What caused BHB's Q1 2024 earnings miss?

Bar Harbor Bankshares Inc. (BHB) experienced a slight earnings miss in Q1 2024, with estimated EPS of $0.65 and revenue of $37.38 million, compared to the actual EPS of $0.66 and revenue of $36.64 million. While the bank's performance was generally in line with expectations, several factors may have contributed to this slight variance: 1. **Interest Income and Dividend Income**: The bank's interest and dividend income rose to $48.6 million in Q3 2024, surpassing the analyst estimate of $38.93 million. This indicates a strong income stream from interest-bearing assets, which could suggest that the Q1 2024 figures may have been influenced by a seasonal fluctuation or a one-time event. 2. **Deposit Growth and Loan Portfolio**: Bar Harbor Bankshares Inc. experienced significant deposit growth, with total deposits increasing by $120.6 million to $3.3 billion, reflecting a 15% annualized growth rate. The loan portfolio also grew by $17.6 million, or 2% on an annualized basis. These growths could have supported the bank's revenue but may not have translated directly into higher earnings in Q1 2024. 3. **Non-Interest Income**: The bank's non-interest income increased to $9.7 million, driven by a 17.2% rise in wealth management income. This suggests a strong performance in non-traditional banking services, which could have been a contributor to the overall revenue but may not have impacted the EPS directly. 4. **Dividend Payments**: Bar Harbor Bankshares has a history of dividend growth and is known for its commitment to returning value to shareholders. The bank's dividend payments, while beneficial for investors, can also impact net income, as they represent a distribution of earnings rather than reinvestment in the business. In conclusion, while BHB's Q1 2024 earnings miss was slight, it can be attributed to a combination of factors including seasonal fluctuations in interest income, the impact of dividend payments, and potentially some strategic business decisions. These elements, while important, did not significantly affect the bank's overall financial health or its consistent track record of dividend growth.