FORM 10-Q
INDEX
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| PART I. · FINANCIAL INFORMATION · |
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| Item 1. · Consolidated Financial Statements (unaudited) · |
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| | Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 | 4 | |
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| | Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024 | 5 | |
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| | Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 | 6 | |
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| | Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024 | 7 | |
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| | Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 | 8 | |
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| | Condensed Notes to Unaudited Consolidated Interim Financial Statements | 10 | |
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| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 62 | |
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| | | Selected Financial Data | 70 | |
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| | | Consolidated Loan and Deposit Analysis | 71 | |
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| | | Average Balances and Average Yields/Rates | 72 | |
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| | | Reconciliation of Non-GAAP Financial Measures | 74 | |
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| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 76 | |
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| Item 4. | Controls and Procedures | 77 | |
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| PART II. | OTHER INFORMATION | | |
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| Item 1. | Legal Proceedings | 78 | |
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| Item 1A. | Risk Factors | 78 | |
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| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 78 | |
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| Item 3. | Defaults Upon Senior Securities | 78 | |
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| Item 4. | Mine Safety Disclosures | 78 | |
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| Item 5. | Other Information | 78 | |
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| Item 6. | Exhibits | 79 | |
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| Signatures | | 80 | |
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Bar Harbor Bankshares conducts business operations principally through Bar Harbor Bank & Trust, which may be referred to as the “Bank” and which is a subsidiary of Bar Harbor Bankshares. Unless the context requires otherwise, references in this report to “the Company,” "our," "us," and similar terms refer to Bar Harbor Bankshares and its subsidiaries, including the Bank, collectively.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Quarterly Report on Form 10-Q (this “Form 10-Q”) that are not historical facts may constitute 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 (the "Exchange Act"), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this Form 10-Q 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 about the Company’s future financial and operating results and the Company’s 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:
| ● | changes in general business and economic conditions on a national basis and in our markets throughout Northern New England; |
| ● | changes in consumer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; |
| ● | the possibility that our asset quality could decline or that we experience greater loan losses than anticipated; |
| ● | the impact of liquidity needs on our results of operations and financial condition; changes in the size and nature of our competition; |
| ● | the effect of interest rate increases on the cost of deposits; |
| ● | unanticipated weakness in loan demand, pricing or collectability; |
| ● | the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; |
| ● | 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; |
| ● | lack of strategic growth opportunities or our failure to execute on available opportunities; |
| ● | failure to realize the expected synergies, cost savings and other financial benefits from the acquisition of Guaranty Bancorp, Inc.; |
| ● | our ability to effectively manage problem credits; |
| ● | our ability to successfully develop new products and implement efficiency initiatives on time and with the results projected; |
| ● | our ability to retain executive officers and key employees and their customer and community relationships; |
| ● | regulatory, litigation, and reputational risks and the applicability of insurance coverage; |
| ● | changes in the reliability of our vendors, internal control systems or information systems; |
| ● | the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; |
| ● | changes in legislation or regulation and accounting principles, policies, and guidelines; |
| ● | reductions in the market value or outflows of wealth management assets under management; and |
| ● | changes in the assumptions used in making such forward-looking statements. |
Other factors not identified above, including those described under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “Form 10-K”), our 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, may also cause actual results to differ materially from those described in our forward-looking statements. Most of these factors are difficult to anticipate and are generally beyond our control. Given these uncertainties, you are cautioned not to place undue reliance on such forward-looking statements, andyou should consider these factors in connection with considering any forward-looking statements that may be made by us. We undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.
