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HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.5GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
7.0%
Sector: 8.5%
Dividend Analysis audit
INCOME
4.07%
Trailing Yield
$4.07
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
61%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, BAR HARBOR BANKSHARES (BHB) receives a "Hold" rating with a composite score of 52.3/100, ranked #781 out of 4446 stocks. Key factor scores: Quality 50/100, Value 65/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
BAR HARBOR BANKSHARES (BHB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does BAR HARBOR BANKSHARES Do?
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. BAR HARBOR BANKSHARES (BHB) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Curtis C. Simard and employs approximately 490 people, headquartered in BAR HARBOR, Maine. With a market capitalization of $551M, BHB is one of the notable companies in the Financials sector.
BAR HARBOR BANKSHARES (BHB) Stock Rating — Hold (April 2026)
As of April 2026, BAR HARBOR BANKSHARES receives a Hold rating with a composite score of 52.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BHB ranks #781 out of 4,446 stocks in our coverage universe. Within the Financials sector, BAR HARBOR BANKSHARES ranks #229 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BHB Stock Price and 52-Week Range
BAR HARBOR BANKSHARES (BHB) currently trades at $35.11. The stock lost $0.12 (0.3%) in the most recent trading session. The 52-week high for BHB is $36.05, which means the stock is currently trading -2.6% from its annual peak. The 52-week low is $26.43, putting the stock 32.8% above its annual trough. Recent trading volume was 111K shares, suggesting relatively thin trading activity.
Is BHB Overvalued or Undervalued? — Valuation Analysis
BAR HARBOR BANKSHARES (BHB) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 15.05x, compared to the Financials sector average of 14.88x — a premium of 1%. The price-to-book ratio stands at 1.06x, versus the sector average of 1.22x. The price-to-sales ratio is 2.80x, compared to 0.90x for the average Financials stock. On an enterprise value basis, BHB trades at 15.55x EV/EBITDA, versus 3.26x for the sector.
Overall, BHB's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
BAR HARBOR BANKSHARES Profitability — ROE, Margins, and Quality Score
BAR HARBOR BANKSHARES (BHB) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 7.0%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.8% versus the sector average of 1.2%.
On a margin basis, BAR HARBOR BANKSHARES reports gross margins of 0.0%. The operating margin is 22.5% (sector: 21.8%). Net profit margin stands at 18.7%, versus 17.7% for the average Financials stock. Revenue growth is running at 19.4% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BHB Debt, Balance Sheet, and Financial Health
BAR HARBOR BANKSHARES has a debt-to-equity ratio of 25.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $135M. Cash and equivalents stand at $43M.
BHB has a beta of 0.72, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for BAR HARBOR BANKSHARES is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
BAR HARBOR BANKSHARES Revenue and Earnings History — Quarterly Trend
In TTM 2026, BAR HARBOR BANKSHARES reported revenue of $201M and earnings per share (EPS) of $2.32. Net income for the quarter was $37M. Gross margin was 0.0%. Operating income came in at $45M.
In FY 2025, BAR HARBOR BANKSHARES reported revenue of $210M and earnings per share (EPS) of $2.32. Net income for the quarter was $37M. Revenue grew 11.0% year-over-year compared to FY 2024. Operating income came in at $46M.
In Q3 2025, BAR HARBOR BANKSHARES reported revenue of $56M and earnings per share (EPS) of $0.55. Net income for the quarter was $9M. Revenue grew 15.1% year-over-year compared to Q3 2024. Operating income came in at $11M.
In Q2 2025, BAR HARBOR BANKSHARES reported revenue of $49M and earnings per share (EPS) of $0.40. Net income for the quarter was $6M. Revenue grew 3.9% year-over-year compared to Q2 2024. Operating income came in at $7M.
Over the past 8 quarters, BAR HARBOR BANKSHARES has demonstrated a growth trajectory, with revenue expanding from $47M to $201M. Investors analyzing BHB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BHB Dividend Yield and Income Analysis
BAR HARBOR BANKSHARES (BHB) currently pays a dividend yield of 4.1%. At this yield, a $10,000 investment in BHB stock would generate approximately $$407.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning BHB offers above-average income for its sector. With a net margin of 18.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
BHB Momentum and Technical Analysis Profile
BAR HARBOR BANKSHARES (BHB) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
BHB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing BHB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BHB vs S&P 500 (SPY) comparison to assess how BAR HARBOR BANKSHARES stacks up against the broader market across all factor dimensions.
BHB Next Earnings Date
No upcoming earnings date has been announced for BAR HARBOR BANKSHARES (BHB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BHB? — Investment Thesis Summary
BAR HARBOR BANKSHARES presents a balanced picture with arguments on both sides. The value score of 65/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 81/100) reduces downside risk.
In summary, BAR HARBOR BANKSHARES (BHB) earns a Hold rating with a composite score of 52.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BHB stock.
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Institutional Research Dossier
BAR HARBOR BANKSHARES (BHB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Bar Harbor Bankshares (BHB). While the company exhibits attractive valuation metrics relative to the sector, particularly its lower P/E and EV/EBITDA ratios, concerns regarding declining profitability and a weak Investment score temper our enthusiasm. The bank's recent revenue growth is encouraging, but a consistent downward trend in operating margins and a relatively low ROE compared to peers suggest potential challenges in maintaining profitability and efficiently allocating capital.
The primary takeaway is that BHB presents a mixed picture. Its valuation appears undemanding, and its stability is a positive attribute. However, investors should closely monitor the bank's ability to sustain revenue growth while improving profitability and capital allocation. The current Hold rating reflects a balanced view of these competing factors, pending further evidence of improved financial performance.
Business Strategy & Overview
Bar Harbor Bankshares operates as a community bank, providing a range of financial services across Maine, New Hampshire, and Vermont. Its core business revolves around traditional banking activities, including accepting deposits and originating loans. The bank's revenue streams are diversified across commercial lending, retail banking, and wealth management services. Commercial real estate loans, commercial and industrial loans, residential real estate loans, and consumer loans constitute the lending portfolio. Deposit products include 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's strategic positioning centers on serving individuals, businesses, and municipalities within its geographic footprint. This localized approach allows for personalized service and a deeper understanding of the needs of its customer base. The wealth management division provides life insurance, annuity, and retirement products, financial planning services, third-party investment and insurance services, trust and estate administration, wealth advisory, and investment management services. The bank also offers 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services.
Bar Harbor Bankshares operates 53 locations, indicating a significant physical presence in its target markets. This branch network supports its retail banking operations and provides a tangible point of contact for customers. The bank's strategy appears to be focused on organic growth within its existing markets, leveraging its established brand and customer relationships. The company's focus on community banking allows it to differentiate itself from larger national banks, emphasizing local expertise and personalized service.
The competitive landscape for Bar Harbor Bankshares includes other community banks, regional banks, and credit unions operating in the same geographic areas. These institutions compete for deposits, loans, and wealth management services. The bank's ability to maintain and grow its market share depends on its ability to offer competitive rates, provide excellent customer service, and effectively manage its risk profile. The company's investment score of 26/100 suggests that capital allocation and growth initiatives may be areas of concern, potentially hindering its ability to compete effectively in the long term.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
19.4%
Sector: 9.4%
+107% VS SCTR
Economic Moat Analysis
Bar Harbor Bankshares likely possesses a Narrow economic moat, primarily derived from its established brand and customer relationships within its local markets. Community banks often benefit from strong ties to their communities, fostering customer loyalty and reducing customer churn. This local presence and personalized service create a degree of switching costs for customers who value the convenience and familiarity of banking with a local institution.
The bank's long history, dating back to 1887, has allowed it to build a reputation for reliability and trustworthiness within its service areas. This intangible asset contributes to its ability to attract and retain customers. However, the moat is not particularly wide, as other community banks and credit unions offer similar services and also cultivate local relationships. The banking industry is generally competitive, and customers have a range of options for their financial needs.
Efficient scale is not a significant factor in Bar Harbor Bankshares' moat. While there are economies of scale in banking, the company's size and geographic focus limit its ability to achieve significant cost advantages over its competitors. Network effects are also not a primary driver of its competitive advantage. The value of the bank's services does not increase significantly as more customers join.
The bank's ability to maintain its narrow moat depends on its continued focus on customer service, its ability to adapt to changing customer preferences, and its effective management of risk. The rise of online banking and fintech companies poses a challenge to traditional community banks, as customers increasingly demand digital solutions and convenient access to financial services. Bar Harbor Bankshares must invest in technology and innovation to remain competitive and maintain its customer base. The relatively low Quality score of 50/100 suggests that the bank's profitability and returns may be vulnerable to competitive pressures.
Financial Health & Profitability
Bar Harbor Bankshares' financial health presents a mixed picture. The company has demonstrated solid revenue growth, with revenue increasing from $174.18 million in FY2023 to $209.52 million in FY2025. This growth is significantly higher than the sector average of 9.3%. However, net income has fluctuated, decreasing from $44.85 million in FY2023 to $36.92 million in FY2025, indicating potential challenges in maintaining profitability despite revenue growth.
Operating margins have shown a concerning downward trend, declining from 32.8% in FY2023 to 21.9% in FY2025. This decline suggests increasing operating expenses or pricing pressures that are impacting profitability. The company's ROE of 7.0% is below the sector average of 8.5%, indicating that it is not generating as much profit from shareholders' equity as its peers. The current ratio of 1.13 suggests adequate liquidity to meet short-term obligations.
The company's debt-to-equity ratio of 25.00 is significantly lower than the sector average of 115.00, indicating a conservative approach to leverage. This lower leverage provides a buffer against potential economic downturns. However, the relatively low free cash flow of $2.42 million raises concerns about the company's ability to generate cash from its operations. The quarterly financial history reveals a consistent pattern of fluctuating net income and operating margins, highlighting the need for improved financial stability.
The bank's stability score of 78/100 is a positive attribute, suggesting that it is less volatile than its peers. However, the declining profitability and relatively low ROE raise concerns about its long-term financial health. The company needs to focus on improving its operating efficiency and capital allocation to enhance its financial performance. The relatively low free cash flow generation is a concern that needs to be addressed to ensure the company's long-term financial sustainability.
Valuation Assessment
Bar Harbor Bankshares' valuation appears attractive relative to its peers based on several key metrics. The company's P/E ratio of 13.5x is lower than the sector average of 15.5x, suggesting that the stock is undervalued compared to its earnings. Similarly, its EV/EBITDA ratio of 3.6x is slightly above the sector average of 3.5x, indicating a fair valuation based on its enterprise value relative to its earnings before interest, taxes, depreciation, and amortization.
However, the valuation must be considered in the context of the company's financial performance. The declining operating margins and relatively low ROE raise concerns about the sustainability of its earnings. If the company is unable to improve its profitability, its valuation may not be as attractive as it initially appears. The low free cash flow generation also warrants caution, as it limits the company's ability to invest in growth initiatives or return capital to shareholders.
The company's momentum score of 48/100 suggests that its stock price has not been performing as well as its peers. This may be due to investor concerns about its declining profitability and relatively low ROE. The short interest score of 18/100 indicates that there is not a significant amount of short selling activity in the stock, suggesting that investors are not overly bearish on its prospects.
Overall, Bar Harbor Bankshares' valuation appears fair to slightly undervalued based on its P/E and EV/EBITDA ratios. However, investors should closely monitor the company's financial performance to ensure that its earnings are sustainable. The declining operating margins and relatively low ROE are potential red flags that warrant further investigation. The company's ability to improve its profitability and capital allocation will be crucial in determining its long-term valuation.
Risk & Uncertainty
Bar Harbor Bankshares faces several specific risks that could impact its financial performance and valuation. One significant risk is the potential for increased competition from other community banks, regional banks, and credit unions operating in its geographic markets. These institutions compete for deposits, loans, and wealth management services, and increased competition could put pressure on the bank's margins and market share.
Another risk is the potential for changes in interest rates. Rising interest rates could negatively impact the bank's net interest margin, as it may need to pay higher rates on deposits while its loan yields may not increase as quickly. Conversely, falling interest rates could reduce the bank's loan yields and profitability. The bank's ability to manage its interest rate risk is crucial to its financial performance.
The bank also faces regulatory risks. Changes in banking regulations could increase its compliance costs and limit its ability to generate revenue. The bank must comply with a complex web of federal and state regulations, and any changes in these regulations could have a material impact on its business. Credit risk is also a concern. The bank's loan portfolio is exposed to the risk of borrowers defaulting on their loans. Economic downturns or industry-specific challenges could increase the likelihood of loan defaults, which could negatively impact the bank's earnings.
Bulls Say / Bears Say
The Bull Case
BULL VIEWBar Harbor Bankshares' low P/E and EV/EBITDA ratios suggest it's undervalued, offering a compelling entry point for value investors seeking exposure to the financial sector.
BULL VIEWThe bank's strong revenue growth demonstrates its ability to capture market share and expand its business within its geographic footprint, indicating a positive growth trajectory.
The Bear Case
BEAR VIEWThe consistent decline in operating margins signals eroding profitability, suggesting the bank is struggling to control costs or maintain pricing power in a competitive environment.
BEAR VIEWBar Harbor Bankshares' ROE is below the sector average, indicating it's not efficiently utilizing shareholder equity to generate profits, raising concerns about management's capital allocation decisions.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BHB and 4,400+ other equities.
BAR HARBOR BANKSHARES exhibits a 144% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
22.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
18.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+64%
Income Projection audit
A $10,000 investment would generate approximately $407 annually in dividends at the current trailing rate.
