The First Bancorp(FNLC) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the first quarter of 2025 was $7,077,000, reflecting a 17.6% increase from $6,021,000 in the first quarter of 2024[16]. - Basic earnings per common share increased to $0.64 for Q1 2025, compared to $0.55 for Q1 2024, representing a growth of 16.4%[16]. - Net interest income for the three months ended March 31, 2025, was $17,799,000, up 19.3% from $14,880,000 in the same period of 2024[16]. - Non-interest income increased to $4,002,000 for Q1 2025, up from $3,640,000 in Q1 2024, indicating a growth of 9.9%[16]. - Non-interest expense rose to $12,844,000 in Q1 2025, compared to $11,761,000 in Q1 2024, an increase of 9.2%[16]. - The company reported income taxes on operating earnings of $1.5 million, an increase of $237,000 from the same period in 2024[189]. - Return on average assets improved to 0.91% and return on average tangible common equity increased to 12.64% for the three months ended March 31, 2025, compared to 0.82% and 11.36% in 2024[179]. Asset and Loan Growth - Total assets increased to $3,187,372,000 as of March 31, 2025, up from $3,157,010,000 at December 31, 2024, representing a growth of 0.9%[15]. - Net loans rose to $2,358,036,000, compared to $2,316,069,000 at the end of 2024, marking an increase of 1.8%[15]. - The loan portfolio totaled $2,383,150,000 as of March 31, 2025, reflecting an increase from $2,340,940,000 at December 31, 2024, and $2,173,746,000 at March 31, 2024[45]. - The total past-due loans amounted to $7,972,000 as of March 31, 2025, with 4,652,000 classified as 90+ days past due[48]. - The total current loans as of March 31, 2024, were $2,173,746,000, with $2,048,000 in total past due[49]. Deposits and Equity - Total deposits decreased slightly to $2,711,335,000 as of March 31, 2025, from $2,725,251,000 at the end of 2024, a decline of 0.5%[15]. - Shareholders' equity increased to $259,681,000 as of March 31, 2025, up from $252,493,000 at the end of 2024, a growth of 2.5%[15]. - Cash dividends declared increased to $0.36 per share for Q1 2025, compared to $0.35 per share in Q1 2024[17]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) for loans stood at 1.05% of loans outstanding as of March 31, 2025, compared to 1.06% at the end of 2024[175]. - The total allowance for credit losses (ACL) is $25,114,000, with specific reserves on loans evaluated individually at $1,029,000[71]. - The provision for credit losses on loans for Q1 2025 was $396,000, an increase from $99,000 in Q1 2024[175]. - The total non-accrual loans as of March 31, 2025, reached $6,053,000, with $1,348,000 having an allowance for credit loss[51]. Securities and Investments - The fair value of available-for-sale securities was estimated at $280,764,000 as of March 31, 2025, down from $274,680,000 at the end of 2024[27]. - The net unrealized loss on securities available for sale was $40.864 million as of March 31, 2025[186]. - The company reported AFS debt securities in an unrealized loss position with a fair value of $247.7 million and unrealized losses of $49.4 million as of March 31, 2025[202]. - The total fair value of securities available for sale is $280,764,000, with $18,950,000 in U.S. Government-sponsored agencies and $226,877,000 in mortgage-backed securities[140]. Operational Efficiency - Cash flows from operating activities provided $2,180,000 in Q1 2025, a significant recovery from a cash outflow of $1,497,000 in Q1 2024[19]. - The company reported a change in net unrealized loss on available-for-sale securities of $(3,969,000) in Q1 2025, contrasting with a gain of $3,241,000 in Q1 2024[20]. - The total pledged loans for collateral agreements reached $631,410,000 as of March 31, 2025, compared to $565,047,000 at March 31, 2024[46]. Market Conditions and Risks - Interest paid increased to $20,843,000 in Q1 2025, up from $19,521,000 in Q1 2024, reflecting rising interest rates[20]. - The company holds high credit quality municipal debt obligations, primarily rated A- or higher, with a history of zero to near-zero credit loss[36]. - The company categorizes commercial loans using an internal risk rating system with eight levels, from "Strong" to "Doubtful"[78][85].