Summary of BAR HARBOR BANKSHARES

Item 2.02 Results of Operations and Financial Condition Page 1

Item 2.06 Material Impairments Page 1

Item 9.01 Financial Statements and Exhibits Page 2

Signatures Page 2

Exhibit Index Page 2

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

ITEM 2.06 MATERIAL IMPAIRMENTS

On February 20, 2009, Bar Harbor Bankshares (the "Company") issued a press release announcing that as a result of obtaining information relative to collateral loss experience on certain of its non-agency 1-4 family mortgage-backed securities after its February 2, 2009, announcement of year-end 2008 results of operations, and before filing its 2008 Annual Report on Form 10-K, it will record in the fourth quarter an other-than-temporary impairment charge with a pre-tax impact on earnings amounting to $1.4 million. This non-cash charge will reduce the Company's previously announced 2008 net income by $876 thousand, or $0.29 per diluted share.

Because these investment securities were carried at fair value at December 31, 2008, estimated losses on these investment securities, net of tax, were previously recorded in unrealized losses on securities available for sale within accumulated other comprehensive loss, a component of total shareholders' equity on the Company's consolidated balance sheet. This non-cash charge will reduce the Company's full-year 2008 net income to $7.7 million, or $2.57 per diluted share, from $8.6 million, or $2.86 per diluted share, as previously announced. For the fourth quarter of 2008, this non-cash charge will reduce its previously announced net income to $1.4 million, or $0.48 per diluted share, from $2.3 million, or $0.78 per diluted share.

The conclusion by the Company that it would record a non-cash other-than-temporary impairment charge related to the securities portfolio was discussed by the Company's Board of Directors at its February 15, 2009, meeting and the authorized officers concluded on February 18, 2009, to recognize $1.4 million in the Company's 2008 results of operations.

A copy of the Company's press release is attached as Exhibit 99.1 and is incorporated herein by reference.