The First Bancorp(FNLC) - 2020 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended September 30, 2020, was $20,159,000, compared to $18,839,000 in 2019, representing a growth of 7.0%[14] - Basic earnings per common share increased to $1.86 for the nine months ended September 30, 2020, up from $1.74 in 2019[14] - Net income for the nine months ended September 30, 2020, was reported at $20,159,000, resulting in a basic EPS of $1.86 and diluted EPS of $1.84[105] - For the quarter ended September 30, 2020, net income was $7,095,000, leading to a basic and diluted EPS of $0.65[105] - Net income for the nine months ended September 30, 2020 was $20.2 million, up $1.3 million or 7.0% from the same period in 2019[180] Asset Growth - Total assets increased to $2,296,626,000 as of September 30, 2020, up from $2,068,796,000 at December 31, 2019, representing a growth of 11.0%[13] - The company's total assets as of September 30, 2020, were $2.210594 billion, up from $1.994874 billion as of September 30, 2019, representing an increase of 10.8%[199] - Total deposits grew to $1,763,059,000 as of September 30, 2020, compared to $1,650,466,000 at the end of 2019, reflecting a growth of 6.8%[13] - Total shareholders' equity increased to $219,440,000 as of September 30, 2020, up from $208,489,000 at the end of September 2019, reflecting a growth of 5.0%[18] Loan and Deposit Metrics - Net loans reached $1,421,275,000, an increase of 10.6% from $1,285,436,000 at the end of 2019[13] - The company's loan portfolio as of September 30, 2020, totaled $1,436,646,000, an increase from $1,297,075,000 as of December 31, 2019, representing a year-over-year growth of approximately 10.7%[39] - The company experienced a net cash used by investing activities of $214,584,000 for the nine months ended September 30, 2020, compared to $70,264,000 for the same period in 2019[18] - The company reported a net increase in demand, savings, and money market accounts of $212,641,000 for the nine months ended September 30, 2020[18] Non-Interest Income and Expenses - Net interest income for the nine months ended September 30, 2020, was $44,154,000, compared to $39,075,000 for the same period in 2019, reflecting a growth of 12.0%[14] - Total non-interest income rose to $13,627,000 for the nine months ended September 30, 2020, up from $10,281,000 in 2019, marking a 32.8% increase[14] - Total non-interest expense for the nine months ended September 30, 2020, was $29,236,000, compared to $26,168,000 in 2019, indicating a rise of 11.7%[14] Loan Loss Provisions - Provision for loan losses increased to $4,550,000 for the nine months ended September 30, 2020, compared to $875,000 for the same period in 2019, indicating a significant rise in risk assessment[14] - The allowance for loan losses as of September 30, 2020, totaled $15,371,000, including specific reserves of $890,000 and general reserves of $1,826,000[67] - The provision for loan losses for the first nine months of 2020 was $4.6 million, significantly up from $875,000 in the same period in 2019[187] Securities and Investments - As of September 30, 2020, the fair value of investment securities was $340,140,000, compared to $360,520,000 as of December 31, 2019, indicating a decrease of approximately 5.6%[26] - The total amortized cost of securities available for sale was $333,152,000, with unrealized gains of $8,157,000 and unrealized losses of $1,169,000[26] - The company’s investment policy limits investments to government debt obligations, time deposits, and highly rated corporate bonds[205] Impaired Loans - The total recorded investment in impaired loans was $19.34 billion, with an unpaid principal balance of $21.65 billion, resulting in a related allowance of $890 million[44] - Impaired loans decreased to $789 million as of September 30, 2020, down from $6,579 million as of December 31, 2019, a significant decline of approximately 88%[150] - The specific reserves for TDRs as of September 30, 2020, amounted to $395,000, compared to $1,683,000 for 82 loans as of September 30, 2019[51] Regulatory and Compliance - The Company's total risk-based capital ratio was 15.44% as of September 30, 2020, above the well-capitalized threshold of 10.0%[189] - The company has established a systematic methodology for determining the allowance for loan losses, which includes a quarterly review process[60] - The implementation of ASU No. 2016-13 is anticipated to have a material impact on the Company's consolidated financial statements upon adoption[158] Miscellaneous - The company approved a new 2020 Equity Incentive Plan, reserving 400,000 shares for stock options and other equity-based awards to attract and retain personnel[101] - The company utilized a weighted average discount rate of 3.00% for determining the accumulated benefit obligation and net periodic benefit cost[110] - The Bank incurred one-time charges of $1.76 million in Q1 2020 related to the restructuring of interest rate swap positions[121]