Katahdin Bankshares Caps 2025 With Record Earnings and Growth

HOULTON, Maine – January 28, 2026 – Katahdin Bankshares Corp. (OTCQX: KTHN), the parent company of Katahdin Trust Company, today announced a landmark financial performance for the fourth quarter and full year of 2025, underscoring a period of accelerated growth and robust operational health. The community bank reported fourth-quarter earnings of $3.14 million, or $0.99 per common share, bringing its total net income for 2025 to an impressive $10.7 million.

These results mark a significant upswing for the institution, with the fourth-quarter earnings representing a $476,000 increase over the previous quarter and a substantial $1.4 million jump compared to the same period in 2024. The strong performance also pushed the company's total assets past a major milestone, reaching $1.12 billion by year-end.

"The quarter consisted of excellent loan and deposit growth over both the last quarter and previous year, coupled with strong earnings," stated Jon J. Prescott, Katahdin Trust President and Chief Executive Officer, in the company's official announcement.

A Strong Rebound and Accelerating Momentum

The stellar 2025 results represent a significant turnaround from the previous year. While 2024 was a stable year, the company's net income had seen a decrease to $8.06 million, down from 2023, primarily due to shifts in net interest income and rising operating expenses. However, the bank entered 2025 with renewed vigor, setting the stage for a powerful comeback.

The recovery began to take shape early in the year. In the first quarter of 2025, net income had already climbed to $2.38 million, a 35.6% increase over the prior quarter. This momentum was fueled by consistent growth in the bank's core operations, with total assets reaching $1.08 billion by the end of March 2025. This trajectory continued throughout the year, culminating in the record-setting fourth quarter that solidified 2025 as a banner year for the Maine-based institution.

The year-over-year growth is particularly noteworthy. The $10.7 million in net income for 2025 represents a more than 32% increase over the $8.06 million reported for the full year 2024, signaling not just recovery but a significant expansion of the bank's profitability and market position.

Fueling Growth Through Strategic Focus

At the heart of Katahdin Trust's success is a deliberate and well-executed strategy focused on its fundamental banking activities: lending and deposits. CEO Jon J. Prescott's emphasis on "excellent loan and deposit growth" points to the core drivers behind the financial upswing. Throughout 2025, the bank prioritized attracting new customer balances, a strategy that proved highly effective in bolstering its deposit base in a competitive environment.

This strong deposit foundation enabled the bank to expand its lending activities across a diverse portfolio that is deeply integrated with Maine's economy. Katahdin Trust provides a comprehensive suite of loan products, including traditional residential mortgages and commercial lending, such as business lines of credit and SBA loans.

More critically, the bank has cultivated expertise in sectors vital to the region. It offers specialized financing solutions for agriculture and forest products, supporting farmers, loggers, and landowners with customized loans for equipment, land development, and expansion. This focus demonstrates a commitment to the state's traditional industries. Furthermore, the bank provides tailored services for real estate professionals and municipal banking, positioning itself as a key financial partner for local economic development and community infrastructure projects.

Navigating the Broader Economic Landscape

Katahdin's performance is even more impressive when viewed within the context of the regional banking sector. While navigating the same interest rate fluctuations and competitive pressures as its peers, the bank successfully managed its net interest margin and grew its assets. This ability to thrive suggests a resilient business model rooted in strong local relationships and sound financial management.

Comparatively, Katahdin Bankshares Corp. holds its own against peer institutions. While metrics fluctuate, its performance indicates a strong operational efficiency. In a move signaling confidence in its financial health and future prospects, the company's board approved a stock buyback program of up to $2.0 million in January 2026. Such programs are often seen as a sign that a company's leadership believes its stock is undervalued and serves to enhance shareholder value.

This confidence appears well-founded. The bank's ability to consistently grow its loan and deposit base in a measured way speaks to a deep understanding of its market and a disciplined approach to risk, key attributes for long-term stability and success in the community banking space.

A Century-Old Bank Deepening Its Community Roots

Founded in 1918, Katahdin Trust has long intertwined its corporate identity with the well-being of the Maine communities it serves. The bank's recent financial success translates directly into a greater capacity to support local economies. With over $1.12 billion in assets, the institution is a significant source of capital for small businesses, aspiring homeowners, and municipal projects across its 16 locations.

The bank's impact extends beyond financial transactions. It is a major local employer, with nearly 180 people on its payroll throughout Maine. The institution also fosters a strong culture of community service and philanthropy. In 2023 alone, its employees dedicated an impressive 6,700 hours volunteering for 186 different non-profit organizations and community programs.

Initiatives like the "Casual Because We Care" program channel employee contributions to vital local causes, while the bank's Financial Literacy Program (FL!P) aims to empower residents with essential financial knowledge. This deep-seated commitment to community development, combined with its robust financial performance, reinforces Katahdin Trust's role not just as a bank, but as a cornerstone institution dedicated to fostering prosperity throughout the state of Maine.