Company Performance - Bar Harbor Bankshares (BHB) reported quarterly earnings of $0.7 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.66 per share a year ago [1] - The bank's revenues for the quarter ended June 2025 were $34.54 million, missing the Zacks Consensus Estimate by 10.05%, and down from $37.39 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Bar Harbor shares have increased approximately 3.1% since the beginning of the year, compared to the S&P 500's gain of 7.2% [3] - The current Zacks Rank for Bar Harbor is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $38.8 million, and for the current fiscal year, it is $2.82 on revenues of $153.9 million [7] - The outlook for the industry, specifically the Banks - Northeast sector, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of Bar Harbor Bankshares' second quarter 2025 performance, strategic developments, and dividend declaration [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Bar Harbor Bankshares reported a decrease in GAAP net income for Q2 2025 compared to Q1 2025, while core earnings remained stable, with an expanding net interest margin Second Quarter 2025 Financial Performance | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :----------------------- | :------ | :------ | :----------- | | GAAP Net Income | $6.1M | $10.2M | -$4.1M | | GAAP Diluted EPS | $0.40 | $0.66 | -$0.26 | | Core Earnings (Non-GAAP) | $10.8M | $10.5M | +$0.3M | | Core Diluted EPS (Non-GAAP) | $0.70 | $0.68 | +$0.02 | - Net interest margin expanded to **3.23%** from 3.17% quarter-over-quarter[7](index=7&type=chunk) [Strategic Developments & Recognition](index=1&type=section&id=Strategic%20Developments%20%26%20Recognition) The company received all regulatory approvals for the acquisition of Guaranty Bancorp, Inc., aiming to strengthen market presence and operational scale, and was recognized by Forbes - Obtained all regulatory approvals to acquire Guaranty Bancorp, Inc., parent company of Woodsville Guaranty Savings Bank, to strengthen presence in key markets, increase operational scale, and expand services[2](index=2&type=chunk)[7](index=7&type=chunk) - Recognized by Forbes Magazine as one of America's 'Best-in-State Banks' for the fourth consecutive year, an honor awarded to less than **5%** of all U.S. banks[2](index=2&type=chunk)[7](index=7&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board of Directors declared a cash dividend of $0.32 per share, payable on September 12, 2025, to shareholders of record on August 14, 2025 Dividend Details | Metric | Value | | :------- | :---- | | Dividend Per Share | $0.32 | | Annualized Yield (based on June 30, 2025 closing price) | 4.27% | [Financial Condition (Quarter-over-Quarter Analysis)](index=1&type=section&id=Financial%20Condition%20%28Quarter-over-Quarter%20Analysis%29) This section analyzes Bar Harbor Bankshares' financial condition, focusing on quarter-over-quarter changes in assets, liabilities, and equity [Assets](index=1&type=section&id=Assets) Total assets remained stable at $4.1 billion, primarily due to strategic optimization of wholesale borrowings to fund loan originations, with increases in available-for-sale debt securities and total loans Asset Categories (Millions) | Asset Category | Q2 2025 (Millions) | Q1 2025 (Millions) | Change (QoQ) | | :--------------------------------- | :----------------- | :----------------- | :----------- | | Total Assets | $4,112 | $4,063 | +$49 | | Cash and Cash Equivalents | $87.0 | $88.1 | -$1.1 | | Available-for-Sale Debt Securities | $528.7 | $514.0 | +$14.7 | | Federal Home Loan Bank Stock | $12.7 | $10.7 | +$2.0 | | Total Loans | $3,153 | $3,124 | +$29 | | Allowance for Credit Losses on Loans | $28.9 | $28.6 | +$0.3 | - Total loans increased by **3% annualized growth**, driven by a **$30.2 million** increase in commercial and industrial loans and **$5.1 million** in commercial real estate[10](index=10&type=chunk) - Allowance for credit losses on loans increased by **$0.528 million**, more than offsetting **$0.257 million** in net charged-off loans, maintaining a coverage ratio of **0.92%** for both quarters[11](index=11&type=chunk) [Liabilities and Equity](index=3&type=section&id=Liabilities%20and%20Equity) Total deposits remained stable but experienced a shift in mix, with money market deposits decreasing and time deposits increasing, while book value and tangible book value per share both saw slight increases Deposit Mix (Millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :--------------------------------- | :------ | :------ | :----------- | | Total Deposits | $3.29B | $3.29B | Stable | | Money Market Deposits | -$34.6M | | Decrease | | Time Deposits | +$32M | | Increase | | Non-Interest Bearing Demand Deposits | +$4.7M | | Increase | Per Share Metrics | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------- | :------ | :------ | :----------- | | Book Value Per Share | $30.60 | $30.51 | +$0.09 | | Tangible Book Value Per Share (Non-GAAP) | $22.58 | $22.47 | +$0.11 | [Results of Operations (Year-over-Year Analysis)](index=3&type=section&id=Results%20of%20Operations%20%28Year-over-Year%20Analysis%29) This section provides a year-over-year analysis of Bar Harbor Bankshares' operational results, including net interest income, non-interest income and expense, and net income [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Net interest margin increased year-over-year, driven by growth in loan balances and higher yields on earning assets, while total interest expense decreased due to lower interest-bearing deposit costs Net Interest Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Net Interest Margin | 3.23% | 3.09% | +0.14% | | Total Interest & Dividend Income | $48.7M | $46.8M | +3.9% | | Total Interest Expense | $18.8M | $19.1M | -1.5% | - Yield on loans grew **7 basis points** to **5.48%** in Q2 2025, up from 5.41% in Q2 2024, primarily driven by higher yielding commercial real estate loans[14](index=14&type=chunk) - Interest-bearing deposit costs decreased from **2.35%** to **2.28%** in Q2 2025, despite a **5%** increase in deposit balances year-over-year[16](index=16&type=chunk) [Non-Interest Income and Expense](index=3&type=section&id=Non-Interest%20Income%20and%20Expense) Non-interest income decreased significantly due to impairment losses on available-for-sale debt securities, while non-interest expenses increased, primarily driven by acquisition-related costs and higher salaries and benefits Non-Interest Performance | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--------------------------------- | :------ | :------ | :----------- | | Provision for Credit Losses on Loans | $0.528M | $0.585M | -$0.057M | | Total Non-Interest Income | $4.6M | $9.5M | -$4.9M | | Total Non-Interest Expenses | $26.5M | $23.8M | +$2.7M | - Non-interest income decreased by **$4.8 million**, primarily due to **$4.9 million** in impairment losses on available-for-sale debt securities and other receivables[18](index=18&type=chunk) - Non-interest expenses increased by **$2.7 million**, driven by **$1.2 million** in acquisition expenses related to Woodsville and a **3%** increase in salaries and benefits[19](index=19&type=chunk)[20](index=20&type=chunk) [Net Income and Earnings Per Share](index=5&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) GAAP net income and diluted EPS decreased year-over-year, largely influenced by impairment losses on securities and increased non-interest expenses, partially offset by lower income tax expense Net Income and EPS | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------- | :------ | :------ | :----------- | | Net Income | $6.1M | $10.3M | -$4.2M | | Diluted EPS | $0.40 | $0.67 | -$0.27 | | Income Tax Expense | $1.4M | $2.5M | -$1.1M | | Effective Tax Rate | 19% | 20% | -1% | [Company Background](index=5&type=section&id=Company%20Background) This section provides an overview of Bar Harbor Bankshares, its history, and its operational scope [Company Overview](index=5&type=section&id=Company%20Overview) Bar Harbor Bankshares is the parent company of Bar Harbor Bank & Trust, a community bank founded in 1887, providing full-service community banking across Maine, New Hampshire, and Vermont - Bar Harbor Bankshares (NYSE American: BHB) is the parent company of Bar Harbor Bank & Trust, a community bank founded in 1887[22](index=22&type=chunk) - Bar Harbor Bank & Trust serves clients in Maine, New Hampshire, and Vermont[22](index=22&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section addresses the forward-looking nature of certain statements, outlining potential risks and uncertainties that could cause actual results to differ materially [Disclaimer and Risk Factors](index=5&type=section&id=Disclaimer%20and%20Risk%20Factors) This section outlines the forward-looking nature of certain statements, emphasizing that actual results may differ materially due to various known and unknown risks and uncertainties, and advises against undue reliance on these statements - Statements regarding future activities, events, or developments are 'forward-looking statements' subject to risks and uncertainties[23](index=23&type=chunk) - Key risk factors include changes in economic conditions, consumer behavior, asset quality, liquidity needs, competition, interest rates, loan demand, operational risks (e.g., cybersecurity), strategic growth execution (including acquisitions), regulatory changes, and market value fluctuations[23](index=23&type=chunk) - The company disclaims any obligation to update or revise any forward-looking statement[23](index=23&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures, such as core earnings and tangible book value, providing supplemental perspectives on operating results and financial condition [Explanation and Reconciliation](index=7&type=section&id=Explanation%20and%20Reconciliation) This section clarifies the use of non-GAAP financial measures, such as core earnings and tangible book value, which are provided to offer supplemental perspectives on operating results and financial condition, emphasizing they are not substitutes for GAAP - Non-GAAP measures (e.g., core earnings, core EPS, tangible book value) are used to provide supplemental perspectives on operating results and financial condition[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Core earnings exclude items unrelated to normalized operations, such as gains/losses on securities, acquisition costs, and restructuring costs, presented net of income tax expense[25](index=25&type=chunk) - Non-GAAP measures are not a substitute for GAAP measures and may not be comparable to similarly titled measures from other companies[24](index=24&type=chunk) [Consolidated Financial Schedules (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Schedules%20%28Unaudited%29) This section presents unaudited consolidated financial schedules, including selected financial highlights, balance sheets, loan and deposit analyses, statements of income, average yields and costs, average balances, asset quality analysis, and reconciliation of non-GAAP financial measures [Selected Financial Highlights](index=9&type=section&id=Selected%20Financial%20Highlights) This table summarizes key financial performance indicators and balance sheet data for Bar Harbor Bankshares across five quarters, including per share data, performance ratios, and financial data in millions Selected Financial Highlights | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net earnings, diluted | $0.40 | $0.66 | $0.72 | $0.80 | $0.67 | | Core earnings, diluted (Non-GAAP) | $0.70 | $0.68 | $0.72 | $0.80 | $0.66 | | Total book value | $30.60 | $30.51 | $30.00 | $30.12 | $28.81 | | Tangible book value (Non-GAAP) | $22.58 | $22.47 | $21.93 | $22.02 | $20.68 | | Dividends | $0.32 | $0.30 | $0.30 | $0.30 | $0.30 | | Return on assets | 0.60 % | 1.02 % | 1.09 % | 1.20 % | 1.04 % | | Net interest margin, fully taxable equivalent (Non-GAAP) | 3.23 % | 3.17 % | 3.17 % | 3.15 % | 3.09 % | | Total assets (Millions) | $4,112 | $4,063 | $4,083 | $4,030 | $4,034 | | Total loans (Millions) | $3,153 | $3,124 | $3,147 | $3,082 | $3,064 | | Total deposits (Millions) | $3,292 | $3,297 | $3,268 | $3,261 | $3,140 | [Balance Sheets](index=11&type=section&id=Balance%20Sheets) This table presents the consolidated balance sheets, detailing assets, liabilities, and shareholders' equity for Bar Harbor Bankshares across five quarters Consolidated Balance Sheets (in thousands) | (in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $4,112,005 | $4,063,226 | $4,083,327 | $4,029,927 | $4,034,200 | | Total loans | $3,152,664 | $3,124,240 | $3,147,096 | $3,081,735 | $3,064,181 | | Total deposits | $3,291,988 | $3,296,811 | $3,267,688 | $3,261,086 | $3,140,466 | | Total shareholders' equity | $468,860 | $467,311 | $458,428 | $459,916 | $438,907 | [Loan and Deposit Analysis](index=13&type=section&id=Loan%20and%20Deposit%20Analysis) These tables provide a detailed breakdown of the company's loan portfolio by segment and deposit mix, including annualized growth rates for both quarter-to-date and year-to-date periods Loan Analysis (in thousands) | Loan Type | Jun 30, 2025 | Mar 31, 2025 | QTD Growth % (Annualized) | YTD Growth % (Annualized) | | :---------------------- | :----------- | :----------- | :------------------------ | :------------------------ | | Commercial real estate | $1,767,206 | $1,762,132 | 1 % | 3 % | | Commercial and industrial | $400,908 | $370,683 | 33 % | 6 % | | Total commercial loans | $2,168,114 | $2,132,815 | 7 % | 4 % | | Residential real estate | $796,184 | $807,514 | (6)% | (8)% | | Consumer | $111,036 | $105,404 | 21 % | 14 % | | Total loans | $3,152,664 | $3,124,240 | 4 % | — % | Deposit Analysis (in thousands) | Deposit Type | Jun 30, 2025 | Mar 31, 2025 | QTD Growth % (Annualized) | YTD Growth % (Annualized) | | :------------------------ | :----------- | :----------- | :------------------------ | :------------------------ | | Non-interest bearing demand | $552,074 | $547,401 | 3 % | (8)% | | Interest-bearing demand | $931,854 | $930,031 | 1 % | 5 % | | Savings | $542,579 | $551,280 | (6)% | (1)% | | Money market | $370,709 | $405,326 | (34)% | (17)% | | Time | $894,772 | $862,773 | 15 % | 16 % | | Total deposits | $3,291,988 | $3,296,811 | (1)% | 1 % | [Statements of Income](index=14&type=section&id=Statements%20of%20Income) These tables present the consolidated statements of income, showing revenues, expenses, and net income for both three-month and six-month periods ended June 30, 2025, compared to the prior year, as well as a five-quarter trend Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--------------------------------- | :--- | :--- | | Total interest and dividend income | $48,688 | $46,838 | | Total interest expense | $18,793 | $19,079 | | Net interest income | $29,895 | $27,759 | | Total non-interest income | $4,646 | $9,457 | | Total non-interest expense | $26,538 | $23,842 | | Net income | $6,092 | $10,257 | | Diluted EPS | $0.40 | $0.67 | Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--------------------------------- | :--- | :--- | | Total interest and dividend income | $96,226 | $92,661 | | Total interest expense | $37,324 | $36,847 | | Net interest income | $58,902 | $55,814 | | Total non-interest income | $13,564 | $17,843 | | Total non-interest expense | $51,189 | $47,330 | | Net income | $16,303 | $20,352 | | Diluted EPS | $1.06 | $1.33 | Net Income (in thousands, 5 Quarter Trend) | Quarter Ended | Net Income | | :------------ | :--------- | | Jun 30, 2025 | $6,092 | | Mar 31, 2025 | $10,211 | | Dec 31, 2024 | $10,999 | | Sep 30, 2024 | $12,193 | | Jun 30, 2024 | $10,257 | [Average Yields and Costs](index=16&type=section&id=Average%20Yields%20and%20Costs) This table provides annualized average yields on earning assets and costs on funding liabilities, presented on a fully taxable equivalent basis, across five quarters Average Yields and Costs | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total earning assets yield | 5.23 % | 5.16 % | 5.14 % | 5.24 % | 5.18 % | | Total loans yield | 5.48 % | 5.42 % | 5.40 % | 5.49 % | 5.41 % | | Total interest-bearing deposits cost | 2.28 % | 2.31 % | 2.41 % | 2.45 % | 2.35 % | | Total interest-bearing liabilities cost | 2.51 % | 2.52 % | 2.54 % | 2.66 % | 2.64 % | | Net interest margin, fully taxable equivalent | 3.23 % | 3.17 % | 3.17 % | 3.15 % | 3.09 % | [Average Balances](index=17&type=section&id=Average%20Balances) This table details the average balances of assets, liabilities, and shareholders' equity for Bar Harbor Bankshares over five quarters Average Balances (in thousands) | (in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total earning assets | $3,776,937 | $3,781,402 | $3,720,560 | $3,728,024 | $3,665,274 | | Total loans | $3,150,028 | $3,153,902 | $3,098,082 | $3,071,638 | $3,031,088 | | Total interest-bearing deposits | $2,727,386 | $2,718,174 | $2,678,942 | $2,621,842 | $2,533,270 | | Total liabilities | $3,601,372 | $3,610,853 | $3,559,482 | $3,572,892 | $3,523,551 | | Total shareholders' equity | $469,242 | $466,150 | $459,706 | $454,149 | $436,198 | [Asset Quality Analysis](index=18&type=section&id=Asset%20Quality%20Analysis) This table provides an analysis of asset quality, including non-performing assets, provision and allowance for credit losses on loans, and net loan charge-offs/recoveries across five quarters Asset Quality Analysis (in thousands) | (in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total non-performing assets | $12,135 | $13,046 | $12,754 | $7,100 | $6,277 | | Total non-accruing loans/total loans | 0.31 % | 0.26 % | 0.22 % | 0.23 % | 0.20 % | | Allowance for credit losses on loans/total loans | 0.92 % | 0.92 % | 0.91 % | 0.94 % | 0.94 % | | Net charge-offs (recoveries) (QTD annualized)/average loans | 0.03 % | 0.01 % | 0.02 % | 0.01 % | 0.01 % | [Reconciliation of Non-GAAP Financial Measures](index=20&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) These tables provide a detailed reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures, including core earnings, core revenue, core non-interest expense, and various performance ratios, along with supplementary data Reconciliation of Non-GAAP Financial Measures (in thousands) | (in thousands) | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (GAAP) | $6,092 | $10,211 | $10,999 | $12,193 | $10,257 | | Total non-core items | $4,658 | $249 | $54 | $0 | -$227 | | Core earnings (Non-GAAP) | $10,750 | $10,460 | $11,053 | $12,193 | $10,030 | | Core earnings per share, diluted (Non-GAAP) | $0.70 | $0.68 | $0.72 | $0.80 | $0.66 | | Tangible book value per share, period end (Non-GAAP) | $22.58 | $22.47 | $21.93 | $22.02 | $20.68 | | Core return on assets (Non-GAAP) | 1.06 % | 1.04 % | 1.09 % | 1.20 % | 1.02 % | | Efficiency ratio (Non-GAAP) | 62.10 % | 62.00 % | 59.84 % | 62.09 % | 62.78 % |

Financial Performance - Bar Harbor Bankshares reported Q1 2025 GAAP net income of $10.2 million or $0.66 per diluted share, compared to $11.0 million or $0.72 per diluted share in Q4 2024[1][2]. - Net income for the quarter was $10,211,000, a slight increase from $10,095,000 in the previous year, representing a growth of 1.15%[44]. - Core earnings for Q1 2025 were reported at $10 million, consistent with $11 million in Q4 2024, showing resilience in core operations[35]. - Core earnings per share, diluted, decreased to $0.68 in Q1 2025 from $0.72 in Q4 2024, representing a decline of 5.56%[54]. - Basic earnings per share increased to $0.67, up from $0.66 in the same quarter last year[44]. Asset and Loan Management - Total assets remained stable at $4.1 billion, with total loans at $3.1 billion, reflecting a slight annualized decrease of 3%[5][7]. - Total loans decreased by 3% to $3,124 million compared to $3,147 million in Q4 2024, with commercial real estate loans growing by 5%[41]. - Total loans reached $3,153,902 thousand, an increase of 1.8% from $3,098,082 thousand in the previous quarter[49]. - Non-accruing loans totaled $8,086 thousand, up from $6,994 thousand in the previous quarter, indicating a rise of 15.6%[52]. - Total non-performing assets increased to $13,046 thousand, compared to $12,754 thousand at December 31, 2024, reflecting a growth of 2.3%[52]. Income and Revenue - Non-interest income grew to $8.9 million, with wealth management income increasing by 6.7% to $3.9 million[21]. - Net interest income rose to $29,007,000, up from $28,055,000 in the same quarter last year, reflecting a growth of 3.4%[44]. - Total interest and dividend income reached $47,538,000, compared to $45,823,000 in the prior year, indicating a growth of 3.7%[44]. - Total revenue for the quarter was $37,925 thousand, down from $38,459 thousand in the previous quarter, representing a decline of 1.4%[53]. Dividends and Shareholder Equity - The company declared a cash dividend increase to $0.32 per share, raising the annualized yield from 3.92% to 4.34%[4]. - Total shareholders' equity increased to $467 million from $458 million in Q4 2024, reflecting a solid capital position[39]. - Tangible book value per share increased to $22.47 in Q1 2025, up from $21.93 in Q4 2024, reflecting a growth of 2.46%[54]. - Common shares outstanding at the end of Q1 2025 were 15,317 thousand, an increase from 15,280 thousand in Q4 2024[54]. Efficiency and Ratios - The efficiency ratio for Q1 2025 was 62.00%, slightly higher than 59.84% in Q4 2024, indicating a decrease in operational efficiency[35]. - Return on assets for Q1 2025 was 1.02%, down from 1.09% in Q4 2024, while core return on assets remained at 1.04%[35]. - GAAP return on assets for Q1 2025 was 1.02%, down from 1.09% in Q4 2024, indicating a decrease of 6.42%[54]. - Core return on equity for Q1 2025 was 9.09%, slightly down from 9.57% in Q4 2024, a decline of 5.01%[54]. - The allowance for credit losses on loans decreased to $28.6 million, with a coverage ratio of 0.92%[13]. Deposits - Total deposits remained flat at $3.3 billion, with a 16% annualized increase in time deposits to $863 million[14]. - Total deposits increased to $3,297 million from $3,268 million in Q4 2024, reflecting a growth in non-interest bearing demand deposits[39]. - Total deposits increased by 4% year-over-year to $3,296,811,000 as of March 31, 2025[43]. - Total non-maturity deposits decreased by 1% year-over-year to $2,434,038,000[43]. - Time deposits increased by 16% year-over-year to $862,773,000[43]. Mergers and Acquisitions - The company signed a definitive merger agreement to acquire Guaranty Bancorp, Inc., enhancing its presence in northern New England[3].

Financial Performance - For the three months ended March 31, 2025, total interest and dividend income increased to $47,538,000, up from $45,823,000 in the same period of 2024, representing a growth of 3.7%[13] - Net income for the first quarter of 2025 was $10,211,000, compared to $10,095,000 in the first quarter of 2024, reflecting an increase of 1.15%[13] - Non-interest income rose to $8,918,000 in Q1 2025, compared to $8,386,000 in Q1 2024, marking an increase of 6.3%[13] - The total comprehensive income for the first quarter of 2025 was $12,923,000, compared to $7,389,000 in the same quarter of 2024, reflecting a significant increase of 74.5%[14] - Basic earnings per share increased to $0.67 for Q1 2025, up from $0.66 in Q1 2024, while diluted earnings per share remained stable at $0.66[98] Credit Losses and Asset Quality - The provision for credit losses on loans showed a reversal of $(57,000) in Q1 2025, compared to a provision of $289,000 in Q1 2024, indicating improved asset quality[13] - The allowance for credit losses (ACL) was $28,614 thousand as of March 31, 2025, slightly down from $28,744 thousand on December 31, 2024[42] - The ACL on unfunded commitments decreased to $2,975,000 as of March 31, 2025, from $3,049,000 at the beginning of the period, reflecting a provision for credit losses of $74,000[54] - The company reported a total of $16,428,000 in past due loans as of March 31, 2025, with $13,415,000 in the 30-59 days category[65] - Non-accrual loans totaled $8,086,000 as of March 31, 2025, with a related allowance of $1,875,000[66] Deposits and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $88,131,000, compared to $76,219,000 at the end of Q1 2024, showing an increase of 15.9%[18] - The net change in deposits for Q1 2025 was $29,123,000, compared to a decrease of $14,081,000 in Q1 2024, indicating strong deposit growth[18] - Total time deposits increased to $862.773 million as of March 31, 2025, up from $830.274 million on December 31, 2024, representing a growth of 3.4%[88] - Brokered deposits included in time deposits were $250.9 million as of March 31, 2025, compared to $256.0 million as of December 31, 2024, indicating a decrease of 2.0%[88] Securities and Investments - Total securities available for sale amounted to $578.241 million with a fair value of $513.961 million as of March 31, 2025[25] - The allowance for credit losses on available for sale securities increased to $1.204 million as of March 31, 2025, up from $568 thousand at the beginning of the year[29] - Proceeds from calls/paydowns of securities available for sale were $28.336 million for the three months ended March 31, 2025, compared to $7.739 million for the same period in 2024[32] - The total amount of securities pledged was $69,946 thousand with an estimated fair value of $58,711 thousand as of March 31, 2025[41] Capital and Ratios - The Company’s total capital to risk-weighted assets ratio was 13.69% as of March 31, 2025, exceeding the minimum required ratio of 8.0%[94] - Common equity Tier 1 capital to risk-weighted assets ratio stood at 11.66% as of March 31, 2025, well above the minimum requirement of 4.5%[94] - The Tier 1 leverage ratio was 10.30% as of March 31, 2025, surpassing the required minimum of 4.0%[94] - The total capital to risk-weighted assets ratio for the Bank was 13.61% as of March 31, 2025, exceeding the well-capitalized requirement of 10.0%[94] Interest Rate Risk Management - Interest rate risk is the most significant market risk affecting the company, managed by the Asset and Liability Committee (ALCO)[206] - The company utilizes an interest rate risk model to monitor and measure interest rate risk, simulating interest income and expense under different interest rate scenarios[211] - The company’s interest rate risk management strategy involves using derivative instruments to minimize fluctuations in earnings and cash flows caused by interest rate volatility[100] Derivative Instruments - The company reported a total notional amount of $961,430,000 in derivative financial instruments as of March 31, 2025, with a fair value asset of $1,832,000[103] - The company recognized a total cash flow hedge gain of $182,000 for the three months ended March 31, 2025, while the total fair value hedge loss was $(1,652,000)[105] - The total fair value of derivative assets is $15,151,000, while derivative liabilities amount to $(13,319,000) as of March 31, 2025[118] Loan Portfolio - As of March 31, 2025, total loans amounted to $3,124,240 thousand, a decrease from $3,147,096 thousand on December 31, 2024[42] - The total loans outstanding as of March 31, 2025, were $3,124,240,000, with a significant portion classified as performing[63] - The commercial and industrial loans classified as "pass" were $294,701,000, with total commercial and industrial loans at $301,378,000[63] - The residential real estate loans totaled $871,816,000, with performing loans at $866,963,000 and nonperforming loans at $4,853,000[63]

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Group 1 - Bar Harbor Bankshares (BHB) reported quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.69 per share, but showing an increase from $0.66 per share a year ago, resulting in an earnings surprise of -1.45% [1] - The company posted revenues of $37.93 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.46%, and an increase from $36.64 million year-over-year [2] - Bar Harbor has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has lost approximately 6.7% since the beginning of the year, while the S&P 500 has declined by 10.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.71 on revenues of $38.7 million, and for the current fiscal year, it is $2.84 on revenues of $155.4 million [7] Group 3 - The Zacks Industry Rank indicates that the Banks - Northeast sector is currently in the top 23% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - The estimate revisions trend for Bar Harbor is mixed, resulting in a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]

Group 1 - Bank stocks have faced challenges this year due to concerns about a potential tariff-induced economic slowdown [1] - Bar Harbor Bankshares (NYSE: BHB) has performed relatively well compared to other bank stocks [1] - The investment approach discussed emphasizes a long-term, buy-and-hold strategy focused on stocks that can deliver sustainable high-quality earnings, particularly in the dividend and income sectors [1]

Loan Portfolio - Total loans increased to $3,147,096 thousand in 2024, up from $2,999,049 thousand in 2023, representing a growth of 4.9%[35] - The commercial real estate non-owner occupied loans accounted for 43% of the total loan portfolio in 2024, compared to 38% in 2023[35] - The average loan size in the commercial real estate segment is approximately $2.1 million, with delinquencies at less than 0.02%[38] - The top 10 loans in the non-owner occupied commercial real estate portfolio represent approximately 12.7% of total commercial real estate loans outstanding[38] - The weighted average loan-to-value ratio for the top 10 loans within the non-owner occupied segment was 60.7% as of December 31, 2024[38] - The total commercial loan exposure was $2,156,635 thousand in 2024, an increase from $1,963,200 thousand in 2023[36] - Non-performing loans increased to 0.22% of total loans in 2024, up from 0.18% in 2023, indicating a rise in problem assets[43] - The allowance for credit losses (ACL) stands at $28,744 thousand, representing 0.91% of total loans, slightly down from 0.94% in 2023[48] - The company reported net charge-offs of $353 thousand in 2024, compared to $626 thousand in 2023, reflecting improved loan performance[46] - The total non-performing assets increased to $12,754 thousand in 2024, up from $5,528 thousand in 2023, highlighting a significant rise in distressed assets[43] Deposits and Liquidity - As of December 31, 2024, total deposits amounted to $3.17 billion, with a weighted average rate of 1.94%, compared to $3.05 billion and 1.25% in 2023[57][58] - Non-interest bearing demand deposits decreased from $618.7 million (20% of total) in 2023 to $570.8 million (18% of total) in 2024[57] - Interest-bearing demand deposits increased to $886.3 million with a weighted average rate of 1.41%, up from $900.0 million at 0.98% in 2023[57] - Savings deposits decreased from $594.9 million (20% of total) in 2023 to $546.5 million (17% of total) in 2024, with an increase in the average rate from 0.39% to 0.67%[57] - Money market deposits decreased from $406.8 million (13% of total) in 2023 to $380.0 million (12% of total) in 2024, with the average rate increasing from 2.48% to 3.02%[57] - Time deposits increased significantly from $533.0 million (17% of total) in 2023 to $791.2 million (25% of total) in 2024, with the average rate rising from 3.19% to 4.30%[57] - Estimated uninsured non-maturity deposits were $404.7 million in 2024, down from $525.3 million in 2023[59] Financial Performance - Total interest and dividend income for 2024 increased to $188,724 thousand, up 8.8% from $174,182 thousand in 2023[317] - Net interest income after provision for credit losses was $111,713 thousand in 2024, a decrease of 2.0% compared to $114,767 thousand in 2023[317] - Non-interest income rose to $36,888 thousand in 2024, reflecting an increase of 5.2% from $35,073 thousand in 2023[317] - Total non-interest expense increased to $95,987 thousand in 2024, up 3.3% from $92,723 thousand in 2023[317] - Net income for 2024 was $43,544 thousand, a slight decrease of 2.9% from $44,852 thousand in 2023[318] - Earnings per share (EPS) for 2024 was $2.86, down from $2.96 in 2023, representing a decline of 3.4%[317] - Total comprehensive income for 2024 was $41,870 thousand, down from $53,330 thousand in 2023, indicating a decrease of 21.5%[318] - Cash dividends declared per share increased to $1.18 in 2024 from $1.10 in 2023, marking a rise of 7.3%[320] Capital and Regulatory Compliance - The Bank is required to maintain a minimum common equity Tier 1 capital to risk-weighted assets ratio of 4.5%[107] - The Bank is considered "well capitalized" if it has a total capital to risk-weighted assets ratio of 10.0% or greater[109] - The capital conservation buffer for "adequately capitalized" institutions is more than 2.5% of total risk-weighted assets[108] - The Bank's capital adequacy rules require a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%[107] - The FDIC's Deposit Insurance Fund insures deposits up to $250,000 per depositor[92] - The Bank achieved a "satisfactory" rating on its most recent Community Reinvestment Act examination[102] Interest Rate Risk Management - Interest rate risk is the most significant market risk affecting the Company, managed by the Asset and Liability Committee (ALCO)[288] - The ALCO meets regularly to review balance sheet structure and formulate strategies in response to economic conditions[289] - Interest rate risk is evaluated quarterly, with limits established for variability of net interest income under different rate scenarios[293] - The Company utilizes a widely recognized interest rate risk model to simulate interest income and expense under various scenarios[294] - A parallel shift in interest rates of +200 basis points is expected to improve net interest income by $5,127 (4.2%) over the first 12 months and by $10,880 (8.2%) over the next 13-24 months[299] Community Engagement and Employee Information - The company is committed to community engagement, having provided charitable donations to over 450 organizations across Maine, New Hampshire, and Vermont[76] - The company had 458 full-time equivalent employees as of December 31, 2024, with no union representation[68]

Company Overview - Bar Harbor Bankshares (BHB) is headquartered in Bar Harbor and operates in the Finance sector [3] - The stock has experienced a price change of 4.68% since the beginning of the year [3] Dividend Information - BHB currently pays a dividend of $0.3 per share, resulting in a dividend yield of 3.75% [3] - This yield is significantly higher than the Banks - Northeast industry's yield of 2.6% and the S&P 500's yield of 1.54% [3] - The company's annualized dividend of $1.20 has increased by 1.7% from the previous year [4] - Over the past five years, BHB has raised its dividend four times, averaging an annual increase of 7.72% [4] - The current payout ratio is 42%, indicating that 42% of its trailing 12-month EPS is distributed as dividends [4] Earnings Growth - BHB is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.84 per share, reflecting a year-over-year growth rate of 0.35% [5] Investment Appeal - BHB is considered an attractive dividend investment and is rated with a Zacks Rank of 2 (Buy) [7] - The company is viewed as a compelling investment opportunity due to its secure profits and dividend offerings [7]

Company Overview - Bar Harbor Bankshares (BHB) is located in Bar Harbor and operates within the Finance sector, with a year-to-date share price change of 9.16% [3] - The company currently pays a dividend of $0.3 per share, resulting in a dividend yield of 3.6%, which is significantly higher than the Banks - Northeast industry's yield of 2.51% and the S&P 500's yield of 1.52% [3] Dividend Performance - The annualized dividend of Bar Harbor Bankshares is $1.20, reflecting a 1.7% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 7.72% [4] - The current payout ratio stands at 42%, indicating that the company distributes 42% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for Bar Harbor Bankshares appears solid, with the Zacks Consensus Estimate for 2025 projected at $2.84 per share, representing a 0.35% increase from the previous year [5] Investment Appeal - Bar Harbor Bankshares is considered a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 2 (Buy) [7] - The company is positioned well for income investors, as dividends can enhance stock investing profits and reduce overall portfolio risk [6]