Executive Summary

Q4 2024 diluted EPS was $0.65, down vs Q3 ($0.68) due to a $1.16M provision for credit losses, but up 8.5% year over year; net income was $7.3M (+9.0% YoY) .
Net interest income rose to $17.6M, with net interest margin expanding to 2.42% (+10 bps QoQ; +8 bps YoY); efficiency ratio improved to 53.39% from 56.37% in Q3, signaling operating leverage from margin expansion and cost control .
Total loans grew $33.7M QoQ and $211.5M YoY, while core deposits increased $33.0M in Q4; available day-one liquidity exceeded $790M, covering ~156% of uninsured deposits (18.6%) .
Management expects “further gradual margin improvement in coming quarters” as pricing, repricing, and funding cost stabilization support NIM; no formal numeric guidance was issued, and no earnings call transcript was available for Q4 .

What Went Well and What Went Wrong

What Went Well

Net interest income and margin strengthened: NII increased 7.0% QoQ to $17.6M and NIM rose to 2.42% (+10 bps QoQ), driven by falling funding costs (3.33%) and stable asset yields (5.25%) .
Operating efficiency improved: Non-GAAP efficiency ratio improved to 53.39% vs 56.37% in Q3 and 54.08% in Q4 2023, reflecting margin expansion and disciplined OpEx .
Balance sheet growth with favorable asset quality: Loans +$33.7M QoQ (+$211.5M YoY) with continued low net charge-offs (0.02% for 2024) and manageable NPL/NPA ratios (NPL 0.18%, NPA 0.14%) .
Quote: “We expect this positive trend to continue with further gradual margin improvement in coming quarters,” highlighting management’s confidence in NIM trajectory .

What Went Wrong

Provisioning headwind: Q4 total provision for credit losses was $1.16M vs a reverse provision of $638K in Q3, largely due to loan growth and specific reserves on two credits moved to individually analyzed status, pressuring EPS sequentially .
Non-interest expense up YoY: Q4 non-interest expense rose to $12.1M (+$958K YoY), with salaries/benefits +$336K vs Q3, partially offset by lower other operating expenses (-$225K QoQ) .
Asset quality metrics ticked up: NPL ratio increased to 0.18% (from 0.11% in Q3), NPA ratio to 0.14% (from 0.08% in Q3), and past dues to 0.40% of loans, though levels remain favorable .

Financial Results

Quarterly Performance Trend (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	$0.55	$0.68	$0.65
Net Interest Income ($MM)	$15.075	$16.402	$17.553
Non-Interest Income ($MM)	$4.157	$4.122	$4.436
Total Revenue (NII + Non-Interest) ($MM)	$19.232	$20.524	$21.989
Provision for Credit Losses ($MM)	$0.512	$(0.638)	$1.164
Non-Interest Expense ($MM)	$11.250	$12.000	$12.145
Net Interest Margin (tax-equivalent) (%)	2.21%	2.32%	2.42%
Efficiency Ratio (non-GAAP) (%)	56.35%	56.37%	53.39%

Year-over-Year Comparison (oldest → newest)

Metric	Q4 2023	Q4 2024
Diluted EPS ($)	$0.60	$0.65
Net Interest Income ($MM)	$15.853	$17.553
Non-Interest Income ($MM)	$4.107	$4.436
Total Revenue (NII + Non-Interest) ($MM)	$19.960	$21.989
Net Interest Margin (tax-equivalent) (%)	2.34%	2.42%
Efficiency Ratio (non-GAAP) (%)	54.08%	53.39%

KPIs and Balance Sheet (oldest → newest)

KPI	Q2 2024	Q3 2024	Q4 2024
Loans ($MM, period end)	$2,247.670	$2,307.253	$2,340.940
Deposits ($MM, period end)	$2,578.080	$2,702.718	$2,725.251
Total Assets ($MM)	$3,084.944	$3,142.563	$3,151.973
Uninsured Deposits (% of total)	~16%	~17%	18.6%
Collateralized Uninsured Deposits (% of uninsured)	75%	73%	69%
Non-Performing Loans / Total Loans (%)	0.11%	0.11%	0.18%
Non-Performing Assets / Total Assets (%)	0.09%	0.08%	0.14%
PTPP Net Income ($MM, non-GAAP)	$7.982	$8.524	$9.844

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin	Coming quarters	None issued	“Further gradual margin improvement” (qualitative)	Raised – qualitative
Core Deposits	Coming quarters	None issued	Positive trajectory implied by Q4 growth; no numeric guidance	Maintained growth narrative
Credit Costs	Coming quarters	None issued	No formal guidance; Q4 provision reflects specific reserves on two credits	N/A
Dividend per Share	Q4 2024	$0.36 in Q3	$0.36 declared for Q4; payable Jan 16, 2025	Maintained

Note: No formal numeric revenue, margin, OpEx, tax rate, or segment guidance provided in Q4 materials .

Earnings Call Themes & Trends

No Q4 earnings call transcript was available in the document catalog; themes below reflect management commentary from press releases.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Net Interest Margin trajectory	Q2: NIM stabilized at 2.21%; Q3: +11 bps to 2.32% with rising asset yields and flat funding costs	NIM 2.42%, avg funding cost fell to 3.33%; management expects further gradual improvement	Improving
Funding costs & deposits	Q2: Mix shift to time deposits; day-one liquidity $594M (143% of uninsured) ; Q3: seasonal deposit lift; liquidity $703M (149%)	Core deposits +$33.0M; liquidity >$790M (~156% coverage); uninsured deposits 18.6%	Improving coverage; modest uninsured rise
Loan growth	Q2: +$73.9M, led by CRE and C&I ; Q3: +$59.6M, led by C&I and multifamily	Q4: +$33.7M; 2024 loans +$211.5M YoY; growth concentrated in CRE and residential	Sustained growth; mix shifting to CRE/residential
Asset quality	Q2: NPA 0.09%; NPL 0.11% ; Q3: NPA 0.08%; NPL 0.11%	Q4: NPA 0.14%; NPL 0.18%; net charge-offs 0.02% for 2024	Slight deterioration but still favorable
Operating efficiency	Q2: Efficiency 56.35% ; Q3: 56.37%	Q4: 53.39%, improved vs Q3 and YoY	Improving

Management Commentary

“We expect this positive trend to continue with further gradual margin improvement in coming quarters.” — Tony C. McKim, President & CEO .
“PTPP net income in the fourth quarter was $9.8 million, up $1.3 million or 15.5% from the linked quarter, with nearly all of the increase coming in net interest income.” — Tony C. McKim .
“We experienced strong earning asset growth during the year with total loans increasing $211.5 million, or 9.9%, while maintaining favorable asset quality.” — Tony C. McKim .
“Net interest margin has increased in each of the past two quarters… Through pricing, legacy asset re-pricing, and funding cost stabilization.” — Tony C. McKim .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the catalog; therefore, no Q&A disclosures or analyst-tone insights could be reviewed [ListDocuments: earnings-call-transcript returned 0 for 2025-01-01 to 2025-03-31; 2024-10-01 to 2024-12-31].

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to SPGI request limits at the time of retrieval. As a result, beat/miss vs consensus cannot be determined from available data [GetEstimates error: Daily Request Limit Exceeded].
Given improving NIM and NII, sell-side models may need to reflect lower funding costs and sequential margin expansion, but elevated provision in Q4 suggests caution on credit cost trajectory until specific reserves normalize .

Key Takeaways for Investors

Margin expansion is the central narrative: NIM rose to 2.42% and funding costs declined, driving NII growth; management expects gradual improvement to continue, a potential positive catalyst for earnings power and valuation multiples .
Operating leverage emerging: Efficiency ratio improved to 53.39% amid higher NII and disciplined expenses, indicating better pre-provision profitability (PTPP up to $9.844M) .
Credit costs normalizing from an unusually low Q3: Q4 provision increased due to loan growth and specific reserves on two credits; monitor reserve development and past-due trends (0.40%) even as net charge-offs remain very low (0.02%) .
Balance sheet growth supported by liquidity: Loans and core deposits both grew in Q4; available liquidity (> $790M) covers ~156% of uninsured deposits, reducing funding risk in a volatile rate environment .
Capital remains solid: Total risk-based capital 13.21% and leverage ratio 8.47% support growth and dividend stability; tangible book value $19.87 per share at year-end .
Dividend sustained: $0.36 per share declared for Q4 (payout ~54.7% of EPS); income orientation remains intact, offering potential total return support .
Absent formal guidance and call transcript: Trading may hinge on continuing NIM expansion, credit cost normalization, and observed trajectory in core deposits; watch next quarter’s NIM/funding commentary for confirmation of margin tailwinds .

First Bancorp, Inc /ME/ (FNLC)·Q4 2024 Earnings Summary