EX-99.1 2 bhb-20260421xex99d1.htm EX-99.1

Exhibit 99.1

Bar Harbor Bankshares Reports First Quarter 2026 Results; Declares Increased Dividend; Announces Share Repurchase Plan

BAR HARBOR, MAINE – April 21, 2026 - Bar Harbor Bankshares (NYSE American: BHB) (the “Company”) reported first quarter 2026 GAAP net income of $13.5 million or $0.81 per diluted share and core earnings (Non-GAAP) of $14.7 million or $0.88 per diluted share compared to GAAP net income of $11.8 million or $0.70 per diluted share and core earnings (Non-GAAP) of $15.5 million or $0.93 per diluted share in the fourth quarter of 2025.

FIRST QUARTER 2026 HIGHLIGHTS (all comparisons to fourth quarter 2025, unless otherwise noted)

•

Net interest margin of 3.54%

•

1.18% return on assets; 1.28% core return on assets (Non-GAAP)

•

10.13% return on equity; 11.03% core return on equity (Non-GAAP)

•

56.92% efficiency ratio(Non-GAAP), compared to 57.24%

Bar Harbor Bankshares’ President and Chief Executive Officer, Curtis C. Simard, stated, “We are pleased to announce our first quarter financial results that showcase a strong start to the year. We continue our commitment to profitable growth and maintaining a stable net interest margin. Our calling culture continues to pay off, as we saw over 1,500 accounts to new customer opened during the quarter. The Company continues to build long-term shareholder value which has once again enabled us to increase our dividend per share by 6% over last year’s dividend amount, and approve our annual resolution for a stock buyback program of up to 5% of the total outstanding shares. We are well-positioned and looking forward to the rest of the year ahead.”

DIVIDEND DECLARED AND STOCK REPURCHASE PLAN APPROVED

The Board of Directors of the Company voted to declare a cash dividend of $0.34 per share to shareholders of record at the close of business on May 21, 2026, payable on June 18, 2026. This represents an increase in the cash dividend of $0.02 per share from $0.32 per share last quarter. The dividend equates to a 4.19% annualized yield based on the $32.45 closing share price of the Company’s common stock on March 31, 2026, the last trading day of the first quarter 2026. Additionally, the Board authorized the repurchase of up to 5% of the Company’s outstanding common stock, representing approximately 837,000 shares as of March 31, 2026 under a share repurchase plan (the “Plan”). The Plan, which remains subject to regulatory approval, is authorized to last no longer than twelve months.

FINANCIAL CONDITION (Quarter results for March 31, 2026 compared to December 31, 2025)

Total assets remained constant at $4.7 billion at the end of the first quarter 2026, the less than 1% change was primarily due to increased deposits offset by paydowns in total borrowings and loans during the quarter.

Total cash and cash equivalents were $82.2 million at the end of the first quarter 2026, compared to $80.8 million at the end of the fourth quarter 2025. Interest-earning deposits with other banks increased to $46.6 million at the end of the first quarter 2026, compared to $35.9 million at the end of the fourth quarter 2025 and yielded 3.90% and 4.53%, respectively. The increase in cash balances was driven primarily by loan payoffs during the quarter.

Available-for-sale debt securities were $598.0 million compared to $597.4 million at the end of the fourth quarter 2025. Portfolio unrealized losses increased to $45.7 million at quarter-end compared to $41.7 million at the end of the fourth quarter 2025 due to the interest rate environment. During the quarter there were purchases of $25.2 million, paydowns and calls of $19.3 million and net accretion of $411 thousand. The quarter-to-date weighted average yield of the securities portfolio was 4.05% compared to 4.03% at the end of the fourth quarter 2025. As of the first quarter 2026 and the fourth quarter 2025, our securities portfolio had an average life of 7.6 years and 7.1 years respectively, with an effective duration of 5.4 years and 5.2 years, respectively. At the end of the first quarter 2026 all securities remain classified as available for sale.

Federal Home Loan Bank stock decreased $1.7 million to $9.6 million at the end of the first quarter 2026 compared to $11.3 million at the end of the fourth quarter 2025 primarily driven by the decrease in wholesale borrowings.

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Total loans decreased $20.6 million to $3.6 billion in the first quarter 2026 compared to the fourth quarter 2025 driven primarily by commercial real estate payoffs. Commercial real estate loans decreased $30.2 million primarily due to one early payoff of $14.4 million and $24.4 million in loans that matured and paid off during the quarter. Commercial and industrial loans increased 24% on an annualized basis and included $16.6 million of originations during the quarter. Residential real estate loans decreased $8.1 million during the quarter primarily driven by increased prepayment activity and offset in part by a $12.0 million residential loan purchase. Loans held for sale were $11.5 million in the first quarter 2026 compared to $5.3 million in the fourth quarter 2025 as we originated $23.6 million in loans held for sale and sold $16.2 million in loans during the quarter.

The allowance for credit losses (“ACL”) on loans remained stable at $34.3 million at the end of the first quarter 2026 compared to $34.1 million at the end of the fourth quarter 2025. The allowance for credit losses to total loans coverage ratio for the first quarter 2026 was in line with the fourth quarter 2025 at 0.96% versus 0.94%.

Premises and equipment increased in the first quarter 2026 to $58.9 million compared to $58.2 million at the end of the fourth quarter 2025 driven by renovation projects.

Bank owned life insurance decreased $6.4 million or 7% driven by death benefit pay outs that occurred at the end of the first quarter 2026 offset by increases in cash surrender value.

Total deposits were $3.9 billion at the end of the first quarter 2026 compared to $3.8 billion at the end of the fourth quarter of 2025. The increase was driven primarily by $17.2 million in new customer non-maturity deposits. Time deposits increased $8.2 million during the quarter due to $4.8 million in new customer time deposits and an $18.0 million increase in brokered deposits, which was offset in part by maturities.

Total borrowings decreased $53.9 million in the first quarter 2026 to $215.7 million compared to $269.6 million in the fourth quarter 2025. The decrease was driven by cash inflows from loan payoffs and increased deposits.

The Company's book value per share was $32.13 at the end of the first quarter 2026 compared to $31.88 at the end of the fourth quarter 2025. Tangible book value per share (non-GAAP) was $22.71 at the end of the first quarter 2026, compared to $22.41 at the end of the fourth quarter 2025.

RESULTS OF OPERATIONS (Quarter results for March 31, 2026 compared to March 31, 2025)

The net interest margin was 3.54% in the first quarter 2026 compared to 3.17% in the same quarter 2025. As loan balances grew year-over-year the yield on loans expanded 8 basis points to 5.50% compared to 5.42% in the same period of 2025. Interest-bearing deposit costs decreased year-over-year to 2.19% compared to 2.52% in the same period of 2025.

Total interest and dividend income increased by 16% or $7.7 million to $55.3 million in the first quarter 2026 compared to $47.5 million in the prior year. Yields on earning assets grew to 5.27% in the first quarter 2026 compared to 5.16% in the first quarter 2025. The increase is driven by year-over-year loan yield expansion primarily due to the acquisition of $413.4 million in loans from the acquisition of Woodsville Guaranty Savings Bank (“Woodsville”). The yield on commercial real estate loans grew to 5.68% in the first quarter 2026 from 5.58% in the first quarter 2025. The residential loan yield increased to 4.64% for the first quarter 2026 from 4.22% in the first quarter of 2025. Total loan yield growth was partially offset by a decrease in the commercial and industrial yield to 6.13% for the first quarter 2026 from 6.57% in the first quarter 2025 driven by the decrease in rates of adjustable-rate loans.

Total interest expense decreased $153 thousand in the first quarter 2026 compared to the first quarter 2025. Deposit costs were down $623 thousand year-over-year. Borrowing costs increased $470 thousand, or 16% year-over-year, driven by the subordinated debt acquired from Woodsville.

The provision for credit losses on loans in the first quarter 2026 was $305 thousand compared to a recapture of $57 thousand in the same period of 2025. The provision reflects minimal net charge-offs of $42 thousand while credit quality remains strong. There was no provision for investment losses in the current year compared to a $636 thousand provision in the first quarter 2025. We had a loss on available-for-sale debt securities of $1.0 million during the first quarter 2026. The loss relates to a write-down on a previously identified corporate bond with continued deteriorated credit quality that the Company does not intend to hold until recovery of the amortized cost basis.

Non-interest income increased $1.5 million in the first quarter 2026 to $10.4 million compared to $8.9 million in the same quarter 2025 primarily driven by a $1.3 million gain on death benefit from bank owned life insurance. Trust management fee income increased $199 thousand driven by the 7%, or $183.5 million, increase in assets under management compared to the same period of 2025. As noted above there was an additional write-down on one corporate debt security resulting in a loss on available-for-sale debt securities of $1.0 million during the first quarter 2026.

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Non-interest expenses increased $5.2 million to $29.8 million in the first quarter 2026 compared to $24.7 million in the first quarter 2025 driven by $1.5 million in expenses related to the Woodsville acquisition. Salaries and benefits increased $2.0 million to $15.8 million in the first quarter 2026 compared to $13.7 million in the first quarter 2025 primarily due to additional salary costs associated with the retained Woodsville personnel. Occupancy and equipment increased $711 thousand driven primarily by higher maintenance contract costs from the acquisition of Woodsville. Amortization of intangibles increased $349 thousand due to the acquisition of Woodsville. Other expenses increased $854 thousand for the first quarter 2026 compared to the first quarter 2025 primarily due to increases in software expenses. Loss on sale of premises and equipment was $134 thousand in the first quarter 2026 driven by a building sale.

Income tax expense was $3.6 million for the first quarter 2026 compared to $2.5 million for the first quarter of 2025, respectively. Our GAAP effective tax rate for the first quarter 2026 was 21.09% and 19.57% in the first quarter 2025 and the effective tax rate on core earnings (Non-GAAP) was 21.89% and 22.98%, respectively.

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 ongoing armed conflicts, inflation, current or future United States government shutdowns, 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.

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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

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BAR HARBOR BANKSHARES

SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED


		At or for the Quarters Ended
		Mar 31,				Dec 31,			Sept 30,			Jun 30,			Mar 31,
		2026				2025			2025			2025			2025
PER SHARE DATA
Net earnings, diluted		$	0.81		$	0.70		$	0.54		$	0.40		$	0.66
Core earnings, diluted ⁽¹⁾			0.88			0.93			0.95			0.70			0.68
Total book value			32.13			31.88			31.22			30.60			30.51
Tangible book value ⁽¹⁾			22.71			22.41			21.70			22.58			22.47
Market price at period end			32.45			31.05			30.46			29.96			29.50
Dividends			0.32			0.32			0.32			0.32			0.30

PERFORMANCE RATIOS ⁽²⁾
Return on assets			1.18	%		1.00	%		0.78	%		0.60	%		1.02	%
Core return on assets ⁽¹⁾			1.28			1.32			1.35			1.06			1.04
Pre-tax, pre-provision return on assets⁽¹⁾			1.52			1.29			1.30			0.79			1.32
Core pre-tax, pre-provision return on assets⁽¹⁾			1.65			1.71			1.71			1.39			1.35
Return on equity			10.13			8.76			6.99			5.21			8.88
Core return on equity ⁽¹⁾			11.03			11.55			12.16			9.19			9.09
Return on tangible equity⁽¹⁾			14.77			12.94			10.07			7.26			12.27
Core return on tangible equity ⁽¹⁾			16.03			16.91			17.23			12.66			12.57
Net interest margin, fully taxable equivalent ^{(1) (3)}			3.54			3.62			3.56			3.23			3.17
Efficiency ratio ⁽¹⁾			56.92			57.24			56.70			62.10			62.00

FINANCIAL DATA (In millions)
Total assets		$	4,676		$	4,684		$	4,717		$	4,112		$	4,063
Total earning assets ⁽⁴⁾			4,297			4,297			4,336			3,789			3,761
Total available-for-sale debt securities			598			597			598			529			514
Total loans			3,585			3,606			3,584			3,153			3,124
Allowance for credit losses			34			34			34			29			30
Total goodwill and intangible assets			158			158			159			123			123
Total deposits			3,868			3,821			3,948			3,292			3,297
Total shareholders' equity			538			533			521			469			466
Net income			14			12			9			6			10
Core earnings⁽¹⁾			15			16			15			11			10

ASSET QUALITY AND CONDITION RATIOS
Net charge-offs (recoveries)⁽⁵⁾/average loans			—	%		0.03	%		0.04	%		0.03	%		0.01	%
Allowance for credit losses on loans/total loans			0.96			0.94			0.95			0.92			0.92
Loans/deposits			93			94			91			96			95
Shareholders' equity to total assets			11.50			11.37			11.04			11.40			11.50
Tangible shareholders' equity to tangible assets			8.42			8.27			7.94			8.67			8.73

(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


		Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands)		2026			2025			2025			2025			2025
Assets
Cash and due from banks		$	35,595		$	44,947		$	42,743		$	50,948		$	33,802
Interest-earning deposits with other banks			46,620			35,890			93,971			36,087			54,329
Total cash and cash equivalents			82,215			80,837			136,714			87,035			88,131

Available-for-sale debt securities			597,977			597,424			597,810			528,690			513,961
Less: Allowance for credit losses on available-for-sale debt securities			—			—			—			—			(1,204)
Net available-for-sale debt securities			597,977			597,424			597,810			528,690			512,757

Federal Home Loan Bank stock			9,567			11,308			8,560			12,695			10,695

Loans held for sale			11,534			5,283			5,545			2,829			1,515

Total loans			3,585,248			3,605,859			3,583,716			3,152,664			3,124,240
Less: Allowance for credit losses on loans			(34,315)			(34,052)			(33,940)			(28,885)			(28,614)
Net loans			3,550,933			3,571,807			3,549,776			3,123,779			3,095,626

Premises and equipment, net			58,914			58,188			58,828			52,647			51,659
Other real estate owned			—			—			—			—			—
Goodwill			141,819			141,819			141,819			119,477			119,477
Other intangible assets			15,824			16,407			16,989			3,472			3,705
Cash surrender value of bank-owned life insurance			89,817			96,250			95,554			83,074			82,471
Deferred tax asset, net			30,298			29,926			31,721			23,290			23,298
Other assets			87,330			74,642			73,936			75,017			73,892
Total assets		$	4,676,228		$	4,683,891		$	4,717,252		$	4,112,005		$	4,063,226

Liabilities and shareholders' equity
Non-interest bearing demand		$	651,282		$	670,786		$	692,780		$	552,074		$	547,401
Interest-bearing demand			1,152,888			1,137,730			1,137,362			931,854			930,031
Savings			649,302			635,329			647,428			542,579			551,280
Money market			493,432			464,843			488,633			370,709			405,326
Time			920,811			912,594			981,993			894,772			862,773
Total deposits			3,867,715			3,821,282			3,948,196			3,291,988			3,296,811

Senior borrowings			162,297			216,818			139,956			256,441			199,982
Subordinated borrowings			53,420			52,825			52,229			40,620			40,620
Total borrowings			215,717			269,643			192,185			297,061			240,602

Other liabilities			54,859			60,425			55,916			54,096			58,502
Total liabilities			4,138,291			4,151,350			4,196,297			3,643,145			3,595,915

Total shareholders’ equity			537,937			532,541			520,955			468,860			467,311
Total liabilities and shareholders’ equity		$	4,676,228		$	4,683,891		$	4,717,252		$	4,112,005		$	4,063,226

Net shares outstanding			16,742			16,702			16,689			15,322			15,317

BAR HARBOR BANKSHARES

CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED

LOAN ANALYSIS


																		Organic Annualized
																		Growth %
		Mar 31,		Dec 31,			Sept 30,		Acquired WGSB			Jun 30,			Mar 31,			Quarter
(in thousands)		2026		2025			2025		Balances⁽¹⁾			2025			2025			to Date
Commercial real estate		$	1,968,403	$	1,998,603		$	1,942,659	$	117,832		$	1,767,206		$	1,762,132		(6)
Commercial and industrial			417,657		393,851			405,759		25,651			400,908			370,683		24
Total commercial loans			2,386,060		2,392,454			2,348,418		143,483			2,168,114			2,132,815		(1)

Residential real estate			993,636		1,001,769			1,025,266		248,484			796,184			807,514		(3)
Consumer			127,681		128,029			126,345		16,215			111,036			105,404		(1)
Tax exempt and other			77,871		83,607			83,687		5,226			77,330			78,507		(27)
Total loans		$	3,585,248	$	3,605,859		$	3,583,716	$	413,408		$	3,152,664		$	3,124,240		(2)	%

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

DEPOSIT ANALYSIS


																		Organic Annualized
																		Growth %
		Mar 31,		Dec 31,			Sept 30,		Acquired WGSB			Jun 30,			Mar 31,			Quarter
(in thousands)		2026		2025			2025		Balances⁽¹⁾			2025			2025			to Date
Non-interest bearing demand		$	651,282	$	670,786		$	692,780	$	89,274		$	552,074		$	547,401		(12)	%
Interest-bearing demand			1,152,888		1,137,730			1,137,362		185,802			931,854			930,031		5
Savings			649,302		635,329			647,428		104,792			542,579			551,280		9
Money market			493,432		464,843			488,633		52,470			370,709			405,326		25
Total non-maturity deposits			2,946,904		2,908,688			2,966,203		432,338			2,397,216			2,434,038		5
Time			920,811		912,594			981,993		98,951			894,772			862,773		4
Total deposits		$	3,867,715	$	3,821,282		$	3,948,196	$	531,289		$	3,291,988		$	3,296,811		5	%

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

BAR HARBOR BANKSHARES

CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED


		Three Months Ended
		March 31,
(in thousands, except per share data)		2026			2025
Interest and dividend income
Loans		$	48,658		$	41,804
Securities available for sale			6,204			5,283
Federal Home Loan Bank stock			155			137
Interest-earning deposits with other banks			233			314
Total interest and dividend income			55,250			47,538
Interest expense
Deposits			14,889			15,512
Borrowings			3,489			3,019
Total interest expense			18,378			18,531
Net interest income			36,872			29,007
Provision for credit losses on available-for-sale debt securities			—			636
Provision for credit losses on loans			305			(57)
Net interest income after provision for credit losses			36,567			28,428
Non-interest income
Trust and investment management fee income			4,115			3,916
Customer service fees			4,102			3,525
(Loss) gain on available-for-sale debt securities, net			(1,008)			—
Mortgage banking income			682			456
Bank-owned life insurance income			1,987			614
Customer derivative income			329			212
Other income			207			195
Total non-interest income			10,414			8,918
Non-interest expense
Salaries and employee benefits			15,773			13,733
Occupancy and equipment			4,036			3,325
Depreciation			1,134			1,049
Loss (gain) on premises and equipment, net			134			90
Outside services			464			482
Professional services			349			592
Communication			248			166
Marketing			605			518
Amortization of intangible assets			582			233
FDIC assessment			577			456
Acquisition, conversion and other expenses			1,455			239
Provision for unfunded commitments			(226)			(74)
Other expenses			4,696			3,842
Total non-interest expense			29,827			24,651
Income before income taxes			17,154			12,695
Income tax expense			3,617			2,484
Net income		$	13,537		$	10,211
Earnings per share:
Basic		$	0.81		$	0.67
Diluted			0.81			0.66
Weighted average shares outstanding:
Basic			16,728			15,304
Diluted			16,804			15,393

BAR HARBOR BANKSHARES

CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED


		Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands, except per share data)		2026			2025			2025			2025			2025
Interest and dividend income
Loans		$	48,658		$	50,164		$	48,426		$	42,726		$	41,804
Securities and other			6,204			6,327			6,355			5,474			5,283
Federal Home Loan Bank stock			155			235			217			212			137
Interest-earning deposits with other banks			233			645			924			276			314
Total interest and dividend income			55,250			57,371			55,922			48,688			47,538
Interest expense
Deposits			14,889			16,083			16,419			15,511			15,512
Borrowings			3,489			2,671			2,544			3,282			3,019
Total interest expense			18,378			18,754			18,963			18,793			18,531
Net interest income			36,872			38,617			36,959			29,895			29,007
Provision for credit losses on available-for-sale debt securities			—			—			—			—			636
Provision (benefit) for credit losses on loans			305			416			3,749			528			(57)
Net interest income after provision for credit losses			36,567			38,201			33,210			29,367			28,428
Non-interest income
Trust and investment management fee income			4,115			3,984			3,903			4,263			3,916
Customer service fees			4,102			4,528			4,311			3,589			3,525
(Loss) gain on available-for-sale debt securities, net ⁽¹⁾			(1,008)			(428)			41			(4,942)			—
Mortgage banking income			682			485			423			605			456
Bank-owned life insurance income			1,987			695			665			602			614
Customer derivative income			329			735			962			104			212
Other income			207			326			262			425			195
Total non-interest income			10,414			10,325			10,567			4,646			8,918
Non-interest expense
Salaries and employee benefits			15,773			16,588			15,939			14,274			13,733
Occupancy and equipment			4,036			3,780			3,879			3,546			3,325
Depreciation			1,134			1,153			1,078			1,023			1,049
Loss (gain) on premises and equipment, net			134			370			(206)			3			90
Outside services			464			564			514			457			482
Professional services			349			407			296			514			592
Communication			248			271			246			194			166
Marketing			605			181			655			682			518
Amortization of intangible assets			582			582			466			233			233
FDIC assessment			577			539			462			464			456
Acquisition, conversion and other expenses			1,455			4,170			4,978			1,205			239
Provision for unfunded commitments			(226)			725			145			—			(74)
Other expenses			4,696			4,469			4,287			3,943			3,842
Total non-interest expense			29,827			33,799			32,739			26,538			24,651
Income before income taxes			17,154			14,727			11,038			7,475			12,695
Income tax expense			3,617			2,966			2,183			1,383			2,484
Net income		$	13,537		$	11,761		$	8,855		$	6,092		$	10,211
Earnings per share:
Basic		$	0.81		$	0.70		$	0.55		$	0.40		$	0.67
Diluted			0.81			0.70			0.54			0.40			0.66
Weighted average shares outstanding:
Basic			16,728			16,696			16,231			15,321			15,304
Diluted			16,804			16,757			16,284			15,372			15,393

(1)	The $4.9 million loss in June 2025 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
		Mar 31,		Dec 31,		Sept 30,		Jun 30,		Mar 31,
		2026		2025		2025		2025		2025
Earning assets
Interest-earning deposits with other banks		3.90	%	4.53	%	4.49	%	4.68	%	4.55	%
Available-for-sale debt securities		4.05		4.03		4.14		3.86		3.80
Federal Home Loan Bank stock		5.68		10.72		7.71		7.20		4.78
Loans:
Commercial real estate		5.68		5.74		5.88		5.76		5.58
Commercial and industrial		6.13		6.34		6.45		6.41		6.57
Residential real estate		4.64		4.75		4.42		4.14		4.22
Consumer		6.90		7.27		7.23		6.98		7.03
Total loans		5.50		5.59		5.60		5.48		5.42
Total earning assets		5.27	%	5.36	%	5.36	%	5.23	%	5.16	%

Funding liabilities
Deposits:
Interest-bearing demand		1.30	%	1.39	%	1.42	%	1.44	%	1.41	%
Savings		0.56		0.54		0.64		0.71		0.71
Money market		2.28		2.43		2.59		2.75		2.77
Time		3.41		3.53		3.64		3.91		4.11
Total interest-bearing deposits		1.91		2.01		2.12		2.28		2.31
Borrowings		5.62		5.43		4.04		4.85		4.61
Total interest-bearing liabilities		2.19	%	2.20	%	2.27	%	2.51	%	2.52	%

Net interest spread		3.08		3.16		3.09		2.72		2.64
Net interest margin, fully taxable equivalent⁽¹⁾		3.54		3.62		3.56		3.23		3.17

(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
	Mar 31,		Dec 31,		Sept 30,		Jun 30,		Mar 31,
(in thousands)	2026		2025		2025		2025		2025
Assets
Interest-earning deposits with other banks⁽¹⁾	$	24,230	$	56,502	$	81,709	$	23,643	$	27,999
Available-for-sale debt securities ⁽²⁾		643,647		644,929		631,572		591,462		587,878
Federal Home Loan Bank stock		11,062		8,696		11,168		11,804		11,623
Loans:
Commercial real estate		2,001,851		1,954,841		1,887,267		1,766,720		1,759,321
Commercial and industrial		486,295		480,529		483,380		469,816		469,331
Residential real estate		998,862		1,021,309		963,311		804,469		820,837
Consumer		127,693		126,953		120,941		109,023		104,413
Total loans ⁽³⁾		3,614,701		3,583,632		3,454,899		3,150,028		3,153,902
Total earning assets		4,293,640		4,293,759		4,179,348		3,776,937		3,781,402
Cash and due from banks		36,278		40,291		38,709		29,861		29,972
Allowance for credit losses		(34,195)		(33,905)		(31,246)		(28,786)		(29,143)
Goodwill and other intangible assets		157,921		158,507		139,822		123,062		123,295
Other assets		215,852		211,317		191,446		169,540		171,477
Total assets	$	4,669,496	$	4,669,969	$	4,518,079	$	4,070,614	$	4,077,003

Liabilities and shareholders' equity
Deposits:
Interest-bearing demand	$	1,121,021	$	1,127,456	$	1,059,214	$	906,557	$	916,129
Savings		642,717		640,577		617,314		545,304		547,672
Money market		469,496		473,574		432,952		392,034		401,268
Time		922,180		939,353		961,054		883,491		853,105
Total interest-bearing deposits		3,155,414		3,180,960		3,070,534		2,727,386		2,718,174
Borrowings		251,985		195,139		250,110		271,410		265,780
Total interest-bearing liabilities		3,407,399		3,376,099		3,320,644		2,998,796		2,983,954
Non-interest bearing demand deposits		659,506		705,245		647,981		545,308		560,310
Other liabilities		60,814		56,025		46,962		57,268		66,589
Total liabilities		4,127,719		4,137,369		4,015,587		3,601,372		3,610,853
Total shareholders' equity		541,777		532,600		502,492		469,242		466,150
Total liabilities and shareholders' equity	$	4,669,496	$	4,669,969	$	4,518,079	$	4,070,614	$	4,077,003

(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
		Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands)		2026			2025			2025			2025			2025
NON-PERFORMING ASSETS
Non-accruing loans:
Commercial real estate		$	12,620		$	1,497		$	697		$	1,033		$	1,091
Commercial and industrial			1,139			1,113			1,221			1,344			1,354
Residential real estate			8,206			7,719			6,541			6,411			4,557
Consumer			1,176			1,265			1,051			944			1,084
Total non-accruing loans			23,141			11,594			9,510			9,732			8,086
Non-performing available-for-sale debt securities			1,329			2,203			2,203			2,403			4,960
Other real estate owned			—			—			—			—			—
Total non-performing assets		$	24,470		$	13,797		$	11,713		$	12,135		$	13,046

Total non-accruing loans/total loans			0.65	%		0.32	%		0.27	%		0.31	%		0.26	%
Total non-performing assets/total assets			0.52			0.29			0.25			0.30			0.32

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period		$	34,052		$	33,940		$	28,885		$	28,614		$	28,744
Charged-off loans			(97)			(318)			(353)			(266)			(84)
Recoveries on charged-off loans			55			14			37			9			11
Net loans (charged-off) recovered			(42)			(304)			(316)			(257)			(73)
ACL established on PCD loans			—			—			1,622			—			—
Provision for credit losses on loans			305			416			3,749			528			(57)
Balance at end of period		$	34,315		$	34,052		$	33,940		$	28,885		$	28,614

Allowance for credit losses/total loans			0.96	%		0.94	%		0.95	%		0.92	%		0.92	%
Allowance for credit losses/non-accruing loans			148			294			357			297			354

NET LOAN (CHARGE-OFFS) RECOVERIES
Commercial real estate		$	—		$	—		$	(224)		$	—		$	—
Commercial and industrial			35			(256)			18			(204)			(37)
Residential real estate			8			8			(112)			6			4
Consumer			(85)			(56)			2			(59)			(40)
Total, net		$	(42)		$	(304)		$	(316)		$	(257)		$	(73)

Net charge-offs (recoveries) (QTD annualized)/average loans			—	%		0.03	%		0.04	%		0.03	%		0.01	%
Net charge-offs (recoveries) (YTD annualized)/average loans			—			0.03			0.02			0.02			0.01

PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON AVAILABLE-FOR-SALE DEBT SECURITIES
Balance at beginning of period		$	—		$	—		$	—		$	1,204		$	568
Charged-off interest receivable on available-for-sale debt securities			—			—			—			—			—
Provision for credit losses on available-for-sale debt securities			—			—			—			—			636
Charged-off previously provisioned allowance for credit loss			—			—			—			(1,204)			—
Balance at end of period		$	—		$	—		$	—		$	—		$	1,204

BAR HARBOR BANKSHARES

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


			At or for the Quarters Ended
			Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands)			2026			2025			2025			2025			2025
Net income	(R)		$	13,537		$	11,761		$	8,855		$	6,092		$	10,211
Non-core items:
Loss (gain) on available-for-sale debt securities, net⁽⁶⁾				—			428			(41)			4,942			—
Loss (gain) on premises and equipment, net				134			370			(206)			3			90
Provision on non-PCD acquired loans				—			—			3,954			—			—
Acquisition, conversion and other expenses				1,455			4,170			4,978			1,205			239
Income tax expense ⁽¹⁾				(392)			(1,225)			(2,141)			(1,492)			(80)
Total non-core items⁽²⁾				1,197			3,743			6,544			4,658			249
Core earnings ⁽²⁾	(A)		$	14,734		$	15,504		$	15,399		$	10,750		$	10,460

Net interest income	(B)		$	36,872		$	38,617		$	36,959		$	29,895		$	29,007
Non-interest income				10,414			10,325			10,567			4,646			8,918
Total revenue				47,286			48,942			47,526			34,541			37,925
Loss (gain) on available-for-sale debt securities, net⁽⁶⁾				—			428			(41)			4,942			—
Total core revenue ⁽²⁾	(C)		$	47,286		$	49,370		$	47,485		$	39,483		$	37,925

Total non-interest expense				29,827			33,799			32,739			26,538			24,651
Non-core expenses:
(Loss) gain on premises and equipment, net				(134)			(370)			206			(3)			(90)
Acquisition, conversion and other expenses				(1,455)			(4,170)			(4,978)			(1,205)			(239)
Total non-core expenses ⁽²⁾				(1,589)			(4,540)			(4,772)			(1,208)			(329)
Core non-interest expense ⁽²⁾	(D)		$	28,238		$	29,259		$	27,967		$	25,330		$	24,322

Total revenue				47,286			48,942			47,526			34,541			37,925
Total non-interest expense				29,827			33,799			32,739			26,538			24,651
Pre-tax, pre-provision net revenue⁽²⁾	(S)		$	17,459		$	15,143		$	14,787		$	8,003		$	13,274

Core revenue⁽²⁾				47,286			49,370			47,485			39,483			37,925
Core non-interest expense⁽²⁾				28,238			29,259			27,967			25,330			24,322
Core pre-tax, pre-provision net revenue⁽²⁾	(U)		$	19,048		$	20,111		$	19,518		$	14,153		$	13,603

(in millions)
Average earning assets	(E)		$	4,294		$	4,294		$	4,179		$	3,777		$	3,781
Average assets	(F)			4,669			4,670			4,518			4,071			4,077
Average shareholders' equity	(G)			542			533			499			469			466
Average tangible shareholders' equity ^{(2) (3)}	(H)			384			374			360			346			343
Tangible shareholders' equity, period-end ^{(2) (3)}	(I)			380			374			362			346			343
Tangible assets, period-end ^{(2) (3)}	(J)			4,519			4,526			4,563			3,989			3,940

BAR HARBOR BANKSHARES

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


			At or for the Quarters Ended
			Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
(in thousands)			2026			2025			2025			2025			2025
Common shares outstanding, period-end	(K)			16,742			16,702			16,689			15,322			15,317
Average diluted shares outstanding	(L)			16,804			16,757			16,284			15,372			15,393

Core earnings per share, diluted ⁽²⁾	(A/L)		$	0.88		$	0.93		$	0.95		$	0.70		$	0.68
Tangible book value per share, period-end ⁽²⁾	(I/K)			22.71			22.41			21.70			22.58			22.47
Tangible shareholders' equity/total tangible assets ⁽²⁾	(I/J)			8.42			8.27			7.94			8.67			8.73

Performance ratios ⁽⁴⁾
GAAP return on assets				1.18	%		1.00	%		0.78	%		0.60	%		1.02	%
Core return on assets ⁽²⁾	(A/F)			1.28			1.32			1.35			1.06			1.04
Pre-tax, pre-provision return on assets⁽²⁾	(S/F)			1.52			1.29			1.30			0.79			1.32
Core pre-tax, pre-provision return on assets⁽²⁾	(U/F)			1.65			1.71			1.71			1.39			1.35
GAAP return on equity				10.13			8.76			6.99			5.21			8.88
Core return on equity ⁽²⁾	(A/G)			11.03			11.55			12.16			9.19			9.09
Return on tangible equity⁽¹⁾ ⁽²⁾	(R+Q)/H			14.77			12.94			10.07			7.26			12.27
Core return on tangible equity ^{(1) (2)}	(A+Q)/H			16.03			16.91			17.23			12.66			12.57
Efficiency ratio ^{(2) (5)}	(D-O-Q)/(C+N)			56.92			57.24			56.70			62.10			62.00
Net interest margin, fully taxable equivalent ⁽²⁾	(B+P)/E			3.54			3.62			3.56			3.23			3.17

Supplementary data (in thousands)
Taxable equivalent adjustment for efficiency ratio	(N)		$	1,044		$	766		$	738		$	706		$	717
Franchise taxes included in non-interest expense	(O)			146			(22)			158			141			131
Tax equivalent adjustment for net interest margin	(P)			554			595			574			560			568
Intangible amortization	(Q)			582			582			466			233			233

(1)	Assumes a marginal tax rate of 24.65% for the first quarter 2026 and third and fourth quarters of 2025 and 24.26% in the first and second quarters of 2025.

(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 in the second quarter 2025 includes a $4.5 million loss on corporate debt securities and $549 thousand on a matured debt security.