FNLC First Bancorp Inc

2023 Results Driven by Strong Earning Asset Growth, Strong Deposit Growth, and Excellent Credit Quality

2023 FINANCIAL HIGHLIGHTS

• Total assets increased $207.5 million, ending the year at $2.95 billion.
• Total loans grew to $2.13 billion, an increase of $214.8 million or 11.2%, year-over-year.
• Total deposits grew to $2.60 billion, an increase of $220.8 million or 9.3% year-over-year.
• Asset Quality continued to be excellent demonstrated by a Non-Performing Assets to Total Assets ratio of 0.07%.
• Strong Liquidity with day-one capacity to cover more than 150% of uninsured deposits.
• Tangible Book Value per share of $19.12 up $1.19 per share from a year ago.
• Net income decreased $9.5 million or 24.3% from 2022, attributable primarily to a $10.4 million decrease in Net Interest Income resulting from higher funding costs.
• Efficiency Ratio (non-GAAP) remained favorable to peer at 52.43% for 2023.

The First Bancorp (Nasdaq: FNLC), parent company of First National Bank, today announced operating results for the year ended December 31, 2023. Unaudited net income was $29.5 million, a decrease of 24.3% from the $39.0 million reported for the year ended December 31, 2022. Earnings per common share on a fully diluted basis were down $0.87 to $2.66 per share, a decrease of 24.6% from the prior year. The Company also announced operating results for the three months ended December 31, 2023. Unaudited net income was $6.7 million, a decrease of 27.4% from the final three months of 2022. Earnings per share on a fully diluted basis for the fourth quarter of 2023 were $0.60, down $0.23 or 27.7% from the fourth quarter of 2022.

CEO COMMENTS

“The First Bancorp ended 2023 with annual earnings of $29.5 million," commented Tony C. McKim, the Company’s President and Chief Executive Officer. "While down from a record year in 2022, we were pleased to overcome significant headwinds to earn a Pre-Tax, Pre-Provision (PTPP) (non-GAAP) Return on Average Assets of 1.29% and a PTPP Return on Average Tangible Common Equity of 18.11%. Primary drivers of our 2023 earnings performance were a 14.4% year-over-year decrease in net interest income before loan loss provision, and controlled operating expenses. The change in net interest income was the result of significantly increased funding costs, partially offset by loan growth. Our net interest margin was 2.49% for the year, compared to 3.15% in 2022. Operating costs were tightly controlled, with a small decrease in total expenses from the prior year."

Mr. McKim continued, "Results for the fourth quarter of 2023 were on trend with the year as a whole. The Company recorded net income of $6.7 million as compared to net income of $7.5 million in the third quarter of 2023. PTPP net income in the fourth quarter of 2023 was $8.8 million, level with the third quarter. Net interest income before loan loss provision in the fourth quarter of $15.9 million was in line with the $16.0 million earned in the third quarter. Non-interest income increased $260,000 period-to-period attributable to debit card revenue. Operating expenses for the fourth quarter of 2023 increased modestly from the third quarter, up $180,000 or 1.6%."

"The year just concluded presented a number of challenges for the banking industry and The First Bancorp. The cycle of interest rate increases begun by the Federal Reserve in 2022 and sustained in 2023, coupled with concerns around the failures of several large regional banks this past spring, combined to materially increase the Bank's cost of funds which directly impacted our bottom line. Despite this challenging environment, we continued to support businesses and communities across our footprint by extending over $575 million in new loans, adding to and enhancing our digital banking capabilities, and providing best in class service to our growing customer base. Our employees are engaged in their work and in supporting their communities as demonstrated by the 11,000 hours of volunteer time given by our staff in 2023. "Our Best Days Are Ahead" is a brand phrase we've lived by for a number of years, and I believe it today as much as ever."

FINANCIAL CONDITION

Total assets at December 31, 2023 were $2.95 billion, up $207.5 million from the prior year end. Earning assets increased $203.4 million year-over-year, as loan balances grew $214.8 million, and investments declined by $11.6 million. Loan portfolio growth in 2023 was led by commercial real estate and construction loans which increased $82.9 million, including $27.7 million in the fourth quarter. Residential mortgage and construction loans increased $59.9 million year-over-year, other commercial loans increased $37.4 million and home equity line of credit balances increased by $11.0 million.

Total deposits at December 31, 2023 were $2.60 billion, up $220.8 million or 9.3% from December 31, 2022, and level with balances at September 30, 2023. Core deposits increased $18.2 million centered in money market account balances. Borrowed funds decreased $33.8 million year-to-year. Uninsured deposits were an estimated 15.7% of total deposits, and 83% of uninsured deposits were fully collateralized. Available day-one liquidity was in excess of $625 million at year-end, sufficient to cover approximately 153% of estimated uninsured deposits.

The Company’s capital position remained strong as of December 31, 2023, with an estimated total risk-based capital ratio of 13.66%, and an estimated leverage capital ratio of 8.61%. These measures compare to 13.58% and 9.01% respectively as of December 31, 2022. The Company's tangible book value was $19.12 per share as of December 31, 2023, an increase from $17.93 a year earlier, and up from $17.66 as of September 30, 2023.

ASSET QUALITY & PROVISION FOR LOAN LOSSES

Asset quality continues to be strong and stable. As of December 31, 2023, the ratio of non-performing assets to total assets was 0.07%, consistent with a ratio of 0.06% at December 31, 2022 and down from 0.09% as of September 30, 2023. The ratio of non-performing loans to total loans stood at 0.10%, consistent with 0.09% a year ago and down from 0.12% last quarter. Net charge-offs continued to be very low ending 2023 at 0.01% of total loans, down from 0.03% in 2022 and 0.02% in 2021. Past due loans were 0.18% of total loans as of December 31, 2023, a modest increase from 0.08% of total loans at December 31, 2022, and from 0.10% at September 30, 2023.

The allowance for loan losses stood at 1.13% of total loans as of December 31, 2023, up from 0.87% of total loans at December 31, 2022, and 1.12% at September 30, 2023. The Company adopted ASC 326, the CECL standard, effective January 1, 2023 incurring a $6.3 million retained earnings adjustment in the first quarter. The provision for credit losses on loans was $1.3 million in 2023, including $911,000 in the fourth quarter, as compared to $1.8 million and $450,000, respectively in 2022. Management considers the allowance to be at an appropriate level given the strong asset quality metrics at year-end.

OPERATING RESULTS

Net income for the year ended December 31, 2023 was $29.5 million, down $9.5 million or 24.3% from the year ended December 31, 2022. On a fully diluted earnings per share basis, 2023 earnings were $2.66, down $0.87 or 24.6% from the prior year. The Company’s Return on Average Assets for the year ended December 31, 2023 was 1.03%, down from 1.49% for the year ended December 31, 2022. On a PTPP (non-GAAP) basis, 2023 Return on Average Assets was 1.29%, compared to 1.87% the prior year. Return on Average Tangible Common Equity was 14.50% for the year ended December 31, 2023, down from 19.15% for the year ended December 31, 2022. On a PTPP basis (non-GAAP), Return on Average Tangible Common Equity for 2023 was 18.11%, compared to 24.13% in 2022. The Company's Efficiency Ratio (non-GAAP) was 52.43% for the year ended December 31, 2023, compared to 45.96% in 2022. (GAAP Efficiency Ratio was 54.26% for the year ended December 31, 2023, compared to 47.19% in 2022.)

Contributing factors to the Company’s 2023 annual and fourth quarter results included:

• A narrowed balance sheet spread led to a $10.6 million decrease in tax-equivalent net interest income year-over-year, a decrease of 13.6%. In the fourth quarter of 2023, tax equivalent net interest income was down $3.6 million or 17.7% from the same period in 2022, and little changed from the third quarter of 2023, down $107,000 or 0.6%.
• Net interest margin was 2.34% for the quarter ended December 31, 2023 and 2.49% for the year then ended, as compared to 3.09% and 3.15% respectively for the same periods in 2022, and 2.40% in the third quarter of 2023. In 2023, the tax equivalent yield on earning assets increased 98 basis points to an average of 4.80%, while the cost of interest bearing liabilities increased 190 basis points to an average of 2.73%. In the fourth quarter of 2023, the tax equivalent yield on earning assets increased 13 basis points from the third quarter to an average of 5.02%, while the cost of interest bearing liabilities increased 21 basis points to an average of 3.17%.
• Non-interest income was $15.4 million for the year ended December 31, 2023, down $1.4 million or 8.5% from 2022. The year-to-year decrease in non-interest income is primarily attributable to mortgage banking activity and debit card revenue. Mortgage banking revenue dropped 42.9% from 2022, as higher interest rates slowed origination activity, negatively impacting both gain on sale income and mortgage servicing rights valuation. Debit card revenue decreased 15.2% year-over-year, attributable to one-time incentive payments received in 2022. Annual revenues at First National Wealth Management, the Bank’s trust and investment management division, were stable, up 1.2% from 2022. Service charge revenues and other income also had modest increases for the year.
• Non-interest expense for 2023 was $43.8 million, a decrease of $147,000 or 0.3% from 2022. Employee salary and benefit expense decreased $1.4 million or 5.9% from the prior year, due primarily to reduced incentive compensation accruals. A base rate increase imposed by the FDIC led to a $894,000 increase in deposit insurance premiums from the prior year. Occupancy expense and furniture & equipment expense each had modest dollar increases from 2022.

DIVIDEND

On December 21, 2023, the Company's Board of Directors declared a fourth quarter dividend of $0.35 per share. The fourth quarter dividend represents a payout to shareholders of 57.38% of earnings per share for the period and was paid on January 19, 2024 to shareholders of record as of January 8, 2024.

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 $2.92 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, 2023

December 31, 2022

Assets

 

 

Cash and due from banks

$

31,942

 

$

22,728

 

Interest-bearing deposits in other banks

 

3,488

 

 

3,693

 

Securities available for sale

 

282,053

 

 

284,509

 

Securities to be held to maturity1

 

385,235

 

 

393,896

 

Restricted equity securities, at cost

 

3,385

 

 

3,883

 

Loans held for sale

 

—

 

 

275

 

Loans

 

2,129,454

 

 

1,914,674

 

Less allowance for credit losses

 

24,030

 

 

16,723

 

Net loans

 

2,105,424

 

 

1,897,951

 

Accrued interest receivable

 

11,894

 

 

9,829

 

Premises and equipment

 

28,684

 

 

28,277

 

Goodwill

 

30,646

 

 

30,646

 

Other assets

 

63,947

 

 

63,491

 

Total assets

$

2,946,698

 

$

2,739,178

 

Liabilities

 

 

Demand deposits

$

289,104

 

$

318,626

 

NOW deposits

 

634,543

 

 

630,416

 

Money market deposits

 

305,931

 

 

192,632

 

Savings deposits

 

299,837

 

 

369,532

 

Certificates of deposit

 

646,818

 

 

489,793

 

Certificates $100,000 to $250,000

 

251,192

 

 

259,614

 

Certificates $250,000 and over

 

172,237

 

 

118,264

 

Total deposits

 

2,599,662

 

 

2,378,877

 

Borrowed funds

 

69,652

 

 

103,483

 

Other liabilities

 

34,305

 

 

27,895

 

Total Liabilities

 

2,703,619

 

 

2,510,255

 

Shareholders' equity

 

 

Common stock

 

111

 

 

110

 

Additional paid-in capital

 

70,071

 

 

68,435

 

Retained earnings

 

211,925

 

 

204,343

 

Net unrealized loss on securities available for sale

 

(39,575

)

 

(44,718

)

Net unrealized loss on securities transferred from available for sale to held to maturity

 

(56

)

 

(64

)

Net unrealized gain on cash flow hedging derivative instruments

 

300

 

 

544

 

Net unrealized gain on postretirement costs

 

303

 

 

273

 

Total shareholders' equity

 

243,079

 

 

228,923

 

Total liabilities & shareholders' equity

$

2,946,698

 

$

2,739,178

 

Common Stock

 

 

Number of shares authorized

 

18,000,000

 

 

18,000,000

 

Number of shares issued and outstanding

 

11,098,057

 

 

11,045,186

 

Book value per common share

$

21.90

 

$

20.73

 

Tangible book value per common share

$

19.12

 

$

17.93

 

1December 31, 2023 net of allowance for credit losses

 

The First Bancorp

Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

For the year ended

For the quarter ended

In thousands of dollars, except per share data

December 31, 2023

December 31, 2022

December 31, 2023

September 30, 2023

December 31, 2022

Interest income

 

 

 

 

 

Interest and fees on loans

$

108,274

$

75,805

$

29,414

$

28,329

 

$

22,342

Interest on deposits with other banks

 

517

 

315

 

217

 

211

 

 

152

Interest and dividends on investments

 

19,383

 

16,915

 

5,191

 

4,714

 

 

4,586

Total interest income

 

128,174

 

93,035

 

34,822

 

33,254

 

 

27,080

Interest expense

 

 

 

 

 

Interest on deposits

 

61,004

 

15,359

 

18,620

 

16,992

 

 

7,169

Interest on borrowed funds

 

1,963

 

1,510

 

349

 

308

 

 

427

Total interest expense

 

62,967

 

16,869

 

18,969

 

17,300

 

 

7,596

Net interest income

 

65,207

 

76,166

 

15,853

 

15,954

 

 

19,484

Provision (reduction) for credit losses

 

1,184

 

1,750

 

911

 

(200

)

 

450

Net interest income after provision for credit losses

 

64,023

 

74,416

 

15,170

 

16,154

 

 

19,034

Non-interest income

 

 

 

 

 

Investment management and fiduciary income

 

4,654

 

4,600

 

1,139

 

1,160

 

 

1,087

Service charges on deposit accounts

 

1,887

 

1,825

 

488

 

465

 

 

467

Net securities gains

 

—

 

7

 

—

 

—

 

 

—

Mortgage origination and servicing income

 

813

 

1,424

 

202

 

224

 

 

190

Debit card income

 

5,384

 

6,348

 

1,541

 

1,367

 

 

1,464

Other operating income

 

2,699

 

2,670

 

737

 

675

 

 

639

Total non-interest income

 

15,437

 

16,874

 

4,107

 

3,891

 

 

3,847

Non-interest expense

 

 

 

 

 

Salaries and employee benefits

 

21,942

 

23,316

 

5,522

 

5,523

 

 

6,224

Occupancy expense

 

3,319

 

3,052

 

825

 

784

 

 

754

Furniture and equipment expense

 

5,391

 

5,058

 

1,382

 

1,403

 

 

1,318

FDIC insurance premiums

 

1,962

 

1,068

 

533

 

551

 

 

330

Amortization of identified intangibles

 

26

 

69

 

6

 

7

 

 

17

Other operating expense

 

11,117

 

11,341

 

2,918

 

2,738

 

 

3,068

Total non-interest expense

 

43,757

 

43,904

 

11,186

 

11,006

 

 

11,711

Income before income taxes

 

35,703

 

47,386

 

8,091

 

9,039

 

 

11,170

Applicable income taxes

 

6,184

 

8,396

 

1,411

 

1,565

 

 

1,973

Net Income

$

29,519

$

38,990

$

6,680

$

7,474

 

$

9,197

Basic earnings per share

$

2.68

$

3.56

$

0.61

$

0.68

 

$

0.84

Diluted earnings per share

$

2.66

$

3.53

$

0.60

$

0.67

 

$

0.83

 

The First Bancorp

Selected Financial Data (Unaudited)

 

 

 

 

 

 

 

As of and for the year ended

As of and for the quarter ended

Dollars in thousands, except for per share amounts

December 31, 2023

December 31, 2022

December 31, 2023

September 30, 2023

December 31, 2022

 

 

 

 

 

 

Summary of Operations

 

 

 

 

 

Interest Income

$

128,174

 

$

93,035

 

$

34,822

 

$

33,254

 

$

27,080

 

Interest Expense

 

62,967

 

 

16,869

 

 

18,969

 

 

17,300

 

 

7,596

 

Net Interest Income

 

65,207

 

 

76,166

 

 

15,853

 

 

15,954

 

 

19,484

 

Provision (reduction) for Credit Losses

 

1,184

 

 

1,750

 

 

683

 

 

(200

)

 

450

 

Non-Interest Income

 

15,437

 

 

16,874

 

 

4,107

 

 

3,891

 

 

3,847

 

Non-Interest Expense

 

43,757

 

 

43,904

 

 

11,186

 

 

11,006

 

 

11,711

 

Net Income

 

29,519

 

 

38,990

 

 

6,680

 

 

7,474

 

 

9,197

 

Per Common Share Data

 

 

 

 

 

Basic Earnings per Share

$

2.68

 

$

3.56

 

$

0.61

 

$

0.68

 

$

0.84

 

Diluted Earnings per Share

 

2.66

 

 

3.53

 

 

0.60

 

 

0.67

 

 

0.83

 

Cash Dividends Declared

 

1.39

 

 

1.34

 

 

0.35

 

 

0.35

 

 

0.34

 

Book Value per Common Share

 

21.90

 

 

20.73

 

 

21.90

 

 

20.44

 

 

20.73

 

Tangible Book Value per Common Share

 

19.12

 

 

17.93

 

 

19.12

 

 

17.66

 

 

17.93

 

Market Value

 

28.22

 

 

29.94

 

 

28.22

 

 

23.50

 

 

29.94

 

Financial Ratios

 

 

 

 

 

Return on Average Equity1

 

12.59

%

 

16.63

%

 

11.35

%

 

12.67

%

 

16.15

%

Return on Average Tangible Common Equity1

 

14.50

%

 

19.15

%

 

13.08

%

 

14.59

%

 

18.71

%

Return on Average Assets1

 

1.03

%

 

1.49

%

 

0.90

%

 

1.02

%

 

1.34

%

Average Equity to Average Assets

 

8.18

%

 

8.94

%

 

7.92

%

 

8.07

%

 

8.32

%

Average Tangible Equity to Average Assets

 

7.10

%

 

7.76

%

 

6.87

%

 

7.01

%

 

7.18

%

Net Interest Margin Tax-Equivalent1

 

2.49

%

 

3.15

%

 

2.34

%

 

2.40

%

 

3.09

%

Dividend Payout Ratio

 

51.87

%

 

37.64

%

 

57.38

%

 

51.47

%

 

40.48

%

Allowance for Credit Losses/Total Loans

 

1.13

%

 

0.87

%

 

1.13

%

 

1.12

%

 

0.87

%

Non-Performing Loans to Total Loans

 

0.10

%

 

0.09

%

 

0.10

%

 

0.12

%

 

0.09

%

Non-Performing Assets to Total Assets

 

0.07

%

 

0.06

%

 

0.07

%

 

0.09

%

 

0.06

%

Efficiency Ratio

 

52.43

%

 

45.96

%

 

54.08

%

 

53.49

%

 

48.83

%

At Period End

 

 

 

 

 

Total Assets

$

2,946,698

 

$

2,739,178

 

$

2,946,698

 

$

2,944,139

 

$

2,739,178

 

Total Loans

 

2,129,454

 

 

1,914,674

 

 

2,129,454

 

 

2,079,860

 

 

1,914,674

 

Total Investment Securities

 

670,673

 

 

682,288

 

 

670,673

 

 

676,206

 

 

682,288

 

Total Deposits

 

2,599,662

 

 

2,378,877

 

 

2,599,662

 

 

2,599,937

 

 

2,378,877

 

Total Shareholders' Equity

 

243,079

 

 

228,923

 

 

243,079

 

 

226,665

 

 

228,923

 

1Annualized using a 365-day basis for 2023 and 2022

 

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 2023 and 2022.

 

For the years ended

For the quarters ended

In thousands of dollars

December 31, 2023

December 31, 2022

December 31, 2023

September 30, 2023

December 31, 2022

Net interest income as presented

$

65,207

$

76,166

$

15,853

$

15,954

$

19,484

Effect of tax-exempt income

 

2,644

 

2,326

 

679

 

685

 

607

Net interest income, tax equivalent

$

67,851

$

78,492

$

16,532

$

16,639

$

20,091

 

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, 2023

December 31, 2022

December 31, 2023

September 30, 2023

December 31, 2022

Non-interest expense, as presented

$

43,757

 

$

43,904

 

$

11,186

 

$

11,006

 

$

11,711

 

Net interest income, as presented

 

65,207

 

 

76,166

 

 

15,853

 

 

15,954

 

 

19,484

 

Effect of tax-exempt interest income

 

2,644

 

 

2,326

 

 

679

 

 

685

 

 

607

 

Non-interest income, as presented

 

15,437

 

 

16,874

 

 

4,107

 

 

3,891

 

 

3,847

 

Effect of non-interest tax-exempt income

 

176

 

 

170

 

 

45

 

 

44

 

 

43

 

Net securities gain

 

—

 

 

(7

)

 

—

 

 

—

 

 

—

 

Adjusted net interest income plus non-interest income

$

83,464

 

$

95,529

 

$

20,684

 

$

20,574

 

$

23,981

 

Non-GAAP efficiency ratio

 

52.43

%

 

45.96

%

 

54.08

%

 

53.49

%

 

48.83

%

GAAP efficiency ratio

 

54.26

%

 

47.19

%

 

56.04

%

 

55.46

%

 

50.20

%

 

 

 

 

 

 

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, 2023

December 31, 2022

December 31, 2023

September 30, 2023

December 31, 2022

Average shareholders' equity as presented

$

234,480

 

$

234,521

 

$

233,405

 

$

234,024

 

$

225,940

 

Less intangible assets

 

(30,843

)

 

(30,892

)

 

(30,853

)

 

(30,853

)

 

(30,884

)

Tangible average shareholders' equity

$

203,637

 

$

203,629

 

$

202,552

 

$

203,171

 

$

195,056

 

 

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, 2023

December 31, 2022

December 31, 2023

September 30, 2023

December 31, 2022

Net Income, as presented

$

29,519

$

38,990

$

6,680

$

7,474

 

$

9,197

Add: provision (reduction) for credit losses

 

1,184

 

1,750

 

683

 

(200

)

 

450

Add: income taxes

 

6,184

 

8,396

 

1,411

 

1,565

 

 

1,973

Pre-Tax, pre-provision net income

$

36,887

$

49,136

$

8,774

$

8,839

 

$

11,620

 

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124493638/en/

The First Bancorp Richard M. Elder, EVP, Chief Financial Officer 207-563-3195 rick.elder@thefirst.com