8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

 FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) December 20, 2006

Bar Harbor Bankshares
(Exact Name of Registrant as Specified in Its Charter)

Maine
(State or Other Jurisdiction of Incorporation)

841105-D                            01-0393663
(Commission File Number) (IRS Employer Identification No.)

P.O. Box 400
Main Street, Bar Harbor, ME       04609-0400
(Address of Principal Executive Offices) (Zip Code)

(207) 288-3314
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

_____  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

_____  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

_____  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

_____Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 ITEM 8.01 OTHER EVENTS

On December 20, 2006, Bar Harbor Bankshares (the "Company"), issued a press release announcing its Board of Directors has authorized the continuation of the Company’s existing stock repurchase plan through December 31, 2007. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

             (c) Exhibits.

                        99.1   Press release dated December 20, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: December 20, 2006

BAR HARBOR BANKSHARES

 /s/ Gerald Shencavitz

Chief Financial Officer

EX-99

Exhibit 99.1

PRESS RELEASE

For more information contact:                             FOR IMMEDIATE RELEASE
Joseph M. Murphy
President and CEO
(207) 288-3314

BAR HARBOR BANKSHARES CONTINUES ITS STOCK REPURCHASE PLAN

BAR HARBOR, Maine (December 20, 2006) – Bar Harbor Bankshares (AMEX: BHB), today announced that its Board of Directors has authorized the continuation of the Company’s existing stock repurchase plan through December 31, 2007.

In March 2004, the Company announced its second stock repurchase plan. The Board of Directors authorized open market and privately negotiated purchases of up to 10% of the Company’s outstanding shares of common stock, or 310,000 shares. Purchases began on March 4, 2004 and were to continue through December 31, 2005. In December 2005 the Company announced the continuation of the plan through December 31, 2006. Depending on market conditions and other factors, these purchases could be commenced or suspended at any time, or from time-to-time, without prior notice. As of December 20, 2006, the Company had repurchased 143,722 shares of stock under the plan, or 46.4% of the total authorized.

Bar Harbor Bankshares is the parent company of its wholly owned subsidiary, Bar Harbor Bank & Trust. Bar Harbor Bank & Trust, founded in 1887, provides full service community banking with eleven branch office locations serving Downeast and Midcoast Maine.

**************