KTHN Katahdin Bankshares Corporation (QX)

Katahdin Bankshares Corp. (OTCBB:KTHN) parent company of Katahdin Trust Company, today announced second quarter earnings of $1,339,000, a $215,000 increase or 19.1% over the first quarter of 2010. "We are extremely pleased with our second quarter results which represent the strongest quarter in the history of the Bank," said Jon J. Prescott President & CEO of Katahdin Trust Company. As of June 30 net income of $2,463,000, before preferred stock dividends, was up 38.5% over the first half of 2009. Prescott attributed a large part of the Bank's increased earnings to loan growth and continued strong operating performance.   

Total loans at $405,850,000 represented an increase of $29,602,000 or 7.9% over the second quarter of 2009. Deposits increased by $30,621,000 or 8.4% over the same period last year.   

Total assets reached a record high of $509,786,000.   

Prescott also stated that expansion plans were on target for the opening of a new office August 2 in Bangor at the Broadway Shopping Center.   

The Company issued a second quarter cash dividend of $.082 per share which was paid on June 28, 2010.  

Katahdin Bankshares Corp. stock is quoted on the Over-the-Counter Bulletin Board (OTCBB) under the symbol KTHN. Current stock information can be found on the OTCBB website at www.otcbb.com. Katahdin Bankshares Corp. recently received recognition by U.S. Banker magazine, for the 4th consecutive year, as one of the top 200 community banks in the country. 

Established in 1918, Katahdin Trust Company provides banking services to individuals and businesses from 14 offices in northern Maine, online at www.katahdintrust.com, and operates commercial loan offices in Bangor and Scarborough.  

The Katahdin Bankshares Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7340

CONTACT:  Katahdin Trust Company
          Matthew Nightingale, Senior Vice President
          (207) 521-0455, Ext. 110