Micro Cap Ideas

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Bar Harbor Bankshares (BHB) - >>> Remember the Maine


https://realmoney.thestreet.com/investing/stocks/svb-collapse-3-regional-bank-stocks-to-buy-16118210?puc=yahoo&cm_ven=YAHOO


Bar Harbor Bankshares (BHB) is a bank holding company. The company's operating subsidiary, Bar Harbor Bank & Trust, is a community bank that 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 this subsidiary, as well as wealth management services through its subsidiary Bar Harbor Wealth Management.

Operating over 50 locations across Maine, New Hampshire, and Vermont, Bar Harbor Bank & Trust is headquartered in Bar Harbor, Maine since 1887 and has more than $3.6 billion in assets.

Bar Harbor Bank & Trust is the only community bank headquartered in Northern New England with branches in Maine, New Hampshire, and Vermont. The bank has a good track record in both earnings and dividend growth combined with a good dividend yield which makes the shares attractive for dividend investors. The company is well-positioned and has been able to create a strong loan pipeline and grow its loan portfolio while maintaining credit quality.

On January 19, Bar Harbor released its fourth-quarter 2022 results for the period ending December 31, 2022. For the quarter the company reported revenue of $41.2 million, compared with revenue $38.7 million in Q3 2022 and $34.97 million in Q4 2022. This result was driven by 11% annualized commercial loan growth and 19% commercial loan growth for 2022, compared to 2021. The fourth-quarter core earnings per diluted share equaled $0.83, compared to $0.76 last quarter and $0.65 in the year-ago period.

Bar Harbor's return on assets came in at 1.20% versus 1.14% last year, while the net interest margin equaled 3.76% compared to 2.79% the prior year. The non-performing asset ratio was 0.17% versus 0.27% in 2021. For the full year of 2022, net income was $43.6 million, or $2.88 per diluted share, compared to $39.3 million, or $2.61 per diluted share for 2021, an increase of 11%.

During the past five years, the company's dividend payout ratio has averaged around 42%. Bar Harbor's dividend is comfortably covered by earnings. Given the expected earnings growth, there is room for the dividend to continue to grow at the same pace and keep the payout ratio around the same levels which is safe.

The shares currently yield 3.9%.

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