Bar Harbor Bankshares announces earnings

BAR HARBOR – Bar Harbor Bankshares, parent company of the wholly owned subsidiaries of Bar Harbor Banking and Trust Company and BTI Financial Group, announced earnings of $377,000 or 12 cents per share of capital stock for the quarter which ended June 30, and $1,467,000 or 45 cents per share of capital stock for the first six months of the year.

Second quarter net income reflects an additional provision of $1 million, or $660,000 after taxes, that the bank added to its allowance for possible loan losses. This provision continues the reserve at a level which is anticipated to be adequate to absorb possible future loan losses.

Non-interest income increased $233,000 or 16 percent during the second quarter of 2001 compared with the previous year, and $732,000 or 26 percent for the first six months of 2001 compared with the same period in the prior year. These increases are principally attributed to fee enhancements implemented by the bank in late 2000, improved management of customer charges, and increases in BTI related revenues. Non-interest expenses remained relatively flat with a modest 2.9 percent increase in the first six months of 2001 as compared with the same period last year.

Loan growth continued with a $6.6 million increase between periods while the total assets of the company decreased $32 million to $451.2 million, principally due to early pay downs in the investment portfolio and a decrease in the borrowings to support these investments. Total deposits increased by $4 million, or 1.5 percent. Capital remains strong with an 11.3 percent ratio of capital to total assets.