The First Bancorp(US:FNLC)2021-11-04 16:00Financial Performance - Net income for the nine months ended September 30, 2021, was $26,723,000, a 32.5% increase compared to $20,159,000 for the same period in 2020[13]. - Basic earnings per common share increased to $2.45 for the nine months ended September 30, 2021, compared to $1.86 for the same period in 2020[13]. - Net interest income for the nine months ended September 30, 2021, was $48,607,000, up 10.3% from $44,154,000 for the same period in 2020[13]. - Non-interest income totaled $14,584,000 for the nine months ended September 30, 2021, an increase of 7.0% from $13,627,000 in the same period of 2020[13]. - The non-GAAP efficiency ratio for the nine months ended September 30, 2021, improved to 45.04%, compared to 50.00% for the same period in 2020[176]. - The GAAP efficiency ratio for the quarter ended September 30, 2021, was 46.44%, down from 47.45% in the same quarter of 2020[176]. - Net income for the nine months ended September 30, 2021 was $26.7 million, up $6.6 million or 32.6% from the same period in 2020[179]. - Earnings per common share on a fully diluted basis were $2.43 for the nine months ended September 30, 2021, up $0.59 or 32.1% from $1.84 in 2020[179]. Asset and Loan Growth - Total assets increased to $2,529,591,000 as of September 30, 2021, up from $2,361,236,000 at December 31, 2020, representing a growth of 7.1%[12]. - Net loans reached $1,599,705,000, an increase of 9.5% compared to $1,460,508,000 at the end of 2020[12]. - Total deposits rose to $2,033,213,000, reflecting a 10.2% increase from $1,844,611,000 at December 31, 2020[12]. - The loan portfolio totaled $1,617,212,000 as of September 30, 2021, reflecting an increase from $1,476,761,000 at December 31, 2020[36]. - The company reported a net increase in demand, savings, and money market accounts of $279,620,000 for the nine months ended September 30, 2021, compared to $212,641,000 in the same period of 2020[17]. Loan Loss Provisions and Credit Quality - The provision for loan losses decreased to $1,575,000 for the nine months ended September 30, 2021, down from $4,550,000 in the same period of 2020[13]. - The total allowance for loan losses as of September 30, 2021, was $17,507,000, which includes specific reserves of $682,000 and general reserves of $2,004,000[64]. - The total past-due loans amounted to $4,118,000 as of September 30, 2021, with 90+ days past due loans totaling $229,000[37]. - Non-accrual loans as of September 30, 2021, totaled $6,145,000, a decrease from $6,721,000 at December 31, 2020[40]. - The company noted that the tourism industry in its primary market, the State of Maine, is showing signs of a strong rebound in 2021 following the adverse impacts of COVID-19 in 2020[22]. Securities and Investments - As of September 30, 2021, the fair value of investment securities was $309,224,000, with an amortized cost of $310,018,000, resulting in unrealized losses of $4,516,000[25]. - The fair value of mortgage-backed securities available for sale was $247,253,000 as of September 30, 2021, down from $243,406,000 at December 31, 2020[25]. - The total amortized cost of securities available for sale was $307,036,000, with a fair value of $313,376,000 as of December 31, 2020[26]. - The company reported gross realized gains of $627,000 and gross realized losses of $605,000 for the nine months ended September 30, 2021[29]. - The company’s investment securities included $8,839,000 in restricted equity securities as of September 30, 2021[25]. Capital and Equity - Total shareholders' equity increased to $238,737,000 as of September 30, 2021, up from $219,440,000 at September 30, 2020, reflecting a growth of 8.7%[15]. - The company's total risk-based capital ratio was 14.48% as of September 30, 2021, above the well-capitalized threshold of 10.0%[187]. - The return on average tangible common equity was 17.62% for the nine months ended September 30, 2021, compared to 14.27% for the same period in 2020[188]. Expenses and Dividends - Total non-interest expense remained relatively stable at $29,302,000 for the nine months ended September 30, 2021, compared to $29,236,000 in the same period of 2020[13]. - Cash dividends declared per share increased to $0.95 for the nine months ended September 30, 2021, compared to $0.92 for the same period in 2020[15]. - The expense related to the 401(k) plan was $593,000 for the nine months ended September 30, 2021, down from $653,000 in the same period in 2020[105]. Interest Rate and Risk Management - The Bank's interest rate risk management strategy aims to minimize significant fluctuations in earnings and cash flows due to interest rate volatility[114]. - The anticipated prepayment rate for mortgage servicing rights was 12.48%, with a discount rate of 9.00% as of September 30, 2021[124]. - The fair value of interest rate swaps is determined using observable market inputs and classified as Level 2[140]. Regulatory and Compliance - The company is in the late stages of implementing a software solution for the new accounting standard ASU No. 2016-13, which may have a material impact on its consolidated financial statements[157]. - The company continues to evaluate the impact of the adoption of ASU No. 2016-13 on its financial statements, indicating proactive management of potential changes in credit loss recognition[157].