Bar Harbor Bankshares beats market estimates on Q3 results
File photo / Tim Greenway
Curtis Simard, president and CEO of Bar Harbor Bankshares
Bar Harbor Bankshares Inc. (NYSE American: BHB), the parent company of Bar Harbor Bank & Trust, posted stronger-than-expected third-quarter results amid double-digit increases in commercial loan and annualized core deposit growth.
It is the third largest Maine-based bank, trailing No. 1 Bangor Savings Bank and No. 2 Camden National Bank, as ranked in a Mainebiz list published in April and based on total assets as of Dec. 31, 2020.
In its latest earnings report, released after Thursday's stock market close, Bar Harbor Bankshares said that net income for the third quarter was $11 million, or 73 cents per diluted share, up from $8.4 million, or 56 cents per diluted share, a year earlier.
The earnings per share amount exceeds the 63-cents consensus estimate of analysts polled by Zacks Investment Research ahead of the results. The company has surpassed consensus EPS estimates twice over the last four quarters.
Bar Harbor Bankshares reported third-quarter revenue of $36.93 million, up from $34.77 million a year earlier and 11.92% higher than the Zacks consensus forecast. The company has topped Zacks consensus revenue estimates only once over the last four quarters.
The company also reported 10% annualized commercial loan growth, excluding Paycheck Protection Program loans, and 32% annualized core deposit growth.
“Our commercial teams continue to deliver strong commercial loan growth despite the competitive landscape in our footprint," said Curtis Simard, president and CEO of Bar Harbor Bankshares.
Simard noted that the majority of the quarter's commercial real estate loan growth stemmed from new multifamily residential and light industrial and manufacturing relationships with proven operators, adding that "risk management remains at the forefront of all that we do. We saw yields bottoming out on residential loans this quarter and were able to increase contractual rates at times."
Total deposits increased $184.8 million to $3 billion during the quarter, which the company attributed to significant core deposit growth, while core deposits grew 32% on an annualized basis with more than 800 new customer accounts opened. That boosted the loan-to-deposit ratio to 84%, from 89% at the end of the second quarter of 2021.
The company's book value per share was $27.92 at Sept. 30, 2021, compared with $27.64 at the end of the preceding quarter. Tangible book value per share (a non-GAAP measure) was $19.48 at the end of the third quarter, compared to $19.17 at the end of the previous quarter, representing an annualized growth rate of 6%.
Other comprehensive income included unrealized gains on securities totaling $4.4 million in the third quarter of 2021 compared to $7.2 million at the end of the preceding quarter.
Dividend payable in December
The bank's board of directors voted to declare a cash dividend of 24 cents per share to shareholders of record at the close of business on Nov. 17, payable on Dec.17.
That amount equates to a 3.42% annualized yield based on the $28.05 closing price of the company's common stock at the end of the third quarter of 2021. Shares have a current market value of around $439.6 million, based on Friday's closing share price of $29.34 in New York. The stock is up 6.83% this year.
Separately last week, Bar Harbor Bankshares was named Maine's best small bank in the latest rankings by Newsweek magazine, while Bridgeport, Conn.-based People's United Bank was named Maine's best big bank.
Most Recent
Most Recent
0 Comments