Bar Harbor Bankshares (BHB) AI Stock Analysis

• Market Cap: $512.67M
• Dividend Yield: 4.07%
• Average Volume (3M): 53.01K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.80
• Revenue Growth: 2.52%
• EPS Growth: -5.20%
• Country: US
• Employees: 458
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.70
• Shares Outstanding: 16,682,898
• 10 Day Avg. Volume: 70,932
• 30 Day Avg. Volume: 53,011
• PEG Ratio: -3.17
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 10.36
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 15.20
• 1Y Price Target: $34.00
• Price Target Upside: 11.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• 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 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

Bar 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	204.10M	224.44M	150.41M	149.00M	137.83M	142.14M
Gross Profit	130.46M	149.38M	150.41M	149.00M	137.83M	142.14M
EBITDA	46.48M	0.00	0.00	61.22M	55.23M	47.45M
Net Income	39.49M	43.54M	44.85M	43.56M	39.30M	33.24M
Balance Sheet
Total Assets	4.11B	4.08B	3.97B	3.91B	3.71B	3.73B
Cash, Cash Equivalents and Short-Term Investments	579.64M	555.28M	576.79M	651.81M	868.66M	811.05M
Total Debt	297.06M	290.60M	331.50M	725.62M	178.52M	336.02M
Total Liabilities	3.64B	3.62B	3.54B	3.52B	3.29B	3.31B
Stockholders Equity	468.86M	458.43M	432.06M	393.45M	424.15M	411.34M
Cash Flow
Free Cash Flow	54.16M	44.98M	40.87M	55.08M	58.76M	31.40M
Operating Cash Flow	53.05M	52.37M	47.40M	57.60M	60.48M	38.17M
Investing Cash Flow	-107.29M	-141.88M	-62.29M	-410.58M	-6.06M	142.75M
Financing Cash Flow	39.43M	66.83M	17.43M	194.88M	-30.03M	-11.82M

Bar Harbor Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 30.5 is below the 20-day moving average (MA) of 31.62, below the 50-day MA of 31.05, and above the 200-day MA of 30.21, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, 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
GNTY	75 Outperform	$553.20M	15.50	10.88%	1.92%	1.61%	38.81%
EBTC	74 Outperform	$495.83M	12.14	10.55%	2.52%	14.10%	12.00%
BHB	72 Outperform	$512.67M	11.95	8.70%	4.07%	2.52%	-5.20%
CBNK	71 Outperform	$514.75M	11.92	11.39%	1.35%	22.14%	12.06%
NFBK	69 Neutral	$485.84M	13.67	4.25%	4.48%	7.66%	28.75%
CCNE	67 Neutral	$707.40M	10.18	8.94%	3.00%	7.40%	2.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bar Harbor Bankshares Corporate Events

Bar Harbor Bankshares Raises Dividend by 7%

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.

Bar Harbor Bankshares Announces Merger with Guaranty Bancorp

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.