BAR HARBOR BANKSHARES
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
BHB$41.01-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001558370-25-010548
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsSelected Financial DataConsolidated Loan and Deposit AnalysisAverage Balances and Average Yields/RatesReconciliation of Non-GAAP Financial MeasuresCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001104659-25-107763
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsSelected Financial DataConsolidated Loan and Deposit AnalysisAverage Balances and Average Yields/RatesReconciliation of Non-GAAP Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 80 previous paragraphs and 86 current paragraphs.
46 unchanged; 20 reworded; 18 added; 13 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 40 previous and 46 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Merger Completion with Guaranty Bancorp, Inc.
Current report
With the completion of the acquisition, we increased our presence in New Hampshire with the addition of 9 branches. As of September 30, 2025 we have over 60 branches across Maine and New Hampshire. Our total assets increased to $4.7 billion as of September 30, 2025.
Current report
million in borrowings were acquired from Woodsville of which $15.0 million was paid off shortly after acquisition. $119.2 million of the Company’s senior borrowings were paid down within the quarter.
Current report
Federal Home Loan Bank stock decreased to $8.6 million at the end of the third quarter 2025 compared to $12.2 million at the fourth quarter 2024. The acquisition of $4.4 million in FHLB stock was offset by net redemptions of $8.0 million in FHLB stock primarily driven by the strategic deployment of cash to pay down advances from the FHLB.
Current report
Total loans were $3.6 billion driven by the acquisition of $413.4 million from Woodsville. Total commercial loans increased to $2.3 billion from $2.1 billion in the fourth quarter 2024 with $143.5 million from the acquisition and organic growth of $75.1 million. Residential real estate loans increased to $1.0 billion driven by $248.5 million in acquired loans. Loans held for sale increased $4.3 million driven by demand for mortgage products with corresponding changes in the interest rate environment.
Current report
Total deposits grew to $4.0 billion at the end of the third quarter of 2025 driven by $531.3 million in acquired deposits related to the Woodsville acquisition complimented by $149.2 million in organic growth compared to the fourth quarter 2024. The increase was driven primarily by the acquisition of Woodsville and the organic growth of $41.4 in interest-bearing demand, $27.9 million in non-interest bearing demand, $30.4 million in money market, and $52.8 million in time accounts.
Current report
Senior borrowings decreased $110.0 million at the end of third quarter 2025 to $140.0 million as loan paydowns, deposits and proceeds from investment portfolio sales were strategically utilized to decrease borrowing levels. $97.0 million in borrowings were acquired from Woodsville of which $15.0 million were paid off shortly after acquisition. As a result of the acquisition, we acquired $11.2 million of subordinated debt from Woodsville in the third quarter 2025.
Current report
The net interest margin increased to 3.56% in the third quarter 2025 compared to 3.15% in the same respective quarter 2024. Loan income increased $6.4 million for the third quarter 2025 compared to the third quarter 2024 driven by $4.6 million from the Woodsville acquisition and $1.2 million by rate changes on the commercial portfolio.
Current report
The net interest margin for the nine months ended September 30, 2025 was 3.32% compared to 3.14% for the nine months ended September 30, 2024.
Current report
The net interest margin increased to 3.56% in the third quarter 2025 compared to 3.15% in the same respective quarter 2024. Loan income increased $6.4 million for the third quarter 2025 compared to the third quarter 2024 driven by $4.6 million from the Woodsville acquisition and $1.2 million by rate changes on the commercial portfolio.
Current report
Total interest expense decreased $659 thousand for deposits in the third quarter 2025 compared the third quarter 2024. Deposit costs were up $245 thousand or 1.5% year over year driven by the acquisition of $531.3 million in deposits from Woodsville partially offset by lower cost of funds on interest-bearing deposits yields at 2.12% from 2.35% for the third quarter ended 2024. Borrowing costs decreased $904 thousand or 26.2% driven by the $216.2 million in paydowns offset partially by $97 million in acquisition borrowings accompanied by lower borrowing rates at 4.04% for the third quarter 2025 compared to 4.57% for the third quarter 2024.
Current report
Total interest expense for the nine months ended September 30, 2025 was $56.3 million compared to $56.5 million for the same period ended 2024 driven by higher cost of funds on deposits. Cost of borrowings decreased $2.1 million driven by the strategic deployment of cash to pay down advances from FHLB.
Current report
The Company recorded a $4.0 million reserve on non-PCD loans established through provision expense.
Current report
Non-interest income increased $914 thousand in the third quarter 2025 to $10.6 million compared to $9.7 million in the same quarter 2024 primarily driven by customer service fees which increased $523 thousand driven by the Woodsville acquisition. Customer Derivative income increased $697 thousand year over year driven by timing of swaps and the interest rate environment. Trust management fee income offset decreases $226 thousand driven by financial service income timing.
Current report
Non-interest expenses increased $8.0 million to $32.7 million in the third quarter 2025 compared to $24.8 million in the third quarter 2024 driven by $5.0 million in acquisition expenses related to Woodsville. Salaries and benefits increased $1.6 million to $15.9 million in the third quarter 2025 compared to $14.4 million in the third quarter 2024 primarily due to cost-of-living adjustments, additional salary from the Woodsville acquisition, and employee insurance costs. Occupancy and equipment increased $474 thousand driven by higher computer processing fees and maintenance contract costs. Professional services fees decreased $145 thousand driven by timing, while marketing increased $221 thousand and amortization of intangibles increased $233 thousand due to the acquisition at the end of the third quarter 2025. Other expenses increased $520 thousand for the third quarter 2025 compared to the third quarter 2024 due primarily to increases in software expenses. Gain on sale of property increased year-over-year by $206 thousand driven by the sale of two properties in the third quarter 2025.
Current report
Non-interest expenses increased $11.8 million to $83.9 million for the nine months ended 2025 compared to the same period of 2024 driven primarily by $6.4 million in acquisition expenses from the Woodsville acquisition and $1.6 million in salaries and benefits mostly due to cost of living increases. Occupancy and equipment costs for the nine months ended 2025 were $10.8 million compared to $10.2 million for the same period 2024 driven by computer processing fees, maintenance contracts and lease expenses.
Current report
Income tax expense was $2.2 million for the third quarter 2025 compared to $1.4 million for the third quarter of 2024, respectively. Our GAAP effective tax rate third quarter 2025 and the third quarter 2024 was 20% compared to 10% and the effective tax rate on adjusted earnings was 22% and 20%, respectively. The prior year decrease in taxes and tax rate represents a one-time multiple year tax refund on tax exempt loan income and a state apportionment adjustment.
Current report
Income tax expense for the nine months ended 2025 was $6.1 million compared to $6.5 million in the same period 2024. The effective tax rate for the nine months ended 2025 was 19% compared to 17% for the same period 2024.
Removed paragraphs (13)
Previous report
Federal Home Loan Bank stock increased to $12.7 million at the end of the second quarter 2025 compared to $12.2 million at the fourth quarter 2024 driven by $6.5 million increase in advances to fund loan originations and investment purchases.
Previous report
Total loans were $3.2 billion driven by timing of originations and payoffs in addition to the interest rate environment. Commercial loans increased 4% annualized driven by growth of $25.9 million in the commercial real estate portfolio and $12.3 million in the commercial and industrial segment at the second quarter of 2025 and the fourth quarter 2024 respectively.
Previous report
Total deposits remained flat at $3.3 billion at the second quarter of 2025 and the fourth quarter 2024 respectively. We witnessed a shift in deposit mix driven by the interest rate environment, expected seasonal outflows in non-interest bearing deposits and wealth management brokerage transfers in the second quarter 2025 as money market deposits decreased $35.1 million offset by an increase of $21.7 million in interest-bearing deposits and an increase of $64.5 million in time deposits driven by interest rates.
Previous report
Senior borrowings increased $6.5 million at the second quarter 2025 compared to the fourth quarter 2024 to fund loan originations and purchase investments.
Previous report
Net interest Margin for the second quarter 2025 was 3.23% compared to 3.09% for the second quarter ended 2024. The Net interest Margin for the six months ended June 30, 2025 was 3.20% compared to 3.12% for the six months ended June 30, 2024.
Previous report
The net interest margin was 3.23% in the second quarter 2025 compared to 3.09% in same respective quarter 2024. As average loan balances grew $118.9 million year over year, the yield on loans grew 7 basis points to 5.48% in the second quarter 2025, up from 5.41% in the same quarter 2024. Costs of interest-bearing deposits decrease 7 basis points to 2.28% from 2.35% in the second quarter 2024 driven by the continued competitive pricing within the interest rate environment.
Previous report
Total interest expense decreased to $18.8 million in the second quarter 2025 compared to $19.1 million in the second quarter 2024 driven by a $1.0 million decrease in borrowing expenses driven by a decrease of $92.8 million in total borrowings partially offset with an increase in cost of funds. Average interest-bearing demand accounts and savings accounts increased $50.3 million in 2025 compared to the same quarter 2024. Average money market accounts increased $36.3 million for the period ended June 30, 2025 compared to 2024. While the yield on interest-bearing demand increased to 1.44% in the second quarter 2025 compared at 1.39% in the second quarter 2024, money market yields decreased to 2.75% from 2.93% compounded with a decrease in yields on time deposits to 3.91% from 4.33% in the second quarter 2024.
Previous report
Total interest expense for the six months ended June 30, 2025 was $37.3 million compared to $36.8 million for the same period ended 2024 driven by $1.7 million higher cost of funds on deposits driven a $166.5 million increase in average interest bearing deposits year over year offset by the same yield at 2.30% for both periods and lower borrowing costs. The increase in costs were partially offset by lower borrowing costs driven by a $73 million decrease in senior borrowing levels offset by higher rates year over year.
Previous report
The provision for credit losses on loans was $528 thousand in the second quarter 2025 compared to a provision of $585 thousand in the second quarter 2024 as credit quality continues to remain strong.
Previous report
Non-interest income was $4.6 million in the second quarter 2025 compared to $9.5 million in the same quarter 2024. The primary driver of the decrease is driven by the write down of an available-for-sale debt security previously discussed above. Other income increased $257 thousand increased primarily driven by MasterCard rebates received in the second quarter 2025.
Previous report
Non-interest expenses increased $2.7 million to $26.5 million in the second quarter 2025 compared to $23.8 million in the second quarter 2024 driven by a 3% increase or $414 thousand increase in salaries and benefits driven by cost of living increases and timing on gains on sales of premises and equipment of $251 thousand in the current quarter driven by timing of the Avery Lane property sale in the second quarter of 2024. Acquisition, conversion expenses increased $1.2 million driven the announcement of the acquisition of Guaranty. Professional services increased $276 thousand driven by legal and consulting fees for technology infrastructure enhancements and other projects.
Previous report
Non-interest expenses increased $3.8 million to $51.2 million for the six months ended 2025 compared to $47.3 million in the same period 2024 driven by $899 thousand in salaries and benefits attributed to cost of living increases and decreases in postretirement plan discount year over year driven by the interest rate environment. $356 thousand in timing of gains on premises and equipment, net as noted above. Professional services are $468 thousand higher for the six months ended 2025 at $1.1 million compared to $638 thousand for the same period 2024 driven by increased audit, legal and employee search fees.
Previous report
Income tax expense was $1.4 million in the second quarter 2025 compared to $2.5 million in the second quarter 2024, driven by lower pretax net income for quarter primarily due to the write-down of an available for sale debt security mentioned previously. The effective tax rate in the second quarter 2025 was 18.5%, compared to 19.8% in the same quarter of 2024. Income tax expense for the six month ended 2025 was $3.9 million compared to $5.1 million in the same period 2024. The effective tax rate for the six months ended 2025 was 19.2% compared to 20.0% for the same period 2024.
Reworded paragraphs (20)
Previous wording
The following is management’s discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three and six months ended June 30, 2025 and should be read in conjunction with our unaudited consolidated financial statements and condensed notes thereto included elsewhere in this Form 10-Q as well as our audited consolidated financial statements and notes thereto included in our Form 10-K. The following discussion contains "forward-looking statements" that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. Factors that could cause such differences are discussed in the sections titled "Cautionary Statement Regarding Forward-Looking Statements", “Part I, Item 1.A. Risk Factors” for the year ended December 31, 2024, and "Part II, Item 1A. Risk Factors" in this Form 10-Q. All amounts, dollars and percentages presented in this Form 10-Q are rounded and therefore approximate.
Current wording
The following is management’s discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three and nine months ended September 30, 2025 and should be read in conjunction with our unaudited consolidated financial statements and condensed notes thereto included elsewhere in this Form 10-Q as well as our audited consolidated financial statements and notes thereto included in our Form 10-K. The following discussion contains "forward-looking statements" that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. Factors that could cause such differences are discussed in the sections titled "Cautionary Statement Regarding Forward-Looking Statements", “Part I, Item 1.A. Risk Factors” for the year ended December 31, 2024, and "Part II, Item 1A. Risk Factors" in this Form 10-Q. All amounts, dollars and percentages presented in this Form 10-Q are rounded and therefore approximate.
Previous wording
On July 31, 2025, we completed our acquisition of Guaranty Bancorp, Inc. (“Guaranty”) and its bank subsidiary, Woodsville Guaranty Savings Bank (“Woodsville”).
Current wording
On July 31, 2025, we completed our acquisition of Guaranty Bancorp, Inc. (“Guaranty”), the parent company of Woodsville Guaranty Savings Bank (“Woodsville”), and its results of operations are included in the Company’s consolidated results since the date of acquisition. Therefore, the Company’s third quarter and nine months ended 2025 results reflect increased levels of average balances, net interest income, non-interest income and expense compared to its prior quarter and nine months ended of 2024 results. After purchase accounting fair value adjustments, the acquisition added $658.1 million of total assets, including $413.4 million of loans, as well as $641.2 million of total liabilities, primarily consisting of $531.3 million in deposits and $109.2 million in borrowings. The Company recorded goodwill of $22.3 million and core deposit intangibles of $14.0 million in other intangibles related to the acquisition.
Previous wording
Our accounting and reporting policies conform to GAAP and the prevailing practices in the financial services industry. However, we also evaluate our performance by reference to certain additional financial measures discussed in this Form 10-Q that we identify as being “non-GAAP financial measures.” In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both.
Current wording
adjustments that have the effect of excluding or including amounts, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both.
Previous wording
Total cash and cash equivalents were $87.0 million at the end of the second quarter 2025, compared to $72.2 million at the end of the fourth quarter 2024. Interest-earning deposits held with other banks remained steady at the end of the second quarter 2025 at $36.1, compared to $37.9 million at the end of the fourth quarter and yielded 4.68% and 4.92%, respectively. The change in cash balances was driven by pay downs in loans and investments.
Current wording
Total cash and cash equivalents were $136.7 million at the end of the third quarter 2025, compared to $72.2 million at the end of the fourth quarter 2024. Interest-earning deposits held with other banks increased at the end of the third quarter 2025 to $94.0 million, compared to $37.9 million at the end of the fourth quarter and yielded 4.49% and 4.92%, respectively. The change in cash balances was driven by pay downs in loans and the acquisition of Woodsville cash.
Previous wording
Securities available for sale was $528.7 million compared to $521.0 million in the fourth quarter 2024 driven primarily by purchases of $52.6 million, partially offset by $42.7 million in pay downs. The average yield of the total securities portfolio for the second quarter 2025 was 3.86% compared to 3.69% for the fourth quarter 2024 primarily due to the change in the profile of the yield curve and a shift from commercial lending obligation investments to agencies and higher coupon fixed-rate securities. Fair value adjustments were $64.1 million at the end of the second quarter 2025 compared to $62.3 million at the end of the fourth quarter 2024. As of the end of the second quarter 2025 and fourth quarter 2024, respectively, our securities portfolio maintained an average life of 8.4 and 9.0 years with an effective duration of 5.5 and 5.0 years. All securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.
Current wording
Securities available for sale was $597.8 million compared to $521.0 million in the fourth quarter 2024 driven by purchases of $67.7 million, $115.0 million in acquired investments, offset by $40.8 million in acquired investments sold, $73.1 million in paydowns and called securities. The average yield of the total securities portfolio for the third quarter 2025 was 4.14% compared to 3.69% for the fourth quarter 2024 primarily due to the change in the profile of the yield curve and a shift from commercial lending obligation investments to agencies and higher coupon fixed-rate securities. Fair value adjustments were $53.0 million at the end of the third quarter 2025 compared to $62.3 million at the end of the fourth quarter 2024. As of the end of the third quarter 2025 and fourth quarter 2024, respectively, our securities portfolio maintained an average life of 7.4 and 9.0 years with an effective duration of 5.3 and 5.0 years. All securities remain classified as available for sale to provide flexibility in asset funding and other opportunities as they arise.
Previous wording
Management recorded an allowance for credit losses on two corporate notes where there was a change in future estimated cash flows during the year ended December 31, 2024. A discounted cash flow approach was used to determine the amount of the allowance. The cash flows expected to be collected, after considering expected prepayments, are discounted at the original effective interest rate. During the quarter ended June 30, 2025, management recognized impairment losses of $4.9 million on available-for-sale debt securities and other receivables. The losses were included in net gain (loss) on available-for-sale debt securities in the consolidated statements of income. The losses were driven by credit deterioration caused by fraudulent activity by the borrower on a security initially investment-grade. The remaining $1.2 million in provision was charged-off in the current quarter as the Company had determined that it no longer intended to hold the security until recovery of the amortized cost basis.
Current wording
Management recorded an allowance for credit losses on two corporate notes where there was a change in future estimated cash flows during the year ended December 31, 2024. A discounted cash flow approach was used to determine the amount of the allowance. The cash flows expected to be collected, after considering expected prepayments, are discounted at the original effective interest rate. During the third quarter 2025, there was a $241 thousand gain on sale of acquired available-for-sale debt securities, and a $200 thousand write-off of the corporate debt securities compared to $5.6 million in the second quarter in corporate debt securities due to credit deterioration. For the nine months ended September 30, 2025, management wrote down $5.8 million on available-for-sale debt securities and other receivables. The losses were included in net gain (loss) on available-for-sale debt securities in the consolidated statements of income. The losses were driven by credit deterioration caused by fraudulent activity by the borrower on a security initially investment-grade.
Previous wording
The allowance for credit losses on loans increased nominally by $141 thousand to $28.9 million at the end of the second quarter 2025 compared to $28.7 million at the end of the fourth quarter 2024. The allowance for credit losses to total loans coverage ratio was 0.92% at the end of second quarter 2025 compared to 0.91% at the end of the fourth quarter 2024. Strong asset quality metrics and general macroeconomic trends impact the loan portfolio and drive ACL levels. The decrease in residential loans continues to be the main driver as residential loans decreased $30.3 million at the second quarter of 2025 and the fourth quarter 2024 respectively. The decrease in residential loans is a strategic decision towards a higher-performing commercially focused community bank in addition to the increase in demand within the secondary marketplace for originated loans. Charge-offs and individually analyzed reserves on non-accruing loans are minimal supported by relatively strong collateral values.
Current wording
The allowance for credit losses on loans increased $5.2 million to $33.9 million at the end of the third quarter 2025 compared to $28.7 million at the end of the fourth quarter 2024 driven by $4.0 million in reserves on non-PCD loans and $1.6 million in PCD loans from Woodsville. The allowance for credit losses to total loans coverage ratio was 0.95% at the end of third quarter 2025 compared to 0.91% at the end of the fourth quarter 2024. Strong asset quality metrics and general macroeconomic trends impact the loan portfolio and drive ACL levels.
Previous wording
The Company's book value per share was $30.60 as of the end of the second quarter 2025 compared to $30.00 at the end of the fourth quarter 2024. Tangible book value per share (non-GAAP) was $22.58 at the end of the second quarter 2025, compared to $21.93 at the end of the fourth quarter 2024.
Current wording
The Company's book value per share was $31.22 as of the end of the third quarter 2025 compared to $30.00 at the end of the fourth quarter 2024. Tangible book value per share (non-GAAP) was $21.70 at the end of the third quarter 2025, compared to $21.93 at the end of the fourth quarter 2024.
Previous wording
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024
Current wording
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024
Previous wording
Second quarter 2025 GAAP net income of $6.1 million or $0.40 per diluted share and core earnings (Non-GAAP) of $10.8 million or $0.70 per diluted share compared to GAAP net income of $10.3 million or $0.67 per diluted share and core earnings (Non-GAAP) of $10.0 or 0.66 per diluted share in the second quarter of 2024.
Current wording
Third quarter 2025 GAAP net income was $8.9 million or $0.54 per diluted share and adjusted earnings (Non-GAAP) was $15.4 million or $0.95 per diluted share compared to GAAP net income and adjusted earnings (Non-GAAP) of $12.2 million or $0.80 per diluted share in the third quarter of 2024.
Previous wording
At June 30, 2025 GAAP net income of $16.3 million or $1.06 per diluted share and core earnings (Non-GAAP) of $21.2 million or $1.38 per diluted share compared to GAAP net income of $20.4 million or $1.33 per diluted share and core earnings (Non-GAAP) of $20.0 or 1.31 per diluted share in the six months ended June 30, 2024.
Current wording
At September 30, 2025 year-to-date GAAP net income was $25.2 million or $1.60 per diluted share and adjusted earnings (Non-GAAP) was $36.6 million or $2.33 per diluted share compared to GAAP net income of $32.5 million or $2.13 per diluted share and adjusted earnings (Non-GAAP) of $32.2 million or $2.11 per diluted share in the nine months ended September 30, 2024.
Previous wording
Total interest and dividend income increased by 3.9% to $48.7 million in the second quarter 2025 compared to $46.8 million in the prior year primarily driven by the repricing of commercial adjustable-rate loans and a $112.2 million higher loan balances within the commercial portfolio. Yields on earning assets grew to 5.23% compared to 5.18% in the second quarter 2024. The yield on commercial real estate loans grew to 5.76% in the second quarter 2025 from 5.61% in the second quarter 2024. Total loan yield growth also experienced an increase in the residential real estate yield from 4.13% to 4.14% for the second quarter 2025, and the commercial and industrial yield decline from 6.76% in the second quarter of 2024 to 6.41% in the second quarter 2025.
Current wording
Total interest and dividend income increased by 15.1% or $7.3 million to $55.9 million in the third quarter 2025 compared to $48.6 million in the prior year primarily driven by the repricing of commercial adjustable-rate loans and $265.3 million higher loan balances within the commercial real estate portfolio driven by $117.8 million in acquired loans. Yields on earning assets grew to 5.36% compared to 5.24% in the third quarter 2024. The yield on commercial real estate loans grew to 5.88% in the third quarter 2025 from 5.67% in the third quarter 2024. Total loan yield growth was partially offset by a decrease in the commercial and industrial yields to 6.45% for the third quarter 2025 from 6.98% in the third quarter 2024. Consumer yield remained flat at 7.23% for the third quarter 2025 and 2024 respectively.
Previous wording
Total interest and dividend income increased by 3.8% to $96.2 million for the six months ended 2025 compared to $92.7 million in the prior year primarily driven by the same reasons noted for the quarter. Loans and a $112.2 million higher loan balances within the commercial portfolio. Yields on earning assets grew to 5.19% for the six months ended 2025 compared to 5.16% for the six months ended 2024. The yield on commercial real estate loans grew to 5.67% for the six months ended 2025 from 5.53% for the six months ended 2024. Total loan yield growth also experienced an increase in the residential real estate yield from 4.11% to 4.18% for the six months ended 2025, and the commercial and industrial yield decline from 6.71% for the six months ended 2024 to 6.49% for the six months ended 2025.
Current wording
Total interest and dividend income increased by 7.7% to $152.1 million for the nine months ended 2025 compared to $141.2 million in the prior year primarily driven by the same reasons noted for the quarter. Yields on earning assets grew to 5.23% for the nine months ended 2025 compared to 5.19% for the nine months ended 2024. The yield on commercial real estate loans grew to 5.73% for the nine months ended 2025 from 5.57% for the nine months ended 2024. The residential real estate yield increased from 4.12% to 4.23% and the commercial and industrial yield decreased to 6.47% from 6.80% for the nine months ended 2025 and 2024.
Previous wording
The net interest margin was 3.20% for the six months ended 2025 compared to 3.12% in same respective quarter 2024. As average loan balances grew $132.8 million year over year, the yield on loans grew to 5.45% for the six months ended 2025, up from 5.36% in the same period for 2024. Costs of interest-bearing deposits remained flat year over year for the six months ended at 2.30%.
Current wording
The net interest margin was 3.32% for the nine months ended 2025 compared to 3.14% in same respective quarter 2024. As average loan balances grew $231.6 million year over year, the yield on loans grew to 5.48% for the six months ended 2025, up from 5.40% in the same period for 2024. Costs of interest-bearing deposits decreased to 2.41% for the nine months ended 2025 compared to 2.59% for the nine months ended 2024.
Previous wording
There was no provision for available-for-sale investments in the second quarter of 2025 and 2024. We have one nonaccrual corporate bond of $8.0 million that we have written-off $5.6 million as of June 30, 2025, of which $4.9 million is recognized in losses on available-for-sale debt securities. At December 31, 2024 we had $9.0 million of corporate bonds that we allocated $568 thousand in related allowance for credit losses. In the first quarter of 2025, a $1.0 million nonaccrual security matured and was transferred to a financing receivable non-cash asset. As of June 30, 2025, the Company had determined that it no longer intended to hold the security until the recovery of the amortized cost bases.
Current wording
There was no provision for available-for-sale investments in the third quarter of 2025 and 2024. We have one nonaccrual corporate bond of $8.0 million that we have written-off $5.8 million as of September 30, 2025, of which $4.9 million is recognized in losses on available-for-sale debt securities. At December 31, 2024 we had $9.0 million of corporate bonds that we allocated $568 thousand in related allowance for credit losses. In the first quarter of 2025, a $1.0 million nonaccrual security matured and was transferred to a financing receivable non-cash asset. In the second quarter 2025, the Company determined that it no longer intended to hold the security until the recovery of the amortized cost basis.
Previous wording
Non-interest income for the six months ended 2025 was $13.6 million compared to $17.8 million for the same period ended 2024 driven by the write down of one available-for-sale debt security previous discussed above.
Current wording
Non-interest income for the nine months ended 2025 was $24.1 million compared to $27.5 million for the same period ended 2024 driven by the write down of one available-for-sale debt security previous discussed above.
Previous wording
Liquidity is measured by our ability to meet short-term cash needs at a reasonable cost or minimal loss. We seek to obtain favorable sources of liabilities and to maintain prudent levels of liquid assets in order to satisfy varied liquidity demands. Besides serving as a funding source for maturing obligations, liquidity provides flexibility in responding to customer-initiated needs. Many factors affect our ability to meet liquidity needs, including variations in the markets served by our network of offices, mix of assets and liabilities, reputation and credit standing in the marketplace, and general economic conditions.
Current wording
Liquidity is measured by our ability to meet short-term cash needs at a reasonable cost or minimal loss. We seek to obtain favorable sources of liabilities and to maintain prudent levels of liquid assets to satisfy varied liquidity demands. Besides serving as a funding source for maturing obligations, liquidity provides flexibility in responding to customer-initiated needs. Many factors affect our ability to meet liquidity needs, including variations in the markets served by our network of offices, mix of assets and liabilities, reputation and credit standing in the marketplace, and general economic conditions.
Previous wording
As of June 30, 2025, available same-day liquidity totaled approximately $1.0 billion, including cash, borrowing capacity at FHLB and the Federal Reserve Discount Window and various lines of credit. Additional sources of liquidity include cash flows from operations, wholesale deposits, cash flow from our amortizing securities and loan portfolios. As of June 30, 2025, we had unused borrowing capacity at the FHLB of $278.6 million, unused borrowing capacity at the Reserve Bank of $102.9 million and unused lines of credit totaling $41.0 million, in addition to $87.0 million in cash.
Current wording
As of September 30, 2025, available same-day liquidity totaled approximately $1.0 billion, including cash, borrowing capacity at FHLB and the Federal Reserve Discount Window and various lines of credit. Additional sources of liquidity include cash flows from operations, wholesale deposits, cash flow from our amortizing securities and loan portfolios. As of September 30, 2025, we had unused borrowing capacity at the FHLB of $384.7 million, unused borrowing capacity at the Reserve Bank of $98.0 million and unused lines of credit totaling $41.0 million, in addition to $136.7 million in cash.
Previous wording
Please refer to “Comparison of Financial Condition at June 30, 2025 and December 31, 2024 - Equity” for a discussion of shareholders’ equity together with Note 6 - “Capital Ratios and Shareholders’ Equity” in the unaudited consolidated
Current wording
Please refer to “Comparison of Financial Condition at September 30, 2025 and December 31, 2024 - Equity” for a discussion of shareholders’ equity together with Note 7 - “Capital Ratios and Shareholders’ Equity” in the unaudited consolidated financial statements. Additional information about regulatory capital is contained in the notes to the consolidated financial statements and in our most recent Form 10-K.
Previous wording
We expect to continue our current practice of paying quarterly cash dividends with respect to our common stock subject to our Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice. We believe our quarterly dividend rate per share as approved by our Board of Directors, enables us to balance our multiple objectives of managing our business and returning a portion of our earnings to our shareholders. Historically, and a practice we intend to continue, our principal cash expenditure is the payment of dividends on our common stock, if as and when declared by our Board of Directors. Dividends were paid to our shareholders in the aggregate amount of $9.6 million and $8.7 million for the six months ended June 30, 2025 and 2024, respectively. All dividends declared and distributed by us will be in compliance with applicable state corporate law and regulatory requirements.
Current wording
We expect to continue our current practice of paying quarterly cash dividends with respect to our common stock subject to our Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice. We believe our quarterly dividend rate per share as approved by our Board of Directors, enables us to balance our multiple objectives of managing our business and returning a portion of our earnings to our shareholders. Historically, and a practice we intend to continue, our principal cash expenditure is the payment of dividends on our common stock, if as and when declared by our Board of Directors. Dividends were paid to our shareholders in the aggregate amount of $15.0
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Our accounting and reporting policies conform to GAAP and the prevailing practices in the financial services industry. However, we also evaluate our performance by reference to certain additional financial measures discussed in this Form 10-Q that we identify as being “non-GAAP financial measures.” In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to
Current report — wording carried from elsewhere
million and $13.3 million for the nine months ended September 30, 2025 and 2024, respectively. All dividends declared and distributed by us will be in compliance with applicable state corporate law and regulatory requirements.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
financial statements. Additional information about regulatory capital is contained in the notes to the consolidated financial statements and in our most recent Form 10-K.