UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarter ended March 31, 2000 Commission
File No. 841105-D
BAR HARBOR BANKSHARES
Maine 01-
0393663
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization
Identification No.)
P. O. Box 400
82 Main Street, Bar Harbor, ME
04609-0400
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(207) 288-3314
Indicate by check mark whether the Registrant (1) has
filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and
(2) has been subject to such filing requirements for
the past 90 days.
YES: XX NO:
Indicate the number of shares outstanding of each of
the issuer's classes of common stock as of March 31,
2000:
Common Stock: 3,387,414
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Financial Information Page
<S> <C>
Item 1. Independent Accountants' 2
Report
3-4
Item 2. Financial Statements
Consolidated Statements of Condition 5
December 31, 1999 and March 31, 2000 Consolidated
Statements of Earnings 5
Three months ended March 31, 1999
and 2000
Consolidated Statements of Changes in 6
Stockholders' Equity
Three months ended March 31, 1999 and 2000
Consolidated Statement of Cash Flows 7-8
Three months ended March 31, 1999
and 2000
Item 3. Notes to Consolidated 9
Financial Statements
Item 4. Rate Volume Analysis 10
Item 5. Management's Discussion and
Analysis of Financial Condition and Results
of Operations 11-13
Signature Page
14
</TABLE>
INDEPENDENT ACCOUNTANTS' REPORT
The Board of Directors
Bar Harbor Bankshares
We have reviewed the accompanying interim consolidated
financial information of Bar Harbor Bankshares and
Subsidiaries as of March 31, 2000, and for the three
month period then ended. These financial statements
are the responsibility of the Company's management.
We conducted our review in accordance with the
standards established by the American Institute of
Certified Public Accountants. A review of interim
financial information consists principally of applying
analytical procedures to financial data and making
inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope
than an audit in accordance with generally accepted
auditing standards, the objective of which is to
express an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such
an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying
financial statements for them to be in conformity with
generally accepted accounting principles.
Portland, Maine
May 11, 2000
BAR HARBOR BANKSHARES AND SUBSIDIARIES
CONSOLIDATED STATEMENTSOF FINANCIAL CONDITION
MARCH 31, 2000 and DECEMBER 31, 1999
(in thousands, except number of shares and per share
data)
<TABLE>
<CAPTION>
March 31, December
31,
2000 1999
(Unaudited)
<S>
<C> <C>
ASSETS
Cash and Due from Banks $10,611 $12,852
Securities Available for 37,013 31,690
Sale
Securities Held to Maturity
(Market Value 128,933 128,831
$125,098 at 3/31/00;
$125,416 at 12/31/99)
Other Securities 6,705 6,118
Loans, net of allowance for
possible loan losses of 261,065 256,896
$4,176 in 2000
and $4,293 in 1999)
Premises and Equipment 10,662 8,440
Other Assets 12,912 11,982
Total Assets $467,901
$456,809
LIABILITIES AND STOCKHOLDERS'
EQUITY
LIABILITIES
Deposits
Demand Deposits $38,194 $41,904
Now Accounts 42,393 45,107
Savings Deposits 75,409 78,511
Time Deposits 114,572 116,186
Total Deposits 270,568 281,708
Securities sold under
Repurchase Agreements 15,749 8,807
Advances from Federal Home 127,819 113,035
Loan Bank
Other Liabilities 4,534 4,114
Total Liabilities 418,670 407,664
STOCKHOLDERS' EQUITY
Capital Stock, par value $2
Authorized 10,000,000
shares issued 3,643,614 7,287 7,287
Surplus 4,002 4,002
Retained Earnings 41,251 40,611
Net unrealized depreciation
on securities available for sale,
net of tax (995) (1,015)
Less: Cost of Treasury Stock
256,200 shares in 2000 and
222,100 shares in 1999 (2,314) (1,740)
TOTAL STOCKHOLDERS' EQUITY 49,231 49,145
TOTAL LIIABILITIES AND $467,901
$456,809
STOCKHOLDERS' EQUITY
</TABLE>
BAR HARBOR BANKSHARES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except number of shares and per share
data)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
3/31/00 3/31/99
<S> <C> <C>
Interest and Dividend Income:
Interest & Fees on Loans
$5,700 $5,141
Interest and Dividends on
Investment Securities:
Taxable Interest Income 2,651 2,046
Non-taxable Interest 60 83
Income
Dividends 118 113
Federal Funds Sold 15 23
Total Interest & Dividend 8,544 7,406
Income
Interest on Deposits 2,140 2,048
Interest on Borrowings
1,901 1,150
Total Interest Expense
4,041 3,198
Net Interest Income
4,503 4,208
Provision for Loan Losses 163 269
Net Interest Income after
Provision for Loan Losses 4,340 3,939
Other Income 1,349 1,186
Other Expenses:
Salaries & Employee 1,957 1,540
Benefits
Other 1,811 1,626
Earnings Before Income Taxes 1,921 1,959
Income Tax 635 644
Net Earnings $1,286 $1,315
PER COMMON SHARE DATA
Net earnings $0.38 $0.38
Weighted average number of
common 3,404,490
3,443,614
Shares outstanding
Dividends Per Share $0.19 $0.17
</TABLE>
BAR HARBOR BANKSHARES AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF
CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31,
2000 and 1999
(in thousands, except number of shares and per share data)
(UNAUDITED)
<TABLE>
<CAPTION>
NET UNREALIZED
DEPRECIATION T O
T A L
CAPITAL RETAINED ON
SECURITIES TREASURY
STOCKHOLDERS'
STOCK SURPLUS EARNINGS AVAILABLE
STOCK EQUITY
FOR SALE
<S> <C> <C> <C> <C>
<C> <C>
Balance, December 31, $7,287 $4,002 $36,862 $50
($1,340) $46,861
1998
Net Earnings 1,315
$1,315
Net unrealized
depreciation on
Securities
available for sale,
net of tax benefit of $20
(61)
($61)
Total comprehensive 1,315 (61)
1,254
income
Cash dividends
declared ($0.17 per (585)
($585)
share)
Balance, March 31, $7,287 $4,002 $37,592 ($11)
($1,340) $47,530
1999
Balance, December 31, $7,287 $4,002 $40,611 ($1,015)
($1,740) $49,145
1999
Net Earnings 1,286
$1,286
Net unrealized
appreciation on
Securities $20
$20
available for sale,
Net of tax of $10
Total comprehensive 1,286 20
1,306
income
Cash dividends
declared ($0.19 per (646)
($646)
share)
Purchase of Treasury
Stock - 34,100 shares ($574)
($574)
Balance, March 31, $7,287 $4,002 $41,251 ($995)
($2,314) $49,231
2000
</TABLE>
BAR HARBOR BANKSHARES AND SUBSIDIARIES
COLSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
2000 1999
<S> <C> <C>
Cash Flows from Operating
Activities:
Net Income $1,286 $1,315
Adjustments to reconcile net
earnings to net
cash provided by operating
activities:
Depreciation 253 245
Provision for Loss Losses 163 269
Provision for Losses on
Other Real Estate Owned 0 1
New Loans Originated for Sale (97) (4,227)
Proceeds from Sale of
Mortgages Held for sale 97 4,961
Gain on Sale of Mortgages
Originated for sale (56) (64)
Net Amortization of Bond
Premium 29 55
(Gain) Loss on sale of premises and equipment 7
(0)
Net Change in Other Assets (876) (2,280)
Net Change in Other Liabilities 422
235
Net Cash Provided by Operating Activities 1,228
510
Cash Flows from Investing Activities:
Purchases of Securities Held to Maturity (4,347)
(11,523)
Proceeds from Maturity and
Principal Paydowns of Securities held
to maturity 4,206 1,250
Proceeds from Call of
Securities Held to Maturity 0 7,101
Purchases of Securities Available for Sale (5,308)
(7,980)
Proceeds from Maturity and Principal paydowns
of available for sale 26 1,471
of available for sale
Proceeds from sale and calls
of securities available for sale 0 3,500
Net decrease (increase) in
other securities (587) 28
Net Loans Made to Customers (4,336) (7,094)
Capital Expenditures (2,537) (41)
Proceeds from Sale of Premises
and Equipment 47 0
Net Cash Used in Investing Activities (12,836)
(13,288)
Cash Flows from Financing Activities
Net Change in Savings, NOW and
Demand Deposits (9,526) (6,769)
Net Change in Time Deposits (1,614) (1,417)
Net Change in securities sold
Repurchase Agreements 6,942 (1,666)
Purchase of Advances from FHLB 40,000 25,000
Repayment of Advances from FHLB (35,000) (3,500)
Net Change in Short Term Other
Borrowed Funds 9,785 (2,955)
Proceeds from Sale of Capital Stock (574)
0
Payment of Dividends (646)
(585)
Net Cash Provided by Financing Activities
9,367 8,108
Net Increase (Decrease) in Cash (2,241)
(4,670)
and Cash Equivalents
Cash and Cash Equivalents at
Beginning of Year 12,852 11,511
Cash and Cash Equivalents at End
of Quarter $10,611 $6,841
Supplemental Disclosures of Cash
Flow Information:
Cash Paid during the Year for:
Interest $4,073 $3,186
Non-Cash Transactions:
Transfers from Loans to Other
Real Estate Owned $4 $49
</TABLE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Summary of interim financial statements.
The accompanying unaudited statements reflect all
adjustments (all of which are normal and recurring in
nature), which are, in the opinion of management,
necessary to present a fair statement of the results
for the interim periods presented. The financial
statements should be read in conjunction with the
Consolidated Financial Statements and related Notes
included in the Bank's 1999 Annual Report.
Statement of Financial Accounting Standards (SAS)
No. 133, "Accounting for Derivative Instruments and
Hedging Activities," as amended by SFAS No. 137, is
effective for years beginning after June 15, 2000. This
statement sets accounting and reporting standards for
derivative instruments and hedging activities. It
requires that an entity recognize all derivative as
either assets or liabilities in the balance sheet and
measure those instruments at fair value. The Bank does
not hold any derivative instruments. Should the Bank
enter into derivative transactions, SFAS No. 133 will
be followed.
2. Line of Business Reporting
The Company manages and operates two major lines of
business: Community Banking and Financial Services.
Community Banking includes lending and deposit
gathering activities and related services to businesses
and consumers. Financial Services consists of
broker/deal operations, trust services, and portfolio
management. The business lines are identified by the
entities through which the product or service is
delivered.
The reported line of business results reflect the
underlying core operating performance within the
business units. Other is comprised of intercompany
eliminations. Information is not presented for prior
periods as the Financial Services segment was not
formed until January 2000 and it is impractical to
restate corresponding information for the prior year.
Substantially all of the Company's assets are part of
the community banking line of business. Selected
segment information is included in the following table.
<TABLE>
<CAPTION>
Three Months Ended Community Financial
Consolidated
March 31, 2000 Banking Services Other
Totals
<S> <C> <C> <C>
<C>
Net Interest Income $4,501 $2 $ 0 $4,503
Provision for loan losses 163 0
0 163
Net interest income after
provision for loan losses 4,338 2 0
4,340
Other income 2,513 796 (1,960)
1,349
Other expense 2,915 886 (33)
3,768
Earnings(loss) before
income tax 3,396 (88)
(1,927) 1,921
Income tax (benefit) 1,302 (30)
(637) 635
Net earnings (loss) $2,634 $ (58) $(1,290)
$1,286
</TABLE>
RATE VOLUME ANALYSIS
The following table represents a summary of the changes
in interest earned and interest paid as a result of
changes in rates and changes in volumes.
For each category of earning assets and interest
bearing liabilities, information is provided with
respect to changes attributable to change in rate
(change in rate multiplied by old volume) and change in
volume (change in volume multiplied by old rate). The
change in interest due to both volume and rate has been
allocated to volume and rate changes in proportion to
the relationships of the absolute collar amounts of the
change in each.
YEAR-TO-DATE FIGURES AS OF MARCH 31, 2000
COMPARED TO MARCH 31, 1999
(in thousands, except number of shares and per share
data)
INCREASES (DECREASES) DUE TO:
<TABLE>
<CAPTION>
VOLUME RATE NET
<S> <C> <C> <C>
Loans $648 ($90) $558
Taxable Securities 524 86 610
Tax Exempt Securities (26) 4
(22)
Federal Funds Sold and (20) 11
(9)
Money Market Funds
TOTAL EARNING ASSETS $1,126 $11 $1,137
Deposits 128 (37) 91
Borrowings 635 117 752
Total Interest Bearing
Liabilities $763 $ 80 $843
NET CHANGE IN INTEREST $363 ($69)
$294
</TABLE>
YEAR-TO-DATE FIGURES AS OF MARCH 31, 1999
COMPARED TO MARCH 31, 1998
(in thousands, except number of shares and per share
data)
INCREASES (DECREASES) DUE TO:
<TABLE>
<CAPTION> VOLUM RATE NET
E
<S> <C> <C> <C>
Loans $364 ($282) $82
Taxable Securities 556 (126) 430
Tax Exempt Securities (31) (10) (41)
Federal Funds Sold and 10 (2) 8
Money Market Funds
TOTAL EARNING ASSETS $899 ($420) $479
Deposits 80 (174) (94)
Borrowings 501 (41) 460
Total Interest Bearing $581 ($215) $366
Liabilities
NET CHANGE IN INTEREST $318 ($205) $113
</TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following is the review of the results of
operations for the three months ended March 31, 2000,
as compared to March 31, 1999. Earnings of $1,286,000
were achieved for the first three months of 2000, and
are $29,000 below the earnings for the same period in
1999. Two projects, the formation of BTI Financial
Group and its three subsidiary companies and the
conversion of the banking software for the Bank, were
the primary focus of Bar Harbor Bankshares (the
Company) over the past twelve months. The impact of
these projects on the Company's earnings is discussed
below.
BTI Financial Group, a wholly-owned financial
services subsidiary of Bar Harbor Bankshares, was
formed in the fall of 1999. Dirigo Investments, Inc.,
a NASD registered broker- dealer, was acquired in
January of 2000. The transaction was accounted for by
the purchase method of accounting. The purchase price
was not material to the consolidated financial
statements. Additionally, Bar Harbor Trust Services
and Block Capital Management, a registered investment
advisor, were formed out of Bar Harbor Banking and
Trust Company's Trust Department. These three
companies serve as wholly-owned operating subsidiaries
of BTI Financial Group. As a result of the formation
of BTI Financial Group, the Company has implemented
segment reporting as required by Statement of
Accounting Standard (SFAS) No. 131, "Disclosures about
Segments of an Enterprise and Related Information."
The formation of these three companies will position
BTI Financial Group to more fully participate in
various segments of the financial services industry
with the potential for significant growth. During the
first quarter of 2000, a business development and
marketing person has been added to the BTI team,
enhancing BTI's visibility throughout the market areas.
During the second quarter of 2000, a branch office of
Dirigo Investments, Inc. will open in the Bangor area,
expanding the potential market area.
The statement of financial condition has grown by
2% from December 31, 1999 to March 31, 2000. Loan
growth of $4 million, investment growth of $6,000 and
premise growth of $2.2 million, with an offsetting
reduction in the Company's cash of $2.2 million made up
the changes. Premises and equipment growth during the
first quarter of 2000 included the purchase of the
future headquarters of BTI Financial Group in
Ellsworth, Maine. Renovations approximating $850,000
are budgeted during 2000 for completion of this project
by the fall of 2000. The bank experiences a small
seasonal swing in its deposit base and between December
31, 1999 and March 31, 2000 deposits declined by $11
million. Increased advances from the Federal Home Loan
Bank and wholesale repurchase agreements funded the
growth in loans and investments, as well as the decline
in deposits.
The balance between consumer and commercial loans
remains similar to the last several years' relationship
with consumer loans approximating 56% of the portfolio.
While local competition remains strong, Bar Harbor
Banking and Trust Company's strength lies in the
relationships built with its customers and the ability
to offer prompt service in response to their needs.
Unrealized losses in the Available for Sale
portfolio as represented on the Bank's statement of
financial condition decreased by $20,000 over the past
three months, ending the quarter at $995,000. The
Bank's posture traditionally has been to purchase
securities with the intent to hold them to maturity.
Management has no specific plans to sell these
securities, and accordingly does not presently expect
significant losses will be realized.
The Bank does not hold any securities (such as
structured debt tied to multiple indices, interest only
or principal only securities) that may experience
considerable change in their market values by a greater
degree than traditional debt instruments.
Liquidity is measured by the Bank's ability to
meet cash needs at a reasonable cost or minimum loss to
the Bank. Liquidity management involves the ability to
meet cash flow requirements of its customers, which may
come from depositors withdrawing funds or borrowers
requiring funds to meet credit needs. Without adequate
liquidity management, the Bank would not be able to
meet the needs of the individuals and communities it
serves. The Bank utilizes a Basic Surplus/Deficit
model to measure its liquidity over a 30-day and a 90
day time horizon. The relationship between liquid
assets and short-term liabilities that are vulnerable
to non-replacement within a 30-day period are examined.
The Bank's policy is to maintain its liquidity position
at a minimum of 5% of total assets. The Bank has
maintained liquidity in its balance sheet in excess of
10% for the past twelve months. Liquidity as measured
by the Basic Surplus/Deficit model was 11.5% as of
March 31, 2000 for the 30-day horizon and 10.1% for the
90-day horizon.
Rates, volumes and the mix of earning assets and
interest bearing liabilities affect interest income.
For the first three months of 2000, net interest income
increased by $295,000, while the increase between 1999
and 1998 was $113,000. The increase was a factor of
the growth in the statement of financial condition,
although competition for loans requires narrowing
margins, and the increased income from investments
yields less than loan income. Funding costs have
increased more rapidly than the asset yields. While
the Bank has added fixed rate and, traditionally,
longer term assets to its statement of financial
condition, it has funded those assets with shorter term
liabilities.
Interest earned on loans increased by more than
$648,000 due to increases in loan volumes but was
reduced by $90,000 due to decreases in interest rates
charged on portions of the loan portfolio. Overall,
the loan portfolio yield dropped by 21 basis points,
although national interest rates were increasing. This
is a factor of adding fixed rate mortgages to the
portfolio and timing on the repricing of variable
loans. The drop in yield during the past twelve months
compares with a drop of 64 basis points between 1998
and 1999.
Interest on investments increased due to $30
million increase in volumes. This increase in volume
brought in an additional $478,000 in interest earned,
plus changes in interest rates increased interest
earned by $101,000. The entire portfolio earned 6.56%
as of March 31, 2000, which is 13 basis points higher
than it was a year ago. The investment yields for 1999
were 40 basis points lower than 1998.
Interest bearing liabilities increased by
approximately $62 million during the past twelve months
and interest expense for the three months ended March
31, 2000 increased by $843,000 compared to the same
period in 1999. Interest expense increased by $763,000
based on increased volume and by $80,000 based on
interest rates. The overall cost of interest bearing
liabilities went up 31 basis points between the
quarters ended March 31, 2000 and March 31, 1999, and
combined with the drop in the yields on the assets has
enhanced the margin squeeze. As a comparison, 1999's
overall interest bearing liability costs were 13 basis
points lower than for the comparable period in 1998.
The Bank's position with regard to interest rate
sensitivity consists of the matching of its assets and
liabilities for repricing within a year. The exposure
is to rising rates out beyond a year as the Bank has
almost $36 million invested in callable securities with
final maturities of ten years or less funded by short-
term liabilities. The exposure lies with the
possibility that these securities would not be called.
The gap analysis in today's interest rate environment
shows the Bank with approximately $48 million more
liabilities than assets that would be repriceable
within twelve months. Assuming rates were to drop by
200 basis points and utilizing a steepening yield curve
shift in rates, simulations based on a static balance
sheet indicate that the Bank's net interest income
could rise by approximately $780,000 during the first
year of the drop, while increasing its income in the
second year by $1,557,000. If rates were to rise by
200 basis points, interest income would remain flat in
the first year, but during the second year would
decrease by $91,000.
The Bank's reserve for possible loan losses as of
March 31, 2000 is 1.57% of total loans compared to
1.64% at December 31, 1999. The reduction in the
reserve ratio is attributed to improvement in both loan
quality and actual loan loss experience. Management
reviews the allocation to the reserve on a quarterly
basis and funds the reserve as deemed necessary. This
review includes a provision for specific accounts and
impaired loans, provisions due to historic loan loss
experience by loan type and reserves reflecting
industry and credit concentrations, current local and
national economic conditions, and underwriting
standards. First quarter 2000 net charge offs totaled
$280,000 compared to $85,000 during the first quarter
of 1999. First quarter charge offs as of March 31,
2000 included one large charge off. With loan
delinquencies of 90 days past due or more at less than
1% of total loans and building the credit
administration team within the Bank, net charge offs
are expected to approximate $600,000 by year-end. The
amounts represented below are the total dollars past
due for the first three months of each year listed.
<TABLE>
<CAPTION>
Category 2000 1999 1998
<S>
<C> <C> <C>
90-days past due
and still accruing $ 339 $1,579 $1,103
Non-Accruing 2,081 1,664 3,439
$2,420 $3,243 $4,542
Gross Loans $265,241 $236,307 $216,114
Percentage of gross loans 0.91% 1.37%
2.10%
</TABLE>
Non-interest income for the quarter ended March
31, 2000 totaled $1.3 million and was $163,000 more
than the first quarter in 1999. BTI Financial Group's
gross income of $770,400 surpassed the Trust
Department's income for the quarter ended March 31,
1999 by $87,000. Additionally, service charges on the
bank's deposit accounts exceeded last year's first
quarter income by $81,800, and represents increased
charges implemented in the third quarter of 1999. In
1999, other income was $60,000 ahead of 1998's first
quarter income. No single major category in other
income experienced substantial growth from 1998 to
1999.
Non-interest expenses for the first quarter
totaled $3.8 million and exceeded first quarter 1999's
non-interest expenses by $600,000. Salaries and
benefits make up $417,000 of the increase over 1999.
The formation of BTI Financial Group, and the
subsequent purchase of Dirigo Investments, Inc.,
contribute to the increase in salary and benefits as
positions have been added as the three subsidiary
companies have been formed.
Additionally, the focus on the banking software
conversion to Information Technology, Inc. (ITI) took
priority in human resources' commitment, including
additional temporary staffing and overtime. The ITI
conversion was successfully completed in April 2000,
and while commitments of time for clean up and
completion of maintenance issues will continue, the
majority of the additional time for conversion and
training is now behind the Bank. Direct non-recurring
conversion expenses for training, consultants and sale
of equipment were projected in excess of $300,000, but
are expected to finalize much lower than that amount.
Sale of equipment used for item capture in conjunction
with the previous banking solution, transpired early in
the second quarter with minimal loss to the Bank.
Additional costs will be recognized in the second
quarter of 2000.
Other expenses, exclusive of salaries and benefits
are approximately $132,000 more in the first quarter of
2000 as compared to 1999. Start up costs incurred
during the first quarter of 2000 for BTI Financial
Group, totaling approximately $70,000, represent a
portion of this increase. Additionally, the accrual
for a possible loss from a VISA merchant totaling
$53,000 is included in other expenses for the quarter
ended March 31, 2000.
The Company has not incurred any additional costs
or any losses due to the Year 2000 rollover. All
internal and third party provided software has been
performing satisfactorily since January 1, 2000. The
Company continues to monitor all systems for any
potential Year 2000 issues.
The Company's capital to asset ratio is 10.5% and
the Bank far exceeds the required risk based capital
ratio of 8% with its Tier 1 ratio of 14.3% and total
capital ratio of 15.6% or additional capital of $23
million. These ratios compare to March 31, 1999 when
the capital to average asset ratio was 11.8%, Tier 1
and total capital ratios compared to risk weighted
assets were 19.0% and 20.4% respectively.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto
duly authorized.
BAR HARBOR
BANKSHARES
/s/ Dean S. Read
Date: May 15, 2000 Dean S. Read
Chief Executive
Officer
/s/ Virginia M.
Vendrell
Date: May 15, 2000 Virginia M. Vendrell
Treasurer and
Chief Financial
Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 10,611
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 37,013
<INVESTMENTS-CARRYING> 128,933
<INVESTMENTS-MARKET> 125,098
<LOANS> 265,241
<ALLOWANCE> (4,176)
<TOTAL-ASSETS> 467,901
<DEPOSITS> 270,568
<SHORT-TERM> 61,749
<LIABILITIES-OTHER> 4,534
<LONG-TERM> 81,819
0
0
<COMMON> 7,287
<OTHER-SE> 41,944
<TOTAL-LIABILITIES-AND-EQUITY> 467,901
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<INTEREST-TOTAL> 8,544
<INTEREST-DEPOSIT> 2,140
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<INCOME-PRE-EXTRAORDINARY> 1,921
<EXTRAORDINARY> 0
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<EPS-BASIC> .38
<EPS-DILUTED> .38
<YIELD-ACTUAL> 7.79
<LOANS-NON> 2,081
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<ALLOWANCE-CLOSE> 4,176
<ALLOWANCE-DOMESTIC> 4,176
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 1,274
</TABLE>
