The First Bancorp(US:FNLC)2024-05-07 13:33Financial Performance - Net income for Q1 2024 was $6,021,000, a decrease of 24.5% from $7,971,000 in Q1 2023[16]. - Basic earnings per common share decreased to $0.55 in Q1 2024 from $0.73 in Q1 2023, reflecting a decline of 24.7%[16]. - Net interest income for Q1 2024 was $14.9 million, a decrease of $2.6 million or 14.8% from Q1 2023, with a net interest margin of 2.22%[201]. - Non-interest income for Q1 2024 was $3.6 million, an increase of $71,000 or 2.0% from Q1 2023, with mortgage banking revenue down $62,000 or 32.3%[193][206]. - The provision for credit losses on loans for Q1 2024 was $99,000, significantly down from $550,000 in Q1 2023, reflecting improved economic conditions[196]. - Pre-tax, pre-provision net income for Q1 2024 was $6.8 million, down from $10.2 million in Q1 2023[190]. - Return on average assets was 0.82% and return on average tangible common equity was 11.36% for Q1 2024, down from 1.16% and 15.64% respectively in Q1 2023[200]. Asset and Loan Growth - Total assets increased to $2,978,170,000 as of March 31, 2024, up from $2,946,698,000 at December 31, 2023, representing a growth of 1.06%[14]. - Net loans rose to $2,149,539,000, compared to $2,105,424,000 at the end of 2023, marking an increase of 2.09%[14]. - The total loan portfolio amounted to $2,173,746,000, an increase from $2,129,454,000 as of December 31, 2023, and $1,982,847,000 as of March 31, 2023[47]. - Total deposits decreased to $2,548,988,000 as of March 31, 2024, down from $2,599,662,000 at the end of 2023, a decline of 1.95%[14]. - The company experienced a net decrease in demand, savings, and money market accounts of $(45,854,000) in Q1 2024[20]. Interest Income and Expenses - Interest income for the three months ended March 31, 2024, was $34,988,000, up 21.5% from $28,914,000 in the same period of 2023[16]. - Total interest income for Q1 2024 was $35.0 million, an increase of $6.1 million or 21.0% compared to Q1 2023, while total interest expense rose by $8.7 million or 75.8% to $20.1 million[201]. - Net interest income on a tax-equivalent basis decreased by $2.5 million or 14.1% in Q1 2024 compared to Q1 2023[192]. Credit Losses and Allowances - The allowance for credit losses (ACL) as a percentage of total loans stood at 1.11% as of March 31, 2024, compared to 1.13% at December 31, 2023, and 1.18% at March 31, 2023[81]. - The total ACL as of March 31, 2024, was $24,207,000, with specific reserves on loans evaluated individually amounting to $243,000[79]. - The allowance for credit losses (ACL) on loans increased by $177,000, while ACL on off-balance commitments and held-to-maturity securities decreased by $360,000 and $252,000, respectively[178]. Securities and Fair Value - The total amortized cost of securities available for sale was $328,648,000 with an estimated fair value of $274,451,000 as of March 31, 2024[27]. - The company reported a net unrealized loss on available-for-sale securities of $(54,316,000) as of March 31, 2024[27]. - The fair value of mortgage servicing rights was $3,423,000 as of March 31, 2024, down from $3,583,000 at December 31, 2023[136]. - The carrying value of total loans was $2,149,539,000, with an estimated fair value of $2,016,120,000, indicating a decrease in fair value of approximately 6.2%[165]. Dividends and Shareholder Returns - The company declared cash dividends of $0.35 per share, totaling $3,896,000 for the period[19]. - Dividends declared year-to-date totaled $0.35 per share, representing a payout of 63.64% of basic earnings per share for the period[191]. Economic and Market Conditions - Concerns regarding economic uncertainty due to geopolitical conflicts and inflation could negatively impact the company's operating results[25]. - The overall health of the economy, including unemployment rates and housing prices, significantly impacts the credit quality across various loan segments[74][76][77].