Katahdin Trust reports 120% earnings increase

Katahdin Trust Co. has reported a 120 percent increase in six-month earnings for the period ending June 30, when compared to the same period last year. Jon J. Prescott, president and chief executive officer of Katahdin Bankshares Corp., the parent company of Katahdin Trust, said six-month earnings reached $1,006,000, or $2.84 per share.

Prescott said that although the company’s net interest margin had been compressed due to several interest rate cuts this year by the Federal Reserve, net interest income had increased over the previous year by $1,287,000, or 39.5 percent. Noninterest income also increased by $602,000 or 116.9 percent. Noninterest expense grew 50.5 percent to $4,011,000.

On the balance sheet, total assets grew to $241,194,000. Total net loans outstanding reached $144,776,000, an increase of 21.3 percent over the same period last year. Total investments reached $75,596,000. Deposits and repurchase agreements increased nearly 75 percent to $207,016,000.