Katahdin Bankshares Corp. announced that it has declared a cash dividend of 6.8 cents per share for the third quarter of 2007. It represents a 23.6% increase over last year´s third quarter dividend. The dividend will be payable on September 28, 2007 to all shareholders of record as of September 14, 2007.

Katahdin Bankshares Corp. reported earnings results for the second quarter and six months ended June 30, 2007. For the quarter, the company reported earnings of $1,123,000. The earnings represent a 9.4% increase over the same period last year. For six months, net income equaled $2,058,000, a 6.8% increase over the prior year. Total deposits at $313.9 million represented an increase of 8% over the same period in 2006, with the majority of the increase in the brokered deposits category.

Katahdin Bankshares Corp. has declared a cash dividend of 68 cents per share for the first quarter of 2007. The dividend represents an increase of 23.6% over last year´s first-quarter dividend. The dividend will be payable on March 30 to all shareholders of record as of March 16.