The First Bancorp(FNLC) - 2021 Q2 - Quarterly Report

Financial Performance - Net income for the six months ended June 30, 2021, was $17,709,000, compared to $13,064,000 for the same period in 2020, an increase of 35.5%[13] - Basic earnings per common share increased to $1.63 for the six months ended June 30, 2021, up from $1.20 in the prior year, representing a growth of 35.8%[13] - Net interest income after provision for loan losses was $30,546,000 for the six months ended June 30, 2021, up from $26,659,000 in the same period of 2020, reflecting a growth of 14.0%[13] - Non-interest income for the six months ended June 30, 2021, was $10,209,000, compared to $8,822,000 in the same period of 2020, reflecting a growth of 15.7%[13] - Total comprehensive income for the six months ended June 30, 2021, was $16,759,000, compared to $10,259,000 for the same period in 2020, indicating a growth of 63.5%[15] Asset Growth - Total assets increased to $2,450,443,000 as of June 30, 2021, up from $2,361,236,000 at December 31, 2020, representing a growth of 3.7%[12] - Total deposits reached $1,961,321,000 as of June 30, 2021, an increase of 6.3% from $1,844,611,000 at the end of 2020[12] - The company reported a net increase in demand, savings, and money market accounts of $126,093,000 for the six months ended June 30, 2021[18] - Cash and cash equivalents at the end of the period were $27,092,000, compared to $22,143,000 at the end of June 30, 2020, representing a year-over-year increase of 22.4%[18] Loan Portfolio - Net loans rose to $1,571,230,000, compared to $1,460,508,000 at the end of 2020, marking an increase of 7.6%[12] - The company's loan portfolio totaled $1,588,264,000 as of June 30, 2021, reflecting a year-over-year increase from $1,451,623,000[37] - Real estate loans accounted for 33.2% of the total loan portfolio as of June 30, 2021, up from 29.9% at December 31, 2020[37] - The company completed 1,050 loan modification requests, representing $291,668,000 in loan balances, or approximately 19.0% of the loan portfolio excluding PPP balances[39] Loan Losses and Provisions - The allowance for loan losses was $17,034,000 as of June 30, 2021, compared to $16,253,000 at the end of 2020, indicating a slight increase of 4.8%[12] - The provision for loan losses decreased to $1,050,000 for the six months ended June 30, 2021, down from $2,750,000 in the same period of 2020[18] - The total past-due loans as of December 31, 2020, were $9,722,000, with current loans totaling $1,467,039,000, leading to a total of $1,476,761,000[41] - Non-accrual loans as of June 30, 2021, totaled $6,981,000, compared to $6,721,000 at December 31, 2020, and $8,344,000 at June 30, 2020[42] Securities and Investments - As of June 30, 2021, the fair value of investment securities was $306,247,000, compared to $313,376,000 as of December 31, 2020, indicating a decrease of approximately 2.9%[26] - The total amortized cost of securities available for sale was $304,740,000, with unrealized gains of $4,542,000 and unrealized losses of $3,035,000[26] - The company pledged securities with a fair value of $291,913,000 to secure public deposits and other purposes as of June 30, 2021, down from $297,326,000 as of December 31, 2020[29] - The total carrying value of securities to be held to maturity rose from $365,613,000 at December 31, 2020, to $376,181,000 at June 30, 2021, indicating an increase of 1.5%[154][156] Efficiency and Expenses - Total non-interest expense decreased to $19,370,000 for the six months ended June 30, 2021, from $19,960,000 in the same period of 2020, a reduction of 2.9%[13] - The efficiency ratio, calculated using non-GAAP measures, excludes securities losses and other-than-temporary impairment charges, providing a clearer view of operational efficiency[175] - The non-GAAP efficiency ratio stood at 45.14% for the six months ended June 30, 2021, compared to 52.13% for the same period in 2020[190] - The expense related to the 401(k) plan was $405,000 for the six months ended June 30, 2021, down from $453,000 in 2020, a decrease of 10.6%[106] Capital and Shareholder Equity - Total shareholders' equity increased to $234,155,000 as of June 30, 2021, up from $216,584,000 at June 30, 2020, reflecting a growth of 8.1%[15] - The Company's total risk-based capital ratio was 14.55% as of June 30, 2021, above the well-capitalized threshold of 10.0%[189] - The company declared cash dividends of $6,910,000 for the six months ended June 30, 2021, compared to $6,666,000 in the same period of 2020[18] Risk Management - The Bank's interest rate risk management strategy involves using derivative instruments to minimize fluctuations in earnings and cash flows due to interest rate volatility[118] - The company utilizes a systematic methodology for determining the allowance for loan losses, including a quarterly review process and risk rating changes[57] - The company continues to monitor loans placed on non-accrual status, which are deemed collectible based on current information and events[42] COVID-19 Impact - As of June 30, 2021, uncertainties related to the COVID-19 pandemic continue to pose risks to the Company's financial position and future operations[172]