First Bancorp : Quarter 2026 Shareholder Letter

Published: 2026-05-08 12:33:11 ET FNLC

Published on 05/08/2026 at 12:33 pm EDT

April 29, 2026

Dear First Bancorp Shareholders:

II am pleased to report continued year-over-year quarterly earnings growth to kick off 2026. 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.

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.

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.

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 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.

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.

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.

Best always,

Tony C. McKim

President & Chief Executive Officer

First Quarter 2026 Financial Results

In thousands of dollars, except per share data

3/31/2026

12/31/2025

3/31/2025

Assets

Cash and due from banks

$23,607

$27,779

$26,432

Interest-bearing deposits in other banks

30,075

4,124

2,938

Securities available for sale

256,788

264,480

280,764

Securities to be held to maturity

354,057

355,928

368,571

Restricted equity securities, at cost

8,314

8,275

7,509

Loans held for sale

Loans

2,405,149

2,394,109

2,383,150

Less allowance for loan losses

25,209

25,365

25,114

Net loans

2,379,940

2,368,744

2,358,036

Accrued interest receivable

19,247

14,185

17,923

Premises and equipment

28,720

28,767

28,626

Other real estate owned

Goodwill

30,646

Other assets

69,369

63,375

65,927

Total assets

$3,200,763

$3,166,303

$3,187,372

Liabilities

Demand deposits

268,100

279,912

267,876

NOW deposits

660,511

689,083

613,245

Money market deposits

453,210

469,689

398,966

Savings deposits

247,084

248,805

261,732

Certificates of deposit

1,035,738

977,263

1,169,516

Total deposits

2,664,643

2,664,752

2,711,335

Borrowed funds

195,796

187,821

185,444

Other liabilities

53,540

30,587

30,912

Total Liabilities

$2,913,979

$2,883,160

$2,927,691

Shareholders' equity

Common stock

113

112

Additional paid-in capital

74,255

73,714

72,355

Retained earnings

245,001

240,456

225,592

Net unrealized loss on securities available-for-sale

(32,790)

(31,341)

(38,702)

Net unrealized loss on transferred securities

(35)

(38)

(45)

Net unrealized gain on cash flow hedging derivatives

Net unrealized gain on postretirement benefit costs

240

287

Total shareholders' equity

286,784

283,143

259,681

Total liabilities & shareholders' equity

$3,200,763

$3,166,303

$3,187,372

Common Stock

Number of shares authorized

18,000,000

Number of shares issued and outstanding

11,271,014

11,222,363

11,196,881

Tangible book value per common share

$22.71

$22.49

$20.44

Leverage capital ratio

9.09%

8.84%

8.40%

Total risk-based capital ratio

14.05%

14.02%

13.12%

For the quarters ended

In thousands of dollars, except per share data 3/31/2026 3/31/2025

Interest and fees on loans

34,725

33,924

Interest on deposits with other banks

Interest and dividends on investments

4,384

4,729

Total interest income

39,139

38,709

Interest expense

Interest on deposits

16,702

19,269

Interest on borrowed funds

1,748

1,641

Total interest expense

18,450

20,910

Net interest income

20,689

17,799

Provision for credit losses

620

392

Net interest income after provision for credit losses

20,069

17,407

Non-interest income

Investment management and fiduciary income

1,486

1,317

Service charges on deposit accounts

560

531

Net securities gains

Mortgage origination and servicing income

176

195

Debit Card Income

1,200

1,170

Other operating income

1,017

789

Total non-interest income

4,451

4,002

Non-interest expense

Salaries and employee benefits

7,330

6,850

Occupancy expense

956

877

Furniture and equipment expense

1,543

1,462

FDIC insurance premiums

570

694

Acquisition Related Expenses

Amortization of identified intangibles

Other operating expense

3,210

2,954

Total non-interest expense

13,616

12,844

Income before income taxes

10,904

8,565

Applicable income taxes

1,911

1,488

Net income

$8,993

$7,077

Basic earnings per common share

$0.81

$0.64

Diluted earnings per common share

$0.80

$0.63

Net unrealized gain (loss) on securities available for sale

(1,449)

3,969

Net unrealized gain on transferred securities

Net unrealized gain (loss) on hedging derivatives

(75)

Unrecognized transition obligation for postretirement

Other comprehensive income gain (loss)

(1,446)

3,896

Comprehensive income gain

$7,547

$10,973

Financial Ratios

Return on average tangible common equity

14.15%

12.64%

Net interest margin, tax equivalent

2.86%

2.48%

Interest income

Board of Directors Cornelius J. Russell Chair of the Board Robert B. Gregory Ingrid H.W. Kachmar Renee W. Kelly

Tony C. McKim Stuart G. Smith Kimberly Swan

F. Stephen Ward

Tony C. McKim

President & Chief Executive Officer

Richard M. Elder

Executive Vice President & Chief Financial Officer

Christopher J. Austin

Executive Vice President & Clerk

P.O. Box 940, Damariscotta, Maine 04543

207.563.3195

FNLC

Disclaimer

The First Bancorp Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 16:32 UTC.