First Bancorp Inc ME
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 8, 2024
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Net Interest Income
Total interest income of $109.8 million for the nine months ended September 30, 2024 was an increase of $16.5 million or 17.7% compared to total interest income of $93.4 million for the same period of 2023. Growth in earning assets coupled with higher interest rates resulted in the period-to-period increase. Higher market interest rates resulting from FOMC actions coupled with changing customer product preferences to higher cost money market and CD products led to total interest expense of $63.5 million for the nine months ended September 30, 2024, an increase of $19.5 million or 44.3% compared to total interest expense for the nine months ended September 30, 2023. As a result, net interest income of $46.4 million for the nine months ended September 30, 2024 was a decrease of $3.0 million or 6.1% compared to net interest income of $49.4 million for the same period ended September 30, 2023. The Company's net interest margin on a tax-equivalent basis for the nine months ended September 30, 2024 was 2.25%, down from 2.54% for the first nine months of 2023. Tax-exempt interest income amounted to $7.8 million for the nine months ended September 30, 2024 compared to $7.4 million for the nine months ended September 30, 2023.
The following tables present the amount of interest earned or paid, as well as the average yield or rate on an annualized basis, for each major category of assets or liabilities for the nine months and quarters ended September 30, 2024 and 2023. Tax-exempt income is calculated on a tax-equivalent basis, using a 21.0% Federal Income Tax rate.
| For the nine months ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, 2024 · September 30, 2023 | |||||||||
| Dollars in thousands · Amount of interest · Average Yield/Rate · Amount of interest · Average Yield/Rate | |||||||||
| Interest on earning assets | |||||||||
| Interest-bearing deposits | $190 | 4.97 | % | $300 | 5.30 | % | |||
| Investments | 15,689 | 3.17 | % | 15,795 | 3.12 | % | |||
| Loans | 96,027 | 5.80 | % | 79,222 | 5.26 | % | |||
| Total interest income | 111,906 | 5.19 | % | 95,317 | 4.72 | % | |||
| Interest expense | |||||||||
| Deposits1 | 59,112 | 3.43 | % | 42,384 | 2.62 | % | |||
| Other borrowings | 4,365 | 3.48 | % | 1,614 | 1.93 | % | |||
| Total interest expense | 63,477 | 3.44 | % | 43,998 | 2.58 | % | |||
| Net interest income | $48,429 | $51,319 | |||||||
| Interest rate spread | 1.75 | % | 2.14 | % | |||||
| Net interest margin | 2.25 | % | 2.54 | % | |||||
1 Amount of interest of 59,112 will not tie to Interest on deposits in the Consolidated Statements of Income and Comprehensive Income due to rounding.
| For the quarters ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, 2024 · September 30, 2023 | |||||||||
| Dollars in thousands · Amount of interest · Average Yield/Rate · Amount of interest · Average Yield/Rate | |||||||||
| Interest on earning assets | |||||||||
| Interest-bearing deposits | $56 | 4.00 | % | $211 | 5.49 | % | |||
| Investments | 5,261 | 3.16 | % | 5,249 | 3.12 | % | |||
| Loans held for sale | — | 0.00 | % | — | 0.00 | % | |||
| Loans | 33,687 | 5.90 | % | 28,479 | 5.45 | % | |||
| Total interest-earning assets | 39,004 | 5.28 | % | 33,939 | 4.89 | % | |||
| Interest expense | |||||||||
| Deposits | 20,118 | 3.46 | % | 16,992 | 3.02 | % | |||
| Other borrowings | 1,767 | 3.71 | % | 308 | 1.32 | % | |||
| Total interest expense | 21,885 | 3.48 | % | 17,300 | 2.96 | % | |||
| Net interest income | $17,119 | $16,639 | |||||||
| Interest rate spread | 1.80 | % | 1.93 | % | |||||
| Net interest margin | 2.32 | % | 2.40 | % | |||||
The following tables present changes in interest income and expense attributable to changes in interest rates and volume for interest-earning assets and liabilities for the nine months and quarters ended September 30, 2024 compared to 2023. Tax-exempt income is calculated on a tax-equivalent basis, using a 21% Federal Income Tax rate.
| Dollars in thousands | Volume | Rate | Rate/Volume1 | Total |
|---|---|---|---|---|
| Interest on earning assets | ||||
| Interest-bearing deposits | $(98) | $(18) | $6 | $(110) |
| Investment securities | (399) | 301 | (8) | (106) |
| Loans held for sale | — | — | — | — |
| Loans | 7,742 | 8,256 | 807 | 16,805 |
| Change in interest income | 7,245 | 8,539 | 805 | 16,589 |
| Interest expense | ||||
| Deposits | 2,606 | 13,304 | 818 | 16,728 |
| Other borrowings | 800 | 1,304 | 647 | 2,751 |
| Change in interest expense | 3,406 | 14,608 | 1,465 | 19,479 |
| Change in net interest income | $3,839 | $(6,069) | $(660) | $(2,890) |
1 Represents the change attributable to a combination of change in rate and change in volume.
| Dollars in thousands | Volume | Rate | Rate/Volume1 | Total |
|---|---|---|---|---|
| Interest on earning assets | ||||
| Interest-bearing deposits | $(134) | $(58) | $37 | $(155) |
| Investment securities | (32) | 44 | — | 12 |
| Loans held for sale | — | — | — | — |
| Loans | 2,725 | 2,266 | 217 | 5,208 |
| Change in interest income | 2,559 | 2,252 | 254 | 5,065 |
| Interest expense | ||||
| Deposits | 645 | 2,390 | 91 | 3,126 |
| Other borrowings | 323 | 555 | 581 | 1,459 |
| Change in interest expense | 968 | 2,945 | 672 | 4,585 |
| Change in net interest income | $1,591 | $(693) | $(418) | $480 |
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