BAR HARBOR, ME / ACCESSWIRE / October 22, 2024 / Bar Harbor Bankshares (NYSE:BHB) (the "Company") reported third quarter 2024 GAAP and core (Non-GAAP) net income of $12.1 million or $0.80 per diluted share compared to GAAP and core (Non-GAAP) net income of $11.1 million or $0.73 per diluted share in the same quarter of 2023.

THIRD QUARTER 2024 HIGHLIGHTS

Return on assets of 1.20%
Core deposit growth of 18% annualized
Net interest margin of 3.15%
Non-accruing loans to total loans ratio of 0.23%
Wealth management related fee income growth of 17% year over year

Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard, stated, "Our teams continue to deliver consistent and resilient performance despite the many perspectives argued in the interest rate environment. Disciplined calling and focus on advancing market shares has guided our efforts regardless of the macroeconomic environment uncertainty. Even after backing out the one-time tax benefit described below, the earnings growth reported in the third quarter came in at a strong 8%.

As to fundamentals, we achieved an influx of core deposits which is somewhat typical for the summer months given our footprint, but is accentuated by our retail teams originating 1,554 accounts to new customers. This allowed us to more efficiently manage our total funding costs helping to expand the margin in the face of shifting customer expectations with regard to loan yield direction. Our established presence in wealth management has remained an intrinsic part of earnings consistency with wealth fee income up 17% year over year. In summary, the longstanding commitment to balancing growth with earnings has proven a sound foundation given ever-present changes throughout the industry and future economic sentiment. The level of teamwork in an unwavering culture combined with equal dedication to risk management will continue to drive our success for the remainder of the year."

DIVIDEND DECLARED

The Board of Directors of the Company voted to declare a cash dividend of $0.30 per share to shareholders of record at the close of business on November 14, 2024 payable on December 13, 2024. This dividend equates to a 3.89% annualized yield based on the $30.84 closing share price of the Company's common stock on September 30, 2024, the last trading day of the third quarter 2024.

FINANCIAL CONDITION (September 30, 2024 compared to June 30, 2024)

Total assets remained steady at $4.0 billion at the end of the third quarter 2024 compared to the second quarter 2024 primarily due to consistent loan growth, increased deposits and securities available for sale offset by lower borrowings and cash at the end of the third quarter.

Total cash and cash equivalents were $81.2 million at the third quarter 2024, compared to $101.8 million at end of the second quarter 2024. Interest-earning deposits held with other banks totaled $41.3 million at the third quarter 2024, compared to $62.2 million at end of the second quarter and yielded 5.54% and 5.65%, respectively. The change in cash balances was driven by utilization for loan originations and security purchases.

Total loans grew $17.6 million or 2% on an annualized basis. Commercial loans grew 1% primarily driven by a $42.7 million, or 10% annualized increase in commercial real estate partially offset by a $38.7 million, or 37% annualized, decrease in commercial and industrial loans driven by pay downs, payoffs and a mix shift to tax exempt and other. Residential real estate decreased by $18.2 million, or 8% annualized, compared to the second quarter 2024, as we focus on growing the portfolio with higher yielding commercial loans. Consumer loans increased $3.7 million, or 15% annualized, driven by continued growth in home equity line originations and drawdowns on established lines in the third quarter 2024.

Securities available for sale increased to $535.9 million compared to $512.9 million in the second quarter 2024 driven by $16.4 million in purchases partially offset by pay downs of $10.4 million, net amortization of $418 thousand, and matured and called securities of $96 thousand. Federal Home Loan Bank ("FHLB") stock decreased to $7.6 million in the third quarter 2024 compared to $14.8 million in the second quarter 2024 driven by $120.5 million in pay downs of FHLB borrowings. Fair value adjustments decreased the security portfolio by $52.3 million at the end of the third quarter compared to $68.5 million at the end of the second quarter. The weighted average yield of the total securities portfolio for the third quarter 2024 was 3.96% compared to 4.00% at the end of the previous quarter primarily due to the interest rate environment and change in the profile of the yield curve. As of the end of the second and third quarters 2024, respectively, our securities portfolio maintained an average life of nine and eight years with an effective duration of five years for both quarters and all securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.

The allowance for credit losses continued to build, standing at $29.0 million at the end of the third quarter 2024 compared to $28.9 million at the end of the second quarter 2024. Our allowance for credit losses continues to be driven by a combination of portfolio loan growth, nominal credit movement and general macroeconomic trends. Non-accruing loans increased during the third quarter 2024 to $7.1 million from $6.3 million in the second quarter 2024 driven by commercial real estate and consumer installment changes partially offset by commercial installment and residential real estate decreases. The increase in non-accruing loans was centered in one well-secured owner-occupied CRE credit ($759 thousand) that is carrying no associated specific reserve after being reviewed for impairment. Total non-accruing loans to total loans was 0.23% in the third quarter compared to 0.20% in the second quarter 2024 which remains below peer group medians and averages. Charge-offs and specific reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values.

Total deposits increased $120.6 million to $3.3 billion in the third quarter 2024 from $3.1 billion at the second quarter 2024. Non-maturity deposits increased 15% on an annualized basis, or $104.4 million, to $2.4 billion driven by a $51.9 million increase in non-interest bearing demand, a $31.8 million increase in interest-bearing demand, and a $21.4 million increase in money market balances. Average yields on interest-bearing deposits increased 10 points to 2.45%.

Senior borrowings decreased $143.1 million to $186.2 million from the second quarter 2024 driven by increased deposits and cash balances available to fund loan growth and investment purchases. FHLB borrowings decreased $120.5 million to $133.8 million at the end of the third quarter 2024 compared to $254.3 million at the end of the second quarter 2024. Borrowings under the Federal Reserve's Bank Term Funding Program decreased $20.0 million to $45 million at the end of the third quarter 2024 compared to $65 million at the end of the second quarter 2024. Total borrowing costs decreased from 4.57% at the end of the second quarter 2024 to 4.38% at the end of the third quarter 2024.

The Company's book value per share was $30.12 as of September 30, 2024 compared to $28.81 as of June 30, 2024. Tangible book value per share (non-GAAP) was $22.02 at the end of the third quarter 2024, compared to $20.68 at the end of the second quarter 2024.

RESULTS OF OPERATIONS (September 30, 2024 compared to September 30, 2023)

The net interest margin was 3.15% in the third quarter 2024 compared to 3.18% in the third quarter 2023. The decrease was primarily driven by 42% higher cost of funds driven by the interest rate environment and growth in deposits, partially offset by lower borrowing balances and costs. The yield on loans grew 52 basis points to 5.54% in the third quarter 2024, up from 5.02% in the same quarter 2023. Costs of interest-bearing deposits grew 64 basis points to 2.45% from 1.81% in the third quarter 2023 driven by the continued competitive pricing within the interest rate environment.

Total interest and dividend income increased by 9.5% to $48.6 million in the third quarter 2024 primarily driven by the repricing of adjustable-rate loans and originations of higher fixed-rate loans within the commercial portfolio. The yield on commercial real estate loans grew to 5.67% in the third quarter 2024 from 5.34% in the third quarter 2023. Commercial and industrial yield grew to 6.98% in the third quarter 2024 compared to 6.56% in the third quarter 2023. Yields on earning assets grew to 5.24% compared to 4.90% in the third quarter 2023.

Total interest expense increased by 23% to $19.6 million in the third quarter 2024 compared to $15.9 million in the third quarter 2023 driven by an increase in cost of funds compounded with a $120.6 million increase in deposits and a shift in the mix of deposits from non-maturity deposits to time deposits. Non-maturity deposits decreased $38.2 million and time deposits increased $158.9 million in 2024 compared to the third quarter 2023. Borrowings decreased $120.9 million from the third quarter 2023 with a 21 basis point decrease in yields to 4.38% in the third quarter 2024.

The provision for credit losses was $228 thousand compared to $673 thousand in the third quarter 2023 as net charge-offs remain stable and minimal and credit quality continues to remain strong. Total accruing delinquent loans were down to 0.10% in the third quarter of 2024 from 0.16% in the third quarter 2023 and total delinquent and non-accruing loans were down to 0.33% from 0.39%. Total non-accruing loans to total loans remains flat year over year at 0.23%.

Non-interest income was $9.7 million in the third quarter 2024 compared to $8.6 million in the same quarter 2023. Wealth management income grew 17.2% to $4.1 million compared to $3.5 million in the third quarter 2023. Assets under management grew 20% to $2.8 billion from $2.3 billion in the third quarter 2023 driven by higher security valuations and an 8% growth in the managed accounts. Mortgage banking income increased $266 thousand compared to the third quarter 2023 driven by increased margins on our held-for-sale mortgage business.

Non-interest expense was $24.8 million in the third quarter 2024 compared to $22.8 million in the third quarter 2023 driven by salary and benefits, and other expenses. Salary and benefit expenses increased 10.5%, or $1.4 million, from the third quarter 2023 driven in part by stock compensation due to a $7.21 per share increase in stock price and a lower discount on postretirement liabilities year over year. Other expenses increased to $4.2 million from $3.7 million in the third quarter 2023 primarily due to increases in media relations and corporate press releases, software expenses, and debit and ATM card expenses.

Income tax expense for the third quarter 2024 was $1.4 million compared to $3.2 million in the third quarter 2023. The decrease in taxes represents a one-time multiple year tax refund on tax exempt loan income and a state apportionment adjustment. Excluding one-time charges, our effective tax rate for the period ended September 30, 2024 was consistent with the prior year.

BACKGROUND

Bar Harbor Bankshares (NYSE: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) the potential impact of climate change; (17) changes in legislation or regulation and accounting principles, policies, and guidelines; (18) reductions in the market value or outflows of wealth management assets under management; 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,			Sep 30,
	2024			2024			2024			2023			2023
PER SHARE DATA
Net earnings, diluted	$	0.80		$	0.67		$	0.66		$	0.65		$	0.73
Core earnings, diluted ⁽¹⁾		0.80			0.66			0.66			0.68			0.73
Total book value		30.12			28.81			28.64			28.48			26.67
Tangible book value ⁽¹⁾		22.02			20.68			20.48			20.28			18.45
Market price at period end		30.84			26.88			26.48			29.36			23.63
Dividends		0.30			0.30			0.28			0.28			0.28

PERFORMANCE RATIOS ⁽²⁾
Return on assets		1.20	%		1.04	%		1.03	%		1.00	%		1.11	%
Core return on assets ⁽¹⁾		1.20			1.02			1.03			1.04			1.11
Pre-tax, pre-provision return on assets		1.37			1.36			1.32			1.34			1.49
Core pre-tax, pre-provision return on assets⁽¹⁾		1.37			1.33			1.32			1.39			1.49
Return on equity		10.68			9.46			9.32			9.43			10.72
Core return on equity ⁽¹⁾		10.68			9.25			9.32			9.82			10.72
Return on tangible equity		14.90			13.44			13.26			13.65			15.65
Core return on tangible equity ⁽¹⁾		14.90			13.15			13.27			14.21			15.65
Net interest margin, fully taxable equivalent ^{(1) (3)}		3.15			3.09			3.14			3.17			3.18
Efficiency ratio ⁽¹⁾		62.09			62.78			62.71			61.22			58.37

FINANCIAL DATA (In millions)
Total assets	$	4,030		$	4,034		$	3,959		$	3,971		$	3,984
Total earning assets ⁽⁴⁾		3,720			3,726			3,663			3,664			3,687
Total investments		543			528			538			547			524
Total loans		3,082			3,064			3,012			2,999			2,993
Allowance for credit losses		29			29			28			28			28
Total goodwill and intangible assets		124			124			124			124			125
Total deposits		3,261			3,140			3,127			3,141			3,140
Total shareholders' equity		460			439			436			432			404
Net income		12			10			10			10			11
Core earnings⁽¹⁾		12			10			10			10			11

ASSET QUALITY AND CONDITION RATIOS
Net charge-offs (recoveries)⁽⁵⁾/average loans		0.01	%		0.01	%		0.01	%		0.07	%		-	%
Allowance for credit losses/total loans		0.94			0.94			0.94			0.94			0.94
Loans/deposits		95			98			96			95			95
Shareholders' equity to total assets		11.41			10.88			11.01			10.88			10.15
Tangible shareholders' equity to tangible assets		8.61			8.06			8.13			8.00			7.25

(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

	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in thousands)	2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	39,877		$	39,673		$	30,770		$	42,221		$	41,210
Interest-earning deposits with other banks		41,343			62,163			45,449			52,621			81,606
Total cash and cash equivalents		81,220			101,836			76,219			94,842			122,816

Securities available for sale		535,892			512,928			527,603			534,574			509,453
Federal Home Loan Bank stock		7,600			14,755			9,960			12,788			14,834
Total securities		543,492			527,683			537,563			547,362			524,287

Loans held for sale		1,272			3,897			3,137			2,189			2,016

Total loans		3,081,735			3,064,181			3,011,672			2,999,049			2,992,791
Less: Allowance for credit losses		(29,023	)		(28,855	)		(28,355	)		(28,142	)		(28,011	)
Net loans		3,052,712			3,035,326			2,983,317			2,970,907			2,964,780

Premises and equipment, net		51,644			51,628			47,849			48,287			47,790
Other real estate owned		-			-			-			-			-
Goodwill		119,477			119,477			119,477			119,477			119,477
Other intangible assets		4,171			4,404			4,637			4,869			5,102
Cash surrender value of bank-owned life insurance		81,824			81,221			80,642			80,037			79,469
Deferred tax asset, net		20,923			24,750			23,849			22,979			28,328
Other assets		73,192			83,978			82,285			79,936			89,876
Total assets	$	4,029,927		$	4,034,200		$	3,958,975		$	3,970,885		$	3,983,941

Liabilities and shareholders' equity
Non-interest bearing demand	$	604,963		$	553,067		$	544,495		$	569,714		$	618,421
Interest-bearing demand		913,910			882,068			888,591			946,978			929,481
Savings		544,235			544,980			551,493			553,963			572,271
Money market		380,624			359,208			365,289			370,242			361,839
Time		817,354			801,143			777,208			700,260			658,482
Total deposits		3,261,086			3,140,466			3,127,076			3,141,157			3,140,494

Senior borrowings		186,207			329,349			269,437			271,044			307,070
Subordinated borrowings		60,580			60,541			60,501			60,461			60,422
Total borrowings		246,787			389,890			329,938			331,505			367,492

Other liabilities		62,138			64,937			66,247			66,164			71,747
Total liabilities		3,570,011			3,595,293			3,523,261			3,538,826			3,579,733

Total shareholders' equity		459,916			438,907			435,714			432,059			404,208
Total liabilities and shareholders' equity	$	4,029,927		$	4,034,200		$	3,958,975		$	3,970,885		$	3,983,941

Net shares outstanding		15,268			15,232			15,212			15,172			15,156

BAR HARBOR BANKSHARES
CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED

LOAN ANALYSIS

											Annualized
											Growth %
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Quarter			Year
(in thousands)	2024		2024		2024		2023		2023		to Date			to Date
Commercial real estate	$	1,677,310	$	1,634,658	$	1,574,802	$	1,552,061	$	1,548,835		10	%		11	%
Commercial and industrial		382,554		421,297		412,567		400,169		391,347		(37	)		(6	)
Total commercial loans		2,059,864		2,055,955		1,987,369		1,952,230		1,940,182		1			7

Residential real estate		836,566		854,718		873,213		889,904		896,757		(8	)		(8	)
Consumer		103,415		99,776		95,838		97,001		95,160		15			9
Tax exempt and other		81,890		53,732		55,252		59,914		60,692		*			49
Total loans	$	3,081,735	$	3,064,181	$	3,011,672	$	2,999,049	$	2,992,791		2	%		4	%

*Indicates ratio greater than 100%

DEPOSIT ANALYSIS

											Annualized
											Growth %
	Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Quarter			Year
(in thousands)	2024		2024		2024		2023		2023		to Date			to Date
Non-interest bearing demand	$	604,963	$	553,067	$	544,495	$	569,714	$	618,421		38	%		8	%
Interest-bearing demand		913,910		882,068		888,591		946,978		929,481		14			(5	)
Savings		544,235		544,980		551,493		553,963		572,271		(1	)		(2	)
Money market		380,624		359,208		365,289		370,242		361,839		24			4
Total non-maturity deposits		2,443,732		2,339,323		2,349,868		2,440,897		2,482,012		18			-
Time		817,354		801,143		777,208		700,260		658,482		8			22
Total deposits	$	3,261,086	$	3,140,466	$	3,127,076	$	3,141,157	$	3,140,494		15	%		5	%

BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2024		2023		2024			2023
Interest and dividend income
Loans	$	42,042	$	38,412	$	122,146		$	109,889
Securities and other		6,538		6,723		19,095			18,478
Total interest and dividend income		48,580		45,135		141,241			128,367
Interest expense
Deposits		16,174		11,415		45,486			25,270
Borrowings		3,448		4,534		10,983			14,215
Total interest expense		19,622		15,949		56,469			39,485
Net interest income		28,958		29,186		84,772			88,882
Provision for credit losses		228		673		1,102			2,221
Net interest income after provision for credit losses		28,730		28,513		83,670			86,661
Non-interest income
Trust and investment management fee income		4,129		3,522		11,992			10,882
Customer service fees		3,788		3,926		11,235			11,377
Gain on sales of securities, net		-		-		50			34
Mortgage banking income		681		415		1,496			1,072
Bank-owned life insurance income		570		515		1,714			2,166
Customer derivative income		265		43		433			258
Other income		220		186		576			588
Total non-interest income		9,653		8,607		27,496			26,377
Non-interest expense
Salaries and employee benefits		14,383		13,011		41,491			39,005
Occupancy and equipment		4,453		4,469		13,308			13,275
Gain on sales of premises and equipment, net		-		-		(263	)		(99	)
Outside services		386		376		1,186			1,156
Professional services		441		436		1,079			1,217
Communication		189		170		570			507
Marketing		434		326		1,522			1,211
Amortization of intangible assets		233		233		699			699
Acquisition, conversion and other expenses		-		-		20			20
Provision for unfunded commitments		35		45		(150	)		(85	)
Other expenses		4,218		3,742		12,640			11,604
Total non-interest expense		24,772		22,808		72,102			68,510
Income before income taxes		13,611		14,312		39,064			44,528
Income tax expense		1,418		3,208		6,519			9,621
Net income	$	12,193	$	11,104	$	32,545		$	34,907

Earnings per share:
Basic	$	0.80	$	0.73	$	2.14		$	2.31
Diluted		0.80		0.73		2.13			2.30

Weighted average shares outstanding:
Basic		15,261		15,155		15,229			15,135
Diluted		15,326		15,196		15,292			15,189

BAR HARBOR BANKSHARES
CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED

	Sep 30,		Jun 30,			Mar 31,			Dec 31,		Sep 30,
(in thousands, except per share data)	2024		2024			2024			2023		2023
Interest and dividend income
Loans	$	42,042	$	40,634		$	39,470		$	39,531	$	38,412
Securities and other		6,538		6,204			6,353			6,284		6,723
Total interest and dividend income		48,580		46,838			45,823			45,815		45,135
Interest expense
Deposits		16,174		14,780			14,532			12,962		11,415
Borrowings		3,448		4,299			3,236			4,060		4,534
Total interest expense		19,622		19,079			17,768			17,022		15,949
Net interest income		28,958		27,759			28,055			28,793		29,186
Provision for credit losses		228		585			289			687		673
Net interest income after provision for credit losses		28,730		27,174			27,766			28,106		28,513
Non-interest income
Trust and investment management fee income		4,129		4,193			3,670			3,401		3,522
Customer service fees		3,788		3,737			3,710			3,791		3,926
Gain on sales of securities, net		-		50			-			-		-
Mortgage banking income		681		558			257			515		415
Bank-owned life insurance income		570		583			561			533		515
Customer derivative income		265		168			-			151		43
Other income		220		168			188			305		186
Total non-interest income		9,653		9,457			8,386			8,696		8,607
Non-interest expense
Salaries and employee benefits		14,383		13,860			13,248			13,511		13,011
Occupancy and equipment		4,453		4,382			4,473			4,309		4,469
(Gain) loss on sales of premises and equipment, net		-		(248	)		(15	)		281		-
Outside services		386		462			338			515		376
Professional services		441		238			400			369		436
Communication		189		192			189			190		170
Marketing		434		521			567			485		326
Amortization of intangible assets		233		233			233			233		233
Acquisition, conversion and other expenses		-		-			20			263		-
Provision for unfunded commitments		35		-			(185	)		-		45
Other expenses		4,218		4,202			4,220			4,057		3,742
Total non-interest expense		24,772		23,842			23,488			24,213		22,808
Income before income taxes		13,611		12,789			12,664			12,589		14,312
Income tax expense		1,418		2,532			2,569			2,644		3,208
Net income	$	12,193	$	10,257		$	10,095		$	9,945	$	11,104

Earnings per share:
Basic	$	0.80	$	0.67		$	0.66		$	0.66	$	0.73
Diluted		0.80		0.67			0.66			0.65		0.73

Weighted average shares outstanding:
Basic		15,261		15,227			15,198			15,164		15,155
Diluted		15,326		15,275			15,270			15,221		15,196

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

	Quarters Ended
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2024			2024			2024			2023			2023
Earning assets
Interest-earning deposits with other banks		5.54	%		5.65	%		5.88	%		6.42	%		5.02	%
Securities available for sale and FHLB stock		3.96			4.00			4.02			3.85			3.87
Loans:
Commercial real estate		5.67			5.61			5.47			5.46			5.34
Commercial and industrial		6.98			6.76			6.68			6.66			6.56
Residential real estate		4.11			4.13			4.09			3.94			3.84
Consumer		7.23			7.26			7.22			7.14			6.88
Total loans		5.49			5.41			5.31			5.24			5.11
Total earning assets		5.24	%		5.18	%		5.10	%		5.02	%		4.90	%

Funding liabilities
Deposits:
Interest-bearing demand		1.48	%		1.39	%		1.34	%		1.33	%		1.11	%
Savings		0.70			0.65			0.63			0.48			0.42
Money market		3.13			2.93			3.07			2.80			2.55
Time		4.39			4.33			4.18			3.93			3.65
Total interest-bearing deposits		2.45			2.35			2.26			2.05			1.81
Borrowings		4.38			4.57			4.35			4.64			4.59
Total interest-bearing liabilities		2.66	%		2.64	%		2.48	%		2.37	%		2.19	%

Net interest spread		2.58			2.54			2.62			2.65			2.71
Net interest margin, fully taxable equivalent⁽¹⁾		3.15			3.09			3.14			3.17			3.18

(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
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in thousands)	2024			2024			2024			2023			2023
Assets
Interest-earning deposits with other banks⁽¹⁾	$	54,897		$	27,407		$	36,608		$	36,794		$	70,499
Securities available for sale and FHLB stock ⁽²⁾		601,489			606,779			604,658			608,793			620,851
Loans:
Commercial real estate		1,645,933			1,600,253			1,558,506			1,554,961			1,550,188
Commercial and industrial		473,049			468,052			464,762			457,642			439,915
Residential real estate		851,426			865,412			884,767			898,147			909,296
Consumer		101,230			97,371			96,163			95,193			96,362
Total loans ⁽³⁾		3,071,638			3,031,088			3,004,198			3,005,943			2,995,761
Total earning assets		3,728,024			3,665,274			3,645,464			3,651,530			3,687,111
Cash and due from banks		34,036			30,809			29,900			34,741			36,713
Allowance for credit losses		(28,893	)		(28,567	)		(28,122	)		(28,057	)		(27,473	)
Goodwill and other intangible assets		123,761			123,994			124,225			124,459			124,926
Other assets		170,113			168,239			166,538			157,159			162,801
Total assets	$	4,027,041		$	3,959,749		$	3,938,005		$	3,939,832		$	3,984,078

Liabilities and shareholders' equity
Deposits:
Interest-bearing demand	$	888,325		$	858,657		$	899,349		$	916,314		$	915,072
Savings		547,482			542,950			552,231			552,932			579,090
Money market		378,855			355,731			390,720			365,142			358,742
Time		807,180			775,932			738,683			670,628			645,285
Total interest-bearing deposits		2,621,842			2,533,270			2,580,983			2,505,016			2,498,189
Borrowings		312,891			378,121			298,918			347,459			391,976
Total interest-bearing liabilities		2,934,733			2,911,391			2,879,901			2,852,475			2,890,165
Non-interest bearing demand deposits		577,428			546,448			554,816			604,638			610,644
Other liabilities		60,731			65,712			67,327			64,092			72,409
Total liabilities		3,572,892			3,523,551			3,502,044			3,521,205			3,573,218
Total shareholders' equity		454,149			436,198			435,961			418,627			410,860
Total liabilities and shareholders' equity	$	4,027,041		$	3,959,749		$	3,938,005		$	3,939,832		$	3,984,078

(1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.
(2) Average balances for securities available-for-sale 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
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in thousands)	2024			2024			2024			2023			2023
NON-PERFORMING ASSETS
Non-accruing loans:
Commercial real estate	$	1,451		$	551		$	578		$	610		$	867
Commercial and industrial		1,218			1,301			1,152			363			1,595
Residential real estate		3,453			3,511			4,169			3,742			3,673
Consumer		978			914			971			813			635
Total non-accruing loans		7,100			6,277			6,870			5,528			6,770
Other real estate owned		-			-			-			-			-
Total non-performing assets	$	7,100		$	6,277		$	6,870		$	5,528		$	6,770

Total non-accruing loans/total loans		0.23	%		0.20	%		0.23	%		0.18	%		0.23	%
Total non-performing assets/total assets		0.18			0.16			0.17			0.14			0.17

PROVISION AND ALLOWANCE FOR CREDIT LOSSES
Balance at beginning of period	$	28,855		$	28,355		$	28,142		$	28,011		$	27,362
Charged-off loans		(98	)		(106	)		(113	)		(632	)		(74	)
Recoveries on charged-off loans		38			21			37			76			50
Net loans (charged-off) recovered		(60	)		(85	)		(76	)		(556	)		(24	)
Provision for credit losses		228			585			289			687			673
Balance at end of period	$	29,023		$	28,855		$	28,355		$	28,142		$	28,011

Allowance for credit losses/total loans		0.94	%		0.94	%		0.94	%		0.94	%		0.94	%
Allowance for credit losses/non-accruing loans		409			460			413			509			414

NET LOAN (CHARGE-OFFS) RECOVERIES
Commercial real estate	$	-		$	-		$	(3	)	$	-		$	-
Commercial and industrial		(8	)		(2	)		(64	)		(479	)		34
Residential real estate		5			3			5			3			13
Consumer		(57	)		(86	)		(14	)		(80	)		(71	)
Total, net	$	(60	)	$	(85	)	$	(76	)	$	(556	)	$	(24	)

Net charge-offs (recoveries) (QTD annualized)/average loans		0.01	%		0.01	%		0.01	%		0.07	%		-	%
Net charge-offs (recoveries) (YTD annualized)/average loans		0.01			0.01			0.01			0.02			0.01

DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS
30-89 Days delinquent		0.09	%		0.10	%		0.14	%		0.11	%		0.13	%
90+ Days delinquent and still accruing		0.01			-			-			0.01			0.03
Total accruing delinquent loans		0.10			0.10			0.14			0.12			0.16
Non-accruing loans		0.23			0.20			0.23			0.18			0.23
Total delinquent and non-accruing loans		0.33	%		0.30	%		0.37	%		0.30	%		0.39	%

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,			Sep 30,
(in thousands)		2024		2024			2024			2023			2023
Net income		$	12,193	$	10,257		$	10,095		$	9,945		$	11,104
Non-core items:
Gain on sale of securities, net			-		(50	)		-			-			-
(Gain) loss on sale of premises and equipment, net			-		(248	)		(15	)		281			-
Acquisition, conversion and other expenses			-		-			20			263			-
Income tax expense ⁽¹⁾			-		71			(1	)		(131	)		-
Total non-core items			-		(227	)		4			413			-
Core earnings ⁽²⁾	(A)	$	12,193	$	10,030		$	10,099		$	10,358		$	11,104

Net interest income	(B)	$	28,958	$	27,759		$	28,055		$	28,793		$	29,186
Non-interest income			9,653		9,457			8,586			8,850			8,815
Total revenue			38,611		37,216			36,641			37,643			38,001
Gain on sale of securities, net			-		(50	)		-			-			-
Total core revenue ⁽²⁾	(C)	$	38,611	$	37,166		$	36,641		$	37,643		$	38,001

Total non-interest expense			24,772		23,842			23,688			24,367			23,016
Non-core expenses:
Gain (loss) on sale of premises and equipment, net			-		248			15			(281	)		-
Acquisition, conversion and other expenses			-		-			(20	)		(263	)		-
Total non-core expenses			-		248			(5	)		(544	)		-
Core non-interest expense ⁽²⁾	(D)	$	24,772	$	24,090		$	23,683		$	23,823		$	23,016

Total revenue			38,611		37,216			36,641			37,643			38,001
Total non-interest expense			24,772		23,842			23,688			24,367			23,016
Pre-tax, pre-provision net revenue		$	13,839	$	13,374		$	12,953		$	13,276		$	14,985

Core revenue⁽²⁾			38,611		37,166			36,641			37,643			38,001
Core non-interest expense⁽²⁾			24,772		24,090			23,683			23,823			23,016
Core pre-tax, pre-provision net revenue⁽²⁾	(U)	$	13,839	$	13,076		$	12,958		$	13,820		$	14,985

(in millions)
Average earning assets	(E)	$	3,728	$	3,665		$	3,645		$	3,652		$	3,687
Average assets	(F)		4,027		3,960			3,938			3,940			3,984
Average shareholders' equity	(G)		454		436			436			419			411
Average tangible shareholders' equity ^{(2) (3)}	(H)		330		312			312			294			286
Tangible shareholders' equity, period-end ^{(2) (3)}	(I)		336		315			312			308			280
Tangible assets, period-end ^{(2) (3)}	(J)		3,906		3,910			3,835			3,847			3,859

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,			Sep 30,
(in thousands)		2024			2024			2024			2023			2023
Common shares outstanding, period-end	(K)		15,268			15,232			15,212			15,172			15,156
Average diluted shares outstanding	(L)		15,326			15,275			15,270			15,221			15,196

Core earnings per share, diluted ⁽²⁾	(A/L)	$	0.80		$	0.66		$	0.66		$	0.68		$	0.73
Tangible book value per share, period-end ⁽²⁾	(I/K)		22.02			20.68			20.48			20.28			18.45
Tangible shareholders' equity/total tangible assets ⁽²⁾	(I/J)		8.61			8.06			8.13			8.00			7.25

Performance ratios ⁽⁴⁾
GAAP return on assets			1.20	%		1.04	%		1.03	%		1.00	%		1.11	%
Core return on assets ⁽²⁾	(A/F)		1.20			1.02			1.03			1.04			1.11
Pre-tax, pre-provision return on assets			1.37			1.36			1.32			1.34			1.49
Core pre-tax, pre-provision return on assets⁽²⁾	(U/F)		1.37			1.33			1.32			1.39			1.49
GAAP return on equity			10.68			9.46			9.32			9.43			10.72
Core return on equity ⁽²⁾	(A/G)		10.68			9.25			9.32			9.82			10.72
Return on tangible equity			14.90			13.44			13.26			13.65			15.65
Core return on tangible equity ^{(1) (2)}	(A+Q)/H		14.90			13.15			13.27			14.21			15.65
Efficiency ratio ^{(2) (5)}	(D-O-Q)/(C+N)		62.09			62.78			62.91			61.38			58.59
Net interest margin, fully taxable equivalent ⁽²⁾	(B+P)/E		3.15			3.09			3.14			3.17			3.18

Supplementary data (in thousands)
Taxable equivalent adjustment for efficiency ratio	(N)	$	686		$	528		$	523		$	561		$	565
Franchise taxes included in non-interest expense	(O)		138			191			70			141			186
Tax equivalent adjustment for net interest margin	(P)		550			389			388			395			405
Intangible amortization	(Q)		233			233			233			233			233

(1) Assumes a marginal tax rate of 23.82% in the second and third quarter 2024, 24.01% in the first quarter 2024 and the fourth quarter 2023, and 23.80% in the first three quarters of 2023.
(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.

SOURCE: Bar Harbor Bank & Trust

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Bar Harbor Bankshares Reports Third Quarter 2024 Results; Declares Dividend