Bar Harbor Bankshares (NYSE American:BHB) reported third-quarter 2026 GAAP net income of $16.1 million, or $0.96 per diluted share, alongside core earnings of $17.5 million, or $1.04 per diluted share. The company also declared a cash dividend of $0.34 per share.
The results cover the quarter ended September 30, 2026, and were announced on October 22, 2026. In the second quarter of 2026, the company recorded GAAP net income of $15.2 million, or $0.91 per diluted share, and core earnings of $15.4 million, or $0.92 per diluted share.
#Quarterly performance
Bar Harbor Bankshares reported a net interest margin of 3.77% for the third quarter, compared with 3.61% in the second quarter. Return on assets was 1.35%, while core return on assets, a non-GAAP measure, was 1.47%.
Return on equity was 11.69%, and core return on equity was 12.70%. The company reported a non-GAAP efficiency ratio of 55.26%, compared with 55.76% in the second quarter.
Compared with the third quarter of 2025, total interest and dividend income rose to $58.4 million from $55.9 million. Total interest expense decreased to $17.7 million from $19.0 million. The cost of interest-bearing deposits fell to 1.87% from 2.12%, while the loan yield increased to 5.64% from 5.60%.
Non-interest income was $10.8 million, compared with $10.6 million in the same quarter of 2025. Non-interest expenses declined to $31.4 million from $32.7 million, partly because the prior-year period included acquisition expenses. Salaries and employee benefits increased 3% to $16.4 million, while other expenses included a $1.0 million write-down on other real estate owned.
#Deposits, borrowings and financial condition
Total assets decreased by less than 1% to $4.7 billion at September 30, 2026. Cash and cash equivalents fell to $74.8 million from $104.4 million at the end of the second quarter, with the company attributing the change primarily to paydowns of wholesale funds.
Available-for-sale debt securities stood at $581.3 million, down from $601.8 million. Portfolio unrealized losses increased to $72.9 million from $45.0 million, which the company attributed to the current interest rate environment. All securities remained classified as available for sale at the end of the third quarter.
Total deposits increased $84.0 million to $3.9 billion. Interest-bearing demand deposits rose $107.2 million, while non-interest-bearing demand deposits increased $24.6 million. The company said growth in non-maturity deposits included $31.7 million in new customer deposits.
Total borrowings decreased $123.7 million to $157.4 million. The reduction reflected paydowns of wholesale borrowings and a $20.0 million subordinated debt redemption.
#Loan portfolio and credit measures
Total loans remained at $3.6 billion in both the third and second quarters. Commercial real estate loans increased $21.9 million, while commercial and industrial loans declined $21.6 million. Residential real estate loans decreased $9.6 million.
The allowance for credit losses on loans was $31.8 million at the end of the third quarter, compared with $32.2 million at the end of the second quarter. The quarter included a $167 thousand recapture of provision for credit losses on loans. Net charge-offs were $303 thousand, and the net charge-off to average loans ratio was 0.03%.
The company’s book value per share was $31.95, down from $32.80 in the second quarter. Tangible book value per share, a non-GAAP measure, was $22.61, compared with $23.43.
#Management comments and dividend
Curtis C. Simard, president and chief executive officer of Bar Harbor Bankshares, said the company’s Retail teams opened more than 1,600 new customer accounts during the quarter. He also said deposits grew 9% on an annualized basis, contributing to a lower overall cost of funds and reduced reliance on wholesale borrowings.
Simard said wealth management remained a significant contributor to the organization and that the company was adding seasoned recruits to its commercial and industrial lending team. These comments are management’s statements about the company’s operations and plans.
The board declared a cash dividend of $0.34 per share. Shareholders recorded at the close of business on November 19, 2026, are scheduled to receive the payment on December 18, 2026.
The company said the dividend equates to a 3.52% annualized yield based on the $38.69 closing share price on September 30, 2026, the last trading day of the third quarter.
#Company background
Bar Harbor Bankshares is the parent company of wholly owned Bar Harbor Bank & Trust. The bank provides full-service community banking through offices in Maine, New Hampshire and Vermont. The company was founded in 1887.
Core earnings, core earnings per share and other adjusted measures cited by the company are non-GAAP financial measures. Bar Harbor Bankshares says these measures should be considered alongside its GAAP results and may not be comparable with similarly titled measures reported by other companies.
#Key Takeaways
- Third-quarter 2026 GAAP net income was $16.1 million, or $0.96 per diluted share.
- Core earnings were $17.5 million, or $1.04 per diluted share.
- Total deposits rose to $3.9 billion, while total borrowings fell to $157.4 million.
- Portfolio unrealized losses increased to $72.9 million at September 30, 2026.
- The board declared a $0.34 per-share dividend payable on December 18, 2026, to shareholders of record on November 19, 2026.
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