Bar Harbor Bankshares (NYSE American: BHB) has reported its third-quarter 2025 results, revealing a significant increase in GAAP net income from the previous quarter. In the third quarter of 2025, the company's GAAP net income stood at $8.9 million, or $0.54 per diluted share, compared to $6.1 million, or $0.40 per diluted share, in the second quarter of 2025. Core earnings (non-GAAP) also saw a substantial rise, reaching $15.4 million, or $0.95 per diluted share, compared to $10.8 million, or $0.70 per diluted share, in the second quarter of 2025.
One of the notable highlights was the successful completion of the acquisition of Guaranty Bancorp, Inc. on August 1, 2025, and the subsequent integration of all systems and branches in mid-October 2025. As a result, the company's net interest margin expanded to 3.56% from 3.23%, and its efficiency ratio improved to 56.70% compared to 62.10% in the prior quarter.
The acquisition also led to a 16% annualized quarter-to-date growth in deposits and a 6% annualized year-to-date growth, excluding acquired deposits. Additionally, the company exhibited strong asset quality, with non-accruing loans to total loans declining to 0.27% from 0.31%.
Bar Harbor Bankshares' total assets increased by $610 million or 15% to $4.7 billion at the end of the third quarter of 2025, primarily attributable to the acquisition of Woodsville. Total deposits grew to $4.0 billion, driven by $531.3 million in acquired deposits related to the Woodsville acquisition, along with a 16% annualized quarter-to-date organic growth compared to the second quarter of 2025.
The company's total loans increased to $3.6 billion from $3.2 billion in the second quarter, with total commercial loans increasing to $2.3 billion from $2.2 billion in the second quarter, reflecting a $145.5 million increase from the acquisition and organic growth of $34.8 million.
In terms of financial condition, the net interest margin increased to 3.56% in the third quarter of 2025 compared to 3.15% in the same quarter of 2024. Total interest and dividend income grew by 15.1% to $55.9 million in the third quarter of 2025 compared to $48.6 million in the prior year.
Non-interest income also saw a notable increase, rising to $10.6 million compared to $9.7 million in the same quarter of 2024. Non-interest expenses increased to $32.7 million in the third quarter of 2025, driven by $4.9 million in acquisition expenses related to Woodsville.
The company's board of directors declared a cash dividend of $0.32 per share to shareholders of record at the close of business on November 20, 2025, payable on December 19, 2025, equating to a 4.20% annualized yield based on the closing share price of $30.46 on September 30, 2025.
Bar Harbor Bankshares' president and chief executive officer, Curtis C. Simard, expressed satisfaction with the quarter's performance, highlighting the successful integration of Woodsville into the organization and the achievement of a strong core return on assets of 1.35% and a core return on equity of 12.23%.
Following these announcements, the company's shares moved 0.27%, and are now trading at a price of $29.51. Check out the company's full 8-K submission here.
