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Mar 31, 2024
First Bancorp Q1 2024 Earnings Report
First Bancorp reported earnings for Q1 2024, with net income increasing compared to Q1 2023 but decreasing compared to the linked quarter.
Key Takeaways
First Bancorp reported a net income of $25.3 million, or $0.61 per diluted common share, for the three months ended March 31, 2024. Loans totaled $8.1 billion, reflecting a $73.6 million contraction for the quarter, while year-over-year, loans grew $277.5 million. The on-balance sheet liquidity ratio was 15.5% at March 31, 2024, up from 14.6% for the linked quarter.
Net income was $25.3 million, or $0.61 per diluted common share.
Loans totaled $8.1 billion, a $73.6 million decrease for the quarter but a $277.5 million increase year-over-year.
Noninterest-bearing demand accounts were 33% of total deposits.
The on-balance sheet liquidity ratio increased to 15.5%.
First Bancorp
First Bancorp
Forward Guidance
The company anticipates continued improvement in its balance sheet composition throughout the year as it works towards reducing borrowings and high-cost deposits while deploying funds to higher yielding assets. Subsequent to quarter end, the Company has reduced short-term borrowings from liquidity resulting from increases in core deposits. In addition, we have initiated the sale of select investment securities from the available for sale portfolio in order to restructure the investment portfolio and to generate additional liquidity to pay off wholesale funding and invest into higher earning assets. We anticipate beneficial results to our net interest income upon completion of the strategy.
Positive Outlook
- Balance sheet composition expected to improve during the year.
- Reduction in borrowings and high-cost deposits.
- Deployment of funds to higher yielding assets.
- Reduced short-term borrowings from liquidity resulting from increases in core deposits.
- Initiated the sale of select investment securities from the available for sale portfolio in order to restructure the investment portfolio and to generate additional liquidity to pay off wholesale funding and invest into higher earning assets.