The First Bancorp(FNLC) - 2024 Q2 - Quarterly Report

Financial Performance - The company reported a net income of $12,192,000 for the six months ended June 30, 2024, down from $15,365,000 in the same period last year, a decrease of 20.2%[9]. - Basic earnings per common share for the six months ended June 30, 2024, were $1.10, compared to $1.40 in 2023, a decline of 21.4%[9]. - Net income for the six months ended June 30, 2024, was $12,192,000, compared to $15,365,000 for the same period in 2023, representing a decrease of approximately 20%[15]. - The company reported a comprehensive income of $8,836,000 for the six months ended June 30, 2024, compared to $16,443,000 in 2023, indicating a decrease of about 46%[11]. - The company reported a net loss on disposal of premises and equipment of $9,000 for the six months ended June 30, 2024, compared to a gain of $1,000 in 2023[15]. Asset and Loan Growth - Total assets increased to $3,084,944,000 as of June 30, 2024, up from $2,874,815,000 a year earlier, representing an increase of 7.3%[6]. - Net loans rose to $2,222,977,000, compared to $2,037,488,000 in the same period last year, reflecting an increase of 9.1%[6]. - Total loans as of June 30, 2024, are composed of 39.1% fixed-rate loans and 60.9% adjustable-rate loans[188]. - The loan portfolio increased by $118.2 million or 5.6% in the six months ended June 30, 2024[156]. - As of June 30, 2024, total loan balances reached $2,247,670,000, an increase from $2,129,454,000 as of December 31, 2023, representing a growth of approximately 5.5%[39]. Deposits and Equity - Total deposits decreased slightly to $2,578,080,000 from $2,599,662,000 at the end of 2023, a decline of 0.8%[6]. - Total shareholders' equity increased to $244,668,000 as of June 30, 2024, up from $232,003,000 as of June 30, 2023, reflecting an increase of about 5.5%[13]. - Cash dividends declared increased to $0.71 per share in 2024, up from $0.69 per share in 2023, indicating a rise of approximately 2.9%[11]. Interest Income and Expenses - Total interest income for the six months ended June 30, 2024, was $71,546,000, up from $60,098,000 in 2023, marking an increase of 18.8%[9]. - Net interest income after provision for credit losses was $29,956,000 for the six months ended June 30, 2024, compared to $32,699,000 in 2023, a decrease of 8.4%[9]. - Interest paid increased to $40,905,000 for the six months ended June 30, 2024, compared to $26,369,000 in 2023, reflecting an increase of approximately 55%[16]. - The tax-equivalent net interest income for the six months ended June 30, 2024, was $31,310,000, compared to $34,680,000 for the same period in 2023[151]. Credit Losses and Allowances - The allowance for credit losses was $24,693,000 as of June 30, 2024, slightly up from $23,465,000 a year earlier, indicating a 5.2% increase[6]. - The total allowance for credit losses (ACL) as of June 30, 2024, was $24,693,000, with specific reserves on loans evaluated individually amounting to $241,000[59]. - The provision for credit losses was $638,000 for the first six months of 2024, an increase from $580,000 in the same period of 2023[194]. - The total ending allowance balance for credit losses was $902,000 for state and political subdivisions as of June 30, 2024[33]. Securities and Investments - As of June 30, 2024, the amortized cost of available-for-sale securities was $328,398,000, with an estimated fair value of $273,501,000, reflecting unrealized losses of $54,966,000[21]. - The company reported unrealized losses of $55.0 million on available-for-sale (AFS) securities, representing 16.74% of the amortized cost of the total securities portfolio as of June 30, 2024[177]. - The fair value of mortgage servicing rights was $3,281,000, down from $3,639,000 on June 30, 2023, reflecting a decrease of approximately 9.8% year-over-year[110]. - The company has not recognized any credit losses on securities currently held, indicating a focus on investment-grade securities[149]. Loan Portfolio Quality - The company monitors the performance of modified loans to assess the effectiveness of its modification efforts[52]. - Nonperforming loans as a percentage of total loans increased to 0.11% as of June 30, 2024, compared to 0.10% at December 31, 2023, and 0.08% at June 30, 2023[199]. - The overall loan delinquency ratio improved to 0.15% at June 30, 2024, down from 0.18% at December 31, 2023, and up from 0.14% at June 30, 2023[201]. - The company has maintained a strong credit quality with a majority of loans rated as pass (risk rating 1-5) across various categories[71]. Economic and Market Conditions - The ongoing geopolitical conflicts and economic uncertainties are expected to negatively impact the company's operating results, although the extent is currently indeterminable[20]. - The company highlighted various risks that could affect future performance, including economic conditions and changes in interest rates[144]. - The company continues to monitor the credit quality of its investments through major rating providers and market movements, ensuring all AFS securities are deemed investment grade[25].