The First Bancorp(US:FNLC)2025-08-08 14:17Financial Performance - Net income for the six months ended June 30, 2025, was $15,140,000, reflecting a 24.1% increase from $12,192,000 in the prior year[16]. - Basic earnings per common share increased to $1.37, up from $1.10, representing a growth of 24.5%[16]. - The company reported a comprehensive income of $20,488,000 for the six months ended June 30, 2025, significantly higher than $8,836,000 in the prior year[16]. - Net income for the six months ended June 30, 2025, was $15,140,000, an increase of 24.9% compared to $12,192,000 for the same period in 2024[19]. - The company reported a net cash provided by operating activities of $9,547,000 for the six months ended June 30, 2025, compared to $4,881,000 for the same period in 2024, indicating a significant improvement[19]. - The company reported a total of $1,865 million in loan modifications involving payment deferral and term extension during the three months ended June 30, 2025[51]. Asset and Loan Growth - Total assets increased to $3,199,510,000 as of June 30, 2025, up from $3,157,010,000 at December 31, 2024, representing a growth of 1.1%[15]. - Net loans rose to $2,369,178,000, compared to $2,316,069,000 at the end of 2024, marking an increase of 2.3%[15]. - The total loan portfolio amounted to $2,394,007,000, an increase from $2,340,940,000 at December 31, 2024, and $2,247,670,000 at June 30, 2024, reflecting a year-over-year growth of 6.5%[43]. - The loan portfolio increased by $53.1 million or 2.3% in the six months ended June 30, 2025[182]. Interest Income and Expenses - Total interest income for the six months ended June 30, 2025, was $78,534,000, up 9.2% from $71,546,000 in the same period of 2024[16]. - Net interest income after provision for credit losses increased to $35,330,000, a rise of 17.5% from $29,956,000 year-over-year[16]. - Total interest paid increased to $42,250,000 for the six months ended June 30, 2025, compared to $40,905,000 in 2024, reflecting a rise of 3.3%[20]. - Net interest income rose by $6.3 million or 20.9% to $36.2 million for the six months ended June 30, 2025, compared to $30.0 million for the same period in 2024[188]. Deposits and Equity - Total deposits decreased slightly to $2,705,337,000 from $2,725,251,000, a decline of 0.7%[15]. - Total shareholders' equity increased to $265,492,000 as of June 30, 2025, up from $244,668,000 at June 30, 2024, reflecting a growth of 8.4%[18]. - Cash dividends declared per share increased from $0.71 to $0.73, representing a 2.8% increase year-over-year[19]. 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[58]. - The total ending balance of the Allowance for Credit Losses (ACL) was $24,829,000, a slight decrease from $24,871,000 at the beginning of the period[96]. - The ACL for commercial real estate owner-occupied loans was $5,195,000 as of June 30, 2025, reflecting a specific reserve based on historical loss experience[71]. - The total non-accrual loans amounted to $6,039 million, a decrease from $6,248 million on December 31, 2024, representing a reduction of approximately 3.35%[48]. Securities and Investments - As of June 30, 2025, the total amortized cost of investment securities was $325,381,000, with an estimated fair value of $278,248,000, reflecting unrealized losses of $47,630,000[26]. - The total fair value of AFS debt securities in an unrealized loss position was $240,853,000, with unrealized losses amounting to $(47,630,000)[33]. - The company invests only in investment-grade securities, with no credit losses recognized on currently held securities[163]. - The total securities held by the company amounted to $653.9 million as of June 30, 2025, compared to $651.6 million at December 31, 2024, and $658.1 million at June 30, 2024[203]. Economic Outlook and Market Conditions - The company reported a favorable market response to a domestic budget package that included spending reforms and tax cuts, which has helped reduce volatility[24]. - The future economic outlook remains uncertain due to potential tariffs and ongoing trade negotiations, which could impact the company's operating results[24]. - The overall health of the economy, including unemployment rates and housing prices, significantly impacts the credit quality of the loan portfolio[66]. Non-Interest Income and Expenses - Non-interest income for the six months ended June 30, 2025, was $8,131,000, an increase of 4.3% compared to $7,797,000 in the same period of 2024[16]. - Non-interest expense for the six months ended June 30, 2025, was $25.0 million, up $2.0 million or 8.8% from the same period in 2024[179]. - The expense related to the 401(k) plan for the six months ended June 30, 2025, was $564,000, a slight decrease from $585,000 in the same period of 2024[106].