Bar Harbor Bankshares Inc (BHB, Financial) filed Quarterly Report for the period ended 2009-03-31.
Bar Harbor Bankshares is a retail bank serving primarily individual customers small retail establishments seasonal lodging campgrounds and restaurants. The bank provides the normal banking services offered by a commercial bank including checking accounts NOW accounts all forms of savings and time deposit accounts individual retirement accounts safe deposit boxes collections travelers checks night depository services direct deposit payroll services credit cards personal money orders bank-by-mail and club accounts and drive-up facilities at all offices. Bar Harbor Bankshares Inc has a market cap of $73.4 million; its shares were traded at around $25.56 with a P/E ratio of 8.4 and P/S ratio of 1.2. The dividend yield of Bar Harbor Bankshares Inc stocks is 4.1%. Bar Harbor Bankshares Inc had an annual average earning growth of 10.4% over the past 10 years. GuruFocus rated Bar Harbor Bankshares Inc the business predictability rank of 2-star.
Net Securities Gains: For the three months ended March 31, 2009, net securities gains amounted to $412, compared with $377 in the first quarter of 2008, representing an increase of $35, or 9.3%. The $412 in first quarter net securities gains were comprised of realized gains on the sale of securities amounting to $1,419, largely offset by other-than-temporary securities impairment losses of $1,006.
For the three months ended March 31, 2009, credit and debit card expenses amounted to $101, compared with $255 for the same quarter in 2008, representing a decline of $154 or 60.4%. The decline in credit and debit card expenses was essentially offset by a $157 or 47.1% decline in credit and debit card income, which is included in non-interest income in the Companys consolidated statements of income.
For the quarter ended March 31, 2009, FDIC insurance assessment premiums amounted to $92, compared with $15 in the first quarter of 2009, representing an increase of $77. The increase in first quarter 2009 assessment premiums was principally attributed to an historical insurance assessment credit recorded in the first quarter of 2008 amounting to $67. In this regard, the FDI Reform Act required the FDIC to establish a one-time historical assessment credit that provided banks with a credit that could be used to offset insurance assessments in 2007 and 2008. This one-time, historical assessment credit was established to benefit banks that had funded deposit insurance funds prior to December 31, 1996.
During the last few quarters, the FDICs Deposit Insurance Fund ("DIF") posted record losses causing the reserve ratio to fall well below 1.15%. A reserve ratio below 1.15% triggers the need for a DIF restoration plan in accordance with the FDI Reform Act of 2005 and conforming amendments. Pursuant to the Act, the FDIC must bring the reserve ratio back to 1.15% within five years. In February 2009, the FDIC issued a proposal that would require all FDIC-insured institutions to pay a one-time special assessment of 20 basis points. If this assessment is approved, the Bank estimates its assessment would total approximately $1,200. Since the proposal, the FDIC communicated its intent to reduce this fee to 10 basis points pending an increase to its line of credit with the U.S. Treasury. The current line is $30 billion with proposals to increase the line permanently to $100 billion and temporarily to $500 billion. The assessment fee would be in addition to the normal second quarter 2009 assessment. In addition to the special assessment, beginning in the second quarter of 2009, the FDIC will add four new factors to the normal assessment rate calculation, including factors for brokered deposits, secured liabilities and unsecured liabilities. These changes are expected to significantly increase FDIC insurance expenses for all insured institutions, including the Bank.
Mortgage-backed securities issued by U.S. Government-sponsored enterprises: As of March 31, 2009, the total unrealized losses on these securities amounted to $11, compared with $10 at December 31, 2008. All of these securities were credit rated "AAA" by the major credit rating agencies. Company management believes these securities have minimal credit risk, as these enterprises play a vital role in the nations financial markets. Company management believes that the unrealized losses at March 31, 2009 were attributed to changes in current market yields and spreads since the date the underlying securities were purchased, and does not consider these securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Mortgage-backed securities issued by U.S. Government agencies: As of March 31, 2009, the total unrealized losses on these securities amounted to $40, compared with $26 at December 31, 2008. All of these securities were credit rated "AAA" by the major credit rating agencies. Company management believes these securities bear no credit risk because they are backed by the full faith and credit of the United States. The Company attributes the unrealized losses at March 31, 2009 to changes in current market yields and spreads for similar securities since the date the underlying securities were purchased, and does not consider these securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Private label mortgage-backed securities: As of March 31, 2009, the total unrealized losses on the Banks Private label mortgage-backed securities amounted to $4,424, compared with $4,193 at December 31 2008. The Company attributes the unrealized losses at March 31, 2009 to current market liquidity conditions, a declining housing market, significant de-leveraging, risk related market pricing discounts for non-agency mortgage-backed securities, and the historical disruption in the financial markets in general. Based upon the foregoing considerations and the expectation that the Company will receive all of the future contractual cash flows on these securities, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Obligations of states of the U.S. and political subdivisions thereof: As of March 31, 2009, the total unrealized losses on the Banks municipal securities amounted to $3,719, compared with $3,667 at December 31, 2008. The Banks municipal securities are supported by the general taxing authority of the municipality and in the cases of school districts, are supported by state aid. At March 31, 2009 all municipal bond issuers were current on contractually obligated interest and principal payments. The Company attributes the unrealized losses at March 31, 2009 to changes in prevailing market yields and pricing spreads since the date the underlying securities were purchased, combined with current market liquidity conditions and the disruption in the financial markets in general. Accordingly, The Company does not consider these municipal securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Federal Home Loan Bank Stock
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Bar Harbor Bankshares is a retail bank serving primarily individual customers small retail establishments seasonal lodging campgrounds and restaurants. The bank provides the normal banking services offered by a commercial bank including checking accounts NOW accounts all forms of savings and time deposit accounts individual retirement accounts safe deposit boxes collections travelers checks night depository services direct deposit payroll services credit cards personal money orders bank-by-mail and club accounts and drive-up facilities at all offices. Bar Harbor Bankshares Inc has a market cap of $73.4 million; its shares were traded at around $25.56 with a P/E ratio of 8.4 and P/S ratio of 1.2. The dividend yield of Bar Harbor Bankshares Inc stocks is 4.1%. Bar Harbor Bankshares Inc had an annual average earning growth of 10.4% over the past 10 years. GuruFocus rated Bar Harbor Bankshares Inc the business predictability rank of 2-star.
Highlight of Business Operations:
For the three months ended March 31, 2009, credit and debit card service charges and fees amounted to $176, compared with $333 in the first quarter of 2008, representing a decline of $157, or 47.1%. The decline in debit and credit card fees was essentially offset by a $154 or 60.4% decline in debit and credit card expenses, which is included in non-interest income in the Companys consolidated statements of income.Net Securities Gains: For the three months ended March 31, 2009, net securities gains amounted to $412, compared with $377 in the first quarter of 2008, representing an increase of $35, or 9.3%. The $412 in first quarter net securities gains were comprised of realized gains on the sale of securities amounting to $1,419, largely offset by other-than-temporary securities impairment losses of $1,006.
For the three months ended March 31, 2009, credit and debit card expenses amounted to $101, compared with $255 for the same quarter in 2008, representing a decline of $154 or 60.4%. The decline in credit and debit card expenses was essentially offset by a $157 or 47.1% decline in credit and debit card income, which is included in non-interest income in the Companys consolidated statements of income.
For the quarter ended March 31, 2009, FDIC insurance assessment premiums amounted to $92, compared with $15 in the first quarter of 2009, representing an increase of $77. The increase in first quarter 2009 assessment premiums was principally attributed to an historical insurance assessment credit recorded in the first quarter of 2008 amounting to $67. In this regard, the FDI Reform Act required the FDIC to establish a one-time historical assessment credit that provided banks with a credit that could be used to offset insurance assessments in 2007 and 2008. This one-time, historical assessment credit was established to benefit banks that had funded deposit insurance funds prior to December 31, 1996.
During the last few quarters, the FDICs Deposit Insurance Fund ("DIF") posted record losses causing the reserve ratio to fall well below 1.15%. A reserve ratio below 1.15% triggers the need for a DIF restoration plan in accordance with the FDI Reform Act of 2005 and conforming amendments. Pursuant to the Act, the FDIC must bring the reserve ratio back to 1.15% within five years. In February 2009, the FDIC issued a proposal that would require all FDIC-insured institutions to pay a one-time special assessment of 20 basis points. If this assessment is approved, the Bank estimates its assessment would total approximately $1,200. Since the proposal, the FDIC communicated its intent to reduce this fee to 10 basis points pending an increase to its line of credit with the U.S. Treasury. The current line is $30 billion with proposals to increase the line permanently to $100 billion and temporarily to $500 billion. The assessment fee would be in addition to the normal second quarter 2009 assessment. In addition to the special assessment, beginning in the second quarter of 2009, the FDIC will add four new factors to the normal assessment rate calculation, including factors for brokered deposits, secured liabilities and unsecured liabilities. These changes are expected to significantly increase FDIC insurance expenses for all insured institutions, including the Bank.
Mortgage-backed securities issued by U.S. Government-sponsored enterprises: As of March 31, 2009, the total unrealized losses on these securities amounted to $11, compared with $10 at December 31, 2008. All of these securities were credit rated "AAA" by the major credit rating agencies. Company management believes these securities have minimal credit risk, as these enterprises play a vital role in the nations financial markets. Company management believes that the unrealized losses at March 31, 2009 were attributed to changes in current market yields and spreads since the date the underlying securities were purchased, and does not consider these securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Mortgage-backed securities issued by U.S. Government agencies: As of March 31, 2009, the total unrealized losses on these securities amounted to $40, compared with $26 at December 31, 2008. All of these securities were credit rated "AAA" by the major credit rating agencies. Company management believes these securities bear no credit risk because they are backed by the full faith and credit of the United States. The Company attributes the unrealized losses at March 31, 2009 to changes in current market yields and spreads for similar securities since the date the underlying securities were purchased, and does not consider these securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Private label mortgage-backed securities: As of March 31, 2009, the total unrealized losses on the Banks Private label mortgage-backed securities amounted to $4,424, compared with $4,193 at December 31 2008. The Company attributes the unrealized losses at March 31, 2009 to current market liquidity conditions, a declining housing market, significant de-leveraging, risk related market pricing discounts for non-agency mortgage-backed securities, and the historical disruption in the financial markets in general. Based upon the foregoing considerations and the expectation that the Company will receive all of the future contractual cash flows on these securities, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Obligations of states of the U.S. and political subdivisions thereof: As of March 31, 2009, the total unrealized losses on the Banks municipal securities amounted to $3,719, compared with $3,667 at December 31, 2008. The Banks municipal securities are supported by the general taxing authority of the municipality and in the cases of school districts, are supported by state aid. At March 31, 2009 all municipal bond issuers were current on contractually obligated interest and principal payments. The Company attributes the unrealized losses at March 31, 2009 to changes in prevailing market yields and pricing spreads since the date the underlying securities were purchased, combined with current market liquidity conditions and the disruption in the financial markets in general. Accordingly, The Company does not consider these municipal securities to be other-than-temporarily impaired at March 31, 2009. The Company also has the ability and intent to hold these securities until a recovery of their amortized cost, which may be at maturity. Federal Home Loan Bank Stock
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