Balancing Risk & Reward
2009 Summary Annual Report
Founded in 1887, Bar Harbor Bank & Trust is a community bank with 12 locations along the coast of Maine,
and offers a full range of financial products and services for families, businesses, municipalities and non-profit
organizations. Bar Harbor Trust Services, a subsidiary of the Bank, and Bar Harbor Financial Services, a
branch of Infinex Investments, Inc., provide retirement planning, investment management, brokerage and insur-
ance services to meet the needs of a wide variety of individual, non-profit and municipal clients. Bar Harbor
Bankshares (“BHB” or the “Company”) is the parent company of Bar Harbor Bank & Trust (the “Bank”).
Year-Over-Year Financial Highlights
(dollars in thousands)
Net Income Available to Common Shareholders
Diluted Earnings Per Share
Tax-equivalent Net Interest Income
10000
8000
6000
4000
2000
0
4
3
2
1
0
15
12
9
6
3
0
Non-interest Income
Non-interest Expense
Total Assets
Total Securities
Total Loans
Total Deposits
Total Shareholders’ Equity
10,000
$9,316
8,000
6,000
4,000
2,000
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Net Income Available
to Common Shareholders
($ in thousands)
2008
% Change
2009
9,316
3.12
$ 7,731
$
2.57
34,786
$ 28,090
6,022
$ 6,432
21,754
$ 20,513
$
$
$
$
$
20.5%
21.4%
23.8%
– 6.4%
6.0%
10.3%
19.5%
5.7%
10.9%
73.4%
$ 1,072,381
$ 972,288
$ 347,026
$ 290,502
$ 669,492
$ 633,603
$ 641,173
$ 578,193
$ 113,514
$ 65,445
4.00
3.00
2.00
1.00
0
$3.12
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Diluted Earnings
per Share
15
12
9
6
3
0
11.65%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Return on
Average Equity
Dear fellow shareholders: The past year was an extraordinary one for Bar Harbor
Bankshares. We confronted a series of unusual and wellpublicized events within the national
economy and within our industry that challenged but did not change our traditional business
values. As bankers, we manage financial risk; this is our fundamental role in our local economy.
If we do it well, the Bank and its shareholders are rewarded appropriately.
In 2009, we faced the most dramatic arena for balancing
million at year end reflecting continued strong growth in
risk and reward we have seen in decades. We believe we
business lending, thanks to our careful cultivation of this
have maintained that balance in the best interest of our
important line of business over the past several years.
customers, our shareholders, our employees and the
Despite the challenges in the broader economy, several
communities we are privileged to serve. As you review
of our strongest business customers looked to us for
our results, we sincerely hope you will agree.
financing as they took advantage of business expansion
Following record annual earnings in 2008, we are pleased
to report another year of record performance in 2009.
Despite the continuing national recession and struggles
within various components of the Maine economy, our
conservative business plan and attention to community
banking fundamentals have served us well. Net income
available to common shareholders was $9.3 million, up
$1.6 million or 20.5% compared with 2008, and earn
ings per diluted common share were up $0.55 or 21.4%.
Reflecting both substantial improvements in top line
revenue as well as continuing control over noninterest
expenses, our efficiency ratio dropped to 53.2%, which is
the Company’s best performance in well over a decade,
despite the need to accommodate special deposit insur
opportunities and we were delighted to accom modate
them. Although we often hear the national outcry that
“banks are unwilling to lend,” BHB has never faltered in
its commitment to support the local economy through
sound business, municipal and residential lending. Because
our underwriting principles were always conservative,
we did not need to make sudden adjustments in our
standards when the economy soured. Over the past
several years, we have spent a great deal of energy
developing a teambased, collaborative credit culture.
We believe customers appreciate our responsive style.
Our ability to support loan demand during these unset
tled times has reinforced our reputation among prospec
tive borrowers as a lender of choice.
ance assessments from the FDIC.
While the Bank’s residential mortgage loan portfolio
During 2009, the Company’s total assets grew 10.3% and
ended the year at $1.1 billion. Total loans stood at $669
declined in 2009, demand for residential lending was
surprisingly strong, as many households looked to
refinance and consolidate debt to take advantage of
2009 Summary Annual Report 01
histor ically low borrowing rates, tax incentive programs
During the past two years, bank investors and regulators
and more affordable home prices. To reduce interest rate
have placed intensified attention on the adequacy of bank
risk, $30 million of lowfixedrate residential mortgages
capital. Capital fuels growth, facilitates earnings and pro
originated in 2009 were sold in the secondary market,
vides the financial capacity to absorb potential credit or
with customer servicing retained by the Bank, and were
investment losses. While official measurements of capital
therefore not reflected in outstanding loan balances at
adequacy did not change, there were indications in the
year end.
Along with strong growth in our loan portfolio, we are
pleased to report that our asset quality indicators have
latter half of 2008 that regulatory practice would increase
capital adequacy expectations in response to the failure
of major banks and deteriorating economic conditions.
remained relatively strong. As of the end of 2009, our
In the fall of 2008, under the general umbrella of the
nonperforming loans remained manageable at 1.37%
Emergency Economic Stabilization Act, the United States
of total loans. Net chargeoffs amounted to a very low
Treasury promoted its voluntary Capital Purchase Pro
0.13% of total loans, and were actually down from 0.21%
gram (CPP) to healthy banks, large and small, in which it
of total loans in 2008. Over the past two years, loan fore
made capital investments in banks through the purchase
closures have increased dramatically on the national level.
of preferred stock. The purpose of this new capital was
While we have also seen an increase in foreclosure activ
to provide participating banks with the capacity and the
ity within our business and residential portfolios here in
confidence to increase lending in their local markets and
Maine, the absolute number of cases remains quite small
to stabilize the economy. Given the extraordinary eco
and we have worked closely with the affected borrowers
nomic uncertainty at that time, BHB determined that the
to prevent actual foreclosures whenever possible.
most prudent course of action was to participate in the
The Bank’s taxequivalent net interest income increased
$6.7 million or 23.8% in 2009 and continued to be the
principal source of earnings for the Company. During
CPP program. BHB issued $18.75 million of preferred
stock and common stock warrants to the United States
Treasury in January of 2009.
2009, our net interest margin improved 27 basis points
During 2009, BHB used the lending and investment
to 3.40% principally as a result of lower borrowing rates
capacity afforded by this capital inflow to increase earning
and careful attention to deposit and loan pricing. We
assets by $100 million, while acquiring valuable capital
believe we have benefited from thoughtful positioning of
reserve strength should the national recession deepen
the balance sheet over the past few years to mitigate
and the local economy falter. By the fourth quarter of
interest rate risk and insulate the Company’s earnings
2009, the local economy had performed relatively well
capacity from unavoidable swings in interest rates.
and it appeared the risk of a long and deep economic
Our financial services units, Bar Harbor Trust Services
and Bar Harbor Financial Services*, continue to build their
reputations as innovative and thoughtful financial advisors
to a wide variety of individual and institutional clients. The
financial markets of the past few years have bred a great
deal of uncertainty in the minds of individual investors
trough had mitigated. BHB had itself performed well on
the strength of robust earning asset growth, an improved
net interest margin and a loan portfolio that demonstrated
strong asset quality. On the strength of this performance,
BHB concluded that the opportunity was right for raising
capital in the form of common stock.
and volunteer fiduciaries; sound guidance has never
In December 2009, the Company completed a public
been more valued than now. Despite significant volatility
offering of 800,000 shares of its common stock with an
in the market value of assets under management during
enthusiastic market response from both institutional and
the past year, revenues for these two units combined
retail investors. The total net proceeds from the offerings,
were $2.4 million for 2009, down less than 3% compared
including the underwriter’s exercise of its overallotment
with 2008.
option in January 2010, amounted to $22.4 million. We
*Bar Harbor Financial Services is a branch of Infinex Investments, Inc., an independent registered broker-dealer which is not affiliated with the Company or the Bank.
02 Bar Harbor Bankshares
1200
1000
800
600
400
200
0
400
300
200
100
0
40000
35000
30000
25000
20000
15000
10000
5000
0
800
600
400
200
0
800
600
400
200
0
8000
6000
4000
2000
0
1.5
1.2
0.9
0.6
0.3
0.0
10000
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
0.25
0.20
0.15
0.10
0.05
0.00
4
3
2
1
0
80
60
40
20
0
1,200
1,000
800
600
400
200
0
400
300
200
100
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
800
600
400
200
0
800
600
400
200
0
$1,072
$669
1.37%
0.13%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Assets
($ in millions)
Loans
($ in millions)
Non-Performing
Loans to Total Loans
Net Charge-Offs
to Average Loans
$347
$641
10,000
$9,316
4.00
$3.12
1.5
1.2
0.9
0.6
0.3
0
8,000
6,000
4,000
2,000
0
.25
.20
.15
.10
.05
0
3.00
2.00
1.00
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Securities
($ in millions)
Deposits
($ in millions)
Net Income Available
to Common Shareholders
($ in thousands)
Diluted Earnings
per Share
8,000
$34,786
25,000
$21,754
$6,022
20,000
6,000
Reflecting both substantial improvements in top line revenue as well as continu-
ing control over non-interest expenses, our efficiency ratio dropped to 53.2%
in 2009, the Company’s best performance in well over a decade. This year’s
15,000
4,000
10,000
record-low number stacks up against that of top performing banks and creates
2,000
a new benchmark against which to measure success.
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
Tax-Equivalent
Net Interest Income
($ in thousands)
Non-Interest Income
($ in thousands)
5,000
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Non-Interest Expense
($ in thousands)
80
60
40
20
0
53.2%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Efficiency Ratio
believe the positive demand for our stock demonstrates
very hospitable environment for a community bank and
not only the strength of BHB’s past performance, but
we are fortunate to call it home.
also the confidence of investors in our prospects for
future growth and success.
We are grateful to all our team members for their out
standing work this year. We especially acknowledge the
On February 24, 2010, the Company used a portion of
outstanding contributions of Thomas Colwell, who served
the proceeds from the stock offering to redeem all 18,751
as Bar Harbor Bankshares Board Chairman from May
shares of preferred stock it sold to the United States
2004 until May 2009. During this period, under Tom’s
Treasury, thus ending its participation in the CPP. We
dedicated leadership, the Company enjoyed splendid
believe our participation in the Capital Purchase Program
growth and remarkable performance improvements. We
enabled the Company to maintain a very strong capital
are delighted that Tom is now continuing his exemplary
position while supporting our local economy during
service as Vice Chairman of the Board.
extremely uncertain times.
On behalf of the Board of Directors and all Bar Harbor
While the Company benefited from the strength of an
Bankshares team members, we are thankful for the loyalty
additional $24 million in average shareholders’ equity in
and support of our shareholders. We are dedicated to
2009, we were able to hold our return on average equity
earning your continued confidence in the years ahead.
at 11.65% down only 22 basis points from 2008.
Sincerely,
While we believe the decisions made by the board and
management have served the Company well, we also
acknowledge that our sustained overall success is due
in a major way to the resilience of the Maine coastal
economy. In addition to fishing, boat building, biological
research and blueberry farming, the Maine coast is driven
by tourism, which brings millions of visitors each year
to our villages and islands, Acadia National Park, and a
rugged coastline of uncommon beauty. Despite spikes
in fuel prices and national economic disruptions, the
local tourism industry has performed with remarkable
stability. Over time, coastal Maine has proven to be a
Joseph M. Murphy
President and Chief Executive Officer
Peter Dodge
Chairman
2009 Summary Annual Report 03
Support in a time of need
Nautilus Marine Fabrication’s success is built on quality and
diversification. Offering custom marine hardware manufacture,
abrasive water jet material cutting, boat propeller repair, new
propeller sales, and nontoxic hydraulic fluid sales, Nautilus
caters to highend yacht makers, whose pleasure vessels retail
for around $500,000, as well as local fishermen who need
precision fittings and propeller repairs.
Owners Jim Patten and Stephen Brenton, both with nearly
25 years experience, have lived their dream of running a suc
cessful business since purchasing Nautilus from their former
employer in 1998. But Brenton and Patten experienced a
nightmare the evening of May 14, 2009 when their facility was
destroyed by fire. With the help of friends, neighbors, other
local businesses, and their Bank, they were able to keep doing
business and quickly rebuild. Vicki Hall, BHBT Vice President
of Business Banking, offered some creative financing solutions
to help get them back on their feet as quickly as possible.
04 Bar Harbor Bankshares
“
Vicki arrived on site the day of the fire, when the fire
trucks were still there. The next day, Joe Murphy came
by to offer the Bank’s assistance. Our reconstruction
took longer than expected but BHBT saw us through with
some creative solutions. That’s a really good feeling…
knowing your Bank supports you during a tough time.
“
Jim Patten
Co-owner—Nautilus Marine
Meeting the needs and expectations
of those we serve every day.
How, during such turbulent times for the economy
a 2009 independent survey proved this to be true.
and the banking industry, were we able to set earn
Over 95% of customers surveyed are happy with
ings records and achieve our best performance year
us and are unlikely to switch banks in the next 12 to
ever? We’ve concluded that our success is based
18 months. Even more gratifying, that same number
on principles and practices we put in place years
(95%) would recommend us to friends or family. We
ago. While many financial institutions diversified into
believe this loyalty is achieved every day, one cus
risky products and ventures for shortterm gain, we
tomer at a time, one experience at a time. Every
remained committed to our traditional products and
interaction counts.
conservative credit management practices. Through
a consistently disciplined and prudent culture, we
have built a wall against adversity while preserving
the warm facetoface experience our coastal Maine
customers and communities deserve and expect.
Allow us to share some details.
Creative Solutions
Engaged Employees
In 2009, we were also delighted with the results
of a separate independent survey of our employees
showing 95% of them enjoy the work they do, 94%
are proud to tell people they work for Bar Harbor
Bank & Trust, and 93% believe the Bank has a
strong reputation in the community. Because we
Our cost control and credit quality management
strive to be the best place to work AND the best
practices are vital to our financial success. But
place to bank, we are pleased and humbled by
our culture is not just about written policies—it is
these results. Our customers’ and employees’ loy
about applying those policies to each customer’s
alty, support, and recommendations are indeed
unique business and credit needs. The feature
what make our ongoing success possible.
stories included here demonstrate our willingness
and ability to work creatively with customers when
conditions warrant. This kind of disciplined flexibility
contributes to our bestinclass asset quality numbers,
exceptional survey results, and the kind of returns
that we are proud to present to you in this report.
Loyal Customers
Improved Branches
The past year has been a busy one for our facilities
department. Ontime and onbudget renovations to
our Blue Hill, Ellsworth, Bar Harbor, and Southwest
Harbor offices provide more convenient parking,
better drivethrough and ATM access, and more
attractive, efficient facilities for both customers and
Our goal is to deliver exceptional customer care
employees. These updates, completed with a focus
every day. While we were internally confident that our
on cost control and longterm payback, will protect
customer service and satisfaction levels were high,
our investment in infrastructure for decades to come.
2009 Summary Annual Report 05
Convenient Delivery Channels
As technology evolves, so does customer expectation.
With that in mind, we’ve added more efficient ways for
customers to do business with us. Through Remote
Deposit Capture, our business customers can deposit
the day’s receipts into a BHBT account without ever leav
ing the workplace. Customers will soon be able to open
deposit accounts online from their home computer. Of
course, warm persontoperson interaction will always be
available at Bar Harbor Bankshares. Those who prefer vis
iting a branch to open an account now enjoy a streamlined
process thanks to our new deposit automation software.
Financial Education Leadership
Because recent economic times highlighted the need for
better financial education, our marketing focus for 2009
was “information about money.” Media campaigns fea
tured President Joe Murphy voicing tips about health
savings accounts, FDIC insurance, credit reports, and
children’s savings habits. Our participation in numerous
community education events for both adults and youth
broadened the reach. We believe there’s no better mes
sage during unsettled times. Information is power and
with it comes relief.
Celebration
What exciting times for shareholders, customers, and
employees of Bar Harbor Bankshares! By balancing risk
and reward…and sticking to the basics of community
banking…we are able to celebrate 2009 as our best year
ever and have positioned your Company for a bright future.
Sarah Robinson, VPBHTS with Doug Radziewicz
The SPCA of Hancock County, a local animal welfare organization
and shelter located in Trenton, Maine, recently completed a $2 million
capital campaign to expand its facility.
06 Bar Harbor Bankshares
Managing and
protecting assets
Nonprofit organizations, vital to Maine’s
economy, provide services and jobs that
make our communities better places to live
and work. Regrettably, many local nonprofits,
ranging from very small to world renowned,
have suffered financial losses during the
recent economic downturn. Increasingly the
nonprofit sector is turning to Bar Harbor
Trust Services for the guidance and skill
needed to manage and protect their assets.
Nonprofit boards and managers, as stewards
of other people’s money, have a responsibility
to manage funds entrusted to them through
charitable gifts. We help them make the most
of those funds using all the tools in our diverse
set of products and services—endowment
management, charitable gift annuities, chari
table remainder trusts, and more.
A client of Bar Harbor Trust Services (BHTS)
for years, the SPCA of Hancock County had
split its endowment management between
two institutions. In 2009, after noticing the
portfolio managed by Bar Harbor Trust
Services had preserved considerably more
capital and minimized losses in comparison
to their other investment account, the SPCA
chose to consolidate all its funds with BHTS.
“
As a non-profit organization, the SPCA is
sustained by and operates with the trust and
support of the public through donations. Bar
Harbor Trust Services helped us preserve
the funds in our endowment during troubled
economic times. We appreciate how they
listen to us and manage our money for our
particular needs.
“
Doug Radziewicz
Executive Director—SPCA of Hancock County
2009 Summary Annual Report 07
Flexible credit capabilities for exceptional opportunities
Headquartered in eastern Maine, familyowned Lafayette Hotels with 27 properties including 21 in Maine, employs over
1,000 people. Danny and Carla Lafayette chose to partner with Bar Harbor Bank & Trust because, as Danny says, “They
have unbelievable knowledge of the state of Maine; they understand tourism and that it’s a driving force in Maine’s economy.
They want and appreciate our business and they offer good services and pricing. Best of all, I get a warm, fuzzy feeling
when I meet with Greg Dalton. I know he trusts me so I’m confident in moving forward with projects. The Bank has also
supported us in our efforts to promote human health in Maine.” Lafayette Hotels, committed to giving back to their com
munities, recently pledged $2 million to the worldclass Lafayette Family Cancer Center in Brewer, Maine.
The people at Bar Harbor Bank & Trust understand doing business in Maine; not just coastal markets, but Augusta,
Portland, and beyond. And they share our commitment to community. That’s important to us.
“
“
Danny Lafayette
Owner—Lafayette Hotels
Leita Zeugner, Danny & Carla Lafayette, and Greg Dalton at the Holiday Inn by the Bay, Portland.
08 Bar Harbor Bankshares
Leveraging loan programs
for small business
A television special about windjammers ignited a spark for Bob
and Dawn Tassi. In 1999, they left their jobs in Nashville and
moved to Maine to live a dream as owners of the Schooner
Timberwind. Built to carry pilots to and from ships entering or
leaving Portland harbor, this historic vessel launched from Union
Wharf in Portland in 1931 and has never left Maine waters since.
Today, the Timberwind’s multiday cruises offer guests a safe,
relaxing tour of Maine’s coastline. With economic shifts and
changes in tourism habits, it hasn’t always been smooth sail
ing, but the Tassi’s are determined to keep their dream afloat.
Last year, BHBT Regional Vice President in Rockland, Todd
Starbird, worked with Bob and Dawn to secure a Small Busi
ness Administration ARC loan. Creativity and determination, in
conjunction with a unique government program, helped the
Timberwind weather a rough patch.
“
Todd has been with us since the beginning, see-
ing us through both good and tough times. We feel
like he would do absolutely anything to help us.
“
Captain Bob and Dawn Tassi
The Schooner Timberwind, Rockport, Maine
2009 Summary Annual Report 09
5-Year Selected Financial Data
The following table sets forth selected financial data for the last five years.
(In thousands, except share data)
Balance Sheet Data:
Total assets
Total securities
Total loans
Allowance for loan losses
Total deposits
Total borrowings
Total shareholders’ equity
Average assets
Average shareholders’ equity
Results of Operations:
Interest and dividend income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Noninterest income
Noninterest expense
Income before income taxes
Income taxes
Net income
2009
2008
2007
2006
2005
$1,072,381
347,026
669,492
(7,814)
641,173
311,629
113,514
1,052,496
88,846
$
54,367
21,086
33,281
3,207
30,074
6,022
21,754
14,342
3,992
$ 972,288
290,502
633,603
(5,446)
578,193
323,903
65,445
926,357
65,139
$ 889,472
264,617
579,711
(4,743)
539,116
278,853
65,974
841,206
62,788
$ 824,877
213,252
555,099
(4,525)
496,319
260,712
61,051
788,557
57,579
$ 747,945
183,300
514,866
(4,647)
445,731
239,696
56,104
689,644
56,132
$ 53,594
26,403
27,191
1,995
25,196
$ 51,809
28,906
22,903
456
22,447
$ 46,145
24,449
21,696
131
21,565
$ 37,195
15,336
21,859
—
21,859
6,432
20,513
11,115
3,384
5,929
18,201
10,175
3,020
6,876
18,677
9,764
2,885
6,415
19,268
9,006
2,582
$
10,350
$ 7,731
$ 7,155
$ 6,879
$ 6,424
Preferred stock dividends and accretion
of discount
1,034
—
—
—
—
Net income available to common shareholders
$
9,316
$ 7,731
$ 7,155
$ 6,879
$ 6,424
Per Common Share Data:
Basic earnings per share
Diluted earnings per share
Cash dividends per share
Dividend payout ratio
Selected Financial Ratios:
Return on total average assets
Return on total average equity
Taxequivalent net interest margin
Capital Ratios:
Tier 1 leverage capital ratio
Tier 1 riskbased capital ratio
Total riskbased capital ratio
Asset Quality Ratios:
Net chargeoffs to average loans
Allowance for loan losses to total loans
Allowance for loan losses to nonperforming loans
Nonperforming loans to total loans
$
$
$
3.19
3.12
1.04
32.56%
0.98%
11.65%
3.40%
10.35%
15.34%
17.14%
0.13%
1.17%
85%
1.37%
$
$
$
2.63
2.57
1.02
38.84%
$
$
$
2.36
2.30
0.96
40.54%
$
$
$
2.26
2.20
0.91
40.12%
$
$
$
2.09
2.03
0.84
40.23%
0.83%
11.87%
3.13%
6.61%
9.95%
11.60%
0.21%
0.86%
124%
0.70%
0.85%
11.40%
2.91%
7.10%
10.76%
11.59%
0.04%
0.82%
230%
0.36%
0.87%
11.95%
2.98%
7.34%
10.82%
11.65%
0.05%
0.82%
721%
0.11%
0.93%
11.44%
3.44 %
7.52%
11.10%
12.05%
0.04%
0.90%
535%
0.17%
Refer to the Bar Harbor Bankshares 2009 Annual Report on Form 10-K for a complete set of consolidated audited financial statements.
10 Bar Harbor Bankshares
Consolidated Balance Sheets
(In thousands, except share data)
Assets
Cash and due from banks
Overnight interest bearing money market funds
Cash and cash equivalents
Securities available for sale, at fair value
Federal Home Loan Bank stock
Loans
Allowance for loan losses
Loans, net of allowance for loan losses
Premises and equipment, net
Goodwill
Bank owned life insurance
Other assets
TOTAL ASSETS
Liabilities
Deposits:
Demand and other noninterest bearing deposits
NOW accounts
Savings and money market deposits
Time deposits
Brokered time deposits
Total deposits
Shortterm borrowings
Longterm advances from Federal Home Loan Bank
Junior subordinated debentures
Other liabilities
TOTAL LIABILITIES
Shareholders’ equity
Capital stock, par value $2.00; authorized 10,000,000 shares; issued 4,443,614
shares at December 31, 2009 and 3,643,614 shares at December 31, 2008
Preferred stock, par value $0; authorized 1,000,000 shares; issued 18,751 shares
at December 31, 2009
Surplus
Retained earnings
Accumulated other comprehensive income (loss):
Prior service cost and unamortized net actuarial losses on employee benefit
plans, net of tax of ($56) and ($59), at December 31, 2009 and December 31,
2008, respectively
Net unrealized appreciation (depreciation) on securities available for sale, net of tax
of $1,074 and ($573), at December 31, 2009 and December 31, 2008, respectively
Portion of OTTI attributable to noncredit losses, net of tax of $931 and $0,
at December 31, 2009 and 2008, respectively
Net unrealized appreciation on derivative instruments, net of tax of $209 and
$382 at December 31, 2009 and December 31, 2008, respectively
Total accumulated other comprehensive income (loss)
Less: cost of 752,431 and 796,635 shares of treasury stock at December 31, 2009 and
December 31, 2008, respectively
TOTAL SHAREHOLDERS’ EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
Refer to the Bar Harbor Bankshares 2009 Annual Report on Form 10-K for a complete set of consolidated audited financial statements.
As of December 31st
2009
2008
$
9,831
1
$
9,041
1
9,832
347,026
16,068
669,492
(7,814)
661,678
11,927
3,158
6,846
15,846
9,042
290,502
14,796
633,603
(5,446)
628,157
10,854
3,158
6,573
9,206
$ 1,072,381
$ 972,288
$
57,743
74,538
171,791
245,111
91,990
641,173
91,893
214,736
5,000
6,065
958,867
8,887
18,358
24,360
75,001
(109)
2,084
(1,808)
406
573
$
57,954
67,747
163,780
200,206
88,506
578,193
121,672
197,231
5,000
4,747
906,843
7,287
—
4,903
67,908
(115)
(1,149)
—
740
(524)
(13,665)
113,514
(14,129)
65,445
$ 1,072,381
$ 972,288
2009 Summary Annual Report 11
Consolidated Statements of Income
(In thousands, except share data)
Interest and dividend income:
Interest and fees on loans
Interest on securities
Dividends on FHLB stock
Total interest and dividend income
Interest expense:
Deposits
Shortterm borrowings
Longterm debt
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Non-interest income:
Trust and other financial services
Service charges on deposit accounts
Mortgage banking activities
Credit and debit card service charges and fees
Net securities gains (losses)
Total otherthantemporary impairment (“OTTI”) losses
Noncredit portion of OTTI losses (before taxes) (1)
Net OTTI losses recognized in earnings
Other operating income
Total noninterest income
Non-interest expense:
Salaries and employee benefits
Postretirement plan settlement
Occupancy expense
Furniture and equipment expense
Credit and debit card expenses
FDIC insurance assessments
Other operating expense
Total noninterest expenses
Income before income taxes
Income taxes
Net income
Preferred stock dividends and accretion of discount
Net income available to common shareholders
Computation of Earnings Per Share:
Weighted average number of capital stock shares outstanding
Basic
Effect of dilutive employee stock options
Effect of dilutive warrants
Diluted
Per Common Share Data:
Basic Earnings Per Share
Diluted Earnings Per Share
Dividends per share
For the Year Ended December 31st
2009
2008
2007
$
34,797
19,570
—
54,367
10.724
602
9,760
21,086
33,281
3,207
30,074
2,444
1,412
490
779
1,521
(2,773)
1,319
(1,454)
830
6,022
11,594
—
1,329
1,378
332
1,420
5,701
21,754
14,342
3,992
$
37,653
15,415
526
53,594
14,976
1,421
10,006
26,403
27,191
1,995
25,196
2,513
1,594
15
2,044
(831)
—
—
—
1,097
6,432
10,827
—
1,387
1,539
1,416
134
5,210
20,513
11,115
3,384
$
37,923
13,073
813
51,809
16,222
5,967
6,717
28,906
22,903
456
22,447
2,335
1,624
20
2,100
(671)
—
—
—
521
5,929
9,368
(832)
1,275
1,718
1,469
59
5,144
18,201
10,175
3,020
$
10,350
$
7,731
$
7,155
1,034
9,316
$
—
—
$
7,731
$
7,155
2,916,643
57,182
9,604
2,983,429
2,943,694
63,555
—
3,037,074
75,662
—
3,007,249
3,112,736
$
$
$
3.19
3.12
1.040
$
$
$
2.63
2.57
1.020
$
$
$
2.36
2.30
0.955
(1) Included in other comprehensive income (loss), net of tax
Refer to the Bar Harbor Bankshares 2009 Annual Report on Form 10-K for a complete set of consolidated audited financial statements.
12 Bar Harbor Bankshares
2009 Financial Overview
BUSINESS STRATEGY
As a diversified financial services provider, Bar Harbor
Bankshares pursues a strategy of achieving longterm
sustainable growth, profitability, and shareholder value,
without sacrificing its soundness. The Company works
toward achieving this goal by focusing on increasing its
loan and deposit market share in the coastal communities
of Maine. The Company believes one of its more unique
strengths is an understanding of the financial needs of
0.25
coastal communities and the businesses vital to Maine’s
coastal economy, namely: tourism, hospitality, retail estab
0.20
lishments, restaurants, seasonal lodging and campgrounds,
fishing, lobstering, boat building, and marine services.
0.15
The Company’s key strategic focus is vigorous financial
stewardship, deploying investor capital safely yet efficiently
0.10
for the best possible returns. The Company strives to pro
vide unmatched service to its customers, while maintaining
0.05
strong asset quality and a focus toward improving operating
efficiencies. In managing its earning asset portfolios, the
0.00
Company seeks to utilize funding and capital resources
within welldefined credit, investment, interestrate and
liquidity guidelines. In managing its balance sheet the
Company seeks to preserve the sensitivity of net interest
income to changes in interest rates, and to enhance profit
ability through strategies that promise sufficient reward for
understood and controlled risk. The Company is deliberate
in its efforts to maintain adequate liquidity under prevailing
4
and expected conditions, and strives to maintain a balanced
and appropriate mix of loans, securities, core deposits, and
3
borrowed funds.
FINANCIAL CONDITION
2
Assets: The Company’s total assets increased $100.1 million
or 10.3% during 2009, ending the year at $1.1 billion. This
1
increase of $47.5 million or 14.8%. Taxexempt loans to
municipalities were also up over yearend 2008, posting an
increase of $8.8 million, or 163.9%. Consumer loans, which
principally consist of residential real estate mortgage loans,
declined $20.1 million or 6.6% compared with yearend
2008, largely reflecting principal paydowns from the Bank’s
$225.8 million residential mortgage loan portfolio.
1,200
1,000
800
600
400
200
0
$1,072
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
800
600
400
200
0
$669
1.37%
0.13%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Assets
($ in millions)
Loans
($ in millions)
Non-Performing
Loans to Total Loans
Net Charge-Offs
to Average Loans
While the Bank’s residential mortgage loan portfolio declined
in 2009, origination activity increased significantly, principally
reflecting declines in residential mortgage loan interest rates,
borrower refinancing activity, more affordable home prices
400
800
and tax incentive programs. Because of the interest rate risk
$347
considerations associated with holding low coupon mortgage
300
600
loans, $29.8 million of low fixed rate residential mortgages
$641
originated in 2009 were sold in the secondary market with
customer servicing retained by the Bank and as a result were
200
400
not reflected in outstanding loan balances at period end.
Consumer loans comprise almost half of the total loan
100
200
increase was principally attributed to the growth of the Bank’s
port folio and principally consist of home mortgages, home
loan and securities portfolios.
0
Loans: Total loans ended the year at $669.5 million, repre
senting an increase of $35.9 million, or 5.7%, compared with
December 31, 2008. Business loans, which are typically the
Bank’s highest yielding assets and most profitable relation
ships, led the overall growth of the loan portfolio, posting an
equity loans and residential construction loans. The Bank
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
0
also serves the small business market throughout down east
and midcoast Maine. It offers business loans to individuals,
partnerships, corporations, and other business entities for
Securities
($ in millions)
Deposits
($ in millions)
capital construction, real estate purchases, working capital,
real estate development, and a broad range of other busi
ness purposes.
80
60
40
20
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
$34,786
8,000
6,000
4,000
2,000
0
$6,022
2009 Summary Annual Report 13
$21,754
53.2%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Tax-Equivalent
Net Interest Income
($ in thousands)
Non-Interest Income
($ in thousands)
Non-Interest Expense
Efficiency Ratio
($ in thousands)
1.5
1.2
0.9
0.6
0.3
0
8,000
6,000
4,000
2,000
0
25,000
20,000
15,000
10,000
5,000
0
.25
.20
.15
.10
.05
0
3.00
2.00
1.00
0
80
60
40
20
0
10,000
$9,316
4.00
$3.12
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Net Income Available
Diluted Earnings
to Common Shareholders
per Share
($ in thousands)
1200
1000
800
600
400
200
0
400
300
200
100
0
40000
35000
30000
25000
20000
15000
10000
5000
0
800
600
400
200
0
800
600
400
200
0
8000
6000
4000
2000
0
1.5
1.2
0.9
0.6
0.3
0.0
10000
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
Credit Quality: At December 31, 2009, the Bank’s total non
The Bank maintains an allowance for loan losses (the “allow
performing loans amounted to $9.2 million or 1.37% of total
ance”) which is available to absorb probable losses on loans.
loans, compared with $4.4 million, or 0.70% at December
The allowance is maintained at a level that, in management’s
31, 2008. One agricultural loan accounted for $1.5 million of
judgment, is appropriate for the amount of risk inherent in
total yearend 2009 nonperforming loans and represented
the current loan portfolio and adequate to provide for esti
approximately onethird of the yearoveryear increase. Non
mated probable losses. At December 31, 2009, the allow
performing commercial real estate mortgages and residential
ance stood at $7.8 million, representing an increase of $2.4
real estate mortgages ended the year at $3.1 million and
million or 43.5% compared with December 31, 2008. At
$2.5 million, respectively, up $1.5 million and $800 thousand
December 31, 2009, the allowance expressed as a percent
compared with December 31, 2008.
age of total loans stood at 1.17%, up from 0.86% at
During 2009 the Bank enjoyed a low level of loan loss
December 31, 2008.
experience, which showed improvement compared with
Investment Securities: During 2009 the securities portfolio
the loan loss experience in 2008. Total net loan chargeoffs
continued to serve as a key source of earning assets for the
amounted to $839 thousand in 2009, or net chargeoffs
Bank. Total securities ended the year at $347.0 million, rep
1200
1000
800
600
400
200
0
400
300
200
100
0
40000
35000
30000
25000
20000
15000
10000
5000
0
800
600
400
200
0
800
600
400
200
0
8000
6000
4000
2000
0
1.5
1.2
0.9
0.6
0.3
0.0
10000
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
0.25
0.20
0.15
0.10
0.05
0.00
4
3
2
1
0
80
60
40
20
0
1200
1000
800
600
400
200
0
400
300
200
100
0
40000
35000
30000
25000
20000
15000
10000
5000
0
1,200
1,000
800
600
400
200
0
400
300
200
100
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
$1,072
$669
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Assets
($ in millions)
Loans
($ in millions)
$347
400
$641
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Securities
($ in millions)
Deposits
($ in millions)
800
600
400
200
0
800
600
200
0
8000
6000
4000
2000
0
800
600
400
200
0
800
600
400
200
0
8,000
6,000
4,000
2,000
0
1.5
1.2
0.9
0.6
0.3
0.0
to average loans outstanding of 0.13%, compared with $1.3
million, or net chargeoffs to average loans outstanding of
0.25
0.21% in 2008.
1.37%
0.20
0.15
0.10
0.05
0.00
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
1.5
1.2
0.9
0.6
0.3
0
.25
.20
.15
.10
.05
0
0.13%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Non-Performing
Loans to Total Loans
Net Charge-Offs
to Average Loans
10000
4
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
For the year ended December 31, 2009, the Bank recorded
a provision for loan losses (the “provision”) of $3.2 million,
representing an increase of $1.2 million, or 60.8%, com
3
10,000
pared with 2008. The increase in the provision was princi
4.00
pally attributed to a deterioration in overall credit quality,
$9,316
2
8,000
growth in the loan portfolio, and deteriorating economic
3.00
conditions, including elevated unemployment levels and
$3.12
depressed real estate values in the markets served by
1
6,000
the Bank.
4,000
2,000
0
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
2.00
1.00
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Net Income Available
to Common Shareholders
($ in thousands)
Diluted Earnings
per Share
80
14 Bar Harbor Bankshares
25,000
20,000
15,000
10,000
5,000
0
$21,754
40
60
20
0
80
60
40
20
0
resenting an increase of $56.5 million, or 19.5%, compared
0
0
800
600
200
600
400
200
800
7
0
0
2
8
0
0
2
6
0
0
2
5
0
0
2
8
0
0
2
7
0
0
2
6
0
0
2
5
0
0
2
9
0
0
2
9
0
0
2
1,200
1,000
Loans
($ in millions)
Assets
($ in millions)
with December 31, 2008.
$1,072
securities issued by U.S. government agencies, U.S.
obligations, or commercial mortgagebacked securities.
The securities portfolio is comprised of mortgagebacked
Additionally, the Bank did not own any equity securities or
governmentsponsored enterprises, and other private label
31, 2009, the securities portfolio did not contain any pools
have any corporate debt exposure in its securities portfolio,
of subprime mortgagebacked securities, collateralized debt
issuers. The securities portfolio also includes taxexempt obli
nor did it own any perpetual preferred stock in Federal Home
$669
1.37%
gations of state and political subdivisions, and obligations of
other U.S. governmentsponsored enterprises. At December
400
0.13%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Non-Performing
Loans to Total Loans
Net Charge-Offs
to Average Loans
1.5
1.2
0.9
0.6
0.3
0
8,000
6,000
4,000
2,000
0
25,000
20,000
15,000
10,000
5,000
0
.25
.20
.15
.10
.05
0
3.00
2.00
1.00
0
80
60
40
20
0
Loan Mortgage Corporation (“FHLMC”) or Federal National
Mortgage Association (“FNMA”), or any interests in pooled
trust preferred securities.
400
300
200
100
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
$347
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
800
600
400
200
0
$641
$3.12
10,000
$9,316
4.00
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Securities
($ in millions)
Deposits
($ in millions)
Net Income Available
Diluted Earnings
to Common Shareholders
per Share
($ in thousands)
$6,022
$21,754
53.2%
$34,786
8,000
6,000
4,000
2,000
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Tax-Equivalent
Net Interest Income
($ in thousands)
Non-Interest Income
($ in thousands)
Non-Interest Expense
Efficiency Ratio
($ in thousands)
$34,786
$6,022
53.2%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Tax-Equivalent
Net Interest Income
($ in thousands)
Non-Interest Income
($ in thousands)
Non-Interest Expense
Efficiency Ratio
($ in thousands)
Deposits: During 2009, the most significant funding source
and Total Riskbased capital ratios were 10.35%, 15.34%
for the Bank’s earning assets continued to be retail depos
and 17.14%.
its, gathered through its network of twelve banking offices
throughout downeast and midcoast Maine. Historically,
the banking business in the Bank’s market area has been
seasonal, with lower deposits in the winter and spring and
higher deposits in summer and autumn. The timing and
extent of seasonal swings have varied from year to year,
particularly with respect to demand deposits.
In January 2009, the Company issued and sold $18.751
million in Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, no par value, to the U.S. Treasury in connection
with its participation in the U.S. Treasury’s Capital Purchase
Program (“CPP”). The CPP is a voluntary program designed
by the U.S. Treasury to provide additional capital to healthy,
“wellcapitalized” banks, to help provide economic stimulus
Total deposits ended the year at $641.2 million, represent
through the creation of additional lending capacity in local
ing an increase of $63.0 million, or 10.9%, compared with
banking markets.
December 31, 2008. Total retail deposits ended the year at
$549.2 million, up $59.5 million or 12.1% compared with
December 31, 2008. Savings, money market, and NOW
account deposits combined were up $14.8 million or 6.4%,
while retail time deposits were up $44.9 million or 22.4%
compared with December 31, 2008.
In December 2009, the Company completed its previously
announced offering of 800,000 shares of common stock to
the public at $27.50 per share. The net proceeds from this
offering, after deducting underwriting discounts and esti
mated expenses amounted to $20.4 million. As previously
reported, in January 2010 the Company completed the
Brokered deposits obtained from the national market
closing of the underwriter’s exercise of its overallotment
ended the year at $92.0 million, representing an increase of
option to purchase an additional 82,021 shares of the
$3.5 million, or 3.9%, compared with December 31, 2008.
Company’s common stock at a purchase price to the public
Brokered deposits are generally utilized to help support the
of $27.50 per share. The Company received total net pro
Bank’s earning asset growth, while maintaining its strong,
ceeds from the offering, including the exercise of the over
onbalance sheet liquidity position via secured borrowing
allotment option, after deducting underwriting discounts and
lines of credit with the Federal Home Loan Bank and the
expenses, amounting to $22.4 million.
Federal Reserve Bank.
On February 4, 2010, the Company redeemed all 18,751
Borrowings: Borrowed funds principally consist of advances
shares of its Fixed Rate Cumulative Perpetual Preferred
from the Federal Home Loan Bank of Boston. The Bank uti
Stock, Series A, it sold to the Treasury as part of the CPP.
lizes borrowed funds in leveraging its strong capital position
The Company paid $18.774 million to the Treasury to
and supporting its earning asset portfolios.
redeem the Preferred Stock, consisting of $18.751 million of
Total borrowings ended the year at $311.6 million, repre
senting a decline of $12.3 million, or 3.8%, compared with
December 31, 2008. In December 2009 the Company com
pleted its offering of common stock to the public, the cash
proceeds from which were immediately utilized to pay down
shortterm borrowings.
Capital: Consistent with its longterm strategy of operating
a sound and profitable organization, the Bank continues to
principal and $23 thousand of accrued and unpaid dividends.
The Company and the Bank received approvals from their
respective regulators to redeem the Preferred Stock. The
Company’s redemption of the Preferred Stock is not subject
to any additional conditions or stipulations from the Treasury
or the Company’s and the Bank’s principal regulators.
At December 31, 2009, the Company’s tangible common equity
ratio stood at 8.60%, up from 6.42% at December 31, 2008.
exceed regulatory requirements for “wellcapitalized” institu
Shareholder Dividends: The Company paid regular cash divi
tions. Company management considers this to be vital in
dends of $1.04 per share of common stock in 2009, com
promoting depositor and investor confidence and providing
pared with $1.02 in 2008, representing an increase of 2.0%.
a solid foundation for future growth. Under the capital ade
quacy guidelines administered by the Bank’s principal regu
RESULTS OF OPERATIONS
lators, “wellcapitalized” institutions are those with Tier I
Leverage, Tier I Riskbased, and Total Riskbased ratios of
at least 5%, 6% and 10%, respectively. At December 31,
2009, the Company’s Tier I Leverage, Tier I Riskbased,
Net Income and Earnings Per Share: For the year ended
December 31, 2009, the Company reported record net
income available to common shareholders and record
diluted earnings per share. Net income available to com mon
shareholders amounted to $9.3 million, compared with $7.7
2009 Summary Annual Report 15
1.5
1.2
0.9
0.6
0.3
0.0
10000
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
800
600
400
200
0
800
600
400
200
8000
6000
4000
2000
1200
1000
800
600
400
200
0
400
300
200
100
40000
35000
30000
25000
20000
15000
10000
1,200
1,000
800
600
400
200
0
400
300
200
100
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
800
600
400
200
0
800
600
400
200
0
8,000
6,000
4,000
2,000
0
5
0
0
2
6
0
0
2
0
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
0
7
0
0
2
8
0
0
2
9
0
0
2
Assets
($ in millions)
Loans
($ in millions)
$347
$641
5
0
0
2
5000
6
0
0
2
0
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
0
8
0
0
2
9
0
0
2
Securities
($ in millions)
Deposits
($ in millions)
$34,786
$6,022
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Tax-Equivalent
Net Interest Income
($ in thousands)
Non-Interest Income
($ in thousands)
1200
1000
800
600
400
200
0
400
300
200
100
0
40000
35000
30000
25000
20000
15000
10000
5000
0
800
600
400
200
0
800
600
400
200
0
8000
6000
4000
2000
0
1.5
1.2
0.9
0.6
0.3
0.0
10000
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
0.25
0.20
0.15
0.10
0.05
0.00
4
3
2
1
0
80
60
40
20
0
0.25
0.20
0.15
0.10
0.05
0.00
$1,072
$669
1.37%
0.13%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Assets
($ in millions)
Loans
($ in millions)
Non-Performing
Loans to Total Loans
Net Charge-Offs
to Average Loans
$1,072
$669
1.37%
$347
$641
10,000
$9,316
4.00
$3.12
1,200
1,000
800
600
400
200
0
400
300
200
100
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
800
600
400
200
0
800
600
400
200
0
1.5
1.2
0.9
0.6
0.3
0
4
3
2
1
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
.25
.20
.15
.10
.05
0
0.13%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
1.5
1.2
0.9
0.6
0.3
0
8,000
6,000
4,000
2,000
0
25,000
20,000
15,000
10,000
5,000
0
.25
.20
.15
.10
.05
0
3.00
2.00
1.00
0
80
60
40
20
0
Net Income Available
Diluted Earnings
to Common Shareholders
per Share
($ in thousands)
million for the year ended December 31, 2008, representing
Net Charge-Offs
an increase of $1.6 million, or 20.5%. The Company’s
to Average Loans
Non-Performing
Loans to Total Loans
diluted earnings per share, after preferred stock dividends
During 2008 the targeted fed funds rate fell from 4.25% to a
Securities
($ in millions)
range of 0% to 0.25%, where it stayed for all of 2009. The
decline in shortterm interest rates favorably impacted the
Deposits
($ in millions)
and accretion of preferred stock discount, amounted to $3.12
Bank’s 2009 net interest margin, as the cost of interest bear
for 2009 compared with $2.57 in 2008, representing an
ing liabilities declined faster and to a greater degree than the
increase of $0.55, or 21.4%.
decline in earning asset yields.
10,000
80
$9,316
8,000
6,000
4,000
2,000
0
60
40
20
5
0
0
2
6
0
0
2
7
0
0
2
0
8
0
0
2
9
0
0
2
4.00
3.00
2.00
1.00
0
$3.12
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Net Income Available
to Common Shareholders
($ in thousands)
Diluted Earnings
per Share
8,000
6,000
4,000
2,000
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
$34,786
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Tax-Equivalent
Net Interest Income
($ in thousands)
$6,022
$21,754
53.2%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Non-Interest Income
($ in thousands)
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Non-Interest Expense
Efficiency Ratio
($ in thousands)
Return on Average Equity: The Company’s total average
Noninterest Income: In addition to net interest income,
shareholders’ equity amounted to $88.8 million in 2009, rep
noninterest income is a significant source of revenue for the
resenting an increase of $23.7 million, or 36.4%, compared
25,000
80
with 2008. The Company’s return on average shareholders’
$21,754
equity amounted to 11.65% in 2009, compared with 11.87%
20,000
in 2008.
60
53.2%
15,000
Net Interest Income: Net interest income is the principal
component of the Company’s income stream and represents
40
the difference or spread between interest generated from
10,000
Company and an important factor in its results of operations.
Noninterest income is principally derived from financial ser
vices including trust and investment management activities,
as well as service charges on deposit accounts, mortgage
banking and servicing fees, credit and debit card processing
fees, net securities gains, and a variety of other product and
service fees.
earning assets and the interest expense paid on deposits
For the year ended December 31, 2009, total noninterest
income amounted to $6.0 million, representing a decline of
$410 thousand or 6.4% compared with 2008. The decline
in noninterest income was attributed to a variety of factors,
including a $1.3 million or 61.9% decline in credit and debit
card service charges and fees, reflecting the previously
reported sale of the Bank’s merchant processing and Visa
credit card portfolios in the fourth quarter of 2008. This
decline was offset by a comparable decline in debit and
credit card expenses, which are included in noninterest
expense in the Company’s consolidated statements of
income. The decline in 2009 noninterest income was also
attributed to a $313 thousand gain recorded in 2008 repre
senting the proceeds from shares redeemed in connection
and borrowed funds. Fluctuations in market interest rates,
5,000
as well as volume and mix changes in earning assets
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
and interest bearing liabilities, can materially impact net
0
20
0
interest income.
Non-Interest Expense
($ in thousands)
Efficiency Ratio
For the year ended December 31, 2009, net interest income
on a taxequivalent basis amounted to $34.8 million, repre
senting an increase of $6.7 million, or 23.8%, compared with
2008. This increase was principally attributed to an improved
net interest margin, combined with average earning asset
growth of 14.0%. The taxequivalent net interest margin
amounted to 3.40% in 2009, representing an improvement
of 27 basis points compared with 2008.
16 Bar Harbor Bankshares
1200
1000
800
600
400
200
0
400
300
200
100
0
40000
35000
30000
25000
20000
15000
10000
5000
0
800
600
400
200
0
800
600
400
200
0
8000
6000
4000
2000
0
1.5
1.2
0.9
0.6
0.3
0.0
10000
8000
6000
4000
2000
0
25000
20000
15000
10000
5000
0
0.25
0.20
0.15
0.10
0.05
0.00
4
3
2
1
0
80
60
40
20
0
1,200
1,000
800
600
400
200
0
400
300
200
100
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
$1,072
$669
1.37%
800
600
400
200
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Assets
($ in millions)
Loans
($ in millions)
Non-Performing
Loans to Total Loans
Net Charge-Offs
to Average Loans
1.5
1.2
0.9
0.6
0.3
0
.25
.20
.15
.10
.05
0
0.13%
10,000
8,000
$9,316
4.00
3.00
$3.12
2008. These investment funds, which generally qualify for
6,000
Community Reinvestment Act credit, represent socially
2.00
responsible venture capital investments in small businesses
4,000
throughout Maine and New England. These writedowns
principally reflected the impact current economic conditions
1.00
2,000
have had on these funds. Reflecting increased loan collection
and foreclosure activity, the Bank’s loan collection expenses
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
increased $185 thousand in 2009, or 250.7%, compared
0
with 2008.
Net Income Available
to Common Shareholders
($ in thousands)
Diluted Earnings
per Share
$347
800
600
$641
with the Visa, Inc. initial public offering. Service charges
on deposit accounts declined $182 thousand or 11.4%
400
compared with 2008, principally attributed to declines in
deposit account overdraft activity.
200
Trust and financial services fees amounted to $2.4 million
8
0
0
2
9
0
0
2
in 2009, representing a decline of $69 thousand or 2.7%,
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
principally reflecting lower average market values of assets
0
under management during 2009 compared with 2008.
Following a recovery in the equity markets, assets under
Deposits
($ in millions)
5
0
0
2
6
0
0
2
7
0
0
2
Securities
($ in millions)
management at December 31, 2009 rose to $270.1 million,
The foregoing increases in 2009 noninterest expense were
representing an increase of $39.9 million or 17.3% compared
largely offset by a $1.1 million or 76.6% decline in credit and
with yearend 2008.
debit card expenses and a $161 thousand or 10.5% decline
The foregoing declines in noninterest income were offset in
in furniture and equipment expenses.
part by a $475 thousand increase in income from mortgage
8,000
banking activities, largely reflecting the gains on sales of
$34,786
certain residential mortgage loans in the secondary market
$6,022
6,000
during 2009.
25,000
20,000
$21,754
Total securities gains, net of otherthantemporary impair
15,000
ment losses, amounted to $67 thousand in 2009, compared
4,000
with net securities losses of $831 thousand in 2008. The
10,000
$67 thousand in net securities gains were comprised of real
ized gains on the sale of securities amounting to $2.5 million,
2,000
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
offset by otherthantemporary impairment losses of $2.4
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
million on certain availableforsale, 14 family, nonagency
0
Tax-Equivalent
Net Interest Income
($ in thousands)
mortgage backed securities.
Non-Interest Income
($ in thousands)
Noninterest Expense: For the year ended December 31,
2009, total noninterest expense amounted to $21.8 million,
5,000
0
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Non-Interest Expense
($ in thousands)
80
60
40
20
0
53.2%
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
Efficiency Ratio
representing an increase of $1.2 million, or 6.0%, compared
Efficiency Ratio: The Company’s efficiency ratio, or non
with 2008. The increase in noninterest expense was princi
interest operating expenses divided by the sum of tax
pally attributed to a $1.3 million or 959.7% increase in FDIC
equivalent net interest income and noninterest income
insurance assessments, including an emergency special
other than net securities gains and otherthantemporary
FDIC assessment amounting to $492 thousand. The special
impairments, measures the relationship of operating expenses
assessment was levied on all FDIC insured financial institu
to revenues. Low efficiency ratios are typically a key factor
tions. Deposit insurance premiums for all FDIC insured banks
for high performing financial institutions. For the year ended
have increased as a result of the FDIC’s plan to reestablish
December 31, 2009, the Company’s efficiency ratio amounted
the Deposit Insurance Fund to levels required by the Federal
to 53.2%, which was significantly better than the Company’s
Deposit Reform Act of 2005.
peer group average.
Salaries and employee benefits expense amounted to $11.6
Income Taxes: Total income taxes amounted to $4.0 million in
million in 2009, up $767 thousand, or 7.1%, compared with
2009, representing an increase of $608 thousand, or 18.0%,
2008. The increase in salaries and employee benefits was
compared with 2008. The Company’s effective tax rate
principally attributed to increases in employee health insur
amounted to 27.8% in 2009, compared with 30.4% in 2008.
ance premiums, normal increases in base salaries, and
Fluctuations in the Company’s effective tax rate are generally
changes in staffing levels and mix.
The increase in 2009 noninterest expense was also attributed
to $281 thousand in writedowns of certain nonmarketable
venture capital equity investment considered funds other
thantemporarily impaired, compared with $68 thousand in
attributed to changes in the relationship between nontaxable
income and nondeductible expense, and income before
income taxes, during any given reporting period.
2009 Summary Annual Report 17
Carol J. Pye
Retail & Residential Lending
Andrew X. Sankey
General Services
R. Todd Starbird
Regional VP—Business Banking
Linda B. Stratton
Branch Relationship Manager,
Deer Isle
Timothy F. Tunney
Business Banking
Leita K. Zeugner
Deposit Services
Assistant
Vice Presidents
Stacie J. Alley
Managed Assets
Steven W. Blackett
Credit Administration
Marjorie E. Gray
Branch Relationship Manager,
Blue Hill
Barbara F. Hepburn
Human Resources
Donna B. Hutton
Customer Service
Elena M. Martin
Electronic Banking
Colleen E. Maynard
Branch Relationship Manager,
Southwest Harbor
Elizabeth B. McMillan
Human Resources
Joseph T. McOscar, Jr.
Credit Administration
J. Paul Michaud
Application Support &
Project Management
Debra S. MitchellDow
Branch Relationship Manager,
Bar Harbor
Judith L. Newenham
Consumer Lending Support
Bonnie A. Poland
Consumer Lending Support
Lester L. Porter
Assistant Controller
Lisa F. Veazie
Customer Service Manager, Deer Isle
Audrey H. Eaton
Branch Relationship Manager,
Ellsworth
Ward A. Grant, II
Corporate Compliance Officer
Joseph E. Hackett
Business Banking
Vicki L. Hall
Business Banking
Wilfred R. Hatt
Regional VP—Business Banking
Derek W. R. Hayes
Business Banking
Lisa A. Holmes
Retail & Residential Lending
Robert J. Lavoie
Information Systems
Maureen T. Lord
Regional Branch Relationship
Manager, Washington County
Carolyn R. Lynch
Internal Audit
Cheryl L. Mullen
Retail Sales and Service &
Branch Administration
Lisa L. Parsons
Regional Branch Relationship
Manager, Northeast Harbor &
Somesville
Russell A. Patton
Information Security
Management and Staff
Bar Harbor Bankshares
Management
Joseph M. Murphy*
President & Chief Executive Officer
Gerald Shencavitz*
Executive Vice President,
Chief Financial Officer & Treasurer
President & Chief Executive Officer
Bar Harbor Bank &
Trust Management
Joseph M. Murphy
4 Gerald Shencavitz
Executive Vice President,
Chief Financial Officer &
Chief Operating Officer
Senior Vice Presidents
Michael W. Bonsey*
Cheryl D. Curtis
Credit Administration
Marketing, Research &
Community Relations
(cid:31)
(cid:29)
(cid:28)
(cid:27)
Business Banking
Bar Harbor Trust Services
Gregory W. Dalton*
Daniel A. Hurley, III
Stephen M. Leackfeldt*
Marsha C. Sawyer
David W. Thibault
Human Resources
Operations & Information Systems
Retail Banking & Consumer Lending
Vice Presidents
Judi L. Anderson
Credit Administration
Michelle R. Bannister
Retail & Residential Lending
Marcia T. Bender
Branch Operations
Penny L. Carter
Retail & Residential Lending
David S. Cohen
Controller & Assistant Treasurer
Dawn L. Crabtree
Operations
(cid:25)
(cid:24)
(cid:26)
(cid:30)
(cid:23)
*Named executive officers
18 Bar Harbor Bankshares
Officers
Judith W. Fuller
Corporate Secretary
Deborah A. Maffucci
Accounting & Finance
Catherine M. Planchart
Community Relations
Managers &
Assistant Managers
Virginia H. Barnes
Branch Relationship Manager,
Milbridge
Laura A. Bridges
Quality Assurance
Brenda B. Colwell
Training
Brenda J. Condon
Customer Service Manager, Blue Hill
Krystal E. Dorr
Regional Assistant Manager,
Northeast Harbor & Somesville
Annette J. Guertin
Purchasing
Gregory S. Jones
Customer Service Manager, Rockland
Wendy R. MacLaughlin
Human Resources, Operations
Jody C. McFadden
Branch Relationship Manager,
Winter Harbor
Dylan A. Mooney
Assistant Manager,
Accounting & Finance
Andrea L. Parker
Accounts & Transaction Processing
Anne M. Pennell
Branch Relationship Manager,
Machias
Debra R. Sanner
Customer Service Manager, Ellsworth
Peter M. Swanberg
Servicing
Terry E. Tracy
Branch Administration
Ann G. Upham
Mortgage Originator
Bar Harbor Trust
Services
Daniel A. Hurley, III
President
Gerald Shencavitz
Chief Financial Officer
Joshua A. Radel
Chief Investment Officer
Joseph M. Pratt
Managing Director & Trust Officer
Vice Presidents
Mischelle E. Adams
Trust Officer
Melanie J. Bowden
Trust Officer
Faye A. Geel
Trust Officer
Lara K. Horner
Trust Operations
Sarah C. Robinson
Trust Officer
Scott C. Storgaard
Trust Investment Officer
Officer
Julie B. Zimmerman
Trust Officer
Supervisor
Pamela L. Curativo
Trust Operations
Bar Harbor Financial
Services**
Craig D. Worcester
Managing Director
Ronald L. Hamilton
Vice President, Financial Consultant
Dennis M. Kinghorn
Vice President, Financial Consultant
Sonya L. Mitchell
Vice President, Financial Consultant
Diane M. Rimm
Vice President, Operations
Employees
(As of 01/29/2010)
Gwen M. Abbott
Jennifer C. Abbott
Susan L. Albee
Deena M. Allen
Faye M. Allen
Holly M. Andrews
June G. Atherton
Vicki J. Austin
Kristi L. Bates-Mitchell
Charleen L. Beal
Karen C. Beal
Melynda M. Beal
Penny S. Brady
Heather L. Brown
Katy A. Bryer
Hillary A. Carter
Crystal N. Case
Theresa L. Colson
Sarah A. Cormier
Kevin J. Crandall
Lisa L. Crosby
Geneva E. Culshaw
Laura H. Danielson
Logan-Ashlee Davis
Sharon J. Davis
Richard E. Dickson
Julie M. Eaton
Theresa M. Ellis
Rebecca H. S. Emerson
Pamela J. Farnsworth
Ashley G. Foley
Amy N. Foskett
Ashlee R. Fountaine
Candy A. Ginn
Dawn F. Gray
Shelley E. Gray
Susanne M. Griffin
Samantha E. Hagerthy
Andrew Haley
Kelli M. Hall
Kirsten M. Hamilton
Betsy B. Hanscom
Casey E. Hardwick
Prescilla J. Harper
Nancy B. Hastings
Mary D. Hays
Ivy M. Heal
Holly B. Hersom
Cathy A. Higgins
Melissa S. Hinckley
Nicole S. Hinkel
Sharon E. Hobbs
Jeanette L. Howie
Lynn L. Huffman
Margaret Hutchinson
Danielle Y. Johnson
Holly M. Johnston
Maureen E. Kane
Rebecca H. Kent
Kathryn M. Kief
Ebony A. Kramp
James W. Lacasse
Janice E. Lachance
Jane E. Lambert
Paula M. Lamoureux
Bonnie S. Leblanc
Xin Liang
Marlene A. Lloyd
Jonathan W. Long
Virginia L. MacLeod
Carol M. Marshall
Ashley S. Matthews
Bettina F. McGuire
Kara M. Miller
J. Aaron Mitchell
Michele L. Morrison
Dawn B. Nason
Mary Beth Nichols
Jennifer I. Norton
Debbie B. Norwood
Nichole D. Norwood
Alexandra Orcutt
Joseph F. Pagan
Jane M. Parker
Deborah I. Parlee
Jon B. Perkins
Michelle P. Rafferty
Mary C. Ratner
Julie A. Redman
Judy A. Richards
Amanda L. Robbins
Jane M. Robinson
Rachel A. Russell
Alicia M. Santerre
Jennifer M. Saunders
Frank J. Schaefer
Edith E. Schwartz
Debra L. Scott-Henderson
Stephanie M. Shuster
Cindy Smith-Bilbro
Andrea L. Snow
Rachelle A. Stagg
Angela M. Stanley
Lottie B. Stevens
Teri A. Stover
Bristol N. Timmons
Brenda D. Tripp
Jennifer M. Tucker
Jyl E. Tucker
Allyson M. Wallace
Paula R. Webster
Jeanne L. F. Weeks
Valissa G. Winters
**Bar Harbor Financial Services is a branch of Infinex Investments, Inc., an independent registered broker-dealer which is not affiliated with the Company or the Bank.
2009 Summary Annual Report 19
Board of Directors
Peter Dodge, Blue Hill, ME
Chairman of the Board
President and Insurance Agent,
Peter Dodge Agency d/b/a Merle B. Grindle
Agency, John R. Crooker Agency, and
The Endicott Agency
Thomas A. Colwell, Deer Isle, ME
Vice Chairman of the Board
Retired President, Colwell Bros., Inc.
Robert C. Carter, Machias, ME
Retired Owner of Machias Motor Inn
Jacquelyn S. Dearborn, Holden, ME
Mediator for the Ellsworth and Bangor Court
System, Treasurer of Joel A. Dearborn, Esq., PA
Martha T. Dudman,
Northeast Harbor, ME
President of Dudman Communications
Corporation and Author
Lauri E. Fernald, Mt. Desert, ME
Constance C. Shea,
Funeral Director and an Owner of
Jordan-Fernald Funeral Home
Gregg S. Hannah, Surry, ME
Former Treasurer of a marketing consulting firm
and past Associate Professor of Business
Management at Nichols College
Clyde H. Lewis, Sullivan, ME
Vice President and General Manager,
Morrison Chevrolet, Inc.
Joseph M. Murphy, Mt. Desert, ME
President and Chief Executive Officer of the
Company and the Bank
Robert M. Phillips, Sullivan, ME
Consultant to the Wild Blueberry Industry
Mt. Desert, ME
Real Estate Broker and Former Owner
of Lynam Real Estate
Kenneth E. Smith, Bar Harbor, ME
Owner and Innkeeper of Manor House Inn
Scott G. Toothaker, Ellsworth, ME
Principal and Vice President of
Melanson Heath & Co.
David B. Woodside, Bar Harbor, ME
President and General Manager of
Acadia Corporation
(cid:31)
(cid:29)
(cid:27)
(cid:20)
(cid:21)
(cid:23)
(cid:18)
(cid:30)
(cid:28)
(cid:26)
(cid:25)
(cid:24)
(cid:22)
(cid:19)
20 Bar Harbor Bankshares
Corporate Information
Annual Meeting
Form 10-K Annual Report
The Annual Meeting of shareholders of Bar Harbor
Bankshares will be held at 11:00 a.m. on Tuesday
May 18, 2010 at the Bar Harbor Club located on
West Street in Bar Harbor, Maine.
Financial Information
Shareholders, analysts and other investors seeking financial
information about Bar Harbor Bankshares should contact
Gerald Shencavitz, Executive Vice President, Chief Financial
Officer and Treasurer, at 207-288-3314.
Internet
Bar Harbor Bank & Trust information, as well as Bar Harbor
Bankshares Form 10-K, is available at www.BHBT.com.
Shareholder Assistance
Questions concerning your shareholder account, including
change of address forms, records or information about lost
certificates or dividend checks, should be directed to our
transfer agent:
American Stock Transfer & Trust Company
59 Maiden Lane, Plaza Level
New York, NY 10038
800-937-5449 / www.amstock.com
Stock Exchange Listing
Bar Harbor Bankshares common stock is traded on
the NYSE Amex Exchange (www.nyse.com), under the
symbol BHB.
The Company refers you to its Annual Report on Form 10-K
for fiscal year ended December 31, 2009 and appended to
this report for detailed financial data, management’s discus-
sion and analysis of financial condition and results of oper-
ations, disclosures about market risk, market information
including stock graphs, descriptions of the business of the
Company and its products and services, and a listing of its
executive officers.
Mailing Address
If you need to contact our corporate headquarters
office, write:
Bar Harbor Bankshares
Post Office Box 400
82 Main Street
Bar Harbor, Maine 04609-0400
207-288-3314 • 888-853-7100
Printed Financial Information
We will provide, without charge, and upon written request,
a copy of the Bar Harbor Bankshares Annual Report to the
Securities and Exchange Commission on Form 10-K. The
Bank will also provide, upon request, Annual Disclosure
Statements for Bar Harbor Bank & Trust as of December 31,
2009. Please contact Marsha C. Sawyer, Bar Harbor
Bankshares Clerk, at 207-288-3314 or the above address.
Annual Report Design by Curran & Connors, Inc. / www.curran-connors.com
Photography by Chris Pinchbeck / pinchbeckphoto.com
Schooner Timberwind photos courtesy of Bob and Dawn Tassi
Smiling dog provided courtesy SPCA of Hancock County
FPO PRINTER TO PLACE
Bar Harbor
82 Main Street
288-3314
Blue Hill
21 Main Street
374-5600
Deer Isle
25 Church Street
348-2319
Ellsworth
137 High Street
667-7194
Lubec
68 Washington Street
733-4931
Machias
41 Main Street
255-3372
Milbridge
2 Bridge Street
546-7323
Northeast Harbor
111 Main Street
276-3314
Rockland
245 Camden Street
594-9557
Somesville
1055 Main Street
244-4417
Southwest Harbor
314 Main Street
244-3314
Winter Harbor
385 Main Street
963-5800
Business Banking, Trust &
Financial Services Offices
Bangor
One Cumberland Place
Suite 100
945-5244
Ellsworth
135 High Street
667-3883