First National Bank parent earnings up 34% for Q2

Courtesy / First Bancorp Net income was up for the quarter and the first half of the year at First Bancorp, parent company of First National Bank. Seen here is the Waldoboro branch, which celebrated 45 years of service in 2020.

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By Staff

Damariscotta-based First Bancorp (Nasdaq: FNLC), parent company of First National Bank, on Wednesday reported a 33.8% increase in earnings during the second quarter of 2021, compared to the same period last year.

Net income was $8.8 million, up $2.2 million or 33.8% from the $6.6 million reported for the three months ended June 30, 2020. However, the Q2 2021 earnings were down slightly from the record total the company reported in the first quarter this year.

Earnings per common share for the second quarter on a fully diluted basis were up 20 cents to 80 cents per share, an increase of 33.3% from the same quarter in 2020.

Half-year results

For the six months ended June 30, net income was $17.7 million, up $4.6 million or 35.6% from the first six months of 2020.

Earnings per share on a fully diluted basis of $1.61, up 41 cents or 34.2% from the same period in 2020.

Sustained improvement

Loan growth at First Bancorp produced an increase in net interest income, while non-interest income saw increases of greater than 20% in wealth management, debit card and service charge revenues.

The bank was also able to reduce its provision for loan loss expense by $1.8 million compared to the second quarter of 2020.

Tony McKim, the company’s president and CEO, noted that the bank’s efforts to support customers and communities through the pandemic are ongoing.

Of the over 1,700 Paycheck Protection Program loans granted in 2020, approximately 95% of the original balances have been forgiven as of June 30. Through this year’s program, the bank disbursed over $52 million in PPP loans to more than 1,200 eligible borrowers.

“In addition, we've actively assisted customers applying for aid under other relief programs such as the Restaurant Revitalization Fund and Shuttered Venue Operator Grants,” he said. “Helping customers navigate through the pandemic has been amongst the most challenging but also most rewarding work our team of professionals has faced in their collective careers.”