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First Bancorp, Inc /ME/ (FNLC)·Q1 2025 Earnings Summary

Executive Summary

  • Net income $7.08M and diluted EPS $0.63, up 17.5% and 17.0% YoY, respectively, as net interest margin expanded 26 bps YoY to 2.48% on higher earning asset yields and easing funding costs .
  • QoQ, EPS dipped modestly (-$0.02) and net income fell 2.8% as non-interest income normalized from Q4 debit card incentives and OpEx rose on one-time retirement payouts and higher benefits/payroll taxes .
  • Loans grew $42.2M in Q1 (+7.3% annualized), led by commercial & multifamily, while deposits fell seasonally (-$13.9M); liquidity remained robust with $700M available (147% of uninsured deposits) .
  • Asset quality remained favorable despite slight upticks: NPA/Assets 0.19% and NPL/Loans 0.25%; ACL/Loans 1.05% and net charge-offs 0.03% annualized .
  • Dividend maintained at $0.36 in Q1 and raised to $0.37 in Q2, reinforcing shareholder return; margin trajectory and credit stability remain the key stock catalysts .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin climbed to 2.48% (+6 bps QoQ; +26 bps YoY) as earning asset yields increased and total liability costs declined, driving net interest income to $17.8M (best since Q1’23) .
  • Commercial and multifamily loan growth was strong (+$14.0M C&I and +$22.3M multifamily), with targeted production of $147M at disciplined pricing; total loans +$42.2M in Q1 .
  • Non-interest income expanded 9.9% YoY on Wealth Management (+10.9%) and customer derivative revenue; efficiency ratio improved YoY to 56.93% .
    “We continue to make solid progress in restoring earnings to our historical performance levels… driven by increased earning asset yields and stabilized funding costs.” — CEO Tony C. McKim .

What Went Wrong

  • QoQ non-interest income fell $434k, primarily debit card revenue normalization after Q4 incentives and holiday volume; OpEx rose $699k QoQ on one-time retirement payouts, higher benefits/payroll taxes, and FDIC premiums .
  • Asset quality metrics ticked up modestly: NPA/Assets 0.19% (vs 0.14% Q4) and NPL/Loans 0.25% (vs 0.18% Q4), though still favorable; past due loans 0.33% (vs 0.40% Q4, but above 0.09% YoY) .
  • Provision for credit losses of $392k vs a reversal in Q1’24 (–$513k), reflecting more normalized provisioning and minor reserve adjustments .

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Diluted EPS ($)$0.54 $0.68 $0.65 $0.63
Net Income ($MM)$6.02 $7.57 $7.28 $7.08
Net Interest Income ($MM)$14.88 $16.40 $17.55 $17.80
Non-Interest Income ($MM)$3.64 $4.12 $4.44 $4.00
Provision for Credit Losses ($MM)($0.51) ($0.64) $1.16 $0.39
Net Interest Margin TE (%)2.22% 2.32% 2.42% 2.48%
Efficiency Ratio (%)61.15% 56.37% 53.39% 56.93%
ROA (%)0.82% 0.98% 0.92% 0.91%
ROE (%)9.92% 11.86% 11.27% 11.13%
Balance Sheet (Period End)Q1 2024Q3 2024Q4 2024Q1 2025
Total Assets ($MM)$2,978.17 $3,142.56 $3,151.97 $3,187.37
Total Loans ($MM)$2,173.75 $2,307.25 $2,340.94 $2,383.15
Total Deposits ($MM)$2,548.99 $2,702.72 $2,725.25 $2,711.34
Borrowed Funds ($MM)$154.78 $151.03 $146.28 $185.44
Tangible BVPS ($)$19.03 $20.27 $19.87 $20.44
TCE Ratio (%)7.19% 7.26% 7.09% 7.25%
Uninsured Deposits (% of Total)—17% 18.6% 17.6%
Asset Quality KPIsQ1 2024Q3 2024Q4 2024Q1 2025
NPL / Loans (%)0.12% 0.11% 0.18% 0.25%
NPA / Assets (%)0.09% 0.08% 0.14% 0.19%
ACL / Loans (%)1.11% 1.04% 1.06% 1.05%
Past Due / Loans (%)0.09% 0.14% 0.40% 0.33%
Net Charge-offs (annualized)———0.03%
Loan Portfolio Changes (Q1 2025)Change ($MM)
Commercial & Industrial+$14.0
Multifamily+$22.3
Commercial Real Estate-$1.8
Municipal-$6.7
Residential Term+$8.5
Home Equity+$8.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025$0.36 (Q4 2024 payout unchanged) $0.36 (declared March 27; paid Apr 18) Maintained
Dividend per shareQ2 2025$0.36 (prior four quarters) $0.37 (declared June 26; payable Jul 18) Raised
Net interest margin outlook2025Expect gradual improvement (Q4 commentary) NIM improved to 2.48% in Q1; management cites continued stabilization in funding costs Qualitative upward bias

Note: No formal quantitative guidance provided for revenue, OpEx, OI&E, tax rate, or segment-specific metrics in Q1 materials .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in our document set; themes below reflect management press releases across quarters.

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Net interest marginQ3: +11 bps QoQ to 2.32% on higher asset yields, flat funding costs ; Q4: +10 bps QoQ to 2.42%; funding costs -15 bps +6 bps QoQ to 2.48%; asset yields +3 bps; funding costs -6 bps Improving
Loan growthQ3: +$59.6M, 10.6% annualized, led by C&I; residential +$12.1M +$42.2M in Q1, 7.3% annualized; C&I +$14.0M, multifamily +$22.3M Continued, moderated
Deposits & liquidityQ3: seasonal lift; deposits +$124.6M; liquidity $703M (149% uninsured) Deposits -$13.9M seasonally; liquidity $700M (147% uninsured) Stable
Asset qualityQ3: NPA 0.08%; NPL 0.11% NPA 0.19%; NPL 0.25%; past due 0.33% (low) Slightly weaker, still favorable
Non-interest incomeQ3: steady; debit card +2.4% QoQ YoY +9.9% (Wealth Mgmt +10.9%); QoQ down $434k on lack of Q4 incentives Normalizing QoQ; healthy YoY
Funding costsQ4: -15 bps; drove NIM expansion -6 bps QoQ; continued stabilization Easing

Management Commentary

  • “Our net interest margin improved to 2.48%… driven by increased earning asset yields and stabilized funding costs. Non-interest income expanded nearly 10% year-over-year… while operating expenses increased… influenced by several one-time events and higher benefit expenses.” — Tony C. McKim, President & CEO .
  • “Balance sheet expansion in the first quarter was measured and targeted within the loan portfolio… new loan production of over $147 million… Asset quality remains quite favorable, and capital and liquidity positions continue to be strong.” — Tony C. McKim .
  • CFO contact for investor inquiries: Richard M. Elder, EVP & CFO, 207-563-3195 .

Q&A Highlights

No Q1 2025 earnings call transcript found; therefore, no analyst Q&A highlights, clarifications, or tone read-through are available from a call [ListDocuments earnings-call-transcript: none].

Estimates Context

MetricQ1 2025 ActualQ1 2025 Consensus# of Estimates
Diluted EPS ($)$0.63 N/AN/A
Revenue ($MM)$21.409*N/AN/A

Values retrieved from S&P Global.*
Note: S&P Global consensus estimates for FNLC Q1 2025 EPS and revenue were unavailable; only the actual “Revenue” (defined by SPGI as net interest income after provision plus non-interest income) was returned [GetEstimates].

Key Takeaways for Investors

  • Margin expansion continues: NIM improved to 2.48% as asset yields rose and funding costs eased, supporting higher NII and a constructive trajectory for spread income .
  • Earnings quality: YoY EPS +17% and PTPP +32.5% reflect core earnings improvement; QoQ decline driven by transient debit card incentives and one-time employee costs, not deterioration in core trends .
  • Credit remains solid: Slight upticks in NPA/NPL from very low levels; ACL appropriate at 1.05%, net charge-offs de minimis (0.03% annualized) .
  • Balance sheet discipline: Loan growth targeted to commercial/multifamily with strong liquidity ($700M) and manageable uninsured deposits (17.6%, 74% collateralized), reducing tail risk .
  • Efficiency watch: Ratio at 56.93% (up QoQ on one-time items) but improved YoY; monitor OpEx normalization and FDIC premium trends near term .
  • Dividend support: Q1 payout held at $0.36; Q2 increased to $0.37, signaling confidence in earnings trajectory and shareholder returns .
  • Near-term trading: Focus on continued NIM progression, loan growth mix, and non-interest income normalization; medium term, watch for further funding cost relief and stability in asset quality to sustain ROA/ROE .