Bar Harbor Bankshares (NYSE American: BHB) reported fourth quarter net income of $7.6 million, a 15% increase from $6.6 million in the same quarter of 2017. Net income for the full year 2018 was $32.9 million, up 27% compared to $26.0 million in 2017.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
- 27% annualized increase in non-maturity deposit accounts
- 100% loan to deposit ratio
- 7.3% annualized increase in commercial and industrial loans
- 1.03% core return on assets (non-GAAP measure)
- 10.01% core return on equity (non-GAAP measure)
- 0.03% net loan charge-offs/average loans
President and Chief Executive Officer, Curtis C. Simard stated, "We finished 2018 with the same drive and commitment we've seen all year as our key performance metrics improved each consecutive quarter while we focused on profitable organic growth. We delivered record core earnings per share of 59 cents this quarter and core return on assets of 1.03%. Core return on equity of 10.01% has exceeded a financial milestone as of year end. Our credit quality remains strong with a 0.03% net charge offs to average loans for the fourth quarter. The retail delivery team was a testament to our dedicated customer service as non-maturity deposits grew by 27% on an annualized basis. This growth further demonstrates the strengthening of both community and customer relationships across our entire footprint. We continued to build shareholder value in 2018 with an 11% increase in tangible book value per share excluding security adjustments, which puts us at a record level."
Mr. Simard further stated, "Loan growth in the fourth quarter was driven by our commercial and industrial book, which is no surprise given our noted pipeline in the third quarter and the concentrated efforts around this product line. With the expanded roll out of our Treasury Management platform, we've seen growth in both related loans and deposits. Our new commercial loan office in Portland, Maine opened in December 2018 and has already contributed to our 2019 goals. The new commercial loan production office is also expected to generate more opportunities for fee income, including but not limited to customer loan derivatives. We've brought in strategic recruits in 2018 to complement our existing teams which will help drive revenue as we grow market share across our New England footprint."
Mr. Simard continued, "2018 was a year marked with active balance sheet management during a tumultuous interest rate environment. We executed an investment remix strategy in the fourth quarter which will be accretive to 2019 while improving our overall liquidity and interest rate risk position. We continue to diligently explore various balance sheet strategies to efficiently use capital and enhance shareholder returns."
Mr. Simard went on to say, "We are thrilled with the December opening of our newest branch in Manchester, New Hampshire which has already attracted market share given its anticipated arrival. We also look forward to further expanding into Bedford, New Hampshire and Belfast, Maine during 2019. We view these additional markets as providing great opportunity to further build on our franchise while remaining true to the communities we call home."
Mr. Simard concluded, "We achieved several transformational goals and projects in 2018 that set an organizational roadmap and a strong foundation for future growth. As we enter 2019 with normal seasonal head-winds and an increasing competitive market place, our teams are eager and ready to execute on our strategies building on the momentum we saw in 2018."
RESULTS OF OPERATIONS
Net income in the fourth quarter was
$7.6 million, or 49 cents per share, compared to $6.6 million, or 43
cents per share, in the same quarter of 2017. Fourth quarter net income
in 2018 includes $1.5 million of other income related to the sale of
Visa B shares, a loss on security sales of $924 thousand and a $1.1
million non-recurring charge related to the conversion from Visa to
MasterCard. Net income in the same quarter of 2017 included a $4.0
million revaluation loss on net deferred tax assets triggered by the Tax
Cuts and Jobs Act of 2017. In addition, there was a net benefit of $2.6
million in 2017, which reflected a gain on the sale of the Company's
insurance subsidiary offset by other one-time charges.
Interest income was up 9% to $32.8 million as yields on earning assets expanded 20 basis points on a year-over-year basis. Net interest margin in the fourth quarter 2018 decreased to 2.78% from 3.04% in the same period of 2017. The decrease reflects several short-term interest rate hikes and lower contribution from purchased loan accretion and tax-equivalency adjustments due to a lower 2018 federal tax rate. Excluding purchase loan accretion, net interest margin in the fourth quarter 2018 was 2.70%, which was consistent with the third quarter 2018. Despite higher short-term rates, net interest margin stabilized in the fourth quarter and an investment portfolio remix strategy was executed. Specifically, the Company sold $30.0 million of lower yielding securities in our available for sale portfolio and purchased alternative higher yielding securities with less duration and consistent credit metrics. While the sale of these securities generated a $924 thousand realized loss, the mark to market on these securities had already been recognized in other comprehensive income thus resulting in no impact on tangible book value. The Company's loan to deposit ratio improved to 100% at the end of the fourth quarter 2018 from 106% in the same period of 2017, which helped to reduce cost of funds.
The fourth quarter provision for loan losses is the lowest the Company has experienced in two years, down to $572 thousand from a high of $795 thousand in the first quarter of 2018. We continue to report positive quarterly trends in both recoveries and charged-off loans.
Non-interest income in the fourth quarter increased 14% to $7.5 million from $6.5 million in the prior year. The sale of the Company's remaining ownership interest in Visa Class B shares contributed $1.5 million in the fourth quarter along with $315 thousand in customer loan derivative fee income.
Non-interest expense increased to $20.1 million in the fourth quarter from $17.9 million in the third quarter 2018 and $14.3 million in the fourth quarter 2017. Salary and benefit expense decreased quarter-over-quarter due to the revaluation of post-retirement liabilities at lower year end discount rates. Acquisition, conversion and other expenses totaled $1.1 million in the fourth quarter of 2018 compared to a net benefit of $2.6 million recorded in same quarter of 2017. The charges in 2018 relates to various operating system conversion rebates previously disclosed. Other non-interest expense increased to $5.1 million from $3.0 million in the third quarter 2018 and fourth quarter 2017. The increase is due to various one-time charges related to upgrades around the Company's automated teller machines and associated write-offs.
The effective tax rate decreased to 15.8% in the fourth quarter 2018 compared with 18.8% in third quarter 2018 due to higher non-recurring pretax charges as described above. The 56% effective tax rate in the fourth quarter 2017 reflected the $4.0 million charge due to revaluation of net deferred tax assets.
FINANCIAL CONDITION
Total assets were $3.6 billion at the
end of the fourth quarter 2018, up $47.0 million from the third quarter
2018 and $43.3 million from year end 2017. Loan balances in the fourth
quarter 2018 were $2.5 billion increasing $6.6 million from the third
quarter and $4.6 million from 2017. Commercial and industrial loans grew
at a rate of 5.4% for the year and 7.3% in the fourth quarter. This
growth aligns with our strategy and focus on variable rate yields and
the previously announced Treasury Management roll out.
Non-accrual loans in the fourth quarter 2018 decreased $3.5 million primarily due to a $2.3 million commercial relationship that was taken into other real estate owned. The full carrying value of the asset is expected to be recovered upon sale. In the fourth quarter there was an uptick in 30-day past due accounts, principally due to how payment schedules and calendar dates fell at the end of the quarter. This effect can also be seen in the fourth quarter of 2017. Net loan charge-offs continue to be at historic lows and the ratio of the allowance for loan losses to total loans increased to 0.56% in the fourth quarter.
The Company's risk-based capital ratio strengthened in the fourth quarter 2018 as tangible book value (non-GAAP measure) continued to expand on a quarter-over-quarter basis. Tangible book value per share was $16.94 at the end of the fourth quarter 2018 compared to $16.11 at the end of third quarter. Lower long-term rates had a positive impact on the fair value adjustment to the Company's securities portfolio recorded in accumulated other comprehensive income. Excluding the impact of security fair value adjustments, tangible book value per share (non-GAAP measure) was $17.50 at the end of the fourth quarter 2018, up from $17.22 in the third of quarter of 2018 on strong earnings per share.
BACKGROUND
Bar Harbor Bankshares BHB is the
parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust.
Founded in 1887, Bar Harbor Bank & Trust is a true community bank
serving the financial needs of its clients for over 125 years. Bar
Harbor provides full-service community banking with office locations in
all three Northern New England states of Maine, New Hampshire and
Vermont. For more information, visit www.bhbt.com.
FORWARD LOOKING STATEMENTS
Certain statements contained in
this document that are not historical facts may constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended ("Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and
are intended to be covered by the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. When used in this earnings
release the words "may," "will," "should," "could," "would," "plan,"
"potential," "estimate," "project," "believe," "intend," "anticipate,"
"expect," "target" and similar expressions are intended to identify
forward-looking statements, but these terms are not the exclusive means
of identifying forward-looking statements. These forward-looking
statements are subject to significant risks, assumptions and
uncertainties, including among other things, changes in general economic
and business conditions, increased competitive pressures, changes in the
interest rate environment, legislative and regulatory change, changes in
the financial markets, and other risks and uncertainties disclosed from
time to time in documents that the Company files with the Securities and
Exchange Commission, including but not limited to those discussed in the
section titled "Risk Factors" in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2017. Because of these and
other uncertainties, the Company's actual results, performance or
achievements, or industry results, may be materially different from the
results indicated by these forward-looking statements. In addition, the
Company's past results of operations do not necessarily indicate future
results. You should not place undue reliance on any of the
forward-looking statements, which speak only as of the dates on which
they were made. The Company is not undertaking an obligation to update
forward-looking statements, even though its situation may change in the
future, except as required under federal securities law. The Company
qualifies all of its forward-looking statements by these cautionary
statements.
NON-GAAP FINANCIAL MEASURES
This document 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 reader with additional supplemental perspectives on
operating results, performance trends, and financial condition. Non-GAAP
financial measures are not a substitute for GAAP measures; they should
be read and used in conjunction with the Company's GAAP financial
information. A reconciliation of non-GAAP financial measures to GAAP
measures is provided below. In all cases, it should be understood that
non-GAAP measures do not depict amounts that accrue directly to the
benefit of shareholders. An item which management excludes when
computing non-GAAP core earnings can be of substantial importance to the
Company's results for any particular quarter or year. The Company's
non-GAAP core earnings information set forth is not necessarily
comparable to non- GAAP information which may be presented by other
companies. Each non-GAAP measure used by the Company in this report as
supplemental financial data should be considered in conjunction with the
Company's GAAP financial information.
The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including securities gains/losses, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.
The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.
TABLE
INDEX |
CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) | |
A |
Selected Financial Highlights | |
B | Footnotes to Selected Financial Highlights | |
C | Balance Sheets | |
D | Loan and Deposit Analysis | |
E | Statements of Income | |
F | Statements of Income (Five Quarter Trend) | |
G | Average Yields and Costs | |
H | Average Balances | |
I | Asset Quality Analysis | |
J | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED | ||||||||||||||||||||
At or for the Quarters Ended | ||||||||||||||||||||
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Net earnings, diluted | $ | 0.49 | $ | 0.58 | $ | 0.55 | $ | 0.50 | $ | 0.43 | ||||||||||
Core earnings, diluted (1) (2) | 0.59 | 0.58 | 0.56 | 0.52 | 0.58 | |||||||||||||||
Total book value | 23.87 | 23.06 | 22.97 | 22.78 | 22.96 | |||||||||||||||
Tangible book value (2) | 16.94 | 16.11 | 16.00 | 15.78 | 15.94 | |||||||||||||||
Market price at period end | 22.43 | 28.72 | 30.29 | 27.72 | 27.01 | |||||||||||||||
Dividends | 0.20 | 0.20 | 0.20 | 0.19 | 0.19 | |||||||||||||||
PERFORMANCE RATIOS (3) | ||||||||||||||||||||
Return on assets | 0.85 | % | 1.01 | % | 0.97 | % | 0.90 | % | 0.75 | % | ||||||||||
Core return on assets (1) (2) | 1.03 | 1.01 | 1.00 | 0.93 | 1.02 | |||||||||||||||
Return on equity | 8.31 | 9.92 | 9.65 | 9.01 | 7.35 | |||||||||||||||
Core return on equity (1) (2) | 10.01 | 9.98 | 9.86 | 9.31 | 9.97 | |||||||||||||||
Core return on tangible equity (1) (2) | 14.46 | 14.52 | 14.43 | 13.72 | 14.56 | |||||||||||||||
Net interest margin, fully taxable equivalent (FTE) (2) (4) | 2.78 | 2.81 | 2.91 | 2.97 | 3.04 | |||||||||||||||
Net interest margin (FTE), excluding purchased loan accretion (2) (4) | 2.70 | 2.71 | 2.80 | 2.85 | 2.93 | |||||||||||||||
Efficiency ratio (2) | 59.91 | 57.88 | 58.83 | 60.44 | 53.02 | |||||||||||||||
GROWTH (Year-to-date, annualized) (2) | ||||||||||||||||||||
Total commercial loans | 1.4 | % | 2.8 | % | 5.7 | % | 2.2 | % | 23.8 | % | ||||||||||
Total loans | 0.2 | (0.1 | ) | — | (3.4 | ) | 13.1 | |||||||||||||
Total deposits | 5.6 | 2.2 | 1.9 | (1.8 | ) | 14.4 | ||||||||||||||
FINANCIAL DATA (In millions) | ||||||||||||||||||||
Total assets | $ | 3,608 | $ | 3,561 | $ | 3,541 | $ | 3,511 | $ | 3,565 | ||||||||||
Total earning assets (5) | 3,263 | 3,253 | 3,250 | 3,235 | 3,244 | |||||||||||||||
Total investments | 761 | 747 | 749 | 757 | 755 | |||||||||||||||
Total loans | 2,490 | 2,484 | 2,485 | 2,464 | 2,486 | |||||||||||||||
Allowance for loan losses | 14 | 13 | 13 | 13 | 12 | |||||||||||||||
Total goodwill and intangible assets | 108 | 108 | 108 | 108 | 108 | |||||||||||||||
Total deposits | 2,483 | 2,390 | 2,375 | 2,341 | 2,352 | |||||||||||||||
Total shareholders' equity | 371 | 358 | 356 | 352 | 355 | |||||||||||||||
Net income | 8 | 9 | 9 | 8 | 7 | |||||||||||||||
Core income (1) (2) | 9 | 9 | 9 | 8 | 9 | |||||||||||||||
ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
Net charge-offs (current quarter annualized)/average loans | 0.03 | % | 0.04 | % | 0.06 | % | 0.07 | % | 0.04 | % | ||||||||||
Allowance for loan losses/total loans | 0.56 | 0.54 | 0.53 | 0.51 | 0.50 | |||||||||||||||
Loans/deposits | 100 | 104 | 105 | 105 | 106 | |||||||||||||||
Shareholders' equity to total assets | 10.27 | 10.04 | 10.05 | 10.03 | 9.95 | |||||||||||||||
Tangible shareholders' equity to tangible assets | 7.51 | 7.24 | 7.22 | 7.17 | 7.12 |
____________________________________
(1) Core measurements are non-GAAP financial measures that are adjusted
to exclude net non-operating charges primarily related to acquisitions,
system conversions and gain on sale of securities. Refer to the
Reconciliation of Non-GAAP Financial Measures in table J for additional
information.
(2) Non-GAAP financial measure.
(3) All
performance ratios are annualized and are based on average balance sheet
amounts, where applicable.
(4) Fully taxable equivalent considers
the impact of tax-advantaged investment securities and loans.
(5)
Earning assets includes non-accruing loans and securities are valued at
amortized cost.
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS - UNAUDITED | ||||||||||||||||||||
(in thousands) | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 35,208 | $ | 53,154 | $ | 39,327 | $ | 35,088 | $ | 34,262 | ||||||||||
Interest-bearing deposits with the Federal Reserve Bank | 63,546 | 19,420 | 22,066 | 12,725 | 56,423 | |||||||||||||||
Total cash and cash equivalents | 98,754 | 72,574 | 61,393 | 47,813 | 90,685 | |||||||||||||||
Securities available for sale, at fair value | 725,837 | 712,658 | 710,147 | 718,559 | 717,242 | |||||||||||||||
Federal Home Loan Bank stock | 35,659 | 34,154 | 38,712 | 38,105 | 38,105 | |||||||||||||||
Total securities | 761,496 | 746,812 | 748,859 | 756,664 | 755,347 | |||||||||||||||
Commercial real estate | 826,699 | 840,018 | 838,546 | 824,721 | 826,746 | |||||||||||||||
Commercial and industrial | 404,870 | 385,814 | 400,293 | 387,205 | 379,423 | |||||||||||||||
Residential real estate | 1,144,698 | 1,140,519 | 1,127,895 | 1,132,977 | 1,155,682 | |||||||||||||||
Consumer | 113,960 | 117,239 | 118,332 | 119,516 | 123,762 | |||||||||||||||
Total loans | 2,490,227 | 2,483,590 | 2,485,066 | 2,464,419 | 2,485,613 | |||||||||||||||
Less: Allowance for loan losses | (13,866 | ) | (13,487 | ) | (13,090 | ) | (12,679 | ) | (12,325 | ) | ||||||||||
Net loans | 2,476,361 | 2,470,103 | 2,471,976 | 2,451,740 | 2,473,288 | |||||||||||||||
Premises and equipment, net | 48,804 | 47,621 | 48,038 | 48,464 | 47,708 | |||||||||||||||
Other real estate owned | 2,351 | 68 | 129 | 216 | 122 | |||||||||||||||
Goodwill | 100,085 | 100,085 | 100,085 | 100,085 | 100,085 | |||||||||||||||
Other intangible assets | 7,459 | 7,690 | 7,921 | 8,152 | 8,383 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 73,810 | 73,316 | 58,811 | 58,433 | 57,997 | |||||||||||||||
Deferred tax asset, net | 9,514 | 11,527 | 10,309 | 9,627 | 7,180 | |||||||||||||||
Other assets | 29,853 | 31,196 | 33,534 | 29,793 | 24,389 | |||||||||||||||
Total assets | $ | 3,608,487 | $ | 3,560,992 | $ | 3,541,055 | $ | 3,510,987 | $ | 3,565,184 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
Demand and other non-interest bearing deposits | $ | 370,889 | $ | 372,358 | $ | 341,773 | $ | 342,192 | $ | 349,055 | ||||||||||
NOW deposits | 484,717 | 471,326 | 449,715 | 448,992 | 466,610 | |||||||||||||||
Savings deposits | 358,888 | 354,908 | 350,339 | 361,591 | 364,799 | |||||||||||||||
Money market deposits | 335,951 | 254,142 | 260,642 | 303,777 | 305,275 | |||||||||||||||
Time deposits | 932,793 | 937,615 | 972,252 | 884,848 | 866,346 | |||||||||||||||
Total deposits | 2,483,238 | 2,390,349 | 2,374,721 | 2,341,400 | 2,352,085 | |||||||||||||||
Senior borrowings | 680,823 | 739,224 | 735,924 | 742,198 | 786,688 | |||||||||||||||
Subordinated borrowings | 42,973 | 42,988 | 43,003 | 43,018 | 43,033 | |||||||||||||||
Total borrowings | 723,796 | 782,212 | 778,927 | 785,216 | 829,721 | |||||||||||||||
Other liabilities | 30,874 | 30,746 | 31,444 | 32,214 | 28,737 | |||||||||||||||
Total liabilities | 3,237,908 | 3,203,307 | 3,185,092 | 3,158,830 | 3,210,543 | |||||||||||||||
Total common shareholders' equity | 370,579 | 357,685 | 355,963 | 352,157 | 354,641 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,608,487 | $ | 3,560,992 | $ | 3,541,055 | $ | 3,510,987 | $ | 3,565,184 | ||||||||||
Net shares outstanding | 15,523 | 15,509 | 15,496 | 15,459 | 15,443 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||||||||
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED | ||||||||||||||||||||||||||
LOAN ANALYSIS |
||||||||||||||||||||||||||
Annualized Growth % | ||||||||||||||||||||||||||
(in thousands) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
Quarter End | Year to Date | |||||||||||||||||||
Commercial real estate | $ | 826,699 | $ | 840,018 | $ | 838,546 | $ | 824,721 | $ | 826,746 | (6.3 | )% | — | % | ||||||||||||
Commercial and industrial | 309,544 | 303,984 | 313,680 | 301,811 | 293,707 | 7.3 | 5.4 | |||||||||||||||||||
Total commercial loans | 1,136,243 | 1,144,002 | 1,152,226 | 1,126,532 | 1,120,453 | (2.7 | ) | 1.4 | ||||||||||||||||||
Residential real estate | 1,144,698 | 1,140,519 | 1,127,895 | 1,132,977 | 1,155,682 | 1.5 | (1.0 | ) | ||||||||||||||||||
Consumer | 113,960 | 117,239 | 118,332 | 119,516 | 123,762 | (11.2 | ) | (7.9 | ) | |||||||||||||||||
Tax exempt and other | 95,326 | 81,830 | 86,613 | 85,394 | 85,716 | 66.0 | 11.2 | |||||||||||||||||||
Total loans | $ | 2,490,227 | $ | 2,483,590 | $ | 2,485,066 | $ | 2,464,419 | $ | 2,485,613 | 1.1 | % | 0.2 | % |
DEPOSIT ANALYSIS |
||||||||||||||||||||||||||
Annualized Growth % | ||||||||||||||||||||||||||
(in thousands) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
Quarter End | Year to Date | |||||||||||||||||||
Demand | $ | 370,889 | $ | 372,358 | $ | 341,773 | $ | 342,192 | $ | 349,055 | (1.6 | )% | 6.3 | % | ||||||||||||
NOW | 484,717 | 471,326 | 449,715 | 448,992 | 466,610 | 11.4 | 3.9 | |||||||||||||||||||
Savings | 358,888 | 354,908 | 350,339 | 361,591 | 364,799 | 4.5 | (1.6 | ) | ||||||||||||||||||
Money market | 335,951 | 254,142 | 260,642 | 303,777 | 305,275 | 128.8 | 10.0 | |||||||||||||||||||
Total non-maturity deposits | 1,550,445 | 1,452,734 | 1,402,469 | 1,456,552 | 1,485,739 | 26.9 | 4.4 | |||||||||||||||||||
Total time deposits | 932,793 | 937,615 | 972,252 | 884,848 | 866,346 | (2.1 | ) | 7.7 | ||||||||||||||||||
Total deposits | $ | 2,483,238 | $ | 2,390,349 | $ | 2,374,721 | $ | 2,341,400 | $ | 2,352,085 | 15.5 | % | 5.6 | % |
BAR HARBOR BANKSHARES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Interest and dividend income | |||||||||||||||
Loans | $ | 26,743 | $ | 24,895 | $ | 104,015 | $ | 94,976 | |||||||
Securities and other | 6,029 | 5,261 | 23,436 | 21,093 | |||||||||||
Total interest and dividend income | 32,772 | 30,156 | 127,451 | 116,069 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 5,653 | 3,381 | 19,521 | 11,307 | |||||||||||
Borrowings | 4,855 | 3,279 | 17,047 | 12,607 | |||||||||||
Total interest expense | 10,508 | 6,660 | 36,568 | 23,914 | |||||||||||
Net interest income | 22,264 | 23,496 | 90,883 | 92,155 | |||||||||||
Provision for loan losses | 572 | 597 | 2,780 | 2,788 | |||||||||||
Net interest income after provision for loan losses | 21,692 | 22,899 | 88,103 | 89,367 | |||||||||||
Non-interest income | |||||||||||||||
Trust and investment management fee income | 2,949 | 3,042 | 11,985 | 12,270 | |||||||||||
Insurance brokerage service income | — | 77 | — | 1,097 | |||||||||||
Customer service fees | 2,477 | 2,495 | 9,538 | 8,484 | |||||||||||
Loss on sales of securities, net | (924 | ) | — | (924 | ) | 19 | |||||||||
Bank-owned life insurance income | 493 | 374 | 1,821 | 1,539 | |||||||||||
Other income | 2,455 | 530 | 5,515 | 2,573 | |||||||||||
Total non-interest income | 7,450 | 6,518 | 27,935 | 25,982 | |||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 9,269 | 9,524 | 40,964 | 39,589 | |||||||||||
Occupancy and equipment | 3,022 | 2,866 | 12,386 | 11,061 | |||||||||||
Loss on sales of premises and equipment, net | — | — | — | 94 | |||||||||||
Outside services | 811 | 780 | 2,408 | 3,000 | |||||||||||
Professional services | 458 | 298 | 1,474 | 1,655 | |||||||||||
Communication | 103 | 249 | 804 | 1,289 | |||||||||||
Amortization of intangible assets | 207 | 209 | 828 | 812 | |||||||||||
Acquisition, conversion and other expenses | 1,109 | (2,615 | ) | 1,728 | 3,302 | ||||||||||
Other expenses | 5,117 | 2,952 | 14,947 | 11,924 | |||||||||||
Total non-interest expense | 20,096 | 14,263 | 75,539 | 72,726 | |||||||||||
Income before income taxes | 9,046 | 15,154 | 40,499 | 42,623 | |||||||||||
Income tax expense | 1,426 | 8,545 | 7,562 | 16,630 | |||||||||||
Net income | $ | 7,620 | $ | 6,609 | $ | 32,937 | $ | 25,993 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.49 | $ | 0.43 | $ | 2.13 | $ | 1.71 | |||||||
Diluted | 0.49 | 0.43 | 2.12 | 1.70 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 15,516 | 15,437 | 15,488 | 15,184 | |||||||||||
Diluted | 15,574 | 15,537 | 15,564 | 15,290 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED | ||||||||||||||||||||
(in thousands, except per share data) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans | $ | 26,743 | $ | 26,212 | $ | 25,934 | $ | 25,126 | $ | 24,895 | ||||||||||
Securities and other | 6,029 | 5,972 | 5,784 | 5,651 | 5,261 | |||||||||||||||
Total interest and dividend income | 32,772 | 32,184 | 31,718 | 30,777 | 30,156 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 5,653 | 5,478 | 4,405 | 3,985 | 3,381 | |||||||||||||||
Borrowings | 4,855 | 4,237 | 4,321 | 3,634 | 3,279 | |||||||||||||||
Total interest expense | 10,508 | 9,715 | 8,726 | 7,619 | 6,660 | |||||||||||||||
Net interest income | 22,264 | 22,469 | 22,992 | 23,158 | 23,496 | |||||||||||||||
Provision for loan losses | 572 | 643 | 770 | 795 | 597 | |||||||||||||||
Net interest income after provision for loan losses | 21,692 | 21,826 | 22,222 | 22,363 | 22,899 | |||||||||||||||
Non-interest income | ||||||||||||||||||||
Trust and investment management fee income | 2,949 | 2,952 | 3,122 | 2,962 | 3,042 | |||||||||||||||
Insurance brokerage service income | — | — | — | — | 77 | |||||||||||||||
Customer service fees | 2,477 | 2,490 | 2,347 | 2,224 | 2,495 | |||||||||||||||
Loss on sales of securities, net | (924 | ) | — | — | — | — | ||||||||||||||
Bank-owned life insurance income | 493 | 505 | 377 | 446 | 374 | |||||||||||||||
Other income | 2,455 | 1,179 | 1,275 | 606 | 530 | |||||||||||||||
Total non-interest income | 7,450 | 7,126 | 7,121 | 6,238 | 6,518 | |||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and employee benefits | 9,269 | 10,331 | 10,375 | 10,989 | 9,524 | |||||||||||||||
Occupancy and equipment | 3,022 | 3,366 | 2,925 | 3,073 | 2,866 | |||||||||||||||
Loss on sales of premises and equipment, net | — | — | — | — | — | |||||||||||||||
Outside services | 811 | 456 | 581 | 560 | 780 | |||||||||||||||
Professional services | 458 | 223 | 360 | 433 | 298 | |||||||||||||||
Communication | 103 | 217 | 304 | 180 | 249 | |||||||||||||||
Amortization of intangible assets | 207 | 207 | 207 | 207 | 209 | |||||||||||||||
Acquisition, conversion and other expenses | 1,109 | 70 | 214 | 335 | (2,615 | ) | ||||||||||||||
Other expenses | 5,117 | 3,036 | 3,719 | 3,075 | 2,952 | |||||||||||||||
Total non-interest expense | 20,096 | 17,906 | 18,685 | 18,852 | 14,263 | |||||||||||||||
Income before income taxes | 9,046 | 11,046 | 10,658 | 9,749 | 15,154 | |||||||||||||||
Income tax expense | 1,426 | 2,076 | 2,123 | 1,937 | 8,545 | |||||||||||||||
Net income | $ | 7,620 | $ | 8,970 | $ | 8,535 | $ | 7,812 | $ | 6,609 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.49 | $ | 0.58 | $ | 0.55 | $ | 0.51 | $ | 0.43 | ||||||||||
Diluted | 0.49 | 0.58 | 0.55 | 0.50 | 0.43 | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 15,516 | 15,503 | 15,482 | 15,448 | 15,437 | |||||||||||||||
Diluted | 15,574 | 15,580 | 15,571 | 15,553 | 15,537 |
BAR HARBOR BANKSHARES | |||||||||||||||
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent - Annualized) - UNAUDITED | |||||||||||||||
Quarters Ended | |||||||||||||||
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Earning assets | |||||||||||||||
Commercial real estate | 4.71 | % | 4.57 | % | 4.48 | % | 4.41 | % | 4.30 | % | |||||
Commercial and industrial | 4.61 | 4.59 | 4.69 | 4.41 | 4.77 | ||||||||||
Residential | 3.83 | 3.83 | 3.88 | 3.87 | 3.78 | ||||||||||
Consumer | 5.07 | 4.85 | 4.65 | 4.47 | 4.17 | ||||||||||
Total loans | 4.31 | 4.25 | 4.25 | 4.16 | 4.12 | ||||||||||
Securities and other | 3.28 | 3.21 | 3.18 | 3.16 | 3.06 | ||||||||||
Total earning assets | 4.07 | % | 4.00 | % | 3.99 | % | 3.92 | % | 3.87 | % | |||||
Funding liabilities | |||||||||||||||
NOW | 0.50 | % | 0.43 | % | 0.37 | % | 0.34 | % | 0.31 | % | |||||
Savings | 0.18 | 0.17 | 0.17 | 0.18 | 0.19 | ||||||||||
Money market | 0.93 | 0.76 | 0.79 | 0.68 | 0.58 | ||||||||||
Time deposits | 1.85 | 1.78 | 1.51 | 1.39 | 1.19 | ||||||||||
Total interest bearing deposits | 1.12 | 1.06 | 0.90 | 0.82 | 0.70 | ||||||||||
Borrowings | 2.53 | 2.26 | 2.07 | 1.80 | 1.62 | ||||||||||
Total interest-bearing liabilities | 1.50 | % | 1.38 | % | 1.25 | % | 1.11 | % | 0.97 | % | |||||
Net interest spread | 2.57 | 2.62 | 2.74 | 2.81 | 2.90 | ||||||||||
Net interest margin | 2.78 | 2.81 | 2.91 | 2.97 | 3.04 |
BAR HARBOR BANKSHARES | ||||||||||||||||||||
AVERAGE BALANCES - UNAUDITED | ||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||
(in thousands) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||||||
Assets | ||||||||||||||||||||
Commercial real estate | $ | 836,813 | $ | 837,058 | $ | 824,356 | $ | 819,531 | $ | 783,730 | ||||||||||
Commercial and industrial | 393,396 | 388,831 | 396,471 | 380,029 | 362,881 | |||||||||||||||
Residential | 1,137,493 | 1,120,336 | 1,126,714 | 1,147,010 | 1,161,865 | |||||||||||||||
Consumer | 114,960 | 117,735 | 119,570 | 121,467 | 125,109 | |||||||||||||||
Total loans (1) | 2,482,662 | 2,463,960 | 2,467,111 | 2,468,037 | 2,433,585 | |||||||||||||||
Securities and other (2) | 762,901 | 773,562 | 767,886 | 765,328 | 753,282 | |||||||||||||||
Total earning assets | 3,245,563 | 3,237,522 | 3,234,997 | 3,233,365 | 3,186,867 | |||||||||||||||
Cash and due from banks | 68,904 | 63,272 | 50,869 | 53,151 | 65,145 | |||||||||||||||
Allowance for loan losses | (13,922 | ) | (13,463 | ) | (13,107 | ) | (12,589 | ) | (12,202 | ) | ||||||||||
Goodwill and other intangible assets | 107,657 | 107,887 | 108,118 | 108,349 | 108,769 | |||||||||||||||
Other assets | 138,074 | 137,466 | 131,522 | 129,525 | 144,359 | |||||||||||||||
Total assets | $ | 3,546,276 | $ | 3,532,684 | $ | 3,512,399 | $ | 3,511,801 | $ | 3,492,938 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||
NOW | $ | 475,449 | $ | 461,875 | $ | 441,645 | $ | 447,026 | $ | 449,669 | ||||||||||
Savings | 346,905 | 356,834 | 351,712 | 362,508 | 368,714 | |||||||||||||||
Money market | 272,612 | 259,738 | 288,169 | 305,105 | 308,071 | |||||||||||||||
Time deposits | 914,674 | 964,108 | 872,149 | 857,796 | 799,348 | |||||||||||||||
Total interest bearing deposits | 2,009,640 | 2,042,555 | 1,953,675 | 1,972,435 | 1,925,802 | |||||||||||||||
Borrowings | 761,781 | 744,632 | 836,295 | 819,576 | 803,469 | |||||||||||||||
Total interest-bearing liabilities | 2,771,421 | 2,787,187 | 2,789,970 | 2,792,011 | 2,729,271 | |||||||||||||||
Non-interest-bearing demand deposits | 384,636 | 357,856 | 339,374 | 339,349 | 376,066 | |||||||||||||||
Other liabilities | 26,569 | 28,943 | 28,386 | 29,000 | 30,971 | |||||||||||||||
Total liabilities | 3,182,626 | 3,173,986 | 3,157,730 | 3,160,360 | 3,136,308 | |||||||||||||||
Total shareholders' equity | 363,650 | 358,698 | 354,669 | 351,441 | 356,630 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 3,546,276 | $ | 3,532,684 | $ | 3,512,399 | $ | 3,511,801 | $ | 3,492,938 |
_____________________________________
(1) Total loans include non-accruing loans.
(2) Average balances
for securities available-for-sale are based on amortized cost.
BAR HARBOR BANKSHARES | ||||||||||||||||||||
ASSET QUALITY ANALYSIS - UNAUDITED | ||||||||||||||||||||
At or for the Quarters Ended | ||||||||||||||||||||
(in thousands) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
Commercial real estate | $ | 8,156 | $ | 8,348 | $ | 8,883 | $ | 8,422 | $ | 8,343 | ||||||||||
Commercial installment | 2,331 | 2,303 | 2,411 | 2,304 | 1,209 | |||||||||||||||
Residential real estate | 7,211 | 10,396 | 9,945 | 8,548 | 4,266 | |||||||||||||||
Consumer installment | 537 | 727 | 707 | 1,065 | 500 | |||||||||||||||
Total non-accruing loans | 18,235 | 21,774 | 21,946 | 20,339 | 14,318 | |||||||||||||||
Other real estate owned | 2,351 | 68 | 129 | 216 | 122 | |||||||||||||||
Total non-performing assets | $ | 20,586 | $ | 21,842 | $ | 22,075 | $ | 20,555 | $ | 14,440 | ||||||||||
Total non-accruing loans/total loans | 0.73 | % | 0.88 | % | 0.88 | % | 0.83 | % | 0.58 | % | ||||||||||
Total non-performing assets/total assets | 0.57 | 0.61 | 0.62 | 0.59 | 0.41 | |||||||||||||||
PROVISION AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance at beginning of period | $ | 13,487 | $ | 13,090 | $ | 12,679 | $ | 12,325 | $ | 11,950 | ||||||||||
Charged-off loans | (631 | ) | (298 | ) | (517 | ) | (461 | ) | (277 | ) | ||||||||||
Recoveries on charged-off loans | 438 | 52 | 158 | 20 | 55 | |||||||||||||||
Net loans charged-off | (193 | ) | (246 | ) | (359 | ) | (441 | ) | (222 | ) | ||||||||||
Provision for loan losses | 572 | 643 | 770 | 795 | 597 | |||||||||||||||
Balance at end of period | $ | 13,866 | $ | 13,487 | $ | 13,090 | $ | 12,679 | $ | 12,325 | ||||||||||
Allowance for loan losses/total loans | 0.56 | % | 0.54 | % | 0.53 | % | 0.51 | % | 0.50 | % | ||||||||||
Allowance for loan losses/non-accruing loans | 76 | 62 | 60 | 62 | 86 | |||||||||||||||
NET LOAN CHARGE-OFFS | ||||||||||||||||||||
Commercial real estate | $ | (25 | ) | $ | (27 | ) | $ | (92 | ) | $ | (91 | ) | $ | (92 | ) | |||||
Commercial installment | 53 | (53 | ) | (54 | ) | (140 | ) | 1 | ||||||||||||
Residential real estate | (31 | ) | (123 | ) | (64 | ) | 1 | — | ||||||||||||
Consumer installment | (190 | ) | (43 | ) | (149 | ) | (211 | ) | (131 | ) | ||||||||||
Total, net | $ | (193 | ) | $ | (246 | ) | $ | (359 | ) | $ | (441 | ) | $ | (222 | ) | |||||
Net charge-offs (QTD annualized)/average loans | 0.03 | % | 0.04 | % | 0.06 | % | 0.07 | % | 0.04 | % | ||||||||||
Net charge-offs (YTD annualized)/average loans | 0.05 | 0.06 | 0.06 | 0.07 | 0.04 | |||||||||||||||
DELINQUENT AND NON-ACCRUING LOANS/TOTAL LOANS | ||||||||||||||||||||
30-89 Days delinquent | 0.38 | % | 0.17 | % | 0.14 | % | 0.24 | % | 0.37 | % | ||||||||||
90+ Days delinquent and still accruing | 0.01 | — | — | — | 0.02 | |||||||||||||||
Total accruing delinquent loans | 0.39 | 0.17 | 0.14 | 0.24 | 0.39 | |||||||||||||||
Non-accruing loans | 0.73 | 0.88 | 0.88 | 0.83 | 0.58 | |||||||||||||||
Total delinquent and non-accruing loans | 1.12 | % | 1.05 | % | 1.02 | % | 1.07 | % | 0.97 | % |
BAR HARBOR BANKSHARES | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED | |||||||||||||||||||||
At or for the Quarters Ended | |||||||||||||||||||||
(in thousands) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||||||||
Net income | $ | 7,620 | $ | 8,970 | $ | 8,535 | $ | 7,812 | $ | 6,609 | |||||||||||
Adj: Loss on sale of securities, net | 924 | — | — | — | — | ||||||||||||||||
Adj: Loss (gain) on other real estate owned | 5 | (8 | ) | 23 | — | — | |||||||||||||||
Adj: Acquisition, conversion and other expenses | 1,109 | 70 | 214 | 335 | (2,615 | ) | |||||||||||||||
Adj: Income taxes (1) | (485 | ) | (12 | ) | (57 | ) | (81 | ) | 982 | ||||||||||||
Adj: Tax reform charge | — | — | — | — | 3,988 | ||||||||||||||||
Total core income (2) | (A) | $ | 9,173 | $ | 9,020 | $ | 8,715 | $ | 8,066 | $ | 8,964 | ||||||||||
Net interest income | (B) | $ | 22,264 | $ | 22,469 | $ | 22,992 | $ | 23,158 | $ | 23,496 | ||||||||||
Plus: Non-interest income | 7,450 | 7,126 | 7,121 | 6,238 | 6,518 | ||||||||||||||||
Total Revenue(2) | 29,714 | 29,595 | 30,113 | 29,396 | 30,014 | ||||||||||||||||
Adj: Loss on sale of securities, net | 924 | — | — | — | — | ||||||||||||||||
Total core revenue (2) | (C) | $ | 30,638 | $ | 29,595 | $ | 30,113 | $ | 29,396 | $ | 30,014 | ||||||||||
Total non-interest expense | 20,096 | 17,906 | 18,685 | 18,852 | 14,263 | ||||||||||||||||
Less: (Loss) gain on other real estate owned | (5 | ) | 8 | (23 | ) | — | — | ||||||||||||||
Less: Acquisition, conversion and other expenses | (1,109 | ) | (70 | ) | (214 | ) | (335 | ) | 2,615 | ||||||||||||
Core non-interest expense (2) | (D) | $ | 18,982 | $ | 17,844 | $ | 18,448 | $ | 18,517 | $ | 16,878 | ||||||||||
(in millions) | |||||||||||||||||||||
Total average earning assets | (E) | $ | 3,246 | $ | 3,238 | $ | 3,235 | $ | 3,233 | $ | 3,187 | ||||||||||
Total average assets | (F) | 3,546 | 3,533 | 3,512 | 3,512 | 3,493 | |||||||||||||||
Total average shareholders' equity | (G) | 364 | 359 | 355 | 351 | 357 | |||||||||||||||
Total average tangible shareholders' equity (2) (3) | (H) | 256 | 251 | 247 | 243 | 248 | |||||||||||||||
Total tangible shareholders' equity, period-end (2)(3) | (I) | 263 | 250 | 248 | 244 | 246 | |||||||||||||||
Total tangible assets, period-end (2) (3) | (J) | 3,501 | 3,453 | 3,433 | 3,403 | 3,457 | |||||||||||||||
(in thousands) | |||||||||||||||||||||
Total common shares outstanding, period-end | (K) | 15,523 | 15,509 | 15,496 | 15,459 | 15,443 | |||||||||||||||
Average diluted shares outstanding | (L) | 15,574 | 15,580 | 15,571 | 15,553 | 15,537 | |||||||||||||||
Core earnings per share, diluted | (A/L) | $ | 0.59 | $ | 0.58 | $ | 0.56 | $ | 0.52 | $ | 0.58 | ||||||||||
Tangible book value per share, period-end (2) | (I/K) | 16.94 | 16.11 | 16.00 | 15.78 | 15.94 | |||||||||||||||
Securities adjustment, net of tax(4) | (M) | (8,663 | ) | (17,152 | ) | (12,594 | ) | (10,237 | ) | 1,711 | |||||||||||
Tangible book value per share, excluding securities adjustment(4) | (I+M)/K | 17.50 | 17.22 | 16.81 | 16.44 | 15.83 | |||||||||||||||
Total tangible shareholders' equity/total tangible assets(2) | (I/J) | 7.51 | 7.24 | 7.22 | 7.17 | 7.12 | |||||||||||||||
Performance ratios | |||||||||||||||||||||
Return on assets | 0.85 | % | 1.01 | % | 0.97 | % | 0.90 | % | 0.75 | % | |||||||||||
Core return on assets (2) | (A/F) | 1.03 | 1.01 | 1.00 | 0.93 | 1.02 | |||||||||||||||
Return on equity | 8.31 | 9.92 | 9.65 | 9.01 | 7.35 | ||||||||||||||||
Core return on equity (2) | (A/G) | 10.01 | 9.98 | 9.86 | 9.31 | 9.97 | |||||||||||||||
Core return on tangible equity (2) (5) | (A/H) | 14.46 | 14.52 | 14.43 | 13.72 | 14.56 | |||||||||||||||
Efficiency ratio (2)(6) | (D-O-Q)/(C+N) | 59.91 | 57.88 | 58.83 | 60.44 | 53.02 | |||||||||||||||
Net interest margin(2) | (B+P)/E | 2.78 | 2.81 | 2.91 | 2.97 | 3.04 | |||||||||||||||
Supplementary data (in thousands) | |||||||||||||||||||||
Taxable equivalent adjustment for efficiency ratio | (N) | $ | 633 | $ | 654 | $ | 622 | $ | 645 | $ | 1,122 | ||||||||||
Franchise taxes included in non-interest expense | (O) | 39 | 129 | 159 | 152 | 161 | |||||||||||||||
Tax equivalent adjustment for net interest margin | (P) | 488 | 493 | 502 | 503 | 897 | |||||||||||||||
Intangible amortization | (Q) | 207 | 207 | 207 | 207 | 209 |
______________________________________
(1) A marginal tax rate was used of 23.78% in third and fourth quarter
2018, 24.15% for the first and second quarter of 2018 and 37.57% in 2017.
(2)
Non-GAAP financial measure.
(3) Total tangible shareholders' equity
is computed by taking total shareholders' equity less the intangible
assets at period-end. Total tangible assets is computed by taking total
assets less the intangible assets at period-end.
(4) Securities
adjustment, net of tax represents the total unrealized loss on
available-for-sale securities recorded on the Company's consolidated
balance sheets within total common shareholders' equity.
(5) Core
return on tangible equity is computed by dividing the total core income
adjusted for the tax-effected amortization of intangible assets,
assuming a marginal rate of 23.78% in third and fourth quarter 2018,
24.15% in first and second quarter 2018 and 37.57% in 2017, by average
tangible equity.
(6) Efficiency ratio is computed by dividing total
adjusted tangible non-interest expense by the sum of total net interest
income on a fully taxable equivalent basis and total adjusted
non-interest income.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190124005837/en/
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