First Bancorp, Inc /ME/

Total interest income of $120.5 million for the nine months ended September 30, 2026 was an increase of $914,000 or 0.8% compared to total interest income of $119.5 million for the same period of 2025. Comparing the respective year-to-date periods, the overall average volume of earning assets was essentially unchanged, however balances shifted from lower yielding investments to higher yielding loans, resulting in a 2 basis point lift in average yield on earning assets to 5.37%.

Total interest expense of $56.1 million for the nine months ended September 30, 2026, was a decrease of $7.2 million or 11.3% compared to total interest expense for the nine months ended September 30, 2025. Interest expense on deposits fell $7.6 million year-to-date as compared to prior year on lower average funding rates and modestly lower volume. Borrowed funds expense was up $445,000 compared to the prior year period attributable to higher utilization of short-term FHLB funding. The total average cost of interest bearing liabilities was 2.89% for the period, a reduction of 36 basis points.

As a result, net interest income of $64.4 million for the nine months ended September 30, 2026 was an increase of $8.1 million or 14.4% compared to net interest income of $56.3 million for the nine months ended September 30, 2025. The Company's net interest margin on a tax-equivalent basis for the nine months ended September 30, 2026 was 2.91%, up from 2.57% for the first nine months of 2025. Tax-exempt interest income amounted to $7.7 million for the nine months ended September 30, 2026 compared to $8.0 million for the nine months ended September 30, 2025.

The following tables present the amount of interest earned or paid, as well as the average yield or rate on an annualized basis, for each major category of assets or liabilities for the nine months and quarters ended September 30, 2026 and 2025. Tax-exempt income is calculated on a tax-equivalent basis, using a 21.0% Federal Income Tax rate:

The following tables present changes in interest income and expense attributable to changes in interest rates and volume for interest-earning assets and liabilities for the nine months and quarters ended September 30, 2026 compared to 2025. Tax-exempt income is calculated on a tax-equivalent basis, using a 21% Federal Income Tax rate:

1 Represents the change attributable to a combination of change in rate and change in volume.

1 Represents the change attributable to a combination of change in rate and change in volume.