Shares outstanding, period end 3,128,830 3,197,562