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The First Bancorp Announces Second Quarter Results
Net Interest Margin Expansion and Improved Efficiency Lead to an 18.6% Increase in Second Quarter Earnings
DAMARISCOTTA, ME, July 22, 2026--(BUSINESS WIRE) --The First Bancorp (Nasdaq: FNLC), ("the Company", "we", "us", "our"), parent company of First National Bank, today reported unaudited results for the quarter and six months ended June 30, 2026. Net income for the second quarter was $9.6 million with fully diluted earnings per share of $0.85, increases of 18.6% and 17.8%, respectively, from net income of $8.1 million and diluted earnings per share of $0.72 for the quarter ended June 30, 2025. Strong earnings for the period were driven by sustained net interest margin expansion, enhanced non-interest income, and disciplined expense control. Year-to-date in 2026, net income was $18.6 million with fully diluted earnings per share of $1.65, increases of 22.5% and 21.7%, respectively, from net income of $15.1 million and earnings per share of $1.35 for the six months ended June 30, 2025.

Second Quarter Notable Items:
•Net Income of $9.6 million is an increase of 18.6% as compared to Q2 2025
•Diluted EPS of $0.85 is an increase of 17.8% from Q2 2025
•Net Interest Margin expanded to 2.88%, a 36-basis point increase from Q2 2025
•Loan growth in the period of $18.6 million
•Efficiency Ratio of 50.33%, improved from 52.39% in Q2 2025
•Tangible Book Value per share rose to $23.25, up 11.0% from Q2 2025
•Quarterly shareholder dividend increased to $0.38 per share

CEO COMMENTS
"I am pleased to report strong year-over-year earnings growth for the second quarter," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income of $9.6 million for the second quarter of 2026 represents an increase of 18.6% from the second quarter of 2025. Our Return on Average Assets for the period was 1.20% and our Return on Average Tangible Common Equity was 14.67%, both up nicely from 1.01% and 13.95%, respectively, a year ago."
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"Our net interest margin improved for the eighth consecutive quarter, to 2.88% for the second quarter of 2026, up 2 basis points in the period and up 36 basis points from the second quarter of 2025. Margin improvement has been focused in stable earning asset yields and reduced funding costs, propelling net interest income up 15.0% from the prior year quarter. Growth in non-interest income, notably wealth management and debit card revenue, was an additional catalyst for the bottom line. Overall revenue growth also drove an improvement in our efficiency ratio to 50.33% for the period as compared to 52.39% a year ago."
"Total assets increased $15 million in the quarter, including net loan growth of $19 million. New loan production for the quarter was $131 million, up modestly from the first quarter, as we focus upon pricing discipline and prudent underwriting of new credits. Total deposits increased $15 million in the period, with growth in short-term time deposits being partially offset by a decrease in non-maturity deposits. Non-maturity deposit outflow in the quarter was in line with seasonal patterns. We expect strong local deposit inflow through year-end based on these same patterns, allowing for reduction of higher-cost, short-term funding, helping to sustain margin expansion against recent rate pressure in the market. The Company's capital position is strong, and overall liquidity remains more than sufficient."
Concluding, Mr. McKim shared, "We are pleased with the strong operating results produced in the second quarter. As the credit environment and related credit costs normalize off of the extraordinary lows of the past few years, the Bank is well positioned and poised for continued growth."
OPERATING RESULTS Q2 2026 v. Q2 2025 (prior year quarter)
Net income was $9.6 million for the three months ended June 30, 2026, an increase of $1.5 million or 18.6% from the second quarter of 2025. Net interest income was $21.2 million for the three months ended June 30, 2026, an increase of $2.8 million or 15.0% from the second quarter of 2025. Net interest margin improved to 2.88% for the second quarter of 2026, up from 2.52% in the prior year quarter. The lift in margin was the result of stable yields on earning assets coupled with a 40-basis point decrease in the cost of total liabilities. Earning assets averaged a yield of 5.34% for the three months ended June 30, 2026, while total liabilities carried an average cost of 2.88%.
Total non-interest income was $4.7 million for the three months ended June 30, 2026, an increase of $532,000, or 12.9% from the second quarter of 2025. The increase was centered in Wealth Management revenue which was up $212,000 or 15.9% from the prior year on strong growth in assets under management. Debit card revenue increased $89,000 or 6.9%, while other operating income increased $211,000 or 28.2%. Total non-interest expense for the three months
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ended June 30, 2026, was $13.4 million, an increase of $1.2 million, or 9.7%, from the second quarter of 2025. The period-to-period change is centered in employee salaries and benefits, resulting from annual salary adjustments and higher health insurance expenses.
OPERATING RESULTS Q2 2026 v. Q1 2026 (linked quarter)
Net income was $9.6 million for the three months ended June 30, 2026, an increase of $567,000 or 6.3% from the first quarter of 2026. Net interest income of $21.2 million for the three months ended June 30, 2026, was an increase of $473,000 or 2.3% from the linked quarter, resulting from expansion in both average earning assets and net interest margin. Average earning assets grew $10.3 million in the second quarter, while net interest margin increased to 2.88%, an improvement of 2 basis points from the linked quarter.
Total non-interest income of $4.7 million for the second quarter of 2026 was up $210,000 from the first quarter of 2026. The increase was centered in Debit Card revenue, which was up $175,000 on strong transaction volume. Revenue increased $62,000 at First National Wealth Management, while other operating income fell $59,000, principally on lower loan-based derivative fees. Total non-interest expense for the three months ended June 30, 2026, was $13.4 million, a decrease of $239,000, or 1.8%, from the first quarter. As compared to the linked quarter, salaries and benefit expense fell $210,000 due to lower payroll taxes and higher deferred salaries, and occupancy expenses fell $120,000 attributable to lower seasonal costs for building maintenance and fuel.
LOANS, TOTAL ASSETS & FUNDING
Total assets as of June 30, 2026, were $3.22 billion, up $15.3 million in the second quarter. Earning assets grew $9.3 million with loan growth of $18.6 million during the period. Investment balances grew by $17.6 million in the quarter, while overnight funds sold decreased by $27.4 million.
Loan balances grew at an annualized rate of 3.10% in the second quarter. The residential mortgage and home equity loan segments each contributed to loan portfolio growth, up $12.0 million and $13.2 million, respectively, during the period. Commercial and industrial loan balances increased $1.0 million, while commercial real estate loan balances and multifamily loan balances decreased by $9.4 million and $10.6 million, respectively.
Total deposits as of June 30, 2026, were $2.68 billion, an increase of $15.1 million in the quarter. Non-maturity deposits fell $28.7 million in the second quarter, consistent with seasonal patterns, while time deposits, principally short-term, increased $43.9 million. Borrowed funds increased $18.3 million during the period, mostly in short-term FHLB advances. Uninsured deposits as of June 30, 2026, were estimated at 17.2% of total deposits, and 74% of uninsured deposits were
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fully collateralized. Available day-one liquidity was $706 million, sufficient to cover 153% of estimated uninsured deposits.
ASSET QUALITY
Overall asset quality remains satisfactory and was stable in the second quarter. As of June 30, 2026, the ratio of non-performing assets to total assets was 0.54%, up slightly from 0.51% as of March 31, 2026, and compared to 0.19% as of June 30, 2025. The ratio of non-performing loans to total loans was 0.71% as of June 30, 2026, up slightly from 0.67% as of March 31, 2026, and compared to 0.25% as of June 30, 2025. Loans past due thirty days or more improved to 0.93% of total loans as of June 30, 2026, down from 1.14% as of March 31, 2026.
The Allowance for Credit Losses ("ACL") on loans stood at 1.01% of total loans as of June 30, 2026, down slightly from the linked quarter and prior year quarter. A provision for credit losses of $919,000 was recorded in the second quarter of 2026. Net loan charge-offs in the second quarter totaled $1.6 million concentrated within a single credit relationship. Year-to-date, net charge-offs represent an annualized 0.20% of total loans.
CAPITAL
The Company’s regulatory capital position was strong as of June 30, 2026. The Leverage Capital ratio increased to an estimated 9.21% as of June 30, 2026, as compared to the 9.09% and 8.48% reported as of March 31, 2026, and as of June 30, 2025, respectively. The estimated Total Risk-Based Capital ratio was 14.24% as of June 30, 2026, as compared to the 14.05% and 13.31% reported as of March 31, 2026, and as of June 30, 2025, respectively.
The Company's tangible book value per share was $23.25 as of June 30, 2026, up from $22.71 as of March 31, 2026, and up from $20.94 as of June 30, 2025. The Tangible Common Equity ratio increased to 8.23% as of June 30, 2026, up from 8.08% as of March 31, 2026, and 7.41% as of June 30, 2025.
DIVIDEND
On June 25, 2026, the Company's Board of Directors declared a second quarter dividend of $0.38 per share. The dividend was paid on July 17, 2026, to shareholders of record as of July 7, 2026.


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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 $3.19 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.

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The First Bancorp
Selected Financial Data (Unaudited)
Dollars in thousands, except for per share amountsAs of and for the six months endedAs of and for the quarter ended
6/30/20266/30/20256/30/20266/30/2025
Financial Data
Total Assets$3,216,097 $3,199,510 $3,216,097 $3,199,510 
Total Loans2,423,711 2,394,007 2,423,711 2,394,007 
Total Investment Securities636,760 653,855 636,760 653,855 
Total Deposits2,679,778 2,705,337 2,679,778 2,705,337 
Total Shareholders’ Equity292,960 265,492 292,960 265,492 
Net Income18,553 15,140 9,560 8,063 
Per Common Share Data
Basic Earnings per Share$1.67 $1.37 $0.86 $0.73 
Diluted Earnings per Share1.65 1.35 0.85 0.72 
Cash Dividends Declared0.75 0.73 0.38 0.37 
Book Value per Common Share25.97 23.69 25.97 23.69 
Tangible Book Value per Common Share23.25 20.94 23.25 20.94 
Market Value34.82 25.41 34.82 25.41 
Financial Ratios
Return on Average Equity(1)
12.89 %11.73 %13.13 %12.31 %
Return on Average Tangible Common Equity(1)
14.41 %13.31 %14.67 %13.95 %
Return on Average Assets(1)
1.18 %0.96 %1.20 %1.01 %
Pre-tax, pre-provision Return on Assets(1)
1.52 %1.22 %1.56 %1.30 %
Net Interest Margin Tax-Equivalent(1)
2.87 %2.50 %2.88 %2.52 %
Dividend Payout Ratio44.94 %53.40 %44.19 %50.89 %
GAAP Efficiency Ratio52.97 %56.48 %51.80 %54.13 %
Efficiency Ratio (non-GAAP)51.47 %54.63 %50.33 %52.39 %
Asset Quality Ratios
Allowance for Credit Losses/Total Loans1.01 %1.04 %1.01 %1.04 %
Allowance to Non-Performing Loans141.87 %411.13 %141.87 %411.13 %
Non-Performing Loans to Total Loans0.71 %0.25 %0.71 %0.25 %
Non-Performing Assets to Total Assets0.54 %0.19 %0.54 %0.19 %
Capital Ratios
Leverage Capital Ratio(2)
9.21 %8.48 %9.21 %8.48 %
Tier 1 Capital Ratio(2)
13.11 %12.15 %13.11 %12.15 %
Total Capital Ratio(2)
14.24 %13.31 %14.24 %13.31 %
Tangible Common Equity Ratio8.23 %7.41 %8.23 %7.41 %
Average Equity to Average Assets9.13 %8.19 %9.16 %8.23 %
Average Tangible Equity to Average Assets8.16 %7.22 %8.19 %7.27 %
(1)Annualized using a 365-day basis for 2026 and 2025.
(2)Estimated for current period.
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The First Bancorp
Consolidated Balance Sheets (Unaudited)
In thousands of dollars, except per share data6/30/202612/31/20256/30/2025
Assets
Cash and due from banks$29,759 $27,779 $27,360 
Interest-bearing deposits in other banks2,715 4,124 3,253 
Securities available-for-sale276,032 264,480 278,248 
Securities held-to-maturity351,991 355,928 367,873 
Restricted equity securities, at cost8,737 8,275 7,734 
Loans held for sale190 — — 
Loans2,423,711 2,394,109 2,394,007 
Less allowance for credit losses24,555 25,365 24,829 
Net loans2,399,156 2,368,744 2,369,178 
Accrued interest receivable20,106 14,185 19,386 
Premises and equipment28,351 28,767 28,198 
Goodwill30,646 30,646 30,646 
Other assets68,414 63,375 67,634 
Total assets$3,216,097 $3,166,303 $3,199,510 
Liabilities
Demand deposits$282,691 $279,912 $291,150 
NOW deposits645,223 689,083 590,536 
Money market deposits422,077 469,689 388,214 
Savings deposits250,182 248,805 256,584 
Certificates of deposit765,298 638,931 774,521 
Certificates $100,000 to $250,000170,354 190,676 231,926 
Certificates $250,000 and over143,953 147,656 172,406 
Total deposits2,679,778 2,664,752 2,705,337 
Borrowed funds214,069 187,821 196,170 
Other liabilities29,290 30,587 32,511 
Total Liabilities2,923,137 2,883,160 2,934,018 
Shareholders' equity
Common stock113 112 112 
Additional paid-in capital74,829 73,714 72,795 
Retained earnings250,254 240,456 229,511 
Net unrealized loss on securities available-for-sale(32,444)(31,341)(37,237)
Net unrealized loss on transferred securities from available-for-sale to held-to-maturity(32)(38)(60)
Net unrealized gain on cash flow hedging derivative instruments— — 84 
Net unrealized gain on postretirement costs240 240 287 
Total shareholders' equity292,960 283,143 265,492 
Total liabilities & shareholders' equity$3,216,097 $3,166,303 $3,199,510 
Common Stock
Number of shares authorized18,000,000 18,000,000 18,000,000 
Number of shares issued and outstanding11,278,777 11,222,363 11,205,861 
Book value per common share$25.97 $25.23 $23.69 
Tangible book value per common share$23.25 $22.49 $20.94 
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The First Bancorp
Consolidated Statements of Income (Unaudited)
In thousands of dollars, except per share dataFor the six months endedFor the Quarters Ended
6/30/20266/30/20256/30/20266/30/2025
Interest income
Interest and fees on loans$70,079 $68,938 $35,354 $35,014 
Interest on deposits with other banks68 107 38 51 
Interest and dividends on investments8,831 9,489 4,447 4,760 
     Total interest income78,978 78,534 39,839 39,825 
Interest expense
Interest on deposits33,586 38,994 16,884 19,725 
Interest on borrowed funds3,541 3,332 1,793 1,691 
     Total interest expense37,127 42,326 18,677 21,416 
Net interest income41,851 36,208 21,162 18,409 
Credit loss expense - loans1,569 744 919 348 
Credit loss (reduction) expense - debt securities held to maturity(2)2 (1)1 
Credit loss (reduction) expense - off-balance sheet credit exposures(12)132 17 137 
     Total credit loss expense 1,555 878 935 486 
Net interest income after provision for credit losses40,296 35,330 20,227 17,923 
Non-interest income
Investment management and fiduciary income3,034 2,653 1,548 1,336 
Service charges on deposit accounts1,145 1,070 585 539 
Net securities gains 12 — — — 
Mortgage origination and servicing income371 416 195 221 
Debit card income2,575 2,456 1,375 1,286 
Other operating income1,975 1,536 958 747 
     Total non-interest income9,112 8,131 2,059 4,129 
Non-interest expense
Salaries and employee benefits14,450 13,126 7,120 6,276 
Occupancy expense1,792 1,753 836 876 
Furniture and equipment expense2,997 2,900 1,454 1,438 
FDIC insurance premiums1,174 1,395 604 701 
Amortization of identified intangibles13 13 6 6 
Other operating expense6,567 5,856 3,357 2,902 
     Total non-interest expense26,993 25,043 13,377 12,199 
Income before income taxes22,415 18,418 11,511 9,853 
Applicable income taxes3,862 3,278 1,951 1,790 
Net Income$18,553 $15,140 $9,560 $8,063 
Basic earnings per share$1.67 $1.37 $0.86 $0.73 
Diluted earnings per share$1.65 $1.35 $0.85 $0.72 
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The First Bancorp
Five Quarter Trend - Selected Financial Data (Unaudited)
At or for the quarters ended
Dollars in thousands, except for per share amounts6/30/20263/31/202612/31/20259/30/20256/30/2025
Financial Data
Total Assets$3,216,097 $3,200,763 $3,166,303 $3,198,478 $3,199,510 
Total Loans2,423,711 2,405,149 2,394,109 2,398,510 2,394,007 
Total Investment Securities636,760 619,159 628,683 642,961 653,855 
Total Deposits2,679,778 2,664,643 2,664,752 2,737,550 2,705,337 
Total Shareholders’ Equity292,960 286,784 283,143 274,566 265,492 
Net Income9,560 8,993 10,172 9,082 8,063 
Per Common Share Data
Basic Earnings per Share$0.86 $0.81 $0.92 $0.82 $0.73 
Diluted Earnings per Share0.85 0.80 0.91 0.81 0.72 
Cash Dividends Declared0.38 0.37 0.37 0.37 0.37 
Book Value per Common Share25.97 25.44 25.23 24.48 23.69 
Tangible Book Value per Common Share23.25 22.71 22.49 21.74 20.94 
Market Value34.82 28.03 26.44 26.26 25.41 
Financial Ratios
Return on Average Equity(1)
13.13 %12.64 %14.35 %13.33 %12.31 %
Return on Average Tangible Common Equity(1)
14.67 %14.15 %16.12 %15.04 %13.95 %
Return on Average Assets(1)
1.20 %1.15 %1.26 %1.13 %1.01 %
Pre-tax, pre-provision Return on Assets(1)
1.56 %1.47 %1.58 %1.46 %1.30 %
Net Interest Margin Tax-Equivalent(1)
2.88 %2.86 %2.83 %2.70 %2.52 %
Dividend Payout Ratio44.19 %45.74 %40.39 %45.18 %50.89 %
GAAP Efficiency Ratio51.80 %54.16 %50.81 %51.99 %54.13 %
Efficiency Ratio (non-GAAP)50.33 %52.64 %49.33 %50.40 %52.39 %
Asset Quality Ratios
Allowance for Credit Losses/Total Loans1.01 %1.05 %1.06 %1.05 %1.04 %
Allowance to Non-Performing Loans141.87 %155.73 %196.95 %261.36 %411.13 %
Non-Performing Loans to Total Loans0.71 %0.67 %0.54 %0.40 %0.25 %
Non-Performing Assets to Total Assets0.54 %0.51 %0.41 %0.30 %0.19 %
Capital Ratios
Leverage Capital Ratio(2)
9.21 %9.09 %8.84 %8.63 %8.48 %
Tier 1 Capital Ratio(2)
13.11 %12.89 %12.84 %12.39 %12.15 %
Total Capital Ratio(2)
14.24 %14.05 %14.02 %13.56 %13.31 %
Tangible Common Equity Ratio8.23 %8.08 %8.05 %7.70 %7.41 %
Average Equity to Average Assets9.16 %9.10 %8.78 %8.45 %8.23 %
Average Tangible Equity to Average Assets8.19 %8.13 %7.82 %7.49 %7.27 %
(1)Annualized using a 365-day basis for 2026 and 2025.
(2)Estimated for current period.

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The First Bancorp
Five Quarter Trend - Consolidated Balance Sheets (Unaudited)
In thousands of dollars, except per share data6/30/20263/31/202612/31/20259/30/20256/30/2025
Assets
Cash and due from banks$29,759 $23,607 $27,779 $31,606 $27,360 
Interest-bearing deposits in other banks2,715 30,075 4,124 7,225 3,253 
Securities available-for-sale276,032 256,788 264,480 273,493 278,248 
Securities held-to-maturity351,991 354,057 355,928 362,552 367,873 
Restricted equity securities, at cost8,737 8,314 8,275 6,916 7,734 
Loans held for sale190 — — 333 — 
Loans2,423,711 2,405,149 2,394,109 2,398,510 2,394,007 
Less allowance for credit losses24,555 25,209 25,365 25,078 24,829 
Net loans2,399,156 2,379,940 2,368,744 2,373,432 2,369,178 
Accrued interest receivable20,106 19,247 14,185 16,256 19,386 
Premises and equipment28,351 28,720 28,767 27,919 28,198 
Goodwill30,646 30,646 30,646 30,646 30,646 
Other assets68,414 69,369 63,375 68,100 67,634 
Total assets$3,216,097 $3,200,763 $3,166,303 $3,198,478 $3,199,510 
Liabilities
Demand deposits$282,691 $268,100 $279,912 $313,729 $291,150 
NOW deposits645,223 660,511 689,083 638,090 590,536 
Money market deposits422,077 453,210 469,689 458,398 388,214 
Savings deposits250,182 247,084 248,805 255,806 256,584 
Certificates of deposit765,298 699,635 638,931 688,001 774,521 
Certificates $100,000 to $250,000170,354 184,486 190,676 210,741 231,926 
Certificates $250,000 and over143,953 151,617 147,656 172,785 172,406 
Total deposits2,679,778 2,664,643 2,664,752 2,737,550 2,705,337 
Borrowed funds214,069 195,796 187,821 152,968 196,170 
Other liabilities29,290 53,540 30,587 33,394 32,511 
Total Liabilities2,923,137 2,913,979 2,883,160 2,923,912 2,934,018 
Shareholders' equity
Common stock113 113 112 112 112 
Additional paid-in capital74,829 74,255 73,714 73,276 72,795 
Retained earnings250,254 245,001 240,456 234,435 229,511 
Net unrealized loss on securities available-for-sale(32,444)(32,790)(31,341)(33,523)(37,237)
Net unrealized loss on transferred securities from available-for-sale to held-to-maturity(32)(35)(38)(40)(60)
Net unrealized gain on cash flow hedging derivative instruments— — — 19 84 
Net unrealized gain on postretirement costs240 240 240 287 287 
Total shareholders' equity292,960 286,784 283,143 274,566 265,492 
Total liabilities & shareholders' equity$3,216,097 $3,200,763 $3,166,303 $3,198,478 $3,199,510 
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Common Stock
Number of shares authorized18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 
Number of shares issued and outstanding11,278,777 11,271,014 11,222,363 11,214,455 11,205,861 
Book value per common share$25.97 $25.44 $25.23 $24.48 $23.69 
Tangible book value per common share$23.25 $22.71 $22.49 $21.74 $20.94 
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The First Bancorp
Five Quarter Trend - Consolidated Statements of Income (Unaudited)
For the Quarters Ended
In thousands of dollars, except per share data6/30/20263/31/202612/31/20259/30/20256/30/2025
Interest income
Interest and fees on loans$35,354 $34,725 $36,025 $36,197 $35,014 
Interest on deposits with other banks38 30 185 108 51 
Interest and dividends on investments4,447 4,384 4,522 4,700 4,760 
     Total interest income39,839 39,139 40,732 41,005 39,825 
Interest expense
Interest on deposits16,884 16,702 18,323 19,380 19,725 
Interest on borrowed funds1,793 1,748 1,298 1,567 1,691 
     Total interest expense18,677 18,450 19,621 20,947 21,416 
Net interest income21,162 20,689 21,111 20,058 18,409 
Credit loss expense - loans919 650 615 690 348 
Credit loss (reduction) expense - debt securities held to maturity(1)(1)(40)(12)1 
Credit loss expense (reduction) - off-balance sheet credit exposures17 (29)(303)22 137 
     Total credit loss expense 935 620 272 700 486 
Net interest income after provision for credit losses20,227 20,069 20,839 19,358 17,923 
Non-interest income
Investment management and fiduciary income1,548 1,486 1,433 1,341 1,336 
Service charges on deposit accounts585 560 559 532 539 
Net securities gains — 12 — — — 
Mortgage origination and servicing income195 176 211 219 221 
Debit card income1,375 1,200 1,596 1,403 1,286 
Other operating income958 1,017 935 980 747 
     Total non-interest income4,661 4,451 4,734 4,475 4,129 
Non-interest expense
Salaries and employee benefits7,120 7,330 7,198 6,674 6,276 
Occupancy expense836 956 827 814 876 
Furniture and equipment expense1,454 1,543 1,487 1,491 1,438 
FDIC insurance premiums604 570 629 698 701 
Amortization of identified intangibles6 7 6 7 6 
Other operating expense3,357 3,210 2,984 3,070 2,902 
     Total non-interest expense13,377 13,616 13,131 12,754 12,199 
Income before income taxes11,511 10,904 12,442 11,079 9,853 
Applicable income taxes1,951 1,911 2,270 1,997 1,790 
Net Income$9,560 $8,993 $10,172 $9,082 $8,063 
Basic earnings per share$0.86 $0.81 $0.92 $0.82 $0.73 
Diluted earnings per share$0.85 $0.80 $0.91 $0.81 $0.72 

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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 six months endedFor the quarters ended
In thousands of dollars6/30/20266/30/20256/30/20263/31/20266/30/2025
Net interest income as presented$41,851 $36,208 $21,162 $20,689 $18,409 
Effect of tax-exempt income1,337 1,409 674 663 698 
Net interest income, tax equivalent$43,188 $37,617 $21,836 $21,352 $19,107 
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-
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equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio:
 For the six months endedFor the quarters ended
In thousands of dollars6/30/20266/30/20256/30/20263/31/20266/30/2025
Non-interest expense, as presented$26,993 $25,043 $13,377 $13,616 $12,199 
Net interest income, as presented41,851 36,208 21,162 20,689 18,409 
Effect of tax-exempt interest income1,337 1,409 674 663 698 
Non-interest income, as presented9,112 8,131 4,661 4,451 4,129 
Effect of non-interest tax-exempt income157 96 80 77 48 
Net securities gains(12)— — (12)— 
Adjusted net interest income plus non-interest income$52,445 $45,844 $26,577 $25,868 $23,284 
Non-GAAP efficiency ratio51.47 %54.63 %50.33 %52.64 %52.39 %
GAAP efficiency ratio52.97 %56.48 %51.80 %54.16 %54.13 %
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 six months endedFor the quarters ended
In thousands of dollars6/30/20266/30/20256/30/20263/31/20266/30/2025
Average shareholders' equity as presented$290,332 $260,248 $292,085 $288,561 $262,663 
Less intangible assets(30,771)(30,798)(30,775)(30,775)(30,801)
Tangible average shareholders' equity$259,561 $229,450 $261,310 $257,786 $231,862 
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 six months endedFor the quarters ended
In thousands of dollars6/30/20266/30/20256/30/20263/31/20266/30/2025
Net Income, as presented$18,553 $15,140 $9,560 $8,993 $8,063 
Add: credit loss expense1,555 878 935 620 486 
Add: income taxes3,862 3,278 1,951 1,911 1,790 
Pre-Tax, pre-provision net income$23,970 $19,296 $12,446 $11,524 $10,339 




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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
Source: The First Bancorp

The First Bancorp
Richard M. Elder, EVP, Chief Financial Officer
207-563-3195
rick.elder@thefirst.com

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