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Bar Harbor Bankshares Reports Second Quarter 2025 Results; Declares Dividend

1. BHB reported Q2 2025 net income of $6.1 million. 2. Acquisition of Guaranty Bancorp received regulatory approval. 3. Net interest margin rose to 3.23% from 3.17%. 4. Dividend of $0.32 per share is declared, yielding 4.27%. 5. Forbes recognized BHB as a top 'Best-in-State Bank' again.

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Why Bullish?

BHB's financial performance is improving, with growing net income and increasing market recognition enhancing shareholder confidence. Historically, such recognition and growth have positively impacted share prices.

How important is it?

The combination of profitable growth, acquisition expansion, and competitive recognition strongly indicates future performance improvements, increasing the likelihood of positive price impacts.

Why Short Term?

The announcement of increased earnings and dividends typically affects investor sentiment quickly, leading to potential short-term price appreciation.

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Tuesday, 22 July 2025 04:15 PM BAR HARBOR, ME / ACCESS Newswire / July 22, 2025 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") reported second quarter 2025 GAAP net income of $6.1 million or $0.40 per diluted share and core earnings (Non-GAAP) of $10.8 million or $0.70 per diluted share compared to GAAP net income of $10.2 million or $0.66 per diluted share and core earnings (Non-GAAP) of $10.5 or 0.68 per diluted share in the first quarter of 2025.SECOND QUARTER 2025 HIGHLIGHTS (all comparisons to first quarter 2025, unless otherwise noted)Obtained all regulatory approvals to complete acquisition of Guaranty Bancorp, Inc.Recognized by Forbes Magazine as one of America's "Best-in-State Banks" for the fourth consecutive yearNet interest margin expanded to 3.23% from 3.17%4% annualized growth in commercial loans; 7% growth quarter-to-dateBar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, " This quarter we received all regulatory approvals to acquire Guaranty Bancorp, Inc., the parent company of Woodsville Guaranty Savings Bank. This partnership represents a strategic opportunity to strengthen our presence in key markets with good deposit dynamics, increase operational scale, and deliver greater value to our customers through expanded presence and services, while demonstrating continued ability to execute growth opportunities for shareholders. We look forward to bringing our new partners on at or near the end of this month."Mr. Simard further stated, "Our results mark another consistent quarter of core earnings with a stable and expanding margin well above our peers. I am very proud of the way our teams performed all the while working on integration plans and other strategic objectives. We continue to manage the balance sheet, optimizing returns and positioning us for the future which ultimately has gained us the recognition by Forbes as one of America's "Best-in-State Banks" for the fourth consecutive year, an honor that is awarded to less than 5% of all U.S. banks. Such an award is a testament to our people."DIVIDEND DECLAREDThe Board of Directors of the Company voted to declare a cash dividend of $0.32 per share to shareholders of record at the close of business on August 14, 2025, payable on September 12, 2025. This dividend equates to a 4.27% annualized yield based on the $29.96 closing share price of the Company's common stock on June 30, 2025, the last trading day of the second quarter 2025.FINANCIAL CONDITION (Quarter results for June 30, 2025 compared to March 31, 2025)Total assets remained stable at $4.1 billion at the end of the first and second quarter 2025 primarily due to strategically optimizing wholesale borrowings to fund loan originations in anticipation of the expected onboarding of deposits from Woodsville Guaranty Savings Bank ("Woodsville").Total cash and cash equivalents were $87.0 million at the end of the second quarter 2025, compared to $88.1 million at the end of the first quarter 2025. Interest-earning deposits held with other banks decreased to $36.1 million at the end of the second quarter 2025, compared to $54.3 million at the end of the first quarter and yielded 4.68% and 4.55%, respectively. The change in cash balances was driven by new loan originations and investment purchases offset by loan pay downs and advances.Available-for-sale debt securities increased to $528.7 million compared to $514.0 million at first quarter 2025 driven by security purchases of $33.6 million, of which $29.1 million were securities issued by government sponsored entities, $4.5 million were bank subordinated notes, offset by pay downs of $13.3 million, called securities of $40 thousand, and net amortization of $123 thousand. Fair value adjustments decreased the securities portfolio by $6.1 million at quarter-end compared to $64.3 million at the end of the first quarter. During the second quarter, there was a $5.6 million reduction in corporate debt securities due to credit deterioration. The quarter-to-date weighted average yield of the securities portfolio was 3.86% compared to 3.80% at the end of first quarter driven by purchases of higher coupon fixed-rate securities. As of first and second quarter-end, our securities portfolio had an average life of 8.4 years and 8.0 years respectively, with an effective duration of 5.5 years and 5.0 years. All securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.Federal Home Loan Bank ("FHLB") stock increased $2 million to $12.7 million at the end of the second quarter 2025 compared to $10.7 million at the end of the first quarter 2025 driven by the strategic deployment of $57.5 million in advances from FHLB to fund loan originations and purchase investments.The allowance for credit losses on loans increased $528 thousand, which more than offset $257 thousand in net charged-off loans. As a result, the allowance grew to $28.9 million at the end of the second quarter 2025 compared to $28.6 million at the end of the first quarter 2025. The allowance for credit losses to total loans coverage ratio stood at 0.92% for both quarters respectively.Total deposits remained stable at $3.3 billion at the second quarter of 2025 and the first quarter 2025 respectively. We witnessed a shift in deposit mix driven by the interest rate environment and wealth management brokerage transfers in the second quarter 2025 as money market deposits decreased $34.6 million offset by an increase of $32 million in time deposits driven by interest rates and an increase of $4.7 million in non-interest bearing demand deposits driven by seasonality.The Company's book value per share was $30.60 as of the end of the second quarter 2025 compared to $30.51 at the end of the first quarter 2025. Tangible book value per share (non-GAAP) was $22.58 at the end of the second quarter 2025, compared to $22.47 at the end of the first quarter 2025.RESULTS OF OPERATIONS (Quarter results for June 30, 2025 compared to June 30, 2024)The net interest margin increased to 3.23% in the second quarter 2025 compared to 3.09% in the same respective quarter 2024. As loan balances grew $86.7 million year-over-year, the yield on loans grew 7 basis points to 5.48% in the second quarter 2025, up from 5.41% in the same quarter 2024 primarily driven by higher yielding commercial real estate loans.Total interest and dividend income increased by 3.9% or $1.9 million to $48.7 million in the second quarter 2025 compared to $46.8 million in the prior year primarily driven by the repricing of commercial adjustable-rate loans and $166.5 million higher loan balances within the commercial real estate portfolio. Yields on earning assets grew to 5.23% compared to 5.18% in the second quarter 2024. The yield on commercial real estate loans grew to 5.76% in the second quarter 2025 from 5.61% in the second quarter 2024. Total loan yield growth was partially offset by a decrease in the commercial and industrial yields from 6.76% to 6.41% for the second quarter 2025, and the consumer yield declined from 7.26% in the second quarter of 2024 to 6.98% in the second quarter 2025.Total interest expense decreased by 1.5% to $18.8 million in the second quarter 2025 compared to $19.1 million in the second quarter 2024 driven by decreases in interest bearing deposit costs from 2.35% to 2.28% in the second quarter 2025, offset by 5% increase in deposit balances year over year primarily driven a $49.8 million increase in interest bearing deposits, an $11.5 million increase in money market deposits and a $93.6 million in organic growth in time deposits as customers flocked to higher interest rate accounts during volatile interest rate environment. Time deposit yields decreased from 4.33% in the second quarter 2024 to 3.91% in the second quarter 2025.The provision for credit losses on loans of $528 thousand in the second quarter 2025 compared to a provision of $585 thousand in the second quarter 2024, primarily driven by the volume of loans.Non-interest income decreased $4.8 million in the second quarter 2025 to $4.6 million compared to $9.5 million in the same quarter 2024 primarily driven by the Company recognizing impairment losses of $4.9 million on available-for-sale debt securities and other receivables during the three months ended June 30, 2025. The losses were included in net (loss) gain on available-for-sale debt securities in the consolidated statements of income. The losses related to a corporate bond security and other receivable due to credit deterioration where the Company had determined that it no longer intended to hold the security until recovery of the amortized cost basis. Customer service fees decreased $148 thousand driven by lower non-sufficient fund charges. Other income increased $257 thousand driven primarily by credit card incentives.Non-interest expenses increased $2.7 million to $26.5 million in the second quarter 2025 compared to $23.8 million in the second quarter 2024 driven by $1.2 million in acquisition expenses related to Woodsville. Salaries and benefits increased 3% to $14.3 million in the second quarter 2025 compared to $13.9 million in the second quarter 2024 due to cost-of-living adjustments. Professional services fees increased $276 thousand to $514 thousand in the second quarter 2025 compared to $238 thousand in the second quarter 2024 driven by audit exam and legal fee timing. Gain on sale of property decreased year-over-year by $251 thousand driven by the sale of our Avery Lane office in the second quarter 2024.Income tax expense was $1.4 million for the second quarter 2025 compared to $2.5 million for the second quarter of 2024, respectively. Our effective tax rate for the second quarter 2025 was 19% and 20% for the second quarter of 2024.BACKGROUNDBar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 135 years. Bar Harbor Bank & Trust provides full-service community banking with office locations in all three Northern New England states of Maine, New Hampshire and Vermont. For more information, visit www.barharbor.bank.FORWARD-LOOKING STATEMENTSAll statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this release the words "believe," "anticipate," "expect," "may," "will," "assume," "should," "predict," "could," "would," "intend," "targets," "estimates," "projects," "plans," and "potential," and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements relating to Company's balance sheet management, our credit trends, our overall credit performance, and the Company's strategic plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (2) changes in consumer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (4) the impact of liquidity needs on our results of operations and financial condition; (5) changes in the size and nature of our competition; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand, pricing or collectability; (8) the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; (9) operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, climate change, war, terrorism, civil unrest, and future pandemics; (10) lack of strategic growth opportunities or our failure to execute on available opportunities, including those related to our pending acquisition of Guaranty Bancorp, Inc., the parent company of Woodsville Guaranty Savings Bank; (11) our ability to effectively manage problem credits; (12) our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; (13) our ability to retain executive officers and key employees and their customer and community relationships; (14) regulatory, litigation, and reputational risks and the applicability of insurance coverage; (15) changes in the reliability of our vendors, internal control systems or information systems; (16) changes in legislation or regulation and accounting principles, policies, and guidelines; (17) reductions in the market value or outflows of wealth management assets under management; (18) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; and (19) changes in the assumptions used in making such forward-looking statements. Additional factors which could affect the forward-looking statements can be found in the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the "SEC") and available on the SEC's website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company's ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.NON-GAAP FINANCIAL MEASURESThis document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company's results for any particular quarter or year. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information.The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.###CONTACTSJosephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314TABLEINDEXCONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED)ASelected Financial HighlightsBBalance SheetsCLoan and Deposit AnalysisDStatements of IncomeEStatements of Income (Five Quarter Trend)FAverage Yields and CostsGAverage BalancesHAsset Quality AnalysisI-JReconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary DataBAR HARBOR BANKSHARESSELECTED FINANCIAL HIGHLIGHTS - UNAUDITEDAt or for the Quarters EndedJun 30,Mar 31,Dec 31,Sep 30,Jun 30,20252025202420242024PER SHARE DATANet earnings, diluted$0.40$0.66$0.72$0.80$0.67Core earnings, diluted (1)0.700.680.720.800.66Total book value30.6030.5130.0030.1228.81Tangible book value (1)22.5822.4721.9322.0220.68Market price at period end29.9629.5030.5830.8426.88Dividends0.320.300.300.300.30PERFORMANCE RATIOS (2)Return on assets0.60%1.02%1.09%1.20%1.04%Core return on assets (1)1.061.041.091.201.02Pre-tax, pre-provision return on assets (1)0.791.321.441.371.36Core pre-tax, pre-provision return on assets (1)1.391.351.451.371.33Return on equity5.218.889.5210.689.46Core return on equity (1)9.199.099.5710.689.25Return on tangible equity7.2612.2713.2314.9013.44Core return on tangible equity (1)12.6612.5713.2914.9013.15Net interest margin, fully taxable equivalent (1) (3)3.233.173.173.153.09Efficiency ratio (1)62.1062.0059.8462.0962.78FINANCIAL DATA (In millions)Total assets$4,112$4,063$4,083$4,030$4,034Total earning assets (4)3,7893,7613,7823,7203,726Total investments529514521536513Total loans3,1533,1243,1473,0823,064Allowance for credit losses2930292929Total goodwill and intangible assets123123123124124Total deposits3,2923,2973,2683,2613,140Total shareholders' equity469466458460439Net income610111210Core earnings (1)1110111210ASSET QUALITY AND CONDITION RATIOSNet charge-offs (recoveries)(5)/average loans0.03%0.01%0.02%0.01%0.01%Allowance for credit losses on loans/total loans0.920.920.910.940.94Loans/deposits9695969598Shareholders' equity to total assets11.4011.5011.2311.4110.88Tangible shareholders' equity to tangible assets8.678.738.468.618.06___________________________________________________________________(1)Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.(2)All performance ratios are based on average balance sheet amounts, where applicable.(3)Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.(4)Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.(5)Current quarter annualized.BAR HARBOR BANKSHARESCONSOLIDATED BALANCE SHEETS - UNAUDITEDJun 30,Mar 31,Dec 31,Sep 30,Jun 30,(in thousands)20252025202420242024AssetsCash and due from banks$50,948$33,802$34,266$39,877$39,673Interest-earning deposits with other banks36,08754,32937,89641,34362,163Total cash and cash equivalents87,03588,13172,16281,220101,836Available-for-sale debt securities528,690513,961521,018535,892512,928Less: Allowance for credit losses on available-for-sale debt securities-(1,204)(568)--Net available-for-sale debt securities528,690512,757520,450535,892512,928Federal Home Loan Bank stock12,69510,69512,2377,60014,755Loans held for sale2,8291,5151,2351,2723,897Total loans3,152,6643,124,2403,147,0963,081,7353,064,181Less: Allowance for credit losses on loans(28,885)(28,614)(28,744)(29,023)(28,855)Net loans3,123,7793,095,6263,118,3523,052,7123,035,326Premises and equipment, net52,64751,65951,23751,64451,628Other real estate owned-----Goodwill119,477119,477119,477119,477119,477Other intangible assets3,4723,7053,9384,1714,404Cash surrender value of bank-owned life insurance83,07482,47181,85881,82481,221Deferred tax asset, net23,29023,29823,33020,92324,750Other assets75,01773,89279,05173,19283,978Total assets$4,112,005$4,063,226$4,083,327$4,029,927$4,034,200Liabilities and shareholders' equityNon-interest bearing demand$552,074$547,401$575,649$604,963$553,067Interest-bearing demand931,854930,031910,191913,910882,068Savings542,579551,280545,816544,235544,980Money market370,709405,326405,758380,624359,208Time894,772862,773830,274817,354801,143Total deposits3,291,9883,296,8113,267,6883,261,0863,140,466Senior borrowings256,441199,982249,981186,207329,349Subordinated borrowings40,62040,62040,62060,58060,541Total borrowings297,061240,602290,601246,787389,890Other liabilities54,09658,50266,61062,13864,937Total liabilities3,643,1453,595,9153,624,8993,570,0113,595,293Total shareholders' equity468,860467,311458,428459,916438,907Total liabilities and shareholders' equity$4,112,005$4,063,226$4,083,327$4,029,927$4,034,200Net shares outstanding15,32215,31715,28015,26815,232BAR HARBOR BANKSHARESCONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITEDLOAN ANALYSISAnnualizedGrowth %Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,QuarterYear(in thousands)20252025202420242024to Dateto DateCommercial real estate$1,767,206$1,762,132$1,741,223$1,677,310$1,634,6581%3%Commercial and industrial400,908370,683388,599382,554421,297336Total commercial loans2,168,1142,132,8152,129,8222,059,8642,055,95574Residential real estate796,184807,514826,492836,566854,718(6)(8)Consumer111,036105,404103,803103,41599,7762114Tax exempt and other77,33078,50786,97981,89053,732(6)(22)Total loans$3,152,664$3,124,240$3,147,096$3,081,735$3,064,1814%-%DEPOSIT ANALYSISAnnualizedGrowth %Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,QuarterYear(in thousands)20252025202420242024to Dateto DateNon-interest bearing demand$552,074$547,401$575,649$604,963$553,0673%(8)%Interest-bearing demand931,854930,031910,191913,910882,06815Savings542,579551,280545,816544,235544,980(6)(1)Money market370,709405,326405,758380,624359,208(34)(17)Total non-maturity deposits2,397,2162,434,0382,437,4142,443,7322,339,323(6)(3)Time894,772862,773830,274817,354801,1431516Total deposits$3,291,988$3,296,811$3,267,688$3,261,086$3,140,466(1)%1%BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME - UNAUDITEDThree Months EndedSix Months EndedJune 30,June 30,(in thousands, except per share data)2025202420252024Interest and dividend incomeLoans$42,726$40,634$84,530$80,104Securities available for sale5,4745,62010,75711,150Federal Home Loan Bank stock212199349487Interest-earning deposits with other banks276385590920Total interest and dividend income48,68846,83896,22692,661Interest expenseDeposits15,51114,78031,02329,312Borrowings3,2824,2996,3017,535Total interest expense18,79319,07937,32436,847Net interest income29,89527,75958,90255,814Provision for credit losses on available-for-sale debt securities--636-Provision for credit losses on loans528585471874Net interest income after provision for credit losses29,36727,17457,79554,940Non-interest incomeTrust and investment management fee income4,2634,1938,1797,863Customer service fees3,5893,7377,1147,447(Loss) gain on available-for-sale debt securities, net (1)(4,942)50(4,942)50Mortgage banking income6055581,061815Bank-owned life insurance income6025831,2161,144Customer derivative income104168316168Other income425168620356Total non-interest income4,6469,45713,56417,843Non-interest expenseSalaries and employee benefits14,27413,86028,00727,108Occupancy and equipment3,5463,3176,8716,749Depreciation1,0231,0652,0722,106Loss (gain) on sales of premises and equipment, net3(248)93(263)Outside services457462939800Professional services5142381,106638Communication194192360381Marketing6825211,2001,088Amortization of intangible assets233233466466FDIC assessment464448920900Acquisition, conversion and other expenses1,205-1,44420Provision for unfunded commitments--(74)(185)Other expenses3,9433,7547,7857,522Total non-interest expense26,53823,84251,18947,330Income before income taxes7,47512,78920,17025,453Income tax expense1,3832,5323,8675,101Net income$6,092$10,257$16,303$20,352Earnings per share:Basic$0.40$0.67$1.06$1.34Diluted0.400.671.061.33Weighted average shares outstanding:Basic15,32115,22715,31215,213Diluted15,37215,27515,38215,273(1)The $4.9 million loss represents a $4.3 million loss on corporate debt securities and $549 thousand on a matured debt security.BAR HARBOR BANKSHARESCONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITEDJun 30,Mar 31,Dec 31,Sep 30,Jun 30,(in thousands, except per share data)20252025202420242024Interest and dividend incomeLoans$42,726$41,804$41,700$42,042$40,634Securities and other5,4745,2835,2735,5155,620Federal Home Loan Bank stock212137213258199Interest-earning deposits with other banks276314297765385Total interest and dividend income48,68847,53847,48348,58046,838Interest expenseDeposits15,51115,51216,21016,17414,780Borrowings3,2823,0192,2063,4484,299Total interest expense18,79318,53118,41619,62219,079Net interest income29,89529,00729,06728,95827,759Provision for credit losses on available-for-sale debt securities-6361,171--Provision (benefit) for credit losses on loans528(57)(147)228585Net interest income after provision for credit losses29,36728,42828,04328,73027,174Non-interest incomeTrust and investment management fee income4,2633,9163,7094,1294,193Customer service fees3,5893,5253,6043,7883,737(Loss) gain on available-for-sale debt securities, net (1)(4,942)---50Mortgage banking income605456597681558Bank-owned life insurance income602614590570583Customer derivative income104212495265168Other income425195397220168Total non-interest income4,6468,9189,3929,6539,457Non-interest expenseSalaries and employee benefits14,27413,73313,35814,38313,860Occupancy and equipment3,5463,3253,6343,4053,317Depreciation1,0231,0491,0421,0481,065Loss (gain) on sales of premises and equipment, net39071-(248)Outside services457482372386462Professional services514592343441238Communication194166189189192Marketing682518492434521Amortization of intangible assets233233233233233FDIC assessment464456457451448Acquisition, conversion and other expenses1,205239---Provision for unfunded commitments-(74)(625)35-Other expenses3,9433,8424,3193,7673,754Total non-interest expense26,53824,65123,88524,77223,842Income before income taxes7,47512,69513,55013,61112,789Income tax expense1,3832,4842,5511,4182,532Net income$6,092$10,211$10,999$12,193$10,257Earnings per share:Basic$0.40$0.67$0.72$0.80$0.67Diluted0.400.660.720.800.67Weighted average shares outstanding:Basic15,32115,30415,26115,26115,227Diluted15,37215,39315,34615,32615,275(1)The $4.9 million loss represents a $4.3 million loss on corporate debt securities and $549 thousand on a matured debt security.BAR HARBOR BANKSHARESAVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITEDQuarters EndedJun 30,Mar 31,Dec 31,Sep 30,Jun 30,20252025202420242024Earning assetsInterest-earning deposits with other banks4.68%4.55%4.92%5.54%5.65%Available-for-sale debt securities3.863.803.693.863.95Federal Home Loan Bank stock7.204.7812.0710.106.49Loans:Commercial real estate5.765.585.615.675.61Commercial and industrial6.416.576.626.986.76Residential real estate4.144.224.134.114.13Consumer6.987.036.897.237.26Total loans5.485.425.405.495.41Total earning assets5.23%5.16%5.14%5.24%5.18%Funding liabilitiesDeposits:Interest-bearing demand1.44%1.41%1.42%1.48%1.39%Savings0.710.710.720.700.65Money market2.752.772.943.132.93Time3.914.114.304.394.33Total interest-bearing deposits2.282.312.412.452.35Borrowings4.854.614.204.384.57Total interest-bearing liabilities2.51%2.52%2.54%2.66%2.64%Net interest spread2.722.642.602.582.54Net interest margin, fully taxable equivalent(1)3.233.173.173.153.09(1)Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.BAR HARBOR BANKSHARESAVERAGE BALANCES - UNAUDITEDQuarters EndedJun 30,Mar 31,Dec 31,Sep 30,Jun 30,(in thousands)20252025202420242024AssetsInterest-earning deposits with other banks (1)$23,643$27,999$24,000$54,897$27,407Available-for-sale debt securities (2)591,462587,878591,455591,331594,455Federal Home Loan Bank stock11,80411,6237,02310,15812,324Loans:Commercial real estate1,766,7201,759,3211,699,8691,645,9331,600,253Commercial and industrial469,816469,331458,157473,049468,052Residential real estate804,469820,837836,375851,426865,412Consumer109,023104,413103,681101,23097,371Total loans (3)3,150,0283,153,9023,098,0823,071,6383,031,088Total earning assets3,776,9373,781,4023,720,5603,728,0243,665,274Cash and due from banks29,86129,97232,77134,03630,809Allowance for credit losses(28,786)(29,143)(29,021)(28,893)(28,567)Goodwill and other intangible assets123,062123,295123,527123,761123,994Other assets169,540171,477171,351170,113168,239Total assets$4,070,614$4,077,003$4,019,188$4,027,041$3,959,749Liabilities and shareholders' equityDeposits:Interest-bearing demand$906,557$916,129$898,597$888,325$858,657Savings545,304547,672543,430547,482542,950Money market392,034401,268394,536378,855355,731Time883,491853,105842,379807,180775,932Total interest-bearing deposits2,727,3862,718,1742,678,9422,621,8422,533,270Borrowings271,410265,780208,990312,891378,121Total interest-bearing liabilities2,998,7962,983,9542,887,9322,934,7332,911,391Non-interest bearing demand deposits545,308560,310604,017577,428546,448Other liabilities57,26866,58967,53360,73165,712Total liabilities3,601,3723,610,8533,559,4823,572,8923,523,551Total shareholders' equity469,242466,150459,706454,149436,198Total liabilities and shareholders' equity$4,070,614$4,077,003$4,019,188$4,027,041$3,959,749____________________________________________________________________(1)Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.(2)Average balances for available-for-sale debt securities are based on amortized cost.(3)Total average loans include non-accruing loans and loans held for sale.BAR HARBOR BANKSHARESASSET QUALITY ANALYSIS - UNAUDITEDAt or for the Quarters EndedJun 30,Mar 31,Dec 31,Sep 30,Jun 30,(in thousands)20252025202420242024NON-PERFORMING ASSETSNon-accruing loans:Commercial real estate$1,033$1,091$1,321$1,451$551Commercial and industrial1,3441,3541,0981,2181,301Residential real estate6,4114,5573,2903,4533,511Consumer9441,0841,285978914Total non-accruing loans9,7328,0866,9947,1006,277Non-performing available-for-sale debt securities2,4034,9605,760--Other real estate owned-----Total non-performing assets$12,135$13,046$12,754$7,100$6,277Total non-accruing loans/total loans0.31%0.26%0.22%0.23%0.20%Total non-performing assets/total assets0.300.320.310.180.16PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANSBalance at beginning of period$28,614$28,744$29,023$28,855$28,355Charged-off loans(266)(84)(150)(98)(106)Recoveries on charged-off loans911183821Net loans (charged-off) recovered(257)(73)(132)(60)(85)Provision for credit losses on loans528(57)(147)228585Balance at end of period$28,885$28,614$28,744$29,023$28,855Allowance for credit losses/total loans0.92%0.92%0.91%0.94%0.94%Allowance for credit losses/non-accruing loans297354411409460NET LOAN (CHARGE-OFFS) RECOVERIESCommercial real estate$-$-$-$-$-Commercial and industrial(204)(37)(84)(8)(2)Residential real estate64353Consumer(59)(40)(51)(57)(86)Total, net$(257)$(73)$(132)$(60)$(85)Net charge-offs (recoveries) (QTD annualized)/average loans0.03%0.01%0.02%0.01%0.01%Net charge-offs (recoveries) (YTD annualized)/average loans0.020.010.010.010.01PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON AVAILABLE-FOR-SALE DEBT SECURITIESBalance at beginning of period$1,204$568$-$-$-Charged-off interest receivable on available-for-sale debt securities--(603)--Provision for credit losses on available-for-sale debt securities-6361,171--Charged-off previously provisioned allowance for credit loss(1,204)----Balance at end of period$-$1,204$568$-$-BAR HARBOR BANKSHARESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITEDAt or for the Quarters EndedJun 30,Mar 31,Dec 31,Sep 30,Jun 30,(in thousands)20252025202420242024Net income$6,092$10,211$10,999$12,193$10,257Non-core items:Loss (gain) on available-for-sale debt securities, net (6)4,942---(50)Loss (gain) on sale of premises and equipment, net39071-(248)Acquisition, conversion and other expenses1,205239---Income tax expense (1)(1,492)(80)(17)-71Total non-core items (2)4,65824954-(227)Core earnings (2)(A)$10,750$10,460$11,053$12,193$10,030Net interest income(B)$29,895$29,007$29,067$28,958$27,759Non-interest income4,6468,9189,3929,6539,457Total revenue34,54137,92538,45938,61137,216Loss (gain) on available-for-sale debt securities, net (6)4,942---(50)Total core revenue (2)(C)$39,483$37,925$38,459$38,611$37,166Total non-interest expense26,53824,65123,88524,77223,842Non-core expenses:(Loss) gain on sale of premises and equipment, net(3)(90)(71)-248Acquisition, conversion and other expenses(1,205)(239)---Total non-core expenses (2)(1,208)(329)(71)-248Core non-interest expense (2)(D)$25,330$24,322$23,814$24,772$24,090Total revenue34,54137,92538,45938,61137,216Total non-interest expense26,53824,65123,88524,77223,842Pre-tax, pre-provision net revenue(2)(S)$8,003$13,274$14,574$13,839$13,374Core revenue(2)39,48337,92538,45938,61137,166Core non-interest expense(2)25,33024,32223,81424,77224,090Core pre-tax, pre-provision net revenue(2)(U)$14,153$13,603$14,645$13,839$13,076(in millions)Average earning assets(E)$3,777$3,781$3,721$3,728$3,665Average assets(F)4,0714,0774,0194,0273,960Average shareholders' equity(G)469466460454436Average tangible shareholders' equity (2) (3)(H)346343336330312Tangible shareholders' equity, period-end (2) (3)(I)346343335336315Tangible assets, period-end (2) (3)(J)3,9893,9403,9603,9063,910BAR HARBOR BANKSHARESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITEDAt or for the Quarters EndedJun 30,Mar 31,Dec 31,Sep 30,Jun 30,(in thousands)20252025202420242024Common shares outstanding, period-end(K)15,32215,31715,28015,26815,232Average diluted shares outstanding(L)15,37215,39315,34615,32615,275Core earnings per share, diluted (2)(A/L)$0.70$0.68$0.72$0.80$0.66Tangible book value per share, period-end (2)(I/K)22.5822.4721.9322.0220.68Tangible shareholders' equity/total tangible assets (2)(I/J)8.678.738.468.618.06Performance ratios (4)GAAP return on assets0.60%1.02%1.09%1.20%1.04%Core return on assets (2)(A/F)1.061.041.091.201.02Pre-tax, pre-provision return on assets(2)(S/F)0.791.321.441.371.36Core pre-tax, pre-provision return on assets (2)(U/F)1.391.351.451.371.33GAAP return on equity5.218.889.5210.689.46Core return on equity (2)(A/G)9.199.099.5710.689.25Return on tangible equity7.2612.2713.2314.9013.44Core return on tangible equity (1) (2)(A+Q)/H12.6612.5713.2914.9013.15Efficiency ratio (2) (5)(D-O-Q)/(C+N)62.1062.0059.8462.0962.78Net interest margin, fully taxable equivalent (2)(B+P)/E3.233.173.173.153.09Supplementary data (in thousands)Taxable equivalent adjustment for efficiency ratio(N)$706$717$718$686$528Franchise taxes included in non-interest expense(O)141131139138191Tax equivalent adjustment for net interest margin(P)560568578550389Intangible amortization(Q)233233233233233_____________________________________________________________(1)Assumes a marginal tax rate of 24.26% in the first and second quarters of 2025, 23.73% in the fourth quarter 2024, 23.82% in the second and third quarter 2024, 24.01% in the first quarter 2024.(2)Non-GAAP financial measure.(3)Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.(4)All performance ratios are based on average balance sheet amounts, where applicable.(5)Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.(6)The $4.9 million loss represents a $4.3 million loss on corporate debt securities and $549 thousand on a matured debt security.SOURCE: Bar Harbor Bank & Trust

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