<SEC-DOCUMENT>0000743367-16-000141.txt : 20160614
<SEC-HEADER>0000743367-16-000141.hdr.sgml : 20160614
<ACCEPTANCE-DATETIME>20160614094033
ACCESSION NUMBER:		0000743367-16-000141
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160614
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160614
DATE AS OF CHANGE:		20160614

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13349
		FILM NUMBER:		161712166

	BUSINESS ADDRESS:	
		STREET 1:		82 MAIN ST
		STREET 2:		PO BOX 400
		CITY:			BAR HARBOR
		STATE:			ME
		ZIP:			04609-0400
		BUSINESS PHONE:		2072883314

	MAIL ADDRESS:	
		STREET 1:		82 MAIN ST
		STREET 2:		PO BOX 400
		CITY:			BAR HARBOR
		STATE:			ME
		ZIP:			04609-0400
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>shareholder06142016.htm
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<DIV style="width:624px"><P style="margin:0px; font-size:12pt" align=center><B>UNITED STATES</B></P>
<P style="margin:0px; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px; font-size:12pt" align=center><B>WASHINGTON, D.C. 20549</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:16pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B>CURRENT REPORT PURSUANT</B></P>
<P style="margin:0px; font-size:12pt" align=center><B>TO SECTION 13 OR 15(D) OF THE</B></P>
<P style="margin:0px; font-size:12pt" align=center><B>SECURITIES EXCHANGE ACT OF 1934</B></P>
<P style="margin:0px" align=justify><BR></P>
</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=319.2 /><TD width=319.2 /></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=justify>Date of report (Date of earliest event reported) &nbsp;&nbsp;&nbsp;&nbsp;June 14, 2016</P>
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<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>Bar Harbor Bankshares</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center>(Exact Name of Registrant as Specified in Its Charter)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>Maine</B></P>
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<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center>(State or Other Jurisdiction of Incorporation)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=center><B>001-13349</B></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=center><B>01-02393663</B></P>
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<TR><TD style="margin-top:0px" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=center>(Commission File Number)</P>
</TD><TD style="margin-top:0px" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=center>(IRS Employer Identification No.)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=319.2><P style="margin:0px; padding-left:48px; font-size:11pt"><B>P.O. Box 400</B></P>
<P style="margin:0px; padding-left:48px; font-size:11pt"><B>Main Street, Bar Harbor, ME</B></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=319.2><P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:11pt" align=center><B>04609-0400</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=center>(Address of Principal Executive Offices)</P>
</TD><TD style="margin-top:0px" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=center>(Zip Code)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center><B>(207) 288-3314</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center>(Registrant&#146;s Telephone Number, Including Area Code)</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=638.4 colspan=2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=638.4 colspan=2><P style="margin:0px; font-size:11pt" align=center>(Former Name or Former Address, if Changed Since Last Report)</P>
</TD></TR>
</TABLE>
<DIV style="width:624px"><P style="margin:0px" align=justify><BR></P>
<P style="line-height:13pt; margin:0px; text-indent:24px; font-size:11pt" align=justify>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 (<I>see </I>General Instruction A.2. below):</P>
<P style="line-height:13pt; margin:0px" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Wingdings; font-size:11pt; float:left">o</P>
<P style="line-height:13pt; margin:0px; text-indent:-2px; font-size:11pt" align=justify>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="line-height:13pt; margin:0px; clear:left" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Wingdings; font-size:11pt; float:left">o</P>
<P style="line-height:13pt; margin:0px; text-indent:-2px; font-size:11pt" align=justify>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="line-height:13pt; margin:0px; clear:left" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Wingdings; font-size:11pt; float:left">o</P>
<P style="line-height:13pt; margin:0px; text-indent:-2px; font-size:11pt" align=justify>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="line-height:13pt; margin:0px; clear:left" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Wingdings; font-size:11pt; float:left">o</P>
<P style="line-height:13pt; margin:0px; text-indent:-2px; font-size:11pt" align=justify>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
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<P style="margin:0px; font-size:11pt; page-break-before:always"><B>TABLE OF CONTENTS</B></P>
<P style="margin:0px; font-size:11pt"><B>&nbsp;</B></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=368.2 /><TD width=58.2 /></TR>
<TR><TD style="margin-top:0px" valign=top width=368.2><P style="margin:0px; font-size:11pt">Item 7.01 Regulation FD Disclosure</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt">Item 9.01 Financial Statements and Exhibits</P>
</TD><TD style="margin-top:0px" valign=top width=58.2><P style="margin:0px; font-size:11pt">Page 1</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt">Page 1</P>
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<TR><TD style="margin-top:0px" valign=top width=368.2><P style="margin:0px; font-size:11pt">Signatures</P>
</TD><TD style="margin-top:0px" valign=top width=58.2><P style="margin:0px; font-size:11pt">Page 1</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=368.2><P style="margin:0px; font-size:11pt">Exhibit Index</P>
</TD><TD style="margin-top:0px" valign=top width=58.2><P style="margin:0px; font-size:11pt">Page 2</P>
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<P style="margin:0px; font-size:11pt">&nbsp;</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:96px; font-size:12pt; float:left"><B>ITEM 7.01</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt"><B>REGULATION FD DISCLOSURE</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:11pt" align=justify>On June 14, 2016, Bar Harbor Bankshares mailed to its shareholders its shareholder dividend letter with respect to its previously announced quarterly dividend of $0.27 per share of common stock payable on June 15, 2016 to shareholders of record as of the close of business on May16, 2016. A copy of the Company&#146;s shareholder dividend letter is furnished with this report as Exhibit 99.1 and incorporated herein by reference thereto. &nbsp;Your attention is directed to the shareholder letter in its entirety. </P>
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<P style="margin:0px; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:96px; font-size:12pt; float:left"><B>ITEM 9.01</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt"><B>FINANCIAL STATEMENTS AND EXHIBITS</B></P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-size:11pt; float:left">(d)</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits No. Description</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:11pt; float:left">99.1</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:11pt">Copy of Company&#146;s shareholder dividend letter dated June 15, 2016<FONT style="font-size:12pt">.</FONT></P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:6.133px; margin-bottom:6.133px; font-size:12pt"><B>SIGNATURES</B></P>
<P style="margin-top:6.133px; margin-bottom:6.133px; font-size:11pt">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.</P>
<P style="margin-top:6.133px; margin-bottom:6.133px; font-size:12pt">Dated: <FONT style="font-size:11pt">&nbsp;June 14, 2016</FONT></P>
<P style="margin-top:6.133px; margin-bottom:6.133px; font-size:11pt">BAR HARBOR BANKSHARES</P>
<P style="margin:0px; font-size:11pt" align=justify>/s/ Curtis C. Simard</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:11pt" align=justify>Curtis C. Simard</P>
<P style="margin:0px; font-size:11pt" align=justify>President &amp; Chief Executive Officer</P>
<P style="margin-top:6.667px; margin-bottom:6.667px; font-size:12pt">&nbsp;</P>
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<BR></P>
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<P style="margin:0px; font-size:12pt" align=center><B>EXHIBIT INDEX</B></P>
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<P style="margin:0px; font-size:11pt" align=justify>99.1 &nbsp;&nbsp;Shareholder dividend letter dated <FONT style="font-family:CG Times,Times New Roman">June 15, 2016</FONT></P>
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<TYPE>EX-99
<SEQUENCE>2
<FILENAME>shareholder06142016ex99.htm
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<TITLE>6-15-16 BHB Shareholders.doc (02169999).DOC</TITLE>
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<DIV style="width:624px"><P style="margin:0px; font-size:11pt"><B>EXHIBIT 99.1</B></P>
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<P style="margin:0px; font-size:11pt">June 15, 2016</P>
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<P style="margin:0px; font-size:11pt">Dear Fellow Shareholder:</P>
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<P style="margin-top:0px; margin-bottom:20.2px; font-size:11pt" align=justify>As previously announced, the Board of Directors of Bar Harbor Bankshares (the &#147;Company&#148;) declared a quarterly cash dividend of $0.27 per share of common stock payable June 15, 2016 to shareholders of record as of May 16, 2016. This cash dividend represents an increase of 0.50 cents, or 1.9%, compared with the prior quarter. &nbsp;Further, it represents an increase of 2.0 cents or 8.0% compared with the second quarter of 2015. &nbsp;This represents our twentieth consecutive quarter with a dividend increase.</P>
<P style="margin:0px; font-size:11pt" align=justify>For your convenience, I have enclosed our earnings press release and selected unaudited financial data for the three months ended March 31, 2016.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:7.333px; font-size:11pt" align=justify>With continued very strong earnings reported for the first quarter, I am pleased to present the following highlights for the three months ended March 31, 2016:</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Net income amounted to $4.4 million, which represented an increase of $525 thousand or 13.5% compared with the first quarter of 2015. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; clear:left; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Diluted earnings per share were $0.72, representing an increase of $0.08, or 12.5% compared with the first quarter of 2015.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; clear:left; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Total assets at March 31, 2016 surpassed $1.6 billion, up $42.4 million or 2.7% compared with year-end 2015. We continue to achieve growth across asset categories to balance risk and diversify revenue sources. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; clear:left; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Total loans exceeded the one billion dollar threshold, ending the quarter at $1.01 billion, representing an increase of $16.5 million, or 1.7%, compared with year end.<FONT style="font-family:Helvetica Neue,Arial; font-size:15pt"> </FONT>The market remains competitive as you can see pricing and disciplined loan structure are becoming strained. &nbsp;Our team is holding to our principals, prospecting throughout the state, while staying within our risk appetite. &nbsp;Total non-performing loans continued to decline, falling another $699 thousand, or 10.0% from year end December 31, 2015 to $6.3 million. </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; clear:left; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Tax-equivalent net interest income, our principal revenue source was $11.9 million, up $422 thousand or 3.7% compared with the first quarter of 2015. &nbsp;We continue to consistently communicate the correlation between service and pricing. &nbsp;With most banks in search of earning asset growth, there remains significant pressure on pricing. &nbsp;As we see price pressures play out in loan opportunities, so too must we remain steadfast in our careful approach to funding costs. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; clear:left; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:12.2px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Our return on average equity, return on average assets, and efficiency ratio were 11.18%, 1.10%, and 57.4%, respectively. &nbsp;These industry benchmarks are the result of our strong earnings and reflect the efforts of a committed team that has accepted the challenge to relentlessly pursue the evolution of our Company. &nbsp;The ability to sustain these important ratios while also investing in </P>
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<BR></P>
<P style="margin:0px; padding-left:24px; page-break-before:always">June 15, 2016</P>
<P style="margin:0px; padding-left:24px">Page - 2</P>
<P style="margin-top:0px; margin-bottom:7.333px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; font-size:11pt" align=justify>our company is truly representative of our commitment to our model of balancing growth and earnings.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:11pt; float:left">&#183;</P>
<P style="margin-top:0px; margin-bottom:7.333px; padding-left:48px; text-indent:-2px; font-size:11pt" align=justify>Our capital measures for both the Company and our Bank remain well above applicable regulatory standards for &#147;well-capitalized&#148; financial institutions.</P>
<P style="margin-top:0px; margin-bottom:7.333px; font-size:11pt; clear:left" align=justify>We are very pleased by our ability to carry our momentum forward into the first quarter of 2016. &nbsp;The challenge of aggressive competition is clearly pressuring margins, but we are committed to credit standards and articulating the value imbedded in the high level of service we provide. &nbsp;Our teams are working diligently to be &#147;thought providers&#148; to our customers where possible rather than simply taking requests. &nbsp;This has allowed us to maintain longstanding relationships and win new customers from around the state. &nbsp;Commercial loan growth of $22.6 million while also dramatically contracting non-performing assets is one example of being focused on the right growth, rather than growth for growth&#146;s sake.</P>
<P style="margin-top:0px; margin-bottom:7.333px; font-size:11pt" align=justify>Toward that end, we recently announced that the Company entered into an Agreement and Plan of Merger (&quot;Merger Agreement&quot;) with Lake Sunapee Bank Group (&#147;Lake Sunapee&#148;), with Bar Harbor Bankshares as the surviving corporation (the &#147;Merger&#148;). It is expected that existing Lake Sunapee Bank branches will continue to operate under the Lake Sunapee brand after the Merger is completed. &nbsp;While a fully detailed proxy will be mailed detailing the transaction in greater detail, this opportunity is about seeking diversified growth across a broader footprint while not abandoning our roots as a true community bank. &nbsp;Our two like-minded institutions would be the only community bank operating in the three states and leverage our scale to continue to responsibly invest in our company, our people, and the communities we call home. &nbsp;We are excited about this opportunity and look forward to furthering the dialogue around this unique opportunity. &nbsp;</P>
<P style="margin-top:0px; margin-bottom:7.333px; font-size:11pt" align=justify>The consummation of the Merger is subject to various conditions, including (i)&nbsp;receipt of the requisite approval of the Merger Agreement and Merger by the shareholders of Bar Harbor Bankshares and Lake Sunapee, (ii)&nbsp;receipt of all required regulatory approvals, (iii)&nbsp;the absence of any law or order prohibiting the closing of the Merger, and (iv)&nbsp;the effectiveness of the registration statement to be filed by Bar Harbor Bankshares with the Securities and Exchange Commission (&#147;SEC&#148;) with respect to the Bar Harbor common stock to be issued in the Merger. In addition, each party&#146;s obligation to consummate the Merger is subject to certain other conditions, including the accuracy of the representations and warranties of the other party and compliance of the other party with its covenants. &nbsp;&nbsp;</P>
<P style="margin-top:0px; margin-bottom:7.333px; font-size:11pt" align=justify>As always, we remain committed to our model and to further evolving our institution to improve employee and customer experiences. &nbsp;This is achieved through keeping communication, security, credit discipline, and compliance maintenance at the core of all that we do. &nbsp;Despite many headwinds throughout the industry and the economy, we continue to be proud of the performance we are able to report to you, our valued shareholders. </P>
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<P style="margin:0px; font-size:11pt" align=justify>Respectfully,</P>
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<P style="margin:0px; font-size:11pt" align=justify>Curtis C. Simard</P>
<P style="margin:0px; font-size:11pt" align=justify>President &amp; CEO</P>
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<P style="margin:0px; font-size:11pt" align=justify>Enclosures</P>
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<P style="margin:0px">June 15, 2016</P>
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<P style="margin:0px" align=justify><I>This letter contains certain forward-looking statements with respect to the financial condition, results of operations and business of Bar Harbor Bankshares (the &#147;Company&#148;) for which the Company claims the protection of the safe harbor provided by the Private Securities Litigation Reform Act of 1995, as amended.&nbsp;Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause the Company's actual results to differ significantly from those expressed in any forward-looking statement. You should not rely uncritically on forward-looking statements because they involve significant known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results.</I> <I>&nbsp;Some of the factors that could cause actual results to differ materially from current expectations include failure to complete the proposed Merger, the imposition of adverse regulatory conditions in connection with regulatory approval of the proposed Merger, disruption to the parties&#146; businesses as a result of the announcement and pendency of the Merger, the inability to realize expected cost savings or to implement integration plans and other adverse consequences associated with the Merger, changes in general economic conditions, changes in interest rates, changes in competitive product and pricing pressures among financial institutions within the Company's markets, changes in the financial condition of the the Bar Harbor Bank &amp; Trust's borrowers and other factors discussed in the reports that the Company files with the SEC. The forward-looking statements contained herein represent our judgment as of the date of this report, and we caution readers not to place undue reliance on such statements. For further information, please refer to the Company's reports filed with the SEC.</I></P>
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