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BAR HARBOR BANKSHARES Bar Harbor Bankshares Reports Third Quarter Results ; Declares Dividend BAR HARBOR , MAINE - October 21 , 2021 - Bar Harbor Bankshares ( NYSE American : BHB ) reported third quarter 2021 net income of $ 11.0 million or $ 0.73 per diluted share , up from $ 8.4 million or $ 0.56 per diluted share in the same quarter of 2020. Core earnings ( non - GAAP ) were also $ 11.0 million or $ 0.73 per diluted share in the third quarter of 2021 , compared to $ 9.2 million , or $ 0.61 per share for the same period of 2020 . THIRD QUARTER HIGHLIGHTS ( ratios compared to the third quarter 2020 ) • 1.16 % return on assets , for both GAAP and non - GAAP measures • • • 10 % annualized commercial loan growth , excluding Paycheck Protection Program ( PPP ) loans 32 % annualized core deposit growth 3.02 % net interest margin ( NIM ) compared to 2.90 % 15 % increase in fee income , excluding mortgage banking income and security gains Bar Harbor Bank & Trust named as America's Best Bank in Maine by Newsweek Magazine President and Chief Executive Officer , Curtis C. Simard stated , “ Core earnings per share ( non - GAAP ) in the third quarter 2021 grew 20 % over the same quarter of 2020. Our core return on assets in the third quarter was 1.16 % compared to 0.96 % in the third quarter of 2020 , evidencing continued execution of our strategies that balance growth with earnings . This is indicative of the strength in our core businesses and the results of the strategic initiatives we have been undertaking . The momentum we've seen in each area affords us flexibility with diverse revenue streams to support our operations , even in uncertain economic environments . " " While fee income and efficiency improvements contributed to greater core profitability , the quarterly results also benefited from a 13 basis point expansion in the margin to 2.99 % compared with 2.86 % in the second quarter 2021 on a normalized basis ( excluding PPP and excess cash effects ) . This improvement is a direct result of increased core funding as we gain market share and reduce our reliance on wholesale borrowings . As of September 30 , 2021 , our wholesale borrowings as a percentage of funding was 9 % , down from 23 % in the prior year . " Mr. Simard stated , “ Our commercial teams continue to deliver strong commercial loan growth despite the competitive landscape in our footprint . The majority of the commercial real estate loan growth this quarter came from new multi - family residential and light industrial & manufacturing relationships with proven operators . Risk management remains at the forefront of all that we do . We saw yields bottoming out on residential loans this quarter and were able to increase contractual rates at times . Given the overall interest rate risk position of our balance sheet and this recent rate increase , we strategically directed more of our residential mortgage production on balance sheet versus selling it in the secondary market . ” " We also executed another delever and security remix strategy during the third quarter , prepaying $ 89 million of FHLB borrowings and selling $ 44 million of credit sensitive municipal and corporate bonds . The additional purchase of securities was completed subsequent to quarter end , earlier in October . This transaction is expected to expand the NIM by 12 basis points and will be accretive to earnings by $ 0.02 on a quarterly basis . " Mr. Simard commented , " We continue to build long term shareholder value while providing a favorable dividend rate relative to community banking . The Company's return on equity for the third quarter rose to 10.38 % from 8.25 % in the same quarter of 2020. A clear path to equity preservation is strong credit quality . We remain committed to our underwriting standards evidenced by further improvement in past - due accounts , non - accruals and a near zero net - charge - off ratio . ” " Mr. Simard concluded , “ While our financial results for the quarter and our overall performance thus far in the year speak to the soundness of our strategy , we are thrilled to be named by Newsweek Magazine as one of " America's Best Banks . " Best Bank winners were selected from over 2,500 financial institutions and assessed on more than 30 separate factors including the overall health of the bank , customer BHB - Bar Harbor Bankshares Page 1 www.barharbor.bank