Katahdin Trust parent reports Q4 earnings up, announces stock buyback
COURTESY / KATAHDIN TRUST
Katahdin Bankshares Corp., the Houlton-based parent company of Katahdin Trust Co., reported record 2020 earnings.
Katahdin Bankshares Corp. (OTCQX: KTHN), parent company of Katahdin Trust Co., on Tuesday said reported that earnings for the fourth quarter of 2020 totaled $3.4 million, or $1.01 per share. The company's total assets reached $937 million.
“It is remarkable what we have been able to achieve this past quarter,” Jon J. Prescott, Katahdin Trust’s president and CEO, said in a news release. “Not only did we experience solid financial results, but our team also remains completely dedicated to helping our customers, small businesses, and local communities.”
Additionally, the Katahdin Bankshares board of directors approved a stock buyback program that authorizes the purchase up to $2 million of the company’s outstanding shares of common stock over the next year. Shares may be repurchased by the company or may be purchased by Katahdin Trust Co.’s employee stock ownership plan.
In mid-morning trading, shares of Katahdin Bankshares were up 1.82%, to $19.00.
Record earnings, pandemic help
For 2020, net income totaled $9.5 million, an increase of $1.8 million over 2019. This represented record earnings for the company.
Earnings per share increased to $2.88, growing 24.7% over last year.
“We are pleased with the results of the company,” Prescott wrote in a letter to shareholders. “However, it is important to note that 2020 was a unique year, with several nonrecurring items that bear discussion.”
That includes an increase in total assets to $937 million, representing growth of $86.1 million over 2019. Deposits increased during 2020 by $94.6 million to a total of $809 million.
“This was driven in large part by the bank originating $73.3 million in SBA [Small Business Administration] Paycheck Protection Program (PPP) loans during the year,” Prescott wrote. “As of Dec. 31, $46.095 million remain outstanding.”
The bank also worked in other ways to assist borrowers dealing with financial hardship as a result of the pandemic.
“Since the beginning of the COVID-19 pandemic in the spring, Katahdin has worked with customers displaying financial difficulties by deferring loan payments,” Prescott continued. “At the peak, the bank deferred payments for approximately 170 borrowers having an aggregate principal amount of $99.8 million. As of year-end, only seven borrowers remained deferred with total principal balances of $1.9 million.”
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