The First Bancorp Announces Third Quarter Results
DAMARISCOTTA, Maine--( 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 nine months ended September 30, 2026. Net income for the third quarter was $10.7 million with fully diluted earnings per share of $0.95, increases of 17.5% and 16.8%, respectively, from net income of $9.1 million and diluted earnings per share of $0.81 for the quarter ended September 30, 2025. Strong earnings for the period were driven by growth in earning assets, continued net interest margin expansion, enhanced non-interest income, and disciplined expense control. Year-to-date in 2026, net income stands at $29.2 million with fully diluted earnings per share of $2.59, increases of 20.7% and 19.9%, respectively, from net income of $24.2 million and earnings per share of $2.16 for the nine months ended September 30, 2025.
Third Quarter Notable Items:
CEO COMMENTS
"I am pleased to report another quarter of strong year-over-year earnings growth," commented Tony C. McKim, the Company's President and Chief Executive Officer. "Net income of $10.7 million for the third quarter of 2026 represents an increase of 17.5% from the third quarter of 2025, and is a new quarterly record for The First Bancorp. Our Return on Average Assets for the period was 1.31% and our Return on Average Tangible Common Equity was 15.99%, both up nicely from 1.13% and 15.04%, respectively, a year ago."
"Our net interest margin improved for the ninth consecutive quarter, to 2.99% in the third quarter of 2026, up 11-basis points in the period and up 29-basis points from the third quarter of 2025. Margin expansion has been organic, driven by lower funding costs and supported by stable earning asset yields, which coupled with earning asset growth to produce a 12.2% lift in net interest income from the prior year quarter, and has driven a 14.4% increase year-to-date in 2026. Growth in non-interest income, notably wealth management, payments, and other operating revenue, was an additional catalyst for the bottom line. Revenue growth coupled with controlled operating expenses drove an improvement in our efficiency ratio to 47.94% for the period as compared to 50.40% a year ago."
"Total assets increased $35.7 million in the quarter, including net loan growth of $17.8 million. New loan production for the quarter was $180 million, up nearly $50 million from the second quarter. Total deposits increased $106.9 million in the period, with strong growth in non-maturity deposits leading to planned reductions in short-term time deposits and borrowings. We expect local deposit volumes to remain steady through year-end and have taken calculated steps throughout the year to protect margin gains from recent rate pressure in the market. The Company's capital position is strong, and overall liquidity continues to be more than sufficient."
Concluding, Mr. McKim shared, "We are pleased with the strong operating results produced in the third quarter. We were also pleased with asset quality improvements brought about through the resolution of several non-performing credits during the period. Our footings are solid and the Bank is well positioned to seize upon opportunities that become available."
OPERATING RESULTS Q3 2026 v. Q3 2025 (prior year quarter)
Net income was $10.7 million for the three months ended September 30, 2026, an increase of $1.6 million, or 17.5%, from the third quarter of 2025. Net interest income was $22.5 million for the three months ended September 30, 2026, an increase of $2.4 million, or 12.2%, from the third quarter of 2025. Net interest margin improved to 2.99% for the third quarter of 2026, up from 2.70% in the prior year quarter. The lift in margin was the result of stable yields on earning assets coupled with a 32-basis point decrease in the cost of total liabilities.
Total non-interest income was $5.0 million for the three months ended September 30, 2026, an increase of $503,000, or 11.2%, from the third quarter of 2025. Revenue at First National Wealth Management increased $119,000, or 8.9%, from the prior year period on strong growth in assets under management. Payments revenue increased $87,000, or 6.2%, while other operating income increased $263,000, or 26.8%, principally from derivative fees on new loan transactions. Total non-interest expense for the three months ended September 30, 2026, was $13.5 million, an increase of $795,000, or 6.2%, from the third quarter of 2025. The period-to-period change is centered in employee salaries and benefits, resulting primarily from annual salary adjustments and higher health insurance expenses.
OPERATING RESULTS Q3 2026 v. Q2 2026 (linked quarter)
Net income was $10.7 million for the three months ended September 30, 2026, an increase of $1.1 million or 11.6% from the second quarter of 2026. Net interest income of $22.5 million for the three months ended September 30, 2026, was an increase of $1.3 million or 6.3% from the linked quarter, resulting from expansion in both average earning assets and net interest margin. Average earning assets grew $14.8 million in the third quarter, while net interest margin increased to 2.99%, an improvement of 11-basis points from the linked quarter.
Total non-interest income of $5.0 million for the third quarter of 2026 was up $317,000 from the second quarter of 2026. The increase was centered in payments revenue, which grew $115,000 on strong transaction volume, and other operating income which increased $285,000, principally on higher loan-based derivative fees. Total non-interest expense for the three months ended September 30, 2026, was $13.5 million, an increase of $172,000, or 1.3%, from the second quarter. As compared to the linked quarter, salaries and benefit expense increased $234,000 due to seasonal hiring activity and furniture & equipment expense increased $104,000, while other operating expenses fell $174,000.
LOANS, TOTAL ASSETS & FUNDING
Total assets as of September 30, 2026, were $3.25 billion, up $35.7 million in the third quarter. Earning assets increased $24.7 million consisting of $17.8 million in loan growth and $6.3 million growth in investments during the period.
Loan growth in the third quarter was centered in commercial and industrial loan balances which increased $11.1 million. Also contributing to growth were the agricultural loan and residential mortgage loan segments, up $3.2 million and $2.5 million, respectively, during the period. Commercial real estate loan balances increased $2.5 million while multifamily balances fell $1.9 million. The annualized growth rate for the portfolio as a whole was 2.92%.
Total deposits as of September 30, 2026, were $2.79 billion, an increase of $106.9 million in the quarter. Non-maturity deposits had strong growth, up $139.7 million in the third quarter, and consistent with seasonal expectations. The increase in non-maturity deposits allowed for reductions in non-local, short-term time deposits and borrowed funds. Time deposit balances were reduced by $32.8 million and borrowings, principally short-term FHLB advances, were reduced by $69.2 million during the period. Uninsured deposits as of September 30, 2026, were estimated at 18.4% of total deposits, and 74% of uninsured deposits were fully collateralized. Available day-one liquidity was $763 million, sufficient to cover 149% of estimated uninsured deposits.
ASSET QUALITY
Overall asset quality remains satisfactory and improved in the third quarter. As of September 30, 2026, the ratio of non-performing assets to total assets was 0.44%, down from 0.54% as of June 30, 2026, and compares to 0.30% as of September 30, 2025. The ratio of non-performing loans to total loans was 0.58% as of September 30, 2026, down from 0.71% as of June 30, 2026, and compares to 0.40% as of September 30, 2025. Loans past due thirty days or more improved to 0.67% of total loans as of September 30, 2026, down from 0.93% as of June 30, 2026.
The Allowance for Credit Losses ("ACL") on loans stood at 0.98% of total loans as of September 30, 2026. ACL coverage was down modestly from the linked quarter and prior year quarter, resulting from resolution during the period of several non-performing loans that had carried specific reserves. A provision for credit losses of $845,000 was recorded in the third quarter of 2026, and net loan charge-offs in the third quarter totaled $1.6 million. Year-to-date, net charge-offs represent an annualized 0.22% of total loans.
CAPITAL
The Company’s regulatory capital position was strong as of September 30, 2026. The Leverage Capital ratio increased to an estimated 9.29% as of September 30, 2026, as compared to the 9.21% and 8.63% reported as of June 30, 2026, and as of September 30, 2025, respectively. The estimated Total Risk-Based Capital ratio was 14.27% as of September 30, 2026, as compared to the 14.23% and 13.56% reported as of June 30, 2026, and as of September 30, 2025, respectively.
The Company's tangible book value per share was $22.81 as of September 30, 2026, down from $23.25 as of June 30, 2026, and up from $21.74 as of September 30, 2025. The Tangible Common Equity ratio stood at 7.99% as of September 30, 2026, down from 8.23% as of June 30, 2026, and up from 7.70% as of September 30, 2025. The modest linked quarter decreases in tangible book value per share and tangible common equity ratio are attributable to an increase in unrealized losses on available for sale investment securities, consistent with market changes in interest rates during the quarter.
DIVIDEND
On September 24, 2026, the Company's Board of Directors declared a third quarter dividend of $0.38 per share. The dividend was paid on October 16, 2026, to shareholders of record as of October 6, 2026.
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 $3.22 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.
The First Bancorp
Selected Financial Data (Unaudited)
Dollars in thousands, except for per share amounts
As of and for the nine months ended
As of and for the quarter ended
9/30/2026
9/30/2025
9/30/2026
9/30/2025
Financial Data
Total Assets
$
3,251,783
$
3,198,478
$
3,251,783
$
3,198,478
Total Loans
2,441,559
2,398,510
2,441,559
2,398,510
Total Investment Securities
643,085
642,961
643,085
642,961
Total Deposits
2,786,672
2,737,550
2,786,672
2,737,550
Total Shareholders’ Equity
288,149
274,566
288,149
274,566
Net Income
29,224
24,222
10,671
9,082
Per Common Share Data
Basic Earnings per Share
$
2.63
$
2.19
$
0.96
$
0.82
Diluted Earnings per Share
2.59
2.16
0.95
0.81
Cash Dividends Declared
1.13
1.10
0.38
0.37
Book Value per Common Share
25.53
24.48
25.53
24.48
Tangible Book Value per Common Share
22.81
21.74
22.81
21.74
Market Value
33.34
26.26
33.34
26.26
Financial Ratios
Return on Average Equity (1)
13.38
%
12.28
%
14.33
%
13.33
%
Return on Average Tangible Common Equity (1)
14.95
%
13.91
%
15.99
%
15.04
%
Return on Average Assets (1)
1.22
%
1.02
%
1.31
%
1.13
%
Pre-tax, pre-provision Return on Assets (1)
1.58
%
1.30
%
1.71
%
1.46
%
Net Interest Margin Tax-Equivalent (1)
2.91
%
2.57
%
2.99
%
2.70
%
Dividend Payout Ratio
43.00
%
50.34
%
39.62
%
45.18
%
GAAP Efficiency Ratio
51.68
%
54.88
%
49.31
%
51.99
%
Efficiency Ratio (non-GAAP)
50.23
%
53.12
%
47.94
%
50.40
%
Asset Quality Ratios
Allowance for Credit Losses/Total Loans
0.98
%
1.05
%
0.98
%
1.05
%
Allowance to Non-Performing Loans
167.70
%
261.36
%
167.70
%
261.36
%
Non-Performing Loans to Total Loans
0.58
%
0.40
%
0.58
%
0.40
%
Non-Performing Assets to Total Assets
0.44
%
0.30
%
0.44
%
0.30
%
Capital Ratios
Leverage Capital Ratio (2)
9.29
%
8.63
%
9.29
%
8.63
%
Tier 1 Capital Ratio (2)
13.19
%
12.39
%
13.19
%
12.39
%
Total Capital Ratio (2)
14.27
%
13.56
%
14.27
%
13.56
%
Tangible Common Equity Ratio
7.99
%
7.70
%
7.99
%
7.70
%
Average Equity to Average Assets
9.13
%
8.28
%
9.14
%
8.45
%
Average Tangible Equity to Average Assets
8.17
%
7.31
%
8.19
%
7.49
%
(1)Annualized using a 365-day basis for 2026 and 2025.
(2)Estimated for current period.
The First Bancorp
Consolidated Balance Sheets (Unaudited)
In thousands of dollars, except per share data
9/30/2026
12/31/2025
9/30/2025
Assets
Cash and due from banks
$
32,117
$
27,779
$
31,606
Interest-bearing deposits in other banks
2,871
4,124
7,225
Securities available-for-sale
282,792
264,480
273,493
Securities held-to-maturity
352,535
355,928
362,552
Restricted equity securities, at cost
7,758
8,275
6,916
Loans held for sale
284
—
333
Loans
2,441,559
2,394,109
2,398,510
Less allowance for credit losses
23,814
25,365
25,078
Net loans
2,417,745
2,368,744
2,373,432
Accrued interest receivable
17,051
14,185
16,256
Premises and equipment
28,283
28,767
27,919
Other real estate owned
30
—
—
Goodwill
30,646
30,646
30,646
Other assets
79,671
63,375
68,100
Total assets
$
3,251,783
$
3,166,303
$
3,198,478
Liabilities
Demand deposits
$
316,825
$
279,912
$
313,729
NOW deposits
712,583
689,083
638,090
Money market deposits
459,129
469,689
458,398
Savings deposits
251,295
248,805
255,806
Certificates of deposit
695,235
638,931
688,001
Certificates $100,000 to $250,000
187,607
190,676
210,741
Certificates $250,000 and over
163,998
147,656
172,785
Total deposits
2,786,672
2,664,752
2,737,550
Borrowed funds
144,882
187,821
152,968
Other liabilities
32,080
30,587
33,394
Total Liabilities
2,963,634
2,883,160
2,923,912
Shareholders' equity
Common stock
113
112
112
Additional paid-in capital
75,327
73,714
73,276
Retained earnings
256,610
240,456
234,435
Net unrealized loss on securities available-for-sale
(44,110
)
(31,341
)
(33,523
)
Net unrealized loss on transferred securities from available-for-sale to held-to-maturity
(31
)
(38
)
(40
)
Net unrealized gain on cash flow hedging derivative instruments
—
—
19
Net unrealized gain on postretirement costs
240
240
287
Total shareholders' equity
288,149
283,143
274,566
Total liabilities & shareholders' equity
$
3,251,783
$
3,166,303
$
3,198,478
Common Stock
Number of shares authorized
18,000,000
18,000,000
18,000,000
Number of shares issued and outstanding
11,285,552
11,222,363
11,214,455
Book value per common share
$
25.53
$
25.23
$
24.48
Tangible book value per common share
$
22.81
$
22.49
$
21.74
The First Bancorp
Consolidated Statements of Income (Unaudited)
In thousands of dollars, except per share data
For the nine months ended
For the Quarters Ended
9/30/2026
9/30/2025
9/30/2026
9/30/2025
Interest income
Interest and fees on loans
$
106,663
$
105,135
$
36,584
$
36,197
Interest on deposits with other banks
100
215
32
108
Interest and dividends on investments
13,690
14,189
4,859
4,700
Total interest income
120,453
119,539
41,475
41,005
Interest expense
Interest on deposits
50,757
58,374
17,171
19,380
Interest on borrowed funds
5,344
4,899
1,803
1,567
Total interest expense
56,101
63,273
18,974
20,947
Net interest income
64,352
56,266
22,501
20,058
Credit loss expense - loans
2,414
1,434
845
690
Credit loss expense (reduction) - debt securities held to maturity
4
(10
)
6
(12
)
Credit loss expense - off-balance sheet credit exposures
116
154
128
22
Total credit loss expense
2,534
1,578
979
700
Net interest income after provision for credit losses
61,818
54,688
21,522
19,358
Non-interest income
Investment management and fiduciary income
4,494
3,994
1,460
1,341
Service charges on deposit accounts
1,698
1,602
553
532
Net securities gains
12
—
—
—
Mortgage origination and servicing income
603
635
232
219
Debit card income
4,065
3,859
1,490
1,403
Other operating income
3,218
2,516
1,243
980
Total non-interest income
14,090
12,606
4,978
4,475
Non-interest expense
Salaries and employee benefits
21,804
19,800
7,354
6,674
Occupancy expense
2,610
2,567
818
814
Furniture and equipment expense
4,555
4,391
1,558
1,491
FDIC insurance premiums
1,803
2,093
629
698
Amortization of identified intangibles
20
20
7
7
Other operating expense
9,750
8,926
3,183
3,070
Total non-interest expense
40,542
37,797
13,549
12,754
Income before income taxes
35,366
29,497
12,951
11,079
Applicable income taxes
6,142
5,275
2,280
1,997
Net Income
$
29,224
$
24,222
$
10,671
$
9,082
Basic earnings per share
$
2.63
$
2.19
$
0.96
$
0.82
Diluted earnings per share
$
2.59
$
2.16
$
0.95
$
0.81
The First Bancorp
Five Quarter Trend - Selected Financial Data (Unaudited)
At or for the quarters ended
Dollars in thousands, except for per share amounts
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
Financial Data
Total Assets
$
3,251,783
$
3,216,097
$
3,200,763
$
3,166,303
$
3,198,478
Total Loans
2,441,559
2,423,711
2,405,149
2,394,109
2,398,510
Total Investment Securities
643,085
636,760
619,159
628,683
642,961
Total Deposits
2,786,672
2,679,778
2,664,643
2,664,752
2,737,550
Total Shareholders’ Equity
288,149
292,960
286,784
283,143
274,566
Net Income
10,671
9,560
8,993
10,172
9,082
Per Common Share Data
Basic Earnings per Share
$
0.96
$
0.86
$
0.81
$
0.92
$
0.82
Diluted Earnings per Share
0.95
0.85
0.80
0.91
0.81
Cash Dividends Declared
0.38
0.38
0.37
0.37
0.37
Book Value per Common Share
25.53
25.97
25.44
25.23
24.48
Tangible Book Value per Common Share
22.81
23.25
22.71
22.49
21.74
Market Value
33.34
34.82
28.03
26.44
26.26
Financial Ratios
Return on Average Equity (1)
14.33
%
13.13
%
12.64
%
14.35
%
13.33
%
Return on Average Tangible Common Equity (1)
15.99
%
14.67
%
14.15
%
16.12
%
15.04
%
Return on Average Assets (1)
1.31
%
1.20
%
1.15
%
1.26
%
1.13
%
Pre-tax, pre-provision Return on Assets (1)
1.71
%
1.56
%
1.47
%
1.58
%
1.46
%
Net Interest Margin Tax-Equivalent (1)
2.99
%
2.88
%
2.86
%
2.83
%
2.70
%
Dividend Payout Ratio
39.62
%
44.19
%
45.74
%
40.39
%
45.18
%
GAAP Efficiency Ratio
49.31
%
51.80
%
54.16
%
50.81
%
51.99
%
Efficiency Ratio (non-GAAP)
47.94
%
50.33
%
52.64
%
49.33
%
50.40
%
Asset Quality Ratios
Allowance for Credit Losses/Total Loans
0.98
%
1.01
%
1.05
%
1.06
%
1.05
%
Allowance to Non-Performing Loans
167.70
%
141.87
%
155.73
%
196.95
%
261.36
%
Non-Performing Loans to Total Loans
0.58
%
0.71
%
0.67
%
0.54
%
0.40
%
Non-Performing Assets to Total Assets
0.44
%
0.54
%
0.51
%
0.41
%
0.30
%
Capital Ratios
Leverage Capital Ratio (2)
9.29
%
9.21
%
9.09
%
8.84
%
8.63
%
Tier 1 Capital Ratio (2)
13.19
%
13.11
%
12.89
%
12.84
%
12.39
%
Total Capital Ratio (2)
14.27
%
14.23
%
14.05
%
14.02
%
13.56
%
Tangible Common Equity Ratio
7.99
%
8.23
%
8.08
%
8.05
%
7.70
%
Average Equity to Average Assets
9.14
%
9.16
%
9.10
%
8.78
%
8.45
%
Average Tangible Equity to Average Assets
8.19
%
8.19
%
8.13
%
7.82
%
7.49
%
(1)Annualized using a 365-day basis for 2026 and 2025.
(2)Estimated for current period.
The First Bancorp
Five Quarter Trend - Consolidated Balance Sheets (Unaudited)
In thousands of dollars, except per share data
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
Assets
Cash and due from banks
$
32,117
$
29,759
$
23,607
$
27,779
$
31,606
Interest-bearing deposits in other banks
2,871
2,715
30,075
4,124
7,225
Securities available-for-sale
282,792
276,032
256,788
264,480
273,493
Securities held-to-maturity
352,535
351,991
354,057
355,928
362,552
Restricted equity securities, at cost
7,758
8,737
8,314
8,275
6,916
Loans held for sale
284
190
—
—
333
Loans
2,441,559
2,423,711
2,405,149
2,394,109
2,398,510
Less allowance for credit losses
23,814
24,555
25,209
25,365
25,078
Net loans
2,417,745
2,399,156
2,379,940
2,368,744
2,373,432
Accrued interest receivable
17,051
20,106
19,247
14,185
16,256
Premises and equipment
28,283
28,351
28,720
28,767
27,919
Other real estate owned
30
—
—
—
—
Goodwill
30,646
30,646
30,646
30,646
30,646
Other assets
79,671
68,414
69,369
63,375
68,100
Total assets
$
3,251,783
$
3,216,097
$
3,200,763
$
3,166,303
$
3,198,478
Liabilities
Demand deposits
$
316,825
$
282,691
$
268,100
$
279,912
$
313,729
NOW deposits
712,583
645,223
660,511
689,083
638,090
Money market deposits
459,129
422,077
453,210
469,689
458,398
Savings deposits
251,295
250,182
247,084
248,805
255,806
Certificates of deposit
695,235
765,298
699,635
638,931
688,001
Certificates $100,000 to $250,000
187,607
170,354
184,486
190,676
210,741
Certificates $250,000 and over
163,998
143,953
151,617
147,656
172,785
Total deposits
2,786,672
2,679,778
2,664,643
2,664,752
2,737,550
Borrowed funds
144,882
214,069
195,796
187,821
152,968
Other liabilities
32,080
29,290
53,540
30,587
33,394
Total Liabilities
2,963,634
2,923,137
2,913,979
2,883,160
2,923,912
Shareholders' equity
Common stock
113
113
113
112
112
Additional paid-in capital
75,327
74,829
74,255
73,714
73,276
Retained earnings
256,610
250,254
245,001
240,456
234,435
Net unrealized loss on securities available-for-sale
(44,110
)
(32,444
)
(32,790
)
(31,341
)
(33,523
)
Net unrealized loss on transferred securities from available-for-sale to held-to-maturity
(31
)
(32
)
(35
)
(38
)
(40
)
Net unrealized gain on cash flow hedging derivative instruments
—
—
—
—
19
Net unrealized gain on postretirement costs
240
240
240
240
287
Total shareholders' equity
288,149
292,960
286,784
283,143
274,566
Total liabilities & shareholders' equity
$
3,251,783
$
3,216,097
$
3,200,763
$
3,166,303
$
3,198,478
Common Stock
Number of shares authorized
18,000,000
18,000,000
18,000,000
18,000,000
18,000,000
Number of shares issued and outstanding
11,285,552
11,278,777
11,271,014
11,222,363
11,214,455
Book value per common share
$
25.53
$
25.97
$
25.44
$
25.23
$
24.48
Tangible book value per common share
$
22.81
$
23.25
$
22.71
$
22.49
$
21.74
The First Bancorp
Five Quarter Trend - Consolidated Statements of Income (Unaudited)
For the Quarters Ended
In thousands of dollars, except per share data
9/30/2026
6/30/2026
3/31/2026
12/31/2025
9/30/2025
Interest income
Interest and fees on loans
$
36,584
$
35,354
$
34,725
$
36,025
$
36,197
Interest on deposits with other banks
32
38
30
185
108
Interest and dividends on investments
4,859
4,447
4,384
4,522
4,700
Total interest income
41,475
39,839
39,139
40,732
41,005
Interest expense
Interest on deposits
17,171
16,884
16,702
18,323
19,380
Interest on borrowed funds
1,803
1,793
1,748
1,298
1,567
Total interest expense
18,974
18,677
18,450
19,621
20,947
Net interest income
22,501
21,162
20,689
21,111
20,058
Credit loss expense - loans
845
919
650
615
690
Credit loss expense (reduction) - debt securities held to maturity
6
(1
)
(1
)
(40
)
(12
)
Credit loss expense (reduction) - off-balance sheet credit exposures
128
17
(29
)
(303
)
22
Total credit loss expense
979
935
620
272
700
Net interest income after provision for credit losses
21,522
20,227
20,069
20,839
19,358
Non-interest income
Investment management and fiduciary income
1,460
1,548
1,486
1,433
1,341
Service charges on deposit accounts
553
585
560
559
532
Net securities gains
—
—
12
—
—
Mortgage origination and servicing income
232
195
176
211
219
Debit card income
1,490
1,375
1,200
1,596
1,403
Other operating income
1,243
958
1,017
935
980
Total non-interest income
4,978
4,661
4,451
4,734
4,475
Non-interest expense
Salaries and employee benefits
7,354
7,120
7,330
7,198
6,674
Occupancy expense
818
836
956
827
814
Furniture and equipment expense
1,558
1,454
1,543
1,487
1,491
FDIC insurance premiums
629
604
570
629
698
Amortization of identified intangibles
7
6
7
6
7
Other operating expense
3,183
3,357
3,210
2,984
3,070
Total non-interest expense
13,549
13,377
13,616
13,131
12,754
Income before income taxes
12,951
11,511
10,904
12,442
11,079
Applicable income taxes
2,280
1,951
1,911
2,270
1,997
Net Income
$
10,671
$
9,560
$
8,993
$
10,172
$
9,082
Basic earnings per share
$
0.96
$
0.86
$
0.81
$
0.92
$
0.82
Diluted earnings per share
$
0.95
$
0.85
$
0.80
$
0.91
$
0.81
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 nine months ended
For the quarters ended
In thousands of dollars
9/30/2026
9/30/2025
9/30/2026
6/30/2026
9/30/2025
Net interest income as presented
$
64,352
$
56,266
$
22,501
$
21,162
$
20,058
Effect of tax-exempt income
2,041
2,136
703
674
727
Net interest income, tax equivalent
$
66,393
$
58,402
$
23,204
$
21,836
$
20,785
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-equivalent adjustment to net interest income. The following table provides a reconciliation between the GAAP and non-GAAP efficiency ratio:
For the nine months ended
For the quarters ended
In thousands of dollars
9/30/2026
9/30/2025
9/30/2026
6/30/2026
9/30/2025
Non-interest expense, as presented
$
40,542
$
37,797
$
13,549
$
13,377
$
12,754
Net interest income, as presented
64,352
56,266
22,501
21,162
20,058
Effect of tax-exempt interest income
2,041
2,136
703
674
727
Non-interest income, as presented
14,090
12,606
4,978
4,661
4,475
Effect of non-interest tax-exempt income
237
144
80
80
48
Net securities gains
(12
)
—
—
—
—
Adjusted net interest income plus non-interest income
$
80,708
$
71,152
$
28,262
$
26,577
$
25,308
Non-GAAP efficiency ratio
50.23
%
53.12
%
47.94
%
50.33
%
50.40
%
GAAP efficiency ratio
51.68
%
54.88
%
49.31
%
51.80
%
51.99
%
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 nine months ended
For the quarters ended
In thousands of dollars
9/30/2026
9/30/2025
9/30/2026
6/30/2026
9/30/2025
Average shareholders' equity as presented
$
292,080
$
263,639
$
295,521
$
290,332
$
270,306
Less intangible assets
(30,768
)
(30,794
)
(30,775
)
(30,771
)
(30,801
)
Tangible average shareholders' equity
$
261,312
$
232,845
$
264,746
$
259,561
$
239,505
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 nine months ended
For the quarters ended
In thousands of dollars
9/30/2026
9/30/2025
9/30/2026
6/30/2026
9/30/2025
Net Income, as presented
$
29,224
$
24,222
$
10,671
$
9,560
$
9,082
Add: credit loss expense
2,534
1,578
979
935
700
Add: income taxes
6,142
5,275
2,280
1,951
1,997
Pre-Tax, pre-provision net income
$
37,900
$
31,075
$
13,930
$
12,446
$
11,779
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