First Bancorp Q3 2024 10-Q Filing

TL;DR

First Bancorp (FNLC) filed its Q3 2024 10-Q. All systems go.

AI Summary

First Bancorp, Inc. reported its financial results for the period ending September 30, 2024. The company's filings indicate ongoing operations within the national commercial banking sector, with its principal executive offices located in Damariscotta, Maine. The filing covers the third quarter of 2024, providing updated financial data compared to previous periods.

Why It Matters

This 10-Q filing provides investors and analysts with crucial financial data for First Bancorp, Inc. for the third quarter of 2024, enabling informed investment decisions.

Risk Assessment

Risk Level: low — This filing is a routine quarterly report and does not contain any immediately apparent significant risks or negative developments.

Key Numbers

• 2024 Q3 — Reporting Period (The filing covers the third quarter of 2024.)
• 1231 — Fiscal Year End (The company's fiscal year ends on December 31st.)

Key Players & Entities

• First Bancorp, Inc. (company) — Filer of the 10-Q
• Damariscotta, Maine (location) — Location of company's business address
• 20240930 (date) — Conformed period of report
• 20241108 (date) — Filed as of date

FAQ

Key Financial Figures

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

Filing Documents

• fnlc-20240930.htm (10-Q) — 5518KB
• a20240930-fnlcxex311.htm (EX-31.1) — 7KB
• a20240930-fnlcxex312.htm (EX-31.2) — 7KB
• a20240930-fnlcxex321.htm (EX-32.1) — 3KB
• a20240930-fnlcxex322.htm (EX-32.2) — 3KB
• 0000765207-24-000050.txt ( ) — 23425KB
• fnlc-20240930.xsd (EX-101.SCH) — 62KB
• fnlc-20240930_cal.xml (EX-101.CAL) — 127KB
• fnlc-20240930_def.xml (EX-101.DEF) — 406KB
• fnlc-20240930_lab.xml (EX-101.LAB) — 719KB
• fnlc-20240930_pre.xml (EX-101.PRE) — 606KB
• fnlc-20240930_htm.xml (XML) — 6918KB

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 24 Note 5 – Stock-Based Compensation 37 Note 6 – Preferred and Common Stock 37 Note 7 – Earnings Per Share 38 Note 8 – Employee Benefit Plans 38 Note 9 – Other Comprehensive Income (Loss) 40 Note 10 – Financial Derivative Instruments 40 Note 11 – Mortgage Servicing Rights 42 Note 12 – Income Taxes 42 Note 13 – Certificates of Deposit 43 Note 14 – Reclassifications 43 Note 15 – Fair Value Disclosures 43 Note 16 – Impact of Recently Issued Accounting Standards 51

– 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 52

Forward-Looking Statements

Forward-Looking Statements 52 Critical Accounting Policies 52 Use of Non-GAAP Financial Measures 54 Executive Summary 55 Net Interest Income 56 Average Daily Balance Sheets 59 Non-Interest Income 60 Non-Interest Expense 60 Income Taxes 60 Investments 60 Debt Securities -Unrealized Loss Position 62 Federal Home Loan Bank Stock 63 Loans and Loans Held for Sale 64 Credit Risk Management and Allowance for Credit Losses 66 Non-Performing Loans and L oan Modifications 70 Past Due Loans 72 Potential Problem Loans and Loans in Process of Foreclosure 72 Other Real Estate Owned 73 Liquidity 73 Deposits 74 Borrowed Funds 74 Capital Resources 74 Off-Balance-Sheet Financial Instruments and Contractual Obligations 75

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 77 Market-Risk Management 77 Asset/Liability Management 77 Interest Rate Risk Management 78

- Controls and Procedures 79

Item 4 - Controls and Procedures 79

Other Information

Part II. Other Information 80

– Legal Proceedings

Item 1 – Legal Proceedings 80

– Risk Factors

Item 1a – Risk Factors 80

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 80

– Default Upon Senior Securities

Item 3 – Default Upon Senior Securities 80

– M ine Safety Disclosures

Item 4 – M ine Safety Disclosures 80

– Other Information

Item 5 – Other Information 80

– Exhibits

Item 6 – Exhibits 81

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 nine months ended September 30, As of and for the quarter ended September 30, except for per share amounts 2024 2023 2024 2023 Summary of Operations Interest Income $ 109,833 $ 93,352 $ 38,287 $ 33,254 Interest Expense 63,476 43,998 21,885 17,300 Net Interest Income 46,357 49,354 16,402 15,954 Credit Loss (Reduction) Expense (639) 501 (638) (200) Non-Interest Income 11,919 11,330 4,122 3,891 Non-Interest Expense 35,011 32,571 12,000 11,006 Net Income 19,763 22,839 7,571 7,474 Per Common Share Data Basic Earnings per Share $ 1.79 $ 2.08 $ 0.69 $ 0.68 Diluted Earnings per Share 1.78 2.06 0.68 0.67 Cash Dividends Declared 1.07 1.04 0.36 0.35 Book Value per Common Share 23.03 20.44 23.03 20.44 Tangible Book Value per Common Share 2 20.27 17.66 20.27 17.66 Market Value 26.32 23.50 26.32 23.50 Financial Ratios Return on Average Equity 1 10.67 % 13.00 % 11.86 % 12.67 % Return on Average Tangible Common Equity 1,2 12.19 % 14.97 % 13.50 % 14.59 % Return on Average Assets 1 0.87 % 1.08 % 0.98 % 1.02 % Average Equity to Average Assets 8.20 % 8.27 % 8.24 % 8.07 % Average Tangible Equity to Average Assets 2 7.18 % 7.18 % 7.24 % 7.01 % Net Interest Margin Tax-Equivalent 1,2 2.25 % 2.54 % 2.32 % 2.40 % Dividend Payout Ratio 59.81 % 50.00 % 52.55 % 51.47 % Allowance for Credit Losses/Total Loans 1.04 % 1.12 % 1.04 % 1.12 % Non-Performing Loans to Total Loans 0.11 % 0.12 % 0.11 % 0.12 % Non-Performing Assets to Total Assets 0.08 % 0.09 % 0.08 % 0.09 % Efficiency Ratio 2 57.88 % 51.88 % 56.37 % 53.49 % At Period End Total Assets $ 3,142,563 $ 2,944,139 $ 3,142,563 $ 2,944,139 Total Loans 2,307,253 2,079,860 2,307,253 2,079,860 Total Investment Securities 669,076 676,206 669,076 676,206 Total Deposits 2,702,718 2,599,937 2,702,718 2,599,937 Total Shareholders' Equity 256,783 226,665 256,783 226,665 1 Annualized using a 366-d

– 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 September 30, 2024 and 2023 and for the three-month and nine-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 November 8, 2024 2 Consolidated Balance Sheets (Unaudited) The First Bancorp, Inc. and Subsidiary September 30, 2024 December 31, 2023 September 30, 2023 Assets Cash and cash equivalents $ 35,136,000 $ 31,942,000 $ 29,894,000 Interest bearing deposits in other banks 17,199,000 3,488,000 38,366,000 Securities available for sale 285,021,000 282,053,000 284,972,000 Securities held-to-maturity (net of ACL), fair value of $ 333,575,000 at September 30, 2024, $ 338,570,000 at

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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