May 21, 2019
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The First Bancorp reports 11.8 percent net income increase

Community Author: Rick Elder
Post Date:
Updated:

DAMARISCOTTA — The First Bancorp (Nasdaq: FNLC), parent company of First National Bank, today announced operating results for the three months ended March 31, 2019. Net income was $6.2 million, up $650,000 or 11.8% from the three months ended March 31, 2018. Earnings per common share on a fully diluted basis over the same period were up $0.06 to $0.57 per share, an increase of 11.8% from the prior year.

FIRST QUARTER 2019 FINANCIAL HIGHLIGHTS

  • Net income for the first quarter of 2019 increased 11.8% over the first quarter of 2018 to $6.2 million.
  • Total loans outstanding at March 31, 2019 were $1.26 billion, up $26.4 million in the first quarter and $76.6 million, or 6.5%, year over year.
  • Low cost deposits as of March 31, 2019 totaled $756.7 million, down $26.9 million since year end, consistent with seasonal patterns. Year-over-year, low cost deposits are up $72.0 million, or 10.5%.
  • Efficiency ratio (non-GAAP) improved to 50.45% in the first quarter, down slightly from 50.46% in the fourth quarter of 2018, and down from 53.75% in the first quarter of 2018 (the GAAP Efficiency ratio was 52.35% in the first quarter of 2019, up from 52.29% in the fourth quarter of 2018 and, down from 55.20% in the first quarter of 2018).
  • The non-performing assets to total assets ratio at March 31, 2019 was 0.77%, down from 0.79% at December 31, 2018, and down from 0.83% a year ago.

FINANCIAL CONDITION

Total assets at March 31, 2019 were $1.99 billion, up $46.8 million for the quarter and up $119.5 million from March 31, 2018. First quarter growth was almost entirely in earning assets which increased $45.9 million for the quarter, and were up $121.4 million from March 31, 2018.

Total deposits at March 31, 2019 were $1.61 billion, up $79.8 million for the quarter, and up $178.7 million from March 31, 2018. The Company utilized lower cost brokered certificates of deposits to replace borrowed funds, accounting for $39.9 million of the quarter-to-quarter deposit growth.

The Company’s capital position remained strong as of March 31, 2019, with an estimated total risk-based capital ratio of 15.44%, and an estimated leverage capital ratio of 8.67%, both well in excess of regulatory requirements.

ASSET QUALITY

Asset quality is stable and remains solid. Non-performing assets as a percentage of total assets fell to 0.77% as of March 31, 2019 down from 0.79% at December 31, 2018, and down from 0.83% a year ago.  Past due loans were 0.89% of total loans at March 31, 2019, down from 1.08% of total loans at December 31, 2018 and down from 1.34% a year ago.  A total of $375,000 was provisioned for loan losses in the first quarter of 2019, down from the $500,000 provisioned in the first quarter of 2018.  The allowance for loan losses stood at 0.91% of total loans as of March 31, 2019 level with December 31, 2018, and down slightly from the 0.92% of total loans at March 31, 2018.  Annualized net charge-offs as a percentage of loans were 0.04% as of March 31, 2019, down from 0.08% percent of loans in calendar year 2018, 0.12% in calendar year 2017.

OPERATING RESULTS

Net Income for the three months ended March 31, 2019 was $6.2 million, up $650,000 or 11.8% from the three months ended March 31, 2018. On a fully diluted earnings per share basis, earnings in the first quarter of 2019 were $0.57, up $0.06 or 11.8% from the same period a year ago.  The Company’s Return on Average Assets of 1.27% and Return on Average Tangible Common Equity of 15.09% for the three months ended March 31, 2019 were up from 1.21% and 14.69% respectively from the first quarter of 2018.

Contributing to the Company’s first quarter 2019 results were:

  • Earning asset growth led to a $539,000 increase in tax-equivalent net interest income from the first quarter of 2018.
  • Annualized tax-equivalent Net Interest Margin for the first quarter of 2019 was 2.93%, up from a 2.92% margin in the fourth quarter of 2018, and down from the 3.00% margin of a year ago.
  • Non-interest income net of securities gains was $3.1 million for the three months ended March 31, 2019 up nominally from the $3.0 million for the same period in 2018. Revenue growth from First National Wealth Management and deposit-based charges offset a period-to-period decline in mortgage banking income.
  • Non-interest expense for the period was $8.4 million, down from the $8.6 million from the first quarter of 2018 with savings centered in employee expenses, and FDIC insurance premiums.

DIVIDEND

The Company’s Board of Directors declared a dividend of 29 cents per share in the first quarter, representing a payout to our shareholders of 50.9% of net income for the period. The first quarter dividend is payable on April 30, 2019 to shareholders of record as of April 10, 2019.

ABOUT THE FIRST BANCORP

The First Bancorp, the parent company of First National Bank, is based in Damariscotta, Maine. Founded in 1864, First National Bank is a full-service community bank with $2.0 billion in assets.  The Bank provides a complete array of commercial and retail banking services through sixteen locations in mid-coast and eastern Maine.   First National Wealth Management, a division of the Bank, provides investment management and trust services to individuals, businesses, and municipalities.  More information about The First Bancorp, First National Bank and First National Wealth Management may be found at www.thefirst.com.

 

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially, as discussed in the Company’s filings with the Securities and Exchange Commission.

Additional Information

For more information, please contact Richard M. Elder, The First Bancorp’s Treasurer & Chief Financial Officer, at 207.563.3195.