29 unchanged sentences
Using this approach, we are able to produce simulation results that illustrate the effect that both a gradual “rate ramp” and a “rate shock” have on earnings expectations.
−Removed: Our net interest income sensitivity analysis reflects changes to net interest income assuming no balance sheet
−Removed: growth and a parallel shift in interest rates.
+Added: Our net interest income sensitivity analysis reflects changes to net interest income assuming no balance sheet growth and a parallel shift in interest rates.
All rate changes were “ramped” over the first 12-month period and then maintained at those levels over the remainder of the simulation horizon.
24 unchanged sentences
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
−Removed: Shareholders and the Board of Directors of Bar Harbor Bankshares and Subsidiaries
+Added: To the Shareholders and the Board of Directors of Bar Harbor Bankshares and Subsidiaries
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Bar Harbor Bankshares and Subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2023, and the related notes to the consolidated financial statements (collectively, the financial statements).
−Removed: In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.
+Added: In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 11, 2024, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.
5 unchanged sentences
We conducted our audits in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
+Added: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
14 unchanged sentences
This analysis also determines how expected PD and LGD will react to forecasted levels of the loss drivers.
−Removed: Management utilizes various economic indicators such as changes in unemployment rates, gross domestic product (GDP), property values and other relevant factors as loss drivers and has determined that, due to historical volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators.
+Added: Management utilizes various economic indicators such as changes in unemployment rates, gross domestic product (GDP), property values, housing starts and other relevant factors as loss drivers and has determined that, due to historical volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators.
The allowance evaluation also considers various qualitative factors, such as:
7 unchanged sentences
• We tested the completeness and accuracy of data used by management in determining inputs to the PD and LGD, by agreeing those inputs to internal or external information sources.
−Removed: ● We evaluated management’s judgments used in the identification of peer banks for PD and LGD calculations.
−Removed: ● We evaluated management’s forecasts of future economic indicators for reasonableness, which included unemployment, housing price index, retail sales, and national GDP growth, among others, by comparing these forecasts to external and internal information sources.
+Added: • We evaluated management’s judgments used in the identification of peer banks for PD and LGD calculations, by comparing peer banks to those used in prior periods and to external information sources.
+Added: • We evaluated management’s forecasts of future economic indicators for reasonableness, which included unemployment, housing price index, and national GDP growth, among others, by comparing these forecasts to external and internal information sources.
• We evaluated management’s judgments and assumptions used in the development of the qualitative factors for reasonableness, and tested the reliability of the underlying data on which these factors are based, by comparing information to source documents and external information sources.
1 unchanged sentence
We have served as the Company's auditor since 2015.
−Removed: Boston, Massachusetts
+Added: Hartford, Connecticut
March 11, 2024
14 unchanged sentences
Premises and equipment, net
+Added: Other real estate owned
Other intangible assets
5 unchanged sentences
Total liabilities
−Removed: (in thousands, except share data)
−Removed: December 31, 2022
−Removed: December 31, 2021
Shareholders’ equity
5 unchanged sentences
Retained earnings
−Removed: Accumulated other comprehensive (loss) income
+Added: Accumulated other comprehensive loss
1,256,257 and 1,345,700 shares of treasury stock, at cost, at December 31, 2023 and December 31, 2022, respectively
25 unchanged sentences
Occupancy and equipment
−Removed: Gain on sales of premises and equipment, net
+Added: Loss on sales of premises and equipment, net
Outside services
16 unchanged sentences
(in thousands)
−Removed: Other comprehensive (loss) income, before tax:
−Removed: Changes in unrealized (loss) gain on securities available for sale
−Removed: Changes in unrealized (loss) gain on hedging derivatives
−Removed: Changes in unrealized (loss) gain on pension
−Removed: Income taxes related to other comprehensive income:
−Removed: Changes in unrealized loss (gain) on securities available for sale
−Removed: Changes in unrealized loss (gain) on hedging derivatives
−Removed: Changes in unrealized loss (gain) on pension
−Removed: Total other comprehensive (loss) income
−Removed: Total comprehensive (loss) income
+Added: Other comprehensive income (loss), before tax:
+Added: Changes in unrealized gain (loss) on securities available for sale
+Added: Changes in unrealized gain (loss) on hedging derivatives
+Added: Changes in unrealized gain (loss) on pension
+Added: Income taxes related to other comprehensive income (loss):
+Added: Changes in unrealized (gain) loss on securities available for sale
+Added: Changes in unrealized (gain) loss on hedging derivatives
+Added: Changes in unrealized (gain) loss on pension
+Added: Total other comprehensive income (loss)
+Added: Total comprehensive income (loss)
The accompanying notes are an integral part of these consolidated financial statements.
5 unchanged sentences
Balance at December 31, 2020
−Removed: Other comprehensive income
+Added: Other comprehensive (loss)
+Added: Impact of ASC 326 adoption
Cash dividends declared ($ 0.94 per share)
−Removed: Treasury stock purchased ( 733,567 shares)
Net issuance ( 85,406 shares) to employee stock plans, including related tax effects
1 unchanged sentence
Balance at December 31, 2021
−Removed: Other comprehensive income
−Removed: Impact of ASC 326 adoption
+Added: Other comprehensive loss
Cash dividends declared ($ 1.02 per share)
10 unchanged sentences
CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Years Ended December 31,
+Added: Year Ended December 31,
(in thousands)
1 unchanged sentence
Adjustments to reconcile net income to net cash provided by operating activities:
−Removed: Originations of loans held for sale
−Removed: Proceeds from loan sales
−Removed: Gain (loss) on sale of loans
+Added: Net change in loans held for sale
Provision for credit losses
8 unchanged sentences
Gain on sales of securities, net
−Removed: Amortization (accretion) of right-of-use lease assets
−Removed: (Decrease) increase in lease liabilities
−Removed: Gain on other real estate owned
−Removed: Loss (gain) on premises and equipment, net
+Added: Amortization of right-of-use lease assets
+Added: Decrease in lease liabilities
+Added: Gain on premises and equipment, net
Net change in other assets and liabilities
1 unchanged sentence
Cash flows from investing activities:
−Removed: Proceeds from sales of securities available for sale
−Removed: Proceeds from maturities, calls and prepayments of securities available for sale
+Added: Proceeds from sales, maturities, calls and prepayments of securities available for sale
Purchases of securities available for sale
Net change in loans
−Removed: Recoveries of previously charged off loans
−Removed: Purchase of FHLB stock
−Removed: Proceeds from sale of FHLB stock
+Added: Purchase of Federal Home Loan Bank stock
+Added: Proceeds from sale of Federal Home Loan Bank stock
Purchase of premises and equipment, net
+Added: Proceeds from sale of premises and equipment
Proceeds from premises held for sale
−Removed: Net investment in community limited partnerships
Proceeds from death benefit of bank-owned life insurance policy
−Removed: Acquisitions, net of cash acquired
−Removed: Proceeds from sale of other real estate owned
−Removed: Net cash (used in) provided by investing activities
+Added: Net cash used in investing activities
Cash flows from financing activities:
Net change in deposits
−Removed: Net change in short-term senior borrowings
−Removed: Proceeds from long-term senior borrowings
−Removed: Repayments of long-term senior borrowings
−Removed: Net change in short-term other borrowings
+Added: Net change in short-term borrowings
+Added: Repayments of long-term borrowings
Net issuance to employee stock plans
−Removed: Purchase of treasury and common stock
Cash dividends paid on common stock
−Removed: Net cash provided by (used in) financing activities
−Removed: Year Ended December 31,
−Removed: (in thousands)
+Added: Net cash provided by financing activities
Net change in cash and cash equivalents
4 unchanged sentences
Income taxes paid, net
−Removed: Acquisition of non-cash assets and liabilities:
−Removed: Assets acquired
−Removed: Liabilities acquired
The accompanying notes are an integral part of these consolidated financial statements.
5 unchanged sentences
Bar Harbor Bankshares is a Maine Financial Institution Holding Company for the purposes of the laws of the State of Maine, and as such, is subject to the jurisdiction of the Superintendent of the Maine Bureau of Financial Institutions.
−Removed: These financial statements include the accounts of the Company, its wholly-owned subsidiary Bar Harbor Bank & Trust (the "Bank") and the Bank’s consolidated subsidiaries.
+Added: These financial statements include the accounts of the Company, its wholly-owned subsidiary Bar Harbor Bank & Trust (the "Bank") and the Bank’s consolidated subsidiaries.
The results of operations of companies or assets acquired are included only from the dates of acquisition.
4 unchanged sentences
The consolidated financial statements include the accounts of Bar Harbor Bankshares and its wholly-owned subsidiaries, Bar Harbor Bank & Trust, Bar Harbor Wealth Management, and Cottage Street Corporation.
−Removed: In 2022, Charter Trust Company and Bar Harbor Trust merged to become Bar Harbor Wealth Management.
+Added: In 2022, Charter Trust Company and Bar Harbor Trust Services merged to become Bar Harbor Wealth Management.
All significant inter-company balances and transactions have been eliminated in consolidation.
7 unchanged sentences
Actual results could differ from those estimates.
−Removed: Material estimates that are particularly susceptible to change in the near term relate to the allowance for credit losses, off-balance sheet credit exposures, available for sale securities, the accounting for business combinations including subsequent impairment analyses for goodwill and other intangible assets, accounting for income taxes, post-retirement benefits, and asset impairment assessments.
+Added: Material estimates that are particularly susceptible to change in the near term relate to the allowance for credit losses (“ACL”), off-balance sheet credit exposures, available for sale securities, the accounting for business combinations including subsequent impairment analyses for goodwill and other intangible assets, accounting for income taxes, post-retirement benefits, and asset impairment assessments.
Subsequent Events:
5 unchanged sentences
Changes in estimated fair value of AFS securities, net of applicable income taxes, are reported in accumulated other comprehensive income (loss) as a separate component of shareholders’ equity unless deemed to have a credit loss as discussed below.
−Removed: Premiums and discounts on securities are amortized and accreted over the term of the securities using the interest method.
+Added: Premiums and discounts on securities are amortized and accreted over the term or to first call of the securities using the level yield method.
+Added: Municipal security premiums are accreted over full term straight-line and discounts are amortized over the call term on a straight light basis.
Gains and losses on the sale of securities are recognized at the trade date using the specific-identification method and are shown separately in the Consolidated Statements of Income.
3 unchanged sentences
Securities are triggered for further review in the quarter if the security has significant fluctuations in ratings, drops below investment grade, or significant pricing changes.
−Removed: For securities without credit ratings, other financial information indicating the financial health of the underlying municipality, agency, or organization associated with the underlying security.
−Removed: If this assessment indicates that a credit loss exists, the
−Removed: present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.
+Added: For securities without credit ratings, we utilize other financial information indicating the financial health of the underlying
+Added: municipality, agency, or organization associated with the underlying security.
+Added: If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.
If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance on AFS debt securities is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.
10 unchanged sentences
FHLB stock is periodically evaluated for impairment based on the capital adequacy of the FHLB and its overall financial condition.
−Removed: Based on the capital adequacy, liquidity position and sustained profitability of the FHLB.
−Removed: There was no impairment related to the carrying amount of FHLB stock as of December 31, 2022 and 2021.
+Added: Based on the capital adequacy, liquidity position and sustained profitability of the FHLB, there was no impairment related to the carrying amount of FHLB stock as of December 31, 2023 and 2022.
Loans Held for Sale:
14 unchanged sentences
Loans acquired in acquisitions include some loans that have experienced more than insignificant credit deterioration since origination.
−Removed: The initial allowance for credit losses is determined on a collective basis and allocated to the individual loans.
−Removed: The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost.
+Added: The initial ACL is determined on a collective basis and allocated to the individual loans.
+Added: The sum of the loan’s purchase price and acl becomes its initial amortized cost.
The difference between the initial amortized cost and the par value of the loan is a discount or premium, which is amortized into interest income over the life of the loan.
1 unchanged sentence
Non-performing loans:
−Removed: Residential real estate and home equity loans are generally placed on non-accrual status when reaching 90 days past due, or in process of foreclosure, or sooner if considered appropriate by management.
−Removed: Consumer other loans are generally placed on non-accrual when reaching 90 days or more past due, or sooner if considered appropriate by management.
−Removed: Secured consumer other loans are written down to net realizable value and unsecured
−Removed: consumer loans are charged-off upon reaching 120 days past due.
+Added: Residential real estate and home equity loans are generally placed on non-accrual status when reaching 90 days past due, are in process of foreclosure, or sooner if considered appropriate by management.
+Added: Consumer other loans are generally placed on non-accrual when reaching 90 days or more past due, or sooner if considered
+Added: appropriate by management.
+Added: Secured consumer other loans are written down to net realizable value and unsecured consumer loans are charged-off upon reaching 120 days past due.
Commercial real estate loans and commercial and industrial loans that are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash, and the loan is in the process of collection.
2 unchanged sentences
The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status.
−Removed: A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months.
+Added: A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, a minimum of six months.
Acquired loans that meet the criteria for non-accrual of interest prior to an acquisition are considered non-performing acquired loans that meet the criteria for non-accrual consistent with originated loans.
−Removed: Loans Modified in a Troubled Debt Restructuring:
−Removed: Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, certain concessions are made to the borrower that would not otherwise consider.
+Added: Loan Modifications to Borrowers Experiencing Financial Difficulty:
+Added: In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326):
+Added: Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance for TDRs while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty.
+Added: This guidance was applied on a prospective basis.
+Added: Upon adoption of this guidance, we are no longer required to establish a specific reserve for modifications to borrowers experiencing financial difficulty.
+Added: Instead, modified loans are generally included in their respective category and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL.
+Added: Loans are considered to have been modified when, due to a borrower’s financial difficulties, certain concessions are made to the borrower that would not otherwise consider.
Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.
−Removed: Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan.
+Added: Generally, a non-accrual loan that has been modified to borrowers experiencing financial difficulty will remain on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan before being considered a candidate to return to accrual status.
However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period.
2 unchanged sentences
The allowance for credit losses (the “allowance”) is a significant accounting estimate used in the preparation of the Company’s consolidated financial statements.
−Removed: The allowance is comprised of the allowance for loan losses and the allowance for off-balance sheet credit exposures, which is accounted for as a separate liability in other liabilities on the balance sheet.
+Added: The allowance is comprised of the allowance for credit losses on loans and the allowance for off-balance sheet credit exposures, which is accounted for as a separate liability in other liabilities on the balance sheet.
The level of the allowance represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date.
3 unchanged sentences
The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist.
−Removed: Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans and TDRs.
+Added: Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans.
The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis.
3 unchanged sentences
This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.
−Removed: For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, property values, housing starts, and other relevant factors as loss drivers.
+Added: For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers.
For all DCF models, management has determined that due to historic volatility in economic data, two quarters currently represents a reasonable and supportable forecast period, followed by a six-period reversion to historical mean levels for each of the various economic indicators.
The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level.
−Removed: Specific instrument
−Removed: effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (NPV).
+Added: Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”).
An allowance is established for the difference between the instrument’s NPV and amortized cost basis.
6 unchanged sentences
Loans that do not share risk characteristics with existing pools are evaluated on an individual basis.
−Removed: For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date.
−Removed: When repayment is expected to be from the operation of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral.
+Added: For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date.
+Added: When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral.
When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell.
14 unchanged sentences
Premises and equipment and related improvements are stated at cost less accumulated depreciation.
−Removed: Depreciation is computed on the straight-line method over the lesser of the lease term or estimated useful lives of related assets;
+Added: Depreciation is computed on the straight-line method over the lesser of the lease term or
+Added: estimated useful lives of related assets;
generally five to 39 years for premises and three to eight years for furniture and equipment.
41 unchanged sentences
Any ineffective portion is recorded in earnings.
−Removed: For fair value hedges that are highly effective, the gain or loss on the derivative and the loss or gain on the hedged item attributable to the hedged risk are both
−Removed: recognized in earnings, with the differences (if any) representing hedge ineffectiveness.
+Added: For fair value hedges that are highly effective, the gain or loss on the derivative and the loss or gain on the hedged item attributable to the hedged risk are both recognized in earnings, with the differences (if any) representing hedge ineffectiveness.
Management discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or determines that the designation of the derivative as a hedging instrument is no longer appropriate.
12 unchanged sentences
Off-Balance Sheet Financial Instruments:
−Removed: Off-balance sheet financial instruments consist of commitments to extend credit, and unused or unadvanced loan funds and letters of credit.
+Added: Off-balance sheet financial instruments consist of commitments to extend credit, and unused or unfunded loan funds and letters of credit.
These financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received.
41 unchanged sentences
Revenue Recognition:
−Removed: Non-interest revenue is recognized in accordance with ASC 606, "Revenue from Contracts with Customers."
−Removed: ASC 606 requires a five step process:
+Added: Non-interest revenue is recognized in accordance with ASC 606, "Revenue from Contracts with Customers." ASC 606 requires a five step process:
(1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) a performance obligation is satisfied.
4 unchanged sentences
Trust and investment management fees are primarily comprised of fees earned from investment management, trust administration, tax return preparation, and financial planning.
−Removed: The performance obligation for revenue recognition is generally satisfied over time and the resulting in monthly fee income, based on the daily accrual of the market value of the investment accounts and the applicable fee rate.
+Added: The performance obligation for revenue recognition is generally satisfied over time
+Added: and the resulting in monthly fee income, based on the daily accrual of the market value of the investment accounts and the applicable fee rate.
Marketing Costs:
2 unchanged sentences
An operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and evaluate performance.
−Removed: Operations of the Company are solely within community banking industry and include traditional community banking services, including lending activities, acceptance of demand, savings and time
−Removed: deposits, business services, investment management, trust and third-party brokerage services.
+Added: Operations of the Company are solely within community banking industry and include traditional community banking services, including lending activities, acceptance of demand, savings and time deposits, business services, investment management, trust and third-party brokerage services.
These products and services have similar distribution methods, types of customers and regulatory responsibilities.
4 unchanged sentences
Effect on financial statements
−Removed: Standards Not Yet Adopted
−Removed: ASU 2022-01 Derivatives and Hedging (Topic 815):
−Removed: Fair Value Hedging - Portfolio Layer Method
−Removed: The amendments in this update allow non prepayable financial assets to be included in a closed portfolio hedge using the portfolio layer method.
−Removed: The amendments allow multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments.
−Removed: Additionally, the amendments specify that an entity hedging multiple amounts in a closed portfolio with a single amortizing-notional swap is executing a single-layer hedge, not hedges of multiple layers.
−Removed: January 1, 2023
−Removed: We do not expect adoption of this ASU to have a material impact on our consolidated financial statements.
+Added: Standards Adopted in 2023
ASU 2022-02 Financial Instruments - Credit Losses (Topic 326):
−Removed: Troubled Debt Restructurings and Vintage Disclosures
+Added: Troubled Debt Restructurings ("TDRs") and Vintage Disclosures
The amendments in this update eliminate TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan.
1 unchanged sentence
January 1, 2023
+Added: The adoption of this ASU did not have a material impact on our consolidated financial statements.
+Added: ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323):
+Added: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method
+Added: The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met.
+Added: December 15, 2023, including interim periods within the fiscal year
+Added: The adoption of this ASU did not have a material impact on our consolidated financial statements.
+Added: Standards Not Yet Adopted
+Added: ASU 2023-09 Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures
+Added: The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate).
+Added: For public business entities, the amendments in this update are effective for
+Added: annual periods beginning after December 15, 2024
We do not expect adoption of this ASU to have a material impact on our consolidated financial statements.
4 unchanged sentences
December 31, 2023
−Removed: Mortgage-backed securities:
+Added: Debt securities:
+Added: Obligations of US Government-sponsored enterprises
+Added: Mortgage-backed securities and collateralized mortgage obligations:
US Government-sponsored enterprises
7 unchanged sentences
December 31, 2022
−Removed: Mortgage-backed securities:
+Added: Debt securities:
+Added: Obligations of US Government-sponsored enterprises
+Added: Mortgage-backed securities and collateralized mortgage obligations:
US Government-sponsored enterprises
6 unchanged sentences
We monitor the credit quality of available for sale debt securities through credit ratings from various rating agencies and substantial price changes.
−Removed: Credit ratings express opinions about the credit quality of a security and are utilized us to make informed decisions.
+Added: In an effort to make informed decisions, we utilize credit ratings that express opinions about the credit quality of a security.
Securities are triggered for further review in the quarter if the security has significant fluctuations in ratings, drops below investment-grade, or significant pricing changes.
12 unchanged sentences
Total bonds and obligations
−Removed: Mortgage-backed securities
+Added: Mortgage-backed securities and collateralized mortgage obligations
Total securities available for sale
6 unchanged sentences
Realized Losses
+Added: There were no sales of securities in 2023, the $ 2.0 million represents proceeds from a called security with a $ 34 thousand realized gain.
Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:
3 unchanged sentences
December 31, 2023
−Removed: Mortgage-backed securities:
+Added: Debt securities:
+Added: Obligations of US Government-sponsored enterprises
+Added: Mortgage-backed securities and collateralized mortgage obligations:
US Government-sponsored enterprises
8 unchanged sentences
December 31, 2022
−Removed: Mortgage-backed securities:
+Added: Debt securities:
+Added: Obligations of US Government-sponsored enterprises
+Added: Mortgage-backed securities and collateralized mortgage obligations:
US Government-sponsored enterprises
16 unchanged sentences
Our ability and intent to hold these securities until recovery is supported by our capital and liquidity positions as well as historically low portfolio turnover.
−Removed: The following summarizes, by investment security type, the impact of securities in an unrealized loss position for greater than 12 months at December 31, 2022:
+Added: The following summarizes, by investment security type, the impact of securities in an unrealized loss position at December 31, 2023:
+Added: Obligations of US Government-sponsored enterprises
+Added: 8 out of the total 8 securities in our portfolio of AFS obligations of US Government-sponsored enterprises were in unrealized loss positions.
+Added: Aggregate unrealized losses represented 1.44 % of the amortized cost of securities in unrealized loss positions.
+Added: The US Small Business Administration guarantees the contractual cash flows of all of our obligations of US Government-sponsored enterprises.
+Added: The securities are investment-grade rated and there were no material underlying credit downgrades during the quarter.
US Government-sponsored enterprises
−Removed: 484 out of the total 514 securities in our portfolios of AFS US Government-sponsored enterprises were in unrealized loss positions.
+Added: 448 out of the total 493 securities in our portfolio of AFS US Government-sponsored enterprises were in unrealized loss positions.
Aggregate unrealized losses represented 13.64 % of the amortized cost of securities in unrealized loss positions.
−Removed: The FNMA and FHLMC guarantee the contractual cash flows of all of our US Government- sponsored enterprises.
+Added: The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation guarantee the contractual cash flows of all of our US Government-sponsored enterprises.
The securities are investment grade rated and there were no material underlying credit downgrades during the year.
−Removed: All securities are performing.
−Removed: US Government agencies
−Removed: 140 out of the total 161 securities in our portfolios of AFS US Government agency securities were in unrealized loss positions.
+Added: US Government agency
+Added: 130 out of the total 151 securities in our portfolio of AFS US Government agency securities were in unrealized loss positions.
Aggregate unrealized losses represented 13.68 % of the amortized cost of securities in unrealized loss positions.
−Removed: The Government National Mortgage Association (“GNMA”) guarantees the contractual cash flows of all of our US government agency securities.
+Added: The Government National Mortgage Association guarantees the contractual cash flows of all of our US government agency securities.
The securities are rated investment grade and there were no material underlying credit downgrades during the year.
−Removed: All securities are performing.
Private label
1 unchanged sentence
Aggregate unrealized losses represented 3.05 % of the amortized cost of securities in unrealized loss positions.
−Removed: Based upon the foregoing considerations, and the expectation that our will receive all of the future contractual cash flows related to the amortized cost on these securities, we do not consider there to be any additional other-than-temporary impairment with respect to these securities.
+Added: We expect to receive all of the future contractual cash flows related to the amortized cost on these securities.
Obligations of states and political subdivisions thereof
4 unchanged sentences
There were no material underlying credit downgrades during the year.
−Removed: All securities are performing.
Corporate bonds
2 unchanged sentences
We review the financial strength of all of these bonds and have concluded that the amortized cost remains supported by the expected future cash flows of these securities.
+Added: The most recent review includes all bond issuers and their current credit ratings, financial performance and capitalization.
LOANS AND ALLOWANCE FOR CREDIT LOSSES
15 unchanged sentences
As of December 31, 2023 and 2022, accrued interest receivable for loans totaled $ 11.9 million and $ 10.7 million, respectively, and is included in the “other assets” line item on the Company’s consolidated balance sheets.
−Removed: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and subsequent legislation established the Payroll Protection Program (“PPP”) are administered directly by the Small Business Administration (“SBA”).
−Removed: As of December 31, 2022, we had no remaining PPP loans and as of December 31, 2021, we had 61 PPP loans outstanding, with an outstanding principal balance of $ 6.7 million.
−Removed: PPP loans are included in the commercial and industrial portfolio segment.
Characteristics of each loan portfolio segment are as follows:
4 unchanged sentences
Commercial real estate owner occupied and non-owner occupied - Loans in these segments are primarily owner-occupied or income-producing properties.
−Removed: Loans to Real Estate Investment Trusts (REITs) and unsecured loans to developers that closely correlate to the inherent risk in commercial real estate markets are also included.
+Added: Loans to Real Estate Investment Trusts and unsecured loans to developers that closely correlate to the inherent risk in commercial real estate markets are also included.
Commercial real estate loans are typically written with amortizing payment structures.
3 unchanged sentences
Tax Exempt - Loans in this segment primarily include loans to various state and municipal government entities.
−Removed: Loans made in these borrowers may provide us with tax-exempt income.
+Added: Loans made to these borrowers may provide us with tax-exempt income.
While governed and underwritten similar to commercial loans they do have unique requirements based on established polices.
3 unchanged sentences
Generally loans are secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets.
−Removed: Some loans in this category may be unsecured or guaranteed by government agencies such as the SBA.
+Added: Some loans in this category may be unsecured or guaranteed by government agencies such as the U.S.
+Added: Small Business Administration.
Loans are primarily paid by the operating cash flow of the borrower.
10 unchanged sentences
Allowance for Credit Losses
−Removed: The Allowance for Credit Losses (“ACL”) is comprised of the allowance for loan losses and the allowance for unfunded commitments which is accounted for as a separate liability in other liabilities on the balance sheet.
−Removed: The level of the ACL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date.
−Removed: The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.
+Added: The Allowance for Credit Losses (“ACL”) is comprised of the allowance for loan losses and the allowance for unfunded commitments which is accounted for as a separate liability in other liabilities on our consolidated balance sheet.
+Added: The level of the ACL represents management’s estimate of expected credit losses over the expected life of the loans at the consolidated balance sheet date.
+Added: The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans.
Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible.
1 unchanged sentence
The ACL is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist.
−Removed: Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans and TDRs.
+Added: Loans that do not share risk characteristics are evaluated on an individual basis, generally larger non-accruing commercial loans.
The activity in the allowance for credit losses for the periods ended are as follows:
9 unchanged sentences
At or for the Year Ended December 31, 2022
−Removed: Impact of ASC
(in thousands)
7 unchanged sentences
At or for the Year Ended December 31, 2021
+Added: Impact of ASC
(in thousands)
17 unchanged sentences
We have certain lending policies and procedures in place designed to maximize loan income within an acceptable level of risk.
−Removed: Our Board of Directors review and approve these policies and procedures on a regular basis.
+Added: Our Board of Directors reviews and approves these policies and procedures on a regular basis.
A reporting system supplements the review process by providing management and the Board of Directors with frequent reports related to loan production, loan quality, and concentration of credit, loan delinquencies, non-performing loans and potential problem loans.
37 unchanged sentences
Special mention
+Added: Current period gross write-offs
Commercial real estate owner occupied
Special mention
+Added: Current period gross write-offs
Commercial real estate non-owner occupied
Special mention
+Added: Current period gross write-offs
Special mention
+Added: Current period gross write-offs
Commercial and industrial
Special mention
+Added: Current period gross write-offs
+Added: (in thousands)
Residential real estate
Nonperforming
+Added: Current period gross write-offs
Nonperforming
+Added: Current period gross write-offs
Consumer other
Nonperforming
+Added: Current period gross write-offs
The following table presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2022:
9 unchanged sentences
Special mention
+Added: (in thousands)
Residential real estate
62 unchanged sentences
Consumer other
−Removed: Troubled Debt Restructuring Loans
−Removed: The loan portfolio also includes certain loans that have been modified in a TDR, where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties.
−Removed: These concessions typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions.
−Removed: Certain TDRs are classified as non-performing at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months .
−Removed: TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan.
−Removed: There were no modifications qualifying as TDRs for the years ended December 31, 2022 and 2021.
−Removed: The following table include the recorded investment and number of modifications identified during the period ended.
−Removed: Year Ended December 31, 2020
−Removed: Pre-Modification
−Removed: Post-Modification
+Added: Loan Modifications to Borrowers Experiencing Financial Difficulty
+Added: In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326):
+Added: Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance for TDRs while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty.
+Added: This guidance was applied on a prospective basis.
+Added: Upon adoption of this guidance, we are no longer required to establish a specific reserve for modifications to borrowers experiencing financial difficulty.
+Added: Instead, these modifications are included in their respective category and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL.
+Added: These modifications typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions.
+Added: There were no qualifying modifications for the twelve months ended December 31, 2022.
+Added: The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2023, by class and by type of modification.
(in thousands)
−Removed: Modifications
+Added: Principal Forgiveness
+Added: Payment Delay
+Added: Term Extension
+Added: Interest Rate Reduction
+Added: Combination Interest Rate Reduction and Term Extension
+Added: % of Total Class of Loans
+Added: Twelve Months Ended December 31, 2023
Commercial construction
4 unchanged sentences
Consumer other
−Removed: The following table summarizes the types of loan concessions made for the period presented:
−Removed: December 31, 2020
−Removed: Post-Modification
+Added: The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023.
(in thousands)
−Removed: Modifications
−Removed: Interest only payments and maturity concession
−Removed: Interest rate, forbearance and maturity concession
−Removed: Amortization and maturity concession
−Removed: Amortization concession
−Removed: Amortization, interest rate and maturity concession
−Removed: Forbearance and interest only payments
−Removed: Forbearance and maturity concession
−Removed: Forbearance, amortization and maturity concession
−Removed: Maturity concession
−Removed: For the year ended December 31, 2022 there were no loans that were restructured that had subsequently defaulted during the period.
−Removed: The evaluation of certain loans individually for specific impairment includes loans that were previously classified as TDRs or continue to be classified as TDRs.
+Added: Weighted-Average Months of Payment Delay
+Added: Weighted-Average Months of Term Extension
+Added: Weighted-Average Interest Rate Reduction
+Added: Twelve Months Ended December 31, 2023
+Added: Commercial construction
+Added: Commercial real estate owner occupied
+Added: Commercial real estate non-owner occupied
+Added: Commercial and industrial
+Added: Residential real estate
+Added: Consumer other
Residential mortgage loans collateralized by real estate that are in the process of foreclosure as of December 31, 2023 and December 31, 2022 totaled $ 430 thousand and $ 253 thousand, respectively.
12 unchanged sentences
Mortgage Banking
−Removed: For the years ended December 31, 2022 and 2021, we sold $ 38.6 million and $ 189.3 million, respectively, of residential mortgage loans on the secondary market, which resulted in a net gain on sale of loans (net of costs, including direct and indirect origination costs) of $ 161 thousand and $ 4.1 million, respectively.
+Added: For the years ended December 31, 2023 and 2022, we sold $ 38.8 million and $ 38.6 million, respectively, of residential mortgage loans on the secondary market, which resulted in a net gain on sale of loans (net of costs, including direct and indirect origination costs) of $ 192 thousand and $ 161 thousand, respectively.
Loans Held for Sale
−Removed: We had no loans held for sale as of December 31, 2022.
+Added: We had $ 2.2 million of loans held for sale as of December 31, 2023, there no loans held for sale as of December 31, 2022.
Loans held for sale at December 31, 2023 had an unpaid principal balance of $ 2.1 million, respectively.
The interest rate exposure on loans held for sale is mitigated through forward delivery commitments with certain approved secondary market investors.
−Removed: We had no forward delivery commitments as of December 31, 2022 and forward delivery commitments had a notional amount of $ 200 thousand at December 31, 2021.
+Added: Forward sale commitments had a notional amount of $ 5.0 million at December 31, 2023, and we had no open forward sale commitments at December 31, 2022.
Refer to Note 10 for further discussion of forward delivery commitments.
20 unchanged sentences
Premises and equipment, net
−Removed: Depreciation expense for the years ended December 31, 2022, 2021 and 2020 amounted to $ 4.2 million, $ 4.6 million and $ 4.8 million, respectively.
−Removed: Premises held for sale for the years ended December 31, 2022 and 2021 were $ 252 thousand and are included in other assets.
+Added: Depreciation expense for the years ended December 31, 2023 and 2022 amounted to $ 4.2 million, and was $ 4.6 million for the year ended December 31, 2021.
+Added: Premises held for sale for the years ended December 31, 2023, 2022 and 2021 were $ 1.2 million, $ 252 thousand and $ 226 thousand, respectively, and are included in other assets.
We measure premises held for sale at the lower of amortized cost or estimated fair value less 6 % selling costs.
−Removed: We did not sell any premises held for sale in 2022.
+Added: We did not sell any premises held for sale in 2023 or 2022.
We sold $ 579 thousand of premises held for sale in 2021 for a net loss of $ 291 thousand.
−Removed: We sold $ 802 thousand of premises held for sale in 2020 at a gain of $ 122 thousand.
−Removed: There were $ 157 thousand of impairment charges recognized in 2021 due to the demolition of a building and no impairment charges recognized in 2022 and 2020.
+Added: There were no impairment charges recognized in 2023 and 2022.
+Added: There were $ 157 thousand of impairment charges recognized in 2021 due to the demolition of a building.
GOODWILL AND OTHER INTANGIBLES
18 unchanged sentences
Other intangible assets are amortized on a straight-line basis over their estimated lives, which range from five years to 11 years .
−Removed: Amortization expenses related to intangibles totaled $ 932 thousand in 2022, $ 940 thousand in 2021 and $ 1.0 million in 2020.
+Added: Amortization expenses related to intangibles totaled $ 932 thousand in 2023, $ 932 thousand in 2022 and $ 940 thousand in 2021.
The estimated aggregate future amortization expense for other intangible assets remaining at year end 2023 is as follows:
29 unchanged sentences
Advances from the FHLB
+Added: Advances from the FRB BTFP
Other borrowings
4 unchanged sentences
Total long-term borrowings
−Removed: Short-term debt includes Federal Home Loan Bank of Boston (“FHLB”) advances with a remaining maturity of less than one year.
+Added: Short-term debt includes FHLB advances with a remaining maturity of less than one year.
We also maintain a $ 1.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB.
There was no outstanding balance on the FHLB line of credit for the years ended December 31, 2023 and 2022.
−Removed: We also have capacity to borrow funds on a secured basis utilizing the Borrower in Custody program and the Discount Window at the FRB.
−Removed: At December 31, 2022, our available secured line of credit at the FRB was $ 90.4 million versus $ 64.7 million in 2021.
−Removed: We have pledged certain loans and securities to the FRB to support this arrangement.
−Removed: There were no borrowings with the FRB as of December 31, 2022 and December 31, 2021.
+Added: We also have capacity to borrow funds on a secured basis utilizing the Federal Reserve Discount Window and the Bank Term Funding Program (“BTFP”).
+Added: As of December 31, 2023, our available secured line of credit at the FRB was $ 156.6 million versus $ 90.4 million in 2022.
+Added: The BTFP enables depository institutions to pledge eligible investment securities to the Federal Reserve with borrowing capacity based upon the par value of the collateral.
+Added: During the fourth quarter of 2023, we entered into the Bank Term Funding Program for $ 30 million at a fixed rate of 4.85 % for a period of one year .
+Added: The BTFP allows us to manage borrowing costs while obtaining favorable prepayment terms, as we may prepay at any time without penalty.
+Added: There were no borrowings with the FRB at December 31, 2022.
We maintain an unused unsecured federal funds line of credit with a correspondent bank that has an aggregate overnight borrowing capacity of $ 50 million as of December 31, 2023 and December 31, 2022.
2 unchanged sentences
The advances outstanding at December 31, 2023 include $ 279 thousand and $ 288 thousand in 2022 of amortizing advances.
−Removed: There were no callable advances in 2022 and $ 20.0 million of callable advances as of December 31, 2021.
+Added: There were no callable advances in 2023 and 2022.
All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally residential first mortgage loans and certain securities.
9 unchanged sentences
We also have $ 20.6 million in floating Junior Subordinated Deferrable Interest Debentures (“Debentures”) issued by NHTB Capital Trust II (“Trust II”) and NHTB Capital Trust III (“Trust III”), which are both Connecticut statutory trusts.
−Removed: The Debentures were issued on March 30, 2004, carry a variable interest rate of three-month LIBOR plus 2.79 %, and mature in 2034.
+Added: The Debentures were issued on March 30, 2004, carry a variable interest rate of three-month SOFR plus 2.79 %, and mature in 2034.
The debt is callable by the Company at the time when any interest payment is made.
26 unchanged sentences
Interest cost
−Removed: Actuarial loss
+Added: Actuarial Gain/(loss)
Benefits paid
11 unchanged sentences
Expected return on plan assets
+Added: Unrecognized loss
Net periodic pension benefit
2 unchanged sentences
Net actuarial loss (gain)
+Added: Recognized loss
Net period pension benefit (credit)
2 unchanged sentences
(in thousands)
−Removed: Net actuarial loss (gain)
+Added: Net actuarial (gain) loss
+Added: Recognized loss
Prior service cost
−Removed: Total accumulated other comprehensive loss (pre-tax)
+Added: Amounts Recognized in accumulated other comprehensive (gain) loss (pre-tax)
The after tax components of accumulated other comprehensive loss, which have not yet been recognized in net periodic pension cost, related to the Plan are a net loss of $ 1.2 million.
64 unchanged sentences
(in thousands)
−Removed: Net actuarial (gain) loss
+Added: Net actuarial loss (gain)
Amortization of unrecognized actuarial loss
−Removed: Total recognized in other comprehensive loss
+Added: Total recognized in other comprehensive loss (gain)
Change in plan assets and benefit obligations recognized in accumulated other comprehensive income in 2023 and 2022 are as follows:
1 unchanged sentence
Accumulated other comprehensive loss at beginning of the year (pre-tax)
−Removed: Actuarial (gain) loss
+Added: Actuarial loss (gain)
Amortization of actuarial loss
15 unchanged sentences
The total liability for these agreements included in other liabilities was $ 6.3 million at December 31, 2023 and $ 6.5 million at December 31, 2022.
−Removed: Income recorded in 2022 and 2021 was $ 1.2 million and $ 312 thousand, respectively.
−Removed: We recorded expense in 2020 under these agreements of $ 793 thousand.
+Added: Expense recorded in 2023 was $ 255 thousand compared to Income recorded in 2022 was $ 1.2 million.
+Added: We recorded income in 2021 under these agreements of $ 312 thousand.
We also assumed split-dollar life insurance agreements from the 2017 business combination with an accrued liability of $ 709 thousand at December 31, 2023 and $ 679 thousand at December 31, 2022.
−Removed: We recorded income for the split-dollar life insurance agreements of $ 197 thousand in 2022 and $ 22 thousand in 2021.
+Added: We recorded expense for the split-dollar life insurance agreements of $ 30 thousand in 2023 and income of $ 197 thousand in 2022.
We recorded expense of $ 22 thousand in 2021.
53 unchanged sentences
We offer derivative products in the form of interest rate swaps, to commercial loan customers to facilitate their risk management strategies.
−Removed: These instruments are executed through Master Netting Arrangements (“MNA”) with financial institution counterparties or Risk Participation Agreements (“RPA”) with commercial bank counterparties, for which we assumes a pro rata share of the credit exposure associated with a borrower's performance related to the derivative contract with the counterparty.
+Added: These instruments are executed through Master Netting Arrangements (“MNA”) with financial institution counterparties or Risk Participation Agreements (“RPA”) with commercial bank counterparties, for which we assume a pro rata share of the credit exposure associated with a borrower's performance related to the derivative contract with the counterparty.
Information about derivative assets and liabilities at December 31, 2023 and December 31, 2022, follows:
5 unchanged sentences
Cash flow hedges:
−Removed: Interest rate swap on wholesale fundings
+Added: Interest rate swap on wholesale funding
Interest rate swap on variable rate loans
5 unchanged sentences
Economic hedges:
+Added: Forward sale commitments
+Added: Other liabilities
Customer Loan Swaps-MNA Counterparty
4 unchanged sentences
Total economic hedges
+Added: Non-hedging derivatives:
+Added: Interest rate lock commitments
+Added: Total non-hedging derivatives
December 31, 2022
4 unchanged sentences
Cash flow hedges:
−Removed: Interest rate swap on wholesale fundings
−Removed: Other liabilities
+Added: Interest rate swap on wholesale funding
Interest rate swap on variable rate loans
3 unchanged sentences
Interest rate swap on securities
−Removed: Other liabilities
Total fair value hedges
52 unchanged sentences
Interest rate lock commitments
+Added: Other expense
Mortgage banking income
63 unchanged sentences
A second agreement was entered in April 2020 with a $ 25.0 million notional amount and pays a fixed rate of 0.59 %.
−Removed: The financial institution counterparty pays us interest on the three-month LIBOR rate.
−Removed: We designated the Swaps as a cash flow hedge.
+Added: The financial institution counterparty pays us interest on the daily SOFR rate plus 26 basis points.
+Added: We designated the Swaps as cash flow hedges.
Interest rate swap on variable rate loans
−Removed: In March 2021, we entered into a contract with a counterparty to manage interest rate risk associated with its variable rate loans.
+Added: We have an interest rate swap that effectively fixes our interest rate on $ 50 million at the daily SOFR rate plus 11 basis points of based loan assets at 0.806 % plus the credit spread on the loans that reprices on weighted average basis.
The instrument is specifically designed to hedge the risk of changes in its cash flows from interest receipts attributable to changes in a contractually specified interest rate, on an amount of our variable rate loan assets equal to $ 50 million.
−Removed: The interest rate swap will effectively fix our interest rate on $ 50 million of one month USD-LIBOR-BBA (or LIBOR less two days) based loan assets at 0.806 % plus the credit spread on the loans that reprices on weighted average basis.
We designated the swap as a cash flow hedge.
2 unchanged sentences
We utilize interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable securities available-for-sale.
−Removed: The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates.
+Added: The hedging strategy on securities converts the fixed interest rates to SOFR-based variable interest rates.
These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities.
96 unchanged sentences
December 31, 2022
−Removed: Accumulated other comprehensive income, before tax:
−Removed: Net unrealized (loss) gain on AFS securities
−Removed: Net unrealized (loss) gain on hedging derivatives
+Added: Accumulated other comprehensive loss, before tax:
+Added: Net unrealized loss on AFS securities
+Added: Net unrealized loss on hedging derivatives
Net unrealized loss on post-retirement plans
−Removed: Income taxes related to items of accumulated other comprehensive income:
−Removed: Net unrealized loss (gain) on AFS securities
−Removed: Net unrealized loss (gain) on hedging derivatives
+Added: Income taxes related to items of accumulated other comprehensive loss:
+Added: Net unrealized loss on AFS securities
+Added: Net unrealized loss on hedging derivatives
Net unrealized loss on post-retirement plans
−Removed: Accumulated other comprehensive (loss) income
+Added: Accumulated other comprehensive loss
The following table presents the components of other comprehensive income in 2023, 2022 and 2021:
1 unchanged sentence
Year Ended December 31, 2023
+Added: Net unrealized gain on AFS securities:
+Added: Net unrealized gain arising during the period
+Added: reclassification adjustment for gains realized in net income
+Added: Net unrealized gain on AFS securities
+Added: Net unrealized gain on hedging derivatives:
+Added: Net unrealized gain arising during the period
+Added: reclassification adjustment for gains realized in net income
+Added: Net unrealized gain on hedging derivatives
+Added: Net unrealized gain on post-retirement plans:
+Added: Net unrealized gain arising during the period
+Added: reclassification adjustment for gains realized in net income
+Added: Net unrealized gain on post-retirement plans
+Added: Other comprehensive income
+Added: Year Ended December 31, 2022
Net unrealized loss on AFS securities:
11 unchanged sentences
Other comprehensive loss
−Removed: Year Ended December 31, 2021
+Added: (in thousands)
Net unrealized loss on AFS securities:
10 unchanged sentences
Net unrealized loss on post-retirement plans
−Removed: Other comprehensive (loss) income
−Removed: (in thousands)
−Removed: Net unrealized gain on AFS securities:
−Removed: Net unrealized gain arising during the period
−Removed: reclassification adjustment for gains (losses) realized in net income
−Removed: Net unrealized gain on AFS securities
−Removed: Net unrealized loss on hedging derivatives:
−Removed: Net unrealized loss arising during the period
−Removed: reclassification adjustment for gains (losses) realized in net income
−Removed: Net unrealized loss on hedging derivatives
−Removed: Net unrealized loss on post-retirement plans:
−Removed: Net unrealized loss arising during the period
−Removed: reclassification adjustment for gains (losses) realized in net income
−Removed: Net unrealized loss on post-retirement plans
−Removed: Other comprehensive income
+Added: Other comprehensive loss
The following table presents the changes in each component of accumulated other comprehensive income/(loss) in 2023, 2022 and 2021:
4 unchanged sentences
(in thousands)
+Added: Year Ended December 31, 2023
Balance at beginning of period
−Removed: Other comprehensive loss before reclassifications
+Added: Other comprehensive gain before reclassifications
amounts reclassified from accumulated other comprehensive income
−Removed: Total other comprehensive loss
+Added: Total other comprehensive income
Balance at end of period
−Removed: Net unrealized
−Removed: Net unrealized
−Removed: effective cash
−Removed: (in thousands)
+Added: Year Ended December 31, 2022
Balance at beginning of period
−Removed: Other comprehensive (loss) gain before reclassifications
+Added: Other comprehensive loss before reclassifications
amounts reclassified from accumulated other comprehensive income
−Removed: Total other comprehensive (loss) income
+Added: Total other comprehensive loss
Balance at end of period
−Removed: Net unrealized
−Removed: Net unrealized
−Removed: effective cash
−Removed: (in thousands)
+Added: Year Ended December 31, 2021
Balance at beginning of period
−Removed: Other comprehensive (loss) gain before reclassifications
+Added: Other comprehensive loss before reclassifications
amounts reclassified from accumulated other comprehensive income
−Removed: Total other comprehensive income (loss)
+Added: Total other comprehensive loss
Balance at end of period
6 unchanged sentences
Total reclassifications for the period
−Removed: Affected Line Item where
−Removed: (in thousands)
−Removed: Net Income is Presented
−Removed: Net realized loss on hedging derivatives:
−Removed: Non-interest income
−Removed: Total reclassifications for the period
−Removed: Affected Line Item where
−Removed: (in thousands)
−Removed: Net Income is Presented
−Removed: Realized loss on post-retirement plans:
−Removed: Non-interest expense
−Removed: Total reclassifications for the period
Earnings per Share
89 unchanged sentences
Nonvested at December 31, 2022
−Removed: Unrecognized expense for non-vested PSUs totaled $ 745 thousand as of December 31, 2022, which is expected to be recognized over the weighted average remaining contractual maturity term of 2.0 years.
+Added: Unrecognized expense for non-vested PSUs totaled $ 1.3 million as of December 31, 2023, which is expected to be recognized over the weighted average remaining contractual maturity term of 2.8 years.
PSUs do not carry an exercise price and therefore have no intrinsic value as of December 31, 2023.
2 unchanged sentences
Awards to executives vest annually over 3 years while awards to senior vice presidents cliff vest at the end of three years .
−Removed: The RSUs granted were valued between $ 28.49 and $ 29.34 for 2022 and between $ 22.51 and $ 28.93 for 2021 the fair value at the date of grant and are expensed over three years .
+Added: The RSUs granted were valued at $ 29.36 for 2023 and between $ 28.49 and $ 29.34 for 2022 the fair value at the date of grant and are expensed over three years .
The following table summarizes RSUs activity in 2023 and 2022:
30 unchanged sentences
Available for sale securities:
+Added: Obligations of US Government-sponsored enterprises
Mortgage-backed securities:
10 unchanged sentences
Available for sale securities:
+Added: Obligations of US Government-sponsored enterprises
Mortgage-backed securities:
27 unchanged sentences
We utilize forward sale commitments as economic hedges against potential changes in the values of the IRLCs and loans originated for sale.
−Removed: The fair values of mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the market place that are observable.
+Added: The fair values of mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the marketplace that are observable.
However, closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are not considered observable factors.
14 unchanged sentences
Balance at beginning of period
−Removed: Realized loss recognized in non-interest income
+Added: Realized gain recognized in non-interest income
Balance at end of period
1 unchanged sentence
Balance at beginning of period
−Removed: Realized gain recognized in non-interest income
+Added: Realized loss recognized in non-interest income
Balance at end of period
Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:
+Added: (in thousands,
+Added: except ratios)
+Added: Assets (Liabilities)
+Added: Interest Rate Lock Commitment
+Added: Pull-through Rate Analysis
+Added: Closing Ratio
+Added: Pricing Model
+Added: Origination Costs, per loan
+Added: Discount Cash Flows
+Added: Mortgage Servicing Asset
(in thousands, except ratios)
15 unchanged sentences
The following is a summary of applicable non-recurring fair value measurements.
−Removed: December 31, 2022
+Added: Measurement Date as of
December 31, 2023
December 31, 2023
−Removed: Fair Value Measurement Date as of December 31, 2022
(in thousands)
21 unchanged sentences
3.25 % to 7.13 %
−Removed: $ 100 to $ 539
Capitalized servicing rights
Discounted cash flow
−Removed: Constant prepayment rate (CPR)
+Added: Constant prepayment rate
Discount rate
18 unchanged sentences
3.63 % to 6.38 %
+Added: $ 100 to $ 539
Capitalized servicing rights
Discounted cash flow
−Removed: Constant prepayment rate (CPR)
+Added: Constant prepayment rate
Discount rate
71 unchanged sentences
(in thousands)
−Removed: Major Products/Service Lines
+Added: Non-interest income within the scope of ASC 606:
Trust management fees
3 unchanged sentences
Other customer service fees
+Added: Total non-interest income within the scope of ASC 606
+Added: Total non-interest income not within the scope of ASC 606
+Added: Total non-interest income
Year Ended December 31,
6 unchanged sentences
These fees are primarily earned over time as we charge our customers on a monthly or quarterly basis in accordance with investment advisory agreements.
−Removed: Fees are generally assessed based on a tiered scale of the market value of assets under management at month end.
+Added: Fees are generally assessed based on a tiered scale of the market value of AUM at month end.
Certain fees, such as bill paying fees, distribution fees, real estate sale fees, and supplemental tax service fees, are recorded as revenue at a point in time upon the completion of the service.
Financial Services Fees
−Removed: Bar Harbor Financial Services is a branch office of Infinex, an independent registered broker dealer offering securities and insurance products not affiliated with the Company or its subsidiaries.
−Removed: We have a revenue sharing agreement with Infinex for any financial service fee income generated.
+Added: Bar Harbor Financial Services is a branch office of Osaic, an independent registered broker dealer offering securities and insurance products not affiliated with the Company or its subsidiaries.
+Added: We have a revenue sharing agreement with Osaic for any financial service fee income generated.
Financial services fees are recognized at a point in time upon the completion of service requirements.
5 unchanged sentences
The customer deposit business offers a variety of deposit accounts with a range of interest rates, fee schedules and other terms, which are designed to meet the customer's financial needs.
−Removed: Additional depositor-related services provided to customers include ATM, bank-by-phone, internet banking, internet bill pay, mobile banking, and other cash management services which include remote deposit capture, ACH origination, and wire transfers.
+Added: Additional depositor-related services provided to customers include ATM, bank-by-phone, internet banking, internet bill pay, mobile banking, and other cash management
+Added: services which include remote deposit capture, ACH origination, and wire transfers.
These customer deposit fees are generally recognized at a point in time upon the completion of the service.
33 unchanged sentences
The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used for the present value of the minimum lease payments.
−Removed: The lease agreements often include one or more options to renew at our discretion.
+Added: The lease agreements often include
+Added: one or more options to renew at our discretion.
If at lease inception, we consider the exercising of a renewal option to be reasonably certain, we will include the extended term in the calculation of the ROU asset and lease liability.
72 unchanged sentences
There were no significant subsequent events between December 31, 2023 and through the date the financial statements are issued.
+Added: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.