Earnings release
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The First Bancorp Announces Third Quarter Results October 22, 2025 Strong Net Income Growth, Net Interest Margin Expansion, and Growth in Non-Maturity Deposits Highlight Third Quarter Performance DAMARISCOTTA, Maine--(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 September 30, 2025. Net income for the period was $9.1 million with fully diluted earnings per share of $0.81. The Company also reported unaudited results for the nine months ended September 30, 2025, with net income for the period of $24.2 million and fully diluted earnings per share of $2.16. Third Quarter Notable Items: Net Income of $9.1 million represents: growth of 20.0% as compared to Q3 2024; diluted EPS growth of 19.3% growth of 12.6% as compared to Q2 2025; diluted EPS growth of 12.5% Net Interest Margin expanded to 2.70% and is: an increase of 38 basis points from Q3 2024 an increase of 18 basis points from Q2 2025 Non-Maturity Deposit growth of $139.5 million Efficiency Ratio improved to 50.40% Tangible Book Value per share rose to $21.74, up 7.3% from Q3 2024 Quarterly shareholder dividend of $0.37 per share CEO COMMENTS "I am pleased to report strong results for the third quarter of 2025," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income of $9.1 million for the quarter is an increase of 20.0% from the third quarter of 2024, and through nine months, earnings have increased 22.6% from a year ago. Our Return on Average Assets for the period was 1.13% and stands at 1.02% year-to-date. "Earnings growth year-to-date has been driven by expansion of our net interest margin, the pace of which accelerated in the third quarter. Our margin for the third quarter improved to 2.70%, up 18 basis points in the period, attributable to earning asset yield enhancement in the loan portfolio, coupled with reduced funding costs. "Balance sheet activity was mostly focused on local deposit growth in the third quarter. We saw stronger than expected growth in non-maturity deposits, which were up nearly $140 million during the period. This growth allowed for replacement of higher cost wholesale time deposits and borrowings, a key contributor in lowering overall funding costs," continued Mr. McKim. "Overall asset quality remains favorable, while our capital and liquidity positions continue to be solid." Concluding, Mr. McKim shared, "We were particularly pleased to recently be recognized as one the Best Places to Work in Maine, an award which speaks to the special culture at The First Bancorp and how that collaborative culture continually helps us achieve our purpose for our customers." OPERATING RESULTS Q3 2025 v. Q3 2024 (prior year quarter) Net income was $9.1 million for the three months ended September 30, 2025, an increase of $1.5 million or 20.0% from the third quarter of 2024. Net interest income was $20.1 million for the three months ended September 30, 2025, an increase of $3.7 million or 22.3% from the third quarter of 2024. Net interest margin improved to 2.70% for the third quarter of 2025, up from 2.32% in the prior year quarter. The lift in margin was the result of a 15 basis point increase in the tax equivalent yield on earning assets coupled with a 27 basis point decrease in the cost of total liabilities. Earning assets averaged a yield of 5.43% for the three months ended September 30, 2025, while total liabilities carried an average cost of 3.21%.
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Total non-interest income was $4.5 million for the three months ended September 30, 2025, an increase of $353,000, or 8.6% from the third quarter of 2024 centered in Wealth Management revenue, and other operating income. Total non-interest expense for the three months ended September 30, 2025, was $12.8 million, an increase of $754,000, or 6.3%, from the third quarter of 2024. The period-to-period change is largely attributable to employee salaries and benefits, resulting from salary costs, lower deferred salaries, and normalization of incentive compensation accruals. The Company's efficiency ratio for the third quarter of 2025 was 50.40%, improved from 56.37% in the prior year quarter. OPERATING RESULTS Q3 2025 v. Q2 2025 (linked quarter) Net income was $9.1 million for the three months ended September 30, 2025, an increase of $1.0 million or 12.6% from the second quarter of 2025. Net interest income of $20.1 million for the three months ended September 30, 2025, was an increase of $1.6 million or 9.0% from the linked quarter. The net interest margin of 2.70% in the third quarter of 2025 was an improvement of 18 basis points driven by a 9 basis point increase in the tax equivalent yield on earning assets and a 7 basis point decrease in funding costs period-to-period. Total non-interest income of $4.5 million for the three months ended September 30, 2025, was up $346,000 from the linked quarter. The change is centered in a $117,000 increase in Debit Card income and a $233,000 lift in other operating income, principally loan-based derivative fees. Total non-interest expense for the three months ended September 30, 2025 was $12.8 million, an increase of $555,000, or 4.5%, from the linked quarter. The change is mostly attributable to employee salaries and benefits, which included seasonal hiring activity. LOANS, TOTAL ASSETS & FUNDING Total assets as of September 30, 2025, were $3.20 billion, down $1.0 million in the third quarter and up $55.9 million from a year ago. Earning assets were essentially flat, down $1.8 million during the quarter comprised primarily of an increase in loans of $4.5 million and a net reduction of overnight funds sold and investments of $6.1 million. Over the past year, earning assets have increased by $58.9 million, centered in loan growth of $91.3 million and net reduction of overnight funds sold and investments of $36.6 million. Loan balances grew at a modest pace in the third 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 $7.5 million and $2.7 million, respectively in the third quarter, while municipal loans grew $5.7 million. Commercial real estate balances decreased by $7.5 million, and commercial and industrial balances fell $4.5 million. Total deposits at September 30, 2025 were $2.74 billion, up $32.2 million during the period. Non-maturity deposits exceeded seasonal growth expectations, increasing $139.5 million in the third quarter. This lift allowed for a reduction in wholesale time deposits and borrowings, with time deposits down $107.3 million and borrowed funds, principally short term FHLB advances, down $43.2 million during the period. Uninsured deposits as of September 30, 2025, were estimated at 19.7% of total deposits, and 68% of uninsured deposits were fully collateralized. Available day-one liquidity was $702 million, sufficient to cover 130% of estimated uninsured deposits. ASSET QUALITY Overall asset quality remains favorable. As of September 30, 2025, the ratio of non-performing assets to total assets was 0.30%, compared to 0.19% as of June 30, 2025 and 0.08% as of September 30, 2024. The ratio of non-performing loans to total loans was 0.40% as of September 30, 2025, compared to 0.25% as of June 30, 2025 and 0.11% as of September 30, 2024. Loans past due thirty days or more were 0.69% of total loans as of September 30, 2025. The Allowance for Credit Losses ("ACL") on loans stood at 1.05% of total loans as of September 30, 2025, in-line with both the linked quarter and prior year quarter. A provision for credit losses of $700,000 was recorded in the third quarter of 2025, focused in a $690,000 provision to the allowance for credit losses on loans. Net loan charge-offs in the third quarter totaled $441,000 resulting in an annualized year-to-date net charge-off rate of 0.07% of total loans. CAPITAL The Company’s regulatory capital position was strong as of September 30, 2025. The Leverage Capital ratio increased to an estimated 8.66% as of September 30, 2025, as compared to the 8.48% and 8.53% reported as of June 30, 2025, and as of September 30, 2024, respectively. The estimated Total Risk-Based Capital ratio was 13.60% as of September 30, 2025, as
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compared to the 13.31% and 13.11% reported as of June 30, 2025, and as of September 30, 2024, respectively. The Company's tangible book value per share was $21.74 as of September 30, 2025, up from $20.94 as of June 30, 2025 and up from $20.27 as of September 30, 2024. An improved unrealized loss position on available-for-sale securities contributed to the Tangible Common Equity ratio increasing to 7.70% as of September 30, 2025, up from 7.41% as of June 30, 2025 and 7.26% as of September 30, 2024. DIVIDEND On September 25, 2025, the Company's Board of Directors declared a third quarter dividend of $0.37 per share. The dividend was paid on October 16, 2025, to shareholders of record as of October 6, 2025. 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. The First Bancorp Quarterly Selected Financial Data (Unaudited) At or for the quarters ended Dollars in thousands, except for per share amounts 9/30/20256/30/20253/31/202512/31/20249/30/2024 Financial Data Total Assets $ 3,198,478 $ 3,199,510 $ 3,187,372 $ 3,157,010 $ 3,142,563 Total Loans 2,398,510 2,394,007 2,383,150 2,340,940 2,307,253 Total Investment Securities 642,961 653,855 656,844 651,587 669,076 Total Deposits 2,737,550 2,705,337 2,711,335 2,725,251 2,702,718 Total Shareholders’ Equity 274,566 265,492 259,681 252,493 256,783 Net Income 9,082 8,063 7,077 7,282 7,571 Per Common Share Data Basic Earnings per Share $ 0.82 $ 0.73 $ 0.64 $ 0.66 $ 0.69 Diluted Earnings per Share 0.81 0.72 0.63 0.65 0.68 Cash Dividends Declared 0.37 0.37 0.36 0.36 0.36 Book Value per Common Share 24.48 23.69 23.19 22.63 23.03 Tangible Book Value per Common Share 21.74 20.94 20.44 19.87 20.27 Market Value 26.26 25.41 24.72 27.35 26.32 Financial Ratios Return on Average Equity 13.33% 12.31% 11.13% 11.27% 11.86% Return on Average Tangible Common Equity 15.04% 13.95% 12.64% 12.81% 13.50% Return on Average Assets 1.13% 1.01% 0.91% 0.92% 0.98% Pre-tax, pre-provision Return on Assets 1.46% 1.30% 1.15% 1.24% 1.10% Net Interest Margin Tax-Equivalent 2.70% 2.52% 2.48% 2.42% 2.32% Dividend Payout Ratio 45.18% 50.89% 56.34% 54.71% 52.55% GAAP Efficiency Ratio 51.99% 54.13% 58.91% 55.23% 58.47% Efficiency Ratio (non-GAAP) 50.40% 52.39% 56.93% 53.39% 56.37% Asset Quality Ratios Allowance for Credit Losses/Total Loans 1.05% 1.04% 1.05% 1.06% 1.04% Allowance to Non-Performing Loans 261.36% 411.13% 414.88% 585.41% 961.00% Non-Performing Loans to Total Loans 0.40% 0.25% 0.25% 0.18% 0.11% Non-Performing Assets to Total Assets 0.30% 0.19% 0.19% 0.14% 0.08% Capital Ratios Leverage Capital Ratio 8.66% 8.48% 8.40% 8.47% 8.53% Tier 1 Capital Ratio 12.43% 12.15% 11.96% 12.04% 11.97% Total Capital Ratio 13.60% 13.31% 13.12% 13.22% 13.11% (1) (1) (1) (1) (1) (2) (2) (2)
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Tangible Common Equity Ratio 7.70% 7.41% 7.25% 7.09% 7.26% Average Equity to Average Assets 8.45% 8.23% 8.15% 8.17% 8.24% Average Tangible Equity to Average Assets 7.49% 7.27% 7.17% 7.19% 7.24% Annualized using a 365-day basis for 2025 and a 366-day basis for 2024. Estimated for current period. The First Bancorp Consolidated Balance Sheets (Unaudited) In thousands of dollars, except per share data9/30/20256/30/20253/31/202512/31/20249/30/2024 Assets Cash and due from banks $ 31,606 $ 27,360 $ 26,432 $ 27,636 $ 35,136 Interest-bearing deposits in other banks 7,225 3,253 2,938 22,100 17,199 Securities available-for-sale 273,493 278,248 280,764 274,680 285,021 Securities held-to-maturity 362,552 367,873 368,571 369,704 377,635 Restricted equity securities, at cost 6,916 7,734 7,509 7,203 6,420 Loans held for sale 333 — — — — Loans 2,398,510 2,394,007 2,383,150 2,340,940 2,307,253 Less allowance for credit losses 25,078 24,829 25,114 24,871 23,999 Net loans 2,373,432 2,369,178 2,358,036 2,316,069 2,283,254 Accrued interest receivable 16,256 19,386 17,923 13,976 14,600 Premises and equipment 27,919 28,198 28,626 27,855 27,449 Other real estate owned — — — 173 173 Goodwill 30,646 30,646 30,646 30,646 30,646 Other assets 68,100 67,634 65,927 66,968 65,030 Total assets $ 3,198,478 $ 3,199,510 $ 3,187,372 $ 3,157,010 $ 3,142,563 Liabilities Demand deposits $ 313,729 $ 291,150 $ 267,876 $ 292,255 $ 312,956 NOW deposits 638,090 590,536 613,245 676,107 651,242 Money market deposits 458,398 388,214 398,966 376,627 344,102 Savings deposits 255,806 256,584 261,732 265,451 269,092 Certificates of deposit 688,001 774,521 754,558 702,632 693,948 Certificates $100,000 to $250,000 210,741 231,926 241,536 225,106 251,910 Certificates $250,000 and over 172,785 172,406 173,422 187,073 179,468 Total deposits 2,737,550 2,705,337 2,711,335 2,725,251 2,702,718 Borrowed funds 152,968 196,170 185,444 146,278 151,027 Other liabilities 33,394 32,511 30,912 32,988 32,035 Total Liabilities 2,923,912 2,934,018 2,927,691 2,904,517 2,885,780 Shareholders' equity Common stock 112 112 112 112 111 Additional paid-in capital 73,276 72,795 72,355 71,832 71,389 Retained earnings 234,435 229,511 225,592 222,823 219,559 Net unrealized loss on securities available-for- sale (33,523) (37,237) (38,702) (42,671) (34,394) Net unrealized loss on transferred securities from available-for-sale to held-to-maturity (40) (60) (45) (47) (49) Net unrealized gain (loss) on cash flow hedging derivative instruments 19 84 82 157 (136) Net unrealized gain on postretirement costs 287 287 287 287 303 Total shareholders' equity 274,566 265,492 259,681 252,493 256,783 Total liabilities & shareholders' equity$ 3,198,478 $ 3,199,510 $ 3,187,372 $ 3,157,010 $ 3,142,563 Common Stock Number of shares authorized 18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 Number of shares issued and outstanding 11,214,455 11,205,861 11,196,881 11,155,528 11,148,066 Book value per common share $ 24.48 $ 23.69 $ 23.19 $ 22.63 $ 23.03 (1) (2)
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Tangible book value per common share$ 21.74 $ 20.94 $ 20.44 $ 19.87 $ 20.27 The First Bancorp Quarterly Consolidated Statements of Income (Unaudited) For the Quarters Ended In thousands of dollars, except per share data9/30/20256/30/20253/31/202512/31/20249/30/2024 Interest income Interest and fees on loans $ 36,197 $ 35,014$ 33,924 $ 33,899 $ 33,498 Interest on deposits with other banks 108 51 56 360 56 Interest and dividends on investments 4,700 4,760 4,729 4,740 4,733 Total interest income 41,005 39,825 38,709 38,999 38,287 Interest expense Interest on deposits 19,380 19,725 19,269 20,300 20,118 Interest on borrowed funds 1,567 1,691 1,641 1,146 1,767 Total interest expense 20,947 21,416 20,910 21,446 21,885 Net interest income 20,058 18,409 17,799 17,553 16,402 Credit loss expense (reduction) - loans 690 348 396 1,246 (580) Credit loss expense (reduction) - debt securities held to maturity (12) 1 1 (28) 76 Credit loss expense (reduction) - off-balance sheet credit exposures 22 137 (5) (54) (134) Total credit loss expense (reduction) 700 486 392 1,164 (638) Net interest income after provision for credit losses 19,358 17,923 17,407 16,389 17,040 Non-interest income Investment management and fiduciary income 1,341 1,336 1,317 1,274 1,232 Service charges on deposit accounts 532 539 531 496 511 Mortgage origination and servicing income 219 221 195 282 193 Debit card income 1,403 1,286 1,170 1,572 1,365 Other operating income 980 747 789 812 821 Total non-interest income 4,475 4,129 4,002 4,436 4,122 Non-interest expense Salaries and employee benefits 6,674 6,276 6,850 6,462 6,126 Occupancy expense 814 876 877 841 823 Furniture and equipment expense 1,491 1,438 1,462 1,440 1,416 FDIC insurance premiums 698 701 694 629 636 Amortization of identified intangibles 7 6 7 6 7 Other operating expense 3,070 2,902 2,954 2,767 2,992 Total non-interest expense 12,754 12,199 12,844 12,145 12,000 Income before income taxes 11,079 9,853 8,565 8,680 9,162 Applicable income taxes 1,997 1,790 1,488 1,398 1,591 Net Income $ 9,082 $ 8,063$ 7,077 $ 7,282 $ 7,571 Basic earnings per share $ 0.82 $ 0.73$ 0.64 $ 0.66 $ 0.69 Diluted earnings per share $ 0.81 $ 0.72$ 0.63 $ 0.65 $ 0.68 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
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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. For the nine months endedFor the quarters ended In thousands of dollars 9/30/20259/30/20249/30/20256/30/20259/30/2024 Net interest income as presented$ 56,266$ 46,357$ 20,058$ 18,409$ 16,402 Effect of tax-exempt income 2,136 2,072 727$ 698 717 Net interest income, tax equivalent$ 58,402$ 48,429$ 20,785$ 19,107$ 17,119 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: For the nine months endedFor the quarters ended In thousands of dollars 9/30/20259/30/20249/30/20256/30/20259/30/2024 Non-interest expense, as presented$ 37,797 $ 35,011 $ 12,754 $ 12,199 $ 12,000 Net interest income, as presented 56,266 46,357 20,058 18,409 16,402 Effect of tax-exempt interest income 2,136 2,072 727 698 717 Non-interest income, as presented 12,606 11,919 4,475 4,129 4,122 Effect of non-interest tax-exempt income 144 136 48 48 45 Adjusted net interest income plus non-interest income $ 71,152 $ 60,484 $ 25,308 $ 23,284 $ 21,286 Non-GAAP efficiency ratio 53.12% 57.88% 50.40% 52.39% 56.37% GAAP efficiency ratio 54.88% 60.08% 51.99% 54.13% 58.47% 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: For the nine months endedFor the quarters ended In thousands of dollars 9/30/20259/30/20249/30/20256/30/20259/30/2024
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Average shareholders' equity as presented$ 263,639 $ 247,463 $ 270,306 $ 260,248 $ 253,911 Less intangible assets (30,794) (30,820) (30,801) (30,798) (30,827) Tangible average shareholders' equity$ 232,845 $ 216,643 $ 239,505 $ 229,450 $ 223,084 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: For the nine months endedFor the quarters ended In thousands of dollars 9/30/20259/30/20249/30/20256/30/20259/30/2024 Net Income, as presented $ 24,222$ 19,763 $ 9,082$ 8,063$ 7,571 Add: credit loss expense (reduction) 1,578 (639) 700 486 (638) Add: income taxes 5,275 4,141 1,997 1,790 1,591 Pre-Tax, pre-provision net income$ 31,075$ 23,265 $ 11,779$ 10,339$ 8,524 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.