The First Bancorp (FNLC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $9.0 million, up 27.1% year-over-year; diluted EPS rose to $0.80, up 26.8% from Q1 2025.

• Return on average assets rose to 1.15% and return on average tangible common equity to 14.15%, both higher than a year ago.

• Earnings growth was driven by net interest margin expansion, higher non-interest revenue, and controlled expenses.

• Dividend payout ratio was 45.7% of basic EPS, with $0.37 per share declared year-to-date.

• Total assets grew 1.1% year-to-date to $3.20 billion.

Financial highlights

• Net interest income (tax-equivalent) rose 15.4% to $21.4 million; net interest margin improved to 2.86% from 2.48%.

• Non-interest income increased 11.2% to $4.5 million, driven by wealth management and other operating income.

• Non-interest expense rose 6.0% to $13.6 million, mainly due to higher salaries and benefits.

• Provision for credit losses on loans was $650,000, up from $396,000 in Q1 2025.

• Total deposits were $2.66 billion, unchanged from year-end 2025.

Outlook and guidance

• Interest rate risk modeling projects net interest income would increase 3.1% if rates fall by 2%, and decrease 2.4% if rates rise by 2% over the next year.

• Management expects to continue building on earnings momentum into 2026, focusing on customer experience and stakeholder value.

• The company remains well capitalized, with a total risk-based capital ratio of 14.05%.