Bar Harbor Bankshares(BHB) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, total interest and dividend income increased to $47,538,000, up from $45,823,000 in the same period of 2024, representing a growth of 3.7%[13] - Net income for the first quarter of 2025 was $10,211,000, compared to $10,095,000 in the first quarter of 2024, reflecting an increase of 1.15%[13] - Non-interest income rose to $8,918,000 in Q1 2025, compared to $8,386,000 in Q1 2024, marking an increase of 6.3%[13] - The total comprehensive income for the first quarter of 2025 was $12,923,000, compared to $7,389,000 in the same quarter of 2024, reflecting a significant increase of 74.5%[14] - Basic earnings per share increased to $0.67 for Q1 2025, up from $0.66 in Q1 2024, while diluted earnings per share remained stable at $0.66[98] Credit Losses and Asset Quality - The provision for credit losses on loans showed a reversal of $(57,000) in Q1 2025, compared to a provision of $289,000 in Q1 2024, indicating improved asset quality[13] - The allowance for credit losses (ACL) was $28,614 thousand as of March 31, 2025, slightly down from $28,744 thousand on December 31, 2024[42] - The ACL on unfunded commitments decreased to $2,975,000 as of March 31, 2025, from $3,049,000 at the beginning of the period, reflecting a provision for credit losses of $74,000[54] - The company reported a total of $16,428,000 in past due loans as of March 31, 2025, with $13,415,000 in the 30-59 days category[65] - Non-accrual loans totaled $8,086,000 as of March 31, 2025, with a related allowance of $1,875,000[66] Deposits and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $88,131,000, compared to $76,219,000 at the end of Q1 2024, showing an increase of 15.9%[18] - The net change in deposits for Q1 2025 was $29,123,000, compared to a decrease of $14,081,000 in Q1 2024, indicating strong deposit growth[18] - Total time deposits increased to $862.773 million as of March 31, 2025, up from $830.274 million on December 31, 2024, representing a growth of 3.4%[88] - Brokered deposits included in time deposits were $250.9 million as of March 31, 2025, compared to $256.0 million as of December 31, 2024, indicating a decrease of 2.0%[88] Securities and Investments - Total securities available for sale amounted to $578.241 million with a fair value of $513.961 million as of March 31, 2025[25] - The allowance for credit losses on available for sale securities increased to $1.204 million as of March 31, 2025, up from $568 thousand at the beginning of the year[29] - Proceeds from calls/paydowns of securities available for sale were $28.336 million for the three months ended March 31, 2025, compared to $7.739 million for the same period in 2024[32] - The total amount of securities pledged was $69,946 thousand with an estimated fair value of $58,711 thousand as of March 31, 2025[41] Capital and Ratios - The Company’s total capital to risk-weighted assets ratio was 13.69% as of March 31, 2025, exceeding the minimum required ratio of 8.0%[94] - Common equity Tier 1 capital to risk-weighted assets ratio stood at 11.66% as of March 31, 2025, well above the minimum requirement of 4.5%[94] - The Tier 1 leverage ratio was 10.30% as of March 31, 2025, surpassing the required minimum of 4.0%[94] - The total capital to risk-weighted assets ratio for the Bank was 13.61% as of March 31, 2025, exceeding the well-capitalized requirement of 10.0%[94] Interest Rate Risk Management - Interest rate risk is the most significant market risk affecting the company, managed by the Asset and Liability Committee (ALCO)[206] - The company utilizes an interest rate risk model to monitor and measure interest rate risk, simulating interest income and expense under different interest rate scenarios[211] - The company’s interest rate risk management strategy involves using derivative instruments to minimize fluctuations in earnings and cash flows caused by interest rate volatility[100] Derivative Instruments - The company reported a total notional amount of $961,430,000 in derivative financial instruments as of March 31, 2025, with a fair value asset of $1,832,000[103] - The company recognized a total cash flow hedge gain of $182,000 for the three months ended March 31, 2025, while the total fair value hedge loss was $(1,652,000)[105] - The total fair value of derivative assets is $15,151,000, while derivative liabilities amount to $(13,319,000) as of March 31, 2025[118] Loan Portfolio - As of March 31, 2025, total loans amounted to $3,124,240 thousand, a decrease from $3,147,096 thousand on December 31, 2024[42] - The total loans outstanding as of March 31, 2025, were $3,124,240,000, with a significant portion classified as performing[63] - The commercial and industrial loans classified as "pass" were $294,701,000, with total commercial and industrial loans at $301,378,000[63] - The residential real estate loans totaled $871,816,000, with performing loans at $866,963,000 and nonperforming loans at $4,853,000[63]