Bar Harbor Bankshares(BHB) - 2024 Q4 - Annual Report

Loan Portfolio - Total loans increased to $3,147,096 thousand in 2024, up from $2,999,049 thousand in 2023, representing a growth of 4.9%[35] - The commercial real estate non-owner occupied loans accounted for 43% of the total loan portfolio in 2024, compared to 38% in 2023[35] - The average loan size in the commercial real estate segment is approximately $2.1 million, with delinquencies at less than 0.02%[38] - The top 10 loans in the non-owner occupied commercial real estate portfolio represent approximately 12.7% of total commercial real estate loans outstanding[38] - The weighted average loan-to-value ratio for the top 10 loans within the non-owner occupied segment was 60.7% as of December 31, 2024[38] - The total commercial loan exposure was $2,156,635 thousand in 2024, an increase from $1,963,200 thousand in 2023[36] - Non-performing loans increased to 0.22% of total loans in 2024, up from 0.18% in 2023, indicating a rise in problem assets[43] - The allowance for credit losses (ACL) stands at $28,744 thousand, representing 0.91% of total loans, slightly down from 0.94% in 2023[48] - The company reported net charge-offs of $353 thousand in 2024, compared to $626 thousand in 2023, reflecting improved loan performance[46] - The total non-performing assets increased to $12,754 thousand in 2024, up from $5,528 thousand in 2023, highlighting a significant rise in distressed assets[43] Deposits and Liquidity - As of December 31, 2024, total deposits amounted to $3.17 billion, with a weighted average rate of 1.94%, compared to $3.05 billion and 1.25% in 2023[57][58] - Non-interest bearing demand deposits decreased from $618.7 million (20% of total) in 2023 to $570.8 million (18% of total) in 2024[57] - Interest-bearing demand deposits increased to $886.3 million with a weighted average rate of 1.41%, up from $900.0 million at 0.98% in 2023[57] - Savings deposits decreased from $594.9 million (20% of total) in 2023 to $546.5 million (17% of total) in 2024, with an increase in the average rate from 0.39% to 0.67%[57] - Money market deposits decreased from $406.8 million (13% of total) in 2023 to $380.0 million (12% of total) in 2024, with the average rate increasing from 2.48% to 3.02%[57] - Time deposits increased significantly from $533.0 million (17% of total) in 2023 to $791.2 million (25% of total) in 2024, with the average rate rising from 3.19% to 4.30%[57] - Estimated uninsured non-maturity deposits were $404.7 million in 2024, down from $525.3 million in 2023[59] Financial Performance - Total interest and dividend income for 2024 increased to $188,724 thousand, up 8.8% from $174,182 thousand in 2023[317] - Net interest income after provision for credit losses was $111,713 thousand in 2024, a decrease of 2.0% compared to $114,767 thousand in 2023[317] - Non-interest income rose to $36,888 thousand in 2024, reflecting an increase of 5.2% from $35,073 thousand in 2023[317] - Total non-interest expense increased to $95,987 thousand in 2024, up 3.3% from $92,723 thousand in 2023[317] - Net income for 2024 was $43,544 thousand, a slight decrease of 2.9% from $44,852 thousand in 2023[318] - Earnings per share (EPS) for 2024 was $2.86, down from $2.96 in 2023, representing a decline of 3.4%[317] - Total comprehensive income for 2024 was $41,870 thousand, down from $53,330 thousand in 2023, indicating a decrease of 21.5%[318] - Cash dividends declared per share increased to $1.18 in 2024 from $1.10 in 2023, marking a rise of 7.3%[320] Capital and Regulatory Compliance - The Bank is required to maintain a minimum common equity Tier 1 capital to risk-weighted assets ratio of 4.5%[107] - The Bank is considered "well capitalized" if it has a total capital to risk-weighted assets ratio of 10.0% or greater[109] - The capital conservation buffer for "adequately capitalized" institutions is more than 2.5% of total risk-weighted assets[108] - The Bank's capital adequacy rules require a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%[107] - The FDIC's Deposit Insurance Fund insures deposits up to $250,000 per depositor[92] - The Bank achieved a "satisfactory" rating on its most recent Community Reinvestment Act examination[102] Interest Rate Risk Management - Interest rate risk is the most significant market risk affecting the Company, managed by the Asset and Liability Committee (ALCO)[288] - The ALCO meets regularly to review balance sheet structure and formulate strategies in response to economic conditions[289] - Interest rate risk is evaluated quarterly, with limits established for variability of net interest income under different rate scenarios[293] - The Company utilizes a widely recognized interest rate risk model to simulate interest income and expense under various scenarios[294] - A parallel shift in interest rates of +200 basis points is expected to improve net interest income by $5,127 (4.2%) over the first 12 months and by $10,880 (8.2%) over the next 13-24 months[299] Community Engagement and Employee Information - The company is committed to community engagement, having provided charitable donations to over 450 organizations across Maine, New Hampshire, and Vermont[76] - The company had 458 full-time equivalent employees as of December 31, 2024, with no union representation[68]