Good Things Happen
When We Work Together
2 0 1 9 A N N U A L R E P O R T
Personal Banking · Business Banking · Wealth Management
Over 50 locations in Maine, New Hampshire & Vermont
P A G E 1
2019 Summary Annual Report GOOD THINGS HAP PEN WHE N WE WORK TOGETHER
We’re dedicated to
delivering solutions and
driving positive change.
D E L I V E R I N G B U S I N E S S R E S U L T S
Commercial Lenders
generated over
$400MM in new
loans
Bankers opened more than
13,000
core deposit accounts
E X E C U T E D C E N T R A L M A I N E
B R A N C H A C Q U I S I T I O N
Acquisition and Conversion of 8 Central
Maine branches with minimal disruption
1,000
More
than
pieces of technology deployed over the
conversion weekend
9,000
More
than
debit cards issued
O P T I M I Z I N G T E C H N O L O G Y F O R
I M P R O V E D C U S T O M E R E X P E R I E N C E
Projects completed in 2019 include
Replaced or upgraded a significant number of
ATMs
Upgraded Bar Harbor Mobile and Bar Harbor
Online banking
Launched merchant service partnership with
BASYS Processing
Updated core banking and teller system
Updated commercial lending underwriting
system
We understand life in northern New England.
As the only bank headquartered in Northern New England
with a branch presence in Maine, New Hampshire, and Vermont,
we are committed to serving the region.
Charter Trust Company
NH Locations:
Concord
Hanover
Meredith
Nashua
New London
Peterborough
Vermont
Branches:
Bethel/Royalton
Brandon
Pittsford
Randolph
Rochester
Rutland
South Royalton
Williamstown
Woodstock
Maine
Branches:
Bangor
Bar Harbor
Blue Hill
Brewer
Deer Isle
Ellsworth
Lubec
Machias
Milbridge
Newport
Northeast Harbor
Orono
Pittsfield
Rockland
Somesville
South China
Southwest Harbor
Topsham
Waterville
Winter Harbor
New Hampshire
Branches:
Andover
Bradford
Claremont
Concord
Enfield
Grantham
Hanover
Hillsborough
Lebanon
Manchester
Milford
Nashua
New London
Newbury
Newport
Peterborough
Sunapee
West Lebanon
P A G E 2
P A G E 3
2019 Summary Annual Report2019 Summary Annual Report Bar Harbor Bankshares
Letter to Shareholders
Dear Fellow Shareholders,
Our communications with you humbly focus
on our meaningful evolution and the need to
balance growth with earnings, whether organic
or through acquisition. This has been centered
in becoming a core earnings financial institution
that fully embraces its origins while also
understanding that banking requires:
• Superior talent that delivers unparalleled
service.
• Convenient products and locations while
embracing technological change.
• An unwavering
commitment to risk
management as a value
proposition rather than a
hurdle.
In an effort to meet these
expectations, we always
invest in people, process,
and product while refining
our balance sheet as a more
neutral lever that can weather
changing rate and economic
environments. 2019 was a
very important year for us as
we completed several key
steps in this regard while continuing to build a
very credible and capable team. We achieved
this through a strategic review that led us to
change some funding strategies, rely more on
core funding, and optimize our branch network
through a review of profitability by location.
Lastly, we had one of the best executions
of subordinated debt placement, being
oversubscribed by almost three times, aligning
our capital positioning for future deployment at
advantageous rates.
branch and wealth business acquisition
in central Maine, an important geographic
connection to our headquarters. This enabled
further substantial reduction in wholesale funding
while providing access to a region that wanted
a presence on the coast as much as we wanted
to bring Bar Harbor Bank & Trust to central
Maine. This also brought us extremely motivated
and talented new colleagues who fully embrace
being headquartered a short distance away and
understand our commitment to the three drivers
of our business as bulleted above.
Despite the aggressive
deposit and loan pricing
activities of exuberant
competition, we held to our
strategic plan of building
a team and a company
with a focus on long run
shareholder value creation.
Our core deposit account
growth, principally checking
accounts, and commercial
loan growth, is ahead of
the field with some of the
region’s strongest clients.
We are more committed
than ever to our strategies as the only bank
headquartered in Maine with a presence in all
three Northern New England states.
“Different” Being Our Calling Card
We spoke last year about all of the things we
do differently like an efficient branch model,
selective analysis of existing products and
locations, willingness to expand only where it
makes sense, and an undying commitment to
consistent calling and idea generation for our
customers. Toward the end of the year, we
geared new advertising around this notion with
messaging that in working with customers, we
David B. Woodside
Chairman
Curtis C. Simard
President & Chief Executive Officer
We communicated each of these moves to you
throughout the year in addition to a meaningful
P A G E 4
can together achieve more. Too many bankers
have become “order takers” and we refuse
to play that role given long relationships with
customers and with new prospects realizing
that we have a different energy to offer. Almost
everyone talks about the desire for relationships,
but it takes real conviction, training, the right
products, and the right culture to actually
deliver on that. Real loan growth, especially in
commercial, a meaningful wealth business, and
growth in core checking accounts are proof that
we are more than talking about relationships, but
rather creating them. That combined with our
strategic balance sheet activities outlined above
make us very confident in the positioning of our
bank.
COVID-19 and the Unknown
As a risk management centric organization, we
are always focused on the seemingly endless
political unrest, shifting uncertainty of global
economic headwinds, and other regional
fluctuations that permeate our everyday lives.
We are always looking for weakness that
could create challenge. This management
team and Board have navigated multiple
recessions. In each of those situations, the
recession emanated from financial challenges
or weaknesses. Never before have we seen
financial strife originate from a health risk like
COVID-19. With terms like “social distancing”
and “flattening the curve” taking on new
meanings, we must rely on the risk management
environment that we have created. We are
well capitalized, with established procedures
in place that have led to good underwriting
during this past cycle. While no one quite knows
where a pandemic like this will turn next, we
have planned well and are relying on policy and
procedure driven by preexisting talent along with
those that we proactively recruited. Common
sense has to be a part of our daily toolkit.
Our View of Our Future
We have positively positioned ourselves for the
future through:
• An expanded footprint that includes strong
market share with growth opportunity in
more densely populated markets.
• A committed team that has fully adopted
our culture and proudly advances our
brand.
• Sensible expansion in product sets that
align with our growth endeavors and within
our risk appetite while also being unafraid
to undertake strategic reviews.
• An established fee income stream that
continues to multiply with a focus on
wealth services and ancillary product
enhancement.
• A developed risk and controls model that
views these disciplines as valuable to all of
our constituents.
• Diversified leadership throughout the
company and at the Board level.
We are committed to thinking differently and
working with customers rather than filling
orders. We are proud to live and work here
and our model will always be our guide. On
behalf of the Board of Directors and our 500+
colleagues throughout Maine, New Hampshire
and Vermont, we thank you for your confidence
in us.
Curtis C. Simard
President & Chief Executive Officer
David B. Woodside
Chairman
P A G E 5
2019 Summary Annual Report2019 Summary Annual Report Bar Harbor Bankshares
Consolidated Balance Sheets
Years Ended December 31, 2018 and 2019
Bar H arb or Bankshares
Consolidated Statements
of Income
Years Ended December 31, 2017, 2018 and 2019
(in thousands)
2019
2018
(in thousands)
Years Ended
Assets
Cash and due from banks
Interest-bearing deposit with the Federal Reserve Bank
Total cash and cash equivalents
Securities available for sale, at fair value
Federal Home Loan Bank stock
Total securities
Loans:
Commercial real estate
Commercial and industrial
Residential real estate
Consumer
Total loans
Less: Allowance for loan losses
Net loans
Premises and equipment, net
Other real estate owned
Goodwill
Other intangible assets
Cash surrender value of bank-owned life insurance
Deferred tax assets, net
Other assets
Total assets
LiAbiLities
Deposits:
Demand
NOW
Savings
Money Market
Time
Total deposits:
Borrowing:
Senior
Subordinated
Total borrowings
Other liabilities
Total Liabilities
shArehoLders’ equity
Capital stock, par value $2.00; authorized 20,000,000 shares; issued 16,428,388 and
16,428,388 shares at December 31, 2019 and December 31, 2018, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Less: 870,257 and 905,201 shares of treasury stock at December 31, 2019 and
December 31, 2018, respectively, at cost
ToTal ShareholderS’ equiTy
$ 37,261
19,649
$ 35,208
63,546
56,910
663,230
20,679
683,909
930,661
423,291
1,151,857
135,283
2,641,092
(15,353)
2,625,739
51,205
2,236
118,649
8,641
75,863
3,865
42,111
98,754
725,837
35,659
761,496
826,699
404,870
1,144,698
113,960
2,490,227
(13,866)
2,476,361
48,804
2,351
100,085
7,459
73,810
9,514
29,853
$ 3,669,128 $ 3,608,487
$ 414,534
575,809
388,683
384,090
932,635
$ 370,889
484,717
358,888
335,951
932,793
2,695,751
2,483,238
471,396
59,920
531,316
45,654
680,823
42,973
723,796
30,874
3,272,721
3,237,908
32,857
188,536
175,780
3,911
(4,677)
396,407
32,857
187,653
166,526
(11,802)
(4,655)
370,579
totAL LiAbiLities And shArehoLders’ equity
$ 3,669,128 $ 3,608,487
Refer to the Bar Harbor Bankshares 2019 Annual Report on Form 10-K for a complete set of audited financial statements and accompanying notes.
P A G E 6
interest And dividend income
Loans
Securities and other
Total interest and dividend income
interest expense
Deposits
Borrowings
Total Interest Expense
Net interest income
Provisions for loan losses
Net interest income after provision for loan losses
non-interest income
Trust and investment management fee income
Insurance and brokerage service income
Customer service fees
(Loss) gain on sales of securities, net
Bank-owned life insurance income
Customer derivative income
Other income
Total non-interest income
non-interest expense
Salaries and employee benefits
Occupancy and equipment
Loss on premises and equipment, net
Outside services
Professional services
Communication
Marketing
Amortization of intangible assets
Loss on debt extinguishment
Acquisition, restructuring and other expenses
Other expenses
Total non-interest expense
Income before income taxes
Income tax expense
Net Income
eArnings per shAre
Basic
Diluted
Weighted AverAge common shAres outstAnding:
Basic
Diluted
2019
Years Ended
2018
2017
$ 111,042
24,349
$ 104,015
23,436
$ 94,976
21,093
135,391
127,451
116,069
27,034
18,547
45,581
89,810
2,317
87,493
12,063
-
10,127
237
2,053
2,028
2,561
29,069
45,000
14,214
18
1,818
2,191
821
1,872
861
1,096
8,317
13,525
89,733
26,829
4,209
19,521
17,047
36,568
90,883
2,780
88,103
11,985
-
9,538
(924)
1,821
860
4,655
27,935
40,964
12,386
-
2,408
1,474
804
1,743
828
-
1,728
13,204
75,539
40,499
7,562
11,307
12,607
23,914
92,155
2,788
89,367
12,270
1,097
8,484
19
1,539
-
2,573
25,982
39,589
11,061
94
3,000
1,655
1,289
945
812
-
3,302
10,979
72,726
42,623
16,630
$ 22,620
$ 32,937
$ 25,993
$ 1.46
$ 1.45
$ 2.13
$ 2.12
$ 1.71
$ 1.70
15,541
15,587
15,488
15,564
15,184
15,290
P A G E 7
2019 Summary Annual Report2019 Summary Annual Report
Bar Harbor Bankshares
Senior Executive Team
Bar H arbor Bankshares
Board of Directors
Curtis C. Simard
President
Chief Executive Officer
Josephine Iannelli
Executive Vice President
Chief Financial Officer
and Treasurer
Richard B. Maltz
Executive Vice President
Chief Operating Officer &
Chief Risk Officer
John M. Mercier
Executive Vice President
Chief Lending Officer
Marion Colombo
Executive Vice President
Retail Delivery
Jason Edgar
President
Bar Harbor Trust Services
Charter Trust Company
Jenny Svenson
Senior Vice President
Chief Human Resources
Officer
2019 Board of Directors (Back L-R): David M. Colter, Brendan O’Halloran, Stephen R. Theroux, Daina H.
Belair, Scott G. Toothaker, Curtis C. Simard, David B. Woodside, Martha T. Dudman, Steven H. Dimick.
(Front L-R): Lauri E. Fernald, Matthew L. Caras, Kenneth E. Smith.
David B. Woodside - Chairman
Bar Harbor, ME
Chief Executive Officer and General Manager of Acadia
Corporation
Daina H. Belair
Lincolnville, ME
Owner of Inn at Sunrise Point
Matthew L. Caras
Arrowsic, ME
Owner and Managing Director of Leaders LLC
David M. Colter
Hampden, ME
President, GAC Chemical Corporation
Steven H. Dimick
Randolph, VT
Former Director for Lake Sunapee Bank Group Board
Martha T. Dudman
Northeast Harbor, ME
Fundraising Consultant and Author, former President of
Dudman Communications Corporation
Lauri E. Fernald
Mt. Desert, ME
President and an Owner in Jordan–Fernald Funeral Home
Brendan O’Halloran
Chatham, MA and Naples, FL
Retired Vice Chair & Regional Head of TD Securities, a
division of TD Bank
Curtis C. Simard
Mt. Desert, ME
President and Chief Executive Officer of the Company and
the Bank
Kenneth E. Smith
Bar Harbor, ME
Owner and Innkeeper of Manor House Inn
Stephen R. Theroux
New London, NH
Former President and CEO of Lake Sunapee Bank
Scott G. Toothaker
Ellsworth, ME
Principal and Vice President of Melanson Heath & Co.
P A G E 8
P A G E 9
2019 Summary Annual Report2019 Summary Annual Report Bar Harbor Bankshares
5 Year Summary of
Financial Data
Bar H arb or Bankshares
Summary Financial
Results
(in millions, except per share)
2019
2018
2017
2016
2015
bALAnce sheet dAtA
Total assets
Earning assets*
Investments
Loans
Deposits
Borrowings
Shareholders’ equity
resuLts of operAtions
Net interest income
Non-interest income
Net revenue
Net income
per common shAre dAtA
Diluted earnings
Adjusted earnings*
Dividends
Total book value
Tangible book value*
performAnce rAtios
Return on assets
Adjusted return on assets*
Return on equity
Adjusted return on equity*
Interest rate spread
Net interest margin
Efficiency ratio*
Net charge-offs/average loans
$ 3,669
3,318
684
2,641
2,696
531
396
$ 90
29
119
23
$ 1.45
1.91
0.86
25.48
17.30
$ 3,608
3,263
761
2,490
2,483
724
371
$ 91
28
119
33
$ 2.12
2.25
0.79
23.87
16.94
$ 3,565
3,244
755
2,486
2,352
830
355
$ 92
26
118
27
$ 1.70
2.10
0.75
22.96
15.94
$ 1,755
1,683
554
1,129
1,050
537
157
$ 45
13
58
15
$ 1.63
1.52
0.73
17.19
16.61
$ 1,580
1,517
526
990
943
475
154
$ 45
9
54
15
$ 1.67
1.58
0.67
17.10
16.50
0.62%
0.82
5.82
7.65
2.55
2.78
64.95
0.03
0.93%
0.99
9.22
9.79
2.68
2.87
59.27
0.05
0.75%
0.93
7.41
9.15
2.99
3.10
55.44
0.04
0.89%
0.83
9.21
8.46
2.86
2.96
58.90
-
0.98%
0.93
10.01
9.46
3.09
3.19
55.93
0.14
*Note: These performance ratios are non-GAAP financial measures; see 2019 Annual Report on Form 10-K for further discussion.
Corporate Profile
as of December 31, 2019
Corporate Profile
as of December 31, 2019
•
•
$3.7 billion in assets.
52 full service branches.
• Branches located across Maine, New
Hampshire and Vermont.
• A true community bank providing
commercial, retail, treasury and wealth
management services.
• Wealth assets under management of $2.0
billion.
Ticker
Stock price
Market capitalization
Price to earnings ratio (full year 2019)
Price to book value
Price to tangible book value
52 week price range
Annualized dividend (Q1 2020)
Dividend yield
Shares outstanding
NYSEAM: BHB
$25.39 per share
$395 million
13.27X
99.65%
146.78%
$21.24 to $27.58
$0.88 per share
3.39%
15.6 million
Average daily volume (full year 2019)
25,000 shares
Bar Harbor Bankshares recorded 2019 net
income of $23 million, or $1.45 per share,
compared to $33 million, or $2.12 per share,
in 2018. Acquisition, restructuring and other
expenses after taxes totaled $0.46 per share
in 2019 related to one-time costs associated
with the Company’s branch acquisition
and balance sheet optimization initiatives.
Adjusted income (non-GAAP measure) in
2019 was $30 million, or $1.91 per share, and
$35 million, or $2.25 per share, for the same
period of 2018.
In 2019 the Company repositioned the
balance sheet, expanded its footprint within
central Maine and achieved record revenues
of $119 million on higher interest and fee
income. The Company also completed a
strategic review of its balance sheet and
operations (“strategic review”) and executed
several initiatives that reduced the Company’s
cost of funds in the second half of 2019 and
improved its interest rate risk and overall
capital position.
On October 25, 2019, the Company
completed the acquisition of eight branches
within central Maine. The Company used
the net deposit proceeds to extinguish
approximately $140 million of higher cost
borrowings. These transactions changed the
Company’s balance sheet profile and funding
needs. Therefore, the Company decided to
terminate its interest rate caps on $90 million
of rolling three-month borrowings. The losses
from the interest rate caps were reclassified
from other comprehensive income to net
income, with no further dilution to equity.
Additional borrowings were paid off with the
proceeds from executing a deleveraging and
remix strategy that included the sale of $92
million of lower yielding securities.
In the fourth quarter 2019, the Company
completed a $40 million subordinated debt
issuance which replaced $22 million of
higher cost subordinated notes that were
called. The offering was more than two times
oversubscribed, driven by one of the most
effective executions for 2019, and presented
an opportunity to upsize the deal.
Adjusted Return on Assets*
0.96
0.83
0.80
0.70
3/31/19
6/30/19
9/30/19
12/31/19
*Non-GAAP Measure.
The strategic review also included a branch
optimization exercise that evaluated fixed
assets, staffing models, and business and
operational processes that included the
closure of five branches effective December
31, 2019. Results of this exercise are
P A G E 1 0
P A G E 1 1
2019 Summary Annual Report2019 Summary Annual Report expected to be fully accretive starting in the
first quarter 2020.
Total assets were $3.7 billion in 2019,
increasing $61 million from 2018. Loans
totaled $2.6 billion, increasing $151 million
from 2018, primarily due to the branch
acquisition and organic commercial loan
growth. Credit quality remains strong with
the ratio of non-accruing loans to total loans
at 0.44% at December 31, 2019 compared
to 0.73% at December 31, 2018. Deposits
totaled $2.7 billion at the end of 2019,
increasing 8.6% from 2018 due to the branch
acquisition.
Return on assets in 2019 was 0.62% com-
pared to 0.93% in 2018, while adjusted return
on assets (non-GAAP measure) was 0.82%
in 2019 compared to 0.99% in 2018. In a
similar trend, return on equity was 5.82% in
2019 from 9.22% in 2018 and adjusted return
on equity (non-GAAP measure) was 7.65% in
2019 from 9.79% in 2018.
FINANCIAL CONDITION
Loans
During 2019 total loans grew $151 million
to $2.6 billion. In the fourth quarter $101
million of acquired loans were recorded
resulting in net organic growth of 1.9% for
the year. Commercial real estate grew $79
million or 9.5% excluding the impact of the
acquisition. Residential organic loan growth
was relatively flat as originations kept pace
with loan payoffs and the secondary market
platform was leveraged for fee income. The
Company’s loan origination teams continued
to adhere to disciplined underwriting practices
and selectively pursuing opportunities that are
accretive to profitability metrics.
Allowance for Loan Losses
The allowance for loan losses increased to
$15 million from $14 million at year-end 2018
largely due to commercial loan growth offset
by lower net charge-off activity reflecting
stable asset quality. The ratio of net charge-
offs to total loans remains near zero at 0.03%
in 2019 and 0.05% in 2018. The allowance
to total loans ratio increased to 0.58% in
2019 from 0.56% in 2018, primarily due to
the $101 million of loans from the branch
acquisition that were recorded without a
carryover allowance for loan losses. Non-
accruing loans in 2019 decreased $7 million
primarily due to the settlement of several credit
losses. Non-accruing loans in 2019 decreased
$7 million primarily due to the settlement of
several credit relationships for the carrying
values. The settlement also contributed to the
improvement of the non-accruing loans to
total loans ratio to 0.44% from 0.73% in the
prior year.
Loan Composition
As of December 31, 2019 (in thousands)
135
Commercial Real Estate (35%)
931
Commercial & Industrial (16%)
1,152
423
Residential (44%)
Consumer (5%)
Securities
Securities in 2019 decreased by $78 million
as the Company remixed the investment
portfolio as part of the strategic review. The
2019 securities activity included purchases of
$129 million offset by maturities, calls and pay
downs of $115 million and sales of $92 million
in lower yielding securities. The proceeds from
the net decrease in the securities portfolio
were utilized to pay down higher cost FHLB
borrowings. The change in unrealized gains
or losses on securities improved to a gain of
$14 million in 2019 from a loss of $7 million in
2018 due to lower long-term rates in 2019.
Deposits
Total deposits increased to $2.7 billion in 2019
from $2.5 billion in 2018 with growth of $213
million. The branch acquisition contributed
$258 million while non-maturity deposits
organically grew by $23 million. Time deposits
excluding acquired balances decreased $68
million given the interest rate environment
in the second half of 2019. The Company
improved its loan-to-deposit ratio to 98%
at year-end from 100% at the end of 2018
primarily as a result of the branch acquisition
and balance sheet deleveraging.
Borrowings
At December 31, 2019 total borrowings
were $531 million with a weighted average
rate of 2.11% at year-end compared to
$724 million with a weighted average rate of
2.56% at year-end 2018. Overall borrowings
decreased $192 million from year-end 2018
due to the branch acquisition and strategic
review, improving cost of funds year-over-
year. Subordinated borrowings increased
by $17 million as $22 million of higher cost
subordinated notes were called and the
Company opportunistically replaced them
with a $40 million private placement issued in
November 2019.
Stockholders’ Equity
Total equity was $396 million at year-end
2019, compared with $371 million at year-end
2018. The Company’s book value per share
increased $1.61 to $25.48 from year-end
2018. The increase was primarily due to a
$22 million improvement in the Company’s
securities fair value adjustment, net of tax,
along with strong net income of $23 million
offset by $13 million in dividends. The 2019
dividend payout ratio amounted to 59%,
compared with 37% in 2018. The total cash
dividends paid in 2019 amounted to $0.86
per share, compared with $0.79 in 2018,
representing an increase of $0.07 per share,
or 9%.
The Company evaluates changes in tangible
book value, a non-GAAP financial measure
that is a commonly used valuation metric in
the investment community, which parallels
some regulatory capital measures. Tangible
book value per share (non-GAAP measure)
increased to $17.30 per share at year-end
2019 up from $16.94 per share at year-
end 2018. Excluding the impact from the
acquisition, tangible book value per share
increased to $18.62; an increase of 10% for
2019.
RESULTS OF OPERATIONS
Net Interest Income
Net interest income for 2019 was $90 million
compared with $91 million in 2018. Interest
income was $135 million, up 6% from $127
million in 2018 as average earning assets
grew $70 million. The net interest margin
was 2.78% in 2019 compared to 2.87%
in the prior year. Purchase loan accretion
contributed 10 and 11 basis points to the
margin in 2019 and 2018, respectively. Yields
P A G E 1 2
P A G E 1 3
2019 Summary Annual Report2019 Summary Annual Report expanded across all loan categories as
variable rate products in the first half of 2019
repriced to higher rates driven by the 2018
short-term hikes. The 2019 yield on securities
improved by 19 basis points reflecting the
benefit of portfolio remix strategies and
associated security sales in the second half of
2019. These improvements in interest from
earning assets were offset by a higher cost of
interest bearing liabilities, especially in the first
half of 2019, which was also driven by short-
term rate hikes in late 2018. While the cost of
interest bearing liabilities increased 30 basis
points to 1.61% on a year-over-year basis,
the same costs improved to 1.42% in the
fourth quarter due to executing deleveraging
strategies associated with the branch
acquisition and securities sales.
Non-Interest Income
Non-interest income for 2019 increased to
$29 million from $28 million in 2018 driven
primarily by customer loan derivative income,
which increased to $2 million in 2019
compared to $860 thousand in 2018. The
increase in these fees is attributable to the
Company’s continued focus on the complexity
of the financial needs of its customers and
related commercial loan growth in 2019.
Customer service fees also contributed to
the overall increase in non-interest income
growing by $589 thousand in 2019. The
increase is due to higher transaction volume
principally from the deposit base obtained
through the branch acquisition. Trust and
investment management fee income in 2019
was relatively flat with 2018. However, assets
under management increased to $2.0 billion
in 2019 compared to $1.7 billion in 2018
primarily due to wealth management accounts
that were obtained through the branch
acquisition.
Non-Interest Expense
Non-interest expense was $90 million in
2019 compared to $76 million in 2018. The
increase in 2019 includes $3 million related
to the branch acquisition, a $3 million
reclassification of losses on the interest rate
cap derivative from other comprehensive
income and $3 million related to branch
optimization and other strategic review
expenses. Salary and employee benefits
expenses increased by $4 million due to
postretirement benefit revaluations on lower
discount rates and an increase in full time
equivalent employees (“FTEs”). FTEs totaled
460 at the end of 2019 compared with 445 at
the end of 2018.
Tangible Book Value Per Share*
16.50
16.61 15.94
16.94 17.30
2015 2016 2017 2018 2019
*Non-GAAP Measure.
Bar H arbor Bankshares
Corporate Information
Annual Meeting
The Annual Meeting of shareholders of Bar
Harbor Bankshares will be held at 11:00 a.m.
on Tuesday, May 12, 2020 at the Bar Harbor
Club located on West Street in Bar Harbor,
Maine.
Financial Information
Shareholders, analysts and other investors
seeking financial information about
Bar Harbor Bankshares should contact:
Josephine Iannelli
Executive Vice President, CFO, Treasurer
207-667-0660
Internet
Bar Harbor Bank & Trust information, as well
as Bar Harbor Bankshares Form 10-K, is
available at www.barharbor.bank
Shareholder Assistance
Questions concerning your shareholder
account, including change of address forms,
records or information about lost certificates
or dividend checks, should be directed to our
transfer agent:
Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717
877-456-4860
www.shareholder.broadridge.com
Stock Exchange Listing
Bar Harbor Bankshares common stock is
traded on the NYSE American
(www.nyse.com), under the symbol BHB.
Form 10-K Annual Report
The Company refers you to its Annual
Report on Form 10-K for year ended 2019
for detailed financial data, management’s
discussion and analysis of financial condition
and results of operations, disclosures about
market risk, market information including
stock graphs, descriptions of the business of
the Company and its products and services.
Mailing Address
If you need to contact our corporate
headquarters office, write:
Bar Harbor Bankshares
Post Office Box 400
82 Main Street
Bar Harbor, Maine 04609-0400
207-288-3314
888-853-7100
Printed Financial Information
We will provide, without charge, and upon
written request, a copy of the Bar Harbor
Bankshares Annual Report to the Securities
and Exchange Commission on Form 10-K.
The Bank will also provide, upon request,
Annual Disclosure Statements for Bar Harbor
Bank & Trust as of December 31, 2019.
Please contact Investor Relations via U.S.
mail at the address above or through email at:
investorrelations@barharbor.bank
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2019 Summary Annual Report2019 Summary Annual Report Personal Banking · Business Banking · Wealth Management
Over 50 locations in Maine, New Hampshire & Vermont
Bar Harbor Bankshares • 82 Main Street, Bar Harbor, Maine 04609
888-853-7100 • www.barharbor.bank
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2019 Summary Annual Report