The First Bancorp(US:FNLC)2020-05-08 16:12Financial Performance - Net income for Q1 2020 was $6,495,000, reflecting a 5.5% increase from $6,156,000 in Q1 2019[16]. - Basic earnings per common share increased to $0.60 for Q1 2020, up from $0.57 in Q1 2019, marking a growth of 5.3%[16]. - Net interest income for the three months ended March 31, 2020, was $14,918,000, an increase of 15.6% compared to $12,899,000 for the same period in 2019[16]. - Total non-interest income rose to $4,221,000 in Q1 2020, a 34.3% increase from $3,144,000 in Q1 2019[16]. - The total comprehensive income for the three months ended March 31, 2020, was $5,866,000, compared to $9,206,000 for the same period in 2019, indicating a decline in overall income[21]. - The efficiency ratio for the first quarter of 2020 was 58.12%, up from 50.45% in the same period of 2019, impacted by restructuring charges[183]. Asset and Equity Growth - Total assets increased to $2,136,396,000 as of March 31, 2020, up from $2,068,796,000 at December 31, 2019, representing a growth of 3.3%[14]. - The total shareholders' equity reached $215,257,000 as of March 31, 2020, compared to $212,508,000 at December 31, 2019, an increase of 1.3%[14]. - Total shareholders' equity increased to $215,257,000 as of March 31, 2020, up from $197,787,000 at the end of 2019, reflecting a growth of approximately 8.8%[21]. - The book value per common share rose to $19.71 as of March 31, 2020, compared to $19.50 at December 31, 2019, an increase of 1.1%[14]. Loan Portfolio and Quality - As of March 31, 2020, the company's total loan portfolio amounted to $1,344,208,000, an increase from $1,297,075,000 as of December 31, 2019, representing a growth of approximately 3.9%[36]. - The company reported a total of $21,829,000 in past-due loans as of March 31, 2020, with 90+ days past due loans amounting to $10,321,000[37]. - Non-accrual loans as of March 31, 2020, totaled $10,048,000, a decrease from $16,649,000 as of December 31, 2019[40]. - The allowance for impaired loans with a recorded allowance was $992,000 as of March 31, 2020[42]. - The total past-due loans as of March 31, 2019, were $11,280,000, with $3,017,000 being 90+ days past due[40]. Investment Securities - As of March 31, 2020, the total amortized cost of investment securities was $341,592,000, with an estimated fair value of $349,248,000, reflecting a net unrealized loss of $352,000[29]. - The total investment securities amounted to $664,514,000, an increase from $651,108,000 at December 31, 2019[202]. - The total securities available for sale decreased to $312,928,000 as of March 31, 2020, down from $360,520,000 at December 31, 2019[202]. - The total securities to be held to maturity increased to $341,592,000 as of March 31, 2020, compared to $281,606,000 at December 31, 2019[202]. Allowance for Loan Losses - The allowance for loan losses as of March 31, 2020, totaled $11,858,000, with specific reserves of $992,000 and general reserves of $1,899,000[61]. - The provision for loan losses was $400,000 for Q1 2020, compared to $375,000 in Q1 2019, indicating a slight increase in risk management[16]. - The qualitative portion of the allowance for loan losses increased to 0.51% of related loans as of March 31, 2020, compared to 0.48% as of December 31, 2019, reflecting a $585,000 increase due to macroeconomic impacts from the COVID-19 pandemic[64]. Impact of COVID-19 - The company noted that the ongoing COVID-19 pandemic may adversely impact its financial position and future operations, particularly in the tourism-dependent State of Maine[24]. - The company expects more severe impacts from COVID-19 in Q2 2020 and beyond, although Q1 results were not significantly affected[175]. Interest Rate Management - The Bank's interest rate risk management strategy aims to minimize fluctuations in earnings and cash flows due to interest rate volatility[115]. - The Bank incurred one-time charges of $1.76 million during Q1 2020 related to the restructuring of interest rate swap positions[117]. - As of March 31, 2020, the total notional amount of interest rate swap agreements was $220 million, with a fair value loss of $6.042 million[117]. Non-Interest Income and Expense - Non-interest income for the three months ended March 31, 2020 was $4.2 million, an increase of $1.1 million or 34.3% year-over-year, with a 15.7% increase in investment management income and a 70.3% increase in mortgage banking revenue[193]. - Non-interest expense for the same period was $11.0 million, up $2.6 million or 31.5% from the previous year, primarily due to $1.8 million in charges for restructuring interest rate swap positions[194].