The First Bancorp (FNLC) Q2 2024 earnings summary

Executive summary

• Net income for the six months ended June 30, 2024 was $12.2M, down 20.7% year-over-year, with Q2 net income at $6.2M and diluted EPS of $0.55.

• Diluted EPS for six months was $1.10, down 21.1% from $1.39 in the prior year.

• Pre-tax, pre-provision earnings rose 18.1% from Q1 2024, driven by loan growth and stable net interest margin.

• Total assets grew 4.7% year-to-date to $3.08B, with loan balances at $2.25B after annualized 13.6% Q2 growth.

• Asset quality remains strong with non-performing assets at 0.09% of total assets.

Financial highlights

• Net interest income for six months was $30.0M, down 10.3% year-over-year; Q2 net interest income was $15.1M, up 1.3% from Q1.

• Net interest margin stabilized at 2.21%, down from 2.62% a year ago.

• Non-interest income rose 14.2% sequentially in Q2 to $4.2M, with gains across all business lines.

• Non-interest expense increased 6.7% year-over-year to $23.0M, but decreased 4.3% from Q1 to $11.3M in Q2.

• Provision for credit losses was $638K for six months and $539K in Q2, reflecting loan growth and economic modeling.

Outlook and guidance

• Management expects continued pressure on net interest margin due to funding costs, but asset quality and capital remain strong.

• The Company remains well capitalized, with a total risk-based capital ratio of 13.24% as of June 30, 2024.

• Interest rate risk modeling projects net interest income would increase if rates fall, and decrease by 5.4% if rates rise by 2%.

• Liquidity remains robust, with available day-one liquidity of $594M, covering 143% of estimated uninsured deposits.