Executive Summary

Core diluted EPS of $0.95 beat Wall Street consensus of $0.83; GAAP diluted EPS was $0.54 as acquisition and integration costs and loan provision compressed GAAP results . Q3 revenue also exceeded consensus ($43.983M actual vs $41.354M est); both figures per S&P Global consensus.*
Net interest margin expanded 33 bps QoQ to 3.56% and efficiency ratio improved to 56.70% from 62.10%, reflecting deposit inflows, lower funding costs, and paydown of wholesale borrowings .
Completed the Guaranty Bancorp/Woodsville acquisition on Aug 1; added $658.1M of assets and $531.3M of deposits, and integrated systems/branches by mid-October, positioning for profitable growth across Northern New England .
Asset quality remained strong: non-accruing loans/total loans fell to 0.27% from 0.31% QoQ; ACL/loans increased to 0.95% with a $3.7M provision and $1.6M PCD ACL on acquired loans .
Dividend maintained at $0.32 per share (4.20% annualized yield at $30.46 quarter-end price), supporting total return focus while integration proceeds .

What Went Well and What Went Wrong

What Went Well

Net interest margin and efficiency improved materially: NIM rose to 3.56% (from 3.23%) and the efficiency ratio fell to 56.70% (from 62.10%), driven by seasonal deposit inflows, optimized funding mix and paying down higher-cost borrowings .
Acquisition execution: “We are now one united company... operating seamlessly across our entire footprint... This achievement positions us to serve more customers, deepen our existing relationships, and continue growing stronger.” — Curtis C. Simard, President & CEO .
Core profitability strengthened: core ROA reached 1.35% and core ROE 12.23%, supported by leveraging lower-cost deposits to fund growth and retire expensive wholesale borrowings .

What Went Wrong

Elevated non-core costs: $4.98M in acquisition, conversion and other expenses weighed on GAAP results (GAAP diluted EPS $0.54 vs core $0.95) .
Credit provisioning uptick: $3.749M loan loss provision (plus $1.622M ACL on PCD loans) increased ACL/loans to 0.95%, reflecting acquired portfolio reserving under CECL .
Tangible book value per share decreased to $21.70 (from $22.58) due to recognition of $22.3M goodwill and $14.0M core deposit intangible from the acquisition .

Financial Results

Summary Results vs Prior Periods and Estimates

Metric	Q1 2025	Q2 2025	Q3 2025
GAAP Diluted EPS ($)	0.66	0.40	0.54
Core Diluted EPS ($)	0.68	0.70	0.95
Total Revenue ($USD Millions)	37.925	34.541	47.526
Core Revenue ($USD Millions)	37.925	39.483	47.485
Net Interest Margin (Fully Taxable-Equivalent, %)	3.17	3.23	3.56
Efficiency Ratio (%)	62.00	62.10	56.70
Net Income ($USD Millions)	10.211	6.092	8.855

Income Statement Components

Component ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Net Interest Income	29.007	29.895	36.959
Non-Interest Income	8.918	4.646	10.567
Non-Interest Expense	24.651	26.538	32.739
Provision for Credit Losses on Loans	-0.057	0.528	3.749
(Loss)/Gain on AFS Securities (Net)	—	(4.942)	0.041

Balance Sheet and Credit KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Total Loans ($USD Billions)	$3.124	$3.153	$3.584
Total Deposits ($USD Billions)	$3.297	$3.292	$3.953
Loans/Deposits (%)	95	96	91
Non-Accruing Loans/Total Loans (%)	0.26	0.31	0.27
ACL/Total Loans (%)	0.92	0.92	0.95
GAAP ROA (%)	1.02	0.60	0.78
Core ROA (%)	1.04	1.06	1.35
GAAP ROE (%)	8.88	5.21	7.03
Core ROE (%)	9.09	9.19	12.23
Tangible Book Value/Share ($)	22.47	22.58	21.70

Loan Composition (Selected Categories)

Loans ($USD Millions)	Q2 2025	Q3 2025
Commercial Real Estate	1,767.206	1,942.659
Commercial & Industrial	400.908	405.759
Residential Real Estate	796.184	1,025.266
Consumer	111.036	126.345
Total Loans	3,152.664	3,583.716

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share ($)	Q4 2025 payable Dec 19	$0.32 (Q2 declared)	$0.32; 4.20% annualized yield at $30.46 Q3 close	Maintained

No explicit revenue, margin, OpEx, OI&E, or tax-rate guidance was provided in Q3 materials .

Earnings Call Themes & Trends

Note: Q3 2025 earnings call transcript was not available via our document search; themes are derived from earnings releases.

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q1 2025)	Current Period (Q3 2025)	Trend
Acquisition & Integration	Regulatory approvals; pending close; strategic rationale	Signed definitive merger with Woodsville; adjacency and deposit efficiency	Closed Aug 1; systems/branches integrated mid-Oct; added $658.1M assets, $531.3M deposits	Accelerating (execution)
Net Interest Margin	NIM 3.23%; expansion vs Q1	NIM 3.17%; stable vs prior	NIM 3.56%; strong expansion QoQ	Improving
Deposit Mix & Growth	Mix shift: money market ↓, time deposits ↑; total deposits stable	Seasonal outflows; time deposits ↑	Deposits +$531.3M acquired + 16% annualized organic QoQ; non-maturity deposits strength	Improving/liquidity up
Funding Costs & Borrowings	Borrowings cost 4.85%; impairments in AFS	Borrowings cost 4.61%; paydowns	Borrowings cost 4.04%; senior borrowings paid down $201M within quarter	Improving
Securities Portfolio	Q2 $4.942M net loss (corporate bond, matured security)	Allowance on AFS; fair value adjustments noted	$41k net gain; AFS increased, selective sales and purchases; duration ~5.3 years	Stabilizing
Asset Quality	Non-accruing loans/loans 0.31%	0.26%	0.27%; net charge-offs annualized 0.04%	Stable/strong
Efficiency & Operating Leverage	Efficiency ratio 62.10%	62.00%	56.70%	Improving

Management Commentary

“We are now one united company, operating seamlessly across our entire footprint with one culture. This achievement positions us to serve more customers, deepen our existing relationships, and continue growing stronger.” — Curtis C. Simard, President & CEO .
“We leveraged lower cost deposits to fund new growth and pay off more expensive wholesale borrowings which led to a strong core return on assets of 1.35% and a core return on equity of 12.23%.” — Curtis C. Simard .

Q&A Highlights

The Q3 2025 earnings call transcript was not available in our document repository; as a result, specific analyst Q&A themes and management responses could not be assessed.

Estimates Context

Metric (Q3 2025)	Consensus	Actual	Surprise
Primary EPS (Normalized/Core)	0.83*	0.95*	+0.12 (Beat)*
Revenue ($USD Millions)	41.354*	43.983*	+2.629 (Beat)*

Values marked with * retrieved from S&P Global.

Implications: The beat was driven by NIM expansion, higher net interest income, improved efficiency, and lower borrowing costs, aided by deposit inflows and balance sheet optimization post-acquisition .

Key Takeaways for Investors

Core EPS outperformance and strong NIM demonstrate earnings power improvements post-acquisition, likely supporting upward estimate revisions on core profitability .*
Operating leverage inflected positively: efficiency ratio fell ~540 bps QoQ, with integration benefits and scale from acquired deposits (non-maturity growth plus paydown of wholesale funding) .
Balance sheet quality remains sound: non-accruals at 0.27% of loans and net charge-offs annualized at 0.04% provide cushion amid provisioning tied to acquisition .
Tangible book stepped down on recognition of goodwill/intangibles; investors should weigh near-term TBV dilution against accretion in NIM and core returns .
Securities impairment headwind from Q2 abated in Q3 (small net gain), reducing volatility from this line item near term .
Dividend maintained at $0.32 (4.20% yield at Q3 close), signaling confidence in cash flow while integration continues .
Near-term trading: Favorable core beat and margin momentum are catalysts; watch for continued deposit trajectory, further wholesale paydowns, and expense normalization as integration costs fade .*

Notes: S&P Global consensus values used for estimate comparisons.*

BAR HARBOR BANKSHARES (BHB)·Q3 2025 Earnings Summary