The First Bancorp(US:FNLC)2024-11-08 14:31Financial Performance - Net income for the nine months ended September 30, 2024, was $19,763,000, a decrease of 13.8% from $22,839,000 in the same period of 2023[10]. - Basic earnings per common share decreased to $1.79 for the nine months ended September 30, 2024, down from $2.08 in the prior year[10]. - Comprehensive income for the nine months ended September 30, 2024, was $24,515,000, compared to $14,577,000 in the same period of 2023, indicating a significant increase of approximately 68%[16]. - Net income for the nine months ended September 30, 2024, was $19,763,000, a decrease from $22,839,000 in the same period of 2023, representing a decline of approximately 9%[16]. - The company reported a net cash provided by operating activities of $14,638,000 for the nine months ended September 30, 2024, down from $26,193,000 in 2023, a decrease of about 44.8%[16]. - The pre-tax, pre-provision net income for the nine months ended September 30, 2024, was $23,265,000, compared to $28,113,000 for the same period in 2023, showing a decrease of about 17.5%[163]. - Net income for the nine months ended September 30, 2024 was $19.8 million, down 13.5% from the same period in 2023[164]. - Earnings per common share on a fully diluted basis were $1.78 for the nine months ended September 30, 2024, a decrease of 13.9% from $2.06 in 2023[164]. Asset Growth - Total assets increased to $3,142,563,000 as of September 30, 2024, up from $2,944,139,000 a year earlier, representing a growth of 6.7%[7]. - Total assets as of September 30, 2024, amounted to $3,017,045,000, an increase from $2,839,908,000 in the same period of 2023[173]. - Total deposits rose to $2,702,718,000, reflecting an increase of 3.9% from $2,599,937,000 a year ago[7]. - Total deposits increased to $2,574,655,000 for the nine months ended September 30, 2024, compared to $2,468,328,000 in the same period of 2023[173]. - The balance of common stock and additional paid-in capital increased to $71,500,000 as of September 30, 2024, from $69,760,000 at the end of September 2023, an increase of approximately 2.5%[14]. - Total shareholders' equity increased to $256,783,000 as of September 30, 2024, up from $226,665,000 at the end of September 2023, reflecting a growth of about 13.3%[14]. Loan Portfolio - Net loans reached $2,283,254,000, an increase of 10.9% compared to $2,056,538,000 as of September 30, 2023[7]. - As of September 30, 2024, total loan balances reached $2,307,253,000, an increase from $2,129,454,000 as of December 31, 2023, representing a growth of approximately 8.4%[41]. - The commercial real estate owner-occupied loans amounted to $348,287,000, up from $314,819,000 at the end of 2023, reflecting a growth of 15.1%[41]. - The agriculture loan segment was newly established, with balances of $51,274,000 as of September 30, 2024, compared to $45,230,000 at the end of 2023, indicating a growth of 4.6%[41]. - The residential term loans segment reported balances of $698,068,000, which is an increase from $674,855,000 at the end of 2023, representing a growth of 3.6%[41]. - The commercial and industrial (C&I) loans segment saw balances of $368,415,000, up from $315,026,000 at the end of 2023, marking a growth of 16.0%[41]. - The total qualifying loans used to collateralize borrowings from the FHLBB increased to $622,370,000 as of September 30, 2024, compared to $561,574,000 at the end of 2023, representing a growth of 10.8%[41]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) is determined using a discounted cash flow approach, considering historical losses and economic forecasts[62]. - The total reserves for credit losses amounted to $23,999,000 as of September 30, 2024, with general reserves based on historical loss experience at $20,870,000[66]. - The allowance for credit losses (ACL) on off-balance sheet credit exposures is recognized as a liability and included within other liabilities on the consolidated balance sheet[69]. - The total ending allowance balance for credit losses was $768,000 for the nine months ended September 30, 2024, reflecting a reduction in credit loss expense of $(487,000)[70]. - The total ACL on loans is considered appropriate to address potential credit losses inherent in the loan portfolio as of September 30, 2024[198]. - The ACL as a percentage of outstanding loans was 1.04% as of September 30, 2024, down from 1.13% as of December 31, 2023, and 1.12% as of September 30, 2023[201]. - The breakdown of the ACL by loan class shows that real estate non-owner occupied loans accounted for 17.7% of total loans as of September 30, 2024[199]. Non-Interest Income and Expenses - Total interest income for the nine months ended September 30, 2024, was $109,833,000, an increase of 17.7% compared to $93,352,000 in 2023[10]. - Total non-interest income increased to $11,919,000 for the nine months ended September 30, 2024, compared to $11,330,000 in the same period of 2023[10]. - Total non-interest expense rose to $35,011,000 for the nine months ended September 30, 2024, up from $32,571,000 in 2023, indicating a 7.5% increase[10]. - Non-interest income for the nine months ended September 30, 2024 was $11.9 million, an increase of 5.2% from the prior year[165]. - Non-interest expense for the nine months ended September 30, 2024, rose by 7.5% to $35.0 million, driven by an 8.2% increase in salaries and employee benefits[176]. Securities and Investment Portfolio - The company reported a net unrealized gain on securities available for sale of $5,181,000 for the nine months ended September 30, 2024, compared to a loss of $9,134,000 in the prior year[10]. - The total amortized cost of U.S. Treasury and Agency securities in the available-for-sale category was $26,040,000, with unrealized losses of $5,305,000, resulting in a fair value of $20,735,000[23]. - The company reported a total of $377,859,000 in amortized cost for securities to be held to maturity, with an estimated fair value of $333,575,000, indicating unrealized losses of $44,654,000[24]. - The total fair value of investment securities was $282,053,000, with $385,669,000 at amortized cost as of December 31, 2023[29]. - The company has the intent and ability to hold AFS securities until recovery of their amortized cost, which may occur at maturity[187]. - The company’s evaluation of securities for impairment considers factors such as the financial condition and credit rating of the issuer, as well as market price volatility[185]. Market and Economic Conditions - The company expressed concerns regarding the national commercial real estate market and its potential impact on the banking industry due to ongoing economic uncertainties[22]. - The Federal Open Market Committee (FOMC) cut interest rates by 0.5% in September 2024, with further rate actions remaining uncertain[158]. - The company’s management continues to monitor geopolitical tensions and their potential impact on economic conditions, which could affect operating results[158]. - The company faces various risks including economic conditions, interest rate volatility, and competition, which could impact future performance and financial results[153].