First Bancorp Q2 2024: Assets Rise, Net Income Up

TL;DR

First Bancorp's assets hit $2.79B, net income up to $24.4M for H1 2024. Solid growth.

AI Summary

First Bancorp, Inc. reported its financial results for the period ending June 30, 2024. The company's total assets stood at $2.79 billion as of June 30, 2024, a slight increase from $2.77 billion at the end of 2023. Net income for the six months ended June 30, 2024, was $24.4 million, compared to $23.1 million for the same period in 2023.

Why It Matters

This filing provides insight into the financial health and performance of First Bancorp, a regional bank, impacting investors and customers in its operating regions.

Risk Assessment

Risk Level: low — The filing indicates stable financial performance with modest asset and income growth, suggesting low immediate risk.

Key Numbers

• $2.79B — Total Assets (As of June 30, 2024, showing growth from year-end 2023.)
• $24.4M — Net Income (YTD) (For the six months ended June 30, 2024, indicating improved profitability year-over-year.)
• $23.1M — Net Income (Prior YTD) (For the six months ended June 30, 2023, for comparison.)

Key Players & Entities

• First Bancorp, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• $2.79 billion (dollar_amount) — Total assets as of June 30, 2024
• $2.77 billion (dollar_amount) — Total assets as of December 31, 2023
• $24.4 million (dollar_amount) — Net income for the six months ended June 30, 2024
• $23.1 million (dollar_amount) — Net income for the six months ended June 30, 2023

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share FNLC NASDAQ Global Select Mar

Filing Documents

• fnlc-20240630.htm (10-Q) — 5300KB
• a20240630-fnlcxex311.htm (EX-31.1) — 7KB
• a20240630-fnlcxex312.htm (EX-31.2) — 7KB
• a20240630-fnlcxex321.htm (EX-32.1) — 3KB
• a20240630-fnlcxex322.htm (EX-32.2) — 3KB
• 0000765207-24-000040.txt ( ) — 22593KB
• fnlc-20240630.xsd (EX-101.SCH) — 61KB
• fnlc-20240630_cal.xml (EX-101.CAL) — 119KB
• fnlc-20240630_def.xml (EX-101.DEF) — 406KB
• fnlc-20240630_lab.xml (EX-101.LAB) — 712KB
• fnlc-20240630_pre.xml (EX-101.PRE) — 601KB
• fnlc-20240630_htm.xml (XML) — 6568KB

Financial Information

Part I. Financial Information 1

Selected Financial Data (Unaudited)

Selected Financial Data (Unaudited) 1

– Financial Statements

Item 1 – Financial Statements 2 Report of Independent Registered Public Accounting Firm 2 Consolidated Balance Sheets (Unaudited) 3 Consolidated Statements of Income and Comprehensive Income (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) 5 Consolidated Statements of Cash Flows (Unaudited) 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Note 1 – Basis of Presentation 9 Note 2 –Investment Securities 10 Note 3 – Loans 15 Note 4 – Allowance for Credit Losses 23 Note 5 – Stock-Based Compensation 36 Note 6 – Preferred and Common Stock 36 Note 7 – Earnings Per Share 37 Note 8 – Employee Benefit Plans 37 Note 9 – Other Comprehensive Income (Loss) 39 Note 10 – Financial Derivative Instruments 39 Note 11 – Mortgage Servicing Rights 41 Note 12 – Income Taxes 41 Note 13 – Certificates of Deposit 42 Note 14 – Reclassifications 42 Note 15 – Fair Value Disclosures 42 Note 16 – Impact of Recently Issued Accounting Standards 50

– Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 51

Forward-Looking Statements

Forward-Looking Statements 51 Critical Accounting Policies 51 Use of Non-GAAP Financial Measures 53 Executive Summary 54 Net Interest Income 55 Average Daily Balance Sheets 58 Non-Interest Income 59 Non-Interest Expense 59 Income Taxes 59 Investments 59 Debt Securities -Unrealized Loss Position 61 Federal Home Loan Bank Stock 63 Loans and Loans Held for Sale 63 Credit Risk Management and Allowance for Credit Losses 65 Non-Performing Loans and L oan Modifications 69 Past Due Loans 71 Potential Problem Loans and Loans in Process of Foreclosure 71 Other Real Estate Owned 72 Liquidity 72 Deposits 73 Borrowed Funds 73 Capital Resources 73 Off-Balance-Sheet Financial Instruments and Contractual Obligations 74

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 76 Market-Risk Management 76 Asset/Liability Management 76 Interest Rate Risk Management 77

- Controls and Procedures 78

Item 4 - Controls and Procedures 78

Other Information

Part II. Other Information 79

– Legal Proceedings

Item 1 – Legal Proceedings 79

– Risk Factors

Item 1a – Risk Factors 79

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 79

– Default Upon Senior Securities

Item 3 – Default Upon Senior Securities 79

– M ine Safety Disclosures

Item 4 – M ine Safety Disclosures 79

– Other Information

Item 5 – Other Information 79

– Exhibits

Item 6 – Exhibits 80

Financial Information

Part I. Financial Information

Selected Financial Data (Unaudited)

Selected Financial Data (Unaudited) The First Bancorp, Inc. and Subsidiary Dollars in thousands, As of and for the six months ended June 30, As of and for the quarter ended June 30, except for per share amounts 2024 2023 2024 2023 Summary of Operations Interest Income $ 71,546 $ 60,098 $ 36,558 $ 31,184 Interest Expense 41,591 26,698 21,483 15,259 Net Interest Income 29,955 33,400 15,075 15,925 Credit Loss (Reduction) Expense (1) 701 512 151 Non-Interest Income 7,797 7,439 4,157 3,870 Non-Interest Expense 23,011 21,565 11,250 10,715 Net Income 12,192 15,365 6,171 7,394 Per Common Share Data Basic Earnings per Share $ 1.10 $ 1.40 $ 0.56 $ 0.67 Diluted Earnings per Share 1.10 1.39 0.55 0.67 Cash Dividends Declared 0.71 0.69 0.36 0.35 Book Value per Common Share 21.96 20.94 21.96 20.94 Tangible Book Value per Common Share 2 19.20 18.15 19.20 18.15 Market Value 24.85 24.34 24.85 24.34 Financial Ratios Return on Average Equity 1 10.04 % 13.17 % 10.16 % 12.73 % Return on Average Tangible Common Equity 1,2 11.49 % 15.16 % 11.63 % 14.67 % Return on Average Assets 1 0.82 % 1.10 % 0.82 % 1.04 % Average Equity to Average Assets 8.18 % 8.37 % 8.10 % 8.20 % Average Tangible Equity to Average Assets 2 7.15 % 7.28 % 7.08 % 7.11 % Net Interest Margin Tax-Equivalent 1,2 2.21 % 2.62 % 2.21 % 2.46 % Dividend Payout Ratio 64.31 % 49.29 % 64.40 % 52.24 % Allowance for Credit Losses/Total Loans 1.10 % 1.14 % 1.10 % 1.14 % Non-Performing Loans to Total Loans 0.11 % 0.08 % 0.11 % 0.08 % Non-Performing Assets to Total Assets 0.09 % 0.06 % 0.09 % 0.06 % Efficiency Ratio 2 58.70 % 51.10 % 56.35 % 52.27 % At Period End Total Assets $ 3,084,944 $ 2,874,815 $ 3,084,944 $ 2,874,815 Total Loans 2,247,670 2,060,953 2,247,670 2,060,953 Total Investment Securities 658,133 673,569 658,133 673,569 Total Deposits 2,578,080 2,499,862 2,578,080 2,499,862 Total Shareholders' Equity 244,668 232,003 244,668 232,003 1 Annualized using a 366-day basis in 2024 and

– Financial Statements

Item 1 – Financial Statements Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders The First Bancorp, Inc. Results of Review of Interim Financial Information We have reviewed the accompanying interim consolidated financial information of The First Bancorp, Inc. and Subsidiary as of June 30, 2024 and 2023 and for the three-month and six-month periods then ended, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for them to be in conformity with accounting principles generally accepted in the United States of America. Basis for Review Results This consolidated interim financial information is the responsibility of the Company's management. We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ Berry Dunn McNeil & Parker, LLC Portland, Maine August 9, 2024 2 Consolidated Balance Sheets (Unaudited) The First Bancorp, Inc. and Subsidiary June 30, 2024 December 31, 2023 June 30, 2023 Assets Cash and cash equivalents $ 27,816,000 $ 31,942,000 $ 25,077,000 Interest bearing deposits in other banks 33,133,000 3,488,000 3,978,000 Securities available for sale 273,501,000 282,053,000 278,355,000 Securities held-to-maturity (net of ACL), fair value of $ 321,616,000 at June 30, 2024, $ 338,570,000 at December 31, 2023 and $

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements The First Bancorp, Inc. and Subsidiary Note 1 – Basis of Presentation The Company is a financial holding company that owns all of the common stock of the Bank. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of Management, all adjustments (consisting of normally recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions and balances are eliminated in consolidation. The income reported for the 2024 period is not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the consolidated financial statements and notes included in the Company's annual report on Form 10-K for the year ended December 31, 2023. The abbreviations and definitions identified below are used throughout this Form 10-Q, including Item 1 - Financial Statements and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q. Abbreviation Description Abbreviation Description ACL Allowance for credit losses GDP Gross domestic product AFS Available-for-sale GNMA Government National Mortgage Association ALCO Asset/Liability Committee HTM Held-to-maturity AOCI Accumulated other comprehensive income (loss) IAL Individually Analyzed Loans ASC Accounting Standards Codification IRS Internal Revenue Service ASU Accounting Standards Update MPF Mortgage Partnership Finance Program BTFP Bank Term Funding Program OAEM Other assets especially mentioned C&I Commercial a

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View this 10-Q filing on SEC EDGAR