First Bancorp, Inc /ME/

Net income for the nine months ended September 30, 2026 was $29.2 million, up $5.0 million or 20.7% from the same period in 2025. Earnings per common share on a fully diluted basis were $2.59 for the nine months ended September 30, 2026, up $0.43 or 20.0% from the $2.16 posted for the same period in 2025. Dividends totaling $1.13 per share have been declared year-to-date, representing a payout to our shareholders of 43.0% of basic earnings per share for the period. On a PTPP basis, earnings for the nine months ended September 30, 2026 were $37.9 million, up $6.8 million, or 22.0% from the prior year.

For the quarter ended September 30, 2026, net income was $10.7 million, up $1.6 million or 17.5% from the same period in 2025. Earnings per common share on a fully diluted basis were $0.95 for the quarter ended September 30, 2026, up $0.14 or 16.8% from the $0.81 posted for the same period in 2025.

Net interest income on a tax-equivalent basis was up $8.0 million or 13.7% in the nine months ended September 30, 2026 compared to the same period in 2025. The tax equivalent net interest margin for the nine months ended September 30, 2026, was 2.91%, up from 2.57% for the same period in 2025. The period-to-period change in net interest income and net interest margin is attributable to a combination of stable volume of earning assets, slightly increased earning asset yields, and reduced funding costs. For the quarter ended September 30, 2026, the volume of earning assets increased as compared to the same three-month period in 2025, while earning asset yields increased slightly and funding costs fell. Net interest income on a tax-equivalent basis increased $2.4 million or 11.6% , and net interest margin improved to 2.99%, up from 2.70% for the same period in 2025.

Non-interest income for the nine months ended September 30, 2026 was $14.1 million, up $1.5 million or 11.8%, from the nine months ended September 30, 2025. The increase was centered in Wealth Management revenue which was up $500,000 or 12.5% from the prior year, and other operating income which increased $702,000 or 27.9%.

Non-interest expense for the nine months ended September 30, 2026 was $40.5 million, up $2.7 million or 7.3% from the nine months ended September 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 0.44% of total assets as of September 30, 2026, improved from 0.41% as of December 31, 2025 and up from 0.30% of total assets as of September 30, 2025. Total past-due loans were 0.67% of total loans as of September 30, 2026, down from 0.90% and 0.69% of total loans as of December 31, 2025 and September 30, 2025, respectively.

The provision for credit losses on loans for the first nine months of 2026 was $2.4 million, up from the $1.4 million provisioned in the same period in 2025. Net charge-offs for the nine months ended September 30, 2026 were $4.0 million or 0.22% (annualized) of total loans, compared to net charge-offs of $1.2 million or 0.07% (annualized) for the nine months ended September 30, 2025. The ACL for loans decreased $1.6 million between December 31, 2025 and September 30, 2026, with $873,000 of the reduction coming from changes in reserve estimates on IALs, and $679,000 from pooled reserve requirements resulting from changes in portfolio composition, economic factors and other quantitative inputs. The ACL-Loans now stands at 0.98% of loans outstanding as of September 30, 2026, as compared to 1.06% at December 31, 2025 and 1.05% at September 30, 2025.

The Company's balance sheet continued to expand in the first nine months of 2026 as total assets increased $85.5 million or 2.7% year-to-date. The loan portfolio increased $47.5 million or 2.0% in the nine months ended September 30, 2026 and has increased $43.0 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 $12.2 million, commercial & industrial loans which increased $28.3 million, and multifamily loans which decreased $21.0 million. Elsewhere, residential loans increased $18.5 million, home equity loans increased $17.5 million, and municipal loans increased $10.7 million in the first nine months of 2026. The investment portfolio has increased $14.4 million year-to-date and increased $124,000 from a year ago based upon cash flow of amortizing securities, reinvestment of cash flow, new purchases, and changes in the carrying value of AFS securities.

On the liability side of the balance sheet, total deposits at September 30, 2026 were $2.79 billion, an increase of $121.9 million from year-end 2025. Low-cost deposits (Demand, NOW, Savings) increased $62.9 million year-to-date and money market balances decreased $10.6 million. The increase in low-cost deposits is consistent with historical, seasonal patterns. Local CDs and wholesale CDs increased $17.4 million and $52.2 million, respectively, year-to-date and borrowings decreased by $42.9 million.

Remaining well capitalized is a top priority for the Company. The Company's total risk-based capital ratio was 14.25% as of September 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 1.22% and return on average tangible common equity of 14.95% for the nine months ended September 30, 2026 compared to 1.02% and 13.91%, respectively, for the same period in 2025. The Company's PTPP return on average assets for the nine months ended September 30, 2026 was 1.58% compared to 1.30% 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 50.23% for the nine months ended September 30, 2026 compared to 53.12% 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.