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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 15, 2003
FIRST NATIONAL LINCOLN CORPORATION
(Exact name of Registrant as specified in charter)
MAINE
(State or other jurisdiction of incorporation)
0-26589 01-0404322
(Commission file number) (IRS employer identification no.)
Main Street, Damariscotta, Maine 04853
(Address of principal executive offices) (Zip Code)
(207) 563-3195
(Registrant's telephone number, including area code)
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Item 5. Other Events
This information is being provided under Item 12 of Form 8-K.
The Company today issued the following press release:
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First National Lincoln Corporation Assets Top $500 Million,
Reports Record First Quarter Earnings, Up 13.3%
DAMARISCOTTA, ME., April 15 -- First National Lincoln Corporation (Nasdaq NM:
FNLC), today announced earnings per share of $0.68 on a fully diluted basis for
the three months and quarter ended March 31, 2003, an increase of $0.08 or
13.3% over the $0.60 reported for the same periods in 2002. Net income for both
the quarter and year to date was $1,679,000, an increase of $206,000 or 14.0%
over the $1,473,000 posted in 2002. Both earnings per share and net income
reported by the Company for 2003 set new first-quarter records.
Year-to-date change on the balance sheet showed total assets at $504.1 million
on March 31, 2003 -- an increase of 2.0% over December 31, 2002. Loans totaled
$346.1 million, up 4.2% over December 31, 2002, while investments increased by
5.4% to $128.7 million. Deposits of $340.4 million were up 1.8% over year end.
As of March 31, 2003, First National Lincoln Corporation had total equity of
$44.0 million, an increase of 2.9% or $1.3 million over December 31, 2002.
"We have begun 2003 with another strong quarter," commented the Company's
President and Chief Executive Officer, Daniel R. Daigneault. "While net income
is just slightly lower than the single-quarter record set in the fourth quarter
of 2002, this was the highest net income we have posted in the first quarter,
and the 13.3% increase in diluted earnings per share demonstrates the continued
excellent results which the Company has produced for many years.
"During the first quarter, we also surpassed a major milestone in the Company's
history with total assets exceeding $500 million," President Daigneault noted.
This is a direct result of the cumulative asset growth we have generated during
the past ten years -- with total assets increasing 178.4% or $323.0 million
from $181.1 million at the end of 1993 to $504.1 million on March 31, 2003. Our
strategy has been to focus on 'organic growth,' and the results achieved in our
three Knox County offices, which have been open five years or less, have been a
major contributor to this growth. More importantly, I feel that First National
Lincoln Corporation is well positioned to continue its growth in earning assets
as a result of the Company's customer-centric culture, which focuses on
exceeding expectations with exceptional service.
"Loan growth in the first quarter was very good," President Daigneault
continued. "Not only did we increase our loan portfolio by $14.0 million over
December 31, 2002's totals, we also increased the volume of residential
mortgages sold to the secondary market by $7.3 million. This resulted in
combined loan growth -- both on-balance-sheet and off-balance-sheet -- of $21.3
million for the quarter. At the same time, our asset quality remains excellent,
with past-due loans at the lowest levels we have seen in many years and the
percentage of non-performing assets to total assets down slightly from year
end."
"The price of First National Lincoln Corporation shares increased during the
first quarter of 2003," noted F. Stephen Ward, the Company's Treasurer and
Chief Financial Officer. "We closed the quarter at $33.95 per share, up $2.47
or 7.8% over December 31, 2002, which compares very favorably to the overall
equity market, with the S&P 500 down 3.6% during the same period. Our stock
reached a new high of $37.50 per share during the quarter, and while the March
31, 2003 close was below this level, we believe the performance of our stock
reflects the excellent financial results the Company continues to produce.
"We also increased our dividend again in the first quarter of 2003," Mr. Ward
concluded. "Following the pattern established for more than seven years, our
cash dividend increased again by another $0.01 to $0.27 per share per quarter.
This results in an annual dividend of $1.08 per share, which in turn produces
an annual dividend yield of 3.30% based on the March 31 closing price --
excellent in this continued low interest rate environment. In our opinion, the
combination of all the factors presented here -- strong earnings, asset growth,
excellent credit quality, as well as our stock price and dividend yield --
reinforce the attractiveness of FNLC as an investment."
First National Lincoln Corporation, headquartered in Damariscotta, Maine, is
the holding company for The First National Bank of Damariscotta and Pemaquid
Advisors. The First is an independent community bank serving Mid-Coast Maine
with seven offices in Lincoln and Knox Counties that provide consumer and
commercial banking products and services. Pemaquid Advisors provides investment
advisory, private banking and trust services from offices in Damariscotta,
Boothbay Harbor, and Portland, Maine.
Forward-looking and cautionary statements: except for the historical
information and discussions contained herein, statements contained in this
release may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements involve a
number of risks, uncertainties and other factors that could cause actual
results to differ materially, as discussed in the Company's filings with the
Securities and Exchange Commission.
For more information, please contact F. Stephen Ward, Treasurer & Chief
Financial Officer, at 207.563.3195 ext. 5001
First National Lincoln Corporation
Consolidated Balance Sheets (Unaudited)
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March 31, March 31, December 31,
Dollars in Thousands 2003 2002 2002
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Assets
Cash and due from banks $ 10,146 $ 7,829 $ 14,181
Overnight Funds Sold 3,800 - 9,325
Investments:
Available for sale 63,652 49,364 56,410
Held to maturity (market values $66,771
at 3/31/03, $56,141 at 3/31/02 and
$67,421 at 12/31/02) 65,015 57,836 65,663
Loans held for sale (fair value
approximates cost) 1,535 2,138 2,613
Loans 346,095 304,726 332,074
Less: allowance for loan losses 3,809 3,227 3,700
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Net loans 342,286 301,499 328,374
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Accrued interest receivable 3,051 2,821 2,642
Bank premises and equipment 7,657 7,784 7,833
Other real estate owned 75 200 255
Other assets 6,871 7,248 6,772
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Total Assets $ 504,088 $ 436,719 $ 494,068
======= ======= =======
Liabilities & Stockholders' Equity
Demand deposits $ 23,501 $ 20,601 $ 25,484
NOW deposits 46,736 42,363 46,989
Money market deposits 91,611 24,429 80,805
Savings deposits 60,116 48,996 59,521
Certificates of deposit 69,110 82,366 71,169
Certificates $100,000 and over 49,303 57,642 50,256
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Total deposits 340,377 276,397 334,224
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Borrowed funds 115,151 118,763 113,365
Other liabilities 4,608 3,424 3,784
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Total Liabilities 460,136 398,584 451,373
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Shareholders' Equity:
Common stock 25 25 25
Additional paid-in capital 4,687 4,687 4,687
Retained earnings 39,348 34,953 38,322
Net unrealized gains on
available-for-sale securities 2,339 658 2,170
Treasury stock (2,447) (2,188) (2,509)
------- ------- -------
Total Stockholders' Equity 43,952 38,135 42,695
------- ------- -------
Total Liabilities
& Stockholders' Equity $ 504,088 $ 436,719 $ 494,068
======= ======= =======
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First National Lincoln Corporation
Consolidated Statements of Income (Unaudited)
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For the three months ended
March 31,
Dollars in Thousands 2003 2002
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Interest Income:
Interest and fees on loans $ 5,265 $ 5,474
Interest on deposits with other banks 43 5
Interest and dividends on investments 1,560 1,675
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Total interest income 6,868 7,154
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Interest expense:
Interest on deposits 1,704 1,900
Interest on borrowed funds 1,064 1,092
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Total interest expense 2,768 2,992
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Net interest income 4,100 4,162
Provision for loan losses 225 410
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Net interest income after provision for loan losses 3,875 3,752
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Other operating income:
Fiduciary income 189 185
Service charges on deposit accounts 267 220
Other operating income 767 514
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Total other operating income 1,223 919
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Other operating expenses:
Salaries and employee benefits 1,412 1,357
Occupancy expense 192 186
Furniture and equipment expense 358 310
Other 796 766
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Total other operating expenses 2,758 2,619
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Income before income taxes 2,340 2,052
Applicable income taxes 661 579
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NET INCOME $ 1,679 $ 1,473
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First National Lincoln Corporation
Selected Financial Data (Unaudited)
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For the three months ended
Dollars in thousands, March 31,
except for per share amounts 2003 2002
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Summary of Operations
Operating Income $ 8,091 $ 8,073
Operating Expense 5,751 6,021
Net Interest Income 4,100 4,162
Provision for Loan Losses 225 410
Net Income 1,679 1,473
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Per Common Share Data
Basic Earnings per Share $ 0.69 $ 0.62
Diluted Earnings per Share 0.68 0.60
Cash Dividends Declared 0.27 0.23
Book Value 18.16 15.92
Market Value 33.95 28.15
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Financial Ratios
Return on Average Equity (a) 15.77% 15.76%
Return on Average Assets (a) 1.36% 1.37%
Average Equity to Average Assets 8.59% 8.67%
Net Interest Margin Tax-Equivalent (a) 3.66% 4.23%
Dividend Payout Ratio 39.13% 37.10%
Allowance for Loan Losses/Total Loans 1.10% 1.06%
Non-Performing Loans to Total Loans 0.34% 0.56%
Non-Performing Assets to Total Assets 0.25% 0.48%
Efficiency Ratio 49.52% 49.69%
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At Period End
Total Assets $ 504,088 $ 436,719
Total Loans 346,095 304,726
Total Investment Securities 128,667 107,200
Total Deposits 340,377 276,397
Total Shareholders' Equity 43,952 38,135
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(a) Quarterly data annualized using a 365-day basis
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Company has duly caused this report to be filed on its behalf by
the undersigned thereunto duly authorized.
FIRST NATIONAL LINCOLN CORPORATION
By: /s/ F. Stephen Ward
F. Stephen Ward
Treasurer & Chief Financial Officer
April 15, 2003