First Bancorp's Net Income Jumps 22.6% on Strong Net Interest Income

TL;DR

**FNLC is crushing it with net interest income, but keep an eye on that uptick in non-performing loans.**

AI Summary

First Bancorp, Inc. reported a significant increase in net income for the nine months ended September 30, 2025, reaching $24.222 million, up 22.57% from $19.763 million in the same period of 2024. This was driven by a robust 21.39% increase in net interest income to $56.266 million from $46.357 million year-over-year. Interest income on loans rose to $105.135 million in 2025 from $95.541 million in 2024, while interest expense on deposits slightly decreased to $58.374 million from $59.111 million. Total assets grew to $3.198 billion as of September 30, 2025, from $3.142 billion a year prior, with total loans increasing to $2.398 billion from $2.307 billion. The allowance for credit losses also increased to $25.078 million from $23.999 million, reflecting a rise in non-performing loans to total loans from 0.11% to 0.40%. Strategic outlook appears positive with improved efficiency ratio of 53.12% in 2025 compared to 57.88% in 2024, and a higher return on average equity at 12.28% versus 10.67%.

Why It Matters

First Bancorp's strong financial performance, marked by a 22.57% increase in net income and a 21.39% rise in net interest income, signals robust operational health and effective interest rate management, which is crucial for investors in a competitive banking landscape. The increase in non-performing loans from 0.11% to 0.40% warrants investor attention, as it could indicate emerging credit quality concerns, potentially impacting future profitability and asset quality. For employees and customers, the bank's growth and improved efficiency ratio suggest stability and potential for continued service enhancements. In the broader market, FNLC's performance reflects the resilience of regional banks in navigating economic conditions, providing a benchmark for peers.

Risk Assessment

Risk Level: medium — The risk level is medium due to the notable increase in non-performing loans to total loans, which rose from 0.11% at September 30, 2024, to 0.40% at September 30, 2025. This 263% increase, alongside a rise in non-performing assets to total assets from 0.08% to 0.30%, indicates a potential deterioration in asset quality, despite overall positive financial results.

Analyst Insight

Investors should consider FNLC's strong net income growth and improved efficiency, but also scrutinize the rising non-performing loan ratio. A deeper dive into the loan portfolio's composition and management's credit risk mitigation strategies is advisable before making significant investment decisions.

Financial Highlights

debt To Equity

N/A

revenue

$132,145,000

operating Margin

N/A

total Assets

$3,198,478,000

total Debt

N/A

net Income

$24,222,000

eps

$2.19

gross Margin

N/A

cash Position

$31,606,000

revenue Growth

+17.07%

Revenue Breakdown

Key Numbers

• $24.222M — Net Income (Increased 22.57% for the nine months ended September 30, 2025, from $19.763M in 2024.)
• $56.266M — Net Interest Income (Increased 21.39% for the nine months ended September 30, 2025, from $46.357M in 2024.)
• 0.40% — Non-Performing Loans to Total Loans (Increased from 0.11% at September 30, 2024, indicating a rise in credit risk.)
• $3.198B — Total Assets (Increased from $3.142B at September 30, 2024, showing asset growth.)
• 12.28% — Return on Average Equity (Improved from 10.67% in 2024, reflecting better profitability.)
• 53.12% — Efficiency Ratio (Improved from 57.88% in 2024, indicating better cost management.)
• $2.19 — Basic Earnings per Share (Increased from $1.79 in 2024 for the nine months ended September 30.)
• $2.398B — Total Loans (Increased from $2.307B at September 30, 2024, showing loan portfolio expansion.)
• $25.078M — Allowance for Credit Losses (Increased from $23.999M at September 30, 2024, reflecting higher credit loss expense.)
• $1.578M — Credit Loss Expense (Increased from a reduction of ($639,000) in 2024 for the nine months ended September 30.)

Key Players & Entities

• First Bancorp, Inc. (company) — Registrant and financial holding company
• Bloomberg (company) — Financial news and data provider
• SEC (regulator) — Securities and Exchange Commission
• Berry Dunn McNeil & Parker, LLC (company) — Independent Registered Public Accounting Firm
• NASDAQ Global Select Market (market) — Exchange where FNLC common stock is registered
• $24.222 million (dollar_amount) — Net income for the nine months ended September 30, 2025
• $19.763 million (dollar_amount) — Net income for the nine months ended September 30, 2024
• $56.266 million (dollar_amount) — Net interest income for the nine months ended September 30, 2025
• $46.357 million (dollar_amount) — Net interest income for the nine months ended September 30, 2024
• 0.40% (percentage) — Non-performing loans to total loans as of September 30, 2025

FAQ

Risk Factors

• Increase in Credit Risk [medium — financial]: Non-performing loans to total loans increased significantly from 0.11% to 0.40% as of September 30, 2025. This rise in credit risk is reflected in the increased allowance for credit losses, which grew to $25.078 million from $23.999 million.
• Credit Loss Expense [medium — financial]: The company recorded a credit loss expense of $1.578 million for the nine months ended September 30, 2025, a significant shift from a reduction of ($639,000) in the same period of 2024. This indicates a more conservative stance on potential loan losses.
• Interest Rate Sensitivity [medium — market]: As a financial institution, the company is exposed to interest rate risk. Changes in interest rates can affect net interest income and the fair value of its investment securities. The net interest margin (tax-equivalent) improved to 2.57% from 2.25%, suggesting effective management in the current rate environment.
• Efficiency Ratio Improvement [low — operational]: The efficiency ratio improved to 53.12% from 57.88%, indicating better cost management. However, continued focus on operational efficiency is crucial in a competitive banking landscape.
• Regulatory Compliance [medium — regulatory]: As a bank, First Bancorp is subject to extensive regulation by various government agencies. Changes in regulations, capital requirements, or compliance failures could materially impact operations and profitability.

Industry Context

The banking industry is characterized by intense competition, stringent regulatory oversight, and sensitivity to macroeconomic conditions, particularly interest rate fluctuations. Banks are focused on managing credit risk, optimizing operational efficiency, and adapting to evolving customer preferences for digital services. Profitability is heavily influenced by net interest margins, non-interest income streams, and the ability to control operating expenses.

Regulatory Implications

First Bancorp, as a financial institution, operates under a complex regulatory framework. Changes in capital requirements, lending standards, or consumer protection laws could impact its operations and profitability. The increase in non-performing loans may attract closer scrutiny from regulators regarding its risk management practices and loan loss provisioning.

What Investors Should Do

1. Monitor credit quality trends closely.
2. Evaluate the sustainability of net interest income growth.
3. Assess the effectiveness of cost management initiatives.
4. Compare ROE and ROA against peers.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported net income of $24.222 million, a 22.57% increase year-over-year, driven by strong net interest income growth.
• 2024-09-30: Nine months ended September 30, 2024 — Reported net income of $19.763 million, with net interest income of $46.357 million.
• 2025-09-30: As of September 30, 2025 — Total assets reached $3.198 billion, and total loans stood at $2.398 billion. Non-performing loans to total loans ratio increased to 0.40%.
• 2024-09-30: As of September 30, 2024 — Total assets were $3.142 billion, and total loans were $2.307 billion. Non-performing loans to total loans ratio was 0.11%.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its lenders (like depositors). It's a key measure of a bank's profitability from its core lending and borrowing activities. (A primary driver of First Bancorp's increased net income, showing strong performance in its core banking operations.)

Allowance for Credit Losses (ACL)

An estimate of the losses expected from a bank's loan portfolio. It's a contra-asset account that reduces the carrying value of loans on the balance sheet. (The increase in ACL reflects a rise in perceived credit risk within the loan portfolio, necessitating a higher provision for potential defaults.)

Non-Performing Loans (NPLs)

Loans for which the borrower is not making scheduled payments of principal or interest for a specified period (typically 90 days or more). (The significant increase in NPLs as a percentage of total loans is a key indicator of deteriorating credit quality within the bank's loan book.)

Efficiency Ratio

A measure of a bank's operational efficiency, calculated by dividing non-interest expense by total revenue (net interest income plus non-interest income). A lower ratio indicates better efficiency. (The improvement in the efficiency ratio suggests that First Bancorp is managing its operating costs more effectively relative to its revenue generation.)

Return on Average Equity (ROE)

A profitability ratio that measures how effectively a company uses the money invested by its shareholders to generate profits. It's calculated by dividing net income by average shareholders' equity. (The increase in ROE indicates that First Bancorp is generating higher profits relative to the equity invested by its shareholders.)

Net Interest Margin (NIM)

A measure of the difference between the interest income generated by a bank and the amount of interest it pays out, expressed as a percentage of its interest-earning assets. It reflects the profitability of a bank's lending and investment activities. (The increase in NIM suggests that the bank is earning more on its interest-earning assets relative to its interest-bearing liabilities.)

Year-Over-Year Comparison

First Bancorp, Inc. has demonstrated significant year-over-year improvement in its nine-month performance ending September 30, 2025. Net income surged by 22.57% to $24.222 million, primarily fueled by a robust 21.39% increase in net interest income. This growth was achieved despite a slight increase in the allowance for credit losses and a notable rise in non-performing loans to total loans from 0.11% to 0.40%, indicating a potential increase in credit risk. Positively, the bank has improved its operational efficiency, evidenced by a lower efficiency ratio (53.12% vs. 57.88%) and a higher return on average equity (12.28% vs. 10.67%). Total assets and total loans have also seen modest growth.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share FNLC NASDAQ Global Select Mar

Filing Documents

• fnlc-20250930.htm (10-Q) — 5560KB
• a20250930-fnlcxex311.htm (EX-31.1) — 7KB
• a20250930-fnlcxex312.htm (EX-31.2) — 7KB
• a20250930-fnlcxex321.htm (EX-32.1) — 3KB
• a20250930-fnlcxex322.htm (EX-32.2) — 3KB
• 0000765207-25-000055.txt ( ) — 23778KB
• fnlc-20250930.xsd (EX-101.SCH) — 61KB
• fnlc-20250930_cal.xml (EX-101.CAL) — 125KB
• fnlc-20250930_def.xml (EX-101.DEF) — 396KB
• fnlc-20250930_lab.xml (EX-101.LAB) — 811KB
• fnlc-20250930_pre.xml (EX-101.PRE) — 648KB
• fnlc-20250930_htm.xml (XML) — 7088KB

Financial Information

Part I. Financial Information 1

Selected Financial Data (Unaudited)

Selected Financial Data (Unaudited) 1

– Financial Statements

Item 1 – Financial Statements 2 Report of Independent Registered Public Accounting Firm 2 Consolidated Balance Sheets (Unaudited) 3 Consolidated Statements of Income and Comprehensive Income (Unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) 5 Consolidated Statements of Cash Flows (Unaudited) 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Note 1 – Basis of Presentation 9 Note 2 –Investment Securities 10 Note 3 – Loans 15 Note 4 – Allowance for Credit Losses 25 Note 5 – Stock-Based Compensation 39 Note 6 – Preferred and Common Stock 39 Note 7 – Earnings Per Share 39 Note 8 – Employee Benefit Plans 40 Note 9 – Other Comprehensive Income (Loss) 41 Note 10 – Financial Derivative Instruments 42 Note 11 – Mortgage Servicing Rights 44 Note 12 – Income Taxes 45 Note 13 – Certificates of Deposit 45 Note 14 – Reclassifications 45 Note 15 – Fair Value Disclosures 45 Note 16 – Impact of Recently Issued Accounting Standards 51

– Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 52

Forward-Looking Statements

Forward-Looking Statements 52 Critical Accounting Policies 52 Use of Non-GAAP Financial Measures 54 Executive Summary 55 Net Interest Income 56 Average Daily Balance Sheets 59 Non-Interest Income 60 Non-Interest Expense 60 Income Taxes 60 Investments 60 Debt Securities -Unrealized Loss Position 62 Federal Home Loan Bank Stock 63 Loans and Loans Held for Sale 64 Credit Risk Management and Allowance for Credit Losses 65 Non-Performing Loans and L oan Modifications 69 Past Due Loans 71 Potential Problem Loans and Loans in Process of Foreclosure 71 Other Real Estate Owned 72 Liquidity 72 Deposits 73 Borrowed Funds 73 Capital Resources 73 Off-Balance-Sheet Financial Instruments and Contractual Obligations 74

– Quantitative and Qualitative Disclosures About Market Risk

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 76 Market-Risk Management 76 Asset/Liability Management 76 Interest Rate Risk Management 77

- Controls and Procedures 78

Item 4 - Controls and Procedures 78

Other Information

Part II. Other Information 79

– Legal Proceedings

Item 1 – Legal Proceedings 79

– Risk Factors

Item 1a – Risk Factors 79

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 79

– Default Upon Senior Securities

Item 3 – Default Upon Senior Securities 79

– M ine Safety Disclosures

Item 4 – M ine Safety Disclosures 79

– Other Information

Item 5 – Other Information 79

– Exhibits

Item 6 – Exhibits 80

Financial Information

Part I. Financial Information

Selected Financial Data (Unaudited)

Selected Financial Data (Unaudited) The First Bancorp, Inc. and Subsidiary Dollars in thousands, As of and for the nine months ended September 30, As of and for the quarter ended September 30, except for per share amounts 2025 2024 2025 2024 Summary of Operations Interest Income $ 119,539 $ 109,833 $ 41,005 $ 38,287 Interest Expense 63,273 63,476 20,947 21,885 Net Interest Income 56,266 46,357 20,058 16,402 Credit Loss Expense (Reduction) 1,578 (639) 700 (638) Non-Interest Income 12,606 11,919 4,475 4,122 Non-Interest Expense 37,797 35,011 12,754 12,000 Net Income 24,222 19,763 9,082 7,571 Per Common Share Data Basic Earnings per Share $ 2.19 $ 1.79 $ 0.82 $ 0.69 Diluted Earnings per Share 2.16 1.78 0.81 0.68 Cash Dividends Declared 1.10 1.07 0.37 0.36 Book Value per Common Share 24.48 23.03 24.48 23.03 Tangible Book Value per Common Share 2 21.74 20.27 21.74 20.27 Market Value 26.26 26.32 26.26 26.32 Financial Ratios Return on Average Equity 1 12.28 % 10.67 % 13.33 % 11.86 % Return on Average Tangible Common Equity 1,2 13.91 % 12.19 % 15.04 % 13.50 % Return on Average Assets 1 1.02 % 0.87 % 1.13 % 0.98 % Average Equity to Average Assets 8.28 % 8.20 % 8.45 % 8.24 % Average Tangible Equity to Average Assets 2 7.31 % 7.18 % 7.49 % 7.24 % Net Interest Margin Tax-Equivalent 1,2 2.57 % 2.25 % 2.70 % 2.32 % Dividend Payout Ratio 50.34 % 59.81 % 45.18 % 52.55 % Allowance for Credit Losses/Total Loans 1.05 % 1.04 % 1.05 % 1.04 % Non-Performing Loans to Total Loans 0.40 % 0.11 % 0.40 % 0.11 % Non-Performing Assets to Total Assets 0.30 % 0.08 % 0.30 % 0.08 % Efficiency Ratio 2 53.12 % 57.88 % 50.40 % 56.37 % At Period End Total Assets $ 3,198,478 $ 3,142,563 $ 3,198,478 $ 3,142,563 Total Loans 2,398,510 2,307,253 2,398,510 2,307,253 Total Investment Securities 642,961 669,076 642,961 669,076 Total Deposits 2,737,550 2,702,718 2,737,550 2,702,718 Total Shareholders' Equity 274,566 256,783 274,566 256,783 1 Annualized using a 365-

– Financial Statements

Item 1 – Financial Statements Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders The First Bancorp, Inc. Results of Review of Interim Financial Information We have reviewed the accompanying interim consolidated financial information of The First Bancorp, Inc. and Subsidiary as of September 30, 2025 and 2024 and for the three-month and nine-month periods then ended, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for them to be in conformity with accounting principles generally accepted in the United States of America. Basis for Review Results This consolidated interim financial information is the responsibility of the Company's management. We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ Berry Dunn McNeil & Parker, LLC Portland, Maine November 7, 2025 2 Consolidated Balance Sheets (Unaudited) - The First Bancorp, Inc. and Subsidiary September 30, 2025 December 31, 2024 September 30, 2024 Assets Cash and cash equivalents $ 31,606,000 $ 27,636,000 $ 35,136,000 Interest bearing deposits in other banks 7,225,000 22,100,000 17,199,000 Securities available for sale 273,493,000 274,680,000 285,021,000 Securities held-to-maturity (net of ACL), fair value of $ 316,574,000 at September 30, 2025, $ 314,993,000 at

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements The First Bancorp, Inc. and Subsidiary Note 1 – Basis of Presentation The Company is a financial holding company that owns all of the common stock of the Bank. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of Management, all adjustments (consisting of normally recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions and balances are eliminated in consolidation. The income reported for the 2025 period is not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, refer to the consolidated financial statements and notes included in the Company's annual report on Form 10-K for the year ended December 31, 2024. The abbreviations and definitions identified below may be used throughout this Form 10-Q, including Item 1 - Financial Statements and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q. Abbreviation Description Abbreviation Description ACL Allowance for credit losses GDP Gross domestic product AFS Available-for-sale GNMA Government National Mortgage Association ALCO Asset/Liability Committee HTM Held-to-maturity AOCI Accumulated other comprehensive income (loss) IAL Individually Analyzed Loans ASC Accounting Standards Codification IRS Internal Revenue Service ASU Accounting Standards Update MPF Mortgage Partnership Finance Program C&I Commercial and Industrial OAEM Other assets especially mentioned CDs Certificat

View Full Filing

View this 10-Q filing on SEC EDGAR