Katahdin Trust parent posts flat earnings for 2021
COURTESY / KATAHDIN TRUST
Katahdin Bankshares Corp., the Houlton-based parent company of Katahdin Trust Co., reported flat 2021 earnings.
Katahdin Bankshares Corp. (OTCQX: KTHN), parent of Katahdin Trust Co., posted flat earnings for 2021 as the bank holding company grappled with higher expenses.
For the full year 2021, net income totaled $9.47 million, or $2.88 a share, compared with 2020 earnings of $9.52 million, also equal to $2.88 a share.
Assets totaled $940.5 million in 2021, up slightly from $937 million in the prior year.
Total assets exceed pre-pandemic asset levels of $850.9 million as of year-end 2019. Asset levels continued to up, with higher levels of cash due to strong deposit growth outpacing loan growth, the bank holding company said.
During 2021, the bank realized $2.3 million in income from federal Paycheck Protection Program loan origination, which added to profitability. Asset growth was minimal as PPP loans were paid down. Loan growth, apart from PPP, was strong at $24.3 million, the Houlton-based company said.
On the expense side, salaries and employee benefits rose by $911,000.
“We saw considerable wage inflation due to the shrinking labor market. Higher wages are often required to attract and retain talent at many levels throughout the bank. Like many other financial institutions and industries across the country, we expect this trend to continue for the foreseeable future,” Katahdin said.
As of year-end 2021, PPP loans outstanding totaled $5.4 million, down $40.6 million from year-end 2020. Katahdin originated 935 PPP loans totaling $100.2 million throughout 2020 and 2021 combined. Over 80% of the loans issued were less than $100,000 in size, Katahdin said.
Katahdin Trust, founded in 1918, has 16 locations in Aroostook, Penobscot and Cumberland counties. The bank has nearly 180 employees.
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