First Bancorp Inc (FNLC)

The First Bancorp Declares Second Quarter DividendJune 25, 2026 4:15 PM
Business Wire The First Bancorp (NASDAQ: FNLC), the parent company of First National Bank, today declared a quarterly cash dividend of 38 cents per share. This second quarter dividend represents an increase of one cent per share from dividend paid in each of the prior four quarters, and is payable July 17, 2026 to shareholders of record as of July 7, 2026. "The Board of Directors is pleased to authorize a dividend of 38 cents per share for the second quarter of 2026," remarked President & Chief Executive Officer, Tony C. McKim. "The one cent increase marks our 12th consecutive year of raising the dividend by at least one cent in the second quarter, and demonstrates our ongoing commitment to having shareholders participate in the Company's success at a meaningful level. Based on a closing price of $34.10 per share on June 24, 2026, the annualized dividend of $1.52 per share represents an attractive yield of 4.46%." The First Bancorp, headquartered in Damariscotta, Maine, is the holding company for First National Bank. Founded in 1864, the Bank serves Mid-Coast and Down East Maine with eighteen offices in Lincoln, Knox, Hancock, Penobscot, Waldo and Washington Counties. The Bank provides a full range of consumer and commercial banking products and services. First National Wealth Management, a division of First National Bank, provides investment management and trust services from five offices in Lincoln, Knox, Penobscot and Hancock Counties. Forward-looking and cautionary statements: except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission. Category: Dividends Source: The First Bancorp View source version on businesswire.com: https://www.businesswire.com/news/home/20260625599825/en/ The First Bancorp
Richard M. Elder, EVP, Chief Financial Officer
207-563-3195
rick.elder@thefirst.com Original: The First Bancorp Declares Second Quarter Dividend

The First Bancorp Announces First Quarter ResultsApril 22, 2026 4:15 PM
Business Wire
Net Interest Margin Expansion and Improved Efficiency


Drive a 27% Increase in First Quarter Earnings


The First Bancorp (Nasdaq: FNLC), ("the Company", "we", "us", "our"), parent company of First National Bank, today reported unaudited results for the quarter ended March 31, 2026. Net income for the period was $9.0 million with fully diluted earnings per share of $0.80, as compared to net income of $7.1 million and diluted earnings per share of $0.63 for the three months ended March 31, 2025.


First Quarter Notable Items:



Net Income of $9.0 million is an increase of 27.1% as compared to Q1 2025



Diluted EPS of $0.80 is an increase of 26.2% from Q1 2025



Net Interest Margin expanded to 2.86%, a 38 basis point increase from Q1 2025



Loan growth in the period of $11.0 million



Efficiency Ratio of 52.64%, improved from 56.93% in Q1 2025



Tangible Book Value per share rose to $22.71, up 11.1% from Q1 2025



Quarterly shareholder dividend of $0.37 per share



CEO COMMENTS


"I am pleased to report continued year-over-year quarterly earnings growth to kick off 2026," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income of $9.0 million for the first quarter is an increase of 27.1% from the first quarter of 2025. Our Return on Average Assets for the period was 1.15% and our Return on Average Tangible Common Equity was 14.15%, both up nicely from 0.91% and 12.64%, respectively, a year ago.


"Earnings growth has been driven by continued expansion of our net interest margin, coupled with increased non-interest revenue and controlled expenses. Our margin improved for the seventh consecutive quarter, to 2.86% for the first quarter of 2026, up 38 basis points from the first quarter of 2025, with the improvement stemming from a combination of earning asset yield enhancement focused in the loan portfolio and reduced funding costs.


"Total assets increased $34 million in the quarter, including net loan growth of $11 million. New loan production for the quarter was $116 million. Total deposits were flat as non-maturity deposits followed a typical seasonal pattern, falling $58.6 million during the period, and were replaced by short-term time deposits and borrowings. Our capital position strengthened as compared to both the prior year quarter and the immediate prior quarter, and overall liquidity remains more than sufficient."


Concluding, Mr. McKim shared, "We are pleased to carry forward last year's earnings momentum into 2026 with positive first quarter results. The entire team at First National Bank is focused on delivering exceptional banking experiences to our growing customer base and building value for the communities and stakeholders we serve."


OPERATING RESULTS Q1 2026 v. Q1 2025 (prior year quarter)


Net income was $9.0 million for the three months ended March 31, 2026, an increase of $1.9 million or 27.1% from the first quarter of 2025. Net interest income was $20.7 million for the three months ended March 31, 2026, an increase of $2.9 million or 16.2% from the first quarter of 2025. Net interest margin improved to 2.86% for the first quarter of 2026, up from 2.48% in the prior year quarter. The lift in margin was the result of a 5 basis point increase in the tax equivalent yield on earning assets coupled with a 38 basis point decrease in the cost of total liabilities. Earning assets averaged a yield of 5.33% for the three months ended March 31, 2026, while total liabilities carried an average cost of 2.89%.


Total non-interest income was $4.5 million for the three months ended March 31, 2026, an increase of $449,000, or 11.2% from the first quarter of 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%. Total non-interest expense for the three months ended March 31, 2026, was $13.6 million, an increase of $772,000, or 6.0%, from the first quarter of 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. The Company's efficiency ratio for the first quarter of 2026 was 52.64%, improved from 56.93% in the prior year quarter.


OPERATING RESULTS Q1 2026 v. Q4 2025 (linked quarter)


Net income was $9.0 million for the three months ended March 31, 2026, a decrease of $1.2 million or 11.6% from the fourth quarter of 2025. Net interest income of $20.7 million for the three months ended March 31, 2026, was a decrease of $422,000 or 2.0% from the linked quarter, attributable primarily to Q4 2025 having two more days of net interest income accrual than Q1 2026. The net interest margin increased to 2.86% in the first quarter of 2026, an improvement of 3 basis points from the linked quarter.


Total non-interest income of $4.5 million for the first quarter of 2026 was down $283,000 from the fourth quarter of 2025. The change is centered in a $396,000 decrease in Debit Card income stemming from seasonally lower transaction volume and recognition of an annual program incentive payment in the linked quarter. Other operating income increased $82,000, principally from loan-based derivative fees, and revenue increased $53,000 at First National Wealth Management. Total non-interest expense for the three months ended March 31, 2026 was $13.6 million, an increase of $485,000, or 3.7%, from the linked quarter.


LOANS, TOTAL ASSETS & FUNDING


Total assets as of March 31, 2026, were $3.20 billion, up $34.5 million in the first quarter. Earning assets grew $27.8 million with loan growth of $11.0 million during the period. Investment balances fell $9.5 million in the quarter while overnight funds sold increased by $26.0 million.


Loan balances grew at a modest pace in the first quarter, the net effect of new loan production, scheduled amortization, and payoffs during the period. The residential mortgage and home equity loan segments each contributed to loan portfolio growth, up $4.0 million and $4.9 million, respectively in the first quarter. Commercial and industrial loan balances increased $16.1 million, while commercial real estate loan balances and multifamily loan balances decreased by $5.3 million and $8.5 million, respectively.


Total deposits as of March 31, 2026 were $2.66 billion, unchanged from year-end 2025. Non-maturity deposits fell $58.6 million in the first quarter, in line with expectations. Time deposits increased $58.5 million and borrowed funds increased $8.0 million during the period. Uninsured deposits as of March 31, 2026 were estimated at 18.2% of total deposits, and 75% of uninsured deposits were fully collateralized. Available day-one liquidity was $721 million, sufficient to cover 149% of estimated uninsured deposits.


ASSET QUALITY


Overall asset quality remains satisfactory. As of March 31, 2026, the ratio of non-performing assets to total assets was 0.51%, compared to 0.41% as of December 31, 2025, and 0.19% as of March 31, 2025. The ratio of non-performing loans to total loans was 0.67% as of March 31, 2026, compared to 0.54% as of December 31, 2025, and 0.25% as of March 31, 2025. Loans past due thirty days or more were 1.14% of total loans as of March 31, 2026.


The Allowance for Credit Losses ("ACL") on loans stood at 1.05% of total loans as of March 31, 2026, in line with both the linked quarter and prior year quarter. A provision for credit losses of $620,000 was recorded in the first quarter of 2026. Net loan charge-offs in the first quarter totaled $806,000, or 0.034% of total loans. Net charge-offs included $671,000 in loans that had been individually analyzed and were fully reserved.


CAPITAL


The Company’s regulatory capital position was strong as of March 31, 2026. The Leverage Capital ratio increased to an estimated 9.09% as of March 31, 2026, as compared to the 8.84% and 8.40% reported as of December 31, 2025, and as of March 31, 2025, respectively. The estimated Total Risk-Based Capital ratio was 14.04% as of March 31, 2026, as compared to the 14.02% and 13.12% reported as of December 31, 2025, and as of March 31, 2025, respectively.


The Company's tangible book value per share was $22.71 as of March 31, 2026, up from $22.49 as of December 31, 2025, and up from $20.44 as of March 31, 2025. The Tangible Common Equity ratio increased to 8.08% as of March 31, 2026, up from 8.05% as of December 31, 2025, and 7.25% as of March 31, 2025.


DIVIDEND


On March 26, 2026, the Company's Board of Directors declared a first quarter dividend of $0.37 per share. The dividend was paid on April 17, 2026, to shareholders of record as of April 7, 2026.


ABOUT THE FIRST BANCORP


The First Bancorp, the parent company of First National Bank, is based in Damariscotta, Maine. Founded in 1864, First National Bank is a full-service community bank with $3.17 billion in assets. The Bank provides a complete array of commercial and retail banking services through eighteen locations in mid-coast and eastern Maine. First National Wealth Management, a division of the Bank, provides investment management and trust services to individuals, businesses, and municipalities. More information about The First Bancorp, First National Bank and First National Wealth Management may be found at www.thefirst.com.




The First Bancorp








Quarterly Selected Financial Data (Unaudited)








 






 






 






 






 






 








 






At or for the quarters ended








Dollars in thousands, except for per share amounts






3/31/2026






12/31/2025






9/30/2025






6/30/2025






3/31/2025








Financial Data






 






 






 






 






 








Total Assets






$






3,200,763






 






$






3,166,303






 






$






3,198,478






 






$






3,199,510






 






$






3,187,372






 








Total Loans






 






2,405,149






 






 






2,394,109






 






 






2,398,510






 






 






2,394,007






 






 






2,383,150






 








Total Investment Securities






 






619,159






 






 






628,683






 






 






642,961






 






 






653,855






 






 






656,844






 








Total Deposits






 






2,664,643






 






 






2,664,752






 






 






2,737,550






 






 






2,705,337






 






 






2,711,335






 








Total Shareholders’ Equity






 






286,784






 






 






283,143






 






 






274,566






 






 






265,492






 






 






259,681






 








Net Income






 






8,993






 






 






10,172






 






 






9,082






 






 






8,063






 






 






7,077






 








Per Common Share Data






 






 






 






 






 








Basic Earnings per Share






$






0.81






 






$






0.92






 






$






0.82






 






$






0.73






 






$






0.64






 








Diluted Earnings per Share






 






0.80






 






 






0.91






 






 






0.81






 






 






0.72






 






 






0.63






 








Cash Dividends Declared






 






0.37






 






 






0.37






 






 






0.37






 






 






0.37






 






 






0.36






 








Book Value per Common Share






 






25.44






 






 






25.23






 






 






24.48






 






 






23.69






 






 






23.19






 








Tangible Book Value per Common Share






 






22.71






 






 






22.49






 






 






21.74






 






 






20.94






 






 






20.44






 








Market Value






 






28.03






 






 






26.44






 






 






26.26






 






 






25.41






 






 






24.72






 








Financial Ratios






 






 






 






 






 








Return on Average Equity(1)






 






12.64






%






 






14.35






%






 






13.33






%






 






12.31






%






 






11.13






%








Return on Average Tangible Common Equity(1)






 






14.15






%






 






16.12






%






 






15.04






%






 






13.95






%






 






12.64






%








Return on Average Assets(1)






 






1.15






%






 






1.26






%






 






1.13






%






 






1.01






%






 






0.91






%








Pre-tax, pre-provision Return on Assets(1)






 






1.47






%






 






1.58






%






 






1.46






%






 






1.30






%






 






1.15






%








Net Interest Margin Tax-Equivalent(1)






 






2.86






%






 






2.83






%






 






2.70






%






 






2.52






%






 






2.48






%








Dividend Payout Ratio






 






45.74






%






 






40.39






%






 






45.18






%






 






50.89






%






 






56.34






%








GAAP Efficiency Ratio






 






54.16






%






 






50.81






%






 






51.99






%






 






54.13






%






 






58.91






%








Efficiency Ratio (non-GAAP)






 






52.64






%






 






49.33






%






 






50.40






%






 






52.39






%






 






56.93






%








Asset Quality Ratios






 






 






 






 






 








Allowance for Credit Losses/Total Loans






 






1.05






%






 






1.06






%






 






1.05






%






 






1.04






%






 






1.05






%








Allowance to Non-Performing Loans






 






155.73






%






 






196.95






%






 






261.36






%






 






411.13






%






 






414.88






%








Non-Performing Loans to Total Loans






 






0.67






%






 






0.54






%






 






0.40






%






 






0.25






%






 






0.25






%








Non-Performing Assets to Total Assets






 






0.51






%






 






0.41






%






 






0.30






%






 






0.19






%






 






0.19






%








Capital Ratios






 






 






 






 






 








Leverage Capital Ratio(2)






 






9.09






%






 






8.84






%






 






8.63






%






 






8.48






%






 






8.40






%








Tier 1 Capital Ratio(2)






 






12.89






%






 






12.84






%






 






12.39






%






 






12.15






%






 






11.96






%








Total Capital Ratio(2)






 






14.04






%






 






14.02






%






 






13.56






%






 






13.31






%






 






13.12






%








Tangible Common Equity Ratio






 






8.08






%






 






8.05






%






 






7.70






%






 






7.41






%






 






7.25






%








Average Equity to Average Assets






 






9.10






%






 






8.78






%






 






8.45






%






 






8.23






%






 






8.15






%








Average Tangible Equity to Average Assets






 






8.13






%






 






7.82






%






 






7.49






%






 






7.27






%






 






7.17






%








(1)Annualized using a 365-day basis for 2026 and 2025.








(2)Estimated for current period.









The First Bancorp








Consolidated Balance Sheets (Unaudited)








 






 






 






 






 






 








In thousands of dollars, except per share data






3/31/2026






12/31/2025






9/30/2025






6/30/2025






3/31/2025








Assets






 






 






 






 






 








Cash and due from banks






$






23,607






 






$






27,779






 






$






31,606






 






$






27,360






 






$






26,432






 








Interest-bearing deposits in other banks






 






30,075






 






 






4,124






 






 






7,225






 






 






3,253






 






 






2,938






 








Securities available-for-sale






 






256,788






 






 






264,480






 






 






273,493






 






 






278,248






 






 






280,764






 








Securities held-to-maturity






 






354,057






 






 






355,928






 






 






362,552






 






 






367,873






 






 






368,571






 








Restricted equity securities, at cost






 






8,314






 






 






8,275






 






 






6,916






 






 






7,734






 






 






7,509






 








Loans held for sale






 






—






 






 






—






 






 






333






 






 






—






 






 






—






 








Loans






 






2,405,149






 






 






2,394,109






 






 






2,398,510






 






 






2,394,007






 






 






2,383,150






 








Less allowance for credit losses






 






25,209






 






 






25,365






 






 






25,078






 






 






24,829






 






 






25,114






 








Net loans






 






2,379,940






 






 






2,368,744






 






 






2,373,432






 






 






2,369,178






 






 






2,358,036






 








Accrued interest receivable






 






19,247






 






 






14,185






 






 






16,256






 






 






19,386






 






 






17,923






 








Premises and equipment






 






28,720






 






 






28,767






 






 






27,919






 






 






28,198






 






 






28,626






 








Goodwill






 






30,646






 






 






30,646






 






 






30,646






 






 






30,646






 






 






30,646






 








Other assets






 






69,369






 






 






63,375






 






 






68,100






 






 






67,634






 






 






65,927






 








Total assets






$






3,200,763






 






$






3,166,303






 






$






3,198,478






 






$






3,199,510






 






$






3,187,372






 








Liabilities






 






 






 






 






 








Demand deposits






$






268,100






 






$






279,912






 






$






313,729






 






$






291,150






 






$






267,876






 








NOW deposits






 






660,511






 






 






689,083






 






 






638,090






 






 






590,536






 






 






613,245






 








Money market deposits






 






453,210






 






 






469,689






 






 






458,398






 






 






388,214






 






 






398,966






 








Savings deposits






 






247,084






 






 






248,805






 






 






255,806






 






 






256,584






 






 






261,732






 








Certificates of deposit






 






699,635






 






 






638,931






 






 






688,001






 






 






774,521






 






 






754,558






 








Certificates $100,000 to $250,000






 






184,486






 






 






190,676






 






 






210,741






 






 






231,926






 






 






241,536






 








Certificates $250,000 and over






 






151,617






 






 






147,656






 






 






172,785






 






 






172,406






 






 






173,422






 








Total deposits






 






2,664,643






 






 






2,664,752






 






 






2,737,550






 






 






2,705,337






 






 






2,711,335






 








Borrowed funds






 






195,796






 






 






187,821






 






 






152,968






 






 






196,170






 






 






185,444






 








Other liabilities






 






53,540






 






 






30,587






 






 






33,394






 






 






32,511






 






 






30,912






 








Total Liabilities






 






2,913,979






 






 






2,883,160






 






 






2,923,912






 






 






2,934,018






 






 






2,927,691






 








Shareholders' equity






 






 






 






 






 








Common stock






 






113






 






 






112






 






 






112






 






 






112






 






 






112






 








Additional paid-in capital






 






74,255






 






 






73,714






 






 






73,276






 






 






72,795






 






 






72,355






 








Retained earnings






 






245,001






 






 






240,456






 






 






234,435






 






 






229,511






 






 






225,592






 








Net unrealized loss on securities available-for-sale






 






(32,790






)






 






(31,341






)






 






(33,523






)






 






(37,237






)






 






(38,702






)








Net unrealized loss on transferred securities from available-for-sale to held-to-maturity






 






(35






)






 






(38






)






 






(40






)






 






(60






)






 






(45






)








Net unrealized gain on cash flow hedging derivative instruments






 






—






 






 






—






 






 






19






 






 






84






 






 






82






 








Net unrealized gain on postretirement costs






 






240






 






 






240






 






 






287






 






 






287






 






 






287






 








Total shareholders' equity






 






286,784






 






 






283,143






 






 






274,566






 






 






265,492






 






 






259,681






 








Total liabilities & shareholders' equity






$






3,200,763






 






$






3,166,303






 






$






3,198,478






 






$






3,199,510






 






$






3,187,372






 








 






 






 






 






 






 








 






 






 






 






 






 








Common Stock






 






 






 






 






 








Number of shares authorized






 






18,000,000






 






 






18,000,000






 






 






18,000,000






 






 






18,000,000






 






 






18,000,000






 








Number of shares issued and outstanding






 






11,271,014






 






 






11,222,363






 






 






11,214,455






 






 






11,205,861






 






 






11,196,881






 








Book value per common share






$






25.44






 






$






25.23






 






$






24.48






 






$






23.69






 






$






23.19






 








Tangible book value per common share






$






22.71






 






$






22.49






 






$






21.74






 






$






20.94






 






$






20.44






 









The First Bancorp








Quarterly Consolidated Statements of Income (Unaudited)








 






 






 






 






 








 






For the Quarters Ended








In thousands of dollars, except per share data






3/31/2026






12/31/2025






9/30/2025






6/30/2025






3/31/2025








Interest income






 






 






 






 






 








Interest and fees on loans






$






34,725






 






$






36,025






 






$






36,197






 






$






35,014






$






33,924






 








Interest on deposits with other banks






 






30






 






 






185






 






 






108






 






 






51






 






56






 








Interest and dividends on investments






 






4,384






 






 






4,522






 






 






4,700






 






 






4,760






 






4,729






 








Total interest income






 






39,139






 






 






40,732






 






 






41,005






 






 






39,825






 






38,709






 








Interest expense






 






 






 






 






 








Interest on deposits






 






16,702






 






 






18,323






 






 






19,380






 






 






19,725






 






19,269






 








Interest on borrowed funds






 






1,748






 






 






1,298






 






 






1,567






 






 






1,691






 






1,641






 








Total interest expense






 






18,450






 






 






19,621






 






 






20,947






 






 






21,416






 






20,910






 








Net interest income






 






20,689






 






 






21,111






 






 






20,058






 






 






18,409






 






17,799






 








Credit loss expense - loans






 






650






 






 






615






 






 






690






 






 






348






 






396






 








Credit loss expense (reduction) - debt securities held to maturity






 






(1






)






 






(40






)






 






(12






)






 






1






 






1






 








Credit loss expense (reduction) - off-balance sheet credit exposures






 






(29






)






 






(303






)






 






22






 






 






137






 






(5






)








Total credit loss expense






 






620






 






 






272






 






 






700






 






 






486






 






392






 








Net interest income after provision for credit losses






 






20,069






 






 






20,839






 






 






19,358






 






 






17,923






 






17,407






 








Non-interest income






 






 






 






 






 








Investment management and fiduciary income






 






1,486






 






 






1,433






 






 






1,341






 






 






1,336






 






1,317






 








Service charges on deposit accounts






 






560






 






 






559






 






 






532






 






 






539






 






531






 








Net securities gains






 






12






 






 






—






 






 






—






 






 






—






 






—






 








Mortgage origination and servicing income






 






176






 






 






211






 






 






219






 






 






221






 






195






 








Debit card income






 






1,200






 






 






1,596






 






 






1,403






 






 






1,286






 






1,170






 








Other operating income






 






1,017






 






 






935






 






 






980






 






 






747






 






789






 








Total non-interest income






 






4,451






 






 






4,734






 






 






4,475






 






 






4,129






 






4,002






 








Non-interest expense






 






 






 






 






 








Salaries and employee benefits






 






7,330






 






 






7,198






 






 






6,674






 






 






6,276






 






6,850






 








Occupancy expense






 






956






 






 






827






 






 






814






 






 






876






 






877






 








Furniture and equipment expense






 






1,543






 






 






1,487






 






 






1,491






 






 






1,438






 






1,462






 








FDIC insurance premiums






 






570






 






 






629






 






 






698






 






 






701






 






694






 








Amortization of identified intangibles






 






7






 






 






6






 






 






7






 






 






6






 






7






 








Other operating expense






 






3,210






 






 






2,984






 






 






3,070






 






 






2,902






 






2,954






 








Total non-interest expense






 






13,616






 






 






13,131






 






 






12,754






 






 






12,199






 






12,844






 








Income before income taxes






 






10,904






 






 






12,442






 






 






11,079






 






 






9,853






 






8,565






 








Applicable income taxes






 






1,911






 






 






2,270






 






 






1,997






 






 






1,790






 






1,488






 








Net Income






$






8,993






 






$






10,172






 






$






9,082






 






$






8,063






$






7,077






 








Basic earnings per share






$






0.81






 






$






0.92






 






$






0.82






 






$






0.73






$






0.64






 








Diluted earnings per share






$






0.80






 






$






0.91






 






$






0.81






 






$






0.72






$






0.63






 







Use of Non-GAAP Financial Measures


Certain information in this release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company's performance (including for purposes of determining the compensation of certain executive officers and other Company employees) and believes that these non-GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and with other financial institutions, as well as demonstrating the effects of significant gains and charges in the current period, in light of the disclosure practices employed by many other publicly-traded financial institutions. The Company believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. Management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.


In several places net interest income is calculated on a fully tax-equivalent basis. Specifically included in interest income was tax-exempt interest income from certain investment securities and loans. An amount equal to the tax benefit derived from this tax-exempt income has been added back to the interest income total which, as adjusted, increased net interest income accordingly. Management believes the disclosure of tax-equivalent net interest income information improves the clarity of financial analysis, and is particularly useful to investors in understanding and evaluating the changes and trends in the Company's results of operations. Other financial institutions commonly present net interest income on a tax-equivalent basis. This adjustment is considered helpful in the comparison of one financial institution's net interest income to that of another institution, as each will have a different proportion of tax-exempt interest from its earning assets. Moreover, net interest income is a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average earning assets. For purposes of this measure as well, other financial institutions generally use tax-equivalent net interest income to provide a better basis of comparison from institution to institution. The Company follows these practices.


The following table provides a reconciliation of tax-equivalent financial information to the Company's consolidated financial statements, which have been prepared in accordance with GAAP. A 21.0% tax rate was used in both 2026 and 2025.




 






For the quarters ended








In thousands of dollars






3/31/2026






12/31/2025






3/31/2025








Net interest income as presented






$






20,689






$






21,111






$






17,799








Effect of tax-exempt income






 






663






 






701






 






711








Net interest income, tax equivalent






$






21,352






$






21,812






$






18,510







The Company presents its efficiency ratio using non-GAAP information which is most commonly used by financial institutions. The GAAP-based efficiency ratio is non-interest expenses divided by net interest income plus non-interest income from the Consolidated Statements of Income. The non-GAAP efficiency ratio excludes securities losses and provision for credit losses on securities from non-interest expenses, excludes securities gains from non-interest income, and adds the tax-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio:




 






For the quarters ended








In thousands of dollars






3/31/2026






12/31/2025






3/31/2025








Non-interest expense, as presented






$






13,616






 






$






13,131






 






$






12,844






 








Net interest income, as presented






 






20,689






 






 






21,111






 






 






17,799






 








Effect of tax-exempt interest income






 






663






 






 






701






 






 






711






 








Non-interest income, as presented






 






4,451






 






 






4,734






 






 






4,002






 








Effect of non-interest tax-exempt income






 






77






 






 






70






 






 






48






 








Net securities gains






 






(12






)






 






—






 






 






—






 








Adjusted net interest income plus non-interest income






$






25,868






 






$






26,616






 






$






22,560






 








Non-GAAP efficiency ratio






 






52.64






%






 






49.33






%






 






56.93






%








GAAP efficiency ratio






 






54.16






%






 






50.81






%






 






58.91






%







The Company presents certain information based upon tangible common equity instead of total shareholders' equity. The difference between these two measures is the Company's intangible assets, specifically goodwill from prior acquisitions. Management, banking regulators and many stock analysts use the tangible common equity ratio and the tangible book value per common share in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions. The following table provides a reconciliation of average tangible common equity to the Company's consolidated financial statements, which have been prepared in accordance with U.S. GAAP:




 






For the quarters ended








In thousands of dollars






3/31/2026






12/31/2025






3/31/2025








Average shareholders' equity as presented






$






288,560






 






$






268,059






 






$






257,807






 








Less intangible assets






 






(30,775






)






 






(30,791






)






 






(30,801






)








Tangible average shareholders' equity






$






257,785






 






$






237,268






 






$






227,006






 







To provide period-to-period comparison of operating results prior to consideration of credit loss provision and income taxes, the non-GAAP measure of PTPP Net Income is presented. The following table provides a reconciliation to Net Income:




 






For the quarters ended








In thousands of dollars






3/31/2026






12/31/2025






3/31/2025








Net Income, as presented






$






8,993






$






10,172






$






7,077








Add: credit loss expense






 






620






 






272






 






392








Add: income taxes






 






1,911






 






2,270






 






1,488








Pre-Tax, pre-provision net income






$






11,524






$






12,714






$






8,957







Forward-Looking and Cautionary Statements


Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission.


Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422888641/en/
The First Bancorp

Richard M. Elder, EVP, Chief Financial Officer

207-563-3195

rick.elder@thefirst.com


Original: The First Bancorp Announces First Quarter Results