Katahdin Trust parent’s mixed Q2 report card shows growth, contractions
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Katahdin Trust Co.’s Q2 earnings totaled $2.52 million, an increase of $144,000 over the previous quarter, and a 26.1% increase over the second quarter of 2024.
Katahdin Bankshares Corp. (OTCQX: KTHN), the parent company of Katahdin Trust Co., announced 2025 second-quarter earnings of $2.52 million, or 79 cents per common share.
The results represent an increase of $144,000 or 6.1% over the previous quarter, and a 26.1% increase over the second quarter of 2024.
Total assets reached $1.09 billion, a $49 million increase over the same period in 2024.
“We are pleased with these results and look to build on them as we continue through 2025,” said Jon Prescott, Katahdin Trust’s president and CEO.
Strong interest income
For the quarter, net income was $2.5 million, an increase of 6.1% over the first quarter of 2025, and 26.1% over the second quarter of 2024.
Net income for the first six months of 2025 totaled $4.9 million, an increase of $860,000 or 21.3% over the period ended June 30, 2024.
Net interest income was the main driver of the increase, totaling $18.6 million through June 30, 2025, rising from $16.5 million during the same period in 2024. That was the result of an expanding net interest margin.
Ups and downs
But results were mixed in the loan and non-interest income departments.
The bank experienced loan growth of $31.2 million over the past year, although loans contracted slightly during the second quarter of 2025.
Deposits ended the quarter at $929.9 million, higher than in the second quarter of 2024 by $70.2 million. Much of the deposit growth resulted from a combination of new and expanding customer relationships.
Through June 30, 2025, non-interest income exceeded last year by $204,000 or 7.9%. Non-interest income was off from the linked quarter by $256,000 across several categories. Non-interest expense was down slightly from the first quarter of 2025 but rose 10.3% year-over-year. About 65% of the increased year-over-year non-interest expenses were related to salary and benefit costs, with the balance stemming from various other operational cost increases.
Katahdin Bankshares Corp. is the bank holding company of Katahdin Trust Co. Founded in 1918, Katahdin Trust is a community bank based in Houlton, with 16 locations and more than $1.087 billion in assets.
Katahdin Trust ranks No. 16 on the list of largest Maine-based banks, according to the 2025 Mainebiz Book of Lists, based on assets as of June 30, 2024.
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