8-K
BAR HARBOR BANKSHARES (BHB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OFTHE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 17, 2025
BAR HARBOR BANKSHARES
(Exact Name of Registrant as Specified in its Charter)
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|---|---|---|
| Maine | 001-13349 | 01-0393663 |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File No.) | (I.R.S. Employer<br>Identification No.) |
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| PO Box 400 | | 04609-0400 |
| 82 Main Street | | (Zip Code) |
| Bar Harbor, Maine | | |
| (Address of Principal Executive Offices) | | |
Registrant’s telephone number, including area code: (207) 288-3314
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act
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| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, par value $2.00 per share | BHB | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 17, 2025, Bar Harbor Bankshares, issued a press release reporting our financial results for the quarter ended March 31, 2025, or the Earnings Release. The full text of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, or this Report, and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished under this Item 2.02 of this Report and the exhibit attached hereto are deemed to be “furnished” and shall not be deemed “filed” for the purpose of Section 18 of the Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
On April 17, 2025, we announced in the Earnings Release that our Board of Directors declared a quarterly cash dividend of $0.32 per share to shareholders of record at the close of business on May 15, 2025 and will be payable on June 13, 2025.
The disclosure contained in Item 2.02 of this Report, including the Earnings Release furnished as Exhibit 99.1 to this Report, is incorporated into this Item 7.01 by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished under this Item 7.01 of this Report and the exhibit attached hereto are deemed to be “furnished” and shall not be deemed “filed” for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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|---|---|---|
| Exhibit No. | **** | Description |
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| 99.1 | | Press Release dated April 17, 2025 |
| 104 | | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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| | Bar Harbor Bankshares | |
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| April 17, 2025 | By: | /s/ Curtis C. Simard |
| | | Curtis C. Simard |
| | | President and CEO |
Exhibit 99.1
Bar Harbor Bankshares Reports First Quarter 2025 Results; Declares 7% Increase in Dividend
BAR HARBOR, MAINE – April 17, 2025 - Bar Harbor Bankshares (NYSE American: BHB) (the “Company”) reported first quarter 2025 GAAP net income of $10.2 million or $0.66 per diluted share and core (Non-GAAP) net income of $10.5 million or $0.68 per diluted share compared to GAAP and core (Non-GAAP) net income of $11.0 million or $0.72 per diluted share in the fourth quarter of 2024 and $10.1 million or $0.66 per diluted share for the first quarter 2024.
FIRST QUARTER 2025 HIGHLIGHTS (all comparisons to fourth quarter 2024, unless otherwise noted)
| • | Signed a Definitive Merger Agreement to acquire Woodsville Guaranty Bancorp, Inc. |
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| • | Net interest margin remains strong at 3.17% |
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| • | 6% growth in assets under management by wealth management |
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| • | 7% increase in dividend declared |
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Bar Harbor Bankshares’ President and Chief Executive Officer, Curtis C. Simard, stated, “Despite the volatility in the capital markets, our teams continue to demonstrate that exceptional customer service, continuous calling, and proactive modeling drive financial strength. Our commercial lending team delivered $50 million in new originations this quarter which offset some larger pay downs. And our responsible management of the balance sheet underscores our commitment to profitable growth, with a goal of maintaining a strong and stable margin. As a company we remain steadfast in delivering consistent total shareholder returns and are poised to weather the uncertain rate and economic environments.
This quarter we announced an agreement to acquire Guaranty Bancorp, Inc., the parent company of Woodsville Guaranty Savings Bank (“Woodsville”). Woodsville operates in markets similar to ours and is adjacent to our Northwestern New Hampshire and Vermont locations. Like us, they have deep community relationships with a loyal customer base and efficient deposits which will help fund future growth. This acquisition will continue to strengthen our presence in northern New England, complementing our existing branch network.”
Mr. Simard concluded, “I am proud of the culture we have built at Bar Harbor Bank & Trust. Our values foster a strong foundation built on opportunity and authenticity. We look forward to welcoming our new colleagues who share a similar culture.”
DIVIDEND DECLARED
The Board of Directors of the Company voted to declare an increase in the cash dividend to $0.32 per share from $0.30 per share to shareholders of record at the close of business on May 15, 2025 payable on June 13, 2025. The dividend annualized yield increases from 3.92% at the end of the fourth quarter 2024 to 4.34% at the end of the first quarter 2025 based on the $29.50 closing share price of the Company’s common stock on March 31, 2025, the last trading day of the first quarter 2025.
FINANCIAL CONDITION (Quarter results for March 31, 2025 compared to December 31, 2024)
Total assets remained stable at $4.1 billion at the end of the first quarter 2025 and the end of the fourth quarter 2024 primarily due to stable deposits offset by a shift in asset mix from loan and investments to cash driven by current quarter pay downs.
Total cash and cash equivalents were $88.1 million at the end of the first quarter 2025, compared to $72.2 million at the end of the fourth quarter 2024. Interest-earning deposits held with other banks increased to $54.3 million at the end of the first quarter 2025, compared to $37.9 million at the end of the fourth quarter and yielded 4.55% and 4.92%, respectively. The change in cash balances was driven by pay downs in loans and investments.
Total loans remained at $3.1 billion with a slight decrease of 3% on an annualized basis driven by seasonality and the interest rate environment. Commercial loans increased $2.9 million comprised of a $20.9 million increase in commercial real estate offset by a $17.9 million decrease in commercial and industrial. Residential real estate loans decreased $19.0 million.
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Federal Home Loan Bank (“FHLB”) stock decreased to $10.7 million at the end of the first quarter 2025 compared to $12.2 million at the end of the fourth quarter 2024 driven by $50 million in pay downs of borrowings.
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| Securities available for sale was $514.0 million compared to $521.0 million in the fourth quarter 2024 driven by pay downs of $28.3 million, net amortization of $283 thousand, and matured securities of $1.0 million, partially offset by $19.0 million in purchases. The average yield of the total securities portfolio for the first quarter 2025 was 3.80% compared to 3.69% for the previous quarter primarily due to the change in the profile of the yield curve and a shift from commercial lending obligation investments to agencies. Fair value adjustments were $57.2 million at the end of the first quarter 2025 compared to $62.3 million at the end of the fourth quarter 2024. As of the end of the first quarter 2025 and fourth quarter 2024, respectively, our securities portfolio maintained an average life of eight and nine years with an effective duration of five years for both quarters and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise. |
The allowance for credit losses on available for sale securities increased to $1.2 million at March 31, 2025, driven by one remaining corporate security with a book value of $8.0 million and unrealized losses of $1.8 million.
The allowance for credit losses on loans decreased $130 thousand to $28.6 million at the end of the first quarter 2025 compared to $28.7 million at the end of the fourth quarter 2024. The allowance for credit losses to total loans coverage ratio of 0.92% compared to 0.91% in the fourth quarter 2024. Strong asset quality metrics and general macroeconomic trends in the loan portfolio drive ACL levels. There were minor shifts in balances as commercial real estate increased and commercial and industrial and residential real estate decreased, but the main driver was a decrease in residential loans. Charge-offs and individually analyzed reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values.
Total deposits remained flat at $3.3 billion at the first quarter of 2025 and the fourth quarter 2024 respectively. We witnessed a shift in deposit mix driven by the interest rate environment and expected seasonal outflows in the first quarter 2025 as non-interest bearing demand deposits decreased $28.2 million to $547 million offset by an increase of $19.8 million in interest-bearing demand deposits. Time deposits increased 16% on an annualized basis to $863 million driven by the volatile economic rate environment as investors continue to seek a safe place with a competitive rate to house their money.
Senior borrowings decreased $50.0 million to $200.0 million driven by pay downs in investments and loans. FHLB borrowings decreased $48.9 million to $194.1 million at the end of the first quarter 2025 compared to $243.0 million at the end of the fourth quarter 2024.
The Company's book value per share was $30.51 as of the end of the first quarter 2025 compared to $30.00 at the end of the fourth quarter 2024. Tangible book value per share (non-GAAP) was $22.47 at the end of the first quarter 2025, compared to $21.93 at the end of the fourth quarter 2024.
RESULTS OF OPERATIONS (Quarter results for March 31, 2025 compared to March 31, 2024)
The net interest margin remained stable at 3.17% in the first quarter 2025 compared to 3.14% in same respective quarter 2024. As loan balances grew $112.6 million year over year, the yield on loans grew 11 basis points to 5.42% in the first quarter 2025, up from 5.31% in the same quarter 2024. Costs of interest-bearing deposits grew 5 basis points to 2.31% from 2.26% in the first quarter 2024 driven by the continued competitive pricing within the interest rate environment.
Total interest and dividend income increased by 3.7% to $47.5 million in the first quarter 2025 compared to $45.8 million in the prior year primarily driven by the repricing of commercial adjustable-rate loans and a $146 million higher loan balances within the commercial portfolio. Yields on earning assets grew to 5.16% compared to 5.10% in the first quarter 2024. The yield on commercial real estate loans grew to 5.58% in the first quarter 2025 from 5.47% in the first quarter 2024. Total loan yield growth was partially offset by a decline in the residential real estate yield from 4.22% to 4.09% for the first quarter 2025, and the commercial and industrial yield decline from 6.57% in the first quarter of 2024 to 6.34% in the first quarter 2025.
Total interest expense increased by 4.3% to $18.5 million in the first quarter 2025 compared to $17.8 million in the first quarter 2024 driven by an increase in cost of funds on deposits compounded with a $169.7 million increase in deposits. The growth in deposits was relatively even in mix with $84.2 million growth in non-maturity deposits and $85.6 million growth in time deposits. Interest-bearing demand accounts and savings accounts increased $41.2 million in 2025 compared to the same quarter 2024. Money Market accounts increased $40.0 million in the first quarter 2025 compared to the first quarter 2024. Borrowing costs decreased to $3.0 million in the first quarter 2025 compared to $3.2 million from the first quarter 2024, driven by a $33.1 million in pay down offset by an increase in costs to 4.61% in the first quarter 2025 compared to 4.35% in the first quarter 2024.
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The provision for credit losses on loans was a recapture of $57 thousand in first quarter 2025 compared to a provision of $289 thousand in the first quarter 2024 as credit quality continues to remain strong.
Non-interest income was $8.9 million in the first quarter 2025 compared to $8.4 million in the same quarter 2024. Wealth management income grew 6.7% to $3.9 million compared to $3.7 million in the first quarter 2024. Non-brokerage assets under management grew 6.0% or $300 million to $2.8 billion from $2.5 billion in the first quarter 2025 compared to the previous year driven by higher security valuations. Mortgage banking income increased $199 thousand in the first quarter 2025 compared to the first quarter 2024 driven by higher gains on sale of loans. Customer derivative income increased $212 thousand in the first quarter 2025 driven by an increase in dollars and volume on customer swaps due to the interest rate environment. Increases were offset by a $186 thousand or 5% decrease in customer service fees driven by lower non-sufficient funds fees and interchange income.
Non-interest expenses increased $1.2 million to $24.7 million in the first quarter 2025 compared to $23.5 million in the first quarter 2024 driven by a 4% increase or $485 thousand increase in salaries and benefits driven by cost of living increases and losses on sales of premises and equipment of $90 thousand in the current quarter driven by outdated ATMs. Acquisition, conversion expenses increased $219 thousand driven by merger agreement entered into in the first quarter of 2025 with Woodsville. Outside services increased $144 thousand driven by an increase in recruiting fees in the first quarter 2025 compared to the first quarter 2024. Professional services increased $192 thousand driven by consulting fees for technology infrastructure enhancements other projects.
Income tax expense was $2.5 million for the first quarter 2025 compared to $2.6 million for the fourth quarter of 2024, respectively. Our effective tax rate for the first quarter 2025 was 20% and 19% for the fourth quarter of 2024.
BACKGROUND
Bar 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 STATEMENTS
All 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
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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.
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NON-GAAP FINANCIAL MEASURES
This 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.
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CONTACTS
Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314
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| TABLE | |
| INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
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| A | Selected Financial Highlights |
| B | Balance Sheets |
| C | Loan and Deposit Analysis |
| D | Statements of Income |
| E | Statements of Income (Five Quarter Trend) |
| F | Average Yields and Costs |
| G | Average Balances |
| H | Asset Quality Analysis |
| I-J | Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data |
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BAR HARBOR BANKSHARES
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED
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| | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Mar 31, | **** | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| | | 2025 | | | 2024 | | 2024 | | 2024 | | 2024 | |||||
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Net earnings, diluted | $ | 0.66 | $ | 0.72 | $ | 0.80 | $ | 0.67 | $ | 0.66 | | |||||
| Core earnings, diluted ^(1)^ | | 0.68 | | 0.72 | | 0.80 | | 0.66 | | 0.66 | | |||||
| Total book value | | 30.51 | | 30.00 | | 30.12 | | 28.81 | | 28.64 | | |||||
| Tangible book value ^(1)^ | | 22.47 | | 21.93 | | 22.02 | | 20.68 | | 20.48 | | |||||
| Market price at period end | | 29.50 | | 30.58 | | 30.84 | | 26.88 | | 26.48 | | |||||
| Dividends | | 0.30 | | 0.30 | | 0.30 | | 0.30 | | 0.28 | | |||||
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| PERFORMANCE RATIOS ^(2)^ | | | | | | | | | | | | | | | | |
| Return on assets | | 1.02 | % | | 1.09 | % | | 1.20 | % | | 1.04 | % | | 1.03 | % | |
| Core return on assets ^(1)^ | | 1.04 | | 1.09 | | 1.20 | | 1.02 | | 1.03 | | |||||
| Pre-tax, pre-provision return on assets^(1)^ | | | 1.32 | | | 1.44 | | | 1.37 | | | 1.36 | | | 1.32 | |
| Core pre-tax, pre-provision return on assets^(1)^ | | | 1.35 | | | 1.45 | | | 1.37 | | | 1.33 | | | 1.32 | |
| Return on equity | | 8.88 | | 9.52 | | 10.68 | | 9.46 | | 9.32 | | |||||
| Core return on equity ^(1)^ | | 9.09 | | 9.57 | | 10.68 | | 9.25 | | 9.32 | | |||||
| Return on tangible equity | | | 12.27 | | | 13.23 | | | 14.90 | | | 13.44 | | | 13.26 | |
| Core return on tangible equity ^(1)^ | | 12.57 | | 13.29 | | 14.90 | | 13.15 | | 13.27 | | |||||
| Net interest margin, fully taxable equivalent ^(1) (3)^ | | 3.17 | | 3.17 | | 3.15 | | 3.09 | | 3.14 | | |||||
| Efficiency ratio ^(1)^ | | 62.00 | | 59.84 | | 62.09 | | 62.78 | | 62.71 | | |||||
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| FINANCIAL DATA (In millions) | | | | | | | | | | | | | | | | |
| Total assets | $ | 4,063 | $ | 4,083 | $ | 4,030 | $ | 4,034 | $ | 3,959 | | |||||
| Total earning assets ^(4)^ | | 3,761 | | 3,782 | | 3,720 | | 3,726 | | 3,663 | | |||||
| Total investments | | 514 | | 521 | | 536 | | 513 | | 528 | | |||||
| Total loans | | 3,124 | | 3,147 | | 3,082 | | 3,064 | | 3,012 | | |||||
| Allowance for credit losses on loans and securities available for sale | | 30 | | 29 | | 29 | | 29 | | 28 | | |||||
| Total goodwill and intangible assets | | 123 | | 123 | | 124 | | 124 | | 124 | | |||||
| Total deposits | | 3,297 | | 3,268 | | 3,261 | | 3,140 | | 3,127 | | |||||
| Total shareholders' equity | | 466 | | 458 | | 460 | | 439 | | 436 | | |||||
| Net income | | 10 | | 11 | | 12 | | 10 | | 10 | | |||||
| Core earnings^(1)^ | | 10 | | 11 | | 12 | | 10 | | 10 | | |||||
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| ASSET QUALITY AND CONDITION RATIOS | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries)^(5)^/average loans | | 0.01 | % | | 0.02 | % | | 0.01 | % | | 0.01 | % | | 0.01 | % | |
| Allowance for credit losses on loans/total loans | | 0.92 | | 0.91 | | 0.94 | | 0.94 | | 0.94 | | |||||
| Loans/deposits | | 95 | | 96 | | 95 | | 98 | | 96 | | |||||
| Shareholders' equity to total assets | | 11.50 | | 11.23 | | 11.41 | | 10.88 | | 11.01 | | |||||
| Tangible shareholders' equity to tangible assets | | 8.73 | | 8.46 | | 8.61 | | 8.06 | | 8.13 | |
| (1) | Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. |
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| (2) | All performance ratios are based on average balance sheet amounts, where applicable. |
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| (3) | Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans. |
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| (4) | Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost. |
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| (5) | Current quarter annualized. |
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A
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
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| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| (in thousands) | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | |||||
| Assets | | | | | | ||||||||||
| Cash and due from banks | | $ | 33,802 | | $ | 34,266 | | $ | 39,877 | | $ | 39,673 | | $ | 30,770 |
| Interest-earning deposits with other banks | | 54,329 | | 37,896 | | 41,343 | | 62,163 | | 45,449 | |||||
| Total cash and cash equivalents | | 88,131 | | 72,162 | | 81,220 | | 101,836 | | 76,219 | |||||
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| Securities available for sale | | 513,961 | | 521,018 | | 535,892 | | 512,928 | | 527,603 | |||||
| Less: Allowance for credit losses on securities available for sale | | | (1,204) | | | (568) | | | — | | | — | | | — |
| Net securities | | 512,757 | | 520,450 | | 535,892 | | 512,928 | | 527,603 | |||||
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| Federal Home Loan Bank stock | | 10,695 | | 12,237 | | 7,600 | | 14,755 | | 9,960 | |||||
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| Loans held for sale | | | 1,515 | | | 1,235 | | | 1,272 | | | 3,897 | | | 3,137 |
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| Total loans | | 3,124,240 | | 3,147,096 | | 3,081,735 | | 3,064,181 | | 3,011,672 | |||||
| Less: Allowance for credit losses on loans | | (28,614) | | (28,744) | | (29,023) | | (28,855) | | (28,355) | |||||
| Net loans | | 3,095,626 | | 3,118,352 | | 3,052,712 | | 3,035,326 | | 2,983,317 | |||||
| | | | | | | | | | | | | | | | |
| Premises and equipment, net | | 51,659 | | 51,237 | | 51,644 | | 51,628 | | 47,849 | |||||
| Other real estate owned | | — | | — | | — | | — | | — | |||||
| Goodwill | | 119,477 | | 119,477 | | 119,477 | | 119,477 | | 119,477 | |||||
| Other intangible assets | | 3,705 | | 3,938 | | 4,171 | | 4,404 | | 4,637 | |||||
| Cash surrender value of bank-owned life insurance | | 82,471 | | 81,858 | | 81,824 | | 81,221 | | 80,642 | |||||
| Deferred tax asset, net | | 23,298 | | 23,330 | | 20,923 | | 24,750 | | 23,849 | |||||
| Other assets | | 73,892 | | 79,051 | | 73,192 | | 83,978 | | 82,285 | |||||
| Total assets | | $ | 4,063,226 | | $ | 4,083,327 | | $ | 4,029,927 | | $ | 4,034,200 | | $ | 3,958,975 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Non-interest bearing demand | | $ | 547,401 | | $ | 575,649 | | $ | 604,963 | | $ | 553,067 | | $ | 544,495 |
| Interest-bearing demand | | 930,031 | | 910,191 | | 913,910 | | 882,068 | | 888,591 | |||||
| Savings | | 551,280 | | 545,816 | | 544,235 | | 544,980 | | 551,493 | |||||
| Money market | | 405,326 | | 405,758 | | 380,624 | | 359,208 | | 365,289 | |||||
| Time | | 862,773 | | 830,274 | | 817,354 | | 801,143 | | 777,208 | |||||
| Total deposits | | 3,296,811 | | 3,267,688 | | 3,261,086 | | 3,140,466 | | 3,127,076 | |||||
| | | | | | | | | | | | | | | | |
| Senior borrowings | | 199,982 | | 249,981 | | 186,207 | | 329,349 | | 269,437 | |||||
| Subordinated borrowings | | 40,620 | | 40,620 | | 60,580 | | 60,541 | | 60,501 | |||||
| Total borrowings | | 240,602 | | 290,601 | | 246,787 | | 389,890 | | 329,938 | |||||
| | | | | | | | | | | | | | | | |
| Other liabilities | | 58,502 | | 66,610 | | 62,138 | | 64,937 | | 66,247 | |||||
| Total liabilities | | 3,595,915 | | 3,624,899 | | 3,570,011 | | 3,595,293 | | 3,523,261 | |||||
| | | | | | | | | | | | | | | | |
| Total shareholders’ equity | | 467,311 | | 458,428 | | 459,916 | | 438,907 | | 435,714 | |||||
| Total liabilities and shareholders’ equity | | $ | 4,063,226 | | $ | 4,083,327 | | $ | 4,029,927 | | $ | 4,034,200 | | $ | 3,958,975 |
| | | | | | | | | | | | | | | | |
| Net shares outstanding | | 15,317 | | 15,280 | | 15,268 | | 15,232 | | 15,212 |
B
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Annualized | ||||||
| (in thousands) | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | | Growth % | ||||||
| Commercial real estate | | $ | 1,762,132 | | $ | 1,741,223 | | $ | 1,677,310 | | $ | 1,634,658 | | $ | 1,574,802 | 5 | % | |
| Commercial and industrial | | 370,683 | | 388,599 | | 382,554 | | 421,297 | | 412,567 | (18) | |||||||
| Total commercial loans | | 2,132,815 | | 2,129,822 | | 2,059,864 | | 2,055,955 | | 1,987,369 | 1 | |||||||
| | | | | | | | | | | | | | | | | | | |
| Residential real estate | | 807,514 | | 826,492 | | 836,566 | | 854,718 | | 873,213 | (9) | |||||||
| Consumer | | 105,404 | | 103,803 | | 103,415 | | 99,776 | | 95,838 | 6 | |||||||
| Tax exempt and other | | 78,507 | | 86,979 | | 81,890 | | 53,732 | | 55,252 | (39) | |||||||
| Total loans | | $ | 3,124,240 | | $ | 3,147,096 | | $ | 3,081,735 | | $ | 3,064,181 | | $ | 3,011,672 | (3) | % |
DEPOSIT ANALYSIS
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | Annualized | ||||||
| (in thousands) | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | | Growth % | ||||||
| Non-interest bearing demand | | $ | 547,401 | | $ | 575,649 | | $ | 604,963 | | $ | 553,067 | | $ | 544,495 | (20) | % | |
| Interest-bearing demand | | 930,031 | | 910,191 | | 913,910 | | 882,068 | | 888,591 | 9 | |||||||
| Savings | | 551,280 | | 545,816 | | 544,235 | | 544,980 | | 551,493 | 4 | |||||||
| Money market | | 405,326 | | 405,758 | | 380,624 | | 359,208 | | 365,289 | — | |||||||
| Total non-maturity deposits | | 2,434,038 | | 2,437,414 | | 2,443,732 | | 2,339,323 | | 2,349,868 | (1) | |||||||
| Time | | 862,773 | | 830,274 | | 817,354 | | 801,143 | | 777,208 | 16 | |||||||
| Total deposits | | $ | 3,296,811 | | $ | 3,267,688 | | $ | 3,261,086 | | $ | 3,140,466 | | $ | 3,127,076 | 4 | % |
C
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Three Months Ended | ||||
| | | March 31, | ||||
| (in thousands, except per share data) | **** | 2025 | **** | 2024 | ||
| Interest and dividend income | | | ||||
| Loans | | $ | 41,804 | | $ | 39,470 |
| Securities available for sale | | 5,597 | | 6,065 | ||
| Federal Home Loan Bank stock | | | 137 | | 288 | |
| Total interest and dividend income | | 47,538 | | 45,823 | ||
| Interest expense | | | ||||
| Deposits | | 15,512 | | 14,532 | ||
| Borrowings | | 3,019 | | 3,236 | ||
| Total interest expense | | 18,531 | | 17,768 | ||
| Net interest income | | 29,007 | | 28,055 | ||
| Provision for credit losses on securities available for sale | | | 636 | | | — |
| (Benefit) provision for credit losses on loans | | (57) | | 289 | ||
| Net interest income after provision for credit losses | | 28,428 | | 27,766 | ||
| Non-interest income | | | ||||
| Trust and investment management fee income | | 3,916 | | 3,670 | ||
| Customer service fees | | 3,525 | | 3,710 | ||
| Gain on sales of securities, net | | — | | — | ||
| Mortgage banking income | | | 456 | | | 257 |
| Bank-owned life insurance income | | 614 | | 561 | ||
| Customer derivative income | | 212 | | — | ||
| Other income | | 195 | | 188 | ||
| Total non-interest income | | 8,918 | | 8,386 | ||
| Non-interest expense | | | ||||
| Salaries and employee benefits | | 13,733 | | 13,248 | ||
| Occupancy and equipment | | 3,325 | | 3,432 | ||
| Depreciation | | | 1,049 | | | 1,041 |
| Loss (gain) on sales of premises and equipment, net | | 90 | | (15) | ||
| Outside services | | 482 | | 338 | ||
| Professional services | | 592 | | 400 | ||
| Communication | | 166 | | 189 | ||
| Marketing | | 518 | | 567 | ||
| Amortization of intangible assets | | 233 | | 233 | ||
| FDIC assessment | | | 456 | | | 452 |
| Acquisition, conversion and other expenses | | 239 | | 20 | ||
| Provision for unfunded commitments | | | (74) | | (185) | |
| Other expenses | | 3,842 | | 3,768 | ||
| Total non-interest expense | | 24,651 | | 23,488 | ||
| Income before income taxes | | 12,695 | | 12,664 | ||
| Income tax expense | | 2,484 | | 2,569 | ||
| Net income | | $ | 10,211 | | $ | 10,095 |
| | | | | | | |
| Earnings per share: | | | ||||
| Basic | | $ | 0.67 | | $ | 0.66 |
| Diluted | | 0.66 | | 0.66 | ||
| | | | | | | |
| Weighted average shares outstanding: | | | ||||
| Basic | | 15,304 | | 15,198 | ||
| Diluted | | 15,393 | | 15,270 |
D
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | |||||
| (in thousands, except per share data) | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | |||||
| Interest and dividend income | | | | | | ||||||||||
| Loans | | $ | 41,804 | | $ | 41,700 | | $ | 42,042 | | $ | 40,634 | | $ | 39,470 |
| Securities and other | | 5,597 | | | 5,570 | | | 6,280 | | | 6,005 | | | 6,065 | |
| Federal Home Loan Bank stock | | 137 | | | 213 | | | 258 | | | 199 | | | 288 | |
| Total interest and dividend income | | 47,538 | | | 47,483 | | | 48,580 | | | 46,838 | | | 45,823 | |
| Interest expense | | | | | | | | | | ||||||
| Deposits | | 15,512 | | | 16,210 | | | 16,174 | | | 14,780 | | | 14,532 | |
| Borrowings | | 3,019 | | | 2,206 | | | 3,448 | | | 4,299 | | | 3,236 | |
| Total interest expense | | 18,531 | | | 18,416 | | | 19,622 | | | 19,079 | | | 17,768 | |
| Net interest income | | 29,007 | | | 29,067 | | | 28,958 | | | 27,759 | | | 28,055 | |
| Provision for credit losses on securities available for sale | | | 636 | | | 1,171 | | | — | | | — | | | — |
| Provision for credit losses on loans | | (57) | | | (147) | | | 228 | | | 585 | | | 289 | |
| Net interest income after provision for credit losses | | 28,428 | | | 28,043 | | | 28,730 | | | 27,174 | | | 27,766 | |
| Non-interest income | | | | | | | | | | ||||||
| Trust and investment management fee income | | 3,916 | | | 3,709 | | | 4,129 | | | 4,193 | | | 3,670 | |
| Customer service fees | | 3,525 | | | 3,604 | | | 3,788 | | | 3,737 | | | 3,710 | |
| Gain on sales of securities, net | | — | | | — | | | — | | | 50 | | | — | |
| Mortgage banking income | | | 456 | | | 597 | | | 681 | | | 558 | | | 257 |
| Bank-owned life insurance income | | 614 | | | 590 | | | 570 | | | 583 | | | 561 | |
| Customer derivative income | | 212 | | | 495 | | | 265 | | | 168 | | | — | |
| Other income | | 195 | | | 397 | | | 220 | | | 168 | | | 188 | |
| Total non-interest income | | 8,918 | | | 9,392 | | | 9,653 | | | 9,457 | | | 8,386 | |
| Non-interest expense | | | | | | | | | | ||||||
| Salaries and employee benefits | | 13,733 | | | 13,358 | | | 14,383 | | | 13,860 | | | 13,248 | |
| Occupancy and equipment | | 3,325 | | | 3,634 | | | 3,405 | | | 3,317 | | | 3,432 | |
| Depreciation | | | 1,049 | | | 1,042 | | | 1,048 | | | 1,065 | | | 1,041 |
| Loss (gain) on sales of premises and equipment, net | | 90 | | | 71 | | | — | | | (248) | | | (15) | |
| Outside services | | 482 | | | 372 | | | 386 | | | 462 | | | 338 | |
| Professional services | | 592 | | | 343 | | | 441 | | | 238 | | | 400 | |
| Communication | | 166 | | | 189 | | | 189 | | | 192 | | | 189 | |
| Marketing | | 518 | | | 492 | | | 434 | | | 521 | | | 567 | |
| Amortization of intangible assets | | 233 | | | 233 | | | 233 | | | 233 | | | 233 | |
| FDIC assessment | | | 456 | | | 457 | | | 451 | | | 448 | | | 452 |
| Acquisition, conversion and other expenses | | 239 | | | — | | | — | | | — | | | 20 | |
| Provision for unfunded commitments | | | (74) | | | (625) | | | 35 | | | — | | | (185) |
| Other expenses | | 3,842 | | | 4,319 | | | 3,767 | | | 3,754 | | | 3,768 | |
| Total non-interest expense | | 24,651 | | 23,885 | | 24,772 | | 23,842 | | 23,488 | |||||
| Income before income taxes | | 12,695 | | 13,550 | | 13,611 | | 12,789 | | 12,664 | |||||
| Income tax expense | | 2,484 | | | 2,551 | | | 1,418 | | | 2,532 | | | 2,569 | |
| Net income | | $ | 10,211 | | $ | 10,999 | | $ | 12,193 | | $ | 10,257 | | $ | 10,095 |
| | | | | | | | | | | | | | | | |
| Earnings per share: | | | | | | ||||||||||
| Basic | | $ | 0.67 | | $ | 0.72 | | $ | 0.80 | | $ | 0.67 | | $ | 0.66 |
| Diluted | | 0.66 | | 0.72 | | 0.80 | | 0.67 | | 0.66 | |||||
| | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | ||||||||||
| Basic | | 15,304 | | | 15,261 | | | 15,261 | | | 15,227 | | | 15,198 | |
| Diluted | | 15,393 | | | 15,346 | | | 15,326 | | | 15,275 | | | 15,270 |
E
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | **** | ||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** |
| | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | **** |
| Earning assets | | | | | | | | | | | |
| Interest-earning deposits with other banks^^ | | 4.55 | % | 4.92 | % | 5.54 | % | 5.65 | % | 5.88 | % |
| Securities available for sale | | 3.80 | | 3.69 | | 3.86 | | 3.95 | | 3.89 | |
| Federal Home Loan Bank stock | | 4.78 | | 12.07 | | 10.10 | | 6.49 | | 12.15 | |
| Loans: | | | | | | | | | | | |
| Commercial real estate | 5.58 | | 5.61 | | 5.67 | | 5.61 | | 5.47 | | |
| Commercial and industrial | 6.57 | 6.62 | 6.98 | 6.76 | 6.68 | | |||||
| Residential real estate | 4.22 | 4.13 | 4.11 | 4.13 | 4.09 | | |||||
| Consumer | 7.03 | 6.89 | 7.23 | 7.26 | 7.22 | | |||||
| Total loans | 5.42 | 5.40 | 5.49 | 5.41 | 5.31 | | |||||
| Total earning assets | 5.16 | % | 5.14 | % | 5.24 | % | 5.18 | % | 5.10 | % | |
| | | | | | | | | | | | |
| Funding liabilities | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Interest-bearing demand | 1.41 | % | 1.42 | % | 1.48 | % | 1.39 | % | 1.34 | % | |
| Savings | 0.71 | 0.72 | 0.70 | 0.65 | 0.63 | | |||||
| Money market | 2.77 | 2.94 | 3.13 | 2.93 | 3.07 | | |||||
| Time | 4.11 | 4.30 | 4.39 | 4.33 | 4.18 | | |||||
| Total interest-bearing deposits | 2.31 | 2.41 | 2.45 | 2.35 | 2.26 | | |||||
| Borrowings | 4.61 | 4.20 | 4.38 | 4.57 | 4.35 | | |||||
| Total interest-bearing liabilities | 2.52 | % | 2.54 | % | 2.66 | % | 2.64 | % | 2.48 | % | |
| | | | | | | | | | | | |
| Net interest spread | 2.64 | 2.60 | 2.58 | 2.54 | 2.62 | | |||||
| Net interest margin, fully taxable equivalent^(1)^ | 3.17 | 3.17 | 3.15 | 3.09 | 3.14 | |
| (1) | Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. |
|---|
F
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Quarters Ended | |||||||||||||
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, | |||||
| (in thousands) | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | |||||
| Assets | | | | | | ||||||||||
| Interest-earning deposits with other banks^(1)^ | | $ | 27,999 | | $ | 24,000 | | $ | 54,897 | | $ | 27,407 | | $ | 36,608 |
| Securities available for sale ^(2)^ | | | 587,878 | | | 591,455 | | | 591,331 | | | 594,455 | | | 595,124 |
| Federal Home Loan Bank stock | | | 11,623 | | | 7,023 | | | 10,158 | | | 12,324 | | | 9,534 |
| Loans: | | | | | | | | | | | | | | | |
| Commercial real estate | | | 1,759,321 | | | 1,699,869 | | | 1,645,933 | | | 1,600,253 | | | 1,558,506 |
| Commercial and industrial | | 469,331 | | 458,157 | | 473,049 | | 468,052 | | 464,762 | |||||
| Residential real estate | | 820,837 | | 836,375 | | 851,426 | | 865,412 | | 884,767 | |||||
| Consumer | | 104,413 | | 103,681 | | 101,230 | | 97,371 | | 96,163 | |||||
| Total loans ^(3)^ | | 3,153,902 | | 3,098,082 | | 3,071,638 | | 3,031,088 | | 3,004,198 | |||||
| Total earning assets | | 3,781,402 | | 3,720,560 | | 3,728,024 | | 3,665,274 | | 3,645,464 | |||||
| Cash and due from banks | | 29,972 | | 32,771 | | 34,036 | | 30,809 | | 29,900 | |||||
| Allowance for credit losses | | (29,143) | | (29,021) | | (28,893) | | (28,567) | | (28,122) | |||||
| Goodwill and other intangible assets | | 123,295 | | 123,527 | | 123,761 | | 123,994 | | 124,225 | |||||
| Other assets | | 171,477 | | 171,351 | | 170,113 | | 168,239 | | 166,538 | |||||
| Total assets | | $ | 4,077,003 | | $ | 4,019,188 | | $ | 4,027,041 | | $ | 3,959,749 | | $ | 3,938,005 |
| | | | | | | | | | | | | | | | |
| Liabilities and shareholders' equity | | | | | | ||||||||||
| Deposits: | | | | | | | | | | | | | | | |
| Interest-bearing demand | | $ | 916,129 | | $ | 898,597 | | $ | 888,325 | | $ | 858,657 | | $ | 899,349 |
| Savings | | 547,672 | | 543,430 | | 547,482 | | 542,950 | | 552,231 | |||||
| Money market | | 401,268 | | 394,536 | | 378,855 | | 355,731 | | 390,720 | |||||
| Time | | 853,105 | | 842,379 | | 807,180 | | 775,932 | | 738,683 | |||||
| Total interest-bearing deposits | | 2,718,174 | | 2,678,942 | | 2,621,842 | | 2,533,270 | | 2,580,983 | |||||
| Borrowings | | 265,780 | | 208,990 | | 312,891 | | 378,121 | | 298,918 | |||||
| Total interest-bearing liabilities | | 2,983,954 | | 2,887,932 | | 2,934,733 | | 2,911,391 | | 2,879,901 | |||||
| Non-interest bearing demand deposits | | 560,310 | | 604,017 | | 577,428 | | 546,448 | | 554,816 | |||||
| Other liabilities | | 66,589 | | 67,533 | | 60,731 | | 65,712 | | 67,327 | |||||
| Total liabilities | | 3,610,853 | | 3,559,482 | | 3,572,892 | | 3,523,551 | | 3,502,044 | |||||
| Total shareholders' equity | | 466,150 | | 459,706 | | 454,149 | | 436,198 | | 435,961 | |||||
| Total liabilities and shareholders' equity | | $ | 4,077,003 | | $ | 4,019,188 | | $ | 4,027,041 | | $ | 3,959,749 | | $ | 3,938,005 |
| (1) | Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter. |
|---|---|
| (2) | Average balances for securities available-for-sale are based on amortized cost. |
| --- | --- |
| (3) | Total average loans include non-accruing loans and loans held for sale. |
| --- | --- |
G
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | At or for the Quarters Ended | | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||
| (in thousands) | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | **** | |||||
| NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | |
| Non-accruing loans: | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | 1,091 | $ | 1,321 | $ | 1,451 | $ | 551 | $ | 578 | | |||||
| Commercial and industrial | | 1,354 | | 1,098 | | 1,218 | | 1,301 | | 1,152 | | |||||
| Residential real estate | | 4,557 | | 3,290 | | 3,453 | | 3,511 | | 4,169 | | |||||
| Consumer | | 1,084 | | 1,285 | | 978 | | 914 | | 971 | | |||||
| Total non-accruing loans | | 8,086 | | 6,994 | | 7,100 | | 6,277 | | 6,870 | | |||||
| Non-performing securities available for sale^(1)^ | | | 4,960 | | | 5,760 | | | — | | | — | | | — | |
| Other real estate owned | | — | | — | | — | | — | | — | | |||||
| Total non-performing assets | $ | 13,046 | $ | 12,754 | $ | 7,100 | $ | 6,277 | $ | 6,870 | | |||||
| | | | | | | | | | | | | | | | | |
| Total non-accruing loans/total loans | | 0.26 | % | | 0.22 | % | | 0.23 | % | | 0.20 | % | | 0.23 | % | |
| Total non-performing assets/total assets | | 0.32 | | 0.31 | | 0.18 | | 0.16 | | 0.17 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 28,744 | $ | 29,023 | $ | 28,855 | $ | 28,355 | $ | 28,142 | | |||||
| Charged-off loans | | (84) | | (150) | | (98) | | (106) | | (113) | | |||||
| Recoveries on charged-off loans | | 11 | | 18 | | 38 | | 21 | | 37 | | |||||
| Net loans (charged-off) recovered | | (73) | | (132) | | (60) | | (85) | | (76) | | |||||
| Provision for credit losses on loans | | (57) | | (147) | | 228 | | 585 | | 289 | | |||||
| Balance at end of period | $ | 28,614 | $ | 28,744 | $ | 29,023 | $ | 28,855 | $ | 28,355 | | |||||
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses/total loans | | 0.92 | % | | 0.91 | % | | 0.94 | % | | 0.94 | % | | 0.94 | % | |
| Allowance for credit losses/non-accruing loans | | 354 | | 411 | | 409 | | 460 | | 413 | | |||||
| | | | | | | | | | | | | | | | | |
| NET LOAN (CHARGE-OFFS) RECOVERIES | | | | | | | | | | | | | | | | |
| Commercial real estate | $ | — | $ | — | $ | — | $ | — | $ | (3) | | |||||
| Commercial and industrial | | (37) | | (84) | | (8) | | (2) | | (64) | | |||||
| Residential real estate | | 4 | | 3 | | 5 | | 3 | | 5 | | |||||
| Consumer | | (40) | | (51) | | (57) | | (86) | | (14) | | |||||
| Total, net | $ | (73) | $ | (132) | $ | (60) | $ | (85) | $ | (76) | | |||||
| | | | | | | | | | | | | | | | | |
| Net charge-offs (recoveries) (QTD annualized)/average loans | | 0.01 | % | | 0.02 | % | | 0.01 | % | | 0.01 | % | | 0.01 | % | |
| Net charge-offs (recoveries) (YTD annualized)/average loans | | — | | 0.01 | | 0.01 | | 0.01 | | 0.01 | | |||||
| | | | | | | | | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON SECURITIES AVAILABLE FOR SALE | | | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 568 | $ | — | $ | — | $ | — | $ | — | | |||||
| Charged-off interest receivable on securities available for sale | | — | | (603) | | — | | — | | — | | |||||
| Provision for credit losses on securities available for sale | | 636 | | 1,171 | | — | | — | | — | | |||||
| Balance at end of period | $ | 1,204 | $ | 568 | $ | — | $ | — | $ | — | |
| (1) | Non-performing securities available for sale consists of book value of $8.0 million, unrealized losses of $1.8 million. |
|---|
H
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | |||||||||||||
| | | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | ||||||
| (in thousands) | | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | ||||||
| Net income | | | | $ | 10,211 | | $ | 10,999 | | $ | 12,193 | | $ | 10,257 | | $ | 10,095 |
| Non-core items: | | | | | | | | | | | | | | | | | |
| Gain on sale of securities, net | | | | — | | — | | — | | (50) | | — | |||||
| Loss (gain) on sale of premises and equipment, net | | | | 90 | | 71 | | — | | (248) | | (15) | |||||
| Acquisition, conversion and other expenses | | | | 239 | | — | | — | | — | | 20 | |||||
| Income tax expense ^(1)^ | | | | (80) | | (17) | | — | | 71 | | (1) | |||||
| Total non-core items | | | | | 249 | | | 54 | | | — | | | (227) | | | 4 |
| Core earnings ^(2)^ | (A) | | $ | 10,460 | | $ | 11,053 | | $ | 12,193 | | $ | 10,030 | | $ | 10,099 | |
| | | | | | | | | | | | | | | | | | |
| Net interest income | (B) | | $ | 29,007 | | $ | 29,067 | | $ | 28,958 | | $ | 27,759 | | $ | 28,055 | |
| Non-interest income | | | | 8,918 | | 9,392 | | 9,653 | | 9,457 | | 8,586 | |||||
| Total revenue | | | | 37,925 | | 38,459 | | 38,611 | | 37,216 | | 36,641 | |||||
| Gain on sale of securities, net | | | | — | | — | | — | | (50) | | — | |||||
| Total core revenue ^(2)^ | (C) | | $ | 37,925 | | $ | 38,459 | | $ | 38,611 | | $ | 37,166 | | $ | 36,641 | |
| | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | 24,651 | | 23,885 | | 24,772 | | 23,842 | | 23,688 | |||||
| Non-core expenses: | | | | | | | | | | | | | | | | | |
| (Loss) gain on sale of premises and equipment, net | | | | (90) | | (71) | | — | | 248 | | 15 | |||||
| Acquisition, conversion and other expenses | | | | (239) | | — | | — | | — | | (20) | |||||
| Total non-core expenses | | | | | (329) | | | (71) | | | — | | | 248 | | | (5) |
| Core non-interest expense ^(2)^ | (D) | | $ | 24,322 | | $ | 23,814 | | $ | 24,772 | | $ | 24,090 | | $ | 23,683 | |
| | | | | | | | | | | | | | | | | | |
| Total revenue | | | | | 37,925 | | | 38,459 | | | 38,611 | | | 37,216 | | | 36,641 |
| Total non-interest expense | | | | | 24,651 | | | 23,885 | | | 24,772 | | | 23,842 | | | 23,688 |
| Pre-tax, pre-provision net revenue^(2)^ | | (S) | | $ | 13,274 | | $ | 14,574 | | $ | 13,839 | | $ | 13,374 | | $ | 12,953 |
| | | | | | | | | | | | | | | | | | |
| Core revenue^(2)^ | | | | | 37,925 | | | 38,459 | | | 38,611 | | | 37,166 | | | 36,641 |
| Core non-interest expense^(2)^ | | | | | 24,322 | | | 23,814 | | | 24,772 | | | 24,090 | | | 23,683 |
| Core pre-tax, pre-provision net revenue^(2)^ | | (U) | | $ | 13,603 | | $ | 14,645 | | $ | 13,839 | | $ | 13,076 | | $ | 12,958 |
| | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | ||||||||||
| Average earning assets | (E) | | $ | 3,781 | | $ | 3,721 | | $ | 3,728 | | $ | 3,665 | | $ | 3,645 | |
| Average assets | (F) | | 4,077 | | 4,019 | | 4,027 | | 3,960 | | 3,938 | ||||||
| Average shareholders' equity | (G) | | 466 | | 460 | | 454 | | 436 | | 436 | ||||||
| Average tangible shareholders' equity ^(2) (3)^ | (H) | | 343 | | 336 | | 330 | | 312 | | 312 | ||||||
| Tangible shareholders' equity, period-end ^(2) (3)^ | (I) | | 343 | | 335 | | 336 | | 315 | | 312 | ||||||
| Tangible assets, period-end ^(2) (3)^ | (J) | | 3,940 | | 3,960 | | 3,906 | | 3,910 | | 3,835 | ||||||
| | | | | | | | | | | | | | | | | | |
I
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | At or for the Quarters Ended | **** | |||||||||||||
| | **** | Mar 31, | **** | Dec 31, | **** | Sep 30, | **** | Jun 30, | **** | Mar 31, | **** | |||||||
| (in thousands) | | | | 2025 | | 2024 | | 2024 | | 2024 | | 2024 | **** | |||||
| Common shares outstanding, period-end | (K) | | 15,317 | | 15,280 | | 15,268 | | 15,232 | | 15,212 | | ||||||
| Average diluted shares outstanding | (L) | | 15,393 | | 15,346 | | 15,326 | | 15,275 | | 15,270 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Core earnings per share, diluted ^(2)^ | (A/L) | | $ | 0.68 | | $ | 0.72 | | $ | 0.80 | | $ | 0.66 | | $ | 0.66 | | |
| Tangible book value per share, period-end ^(2)^ | (I/K) | | 22.47 | | 21.93 | | 22.02 | | 20.68 | | 20.48 | | ||||||
| Tangible shareholders' equity/total tangible assets ^(2)^ | (I/J) | | 8.73 | | 8.46 | | 8.61 | | 8.06 | | 8.13 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Performance ratios ^(4)^ | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | 1.02 | % | | 1.09 | % | | 1.20 | % | | 1.04 | % | | 1.03 | % | |
| Core return on assets ^(2)^ | (A/F) | | 1.04 | | 1.09 | | 1.20 | | 1.02 | | 1.03 | | ||||||
| Pre-tax, pre-provision return on assets^(2)^ | | (S/F) | | | 1.32 | | | 1.44 | | | 1.37 | | | 1.36 | | | 1.32 | |
| Core pre-tax, pre-provision return on assets^(2)^ | | (U/F) | | | 1.35 | | | 1.45 | | | 1.37 | | | 1.33 | | | 1.32 | |
| GAAP return on equity | | | | 8.88 | | 9.52 | | 10.68 | | 9.46 | | 9.32 | | |||||
| Core return on equity ^(2)^ | (A/G) | | 9.09 | | 9.57 | | 10.68 | | 9.25 | | 9.32 | | ||||||
| Return on tangible equity | | | | | 12.27 | | | 13.23 | | | 14.90 | | | 13.44 | | | 13.26 | |
| Core return on tangible equity ^(1) (2)^ | (A+Q)/H | | 12.57 | | 13.29 | | 14.90 | | 13.15 | | 13.27 | | ||||||
| Efficiency ratio ^(2) (5)^ | (D-O-Q)/(C+N) | | 62.00 | | 59.84 | | 62.09 | | 62.78 | | 62.91 | | ||||||
| Net interest margin, fully taxable equivalent ^(2)^ | (B+P)/E | | 3.17 | | 3.17 | | 3.15 | | 3.09 | | 3.14 | | ||||||
| | | | | | | | | | | | | | | | | | | |
| Supplementary data (in thousands) | | | | | | | | | | | | | | | | | | |
| Taxable equivalent adjustment for efficiency ratio | (N) | | $ | 717 | | $ | 718 | | $ | 686 | | $ | 528 | | $ | 523 | | |
| Franchise taxes included in non-interest expense | (O) | | 131 | | 139 | | 138 | | 191 | | 70 | | ||||||
| Tax equivalent adjustment for net interest margin | (P) | | 568 | | 578 | | 550 | | 389 | | 388 | | ||||||
| Intangible amortization | (Q) | | 233 | | 233 | | 233 | | 233 | | 233 | |
| (1) | Assumes a marginal tax rate of 24.26% in the first quarter 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. |
| --- | --- |
J