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Tony McKim
April 19, 2024
First National Bank parent posts 25% drop in Q1 net income
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Based on assets as of June 30, 2023, First National Bank ranked No. 5 among the largest Maine-based banks in the 2024 Mainebiz Book of Lists.
Citing higher funding costs and lower margins, Damariscotta-based First Bancorp (Nasdaq: FNLC) reported first-quarter net income of $6 million, representing a 25% decrease from the same period a year earlier.
Diluted earnings per share were 54 cents, down from 72 cents a year ago.
First Bancorp is the parent company of First National Bank, with roots going back to 1864. The bank has 18 branches in Maine from Wiscasset to Calais and inland to Bangor.
"The first quarter of 2024 was in many ways a continuation of the primary themes and challenges we saw throughout 2023," Tony C. McKim, the company's president and CEO, said in Wednesday’s results announcement.
"We responsibly grew our balance sheet, and enjoyed strong asset quality, capital and liquidity positions, while higher funding costs negatively impacted our bottom line,” he added.
First National Bank originated $127 million in new loans during the first quarter, resulting in net growth for the period of $44.3 million. Loan balances grew at an 8.4% annualized rate to $2.17 billion.
Activity was spread throughout the portfolio, led by commercial real estate, commercial and industrial and multifamily lending.
Loan growth in the first quarter was led by commercial credit, the bank said.
“Loan pipelines remain steady and we continue to see qualified, relationship-oriented opportunities within our footprint,” McKim said.
"Our lending process is disciplined, focused upon making loans to quality borrowers at interest rates and terms that reflect the current market."
Total assets for First National on March 31 were $2.98 billion, up $31.5 million over the previous quarter and $166.4 million higher than a year ago.
Total deposits as of March 31 were $2.55 billion, down $50.7 million from the previous quarter and $82.3 million higher than a year ago. Low-cost deposit categories led the quarterly change, the bank said.
The company reported a net interest margin of 2.22%, down from 2.34% the previous quarter.
Based on assets as of June 30, 2023, First National Bank ranked No. 5 among the largest Maine-based banks in the 2024 Mainebiz Book of Lists.
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