BAR HARBOR BANKSHARES
For the period ended Jun 30, 2025. Filed Aug 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.
Jun 30, 2025 · Filed Aug 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 2025-03-31; filed 2025-05-08.
0001558370-25-006961
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 2025-06-30; 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 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 75 previous paragraphs and 80 current paragraphs.
45 unchanged; 19 reworded; 15 added; 9 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 35 previous and 40 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 (15)
Current report
On July 31, 2025, we completed our acquisition of Guaranty Bancorp, Inc. (“Guaranty”) and its bank subsidiary, Woodsville Guaranty Savings Bank (“Woodsville”).
Current report
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 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.
Current 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.
Current report
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 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.
Current report
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 report
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 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.
Current 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.
Current report
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 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.
Current report
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 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.
Current 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.
Removed paragraphs (9)
Previous report
The allowance for credit losses on available for sale securities increased to $1.2 million at March 31, 2025 compared to $568 thousand at December 31, 2024, driven by one corporate security with a book value of $8.0 million and unrealized losses of $1.8 million.
Previous report
Total loans remained at $3.1 billion with a slight decrease of 3% on an annualized basis driven by seasonality and the interest rate environment. Commercial loans increased $2.9 million comprised of a $20.9 million increase in commercial real estate offset by a $17.9 million decrease in commercial and industrial. Residential real estate loans decreased $19.0 million.
Previous report
The allowance for credit losses on available for sale securities increased to $1.2 million at March 31, 2025 compared to $568 thousand at December 31, 2024, driven by one corporate debt security with a book value of $8.0 million and unrealized losses of $1.8 million.
Previous report
Senior borrowings decreased $50.0 million to $200.0 million driven by pay downs in investments and loans. FHLB borrowings decreased $48.9 million to $194.1 million at the end of the first quarter 2025 compared to $243.0 million at the end of the fourth quarter 2024.
Previous report
The net interest margin remained stable at 3.17% in the first quarter 2025 compared to 3.14% in same respective quarter 2024. As loan balances grew $112.6 million year over year, the yield on loans grew 11 basis points to 5.42% in the first
Previous report
Total interest expense increased by 4.3% to $18.5 million in the first quarter 2025 compared to $17.8 million in the first quarter 2024 driven by an increase in cost of funds on deposits compounded with a $169.7 million increase in deposits. The growth in deposits was relatively even in mix with $84.2 million growth in non-maturity deposits and $85.6 million growth in time deposits. Interest-bearing demand accounts and savings accounts increased $41.2 million in 2025 compared to the same quarter 2024. Money Market accounts increased $40.0 million in the first quarter 2025 compared to the first quarter 2024. Borrowing costs decreased to $3.0 million in the first quarter 2025 compared to $3.2 million from the first quarter 2024, driven by a $33.1 million in pay down offset by an increase in costs to 4.61% in the first quarter 2025 compared to 4.35% in the first quarter 2024.
Previous report
The provision for credit losses on investments was a charge of $636 thousand in the current quarter. There was no provision for investments in the first quarter of 2024. The reserve is related to one corporate debt security as discussed above.
Previous report
Non-interest income was $8.9 million in the first quarter 2025 compared to $8.4 million in the same quarter 2024. Wealth management income grew 6.7% to $3.9 million compared to $3.7 million in the first quarter 2024. Non-brokerage assets under management grew 6.0% or $300 million to $2.8 billion from $2.5 billion in the first quarter 2025 compared to the previous year driven by higher security valuations. Mortgage banking income increased $199 thousand in the first quarter 2025 compared to the first quarter 2024 driven by higher gains on sale of loans. Customer derivative income increased $212 thousand in the first quarter 2025 driven by an increase in dollars and volume on customer swaps due to the interest rate environment. Increases were offset by a $185 thousand or 5% decrease in customer service fees driven by lower non-sufficient funds fees and interchange income.
Previous report
Income tax expense was $2.5 million in the first quarter 2025, compared to $2.6 million in the first quarter 2024.
Reworded paragraphs (19)
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 months ended March 31, 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 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.
Previous wording
Earnings*(first quarter 2025, compared to the same period of 2024 unless otherwise stated)*
Current wording
Earnings*(quarter ended June 30, 2025, compared to the same period of 2024 unless otherwise stated)*
Previous wording
Total cash and cash equivalents were $88.1 million at the end of the first quarter 2025, compared to $72.2 million at the end of the fourth quarter 2024. Interest-earning deposits held with other banks increased to $54.3 million at the end of the first quarter 2025, compared to $37.9 million at the end of the fourth quarter and yielded 4.55% 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 $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.
Previous wording
Securities available for sale was $514.0 million compared to $521.0 million in the fourth quarter 2024 driven primarily by pay downs of $28.3 million, partially offset by $19.0 million in purchases. The average yield of the total securities portfolio for the first quarter 2025 was 3.80% compared to 3.69% for the previous quarter primarily due to the change in the profile of the yield curve and a shift from commercial lending obligation investments to agencies. Fair value adjustments were $57.2 million at the end of the first quarter 2025 compared to $62.3 million at the end of the fourth quarter 2024. As of the end of the first quarter 2025 and fourth quarter 2024, respectively, our securities portfolio maintained an average life of eight and nine years with an effective duration of five years for both quarters and 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 $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.
Previous wording
Federal Home Loan Bank (“FHLB”) stock decreased to $10.7 million at the end of the first quarter 2025 compared to $12.2 million at the end of the fourth quarter 2024 driven by $50 million in pay downs of borrowings.
Current wording
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 wording
The allowance for credit losses on loans decreased $130 thousand to $28.6 million at the end of the first 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 of 0.92% compared to 0.91% in the fourth quarter 2024. Strong asset quality metrics and general macroeconomic trends in the loan portfolio drive ACL levels. There were minor shifts in balances as commercial real estate increased and commercial and industrial and residential real estate decreased, but the main driver was a decrease in residential loans. Charge-offs and individually analyzed reserves on non-accruing loans continue to be nominal, supported by relatively strong collateral values.
Current 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.
Previous wording
Total deposits remained flat at $3.3 billion at the first quarter of 2025 and the fourth quarter 2024 respectively. We witnessed a shift in deposit mix driven by the interest rate environment and expected seasonal outflows in the first quarter 2025 as non-interest bearing demand deposits decreased $28.2 million to $547 million offset by an increase of $19.8 million in interest-bearing demand deposits. Time deposits increased 16% on an annualized basis to $863 million driven by the volatile economic rate environment as investors continue to seek a safe place with a competitive rate to house their money.
Current wording
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 wording
The Company's book value per share was $30.51 as of the end of the first quarter 2025 compared to $30.00 at the end of the fourth quarter 2024. Tangible book value per share (non-GAAP) was $22.47 at the end of the first quarter 2025, compared to $21.93 at the end of the fourth quarter 2024.
Current 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.
Previous wording
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND MARCH 31, 2024
Current wording
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024
Previous wording
First quarter 2025 GAAP net income of $10.2 million or $0.66 per diluted share and core (Non-GAAP) net income of $10.5 million or $0.68 per diluted share compared to $10.1 million or $0.66 per diluted share for the first quarter 2024.
Current 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.
Previous wording
Total interest and dividend income increased by 3.7% to $47.5 million in the first quarter 2025 compared to $45.8 million in the prior year primarily driven by the repricing of commercial adjustable-rate loans and a $146 million higher loan balances within the commercial portfolio. Yields on earning assets grew to 5.16% compared to 5.10% in the first quarter 2024. The yield on commercial real estate loans grew to 5.58% in the first quarter 2025 from 5.47% in the first quarter 2024. Total loan yield growth also experienced an increase in the residential real estate yield from 4.09% to 4.22% for the first quarter 2025, and the commercial and industrial yield decline from 6.68% in the first quarter of 2024 to 6.57% in the first quarter 2025.
Current 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.
Previous wording
quarter 2025, up from 5.31% in the same quarter 2024. Costs of interest-bearing deposits grew 5 basis points to 2.31% from 2.26% in the first quarter 2024 driven by the continued competitive pricing within the interest rate environment.
Current wording
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 wording
The provision for credit losses on loans was a recapture of $57 thousand in first quarter 2025 compared to a provision of $289 thousand in the first quarter 2024 as credit quality continues to remain strong.
Current wording
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 wording
Non-interest expenses increased $1.2 million to $24.7 million in the first quarter 2025 compared to $23.5 million in the first quarter 2024 driven by a 4% increase or $485 thousand increase in salaries and benefits driven by cost of living increases and losses on sales of premises and equipment of $90 thousand in the current quarter driven by outdated ATMs. Acquisition, conversion expenses increased $219 thousand driven by merger agreement entered into in the first quarter of 2025. Outside services increased $144 thousand driven by an increase in recruiting fees in the first quarter 2025 compared to the first quarter 2024. Professional services increased $192 thousand driven by consulting fees for technology infrastructure enhancements other projects.
Current wording
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 wording
The Bank actively manages its liquidity position through target ratios established under its Asset-Liability Management Policy. Continual monitoring of these ratios, by using historical data and through forecasts under multiple rate and stress scenarios, allows the Bank to employ strategies necessary to maintain adequate liquidity. The Bank's policy is to maintain a liquidity position of at least 8% of total assets. A portion of the Bank’s deposit base has been historically seasonal in
Current wording
The Bank actively manages its liquidity position through target ratios established under its Asset-Liability Management Policy. Continual monitoring of these ratios, by using historical data and through forecasts under multiple rate and stress scenarios, allows the Bank to employ strategies necessary to maintain adequate liquidity. The Bank's policy is to maintain a liquidity position of at least 8% of total assets. A portion of the Bank’s deposit base has been historically seasonal in nature, with balances typically declining in the winter months through late spring, during which period the Bank’s liquidity position tightens.
Previous wording
As of March 31, 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 March 31, 2025, we had unused borrowing capacity at the FHLB of $359.1 million, unused borrowing capacity at the Reserve Bank of $103.8 million and unused lines of credit totaling $41.0 million, in addition to $88.1 million in cash.
Current 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.
Previous wording
Please refer to “Comparison of Financial Condition at March 31, 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 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.
Current 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
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 $4.5 million and $4.2 million for the three months ended March 31, 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 $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.
Previous wording
Financial Statements and accompanying notes. Most accounting policies are not considered by management to be critical accounting policies. Several factors are considered in determining whether or not a policy is critical in the preparation of the Consolidated Financial Statements. These factors include among other things, whether the policy requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. The accounting policies which we believe to be most critical in preparing our Consolidated Financial Statements are presented in the section titled “Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” included in our Form 10-K. There have been no significant changes in our application of critical accounting policies and estimates since December 31, 2024. Refer to Note 1 – “Basis of Presentation - Recent Accounting Pronouncements” of the consolidated financial statements for discussion of accounting pronouncements issued but yet to be adopted and implemented.
Current wording
Our Consolidated Financial Statements were prepared in accordance with GAAP and follow general practices within the industries in which we operate. The most significant accounting policies we follow are presented in Note 1—“Summary of Significant Accounting Policies” of the Consolidated Financial Statements to our Form 10-K. Application of these principles requires us to make estimates, assumptions, and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting policies are not considered by management to be critical accounting policies. Several factors are considered in determining whether or not a policy is critical in the preparation of the Consolidated Financial Statements. These factors include among other things, whether the policy requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. The accounting policies which we believe to be most critical in preparing our Consolidated Financial Statements are presented in the section titled “Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” included in our Form 10-K. There have been no significant changes in our application of critical accounting policies and estimates since December 31, 2024. Refer to Note 1 – “Basis of Presentation - Recent Accounting Pronouncements” of the consolidated financial statements for discussion of accounting pronouncements issued but yet to be adopted and implemented.
Rearranged current paragraphs (1)
Current report — wording carried from 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.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
nature, with balances typically declining in the winter months through late spring, during which period the Bank’s liquidity position tightens.
Previous report — wording carried elsewhere
Our Consolidated Financial Statements were prepared in accordance with GAAP and follow general practices within the industries in which we operate. The most significant accounting policies we follow are presented in Note 1—“Summary of Significant Accounting Policies” of the Consolidated Financial Statements to our Form 10-K. Application of these principles requires us to make estimates, assumptions, and judgments that affect the amounts reported in the Consolidated