The First Bancorp (Nasdaq: FNLC), parent company of First
National Bank, today announced operating results for the year ended
December 31, 2022. Unaudited net income was $39.0 million, an
increase of 7.5% from the $36.3 million reported for the year ended
December 31, 2021. Net of non-recurring Payroll Protection Program
(PPP) revenue, unaudited net income for 2022 was up 14.6% over
2021. Earnings per common share on a fully diluted basis were up
$0.23 to $3.53 per share, an increase of 7.0% from the prior year.
The Company also announced operating results for the three months
ended December 31, 2022. Unaudited net income was $9.2 million, a
decrease of 3.7% from the final three months of 2021. Net of
non-recurring PPP revenue, unaudited net income for the three
months ended December 31, 2022 was up 6.3% from the same period in
2021. Earnings per share on a fully diluted basis for the fourth
quarter of 2022 were $0.83, down $0.04 or 4.6% from the fourth
quarter of 2021.
“I'm pleased to report that The First Bancorp closed 2022 with
record annual earnings of $39.0 million," commented Tony C. McKim,
the Company’s President and Chief Executive Officer. "Driving our
2022 earnings performance was a 14.9% year-over-year increase in
net interest income before loan loss provision which resulted from
loan growth of $267.0 million or 16.2% for the year. Our net
interest margin for the year was 3.15%, up from 2.95% in 2021. The
increase in annual net interest income helped to mitigate a sharp
reduction in mortgage banking revenue from the prior year.
Operating costs remained largely in check as demonstrated by an
efficiency ratio of 45.96% for the year."
Mr. McKim continued, "In the fourth quarter of 2022, the Company
had net income of $9.2 million as compared to net income of $9.5
million in the fourth quarter of 2021. On a pre-tax, pre-provision
basis (PTPP) (non-GAAP), net income for the fourth quarter of 2022
was $11.6 million compared to $9.6 million in the fourth quarter of
2021, when a reverse provision for loan losses of $2.0 million was
recorded. Net interest income before loan loss provision in the
fourth quarter of 2022 increased 10.1% from the fourth quarter of
2021, a period which included $1.1 million in interest income
attributable to PPP compared to zero in the fourth quarter of 2022.
Non-interest income declined $952,000 period-to-period attributable
to mortgage banking revenue and recognition of certain one-time
gains in the fourth quarter of 2021. Operating expenses for the
fourth quarter of 2022 decreased by $1.1 million from the fourth
quarter of 2021, the result of one-time expenses associated with
the sale of loans recorded in the prior year period, and increased
compensation costs.
"Reflecting upon the year just concluded, a number of
accomplishments stand out. We opened our eighteenth office in
Brewer, Maine and look forward to serving that community for many
years to come. A new online banking and mobile banking platform was
introduced to enhance user experience and engagement. The Bank
funded a total of $713 million in new loans in 2022 to benefit
businesses and consumers across our footprint. Through donations,
sponsorships and volunteerism we continue to support numerous
causes and events throughout the State, and we were proud to
announce a $300,000 long-term commitment to the Maine Lobsterman's
Association. Finally, we were pleased to be honored as a Piper
Sandler Companies Sm-All Star for 2022, the only company in New
England to be so honored. These accomplishments and many more are
made possible by our team of more than 270 bankers whose efforts on
behalf of our customers and communities continue to stand out each
and every day."
2022 FINANCIAL
HIGHLIGHTS
- Net income increased 7.5% over 2021, setting a new high-mark
for annual earnings.
- Pre-tax, pre-provision net income (non-GAAP) increased 12.9%
compared to 2021.
- Total assets increased $212.1 million, ending the year at $2.74
billion.
- Total loans outstanding at December 31, 2022 were $1.91
billion, up $267.0 million or 16.2%, year-over-year.
- Total deposits as of December 31, 2022 totaled $2.38 billion,
an increase of $255.6 million or 12.0% year-over-year.
- Efficiency Ratio (non-GAAP) was 45.96% for 2022, down from
47.81% in 2021 (the GAAP Efficiency Ratio was 47.19% for the year,
down from 49.19% in 2021).
FINANCIAL CONDITION
Total assets at December 31, 2022 were $2.74 billion, up $212.1
million from the prior year end. Earning assets increased $190.5
million year-over-year, as loan balances grew $267.0 million,
interest-bearing cash balances declined by $63.0 million and
investments declined by $13.7 million. Loan portfolio growth in
2022 was led by commercial real estate and construction loans which
increased $137.7 million, including $25.5 million in the fourth
quarter. Residential mortgage and construction loans increased
$81.3 million year-over-year, other commercial loans increased
$54.8 million and home equity line of credit balances increased by
$2.9 million. Overall loan growth excluding PPP totaled $289.0
million, or 17.8% for the year. PPP loan balances were near zero at
year-end 2022.
Total deposits at December 31, 2022 were $2.38 billion, up
$255.6 million or 12.0% from December 31, 2021. Low-cost deposits
decreased $31.6 million year-over-year centered in demand and NOW
balances. Certificate of deposit balances increased $301.5 million
year-over-year, while borrowed funds decreased by $32.9
million.
The Company’s capital position remained strong as of December
31, 2022, with an estimated total risk-based capital ratio of
13.65%, and an estimated leverage capital ratio of 9.01%. These
measures compare to 14.27% and 8.63% respectively as of December
31, 2021. The Company's tangible book value was $17.93 per share as
of December 31, 2022, a decrease from $19.52 a year earlier, and up
from $17.13 as of September 30, 2022. The period to period changes
are the result of changes in the unrealized loss position on
available for sale securities. Removing the effect of these
unrealized losses, the adjusted tangible book value (non-GAAP) as
of these dates would have been $21.98 as of December 31, 2022,
$19.68 as of December 31, 2021, and $21.44 as of September 30,
2022.
ASSET QUALITY & PROVISION FOR LOAN
LOSSES
Asset quality continues to be strong and stable. As of December
31, 2022, the ratio of non-performing assets to total assets was
0.06%, improved from 0.23% a year earlier. The ratio of
non-performing loans to total loans stood at 0.09%, improved from
0.35% at December 31, 2021. Net charge-offs as a percentage of
loans were 0.03% as of December 31, 2022, up slightly from 0.02% in
2021 and down from 0.10% in 2020. Past due loans were 0.08% of
total loans as of December 31, 2022, down from 0.26% of total loans
at December 31, 2021.
The allowance for loan losses stood at 0.87% of total loans as
of December 31, 2022, down modestly from 0.94% of total loans at
December 31, 2021. Management considers the allowance to be at an
appropriate level given the strong asset quality metrics at
year-end. As reported in the Company's earnings release for the
third quarter of 2022, the Bank has no remaining active COVID-19
related modifications in its loan portfolio.
OPERATING RESULTS
Net income for the year ended December 31, 2022 was $39.0
million, up $2.7 million or 7.5% from the year ended December 31,
2021. On a fully diluted earnings per share basis, 2022 earnings
were $3.53, up $0.23 or 7.0% from the prior year. The Company’s
Return on Average Assets for the year ended December 31, 2022 was
1.49% , up slightly from 1.48% for the year ended December 31,
2021. On a PTPP (non-GAAP) basis, 2022 Return on Average Assets was
1.87%, up from 1.78% the prior year. Return on Average Tangible
Common Equity was 19.15% for the year ended December 31, 2022, up
from 17.64% for the year ended December 31, 2021. On a PTPP basis
(non-GAAP), Return on Average Tangible Common Equity for 2022 was
24.13%, up from 21.18% in 2021. The Company's Efficiency Ratio
(non-GAAP) was 45.96% for the year ended December 31, 2022,
improved from 47.81% in 2021. (GAAP Efficiency Ratio was 47.19% for
the year ended December 31, 2022, down from 49.19% in 2021.)
Contributing factors to the Company’s 2022 annual and fourth
quarter results included:
- Earning asset growth coupled with a wider balance sheet spread
led to a $9.9 million increase in tax-equivalent net interest
income year-over-year, an increase of 14.4%. In the fourth quarter
of 2022, tax equivalent net interest income was up $1.8 million
from the same period in 2021, an increase of 10.0%. The
period-to-period increases include net reductions in PPP related
interest income of $2.7 million for the year and $1.1 million in
the fourth quarter.
- Net interest margins improved to 3.09% for the quarter ended
December 31, 2022 and 3.15% for the year then ended, as compared to
3.00% and 2.95% respectively for the same periods in 2021.
- Non-interest income before net securities gains was $16.9
million for the year ended December 31, 2022, down $2.5 million or
12.9% from 2021. The decrease in non-interest income is primarily
attributable to a 72.8% reduction in mortgage banking revenue from
2021, as higher interest rates dramatically slowed refinance
activity from the elevated levels of the prior two years, and
negatively impacted both gain on sale income and mortgage servicing
rights valuation. Debit card revenue increased 21.9%
year-over-year, while a 1.6% increase in revenues was achieved by
First National Wealth Management, the Bank’s trust and investment
management division, despite adverse market conditions.
- Non-interest expense for 2022 was $43.9 million, up $1.8
million or 4.2% from 2021. Employee salary and benefit expense
increased 10.2% from the prior year, partially the result of
increased staffing associated with the Bank's opening of a new
branch. Occupancy expense, furniture & equipment expense, and
FDIC insurance premiums each had modest dollar increases from 2021.
Other operating expenses decreased 9.1% year-to-year attributable
to loan sale expenses recognized in the fourth quarter of
2021.
DIVIDEND
On December 15, 2022, the Company's Board of Directors declared
a fourth quarter dividend of $0.34 per share. The fourth quarter
dividend represents a payout to shareholders of 40.48% of earnings
per share for the period, and will be paid on January 20, 2023 to
shareholders of record as of January 9, 2023.
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 $2.71 billion in assets. The
Bank provides a complete array of commercial and retail banking
services through eighteen 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.
The First Bancorp
Consolidated Balance Sheets
(Unaudited)
In thousands of dollars, except per share
data
December 31, 2022
December 31, 2021
Assets
Cash and due from banks
$
22,728
$
20,634
Interest-bearing deposits in other
banks
3,693
66,678
Securities available for sale
284,509
320,566
Securities to be held to maturity
393,896
370,040
Restricted equity securities, at cost
3,883
5,365
Loans held for sale
275
835
Loans
1,914,674
1,647,649
Less allowance for loan losses
16,723
15,521
Net loans
1,897,951
1,632,128
Accrued interest receivable
9,829
7,544
Premises and equipment
28,277
28,949
Goodwill
30,646
30,646
Other assets
63,491
43,714
Total assets
$
2,739,178
$
2,527,099
Liabilities
Demand deposits
$
318,626
$
334,945
NOW deposits
630,416
655,061
Money market deposits
192,632
206,901
Savings deposits
369,532
360,185
Certificates of deposit
489,793
252,568
Certificates $100,000 to $250,000
259,614
258,211
Certificates $250,000 and over
118,264
55,426
Total deposits
2,378,877
2,123,297
Borrowed funds
103,483
136,342
Other liabilities
27,895
21,803
Total Liabilities
2,510,255
2,281,442
Shareholders' equity
Common stock
110
110
Additional paid-in capital
68,435
66,830
Retained earnings
204,343
180,417
Net unrealized loss on securities
available for sale
(44,718
)
(1,718
)
Net unrealized loss on securities
transferred from available for sale to held to maturity
(64
)
(87
)
Net unrealized gain on cash flow hedging
derivative instruments
544
—
Net unrealized gain on postretirement
costs
273
105
Total shareholders' equity
228,923
245,657
Total liabilities & shareholders'
equity
$
2,739,178
$
2,527,099
Common Stock
Number of shares authorized
18,000,000
18,000,000
Number of shares issued and
outstanding
11,045,186
10,998,765
Book value per common share
$
20.73
$
22.33
Tangible book value per common share
$
17.93
$
19.52
The First Bancorp
Consolidated Statements of
Income (Unaudited)
For the year ended December
31,
For the quarter ended December
31,
In thousands of dollars, except per share
data
2022
2021
2022
2021
Interest income
Interest and fees on loans
$
75,805
$
62,195
$
22,342
$
16,331
Interest on deposits with other banks
315
72
152
27
Interest and dividends on investments
16,915
14,814
4,586
3,641
Total interest income
93,035
77,081
27,080
19,999
Interest expense
Interest on deposits
15,359
7,314
7,169
1,518
Interest on borrowed funds
1,510
3,464
427
785
Total interest expense
16,869
10,778
7,596
2,303
Net interest income
76,166
66,303
19,484
17,696
Provision (credit) for loan losses
1,750
(375
)
450
(1,950
)
Net interest income after provision
(credit) for loan losses
74,416
66,678
19,034
19,646
Non-interest income
Investment management and fiduciary
income
4,600
4,529
1,087
1,177
Service charges on deposit accounts
1,825
1,568
467
436
Net securities gains
7
23
—
1
Mortgage origination and servicing
income
1,424
5,236
190
885
Debit card income
6,348
5,208
1,464
1,333
Other operating income
2,670
2,819
639
967
Total non-interest income
16,874
19,383
3,847
4,799
Non-interest expense
Salaries and employee benefits
23,316
21,152
6,224
5,552
Occupancy expense
3,052
2,841
754
693
Furniture and equipment expense
5,058
4,788
1,318
1,253
FDIC insurance premiums
1,068
824
330
224
Amortization of identified intangibles
69
69
17
17
Other operating expense
11,341
12,474
3,068
5,107
Total non-interest expense
43,904
42,148
11,711
12,846
Income before income taxes
47,386
43,913
11,170
11,599
Applicable income taxes
8,396
7,644
1,973
2,053
Net Income
$
38,990
$
36,269
$
9,197
$
9,546
Basic earnings per share
$
3.56
$
3.33
$
0.84
$
0.87
Diluted earnings per share
$
3.53
$
3.30
$
0.83
$
0.87
The First Bancorp
Selected Financial Data
(Unaudited)
For the year ended December
31,
For the quarter ended December
31,
Dollars in thousands, except for per share
amounts
2022
2021
2022
2021
Summary of Operations
Interest Income
$
93,035
$
77,081
$
27,080
$
19,999
Interest Expense
16,869
10,778
7,596
2,303
Net Interest Income
76,166
66,303
19,484
17,696
Provision (credit) for Loan Losses
1,750
(375
)
450
(1,950
)
Non-Interest Income
16,874
19,383
3,847
4,799
Non-Interest Expense
43,904
42,148
11,711
12,846
Net Income
38,990
36,269
9,197
9,546
Per Common Share Data
Basic Earnings per Share
$
3.56
$
3.33
$
0.84
$
0.87
Diluted Earnings per Share
3.53
3.30
0.83
0.87
Cash Dividends Declared
1.34
1.27
0.34
0.32
Book Value per Common Share
20.73
22.33
20.73
22.33
Tangible Book Value per Common Share
17.93
19.52
17.93
19.52
Market Value
29.94
31.40
29.94
31.40
Financial Ratios
Return on Average Equity (a)
16.63
%
15.33
%
16.15
%
15.47
%
Return on Average Tangible Common Equity
(a)
19.15
%
17.64
%
18.71
%
17.71
%
Return on Average Assets (a)
1.49
%
1.48
%
1.34
%
1.49
%
Average Equity to Average Assets
8.94
%
9.67
%
8.32
%
9.65
%
Average Tangible Equity to Average
Assets
7.76
%
8.41
%
7.18
%
8.43
%
Net Interest Margin Tax-Equivalent (a)
3.15
%
2.95
%
3.09
%
3.00
%
Dividend Payout Ratio
37.64
%
38.14
%
40.48
%
36.78
%
Allowance for Loan Losses/Total Loans
0.87
%
0.94
%
0.87
%
0.94
%
Non-Performing Loans to Total Loans
0.09
%
0.35
%
0.09
%
0.35
%
Non-Performing Assets to Total Assets
0.06
%
0.23
%
0.06
%
0.23
%
Efficiency Ratio
45.96
%
47.81
%
48.83
%
55.61
%
At Period End
Total Assets
$
2,739,178
$
2,527,099
$
2,739,178
$
2,527,099
Total Loans
1,914,674
1,647,649
1,914,674
1,647,649
Total Investment Securities
682,288
695,971
682,288
695,971
Total Deposits
2,378,877
2,123,297
2,378,877
2,123,297
Total Shareholders' Equity
228,923
245,657
228,923
245,657
(a) Annualized using a 365-day basis for
2022 and 2021
Use of Non-GAAP Financial Measures
Certain information in this release contains financial
information determined by methods other than in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). Management uses these “non-GAAP” measures in its
analysis of the Company's performance (including for purposes of
determining the compensation of certain executive officers and
other Company employees) and believes that these non-GAAP financial
measures provide a greater understanding of ongoing operations and
enhance comparability of results with prior periods and with other
financial institutions, as well as demonstrating the effects of
significant gains and charges in the current period, in light of
the disclosure practices employed by many other publicly-traded
financial institutions. The Company believes that a meaningful
analysis of its financial performance requires an understanding of
the factors underlying that performance. Management believes that
investors may use these non-GAAP financial measures to analyze
financial performance without the impact of unusual items that may
obscure trends in the Company's underlying performance. These
disclosures should not be viewed as a substitute for operating
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies.
In several places net interest income is calculated on a fully
tax-equivalent basis. Specifically included in interest income was
tax-exempt interest income from certain investment securities and
loans. An amount equal to the tax benefit derived from this
tax-exempt income has been added back to the interest income total
which, as adjusted, increased net interest income accordingly.
Management believes the disclosure of tax-equivalent net interest
income information improves the clarity of financial analysis, and
is particularly useful to investors in understanding and evaluating
the changes and trends in the Company's results of operations.
Other financial institutions commonly present net interest income
on a tax-equivalent basis. This adjustment is considered helpful in
the comparison of one financial institution's net interest income
to that of another institution, as each will have a different
proportion of tax-exempt interest from its earning assets.
Moreover, net interest income is a component of a second financial
measure commonly used by financial institutions, net interest
margin, which is the ratio of net interest income to average
earning assets. For purposes of this measure as well, other
financial institutions generally use tax-equivalent net interest
income to provide a better basis of comparison from institution to
institution. The Company follows these practices.
The following table provides a reconciliation of tax-equivalent
financial information to the Company's consolidated financial
statements, which have been prepared in accordance with GAAP. A
21.0% tax rate was used in both 2022 and 2021.
For the years ended
For the quarters ended
In thousands of dollars
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net interest income as presented
$
76,166
$
66,303
$
19,484
$
17,696
Effect of tax-exempt income
2,326
2,325
607
563
Net interest income, tax equivalent
$
78,492
$
68,628
$
20,091
$
18,259
The Company presents its efficiency ratio using non-GAAP
information which is most commonly used by financial institutions.
The GAAP-based efficiency ratio is non-interest expenses divided by
net interest income plus non-interest income from the Consolidated
Statements of Income. The non-GAAP efficiency ratio excludes
securities losses and other-than-temporary impairment charges from
non-interest expenses, excludes securities gains from non-interest
income, and adds the tax-equivalent adjustment to net interest
income. The following table provides a reconciliation between the
GAAP and non-GAAP efficiency ratio:
For the years ended
For the quarters ended
In thousands of dollars
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Non-interest expense, as presented
$
43,904
$
42,148
$
11,711
$
12,846
Net interest income, as presented
76,166
66,303
19,484
17,696
Effect of tax-exempt interest income
2,326
2,325
607
563
Non-interest income, as presented
16,874
19,383
3,847
4,799
Effect of non-interest tax-exempt
income
170
168
43
44
Net securities gain
(7
)
(23
)
—
(1
)
Adjusted net interest income plus
non-interest income
$
95,529
$
88,156
$
23,981
$
23,101
Non-GAAP efficiency ratio
45.96
%
47.81
%
48.83
%
55.61
%
GAAP efficiency ratio
47.19
%
49.19
%
50.20
%
57.11
%
The Company presents certain information based upon average
tangible common equity instead of total average shareholders'
equity. The difference between these two measures is the Company's
intangible assets, specifically goodwill from prior acquisitions.
Management, banking regulators and many stock analysts use the
tangible common equity ratio and the tangible book value per common
share in conjunction with more traditional bank capital ratios to
compare the capital adequacy of banking organizations with
significant amounts of goodwill or other intangible assets,
typically stemming from the use of the purchase accounting method
in accounting for mergers and acquisitions. The following table
provides a reconciliation of average tangible common equity to the
Company's consolidated financial statements, which have been
prepared in accordance with U.S. generally accepted accounting
principles:
For the years ended
For the quarters ended
In thousands of dollars
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Average shareholders' equity as
presented
$
234,521
$
236,564
$
225,940
$
244,874
Less intangible assets
(30,892
)
(30,962
)
(30,884
)
(30,994
)
Tangible average shareholders' equity
$
203,629
$
205,602
$
195,056
$
213,880
To provide period-to-period comparison of operating results
prior to consideration of credit loss provision and income taxes,
the non-GAAP measure of Pre-Tax, Pre-Provision Net Income is
presented. The following table provides a reconciliation to Net
Income:
For the years ended
For the quarters ended
In thousands of dollars
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net Income, as presented
$
38,990
$
36,269
$
9,197
$
9,546
Add: provision (credit) for loan
losses
1,750
(375
)
450
(1,950
)
Add: income taxes
8,396
7,644
1,973
2,053
Pre-Tax, pre-provision net income
$
49,136
$
43,538
$
11,620
$
9,649
The following table provides a reconciliation of period ending
tangible common equity to the Company's consolidated financial
statements, adjusted to remove unrealized losses:
Period Ending
In thousands of dollars except per share
data
December 31, 2022
December 31, 2021
Shareholders' Equity
$
228,923
$
245,657
Intangible Assets
(30,856
)
(30,925
)
Tangible Common Equity
198,067
214,732
Unrealized Losses on Available for Sale
Securities, net of tax
44,718
1,718
Adjusted Tangible Common Equity
$
242,785
$
216,450
Adjusted Tangible Book Value Per Share
$
21.98
$
19.68
The following table provides a reconciliation of net income
(GAAP) to net income excluding interest income attributable to
Payroll Protection Program (PPP) fee recognition:
For the years ended
For the quarters ended
In thousands of dollars
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net Income (GAAP)
$
38,990
$
36,269
$
9,197
$
9,546
Interest Income Attributable to PPP Fee
Recognition
(1,252
)
(3,950
)
—
(1,142
)
Change in Income Taxes Attributable to PPP
Fee Recognition
271
854
—
247
Net Income without PPP (non-GAAP)
$
38,009
$
33,173
$
9,197
$
8,651
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.
Category: Earnings
Source: The First Bancorp
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230118005528/en/
The First Bancorp Richard M. Elder, EVP, Chief Financial Officer
207-563-3195 rick.elder@thefirst.com
First Bancorp (NASDAQ:FNLC)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
First Bancorp (NASDAQ:FNLC)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
