First Bancorp, Inc /ME/

Net income for the three months ended March 31, 2025 was $7.1 million, up $1.1 million or 17.5% from the same period in 2024. Earnings per common share on a fully diluted basis were $0.63 for the three months ended March 31, 2025, up $0.09 or 17.0% from the $0.54 posted for the same period in 2024. Dividends totaling $0.36 per share have been declared year-to-date, representing a payout to our shareholders of 56.3% of basic earnings per share for the period.

Net interest income on a tax-equivalent basis was up $3.0 million or 19.0% in the three months ended March 31, 2025 compared to the same period in 2024. The tax equivalent net interest margin for the three months ended March 31, 2025, was 2.48%, up from 2.22% for the same period in 2024. The period-to-period change in net interest income and net interest margin is primarily attributable to an increase in the tax equivalent yield on earning assets coupled with decrease in the cost of total liabilities.

Non-interest income for the three months ended March 31, 2025 was $4.0 million, up $362,000 or 9.9%, from the three months ended March 31, 2024. As compared to the prior year, service charges on deposit accounts were up $32,000, or 6.4%, and debit card revenue decreased $16,000, or 1.3%. Revenue at First National Wealth Management increased $129,000 or 10.9% over the same period and mortgage banking revenue increased $65,000 or 50.0%.

Non-interest expense for the three months ended March 31, 2025 was $12.8 million, up $1.1 million or 9.2% from the three months ended March 31, 2024. FDIC insurance premiums increased $130,000 from the same period in 2024, salaries and employee benefits increased 13.1% and other operating expense increased 2.6% over the same period.

Asset quality continues to be strong and stable. Non-performing assets stood at 0.19% of total assets as of March 31, 2025, up slightly from 0.14% of total assets as of December 31, 2024 and up from 0.09% of total assets as of March 31, 2024. Total past-due loans remain low and were 0.33% of total loans as of March 31, 2025, down from 0.40% and up from 0.09% of total loans as of December 31, 2024 and March 31, 2024, respectively.

The provision for credit losses on loans for the first three months of 2025 was $396,000, up from the $99,000 provisioned in the same period in 2024. Net charge-offs for the three months ended March 31, 2025 were $153,000 or 0.026% of average loans on an annualized basis, compared to net recoveries of $78,000 or 0.015% as of the three months ended March 31, 2024. The ACL for loans increased $243,000 between December 31, 2024 and March 31, 2025, and now stands at 1.05% of loans outstanding as of March 31, 2025, as compared to 1.06% at December 31, 2024 and 1.11% at March 31, 2024.

The Company's balance sheet continued to expand in the first three months of 2025 as total assets increased $30.4 million or 1.0% year-to-date. The loan portfolio increased $42.2 million or 1.8% in the three months ended March 31, 2025 and $209.4 million or 9.6% from a year ago. Loan growth in the first three months of 2025 was centered in the commercial and residential portfolios. Commercial loans increased by $30.9 million during the period, led by increases in owner-occupied commercial real estate of $11.9 million, non-owner occupied commercial real estate of $9.6 million, commercial & industrial loans of $14.0 million and multifamily of $22.3 million. Residential term and home equity loans each increased by $8.5 million in the first three months of 2025. The investment portfolio increased $5.3 million year-to-date and decreased $3.0 million from a year ago based upon cash flow of amortizing securities, limited reinvestment or new purchases, and changes in the carrying value of AFS securities.

On the liability side of the balance sheet, total deposits decreased $13.9 million, or 0.5%, year-to-date to $2.71 billion. Low-cost deposits (Demand, NOW, Savings) followed typical seasonal patterns and decreased $91.0 million in the period, money market balances increased $22.3 million, and local CDs decreased $5.5 million, year-to-date. To balance this activity and to support earning asset growth, wholesale CDs have increased $60.2 year-to-date and borrowings have increased by $39.2 million.

Remaining well capitalized is a top priority for The Company. The Company's total risk-based capital ratio was 13.12% as of March 31, 2025, solidly above the well-capitalized threshold of 10.0% set by the FDIC, the FRBB, and the OCC.

Among the Company's operating ratios, the return on average assets was 0.91% and return on average tangible common equity of 12.64% for the three months ended March 31, 2025 compared to 0.82% and 11.36%, respectively, for the same period in 2024. Our non-GAAP efficiency ratio continues to be an important component in the Company's overall performance and stood at 56.93% for the three months ended March 31, 2025 compared to 61.15% for the same period in 2024, the change being attributable primarily to higher levels of net interest income.