The First Bancorp(US:FNLC)2023-08-03 16:00Financial Performance - Net income for the six months ended June 30, 2023, was $15,365,000, down 22.56% from $19,702,000 in the same period of 2022[16]. - Basic earnings per common share decreased to $1.40 for the six months ended June 30, 2023, compared to $1.80 for the same period in 2022[16]. - The company reported a comprehensive income of $16,443,000 for the six months ended June 30, 2023, compared to a loss of $11,215,000 in the same period of 2022[16]. - Net income for the six months ended June 30, 2023, was $15,365,000, a decrease of 22.5% compared to $19,702,000 for the same period in 2022[21]. - For the quarter ended June 30, 2023, net income was $7,394,000, with a basic and diluted EPS of $0.67, down from a net income of $9,997,000 and EPS of $0.91 in the prior year[117]. - Net income for the six months ended June 30, 2023 was $15.4 million, down 22.0% from $19.7 million in the same period in 2022[195]. - Earnings per common share on a fully diluted basis were $1.39 for the six months ended June 30, 2023, a decrease of 22.3% from $1.79 in 2022[195]. Asset and Deposit Growth - Total assets increased to $2,874,815,000 as of June 30, 2023, up from $2,739,178,000 at December 31, 2022, representing a growth of 4.94%[15]. - Total deposits rose to $2,499,862,000, reflecting an increase of 5.08% compared to $2,378,877,000 at December 31, 2022[15]. - The loan portfolio increased by $146.3 million or 7.6% in the six months ended June 30, 2023, with commercial loans increasing by $94.2 million[202]. - Total shareholders' equity as of June 30, 2023, was $232,003,000, an increase from $228,923,000 at the end of 2022[19]. - Cash and cash equivalents at the end of the period on June 30, 2023, were $25,077,000, up from $23,453,000 at the end of June 2022[21]. - Certificates of deposit totaled $1,049,629,000 as of June 30, 2023, an increase from $867,671,000 at December 31, 2022[140]. Income and Expense Analysis - Interest income for the six months ended June 30, 2023, was $60,098,000, a significant increase of 43.24% from $41,964,000 in the same period of 2022[16]. - Net interest income for the six months ended June 30, 2023, was $33,400,000, down from $37,318,000 in 2022, reflecting a decrease of approximately 5.1%[190]. - Non-interest income for the six months ended June 30, 2023, was $7.4 million, down 10.5% from $8.3 million in the same period in 2022[198]. - Non-interest expense for the six months ended June 30, 2023, was $21.6 million, an increase of 3.6% from $20.9 million in the same period in 2022[199]. - The expense related to the 401(k) plan increased to $584,000 for the six months ended June 30, 2023, compared to $550,000 for the same period in 2022[118]. - The expense for supplemental retirement benefits decreased to $57,000 in the first half of 2023 from $154,000 in the same period of 2022, with an accrued liability of $2,807,000 as of June 30, 2023[119]. Credit Losses and Allowances - The provision for credit losses totaled $701,000 for the six months ended June 30, 2023, compared to $900,000 in the same period of 2022[16]. - The total allowance for credit losses was $23,465,000 as of June 30, 2023, with specific reserves on loans evaluated individually amounting to $186,000[86]. - The allowance for credit losses as a percent of total loans stood at 1.14% as of June 30, 2023, compared to 0.87% at December 31, 2022, and 0.91% at June 30, 2022[88]. - The allowance for credit losses (ACL) 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[171]. - For the six months ended June 30, 2023, the provision for credit losses was $580,000, while charge-offs totaled $122,000 and recoveries amounted to $74,000[109]. Securities and Fair Value - As of June 30, 2023, the total amortized cost of available-for-sale (AFS) securities was $333,773,000, with an estimated fair value of $278,355,000, reflecting unrealized losses of $55,463,000[30]. - The total fair value of debt securities in an unrealized loss position was $550,983,000, with unrealized losses amounting to $110,061,000 as of June 30, 2023[40]. - The carrying value of securities to be held to maturity was $389,987,000, with an estimated fair value of $336,007,000, indicating a fair value decline of about 13.8%[165]. - The fair value of mortgage servicing rights was $3,639,000 as of June 30, 2023, showing stability compared to $3,734,000 at December 31, 2022[161]. - The company recognizes all derivatives at fair value, with changes in fair value recorded in earnings or other comprehensive income depending on the type of hedge[184]. Economic and Market Conditions - The ongoing conflict between Russia and Ukraine has contributed to economic uncertainty, particularly affecting the commercial real estate market and the banking industry[28]. - The company has identified risks related to the failures of several regional banks in the U.S. in 2023, which may have a lingering impact on its operating results[28]. - The overall health of the economy, including unemployment rates and housing prices, significantly impacts the credit quality of various loan segments[80]. - The Company faces economic uncertainties, including inflation moderation and potential risks in the commercial real estate market, which could affect operating results[186].