At the May 7 annual meeting of Katahdin Bankshares Corp., parent company of Katahdin Trust Company, shareholders voted to increase the number of authorized shares of common stock from 1,000,000 to 20,000,000.
In commenting on the increase in shares Jon J. Prescott, president and CEO of Katahdin Trust Company said, “This shareholder authorization lays the groundwork for the Board making a nine-for-one stock dividend. All shareholders of record as of May 25 will receive nine shares of stock for each share which they currently own, which means that each one share will be subdivided into 10 shares. Recently the company’s stock traded at $180 per share. All other things being equal, the expected trading price would be reduced in the same mathematical proportion, to one-tenth the price that would be in effect if there were no split.”
Prescott also stated that the board felt the price of $180 per share is less convenient for trading purposes than a price of one-tenth that amount and that by splitting the stock this way it will make it more convenient to buy and sell stock and that this action might over time increase the liquidity of the stock overall.
In other business, directors reelected for a three-year term were Robert E. Anderson, of Houlton, who has served as a director since 1989; Peter F. Briggs, of Presque Isle, who has served as a director since 1994; and Steven L. Richardson, of Patten, who has served as a director since 1978. Shareholders also ratified the Board’s selection of Berry, Dunn, McNeil & Parker to serve as independent accountants for the 2007 fiscal year.
Katahdin reports earnings, Katahdin Bankshares Corp., parent company of Katahdin Trust Company, announced second-quarter earnings of $1,123,000.
In commenting on the company’s second-quarter results, Katahdin Trust Company President and CEO Jon J. Prescott said, “Our quarterly earnings of $1,123,000 represented a 9.4 percent increase over the same period last year. For the six months ending June 30, net income equaled $2,058,000, a 6.8 percent increase over the prior year.”
Prescott also stated that loans generated from the company’s Loan Production Office in Scarborough contributed favorably to the company’s second-quarter earnings. Total deposits at $313,905,000 represented an increase of 8 percent over the same period in 2006, with the majority of the increase in the brokered deposits category. Total assets reached an all-time high of $414,799,000, representing an 8.8 percent increase over the prior year. Prescott attributed the increase in assets to loan growth of $28,339,000 or 10.2 percent over the prior year. The company’s first-quarter dividend of $.068 per share represented a 23.6 percent annualized increase over 2006.
Katahdin Bankshares Corp. stock is quoted on the NASDAQ Over-the-Counter Bulletin Board (OTCBB) under the symbol KTHN. Current stock information can be found on the OTCBB Web site at www.otcbb.com. Katahdin Trust Company, the largest community bank in northern Maine, provides banking services to individuals and businesses from 14 offices in: Ashland, Caribou, Eagle Lake, Easton, Fort Fairfield, Houlton, Island Falls, Limestone, Mars Hill, Oakfield, Patten, Presque Isle, Van Buren and Washburn, online www.katahdintrust.com, and operates a Loan Production Office in Scarborough.
