Bar Harbor Bankshares (BHB) has reported a 25.49 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $2.58 million, or $0.42 a share in the quarter, compared with $3.47 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 4.44 percent to $13.47 million from $12.90 million in the previous year period. Net interest income for the quarter rose 3.58 percent over the prior year period to $11.66 million. Non-interest income for the quarter fell 3.37 percent over the last year period to $2.04 million.
Bar Harbor Bankshares has made provision of $0.22 million for loan losses during the quarter, down 51.61 percent from $0.46 million in the same period last year.
Net interest margin contracted 26 basis points to 2.89 percent in the quarter from 3.15 percent in the last year period. Efficiency ratio for the quarter deteriorated to 59.90 percent from 58.70 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
president and chief executive officer, Curtis C. Simard stated, “We had a strong finish to the year driven by organic growth and expense management while we prepared for the legal close of our LSBG acquisition which was effective January 13, 2017, and the core system conversion that is expected to be completed in the second quarter in 2017. Earnings in 2016 included merger related costs which we view as an investment that allows us to capitalize on business expansion opportunities and grow our geographic footprint into New Hampshire and Vermont. The acquisition bolsters our market position across New England creating a platform to leverage revenue synergies and expense management, further improving earnings and profitability, and ultimately shareholder value.”
Liabilities outpace assets growth
Total assets stood at $1,755.35 million as on Dec. 31, 2016, up 11.09 percent compared with $1,580.06 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,598.61 million as on Dec. 31, 2016, up 12.11 percent from $1,425.90 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,118.64 million as on Dec. 31, 2016, up 14.07 percent compared with $980.63 million on Dec. 31, 2015. Deposits stood at $1,050.30 million as on Dec. 31, 2016, up 11.40 percent compared with $942.79 million on Dec. 31, 2015.
Investments stood at $528.86 million as on Dec. 31, 2016, up 4.73 percent or $23.89 million from year-ago. Shareholders equity stood at $156.74 million as on Dec. 31, 2016, up 1.68 percent or $2.59 million from year-ago.
Return on average assets moved down 29 basis points to 0.59 percent in the quarter from 0.88 percent in the last year period. At the same time, return on average equity decreased 256 basis points to 6.33 percent in the quarter from 8.89 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.38 percent in the quarter, down from 0.46 percent in the last year period.
Tier-1 leverage ratio stood at 8.94 percent for the quarter, down from 9.37 percent for the previous year quarter. Book value per share was $25.79 for the quarter, up 0.55 percent or $0.14 compared to $25.65 for the same period last year.
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