Earnings release
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BHB - Bar Harbor Bankshares Page 1 www.barharbor.bank Exhibit 99.1 Bar Harbor Bankshares Reports Second Quarter 2026 Results; Declares Dividend BAR HARBOR, MAINE – July 21, 2026 - Bar Harbor Bankshares (NYSE American: BHB) (the “Company”) reported second quarter 2026 GAAP net income of $15.2 million, or $0.91 per diluted share, and core earnings (Non-GAAP) of $15.4 million, or $0.92 per diluted share, compared to GAAP net income of $13.5 million, or $0.81 per diluted share, and core earnings (Non-GAAP) of $14.7 million, or $0.88 per diluted share, in the first quarter of 2026. SECOND QUARTER 2026 HIGHLIGHTS (all comparisons to first quarter 2026, unless otherwise noted) • Net interest margin of 3.61%, compared to 3.54% • 1.31% return on assets; 1.33% core return on assets (Non-GAAP) • 11.16% return on equity; 11.30% core return on equity (Non-GAAP) • 55.76% efficiency ratio (Non-GAAP), compared to 56.92% Bar Harbor Bankshares’ President and Chief Executive Officer, Curtis C. Simard, stated, “During the quarter we affirmed our commitment to consistently delivering strong financial results and long-term shareholder value while remaining dedicated to our customers. This commitment is clear not only in our results, but has also gained us recognition by Forbes Magazine as one of America’s “Best-in-State Banks” for the fifth consecutive year. We continue to grow capital organically and have essentially earned back our dilution from our acquisition last year within a year. Halfway through 2026, we are proud of what we have accomplished so far and are well-positioned for what’s ahead.” DIVIDEND DECLARED The Board of Directors of the Company voted to declare a cash dividend of $0.34 per share to shareholders of record at the close of business on August 20, 2026, payable on September 18, 2026. The dividend equates to a 3.60% annualized yield based on the $37.76 closing share price of the Company’s common stock on June 30, 2026, the last trading day of the second quarter 2026. FINANCIAL CONDITION (Quarter results for June 30, 2026 compared to March 31, 2026) Total assets increased slightly to $4.7 billion at the end of the second quarter 2026, the 1% increase was primarily due to loan growth as well as increased interest-earning deposits with other banks. Total cash and cash equivalents were $104.4 million at the end of the second quarter 2026, compared to $82.2 million at the end of the first quarter 2026. Interest-earning deposits with other banks increased to $58.1 million at the end of the second quarter 2026, compared to $46.6 million at the end of the first quarter 2026. While end of quarter balances were higher due to timing, averages remained consistent with a yield of 3.92% and 3.90%, respectively. Available-for-sale debt securities were $601.8 million compared to $598.0 million at the end of the first quarter 2026. Portfolio unrealized losses were $45.0 million at quarter-end compared to $45.7 million at the end of the first quarter 2026. During the quarter there were purchases of $27.4 million, paydowns and calls of $21.0 million and net accretion of $429 thousand. The quarter-to-date weighted average yield of the securities portfolio was 4.06% compared to 4.05% at the end of the first quarter 2026. As of the second quarter 2026 and the first quarter 2026, our securities portfolio had an average life of 7.2 years and 7.6 years respectively, with an effective duration of 5.2 years and 5.4 years, respectively. At the end of the second quarter 2026, all securities remain classified as available for sale. Federal Home Loan Bank stock increased $3.8 million to $13.4 million at the end of the second quarter 2026 compared to $9.6 million at the end of the first quarter 2026, primarily driven by the increase in wholesale borrowings. Total loans increased $28.9 million to $3.6 billion in the second quarter 2026 compared to the first quarter 2026 driven primarily by an increase in commercial real estate loans. Commercial real estate loans increased $20.3 million driven by $59.0 million in originations during the quarter, partially offset by $18.3 million in loans that matured and paid off during the quarter. Commercial and industrial loans increased $15.7 million and included $33.4 million of originations during the quarter. Residential real estate loans decreased $10.4
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BHB - Bar Harbor Bankshares Page 2 www.barharbor.bank million during the quarter due to $29.1 million in payoffs and $11.0 million in paydowns, partially offset by $29.7 million in originations. Loans held for sale were $10.2 million in the second quarter 2026 compared to $11.5 million in the first quarter 2026 as we originated $24.9 million in loans held for sale and sold $26.2 million in loans during the quarter. The allowance for credit losses (“ACL”) on loans was $32.2 million at the end of the second quarter 2026, compared to $34.3 million at the end of the first quarter 2026. The change in the allowance was primarily driven by a $3.3 million partial charge-off related to a previously non-accruing relationship that was moved into other real estate owned and that carried significant specific reserves at the end of the first quarter 2026. Premises and equipment increased in the second quarter 2026 to $61.2 million compared to $58.9 million at the end of the first quarter 2026, driven by on-going renovation projects. Bank owned life insurance decreased $1.1 million primarily reflecting the recognition of a death benefit during the quarter. Total deposits remained consistent at $3.9 billion at the end of the second quarter 2026. During the quarter we witnessed a shift in our deposit mix from interest-bearing accounts to non-interest bearing demand deposits. Non-interest bearing demand deposits increased $26.8 million driven by 1,893 new account openings. Interest-bearing deposits decreased across all categories primarily driven by seasonality and tax payments. Total borrowings increased $65.5 million in the second quarter 2026 to $281.2 million compared to $215.7 million in the first quarter 2026. The increase was driven by higher wholesale borrowings to fund loan originations. The Company's book value per share was $32.80 at the end of the second quarter 2026 compared to $32.13 at the end of the first quarter 2026. Tangible book value per share (non-GAAP) was $23.43 at the end of the second quarter 2026, compared to $22.71 at the end of the first quarter 2026. RESULTS OF OPERATIONS (Quarter results for June 30, 2026 compared to June 30, 2025) The net interest margin was 3.61% in the second quarter 2026 compared to 3.23% in the same quarter 2025. As loan balances grew year-over-year the yield on loans expanded 4 basis points to 5.52% compared to 5.48% in the same period of 2025. Interest-bearing deposit costs decreased year-over-year to 1.88% compared to 2.28% in the same period of 2025. Total interest and dividend income increased by 15% or $7.2 million to $55.9 million in the second quarter 2026 compared to $48.7 million in the second quarter 2025. Yields on earning assets grew to 5.29% in the second quarter 2026 compared to 5.23% in the second quarter 2025. The increase is driven by the securities yield expansion of 20 basis points to 4.06% in the second quarter 2026 compared to 3.86% in the same period of 2025. The increase is primarily due to $115.6 million in acquired investments from the acquisition of Woodsville Guaranty Savings Bank (“Woodsville”). The loan yield increased in part due to the acquisition of $413.4 million in loans from Woodsville but also includes $48.1 million in organic growth. Residential loan yield expansion was the primary driver as the yield increased to 4.62% for the second quarter 2026 from 4.14% in the second quarter of 2025. Total loan yield growth was partially offset by a decrease in the commercial and industrial yield to 6.17% for the second quarter 2026 from 6.41% in the second quarter 2025 driven by the decrease in rates of adjustable-rate loans. Total interest expense decreased $806 thousand in the second quarter 2026 compared to the second quarter 2025. Deposit costs were down $873 thousand year-over-year as the cost of interest-bearing deposits decreased to 1.88% in the second quarter 2026 from 2.28% in the same period of 2025. Borrowing costs increased $67 thousand, or 2% year-over-year, driven by the subordinated debt acquired from Woodsville. The provision for credit losses on loans in the second quarter 2026 was $1.3 million compared to $528 thousand in the same period of 2025. The allowance for credit losses to total loans coverage ratio for the second quarter 2026 remains well-funded and was 0.89% compared to 0.96% in the first quarter of 2026 and 0.92% in the second quarter of 2025. Non-interest income increased $7.1 million in the second quarter 2026 to $11.7 million compared to $4.6 million in the same quarter 2025. The increase was primarily driven by increases in customer service fees in the second quarter 2026 compared to the same period of 2025 and a loss on sales of securities of $25 thousand compared to $4.9 million for the same period of 2025. Trust management fee income increased $314 thousand driven by the 12%, or $330.0 million, increase in assets under management compared to the same period of 2025. Bank owned life insurance income increased $815 thousand in the second quarter of 2026 compared to the second quarter of 2025 primarily due to a death benefit during the quarter. Non-interest expenses increased $2.7 million to $29.2 million in the second quarter 2026 compared to $26.5 million in the second quarter 2025. The increase was driven by higher salaries and employee benefits costs of $16.8 million in the second quarter 2026 compared to
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$14.3 million in the second quarter 2025 as full-time equivalents increased to 530 from 455 as of June 30, 2025. Occupancy and equipment increased $746 thousand driven primarily by higher maintenance contract costs from the acquisition of Woodsville. Amortization of intangible assets increased $349 thousand, reflecting incremental amortization associated with the Woodsville acquisition. Acquisition, conversion and other expenses decreased $1.2 million from the second quarter of 2025 as expenses related to the acquisition neared completion. Other expenses increased $896 thousand for the second quarter 2026 compared to the second quarter 2025 primarily due to expenses related to other real estate owned. Income tax expense was $4.0 million for the second quarter 2026 compared to $1.4 million for the second quarter of 2025. Our GAAP effective tax rate for the second quarter 2026 was 20.8% and 18.5% in the second quarter 2025. BACKGROUND Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 135 years. Bar Harbor Bank & Trust provides full-service community banking with office locations in all three Northern New England states of Maine, New Hampshire and Vermont. For more information, visit www.barharbor.bank. FORWARD-LOOKING STATEMENTS All statements, other than statements of historical fact, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this release the words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” and “potential,” and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements relating to Company’s balance sheet management, our credit trends, our overall credit performance, and the Company’s strategic plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward- looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to: (1) changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; (2) changes in consumer behavior due to political, business, and economic conditions, including ongoing armed conflicts, inflation, future United States government shutdowns, and concerns about liquidity; (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; (4) the impact of liquidity needs on our results of operations and financial condition; (5) changes in the size and nature of our competition; (6) the effect of interest rate increases on the cost of deposits; (7) unanticipated weakness in loan demand, pricing, or collectability; (8) the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; (9) operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, climate change, war, terrorism, civil unrest, and future pandemics; (10) lack of strategic growth opportunities or our failure to execute on available opportunities, (11) our ability to effectively manage problem credits; (12) our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; (13) our ability to retain executive officers and key employees and their customer and community relationships; (14) regulatory, litigation, and reputational risks and the applicability of insurance coverage; (15) changes in the reliability of our vendors, internal control systems, or information systems; (16) changes in legislation or regulation and accounting principles, policies, and guidelines; (17) reductions in the market value or outflows of wealth management assets under management; (18) the impacts of tariffs, sanctions, and other trade policies of the United States and its global trading counterparts; and (19) changes in the assumptions used in making such forward-looking statements. Additional factors which could affect the forward-looking statements can be found in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company’s ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement. NON-GAAP FINANCIAL MEASURES This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information.
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BHB - Bar Harbor Bankshares Page 3 www.barharbor.bank
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BHB - Bar Harbor Bankshares Page 4 www.barharbor.bank Because non-GAAP financial measures presented in this document are not measurements determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures presented by other companies. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company's results for any particular quarter or year. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information. The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense. The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community. ###
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BHB - Bar Harbor Bankshares Page 5 www.barharbor.bank CONTACTS Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314 TABLE INDEX CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) A Selected Financial Highlights B Balance Sheets C Loan and Deposit Analysis D Statements of Income E Statements of Income (Five Quarter Trend) F Average Yields and Costs G Average Balances H Asset Quality Analysis I-J Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data
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A BAR HARBOR BANKSHARES SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,2026 2026 2025 2025 2025 PER SHARE DATA Net earnings, diluted $ 0.91 $ 0.81 $ 0.70 $ 0.54 $ 0.40 Core earnings, diluted (1) 0.92 0.88 0.93 0.95 0.70 Total book value 32.80 32.13 31.88 31.22 30.60 Tangible book value (1) 23.43 22.71 22.41 21.70 22.58 Market price at period end 37.76 32.45 31.05 30.46 29.96 Dividends 0.34 0.32 0.32 0.32 0.32 PERFORMANCE RATIOS (2) Return on assets 1.31% 1.18% 1.00% 0.78% 0.60% Core return on assets (1) 1.33 1.28 1.32 1.35 1.06 Pre-tax, pre-provision return on assets (1) 1.76 1.52 1.29 1.30 0.79 Core pre-tax, pre-provision return on assets (1) 1.79 1.65 1.71 1.71 1.39 Return on equity 11.16 10.13 8.76 6.99 5.21 Core return on equity (1) 11.30 11.03 11.55 12.16 9.19 Return on tangible equity (1) 16.11 14.77 12.94 10.07 7.26 Core return on tangible equity (1) 16.31 16.03 16.91 17.23 12.66 Net interest margin, fully taxable equivalent (1) (3) 3.61 3.54 3.62 3.56 3.23 Efficiency ratio (1) 55.76 56.92 57.24 56.70 62.10 FINANCIAL DATA (In millions) Total assets $ 4,743 $ 4,676 $ 4,684 $ 4,717 $ 4,112 Total earning assets (4) 4,343 4,297 4,297 4,336 3,789 Total available-for-sale debt securities 602 598 597 598 529 Total loans 3,614 3,585 3,606 3,584 3,153 Allowance for credit losses 32 34 34 34 29 Total goodwill and intangible assets 157 158 158 159 123 Total deposits 3,854 3,868 3,821 3,948 3,292 Total shareholders' equity 550 538 533 521 469 Net income 15 14 12 9 6 Core earnings (1) 15 15 16 15 11 ASSET QUALITY AND CONDITION RATIOS Net charge-offs (recoveries)(5)/average loans 0.38% —% 0.03% 0.04% 0.03% Allowance for credit losses on loans/total loans 0.89 0.96 0.94 0.95 0.92 Loans/deposits 94 93 94 91 96 Shareholders' equity to total assets 11.59 11.50 11.37 11.04 11.40 Tangible shareholders' equity to tangible assets 8.56 8.42 8.27 7.94 8.67 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information. (2) All performance ratios are based on average balance sheet amounts, where applicable. (3) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans. (4) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost. (5) Current quarter annualized.
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B BAR HARBOR BANKSHARES CONSOLIDATED BALANCE SHEETS - UNAUDITED Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,(in thousands) 2026 2026 2025 2025 2025 Assets Cash and due from banks $ 46,270 $ 35,595 $ 44,947 $ 42,743 $ 50,948 Interest-earning deposits with other banks 58,118 46,620 35,890 93,971 36,087 Total cash and cash equivalents 104,388 82,215 80,837 136,714 87,035 Available-for-sale debt securities 601,772 597,977 597,424 597,810 528,690 Federal Home Loan Bank stock 13,423 9,567 11,308 8,560 12,695 Loans held for sale 10,203 11,534 5,283 5,545 2,829 Total loans 3,614,180 3,585,248 3,605,859 3,583,716 3,152,664 Less: Allowance for credit losses on loans (32,231) (34,315) (34,052) (33,940) (28,885) Net loans 3,581,949 3,550,933 3,571,807 3,549,776 3,123,779 Premises and equipment, net 61,170 58,914 58,188 58,828 52,647 Other real estate owned 8,170 — — — — Goodwill 141,819 141,819 141,819 141,819 119,477 Other intangible assets 15,242 15,824 16,407 16,989 3,472 Cash surrender value of bank-owned life insurance 88,728 89,817 96,250 95,554 83,074 Deferred tax asset, net 28,859 30,298 29,926 31,721 23,290 Other assets 86,779 87,330 74,642 73,936 75,017 Total assets $ 4,742,502 $ 4,676,228 $ 4,683,891 $ 4,717,252 $ 4,112,005 Liabilities and shareholders' equity Non-interest bearing demand $ 678,081 $ 651,282 $ 670,786 $ 692,780 $ 552,074 Interest-bearing demand 1,141,043 1,152,888 1,137,730 1,137,362 931,854 Savings 635,316 649,302 635,329 647,428 542,579 Money market 481,815 493,432 464,843 488,633 370,709 Time 917,694 920,811 912,594 981,993 894,772 Total deposits 3,853,949 3,867,715 3,821,282 3,948,196 3,291,988 Senior borrowings 227,541 162,297 216,818 139,956 256,441 Subordinated borrowings 53,620 53,420 52,825 52,229 40,620 Total borrowings 281,161 215,717 269,643 192,185 297,061 Other liabilities 57,840 54,859 60,425 55,916 54,096 Total liabilities 4,192,950 4,138,291 4,151,350 4,196,297 3,643,145 Total shareholders’ equity 549,552 537,937 532,541 520,955 468,860 Total liabilities and shareholders’ equity $ 4,742,502 $ 4,676,228 $ 4,683,891 $ 4,717,252 $ 4,112,005 Net shares outstanding 16,754 16,742 16,702 16,689 15,322
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C BAR HARBOR BANKSHARES CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED LOAN ANALYSIS Organic AnnualizedGrowth % Jun 30, Mar 31, Dec 31, Sept 30, Acquired WGSB Jun 30, Quarter Year (in thousands) 2026 2026 2025 2025 Balances (1) 2025 to Date to Date Commercial real estate $ 1,988,695 $ 1,968,403 $ 1,998,603 $ 1,942,659 $ 117,832 $ 1,767,206 4 (1)% Commercial and industrial 433,371 417,657 393,851 405,759 25,651 400,908 15 20 Total commercial loans 2,422,066 2,386,060 2,392,454 2,348,418 143,483 2,168,114 6 2 Residential real estate 983,274 993,636 1,001,769 1,025,266 248,484 796,184 (4) (4) Consumer 132,570 127,681 128,029 126,345 16,215 111,036 15 7 Tax exempt and other 76,270 77,871 83,607 83,687 5,226 77,330 (8) (18) Total loans $ 3,614,180 $ 3,585,248 $ 3,605,859 $ 3,583,716 $ 413,408 $ 3,152,664 3% —% 1. Acquired Woodsville Guaranty Savings Bank (WGSB) Balances are as of August 1, 2025. DEPOSIT ANALYSIS Organic AnnualizedGrowth % Jun 30, Mar 31, Dec 31, Sept 30, Acquired WGSB Jun 30, Quarter Year (in thousands) 2026 2026 2025 2025 Balances (1) 2025 to Date to Date Non-interest bearing demand $ 678,081 $ 651,282 $ 670,786 $ 692,780 $ 89,274 $ 552,074 16% 2 % Interest- bearing demand 1,141,043 1,152,888 1,137,730 1,137,362 185,802 931,854 (4) 1 Savings 635,316 649,302 635,329 647,428 104,792 542,579 (9) — Money market 481,815 493,432 464,843 488,633 52,470 370,709 (9) 7 Total non- maturity deposits 2,936,255 2,946,904 2,908,688 2,966,203 432,338 2,397,216 (1) 2 Time 917,694 920,811 912,594 981,993 98,951 894,772 (1) 1 Total deposits $ 3,853,949 $ 3,867,715 $ 3,821,282 $ 3,948,196 $ 531,289 $ 3,291,988 (1)% 2 % 1. Acquired Woodsville Guaranty Savings Bank (WGSB) Balances are as of August 1, 2025.
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D BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED Three Months Ended Six Months EndedJune 30, June 30, (in thousands, except per share data) 2026 2025 2026 2025 Interest and dividend income Loans $ 49,151 $ 42,726 $ 97,809 $ 84,530 Securities available for sale 6,319 5,474 12,523 10,757 Federal Home Loan Bank stock 183 212 338 349 Interest-earning deposits with other banks 253 276 486 590 Total interest and dividend income 55,906 48,688 111,156 96,226 Interest expense Deposits 14,638 15,511 29,527 31,023 Borrowings 3,349 3,282 6,838 6,301 Total interest expense 17,987 18,793 36,365 37,324 Net interest income 37,919 29,895 74,791 58,902 Provision for credit losses on available-for-sale debt securities — — — 636 Provision for credit losses on loans 1,250 528 1,555 471 Net interest income after provision for credit losses 36,669 29,367 73,236 57,795 Non-interest income Trust and investment management fee income 4,577 4,263 8,692 8,179 Customer service fees 4,715 3,589 8,817 7,114 (Loss) gain on available-for-sale debt securities, net (25) (4,942) (1,033) (4,942) Mortgage banking income 741 605 1,423 1,061 Bank-owned life insurance income 1,417 602 3,404 1,216 Customer derivative income 76 104 405 316 Other income 231 425 438 620 Total non-interest income 11,732 4,646 22,146 13,564 Non-interest expense Salaries and employee benefits 16,833 14,274 32,606 28,007 Occupancy and equipment 4,292 3,546 8,328 6,871 Depreciation 1,088 1,023 2,222 2,072 Loss (gain) on premises and equipment, net — 3 134 93 Outside services 528 457 992 939 Professional services 388 514 737 1,106 Communication 211 194 459 360 Marketing 570 682 1,175 1,200 Amortization of intangible assets 582 233 1,164 466 FDIC assessment 537 464 1,114 920 Acquisition, conversion and other expenses (36) 1,205 1,419 1,444 Provision for unfunded commitments (650) — (876) (74) Other expenses 4,839 3,943 9,535 7,785 Total non-interest expense 29,182 26,538 59,009 51,189 Income before income taxes 19,219 7,475 36,373 20,170 Income tax expense 3,998 1,383 7,615 3,867 Net income $ 15,221 $ 6,092 $ 28,758 $ 16,303 Earnings per share: Basic $ 0.91 $ 0.40 $ 1.72 $ 1.06 Diluted 0.91 0.40 1.71 1.06 Weighted average shares outstanding: Basic 16,751 15,321 16,740 15,312 Diluted 16,808 15,372 16,806 15,382
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E BAR HARBOR BANKSHARES CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,(in thousands, except per share data) 2026 2026 2025 2025 2025 Interest and dividend income Loans $ 49,151 $ 48,658 $ 50,164 $ 48,426 $ 42,726 Securities and other 6,319 6,204 6,327 6,355 5,474 Federal Home Loan Bank stock 183 155 235 217 212 Interest-earning deposits with other banks 253 233 645 924 276 Total interest and dividend income 55,906 55,250 57,371 55,922 48,688 Interest expense Deposits 14,638 14,889 16,083 16,419 15,511 Borrowings 3,349 3,489 2,671 2,544 3,282 Total interest expense 17,987 18,378 18,754 18,963 18,793 Net interest income 37,919 36,872 38,617 36,959 29,895 Provision for credit losses on available-for-sale debt securities — — — — — Provision (benefit) for credit losses on loans 1,250 305 416 3,749 528 Net interest income after provision for credit losses 36,669 36,567 38,201 33,210 29,367 Non-interest income Trust and investment management fee income 4,577 4,115 3,984 3,903 4,263 Customer service fees 4,715 4,102 4,528 4,311 3,589 (Loss) gain on available-for-sale debt securities, net (1) (25) (1,008) (428) 41 (4,942) Mortgage banking income 741 682 485 423 605 Bank-owned life insurance income 1,417 1,987 695 665 602 Customer derivative income 76 329 735 962 104 Other income 231 207 326 262 425 Total non-interest income 11,732 10,414 10,325 10,567 4,646 Non-interest expense Salaries and employee benefits 16,833 15,773 16,588 15,939 14,274 Occupancy and equipment 4,292 4,036 3,780 3,879 3,546 Depreciation 1,088 1,134 1,153 1,078 1,023 Loss (gain) on premises and equipment, net — 134 370 (206) 3 Outside services 528 464 564 514 457 Professional services 388 349 407 296 514 Communication 211 248 271 246 194 Marketing 570 605 181 655 682 Amortization of intangible assets 582 582 582 466 233 FDIC assessment 537 577 539 462 464 Acquisition, conversion and other expenses (36) 1,455 4,170 4,978 1,205 Provision for unfunded commitments (650) (226) 725 145 — Other expenses 4,839 4,696 4,469 4,287 3,943 Total non-interest expense 29,182 29,827 33,799 32,739 26,538 Income before income taxes 19,219 17,154 14,727 11,038 7,475 Income tax expense 3,998 3,617 2,966 2,183 1,383 Net income $ 15,221 $ 13,537 $ 11,761 $ 8,855 $ 6,092 Earnings per share: Basic $ 0.91 $ 0.81 $ 0.70 $ 0.55 $ 0.40 Diluted 0.91 0.81 0.70 0.54 0.40 Weighted average shares outstanding: Basic 16,751 16,728 16,696 16,231 15,321 Diluted 16,808 16,804 16,757 16,284 15,372 (1) The $4.9 million loss in June 2025 includes a $4.5 million loss on corporate debt securities and $549 thousand on a matured debt security.
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F BAR HARBOR BANKSHARES AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sept 30, Jun 30, 2026 2026 2025 2025 2025 Earning assets Interest-earning deposits with other banks 3.92% 3.90% 4.53% 4.49% 4.68% Available-for-sale debt securities 4.06 4.05 4.03 4.14 3.86 Federal Home Loan Bank stock 6.33 5.68 10.72 7.71 7.20 Loans: Commercial real estate 5.72 5.68 5.74 5.88 5.76 Commercial and industrial 6.17 6.13 6.34 6.45 6.41 Residential real estate 4.62 4.64 4.75 4.42 4.14 Consumer 7.05 6.90 7.27 7.23 6.98 Total loans 5.52 5.50 5.59 5.60 5.48 Total earning assets 5.29% 5.27% 5.36% 5.36% 5.23% Funding liabilities Deposits: Interest-bearing demand 1.32% 1.30% 1.39% 1.42% 1.44% Savings 0.50 0.56 0.54 0.64 0.71 Money market 2.33 2.28 2.43 2.59 2.75 Time 3.32 3.41 3.53 3.64 3.91 Total interest-bearing deposits 1.88 1.91 2.01 2.12 2.28 Borrowings 5.05 5.62 5.43 4.04 4.85 Total interest-bearing liabilities 2.13% 2.19% 2.20% 2.27% 2.51% Net interest spread 3.16 3.08 3.16 3.09 2.72 Net interest margin, fully taxable equivalent(1) 3.61 3.54 3.62 3.56 3.23 (1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.
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G BAR HARBOR BANKSHARES AVERAGE BALANCES - UNAUDITED Quarters Ended Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,(in thousands) 2026 2026 2025 2025 2025 Assets Interest-earning deposits with other banks (1) $ 25,896 $ 24,230 $ 56,502 $ 81,709 $ 23,643 Available-for-sale debt securities (2) 647,755 643,647 644,929 631,572 591,462 Federal Home Loan Bank stock 11,592 11,062 8,696 11,168 11,804 Loans: Commercial real estate 1,975,080 2,001,851 1,954,841 1,887,267 1,766,720 Commercial and industrial 492,195 486,295 480,529 483,380 469,816 Residential real estate 993,933 998,862 1,021,309 963,311 804,469 Consumer 130,890 127,693 126,953 120,941 109,023 Total loans (3) 3,592,098 3,614,701 3,583,632 3,454,899 3,150,028 Total earning assets 4,277,341 4,293,640 4,293,759 4,179,348 3,776,937 Cash and due from banks 37,089 36,278 40,291 38,709 29,861 Allowance for credit losses (33,242) (34,195) (33,905) (31,246) (28,786) Goodwill and other intangible assets 157,345 157,921 158,507 139,822 123,062 Other assets 215,460 215,852 211,317 191,446 169,540 Total assets $ 4,653,993 $ 4,669,496 $ 4,669,969 $ 4,518,079 $ 4,070,614 Liabilities and shareholders' equity Deposits: Interest-bearing demand $ 1,119,195 $ 1,121,021 $ 1,127,456 $ 1,059,214 $ 906,557 Savings 640,852 642,717 640,577 617,314 545,304 Money market 463,296 469,496 473,574 432,952 392,034 Time 902,363 922,180 939,353 961,054 883,491 Total interest-bearing deposits 3,125,706 3,155,414 3,180,960 3,070,534 2,727,386 Borrowings 265,929 251,985 195,139 250,110 271,410 Total interest-bearing liabilities 3,391,635 3,407,399 3,376,099 3,320,644 2,998,796 Non-interest bearing demand deposits 657,470 659,506 705,245 647,981 545,308 Other liabilities 57,702 60,814 56,025 46,962 57,268 Total liabilities 4,106,807 4,127,719 4,137,369 4,015,587 3,601,372 Total shareholders' equity 547,186 541,777 532,600 502,492 469,242 Total liabilities and shareholders' equity $ 4,653,993 $ 4,669,496 $ 4,669,969 $ 4,518,079 $ 4,070,614 (1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter. (2) Average balances for available-for-sale debt securities are based on amortized cost. (3) Total average loans include non-accruing loans and loans held for sale.
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BAR HARBOR BANKSHARES ASSET QUALITY ANALYSIS - UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sept 30, Jun 30, (in thousands) 2026 2026 2025 2025 2025 NON-PERFORMING ASSETS Non-accruing loans: Commercial real estate $ 902 $ 12,620 $ 1,497 $ 697 $ 1,033 Commercial and industrial 1,003 1,139 1,113 1,221 1,344 Residential real estate 8,314 8,206 7,719 6,541 6,411 Consumer 1,199 1,176 1,265 1,051 944 Total non-accruing loans 11,418 23,141 11,594 9,510 9,732 Non-performing available-for-sale debt securities 1,329 1,329 2,203 2,203 2,403 Other real estate owned 8,170 — — — — Total non-performing assets $ 20,917 $ 24,470 $ 13,797 $ 11,713 $ 12,135 Total non-accruing loans/total loans 0.32% 0.65% 0.32% 0.27% 0.31% Total non-performing assets/total assets 0.44 0.52 0.29 0.25 0.30 PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance at beginning of period $ 34,315 $ 34,052 $ 33,940 $ 28,885 $ 28,614 Charged-off loans (3,463) (97) (318) (353) (266) Recoveries on charged-off loans 57 55 14 37 9 Net loans (charged-off) recovered (3,406) (42) (304) (316) (257) ACL established on PCD loans — — — 1,622 — ACL established on purchased seasoned loans 72 — — — — Provision for credit losses on loans 1,250 305 416 3,749 528 Balance at end of period $ 32,231 $ 34,315 $ 34,052 $ 33,940 $ 28,885 Allowance for credit losses/total loans 0.89% 0.96% 0.94% 0.95% 0.92% Allowance for credit losses/non-accruing loans 282 148 294 357 297 NET LOAN (CHARGE-OFFS) RECOVERIES Commercial real estate $ (3,283) $ — $ — $ (224) $ — Commercial and industrial (15) 35 (256) 18 (204) Residential real estate (21) 8 8 (112) 6 Consumer (87) (85) (56) 2 (59) Total, net $ (3,406) $ (42) $ (304) $ (316) $ (257) Net charge-offs (recoveries) (QTD annualized)/average loans 0.38% —% 0.03% 0.04% 0.03% Net charge-offs (recoveries) (YTD annualized)/average loans 0.19 — 0.03 0.02 0.02 PROVISION AND ALLOWANCE FOR CREDIT LOSSES ON AVAILABLE-FOR-SALE DEBT SECURITIES Balance at beginning of period $ — $ — $ — $ — $ 1,204 Charged-off interest receivable on available-for-sale debt securities — — — — — Provision for credit losses on available-for-sale debt securities — — — — — Charged-off previously provisioned allowance for credit loss — — — — (1,204) Balance at end of period $ — $ — $ — $ — $ —
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H
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BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sept 30, Jun 30,(in thousands) 2026 2026 2025 2025 2025 Net income (R) $ 15,221 $ 13,537 $ 11,761 $ 8,855 $ 6,092 Non-core items: Loss (gain) on available-for-sale debt securities, net (6) 25 — 428 (41) 4,942 Loss (gain) on premises and equipment, net — 134 370 (206) 3 (Gain) loss and other expenses on other real estate owned 273 — — — — Provision on non-PCD acquired loans — — — 3,954 — Acquisition, conversion and other expenses (36) 1,455 4,170 4,978 1,205 Income tax expense (1) (65) (392) (1,225) (2,141) (1,492) Total non-core items (2) 197 1,197 3,743 6,544 4,658 Core earnings (2) (A) $ 15,418 $ 14,734 $ 15,504 $ 15,399 $ 10,750 Net interest income (B) $ 37,919 $ 36,872 $ 38,617 $ 36,959 $ 29,895 Non-interest income 11,732 10,414 10,325 10,567 4,646 Total revenue 49,651 47,286 48,942 47,526 34,541 Loss (gain) on available-for-sale debt securities, net (6) 25 — 428 (41) 4,942 Total core revenue (2) (C) $ 49,676 $ 47,286 $ 49,370 $ 47,485 $ 39,483 Total non-interest expense 29,182 29,827 33,799 32,739 26,538 Non-core expenses: (Loss) gain on premises and equipment, net — (134) (370) 206 (3) Gain (loss) and other expenses on other real estate owned (273) — — — — Acquisition, conversion and other expenses 36 (1,455) (4,170) (4,978) (1,205) Total non-core expenses (2) (237) (1,589) (4,540) (4,772) (1,208) Core non-interest expense (2) (D) $ 28,945 $ 28,238 $ 29,259 $ 27,967 $ 25,330 Total revenue 49,651 47,286 48,942 47,526 34,541 Total non-interest expense 29,182 29,827 33,799 32,739 26,538 Pre-tax, pre-provision net revenue(2) (S) $ 20,469 $ 17,459 $ 15,143 $ 14,787 $ 8,003 Core revenue(2) 49,676 47,286 49,370 47,485 39,483 Core non-interest expense(2) 28,945 28,238 29,259 27,967 25,330 Core pre-tax, pre-provision net revenue(2) (U) $ 20,731 $ 19,048 $ 20,111 $ 19,518 $ 14,153 (in millions) Average earning assets (E) $ 4,277 $ 4,294 $ 4,294 $ 4,179 $ 3,777 Average assets (F) 4,654 4,669 4,670 4,518 4,071 Average shareholders' equity (G) 547 542 533 502 469 Average tangible shareholders' equity (2) (3) (H) 390 384 374 360 346 Tangible shareholders' equity, period-end (2) (3) (I) 392 380 374 362 346 Tangible assets, period-end (2) (3) (J) 4,585 4,519 4,526 4,563 3,989
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J BAR HARBOR BANKSHARES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED At or for the Quarters Ended Jun 30, Mar 31, Dec 31, Sept 30, Jun 30, (in thousands) 2026 2026 2025 2025 2025 Common shares outstanding, period-end (K) 16,754 16,742 16,702 16,689 15,322 Average diluted shares outstanding (L) 16,808 16,804 16,757 16,284 15,372 Core earnings per share, diluted (2) (A/L) $ 0.92 $ 0.88 $ 0.93 $ 0.95 $ 0.70 Tangible book value per share, period-end (2) (I/K) 23.43 22.71 22.41 21.70 22.58 Tangible shareholders' equity/total tangible assets (2) (I/J) 8.56 8.42 8.27 7.94 8.67 Performance ratios (4) GAAP return on assets 1.31% 1.18% 1.00% 0.78% 0.60% Core return on assets (2) (A/F) 1.33 1.28 1.32 1.35 1.06 Pre-tax, pre-provision return on assets(2) (S/F) 1.76 1.52 1.29 1.30 0.79 Core pre-tax, pre-provision return on assets (2) (U/F) 1.79 1.65 1.71 1.71 1.39 GAAP return on equity 11.16 10.13 8.76 6.99 5.21 Core return on equity (2) (A/G) 11.30 11.03 11.55 12.16 9.19 Return on tangible equity (1) (2) (R+Q)/H 16.11 14.77 12.94 10.07 7.26 Core return on tangible equity (1) (2) (A+Q)/H 16.31 16.03 16.91 17.23 12.66 Efficiency ratio (2) (5) (D-O-Q)/(C+N) 55.76 56.92 57.24 56.70 62.10 Net interest margin, fully taxable equivalent (2) (B+P)/E 3.61 3.54 3.62 3.56 3.23 Supplementary data (in thousands) Taxable equivalent adjustment for efficiency ratio (N) $ 905 $ 1,044 $ 766 $ 738 $ 706 Franchise taxes included in non-interest expense (O) 159 146 (22) 158 141 Tax equivalent adjustment for net interest margin (P) 556 554 595 574 560 Intangible amortization (Q) 582 582 582 466 233 (1) Assumes a marginal tax rate of 24.65% for the first and second quarters of 2026 and third and fourth quarters of 2025 and 24.26% in the second quarter of 2025. (2) Non-GAAP financial measure. (3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end. (4) All performance ratios are based on average balance sheet amounts, where applicable. (5) Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis. (6) The $4.9 million loss in the second quarter 2025 includes a $4.5 million loss on corporate debt securities and $549 thousand on a matured debt security.