Bar Harbor Bankshares (BHB) Investor Presentation summary

Strategic vision and business model

• Operates as the only community bank headquartered in Northern New England, with over 50 locations across Maine, New Hampshire, and Vermont, focusing on commercial, retail, and wealth management banking services.

• Emphasizes employee and customer experience, risk management, and a service-driven culture to drive core business growth and profitability.

• Maintains prudent growth, prioritizing core lending over investment portfolio expansion, and avoids excessive concentrations in deposit or loan portfolios.

• Cross-selling, especially to the wealth management unit, is fundamental, with only 14.3% of deposits uninsured or not collateralized as of September 30, 2024.

• Recognized by Forbes and Newsweek as a top bank regionally and nationally in 2022–2024.

Financial performance and key metrics

• As of Q3 2024, reported $4.03B in net loans, $3.26B in deposits, $460M in shareholder equity, and a market cap of $471M.

• Q3 2024 metrics: 1.20% return on assets, 10.68% return on equity, 3.15% net interest margin, 62% efficiency ratio, and 0.18% non-performing assets ratio.

• Maintains strong capital ratios, with total capital to risk-weighted assets at 14.37% and CET1 at 11.13% as of Q3 2024.

• 2024 YTD: 4% annualized total loan growth, 7% annualized commercial loan growth, and continued focus on profitable growth.

• Diverse fee income sources, with non-interest income from trust, wealth management, customer service fees, and mortgage banking.

Asset quality, credit, and risk management

• Asset quality remains strong, with accruing delinquent loans at 0.10% and non-accruing loans at 0.23% of total loans in Q3 2024.

• Allowance for credit losses steady at 0.94% of total loans, with a 409% coverage of non-accruing loans.

• No bank-owned real estate from foreclosure activity; pass-rated loans at 96% with positive external reviews.

• Commercial loans have grown from 52% to 70% of the loan portfolio since Q3 2019, reflecting a focus on profitability.

• Office loan exposure is well-diversified, with $260M outstanding (8% of total loans), 91% pass-rated, and 97% within New England, primarily in suburban markets.