The First Bancorp(US:FNLC)2023-05-08 16:00Financial Performance - Net income for Q1 2023 was $7,971,000, down 17.9% from $9,705,000 in Q1 2022[18]. - Basic earnings per common share decreased to $0.73 in Q1 2023 from $0.89 in Q1 2022, a decline of 17.9%[18]. - Net interest income after provision for credit losses was $16,925,000 for Q1 2023, compared to $18,170,000 for Q1 2022, a decrease of 6.9%[18]. - Total non-interest income fell to $3,569,000 in Q1 2023, down 15.7% from $4,232,000 in Q1 2022[18]. - Net income for the three months ended March 31, 2023, was $8.0 million, down $1.7 million or 17.9% from the same period in 2022[195]. - Earnings per common share on a fully diluted basis were $0.72 for the three months ended March 31, 2023, down $0.16 or 18.2% from $0.88 in the same period in 2022[195]. Asset and Loan Growth - Total assets increased to $2,811,820,000 as of March 31, 2023, up from $2,739,178,000 at December 31, 2022, representing a growth of 2.6%[17]. - Net loans reached $1,959,389,000, an increase of 3.2% from $1,897,951,000 at December 31, 2022[17]. - The loan portfolio as of March 31, 2023, amounted to $1,982,847,000, reflecting an increase from $1,914,674,000 at December 31, 2022, and $1,707,348,000 at March 31, 2022[55]. - Total deposits rose to $2,466,701,000, up 3.7% from $2,378,877,000 at the end of 2022[17]. - Total past-due loans as of March 31, 2023, were $1,946,000, with $737,000 being 90 days or more past due[56]. Credit Losses and Allowances - The total reserves for credit losses as of March 31, 2023, amounted to $23,458,000, with specific reserves of $388,000 and general reserves of $20,216,000[88]. - The allowance for credit losses (ACL) for held-to-maturity debt securities totaled $438,000, with $229,000 for state and political subdivisions and $209,000 for corporate securities as of March 31, 2023[48]. - The provision for credit losses for Q1 2023 was $550,000, compared to a provision of $1,750,000 for the year ended December 31, 2022, reflecting a decrease of approximately 69%[113]. - The allowance for credit losses on loans increased by $6,210,000 upon the adoption of the CECL methodology, impacting retained earnings by a net decrease of $6,277,000[169]. Interest Income and Expense - Total interest income for Q1 2023 was $28.9 million, an increase of $8.4 million or 40.8% compared to Q1 2022, while total interest expense rose by $9.5 million or 498.0% to $11.4 million[205]. - Net interest income for Q1 2023 was $17.5 million, a decrease of $1.1 million or 6.1% compared to $18.6 million in Q1 2022, with a net interest margin of 2.78%, down from 3.24%[205]. - The average yield on loans increased to 5.04% in Q1 2023 from 4.04% in Q1 2022, while the average yield on deposits rose to 2.10% from 0.37%[207]. Securities and Investments - The fair value of securities available for sale was $288,242,000, with unrealized losses of $(51,397,000) as of March 31, 2023[34]. - The total amortized cost of securities available for sale was $339,555,000 with an estimated fair value of $288,242,000 as of March 31, 2023[40]. - The total unrealized losses for debt securities available-for-sale as of March 31, 2023, amounted to $100,067,000, with $3,948,000 in losses for securities held for less than 12 months[44]. - The fair value of mortgage servicing rights was reported at $3,505,000 as of March 31, 2023, compared to $3,734,000 at December 31, 2022[138]. Dividends and Shareholder Equity - The company declared cash dividends of $0.34 per share for Q1 2023, compared to $0.32 per share in Q1 2022[21]. - The total shareholders' equity decreased to $228,461,000 as of March 31, 2023, from $228,923,000 at December 31, 2022[17]. - The book value per common share was $20.63 as of March 31, 2023, slightly down from $20.73 at December 31, 2022[17]. Operational Efficiency - Non-interest expense for the three months ended March 31, 2023, was $10.9 million, up $200,000 or 1.9% from the same period in 2022[198]. - Return on average tangible common equity was 15.64% for Q1 2023, down from 18.25% in Q1 2022, while the non-GAAP efficiency ratio increased to 49.98% from 45.42%[204]. - The expense related to the 401(k) plan was $326,000 for Q1 2023, slightly up from $324,000 in Q1 2022[119]. Market and Economic Conditions - The company’s primary market is the State of Maine, which is heavily reliant on tourism, indicating potential vulnerability to economic fluctuations[30]. - The company’s financial condition is influenced by various factors, including economic conditions and changes in interest rates, which may affect future performance[172].