Katahdin Bankshares Corp. Reports First Quarter Results

Rhea-AI Summary

Katahdin Bankshares Corp. (OTCQX: KTHN) reported first-quarter earnings of $1.8 million, translating to $0.54 per common share, marking a 25.4% decrease from the previous year. The decline is primarily attributed to reduced income from SBA PPP loans, which decreased interest and fee income by $590,000. Despite the drop, total assets grew to $963 million, a $21.6 million increase, while total deposits rose by $34.1 million. The outlook remains optimistic as the bank aims to support customer financial goals.

Positive

• Total assets increased by $21.6 million to $963 million.
• Total deposits grew by $34.1 million compared to Q1 2021.

Negative

• Net income decreased by $603,000, or 25.4%, compared to Q1 2021.
• Reduction in SBA PPP loans led to a $590,000 decrease in interest and fee income.
• Higher non-interest expenses due to increased salary and occupancy costs.

HOULTON, Maine, April 19, 2022 /PRNewswire/ -- Katahdin Bankshares Corp. (OTCQX: KTHN), parent company of Katahdin Trust Company, a full-service community bank in Maine, has announced first-quarter earnings of $1.8 million, or $0.54 per common share.

Although net income was down 25.4%, or $603,000, from first quarter 2021, much of the drop was anticipated. Results were driven by a reduction in SBA Paycheck Protection Program (PPP) loans, back-to-back swaps, and secondary market loan sales, coupled with higher non-interest expenses in salary and occupancy costs.

"PPP loans and related fee income has drawn to a close, reducing our interest and fee income by $590,000 alone," explains Jon J. Prescott, Katahdin Trust Company President and Chief Executive Officer.

The Bank's total assets reached $963.0 million, an increase of $21.6 million, while total deposits increased by $34.1 million over the first quarter of 2021.

"We end the first quarter of 2022 optimistically, and proudly continue to assist our customers with their personal and business financial goals — now and into the future," added Prescott.

For more information and to view a copy of their most recent quarterly financial report, visit: KatahdinTrust.com/Shareholder-Relations

About Katahdin Bankshares Corp.
Katahdin Bankshares Corp. is the bank holding company of Katahdin Trust Company. Founded in 1918, Katahdin Trust is a community bank based in Houlton, Maine with more than $963 million in assets and 16 banking offices that serve Aroostook, Penobscot, and Cumberland counties. The Bank has nearly 180 employees and, in 2021, was named one of the Best Places to Work in Maine for the fourth year in a row. Katahdin Bankshares Corp. common stock is quoted on the OTC Markets (OTCQX) under the symbol KTHN. Learn more about the Company and its subsidiary bank at www.katahdintrust.com and follow Katahdin Trust on Facebook, Twitter, LinkedIn, and Instagram.

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SOURCE Katahdin Bankshares Corp.

FAQ

What were Katahdin Bankshares Corp's Q1 earnings for 2022?

Katahdin Bankshares Corp. reported first-quarter earnings of $1.8 million, or $0.54 per common share.

How much did net income decrease for KTHN in Q1 2022?

Net income for KTHN decreased by 25.4%, totaling $603,000 less than Q1 2021.

What contributed to the decline in earnings for KTHN?

The decline was driven by reduced income from SBA PPP loans and increased non-interest expenses.

What are the total assets of Katahdin Bankshares Corp. as of Q1 2022?

Total assets reached $963 million, an increase of $21.6 million from the previous year.

How much did total deposits increase for KTHN in Q1 2022?

Total deposits increased by $34.1 million compared to the first quarter of 2021.