# EDGAR Filing Document

**Accession Number:** 0000743367
**File Stem:** 0001558370-23-000363
**Filing Date:** 2023-1
**Character Count:** 55926
**Document Hash:** 437a6db6cac1c478f2c7b05b109a9294
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-000363.hdr.sgml**: 20230119

**ACCESSION NUMBER**: 0001558370-23-000363

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230119

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230119

**DATE AS OF CHANGE**: 20230119

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BAR HARBOR BANKSHARES
- **CENTRAL INDEX KEY:** 0000743367
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 010393663
- **STATE OF INCORPORATION:** ME
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13349
- **FILM NUMBER:** 23537593

**BUSINESS ADDRESS:**
- **STREET 1:** 82 MAIN ST
- **STREET 2:** PO BOX 400
- **CITY:** BAR HARBOR
- **STATE:** ME
- **ZIP:** 04609-0400
- **BUSINESS PHONE:** 2076696784

**MAIL ADDRESS:**
- **STREET 1:** 82 MAIN ST
- **STREET 2:** PO BOX 400
- **CITY:** BAR HARBOR
- **STATE:** ME
- **ZIP:** 04609-0400

?xml version='1.0' encoding='UTF-8'?

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 19, 2023

## BAR HARBOR BANKSHARES
(Exact Name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| Maine | 001-13349 | 01-0393663 |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File No.) | (I.R.S. Employer<br>Identification No.) |
| PO Box 400 |  | 04609-0400 |
| 82 Main Street |  | (Zip Code) |
| Bar Harbor, Maine |  |  |
| (Address of Principal Executive Offices) |  |  |

---

Registrant's telephone number, including area code: (207) 288-3314

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act

---

| | |
|:---|:---|
| Title of each class | Name of each exchange on which registered |
| Common Stock, par value $2.00 per share<br> BHB | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02** **Results of Operations and Financial Condition.**

On January 19, 2023, Bar Harbor Bankshares issued a press release reporting our financial results for the quarter ended December 31, 2022. The full text of this press release, or the Earnings Release, is furnished as Exhibit 99.1 to this Current Report on Form 8-K, or this Report, and incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information furnished under this Item 2.02 of this Report and the exhibit attached hereto are deemed to be "furnished" and shall not be deemed "filed" for the purpose of Section 18 of the Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Act, or the Exchange Act.

**Item 7.01** **Regulation FD Disclosure.**

On January 19, 2023, we announced in the Earnings Release that our Board of Directors declared a quarterly cash dividend of $0.26 per share to shareholders of record at the close of business on February 16, 2023 and will be payable on March 16, 2023.

The disclosure contained in Item 2.02 of this Report, including the Earnings Report, is incorporated into this Item 7.01 by reference.

In accordance with General Instruction B.2 of Form 8-K, the information furnished under this Item 7.01 of this Report and the exhibit attached hereto are deemed to be "furnished" and shall not be deemed "filed" for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

**Item 9.01** **Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | | |
|:---|:---|:---|
| **Exhibit No.** |  | **Description** |
| 99.1 |  | [Press Release dated January 19, 2023](bhb-20230119xex99d1.htm) |
| 104 |  | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Bar Harbor Bankshares** | **Bar Harbor Bankshares** |
| January 19, 2023 | By: | /s/ Curtis C. Simard |
|  |  | Curtis C. Simard |
|  |  | President and CEO |

---

## Exhibit 99.1

**Exhibit 99.1**

![Graphic](bhb-20230119xex99d1001.jpg)

**Bar Harbor Bankshares Reports Fourth Quarter Results; Declares Dividend** 

BAR HARBOR, MAINE – January 19, 2023 - Bar Harbor Bankshares (NYSE American: BHB) (the "Company") reported fourth quarter 2022 net income of $12.5 million or $0.83 per diluted share compared to $9.8 million or $0.65 per diluted share in the same quarter of 2021. Earnings per share in the prior year quarter included a $0.05 per diluted share benefit from Paycheck Protection Program ("PPP") loans. For the full year of 2022, net income was $43.6 million or $2.88 per diluted share compared to $39.3 million and $2.61 per diluted share for 2021, an increase of 11%.

**FOURTH QUARTER HIGHLIGHTS (all comparisons to the fourth quarter 2021 unless otherwise noted)** 

● 1.30% return on assets, compared to 1.02%

● 12.73% return on equity, compared to 9.16%

● 11% annualized commercial loan growth, 19% commercial loan growth for 2022, compared to 2021

● 3.76% net interest margin, compared to 2.79%

● 58% efficiency ratio (non-GAAP measure), compared to 61%

● 0.17% non-performing assets ratio to total assets, compared to 0.27%

Bar Harbor Bankshares' President and Chief Executive Officer, Curtis C. Simard stated, "We are excited about all of our accomplishments in 2022, and most recently, for ending the year with such a strong quarter that demonstrated stable performance across all divisions. The results this past quarter once again highlight the strength of our balance sheet and the ability of our teams to deliver on core deposits, loans and wealth management in our markets. Our performance metrics showed significant favorable expansion throughout all of 2022 and included 19% in total commercial loan growth for the year while adhering to selective criteria and only experienced operators. We ended the year with a return on assets of 1.30% and net income was up 28% over the fourth quarter of 2021. Our credit quality remains solid as we posted net recoveries for the quarter and we continue to diligently manage expenses despite wage inflation while delivering positive operating leverage. Return on equity was 12.73% in the quarter, up from 9.16% in the same quarter of 2021 on higher earnings and a more stable fair market value related to the securities portfolio, which we continue to classify all as held to maturity preserving our flexibility."

Mr. Simard further commented, "While we did see a decline in overall deposit balances during the quarter, it was primarily in institutional accounts with low activity, which tend to be most rate sensitive. We continue to work with each customer on rates rather than make sweeping movements which allows us to focus on expanding those relationships as we review individual requests. Despite the developing rate pressure on deposits, we benefitted from the higher rate environment as our assets repriced, allowing for an additional 29 basis points of expansion in the margin to 3.76%. As we move into 2023, we have organically moved towards a slightly less asset sensitive position given the mix in loan growth during 2022."

Mr. Simard went on to say, "Assets under management increased 7% during the quarter versus the S&P 500 which was up 4% for the same period. Our wealth team added more than $132 million in new account assets this past year. We have a strong, relationship centric wealth management group that we believe has positioned us to realize an organic lift as the market returns."

Mr. Simard concluded, "Looking ahead in 2023, we are well positioned for success regardless of the rate environment. We are proud to be operating as an organization focused in Northern New England, committed to the needs of our customers while delivering shareholder value."

**DIVIDEND DECLARED**

The Company's Board of Directors voted to declare a cash dividend of $0.26 per share to shareholders of record at the close of business on February 16, 2023 payable on March 16, 2023. This dividend equates to a 3.25% annualized yield based on the $32.04 closing share price of the Company's common stock on December 30, 2022, the last trading day of the fourth quarter 2022.

BHB - Bar Harbor Bankshares Page 1 <u>www.barharbor.bank</u>

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**FINANCIAL CONDITION**

The Company had asset growth of 2% or $69 million quarter over quarter to $3.9 billion at the end of fourth quarter 2022. Loans grew 2% or $52 million to $2.9 billion at the end of the fourth quarter driven by an 11% net annualized increase in commercial loans and 1% annualized growth in residential real estate.

Non-accruing loans for the fourth quarter 2022 decreased 16.7% or $1.3 million to $6.5 million from $7.8 million at the end of the third quarter. The ratio of accruing past due loans to total loans decreased to 0.09% of total loans at the end of the fourth quarter 2022 from 0.10% at the end of the third quarter. The fourth quarter 2022 resulted in $155 thousand net recovery of charged off loans compared to a net charge off of $44 thousand in the third quarter. The allowance for credit losses increased $842 thousand to $25.9 million for the fourth quarter, compared to $25.0 million at the end of the third quarter 2022, due largely to significant loan growth during the quarter and growth in commercial construction unused lines of credit.

Total deposits were $3.0 billion at the end of the fourth quarter 2022 down 3% or $92.2 million. Core deposits decreased $81 million or 3% driven by a $55.2 million decrease in business checking, demand deposit accounts and non-personal money market balances. Time deposits decreased $10.8 million during the quarter as customers continue to move funds to transactional accounts upon contractual maturity. Excess cash and short-term borrowings were used as funding during the fourth quarter 2022 as loan growth outpaced deposit growth.

The Company's book value per share was $26.09 at the end of the fourth quarter of 2022, compared with $25.22 at the end of the third quarter. Tangible book value per share (non-GAAP measure) was $17.78 at the end of the fourth quarter 2022, compared to $16.89 at the end of the third quarter, an annualized increase of 21%. Other comprehensive income included unrealized loss on securities totaling $55.2 million in the fourth quarter 2022 compared to $58.7 million at the end of the third quarter.

**RESULTS OF OPERATIONS**

Net income increased 28% in the fourth quarter 2022 to $12.5 million, or $0.83 per diluted share, compared to $9.8 million, or $0.65 per diluted share, in the same quarter of 2021. PPP income contributed $0.05 to earnings per share in the fourth quarter of 2021.

Net interest margin increased 97 basis points or 34% to 3.76% compared to 2.79% in the same period of 2021. The increase was driven by a 125 basis point increase in average yields as existing variable rate loans repriced along with growth in earning assets, offset in part by a higher cost of funds. PPP loan fee amortization due to forgiveness contributed 10 basis points in the fourth quarter of 2021. In addition, excess interest-bearing cash balances in the fourth quarter of 2021 reduced net interest margin by 27 basis points. The yield on loans was 4.56% in the fourth quarter 2022, up from 3.58% in the same quarter of 2021 or 3.45% when excluding interest from PPP loans. Costs of interest-bearing liabilities increased to 0.78% from 0.41% in the fourth quarter 2021 due primarily to a shift to wholesale borrowings to fund loans as deposit balances declined by 12% from a run-off of larger balance accounts seeking higher interest rates.

The provision for credit losses for the fourth quarter 2022 was $687 thousand, compared to $126 thousand in the fourth quarter of 2021, driven primarily by the 7% annualized loan growth. The provision for credit losses on unfunded commitments increased $1.4 million in the current quarter driven largely by the growth in unfunded commercial construction lines of credit.

Non-interest income in the fourth quarter 2022 was $8.2 million, compared to $11.2 million in the same quarter of 2021. Customer service fees grew to $3.6 million in the fourth quarter of 2022 from $3.5 million in the same quarter of 2021 on a higher number of transactional accounts. Wealth management income in the fourth quarter 2022 was $3.4 million, compared to $3.8 million in prior year due primarily to lower AUM stemming from a decline market valuations. Mortgage banking income was $153 thousand, compared to $1.6 million in the same period of 2021 reflecting increased on balance sheet activity related to higher interest rates. Additionally, the fourth quarter of 2021 included $890 thousand of gains on the sales of securities.

Non-interest expense was $24.6 million in the fourth quarter 2022 and $22.9 million in the same quarter of 2021. Salaries and employee benefits increased by $1.1 million primarily due to the revaluation of long-term incentive accruals driven by the Company's higher stock price at the end of the fourth quarter 2022. The provision for unfunded commitments increased $1.2 million over the prior year quarter due to an increase in commercial construction activity. The efficiency ratio (non-GAAP) in the fourth quarter 2022 was 58%, down from 61%, or 63% excluding PPP loan income in the fourth quarter 2021. Non-core expenses (non-GAAP) in the fourth quarter of 2021 consisted mostly of a $1.1 million prepayment penalty on debt extinguishment and a $515 thousand loss on sale of premises and equipment.

BHB - Bar Harbor Bankshares Page 2 <u>www.barharbor.bank</u>

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**BACKGROUND**

Bar Harbor Bankshares (NYSE American: BHB) is the parent company of its wholly-owned subsidiary, Bar Harbor Bank & Trust. Founded in 1887, Bar Harbor Bank & Trust is a true community bank serving the financial needs of its clients for over 135 years. Bar Harbor Bank & Trust provides full-service community banking with office locations in all three Northern New England states of Maine, New Hampshire and Vermont. For more information, visit <u>www.barharbor.bank</u>.

**FORWARD-LOOKING STATEMENTS**

All statements, other than statements of historical fact, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are "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, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to the current economic outlook, potential risks to the economy, future interest rates, our ability to grow in the future, and management's optimism about the Company's market and financial positions. 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 wealth management growth when the market returns, 2023 success regardless of the rate environment, 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: (1) deterioration in the financial condition of borrowers of Bar Harbor Bank & Trust, including as a result of the negative impact of inflationary pressures on our customers and their businesses resulting in significant increases in loan losses and provisions for those losses, (2) deterioration in the financial condition of borrowers of Bar Harbor Bank & Trust, including as a result of the negative impact of inflationary pressures on our customers and their businesses resulting in significant increases in loan losses and provisions for those losses, (3) the possibility that our asset quality could decline or that we experience greater loan losses than anticipated, (4) increased levels of other real estate, primarily as a result of foreclosures, (5) the impact of liquidity needs on our results of operations and financial condition, (6) competition from financial institutions and other financial service providers, (7) the effect of interest rate increases on the cost of deposits, (8) unanticipated weakness in loan demand or loan pricing, (9) adverse conditions in the national or local economies including in Bar Harbor Bankshares' markets throughout Northern New England, (10) the effects of new outbreaks of COVID-19, including actions taken by governmental officials to curb the spread of the virus, and the resulting impact on general economic and financial market conditions and on Bar Harbor Bankshares' and its customers' business, results of operations, asset quality and financial condition, (11) the efficacy of vaccines against the COVID-19 virus, including new variants, (12) lack of strategic growth opportunities or our failure to execute on available opportunities, (13) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits, (14) our ability to effectively manage problem credits, (15) our ability to successfully implement efficiency initiatives on time and with the results projected, (16) our ability to successfully develop and market new products and technology, (17) the impact of negative developments in the financial industry and United States and global capital and credit markets, (18) our ability to retain the services of key personnel, (19) our ability to adapt to technological changes, (20) risks associated with litigation, including reputational and financial risks and the applicability of insurance coverage, (21) the vulnerability of the Bar Harbor Bank & Trust's computer and information technology systems and networks, and the systems and networks of third parties with whom the Company or the Bar Harbor Bank & Trust contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches and interruptions, (22) changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments, (23) adverse impacts (including costs, fines, reputational harm, or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions, (24) our ability to maintain appropriate environmental, social and governance (ESG) practices, oversight, an disclosures; and (25) general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate. Additional factors which could affect the forward-looking statements can be found in the Company's annual report on Form 10-K, 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. The Company believes the forward-looking statements contained herein are reasonable; however, many of such risks, uncertainties, and other factors are beyond the Company's ability to control or predict and undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, update or revise any forward-looking statement.

BHB - Bar Harbor Bankshares Page 3 <u>www.barharbor.bank</u>

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**NON-GAAP FINANCIAL MEASURES**

This document contains certain non-GAAP financial measures in addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company's GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP core earnings can be of substantial importance to the Company's results for any particular quarter or year. The Company's non-GAAP core earnings information set forth is not necessarily comparable to non-GAAP information, which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company's GAAP financial information.

The Company utilizes the non-GAAP measure of core earnings in evaluating operating trends, including components for core revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations, including gains/losses on securities, premises, equipment and other real estate owned, acquisition costs, restructuring costs, legal settlements, and systems conversion costs. Non-GAAP adjustments are presented net of an adjustment for income tax expense.

The Company also calculates core earnings per share based on its measure of core earnings. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company's performance. Management also believes that the computation of non-GAAP core earnings and core earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

###

BHB - Bar Harbor Bankshares Page 4 <u>www.barharbor.bank</u>

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**CONTACTS**

Josephine Iannelli; EVP, Chief Financial Officer & Treasurer; (207) 288-3314

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| | |
|:---|:---|
| TABLE |  |
| INDEX | CONSOLIDATED FINANCIAL SCHEDULES (UNAUDITED) |
| A | [Selected Financial Highlights](#SELECTEDFINANCIALHIGHLIGHTSUNAUDITED_350) |
| [B](#CONSOLIDATEDBALANCESHEETSUNAUDITED_29665) | [Balance Sheets](#CONSOLIDATEDBALANCESHEETSUNAUDITED_29665) |
| [C](#CONSOLIDATEDLOANDEPOSITANALYSISUNAUDITED) | [Loan and Deposit Analysis](#CONSOLIDATEDLOANDEPOSITANALYSISUNAUDITED) |
| [D](#CONSOLIDATEDSTATEMENTSOFINCOMEUNAUDITED_) | [Statements of Income](#CONSOLIDATEDSTATEMENTSOFINCOMEUNAUDITED_) |
| [E](#CONSOLIDATEDSTATEMENTSOFINCOME5QuarterTr) | [Statements of Income (Five Quarter Trend)](#CONSOLIDATEDSTATEMENTSOFINCOME5QuarterTr) |
| [F](#AVERAGEYIELDSANDCOSTSFullyTaxableEquival) | [Average Yields and Costs](#AVERAGEYIELDSANDCOSTSFullyTaxableEquival) |
| [G](#AVERAGEBALANCESUNAUDITED_919611) | [Average Balances](#AVERAGEBALANCESUNAUDITED_919611) |
| [H](#ASSETQUALITYANALYSISUNAUDITED_960918) | [Asset Quality Analysis](#ASSETQUALITYANALYSISUNAUDITED_960918) |
| [I](#RECONCILIATIONOFNONGAAPFINANCIALMEASURES)-J | [Reconciliation of Non-GAAP Financial Measures (Five Quarter Trend) and Supplementary Data](#RECONCILIATIONOFNONGAAPFINANCIALMEASURES) |

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BHB - Bar Harbor Bankshares Page 5 <u>www.barharbor.bank</u>

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**BAR HARBOR BANKSHARES**

**SELECTED FINANCIAL HIGHLIGHTS - UNAUDITED**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** |
|  | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **PER SHARE DATA** |  |  |  |  |  |
| &nbsp;&nbsp;Net earnings, diluted | $0.83 | $0.76 | $0.70 | $0.60 | $0.65 |
| &nbsp;&nbsp;Core earnings, diluted <sup>(1)</sup>  | 0.83 | 0.76 | 0.70 | 0.62 | 0.68 |
| &nbsp;&nbsp;Total book value | 26.09 | 25.22 | 26.19 | 27.11 | 28.27 |
| &nbsp;&nbsp;Tangible book value <sup>(1)</sup>  | 17.78 | 16.89 | 17.83 | 18.72 | 19.86 |
| &nbsp;&nbsp;Market price at period end | 32.04 | 26.52 | 25.86 | 28.62 | 28.93 |
| &nbsp;&nbsp;Dividends | 0.26 | 0.26 | 0.26 | 0.24 | 0.24 |
| **PERFORMANCE RATIOS** <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Return on assets | 1.30% | 1.20% | 1.14% | 1.00% | 1.02% |
| &nbsp;&nbsp;Core return on assets <sup>(1)</sup>  | 1.30 | 1.20 | 1.14 | 1.02 | 1.07 |
| &nbsp;&nbsp;Pre-tax, pre-provision return on assets | 1.72 | 1.65 | 1.50 | 1.28 | 1.26 |
| &nbsp;&nbsp;Core pre-tax, pre-provision return on assets <sup>(1)</sup> | 1.72 | 1.65 | 1.50 | 1.31 | 1.33 |
| &nbsp;&nbsp;Return on equity | 12.73 | 11.55 | 10.58 | 8.89 | 9.16 |
| &nbsp;&nbsp;Core return on equity <sup>(1)</sup>  | 12.72 | 11.54 | 10.59 | 9.07 | 9.60 |
| &nbsp;&nbsp;Return on tangible equity | 19.03 | 17.25 | 15.74 | 13.01 | 13.30 |
| &nbsp;&nbsp;Core return on tangible equity <sup>(1)</sup>  | 19.02 | 17.24 | 15.76 | 13.27 | 13.93 |
| &nbsp;&nbsp;Net interest margin, fully taxable equivalent <sup>(1) (3)</sup> | 3.76 | 3.47 | 3.19 | 2.95 | 2.79 |
| &nbsp;&nbsp;Core net interest margin <sup>(1) (4)</sup> | 3.76 | 3.47 | 3.19 | 2.93 | 2.69 |
| &nbsp;&nbsp;Efficiency ratio <sup>(1)</sup> | 58.19 | 57.67 | 59.25 | 62.40 | 60.74 |
| **FINANCIAL DATA *(In millions)*** |  |  |  |  |  |
| &nbsp;&nbsp;Total assets | $3910 | $3840 | $3716 | $3692 | $3709 |
| &nbsp;&nbsp;Total earning assets <sup>(5)</sup> | 3601 | 3525 | 3399 | 3367 | 3380 |
| &nbsp;&nbsp;Total investments | 574 | 566 | 593 | 611 | 626 |
| &nbsp;&nbsp;Total loans | 2903 | 2850 | 2727 | 2655 | 2532 |
| &nbsp;&nbsp;Allowance for credit losses | 26 | 25 | 24 | 23 | 23 |
| &nbsp;&nbsp;Total goodwill and intangible assets | 125 | 126 | 126 | 126 | 126 |
| &nbsp;&nbsp;Total deposits | 3043 | 3136 | 3079 | 3048 | 3049 |
| &nbsp;&nbsp;Total shareholders' equity | 393 | 380 | 394 | 407 | 424 |
| &nbsp;&nbsp;Net income | 13 | 11 | 11 | 9 | 10 |
| &nbsp;&nbsp;Core earnings <sup>(1)</sup>  | 13 | 11 | 11 | 9 | 10 |
| **ASSET QUALITY AND CONDITION RATIOS** |  |  |  |  |  |
| &nbsp;&nbsp;Net (recoveries) charge-offs<sup>(6)</sup>/average loans | (0.02)% | 0.01% | —% | (0.01)% | (0.02)% |
| &nbsp;&nbsp;Allowance for credit losses/total loans | 0.89 | 0.88 | 0.87 | 0.87 | 0.90 |
| &nbsp;&nbsp;Loans/deposits | 95 | 91 | 89 | 87 | 83 |
| &nbsp;&nbsp;Shareholders' equity to total assets | 10.06 | 9.89 | 10.59 | 11.02 | 11.43 |
| &nbsp;&nbsp;Tangible shareholders' equity to tangible assets | 7.09 | 6.85 | 7.46 | 7.88 | 8.32 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;(2) All performance ratios are based on average balance sheet amounts, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Fully taxable equivalent considers the impact of tax-advantaged investment securities and loans.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Core net interest margin excludes Paycheck Protection Program loans.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Earning assets includes non-accruing loans and interest-bearing deposits with other banks. Securities are valued at amortized cost.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Current quarter annualized.

A

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**BAR HARBOR BANKSHARES**

**CONSOLIDATED BALANCE SHEETS - UNAUDITED**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**(in thousands)** | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **Assets** |  |  |  |  |  |
| Cash and due from banks | $39933 | $50760 | $40834 | $38656 | $33508 |
| Interest-earning deposits with other banks | 52362 | 31305 | 26282 | 72393 | 216881 |
| Total cash and cash equivalents | 92295 | 82065 | 67116 | 111049 | 250389 |
| Securities available for sale | 559516 | 556752 | 586142 | 603910 | 618276 |
| Federal Home Loan Bank stock | 14893 | 9035 | 6572 | 7384 | 7384 |
| Total securities | 574409 | 565787 | 592714 | 611294 | 625660 |
| Loans held for sale |  | 982 | 3539 | 2843 | 5523 |
| Total loans | 2902690 | 2850364 | 2727274 | 2654562 | 2531910 |
| Less: Allowance for credit losses | (25860) | (25018) | (23756) | (23190) | (22718) |
| Net loans | 2876830 | 2825346 | 2703518 | 2631372 | 2509192 |
| Premises and equipment, net | 47622 | 48010 | 48350 | 48891 | 49382 |
| Other real estate owned |  |  |  |  |  |
| Goodwill | 119477 | 119477 | 119477 | 119477 | 119477 |
| Other intangible assets | 5801 | 6034 | 6267 | 6500 | 6733 |
| Cash surrender value of bank-owned life insurance | 81197 | 80758 | 80262 | 79861 | 79020 |
| Deferred tax asset, net | 24443 | 25288 | 18405 | 12614 | 5547 |
| Other assets | 87729 | 86499 | 76109 | 68169 | 58310 |
| Total assets | $3909803 | $3840246 | $3715757 | $3692070 | $3709233 |
| **Liabilities and shareholders' equity** |  |  |  |  |  |
| Demand and other non-interest bearing deposits | $676350 | $700218 | $670268 | $653471 | $664420 |
| NOW deposits | 900730 | 918822 | 883239 | 918768 | 940631 |
| Savings deposits | 664514 | 669317 | 663676 | 658834 | 628670 |
| Money market deposits | 478398 | 513075 | 499456 | 424750 | 389291 |
| Time deposits | 323439 | 334248 | 361906 | 391940 | 425532 |
| Total deposits | 3043431 | 3135680 | 3078545 | 3047763 | 3048544 |
| Senior borrowings | 333957 | 188757 | 117347 | 118538 | 118400 |
| Subordinated borrowings | 60289 | 60248 | 60206 | 60165 | 60124 |
| Total borrowings | 394246 | 249005 | 177553 | 178703 | 178524 |
| Other liabilities | 78676 | 75596 | 66062 | 58605 | 58018 |
| Total liabilities | 3516353 | 3460281 | 3322160 | 3285071 | 3285086 |
| Total shareholders' equity | 393450 | 379965 | 393597 | 406999 | 424147 |
| Total liabilities and shareholders' equity | $3909803 | $3840246 | $3715757 | $3692070 | $3709233 |
| **Net shares outstanding** | 15083 | 15066 | 15026 | 15013 | 15001 |

---

B

------

**BAR HARBOR BANKSHARES**

**CONSOLIDATED LOAN & DEPOSIT ANALYSIS - UNAUDITED**

**LOAN ANALYSIS**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | **Annualized** | **Annualized** |
| | | | | | | **Growth %** | **Growth %** |
| <br>**(in thousands)** | <br>**Dec 31,**<br>**2022** | <br>**Sep 30,**<br>**2022** | <br>**Jun 30,**<br>**2022** | <br>**Mar 31,**<br>**2022** | <br>**Dec 31,**<br>**2021** | **Quarter**<br> **to Date** | **Year** <br>**to Date** |
| Commercial real estate | $1495452 | $1421962 | $1331860 | $1289968 | $1210580 | 21% | 24% |
| Commercial and industrial | 352735 | 376624 | 360304 | 346394 | 340129 | (25) | 4 |
| Paycheck Protection Program (PPP) |  |  | 170 | 1126 | 6669 |  | \* |
| Total commercial loans | 1848187 | 1798586 | 1692334 | 1637488 | 1557378 | 11 | 19 |
| Total commercial loans, excluding PPP | 1848187 | 1798586 | 1692164 | 1636362 | 1550709 | 11 | 19 |
| Residential real estate | 898192 | 896618 | 876644 | 868382 | 821004 | 1 | 9 |
| Consumer | 100855 | 100822 | 100816 | 96876 | 98949 |  | 2 |
| Tax exempt and other | 55456 | 54338 | 57480 | 51816 | 54579 | 8 | 2 |
| Total loans | $2902690 | $2850364 | $2727274 | $2654562 | $2531910 | 7%  | 15% |

---

**DEPOSIT ANALYSIS**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | **Annualized** | **Annualized** |
| | | | | | | **Growth %** | **Growth %** |
| <br>**(in thousands)** | <br>**Dec 31,**<br>**2022** | <br>**Sep 30,**<br>**2022** | <br>**Jun 30,**<br>**2022** | <br>**Mar 31,**<br>**2022** | <br>**Dec 31,**<br>**2021** | **Quarter**<br> **to Date** | **Year** <br>**to Date** |
| Demand | $676350 | $700218 | $670268 | $653471 | $664420 | (14)% | 2% |
| NOW | 900730 | 918822 | 883239 | 918768 | 940631 | (8) | (4) |
| Savings | 664514 | 669317 | 663676 | 658834 | 628670 | (3) | 6 |
| Money market | 478398 | 513075 | 499456 | 424750 | 389291 | (27) | 23 |
| Total non-maturity deposits | 2719992 | 2801432 | 2716639 | 2655823 | 2623012 | (12) | 4 |
| Total time deposits | 323439 | 334248 | 361906 | 391940 | 425532 | (13) | (24) |
| Total deposits | $3043431 | $3135680 | $3078545 | $3047763 | $3048544 | (12)%  | —% |

---

\*Indicates ratios of 100% or greater.

C

------

**BAR HARBOR BANKSHARES**

**CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  | **Year Ended**  | **Year Ended**  |
| | **December 31,**  | **December 31,**  | **December 31,**  | **December 31,**  |
| <br>**(in thousands, except per share data)** | **2022** | **2021** | **2022** | **2021** |
| **Interest and dividend income** |  |  |  |  |
| Loans | $32605 | $22746 | $107797 | $95236 |
| Securities and other | 5551 | 3776 | 18729 | 15568 |
| Total interest and dividend income | 38156 | 26522 | 126526 | 110804 |
| **Interest expense** |  |  |  |  |
| Deposits | 3159 | 1434 | 7344 | 8543 |
| Borrowings | 2043 | 1273 | 5501 | 6688 |
| Total interest expense | 5202 | 2707 | 12845 | 15231 |
| **Net interest income** | 32954 | 23815 | 113681 | 95573 |
| Provision for credit losses | 687 | 126 | 2904 | (1302) |
| Net interest income after provision for credit losses | 32267 | 23689 | 110777 | 96875 |
| **Non-interest income** |  |  |  |  |
| Trust and investment management fee income | 3442 | 3844 | 14573 | 15179 |
| Customer service fees | 3683 | 3470 | 14791 | 13212 |
| Gain on sales of securities, net |  | 890 | 53 | 2870 |
| Mortgage banking income | 153 | 1563 | 1580 | 6536 |
| Bank-owned life insurance income | 499 | 669 | 2000 | 2179 |
| Customer derivative income | 97 | 173 | 310 | 1010 |
| Other income | 354 | 549 | 2014 | 1275 |
| Total non-interest income | 8228 | 11158 | 35321 | 42261 |
| **Non-interest expense** |  |  |  |  |
| Salaries and employee benefits | 12900 | 11842 | 48657 | 47117 |
| Occupancy and equipment | 4321 | 4105 | 17575 | 16356 |
| Loss on sales of premises and equipment, net | 75 | 515 | 10 | 378 |
| Outside services | 435 | 431 | 1578 | 1943 |
| Professional services | 490 | 556 | 1612 | 1756 |
| Communication | 263 | 205 | 880 | 912 |
| Marketing | 411 | 378 | 1561 | 1541 |
| Amortization of intangible assets | 233 | 233 | 932 | 940 |
| Loss on debt extinguishment |  | 1083 |  | 2851 |
| Acquisition, conversion and other expenses | (90) | (92) | 266 | 1667 |
| Provision for unfunded commitments  | 1413 | (49) | 1758 | 177 |
| Other expenses | 4184 | 3714 | 16424 | 14870 |
| Total non-interest expense | 24635 | 22921 | 91253 | 90508 |
| Income before income taxes | 15860 | 11926 | 54845 | 48628 |
| Income tax expense | 3348 | 2160 | 11288 | 9329 |
| **Net income** | $12512 | $9766 | $43557 | $39299 |
| **Earnings per share:** |  |  |  |  |
| Basic | $0.83 | $0.65 | $2.90 | $2.63 |
| Diluted | 0.83 | 0.65 | 2.88 | 2.61 |
| **Weighted average shares outstanding:** |  |  |  |  |
| Basic | 15073 | 14993 | 15040 | 14969 |
| Diluted | 15147 | 15075 | 15112 | 15045 |

---

D

------

**BAR HARBOR BANKSHARES**

**CONSOLIDATED STATEMENTS OF INCOME (5 Quarter Trend) - UNAUDITED**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**(in thousands, except per share data)** | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **Interest and dividend income** |  |  |  |  |  |
| Loans | $32605 | $27940 | $24581 | $22671 | $22746 |
| Securities and other | 5551 | 5145 | 4207 | 3826 | 3776 |
| Total interest and dividend income | 38156 | 33085 | 28788 | 26497 | 26522 |
| **Interest expense** |  |  |  |  |  |
| Deposits | 3159 | 1801 | 1195 | 1189 | 1434 |
| Borrowings | 2043 | 1374 | 1074 | 1010 | 1273 |
| Total interest expense | 5202 | 3175 | 2269 | 2199 | 2707 |
| **Net interest income** | 32954 | 29910 | 26519 | 24298 | 23815 |
| Provision for credit losses | 687 | 1306 | 534 | 377 | 126 |
| Net interest income after provision for credit losses | 32267 | 28604 | 25985 | 23921 | 23689 |
| **Non-interest income** |  |  |  |  |  |
| Trust and investment management fee income | 3442 | 3548 | 3829 | 3754 | 3844 |
| Customer service fees | 3683 | 3836 | 3656 | 3616 | 3470 |
| Gain on sales of securities, net |  | 44 |  | 9 | 890 |
| Mortgage banking income | 153 | 315 | 488 | 624 | 1563 |
| Bank-owned life insurance income | 499 | 496 | 504 | 501 | 669 |
| Customer derivative income | 97 | 58 | 137 | 18 | 173 |
| Other income | 354 | 526 | 347 | 787 | 549 |
| Total non-interest income | 8228 | 8823 | 8961 | 9309 | 11158 |
| **Non-interest expense** |  |  |  |  |  |
| Salaries and employee benefits | 12900 | 12242 | 11368 | 12147 | 11842 |
| Occupancy and equipment | 4321 | 4458 | 4373 | 4423 | 4105 |
| Loss (gain) on sales of premises and equipment, net | 75 |  | 10 | (75) | 515 |
| Outside services | 435 | 393 | 410 | 340 | 431 |
| Professional services | 490 | 421 | 528 | 173 | 556 |
| Communication | 263 | 204 | 188 | 225 | 205 |
| Marketing | 411 | 518 | 369 | 263 | 378 |
| Amortization of intangible assets | 233 | 233 | 233 | 233 | 233 |
| Loss on debt extinguishment |  |  |  |  | 1083 |
| Acquisition, conversion and other expenses | (90) | 31 |  | 325 | (92) |
| Provision for unfunded commitments  | 1413 | (26) | 45 | 326 | (49) |
| Other expenses | 4184 | 4558 | 4176 | 3506 | 3714 |
| Total non-interest expense | 24635 | 23032 | 21700 | 21886 | 22921 |
| Income before income taxes | 15860 | 14395 | 13246 | 11344 | 11926 |
| Income tax expense | 3348 | 2965 | 2743 | 2232 | 2160 |
| **Net income** | $12512 | $11430 | $10503 | $9112 | $9766 |
| **Earnings per share:** |  |  |  |  |  |
| Basic | $0.83 | $0.76 | $0.70 | $0.61 | $0.65 |
| Diluted | 0.83 | 0.76 | 0.70 | 0.60 | 0.65 |
| **Weighted average shares outstanding:** |  |  |  |  |  |
| Basic | 15073 | 15058 | 15018 | 15011 | 14993 |
| Diluted | 15147 | 15113 | 15077 | 15102 | 15075 |

---

E

------

**BAR HARBOR BANKSHARES**

**AVERAGE YIELDS AND COSTS (Fully Taxable Equivalent (Non-GAAP) - Annualized) - UNAUDITED**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
|  | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **Earning assets** |  |  |  |  |  |
| Interest-earning deposits with other banks  | 4.00% | 2.13% | 0.80% | 0.16% | 0.16% |
| Securities available for sale and FHLB stock  | 3.40 | 3.12 | 2.69 | 2.55 | 2.66 |
| ***Loans:*** |  |  |  |  |  |
| &nbsp;&nbsp;Commercial real estate | 4.81 | 4.26 | 3.82 | 3.50 | 3.40 |
| &nbsp;&nbsp;Commercial and industrial | 5.43 | 4.46 | 3.67 | 3.46 | 3.23 |
| &nbsp;&nbsp;Paycheck protection program |  |  | 13.99 | 26.49 | 26.25 |
| &nbsp;&nbsp;Residential real estate | 3.63 | 3.45 | 3.55 | 3.55 | 3.61 |
| &nbsp;&nbsp;Consumer | 5.79 | 4.55 | 3.82 | 3.51 | 3.49 |
| Total loans | 4.56 | 4.04 | 3.71 | 3.54 | 3.58 |
| Total earning assets | 4.35% | 3.84% | 3.46% | 3.21% | 3.10% |
| **Funding liabilities** |  |  |  |  |  |
| ***Deposits:*** |  |  |  |  |  |
| &nbsp;&nbsp;NOW | 0.22% | 0.16% | 0.14% | 0.14% | 0.14% |
| &nbsp;&nbsp;Savings | 0.16 | 0.08 | 0.08 | 0.09 | 0.08 |
| &nbsp;&nbsp;Money market | 1.42 | 0.65 | 0.19 | 0.12 | 0.12 |
| &nbsp;&nbsp;Time deposits | 0.69 | 0.55 | 0.58 | 0.62 | 0.77 |
| Total interest-bearing deposits | 0.52 | 0.30 | 0.20 | 0.20 | 0.24 |
| Borrowings | 3.23 | 2.69 | 2.41 | 2.29 | 2.17 |
| Total interest-bearing liabilities | 0.78% | 0.48% | 0.36% | 0.35% | 0.41% |
| Net interest spread | 3.57 | 3.36 | 3.10 | 2.86 | 2.69 |
| Net interest margin, fully taxable equivalent<sup>(1)</sup> | 3.76 | 3.47 | 3.19 | 2.95 | 2.79 |
| Core net interest margin <sup>(1)</sup> | 3.76 | 3.47 | 3.19 | 2.93 | 2.69 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in tables I-J for additional information.

F

------

**BAR HARBOR BANKSHARES**

**AVERAGE BALANCES - UNAUDITED**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** | **Quarters Ended** |
| <br>**(in thousands)** | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **Assets** |  |  |  |  |  |
| Interest-earning deposits with other banks <sup>(1)</sup> | $26360 | $59556 | $63317 | $140383 | $325260 |
| Securities available for sale and FHLB stock <sup>(2)</sup> | 641787 | 642475 | 637881 | 629811 | 578323 |
| ***Loans:*** |  |  |  |  |  |
| &nbsp;&nbsp;Commercial real estate | 1447384 | 1351599 | 1296162 | 1264798 | 1189803 |
| &nbsp;&nbsp;Commercial and industrial | 403304 | 421963 | 412518 | 393759 | 386156 |
| &nbsp;&nbsp;Paycheck protection program |  | 94 | 788 | 2999 | 14824 |
| &nbsp;&nbsp;Residential real estate | 897637 | 882158 | 863172 | 856252 | 844872 |
| &nbsp;&nbsp;Consumer | 100182 | 101175 | 98588 | 97594 | 100723 |
| Total loans <sup>(3)</sup> | 2848507 | 2756989 | 2671228 | 2615402 | 2536378 |
| Total earning assets | 3516654 | 3459020 | 3372426 | 3385596 | 3439961 |
| Cash and due from banks | 36891 | 40330 | 35051 | 32742 | 37818 |
| Allowance for credit losses | (25497) | (24061) | (23228) | (23256) | (22525) |
| Goodwill and other intangible assets | 125391 | 125626 | 126090 | 126090 | 126324 |
| Other assets | 164749 | 171394 | 178037 | 190846 | 200097 |
| Total assets | $3818188 | $3772309 | $3688376 | $3712018 | $3781675 |
| **Liabilities and shareholders' equity** |  |  |  |  |  |
| ***Deposits:*** |  |  |  |  |  |
| &nbsp;&nbsp;NOW | $899388 | $905668 | $893239 | $930556 | $913326 |
| &nbsp;&nbsp;Savings | 664016 | 668255 | 657047 | 640672 | 620599 |
| &nbsp;&nbsp;Money market | 501564 | 491683 | 457088 | 414130 | 395341 |
| &nbsp;&nbsp;Time deposits | 334297 | 349787 | 375782 | 406730 | 450559 |
| Total interest-bearing deposits | 2399265 | 2415393 | 2383156 | 2392088 | 2379825 |
| Borrowings | 251263 | 202296 | 178519 | 178958 | 232492 |
| Total interest-bearing liabilities | 2650528 | 2617689 | 2561675 | 2571046 | 2612317 |
| Non-interest-bearing demand deposits | 703471 | 690134 | 661412 | 660717 | 684895 |
| Other liabilities | 74276 | 71934 | 67069 | 64619 | 61480 |
| Total liabilities | 3428275 | 3379757 | 3290156 | 3296382 | 3358692 |
| Total shareholders' equity | 389913 | 392552 | 398220 | 415636 | 422983 |
| Total liabilities and shareholders' equity | $3818188 | $3772309 | $3688376 | $3712018 | $3781675 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) Total average interest-bearing deposits with other banks is net of Federal Reserve daily cash letter.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Average balances for securities available-for-sale are based on amortized cost.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Total average loans include non-accruing loans and loans held for sale.

G

------

**BAR HARBOR BANKSHARES**

**ASSET QUALITY ANALYSIS - UNAUDITED**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** |
| <br>**(in thousands)** | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **NON-PERFORMING ASSETS** |  |  |  |  |  |
| Non-accruing loans: |  |  |  |  |  |
| &nbsp;&nbsp;Commercial real estate | $1222 | $1587 | $1483 | $1633 | $2890 |
| &nbsp;&nbsp;Commercial installment | 264 | 348 | 632 | 905 | 1056 |
| &nbsp;&nbsp;Residential real estate | 4151 | 4858 | 4882 | 5612 | 5192 |
| &nbsp;&nbsp;Consumer installment | 911 | 981 | 881 | 1063 | 1053 |
| Total non-accruing loans | 6548 | 7774 | 7878 | 9213 | 10191 |
| Other real estate owned |  |  |  |  |  |
| Total non-performing assets | $6548 | $7774 | $7878 | $9213 | $10191 |
| Total non-accruing loans/total loans | 0.23% | 0.27% | 0.29% | 0.35% | 0.40% |
| Total non-performing assets/total assets | 0.17 | 0.20 | 0.21 | 0.25 | 0.27 |
| **PROVISION AND ALLOWANCE FOR CREDIT LOSSES** |  |  |  |  |  |
| Balance at beginning of period | $25018 | $23756 | $23190 | $22718 | $22448 |
| Charged-off loans | (136) | (85) | (62) | (83) | (154) |
| Recoveries on charged-off loans | 291 | 41 | 94 | 178 | 298 |
| Net loans recovered (charged-off) | 155 | (44) | 32 | 95 | 144 |
| Provision for credit losses | 687 | 1306 | 534 | 377 | 126 |
| Balance at end of period | $25860 | $25018 | $23756 | $23190 | $22718 |
| Allowance for credit losses/total loans | 0.89% | 0.88% | 0.87% | 0.87% | 0.90% |
| Allowance for credit losses/non-accruing loans | 395 | 322 | 300 | 252 | 223 |
| **NET LOAN RECOVERIES (CHARGE-OFFS)**  |  |  |  |  |  |
| Commercial real estate | $— | $7 | $59 | $54 | $216 |
| Commercial installment | 285 | 12 | 12 | 25 | 53 |
| Residential real estate | (56) | (5) | 6 | 76 | 8 |
| Consumer installment | (74) | (58) | (45) | (60) | (133) |
| Total, net | $155 | $(44) | $32 | $95 | $144 |
| Net (recoveries) charge-offs (QTD annualized)/average loans | (0.02)% | 0.01% | —% | (0.01)% | (0.02)% |
| Net (recoveries) charge-offs (YTD annualized)/average loans | (0.01) |  | (0.01) | (0.01) | 0.01 |
| **DELINQUENT AND NON-ACCRUING LOANS/ TOTAL LOANS** |  |  |  |  |  |
| 30-89 Days delinquent | 0.08% | 0.09% | 0.09% | 0.22% | 0.31% |
| 90+ Days delinquent and still accruing | 0.01 | 0.01 | 0.03 | 0.03 | 0.01 |
| Total accruing delinquent loans | 0.09 | 0.10 | 0.12 | 0.25 | 0.32 |
| Non-accruing loans | 0.23 | 0.27 | 0.29 | 0.35 | 0.40 |
| Total delinquent and non-accruing loans | 0.32%  | 0.37%  | 0.41%  | 0.60%  | 0.72% |

---

H

------

**BAR HARBOR BANKSHARES**

**RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** |
| <br>**(in thousands)** | **Dec 31,**<br>**2022** | **Sep 30,**<br>**2022** | **Jun 30,**<br>**2022** | **Mar 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| Net income | $12512 | $11430 | $10503 | $9112 | $9766 |
| Non-core items: |  |  |  |  |  |
| &nbsp;&nbsp;Gain on sale of securities, net |  | (44) |  | (9) | (890) |
| &nbsp;&nbsp;Loss (gain) on sale of premises and equipment, net | 75 |  | 10 | (75) | 515 |
| &nbsp;&nbsp;Loss on debt extinguishment |  |  |  |  | 1083 |
| &nbsp;&nbsp;Acquisition, conversion and other expenses | (90) | 31 |  | 325 | (92) |
| &nbsp;&nbsp;Income tax expense <sup>(1)</sup> | 4 | 3 | (2) | (56) | (144) |
| Total non-core items | (11) | (10) | 8 | 185 | 472 |
| Core earnings <sup>(2)</sup><br> (A) | $12501 | $11420 | $10511 | $9297 | $10238 |
| Net interest income<br> (B) | $32954 | $29910 | $26519 | $24298 | $23815 |
| Non-interest income | 8228 | 8823 | 8961 | 9309 | 11158 |
| Total revenue | 41182 | 38733 | 35480 | 33607 | 34973 |
| Gain on sale of securities, net |  | (44) |  | (9) | (890) |
| Total core revenue <sup>(2)</sup><br> (C) | $41182 | $38689 | $35480 | $33598 | $34083 |
| Total non-interest expense | 24635 | 23032 | 21700 | 21886 | 22921 |
| Non-core expenses: |  |  |  |  |  |
| (Loss) gain on sale of premises and equipment, net | (75) |  | (10) | 75 | (515) |
| &nbsp;&nbsp;Loss on debt extinguishment |  |  |  |  | (1083) |
| &nbsp;&nbsp;Acquisition, conversion and other expenses | 90 | (31) |  | (325) | 92 |
| Total non-core expenses | 15 | (31) | (10) | (250) | (1506) |
| Core non-interest expense <sup>(2)</sup><br> (D) | $24650 | $23001 | $21690 | $21636 | $21415 |
| Total revenue | 41182 | 38733 | 35480 | 33607 | 34973 |
| Total non-interest expense | 24635 | 23032 | 21700 | 21886 | 22921 |
| Pre-tax, pre-provision net revenue | $16547 | $15701 | $13780 | $11721 | $12052 |
| Core revenue<sup>(2)</sup> | 41182 | 38689 | 35480 | 33598 | 34083 |
| Core non-interest expense<sup>(2)</sup> | 24650 | 23001 | 21690 | 21636 | 21415 |
| Core pre-tax, pre-provision net revenue<sup>(2)</sup><br> (U) | $16532 | $15688 | $13790 | $11962 | $12668 |
| **(in millions)** |  |  |  |  |  |
| Average earning assets<br> (E) | $3517 | $3459 | $3372 | $3386 | $3440 |
| Average paycheck protection program (PPP) loans<br> (R) |  |  | 1 | 3 | 15 |
| Average earning assets, excluding PPP loans<br> (S) | 3517 | 3459 | 3371 | 3383 | 3425 |
| Average assets<br> (F) | 3818 | 3772 | 3688 | 3712 | 3782 |
| Average shareholders' equity<br> (G) | 390 | 393 | 398 | 416 | 423 |
| Average tangible shareholders' equity <sup>(2) (3)</sup> <br> (H) | 265 | 267 | 272 | 290 | 297 |
| Tangible shareholders' equity, period-end <sup>(2) (3)</sup> <br> (I) | 268 | 254 | 268 | 281 | 298 |
| Tangible assets, period-end <sup>(2) (3)</sup> <br> (J) | 3785 | 3715 | 3587 | 3566 | 3583 |

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**BAR HARBOR BANKSHARES**

**RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTARY DATA – UNAUDITED**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** | **At or for the Quarters Ended** |
|  |  | **Dec 31,** | **Sep 30,** | **Jun 30,** | **Mar 31,** | **Dec 31,** |
| **(in thousands)** |  | **2022** | **2022** | **2022** | **2022** | **2021** |
| Common shares outstanding, period-end | (K) | 15083 | 15066 | 15026 | 15013 | 15001 |
| Average diluted shares outstanding | (L) | 15147 | 15113 | 15077 | 15102 | 15075 |
| Core earnings per share, diluted <sup>(2)</sup> | (A/L) | $0.83 | $0.76 | $0.70 | $0.62 | $0.68 |
| Tangible book value per share, period-end <sup>(2)</sup>  | (I/K) | 17.78 | 16.89 | 17.83 | 18.72 | 19.86 |
| Securities adjustment, net of tax <sup>(1) (4)</sup> | (M) | (55246) | (58715) | (38304) | (20225) | 1985 |
| Tangible book value per share, excluding securities adjustment <sup>(2) (4)</sup>  | (I+M)/K | 21.44 | 20.79 | 20.38 | 20.07 | 19.73 |
| Tangible shareholders' equity/total tangible assets <sup>(2)</sup>  | (I/J) | 7.09 | 6.85 | 7.47 | 7.88 | 8.32 |
| **Performance ratios** <sup>(5)</sup> |  |  |  |  |  |  |
| GAAP return on assets |  | 1.30% | 1.20% | 1.14% | 1.00% | 1.02% |
| Core return on assets <sup>(2)</sup> | (A/F) | 1.30 | 1.20 | 1.14 | 1.02 | 1.07 |
| Pre-tax, pre-provision return on assets |  | 1.72 | 1.65 | 1.50 | 1.28 | 1.26 |
| Core pre-tax, pre-provision return on assets <sup>(2)</sup> | (U/F) | 1.72 | 1.65 | 1.50 | 1.31 | 1.33 |
| GAAP return on equity |  | 12.73 | 11.55 | 10.58 | 8.89 | 9.16 |
| Core return on equity <sup>(2)</sup>  | (A/G) | 12.72 | 11.54 | 10.59 | 9.07 | 9.60 |
| Return on tangible equity |  | 19.03 | 17.25 | 15.74 | 13.01 | 13.30 |
| Core return on tangible equity <sup>(1) (2)</sup>  | (A+Q)/H | 19.02 | 17.24 | 15.76 | 13.27 | 13.93 |
| Efficiency ratio <sup>(2) (6)</sup> | (D-O-Q)/(C+N) | 58.19 | 57.67 | 59.25 | 62.40 | 60.74 |
| Net interest margin, fully taxable equivalent <sup>(2)</sup>  | (B+P)/E | 3.76 | 3.47 | 3.19 | 2.95 | 2.79 |
| Core net interest margin <sup>(2) (7)</sup> | (B+P-T)/S | 3.76 | 3.47 | 3.19 | 2.93 | 2.69 |
| **Supplementary data (in thousands)** |  |  |  |  |  |  |
| Taxable equivalent adjustment for efficiency ratio | (N) | $520 | $533 | $491 | $476 | $573 |
| Franchise taxes included in non-interest expense | (O) | 149 | 149 | 144 | 141 | 132 |
| Tax equivalent adjustment for net interest margin | (P) | 365 | 379 | 334 | 320 | 369 |
| Intangible amortization | (Q) | 233 | 233 | 233 | 233 | 233 |
| Interest and fees on PPP loans | (T) |  |  | 27 | 196 | 981 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Assumes a marginal tax rate of 23.53% in the fourth quarter of 2022 and 23.41% for the previous four quarters.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Non-GAAP financial measure.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Securities adjustment, net of tax represents the total unrealized loss on available-for-sale securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;(5) All performance ratios are based on average balance sheet amounts, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Efficiency ratio is computed by dividing core non-interest expense net of franchise taxes and intangible amortization divided by core revenue on a fully taxable equivalent basis.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Core net interest margin excludes Paycheck Protection Program loans.

J

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