The First Bancorp(FNLC) - 2022 Q1 - Quarterly Report

Financial Performance - Net income for the quarter was $9,705,000, up from $9,546,000 in the same quarter last year, showing a growth of 1.67%[16] - Net income for the three months ended March 31, 2022, was $9,705,000, an increase of 8.8% compared to $8,922,000 for the same period in 2021[21] - Basic earnings per common share increased to $0.89, compared to $0.87 in the previous quarter, reflecting a growth of 2.3%[16] - Basic earnings per share (EPS) for the three months ended March 31, 2022, was $0.89, compared to $0.82 for the same period in 2021, reflecting an increase of 8.5%[106] - The company reported a comprehensive income of $7,610,000 for the three months ended March 31, 2022, compared to a comprehensive income of $8,922,000 for the same period in 2021[18] Asset and Loan Growth - Total assets increased to $2,548,607,000 as of March 31, 2022, compared to $2,527,099,000 at December 31, 2021, reflecting a growth of 0.85%[15] - Net loans rose to $1,691,582,000, up from $1,632,128,000 at the end of 2021, marking an increase of 3.6%[15] - The company experienced a net increase in loans of $59,904,000 during the three months ended March 31, 2022, compared to an increase of $40,195,000 in the same period of 2021[21] - The total loan portfolio amounted to $1,707,348,000, an increase from $1,647,649,000 as of December 31, 2021, and $1,516,772,000 as of March 31, 2021[43] Deposits and Equity - Total deposits reached $2,158,539,000, a rise from $2,123,297,000, indicating a growth of 1.66%[15] - Total shareholders' equity increased to $233,646,000 as of March 31, 2022, up from $228,184,000 at the end of the previous quarter[18] - Cash dividends declared were $3,520,000 for the three months ended March 31, 2022, compared to $3,394,000 for the same period in 2021, reflecting a dividend per share increase from $0.31 to $0.32[21] Interest Income and Expenses - Net interest income for the quarter was $18,620,000, compared to $17,696,000 in the previous quarter, representing an increase of 5.2%[16] - Net interest income rose to $18.6 million in Q1 2022, an increase of $2.7 million or 17.3% compared to $15.9 million in Q1 2021[193] - Non-interest income decreased to $4,232,000 from $4,799,000 in the previous quarter, a decline of 11.8%[16] - Non-interest income for Q1 2022 was $4.2 million, down $1.1 million or 20.1% from Q1 2021[186] - Non-interest expense was $10,650,000, down from $12,846,000 in the previous quarter, indicating a reduction of 17.1%[16] - Non-interest expense increased by 7.9% to $10.7 million in Q1 2022 compared to $9.9 million in Q1 2021, driven by higher salaries and employee benefits[203] Loan Losses and Allowances - The allowance for loan losses was $15,766,000, slightly up from $15,521,000 at the end of 2021, an increase of 1.58%[15] - The allowance for loan losses as of March 31, 2022, totaled $15,766,000, which includes specific reserves of $712,000 and general reserves of $1,878,000[68] - The allowance for loan losses as a percentage of total loans was 0.92% as of March 31, 2022, down from 0.94% at December 31, 2021, and 1.09% as of March 31, 2021[73] - The provision for loan losses decreased to $450,000 in Q1 2022 from $525,000 in Q1 2021, reflecting ongoing considerations of COVID-19 uncertainties[189] Securities and Investments - The total amortized cost of investment securities was $338,408,000, with an estimated fair value of $313,015,000, reflecting unrealized losses of $25,837,000[31] - The fair value of securities pledged to secure public deposits and other purposes was $288,761,000 as of March 31, 2022, compared to $297,456,000 at December 31, 2021[34] - The company reported a net unrealized loss on securities available for sale of $18,343,000 for the three months ended March 31, 2022, compared to a loss of $4,790,000 for the same period in 2021[22] - The total fair value of securities temporarily impaired as of March 31, 2022, was $502,089,000, with total unrealized losses amounting to $51,507,000[36] Risk Management and Loan Quality - Non-performing assets were 0.20% of total assets as of March 31, 2022, down from 0.30% a year earlier[188] - Total past-due loans were 0.25% of total loans as of March 31, 2022, down from 0.37% a year earlier[188] - The company maintains a rigorous risk rating system with eight levels, where loans rated "1" are characterized by excellent capacity to pay principal and interest[86] - The company employs management's judgment in determining the level of losses on existing loans based on internal reviews and anticipated economic conditions[84] Changes in Accounting and Regulations - The company is in the late stages of implementing ASU No. 2016-13, which will require recognition of expected credit losses based on historical experience and forecasted conditions[160] - The company has formed an implementation committee to address the changes required by the new accounting standards[160]