The First Bancorp(US:FNLC)2023-11-02 16:00Financial Performance - Net income for the quarter ended September 30, 2023, was $7,474,000, down 26.1% from $10,091,000 in the same quarter of 2022[16]. - Net income for the nine months ended September 30, 2023, was $22,839,000, compared to $29,793,000 for the same period in 2022, representing a decrease of approximately 23.4%[21]. - Earnings per common share on a fully diluted basis were $2.06 for the nine months ended September 30, 2023, down $0.64 or 23.7% from $2.70 in the same period in 2022[192]. - The company reported a net cash provided by operating activities of $26,193,000 for the nine months ended September 30, 2023, down from $32,433,000 in 2022, a decrease of about 19.3%[21]. - The total comprehensive income (loss) for the nine months ended September 30, 2023, was $(15,630,000), compared to $(4,415,000) for the same period in 2022, reflecting a worsening in overall financial performance[19]. Asset and Loan Growth - Total assets increased to $2,944,139,000 as of September 30, 2023, up from $2,739,178,000 at December 31, 2022, representing a growth of 7.5%[15]. - Net loans reached $2,056,538,000, an increase of 8.4% from $1,897,951,000 at December 31, 2022[15]. - The loan portfolio increased by $165.2 million or 8.6% in the nine months ended September 30, 2023[199]. - The total loan portfolio amounted to $2,079,860,000, an increase from $1,914,674,000 at December 31, 2022, representing an 8.6% growth year-over-year[49]. - The company experienced a net increase in demand, savings, and money market accounts of $79,565,000 for the nine months ended September 30, 2023, compared to $26,681,000 in 2022, showing significant growth in deposits[21]. Interest Income and Expense - Interest income for the nine months ended September 30, 2023, was $93,352,000, a 41.5% increase compared to $65,955,000 for the same period in 2022[16]. - Total interest income for the nine months ended September 30, 2023, was $93.4 million, an increase of $27.4 million or 41.5% compared to $66.0 million for the same period in 2022[203]. - Total interest expense for the nine months ended September 30, 2023, was $44.0 million, an increase of $34.7 million or 374.5% compared to the same period in 2022[203]. - Interest expense on deposits for the nine months ended September 30, 2023, was $42.4 million, an increase from $8.2 million for the same period in 2022[206]. - The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2023, was 2.54%, down from 3.17% for the first nine months of 2022[204]. Deposits and Equity - Total deposits increased to $2,599,937,000, up 9.3% from $2,378,877,000 at December 31, 2022[15]. - Shareholders' equity decreased to $226,665,000 as of September 30, 2023, from $228,923,000 at December 31, 2022[15]. - The total fair value of debt securities in an unrealized loss position was $550,174,000, with total unrealized losses of $144,132,000 as of September 30, 2023[38]. - The total allowance for credit losses as of September 30, 2023, was $23,322,000, with specific reserves on loans evaluated individually amounting to $266,000[82]. Credit Losses and Provisions - The provision for credit losses for the nine months ended September 30, 2023, was $6,210 thousand, indicating proactive management of credit risk[104]. - The allowance for credit losses (ACL) increased by $6,210,000 upon the adoption of ASC 326, recorded as a charge to retained earnings on January 1, 2023[69]. - The allowance for credit losses as a percent of total loans stood at 1.12% as of September 30, 2023, compared to 0.87% at December 31, 2022, and 0.88% at September 30, 2022[84]. - The total past-due loans as of September 30, 2023, amounted to $997,000, with 90+ days past due loans totaling $1,988,000[51]. - Non-accrual loans totaled $2,553,000 as of September 30, 2023, compared to $1,755,000 at December 31, 2022, indicating an increase in non-performing assets[54]. Securities and Investments - The company reported a net unrealized loss on securities available for sale of $9,134,000 for the nine months ended September 30, 2023, compared to a loss of $45,943,000 in 2022, indicating an improvement in the valuation of securities[22]. - The amortized cost of available-for-sale securities was $353,140,000, with an estimated fair value of $284,972,000, reflecting unrealized losses of $68,170,000[29]. - The carrying value of mortgage servicing rights was $2,246,000 as of September 30, 2023, down from $2,493,000 at December 31, 2022, and $2,594,000 at September 30, 2022[135]. - The fair value of U.S. Treasury & Agency securities in the available-for-sale category was $38,252,000, down from an amortized cost of $45,851,000, indicating a loss of $7,599,000[29]. - The company has not established an ACL for available-for-sale securities, as all are deemed investment grade[30]. Operational Expenses - Total non-interest expense for the quarter was $11,006,000, slightly down from $11,371,000 in the same quarter of 2022[16]. - Non-interest expense for the nine months ended September 30, 2023, was $32.6 million, up $378,000 or 1.2% from the same period in 2022[196]. - The company recognized $607,000 in expense for restricted stock grants in the nine months ended September 30, 2023, with an unrecognized expense of $1,069,000 remaining[110]. - The expense related to the 401(k) plan was $826,000 for the nine months ended September 30, 2023, an increase from $752,000 in the same period of 2022[114]. - The company provided supplemental retirement benefits expense of $57,000 for the nine months ended September 30, 2023, down from $231,000 in the same period of 2022[115].