FNLC · The First Bancorp, Inc.

The First Bancorp, Inc. delivered strong first quarter 2026 results, with net income rising 27.1% year-over-year to $9.0 million, or $0.80 per diluted share. This performance was primarily driven by a significant expansion in net interest margin (NIM), which improved 38 basis points from the prior year quarter to 2.86%. Management attributed the NIM expansion to a combination of enhanced yields on earning assets, particularly within the loan portfolio, and a 38 basis point reduction in the cost of total liabilities. Net interest income increased 16.2% to $20.7 million compared to the same period in 2025.

Non-interest income also contributed to growth, rising 11.2% to $4.5 million, led by higher Wealth Management revenue and other operating income. Operating efficiency continued to improve, with the non-GAAP efficiency ratio declining to 52.64% from 56.93% a year ago, despite a 6.0% increase in non-interest expenses due to salary adjustments and higher health insurance costs.

Balance sheet trends showed modest growth, with total assets increasing $34 million to $3.20 billion and net loan growth of $11 million. Asset quality metrics showed a slight uptick in non-performing assets to 0.51% of total assets from 0.19% a year ago, though the allowance for credit losses remained stable at 1.05% of total loans. The capital position strengthened, with the Leverage Capital ratio rising to an estimated 9.09%. The company maintained its quarterly dividend of $0.37 per share, paid on April 17, 2026.