Two Maine banks see earnings rise in Q3, though economy's track poses concerns

File photo / Courtesy, Katahdin Trust Katahdin Bankshares Corp. is the Houlton-based parent company of Katahdin Trust Co....

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By Jessica Hall

Two Maine banks representing more than 30 branch offices and nearly $3.5 billion in assets released strong earnings reports on Wednesday.

Katahdin Bankshares Corp. (OTCQX:KTHN), parent of Katahdin Trust Co., said its third quarter earnings rose 22%, while The First Bancorp. (Nasdaq: FNLC) posted a 27% increase in earnings.

Katahdin cautioned that the industry faces some headwinds going forward.

The Houlton-based Katahdin Bankshares said third-quarter earnings rose to $2.66 million, or 81 cents a share, compared with $2.45 million, or 75 cents a share a year ago. Total assets rose to $945.5 million, up from $939.2 million a year ago.

The banking industry in general has expressed concerns about the track of the economy next year and a potential rise in interest rates, and Katahdin's top executive echoed some of that.

“We hope to maintain our strong results through the remainder of 2021, although looking ahead the industry faces some headwinds,” said Jon Prescott, Katahdin Trust president and CEO.

The bank benefitted from fees received from processing Paycheck Protection Program loans during the COVID-19 pandemic, but those fees will taper off and not recur in 2022, Prescott said.

“While improving significantly since the drop off in 2020, the economy remains a question mark and varies widely by region,” Prescott said.

Katahdin Bank, founded in 1918, has 16 locations in Aroostook, Penobscot and Cumberland counties. The bank has nearly 180 employees.

The First Bancorp also sees gains

In Damariscotta, the First Bancorp, parent of First National Bank, said third-quarter net income was $9.0 million, or 82 cents a share, compared with $7.1 million, or 65 cents a share, a year ago.

Total assets rose to $2.5 billion as of Sept. 30, up from $2.3 billion a year ago.

“The First Bancorp continues to execute on its strategic initiatives as evidenced by record quarterly and year-to-date earnings," said Tony McKim, president and CEO. "Growth on both sides of the balance sheet has exceeded expectations to date in 2021."

Founded in 1864, First National Bank has 17 locations in midcoast and eastern Maine. First National Wealth Management, a division of the bank, provides investment management and trust services to individuals, businesses and municipalities.