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CLOSED · 03:20 ET
Market ClerkRecap
Sat Oct 31 · markets closed3 signals on Oct 30129 insider buys this week · $10BCIRO short report next: Nov 14The week ahead

FNLC

First Bancorp, Inc /ME/
NASDAQ · FINANCIALS · NATIONAL COMMERCIAL BANKS
36.35
−0.21 −0.57%
USD · close Oct 30
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Work order
18
FLAG · shorts 18
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $410.1MP/E 10.8DIV YIELD 4.10%FCF YIELD 8.69%REV TTM —NET INCOME $37.8M +26.1%NET DEBT $21.1M52W 24.74 – 36.70SEC XBRL · TTM TO Invalid Date

How FNLC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
55%
of sentences unchanged
Added
203
new sentences
Dropped
199
sentences removed
Length
+1,019
words, now 31,751

New in FY2025

  • The cumulative one-year gap, at December 31, 2025, was (13.24)% of total assets, compared to (15.98)% of total assets at December 31, 2024.
  • The Company's summarized static gap, as of December 31, 2025, is presented in the following table: 0-90 90-365 1-5 5+ Dollars in thousands Days Days Years Years Investment securities at amortized cost (HTM) and fair value (AFS) $ 50,324 $ 52,572 $ 146,446 $ 371,066 Restricted equity securities, at cost 7,238 — — 1,037 Loans 884,511 380,255 865,900 263,443 Other interest-earning assets — — — 30,750 Non-rate-sensitive assets 13,126 — — 70,570 Total assets 955,199 432,827 1,012,346 736,866 Interest-bearing deposits 1,237,011 449,034 252,518 446,291 Borrowed funds 92,321 25,000 70,500 — Non-rate-sensitive liabilities and equity — — — 564,563 Total liabilities and equity 1,329,332 474,034 323,018 1,010,854 Period gap $ (374,133) $ (41,207) $ 689,328 $ (273,988) Percent of total assets (11.93) % (1.31) % 21.97 % (8.73) % Cumulative gap (current) $ (374,133) $ (415,340) $ 273,988 $ — Percent of total assets (11.93) % (13.24) % 8.73 % — % The earnings simulation model forecasts capture the impact of changing interest rates on one-year and two-year net interest income.
  • The Company's modeling as of December 31, 2025 projects net interest income would increase by approximately 3.4% if short-term rates affected by FOMC actions fall gradually by two percentage points over the next year, and would increase by approximately 1.8% if short term rates gradually fall by one percentage point over the next year; net interest income would decrease by approximately 4.0% if rates rise gradually by two percentage points over the next year.
  • In year two, and assuming no additional movement in rates, the model forecasts that net interest income would be higher than that earned in the first year of a stable rate environment by 15.3% in the two percentage point falling-rate scenario, and higher by 13.2% in the one percentage point falling rate scenario; net interest income would be higher than that earned in a stable rate environment by 2.6% in a two percentage point rising rate scenario, when compared to the year-one base scenario.
  • A summary of the Bank's interest rate risk simulation modeling, as of December 31, 2025 and 2024 is presented in the following table: Changes in Net Interest Income 2025 2024 Year 1 Projected changes if rates decrease by 1.0% 1.8% 1.7% Projected changes if rates decrease by 2.0% 3.4% 2.8% Projected change if rates increase by 2.0% (4.0)% (4.2)% Year 2 Projected changes if rates decrease by 1.0% 13.2% 17.8% Projected changes if rates decrease by 2.0% 15.3% 19.1% Projected change if rates increase by 2.0% 2.6% 2.6% This dynamic simulation model includes assumptions about how the balance sheet is likely to evolve through time and in different interest rate environments.
  • As of December 31, 2025, the Company was using interest rate swaps and interest rate caps for interest rate risk management.
  • As of December 31, 2025, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure.
  • Management expects interest rates will remain flat or decrease slightly in the next year, and believes that the current level of interest rate risk is acceptable.
  • Financial Statements and Supplementary Data Consolidated Balance Sheets The First Bancorp, Inc. and Subsidiary As of December 31, 2025 2024 Assets Cash and cash equivalents $ 27,779,000 $ 27,636,000 Interest-bearing deposits in other banks 4,124,000 22,100,000 Securities available for sale 264,480,000 274,680,000 Securities to be held to maturity (net of ACL), fair value of $ 315,482,000 at December 31, 2025, and $ 314,993,000 at December 31, 2024 355,928,000 369,704,000 Restricted equity securities, at cost 8,275,000 7,203,000 Loans 2,394,109,000 2,340,940,000 Less allowance for credit losses 25,365,000 24,871,000 Net loans 2,368,744,000 2,316,069,000 Accrued interest receivable 14,185,000 13,976,000 Premises and equipment, net 28,767,000 27,855,000 Other real estate owned — 173,000 Goodwill 30,646,000 30,646,000 Other assets 63,375,000 66,968,000 Total assets $ 3,166,303,000 $ 3,157,010,000 Liabilities Demand deposits $ 279,912,000 $ 292,255,000 NOW deposits 689,083,000 676,107,000 Money market deposits 469,689,000 376,627,000 Savings deposits 248,805,000 265,451,000 Certificates of deposit 977,263,000 1,114,811,000 Total deposits 2,664,752,000 2,725,251,000 Borrowed funds – short term 92,321,000 51,278,000 Borrowed funds – long term 95,500,000 95,000,000 Other liabilities 30,587,000 32,988,000 Total liabilities 2,883,160,000 2,904,517,000 Commitments and contingent liabilities Shareholders' equity Common stock, one cent par value per share 112,000 112,000 Additional paid-in capital 73,714,000 71,832,000 Retained earnings 240,456,000 222,823,000 Accumulated other comprehensive income (loss) Net unrealized loss on securities available for sale ( 31,341,000 ) ( 42,671,000 ) Net unrealized loss on securities transferred from available for sale to held to maturity ( 38,000 ) ( 47,000 ) Net unrealized gain on cash flow hedging derivative instruments — 157,000 Net unrealized gain on postretirement costs 240,000 287,000 Total shareholders' equity 283,143,000 252,493,000 Total liabilities and shareholders' equity $ 3,166,303,000 $ 3,157,010,000 Common stock Number of shares authorized 18,000,000 18,000,000 Number of shares issued and outstanding 11,222,363 11,155,528 Book value per common share $ 25.23 $ 22.63 Tangible book value per common share $ 22.49 $ 19.87 The accompanying notes are an integral part of these consolidated financial statements Consolidated Statements of Income and Comprehensive Income The First Bancorp, Inc. and Subsidiary Years ended December 31, 2025 2024 2023 Interest income Interest and fees on loans (includes tax-exempt income of $ 2,878,000 in 2025, $ 2,518,000 in 2024, and $ 1,913,000 in 2023) $ 141,160,000 $ 129,440,000 $ 108,274,000 Interest on deposits with other banks 400,000 550,000 517,000 Interest and dividends on investments (includes tax-exempt income of $ 7,793,000 in 2025, $ 7,940,000 in 2024, and $ 8,032,000 in 2023) 18,711,000 18,842,000 19,383,000 Total interest income 160,271,000 148,832,000 128,174,000 Interest expense Interest on deposits 76,697,000 79,411,000 61,004,000 Interest on borrowed funds 6,197,000 5,511,000 1,963,000 Total interest expense 82,894,000 84,922,000 62,967,000 Net interest income 77,377,000 63,910,000 65,207,000 Credit loss expense - loans 2,049,000 1,304,000 1,330,000 Credit loss reduction - debt securities HTM ( 50,000 ) ( 238,000 ) ( 4,000 ) Credit loss reduction - off-balance sheet credit exposures ( 149,000 ) ( 541,000 ) ( 142,000 ) Total credit loss expense 1,850,000 525,000 1,184,000 Net interest income after provision for credit losses 75,527,000 63,385,000 64,023,000 Non-interest income Fiduciary and investment management income 5,427,000 4,963,000 4,654,000 Service charges on deposit accounts 2,161,000 2,048,000 1,887,000 Mortgage origination and servicing income, net of amortization 846,000 794,000 813,000 Debit card income 5,455,000 5,456,000 5,384,000 Other operating income 3,451,000 3,094,000 2,699,000 Total non-interest income 17,340,000 16,355,000 15,437,000 Non-interest expense Salaries and employee benefits 26,998,000 24,230,000 21,942,000 Occupancy expense 3,394,000 3,373,000 3,319,000 Furniture and equipment expense 5,878,000 5,622,000 5,391,000 FDIC insurance premiums 2,722,000 2,391,000 1,962,000 Amortization of identified intangibles 26,000 26,000 26,000 Other operating expense 11,910,000 11,514,000 11,118,000 Total non-interest expense 50,928,000 47,156,000 43,758,000 Income before income taxes 41,939,000 32,584,000 35,702,000 Applicable tax expense 7,545,000 5,539,000 6,184,000 Net income $ 34,394,000 $ 27,045,000 $ 29,518,000 Basic earnings per common share $ 3.10 $ 2.45 $ 2.68 Diluted earnings per common share 3.07 2.43 2.66 Other comprehensive income (loss), net of tax Net unrealized gain (loss) on securities available for sale, net of taxes 11,330,000 ( 3,096,000 ) 5,143,000 Net unrealized gain on transferred securities, net of taxes 9,000 9,000 8,000 Net unrealized loss on hedging derivative instruments ( 157,000 ) ( 143,000 ) ( 244,000 ) Net unrecognized (loss) gain on postretirement benefits ( 47,000 ) ( 16,000 ) 30,000 Other comprehensive gain (loss) 11,135,000 ( 3,246,000 ) 4,937,000 Comprehensive income $ 45,529,000 $ 23,799,000 $ 34,455,000 The accompanying notes are an integral part of these consolidated financial statements Consolidated Statements of Changes in Shareholders' Equity The First Bancorp, Inc. and Subsidiary Common stock and additional paid-in capital Retained Accumulated other comprehensive Total shareholders' Shares Amount earnings income (loss) equity Balance at December 31, 2022 11,045,186 $ 68,545,000 $ 204,343,000 $ ( 43,965,000 ) $ 228,923,000 Net income — — 29,518,000 — 29,518,000 Net unrealized gain on securities available for sale, net of tax — — — 5,143,000 5,143,000 Net unrealized loss on hedging derivative instruments, net of tax — — — ( 244,000 ) ( 244,000 ) Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 8,000 8,000 Unrecognized gain for post-retirement benefits, net of tax — — — 30,000 30,000 Comprehensive income — — 29,518,000 4,937,000 34,455,000 Cash dividends declared ($ 1.39 per share) — — ( 15,409,000 ) — ( 15,409,000 ) Equity compensation expense — 820,000 — — 820,000 Payment for repurchase of common stock ( 8,645 ) — ( 250,000 ) — ( 250,000 ) Issuance of restricted stock, net of forfeitures 29,626 — — — — Proceeds from sale of common stock 31,890 817,000 — — 817,000 Adoption of ASU No. 2016-13 — — ( 6,277,000 ) — ( 6,277,000 ) Balance at December 31, 2023 11,098,057 $ 70,182,000 $ 211,925,000 $ ( 39,028,000 ) $ 243,079,000 Net income — — 27,045,000 — 27,045,000 Net unrealized loss on securities available for sale, net of tax — — — ( 3,096,000 ) ( 3,096,000 ) Net unrealized loss on cash flow hedging derivative instruments, net of tax — — — ( 143,000 ) ( 143,000 ) Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 9,000 9,000 Unrecognized loss for post-retirement benefits, net of tax — — — ( 16,000 ) ( 16,000 ) Comprehensive income (loss) — — 27,045,000 ( 3,246,000 ) 23,799,000 Cash dividends declared ($ 1.43 per share) — — ( 15,935,000 ) — ( 15,935,000 ) Equity compensation expense — 895,000 — — 895,000 Payment for repurchase of common stock ( 9,831 ) — ( 212,000 ) — ( 212,000 ) Issuance of restricted stock, net of forfeitures 32,859 — — — — Proceeds from sale of common stock 34,443 867,000 — — 867,000 Balance at December 31, 2024 11,155,528 $ 71,944,000 $ 222,823,000 $ ( 42,274,000 ) $ 252,493,000 Common stock and additional paid-in capital Retained Accumulated other comprehensive Total shareholders' Shares Amount Earnings income (loss) equity Balance at December 31, 2024 11,155,528 $ 71,944,000 $ 222,823,000 $ ( 42,274,000 ) $ 252,493,000 Net income — — 34,394,000 — 34,394,000 Net unrealized gain on securities available for sale, net of tax — — — 11,330,000 11,330,000 Net unrealized loss on cash flow hedging derivative instruments, net of tax — — — ( 157,000 ) ( 157,000 ) Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 9,000 9,000 Unrecognized loss for post-retirement benefits, net of tax — — — ( 47,000 ) ( 47,000 ) Comprehensive income — — 34,394,000 11,135,000 45,529,000 Cash dividends declared ($ 1.47 per share) — — ( 16,479,000 ) — ( 16,479,000 ) Equity compensation expense — 966,000 — — 966,000 Payment for repurchase of common stock ( 13,109 ) — ( 282,000 ) — ( 282,000 ) Issuance of restricted stock, net of forfeitures 43,297 — — — — Proceeds from sale of common stock 36,647 916,000 — — 916,000 Balance at December 31, 2025 11,222,363 $ 73,826,000 $ 240,456,000 $ ( 31,139,000 ) $ 283,143,000 The accompanying notes are an integral part of these consolidated financial statements Consolidated Statements of Cash Flows The First Bancorp, Inc. and Subsidiary For the years ended December 31, 2025 2024 2023 Cash flows from operating activities Net income $ 34,394,000 $ 27,045,000 $ 29,518,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 2,208,000 2,209,000 2,107,000 Change in deferred taxes 81,000 20,000 ( 1,360,000 ) Credit loss expense 1,850,000 525,000 1,184,000 Loans originated for resale ( 8,619,000 ) ( 5,866,000 ) ( 3,916,000 ) Proceeds from sales and transfers of loans 8,813,000 6,009,000 4,283,000 Net gain on sales of loans ( 194,000 ) ( 143,000 ) ( 92,000 ) Net amortization of investment premiums 568,000 596,000 111,000 Net gain on sale of other real estate owned ( 33,000 ) — ( 42,000 ) Provision for losses on other real estate owned — 35,000 — Equity compensation expense 966,000 895,000 820,000 Net increase in other assets and accrued interest ( 947,000 ) ( 5,414,000 ) ( 680,000 ) Net (decrease) increase in other liabilities ( 2,542,000 ) ( 923,000 ) 4,624,000 Net (loss) gain on disposal of premises and equipment ( 10,000 ) 4,000 33,000 Amortization of investments in tax credit structures 1,253,000 1,029,000 303,000 Net acquisition amortization 26,000 26,000 26,000 Net cash provided by operating activities 37,814,000 26,047,000 36,919,000 Cash flows from investing activities Decrease (increase) in interest-bearing deposits in other banks 17,976,000 ( 18,612,000 ) 205,000 Proceeds from maturities, payments, calls of securities available for sale 38,132,000 29,665,000 97,524,000 Proceeds from maturities, payments, calls and sales of securities held to maturity 15,036,000 18,441,000 8,149,000 Proceeds from sales of other real estate owned 206,000 — 106,000 Purchases of securities available for sale ( 14,108,000 ) ( 26,718,000 ) ( 88,581,000 ) Purchases of securities to be held to maturity ( 1,250,000 ) ( 2,750,000 ) — (Purchase) redemption of restricted equity securities ( 1,072,000 ) ( 3,818,000 ) 498,000 Net increase in loans ( 54,724,000 ) ( 212,157,000 ) ( 215,077,000 ) Capital expenditures ( 3,220,000 ) ( 1,475,000 ) ( 2,635,000 ) Proceeds from sale of premises and equipment 22,000 4,000 3,000 Net cash used in investing activities ( 3,002,000 ) ( 217,420,000 ) ( 199,808,000 ) Cash flows from financing activities Net increase in demand, savings, and money market accounts 77,049,000 81,025,000 18,209,000 Net (decrease) increase in certificates of deposit ( 137,548,000 ) 44,564,000 202,576,000 Advances on long-term borrowings 500,000 95,000,000 — Repayment on long-term borrowings — — ( 84,000 ) Net increase (decrease) in short-term borrowings 41,043,000 ( 18,374,000 ) ( 33,747,000 ) Payment to repurchase common stock ( 282,000 ) ( 212,000 ) ( 250,000 ) Proceeds from sale of common stock 916,000 867,000 817,000 Dividends paid ( 16,347,000 ) ( 15,803,000 ) ( 15,418,000 ) Net cash (used) provided by financing activities ( 34,669,000 ) 187,067,000 172,103,000 Net increase (decrease) in cash and cash equivalents 143,000 ( 4,306,000 ) 9,214,000 Cash and cash equivalents at beginning of year 27,636,000 31,942,000 22,728,000 Cash and cash equivalents at end of year $ 27,779,000 $ 27,636,000 $ 31,942,000 For the years ended December 31, 2025 2024 2023 Interest paid $ 82,978,000 $ 84,441,000 $ 62,228,000 Income taxes paid 5,670,000 4,527,000 5,621,000 Non-cash transactions: Net transfer from loans to other real estate owned $ — $ 208,000 $ — Change in net unrealized loss on available for sale securities, net of tax $ ( 11,330,000 ) $ ( 3,096,000 ) $ 5,143,000 The accompanying notes are an integral part of these consolidated financial statements Notes to Consolidated Financial Statements Nature of Operations The Company, through its wholly-owned subsidiary, the Bank, provides a full range of banking services to individual and corporate customers from 18 offices in coastal and eastern Maine.
  • Subsequent Events Events occurring subsequent to December 31, 2025 have been evaluated as to their potential impact on the financial statements.
  • The primary factors considered in this evaluation are (a) the length of time and extent to which the fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, (d) the volatility of the securities' market price, (e) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery, which may be at maturity, and (f) any other information and observable data considered relevant, including the expectation of receipt of all principal and interest when due.
  • At December 31, 2025, the Company determined goodwill and other intangible assets were not impaired.
  • Risks & Uncertainties The economy in the United States and globally has experienced volatility in recent years and may continue to experience some level of volatility for the foreseeable future.
  • Unfavorable or uncertain economic conditions can be caused by declines in economic growth, business activity, or investor or business confidence; limitations on the availability of or increases in the cost of credit and capital; increases in inflation or changes in interest rates; uncertainties regarding fiscal and monetary policies; the timing and impact of changing governmental policies, including changes in guidance and interpretation by regulatory authorities; changes in trade policies by the United States or other countries, such as tariffs or retaliatory tariffs; supply chain disruptions; consumer spending; employment levels; labor shortages; challenging labor market conditions; wage stagnation; energy prices; home prices; commercial property values; bankruptcies or a default by a significant market participant or class of counterparties; fluctuations in equity, commodity, and futures prices; the implied volatility of interest rates and credit spreads; natural disasters; climate change; epidemics; pandemics; terrorist attacks; acts of war; or a combination of these or other factors.
  • Any or all of the foregoing could ultimately have negative downstream effects on the Company's operating results, the extent of which is indeterminable at this time.
  • Investment Securities The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2025: Amortized Unrealized Unrealized Fair Value As of December 31, 2025 Cost Gains Losses (Estimated) Securities available for sale U.S.
  • Treasury & Agency securities $ 23,045,000 $ — $ ( 4,973,000 ) $ 18,072,000 Mortgage-backed securities 240,166,000 410,000 ( 30,142,000 ) 210,434,000 State and political subdivisions 38,953,000 26,000 ( 4,989,000 ) 33,990,000 Asset-backed securities 1,989,000 10,000 ( 15,000 ) 1,984,000 $ 304,153,000 $ 446,000 $ ( 40,119,000 ) $ 264,480,000 Securities to be held to maturity U.S.
  • Treasury & Agency securities $ 38,100,000 $ — $ ( 8,221,000 ) $ 29,879,000 Mortgage-backed securities 48,566,000 116,000 ( 8,924,000 ) 39,758,000 State and political subdivisions 248,408,000 161,000 ( 22,972,000 ) 225,597,000 Corporate securities 21,000,000 52,000 ( 804,000 ) 20,248,000 $ 356,074,000 $ 329,000 $ ( 40,921,000 ) $ 315,482,000 Less allowance for credit losses ( 146,000 ) — — — Net securities to be held to maturity $ 355,928,000 $ 329,000 $ ( 40,921,000 ) $ 315,482,000 Restricted equity securities Federal Home Loan Bank Stock $ 7,238,000 $ — $ — $ 7,238,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 8,275,000 $ — $ — $ 8,275,000 The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2024: Amortized Unrealized Unrealized Fair Value As of December 31, 2024 Cost Gains Losses (Estimated) Securities available for sale U.S.
  • Treasury & Agency securities $ 38,100,000 $ — $ ( 9,938,000 ) $ 28,162,000 Mortgage-backed securities 52,370,000 15,000 ( 11,360,000 ) 41,025,000 State and political subdivisions 252,180,000 83,000 ( 31,739,000 ) 220,524,000 Corporate securities 27,250,000 — ( 1,968,000 ) 25,282,000 $ 369,900,000 $ 98,000 $ ( 55,005,000 ) $ 314,993,000 Less allowance for credit losses ( 196,000 ) — — — Net securities to be held to maturity $ 369,704,000 $ 98,000 $ ( 55,005,000 ) $ 314,993,000 Restricted equity securities Federal Home Loan Bank Stock $ 6,166,000 $ — $ — $ 6,166,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 7,203,000 $ — $ — $ 7,203,000 Allowance for Credit Losses: AFS securities, as shown in the above tables, consist of securities issued by U.S.
  • Similarly, the agency and mortgage-backed securities in the HTM portfolio were determined to all be investment grade with no ACL required, at December 31, 2025 or 2024.
  • Municipal securities within HTM include two private activity bonds issued by well-known customers of the Bank with total balances of $ 18,357,000 as of December 31, 2025.
  • Corporate securities in HTM consist of 11 individual companies in the banking industry.
  • As of December 31, 2025 and 2024, the total ACL for HTM securities was $ 146,000 and $ 196,000 , respectively.
  • Contractual Maturities: The following table summarizes the contractual maturities of investment securities at December 31, 2025: Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 92,000 $ 92,000 $ 1,729,000 $ 1,725,000 Due in 1 to 5 years 7,413,000 6,584,000 34,803,000 33,363,000 Due in 5 to 10 years 20,390,000 18,693,000 98,390,000 94,855,000 Due after 10 years 276,258,000 239,111,000 221,152,000 185,539,000 $ 304,153,000 $ 264,480,000 $ 356,074,000 $ 315,482,000 The following table summarizes the contractual maturities of investment securities at December 31, 2024: Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 2,997,000 $ 2,967,000 $ 2,683,000 $ 2,694,000 Due in 1 to 5 years 294,000 293,000 20,488,000 19,335,000 Due in 5 to 10 years 29,768,000 25,700,000 99,505,000 92,362,000 Due after 10 years 295,634,000 245,720,000 247,224,000 200,602,000 $ 328,693,000 $ 274,680,000 $ 369,900,000 $ 314,993,000 Pledged Securities: At December 31, 2025, securities with a carrying value of $ 385,197,000 were pledged to secure credit lines from the FRBB and FHLBB, public deposits, repurchase agreements, and for other purposes as required by law.
  • This compares to securities with a fair value of $ 349,833,000 as of December 31, 2024 pledged for the same purposes.
  • Realized Gains and Losses: Gains and losses on the sale of securities AFS are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received.
  • There were no sales of securities for the years ended December 31, 2025, 2024 and 2023.
  • Unrealized Gains and Losses on AFS Securities: As of December 31, 2025, there were 225 AFS securities with unrealized losses held in the Company's portfolio.
  • The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2025 Value Losses Value Losses Value Losses U.S.
  • Treasury & Agency securities $ — $ — $ 18,072,000 $ ( 4,973,000 ) $ 18,072,000 $ ( 4,973,000 ) Mortgage-backed securities 1,732,000 ( 4,000 ) 177,093,000 ( 30,138,000 ) 178,825,000 ( 30,142,000 ) State and political subdivisions — — 30,672,000 ( 4,989,000 ) 30,672,000 ( 4,989,000 ) Asset-backed securities — — 1,096,000 ( 15,000 ) 1,096,000 ( 15,000 ) $ 1,732,000 $ ( 4,000 ) $ 226,933,000 $ ( 40,115,000 ) $ 228,665,000 $ ( 40,119,000 ) As of December 31, 2024, there were 243 AFS securities with unrealized losses held in the Company's portfolio.
  • Treasury & Agency securities $ — $ — $ 19,796,000 $ ( 6,246,000 ) $ 19,796,000 $ ( 6,246,000 ) Mortgage-backed securities 18,544,000 ( 222,000 ) 186,155,000 ( 40,804,000 ) 204,699,000 ( 41,026,000 ) State and political subdivisions 4,968,000 ( 70,000 ) 28,104,000 ( 6,826,000 ) 33,072,000 ( 6,896,000 ) $ 23,512,000 $ ( 292,000 ) $ 234,055,000 $ ( 53,876,000 ) $ 257,567,000 $ ( 54,168,000 ) Credit Quality Indicators: Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress.
  • All of the mortgage-backed securities owned were issued either by GMNA, FNMA or FHLMC.
  • These securities are regularly monitored as part of an overall credit relationship with the issuers; both issuers were in good standing as of December 31, 2025.
  • HTM corporate debt holdings consist of 11 individual companies in the banking industry.
  • Management conducts periodic reviews of the collectability of these securities taking into consideration such factors as the financial condition of the issuers; each were in good standing as of December 31, 2025.
  • ACL for HTM Securities: The following table presents the activity in the ACL for HTM debt securities by major security type for the years ended December 31, 2025 and 2024: For the years ended December 31, 2025 2024 State and Political Subdivisions Corporate Securities Total State and Political Subdivisions Corporate Securities Total Allowance for credit losses: Beginning balance $ 80,000 $ 116,000 $ 196,000 $ 212,000 $ 222,000 $ 434,000 Credit loss reduction ( 12,000 ) ( 38,000 ) ( 50,000 ) ( 132,000 ) ( 106,000 ) ( 238,000 ) Securities charged-off — — — — — — Recoveries — — — — — — Total ending allowance balance $ 68,000 $ 78,000 $ 146,000 $ 80,000 $ 116,000 $ 196,000 There was no ACL on U.S. government-sponsored enterprise, agency-backed securities, or mortgage-backed securities as of December 31, 2025.
  • As of December 31, 2025, none of the Company’s HTM debt securities were past due or on non-accrual status.
  • The remaining unamortized balance of the net unrealized losses for the securities transferred from AFS to HTM was $ 38,000 , net of taxes, at December 31, 2025.
  • This compares to $ 47,000 , net of taxes, at December 31, 2024.
  • As of December 31, 2025 and 2024, the Bank's investment in FHLBB stock totaled $ 7,238,000 and $ 6,166,000 , respectively.

and 163 more.

Gone since FY2024

  • The cumulative one-year gap, at December 31, 2024, was (15.98)% of total assets, compared to (11.54)% of total assets at December 31, 2023.
  • The Company's summarized static gap, as of December 31, 2024, is presented in the following table: 0-90 90-365 1-5 5+ Dollars in thousands Days Days Years Years Investment securities at amortized cost (HTM) and fair value (AFS) $ 30,810 $ 35,742 $ 153,891 $ 423,941 Restricted equity securities, at cost 6,166 — — 1,037 Loans 635,843 389,735 1,029,632 285,730 Other interest-earning assets — — — 32,414 Non-rate-sensitive assets 31,680 — — 100,389 Total assets 704,499 425,477 1,183,523 843,511 Interest-bearing deposits 1,111,104 428,310 472,326 472,551 Borrowed funds 60,000 35,000 — — Non-rate-sensitive liabilities and equity — — — 577,719 Total liabilities and equity 1,171,104 463,310 472,326 1,050,270 Period gap $ (466,605) $ (37,833) $ 711,197 $ (206,759) Percent of total assets (14.80) % (1.20) % 22.56 % (6.55) % Cumulative gap (current) $ (466,605) $ (504,438) $ 206,759 $ — Percent of total assets (14.80) % (15.98) % 6.55 % — % The earnings simulation model forecasts capture the impact of changing interest rates on one-year and two-year net interest income.
  • The Company's modeling as of December 31, 2024 projects net interest income would increase by approximately 2.8% if short-term rates affected by FOMC actions fall gradually by two percentage points over the next year, and would increase by approximately 1.7% if short term rates gradually fall by one percentage point over the next year; net interest income would decrease by approximately 4.2% if rates rise gradually by two percentage points over the next year.
  • In year two, and assuming no additional movement in rates, the model forecasts that net interest income would be higher than that earned in the first year of a stable rate environment by 19.1% in the two percentage point falling-rate scenario, and higher by 17.8% in the one percentage point falling rate scenario; net interest income would be higher than that earned in a stable rate environment by 2.6% in a two percentage point rising rate scenario, when compared to the year-one base scenario.
  • A summary of the Bank's interest rate risk simulation modeling, as of December 31, 2024 and 2023 is presented in the following table: Changes in Net Interest Income 2024 2023 Year 1 Projected changes if rates decrease by 1.0% 1.7% 2.0% Projected changes if rates decrease by 2.0% 2.8% 3.7% Projected change if rates increase by 2.0% (4.2)% (6.0)% Year 2 Projected changes if rates decrease by 1.0% 17.8% 20.8% Projected changes if rates decrease by 2.0% 19.1% 23.8% Projected change if rates increase by 2.0% 2.6% 0.7% This dynamic simulation model includes assumptions about how the balance sheet is likely to evolve through time and in different interest rate environments.
  • As of December 31, 2024, the Company was using interest rate swaps for interest rate risk management.
  • As of December 31, 2024, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure.
  • Management expects interest rates will increase in the next year and believes that the current level of interest rate risk is acceptable.
  • Financial Statements and Supplementary Data Consolidated Balance Sheets The First Bancorp, Inc. and Subsidiary As of December 31, 2024 2023 Assets Cash and cash equivalents $ 27,636,000 $ 31,942,000 Interest-bearing deposits in other banks 22,100,000 3,488,000 Securities available for sale 274,680,000 282,053,000 Securities to be held to maturity (net of ACL), fair value of $ 314,993,000 at December 31, 2024, and $ 338,570,000 at December 31, 2023 369,704,000 385,235,000 Restricted equity securities, at cost 7,203,000 3,385,000 Loans 2,340,940,000 2,129,454,000 Less allowance for credit losses 24,871,000 24,030,000 Net loans 2,316,069,000 2,105,424,000 Accrued interest receivable 13,976,000 11,894,000 Premises and equipment, net 27,855,000 28,684,000 Other real estate owned 173,000 — Goodwill 30,646,000 30,646,000 Other assets 66,968,000 63,947,000 Total assets $ 3,157,010,000 $ 2,946,698,000 Liabilities Demand deposits $ 292,255,000 $ 289,104,000 NOW deposits 676,107,000 634,543,000 Money market deposits 376,627,000 305,931,000 Savings deposits 265,451,000 299,837,000 Certificates of deposit 1,114,811,000 1,070,247,000 Total deposits 2,725,251,000 2,599,662,000 Borrowed funds – short term 51,278,000 69,652,000 Borrowed funds – long term 95,000,000 — Other liabilities 32,988,000 34,305,000 Total liabilities 2,904,517,000 2,703,619,000 Commitments and contingent liabilities Shareholders' equity Common stock, one cent par value per share 112,000 111,000 Additional paid-in capital 71,832,000 70,071,000 Retained earnings 222,823,000 211,925,000 Accumulated other comprehensive income (loss) Net unrealized loss on securities available for sale ( 42,671,000 ) ( 39,575,000 ) Net unrealized loss on securities transferred from available for sale to held to maturity ( 47,000 ) ( 56,000 ) Net unrealized gain on cash flow hedging derivative instruments 157,000 300,000 Net unrealized gain on postretirement costs 287,000 303,000 Total shareholders' equity 252,493,000 243,079,000 Total liabilities and shareholders' equity $ 3,157,010,000 $ 2,946,698,000 Common stock Number of shares authorized 18,000,000 18,000,000 Number of shares issued and outstanding 11,155,528 11,098,057 Book value per common share $ 22.63 $ 21.90 Tangible book value per common share $ 19.87 $ 19.12 The accompanying notes are an integral part of these consolidated financial statements Consolidated Statements of Income and Comprehensive Income (Loss) The First Bancorp, Inc. and Subsidiary Years ended December 31, 2024 2023 2022 Interest and dividend income Interest and fees on loans (includes tax-exempt income of $ 2,518,000 in 2024, $ 1,913,000 in 2023, and $ 1,181,000 in 2022) $ 129,440,000 $ 108,274,000 $ 75,805,000 Interest on deposits with other banks 550,000 517,000 315,000 Interest and dividends on investments (includes tax-exempt income of $ 7,940,000 in 2024, $ 8,032,000 in 2023, and $ 7,571,000 in 2022) 18,842,000 19,383,000 16,915,000 Total interest and dividend income 148,832,000 128,174,000 93,035,000 Interest expense Interest on deposits 79,411,000 61,004,000 15,359,000 Interest on borrowed funds 5,511,000 1,963,000 1,510,000 Total interest expense 84,922,000 62,967,000 16,869,000 Net interest income 63,910,000 65,207,000 76,166,000 Credit loss expense - loans 1,304,000 1,330,000 1,750,000 Credit loss reduction - debt securities HTM ( 238,000 ) ( 4,000 ) — Credit loss reduction - off-balance sheet credit exposures ( 541,000 ) ( 142,000 ) — Total credit loss expense 525,000 1,184,000 1,750,000 Net interest income after provision for credit losses 63,385,000 64,023,000 74,416,000 Non-interest income Fiduciary and investment management income 4,963,000 4,654,000 4,600,000 Service charges on deposit accounts 2,048,000 1,887,000 1,825,000 Net securities gains — — 7,000 Mortgage origination and servicing income 794,000 813,000 1,424,000 Debit card income 5,456,000 5,384,000 6,348,000 Other operating income 3,094,000 2,699,000 2,670,000 Total non-interest income 16,355,000 15,437,000 16,874,000 Non-interest expense Salaries and employee benefits 24,230,000 21,942,000 23,316,000 Occupancy expense 3,373,000 3,319,000 3,052,000 Furniture and equipment expense 5,622,000 5,391,000 5,058,000 FDIC insurance premiums 2,391,000 1,962,000 1,068,000 Amortization of identified intangibles 26,000 26,000 69,000 Other operating expense 11,514,000 11,118,000 11,341,000 Total non-interest expense 47,156,000 43,758,000 43,904,000 Income before income taxes 32,584,000 35,702,000 47,386,000 Applicable tax expense 5,539,000 6,184,000 8,396,000 Net income $ 27,045,000 $ 29,518,000 $ 38,990,000 Basic earnings per common share $ 2.45 $ 2.68 $ 3.56 Diluted earnings per common share 2.43 2.66 3.53 Other comprehensive income (loss), net of tax Net unrealized (loss) gain on securities available for sale ( 3,096,000 ) 5,143,000 ( 43,000,000 ) Net unrealized gain on securities transferred from available for sale to held to maturity, net of amortization 9,000 8,000 23,000 Net (loss) gain on cash flow hedging derivative instruments ( 143,000 ) ( 244,000 ) 544,000 Net unrecognized (loss) gain on postretirement benefits ( 16,000 ) 30,000 168,000 Other comprehensive income (loss) ( 3,246,000 ) 4,937,000 ( 42,265,000 ) Comprehensive income (loss) $ 23,799,000 $ 34,455,000 $ ( 3,275,000 ) The accompanying notes are an integral part of these consolidated financial statements Consolidated Statements of Changes in Shareholders' Equity The First Bancorp, Inc. and Subsidiary Common stock and additional paid-in capital Retained Accumulated other comprehensive Total shareholders' Shares Amount earnings income (loss) equity Balance at December 31, 2021 10,998,765 $ 66,940,000 $ 180,417,000 $ ( 1,700,000 ) $ 245,657,000 Net income — — 38,990,000 — 38,990,000 Net unrealized loss on securities available for sale, net of tax — — — ( 43,000,000 ) ( 43,000,000 ) Net unrealized gain on cash flow hedging derivative instruments, net of tax — — — 544,000 544,000 Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 23,000 23,000 Unrecognized gain for post-retirement benefits, net of tax — — — 168,000 168,000 Comprehensive income (loss) — — 38,990,000 ( 42,265,000 ) ( 3,275,000 ) Cash dividends declared ($ 1.34 per share) — — ( 14,787,000 ) — ( 14,787,000 ) Equity compensation expense — 809,000 — — 809,000 Payment for repurchase of common stock ( 8,640 ) — ( 277,000 ) — ( 277,000 ) Issuance of restricted stock, net of forfeitures 28,745 — — — — Proceeds from sale of common stock 26,316 796,000 — — 796,000 Balance at December 31, 2022 11,045,186 $ 68,545,000 $ 204,343,000 $ ( 43,965,000 ) $ 228,923,000 Net income — — 29,518,000 — 29,518,000 Net unrealized gain on securities available for sale, net of tax — — — 5,143,000 5,143,000 Net unrealized loss on cash flow hedging derivative instruments, net of tax — — — ( 244,000 ) ( 244,000 ) Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 8,000 8,000 Unrecognized gain for post-retirement benefits, net of tax — — — 30,000 30,000 Comprehensive income — — 29,518,000 4,937,000 34,455,000 Cash dividends declared ($ 1.39 per share) — — ( 15,409,000 ) — ( 15,409,000 ) Equity compensation expense — 820,000 — — 820,000 Payment for repurchase of common stock ( 8,645 ) — ( 250,000 ) — ( 250,000 ) Issuance of restricted stock, net of forfeitures 29,626 — — — — Proceeds from sale of common stock 31,890 817,000 — — 817,000 Adoption of ASU No. 2016-13 — — ( 6,277,000 ) — ( 6,277,000 ) Balance at December 31, 2023 11,098,057 $ 70,182,000 $ 211,925,000 $ ( 39,028,000 ) $ 243,079,000 Common stock and additional paid-in capital Retained Accumulated other comprehensive Total shareholders' Shares Amount Earnings income (loss) equity Balance at December 31, 2023 11,098,057 $ 70,182,000 $ 211,925,000 $ ( 39,028,000 ) $ 243,079,000 Net income — — 27,045,000 — 27,045,000 Net unrealized loss on securities available for sale, net of tax — — — ( 3,096,000 ) ( 3,096,000 ) Net unrealized loss on cash flow hedging derivative instruments, net of tax — — — ( 143,000 ) ( 143,000 ) Net unrealized gain on securities transferred from available for sale to held to maturity, net of tax — — — 9,000 9,000 Unrecognized loss for post-retirement benefits, net of tax — — — ( 16,000 ) ( 16,000 ) Comprehensive income (loss) — — 27,045,000 ( 3,246,000 ) 23,799,000 Cash dividends declared ($ 1.43 per share) — — ( 15,935,000 ) — ( 15,935,000 ) Equity compensation expense — 895,000 — — 895,000 Payment for repurchase of common stock ( 9,831 ) — ( 212,000 ) — ( 212,000 ) Issuance of restricted stock, net of forfeitures 32,859 — — — — Proceeds from sale of common stock 34,443 867,000 — — 867,000 Balance at December 31, 2024 11,155,528 $ 71,944,000 $ 222,823,000 $ ( 42,274,000 ) $ 252,493,000 The accompanying notes are an integral part of these consolidated financial statements Consolidated Statements of Cash Flows The First Bancorp, Inc. and Subsidiary For the years ended December 31, 2024 2023 2022 Cash flows from operating activities Net income $ 27,045,000 $ 29,518,000 $ 38,990,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 2,209,000 2,107,000 1,984,000 Change in deferred taxes 20,000 ( 1,360,000 ) ( 127,000 ) Credit loss expense 525,000 1,184,000 1,750,000 Loans originated for resale ( 5,866,000 ) ( 3,916,000 ) ( 21,554,000 ) Proceeds from sales and transfers of loans 6,009,000 4,283,000 22,520,000 Net gain on sales of loans ( 143,000 ) ( 92,000 ) ( 406,000 ) Net gain on sale or call of securities — — ( 7,000 ) Net amortization of investment premiums 596,000 111,000 914,000 Net (gain) loss on sale of other real estate owned — ( 42,000 ) 1,000 Provision for losses on other real estate owned 35,000 — — Equity compensation expense 895,000 820,000 809,000 Net increase in other assets and accrued interest ( 5,414,000 ) ( 680,000 ) ( 21,443,000 ) Net increase (decrease) in other liabilities ( 923,000 ) 4,624,000 17,423,000 Net gain (loss) on disposal of premises and equipment 4,000 33,000 ( 15,000 ) Amortization of investments in tax credit structures 1,029,000 303,000 305,000 Net acquisition amortization 26,000 26,000 69,000 Net cash provided by operating activities 26,047,000 36,919,000 41,213,000 Cash flows from investing activities (Increase) decrease in interest-bearing deposits in other banks ( 18,612,000 ) 205,000 62,985,000 Proceeds from sales of securities available for sale — — 1,301,000 Proceeds from maturities, payments, calls of securities available for sale 29,665,000 97,524,000 42,005,000 Proceeds from maturities, payments, calls and sales of securities held to maturity 18,441,000 8,149,000 16,544,000 Proceeds from sales of other real estate owned — 106,000 50,000 Purchases of securities available for sale ( 26,718,000 ) ( 88,581,000 ) ( 62,336,000 ) Purchases of securities to be held to maturity ( 2,750,000 ) — ( 40,621,000 ) (Purchase) redemption of restricted equity securities ( 3,818,000 ) 498,000 1,482,000 Net increase in loans ( 212,157,000 ) ( 215,077,000 ) ( 267,624,000 ) Capital expenditures ( 1,475,000 ) ( 2,635,000 ) ( 1,404,000 ) Proceeds from sale of premises and equipment 4,000 3,000 38,000 Net cash used in investing activities ( 217,420,000 ) ( 199,808,000 ) ( 247,580,000 ) Cash flows from financing activities Net increase (decrease) in demand, savings, and money market accounts 81,025,000 18,209,000 ( 45,886,000 ) Net increase in certificates of deposit 44,564,000 202,576,000 301,466,000 Advances on long-term borrowings 95,000,000 — — Repayment on long-term borrowings — ( 84,000 ) ( 55,007,000 ) Net increase (decrease) in short-term borrowings ( 18,374,000 ) ( 33,747,000 ) 22,148,000 Payment to repurchase common stock ( 212,000 ) ( 250,000 ) ( 277,000 ) Proceeds from sale of common stock 867,000 817,000 796,000 Dividends paid ( 15,803,000 ) ( 15,418,000 ) ( 14,779,000 ) Net cash provided by financing activities 187,067,000 172,103,000 208,461,000 Net (decrease) increase in cash and cash equivalents ( 4,306,000 ) 9,214,000 2,094,000 Cash and cash equivalents at beginning of year 31,942,000 22,728,000 20,634,000 Cash and cash equivalents at end of year $ 27,636,000 $ 31,942,000 $ 22,728,000 For the years ended December 31, 2024 2023 2022 Interest paid $ 84,441,000 $ 62,228,000 $ 16,068,000 Income taxes paid 4,527,000 5,621,000 8,010,000 Non-cash transactions: Net transfer from loans to other real estate owned $ 208,000 $ — $ — Change in net unrealized (loss) gain on available for sale securities, net of tax $ ( 3,096,000 ) $ 5,143,000 $ ( 43,000,000 ) The accompanying notes are an integral part of these consolidated financial statements Notes to Consolidated Financial Statements Nature of Operations The Company, through its wholly-owned subsidiary, the Bank, provides a full range of banking services to individual and corporate customers from 18 offices in coastal and eastern Maine.
  • Subsequent Events Events occurring subsequent to December 31, 2024 have been evaluated as to their potential impact on the financial statements.
  • The primary factors considered in this evaluation (a) the length of time and extent to which the fair value has been less than cost or amortized cost and the expected recovery period of the security, (b) the financial condition, credit rating and future prospects of the issuer, (c) whether the debtor is current on contractually obligated interest and principal payments, (d) the volatility of the securities' market price, (e) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery, which may be at maturity, and (f) any other information and observable data considered relevant, including the expectation of receipt of all principal and interest when due.
  • At December 31, 2024, the Company determined goodwill and other intangible assets were not impaired.
  • Risks & Uncertainties The ongoing conflicts between Russia and Ukraine, and Israel and Hamas, as well as other conflicts in the Middle East, have added to economic uncertainty and geopolitical instability.
  • Concern continues to be expressed about the commercial real estate market and the impact a downturn in this sector could have on the banking industry.
  • The failures in 2023 of several regional banks in the U.S. caused further disruption in markets and could have a lingering impact.
  • Finally, the 2024 U.S. election resulted in single party control of the executive and legislative branches of the federal government, with pledges to reign in government spending and reform numerous policies including foreign trade, tariffs, immigration, and business regulation.
  • Any or all could have negative downstream effects on the Company's operating results, the extent of which is indeterminable at this time.
  • Investment Securities The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2024: Amortized Unrealized Unrealized Fair Value As of December 31, 2024 Cost Gains Losses (Estimated) Securities available for sale U.S.
  • Treasury & Agency securities $ 38,100,000 $ — $ ( 9,938,000 ) $ 28,162,000 Mortgage-backed securities 52,370,000 15,000 ( 11,360,000 ) 41,025,000 State and political subdivisions 252,180,000 83,000 ( 31,739,000 ) 220,524,000 Corporate securities 27,250,000 — ( 1,968,000 ) 25,282,000 $ 369,900,000 $ 98,000 $ ( 55,005,000 ) $ 314,993,000 Less allowance for credit losses ( 196,000 ) — — — Net securities to be held to maturity $ 369,704,000 $ 98,000 $ ( 55,005,000 ) $ 314,993,000 Restricted equity securities Federal Home Loan Bank Stock $ 6,166,000 $ — $ — $ 6,166,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 7,203,000 $ — $ — $ 7,203,000 The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2023: Amortized Unrealized Unrealized Fair Value As of December 31, 2023 Cost Gains Losses (Estimated) Securities available for sale U.S.
  • Treasury & Agency securities $ 26,033,000 $ — $ ( 6,203,000 ) $ 19,830,000 Mortgage-backed securities 262,823,000 265,000 ( 38,491,000 ) 224,597,000 State and political subdivisions 40,306,000 41,000 ( 5,702,000 ) 34,645,000 Asset-backed securities 2,986,000 4,000 ( 9,000 ) 2,981,000 $ 332,148,000 $ 310,000 $ ( 50,405,000 ) $ 282,053,000 Securities to be held to maturity U.S.
  • Treasury & Agency securities $ 40,100,000 $ — $ ( 9,601,000 ) $ 30,499,000 Mortgage-backed securities 56,401,000 70,000 ( 10,398,000 ) 46,073,000 State and political subdivisions 254,418,000 313,000 ( 24,213,000 ) 230,518,000 Corporate securities 34,750,000 — ( 3,270,000 ) 31,480,000 $ 385,669,000 $ 383,000 $ ( 47,482,000 ) $ 338,570,000 Less allowance for credit losses ( 434,000 ) — — — Net securities to be held to maturity $ 385,235,000 $ 383,000 $ ( 47,482,000 ) $ 338,570,000 Restricted equity securities Federal Home Loan Bank Stock $ 2,348,000 $ — $ — $ 2,348,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 3,385,000 $ — $ — $ 3,385,000 Allowance for Credit Losses: AFS securities, as shown in the above tables, consist of securities issued by U.S.
  • Similarly, the agency and mortgage-backed securities in the HTM portfolio were determined to all be investment grade with no ACL required, at December 31, 2024 or 2023.
  • Municipal securities within HTM include two private activity bonds issued by well-known customers of the Bank with total balances of $ 18,974,000 as of December 31, 2024.
  • Corporate securities in HTM consist of 13 individual companies in the banking industry.
  • As of December 31, 2024 and 2023, the total ACL for HTM securities was $ 196,000 and $ 434,000 , respectively.
  • The following table summarizes the contractual maturities of investment securities at December 31, 2024: Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 2,997,000 $ 2,967,000 $ 2,683,000 $ 2,694,000 Due in 1 to 5 years 294,000 293,000 20,488,000 19,335,000 Due in 5 to 10 years 29,768,000 25,700,000 99,505,000 92,362,000 Due after 10 years 295,634,000 245,720,000 247,224,000 200,602,000 $ 328,693,000 $ 274,680,000 $ 369,900,000 $ 314,993,000 The following table summarizes the contractual maturities of investment securities at December 31, 2023: Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ — $ — $ 1,674,000 $ 1,672,000 Due in 1 to 5 years 3,489,000 3,373,000 16,387,000 15,814,000 Due in 5 to 10 years 28,551,000 25,089,000 99,942,000 93,894,000 Due after 10 years 300,108,000 253,591,000 267,666,000 227,190,000 $ 332,148,000 $ 282,053,000 $ 385,669,000 $ 338,570,000 At December 31, 2024, securities with a carrying value of $ 349,833,000 were pledged to secure credit lines from the FRBB and FHLBB, public deposits, repurchase agreements, and for other purposes as required by law.
  • This compares to securities with a fair value of $ 340,623,000 as of December 31, 2023 pledged for the same purposes.
  • Gains and losses on the sale of securities AFS are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received.
  • The following table shows securities gains and losses for 2024, 2023 and 2022: 2024 2023 2022 Proceeds from sales of securities $ — $ — $ 1,301,000 Gross realized gains — — 8,000 Gross realized losses — — ( 1,000 ) Net gain $ — $ — $ 7,000 Related income taxes $ — $ — $ 1,000 As of December 31, 2024, there were 243 AFS securities with unrealized losses held in the Company's portfolio.
  • Treasury & Agency securities $ — $ — $ 19,796,000 $ ( 6,246,000 ) $ 19,796,000 $ ( 6,246,000 ) Mortgage-backed securities 18,544,000 ( 222,000 ) 186,155,000 ( 40,804,000 ) 204,699,000 ( 41,026,000 ) State and political subdivisions 4,968,000 ( 70,000 ) 28,104,000 ( 6,826,000 ) 33,072,000 ( 6,896,000 ) $ 23,512,000 $ ( 292,000 ) $ 234,055,000 $ ( 53,876,000 ) $ 257,567,000 $ ( 54,168,000 ) As of December 31, 2023, there were 226 AFS securities with unrealized losses held in the Company's portfolio.
  • The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2023 Value Losses Value Losses Value Losses U.S.
  • Treasury & Agency securities $ — $ — $ 19,830,000 $ ( 6,203,000 ) $ 19,830,000 $ ( 6,203,000 ) Mortgage-backed securities 1,712,000 ( 14,000 ) 208,717,000 ( 38,477,000 ) 210,429,000 ( 38,491,000 ) State and political subdivisions 2,082,000 ( 49,000 ) 27,700,000 ( 5,653,000 ) 29,782,000 ( 5,702,000 ) Asset-backed securities — — 1,464,000 ( 9,000 ) 1,464,000 ( 9,000 ) $ 3,794,000 $ ( 63,000 ) $ 257,711,000 $ ( 50,342,000 ) $ 261,505,000 $ ( 50,405,000 ) Credit Quality Indicators: Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress.
  • All of the mortgage-backed securities owned were issued either by GNMA, FNMA or FHLMC.
  • These securities are regularly monitored as part of an overall credit relationship with the issuers; both issuers were in good standing as of December 31, 2024.
  • HTM corporate debt holdings consist of 13 individual companies in the banking industry.
  • Management conducts periodic reviews of the collectability of these securities taking into consideration such factors as the financial condition of the issuers; each were in good standing as of December 31, 2024.
  • The following table presents the activity in the ACL for HTM debt securities by major security type for the years ended December 31, 2024 and 2023: For the years ended December 31, 2024 2023 State and Political Subdivisions Corporate Securities Total State and Political Subdivisions Corporate Securities Total Allowance for credit losses: Beginning balance $ 212,000 $ 222,000 $ 434,000 $ — $ — $ — Impact of adopting ASC 326 — — — 209,000 229,000 438,000 Credit loss (reduction) expense ( 132,000 ) ( 106,000 ) ( 238,000 ) 3,000 ( 7,000 ) ( 4,000 ) Securities charged-off — — — — — — Recoveries — — — — — — Total ending allowance balance $ 80,000 $ 116,000 $ 196,000 $ 212,000 $ 222,000 $ 434,000 There was no ACL on U.S. government-sponsored enterprise, agency-backed securities, or mortgage-backed securities as of December 31, 2024.
  • As of December 31, 2024, none of the Company’s HTM debt securities were past due or on non-accrual status.
  • The remaining unamortized balance of the net unrealized losses for the securities transferred from AFS to HTM was $ 47,000 , net of taxes, at December 31, 2024.
  • This compares to $ 56,000 , net of taxes, at December 31, 2023.

and 159 more.

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