Earnings of Bar Harbor Bankshares (BHB) have declined in the first half of 2019, but we expect them to improve on the back of the company's acquisition of eight bank branches. We expect the company's bottom-line to also receive support from net interest margin and non-interest income.
Lower Funding Cost to Support Margin
We expect cost of funds to decline in the future due to the 50bps Fed Funds rate cut in 2019. Furthermore, funding cost will also be positively affected by the company's increased focus on building non-interest bearing deposits, which increased