Katahdin Bankshares reaches milestone

    Katahdin Bankshares Corp., parent company of Katahdin Trust Company, announced first-quarter earnings of $935,000.
    In commenting on the Company’s first-quarter results, Katahdin Trust Company President and CEO Jon J. Prescott said, “Total assets eclipsed the $400 million mark for the first time in the company’s history, ending the quarter at $401,729,000.”  
    Prescott attributed the asset growth in large part to loan growth of 8.9 percent with total loans ending the quarter at $295,235,000.  
    Total deposits at $308,458,000 represented a 3.8 percent increase over the same period in 2006.  
    “Our first-quarter net income of $935,000 represented a slight increase over the first quarter in 2006,” said Prescott.  “The relatively flat total reflects continuing pressure on our net interest margin which is largely the result of increased funding costs in both retail and wholesale deposits.”       
    Prescott also stated that the company’s acquisition of The Maine Financial Group, Inc., a loan production office in Scarborough, was complete and that loans generated from this location should help to offset shrinkage in the company’s net interest margin, thus contributing favorably to earnings.        
    The company’s first-quarter dividend of $.68 per share represented a 23.6 percent increase over 2006.      
    Katahdin Bankshares Corp. stock is quoted on the NASDAQ Over-the-Counter Bulletin Board (OTCBB) under the symbol KTHN. Current stock information can be found on the OTCBB Web site at www.otcbb.com.
    Katahdin Trust Company, the largest community bank in northern Maine, provides banking services to individuals and businesses from 14 offices located in Ashland, Caribou, Eagle Lake, Easton, Fort Fairfield, Houlton, Island Falls, Limestone, Mars Hill, Oakfield, Patten, Presque Isle, Van Buren and Washburn, online at www.katahdintrust.com, and operates a loan production office, Maine Financial Group, in Scarborough.