Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
|
New words:
ACL, actuarial, Analyst, AOCI, behalf, BTFP, CA, channel, CIO, CLLD, conferencing, consumption, cooling, courier, credentialed, delegated, delineated, digital, disaggregated, dropped, dropping, Endgame, enterprise, era, ERM, exceptionally, farm, February, FFFIEC, FHLBB, FHLMC, FNMA, FRBB, GDP, geothermal, GNMA, green, handicapped, hardware, heating, IAL, implicit, incident, installed, installment, internationally, investee, ISACA, Israel, lifetime, LIHTC, Middle, moderate, modernize, multifamily, network, nonowner, OCI, omitted, outpacing, oversee, overseen, paragraph, parity, peer, penetration, pool, principle, proliferated, proposition, quell, reader, redeployed, regime, regression, reliant, research, saving, session, solar, space, standing, Steering, stream, symbol, thirteen, Tool, TSC, unconditionally, unintended, unrated, Verifying, video, Vietnam, women
Removed:
administrator, afford, amendment, ARRC, Arriving, assignment, assure, auto, automatically, began, beverage, cancellation, chain, classify, compensating, comprising, confirm, craft, criticized, curtail, deferring, deficient, deploy, disbursed, discontinuance, discontinuation, disproportionate, emergence, establishment, evolved, exempt, expired, FDIA, fell, finalize, Finally, food, forgo, guide, historic, identification, implicate, imprecision, interagency, interim, ISDA, isolated, job, judged, judgmental, lifted, lowering, mentioned, midst, myriad, nationwide, nonaccruing, ordering, outbreak, participated, Payroll, permitted, plant, pleasure, preventative, proceed, protective, protocol, protracted, publish, reached, recognizing, recommended, recreation, Redemption, repeated, replace, rose, SBA, segregated, setting, shortly, society, sooner, SRC, statutorily, strata, summarize, surcharge, surfaced, sustained, systematic, tradeoff, trailing, transition, twenty, unallocated, unavailability, undetected, unpaid, unpredictable, warranted, watch, whichever, widespread, worldwide
Financial report summary
?Risks
- We are subject to credit risk and may incur losses if loans are not repaid.
- Our loan portfolio includes commercial, commercial real estate and commercial construction loans that may have higher risks than other types of loans.
- Our Allowance for Credit Losses may be insufficient and require additional provision from earnings.
- The Maine foreclosure process can be lengthy and add additional losses for the Bank.
- The Bank is exposed to risk of environmental liabilities with respect to properties to which it takes title.
- A decline in economic conditions or real estate values in our primary market area could adversely impact results of operations and financial condition.
- Changes in interest rates could adversely affect our net interest income and profitability.
- The value of our investment portfolio may be negatively affected by changes in interest rates and disruptions in securities markets.
- Illiquidity could impair our ability to fund operations and jeopardize our financial condition.
- Loss of lower-cost funding sources could lead to margin compression and decrease net interest income.
- Lack of loan demand may adversely impact net interest income.
- The soundness of other financial institutions could adversely affect us.
- Our investment management activities are dependent on the value of investment securities which may lead to revenue fluctuations.
- We are dependent upon the services of our management team, and if we are unable to retain the services of our management team, our business may suffer.
- Our internal control systems are inherently limited and may fail or be circumvented.
- We continually encounter technological change that may be difficult (costly) to keep up with.
- We are subject to security, transactional and operational risks relating to the use of technology that could damage our reputation and our business.
- We are subject to claims and litigation that may impact our earnings and/or our reputation.
- Damage to our reputation could significantly harm our businesses.
- Our recent results may not be indicative of our future results.
- Our business has been and may continue to be adversely affected by conditions in the financial markets and economic conditions generally and by increased regulation.
- Economic risks in the United States and abroad may adversely affect our financial condition and results.
- We operate in a highly regulated environment and may be adversely affected by changes in law and regulations.
- Basel III Capital Rules may limit future activity.
- Significant competition in the financial services industry may impact our results.
- There may not be a robust trading market for our common stock.
- The price of our common stock may fluctuate.
- The inability to receive dividends from the Bank would negatively affect our ability to pay dividends to shareholders.
- If we do not manage our capital position strategically, our return on equity could be lower compared to our competitors as a result of our high level of capital.
- We may issue additional equity securities or engage in other transactions which dilute our book value or affect the priority of the common stock, which may adversely affect the market price of our common stock.
- Potential acquisitions may disrupt our business and dilute shareholder value.
Management Discussion
- Net interest income on a tax-equivalent basis decreased 13.6% or $10.6 million to $67.9 million for the year ended December 31, 2023 from the $78.5 million reported for the year ended December 31, 2022. The Company's net interest margin was 2.49% in 2023, compared to 3.15% in 2022.
- Total interest income on a tax-equivalent basis in 2023 was $130.8 million, an increase of $35.5 million or 37.2% from the $95.4 million posted by the Company in 2022. Interest income in 2022 included $1.2 million of non-recurring PPP revenue. Growth in earning assets coupled with higher interest rates resulted in the period to period increase. Total interest expense in 2023 was $63.0 million, an increase of $46.1 million or 273.3% from the $16.9 million posted by the Company in 2022. Higher market interest rates resulting from FOMC actions coupled with changing customer product preferences to higher cost money market and CD products led to the period-to-period increase, resulting in the decrease in net interest income. Tax-exempt interest income amounted to $9.9 million for the year ended December 31, 2023, and $8.8 million for the year ended December 31, 2022.
- 1 Represents the change attributable to a combination of change in rate and change in volume.