Bar Harbor Bankshares (BHB) AI Stock Analysis

• Market Cap: $527.38M
• Dividend Yield: 3.92%
• Average Volume (3M): 134.51K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.81
• Revenue Growth: 4.26%
• EPS Growth: -16.52%
• Country: US
• Employees: 458
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.93
• Shares Outstanding: 16,742,104
• 10 Day Avg. Volume: 281,752
• 30 Day Avg. Volume: 134,506
• PEG Ratio: -0.74
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 10.87
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 14.46
• 1Y Price Target: $36.50
• Price Target Upside: 17.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.55
• Revenue Forecast (FY): $198.47M

• Rating: 62 Neutral
• Price Target: $33.00 ▲(6.49% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is primarily driven by stable but mixed financial performance (improving revenue growth and healthier leverage offset by margin/ROE pressure and volatile free cash flow). Technical indicators are a notable headwind due to bearish trend and negative momentum, while valuation (moderate P/E and a ~4.1% yield) and a positive recent corporate update provide partial support.

Positive Factors

Improving balance-sheet leverage

Lower debt-to-equity and expanding equity materially strengthen solvency and regulatory buffers. This durable improvement supports lending capacity, absorbs credit volatility, and provides strategic flexibility for organic growth or selective M&A without materially increasing leverage risk.

Revenue growth momentum

Acceleration in top-line growth driven by loan expansion creates a firmer base for recurring net interest income. Sustained loan growth, especially commercial, supports margin stability and fee opportunities, improving longer-term earnings power beyond one-off cycles.

Consistent profitability and shareholder payout

Quarterly profitability improvement with expanding NIM and an active dividend policy signals recurring cash generation and capital return discipline. Combined earnings stability and payout capacity support investor confidence and suggest management prioritizes sustainable cash distribution.

Negative Factors

Weakened return on equity

Declining ROE indicates lower capital efficiency and compression of excess returns on equity capital. Persistently weaker ROE can constrain share-holder value creation, reduce strategic optionality for growth investments, and necessitate longer recovery horizons to restore profitability metrics.

Volatile cash conversion

Large year-over-year FCF swings signal inconsistent cash conversion and earnings quality. Volatility in FCF undermines predictability for dividend coverage, loan funding, and capital spending, increasing risk that management may need external funding in adverse scenarios.

Deposit pressures and funding mix risk

Seasonal deposit outflows and maturing brokered deposits that require wholesale borrowing raise funding-cost and liquidity risk. Reliance on non-core funding can compress net interest margin and increase sensitivity to market funding conditions over multiple quarters.

Bar Harbor Bankshares Business Overview & Revenue Model

Company Description

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.

How the Company Makes Money

BHB makes money primarily through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income, while incurring operating costs and credit losses as part of delivering these services. 1) Net interest income (core earnings driver): The bank collects interest and fees on loans and other interest-earning assets and pays interest on deposits and other funding sources. The spread between interest earned and interest paid (net interest margin) is influenced by loan mix (commercial, consumer, and residential/mortgage lending), securities/other earning assets, deposit composition (noninterest-bearing vs. interest-bearing), wholesale funding usage, and prevailing interest rates. 2) Noninterest income (fees and service-based revenue): The bank also earns fees from customer activity and advisory services. These commonly include deposit service charges and account-related fees, interchange/merchant-related card fees, mortgage banking-related revenue (to the extent the bank originates and may sell/retain mortgages and service loans), and wealth management/trust and investment services fees. 3) Additional factors affecting earnings: Profitability is also impacted by credit quality (provision for loan losses/expected credit losses), operating expenses (personnel, branch and technology costs), and the overall level of loan and deposit volumes. Significant partnerships or specific counterparty relationships are not available in this context and are therefore null.

Bar Harbor Bankshares Financial Statement Overview

Summary

Financials look stable but mixed: TTM revenue growth improved to 5.2% and leverage has moderated (debt-to-equity ~0.51) with higher equity, but profitability has compressed (TTM net margin ~15%) and returns have softened (ROE ~7.4%). Cash flow is positive, yet free cash flow fell sharply versus the prior period, signaling volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 5.2% versus low growth in 2024, showing a better top-line trajectory. Profitability remains solid (TTM net margin ~15%), but it has compressed meaningfully from 2021–2024 levels (~19%–30%) and operating margins are also down versus prior years. Overall, improving revenue momentum is a positive, but the weaker margin profile and lower TTM earnings versus 2024 keep the score in the mid range.

Balance Sheet

Leverage looks moderate and improving: debt-to-equity is ~0.51 in TTM (Trailing-Twelve-Months), down from ~0.63 in 2024 and well below 2022 levels (~1.00). Equity has expanded (TTM ~$533M vs. ~$458M in 2024), supporting balance-sheet resilience. Returns, however, have softened with return on equity down to ~7.4% in TTM from ~9.5% in 2024 and ~11% in 2022, suggesting less efficient capital profitability despite a healthier leverage stance.

Cash Flow

Cash generation is positive with TTM (Trailing-Twelve-Months) operating cash flow (~$48M) and free cash flow (~$39M) both solid, and free cash flow running at ~0.88x of net income—generally supportive of earnings quality. The key weakness is the sharp TTM decline in free cash flow (down ~86% versus the prior period provided) and a softer level versus 2024 (~$45M), pointing to volatility in cash conversion and less consistency year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	243.34M	224.44M	150.41M	161.17M	153.06M
Gross Profit	164.01M	149.38M	150.41M	143.67M	138.96M
EBITDA	52.02M	56.03M	0.00	61.27M	55.23M
Net Income	36.92M	43.54M	44.85M	43.56M	39.30M
Balance Sheet
Total Assets	4.68B	4.08B	3.97B	3.91B	3.71B
Cash, Cash Equivalents and Short-Term Investments	642.37M	592.61M	629.42M	651.81M	868.66M
Total Debt	269.64M	290.60M	301.50M	394.25M	178.52M
Total Liabilities	4.15B	3.62B	3.54B	3.52B	3.29B
Stockholders Equity	532.54M	458.43M	432.06M	393.45M	424.15M
Cash Flow
Free Cash Flow	47.68M	44.98M	40.87M	53.39M	57.45M
Operating Cash Flow	48.28M	52.37M	47.40M	55.91M	59.17M
Investing Cash Flow	88.71M	-141.88M	-62.29M	-408.89M	-4.75M
Financing Cash Flow	-128.31M	66.83M	17.43M	194.88M	-30.03M

Bar Harbor Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHB, the sentiment is Negative. The current price of 30.99 is below the 20-day moving average (MA) of 32.44, below the 50-day MA of 32.98, and above the 200-day MA of 30.73, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHB.

Bar Harbor Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTY	71 Outperform	$497.62M	8.36	17.76%	1.08%	11.38%	36.10%
PFIS	69 Neutral	$515.55M	8.23	10.83%	4.97%	39.98%	413.87%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NRIM	67 Neutral	$501.64M	9.10	21.32%	2.31%	36.60%	92.63%
PGC	66 Neutral	$593.18M	13.10	5.85%	0.70%	9.16%	6.95%
BHB	62 Neutral	$527.38M	14.04	7.42%	3.92%	4.26%	-16.52%
NFBK	49 Neutral	$556.30M	576.05	0.11%	4.38%	6.08%	52.64%

Bar Harbor Bankshares Corporate Events

Bar Harbor Bankshares Posts Strong Q4 Earnings, Declares Dividend

On January 22, 2026, Bar Harbor Bankshares reported fourth-quarter 2025 GAAP net income of $11.8 million, or $0.70 per diluted share, and core earnings of $15.5 million, or $0.93 per diluted share, reflecting higher profitability than the prior quarter as commercial loans expanded at an 8% annualized pace and net interest margin widened to 3.62%. The bank highlighted stable total assets of $4.7 billion, modest loan growth to $3.6 billion, a steady allowance for credit losses at $34.1 million, and improved book and tangible book value per share, while acknowledging deposit declines tied to seasonality and brokered deposit maturities that were offset by increased wholesale borrowings. Management emphasized the successful integration of the Woodsville acquisition as a key driver of higher loan yields, non-interest income and wealth management growth, and the Board declared a quarterly cash dividend of $0.32 per share, payable March 20, 2026 to shareholders of record on February 20, 2026, implying a 4.12% annualized yield based on the company’s year-end 2025 share price.

The most recent analyst rating on (BHB) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Bar Harbor Bankshares stock, see the BHB Stock Forecast page.