Katahdin Trust Co. earnings up 50 percent

HOULTON – Katahdin Bankshares Corp., parent company of Katahdin Trust Co., reported record earnings of $706,000 for the second quarter of 2002, a 50 percent increase over same period the previous year. For the six-month period ending June 30, net income at $1,331,000 was up 32 percent over last year.

President and CEO Jon J. Prescott attributed the earnings increase to growth in the volume of earning assets as well as increased efficiency. Total assets reached a record high at $268,568,000, up 11.4 percent over last year. Loans outstanding (net of loss reserves) reached $167,573,000, an increase of 15.8 percent over the same period last year, and deposits and repurchase agreements increased more than 8 percent to $223,680,000.

The bank’s second-quarter dividend of 30 cents per share represented an 11 percent increase over the previous year. Book value per share as of June 30, 2002, was $45.23 compared to $37.60 the previous year.

The bank recently completed two major expansions with the opening of its new Presque Isle facility and the opening of Northern Peak Financial Services, a division of Katahdin Trust Co. created through a partnership with UVEST Investment Services, that enables the bank to expand its services to include financial planning, brokerage, stocks, bonds, mutual funds and insurance products such as annuities, life, disability and long-term care.