Bar Harbor Bankshares Announces Earnings.

Business Editors

BAR HARBOR, Maine--(BUSINESS WIRE)--Aug. 16, 2000

Bar Harbor Bankshares reported earnings for the six-month period ended June 30 of $2,243,000, down 20.5%, or $ .17 per share, from the same period a year ago. The Company attributed its earnings decline to a reduction in loan and investment net income spreads (due to fixed rate loans and investments being funded by short-term liabilities), increased overtime and salaries due to the Bank's April computer conversion and related follow-up, and the BTI Financial Group start-up expenses. Total loans increased by approximately 10%, to $276,990, from June, 1999 to June 2000, and loan demand remains strong. Total deposits remained relatively flat. The Company's capital-to-assets ratio was 10.2% at June 30, 2000, compared to 10.8% at December 31, 1999, both strong in comparison with industry norms.

Selected Financial Information in Thousands,
except for per share data:

                                                  Six Months Ended
                                              06/30/2000    06/30/1999

Interest Income                                  $17,485       $15,181
Interest Expense                                   8,497         6,523
Net Interest Income after
  provision for loan losses                        8,662         8,121
Pretax Income                                      3,365         4,267
Net Income                                         2,243         2,844
Earnings per share                               $  0.66       $  0.83

Balance Sheet Data                            06/30/2000    06/30/1999

Total Assets                                    $483,170      $433,820
Total Loans                                      276,990       251,793
Reserve for possible
  loan losses                                      4,144         4,912
Total Deposits                                   271,958       270,472
Shareholders' Equity                              49,141        48,232
Book Value per share                            $  14.50      $  14.01

Bar Harbor Bankshares is a public company with shares traded on the AMEX under the symbol BHB.

More information concerning Bar Harbor Bankshares can be derived from its periodic reports filed with the Security and Exchange Commission, including Form 10Q as filed for the quarter June 30, 2000.