First Bancorp, Inc /ME/

Net income for the six months ended June 30, 2026 was $18.6 million, up $3.4 million or 22.5% from the same period in 2025. Earnings per common share on a fully diluted basis were $1.65 for the six months ended June 30, 2026, up $0.29 or 22.0% from the $1.35 posted for the same period in 2025. Dividends totaling $0.75 per share have been declared year-to-date, representing a payout to our shareholders of 44.9% of basic earnings per share for the period. On a PTPP basis, earnings for the six months ended June 30, 2026 were $24.0 million, up $4.7 million, or 24.2% from the prior year.

For the quarter ended June 30, 2026, net income was $9.6 million, up $1.5 million or 18.6% from the same period in 2025. Earnings per common share on a fully diluted basis were $0.85 for the quarter ended June 30, 2026, up $0.13 or 17.8% from the $0.72 posted for the same period in 2025.

Net interest income on a tax-equivalent basis was up $5.6 million or 14.8% in the six months ended June 30, 2026 compared to the same period in 2025. The tax equivalent net interest margin for the six months ended June 30, 2026, was 2.87%, up from 2.50% 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. The tax equivalent yield on earning assets remained stable despite rate cuts by the FOMC, while funding costs fell. The same factors influenced the quarter ended June 30, 2026, as net interest income on a tax-equivalent basis increased $2.7 million or 14.3% compared to the same three-month period in 2025, and net interest margin improved to 2.88%, up from 2.52% for the same period in 2025.

Non-interest income for the six months ended June 30, 2026 was $9.1 million, up $981,000 or 12.1%, from the six months ended June 30, 2025. The increase was centered in Wealth Management revenue which was up $381,000 or 14.4% from the prior year, and other operating income which increased $439,000 or 28.6%.

Non-interest expense for the six months ended June 30, 2026 was $27.0 million, up $2.0 million or 7.8% from the six months ended June 30, 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 0.54% of total assets as of June 30, 2026, up slightly from 0.51% as of December 31, 2025 and up from 0.19% of total assets as of June 30, 2025. Total past-due loans were 0.93% of total loans as of June 30, 2026, up slightly from 0.90% and up from 0.23% of total loans as of December 31, 2025 and June 30, 2025, respectively.

The provision for credit losses on loans for the first six months of 2026 was $1.6 million, up from the $744,000 provisioned in the same period in 2025. Net charge-offs for the six months ended June 30, 2026 were $2.4 million or 0.20% of total loans, compared to net charge-offs of $786,000 or 0.07% as of the six months ended June 30, 2025. The ACL for loans decreased $810,000 between December 31, 2025 and June 30, 2026, with $415,000 of the reduction coming from changes in reserve estimates on IALs, and $395,000 from pooled reserve requirements resulting from changes in portfolio composition, economic factors and other quantitative inputs. The ACL-Loans now stands at 1.01% of loans outstanding as of June 30, 2026, as compared to 1.05% at December 31, 2025 and 1.04% at June 30, 2025.

The Company's balance sheet continued to expand in the first six months of 2026 as total assets increased $49.8 million or 1.6% year-to-date. The loan portfolio increased $29.6 million or 1.2% in the six months ended June 30, 2026 and has increased $29.7 million from a year ago. Driving balance changes year-to-date in the commercial loan segments of the portfolio were commercial real estate & construction loans which decreased $14.7 million, commercial & industrial loans which increased $17.2 million, and multifamily loans which decreased $19.1 million. Elsewhere, residential loans increased by $16.0 million, home equity loans increased by $18.0 million, and municipal loans increased $8.8 million in the first six months of 2026. The investment portfolio has increased $8.1 million year-to-date and decreased $17.1 million from a year ago based upon cash flow of amortizing securities, measured levels of reinvestment or new purchases, and changes in the carrying value of AFS securities.

On the liability side of the balance sheet, total deposits at June 30, 2026 were $2.68 billion, an increase of $15.0 million from year-end 2025. Low-cost deposits (Demand, NOW, Savings) decreased $39.7 million year-to-date and money market balances decreased $47.6 million. These decreases in non-maturity deposits are consistent with historical, seasonal patterns in the first half of the year. Local CDs decreased $5.2 million while wholesale CDs have increased $107.6 million year-to-date and borrowings increased by $26.2 million, mostly short-term.

Remaining well capitalized is a top priority for the Company. The Company's total risk-based capital ratio was 14.23% as of June 30, 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 1.18% and return on average tangible common equity of 14.41% for the six months ended June 30, 2026 compared to 0.96% and 13.31%, respectively, for the same period in 2025. The Company's PTPP return of average assets for the six months ended June 30, 2026 was 1.52% compared to 1.22% 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 51.47% for the six months ended June 30, 2026 compared to 54.63% for the same period in 2025, the change being attributable primarily to higher levels of net interest income, complimented by higher non-interest revenue and controlled operating expenses.