Bar Harbor Bankshares, which has 15 branches in downeast, midcoast and central Maine, reported record third-quarter earnings as it expanded into Kennebec and Sagadahoc counties and saw fewer problem loans.

Net income totaled $3.4 million, or 86 cents a share, compared with $3.0 million, or 77 cents a share, a year ago.

It said non-performing loans dropped 17 percent and other potential problem loans fell 14 percent from the end of 2011.

In August, the company acquired most assets and assumed certain liabilities of Border Trust Co., a subsidiary of Border Bancshares Inc. The deal gave it three branch offices in Kennebec and Sagadahoc counties.

“The Border Trust transaction was a logical step in our defined strategy to expand further south and west into markets with attractive demographics, long-term growth potential, and where we have already established significant commercial banking relationships,” said Bar Harbor Bankshares President and Chief Executive Officer Joseph Murphy.

At the end of the third quarter, Bar Harbor Bankshares said assets totaled $1.3 billion, up 11 percent compared with December 31.

Asset growth was driven by increases in its consumer and commercial loan portfolios, combined with an increase in investment securities, the company said. The Border Trust transaction accounted for $41.3 million, or 32.3 percent, of the total growth in assets.

 


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