Bar Harbor Bankshares Reports $10.2 Million Net Income in Q1 2025, Announces Merger with Guaranty Bancorp

Bar Harbor Bankshares reported a net income of $10.2 million for the first quarter of 2025, reflecting a slight increase from $10.1 million in the same period of 2024. This translates to earnings per diluted share of $0.66, consistent with the previous year. The company's total interest and dividend income rose to $47.5 million, up 3.7% from $45.8 million year-over-year, primarily driven by higher yields on loans and an increase in loan balances. The net interest margin improved to 3.17%, compared to 3.14% in the prior year, indicating effective management of interest-earning assets.

In terms of operational metrics, total assets remained stable at approximately $4.1 billion, with total loans slightly decreasing to $3.1 billion, reflecting a 3% annualized decline attributed to seasonal factors and the current interest rate environment. The allowance for credit losses on loans decreased to $28.6 million, representing 0.92% of total loans, down from 0.94% in the previous quarter. The company maintained strong asset quality, with non-performing assets constituting only 0.32% of total assets.

Bar Harbor Bankshares is actively pursuing strategic growth, highlighted by its recent merger agreement with Guaranty Bancorp, Inc. This acquisition is expected to enhance the company's market presence and operational efficiencies. The company also reported a 22% increase in cash and cash equivalents, totaling $88.1 million, as it continues to manage liquidity effectively. Total deposits remained flat at $3.3 billion, with a notable shift in the mix towards interest-bearing accounts, reflecting the competitive interest rate environment.

Looking ahead, Bar Harbor Bankshares anticipates continued growth in non-interest income, particularly from wealth management and customer derivative services. The company remains focused on maintaining its strong capital position, with both the bank and the holding company exceeding regulatory capital requirements. Management expressed confidence in navigating the current economic landscape while executing its strategic initiatives, including the integration of Guaranty Bancorp, which is expected to yield long-term benefits.