Key Highlights

  • GAAP Net Income was USD 16.1 million, or USD 0.96 per share.
  • Net interest Margin widened to 3.77% from 3.61% last quarter.
  • Deposits grew 9% annualized while borrowings fell USD 123.7 million.
  • The board declared a quarterly Dividend of USD 0.34 per share.

Earnings and Returns

Bar Harbor Bankshares (NYSE American:BHB) reported third-quarter 2026 results on Thursday. GAAP net income was USD 16.1 million, or USD 0.96 per diluted share, against USD 15.2 million, or USD 0.91, in the second quarter. Core earnings, a non-GAAP measure, were USD 17.5 million, or USD 1.04 per share, against USD 15.4 million, or USD 0.92. The USD 1.4 million gap between the two measures is the company's adjustment for non-core items.

Return on assets was 1.35% and core Return on Assets was 1.47%. Return on Equity was 11.69% and core return on equity was 12.70%. The non-GAAP efficiency ratio improved to 55.26% from 55.76%.

The net interest margin was 3.77%, up from 3.61% in the second quarter and 3.56% in the third quarter of 2025. Loan Yield rose 4 basis points year over year to 5.64%, while the cost of interest-bearing deposits fell to 1.87% from 2.12%. Total interest and dividend income rose 4%, or USD 2.5 million, to USD 58.4 million compared with the third quarter of 2025.

Loans and Credit

Total loans were steady at USD 3.6 billion. Commercial Real Estate loans rose USD 21.9 million, with USD 55.1 million of originations against USD 33.7 million of payoffs. Commercial and industrial loans fell USD 21.6 million, which included USD 36.0 million of payoffs and USD 12.3 million of originations. Residential real estate loans fell USD 9.6 million.

The allowance for Credit losses on loans was USD 31.8 million, down from USD 32.2 million, or roughly 0.88% of loans. Net charge-offs were 0.03% of average loans. Other real estate owned fell USD 1.0 million to USD 7.1 million after a further write-down on one commercial property.

Deposits and Funding

Total deposits rose USD 84.0 million to USD 3.9 billion. Interest-bearing Demand deposits rose USD 107.2 million and non-interest-bearing demand deposits rose USD 24.6 million. Savings deposits rose USD 7.6 million and Money Market deposits rose USD 7.4 million. The company reported USD 31.7 million of new customer deposits within the non-maturity growth.

Total borrowings fell USD 123.7 million to USD 157.4 million from USD 281.2 million, on paydowns of wholesale funds from loan payoffs and a USD 20.0 million subordinated Debt redemption. Cash and cash equivalents were USD 74.8 million against USD 104.4 million. Available-for-sale debt securities were USD 581.3 million.

Capital and Dividend

Book value per share was USD 31.95 against USD 32.80, and tangible Book Value per share was USD 22.61 against USD 23.43. The board declared a Cash Dividend of USD 0.34 per share, payable Dec. 18 to holders of record on Nov. 19. That equals a 3.52% annualized yield on the USD 38.69 closing price on Sept. 30. Chief Executive Officer Curtis Simard said retail teams opened more than 1,600 new customer accounts and that the bank is adding commercial and industrial lenders.

Metrics to Watch

Core Earnings per share rose 13% from the second quarter, while the margin widened 16 basis points and funding costs fell as deposits replaced wholesale borrowings. Reference points include loan balances that held at USD 3.6 billion, commercial and industrial payoffs against originations, the 0.03% charge-off ratio, and the 55.26% efficiency ratio.