REPEAT/Bar Harbor Bankshares Announces 1999 Earnings.

Business Editors

REPEATING...The word &uot;million&uot; was omitted from the second paragraph after $32 on the original release, BW1594, which ran on Feb. 1, 2000 at 1:57 p.m. ET.

BAR HARBOR, Maine--(BUSINESS WIRE)--Feb. 1, 2000

Bar Harbor Banking and Trust Company, a wholly-owned subsidiary of Bar Harbor Bankshares, announced earnings of $6,225,000 for the fiscal year ending December 31, 1999, an average weighted earnings per share of $1.81.

Bar Harbor Banking and Trust Company's Balance Sheet grew by $65 million in 1999. Loans increased by $32 million and the investment portfolio grew by $30 million. Funding for the growth in earning assets came from deposit growth of $15 million and increased borrowings of $47 million. Growth in the Balance Sheet represented an increase in Net Interest Income, after the Provision for Loan Losses, of $774,000.

Non-Interest Income totaled $5.9 million in 1999, an increase of $166,900 compared to 1998. Non-Interest Expense totaled $14.3 million, and included $349,000 in expenses for the bank's upcoming banking software conversion and formation of a new Bar Harbor Bankshares subsidiary, the BTI Financial Group. Salaries and benefits increased by $803,000 in 1999, and included the accrual for a deferred compensation plan and additional salary costs incurred to accomplish the two aforementioned projects. A restructuring of the company's retiree health plan in 1999 will reduce future liability.

Dividends paid in 1999 totaled $0.72, an increase of 7.5% over 1998. Dividends paid represent a 40% dividend pay-out ratio.

The Bank's earnings represent an average return on equity of 13%, an average return on assets of 1.45%, a capital-to-asset ratio of 11%, and a risk-based capital ratio of 19%.

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

                                           Twelve Months Ended
                                       12/31/99   12/31/98   12/31/97
Interest Income                        $ 31,952   $ 29,211   $ 28,518
Interest Expense                         13,802     11,973     11,710
Net Interest Income after
 Provision for Loan Losses               17,676     16,902     16,188
Pretax Income                             9,232      9,725      9,388
Net Income                                6,225      6,607      6,422
Earnings per average share             $   1.81   $   1.92   $   1.87

Balance Sheet Data                     12/31/99   12/31/98   12/31/97
Total Assets                           $456,709   $392,047   $342,726
Total Loans                             261,189    229,435    217,139
Total Investments                       166,639    137,139    105,971
Reserve for possible loan losses          4,293      4,455      4,743
Total Deposits                          281,708    266,448    251,903
Shareholders' Equity                     49,045     46,861     42,462
Book Value per share                   $  14.25   $  13.61   $  12.34

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