BAR HARBOR, ME / ACCESS Newswire / October 22, 2026 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") reported third quarter 2026 GAAP net income of $16.1 million, or $0.96 per diluted share, and core earnings (Non-GAAP) of $17.5 million, or $1.04 per diluted share, compared to GAAP net income of $15.2 million, or $0.91 per diluted share, and core earnings (Non-GAAP) of $15.4 million, or $0.92 per diluted share, in the second quarter of 2026.
THIRD QUARTER 2026 HIGHLIGHTS (all comparisons to second quarter 2026, unless otherwise noted)
- Net interest margin of 3.77%, compared to 3.61%
- 1.35% return on assets; 1.47% core return on assets (Non-GAAP)
- 11.69% return on equity; 12.70% core return on equity (Non-GAAP)
- 55.26% efficiency ratio (Non-GAAP), compared to 55.76%
Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, "We are pleased to announce another strong quarter of financial results. Our success reflects our commitment to performance metrics in all our core businesses, centered in exceptional service and targeted calling. Our Retail teams opened more than 1,600 new customer accounts during the quarter, demonstrating this calling culture and the effectiveness of our execution-focused approach to banking. Total deposits grew 9% on an annualized basis contributing to a lower overall cost of funds, reduced reliance on wholesale borrowings and increased profitability. Wealth management continues to be a significant contributor and meaningful part of our organization. This has never been more true as we are adding seasoned recruits to our commercial and industrial lending team who, in addition to building a robust pipeline, possess the trusted status with customers for a natural wealth referral. Our consistent financial performance reflects the disciplined execution of our strategy, the dedication of our employees and our unwavering focus on long-term shareholder value."
DIVIDEND DECLARED
The Board of Directors of the Company voted to declare a cash dividend of $0.34 per share to shareholders of record at the close of business on November 19, 2026, payable on December 18, 2026. The dividend equates to a 3.52% annualized yield based on the $38.69 closing share price of the Company's common stock on September 30, 2026, the last trading day of the third quarter 2026.
FINANCIAL CONDITION (Quarter results for September 30, 2026 compared to June 30, 2026)
Total assets decreased slightly to $4.7 billion at the end of the third quarter 2026. The decrease of less than 1% was primarily due to lower cash balances and a decrease in available-for-sale debt securities.
Total cash and cash equivalents were $74.8 million at the end of the third quarter 2026, compared to $104.4 million at the end of the second quarter 2026. Interest-earning deposits with other banks decreased to $37.8 million at the end of the third quarter 2026, compared to $58.1 million at the end of the second quarter 2026. The decrease in cash and cash equivalents is primarily driven by paydowns of wholesale funds.
Available-for-sale debt securities were $581.3 million compared to $601.8 million at the end of the second quarter 2026. Portfolio unrealized losses were $72.9 million at quarter-end compared to $45.0 million at the end of the second quarter 2026, the increase was driven by the current interest rate environment. During the quarter there were purchases of $31.3 million, paydowns and calls of $22.8 million and net accretion of $420 thousand. The quarter-to-date weighted average yield of the securities portfolio was 4.10% compared to 4.06% at the end of the second quarter 2026. As of the third quarter 2026 and the second quarter 2026, our securities portfolio had an average life of 8.0 years and 7.2 years respectively, with an effective duration of 5.5 years and 5.2 years, respectively. At the end of the third quarter 2026, all securities remain classified as available for sale.
Federal Home Loan Bank stock decreased $5.5 million to $8.0 million at the end of the third quarter 2026 compared to $13.4 million at the end of the second quarter 2026, primarily driven by the decrease in wholesale borrowings.
Total loans were remained steady at $3.6 billion in the third quarter 2026 as well as the second quarter 2026. Commercial real estate loans increased $21.9 million driven by $55.1 million in originations during the quarter, partially offset by $33.7 million in payoffs during the quarter. Commercial and industrial loans decreased $21.6 million and included $36.0 million in payoffs offset in part by $12.3 million of originations during the quarter. Residential real estate loans decreased $9.6 million during the quarter due to $31.0 million in payoffs and $2.9 million in paydowns, partially offset by $18.5 million in originations. Loans held for sale were $10.7 million in the third quarter 2026 compared to $10.2 million in the second quarter 2026 as we originated $36.8 million in loans held for sale and sold $35.5 million in loans during the quarter.
The allowance for credit losses ("ACL") on loans was $31.8 million at the end of the third quarter 2026, compared to $32.2 million at the end of the second quarter 2026. Charge-offs were minimal with a net charge-off to average loans ratio of 0.03% for the third quarter 2026.
Premises and equipment were $61.4 million at the end of the third quarter 2026 compared to $61.2 million at the end of the second quarter 2026 due to renovation projects. Other real estate owned decreased $1.0 million in the third quarter 2026 to $7.1 million due to the further write-down of one commercial property.
Total deposits increased $84.0 million to $3.9 billion at the end of the third quarter 2026. The increase was driven by a $107.2 million increase in interest-bearing demand deposits and a $24.6 million increase in non-interest-bearing demand deposits in the third quarter 2026. Savings deposits increased $7.6 million in the third quarter 2026 and money market deposits increased $7.4 million in the third quarter 2026. Growth in non-maturity deposits included $31.7 million in new customer deposits. Time deposits decreased $62.8 million driven primarily by a $59.0 million reduction in brokered deposits.
Total borrowings decreased $123.7 million in the third quarter 2026 to $157.4 million compared to $281.2 million in the second quarter 2026. The decrease was driven by paydowns of wholesale borrowings from loan payoffs as well as a $20.0 million subordinated debt redemption.
The Company's book value per share was $31.95 at the end of the third quarter 2026 compared to $32.80 at the end of the second quarter 2026. Tangible book value per share (Non-GAAP) was $22.61 at the end of the third quarter 2026, compared to $23.43 at the end of the second quarter 2026.
RESULTS OF OPERATIONS (Quarter results for September 30, 2026 compared to September 30, 2025)
The net interest margin was 3.77% in the third quarter 2026 compared to 3.56% in the same quarter 2025. As loan balances grew year-over-year the yield on loans expanded 4 basis points to 5.64% compared to 5.60% in the same period of 2025. Interest-bearing deposit costs decreased year-over-year to 1.87% compared to 2.12% in the same period of 2025.
Total interest and dividend income increased by 4% or $2.5 million to $58.4 million in the third quarter 2026 compared to $55.9 million in the third quarter 2025. Yields on earning assets grew to 5.39% in the third quarter 2026 compared to 5.36% in the third quarter 2025. The yield on available-for-sale debt securities decreased to 4.10% in the third quarter 2026 compared to 4.14% in the same period of 2025. The loan yield grew to 5.64% in the third quarter 2026 compared to 5.60% in the same period of 2025 driven by residential loan yield expansion to 4.81% for the third quarter 2026 from 4.42% in the third quarter of 2025. Total loan yield growth was partially offset by a decrease in the commercial and industrial yield to 6.11% for the third quarter 2026 from 6.45% in the third quarter 2025 driven by payoffs.
Total interest expense decreased $1.3 million in the third quarter 2026 compared to the third quarter 2025. Deposit costs were down $1.3 million year-over-year as the cost of interest-bearing deposits decreased to 1.87% in the third quarter 2026 from 2.12% in the same period of 2025. Borrowing costs increased $34 thousand, or 1.3% year-over-year.
The provision for credit losses on loans in the third quarter 2026 was a recapture of $167 thousand compared to a $3.7 million provision in the same period of 2025. The recapture was primarily due to the full payoff of a PCD relationship that previously carried significant reserves. Net charge-offs remained low at $303 thousand in the third quarter of 2026 compared to $316 thousand in the third quarter of 2025. The allowance for credit losses to total loans coverage ratio for the third quarter 2026 remains adequately reserved and was 0.88% compared to 0.95% in the third quarter of 2025.
Non-interest income was $10.8 million in the third quarter 2026 compared to $10.6 million in the same quarter 2025. Trust and investment management fee income increased $283 thousand or 7% to $4.2 million in the third quarter 2026 compared to $3.9 million in the third quarter 2025 as assets under management grew 2.4% over the same periods. Customer service fees increased $255 thousand or 6% during the quarter to $4.6 million compared to $4.3 million in the third quarter 2025. Mortgage banking income increased to $766 thousand in the third quarter of 2026 compared to $423 thousand in the third quarter 2025 driven by higher gains due to the interest rate environment. The increases were offset in part by customer derivative income decreasing to $484 thousand from $962 thousand in the third quarter 2025 due to lower customer swap volume.
Non-interest expenses decreased $1.4 million to $31.4 million in the third quarter 2026 compared to $32.7 million in the third quarter 2025. The decrease was due to acquisition expenses in the prior year. Salaries and employee benefit costs increased 3% to $16.4 million in the third quarter 2026 compared to $15.9 million in the third quarter 2025 driven by cost-of-living adjustments and increased full-time equivalents year-over-year. Occupancy and equipment increased $319 thousand driven primarily by higher operating costs due to the Woodsville acquisition. Amortization of intangible assets increased $116 thousand, reflecting incremental amortization associated with the Woodsville acquisition. Other expenses increased $1.2 million for the third quarter 2026 compared to the third quarter 2025 primarily due the aforementioned $1.0 million write-down on other real estate owned.
Income tax expense was $4.3 million for the third quarter 2026 compared to $2.2 million for the third quarter of 2025. Our GAAP effective tax rate for the third quarter 2026 was 21.0% compared to 19.8% in the third quarter 2025.
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 interest rates and the cost of deposits; (2) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (3) changes in consumer behavior due to political, business, and economic conditions, including ongoing armed conflicts, inflation, future United States government shutdowns, and concerns about liquidity; (4) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (5) the impact of liquidity needs on our results of operations and financial condition; (6) changes in the size and nature of our competition; (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, (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 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
| TABLE | |
| INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
| 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 |
BAR HARBOR BANKSHARES
SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED
| At or for the Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Net earnings, diluted | $ | 0.96 | $ | 0.91 | $ | 0.81 | $ | 0.70 | $ | 0.54 | ||||||||||
| Core earnings, diluted (1) | 1.04 | 0.92 | 0.88 | 0.93 | 0.95 | |||||||||||||||
| Total book value | 31.95 | 32.80 | 32.13 | 31.88 | 31.22 | |||||||||||||||
| Tangible book value (1) | 22.61 | 23.43 | 22.71 | 22.41 | 21.70 | |||||||||||||||
| Market price at period end | 38.69 | 37.76 | 32.45 | 31.05 | 30.46 | |||||||||||||||
| Dividends | 0.34 | 0.34 | 0.32 | 0.32 | 0.32 | |||||||||||||||
| PERFORMANCE RATIOS (2) | ||||||||||||||||||||
| Return on assets | 1.35 | % | 1.31 | % | 1.18 | % | 1.00 | % | 0.78 | % | ||||||||||
| Core return on assets (1) | 1.47 | 1.33 | 1.28 | 1.32 | 1.35 | |||||||||||||||
| Pre-tax, pre-provision return on assets (1) | 1.69 | 1.76 | 1.52 | 1.29 | 1.30 | |||||||||||||||
| Core pre-tax, pre-provision return on assets (1) | 1.85 | 1.79 | 1.65 | 1.71 | 1.71 | |||||||||||||||
| Return on equity | 11.69 | 11.16 | 10.13 | 8.76 | 6.99 | |||||||||||||||
| Core return on equity (1) | 12.70 | 11.30 | 11.03 | 11.55 | 12.16 | |||||||||||||||
| Return on tangible equity (1) | 16.84 | 16.11 | 14.77 | 12.94 | 10.07 | |||||||||||||||
| Core return on tangible equity (1) | 18.27 | 16.31 | 16.03 | 16.91 | 17.23 | |||||||||||||||
| Net interest margin, fully taxable equivalent (1) (3) | 3.77 | 3.61 | 3.54 | 3.62 | 3.56 | |||||||||||||||
| Efficiency ratio (1) | 55.26 | 55.76 | 56.92 | 57.24 | 56.70 | |||||||||||||||
| FINANCIAL DATA (In millions) | ||||||||||||||||||||
| Total assets | $ | 4,704 | $ | 4,743 | $ | 4,676 | $ | 4,684 | $ | 4,717 | ||||||||||
| Total earning assets (4) | 4,324 | 4,343 | 4,297 | 4,297 | 4,336 | |||||||||||||||
| Total available-for-sale debt securities | 581 | 602 | 598 | 597 | 598 | |||||||||||||||
| Total loans | 3,614 | 3,614 | 3,585 | 3,606 | 3,584 | |||||||||||||||
| Allowance for credit losses | 32 | 32 | 34 | 34 | 34 | |||||||||||||||
| Total goodwill and intangible assets | 156 | 157 | 158 | 158 | 159 | |||||||||||||||
| Total deposits | 3,938 | 3,854 | 3,868 | 3,821 | 3,948 | |||||||||||||||
| Total shareholders' equity | 536 | 550 | 538 | 533 | 521 | |||||||||||||||
| Net income | 16 | 15 | 14 | 12 | 9 | |||||||||||||||
| Core earnings (1) | 17 | 15 | 15 | 16 | 15 | |||||||||||||||
| ASSET QUALITY AND CONDITION RATIOS | ||||||||||||||||||||
| Net charge-offs (recoveries)(5)/average loans | 0.03 | % | 0.37 | % | - | % | 0.03 | % | 0.04 | % | ||||||||||
| Allowance for credit losses on loans/total loans | 0.88 | 0.89 | 0.96 | 0.94 | 0.95 | |||||||||||||||
| Loans/deposits | 92 | 94 | 93 | 94 | 91 | |||||||||||||||
| Shareholders' equity to total assets | 11.39 | 11.59 | 11.50 | 11.37 | 11.04 | |||||||||||||||
| Tangible shareholders' equity to tangible assets | 8.34 | 8.56 | 8.42 | 8.27 | 7.94 | |||||||||||||||
_________________________________________
- Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.
- All performance ratios are based on average balance sheet amounts, where applicable.
- Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.
- Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.
- Current quarter annualized.
BAR HARBOR BANKSHARES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 37,039 | $ | 46,270 | $ | 35,595 | $ | 44,947 | $ | 42,743 | ||||||||||
| Interest-earning deposits with other banks | 37,778 | 58,118 | 46,620 | 35,890 | 93,971 | |||||||||||||||
| Total cash and cash equivalents | 74,817 | 104,388 | 82,215 | 80,837 | 136,714 | |||||||||||||||
| Available-for-sale debt securities | 581,297 | 601,772 | 597,977 | 597,424 | 597,810 | |||||||||||||||
| Federal Home Loan Bank stock | 7,968 | 13,423 | 9,567 | 11,308 | 8,560 | |||||||||||||||
| Loans held for sale | 10,740 | 10,203 | 11,534 | 5,283 | 5,545 | |||||||||||||||
| Total loans | 3,613,632 | 3,614,180 | 3,585,248 | 3,605,859 | 3,583,716 | |||||||||||||||
| Less: Allowance for credit losses on loans | (31,761 | ) | (32,231 | ) | (34,315 | ) | (34,052 | ) | (33,940 | ) | ||||||||||
| Net loans | 3,581,871 | 3,581,949 | 3,550,933 | 3,571,807 | 3,549,776 | |||||||||||||||
| Premises and equipment, net | 61,407 | 61,170 | 58,914 | 58,188 | 58,828 | |||||||||||||||
| Other real estate owned | 7,146 | 8,170 | - | - | - | |||||||||||||||
| Goodwill | 141,819 | 141,819 | 141,819 | 141,819 | 141,819 | |||||||||||||||
| Other intangible assets | 14,659 | 15,242 | 15,824 | 16,407 | 16,989 | |||||||||||||||
| Cash surrender value of bank-owned life insurance | 89,420 | 88,728 | 89,817 | 96,250 | 95,554 | |||||||||||||||
| Deferred tax asset, net | 36,892 | 28,859 | 30,298 | 29,926 | 31,721 | |||||||||||||||
| Other assets | 95,828 | 86,779 | 87,330 | 74,642 | 73,936 | |||||||||||||||
| Total assets | $ | 4,703,864 | $ | 4,742,502 | $ | 4,676,228 | $ | 4,683,891 | $ | 4,717,252 | ||||||||||
| Liabilities and shareholders' equity | ||||||||||||||||||||
| Non-interest bearing demand | $ | 702,668 | $ | 678,081 | $ | 651,282 | $ | 670,786 | $ | 692,780 | ||||||||||
| Interest-bearing demand | 1,248,282 | 1,141,043 | 1,152,888 | 1,137,730 | 1,137,362 | |||||||||||||||
| Savings | 642,937 | 635,316 | 649,302 | 635,329 | 647,428 | |||||||||||||||
| Money market | 489,193 | 481,815 | 493,432 | 464,843 | 488,633 | |||||||||||||||
| Time | 854,869 | 917,694 | 920,811 | 912,594 | 981,993 | |||||||||||||||
| Total deposits | 3,937,949 | 3,853,949 | 3,867,715 | 3,821,282 | 3,948,196 | |||||||||||||||
| Senior borrowings | 123,798 | 227,541 | 162,297 | 216,818 | 139,956 | |||||||||||||||
| Subordinated borrowings | 33,620 | 53,620 | 53,420 | 52,825 | 52,229 | |||||||||||||||
| Total borrowings | 157,418 | 281,161 | 215,717 | 269,643 | 192,185 | |||||||||||||||
| Other liabilities | 72,888 | 57,840 | 54,859 | 60,425 | 55,916 | |||||||||||||||
| Total liabilities | 4,168,255 | 4,192,950 | 4,138,291 | 4,151,350 | 4,196,297 | |||||||||||||||
| Total shareholders' equity | 535,609 | 549,552 | 537,937 | 532,541 | 520,955 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,703,864 | $ | 4,742,502 | $ | 4,676,228 | $ | 4,683,891 | $ | 4,717,252 | ||||||||||
| Net shares outstanding | 16,766 | 16,754 | 16,742 | 16,702 | 16,689 | |||||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED
LOAN ANALYSIS
| Annualized | ||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | Quarter | Year | ||||||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | to Date | to Date | |||||||||||||||
| Commercial real estate | $ | 2,010,609 | $ | 1,988,695 | $ | 1,968,403 | $ | 1,998,603 | $ | 1,942,659 | 4 | 1 | % | |||||||||
| Commercial and industrial | 411,766 | 433,371 | 417,657 | 393,851 | 405,759 | (20 | ) | 6 | ||||||||||||||
| Total commercial loans | 2,422,375 | 2,422,066 | 2,386,060 | 2,392,454 | 2,348,418 | - | 2 | |||||||||||||||
| Residential real estate | 973,648 | 983,274 | 993,636 | 1,001,769 | 1,025,266 | (4 | ) | (4 | ) | |||||||||||||
| Consumer | 135,243 | 132,570 | 127,681 | 128,029 | 126,345 | 8 | 8 | |||||||||||||||
| Tax exempt and other | 82,366 | 76,270 | 77,871 | 83,607 | 83,687 | 32 | (2 | ) | ||||||||||||||
| Total loans | $ | 3,613,632 | $ | 3,614,180 | $ | 3,585,248 | $ | 3,605,859 | $ | 3,583,716 | - | % | - | % | ||||||||
DEPOSIT ANALYSIS
| Annualized | ||||||||||||||||||||||
| Growth % | ||||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | Quarter | Year | ||||||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | to Date | to Date | |||||||||||||||
| Non-interest bearing demand | $ | 702,668 | $ | 678,081 | $ | 651,282 | $ | 670,786 | $ | 692,780 | 15 | % | 6 | % | ||||||||
| Interest-bearing demand | 1,248,282 | 1,141,043 | 1,152,888 | 1,137,730 | 1,137,362 | 38 | 13 | |||||||||||||||
| Savings | 642,937 | 635,316 | 649,302 | 635,329 | 647,428 | 5 | 2 | |||||||||||||||
| Money market | 489,193 | 481,815 | 493,432 | 464,843 | 488,633 | 6 | 7 | |||||||||||||||
| Total non-maturity deposits | 3,083,080 | 2,936,255 | 2,946,904 | 2,908,688 | 2,966,203 | 20 | 8 | |||||||||||||||
| Time | 854,869 | 917,694 | 920,811 | 912,594 | 981,993 | (27 | ) | (8 | ) | |||||||||||||
| Total deposits | $ | 3,937,949 | $ | 3,853,949 | $ | 3,867,715 | $ | 3,821,282 | $ | 3,948,196 | 9 | % | 4 | % | ||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Interest and dividend income | ||||||||||||||||
| Loans | $ | 51,111 | $ | 48,426 | $ | 148,920 | $ | 132,956 | ||||||||
| Securities and other | 6,527 | 6,355 | 19,050 | 17,112 | ||||||||||||
| Federal Home Loan Bank stock | 193 | 217 | 531 | 566 | ||||||||||||
| Interest-earning deposits with other banks | 561 | 924 | 1,047 | 1,514 | ||||||||||||
| Total interest and dividend income | 58,392 | 55,922 | 169,548 | 152,148 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 15,103 | 16,419 | 44,630 | 47,442 | ||||||||||||
| Borrowings | 2,578 | 2,544 | 9,416 | 8,845 | ||||||||||||
| Total interest expense | 17,681 | 18,963 | 54,046 | 56,287 | ||||||||||||
| Net interest income | 40,711 | 36,959 | 115,502 | 95,861 | ||||||||||||
| Provision for credit losses on available-for-sale debt securities | - | - | - | 636 | ||||||||||||
| Provision (benefit) for credit losses on loans | (167 | ) | 3,749 | 1,388 | 4,220 | |||||||||||
| Net interest income after provision for credit losses | 40,878 | 33,210 | 114,114 | 91,005 | ||||||||||||
| Non-interest income | ||||||||||||||||
| Trust and investment management fee income | 4,186 | 3,903 | 12,878 | 12,082 | ||||||||||||
| Customer service fees | 4,566 | 4,311 | 13,383 | 11,425 | ||||||||||||
| (Loss) gain on available-for-sale debt securities, net | 69 | 41 | (964 | ) | (4,901 | ) | ||||||||||
| Mortgage banking income | 766 | 423 | 2,189 | 1,484 | ||||||||||||
| Bank-owned life insurance income | 693 | 665 | 4,097 | 1,881 | ||||||||||||
| Customer derivative income | 484 | 962 | 889 | 1,278 | ||||||||||||
| Other income | 83 | 262 | 521 | 882 | ||||||||||||
| Total non-interest income | 10,847 | 10,567 | 32,993 | 24,131 | ||||||||||||
| Non-interest expense | ||||||||||||||||
| Salaries and employee benefits | 16,393 | 15,939 | 48,999 | 43,946 | ||||||||||||
| Occupancy and equipment | 4,198 | 3,879 | 12,526 | 10,750 | ||||||||||||
| Depreciation | 1,194 | 1,078 | 3,416 | 3,150 | ||||||||||||
| Loss (gain) on premises and equipment, net | 47 | (206 | ) | 181 | (113 | ) | ||||||||||
| Outside services | 762 | 514 | 1,754 | 1,453 | ||||||||||||
| Professional services | 503 | 296 | 1,240 | 1,402 | ||||||||||||
| Communication | 207 | 246 | 666 | 606 | ||||||||||||
| Marketing | 705 | 655 | 1,880 | 1,855 | ||||||||||||
| Amortization of intangible assets | 582 | 466 | 1,746 | 932 | ||||||||||||
| FDIC assessment | 528 | 462 | 1,642 | 1,382 | ||||||||||||
| Acquisition, conversion and other expenses | 610 | 4,978 | 2,029 | 6,422 | ||||||||||||
| Provision for unfunded commitments | 180 | 145 | (696 | ) | 71 | |||||||||||
| Other expenses | 5,458 | 4,287 | 14,993 | 12,072 | ||||||||||||
| Total non-interest expense | 31,367 | 32,739 | 90,376 | 83,928 | ||||||||||||
| Income before income taxes | 20,358 | 11,038 | 56,731 | 31,208 | ||||||||||||
| Income tax expense | 4,269 | 2,183 | 11,884 | 6,050 | ||||||||||||
| Net income | $ | 16,089 | $ | 8,855 | $ | 44,847 | $ | 25,158 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.96 | $ | 0.55 | $ | 2.68 | $ | 1.61 | ||||||||
| Diluted | 0.96 | 0.54 | 2.67 | 1.60 | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 16,765 | 16,231 | 16,748 | 15,622 | ||||||||||||
| Diluted | 16,828 | 16,284 | 16,814 | 15,685 | ||||||||||||
BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
| (in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Interest and dividend income | ||||||||||||||||||||
| Loans | $ | 51,111 | $ | 49,151 | $ | 48,658 | $ | 50,164 | $ | 48,426 | ||||||||||
| Securities and other | 6,527 | 6,319 | 6,204 | 6,327 | 6,355 | |||||||||||||||
| Federal Home Loan Bank stock | 193 | 183 | 155 | 235 | 217 | |||||||||||||||
| Interest-earning deposits with other banks | 561 | 253 | 233 | 645 | 924 | |||||||||||||||
| Total interest and dividend income | 58,392 | 55,906 | 55,250 | 57,371 | 55,922 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 15,103 | 14,638 | 14,889 | 16,083 | 16,419 | |||||||||||||||
| Borrowings | 2,578 | 3,349 | 3,489 | 2,671 | 2,544 | |||||||||||||||
| Total interest expense | 17,681 | 17,987 | 18,378 | 18,754 | 18,963 | |||||||||||||||
| Net interest income | 40,711 | 37,919 | 36,872 | 38,617 | 36,959 | |||||||||||||||
| Provision for credit losses on available-for-sale debt securities | - | - | - | - | - | |||||||||||||||
| Provision (benefit) for credit losses on loans | (167 | ) | 1,250 | 305 | 416 | 3,749 | ||||||||||||||
| Net interest income after provision for credit losses | 40,878 | 36,669 | 36,567 | 38,201 | 33,210 | |||||||||||||||
| Non-interest income | ||||||||||||||||||||
| Trust and investment management fee income | 4,186 | 4,577 | 4,115 | 3,984 | 3,903 | |||||||||||||||
| Customer service fees | 4,566 | 4,715 | 4,102 | 4,528 | 4,311 | |||||||||||||||
| (Loss) gain on available-for-sale debt securities, net | 69 | (25 | ) | (1,008 | ) | (428 | ) | 41 | ||||||||||||
| Mortgage banking income | 766 | 741 | 682 | 485 | 423 | |||||||||||||||
| Bank-owned life insurance income | 693 | 1,417 | 1,987 | 695 | 665 | |||||||||||||||
| Customer derivative income | 484 | 76 | 329 | 735 | 962 | |||||||||||||||
| Other income | 83 | 231 | 207 | 326 | 262 | |||||||||||||||
| Total non-interest income | 10,847 | 11,732 | 10,414 | 10,325 | 10,567 | |||||||||||||||
| Non-interest expense | ||||||||||||||||||||
| Salaries and employee benefits | 16,393 | 16,833 | 15,773 | 16,588 | 15,939 | |||||||||||||||
| Occupancy and equipment | 4,198 | 4,292 | 4,036 | 3,780 | 3,879 | |||||||||||||||
| Depreciation | 1,194 | 1,088 | 1,134 | 1,153 | 1,078 | |||||||||||||||
| Loss (gain) on premises and equipment, net | 47 | - | 134 | 370 | (206 | ) | ||||||||||||||
| Outside services | 762 | 528 | 464 | 564 | 514 | |||||||||||||||
| Professional services | 503 | 388 | 349 | 407 | 296 | |||||||||||||||
| Communication | 207 | 211 | 248 | 271 | 246 | |||||||||||||||
| Marketing | 705 | 570 | 605 | 181 | 655 | |||||||||||||||
| Amortization of intangible assets | 582 | 582 | 582 | 582 | 466 | |||||||||||||||
| FDIC assessment | 528 | 537 | 577 | 539 | 462 | |||||||||||||||
| Acquisition, conversion and other expenses | 610 | (36 | ) | 1,455 | 4,170 | 4,978 | ||||||||||||||
| Provision for unfunded commitments | 180 | (650 | ) | (226 | ) | 725 | 145 | |||||||||||||
| Other expenses | 5,458 | 4,839 | 4,696 | 4,469 | 4,287 | |||||||||||||||
| Total non-interest expense | 31,367 | 29,182 | 29,827 | 33,799 | 32,739 | |||||||||||||||
| Income before income taxes | 20,358 | 19,219 | 17,154 | 14,727 | 11,038 | |||||||||||||||
| Income tax expense | 4,269 | 3,998 | 3,617 | 2,966 | 2,183 | |||||||||||||||
| Net income | $ | 16,089 | $ | 15,221 | $ | 13,537 | $ | 11,761 | $ | 8,855 | ||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 0.96 | $ | 0.91 | $ | 0.81 | $ | 0.70 | $ | 0.55 | ||||||||||
| Diluted | 0.96 | 0.91 | 0.81 | 0.70 | 0.54 | |||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 16,765 | 16,751 | 16,728 | 16,696 | 16,231 | |||||||||||||||
| Diluted | 16,828 | 16,808 | 16,804 | 16,757 | 16,284 | |||||||||||||||
BAR HARBOR BANKSHARES
AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| Earning assets | ||||||||||||||||||||
| Interest-earning deposits with other banks | 3.82 | % | 3.92 | % | 3.90 | % | 4.53 | % | 4.49 | % | ||||||||||
| Available-for-sale debt securities | 4.10 | 4.06 | 4.05 | 4.03 | 4.14 | |||||||||||||||
| Federal Home Loan Bank stock | 7.96 | 6.33 | 5.68 | 10.72 | 7.71 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial real estate | 5.82 | 5.72 | 5.68 | 5.74 | 5.88 | |||||||||||||||
| Commercial and industrial | 6.11 | 6.17 | 6.13 | 6.34 | 6.45 | |||||||||||||||
| Residential real estate | 4.81 | 4.62 | 4.64 | 4.75 | 4.42 | |||||||||||||||
| Consumer | 7.28 | 7.05 | 6.90 | 7.27 | 7.23 | |||||||||||||||
| Total loans | 5.64 | 5.52 | 5.50 | 5.59 | 5.60 | |||||||||||||||
| Total earning assets | 5.39 | % | 5.29 | % | 5.27 | % | 5.36 | % | 5.36 | % | ||||||||||
| Funding liabilities | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Interest-bearing demand | 1.36 | % | 1.32 | % | 1.30 | % | 1.39 | % | 1.42 | % | ||||||||||
| Savings | 0.52 | 0.50 | 0.56 | 0.54 | 0.64 | |||||||||||||||
| Money market | 2.37 | 2.33 | 2.28 | 2.43 | 2.59 | |||||||||||||||
| Time | 3.27 | 3.32 | 3.41 | 3.53 | 3.64 | |||||||||||||||
| Total interest-bearing deposits | 1.87 | 1.88 | 1.91 | 2.01 | 2.12 | |||||||||||||||
| Borrowings | 4.98 | 5.05 | 5.62 | 5.43 | 4.04 | |||||||||||||||
| Total interest-bearing liabilities | 2.05 | % | 2.13 | % | 2.19 | % | 2.20 | % | 2.27 | % | ||||||||||
| Net interest spread | 3.34 | 3.16 | 3.08 | 3.16 | 3.09 | |||||||||||||||
| Net interest margin, fully taxable equivalent(1) | 3.77 | 3.61 | 3.54 | 3.62 | 3.56 | |||||||||||||||
- Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.
BAR HARBOR BANKSHARES
AVERAGE BALANCES - UNAUDITED
| Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Interest-earning deposits with other banks (1) | $ | 58,265 | $ | 25,896 | $ | 24,230 | $ | 56,502 | $ | 81,709 | ||||||||||
| Available-for-sale debt securities (2) | 654,636 | 647,755 | 643,647 | 644,929 | 631,572 | |||||||||||||||
| Federal Home Loan Bank stock | 9,619 | 11,592 | 11,062 | 8,696 | 11,168 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial real estate | 1,990,307 | 1,975,080 | 2,001,851 | 1,954,841 | 1,887,267 | |||||||||||||||
| Commercial and industrial | 504,422 | 492,195 | 486,295 | 480,529 | 483,380 | |||||||||||||||
| Residential real estate | 991,993 | 993,933 | 998,862 | 1,021,309 | 963,311 | |||||||||||||||
| Consumer | 133,538 | 130,890 | 127,693 | 126,953 | 120,941 | |||||||||||||||
| Total loans (3) | 3,620,260 | 3,592,098 | 3,614,701 | 3,583,632 | 3,454,899 | |||||||||||||||
| Total earning assets | 4,342,780 | 4,277,341 | 4,293,640 | 4,293,759 | 4,179,348 | |||||||||||||||
| Cash and due from banks | 39,817 | 37,089 | 36,278 | 40,291 | 38,709 | |||||||||||||||
| Allowance for credit losses | (32,194 | ) | (33,242 | ) | (34,195 | ) | (33,905 | ) | (31,246 | ) | ||||||||||
| Goodwill and other intangible assets | 156,762 | 157,345 | 157,921 | 158,507 | 139,822 | |||||||||||||||
| Other assets | 223,750 | 215,460 | 215,852 | 211,317 | 191,446 | |||||||||||||||
| Total assets | $ | 4,730,915 | $ | 4,653,993 | $ | 4,669,496 | $ | 4,669,969 | $ | 4,518,079 | ||||||||||
| Liabilities and shareholders' equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Interest-bearing demand | $ | 1,215,024 | $ | 1,119,195 | $ | 1,121,021 | $ | 1,127,456 | $ | 1,059,214 | ||||||||||
| Savings | 640,517 | 640,852 | 642,717 | 640,577 | 617,314 | |||||||||||||||
| Money market | 473,298 | 463,296 | 469,496 | 473,574 | 432,952 | |||||||||||||||
| Time | 883,465 | 902,363 | 922,180 | 939,353 | 961,054 | |||||||||||||||
| Total interest-bearing deposits | 3,212,304 | 3,125,706 | 3,155,414 | 3,180,960 | 3,070,534 | |||||||||||||||
| Borrowings | 205,558 | 265,929 | 251,985 | 195,139 | 250,110 | |||||||||||||||
| Total interest-bearing liabilities | 3,417,862 | 3,391,635 | 3,407,399 | 3,376,099 | 3,320,644 | |||||||||||||||
| Non-interest bearing demand deposits | 696,843 | 657,470 | 659,506 | 705,245 | 647,981 | |||||||||||||||
| Other liabilities | 70,114 | 57,702 | 60,814 | 56,025 | 46,962 | |||||||||||||||
| Total liabilities | 4,184,819 | 4,106,807 | 4,127,719 | 4,137,369 | 4,015,587 | |||||||||||||||
| Total shareholders' equity | 546,096 | 547,186 | 541,777 | 532,600 | 502,492 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,730,915 | $ | 4,653,993 | $ | 4,669,496 | $ | 4,669,969 | $ | 4,518,079 | ||||||||||
_____________________________________
- Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.
- Average balances for available-for-sale debt securities are based on amortized cost.
- Total average loans include non-accruing loans and loans held for sale.
BAR HARBOR BANKSHARES
ASSET QUALITY ANALYSIS - UNAUDITED
| At or for the Quarters Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | ||||||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| NON-PERFORMING ASSETS | ||||||||||||||||||||
| Non-accruing loans: | ||||||||||||||||||||
| Commercial real estate | $ | 1,034 | $ | 902 | $ | 12,620 | $ | 1,497 | $ | 697 | ||||||||||
| Commercial and industrial | 817 | 1,003 | 1,139 | 1,113 | 1,221 | |||||||||||||||
| Residential real estate | 8,266 | 8,314 | 8,206 | 7,719 | 6,541 | |||||||||||||||
| Consumer | 1,114 | 1,199 | 1,176 | 1,265 | 1,051 | |||||||||||||||
| Total non-accruing loans | 11,231 | 11,418 | 23,141 | 11,594 | 9,510 | |||||||||||||||
| Non-performing available-for-sale debt securities | 1,329 | 1,329 | 1,329 | 2,203 | 2,203 | |||||||||||||||
| Other real estate owned | 7,146 | 8,170 | - | - | - | |||||||||||||||
| Total non-performing assets | $ | 19,706 | $ | 20,917 | $ | 24,470 | $ | 13,797 | $ | 11,713 | ||||||||||
| Total non-accruing loans/total loans | 0.31 | % | 0.32 | % | 0.65 | % | 0.32 | % | 0.27 | % | ||||||||||
| Total non-performing assets/total assets | 0.42 | 0.44 | 0.52 | 0.29 | 0.25 | |||||||||||||||
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | ||||||||||||||||||||
| Balance at beginning of period | $ | 32,231 | $ | 34,315 | $ | 34,052 | $ | 33,940 | $ | 28,885 | ||||||||||
| Charged-off loans | (315 | ) | (3,463 | ) | (97 | ) | (318 | ) | (353 | ) | ||||||||||
| Recoveries on charged-off loans | 12 | 57 | 55 | 14 | 37 | |||||||||||||||
| Net loans (charged-off) recovered | (303 | ) | (3,406 | ) | (42 | ) | (304 | ) | (316 | ) | ||||||||||
| ACL established on PCD loans | - | - | - | - | 1,622 | |||||||||||||||
| ACL established on purchased seasoned loans | - | 72 | - | - | - | |||||||||||||||
| Provision for credit losses on loans | (167 | ) | 1,250 | 305 | 416 | 3,749 | ||||||||||||||
| Balance at end of period | $ | 31,761 | $ | 32,231 | $ | 34,315 | $ | 34,052 | $ | 33,940 | ||||||||||
| Allowance for credit losses/total loans | 0.88 | % | 0.89 | % | 0.96 | % | 0.94 | % | 0.95 | % | ||||||||||
| Allowance for credit losses/non-accruing loans | 283 | 282 | 148 | 294 | 357 | |||||||||||||||
| NET LOAN (CHARGE-OFFS) RECOVERIES | ||||||||||||||||||||
| Commercial real estate | $ | (239 | ) | $ | (3,283 | ) | $ | - | $ | - | $ | (224 | ) | |||||||
| Commercial and industrial | 3 | (15 | ) | 35 | (256 | ) | 18 | |||||||||||||
| Residential real estate | (70 | ) | (21 | ) | 8 | 8 | (112 | ) | ||||||||||||
| Consumer | 3 | (87 | ) | (85 | ) | (56 | ) | 2 | ||||||||||||
| Total, net | $ | (303 | ) | $ | (3,406 | ) | $ | (42 | ) | $ | (304 | ) | $ | (316 | ) | |||||
| Net charge-offs (recoveries) (QTD annualized)/average loans | 0.03 | % | 0.37 | % | - | % | 0.03 | % | 0.04 | % | ||||||||||
| Net charge-offs (recoveries) (YTD annualized)/average loans | 0.14 | 0.19 | - | 0.03 | 0.02 | |||||||||||||||
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON AVAILABLE-FOR-SALE DEBT SECURITIES | ||||||||||||||||||||
| Balance at beginning of period | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Charged-off interest receivable on available-for-sale debt securities | - | - | - | - | - | |||||||||||||||
| Provision (benefit) for credit losses on available-for-sale debt securities | - | - | - | - | - | |||||||||||||||
| Charged-off previously provisioned allowance for credit loss | - | - | - | - | - | |||||||||||||||
| Balance at end of period | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED
| At or for the Quarters Ended | |||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |||||||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| Net income | (R) | $ | 16,089 | $ | 15,221 | $ | 13,537 | $ | 11,761 | $ | 8,855 | ||||||||||
| Non-core items: | |||||||||||||||||||||
| Loss (gain) on available-for-sale debt securities, net | (69 | ) | 25 | - | 428 | (41 | ) | ||||||||||||||
| Loss (gain) on premises and equipment, net | 47 | - | 134 | 370 | (206 | ) | |||||||||||||||
| (Gain) loss and other expenses on other real estate owned | 1,267 | 273 | - | - | - | ||||||||||||||||
| Provision on non-PCD acquired loans | - | - | - | - | 3,954 | ||||||||||||||||
| Acquisition, conversion and other expenses | 610 | (36 | ) | 1,455 | 4,170 | 4,978 | |||||||||||||||
| Income tax expense (1) | (457 | ) | (65 | ) | (392 | ) | (1,225 | ) | (2,141 | ) | |||||||||||
| Total non-core items (2) | 1,398 | 197 | 1,197 | 3,743 | 6,544 | ||||||||||||||||
| Core earnings (2) | (A) | $ | 17,487 | $ | 15,418 | $ | 14,734 | $ | 15,504 | $ | 15,399 | ||||||||||
| Net interest income | (B) | $ | 40,711 | $ | 37,919 | $ | 36,872 | $ | 38,617 | $ | 36,959 | ||||||||||
| Non-interest income | 10,847 | 11,732 | 10,414 | 10,325 | 10,567 | ||||||||||||||||
| Total revenue | 51,558 | 49,651 | 47,286 | 48,942 | 47,526 | ||||||||||||||||
| Loss (gain) on available-for-sale debt securities, net | (69 | ) | 25 | - | 428 | (41 | ) | ||||||||||||||
| Total core revenue (2) | (C) | $ | 51,489 | $ | 49,676 | $ | 47,286 | $ | 49,370 | $ | 47,485 | ||||||||||
| Total non-interest expense | 31,367 | 29,182 | 29,827 | 33,799 | 32,739 | ||||||||||||||||
| Non-core expenses: | |||||||||||||||||||||
| (Loss) gain on premises and equipment, net | (47 | ) | - | (134 | ) | (370 | ) | 206 | |||||||||||||
| Gain (loss) and other expenses on other real estate owned | (1,267 | ) | (273 | ) | - | - | - | ||||||||||||||
| Acquisition, conversion and other expenses | (610 | ) | 36 | (1,455 | ) | (4,170 | ) | (4,978 | ) | ||||||||||||
| Total non-core expenses (2) | (1,924 | ) | (237 | ) | (1,589 | ) | (4,540 | ) | (4,772 | ) | |||||||||||
| Core non-interest expense (2) | (D) | $ | 29,443 | $ | 28,945 | $ | 28,238 | $ | 29,259 | $ | 27,967 | ||||||||||
| Total revenue | 51,558 | 49,651 | 47,286 | 48,942 | 47,526 | ||||||||||||||||
| Total non-interest expense | 31,367 | 29,182 | 29,827 | 33,799 | 32,739 | ||||||||||||||||
| Pre-tax, pre-provision net revenue(2) | (S) | $ | 20,191 | $ | 20,469 | $ | 17,459 | $ | 15,143 | $ | 14,787 | ||||||||||
| Core revenue(2) | 51,489 | 49,676 | 47,286 | 49,370 | 47,485 | ||||||||||||||||
| Core non-interest expense(2) | 29,443 | 28,945 | 28,238 | 29,259 | 27,967 | ||||||||||||||||
| Core pre-tax, pre-provision net revenue(2) | (U) | $ | 22,046 | $ | 20,731 | $ | 19,048 | $ | 20,111 | $ | 19,518 | ||||||||||
| (in millions) | |||||||||||||||||||||
| Average earning assets | (E) | $ | 4,343 | $ | 4,277 | $ | 4,294 | $ | 4,294 | $ | 4,179 | ||||||||||
| Average assets | (F) | 4,731 | 4,654 | 4,669 | 4,670 | 4,518 | |||||||||||||||
| Average shareholders' equity | (G) | 546 | 547 | 542 | 533 | 502 | |||||||||||||||
| Average tangible shareholders' equity (2) (3) | (H) | 389 | 390 | 384 | 374 | 360 | |||||||||||||||
| Tangible shareholders' equity, period-end (2) (3) | (I) | 379 | 392 | 380 | 374 | 362 | |||||||||||||||
| Tangible assets, period-end (2) (3) | (J) | 4,547 | 4,585 | 4,519 | 4,526 | 4,563 | |||||||||||||||
BAR HARBOR BANKSHARES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED
| At or for the Quarters Ended | |||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sept 30, | |||||||||||||
| (in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||
| Common shares outstanding, period-end | (K) | 16,766 | 16,754 | 16,742 | 16,702 | 16,689 | |||||||||||
| Average diluted shares outstanding | (L) | 16,828 | 16,808 | 16,804 | 16,757 | 16,284 | |||||||||||
| Core earnings per share, diluted (2) | (A/L) | $ | 1.04 | $ | 0.92 | $ | 0.88 | $ | 0.93 | $ | 0.95 | ||||||
| Tangible book value per share, period-end (2) | (I/K) | 22.61 | 23.43 | 22.71 | 22.41 | 21.70 | |||||||||||
| Tangible shareholders' equity/total tangible assets (2) | (I/J) | 8.34 | 8.56 | 8.42 | 8.27 | 7.94 | |||||||||||
| Performance ratios (4) | |||||||||||||||||
| GAAP return on assets | 1.35 | 1.31 | % | 1.18 | % | 1.00 | % | 0.78 | % | ||||||||
| Core return on assets (2) | (A/F) | 1.47 | 1.33 | 1.28 | 1.32 | 1.35 | |||||||||||
| Pre-tax, pre-provision return on assets(2) | (S/F) | 1.69 | 1.76 | 1.52 | 1.29 | 1.30 | |||||||||||
| Core pre-tax, pre-provision return on assets (2) | (U/F) | 1.85 | 1.79 | 1.65 | 1.71 | 1.71 | |||||||||||
| GAAP return on equity | 11.69 | 11.16 | 10.13 | 8.76 | 6.99 | ||||||||||||
| Core return on equity (2) | (A/G) | 12.70 | 11.30 | 11.03 | 11.55 | 12.16 | |||||||||||
| Return on tangible equity (1) (2) | (R+Q)/H | 16.84 | 16.11 | 14.77 | 12.94 | 10.07 | |||||||||||
| Core return on tangible equity (1) (2) | (A+Q)/H | 18.27 | 16.31 | 16.03 | 16.91 | 17.23 | |||||||||||
| Efficiency ratio (2) (5) | (D-O-Q)/(C+N) | 55.26 | 55.76 | 56.92 | 57.24 | 56.70 | |||||||||||
| Net interest margin, fully taxable equivalent (2) | (B+P)/E | 3.77 | 3.61 | 3.54 | 3.62 | 3.56 | |||||||||||
| Supplementary data (in thousands) | |||||||||||||||||
| Taxable equivalent adjustment for efficiency ratio | (N) | $ | 736 | $ | 905 | $ | 1,044 | $ | 766 | $ | 738 | ||||||
| Franchise taxes included in non-interest expense | (O) | 1 | 159 | 146 | (22 | ) | 158 | ||||||||||
| Tax equivalent adjustment for net interest margin | (P) | 565 | 556 | 554 | 595 | 574 | |||||||||||
| Intangible amortization | (Q) | 582 | 582 | 582 | 582 | 466 | |||||||||||
_____________________________________
- Assumes a marginal tax rate of 24.65% for the first, second and third quarters of 2026 and third and fourth quarters of 2025.
- Non-GAAP financial measure.
- 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.
- All performance ratios are based on average balance sheet amounts, where applicable.
- 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.
SOURCE: Bar Harbor Bank & Trust
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