First Bancorp Reports $7.1 Million Net Income for Q1 2025, 17.5% Increase Year-Over-Year

First Bancorp, Inc. reported a net income of $7.1 million for the first quarter of 2025, reflecting a 17.5% increase from $6.0 million in the same period of 2024. This growth translated to basic earnings per share of $0.64, up from $0.55 year-over-year. The company declared cash dividends of $0.36 per share, representing a payout ratio of 56.3% of basic earnings. Total interest income rose to $38.7 million, a 10.6% increase from $35.0 million in the prior year, primarily driven by higher yields on loans and increased loan volume.

The bank's net interest income, adjusted for tax-equivalent yields, increased by 19.0% to $18.5 million, with a net interest margin of 2.48%, up from 2.22% in the previous year. Non-interest income also saw a 9.9% rise to $4.0 million, supported by growth in investment management and fiduciary income, as well as mortgage banking revenue. However, non-interest expenses increased by 9.2% to $12.8 million, largely due to higher salaries and employee benefits, as well as increased FDIC insurance premiums.

As of March 31, 2025, total assets stood at $3.19 billion, a 1.0% increase from the end of 2024. The loan portfolio expanded by 1.8% to $2.38 billion, with notable growth in commercial and residential loans. The allowance for credit losses (ACL) on loans was 1.05% of total loans, slightly down from 1.06% at the end of 2024. The bank's asset quality remained stable, with non-performing assets at 0.19% of total assets, up from 0.14% at the end of 2024.

In terms of strategic developments, First Bancorp continues to focus on maintaining a well-capitalized position, with a total risk-based capital ratio of 13.12% as of March 31, 2025. The bank's management is actively monitoring market conditions and adjusting its strategies accordingly, including the use of interest rate swaps to manage interest rate risk. The company remains committed to enhancing its operational efficiency, as evidenced by a decrease in its non-GAAP efficiency ratio to 56.93% from 61.15% in the previous year.

Looking ahead, First Bancorp anticipates continued growth in its loan portfolio and a stable economic environment, although it remains vigilant regarding potential market volatility and geopolitical risks. The management's outlook reflects confidence in the bank's ability to navigate these challenges while delivering value to its shareholders.