BAR HARBOR BANKSHARES AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED) MARCH 31 MARCH 31 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $1,308,309 $1,191,776 ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: DEPRECIATION 138,008 134,126 PROVISION FOR LOAN LOSSES 240,000 240,000 NET SECURITIES (GAINS) LOSSES 0 0 NET AMORTIZATION OF BOND PREMIUM 50,191 168,318 NET CHANGE IN OTHER ASSETS (663,800) (1,505,852) NET CHANGE IN OTHER LIABILITIES 295,982 682,492 NET CASH PROVIDED BY OPERATING ACTIVITIES 1,368,690 910,860 CASH FLOWS FROM INVESTING ACTIVITIES: PROCEEDS FROM MATURITIES AND PRINCIPAL PAYMENTS ON INVESTMENTS INCLUDING MORTGAGE BACKED SECURITIES 3,397,489 5,702,793 PROCEEDS FROM THE SALE OF INTEREST BEARING INVESTMENTS 0 3,813,099 PROCEEDS FROM THE SALE OF EQUITY SECURITIES 0 0 1,069,043, 1,059,743,7 PURCHASE OF INVESTMENT SECURITIES 413 66 1,069,204, 1,071,592,5 NET LOANS MADE TO CUSTOMERS 680 01 CAPITAL EXPENDITURES (227,169) 9,581,659 NET CASH USED IN INVESTING ACTIVITIES (6,065,235) (7,787,248) CASH FLOWS FROM FINANCING ACTIVITIES: NET CHANGE IN DEPOSITS 1,070,731,843 1,066,130,786 INCREASE IN REPURCHASE AGREEMENTS 9,830,919 3,726,553 NET CHANGE IN OTHER BORROWINGS (3,000,000) 12,000,000 PROCEEDS FROM SALE OF CAPITAL STOCK 61,828 38,988 PAYMENTS OF DIVIDENDS 0 0 NET CASH PROVIDED BY FINANCING ACTIVITIES 3,882,766 8,154,503 NET INCREASE IN CASH AND CASH EQUIVALENTS 1,072,928,045 1,278,115 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 9,714,713 6,134,371 CASH AND CASH EQUIVALENTS AT END OF QUARTER $8,900,934 $7,412,486 CASH AND CASH EQUIVALENTS AT END OF YEAR SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: CASH PAID DURING THE YEAR FOR: INTEREST $2,342,962 $1,679,733 INCOME TAXES $115,681 $115,681 The accompanying notes are an integral part of these consolidated financial statements.