The First Bancorp Reports Strong Q4 Results for 2024

The First Bancorp's Financial Performance

The First Bancorp (NASDAQ: FNLC), the parent company of First National Bank, has recently revealed its financial results for the fourth quarter and the entire year ending in December 2024. The report highlights a fourth-quarter net income of $7.3 million, marking a notable 9% increase from the previous year's final quarter. This translates to an earnings per share of $0.65 for the quarter, which also reflects an upward trend compared to $0.60 from the same period in 2023.

Summary of Fourth Quarter Highlights

Key Financial Metrics

Significant items from the fourth quarter include:

• Total loans surged by $33.7 million, enjoying a 5.9% annualized growth rate.
• Core deposits climbed by $33 million.
• Net interest income rose 7% from Q3 2024, and 10.7% from Q4 2023.
• Net interest margin improved by 10 basis points from Q3 2024.
• Efficiency ratio improved to 53.39%.
• The bank also declared a quarterly dividend of $0.36 per share.

Comments from Leadership

President and CEO Tony C. McKim commented, "Though our annual earnings of $27 million reflects a decrease from the last year, we are optimistic about the growth in net interest income during the latter half of the year, attributed to a steadily increasing net interest margin. In 2024, we saw the total loan portfolio grow by $211.5 million, which translates to a 9.9% increase, while we maintained strong asset quality throughout the year."

Comprehensive Financial Results

The unaudited financial results for the entirety of 2024 showcased a total income of $27 million, down from $29.5 million in 2023. When looking at per share results, earnings on a diluted basis were reported at $2.43, which is a decline from last year's $2.67.

Analysis of Net Interest Income

For Q4 2024, net interest income was recorded at $17.6 million. This is an increase of $1.2 million, or 7%, from Q3 2024, and $1.7 million, or 10.7%, from Q4 2023. The net interest margin was reported at 2.42%, enhancing by 10 basis points from the previous quarter. Moreover, the average tax-equivalent yield on earning assets was 5.25% for Q4 2024.

Credit Loss Provisions and Asset Quality

The total provision for credit losses amounted to $1.16 million for the fourth quarter 2024, reflecting a reversal of a $638,000 provision recorded in the third quarter of 2024. This uptick in provisions indicates the need for adjustment based on loan growth and specific reserve requirements identified within notable loans.

Non-Interest Income and Expenses

Overall, non-interest income for the quarter reached $4.4 million, which is up $314,000 from the previous quarter. This uptick was primarily driven by increased debit card revenue. The bank’s non-interest expenses totaled $12.1 million, regarding a minor increase of $145,000, contributing to an efficiency ratio of 53.39%, an improvement from previous quarters.

Loans, Total Assets & Funding

The First Bancorp reported total assets of $3.15 billion for the quarter, signifying a growth of $205.3 million from the previous year. The bank's ability to extend over $600 million in new loans and witness an increase in deposit accounts reinforces its commitment to growth and community support.

Looking Ahead

In summary, The First Bancorp's 2024 financial performance highlights strong operational resilience amidst a challenging economic landscape. With a proactive approach towards asset management and customer service, the bank is optimistic about sustaining its growth trajectory in the upcoming periods.

Frequently Asked Questions

What are the key highlights from The First Bancorp's Q4 results?

The key highlights include a net income of $7.3 million, total loans increasing by $33.7 million, and a dividend of $0.36 per share.

How did the net interest income perform in 2024?

Net interest income for Q4 2024 was $17.6 million, a rise of 7% from Q3 2024 and 10.7% from Q4 2023.

What is the efficiency ratio reported by The First Bancorp?

The reported efficiency ratio for Q4 2024 is 53.39%, which shows an improvement compared to prior quarters.

What are the expectations for asset quality in 2025?

The bank expects to maintain stable and favorable asset quality, as highlighted by low non-performing assets ratios.

What is the total amount in loans reported for Q4 2024?

The First Bancorp reported total loans of $2.34 billion as of December 31, 2024, showcasing considerable growth.

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