Bar Harbor Bankshares (BHB) just closed out FY 2025 with fourth quarter total revenue of US$48.2 million and basic EPS of US$0.70, supported by net income of US$11.8 million, while trailing twelve month figures show revenue of US$163.4 million and EPS of US$2.32. Over recent periods, quarterly revenue has moved from US$38.4 million in Q3 2024 to US$37.4 million in Q4 2024, then to US$37.3 million in Q1 2025 and US$44.0 million in Q3 2025 before reaching US$48.2 million in Q4 2025, as EPS shifted from US$0.80 in Q3 2024 to US$0.72, US$0.67, US$0.40 and US$0.55 in the intervening quarters. Taken together with a trailing net profit margin of 22.6% compared with 29.3% a year earlier, this set of results outlines how revenue trends and profitability are moving in different directions.

See our full analysis for Bar Harbor Bankshares.

With the headline numbers on the table, the next step is to see how they compare with the widely held stories about Bar Harbor Bankshares, including views on its growth prospects, earnings quality and margin trajectory.

Margins and Costs Tell a Mixed Story

• Net interest margin moved between 3.17% and 3.56% through FY 2025 while the cost to income ratio ranged from 56.7% to 62.1%, showing that what the bank earns on its lending and what it spends to run the business have both been shifting around during the year.
• Bulls often focus on the earnings growth forecast of about 24.2% per year, and this margin picture partly challenges that optimism:
  • Trailing net profit margin is 22.6% compared with 29.3% a year earlier, so more of each revenue dollar is currently being absorbed by expenses and other items.
  • At the same time, FY 2025 quarterly revenue moved from US$34.0 million in Q2 to US$48.2 million in Q4, which supports the idea that top line momentum exists even while profitability has been under pressure.

Loan Book Growth with Rising Problem Loans

• Total loans increased from US$3,081.7 million in Q3 2024 to US$3,583.7 million in Q3 2025, while non performing loans went from US$7.1 million to US$9.5 million over the same points, so the loan portfolio is larger but the pool of loans not paying as agreed is also higher in dollar terms.
• Bears tend to worry about asset quality at regional banks, and the data here gives them both support and something to weigh carefully:
  • Non performing loans of US$9.5 million sit against a loan book of US$3,583.7 million, so problem loans are a small slice of total lending, even though they are higher than the US$6.994 million level in Q4 2024.
  • Earnings over the most recent year declined despite this larger loan base, which lines up with the bearish concern that growth in loans does not automatically translate into stronger profitability when credit and margin pressures are in play.

Valuation Signals vs Margin Pressure

• The shares trade at US$33.67 with a P/E of 15.2x, while the DCF fair value is given as US$62.67 and the trailing dividend yield is 3.8%. The market price therefore sits below the modelled value even though the earnings multiple is a bit higher than peer and industry averages.
• What stands out for investors weighing the bullish case against recent profit trends is the tension between valuation and fundamentals:
  • The stock is cited as trading about 46.3% below the DCF fair value of US$62.67, which strongly supports bullish arguments that the market is not fully reflecting its cash flow potential.
  • At the same time, the 22.6% net profit margin versus 29.3% a year earlier and the P/E of 15.2x above peer and US Banks industry averages mean recent performance and pricing are not as cheap as the DCF gap alone might suggest.

To see how these earnings and valuation signals fit into a fuller story on growth, risk, and market expectations, you can read the broader narrative that ties the numbers together. 📊 Read the full Bar Harbor Bankshares Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Bar Harbor Bankshares's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Bar Harbor Bankshares is working through softer margins, uneven quarterly earnings and a loan book where problem loans are creeping higher against a larger base.

If you would rather focus on companies pairing strong profitability with lower financial strain, check out our screener containing 1035 highly profitable stocks with low debt today to zero in on businesses built on healthier economics.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.