The First Bancorp Inc.

10/22/2025 | Press release | Distributed by Public on 10/23/2025 06:45

Third Quarter 2025 Press Release

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%.

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 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 https://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

9/30/2025

6/30/2025

3/31/2025

12/31/2024

9/30/2024

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(1)

13.33

%

12.31

%

11.13

%

11.27

%

11.86

%

Return on Average Tangible Common Equity(1)

15.04

%

13.95

%

12.64

%

12.81

%

13.50

%

Return on Average Assets(1)

1.13

%

1.01

%

0.91

%

0.92

%

0.98

%

Pre-tax, pre-provision Return on Assets(1)

1.46

%

1.30

%

1.15

%

1.24

%

1.10

%

Net Interest Margin Tax-Equivalent(1)

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(2)

8.66

%

8.48

%

8.40

%

8.47

%

8.53

%

Tier 1 Capital Ratio(2)

12.43

%

12.15

%

11.96

%

12.04

%

11.97

%

Total Capital Ratio(2)

13.60

%

13.31

%

13.12

%

13.22

%

13.11

%

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

%

(1)Annualized using a 365-day basis for 2025 and a 366-day basis for 2024.

(2)Estimated for current period.

The First Bancorp

Consolidated Balance Sheets (Unaudited)

In thousands of dollars, except per share data

9/30/2025

6/30/2025

3/31/2025

12/31/2024

9/30/2024

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

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 data

9/30/2025

6/30/2025

3/31/2025

12/31/2024

9/30/2024

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 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 ended

For the quarters ended

In thousands of dollars

9/30/2025

9/30/2024

9/30/2025

6/30/2025

9/30/2024

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 ended

For the quarters ended

In thousands of dollars

9/30/2025

9/30/2024

9/30/2025

6/30/2025

9/30/2024

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 ended

For the quarters ended

In thousands of dollars

9/30/2025

9/30/2024

9/30/2025

6/30/2025

9/30/2024

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 ended

For the quarters ended

In thousands of dollars

9/30/2025

9/30/2024

9/30/2025

6/30/2025

9/30/2024

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.

Category: Earnings
Source: The First Bancorp

The First Bancorp Richard M. Elder, EVP, Chief Financial Officer 207-563-3195 [email protected]

Source: The First Bancorp
The First Bancorp Inc. published this content on October 22, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 23, 2025 at 12:45 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]