Bar Harbor Bankshares Reports Third Quarter 2025 Results; Declares Dividend

BAR HARBOR, ME / ACCESS Newswire / October 21, 2025 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") reported third quarter 2025 GAAP net income of $8.9 million or $0.54 per diluted share and core earnings (Non-GAAP) of $15.4 million or $0.95 per diluted share compared to GAAP net income of $6.1 million or $0.40 per diluted share and core earnings (Non-GAAP) of $10.8 or 0.70 per diluted share in the second quarter of 2025.

THIRD QUARTER 2025 HIGHLIGHTS (all comparisons to second quarter 2025, unless otherwise noted)

Successfully completed the acquisition of Guaranty Bancorp, Inc. on August 1, 2025, and the customer integration of all systems and branches in mid-October 2025.

Net interest margin expanded to 3.56% from 3.23%

56.70% efficiency ratio compared to 62.10% in the prior quarter

16% annualized quarter-to-date growth in deposits; 6% annualized year-to-date growth, excluding acquired deposits

Strong asset quality with non-accruing loans to total loans declining to 0.27% from 0.31%

Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, "This quarter we completed the integration of Woodsville into our organization. We are now one united company, operating seamlessly across our entire footprint with one culture. This achievement positions us to serve more customers, deepen our existing relationships, and continue growing stronger."

Mr. Simard further stated, "The third quarter marks another strong quarter for us as we took advantage of the seasonal deposit inflows and increased transactional activity across our footprint. In addition, we immediately executed on our strategies to optimize the newly combined balance sheet putting the excess liquidity to work. As a result, we leveraged lower cost deposits to fund new growth and pay off more expensive wholesale borrowings which led to a strong core return on assets of 1.35% and a core return on equity of 12.23%. Together, we have proven what is possible when we unite around a shared objective to balance profitable growth with a conservative credit culture building an enduring future."

Acquisition of Guaranty Bancorp, Inc.

On August 1, 2025, we completed our acquisition of Guaranty Bancorp, Inc., the parent company of Woodsville Guaranty Savings Bank ("Woodsville"), and its results of operations are included in the Company's consolidated results since the date of acquisition. Therefore, the Company's third quarter and nine months ended 2025 results reflect increased levels of average balances, net interest income, and expense compared to its prior quarter and nine months ended 2024 results. After purchase accounting fair value adjustments, the acquisition added $658.1 million of total assets, including $413.4 million of loans, as well as $641.2 million of total liabilities, primarily consisting of $531.3 million in deposits and $109.2 million in borrowings and subordinated debt. Based on the $39.2 million consideration paid the Company recorded goodwill of $22.3 million and core deposit intangibles of $14.0 million in other intangibles related to the acquisition.

In connection with the acquisition, the Company recorded an initial allowance for credit losses ("ACL") of approximately $5.6 million. This included a $1.6 million allowance related to loans identified as purchased credit deteriorated ("PCD") at acquisition, reflecting expected credit losses that developed since origination. The remaining $4.0 million allowance was established through provision expense for non-PCD loans, consistent with the Current Expected Credit Loss ("CECL") framework. This non-PCD allowance represents the recognition of expected lifetime losses on acquired performing loans. At September 30, 2025, the CECL reserve associated with the total acquired portfolio is $4.6 million.

DIVIDEND DECLARED

The Board of Directors of the Company voted to declare a cash dividend of $0.32 per share to shareholders of record at the close of business on November 20, 2025, payable on December 19, 2025. This dividend equates to a 4.20% annualized yield based on the $30.46 closing share price of the Company's common stock on September 30, 2025, the last trading day of the third quarter 2025.

FINANCIAL CONDITION (Quarter results for September 30, 2025 compared to June 30, 2025)

Total assets increased $610 million or 15% to $4.7 billion at the end of the third quarter 2025 primarily due to acquisition of Woodsville. The Company strategically optimized deposits and cash to paydown wholesale borrowings while onboarding deposits from Woodsville.

Total cash and cash equivalents were $141.3 million at the end of the third quarter 2025, compared to $87.0 million at the end of the second quarter 2025. Interest-earning deposits held with other banks increased to $94.0 million at the end of the third quarter 2025, compared to $36.1 million at the end of the second quarter and yielded 4.49% and 4.68%, respectively. The change in cash balances was driven by the acquisition of Woodsville.

Available-for-sale debt securities increased $69.1 million to $597.8 million compared to $528.7 million at second quarter 2025 driven by acquired securities of $115.6 million from Woodsville of which $40.8 million was sold, total calls and paydowns of $31.5 million, and organic purchases of $15.1 million. Fair value adjustments decreased the securities portfolio by $53.0 million at quarter-end compared to $64.1 million at the end of the second quarter. During the third quarter 2025, there was a $241 thousand gain on sale of acquired available-for-sale debt securities, $200 thousand write-off of the corporate debt securities compared to $5.6 million in the second quarter in corporate debt securities due to credit deterioration. The quarter-to-date weighted average yield of the securities portfolio was 4.14% compared to 3.86% at the end of second quarter driven by continued purchase of higher coupon fixed-rate securities and acquisition of the Woodsville portfolio. As of third and second quarter-end, our securities portfolio had an average life of 7.4 years and 8.4 years respectively, with an effective duration of 5.3 years and 5.5 years respectively. All securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.

Federal Home Loan Bank ("FHLB") stock decreased $4.1 million to $8.6 million at the end of the third quarter 2025 compared to $12.7 million at the end of the second quarter 2025 primarily driven by the strategic deployment of cash to pay down advances from the FHLB.

Total loans increased to $3.6 billion from $3.2 billion in the second quarter driven by the acquisition of $413.4 million from Woodsville. Total Commercial loans increased to $2.3 billion from $2.2 billion in the second quarter with $145.5 million from the acquisition and organic growth of $34.8 million organic growth which equates to an annualized growth rate of 5%. Residential real estate loans increased to $1.0 billion driven by $251.8 million in acquired balances. Loans held for sale grew $2.7 million as we experienced continued seasonal increase in demand for mortgage products with corresponding changes in the interest rate environment.

The allowance for credit losses on loans increased $5.1 million, driven primarily by a net $3.0 million in reserves on non-PCD loans and $1.6 million in reserves on PCD loans from Woodsville. As a result, the allowance grew to $33.9 million at the end of the third quarter 2025 compared to $28.9 million at the end of the second quarter 2025. The allowance for credit losses to total loans coverage ratio for the third quarter 2025 compared to the second quarter 2025 increased to 0.95% from 0.92%.

Premises and equipment increased $6.2 million in the third quarter to $58.8 million compared to $52.6 million at the end of the second quarter 2025 driven by $6.6 million in acquired assets from Woodsville and a $206 thousand gain on sale of premises and equipment from the sale of two properties.

Goodwill increased $22.3 million in the third quarter 2025 as the result of the acquisition of Woodsville. Other intangible assets increased $13.5 million in the third quarter 2025 compared to the second quarter 2025 to $17.0 million driven by the core deposit intangible asset of the acquisition, offset by amortization.

Cash surrender value of bank-owned life insurance increased $12.5 million driven by $11.8 million in acquired BOLI and $665 thousand in the current quarter driven by return on assets within the plan compared to the second quarter 2025.

Total deposits grew to $4.0 billion at the end of the third quarter of 2025 driven by $531.3 million in acquired deposits related to the Woodsville acquisition complimented by 16% annualized quarter to date organic growth compared to the second quarter 2025. The increase was driven primarily by non-interest bearing demand and money market accounts.

Senior borrowings decreased $116.5 million at the end of third quarter 2025 to $140.0 million as loan paydowns, deposits and proceeds from investment portfolio sales were strategically utilized to decrease borrowing levels. $98.0 million in borrowings were acquired from Woodsville of which $15.0 million were paid off shortly after acquisition. $201 million of the Company's senior borrowings were paid down within the quarter. As a result of the acquisition, we took on $11.2 million of subordinated debt from Woodsville in the third quarter 2025.

The Company's book value per share was $31.22 as of the end of the third quarter 2025 compared to $30.60 at the end of the second quarter 2025. Tangible book value per share (non-GAAP) was $21.70 at the end of the third quarter 2025, compared to $22.58 at the end of the second quarter 2025.

RESULTS OF OPERATIONS (Quarter results for September 30, 2025 compared to September 30, 2024)

The net interest margin increased to 3.56% in the third quarter 2025 compared to 3.15% in the same respective quarter 2024. Loan income increased $6.4 million for the third quarter 2025 compared to the third quarter 2024 driven primarily by $4.6 million from the Woodsville acquisition and $1.2 million by rate changes on the commercial portfolio.

Total interest and dividend income increased by 15.1% or $7.3 million to $55.9 million in the third quarter 2025 compared to $48.6 million in the prior year primarily driven by the repricing of commercial adjustable-rate loans and $241.3 million higher average loan balances within the commercial real estate portfolio. Yields on earning assets grew to 5.36% compared to 5.24% in the third quarter 2024. The yield on commercial real estate loans grew to 5.88% in the third quarter 2025 from 5.67% in the third quarter 2024. Total loan yield growth was partially offset by a decrease in the commercial and industrial yields to 6.45% for the third quarter 2025 from 6.98% in the third quarter 2024. Consumer yield remained flat at 7.23% for the third quarter 2025 and 2024 respectively.

Total interest expense increased $659 thousand for deposits in the third quarter 2025 compared to the third quarter 2024. Deposit costs are up $245 thousand or 1.5% year over year driven by the acquisition of $531.3 million in deposits from Woodsville, offset by lower cost of funds on interest-bearing deposit yields at 2.12% from 2.45% for the third quarter ended 2024. Borrowing costs decreased $904 thousand or 26.2% driven by the $15 million in paydowns offset by $98 million in acquisition borrowings accompanied by lower borrowing rates at 4.04% for the third quarter 2025 compared to 4.38% for the third quarter 2024.

The Company also recorded a $4.0 million reserve on non-PCD loans established through provision expense.

Non-interest income increased $914 thousand in the third quarter 2025 to $10.6 million compared to $9.7 million in the same quarter 2024 primarily driven by customer service fees which increased $523 thousand driven by the Woodsville acquisition. Customer Derivative income increased $697 thousand year over year driven by timing of swaps and the interest rate environment. Trust management fee income decreased $226 thousand driven by financial service income timing.

Non-interest expenses increased $8.0 million to $32.7 million in the third quarter 2025 compared to $24.8 million in the third quarter 2024 driven by $4.9 million in acquisition expenses related to Woodsville. Salaries and benefits increased $1.6 million to $15.9 million in the third quarter 2025 compared to $14.4 million in the third quarter 2024 primarily due to cost-of-living adjustments, additional salary associated with the retained Woodsville personnel, and employee insurance costs. Occupancy and equipment increased $474 thousand driven by higher computer processing fees and maintenance contract costs. Professional services fees decreased $145 thousand driven by timing, while marketing increased $221 thousand and amortization of intangibles increased $233 thousand due to the acquisition closing in the third quarter 2025. Other expenses increased $520 thousand for the third quarter 2025 compared to the third quarter 2024 primarily due to increases in software expenses. Gain on sale of property increased year-over-year by $206 thousand driven by the sale of two properties in the third quarter 2025.

Income tax expense was $2.2 million for the third quarter 2025 compared to $1.4 million for the third quarter of 2024, respectively. Our GAAP effective tax rate third quarter 2025 and the third quarter 2024 was 20% compared to 10% and the effective tax rate on core earnings (Non-GAAP) was 22% and 20%, respectively. The current year increase in taxes and tax rate is driven by a prior year one-time multiple year tax refund on tax exempt loan income and a state apportionment adjustment.

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, (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.

CONTACTS

Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314

TABLE

INDEX

CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED)

Selected Financial Highlights

Balance Sheets

Loan and Deposit Analysis

Statements of Income

Statements of Income (Five Quarter Trend)

Average Yields and Costs

Average Balances

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

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

0.54

0.40

0.66

0.72

0.80

0.95

0.70

0.68

0.72

0.80

31.22

30.60

30.51

30.00

30.12

21.70

22.58

22.47

21.93

22.02

30.46

29.96

29.50

30.58

30.84

0.32

0.30

0.78

0.60

1.02

1.09

1.20

1.35

1.06

1.04

1.09

1.20

1.30

0.79

1.32

1.44

1.37

1.71

1.39

1.35

1.45

1.37

7.03

5.21

8.88

9.52

10.68

12.23

9.19

9.09

9.57

10.68

10.16

7.26

12.27

13.23

14.90

17.38

12.66

12.57

13.29

14.90

3.56

3.23

3.17

3.15

56.70

62.10

62.00

59.84

62.09

4,722

4,112

4,063

4,083

4,030

4,336

3,789

3,761

3,782

3,720

598

529

514

521

536

3,584

3,153

3,124

3,147

3,082

159

123

124

3,953

3,292

3,297

3,268

3,261

521

469

466

458

460

0.04

0.03

0.01

0.02

0.01

0.95

0.92

0.91

0.94

11.03

11.40

11.50

11.23

11.41

7.94

8.67

8.73

8.46

8.61

(1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.

(2) All performance ratios are based on average balance sheet amounts, where applicable.

(3) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.

(4) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.

(5) Current quarter annualized.

BAR HARBOR BANKSHARES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

47,320

50,948

33,802

34,266

39,877

93,971

36,087

54,329

37,896

41,343

141,291

87,035

88,131

72,162

81,220

597,810

528,690

513,961

521,018

535,892

(1,204

)

(568

)

597,810

528,690

512,757

520,450

535,892

8,560

12,695

10,695

12,237

7,600

5,545

2,829

1,515

1,235

1,272

3,583,716

3,152,664

3,124,240

3,147,096

3,081,735

(33,940

)

(28,885

)

(28,614

)

(28,744

)

(29,023

)

3,549,776

3,123,779

3,095,626

3,118,352

3,052,712

58,828

52,647

51,659

51,237

51,644

141,819

119,477

16,989

3,472

3,705

3,938

4,171

95,554

83,074

82,471

81,858

81,824

31,721

23,290

23,298

23,330

20,923

73,936

75,017

73,892

79,051

73,192

4,721,829

4,112,005

4,063,226

4,083,327

4,029,927

697,357

552,074

547,401

575,649

604,963

1,137,362

931,854

930,031

910,191

913,910

647,428

542,579

551,280

545,816

544,235

488,633

370,709

405,326

405,758

380,624

981,993

894,772

862,773

830,274

817,354

3,952,773

3,291,988

3,296,811

3,267,688

3,261,086

139,956

256,441

199,982

249,981

186,207

52,229

40,620

60,580

192,185

297,061

240,602

290,601

246,787

55,916

54,096

58,502

66,610

62,138

4,200,874

3,643,145

3,595,915

3,624,899

3,570,011

520,955

468,860

467,311

458,428

459,916

4,721,829

4,112,005

4,063,226

4,083,327

4,029,927

16,689

15,322

15,317

15,280

15,268

BAR HARBOR BANKSHARES

CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED

LOAN ANALYSIS

Organic Annualized

Growth %

Sept 30,

Acquired WGSB

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Quarter

Year

2025

Balances (1)

2025

2024

to Date

1,942,659

117,832

1,767,206

1,762,132

1,741,223

1,677,310

405,759

25,651

400,908

370,683

388,599

382,554

(21

)

2,348,418

143,483

2,168,114

2,132,815

2,129,822

2,059,864

1,025,266

248,484

796,184

807,514

826,492

836,566

(10

)

126,345

16,215

111,036

105,404

103,803

103,415

)

83,687

5,226

77,330

78,507

86,979

81,890

(13

)

3,583,716

413,408

3,152,664

3,124,240

3,147,096

3,081,735

Acquired Woodsville Guaranty Savings Bank (WGSB) Balances are as of August 1, 2025.

DEPOSIT ANALYSIS

Organic Annualized

Growth %

Sept 30,

Acquired

WGSB

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Quarter

Year

2025

Balances (1)

2025

2024

Date

697,357

89,274

552,074

547,401

575,649

604,963

1,137,362

185,802

931,854

930,031

910,191

913,910

647,428

104,792

542,579

551,280

545,816

544,235

)

488,633

52,470

370,709

405,326

405,758

380,624

2,970,780

432,338

2,397,216

2,434,038

2,437,414

2,443,732

981,993

98,951

894,772

862,773

830,274

817,354

)

3,952,773

531,289

3,291,988

3,296,811

3,267,688

3,261,086

Acquired Woodsville Guaranty Savings Bank (WGSB) Balances are as of August 1, 2025.

BAR HARBOR BANKSHARES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

48,426

42,042

132,956

122,146

6,355

5,515

17,112

16,665

217

258

566

745

924

765

1,514

1,685

55,922

48,580

152,148

141,241

16,419

16,174

47,442

45,486

2,544

3,448

8,845

10,983

18,963

19,622

56,287

56,469

36,959

28,958

95,861

84,772

636

3,749

228

4,220

1,102

33,210

28,730

91,005

83,670

3,903

4,129

12,082

11,992

4,311

3,788

11,425

11,235

(4,901

)

423

681

1,484

1,496

665

570

1,881

1,714

962

265

1,278

433

262

220

882

576

10,567

9,653

24,131

27,496

15,939

14,383

43,946

41,491

3,879

3,405

10,750

10,154

1,078

1,048

3,150

3,154

(206

)

(113

)

(263

)

514

386

1,453

1,186

296

441

1,402

1,079

246

189

606

570

655

434

1,855

1,522

466

233

932

699

462

451

1,382

1,351

4,978

6,422

145

(150

)

4,287

3,767

12,072

11,289

32,739

24,772

83,928

72,102

11,038

13,611

31,208

39,064

2,183

1,418

6,050

6,519

8,855

12,193

25,158

32,545

0.55

0.80

1.61

2.14

0.54

0.80

1.60

2.13

16,231

15,261

15,622

15,229

16,284

15,326

15,685

15,292

(1) The $4.9 million loss includes a $4.5 million loss on corporate debt securities and $549 thousand on a matured debt security.

BAR HARBOR BANKSHARES

CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

48,426

42,726

41,804

41,700

42,042

6,355

5,474

5,283

5,273

5,515

217

212

137

213

258

924

276

314

297

765

55,922

48,688

47,538

47,483

48,580

16,419

15,511

15,512

16,210

16,174

2,544

3,282

3,019

2,206

3,448

18,963

18,793

18,531

18,416

19,622

36,959

29,895

29,007

29,067

28,958

636

1,171

3,749

528

(57

)

(147

)

228

33,210

29,367

28,428

28,043

28,730

3,903

4,263

3,916

3,709

4,129

4,311

3,589

3,525

3,604

3,788

(4,942

)

423

605

456

597

681

665

602

614

590

570

962

104

212

495

265

262

425

195

397

220

10,567

4,646

8,918

9,392

9,653

15,939

14,274

13,733

13,358

14,383

3,879

3,546

3,325

3,634

3,405

1,078

1,023

1,049

1,042

1,048

(206

)

514

457

482

372

386

296

514

592

343

441

246

194

166

189

655

682

518

492

434

466

233

462

464

456

457

451

4,978

1,205

239

145

(74

)

(625

)

4,287

3,943

3,842

4,319

3,767

32,739

26,538

24,651

23,885

24,772

11,038

7,475

12,695

13,550

13,611

2,183

1,383

2,484

2,551

1,418

8,855

6,092

10,211

10,999

12,193

0.55

0.40

0.67

0.72

0.80

0.54

0.40

0.66

0.72

0.80

16,231

15,321

15,304

15,261

16,284

15,372

15,393

15,346

15,326

(1) The $4.9 million loss includes a $4.5 million loss on corporate debt securities and $549 thousand on a matured debt security.

BAR HARBOR BANKSHARES

AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED

Quarters Ended

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

4.49

4.68

4.55

4.92

5.54

4.14

3.86

3.80

3.69

3.86

7.71

7.20

4.78

12.07

10.10

5.88

5.76

5.58

5.61

5.67

6.45

6.41

6.57

6.62

6.98

4.42

4.14

4.22

4.13

4.11

7.23

6.98

7.03

6.89

7.23

5.60

5.48

5.42

5.40

5.49

5.36

5.23

5.16

5.14

5.24

1.42

1.44

1.41

1.42

1.48

0.64

0.71

0.72

0.70

2.59

2.75

2.77

2.94

3.13

3.64

3.91

4.11

4.30

4.39

2.12

2.28

2.31

2.41

2.45

4.04

4.85

4.61

4.20

4.38

2.27

2.51

2.52

2.54

2.66

3.09

2.72

2.64

2.60

2.58

3.56

3.23

3.17

3.15

(1) 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

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

81,709

23,643

27,999

24,000

54,897

631,572

591,462

587,878

591,455

591,331

11,168

11,804

11,623

7,023

10,158

1,887,267

1,766,720

1,759,321

1,699,869

1,645,933

483,380

469,816

469,331

458,157

473,049

963,311

804,469

820,837

836,375

851,426

120,941

109,023

104,413

103,681

101,230

3,454,899

3,150,028

3,153,902

3,098,082

3,071,638

4,179,348

3,776,937

3,781,402

3,720,560

3,728,024

38,709

29,861

29,972

32,771

34,036

(31,246

)

(28,786

)

(29,143

)

(29,021

)

(28,893

)

139,822

123,062

123,295

123,527

123,761

191,446

169,540

171,477

171,351

170,113

4,518,079

4,070,614

4,077,003

4,019,188

4,027,041

1,059,214

906,557

916,129

898,597

888,325

617,314

545,304

547,672

543,430

547,482

432,952

392,034

401,268

394,536

378,855

961,054

883,491

853,105

842,379

807,180

3,070,534

2,727,386

2,718,174

2,678,942

2,621,842

250,110

271,410

265,780

208,990

312,891

3,320,644

2,998,796

2,983,954

2,887,932

2,934,733

648,031

545,308

560,310

604,017

577,428

49,964

57,268

66,589

67,533

60,731

4,018,639

3,601,372

3,610,853

3,559,482

3,572,892

499,440

469,242

466,150

459,706

454,149

4,518,079

4,070,614

4,077,003

4,019,188

4,027,041

(1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.

(2) Average balances for available-for-sale debt securities are based on amortized cost.

(3) Total average loans include non-accruing loans and loans held for sale.

BAR HARBOR BANKSHARES

ASSET QUALITY ANALYSIS - UNAUDITED

At or for the Quarters Ended

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

697

1,033

1,091

1,321

1,451

1,221

1,344

1,354

1,098

1,218

6,541

6,411

4,557

3,290

3,453

1,051

944

1,084

1,285

978

9,510

9,732

8,086

6,994

7,100

2,403

4,960

5,760

11,913

12,135

13,046

12,754

7,100

0.27

0.31

0.26

0.22

0.23

0.25

0.30

0.32

0.31

0.18

28,885

28,614

28,744

29,023

28,855

(353

)

(266

)

(84

)

(150

)

(98

)

(316

)

(257

)

(73

)

(132

)

(60

)

1,622

3,749

528

(57

)

(147

)

228

33,940

28,885

28,614

28,744

29,023

0.95

0.92

0.91

0.94

357

297

354

411

409

(224

)

(204

)

(37

)

(84

)

(112

)

(59

)

(40

)

(51

)

(57

)

(316

)

(257

)

(73

)

(132

)

(60

)

0.04

0.03

0.01

0.02

0.01

0.02

0.01

1,204

568

(603

)

636

1,171

(1,204

)

1,204

568

BAR HARBOR BANKSHARES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED

At or for the Quarters Ended

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

8,855

6,092

10,211

10,999

12,193

(41

)

4,942

(206

)

3,954

4,978

1,205

239

(2,141

)

(1,492

)

(80

)

(17

)

6,544

4,658

249

15,399

10,750

10,460

11,053

12,193

36,959

29,895

29,007

29,067

28,958

10,567

4,646

8,918

9,392

9,653

47,526

34,541

37,925

38,459

38,611

(41

)

4,942

47,485

39,483

37,925

38,459

38,611

32,739

26,538

24,651

23,885

24,772

206

)

(90

)

(71

)

(4,978

)

(1,205

)

(239

)

(4,772

)

(1,208

)

(329

)

(71

)

27,967

25,330

24,322

23,814

24,772

47,526

34,541

37,925

38,459

38,611

32,739

26,538

24,651

23,885

24,772

14,787

8,003

13,274

14,574

13,839

47,485

39,483

37,925

38,459

38,611

27,967

25,330

24,322

23,814

24,772

19,518

14,153

13,603

14,645

13,839

4,179

3,777

3,781

3,721

3,728

4,518

4,071

4,077

4,019

4,027

499

469

466

460

454

360

346

343

336

330

362

346

343

335

336

4,563

3,989

3,940

3,960

3,906

BAR HARBOR BANKSHARES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA - UNAUDITED

At or for the Quarters Ended

Sept 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

(K)

16,689

15,322

15,317

15,280

15,268

(L)

16,284

15,372

15,393

15,346

15,326

(A/L)

0.95

0.70

0.68

0.72

0.80

(I/K)

21.70

22.58

22.47

21.93

22.02

(I/J)

7.94

8.67

8.73

8.46

8.61

0.78

0.60

1.02

1.09

1.20

(A/F)

1.35

1.06

1.04

1.09

1.20

(S/F)

1.30

0.79

1.32

1.44

1.37

(U/F)

1.71

1.39

1.35

1.45

1.37

7.03

5.21

8.88

9.52

10.68

(A/G)

12.23

9.19

9.09

9.57

10.68

10.16

7.26

12.27

13.23

14.90

(A+Q)/H

17.38

12.66

12.57

13.29

14.90

(D-O-Q)/(C+N)

56.70

62.10

62.00

59.84

62.09

(B+P)/E

3.56

3.23

3.17

3.15

(N)

727

706

717

718

686

(O)

158

141

131

139

138

(P)

563

560

568

578

550

(Q)

466

233

(1) Assumes a marginal tax rate of 24.65% for the third quarter 2025, 24.26% in the first and second quarters of 2025, 23.73% in the fourth quarter 2024, 23.82% in the second and third quarter 2024, 24.01% in the first quarter 2024.

(2) Non-GAAP financial measure.

(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.

(4) All performance ratios are based on average balance sheet amounts, where applicable.

(5) Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.

(6) The $4.9 million loss includes a $4.5 million loss on corporate debt securities and $549 thousand on a matured debt security.

SOURCE: Bar Harbor Bank & Trust