Bar Harbor Bankshares reports Q2 earnings up 17% on loan growth
File photo / Laurie Schreiber
Bar Harbor Bank & Trust's parent company reported earnings for Q2 were up 17%.
Bar Harbor Bankshares (NYSE American: BHB), the parent company of Bar Harbor Bank & Trust Co., last week reported second-quarter net income of $10.5 million or 70 cents per share.
That compared to $9 million or 60 cents per share in the same quarter of 2021, for an earnings gain of 17%.
Earnings per share in the prior year quarter included a 5-cent benefit from Paycheck Protection Program loans offset by 3 cents of non-core items.
The bank’s president and CEO, Curtis Simard said improved Q2 performance delivered growth across the board.
“We delivered loan growth across all product offerings,” he said.
Commercial loans, excluding Paycheck Protection Program loans, grew 14% on an annualized basis, driven by both existing and new customer growth.
“This strong loan growth in the first half of the year, along with rising rates, drove meaningful growth in net interest income and expansion in net interest margin,” Simard said.
Wealth management income remained strong during the quarter.
“Assets under management decreased 9%, which is manageable compared to the 16% decline in the S&P 500 index for the same period,” he said. “Net customer cash inflows were strong in the quarter.”
The bank completed consolidation of its wealth platforms under the Bar Harbor Wealth Management brand during the quarter, designed to deliver a simplified and comprehensive offering across the company’s footprint and to improve financial planning capabilities for customers.
“Asset quality continues to remain strong as total nonperforming assets improved by $1.3 million to 0.21% of total assets and net charge-offs were essentially zero during the quarter,” said Simard.
He said the bank’s approach to grow business lines where it possesses specialized sector and underwriting expertise, at a time when economic environment continues to evolve, has resulted in “almost no losses for the quarter.”
Founded in 1887 and headquartered in its namesake town, Bar Harbor Bank & Trust has more than 50 locations in Maine, New Hampshire and Vermont. The bank's assets totaled more than $3.6 billion and ranked third-largest among Maine-based banks, according to the 2022 Mainebiz Book of Lists.
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