The First Bancorp, Inc. (Maine) :FNLC-US: Earnings Analysis: Q3, 2016 By the Numbers : October 25, 2016

The First Bancorp, Inc. (Maine) reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of The First Bancorp, Inc. (Maine) – Webster Financial Corporation, Enterprise Bancorp, Inc., Century Bancorp, Inc. Class A and Independent Bank Corp. (WBS-US, EBTC-US, CNBKA-US and INDB-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 14.00 million, Net Earnings of USD 4.56 million.
  • Net interest income margins narrowed from 77.19% to 75.22% compared to the same period last year.
  • Net loan assets changed 6.84% compared to same period last year and -0.91% from previous period, total deposits changed 10.90% compared to same period last year and 2.45% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2015-09-30 2015-12-31 2016-03-31 2016-06-30 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 13.62 11.81 13.69 13.96 14
Revenue Growth (%YOY) -0.31 -6.65 2.49 7.12 2.8
Earnings (mil) 4.19 3.77 4.5 4.62 4.56
Earnings Growth (%YOY) 1.95 10.01 7.86 13.5 8.93
Net Margin (%) 30.76 31.92 32.89 33.13 32.59
EPS 0.39 0.35 0.42 0.43 0.42
Return on Equity (%) 10.12 9.01 10.63 10.68 10.4
Return on Assets (%) 1.08 0.97 1.15 1.16 1.12

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Market Share Versus Profits

Revenues History
Earnings History

FNLC-US‘s change in revenue this period compared to the same period last year of 2.80% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that FNLC-US is holding onto its market share. Also, for comparison purposes, revenues changed by 0.29% and earnings by -1.34% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

FNLC-US‘s earnings rose year-on-year. But this growth has not come as a result of improvement in net interest income margins or any loan loss improvement activities in its operations. Net interest income margins were 75.22% compared to 78.46% in the immediate last period. Net interest income after provisions margins were 72.54% this period compared to 75.78% in the previous period. In addition, loan loss provisions as a percentage of net interest income were 3.56% this period and 1.90% a year ago.

Net Interest Income Margin Versus Loan Loss Provisions Margin

Quadrant label definitions. Hover to know more

High Risk; High Reward Loans, Risky Loan Portfolio, Conservative Loan Portfolio, Safer Loan Portfolio
Net Interest Income Margin History
Loan Loss Provisions Margin History

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (Qtr YOY)
Total Deposits Growth Rate History (Qtr YOY)

The firm’s decline in net interest income margins came despite the relative increase in the levels of net loan assets. In addition, total deposits as a percentage of equity went from 6.33% to 6.67%. On an absolute basis, net loan assets changed 6.84% compared to the same period last year and -0.91% from the previous period. Total deposits changed 10.90% compared to the same period last year and 2.45% from the previous period.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 40.97% to 44.42% and (2) one-time items. The company’s pretax margins are now 44.42%, compared to 40.97% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for The First Bancorp, Inc. (Maine)

Company Profile

First Bancorp, Inc. operates as a bank holding company for The First, N.A. It provides a broad range of financial services to individuals and companies in coastal Maine. These services include demand, time, and savings deposits; lending; ATM processing; and investment management and trust services. The company was founded on January 15, 1985 and is headquartered in Damariscotta, ME.

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