Bar Harbor Bankshares Declares Quarterly Cash Dividend

Rhea-AI Summary

Bar Harbor Bankshares (BHB) declared a quarterly cash dividend of $0.28 per share of common stock, equating to a 3.81% annualized yield. The parent company of Bar Harbor Bank & Trust, founded in 1887, serves the financial needs of clients in Northern New England states.

Financial Analyst

The declaration of a quarterly cash dividend of $0.28 per share by Bar Harbor Bankshares represents a tangible return to shareholders and is indicative of the company's current financial health and management's confidence in its steady cash flows. The stated annualized yield of 3.81% based on the closing price of the company's stock is a critical metric for income-focused investors, as it benchmarks the return on investment from dividends alone against other income-generating assets.

It is important to note that the yield is significantly influenced by the stock price, which can fluctuate due to market conditions. Investors should also be aware that dividend payouts can impact a company's cash reserves and possibly its ability to reinvest in growth opportunities. However, a long-standing institution like Bar Harbor Bankshares likely has a clear understanding of its financial position to sustain such dividends without compromising its strategic investments.

Market Research Analyst

From a market perspective, the announcement of a consistent dividend can signal stability and attract a certain class of investors who prioritize regular income. This could potentially increase demand for Bar Harbor Bankshares' stock and provide some price support. However, the market also reacts to how the dividend yield compares to industry averages and alternative investment opportunities. If the yield is perceived as too low relative to the risks or industry standards, it might not have a significant positive effect on the stock price.

Moreover, in evaluating the attractiveness of the dividend, investors will consider the payout ratio, which is the proportion of earnings paid out as dividends. A sustainable payout ratio suggests that the company can continue to pay dividends at the current rate or possibly increase them in the future. Bar Harbor Bankshares' historical payout ratios, earnings growth and future earnings projections are thus critical factors for market analysts and investors alike.

Economist

An economist would examine the broader economic context in which this dividend announcement is made. Interest rates, inflation and economic growth prospects all influence the attractiveness of dividend stocks. In a low-interest-rate environment, for example, a dividend yield of 3.81% might be particularly appealing. Conversely, if interest rates are rising, fixed-income securities could become more attractive, potentially diminishing the appeal of dividend stocks like those of Bar Harbor Bankshares.

Additionally, regional economic conditions are pertinent, particularly for a community bank with a concentrated geographical footprint. The economic health of Maine, New Hampshire and Vermont, where Bar Harbor operates, will directly affect the bank's business prospects and, by extension, its ability to maintain dividend payments. An economist would look for indicators such as employment rates, housing market health and business growth within these states as part of their analysis.

BAR HARBOR, ME / ACCESSWIRE / January 16, 2024 / Bar Harbor Bankshares (NYSE American:BHB) (the "Company") announced that its Board of Directors declared at its January 16, 2024 meeting, a quarterly cash dividend of $0.28 per share of common stock to Company shareholders of record at the close of business on February 15, 2024, payable on March 15, 2024. This dividend equates to a 3.81% annualized yield based on the $29.36 closing price of the Company's common stock on December 29, 2023, the last day of trading in 2023.

BACKGROUND

Bar Harbor Bankshares 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 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 www.barharbor.bank.

FORWARD LOOKING STATEMENTS

Statements in this press release regarding the expected payment of the Company's quarterly cash dividend is a forward looking statement. There are a number of important factors that could cause our ability to pay or increase cash dividends in the future to differ materially from those suggested or indicated by such forward-looking statements. These include, among other, the market price of the Company's stock prevailing from time to time, our the continued financial strength, the nature of other investment opportunities available to the Company from time to time, the Company's cash flows from operations, general economic conditions, and other factors identified in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

CONTACT

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

SOURCE: Bar Harbor Bank and Trust

View the original press release on accesswire.com

What is the quarterly cash dividend declared by Bar Harbor Bankshares?

Bar Harbor Bankshares declared a quarterly cash dividend of $0.28 per share of common stock.

When will the dividend be paid to Company shareholders?

The dividend will be payable on March 15, 2024.

What is the annualized yield of the declared dividend?

The dividend equates to a 3.81% annualized yield.

When is the record date for Company shareholders to receive the dividend?

Company shareholders of record at the close of business on February 15, 2024, are eligible to receive the dividend.

What is the closing price of the Company's common stock on December 29, 2023?

The closing price of the Company's common stock on December 29, 2023, was $29.36.

Where does Bar Harbor Bank & Trust operate?

Bar Harbor Bank & Trust operates in all three Northern New England states of Maine, New Hampshire, and Vermont.