First National Bank parent posts 8.8% jump in Q1 earnings

File photo First Bancorp, parent company of First National Bank, posted a first-quarter earnings increase of 8.8%. Shown here is the Waldoboro branch.

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By Renee Cordes

The First Bancorp (Nasdaq: FNLC), the Damariscotta-based parent company of First National Bank, posted an 8.8% increase in first-quarter earnings and higher interest income.

Unaudited net income was $9.7 million, up $783,000, or 8.8%, over a year earlier, and represents a new quarterly earnings high mark, the company reported Wednesday.

Diluted earnings per share were up 7 cents to 88 cents a share, representing an 8.6% increase over last year. Net interest income was up 17.3% over a year ago and 5.2% higher than the fourth quarter of 2021.

"The First Bancorp enjoyed a strong start to 2022, posting a record earnings quarter," said Tony McKim, the company's president and CEO. "Earning asset growth, in particular high-quality loan growth, continues to be a key performance driver as we transition to a post-Paycheck Protection and post-mortgage refinance environment."

Loan growth was mainly in the commercial real estate and construction segments, as the bank wound down two pandemic-related loan programs.

As of March 31, PPP loan balances were down to $2.6 million, and McKim said the bank expects most of the remaining balances to be forgiven by the end of the second quarter.

He also noted that COVID-19-related loan modifications have nearly all been resolved, with $1.1 million in residential mortgage and consumer loan balances remaining in modification status at the end of the first quarter, representing just 0.07% of the loan portfolio.

McKim said that the pipeline of new loans in process "remains robust" after low-cost deposit balances held steady in the first quarter, in a return to normal, pre-pandemic, seasonal patterns.

First Bancorp, founded in 1864, is a full-service community bank with $2.52 billion in assets. It has 18 branches in Maine, including one in Brewer opened earlier this year. First National Bank was ranked No. 4 in a Mainebiz list of the largest Maine-based banks published in April.

New People's United owner also posts results

Separately on Wednesday, Buffalo, N.Y.-based M&T Bank Corp. (NYSE: MTB) posted first-quarter results less than a month after completing the acquisition of People's United Financial Inc., a Bridgeport, Conn.-based firm with 17 bank branches in Maine.

M&T reported diluted earnings per share of $2.62, down from $3.33 a year earlier. First-quarter net income was $362 million, down from $447 million during the same period last year.

Darren J. King, M&T's chief financial officer, said the company was excited to close the People's United merger and looks forward to working together "to expand our premier banking franchise."