-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RXnmcOT3L7IC1kjQIZAAl2lU2RAOw6vxODvo02g7r9XV5yP1eNTl5xi1TsqZu1BO +Gyl4ejJ/+ixZfg3nOsAJw== 0000743367-00-000005.txt : 20000517 0000743367-00-000005.hdr.sgml : 20000517 ACCESSION NUMBER: 0000743367-00-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BAR HARBOR BANKSHARES CENTRAL INDEX KEY: 0000743367 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 010393663 STATE OF INCORPORATION: ME FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13349 FILM NUMBER: 636934 BUSINESS ADDRESS: STREET 1: 82 MAIN ST STREET 2: P O BOX 400 CITY: BAR HARBOR STATE: ME ZIP: 04609-0400 BUSINESS PHONE: 2072883314 MAIL ADDRESS: STREET 1: 82 MAIN ST STREET 2: P O BOX 400 CITY: BAR HARBOR STATE: ME ZIP: 04609-0400 10-Q 1 10Q FORM 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
Financial Information Page 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
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)
March 31, December 31, 2000 1999 (Unaudited) 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
BAR HARBOR BANKSHARES AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (in thousands, except number of shares and per share data) (UNAUDITED)
THREE MONTHS ENDED 3/31/00 3/31/99 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
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)
NET UNREALIZED DEPRECIATION T O T A L CAPITAL RETAINED ON SECURITIES TREASURY STOCKHOLDERS' STOCK SURPLUS EARNINGS AVAILABLE STOCK EQUITY FOR SALE 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
BAR HARBOR BANKSHARES AND SUBSIDIARIES COLSOLIDATED STATEMENT OF CASH FLOWS (in thousands)
MARCH 31, MARCH 31, 2000 1999 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
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.
Three Months Ended Community Financial Consolidated March 31, 2000 Banking Services Other Totals 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
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:
VOLUME RATE NET 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
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:
VOLUM RATE NET E 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
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.
Category 2000 1999 1998 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%
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 EX-27 2
9 3-MOS DEC-31-2000 MAR-31-2000 10,611 0 0 0 37,013 128,933 125,098 265,241 (4,176) 467,901 270,568 61,749 4,534 81,819 0 0 7,287 41,944 467,901 5,700 2,829 15 8,544 2,140 4,041 4,503 163 0 3,768 1,921 1,921 0 0 1,286 .38 .38 7.79 2,081 339 0 0 4,293 301 21 4,176 4,176 0 1,274
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