HOULTON, Maine — Katahdin Bankshares Corp., parent company of Katahdin Trust, reported on Friday that its total assets, loans and deposits reached record levels in the third quarter, which ended Sept. 30.
The bank’s deposits grew to $482.1 million during the third quarter, a 13.2 percent increase from the same quarter last year.
Its total assets — which consist of loans, mortgages and securities — grew to $577 million, an increase of 9.5 percent over the prior year.
Jon Prescott, the bank’s CEO, attributed the increase in assets to “quite strong” loan growth. As of Sept. 30, the bank had total loans of $484.4 million, an increase of 12.2 percent from the same time last year. “Currently we are experiencing a good amount of growth throughout our entire market area in both the commercial and residential portfolios,” Prescott wrote in a letter to shareholders.
The bank also announced an increase in its earnings per common share of 5 cents, or 5.8 percent over the same nine months of 2011, totaling net income of $3.2 million for the nine-month period. By entering the U.S. Treasury’s Small Business Lending Fund program, Prescott said the bank “significantly reduced preferred stock dividends, which leaves more net income available for capital.”
However, the bank’s net income during the third quarter decreased 10 percent, from $1.2 million during last year’s quarter to roughly $1.1 million. Prescott said two factors account for the decrease. “First, we have experienced higher provisioning for loan losses in 2012 due to very strong loan portfolio growth,” he wrote in his letter. “Second, noninterest expense has increased 6.2 [percent], which is largely associated with our new branches.”