CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2017

CONDENSED BALANCE SHEETS



	December 31,
(in thousands)	2017		2016
Assets
Cash due from Bar Harbor Bank and Trust	$	2,400	$	1,302
Investment in subsidiaries	392,073		158,967
Premises and equipment	687		687
Other assets	939		137
Total assets	$	396,099	$	161,093

Liabilities and Shareholders Equity
Subordinated notes	$	38,033	$	—
Accrued expenses	3,425		4,353
Shareholders equity	354,641		156,740
Total Liabilities and shareholders equity	$	396,099	$	161,093

CONDENSED STATEMENTS OF INCOME



	Years Ended December 31,
(in thousands)	2017			2016			2015
Income:
Dividends from subsidiaries	$	13,907		$	6,473		$	5,407
Other	25			—			—
Total income	13,932			6,473			5,407
Interest expense	1,857			—			—
Non-interest expense	2,979			2,949			2,183
Total expense	4,836			2,949			2,183
Income before taxes and equity in undistributed income of subsidiaries	9,096			3,524			3,224
Income tax benefit	(1,210		)	(1,029		)	(657		)
Income before equity in undistributed income of subsidiaries	10,306			4,553			3,881
Equity in undistributed income of subsidiaries	15,687			10,380			11,272

Net income	$	25,993		$	14,933		$	15,153

CONDENSED STATEMENTS OF CASH FLOWS



	Years Ended December 31,
(in thousands)	2017			2016			2015
Cash flows from operating activities:
Net income	$	25,993		$	14,933		$	15,153
Adjustments to reconcile net income to net cash (used) provided by operating activities:
Equity in undistributed income of subsidiaries	(15,687		)	(10,380		)	(11,272		)
Other, net	(312		)	1,336			854
Net cash provided by operating activities	9,994			5,889			4,735

Cash flows from investing activities:
Acquisitions, net of cash paid	1,939			—			—
Purchase of securities	—			—			—
Other, net	—			(1		)	(1		)
Net cash provided by/(used in) investing activities	1,939			(1		)	(1		)

Cash flows from financing activities:
Proceed from issuance of short term debt	—			—			—
Net proceeds from common stock	—			—			—
Net proceeds from reissuance of treasury stock	686			1,073			1,103
Common stock cash dividends paid	(11,505		)	(6,577		)	(6,040		)
Other, net	(16		)	—			—
Net cash used in financing activities	(10,835		)	(5,504		)	(4,937		)

Net change in cash and cash equivalents	1,098			384			(203		)

Cash and cash equivalents at beginning of year	1,302			918			1,121

Cash and cash equivalents at end of year	$	2,400		$	1,302		$	918