The First Bancorp (FNLC) Q4 2025 earnings summary

Executive summary

• Net income for 2025 was $34.4 million, up 27.2% from 2024, with EPS rising to $3.07 from $2.43 year-over-year.

• Net interest margin expanded to 2.63% in 2025, driven by growth in lower-cost deposits and reduced wholesale funding.

• Total assets grew 0.3% to $3.166 billion; loan portfolio increased 2.3% to $2.394 billion; investment portfolio declined 3.5%.

• Asset quality remained strong, with non-performing loans at 0.54% of total loans and net charge-offs at 0.07% of average loans.

• Capital ratios improved, with a total risk-based capital ratio of 14.02%, well above regulatory requirements.

Financial highlights

• Net interest income (tax-equivalent) rose 20.3% to $80.2 million; total interest income increased 7.7% to $163.1 million.

• Interest expense decreased 2.4% to $82.9 million, aided by lower market rates and deposit growth.

• Non-interest income grew 6.0% to $17.3 million, led by a 9.3% increase in wealth management revenue.

• Non-interest expense rose 8.0% to $50.9 million, mainly due to higher salaries, benefits, and FDIC premiums.

• Provision for credit losses on loans was $2.0 million, up from $1.3 million in 2024.

• Return on average assets was 1.08%; return on average tangible common equity was 14.50%.

• Dividend payout ratio was 47.39%, with $1.47 per share paid in 2025.

Outlook and guidance

• Management expects interest rates to remain flat or decrease slightly in the next year.

• Interest rate risk is considered well-managed, with simulation models projecting net interest income changes within policy limits under various rate scenarios.

• The company plans to continue its policy of regular quarterly dividends, subject to board discretion and regulatory capital requirements.