Bar Harbor Bankshares Financial Information as of September 30, 1999.

BAR HARBOR, Maine--(BUSINESS WIRE)--Nov. 12, 1999--

Bar Harbor Banking and Trust Company, a wholly-owned subsidiary of Bar Harbor Bankshares, has announced a 22% increase in its earning assets as of September 30, 1999, compared to September 30, 1998. During the same period, Loans have increased by approximately $30 million; Investments have increased by $45 million. Funding for earning assets has come from deposit growth of $27 million and increased borrowings approximating $48 million.

Earnings for the first nine months of 1999 are $218,000 below earnings for the same period in 1998. The earnings position has been effected by the funding of an additional $404,000 to the Provision for Possible Loan Losses. The addition to the Provision for Possible Loan Losses is in response to loan growth and ensures a 1.9% ratio of Reserve for Possible Loan Losses to Total Loans. On September 30, 1999, the ratio of delinquent loans (those 90 days or more past due; on accrual and loans on non-accrual) to the total loan portfolio was 1.26%.

A Bank initiative resulting in significant start-up expenses is the conversion of its banking software to an Information Technology, Inc. system in the second quarter of 2000. Conversion expenses incurred in 1999 include upgrades of equipment and third-party vendor conversion assistance.

Subject to regulatory approval, Bar Harbor Bankshares has announced the acquisition of Dirigo Investments, Inc. Under a restructuring plan, Bar Harbor Bankshares will form a new financial services holding company to be known as BTI Financial Group. Following its acquisition, Dirigo Investments, Inc. would become a subsidiary of BTI Financial Group and would continue to operate as a full-service discount brokerage firm. BTI Financial Group would also own and operate a Maine chartered, non-depository trust company to be known as Bar Harbor Trust Services and a newly formed SEC registered investment advisor offering portfolio management services to be known as Block Capital Management. Bar Harbor Bankshares is seeking regulatory approval for each of these three operating entities over the next 90 days. Expenses incurred to date in the formation of BTI Financial Group are included in the company's earnings statement for September 30, 1999.

The Bank's Year 2000 preparedness plans continue, with assessment, renovations, and validation phases substantially complete. The Bank's Year 2000 Contingency Plan has been approved by its Board of Directors and includes business resumption pans for the core business processes identified as critical to uninterrupted customer service. The Contingency Plan is currently being validated. Year 2000 costs incurred in 1999 total $53,000; total 1999 costs are not expected to exceed $100,000.

The Bank's capital to asset ratio is 10.7%. The Bank exceeds the required risk-based capital ratio of 8% with a Tier 1 ratio of l7.7%, total capital ratio of 19%, and leverage ratio of 12.5%. The Bank's capital exceeds the requirement for a well-capitalized bank by $30 million.

Selected financial information (in thousands except per share data) follows:

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                                    Nine Months Ended
                              9/30/99    9/30/98    9/30/97

Interest Income              $ 23,469   $ 21,550   $ 21,341
Interest Expense               10,038      8,860      8,804
Net Income after
 provision for Loan Losses     12,775     12,438     11,996
Income before Taxes             6,871      7,129      6,875
Net Income                      4,583      4,801      4,678
Earnings per Share           $   1.33   $   1.39   $   1.36

Balance Sheet Data            9/30/99    9/30/98    9/30/97

Total Assets                 $459,046   $378,466    353,744
Total Loans                   260,774    230,030    220,389
Total Investments             168,576    123,174    109,847
Reserve for possible
 Loan Losses                    4,903      4,535      4,743
Total Deposits                292,583    265,043    262,798
Shareholders' Equity           48,972     45,476     41,219
Book Value per Share         $  14.22   $  13.21   $  11.98

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