Profile: Bar Harbor Bankshares (BHB)
22 Mar 2018
Bar Harbor Bankshares, incorporated on January 19, 1984, is a bank holding company. The Company's operating subsidiary, Bar Harbor Bank & Trust (the Bank), is a community bank, which offers a range of deposit, loan and related banking products, as well as brokerage services provided through a third-party brokerage arrangement. In addition, the Company offers trust and investment management services through its second tier subsidiary, Bar Harbor Trust Services (Trust Services), a Maine chartered non-depository trust company. These products and services are offered to individuals, businesses, not-for-profit organizations and municipalities.
As of January 13, 2017, the Bank operated 49 full-service banking offices throughout Maine, New Hampshire and Vermont. Locations in Maine include Bar Harbor, Northeast Harbor, Southwest Harbor, Somesville, Deer Isle, Blue Hill, Ellsworth, Rockland, Topsham, South China, Winter Harbor, Milbridge, Machias and Lubec. Locations in New Hampshire include Andover, Bradford, Claremont, Concord, Enfield, Grantham, Guild, Hanover, Hillsboro, Lebanon, Milford, Nashua, Newbury, New London, Newport, Peterborough, Sunapee and West Lebanon. Locations in Vermont include Brandon, Pittsford, Quechee, Randolph, Rochester, Royalton, Rutland, South Royalton, West Rutland, Williamstown and Woodstock. As of December 31, 2016, the Bank owned 33 of these banking offices and leased 16 at prevailing rates. The Bank is a retail bank serving individual and business customers, retail establishments and restaurants, seasonal lodging, biological research laboratories and a contingent of retirees. With a range of operations in coastal Maine, Bank serves the tourism, hospitality, lobstering, fishing, boat building and marine services industries. It also serves Maine's wild blueberry industry through its Hancock and Washington County offices.
The Bank offers a range of consumer financial products and services for the deposit and borrowing needs of its retail customers. The Bank's retail deposit products and services include checking accounts, interest bearing negotiable order of withdrawal (NOW) accounts, money market accounts, savings accounts, club accounts, short-term and long-term certificates of deposits (CDs), health savings accounts and individual retirement accounts (IRAs). Credit products and services include home mortgages, residential construction loans, home equity loans and lines of credit, credit cards, installment loans and overdraft protection services. The Bank provides secured and unsecured installment loans for new or used automobiles, boats, recreational vehicles (RVs), mobile homes and other personal needs. The Bank also offers other customary products and services, such as safe deposit box rentals, wire transfers, check collection services, foreign currency exchange, money orders and the United States savings bonds redemptions. The Bank retains Infinex Investments, Inc., (Infinex) as a full service third-party broker-dealer, conducting business under the assumed business name, Bar Harbor Financial Services. Bar Harbor Financial Services is a branch office of Infinex, an independent registered broker-dealer offering securities and insurance products that is not affiliated with the Company or its subsidiaries.
The Bank offers free Internet banking services, including consumer remote deposit capture, e-statements, free check images and electronic bill payment, through its Website at www.bhbt.com. Additionally, the Bank offers telephone banking, an interactive voice response system through which customers can check account balances and activity, as well as initiate money transfers between the accounts. Customers can also monitor the accounts with free mobile banking access through text messaging browser or applications and can receive alerts, view accounts, transfer funds and pay bills. The Bank also offers Popmoney, a personal payment service that eliminates the need for checks and cash by allowing customers to send and receive money as easily as sending and receiving e-mail and text messages. As of December 31, 2016, the Bank had 54 Automated Teller Machines (ATMs), which are located throughout downeast, midcoast and central Maine, as well as south, central and western New Hampshire and Central Vermont. The Bank is also a member of Maine Cash Access, providing customers with surcharge-free access to over 225 ATMs throughout the state of Maine. Visa debit cards are also offered, providing customers with free access to their deposit account balances at point of sale locations throughout most of the world. The Bank offers business loans to individuals, partnerships, corporations and other business entities for capital construction, real estate and equipment financing, working capital, real estate development and a range of other business purposes.
The Bank offers a range of commercial deposit accounts, such as business checking and tiered money market accounts. These accounts are used as operating accounts or short-term savings vehicles. The Bank's cash management services provide business customers with short-term investment opportunities through a cash management sweep program. The Bank also offers Business On-Line Direct (BOLD), an Internet banking service for businesses. This service allows business clients to view account histories, print statements, view check images, order stop payments, transfer funds between accounts and transmit automated clearing house (ACH) files. The Bank also offers remote deposit capture, enabling its business customers to deposit checks remotely. Other commercial banking services include merchant credit card processing provided through a third-party vendor, night depository, and coin and currency handling. Trust Services provides a range of trust and investment management services to individuals, businesses, not-for-profit organizations, and municipalities. Trust Services serves as trustee of both living trusts and trusts under wills, including revocable, irrevocable, charitable remainder and testamentary trusts, and in this capacity holds, accounts for and manages financial assets, real estate and special assets. Trust Services offers custody, estate settlement, and fiduciary tax services.
The Bank offers a range of commercial lending products, including term loans and lines of credit. The Bank offers a range of commercial loans, primarily collateralized, to businesses for working capital (including inventory and receivables), business expansion (including acquisitions of real estate and improvements) and the purchase of equipment and machinery. Commercial loans are provided primarily to organizations and sole proprietors in the tourism, hospitality, healthcare, blueberry, boatbuilding, biological research, and fishing industries, as well as to other small- and medium-sized businesses (SMBs) associated with the coastal communities of Maine. As of December 31, 2016, its total commercial loans were $553,683 and its total consumer loans were $559,705. As of December 31, 2015, its total residential real estate mortgage loans and home equity loans were $506,612 and $46,921 respectively. As of December 31, 2015, its total loans amounted to $1,129,064.
The Company's investment securities are classified as available-for-sale (AFS). AFS securities consist of mortgage-backed securities and obligations of state and political subdivisions. The Company has a liquid security portfolio consisting of mortgage-backed securities (MBS) issued by the United States agencies, the United States government-sponsored enterprises and other non-agency, private-label issuers. The securities portfolio also includes obligations of state and political subdivisions thereof. As of December 31, 2016, its total securities available for sale were $528,856.
Sources of Funds
The Bank utilizes various traditional sources of funding to support its earning asset portfolios. Funding sources principally consist of retail deposits and, to a lesser extent, borrowings from the Federal Home Loan Bank (FHLB) of Boston and CDs obtained from the national market. As of December 31, 2016, its total deposits amounted to $1,050,300. The Bank offers various deposits, including demand deposits, NOW accounts, savings and money market deposits and time deposits. The Bank's demand deposits are principally business accounts. As of December 31, 2016, its total demand deposits amounted to $98,856. The Bank offers interest bearing NOW accounts to individuals and not-for-profit organizations. As of December 31, 2016, its total NOW accounts amounted to $175,150. As of December 31, 2016, its total savings and money market accounts amounted to $359,857 and its total time deposits amounted to $416,437. As of December 31, 2016, its total borrowings were $536,596.
Bar Harbor Bankshares
82 Main St
PO Box 400
BAR HARBOR ME 04609-0400