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8-K primary document
FNLC · Current Report (Form 8-K) · Filed April 22, 2026

First Bancorp Inc — 8-K exhibit

a26q1earningsex991.htm
First Bancorp Inc on Boardroom Alpha
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Exhibit 99.1
The First Bancorp Announces First Quarter Results
Net Interest Margin Expansion and Improved Efficiency
Drive a 27% Increase in First Quarter Earnings
DAMARISCOTTA, ME, 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
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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.
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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
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$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.

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The First Bancorp
Quarterly Selected Financial Data (Unaudited)
At or for the quarters ended
Dollars in thousands, except for per share amounts3/31/202612/31/20259/30/20256/30/20253/31/2025
Financial Data
Total Assets$3,200,763 $3,166,303 $3,198,478 $3,199,510 $3,187,372 
Total Loans2,405,149 2,394,109 2,398,510 2,394,007 2,383,150 
Total Investment Securities619,159 628,683 642,961 653,855 656,844 
Total Deposits2,664,643 2,664,752 2,737,550 2,705,337 2,711,335 
Total Shareholders’ Equity286,784 283,143 274,566 265,492 259,681 
Net Income8,993 10,172 9,082 8,063 7,077 
Per Common Share Data
Basic Earnings per Share$0.81 $0.92 $0.82 $0.73 $0.64 
Diluted Earnings per Share0.80 0.91 0.81 0.72 0.63 
Cash Dividends Declared0.37 0.37 0.37 0.37 0.36 
Book Value per Common Share25.44 25.23 24.48 23.69 23.19 
Tangible Book Value per Common Share22.71 22.49 21.74 20.94 20.44 
Market Value28.03 26.44 26.26 25.41 24.72 
Financial Ratios
Return on Average Equity(1)
12.64 %14.35 %13.33 %12.31 %11.13 %
Return on Average Tangible Common Equity(1)
14.15 %16.12 %15.04 %13.95 %12.64 %
Return on Average Assets(1)
1.15 %1.26 %1.13 %1.01 %0.91 %
Pre-tax, pre-provision Return on Assets(1)
1.47 %1.58 %1.46 %1.30 %1.15 %
Net Interest Margin Tax-Equivalent(1)
2.86 %2.83 %2.70 %2.52 %2.48 %
Dividend Payout Ratio45.74 %40.39 %45.18 %50.89 %56.34 %
GAAP Efficiency Ratio54.16 %50.81 %51.99 %54.13 %58.91 %
Efficiency Ratio (non-GAAP)52.64 %49.33 %50.40 %52.39 %56.93 %
Asset Quality Ratios
Allowance for Credit Losses/Total Loans1.05 %1.06 %1.05 %1.04 %1.05 %
Allowance to Non-Performing Loans155.73 %196.95 %261.36 %411.13 %414.88 %
Non-Performing Loans to Total Loans0.67 %0.54 %0.40 %0.25 %0.25 %
Non-Performing Assets to Total Assets0.51 %0.41 %0.30 %0.19 %0.19 %
Capital Ratios
Leverage Capital Ratio(2)
9.09 %8.84 %8.63 %8.48 %8.40 %
Tier 1 Capital Ratio(2)
12.89 %12.84 %12.39 %12.15 %11.96 %
Total Capital Ratio(2)
14.04 %14.02 %13.56 %13.31 %13.12 %
Tangible Common Equity Ratio8.08 %8.05 %7.70 %7.41 %7.25 %
Average Equity to Average Assets9.10 %8.78 %8.45 %8.23 %8.15 %
Average Tangible Equity to Average Assets8.13 %7.82 %7.49 %7.27 %7.17 %
(1)Annualized using a 365-day basis for 2026 and 2025.
(2)Estimated for current period.

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The First Bancorp
Consolidated Balance Sheets (Unaudited)
In thousands of dollars, except per share data3/31/202612/31/20259/30/20256/30/20253/31/2025
Assets
Cash and due from banks$23,607 $27,779 $31,606 $27,360 $26,432 
Interest-bearing deposits in other banks30,075 4,124 7,225 3,253 2,938 
Securities available-for-sale256,788 264,480 273,493 278,248 280,764 
Securities held-to-maturity354,057 355,928 362,552 367,873 368,571 
Restricted equity securities, at cost8,314 8,275 6,916 7,734 7,509 
Loans held for sale— — 333 — — 
Loans2,405,149 2,394,109 2,398,510 2,394,007 2,383,150 
Less allowance for credit losses25,209 25,365 25,078 24,829 25,114 
Net loans2,379,940 2,368,744 2,373,432 2,369,178 2,358,036 
Accrued interest receivable19,247 14,185 16,256 19,386 17,923 
Premises and equipment28,720 28,767 27,919 28,198 28,626 
Goodwill30,646 30,646 30,646 30,646 30,646 
Other assets69,369 63,375 68,100 67,634 65,927 
Total assets$3,200,763 $3,166,303 $3,198,478 $3,199,510 $3,187,372 
Liabilities
Demand deposits$268,100 $279,912 $313,729 $291,150 $267,876 
NOW deposits660,511 689,083 638,090 590,536 613,245 
Money market deposits453,210 469,689 458,398 388,214 398,966 
Savings deposits247,084 248,805 255,806 256,584 261,732 
Certificates of deposit699,635 638,931 688,001 774,521 754,558 
Certificates $100,000 to $250,000184,486 190,676 210,741 231,926 241,536 
Certificates $250,000 and over151,617 147,656 172,785 172,406 173,422 
Total deposits2,664,643 2,664,752 2,737,550 2,705,337 2,711,335 
Borrowed funds195,796 187,821 152,968 196,170 185,444 
Other liabilities53,540 30,587 33,394 32,511 30,912 
Total Liabilities2,913,979 2,883,160 2,923,912 2,934,018 2,927,691 
Shareholders' equity
Common stock113 112 112 112 112 
Additional paid-in capital74,255 73,714 73,276 72,795 72,355 
Retained earnings245,001 240,456 234,435 229,511 225,592 
Net unrealized loss on securities available-for-sale(32,790)(31,341)(33,523)(37,237)(38,702)
Net unrealized loss on transferred securities from available-for-sale to held-to-maturity(35)(38)(40)(60)(45)
Net unrealized gain on cash flow hedging derivative instruments— — 19 84 82 
Net unrealized gain on postretirement costs240 240 287 287 287 
Total shareholders' equity286,784 283,143 274,566 265,492 259,681 
Total liabilities & shareholders' equity$3,200,763 $3,166,303 $3,198,478 $3,199,510 $3,187,372 
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Common Stock
Number of shares authorized18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 
Number of shares issued and outstanding11,271,014 11,222,363 11,214,455 11,205,861 11,196,881 
Book value per common share$25.44 $25.23 $24.48 $23.69 $23.19 
Tangible book value per common share$22.71 $22.49 $21.74 $20.94 $20.44 
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The First Bancorp
Quarterly Consolidated Statements of Income (Unaudited)
For the Quarters Ended
In thousands of dollars, except per share data3/31/202612/31/20259/30/20256/30/20253/31/2025
Interest income
Interest and fees on loans$34,725 $36,025 $36,197 $35,014 $33,924 
Interest on deposits with other banks30 185 108 51 56 
Interest and dividends on investments4,384 4,522 4,700 4,760 4,729 
     Total interest income39,139 40,732 41,005 39,825 38,709 
Interest expense
Interest on deposits16,702 18,323 19,380 19,725 19,269 
Interest on borrowed funds1,748 1,298 1,567 1,691 1,641 
     Total interest expense18,450 19,621 20,947 21,416 20,910 
Net interest income20,689 21,111 20,058 18,409 17,799 
Credit loss expense - loans650 615 690 348 396 
Credit loss expense (reduction) - debt securities held to maturity(1)(40)(12)1 1 
Credit loss expense (reduction) - off-balance sheet credit exposures(29)(303)22 137 (5)
     Total credit loss expense 620 272 700 486 392 
Net interest income after provision for credit losses20,069 20,839 19,358 17,923 17,407 
Non-interest income
Investment management and fiduciary income1,486 1,433 1,341 1,336 1,317 
Service charges on deposit accounts560 559 532 539 531 
Net securities gains 12 — — — — 
Mortgage origination and servicing income176 211 219 221 195 
Debit card income1,200 1,596 1,403 1,286 1,170 
Other operating income1,017 935 980 747 789 
     Total non-interest income4,451 4,734 4,475 4,129 4,002 
Non-interest expense
Salaries and employee benefits7,330 7,198 6,674 6,276 6,850 
Occupancy expense956 827 814 876 877 
Furniture and equipment expense1,543 1,487 1,491 1,438 1,462 
FDIC insurance premiums570 629 698 701 694 
Amortization of identified intangibles7 6 7 6 7 
Other operating expense3,210 2,984 3,070 2,902 2,954 
     Total non-interest expense13,616 13,131 12,754 12,199 12,844 
Income before income taxes10,904 12,442 11,079 9,853 8,565 
Applicable income taxes1,911 2,270 1,997 1,790 1,488 
Net Income$8,993 $10,172 $9,082 $8,063 $7,077 
Basic earnings per share$0.81 $0.92 $0.82 $0.73 $0.64 
Diluted earnings per share$0.80 $0.91 $0.81 $0.72 $0.63 

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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.
 For the quarters ended
In thousands of dollars3/31/202612/31/20253/31/2025
Net interest income as presented$20,689 $21,111 $17,799 
Effect of tax-exempt income663 701 711 
Net interest income, tax equivalent$21,352 $21,812 $18,510 
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-
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equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio:
 For the quarters ended
In thousands of dollars3/31/202612/31/20253/31/2025
Non-interest expense, as presented$13,616 $13,131 $12,844 
Net interest income, as presented20,689 21,111 17,799 
Effect of tax-exempt interest income663 701 711 
Non-interest income, as presented4,451 4,734 4,002 
Effect of non-interest tax-exempt income77 70 48 
Net securities gains(12)— — 
Adjusted net interest income plus non-interest income$25,868 $26,616 $22,560 
Non-GAAP efficiency ratio52.64 %49.33 %56.93 %
GAAP efficiency ratio54.16 %50.81 %58.91 %
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 quarters ended
In thousands of dollars3/31/202612/31/20253/31/2025
Average shareholders' equity as presented$288,560 $268,059 $257,807 
Less intangible assets(30,775)(30,791)(30,801)
Tangible average shareholders' equity$257,785 $237,268 $227,006 
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 quarters ended
In thousands of dollars3/31/202612/31/20253/31/2025
Net Income, as presented$8,993 $10,172 $7,077 
Add: credit loss expense620 272 392 
Add: income taxes1,911 2,270 1,488 
Pre-Tax, pre-provision net income$11,524 $12,714 $8,957 







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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

The First Bancorp
Richard M. Elder, EVP, Chief Financial Officer
207-563-3195
rick.elder@thefirst.com

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