First Bancorp, Inc /ME/

Net income for the three months ended March 31, 2026 was $9.0 million, up $1.9 million or 27.1% from the same period in 2025. Earnings per common share on a fully diluted basis were $0.80 for the three months ended March 31, 2026, up $0.17 or 26.8% from the $0.63 posted for the same period in 2025. Dividends totaling $0.37 per share have been declared year-to-date, representing a payout to our shareholders of 45.7% of basic earnings per share for the period. On a PTPP basis, earnings for the three months ended March 31, 2026 were $11.5 million, up $2.6 million, or 28.7% from the prior year.

Net interest income on a tax-equivalent basis was up $2.8 million or 15.4% in the three months ended March 31, 2026 compared to the same period in 2025. The tax equivalent net interest margin for the three months ended March 31, 2026, was 2.86%, up from 2.48% for the same period in 2025. 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.

Non-interest income for the three months ended March 31, 2026 was $4.5 million, up $449,000 or 11.2%, from the three months ended March 31, 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%.

Non-interest expense for the three months ended March 31, 2026 was $13.6 million, up $772,000 or 6.0% from the three months ended March 31, 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.

Asset quality continues to be satisfactory. Non-performing assets stood at 0.51% of total assets as of March 31, 2026, up from 0.41% as of December 31, 2025 and up from 0.19% of total assets as of March 31, 2025. Total past-due loans were 1.14% of total loans as of March 31, 2026, up from 0.90% and up from 0.33% of total loans as of December 31, 2025 and March 31, 2025, respectively.

The provision for credit losses on loans for the first three months of 2026 was $650,000, up from the $396,000 provisioned in the same period in 2025. Net charge-offs for the three months ended March 31, 2026 were $806,000 or 0.034% of total loans, compared to net charge-offs of $153,000 or 0.026% as of the three months ended March 31, 2025. The ACL for loans decreased $156,000 between December 31, 2025 and March 31, 2026, and now stands at 1.05% of loans outstanding as of March 31, 2026, as compared to 1.06% at December 31, 2025 and 1.05% at March 31, 2025.

The Company's balance sheet continued to expand in the first three months of 2026 as total assets increased $34.5 million or 1.1% year-to-date. The loan portfolio increased $11.0 million or 0.5% in the three months ended March 31, 2026 and $22.0 million or 0.9% from a year ago. Commercial loans increased by $2.3 million during the period, led by increases in owner-occupied commercial real estate of $4.3 million and commercial & industrial loans of $16.1 million, while non-owner occupied commercial real estate decreased $4.8 million, multifamily decreased $8.5 million, and construction loan balances decreased $4.8 million. Residential loans increased by $4.0 million and home equity loans increased by $4.9 million in the first three months of 2026. The investment portfolio has decreased $9.5 million year-to-date and decreased $37.7 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 at March 31, 2026 were $2.66 billion, unchanged from year-end 2025. Low-cost deposits (Demand, NOW, Savings) decreased $42.1 million year-to-date and money market balances decreased $16.5 million. Local CDs increased $5.8 million while wholesale CDs decreased $52.7 million year-to-date. During the same period, borrowings increased by $8.0 million.

Remaining well capitalized is a top priority for The Company. The Company's total risk-based capital ratio was 14.05% as of March 31, 2026, 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 1.15% and return on average tangible common equity of 14.15% for the three months ended March 31, 2026 compared to 0.91% and 12.64%, respectively, for the same period in 2025. The Company's PTPP return of average assets for the three months ended March 31, 2026 was 1.47% compared to 1.15% 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 52.64% for the three months ended March 31, 2026 compared to 56.93% for the same period in 2025, the change being attributable primarily to higher levels of net interest income.