Bar Harbor profit rises to $16.1 million in third quarter
Key Facts
Bar Harbor Bankshares reported GAAP net income of $16.1 million for the third quarter of 2026, with a wider net interest margin and improved efficiency, according to the bank's earnings disclosure. GAAP diluted earnings per share were $0.96 for the period. Core earnings, which the bank reports on a non-GAAP basis, totaled $17.5 million. The bank said those earnings were equivalent to "$1.04 per diluted share." Return on assets for the quarter was 1.35%, while return on equity reached 11.69%.
GAAP earnings exceeded their level in the second quarter of 2026, when the bank reported net income of $15.2 million, according to its filing with the U.S. Securities and Exchange Commission. Diluted earnings per share for that quarter were $0.91. On a year-over-year basis, results were higher than third-quarter 2025 earnings of $8.9 million, according to the bank's statement for that period. Diluted earnings per share at the time were $0.54. Both GAAP net income and diluted earnings per share therefore rose from the previous quarter and the year-earlier period.
In operating performance, Bar Harbor's net interest margin rose to 3.77% in the third quarter of 2026, according to the earnings disclosure. The margin was 3.61% in the second quarter of the same year. The efficiency ratio, calculated on a non-GAAP basis, improved to 55.26% in the third quarter. The improvement came as total loans held steady quarter over quarter at $3.6 billion. The loan portfolio thus remained at the same level recorded at the end of the second quarter, alongside the wider net interest margin.
On the funding side, the bank's deposits increased by $84.0 million during the third quarter, according to the statement. Total deposits reached $3.9 billion at the end of September 2026. The bank attributed the increase primarily to higher demand deposits. Total borrowings, meanwhile, fell to $157.4 million at the end of September. The bank said the decline in borrowings reflected the repayment of wholesale funding and the redemption of subordinated debt, alongside growth in its deposit base.
On risk measures, unrealized losses on the securities portfolio rose to $72.9 million at the end of September 2026, according to Bar Harbor's disclosure. The bank attributed the increase in those losses to the interest rate environment. On the credit side, it recorded a reversal of provision for loan losses of $167 thousand during the third quarter. The bank attributed the reversal primarily to the full repayment of a credit relationship. That relationship had carried significant reserves before repayment, according to the bank's explanation of provision movements during the period.
In its cash dividend announcement issued in October 2026, Bar Harbor set the dividend at $0.34 per share. The bank made eligibility for the dividend contingent on being listed in the shareholder register on the date specified in the announcement. It set November 19, 2026 as the record date for eligible shareholders. Shareholders must be on record at the close of business that day, according to the statement. The cash dividend is scheduled to be paid on December 18, 2026.