First Bancorp, Inc /ME/

CEO COMMENTS

“The First Bancorp concluded 2024 with annual earnings of$27.0 million," commented Tony C. McKim, the Company’s President and Chief Executive Officer. "While down from the prior yearwe are encouraged by the improvements in net interest income posted in the second half of the year, driven by a steadily increasing net interest margin. Pre-Tax, Pre-Provision (PTPP) (non-GAAP) Return on Average Assets for 2024 was 1.09% and PTPP Return on Average Tangible Common Equity was 15.12%. We experienced strong earning asset growth during the year with total loans increasing $211.5 million, or 9.9%, while maintaining favorable asset quality."

Mr. McKim continued, "Results for the fourth quarter of 2024 continued the performance improvement noted in our third quarter report. PTPP net income in the fourth quarter was $9.8 million, up $1.3 million or 15.5% from the linked quarter, with nearly all of the increase coming in net interest income, which increased $1.2 million, or 7.0%, in the fourth quarter to $17.6 million, as compared to $16.4 million earned in the third quarter. Non-interest income increased $314,000 period-to-period primarily attributable to debit card revenue. Operating expenses for the fourth quarter increased modestly from the third quarter, up $145,000 or 1.2%.

"We began the past year with a continuance of the margin contraction from 2023, and reached a low-point in the second quarter of 2024, with resulting impact on our bottom line. Through the combined effects of new asset pricing, legacy asset re-pricing, and funding cost stabilization, our net interest margin has increased in each of the past two quarters, and has led to improved net income performance. We expect this positive trend to continue with further gradual margin improvement in coming quarters. The Bank's over 280 employees continue to provide best in class service to their customers and communities. In 2024 we extended over $600 million in new loans, opened in excess of 8,200 new deposit accounts, expanded the volume and reach of our digital banking services, and saw 10% growth in assets under management at First National Wealth Management. I continue to be impressed each and every day by the commitment of our team."