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Bar Harbor Bankshares Inc, or as the local Maineacs call it, Bah Humbug, goes by the ticker symbol BHB and is a small-cap member of the financial services sector as a regional bank. This is my first report on Bar Harbor Bancshares Inc for this Vista folio. It was previously reviewed for an earlier portfolio.

Bar Harbor Bankshares Inc is a bank holding company which, along with its subsidiaries, offers a full range of financial services products, brokerage services through third-party brokerage arrangement and also trust and investment management services to individuals, businesses, non-profit organizations, and municipalities. 

Its products and services consist of checking, deposits, cards, mobile banking, online services, loans, merchant services, trust, and fiduciary services, investment planning, education funding, individual retirement planning, insurance, and risk management services.

It operates approximately 53 locations across Maine, New Hampshire, and Vermont. 

The company was founded in 1887 and is based in Bar Harbor, Maine.

Three key data points gauge dividend equities or funds like Bar Harbor Bankshares Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

BHB Price

Bar Harbor's price per share closed at $30.32 yesterday. One year ago its price was $20.43. Thus, price per share grew over 48% year over year as it recovered from the Covid doldrums. 

Should BHB's stock trade in the range of $18 to $38.00 this next year, its recent $30.32 price might rise by $3.68 to reach $34 by June 4, 2022. My estimate corresponds with that of the one analyst who tracks BHB.

BHB Dividends

Bar Harbor's most recent quarterly dividend of $0.24 is payable June 18th and equates to $0.96 annually which will yield 3.17% based on yesterday's $30.32 closing price. BHB has paid quarterly dividends increasing annually since 2003 (18 years.)

BHB Returns

Adding the $0.86 annual Bar Harbor Bankshares forward-looking dividend to my $3.68 price upside estimate shows a $4.82 potential gross gain, per share, to be reduced by any costs to trade the shares.  Say we invest a little over  $1000 in BHB at $30.32 per share, we'd buy 33 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.30 per share.

Subtract that maybe $0.30 brokerage cost from my estimated $4.82 gross gain per share results in a net gain of $4.52 X 33 shares = $149.80 for a 14.9% net gain on a $1,000.56 investment.

So it is that Bar Harbor Bankshares Inc shows a possible 14.9% net gain including a 3.17% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in BHB would generate $31.70 in cash dividends. And a single share bought at yesterday's closing price was $30.32! So, if BHB is your kind of regional bank investment, Bar Harbor Bankshares Inc's share price is about $1.38 below the expected annual dividend income from $1,000 invested. This suggests that now is the time to add Bar Harbor Bankshares Inc to your stock holdings. That is before the price exceeds the dividend income from  $1K invested.

All of the estimates above are speculation based on the past history of Bar Harbor Bankshares Inc. Only time and money invested in this stock will determine its true worth.