Bar Harbor Core Earnings Reach $1.04 a Share

The Tip Desk · November 8, 2026 · 3 min read

Net interest margin widened 16 bps to 3.77% as deposits rose $84.0 million and wholesale borrowings fell $123.7 million.

Bar Harbor Bankshares (BHB), the Northern New England community-banking holding company, reported third-quarter 2026 GAAP net income of $16.1 million, or $0.96 a share, and core earnings of $17.5 million, or $1.04 a share, up from $15.2 million and $15.4 million in the second quarter.

The net interest margin expanded 16 bps to 3.77% from 3.61%, after a 7 bps expansion in the prior quarter. Year over year, the margin was 3.77% versus 3.56% in the third quarter of 2025. Interest-bearing deposit costs fell to 1.87% from 2.12% a year earlier, and total interest expense declined $1.3 million. Total interest and dividend income rose 4% to $58.4 million from $55.9 million a year earlier.

The loan yield was 5.64%, up 4 bps from 5.60% a year earlier. Residential loan yield expanded to 4.81% from 4.42%; the commercial and industrial yield fell to 6.11% from 6.45% on payoffs. The yield on available-for-sale securities was 4.10%.

Total loans were unchanged at $3.6 billion after a $28.9 million increase in the second quarter. Commercial real estate loans rose $21.9 million on $55.1 million of originations, partly offset by $33.7 million of payoffs. Commercial and industrial loans fell $21.6 million, and residential real estate loans fell $9.6 million.

Deposits were the funding story. Total deposits increased $84.0 million to $3.9 billion. Interest-bearing demand deposits rose $107.2 million and non-interest-bearing demand deposits rose $24.6 million. Time deposits fell $62.8 million, including a $59.0 million reduction in brokered deposits. Growth in non-maturity deposits included $31.7 million in new customer deposits. President and Chief Executive Officer Curtis C. Simard said retail teams opened more than 1,600 new customer accounts and that total deposits grew 9% on an annualized basis, contributing to a lower cost of funds and reduced reliance on wholesale borrowings.

Total borrowings decreased $123.7 million to $157.4 million from $281.2 million, driven by wholesale paydowns and a $20.0 million subordinated debt redemption. Cash and cash equivalents were $74.8 million, down from $104.4 million, primarily from those wholesale paydowns. Available-for-sale debt securities were $581.3 million, with unrealized losses of $72.9 million versus $45.0 million at the end of the second quarter.

Credit costs were light. Net charge-offs to average loans were 0.03%, down from 0.37% in the second quarter. The provision for credit losses was a $167 thousand recapture versus a $3.7 million provision a year earlier, which the company said was primarily due to the full payoff of a purchased-credit-deteriorated relationship. Net charge-offs were $303 thousand. The allowance for credit losses was $31.8 million, or 0.88% of loans. Other real estate owned fell $1.0 million to $7.1 million on a further write-down of one commercial property.

Non-interest income was $10.8 million. Trust and investment management fees rose 7% to $4.2 million as assets under management grew 2.4%. Customer service fees rose 6% to $4.6 million. Mortgage banking income rose to $766 thousand from $423 thousand. Customer derivative income fell to $484 thousand from $962 thousand on lower swap volume.

Non-interest expenses were $31.4 million, down $1.4 million from $32.7 million a year earlier, reflecting lower acquisition expenses. Salaries and employee benefits rose 3% to $16.4 million. Other expenses rose $1.2 million, including the $1.0 million OREO write-down. The efficiency ratio improved to 55.26% from 55.76%.

The board declared a $0.34 cash dividend, unchanged from the second-quarter declaration, equating to a 3.52% annualized yield at the September 30 close of $38.69. Book value per share was $31.95.