Photo / Courtesy First National Bank
Tony C. McKim, First Bancorp president and CEO
Updated: October 20, 2023
Retail loan growth boosts Q3 results at First National Bank parent company
Courtesy / First Bancorp
First National Bank has 18 branches in Maine, including this one in Damariscotta.
Damariscotta-based First Bancorp (Nasdaq: FNLC) reported third-quarter net income of $7.5 million, representing a 1.1% increase over a year earlier. Loan balances went up by $18.9 million to $2.08 billion during the last quarter.
Diluted earnings per share were 67 cents, unchanged from this year's second quarter.
First Bancorp is the parent company of First National Bank, which has 18 branches in Maine from Wiscasset to Calais and inland to Bangor.
“The third quarter was one of relative stability on our balance sheet and in our earnings, featuring strong deposit growth and a slowing of the margin compression experienced year-to-date," said Tony C. McKim, the company’s president and CEO, in Wednesday's results announcement.
He said that most of the loan growth increase was within the bank’s retail loan portfolios, specifically residential mortgages and home equity loans.
“Commercial lending saw growth in construction loan balances, partially offset by small declines in the commercial real estate, commercial and industrial, and multifamily segments,” McKim said. “We continue to be disciplined in our lending process, making loans to quality borrowers at interest rates on new production that reflect the realities of the current market."
The company also reported a net interest margin of 2.4%, down nominally from the previous quarter. It also said that asset quality remains "very strong," as reflected in a 0.09% ratio of nonperforming assets to total assets at the end of Q3.
A quarterly shareholder dividend of 35 cents a share was declared.
Total assets have increased by $205 million so far this year to reach $2.94 billion at the end of the third quarter. Total deposits were $2.6 billion, borrowings were $83 million and common equity was $226.7 million.
Based on assets as of June 30, 2022, the company is ranked No. 4 among the largest Maine-based banks in the 2023 Mainebiz Book of Lists.
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