First Bancorp, Inc /ME/

Net income for the nine months ended September 30, 2025 was $24.2 million, up $4.5 million or 22.6% from the same period in 2024. Earnings per common share on a fully diluted basis were $2.16 for the nine months ended September 30, 2025, up $0.39 or 21.5% from the $1.78 posted for the same period in 2024. Dividends totaling $1.10 per share have been declared year-to-date, representing a payout to our shareholders of 50.3% of basic earnings per share for the period. For the quarter ended September 30, 2025, net income was $9.1 million, up $1.5 million or 20.0% from the same period in 2024. Earnings per common share on a fully diluted basis were $0.81 for the quarter ended September 30, 2025, up $0.13 or 19.3% from the $0.68 posted for the same period in 2024. On a PTPP basis, earnings for the nine months ended September 30, 2025 were $31.1 million, up $7.8 million, or 33.6% from the prior year.

Net interest income on a tax-equivalent basis was up $10.0 million or 20.6% in the nine months ended September 30, 2025 compared to the same period in 2024. The tax equivalent net interest margin for the nine months ended September 30, 2025, was 2.57%, up from 2.25% for the same period in 2024. The period-to-period change in net interest income and net interest margin is attributable to favorable changes on both sides of the balance sheet as an increase in tax equivalent yield on earning assets was coupled with decrease in the cost of total liabilities. For the quarter ended September 30, 2025, net interest income on a tax-equivalent basis increased $3.7 million or 21.4% compared to the same period in 2024, with the net interest margin at 2.70% compared to 2.32% for the same period in 2024.

Non-interest income for the nine months ended September 30, 2025 was $12.6 million, up $687,000 or 5.8%, from the nine months ended September 30, 2024. As compared to the prior year, service charges on deposit accounts were up $50,000, or 3.2%, and debit card revenue decreased$25,000, or 0.6%. Revenue at First National Wealth Management increased $305,000 or 8.3% over the same period and mortgage banking revenue increased $123,000 or 24.0%.

Non-interest expense for the nine months ended September 30, 2025 was $37.8 million, up $2.8 million or 8.0% from the nine months ended September 30, 2024. FDIC insurance premiums increased $331,000 from the same period in 2024, salaries and employee benefits increased 11.4% and other operating expense increased 2.0% over the same period.

Asset quality continues to be strong and stable. Non-performing assets stood at 0.30% of total assets as of September 30, 2025, up from 0.14% as of December 31, 2024 and up from 0.08% of total assets as of September 30, 2024. Total past-due loans remain low and were 0.69% of total loans as of September 30, 2025, up from 0.40% and up from 0.14% of total loans as of December 31, 2024 and September 30, 2024, respectively.

The provision for credit losses on loans for the first nine months of 2025 was $1.4 million, up from the $58,000 provisioned in the same period in 2024. Net charge-offs for the nine months ended September 30, 2025 were $1.2 million or 0.069% of average loans on an annualized basis, compared to net charge-offs of $89,000 or 0.005% as of the nine months ended September 30, 2024. The ACL for loans increased $207,000 between December 31, 2024 and September 30, 2025, and now stands at 1.05% of loans outstanding as of September 30, 2025, as compared to 1.06% at December 31, 2024 and 1.04% at September 30, 2024.

The Company's balance sheet continued to expand in the first nine months of 2025 as total assets increased $41.5 million or 1.3% year-to-date. The loan portfolio increased $57.6 million or 2.5% in the nine months ended September 30, 2025 and $91.3 million or 4.0% from a year ago. Loan growth in the first nine months of 2025 was centered in the commercial and residential portfolios. Commercial loans increased by $21.4 million during the period, led by increases in owner-occupied commercial real estate of $16.7 million, non-owner occupied commercial real estate of $10.6 million, commercial & industrial loans of $11.1 million and multifamily of $27.8 million, and partially offset by a decrease of$48.0 million in construction loan balances. Residential term loans increased by $19.8 million and home equity loans increased by $14.0 million in the first nine months of 2025. The investment portfolio has decreased $8.6 million year-to-date and decreased $26.1 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 have increased $12.3 million, or 0.5%, in the nine months ended September 30, 2025 to $2.74 billion. Low-cost deposits (Demand, NOW, Savings) have decreased $26.2 million year-to-date while money market balances have increased $81.8 million, and local CDs have increased $14.3 million. Wholesale CDs have decreased $57.6 million year-to-date while borrowings have increased by $6.7 million.

Remaining well capitalized is a top priority for The Company. The Company's total risk-based capital ratio was 13.56% as of September 30, 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 1.02% and return on average tangible common equity of 13.91% for the nine months ended September 30, 2025 compared to 0.87% and 12.19%, respectively, for the same period in 2024. The Company's PTPP return of average assets for the nine months ended September 30, 2025 was 1.30% compared to 1.03% in the prior year period. Our non-GAAP efficiency ratio continues to be an important component in the Company's overall performance and stood at 53.12% for the nine months ended September 30, 2025 compared to 57.88% for the same period in 2024, the change being attributable primarily to higher levels of net interest income.