FNLC

This article first appeared on GuruFocus. Net Income: $96 million, $0.62 per share, up 24% year-over-year. Pretax Pre-Provision Income: $138 million, up 11% year-over-year. Return on Average Assets (ROA): 2.02% for the quarter. Total Loans: $13.3 billion, up 5% on a linked quarter annualized basis. Total Loan Originations: $1.7 billion, reflecting a 21% year-over-year increase. Total Deposits: Grew by $274 million during the quarter. Common Equity Tier 1 (CET1): 17% at the end of the quarter. Net Interest Income: $229.1 million, up 3.7% quarter-over-quarter. Net Interest Margin (NIM): 4.87%, a 12-basis-point increase from the previous quarter. Operating Expenses: $127.3 million for the quarter. Efficiency Ratio: 48.1%, slightly lower than the previous quarter's 49.1%. Nonperforming Assets: Increased by $5.1 million compared to the previous quarter. Allowance for Loan Losses: $245 million, representing 1.85% of total loans. Net Charge-Offs: $60 million, or 49 basis points of average loans. Book Value Per Share: $12.68. Tangible Common Equity Ratio: 10.08%. Warning! GuruFocus has detected 6 Warning Sign with FNLC. Is FNLC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Bancorp Inc (NASDAQ:FNLC) reported a strong net income of $96 million, or $0.62 per share, marking a 24% increase compared to the same quarter last year. The company achieved an all-time high pretax pre-provision income of $138 million, up 11% year-over-year. Loan growth accelerated, driven by commercial activity in Puerto Rico, with total loans reaching $13.3 billion, a 5% increase on a linked quarter annualized basis. Total deposits grew by $274 million during the quarter, primarily due to an increase in government deposits and a slight rise in core customer deposits. The company maintained a strong Common Equity Tier 1 (CET1) ratio of 17%, providing ample room for strategic investments and shareholder returns through share buybacks and dividends. Early stage delinquency increased by approximately $32.9 million compared to the previous quarter, mainly due to a rise in the auto and finance leases portfolio. Nonperforming assets grew by $5.1 million, primarily due to a $14.8 million inflow of a commercial and industrial loan in the Florida region. Other income decreased to $35.7 million from $37.7 million in the previous quarter, largely due to seasonal contingent commissions. Operating expenses remained relatively flat at $127.3 million, with expectations of an increase in the third quarter due to wage hikes and business promotions. The efficiency ratio, although improved, is expected to remain in the 50% to 52% range, indicating ongoing challenges in reducing operational costs. Q: Loan growth was solid this quarter, particularly in Puerto Rico and Florida. Can you discuss the types of originations and the competitive environment? A: Aurelio Aleman, CEO: The growth was primarily in commercial loans, with stability in the auto consumer portfolio. The commercial side saw a mix of acquisitions, CRE, construction, and C&I, including warehousing, hotels, and healthcare. We also increased exposure in a financially solid municipality through debt restructuring. Q: With a CET1 ratio around 17%, are there any M&A opportunities to utilize excess capital? A: Aurelio Aleman, CEO: We are actively looking for strategic fits that align with our operating model, but there's nothing specific to announce. We continue to focus on organic growth, particularly in our new Florida region, while executing buybacks and delivering dividends. Q: The margin was a highlight this quarter. Can you explain the repricing dynamics of the securities book? A: Said Ortiz, CFO: We expect about $400 million in securities to reprice in the second half of the year, yielding around 1.92%. In 2027, $100 million will reprice at 1.73%. Over the next 18 months, $1.2 billion will reprice, contributing to margin expansion. Q: Can you provide expectations around government deposit flows and competitive pricing dynamics for the core portfolio? A: Aurelio Aleman, CEO: Government deposits are linked to an index and can be volatile. We expect stability in government deposits and continue to target growth in our core franchise. Deposit costs should remain stable, with some competition to retain high balances. Q: Regarding expenses and the efficiency ratio, do you foresee moving below the 50% target longer term? A: Aurelio Aleman, CEO: We are close to our expense guidance, investing in technology and branch expansion. While revenue growth could lower the efficiency ratio, we will continue investing regardless of new revenue opportunities. We aim to maintain around the 50% target. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Interest Margin Expansion and Improved Efficiency Lead to an 18.6% Increase in Second Quarter Earnings DAMARISCOTTA, Maine, July 22, 2026--(BUSINESS WIRE)--The First Bancorp (Nasdaq: FNLC), ("the Company", "we", "us", "our"), parent company of First National Bank, today reported unaudited results for the quarter and six months ended June 30, 2026. Net income for the second quarter was $9.6 million with fully diluted earnings per share of $0.85, increases of 18.6% and 17.8%, respectively, from net income of $8.1 million and diluted earnings per share of $0.72 for the quarter ended June 30, 2025. Strong earnings for the period were driven by sustained net interest margin expansion, enhanced non-interest income, and disciplined expense control. Year-to-date in 2026, net income was $18.6 million with fully diluted earnings per share of $1.65, increases of 22.5% and 21.7%, respectively, from net income of $15.1 million and earnings per share of $1.35 for the six months ended June 30, 2025. Second Quarter Notable Items: Net Income of $9.6 million is an increase of 18.6% as compared to Q2 2025 Diluted EPS of $0.85 is an increase of 17.8% from Q2 2025 Net Interest Margin expanded to 2.88%, a 36-basis point increase from Q2 2025 Loan growth in the period of $18.6 million Efficiency Ratio of 50.33%, improved from 52.39% in Q2 2025 Tangible Book Value per share rose to $23.25, up 11.0% from Q2 2025 Quarterly shareholder dividend increased to $0.38 per share CEO COMMENTS "I am pleased to report strong year-over-year earnings growth for the second quarter," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income of $9.6 million for the second quarter of 2026 represents an increase of 18.6% from the second quarter of 2025. Our Return on Average Assets for the period was 1.20% and our Return on Average Tangible Common Equity was 14.67%, both up nicely from 1.01% and 13.95%, respectively, a year ago." "Our net interest margin improved for the eighth consecutive quarter, to 2.88% for the second quarter of 2026, up 2 basis points in the period and up 36 basis points from the second quarter of 2025. Margin improvement has been focused in stable earning asset yields and reduced funding costs, propelling net interest income up 15.0% from the prior year quarter. Growth in non-interest income, notably wealth management and debit card revenue, was an additional catalyst for the bottom line. Overall revenue growth also drove an improvement in our efficiency ratio to 50.33% for the period as compared to 52.39% a year ago." "Total assets increased $15 million in the quarter, including net loan growth of $19 million. New loan production for the quarter was $131 million, up modestly from the first quarter, as we focus upon pricing discipline and prudent underwriting of new credits. Total deposits increased $15 million in the period, with growth in short-term time deposits being partially offset by a decrease in non-maturity deposits. Non-maturity deposit outflow in the quarter was in line with seasonal patterns. We expect strong local deposit inflow through year-end based on these same patterns, allowing for reduction of higher-cost, short-term funding, helping to sustain margin expansion against recent rate pressure in the market. The Company's capital position is strong, and overall liquidity remains more than sufficient." Concluding, Mr. McKim shared, "We are pleased with the strong operating results produced in the second quarter. As the credit environment and related credit costs normalize off of the extraordinary lows of the past few years, the Bank is well positioned and poised for continued growth." OPERATING RESULTS Q2 2026 v. Q2 2025 (prior year quarter) Net income was $9.6 million for the three months ended June 30, 2026, an increase of $1.5 million or 18.6% from the second quarter of 2025. Net interest income was $21.2 million for the three months ended June 30, 2026, an increase of $2.8 million or 15.0% from the second quarter of 2025. Net interest margin improved to 2.88% for the second quarter of 2026, up from 2.52% in the prior year quarter. The lift in margin was the result of stable yields on earning assets coupled with a 40-basis point decrease in the cost of total liabilities. Earning assets averaged a yield of 5.34% for the three months ended June 30, 2026, while total liabilities carried an average cost of 2.88%. Total non-interest income was $4.7 million for the three months ended June 30, 2026, an increase of $532,000, or 12.9% from the second quarter of 2025. The increase was centered in Wealth Management revenue which was up $212,000 or 15.9% from the prior year on strong growth in assets under management. Debit card revenue increased $89,000 or 6.9%, while other operating income increased $211,000 or 28.2%. Total non-interest expense for the three months ended June 30, 2026, was $13.4 million, an increase of $1.2 million, or 9.7%, from the second quarter of 2025. The period-to-period change is centered in employee salaries and benefits, resulting from annual salary adjustments and higher health insurance expenses. OPERATING RESULTS Q2 2026 v. Q1 2026 (linked quarter) Net income was $9.6 million for the three months ended June 30, 2026, an increase of $567,000 or 6.3% from the first quarter of 2026. Net interest income of $21.2 million for the three months ended June 30, 2026, was an increase of $473,000 or 2.3% from the linked quarter, resulting from expansion in both average earning assets and net interest margin. Average earning assets grew $10.3 million in the second quarter, while net interest margin increased to 2.88%, an improvement of 2 basis points from the linked quarter. Total non-interest income of $4.7 million for the second quarter of 2026 was up $210,000 from the first quarter of 2026. The increase was centered in Debit Card revenue, which was up $175,000 on strong transaction volume. Revenue increased $62,000 at First National Wealth Management, while other operating income fell $59,000, principally on lower loan-based derivative fees. Total non-interest expense for the three months ended June 30, 2026, was $13.4 million, a decrease of $239,000, or 1.8%, from the first quarter. As compared to the linked quarter, salaries and benefit expense fell $210,000 due to lower payroll taxes and higher deferred salaries, and occupancy expenses fell $120,000 attributable to lower seasonal costs for building maintenance and fuel. LOANS, TOTAL ASSETS & FUNDING Total assets as of June 30, 2026, were $3.22 billion, up $15.3 million in the second quarter. Earning assets grew $9.3 million with loan growth of $18.6 million during the period. Investment balances grew by $17.6 million in the quarter, while overnight funds sold decreased by $27.4 million. Loan balances grew at an annualized rate of 3.10% in the second quarter. The residential mortgage and home equity loan segments each contributed to loan portfolio growth, up $12.0 million and $13.2 million, respectively, during the period. Commercial and industrial loan balances increased $1.0 million, while commercial real estate loan balances and multifamily loan balances decreased by $9.4 million and $10.6 million, respectively. Total deposits as of June 30, 2026, were $2.68 billion, an increase of $15.1 million in the quarter. Non-maturity deposits fell $28.7 million in the second quarter, consistent with seasonal patterns, while time deposits, principally short-term, increased $43.9 million. Borrowed funds increased $18.3 million during the period, mostly in short-term FHLB advances. Uninsured deposits as of June 30, 2026, were estimated at 17.2% of total deposits, and 74% of uninsured deposits were fully collateralized. Available day-one liquidity was $706 million, sufficient to cover 153% of estimated uninsured deposits. ASSET QUALITY Overall asset quality remains satisfactory and was stable in the second quarter. As of June 30, 2026, the ratio of non-performing assets to total assets was 0.54%, up slightly from 0.51% as of March 31, 2026, and compared to 0.19% as of June 30, 2025. The ratio of non-performing loans to total loans was 0.71% as of June 30, 2026, up slightly from 0.67% as of March 31, 2026, and compared to 0.25% as of June 30, 2025. Loans past due thirty days or more improved to 0.93% of total loans as of June 30, 2026, down from 1.14% as of March 31, 2026. The Allowance for Credit Losses ("ACL") on loans stood at 1.01% of total loans as of June 30, 2026, down slightly from the linked quarter and prior year quarter. A provision for credit losses of $919,000 was recorded in the second quarter of 2026. Net loan charge-offs in the second quarter totaled $1.6 million concentrated within a single credit relationship. Year-to-date, net charge-offs represent an annualized 0.20% of total loans. CAPITAL The Company’s regulatory capital position was strong as of June 30, 2026. The Leverage Capital ratio increased to an estimated 9.21% as of June 30, 2026, as compared to the 9.09% and 8.48% reported as of March 31, 2026, and as of June 30, 2025, respectively. The estimated Total Risk-Based Capital ratio was 14.24% as of June 30, 2026, as compared to the 14.05% and 13.31% reported as of March 31, 2026, and as of June 30, 2025, respectively. The Company's tangible book value per share was $23.25 as of June 30, 2026, up from $22.71 as of March 31, 2026, and up from $20.94 as of June 30, 2025. The Tangible Common Equity ratio increased to 8.23% as of June 30, 2026, up from 8.08% as of March 31, 2026, and 7.41% as of June 30, 2025. DIVIDEND On June 25, 2026, the Company's Board of Directors declared a second quarter dividend of $0.38 per share. The dividend was paid on July 17, 2026, to shareholders of record as of July 7, 2026. ABOUT THE FIRST BANCORP The First Bancorp, the parent company of First National Bank, is based in Damariscotta, Maine. Founded in 1864, First National Bank is a full-service community bank with $3.19 billion in assets. The Bank provides a complete array of commercial and retail banking services through eighteen locations in mid-coast and eastern Maine. First National Wealth Management, a division of the Bank, provides investment management and trust services to individuals, businesses, and municipalities. More information about The First Bancorp, First National Bank and First National Wealth Management may be found at www.thefirst.com. Use of Non-GAAP Financial Measures Certain information in this release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance (including for purposes of determining the compensation of certain executive officers and other Company employees) and believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and with other financial institutions, as well as demonstrating the effects of significant gains and charges in the current period, in light of the disclosure practices employed by many other publicly-traded financial institutions. The Company believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. In several places net interest income is calculated on a fully tax-equivalent basis. Specifically included in interest income was tax-exempt interest income from certain investment securities and loans. An amount equal to the tax benefit derived from this tax-exempt income has been added back to the interest income total which, as adjusted, increased net interest income accordingly. Management believes the disclosure of tax-equivalent net interest income information improves the clarity of financial analysis, and is particularly useful to investors in understanding and evaluating the changes and trends in the Company's results of operations. Other financial institutions commonly present net interest income on a tax-equivalent basis. This adjustment is considered helpful in the comparison of one financial institution's net interest income to that of another institution, as each will have a different proportion of tax-exempt interest from its earning assets. Moreover, net interest income is a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average earning assets. For purposes of this measure as well, other financial institutions generally use tax-equivalent net interest income to provide a better basis of comparison from institution to institution. The Company follows these practices. The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements, which have been prepared in accordance with GAAP. A 21.0% tax rate was used in both 2026 and 2025. The Company presents its efficiency ratio using non-GAAP information which is most commonly used by financial institutions. The GAAP-based efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The non-GAAP efficiency ratio excludes securities losses and provision for credit losses on securities from non-interest expenses, excludes securities gains from non-interest income, and adds the tax-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio: The Company presents certain information based upon tangible common equity instead of total shareholders' equity. The difference between these two measures is the Company's intangible assets, specifically goodwill from prior acquisitions. Management, banking regulators and many stock analysts use the tangible common equity ratio and the tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. The following table provides a reconciliation of average tangible common equity to the Company's consolidated financial statements, which have been prepared in accordance with U.S. GAAP: To provide period-to-period comparison of operating results prior to consideration of credit loss provision and income taxes, the non-GAAP measure of PTPP Net Income is presented. The following table provides a reconciliation to Net Income: 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 and events to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission. Category: EarningsSource: The First Bancorp View source version on businesswire.com: https://www.businesswire.com/news/home/20260722216201/en/ Contacts The First BancorpRichard M. Elder, EVP, Chief Financial [email protected]

Net Interest Margin Expansion and Improved Efficiency Drive a 27% Increase in First Quarter Earnings DAMARISCOTTA, Maine, April 22, 2026--(BUSINESS WIRE)--The First Bancorp (Nasdaq: FNLC), ("the Company", "we", "us", "our"), parent company of First National Bank, today reported unaudited results for the quarter ended March 31, 2026. Net income for the period was $9.0 million with fully diluted earnings per share of $0.80, as compared to net income of $7.1 million and diluted earnings per share of $0.63 for the three months ended March 31, 2025. First Quarter Notable Items: Net Income of $9.0 million is an increase of 27.1% as compared to Q1 2025 Diluted EPS of $0.80 is an increase of 26.2% from Q1 2025 Net Interest Margin expanded to 2.86%, a 38 basis point increase from Q1 2025 Loan growth in the period of $11.0 million Efficiency Ratio of 52.64%, improved from 56.93% in Q1 2025 Tangible Book Value per share rose to $22.71, up 11.1% from Q1 2025 Quarterly shareholder dividend of $0.37 per share CEO COMMENTS "I am pleased to report continued year-over-year quarterly earnings growth to kick off 2026," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income of $9.0 million for the first quarter is an increase of 27.1% from the first quarter of 2025. Our Return on Average Assets for the period was 1.15% and our Return on Average Tangible Common Equity was 14.15%, both up nicely from 0.91% and 12.64%, respectively, a year ago. "Earnings growth has been driven by continued expansion of our net interest margin, coupled with increased non-interest revenue and controlled expenses. Our margin improved for the seventh consecutive quarter, to 2.86% for the first quarter of 2026, up 38 basis points from the first quarter of 2025, with the improvement stemming from a combination of earning asset yield enhancement focused in the loan portfolio and reduced funding costs. "Total assets increased $34 million in the quarter, including net loan growth of $11 million. New loan production for the quarter was $116 million. Total deposits were flat as non-maturity deposits followed a typical seasonal pattern, falling $58.6 million during the period, and were replaced by short-term time deposits and borrowings. Our capital position strengthened as compared to both the prior year quarter and the immediate prior quarter, and overall liquidity remains more than sufficient." Concluding, Mr. McKim shared, "We are pleased to carry forward last year's earnings momentum into 2026 with positive first quarter results. The entire team at First National Bank is focused on delivering exceptional banking experiences to our growing customer base and building value for the communities and stakeholders we serve." OPERATING RESULTS Q1 2026 v. Q1 2025 (prior year quarter) Net income was $9.0 million for the three months ended March 31, 2026, an increase of $1.9 million or 27.1% from the first quarter of 2025. Net interest income was $20.7 million for the three months ended March 31, 2026, an increase of $2.9 million or 16.2% from the first quarter of 2025. Net interest margin improved to 2.86% for the first quarter of 2026, up from 2.48% in the prior year quarter. The lift in margin was the result of a 5 basis point increase in the tax equivalent yield on earning assets coupled with a 38 basis point decrease in the cost of total liabilities. Earning assets averaged a yield of 5.33% for the three months ended March 31, 2026, while total liabilities carried an average cost of 2.89%. Total non-interest income was $4.5 million for the three months ended March 31, 2026, an increase of $449,000, or 11.2% from the first quarter of 2025. The increase was centered in Wealth Management revenue which was up $169,000 or 12.8% from the prior year, and other operating income which increased $228,000 or 28.9%. Total non-interest expense for the three months ended March 31, 2026, was $13.6 million, an increase of $772,000, or 6.0%, from the first quarter of 2025. The period-to-period change is centered in employee salaries and benefits, resulting from annual salary adjustments, lower deferred salaries, and higher health insurance expenses. The Company's efficiency ratio for the first quarter of 2026 was 52.64%, improved from 56.93% in the prior year quarter. OPERATING RESULTS Q1 2026 v. Q4 2025 (linked quarter) Net income was $9.0 million for the three months ended March 31, 2026, a decrease of $1.2 million or 11.6% from the fourth quarter of 2025. Net interest income of $20.7 million for the three months ended March 31, 2026, was a decrease of $422,000 or 2.0% from the linked quarter, attributable primarily to Q4 2025 having two more days of net interest income accrual than Q1 2026. The net interest margin increased to 2.86% in the first quarter of 2026, an improvement of 3 basis points from the linked quarter. Total non-interest income of $4.5 million for the first quarter of 2026 was down $283,000 from the fourth quarter of 2025. The change is centered in a $396,000 decrease in Debit Card income stemming from seasonally lower transaction volume and recognition of an annual program incentive payment in the linked quarter. Other operating income increased $82,000, principally from loan-based derivative fees, and revenue increased $53,000 at First National Wealth Management. Total non-interest expense for the three months ended March 31, 2026 was $13.6 million, an increase of $485,000, or 3.7%, from the linked quarter. LOANS, TOTAL ASSETS & FUNDING Total assets as of March 31, 2026, were $3.20 billion, up $34.5 million in the first quarter. Earning assets grew $27.8 million with loan growth of $11.0 million during the period. Investment balances fell $9.5 million in the quarter while overnight funds sold increased by $26.0 million. Loan balances grew at a modest pace in the first quarter, the net effect of new loan production, scheduled amortization, and payoffs during the period. The residential mortgage and home equity loan segments each contributed to loan portfolio growth, up $4.0 million and $4.9 million, respectively in the first quarter. Commercial and industrial loan balances increased $16.1 million, while commercial real estate loan balances and multifamily loan balances decreased by $5.3 million and $8.5 million, respectively. Total deposits as of March 31, 2026 were $2.66 billion, unchanged from year-end 2025. Non-maturity deposits fell $58.6 million in the first quarter, in line with expectations. Time deposits increased $58.5 million and borrowed funds increased $8.0 million during the period. Uninsured deposits as of March 31, 2026 were estimated at 18.2% of total deposits, and 75% of uninsured deposits were fully collateralized. Available day-one liquidity was $721 million, sufficient to cover 149% of estimated uninsured deposits. ASSET QUALITY Overall asset quality remains satisfactory. As of March 31, 2026, the ratio of non-performing assets to total assets was 0.51%, compared to 0.41% as of December 31, 2025, and 0.19% as of March 31, 2025. The ratio of non-performing loans to total loans was 0.67% as of March 31, 2026, compared to 0.54% as of December 31, 2025, and 0.25% as of March 31, 2025. Loans past due thirty days or more were 1.14% of total loans as of March 31, 2026. The Allowance for Credit Losses ("ACL") on loans stood at 1.05% of total loans as of March 31, 2026, in line with both the linked quarter and prior year quarter. A provision for credit losses of $620,000 was recorded in the first quarter of 2026. Net loan charge-offs in the first quarter totaled $806,000, or 0.034% of total loans. Net charge-offs included $671,000 in loans that had been individually analyzed and were fully reserved. CAPITAL The Company’s regulatory capital position was strong as of March 31, 2026. The Leverage Capital ratio increased to an estimated 9.09% as of March 31, 2026, as compared to the 8.84% and 8.40% reported as of December 31, 2025, and as of March 31, 2025, respectively. The estimated Total Risk-Based Capital ratio was 14.04% as of March 31, 2026, as compared to the 14.02% and 13.12% reported as of December 31, 2025, and as of March 31, 2025, respectively. The Company's tangible book value per share was $22.71 as of March 31, 2026, up from $22.49 as of December 31, 2025, and up from $20.44 as of March 31, 2025. The Tangible Common Equity ratio increased to 8.08% as of March 31, 2026, up from 8.05% as of December 31, 2025, and 7.25% as of March 31, 2025. DIVIDEND On March 26, 2026, the Company's Board of Directors declared a first quarter dividend of $0.37 per share. The dividend was paid on April 17, 2026, to shareholders of record as of April 7, 2026. ABOUT THE FIRST BANCORP The First Bancorp, the parent company of First National Bank, is based in Damariscotta, Maine. Founded in 1864, First National Bank is a full-service community bank with $3.17 billion in assets. The Bank provides a complete array of commercial and retail banking services through eighteen locations in mid-coast and eastern Maine. First National Wealth Management, a division of the Bank, provides investment management and trust services to individuals, businesses, and municipalities. More information about The First Bancorp, First National Bank and First National Wealth Management may be found at www.thefirst.com. Use of Non-GAAP Financial Measures Certain information in this release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance (including for purposes of determining the compensation of certain executive officers and other Company employees) and believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and with other financial institutions, as well as demonstrating the effects of significant gains and charges in the current period, in light of the disclosure practices employed by many other publicly-traded financial institutions. The Company believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. In several places net interest income is calculated on a fully tax-equivalent basis. Specifically included in interest income was tax-exempt interest income from certain investment securities and loans. An amount equal to the tax benefit derived from this tax-exempt income has been added back to the interest income total which, as adjusted, increased net interest income accordingly. Management believes the disclosure of tax-equivalent net interest income information improves the clarity of financial analysis, and is particularly useful to investors in understanding and evaluating the changes and trends in the Company's results of operations. Other financial institutions commonly present net interest income on a tax-equivalent basis. This adjustment is considered helpful in the comparison of one financial institution's net interest income to that of another institution, as each will have a different proportion of tax-exempt interest from its earning assets. Moreover, net interest income is a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average earning assets. For purposes of this measure as well, other financial institutions generally use tax-equivalent net interest income to provide a better basis of comparison from institution to institution. The Company follows these practices. The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements, which have been prepared in accordance with GAAP. A 21.0% tax rate was used in both 2026 and 2025. The Company presents its efficiency ratio using non-GAAP information which is most commonly used by financial institutions. The GAAP-based efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The non-GAAP efficiency ratio excludes securities losses and provision for credit losses on securities from non-interest expenses, excludes securities gains from non-interest income, and adds the tax-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio: The Company presents certain information based upon tangible common equity instead of total shareholders' equity. The difference between these two measures is the Company's intangible assets, specifically goodwill from prior acquisitions. Management, banking regulators and many stock analysts use the tangible common equity ratio and the tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. The following table provides a reconciliation of average tangible common equity to the Company's consolidated financial statements, which have been prepared in accordance with U.S. GAAP: To provide period-to-period comparison of operating results prior to consideration of credit loss provision and income taxes, the non-GAAP measure of PTPP Net Income is presented. The following table provides a reconciliation to Net Income: 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 and events to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission. Category: Earnings View source version on businesswire.com: https://www.businesswire.com/news/home/20260422888641/en/ Contacts The First Bancorp Richard M. Elder, EVP, Chief Financial Officer 207-563-3195 [email protected]

Strong Fourth Quarter Results Driven by Net Interest Margin Expansion and Non-Interest Revenue Growth DAMARISCOTTA, Maine, January 21, 2026--(BUSINESS WIRE)--The First Bancorp (Nasdaq: FNLC), parent company of First National Bank, today announced operating results for the three months and year ended December 31, 2025. Fourth quarter unaudited net income was $10.2 million, an increase of 39.7% from the fourth quarter of 2024. Earnings per share on a fully diluted basis for the fourth quarter of 2025 were $0.91, up $0.25 or 38.9% from the prior year period. For the twelve months ended December 31, 2025 unaudited net income was $34.4 million, an increase of 27.2% from the $27.0 million reported for the twelve months ended December 31, 2024. Earnings per common share on a fully diluted basis were up $0.64 to $3.07 per share, an increase of 26.4% from the prior year. Fourth Quarter Notable Items: Net Interest Margin expanded 13 basis points from 3Q2025 and has increased 41 basis points from 4Q2024 Non-Interest Income grew 5.8% from 3Q2025 and grew 6.7% from 4Q2024 Core deposits increased $21.5 million from 3Q2025 Net Interest Income grew 5.2% from 3Q2025, and grew 20.3% from 4Q2024 Efficiency Ratio improved to 49.33% for the period Tangible book value increased to $22.49 per share, up 3.5% from 3Q2025 and up 13.2% from 4Q2024 Quarterly shareholder dividend of $0.37 per share CEO COMMENTS "The First Bancorp concluded 2025 with robust annual earnings of $34.4 million," commented Tony C. McKim, the Company’s President and Chief Executive Officer. "Our performance was driven by a 21.1% increase in annual net interest income, and bolstered by a 6.0% rise in non-interest revenue. Return on Average Assets for 2025 was 1.08%, with a Return on Average Tangible Common Equity of 14.50%. We continued to expand the loan portfolio with total loans increasing $53.2 million, or 2.3% for the year, while maintaining generally favorable asset quality. Local deposit generation has been a focus of business development efforts leading to year-over-year core deposit growth of $77.0 million, fully funding our loan growth and allowing for a reduction in more expensive wholesale funding balances." Mr. McKim continued, "Results for the fourth quarter of 2025 were strong as evidenced by an annualized Return on Average Assets of 1.26%, and an annualized Return on Average Tangible Common Equity of 16.12%. Net Income of $10.2 million for the period was an increase of 12.0% from the preceding quarter, and was an increase of 39.7% from the fourth quarter of 2024. Earnings growth continues to be driven by improved net interest income, which increased $1.1 million, or 5.2%, in the fourth quarter to $21.1 million. Non-interest income increased $259,000 period-to-period primarily attributable to debit card revenue. Operating expenses for the fourth quarter increased modestly from the third quarter, up $377,000 or 3.0%. "We are pleased to close out 2025 with a strong earnings quarter and look forward to continued earnings momentum in the new year. The Federal Reserve's aggressive interest rate hiking cycle post-pandemic significantly narrowed our net interest margin in 2023 and 2024, leading to a decline in profitability. With an eye towards the long-term, we have patiently and methodically employed on- and off-balance sheet strategies to recover lost margin and re-build profitability. Through the combined effects of disciplined new asset pricing, legacy asset re-pricing, and funding cost mitigation, our net interest margin has increased in each of the past six quarters. Margin expansion, coupled with non-interest income growth and expense management, has served to restore our earnings performance. The dedication and commitment of our entire team to work through a challenging period for earnings has been admirable." FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2025 Net Income was $10.2 million, or $0.91 per diluted share, for the three months ended December 31, 2025. Results compare favorably to the fourth quarter of 2024, with net income up $2.9 million, or 39.7%, and diluted earnings per share up $0.25, or 38.9%. The current quarter also compares favorably to the third quarter of 2025 ("linked quarter") in which net income was $9.1 million and diluted earnings per share were $0.81. Drivers of fourth quarter 2025 results are discussed in the following sections: Net Interest Income Net interest income was $21.1 million for the three months ended December 31, 2025, an increase of $1.1 million, or 5.2%, from the third quarter of 2025, and an increase of $3.6 million, or 20.3% from the fourth quarter of 2024. Net interest margin of 2.83% for the fourth quarter was an improvement of 13 basis points from the 2.70% margin earned in the third quarter, and a 41 basis point improvement from the 2.42% margin earned in the fourth quarter of 2024. Provision For Credit Losses Total provision for credit losses was $272,000 in the fourth quarter of 2025, compared to provision of $700,000 in the linked quarter. The current period consisted of a $615,000 provision for credit losses on loans, coupled with reverse provisions of $40,000 and $303,000 for credit losses on held to maturity securities and off-balance sheet commitments, respectively. Non-Interest Income Total non-interest income was $4.7 million for the three months ended December 31, 2025, up $259,000 from the third quarter. The linked quarter increase was centered in debit card revenue which grew $193,000 and Wealth Management revenue which increased $92,000. As compared to the fourth quarter of 2024, total non-interest income increased $298,000, centered in Wealth Management revenue growth of $159,000, or 12.5%, and an increase in other operating income, principally loan-based derivative fees, of $123,000. Non-Interest Expense Non-interest expense totaled $13.1 million for the three months ended December 31, 2025, an increase of $377,000 from the third quarter. As compared to the linked quarter, employee salaries and benefits increased $524,000 while other operating expenses decreased $86,000. The Company's efficiency ratio improved to 49.33% for the fourth quarter of 2025 as compared to 50.40% in the linked quarter and 53.39% a year ago. Loans, Total Assets & Funding Total assets at December 31, 2025 were $3.17 billion, up $9.3 million from the prior year end. Earning assets increased $15.7 million year-over-year, as loan balances grew $53.2 million, and investments declined by $22.9 million. Loan portfolio growth in 2025 was led by commercial loans which increased $17.5 million. Within commercial loans, CRE term loan balances increased $25.0 million, C&I loans increased $11.1 million and multifamily loans increased $50.2 million; construction loan balances fell by $64.7 million. Residential mortgage loans increased $28.4 million year-over-year, and home equity loan balances increased by $19.2 million. Overall loan balances fell $4.4 million in the fourth quarter following the payoff of several short-term municipal loans. Total deposits at December 31, 2025 were $2.66 billion, down $60.5 million or 2.2% from December 31, 2024, and decreased $72.8 million in the fourth quarter. Deposit balance reductions were centered in planned replacement of higher-cost, wholesale time deposits with locally sourced non-maturity deposits and a modest increase in borrowings. Core non-maturity deposits increased $77.0 million for the year centered in money market and NOW account balances, including an increase of $21.5 million in the fourth quarter. Borrowed funds increased $41.5 million year-over-year, principally in Federal Home Loan Bank term advances, and increased $34.9 million in the quarter. Uninsured deposits were an estimated 19.4% of total deposits as of December 31, 2025, and 74% of uninsured deposits were fully collateralized. Available day-one liquidity was in excess of $700 million, sufficient to cover approximately 542% of estimated uninsured, uncollateralized deposits. ASSET QUALITY Asset quality remains generally favorable. As of December 31, 2025, the ratio of non-performing assets to total assets was 0.41%, as compared to ratios of 0.14% and 0.30% as of December 31, 2024 and September 30, 2025, respectively. The ratio of non-performing loans to total loans stood at 0.54%, as compared to 0.18% a year ago and 0.40% last quarter. Net charge-offs continued to be low, ending 2025 at 0.07% of total loans, compared to 0.02% in 2024. Past due loans were 0.90% of total loans as of December 31, 2025, compared to 0.40% of total loans at December 31, 2024, and 0.69% at September 30, 2025. The allowance for credit losses on loans stood at 1.06% of total loans as of December 31, 2025, level with the 1.06% of total loans at December 31, 2024, and up slightly from 1.05% at September 30, 2025. The provision for credit losses on loans was $2.05 million in 2025, including $615,000 in the fourth quarter, as compared to $1.30 million and $1.25 million, respectively in 2024. The fourth quarter provision for credit losses on loans stems mostly from reserves established or increased for individually analyzed credits. Management considers the allowance to be at an appropriate level. CAPITAL The Company’s capital position was strong as of December 31, 2025, with an estimated total risk-based capital ratio of 13.99%, and an estimated leverage capital ratio of 8.84%. Each compares favorably to 13.22% and 8.47% respectively as of December 31, 2024. The Company's tangible book value was $22.49 per share as of December 31, 2025, an increase from $19.87 a year earlier, and up from $21.74 as of September 30, 2025. DIVIDEND On December 18, 2025, the Company's Board of Directors declared a fourth quarter dividend of $0.37 per share. The fourth quarter dividend represents a payout to shareholders of 40.39% of earnings per share for the period and was paid on January 16, 2026 to shareholders of record as of January 6, 2026. ABOUT THE FIRST BANCORP The First Bancorp, the parent company of First National Bank, is based in Damariscotta, Maine. Founded in 1864, First National Bank is a full-service community bank with $3.14 billion in assets. The Bank provides a complete array of commercial and retail banking services through eighteen locations in mid-coast and eastern Maine. First National Wealth Management, a division of the Bank, provides investment management and trust services to individuals, businesses, and municipalities. More information about The First Bancorp, First National Bank and First National Wealth Management may be found at www.thefirst.com. Use of Non-GAAP Financial Measures Certain information in this release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these "non-GAAP" measures in its analysis of the Company's performance (including for purposes of determining the compensation of certain executive officers and other Company employees) and believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and with other financial institutions, as well as demonstrating the effects of significant gains and charges in the current period, in light of the disclosure practices employed by many other publicly-traded financial institutions. The Company believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. In several places net interest income is calculated on a fully tax-equivalent basis. Specifically included in interest income was tax-exempt interest income from certain investment securities and loans. An amount equal to the tax benefit derived from this tax-exempt income has been added back to the interest income total which, as adjusted, increased net interest income accordingly. Management believes the disclosure of tax-equivalent net interest income information improves the clarity of financial analysis, and is particularly useful to investors in understanding and evaluating the changes and trends in the Company's results of operations. Other financial institutions commonly present net interest income on a tax-equivalent basis. This adjustment is considered helpful in the comparison of one financial institution's net interest income to that of another institution, as each will have a different proportion of tax-exempt interest from its earning assets. Moreover, net interest income is a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average earning assets. For purposes of this measure as well, other financial institutions generally use tax-equivalent net interest income to provide a better basis of comparison from institution to institution. The Company follows these practices. The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements, which have been prepared in accordance with GAAP. A 21.0% tax rate was used in both 2025 and 2024. The Company presents its efficiency ratio using non-GAAP information which is most commonly used by financial institutions. The GAAP-based efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The non-GAAP efficiency ratio excludes securities losses and other-than-temporary impairment charges from non-interest expenses, excludes securities gains from non-interest income, and adds the tax-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio: The Company presents certain information based upon average tangible common equity instead of total average shareholders' equity. The difference between these two measures is the Company's intangible assets, specifically goodwill from prior acquisitions. Management, banking regulators and many stock analysts use the tangible common equity ratio and the tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. The following table provides a reconciliation of average tangible common equity to the Company's consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles: To provide period-to-period comparison of operating results prior to consideration of credit loss provision and income taxes, the non-GAAP measure of Pre-Tax, Pre-Provision Net Income is presented. The following table provides a reconciliation to Net Income: 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 and events to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission. Category: Earnings Source: The First Bancorp View source version on businesswire.com: https://www.businesswire.com/news/home/20260121567998/en/ Contacts The First Bancorp Richard M. Elder, EVP, Chief Financial Officer 207-563-3195 [email protected]