On July 24, 2024, First Bancorp Inc (FNLC, Financial) released its 8-K filing for the second quarter of 2024. First Bancorp Inc, a Damariscotta-based bank holding company, provides a range of retail and commercial banking services, including deposit accounts and consumer, commercial, and mortgage loans. The company also offers investment management and private banking services through an operating division of the bank.
Financial Performance and Key Metrics
First Bancorp Inc (FNLC, Financial) reported unaudited net income of $6.2 million for the quarter ended June 30, 2024, with diluted earnings per share of $0.55. This represents a 2.5% increase in net income from the first quarter of 2024. Year-to-date net income for 2024 was $12.2 million, with diluted earnings per share of $1.10.
Key financial achievements for the second quarter include:
- Total assets reached $3.08 billion, an increase of $106.8 million from Q1.
- Pre-tax, pre-provision (PTPP) earnings increased by $1.2 million or 18.1% from Q1.
- Loan balances grew at an annualized rate of 13.6% to $2.25 billion.
- Non-performing assets to total assets ratio remained stable at 0.09%.
- Efficiency ratio improved by 4.8 percentage points from Q1.
- Quarterly shareholder dividend increased by $0.01 to $0.36 per share.
Income Statement Highlights
Net interest income for the quarter was $15.1 million, a 1.3% increase from the first quarter of 2024. The net interest margin stabilized at 2.21%, slightly down from 2.22% in Q1. The average tax-equivalent yield on earning assets increased by 13 basis points to 5.22%, while the cost of total liabilities also increased by 13 basis points to 3.48%.
The provision for credit losses on loans was $539,000, up from $99,000 in Q1, driven by loan growth and slightly less favorable economic projections. Total non-interest income was $4.2 million, a 14.2% increase from Q1, with notable gains in debit card income (12.4%), wealth management revenue (26.8%), and other operating income (29.4%).
Balance Sheet and Asset Quality
Total assets at June 30, 2024, were $3.08 billion, up $106.8 million from Q1 and $210.1 million from a year ago. Loan growth was led by commercial credit, with significant increases in commercial real estate, commercial and industrial, and multifamily loan balances. Total deposits were $2.58 billion, up $29.1 million during the quarter.
Asset quality remained strong, with the ratio of non-performing assets to total assets at 0.09%, unchanged from Q1. The allowance for credit losses on loans stood at 1.10% of total loans, slightly down from 1.11% in Q1.
Capital and Dividend
The company's regulatory capital position remained robust, with a leverage capital ratio of 8.58% and a total risk-based capital ratio of 13.24%. The tangible book value per share was $19.20, up from $19.03 in Q1. On June 27, 2024, the Board of Directors declared a second-quarter dividend of $0.36 per share, paid on July 19, 2024.
CEO Commentary
"I am pleased to report our operating results for the second quarter," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income increased 2.5% from the first quarter of 2024, and diluted earnings per share increased 2.4%. On a pre-tax, pre-provision basis, second-quarter earnings increased $1.2 million, or 18.1%, from the first quarter of 2024."
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from First Bancorp Inc for further details.
