The First Bancorp(FNLC) - 2020 Q2 - Quarterly Report

Financial Performance - Net income for the six months ended June 30, 2020, was $13,064,000, a 4.1% increase from $12,551,000 in the same period of 2019[16]. - Basic earnings per common share increased to $1.20 for the six months ended June 30, 2020, compared to $1.16 in the same period of 2019[16]. - Comprehensive income for the six months ended June 30, 2020, was $10,259,000, down from $18,996,000 in the same period of 2019, indicating a decrease of 46.0%[16]. - Net income for the six months ended June 30, 2020, was $13,064,000, compared to $12,551,000 for the same period in 2019, representing a growth of 4.1%[21]. - Net interest income for the six months ended June 30, 2020, was $29,409,000, up 13.5% from $25,849,000 in the same period of 2019[16]. - Non-interest income for the six months ended June 30, 2020, was $8.8 million, up 30.7% year-over-year[187]. - Non-interest expense for the six months ended June 30, 2020, was $20.0 million, an increase of 16.5% from the same period in 2019[188]. - The efficiency ratio for the six months ended June 30, 2020, was 52.13%, compared to 50.63% for the same period in 2019[194]. Asset Growth - Total assets increased to $2,267,124,000 as of June 30, 2020, up from $2,068,796,000 at December 31, 2019, representing a growth of 9.6%[14]. - Total deposits grew to $1,740,121,000 as of June 30, 2020, up from $1,650,466,000 at the end of 2019, reflecting a growth of 5.4%[14]. - Total shareholders' equity increased to $216,584,000 as of June 30, 2020, up from $204,593,000 at June 30, 2019, reflecting a year-over-year increase of 5.0%[18]. - Cash and cash equivalents at the end of the period were $22,143,000, compared to $16,918,000 at the end of June 30, 2019, indicating a 30.5% increase[21]. - The total loan portfolio amounted to $1,451,623,000, an increase from $1,297,075,000 as of December 31, 2019, representing a year-over-year growth of approximately 11.9%[42]. Loan Performance - Net loans reached $1,437,513,000, an increase of 11.8% from $1,285,436,000 at the end of 2019[14]. - The provision for loan losses increased to $2,750,000 for the six months ended June 30, 2020, compared to $625,000 in the same period of 2019, reflecting a significant rise of 340%[16]. - Total past-due loans (90+ days) reached $6,188,000 as of June 30, 2020, with a total loan balance of $1,451,623,000[44]. - Non-accrual loans as of June 30, 2020, totaled $8,344,000, a decrease from $16,649,000 as of December 31, 2019[46]. - The total recorded investment in impaired loans was $20,013,000, with an unpaid principal balance of $21,778,000, and a related allowance of $917,000[48]. Securities and Investments - The fair value of investment securities was $311,500,000, with an amortized cost of $302,513,000, resulting in unrealized gains of $9,250,000 and losses of $263,000[29]. - The total fair value of securities pledged to secure public deposits and other purposes was $245,917,000 as of June 30, 2020, compared to $214,173,000 at December 31, 2019[33]. - The company reported a net unrealized gain on securities available for sale of $3,443,000 for the six months ended June 30, 2020, compared to a net unrealized gain of $7,801,000 in the same period of 2019[21]. - The fair value of mortgage-backed securities was $275,491,000 as of June 30, 2020, with an amortized cost of $267,805,000[29]. - The total amortized cost of securities available for sale was $319,088,000, with a fair value of $322,570,000 as of June 30, 2020[30]. COVID-19 Impact - The impact of COVID-19 is expected to adversely affect the tourism industry, which is significant for the company's primary market in Maine, although the exact financial impact remains uncertain[25]. - The company completed 867 loan modification requests totaling $239,484,000, which is approximately 16.5% of the overall loan portfolio, in response to the COVID-19 pandemic[44]. Allowance for Loan Losses - The allowance for loan losses as of June 30, 2020, totaled $14,110,000, with specific reserves of $917,000 and general reserves of $1,814,000[70]. - The qualitative portion of the allowance for loan losses increased to 0.71% of related loans as of June 30, 2020, up from 0.48% as of December 31, 2019, reflecting a $4,109,000 increase[74]. - The unallocated component of the allowance totaled $1,009,000 at June 30, 2020, representing 7.2% of the total reserve, down from $1,182,000 or 10.2% as of December 31, 2019[77]. - The company has established a systematic methodology for determining the allowance for loan losses, including quarterly reviews and risk rating changes[63]. Regulatory Compliance - The Company's total risk-based capital ratio was 15.03% as of June 30, 2020, well above the 10.0% threshold[193]. - Construction loans and non-owner-occupied commercial real estate loans were at 125.8% of total capital, below the regulatory limit of 300.0% at June 30, 2020[87]. Equity and Compensation - The total compensation cost related to nonvested restricted stock grants was $1,957,000, with $312,000 recognized as expense for the six months ended June 30, 2020, leaving $1,003,000 in unrecognized expense[108]. - The company’s 401(k) plan expense was $453,000 for the six months ended June 30, 2020, compared to $322,000 for the same period in 2019[111].