Bar Harbor Bankshares(US:BHB)2025-11-06 21:23Financial Performance - Total interest and dividend income for Q3 2025 was $55,922, an increase of 15.2% compared to $48,580 in Q3 2024[11] - Net interest income after provision for credit losses for the nine months ended September 30, 2025, was $91,005, up 8.1% from $83,670 in the same period of 2024[11] - Non-interest income for Q3 2025 was $10,567, representing a 9.4% increase from $9,653 in Q3 2024[11] - Net income for Q3 2025 was $8,855, a decrease of 27.5% compared to $12,193 in Q3 2024[11] - Earnings per share (EPS) for Q3 2025 was $0.54, down from $0.80 in Q3 2024, reflecting a 32.5% decline[11] - Total non-interest expense for the nine months ended September 30, 2025, was $83,928, an increase of 16.4% from $72,102 in the same period of 2024[11] - The total comprehensive income for the nine months ended September 30, 2025, was $36,669, down from $39,322 in the same period of 2024[14] - Net income for the nine months ended September 30, 2025, was $25,158 thousand, a decrease of 22.8% compared to $32,545 thousand in the same period of 2024[19] Dividends - The company declared cash dividends of $0.30 per share in Q3 2024, totaling $4,530[16] - The company declared cash dividends of $0.32 per share, totaling $5,369 thousand[17] Credit Losses - The company reported a provision for credit losses on loans of $3,749 in Q3 2025, significantly higher than $228 in Q3 2024[11] - The company reported a provision for credit losses on loans of $4,220 thousand for the nine months ended September 30, 2025, compared to $1,102 thousand in 2024[19] - The Allowance for Credit Losses (ACL) at the end of the period was $33,940,000, reflecting a net increase of $1,055,000 from the previous period[68] - The ACL for commercial and industrial loans was $6,285,000, with charge-offs of $236,000 and recoveries of $12,000[68] Acquisitions - The acquisition of Guaranty Bancorp, Inc. was completed on July 31, 2025, with a total consideration of $39.2 million, representing 9% of the company's outstanding shares at the time[29] - The total assets acquired in the acquisition of Guaranty Bancorp, Inc. amounted to $580,531 thousand, with liabilities assumed totaling $641,177 thousand[20] - The total consideration paid for the acquisition of Guaranty was $39.220 million, which included $39.217 million in common stock and $3,000 in cash for fractional shares[31] - The company completed the acquisition of Woodsville, resulting in an increase in goodwill by $22.3 million, bringing the total goodwill to $141.8 million as of September 30, 2025[187] Cash Flow and Liquidity - The company reported net cash provided by operating activities of $31,121 thousand for the nine months ended September 30, 2025, compared to $39,113 thousand in 2024, reflecting a decrease of 20.4%[19] - Cash and cash equivalents at the end of the period were $136,714 thousand, an increase from $81,220 thousand at the end of September 2024[20] - The company experienced a net change in deposits of $149,219 thousand for the nine months ended September 30, 2025, compared to $119,929 thousand in 2024[19] Securities and Investments - The total available-for-sale debt securities amounted to $597.810 million as of September 30, 2025, with unrealized losses of $56.204 million[40] - The amortized cost of available-for-sale debt securities was $650.791 million as of September 30, 2025[40] - The fair value of available-for-sale securities as of September 30, 2025, included $254,939 thousand in mortgage-backed securities from US Government-sponsored enterprises[152] - The fair value of corporate bonds held as of September 30, 2025, was $2.2 million after recognizing impairment losses totaling $4.4 million and an allowance for credit losses of $1.2 million[153][154] Loans and Credit Quality - Total loans increased to $3.584 billion as of September 30, 2025, up from $3.147 billion at December 31, 2024, representing a growth of approximately 13.9%[58] - The allowance for credit losses increased to $33.940 million as of September 30, 2025, compared to $28.744 million at December 31, 2024[58] - Performing loans total $1,089,550,000, with nonperforming loans at $3,301,000[83] - The risk rating for total loans includes $54,383,000 in substandard loans and $70,927,000 in special mention loans[83] Interest Rate Risk - The Bank's interest rate sensitivity modeling indicates that the balance sheet was asset sensitive over the one- and two-year horizons as of September 30, 2025[276] - A 200 basis point decline in interest rates is projected to decrease net interest income by $9,288,000 (5.8%) over the first 12 months[276] - The sensitivity analysis shows that asset sensitivity has increased in both year one and year two compared to September 30, 2024[278] Non-Interest Income - Total non-interest income for the three months ended September 30, 2025, was $10.57 million, up from $9.65 million in the same period of 2024, representing a year-over-year increase of 9.4%[179] - Trust management fees for the three months ended September 30, 2025, were $3.4 million, slightly down from $3.5 million in 2024, while financial services fees decreased to $506 thousand from $653 thousand[179] - The company recognized total non-interest income within the scope of ASC 606 of $8.21 million for the three months ended September 30, 2025, compared to $7.92 million in 2024, marking a growth of 3.7%[179] Lease Obligations - The total future minimum lease payments as of September 30, 2025, are projected to be $11,450,000, with the present value of net future minimum lease payments at $10,277,000[194] - The weighted-average remaining lease term for operating leases is 11.05 years as of September 30, 2025, down from 11.74 years as of December 31, 2024[193] - For the three months ended September 30, 2025, total lease costs were $477,000, compared to $445,000 for the same period in 2024, reflecting a year-over-year increase of 7.2%[194]