-------------------------------------------------------------------------------
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): October 16, 2002
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)
-------------------------------------------------------------------------------
Item 5. Other Events
The Company today issued the following press release:
------------------------------------------------------------------------------
First National Lincoln Corporation Reports
Record Year-to-Date EPS, Up 17.5% Over Prior Year
DAMARISCOTTA, ME., October 16 -- First National Lincoln Corporation (Nasdaq NM:
FNLC), today announced earnings per share of $1.95 on a fully diluted basis for
the nine months ended September 30, 2002, an increase of 17.5% over the $1.66
reported for the first nine months of 2001. Net income for the nine months
ended September 30, 2002, was $4,808,000, an increase of $725,000 or 17.8% over
the $4,083,000 posted in 2001. Both earnings per share and net income reported
by the Company for the first nine months set new records in 2002.
The Company also announced earnings per share of $0.68 on a fully diluted basis
for the quarter ended September 30, 2002, an increase of $0.09 or 15.3% over
the $0.59 reported for the same period in 2001. Net income for the third
quarter was $1,689,000, an increase of $243,000 or 16.8% over the $1,446,000
posted in the third quarter of 2001. Both earnings per share and net income
reported by the Company for the quarter ended September 30, 2002, set new
single-quarter records.
Total assets were $497.2 million at September 30, 2002 -- an increase of 17.9%
over September 30, 2001. Loans totaled $331.1 million, up 15.1% over September
30, 2001, while investments increased by 17.3% to $124.1 million. Deposits of
$336.8 million were up 21.3% over the prior year. As of September 30, 2002,
First National Lincoln Corporation had total equity of $42.1 million, an
increase of 13.9% or $5.1 million over September 30, 2001.
"With three great quarters now behind us, 2002 is shaping up to be an excellent
year for First National Lincoln Corporation," noted Daniel R. Daigneault, the
Company's President & Chief Executive Officer. "Our balance sheet has seen
excellent growth in both the loan and investment portfolios, and our deposit
growth this year has been exceptional -- especially in core deposits. We are
generating new business in all seven of our banking offices, and the
performance in Rockland, our newest location which opened just one year ago,
has been excellent.
"I am very pleased with the way that we have planned and managed our growth,"
President Daigneault continued. "Although we opened three new offices during
the past five years, we have not pursued growth and disregarded profitability.
Instead, our strategy has been to pursue growth opportunities that add to the
bottom line in a reasonable period of time. This is noted in Bank & Thrift
Quarterly published by Legg Mason, where we had the fourth best efficiency
ratio in our peer group of the banking companies they cover on a national
basis, and is ultimately reflected in our return on average equity, where the
same Legg Mason publication ranked us eleventh in our peer group as of June 30,
2002."
"Our shareholders have been well rewarded this year," observed F. Stephen Ward,
the Company's Treasurer & Chief Financial Officer, "with our shares up 29.2% or
$6.45 as of last night's close at $28.55 per share. This is in sharp contrast
to the 23.2% decline seen in the S&P 500 during the same period. Our price/
earnings ratio is 11.4 based on trailing twelve months' earnings and last
night's closing price of $28.55, and our dividend yield currently stands at
3.5%. In our opinion, these factors suggest that FNLC shares continue to offer
an excellent buying opportunity -- despite this year's increase -- especially
considering that we are currently trading below the high of $32.00 per share
that was set earlier this year."
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, at 207.563.3195
ext. 5001.
FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
9/30/02 9/30/01 12/31/01
Dollars in Thousands (Unaudited) (Unaudited) (Unaudited)
Assets
Cash and due from banks $ 26,304 $ 13,447 $ 10,894
Investments:
Available for sale 57,115 58,812 50,914
Held to maturity (market values $68,556
at 9/30/02, $47,574 at 9/30/01 and
$56,921 at 12/31/01) 66,989 46,979 57,272
Loans held for sale 1,983 458 466
Loans 331,142 287,799 301,304
Less allowance for loan losses 3,628 2,742 3,000
Net loans 327,514 285,057 298,304
Accrued interest receivable 2,852 2,785 2,635
Bank premises and equipment 7,851 6,189 7,563
Other real estate owned 192 429 202
Other assets 6,448 7,548 6,216
Total Assets $497,248 $421,704 $434,466
Liabilities & Shareholders' Equity
Demand deposits $ 29,885 $ 23,590 $ 22,496
NOW deposits 49,078 43,274 43,644
Money market deposits 76,632 13,199 15,878
Savings deposits 58,986 44,856 46,855
Certificates of deposit 72,096 84,277 79,907
Certificates $100,000 and over 50,123 68,537 53,909
Total deposits 336,800 277,733 262,689
Borrowed funds 113,975 102,696 131,357
Other liabilities 4,359 4,297 3,086
Total Liabilities 455,134 384,726 397,132
Shareholders' Equity:
Common stock 25 25 25
Additional paid-in capital 4,687 4,687 4,687
Retained earnings 37,103 33,146 34,030
Net unrealized gains on
available-for-sale securities 2,356 1,329 784
Treasury stock (2,057) (2,209) (2,192)
Total Shareholders' Equity 42,114 36,978 37,334
Total Liabilities &
Shareholders' Equity $497,248 $421,704 $434,466
FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
For the Nine months For the quarters
ended September 30, ended September 30,
2002 2001 2002 2001
Dollars in Thousands (Unaudited) (Unaudited)
Interest and Dividend Income:
Interest and fees on loans $16,652 $17,261 $5,623 $5,764
Interest on deposits
with other banks 26 70 21 20
Interest and dividends
on investments 5,392 5,380 1,869 1,757
Total interest
and dividend income 22,070 22,711 7,513 7,541
Interest expense:
Interest on deposits 5,809 7,893 2,034 2,577
Interest on borrowed funds 3,433 3,918 1,140 1,086
Total interest expense 9,242 11,811 3,174 3,663
Net interest income 12,828 10,900 4,339 3,878
Provision for loan losses 945 690 255 215
Net interest income after
provision for loan losses 11,883 10,210 4,084 3,663
Other operating income:
Fiduciary income 555 521 172 176
Service charges on
deposit accounts 719 671 249 225
Other operating income 2,030 1,643 947 752
Total other operating income 3,304 2,835 1,368 1,153
Other operating expenses:
Salaries and employee benefits 4,113 3,611 1,451 1,318
Occupancy expense 532 426 174 155
Furniture and equipment expense 958 742 334 267
Other 2,767 2,505 1,082 1,036
Total other operating expenses 8,370 7,284 3,041 2,776
Income before income taxes 6,817 5,761 2,411 2,040
Applicable income taxes 2,009 1,678 722 594
NET INCOME $ 4,808 $ 4,083 1,689 1,446
FIRST NATIONAL LINCOLN CORPORATION AND SUBSIDIARY
SELECTED FINANCIAL DATA
For the Nine Months For the quarters
ended September 30, ended September 30,
2002 2001 2002 2001
(Unaudited) (Unaudited)
Dollars in thousands,
except for per share amounts
Summary of Operations
Operating income $25,374 $25,546 $8,881 $8,694
Operating expense 18,557 19,785 6,470 6,654
Net interest income 12,828 10,900 4,339 3,878
Provision for loan losses 945 690 255 215
Net income 4,808 4,083 1,689 1,446
Per Common Share Data
Net income
Basic $2.00 $1.71 $0.70 $0.61
Diluted 1.95 1.66 0.68 0.59
Cash dividends declared 0.72 0.60 0.25 0.21
Book value 17.42 15.48 17.42 15.48
Market value 28.80 20.00 28.80 20.00
Financial Ratios
Return on average equity(a) 16.49% 15.72% 16.56% 16.07%
Return on average assets(a) 1.40% 1.33% 1.38% 1.37%
Average equity to average
assets 8.47% 8.46% 8.35% 8.52%
Net interest margin
tax-equivalent(a) 4.08% 3.92% 3.92% 4.08%
Dividend payout ratio 35.96% 35.04% 35.78% 34.68%
Allowance for loan
losses/total loans 1.10% 0.95% 1.10% 0.95%
Non-performing loans
to total loans 0.52% 0.63% 0.52% 0.63%
Non-performing assets
to total assets 0.39% 0.54% 0.39% 0.54%
Efficiency ratio, tax equivalent 50.06% 50.85% 51.45% 53.01%
At Period End
Total assets 497,248 421,704 497,248 421,704
Total loans 331,142 287,799 331,142 287,799
Total investment securities 124,104 105,791 124,104 105,791
Total deposits 336,800 277,733 336,800 277,733
Total shareholders' equity 42,114 36,978 42,114 36,978
(a) Annualized using 365 day basis
------------------------------------------------------------------------------
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
October 16, 2002