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Bar Harbor Bankshares (BHB)
:BHB

Bar Harbor Bankshares (BHB) AI Stock Analysis

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Bar Harbor Bankshares

(NYSE MKT:BHB)

Rating:72Outperform
Price Target:
Bar Harbor Bankshares scores well due to its strong financial performance, attractive valuation, and positive corporate developments including a dividend increase and a strategic merger. However, technical indicators suggest limited stock momentum, and there's a slight need to improve efficiency in profit generation.

Bar Harbor Bankshares (BHB) vs. SPDR S&P 500 ETF (SPY)

Bar Harbor Bankshares Business Overview & Revenue Model

Company DescriptionBar 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 MoneyBar Harbor Bankshares generates revenue primarily through interest income from its lending activities and non-interest income from various banking services. Key revenue streams include interest earned on loans such as commercial, residential, and consumer loans, as well as investment securities. The company also earns fees from deposit accounts, wealth management, and trust services, which contribute to its non-interest income. Additionally, BHB benefits from strategic partnerships and a robust regional network that enhances its ability to offer diversified financial products tailored to the needs of its customers. Economic conditions, interest rate fluctuations, and regional market dynamics are significant factors that influence the company's earnings.

Bar Harbor Bankshares Financial Statement Overview

Summary
Bar Harbor Bankshares demonstrates strong financial performance with notable revenue growth and improved EBIT margins. The elimination of debt strengthens its balance sheet, although a slight decline in ROE suggests potential areas for improvement in profitability. The company shows robust cash flows, supporting its financial stability and growth prospects.
Income Statement
78
Positive
Bar Harbor Bankshares has demonstrated a strong revenue growth trajectory, with a notable increase from $150.4 million in 2023 to $188.7 million in 2024, reflecting a 25.5% growth rate. The gross profit margin stands at 100%, as expected in the banking industry, with no cost of goods sold. The net profit margin slightly declined from 29.8% in 2023 to 23.1% in 2024, indicating increased expenses or provisions. EBIT margin improved significantly to 98.9% in 2024, showcasing effective cost management.
Balance Sheet
70
Positive
The company's balance sheet shows robust equity with a healthy equity ratio of 11.2% in 2024, up from 10.9% in 2023. The debt-to-equity ratio improved substantially from 0.77 in 2023 to 0 in 2024, as the company eliminated its total debt, enhancing financial stability. Return on equity decreased slightly to 9.5% in 2024 from 10.4% in 2023, which may suggest reduced efficiency in generating profits from equity.
Cash Flow
65
Positive
Free cash flow increased to $52.4 million in 2024 from $40.9 million in 2023, reflecting a growth rate of 31.2%. The operating cash flow to net income ratio improved to 1.20, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio remains at 1.20, suggesting that capital expenditures are minimal or non-existent. The company maintains a positive cash flow trend, supporting its financial health.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
188.72M150.41M149.00M137.83M142.14M
Gross Profit
188.72M150.41M149.00M137.83M142.14M
EBIT
186.71M74.66M71.93M48.63M41.65M
EBITDA
0.000.0061.22M55.23M47.45M
Net Income Common Stockholders
43.54M44.85M43.56M39.30M33.24M
Balance SheetCash, Cash Equivalents and Short-Term Investments
555.28M576.79M651.81M868.66M811.05M
Total Assets
4.08B3.97B3.91B3.71B3.73B
Total Debt
290.60M331.50M725.62M178.52M336.02M
Net Debt
218.44M236.66M633.32M-71.86M110.02M
Total Liabilities
3.62B3.54B3.52B3.29B3.31B
Stockholders Equity
458.43M432.06M393.45M424.15M411.34M
Cash FlowFree Cash Flow
44.98M40.87M55.08M58.76M31.40M
Operating Cash Flow
52.37M47.40M57.60M60.48M38.17M
Investing Cash Flow
-141.88M-62.29M-410.58M-6.06M142.75M
Financing Cash Flow
66.83M17.43M194.88M-30.03M-11.82M

Bar Harbor Bankshares Technical Analysis

Technical Analysis Sentiment
Negative
Last Price29.51
Price Trends
50DMA
29.33
Positive
100DMA
30.12
Negative
200DMA
30.68
Negative
Market Momentum
MACD
0.36
Negative
RSI
47.77
Neutral
STOCH
30.38
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 29.51 is below the 20-day moving average (MA) of 29.84, above the 50-day MA of 29.33, and below the 200-day MA of 30.68, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHB.

Bar Harbor Bankshares Risk Analysis

Bar Harbor Bankshares disclosed 47 risk factors in its most recent earnings report. Bar Harbor Bankshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Future capital offerings may adversely affect the market price of our common stock. Q4, 2024
2.
The market price and trading volume of our common stock may be volatile. Q4, 2024
3.
Anti-takeover provisions could negatively impact our stockholders. Q4, 2024

Bar Harbor Bankshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$505.96M12.3811.31%2.40%14.10%12.00%
BHBHB
72
Outperform
$467.16M10.719.67%3.94%6.33%3.44%
71
Outperform
$508.53M15.554.48%4.36%10.00%2.81%
71
Outperform
$481.09M14.5510.62%2.29%0.13%19.68%
67
Neutral
$477.91M9.778.83%3.13%8.67%
66
Neutral
$544.80M13.2312.19%1.16%18.85%6.74%
64
Neutral
$12.78B9.877.67%17015.06%12.34%-5.99%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BHB
Bar Harbor Bankshares
29.51
3.88
15.14%
CCNE
Cnb Financial
22.08
2.46
12.54%
EBTC
Enterprise Bancorp
38.58
13.68
54.94%
NFBK
Northfield Bancorp
11.54
2.43
26.67%
GNTY
Guaranty Bancshares
41.52
12.47
42.93%
CBNK
Capital Bancorp
32.94
12.43
60.60%

Bar Harbor Bankshares Corporate Events

M&A TransactionsDividendsFinancial Disclosures
Bar Harbor Bankshares Raises Dividend by 7%
Positive
Apr 17, 2025

On April 17, 2025, Bar Harbor Bankshares announced a 7% increase in its quarterly cash dividend, reflecting its commitment to delivering consistent shareholder returns. The company also reported a stable financial performance for the first quarter of 2025, with a net income of $10.2 million and a strong net interest margin. Additionally, Bar Harbor Bankshares signed a definitive merger agreement to acquire Woodsville Guaranty Bancorp, Inc., which is expected to enhance its market presence in northern New England and support future growth.

Spark’s Take on BHB Stock

According to Spark, TipRanks’ AI Analyst, BHB is a Outperform.

Bar Harbor Bankshares receives a score of 70, driven by strong financial performance and attractive valuation. The upcoming merger is a key positive, expected to enhance earnings and market position. However, bearish technical indicators and a need to improve profit generation efficiency slightly temper the overall outlook.

To see Spark’s full report on BHB stock, click here.

M&A Transactions
Bar Harbor Bankshares Announces Merger with Guaranty Bancorp
Positive
Mar 11, 2025

On March 11, 2025, Bar Harbor Bankshares and Guaranty Bancorp, Inc. announced a merger agreement where Bar Harbor will acquire Guaranty in an all-stock transaction valued at approximately $41.6 million. The merger aims to expand Bar Harbor’s presence in New Hampshire and is expected to be 30% accretive to Bar Harbor’s earnings per share. The combined entity will operate under the Bar Harbor Bank & Trust name, with approximately 60 branches and $4.8 billion in assets, enhancing its position in Northern New England. The merger is anticipated to be completed in the second half of 2025, subject to regulatory and shareholder approvals.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.