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Bar Harbor Bankshares Reports Second Quarter Earnings

August 5, 2015

Bar Harbor Bankshares (NYSE MKT: BHB) (the “Company”) the parent company of Bar Harbor Bank & Trust (the “Bank”), today announced net income of $3.9 million for the second quarter of 2015, representing an increase of $16 thousand or 0.4%, compared with the second quarter of 2014. The Company also reported diluted earnings per share of $0.64 for the quarter, compared with $0.65 for the second quarter of 2014. The Company’s annualized return on average shareholders’ equity amounted to 10.31% for the quarter, compared with 11.53% in the second quarter of 2014. The Company’s second quarter return on average assets amounted to 1.01%, compared with 1.09% in the second quarter of 2014.

For the six months ended June 30, 2015, the Company reported record net income of $7.8 million, representing an increase of $110 thousand, or 1.4%, compared with the same period in 2014. The Company also reported diluted earnings per share of $1.28, unchanged compared with the same period in 2014. The Company’s annualized return on average shareholders’ equity amounted to 10.44% for the six months ended June 30, 2015, compared with 11.79% for the same period in 2014. The Company’s annualized return on average assets amounted to 1.04%, compared with 1.10% for the six months ended June 30, 2014.

In making the announcement, the Company’s President and Chief Executive Officer, Curtis C. Simard, commented, “The first half of 2015 featured record earnings and strong commercial loan growth, with that portfolio up over $54 million, or 12%, compared with year end 2014. Our ability to grow earning assets was instrumental in offsetting the pressure on our net interest margin, as interest rates continued to remain near historical lows. With our unwavering commitment to credit quality, this growth was across industries with well known and respected borrowers throughout the State.”

Mr. Simard continued, “The credit stability of our loan portfolio was further evident during the first half of the year, highlighted by a $3.4 million or 28% decline in non-performing loans compared with year end 2014. Reflecting our continued focus on core earnings, we are pleased to deliver a first half efficiency ratio of 56.0% while continuing to invest in our systems, products, processes and people.”

In concluding, Mr. Simard added, “There continues to be aggressive competition for quality loans and core deposits. We are nonetheless staying true to fundamentals and our brand promise. The result has been continued measured growth, pricing and expense discipline, and solid performance for our shareholders including our recently announced seventeenth consecutive quarterly cash dividend increase.”