First Bancorp Reports 24.2% Increase in Net Income for First Half of 2025

First Bancorp, Inc. reported a significant increase in financial performance for the six months ending June 30, 2025, with net income rising to $15.1 million, a 24.2% increase from $12.2 million in the same period of 2024. Earnings per share also saw a notable rise, with diluted earnings per share reaching $1.35, up from $1.10 year-over-year. The company declared dividends totaling $0.73 per share, representing a payout ratio of 53.4% of basic earnings per share. For the second quarter alone, net income was $8.1 million, reflecting a 30.7% increase compared to $6.2 million in the prior year.

The company's total interest income for the first half of 2025 was $78.5 million, an increase of 9.8% from $71.5 million in 2024, primarily driven by growth in the loan portfolio. Net interest income on a tax-equivalent basis increased by 20.1% to $36.2 million, with the net interest margin improving to 2.50% from 2.21% in the previous year. Non-interest income also rose to $8.1 million, a 4.3% increase, with notable contributions from investment management and fiduciary income, as well as mortgage banking revenue.

In terms of operational metrics, total assets increased to $3.20 billion as of June 30, 2025, up from $3.16 billion at the end of 2024. The loan portfolio expanded to $2.39 billion, marking a 2.3% increase from $2.34 billion at year-end 2024. The company reported a decrease in total deposits to $2.71 billion, down 0.7% year-to-date, with shifts in deposit types reflecting seasonal patterns. The allowance for credit losses (ACL) on loans stood at 1.04% of total loans, slightly down from 1.06% at the end of 2024.

Strategically, First Bancorp has focused on maintaining strong asset quality, with non-performing assets at 0.19% of total assets, unchanged from the end of 2024. The provision for credit losses increased to $744,000 for the first half of 2025, compared to $638,000 in the same period of 2024. The company continues to monitor its loan portfolio closely, with a focus on managing credit risk and ensuring adequate reserves. Looking ahead, First Bancorp remains committed to its growth strategy while navigating potential economic uncertainties, with a strong capital position reflected in a total risk-based capital ratio of 13.31% as of June 30, 2025.