The First Bancorp (FNLC) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $7.1M, up 17.5% year-over-year; diluted EPS rose 17.0% to $0.63 per share.

• Net interest income (tax-equivalent) increased 19.0% to $18.5M; net interest margin rose to 2.48% from 2.22%.

• Non-interest income grew 9.9% to $4.0M, while non-interest expense increased 9.2% to $12.8M.

• Asset quality remained strong; non-performing assets were 0.19% of total assets, and total past-due loans were 0.33% of total loans.

• Total assets reached $3.19B, up 1.0% year-to-date; loan portfolio grew 1.8% sequentially and 9.6% year-over-year.

Financial highlights

• Total interest income for Q1 2025 was $38.7M, up 10.6% year-over-year; all growth from loans.

• Total interest expense rose 4.0% to $20.9M, mainly due to higher FHLB funding costs.

• Net charge-offs were $153K (0.026% of average loans annualized), compared to net recoveries of $78K in Q1 2024.

• Allowance for credit losses (ACL) on loans increased $243K to $25.1M (1.05% of loans), down from 1.11% a year ago.

• Dividend payout ratio was 56.34% for Q1 2025; $0.36 per share declared.

Outlook and guidance

• Management expects to remain well capitalized and maintain strong asset quality.

• Interest rate risk modeling projects net interest income would increase 2.8% if rates fall 2%, and decrease 4.4% if rates rise 2% over the next year; all scenarios within policy limits.

• The Bank's capital plan projects well-capitalized status under base and stress scenarios for the next five years.