0-26589 | 01-0404322 |
(Commission file number) | (IRS employer identification no.) |
Main Street, Damariscotta, Maine | 04543 |
(Address of principal executive offices) | (Zip Code) |
Item 2.02 Results of Operations and Financial Condition | Page 1 |
Item 9.01 Financial Statements and Exhibits | Page 1 |
Signatures | Page 2 |
Exhibit Index | Page 3 |
• | Net Income for the second quarter of 2018 increased 17.4% over the second quarter of 2017 to $5.7 million. |
• | Total loans outstanding at June 30, 2018 were $1.2 billion, up $36.4 million in the second quarter and $103.8 million year-over-year. |
• | Efficiency Ratio (non-GAAP) improved to 51.02% in the second quarter, down from 53.75% in the first quarter of 2018 (the GAAP Efficiency Ratio was 52.92% in the second quarter of 2018, down from 55.20% in the first quarter of 2018). |
• | The non-performing assets to total assets ratio at June 30, 2018 was 0.78%, down from 0.83% at March 31, 2018. |
• | Return on Average Assets of 1.22% and Return on Average Tangible Common Equity of 14.95% for the three months ended June 30, 2018, up from 1.10% and 13.18% respectively for the three months ended June 30, 2017. |
• | Non-interest income up $179,000 or 6.0% in the second quarter of 2018 as compared to a year ago, with revenue growth led by First Advisors and deposit-based charges. |
• | Earning asset growth of $41.2 million in the second quarter of 2018 which resulted in a $133,000 increase in tax-equivalent net interest income from the second quarter of 2017 despite a decline in the net interest margin period to period from 3.03% to 2.88% due to higher non-local funding costs and reduced benefit from tax-exempt assets. |
• | Non-interest expense for the period up $536,000 or 7.0% from the second quarter of 2017 primarily due to increased employee expense incurred to support the Company’s growth. |
• | Continued benefits from the Tax Cuts and Jobs Act of 2017 which reduced income tax expense by $1.1 million for the six months ended June 30, 2018 from the same period in 2017. |
The First Bancorp | |||||||||
Consolidated Balance Sheets (Unaudited) | |||||||||
In thousands of dollars, except per share data | June 30, 2018 | December 31, 2017 | June 30, 2017 | ||||||
Assets | |||||||||
Cash and due from banks | $ | 21,056 | $ | 19,207 | $ | 20,189 | |||
Interest-bearing deposits in other banks | 1,616 | 860 | 3,820 | ||||||
Securities available for sale | 305,048 | 300,172 | 308,146 | ||||||
Securities to be held to maturity | 260,077 | 256,567 | 244,123 | ||||||
Restricted equity securities, at cost | 12,363 | 10,358 | 12,311 | ||||||
Loans held for sale | 481 | 386 | 865 | ||||||
Loans | 1,224,440 | 1,164,139 | 1,120,665 | ||||||
Less allowance for loan losses | 11,472 | 10,729 | 10,611 | ||||||
Net loans | 1,212,968 | 1,153,410 | 1,110,054 | ||||||
Accrued interest receivable | 7,723 | 5,867 | 7,192 | ||||||
Premises and equipment | 21,682 | 22,502 | 21,367 | ||||||
Other real estate owned | 609 | 1,012 | 324 | ||||||
Goodwill | 29,805 | 29,805 | 29,805 | ||||||
Other assets | 40,533 | 42,784 | 37,455 | ||||||
Total assets | $ | 1,913,961 | $ | 1,842,930 | $ | 1,795,651 | |||
Liabilities | |||||||||
Demand deposits | $ | 146,964 | $ | 145,332 | $ | 137,061 | |||
NOW deposits | 282,449 | 318,043 | 293,553 | ||||||
Money market deposits | 100,378 | 163,898 | 134,760 | ||||||
Savings deposits | 229,464 | 232,605 | 226,391 | ||||||
Certificates of deposit | 400,680 | 284,066 | 270,875 | ||||||
Certificates $100,000 to $250,000 | 207,365 | 232,759 | 212,063 | ||||||
Certificates $250,000 and over | 49,346 | 42,176 | 44,556 | ||||||
Total deposits | 1,416,646 | 1,418,879 | 1,319,259 | ||||||
Borrowed funds | 297,455 | 228,758 | 282,277 | ||||||
Other liabilities | 16,656 | 13,972 | 16,578 | ||||||
Total Liabilities | 1,730,657 | 1,661,609 | 1,618,114 | ||||||
Shareholders' equity | |||||||||
Common stock | 109 | 108 | 108 | ||||||
Additional paid-in capital | 62,246 | 61,747 | 61,218 | ||||||
Retained earnings | 126,464 | 121,144 | 115,980 | ||||||
Net unrealized loss on securities available-for-sale | (7,245 | ) | (2,901 | ) | (585 | ) | |||
Net unrealized loss on securities transferred from available for sale to held to maturity | (189 | ) | (174 | ) | (137 | ) | |||
Net unrealized gain on cash flow hedging derivative instruments | 2,066 | 1,544 | 1,055 | ||||||
Net unrealized loss on postretirement benefit costs | (147 | ) | (147 | ) | (102 | ) | |||
Total shareholders' equity | 183,304 | 181,321 | 177,537 | ||||||
Total liabilities & shareholders' equity | $ | 1,913,961 | $ | 1,842,930 | $ | 1,795,651 | |||
Common Stock | |||||||||
Number of shares authorized | 18,000,000 | 18,000,000 | 18,000,000 | ||||||
Number of shares issued and outstanding | 10,851,917 | 10,829,918 | 10,819,443 | ||||||
Book value per common share | $ | 16.89 | $ | 16.74 | $ | 16.41 | |||
Tangible book value per common share | $ | 14.13 | $ | 13.97 | $ | 13.63 |
The First Bancorp | ||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||
For the six months ended June 30, | For the quarter ended June 30, | |||||||||||
In thousands of dollars, except per share data | 2018 | 2017 | 2018 | 2017 | ||||||||
Interest income | ||||||||||||
Interest and fees on loans | $ | 25,429 | $ | 21,767 | $ | 13,038 | $ | 11,115 | ||||
Interest on deposits with other banks | 17 | 23 | 6 | 8 | ||||||||
Interest and dividends on investments | 8,210 | 7,703 | 4,161 | 3,879 | ||||||||
Total interest income | 33,656 | 29,493 | 17,205 | 15,002 | ||||||||
Interest expense | ||||||||||||
Interest on deposits | 6,857 | 4,296 | 3,758 | 2,302 | ||||||||
Interest on borrowed funds | 2,121 | 2,056 | 1,178 | 1,035 | ||||||||
Total interest expense | 8,978 | 6,352 | 4,936 | 3,337 | ||||||||
Net interest income | 24,678 | 23,141 | 12,269 | 11,665 | ||||||||
Provision for loan losses | 1,000 | 1,000 | 500 | 500 | ||||||||
Net interest income after provision for loan losses | 23,678 | 22,141 | 11,769 | 11,165 | ||||||||
Non-interest income | ||||||||||||
Investment management and fiduciary income | 1,542 | 1,340 | 802 | 709 | ||||||||
Service charges on deposit accounts | 1,097 | 1,051 | 570 | 549 | ||||||||
Net securities gains | 136 | 3 | — | — | ||||||||
Mortgage origination and servicing income | 692 | 761 | 361 | 429 | ||||||||
Other operating income | 2,846 | 2,690 | 1,448 | 1,315 | ||||||||
Total non-interest income | 6,313 | 5,845 | 3,181 | 3,002 | ||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | 8,770 | 7,843 | 4,280 | 3,873 | ||||||||
Occupancy expense | 1,297 | 1,227 | 598 | 603 | ||||||||
Furniture and equipment expense | 1,844 | 1,760 | 915 | 890 | ||||||||
FDIC insurance premiums | 613 | 503 | 334 | 263 | ||||||||
Amortization of identified intangibles | 22 | 22 | 11 | 11 | ||||||||
Other operating expense | 4,209 | 3,983 | 2,038 | 2,000 | ||||||||
Total non-interest expense | 16,755 | 15,338 | 8,176 | 7,640 | ||||||||
Income before income taxes | 13,236 | 12,648 | 6,774 | 6,527 | ||||||||
Applicable income taxes | 1,996 | 3,128 | 1,040 | 1,644 | ||||||||
Net Income | $ | 11,240 | $ | 9,520 | $ | 5,734 | $ | 4,883 | ||||
Basic earnings per share | $ | 1.04 | $ | 0.89 | $ | 0.53 | $ | 0.45 | ||||
Diluted earnings per share | $ | 1.04 | $ | 0.88 | $ | 0.53 | $ | 0.45 |
The First Bancorp | ||||||||||||
Selected Financial Data (Unaudited) | ||||||||||||
As of and for the six months ended June 30, | As of and for the quarters ended June 30, | |||||||||||
Dollars in thousands, except for per share amounts | 2018 | 2017 | 2018 | 2017 | ||||||||
Summary of Operations | ||||||||||||
Interest Income | $ | 33,656 | $ | 29,493 | $ | 17,205 | $ | 15,002 | ||||
Interest Expense | 8,978 | 6,352 | 4,936 | 3,337 | ||||||||
Net Interest Income | 24,678 | 23,141 | 12,269 | 11,665 | ||||||||
Provision for Loan Losses | 1,000 | 1,000 | 500 | 500 | ||||||||
Non-Interest Income | 6,313 | 5,845 | 3,181 | 3,002 | ||||||||
Non-Interest Expense | 16,755 | 15,338 | 8,176 | 7,640 | ||||||||
Net Income | 11,240 | 9,520 | 5,734 | 4,883 | ||||||||
Per Common Share Data | ||||||||||||
Basic Earnings per Share | $ | 1.04 | $ | 0.89 | $ | 0.53 | $ | 0.45 | ||||
Diluted Earnings per Share | 1.04 | 0.88 | 0.53 | 0.45 | ||||||||
Cash Dividends Declared | 0.53 | 0.47 | 0.29 | 0.24 | ||||||||
Book Value per Common Share | 16.89 | 16.41 | 16.89 | 16.41 | ||||||||
Tangible Book Value per Common Share | 14.13 | 13.63 | 14.13 | 13.63 | ||||||||
Market Value | 28.22 | 27.06 | 28.22 | 27.06 | ||||||||
Financial Ratios | ||||||||||||
Return on Average Equity (a) | 12.39 | % | 10.84 | % | 12.51 | % | 10.96 | % | ||||
Return on Average Tangible Common Equity (a) | 14.82 | % | 13.05 | % | 14.95 | % | 13.18 | % | ||||
Return on Average Assets (a) | 1.21 | % | 1.09 | % | 1.22 | % | 1.10 | % | ||||
Average Equity to Average Assets | 9.79 | % | 10.04 | % | 9.75 | % | 10.05 | % | ||||
Average Tangible Equity to Average Assets | 8.18 | % | 8.34 | % | 8.16 | % | 8.36 | % | ||||
Net Interest Margin Tax-Equivalent (a) | 2.94 | % | 3.04 | % | 2.88 | % | 3.03 | % | ||||
Dividend Payout Ratio | 50.96 | % | 52.81 | % | 54.72 | % | 53.33 | % | ||||
Allowance for Loan Losses/Total Loans | 0.94 | % | 0.95 | % | 0.94 | % | 0.95 | % | ||||
Non-Performing Loans to Total Loans | 1.17 | % | 0.66 | % | 1.17 | % | 0.66 | % | ||||
Non-Performing Assets to Total Assets | 0.78 | % | 0.44 | % | 0.78 | % | 0.44 | % | ||||
Efficiency Ratio | 52.39 | % | 49.32 | % | 51.02 | % | 48.50 | % | ||||
At Period End | ||||||||||||
Total Assets | $ | 1,913,961 | $ | 1,795,651 | $ | 1,913,961 | $ | 1,795,651 | ||||
Total Loans | 1,224,440 | 1,120,665 | 1,224,440 | 1,120,665 | ||||||||
Total Investment Securities | 577,488 | 564,580 | 577,488 | 564,580 | ||||||||
Total Deposits | 1,416,646 | 1,319,259 | 1,416,646 | 1,319,259 | ||||||||
Total Shareholders' Equity | 183,304 | 177,537 | 183,304 | 177,537 | ||||||||
(a) Annualized using a 365-day basis for both 2018 and 2017 |
For the six months ended | For the quarters ended | |||||||||||
In thousands of dollars | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||
Net interest income as presented | $ | 24,678 | $ | 23,141 | $ | 12,269 | $ | 11,665 | ||||
Effect of tax-exempt income | 1,046 | 1,951 | 533 | 1,004 | ||||||||
Net interest income, tax equivalent | $ | 25,724 | $ | 25,092 | $ | 12,802 | $ | 12,669 |
For the six months ended | For the quarters ended | |||||||||||
In thousands of dollars | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||
Non-interest expense, as presented | $ | 16,755 | $ | 15,338 | $ | 8,176 | $ | 7,640 | ||||
Net interest income, as presented | 24,678 | 23,141 | 12,269 | 11,665 | ||||||||
Effect of tax-exempt interest income | 1,046 | 1,951 | 533 | 1,004 | ||||||||
Non-interest income, as presented | 6,313 | 5,845 | 3,181 | 3,002 | ||||||||
Effect of non-interest tax-exempt income | 83 | 165 | 41 | 83 | ||||||||
Net securities gains | (136 | ) | (3 | ) | — | — | ||||||
Adjusted net interest income plus non-interest income | $ | 31,984 | $ | 31,099 | $ | 16,024 | $ | 15,754 | ||||
Non-GAAP efficiency ratio | 52.39 | % | 49.32 | % | 51.02 | % | 48.50 | % | ||||
GAAP efficiency ratio | 54.06 | % | 52.92 | % | 52.92 | % | 52.09 | % |
For the six months ended | For the quarters ended | |||||||||||
In thousands of dollars | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||
Average shareholders' equity as presented | $ | 182,979 | $ | 177,122 | $ | 183,898 | $ | 178,628 | ||||
Less intangible assets | (30,011 | ) | (30,055 | ) | (30,021 | ) | (30,060 | ) | ||||
Tangible average shareholders' equity | $ | 152,968 | $ | 147,067 | $ | 153,877 | $ | 148,568 |