Katahdin Bankshares Corp. (OTCQX: KHTN), the Houlton-based parent company of Katahdin Trust Co. said it has board approval to buy back up to $2 million of its own shares in 2026.
Outstanding shares of common stock may be repurchased by Katahdin Trust’s Employee Stock Ownership Plan by Dec. 31, according to a news release.
Any transactions may be initiatives at the company’s discretion or the ESOP, subject to market conditions and other considerations. Repurchases or ESOP purchases may be made through the open market, through block trades or through previously negotiated transactions.
Share purchases may be commenced or suspended at any time without prior notice, and the company said that there can be no assurances as to how many shares it will repurchase – if any – or at what prices the purchases will be made, according to the Jan. announcement.
The board can also alter the terms of the program at any time, including a change in the announced share authorization level or to extend or terminate the buyback program.
Share repurchases automatically boost arnings per share by reducing the number of outstanding shares, which can in turn drive up share value over time although that is not a given, according to Investopedia.
Kathahdin Bankshares have a current market value of around $92.3 million in over-the-counter trading.
Katahdin Trust, founded in 1918, has more than $1.09 billion in assets and 16 locations across Aroostook, Penobscot and Cumberland counties.
The company is ranked 17th among banks with the largest market share in Maine in the 2026 Mainebiz Book of Lists. Rankings are based on Maine deposits as of last June.
Editor’s note: Because of an editing error, the Mainebiz Daily Report on Jan. 6 picked up an outdated version of this story.