0001104659-26-027217
SEC filingBar Harbor Bankshares reported net income of $36.9 million for FY 2025, a decrease from $43.5 million in FY 2024. Diluted earnings per share were $2.31, down from $2.84. The company's net interest income increased to $134.5 million from $113.8 million, driven by a higher net interest margin of 3.41% compared to 3.15%. Total assets grew to $4.68 billion from $4.08 billion, primarily due to the acquisition of Guaranty Bancorp, Inc., which added $658.1 million in assets. Non-interest income declined to $34.5 million from $36.9 million, while non-interest expense rose to $117.7 million from $96.0 million, largely due to $10.6 million in acquisition-related costs. The efficiency ratio improved to 59.23% from 61.83%.
Bar Harbor Bankshares reported FY 2025 net income of $36.9 million, a decrease from $43.5 million in FY 2024. Diluted earnings per share declined to $2.31 from $2.84. The company achieved net interest income of $134.5 million, up from $113.8 million, with net interest margin improving to 3.41% from 3.15%. Total revenue (net interest income plus non-interest income) increased to $169.0 million from $151.0 million. The efficiency ratio improved to 59.23% from 61.83%. Total assets grew to $4.68 billion from $4.08 billion, driven by the acquisition of Guaranty Bancorp, which added $658.1 million in assets.
Net interest income increased 18% to $134.5 million, driven by higher loan yields (5.53% vs. 5.40%) and the acquisition of Guaranty Bancorp. Interest and dividend income totaled $209.5 million, with loans contributing $183.1 million. Non-interest income declined 7% to $34.5 million, primarily due to a $5.3 million loss on available-for-sale debt securities. Trust and investment management fee income was $16.1 million, while customer service fees were $16.0 million. The company's revenue mix shifted slightly, with net interest income representing 79.6% of total revenue compared to 77.5% in the prior year.
Net interest margin improved to 3.41% from 3.15%, driven by higher earning asset yields (5.28% vs. 5.18%) and lower deposit costs (2.17% vs. 2.37%). The interest rate spread widened to 2.91% from 2.61%. Operating margin was 27.2%, calculated as income before income taxes divided by total revenue. The provision for credit losses increased to $5.2 million from $2.0 million, primarily due to $4.0 million in reserves on non-PCD loans from the acquisition. Non-interest expense increased 23% to $117.7 million, with salaries and benefits rising to $60.5 million and acquisition-related expenses totaling $10.6 million.
Net cash provided by operating activities was $48.3 million. Investing activities provided $88.7 million, primarily from securities maturities and acquisitions. Financing activities used $128.3 million, mainly for debt repayments and dividends. Total cash and cash equivalents were $80.8 million. Total loans were $3.61 billion, with an allowance for credit losses of $34.1 million (0.94% of loans). Total deposits were $3.82 billion, with non-interest bearing demand deposits of $670.8 million. Total shareholders' equity was $532.5 million, with book value per share of $31.88. The company maintained a well-capitalized position with Tier 1 capital to risk-weighted assets of 11.54%.
The company faces risks from interest rate volatility, which could impact net interest income. The acquisition of Guaranty Bancorp is expected to provide synergies, though failure to realize these could affect results. Management remains focused on organic growth, with 6% annualized commercial loan growth excluding acquisitions. The company maintains a liquidity position of approximately $1.0 billion, including unused borrowing capacity. Regulatory capital requirements and potential changes in economic conditions represent ongoing risks. No specific quantitative guidance for FY 2026 was provided in the filing.