Executive Summary

Q1 2025 delivered stable profitability and margin: GAAP diluted EPS $0.66, core diluted EPS $0.68; fully-taxable equivalent net interest margin held at 3.17% as revenue totaled $37.9M .
The Board raised the quarterly dividend 7% to $0.32 per share, and management announced a definitive agreement to acquire Woodsville Guaranty Bancorp, expanding the footprint in Northern New England .
Versus S&P Global consensus, Q1 EPS modestly beat (actual $0.68 vs $0.675 estimate*) and revenue beat (actual $37.26M vs $34.21M estimate*). Bold beat supported by stable NIM and higher loan yields; we note definitional differences between company “Total revenue” and S&P revenue may exist*.
Operational highlights: 6% YoY growth in wealth non-brokerage AUM to $2.8B, provision recapture ($57K), and lower borrowings; headwinds included seasonal loan paydowns, deposit mix shifts, and higher operating expenses YoY .
Potential stock reaction catalysts: dividend increase, announced M&A, and evidence of sustained margin amid deposit cost pressures .

What Went Well and What Went Wrong

What Went Well

Margin resilience: “Net interest margin remains strong at 3.17%,” supported by repricing in adjustable-rate commercial loans; total loan yields rose to 5.42% YoY .
Strategic M&A: Signed a definitive agreement to acquire Woodsville Guaranty Bancorp; CEO emphasized adjacency, efficient deposits, and cultural alignment to fund future growth and complement the branch network .
Wealth management strength: Non-brokerage AUM up 6% YoY to $2.8B; wealth fee income +6.7% YoY, aided by security valuations and managed account growth .
- Management quote: “Our teams continue to demonstrate that exceptional customer service, continuous calling, and proactive modeling drive financial strength.” — Curtis C. Simard .

What Went Wrong

Loans softened sequentially: Total loans dipped to $3.124B (down ~3% annualized), with residential real estate down $19.0M and C&I down $17.9M; seasonal paydowns and rate environment cited .
Deposit mix pressure: Non-interest bearing demand decreased $28.2M QoQ while time deposits rose (16% annualized), reflecting competitive rate environment and seasonal outflows; cost of interest-bearing deposits up 5 bps YoY to 2.31% .
Operating expense creep: Non-interest expense increased $1.2M YoY to $24.651M, driven by salaries/benefits, acquisition-related costs, recruiting, and technology consulting .

Financial Results

Core P&L and Margins vs Prior Periods

Metric	Q1 2024	Q4 2024	Q1 2025
Total revenue ($USD Millions)	$36.641	$38.459	$37.925
GAAP diluted EPS ($)	$0.66	$0.72	$0.66
Core diluted EPS ($)	$0.66	$0.72	$0.68
Net Interest Margin (FTE) (%)	3.14	3.17	3.17
Efficiency Ratio (%)	62.71	59.84	62.00
ROA (%)	1.03	1.09	1.02

S&P Global Consensus vs Actuals (EPS and Revenue)

Metric	Q3 2024	Q4 2024	Q1 2025
Primary EPS Consensus Mean (Est vs Actual)	$0.675 vs $0.80*	$0.685 vs $0.72*	$0.675 vs $0.68*
Revenue Consensus Mean ($USD) (Est vs Actual)	$33.763M vs $38.383M*	$34.258M vs $37.364M*	$34.211M vs $37.256M*

Note: Values marked with * retrieved from S&P Global. S&P revenue definitions may differ from company-defined “Total revenue.”

Segment/Lending and Deposit Mix

Loans ($USD Thousands)	Q1 2024	Q4 2024	Q1 2025
Commercial Real Estate	1,574,802	1,741,223	1,762,132
Commercial & Industrial	412,567	388,599	370,683
Residential Real Estate	873,213	826,492	807,514
Consumer	95,838	103,803	105,404
Tax Exempt & Other	55,252	86,979	78,507
Total Loans	3,011,672	3,147,096	3,124,240

Deposits ($USD Thousands)	Q1 2024	Q4 2024	Q1 2025
Non-interest bearing demand	544,495	575,649	547,401
Interest-bearing demand	888,591	910,191	930,031
Savings	551,493	545,816	551,280
Money Market	365,289	405,758	405,326
Time	777,208	830,274	862,773
Total Deposits	3,127,076	3,267,688	3,296,811

KPIs and Asset Quality

KPI	Q1 2024	Q4 2024	Q1 2025
Book value per share ($)	28.64	30.00	30.51
Tangible book value per share ($)	20.48	21.93	22.47
Loans/Deposits (%)	96	96	95
Non-accruing loans/Total loans (%)	0.23	0.22	0.26
ACL on loans/Total loans (%)	0.94	0.91	0.92
Total non-performing assets/Total assets (%)	0.17	0.31	0.32
Net charge-offs (QTD annualized)/Avg loans (%)	0.01	0.02	0.01

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q2 2025 payable (declared Q1)	$0.30	$0.32	Raised
Formal revenue/margin/tax guidance	2025	Not provided	Not provided	Maintained (no formal guidance)
Borrowings trajectory	Near-term	N/A	Senior borrowings decreased $50M to $200M (FHLB -$48.9M to $194.1M)	Operational update

Earnings Call Themes & Trends

Note: Q1 2025 earnings call transcript was not available in our document set; themes below are derived from press releases.

Topic	Previous Mentions (Q-2: Q3 2024; Q-1: Q4 2024)	Current Period (Q1 2025)	Trend
Deposit mix & funding costs	Core deposit influx, 1,554 new accounts, helped manage funding costs; NIM 3.15%	Seasonal outflows and mix shift to time deposits; NIM steady at 3.17%	Mixed: funding cost pressure, margin stable
Wealth management	AUM up ~20% YoY; wealth fees +17% YoY	Non-brokerage AUM +6% YoY to $2.8B; wealth fees +6.7% YoY	Continued growth, moderating vs Q3 pace
C&I lending strategy	Emphasis on CRE; plan to accelerate C&I with senior hires (Wold/Whitfield)	C&I balances down QoQ amid paydowns; $50M new originations overall	Transition phase; building capabilities
Asset quality	NPLs ~0.23% of loans; strong collateral values	NPLs 0.26% of loans; charge-offs minimal; ACL coverage stable	Stable to slightly higher NPL ratio
M&A / footprint	No M&A disclosed	Definitive agreement to acquire Woodsville Guaranty Bancorp	Expanding footprint
Interest-rate/macro commentary	Managing in uncertain rate environment	“Volatility in capital markets” but steady margin and proactive modeling	Persistent macro caution

Management Commentary

Strategic posture: “Our teams continue to demonstrate that exceptional customer service, continuous calling, and proactive modeling drive financial strength…responsible management of the balance sheet underscores our commitment to profitable growth, with a goal of maintaining a strong and stable margin.” — Curtis C. Simard, President & CEO .
M&A rationale: Woodsville “operates in markets similar to ours…efficient deposits which will help fund future growth…strengthen our presence in northern New England, complementing our existing branch network.” — Curtis C. Simard .
Culture: “Our values foster a strong foundation built on opportunity and authenticity.” — Curtis C. Simard .

Q&A Highlights

The Q1 2025 earnings call transcript was not available in our document repository; Q&A highlights and any on-call guidance clarifications could not be verified. We relied on the 8-K press release and accompanying schedules for themes and quantitative detail .

Estimates Context

EPS: Q1 actual $0.68 vs S&P consensus $0.675* (modest beat); prior quarters: Q4 actual $0.72 vs $0.685*, Q3 actual $0.80 vs $0.675* — beat momentum maintained through Q4 and Q3*.
Revenue: Q1 actual $37.256M vs $34.211M* (beat); prior quarters: Q4 actual $37.364M vs $34.258M*, Q3 actual $38.383M vs $33.763M* — consistent beats on S&P’s revenue lens*.
Company-reported “Total revenue” was $37.925M in Q1 2025; differences vs S&P’s revenue reflect definitional nuances of banking revenue components .
Note: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Dividend increase and announced acquisition are near-term catalysts supporting yield and strategic growth; integration execution and deposit synergies will be watched .
Margin resilience amid deposit cost pressure (NIM 3.17%) suggests pricing discipline and asset mix management; monitor further time-deposit growth and funding costs .
Credit remains benign (NPLs 0.26%, minimal net charge-offs), supporting stable ACL coverage; any macro-driven uptick would be a key risk to the story .
Loan growth may be choppy near term (seasonal paydowns, C&I softness), but management is investing in C&I capabilities; watch for evidence of sequential C&I improvement .
Wealth management provides resilient fee contribution with AUM at $2.8B; continuation of market tailwinds and client wins augur steady non-interest income .
Trading implication: modest estimate beats on EPS/revenue*, higher dividend, and M&A headline could support shares; however, higher efficiency ratio and deposit mix shift temper the upside pending clearer operating leverage .
Medium-term thesis: franchise depth in Northern New England plus wealth platform and targeted C&I build-out positions BHB for balanced growth; focus on deposit mix normalization, integration execution, and sustaining NIM to drive ROE .

Sources

Q1 2025 8-K and Exhibit 99.1 press release, including consolidated schedules .
Q4 2024 8-K and press release .
Q3 2024 8-K and press release .
SEC 8-K and 10-Q references (dividend and merger announcement) .
S&P Global consensus via GetEstimates (EPS and revenue)*.

BAR HARBOR BANKSHARES (BHB)·Q1 2025 Earnings Summary