Name: First Bancorp, Inc /ME/ Q2 2025 Earnings Call
Start: 2025-07-23T00:00:00.000Z

Executive Summary

Q2 2025 delivered the strongest quarterly earnings since Q4 2022: net income $8.063M and diluted EPS $0.72, up 30.7% YoY and 13.9% QoQ, driven by margin expansion and higher net interest income .
Net interest margin rose to 2.52% (highest since Q1 2023), up 31 bps YoY and 4 bps QoQ; efficiency ratio improved to 52.39% as expenses normalized QoQ .
Balance sheet growth remained measured: loans +$10.9M QoQ; deposits −$6.0M QoQ (seasonal), liquidity robust at $718M covering ~150% of estimated uninsured deposits; asset quality favorable with NPAs/Assets at 0.19% .
Dividend increased to $0.37 (+$0.01), marking the 11th consecutive year of a second-quarter increase; attractive forward yield cited by management .
No Wall Street consensus EPS or revenue estimates available to benchmark results this quarter; limited or no S&P Global coverage for FNLC’s quarterly estimates [Functions:GetEstimates Q2 2025].*

What Went Well and What Went Wrong

Margin-led earnings recovery: “highest level of quarterly earnings since the fourth quarter of 2022,” with net interest margin improving to 2.52% on better earning asset yields and lower liability costs .
Operating leverage: Net interest income grew to $18.4M (+22.1% YoY; +3.4% QoQ); non-interest expense fell QoQ as one-time salary effects in Q1 normalized, improving efficiency ratio to 52.39% .
Strong balance sheet and liquidity: available day-one liquidity of $718M covering 150% of uninsured deposits; capital ratios stable/improving (Total RBC 13.33%, leverage 8.47%), and tangible book value per share increased to $20.94 .

Expense pressures YoY: non-interest expense rose 8.4% YoY, primarily from salaries/benefits and normalization of incentive accruals, partially offset QoQ .
Asset quality metrics ticked up YoY (still favorable): NPAs/Assets 0.19% vs 0.09% YoY; NPLs/Loans 0.25% vs 0.11% YoY; net charge-offs $633K in Q2 (annualized YTD NCO rate 0.07%) .
Deposit seasonality and slight funding cost uptick QoQ: non-maturity deposits down $15.3M (seasonal), time deposits +$9.3M; average cost of liabilities rose slightly to 3.28% QoQ .

Metric	Q4 2024	Q1 2025	Q2 2025
Net Income ($USD Millions)	$7.282	$7.077	$8.063
Diluted EPS ($USD)	$0.65	$0.63	$0.72
Net Interest Income ($USD Millions)	$17.553	$17.799	$18.409
Non-Interest Income ($USD Millions)	$4.436	$4.002	$4.129
Provision for Credit Losses ($USD Millions)	$1.164	$0.392	$0.486
Net Interest Margin (Tax-Equivalent, %)	2.42%	2.48%	2.52%
Efficiency Ratio (Non-GAAP, %)	53.39%	56.93%	52.39%

Segment breakdown: Not applicable (community bank reporting; no segment detail provided in the release) .

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Total Assets ($USD Billions)	$3.152	$3.187	$3.200
Total Loans ($USD Billions)	$2.341	$2.383	$2.394
Total Deposits ($USD Billions)	$2.725	$2.711	$2.705
Tangible Book Value per Share ($USD)	$19.87	$20.44	$20.94
Uninsured Deposits (% of Total)	18.6%	17.6%	17.7%
Liquidity ($USD Millions)	>$790	$700	$718
NPLs/Total Loans (%)	0.18%	0.25%	0.25%
NPAs/Total Assets (%)	0.14%	0.19%	0.19%
ACL/Total Loans (%)	1.06%	1.05%	1.04%

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share ($)	Q2 2025	$0.36 (Q1 2025 dividend)	$0.37	Raised (+$0.01)
Revenue/Margins/OpEx/Tax	Q2 2025	Not provided	Not provided	N/A (no guidance disclosed)

No Q2 2025 earnings call transcript was available; themes below reflect management commentary across the last three disclosures.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Net Interest Margin & Funding Cost	NIM improved to 2.42% in Q4 on lower funding costs; continued lift to 2.48% in Q1 on stabilized liabilities and higher asset yields	NIM 2.52%, highest since Q1 2023; driven by +12 bps earning asset yields and −20 bps liability costs YoY	Improving
Loan Growth & Mix	Q4 growth in CRE/residential; Q1 targeted growth led by multifamily and C&I; CRE modest decline	QoQ loan growth +$10.9M; municipal +$7.8M, multifamily +$5.9M, C&I +$1.7M; CRE −$11.4M; residential/home equity up modestly	Selective growth, mix shift
Deposits & Liquidity	Q4 core deposits +$33M; uninsured 18.6%, liquidity >$790M	Q1 deposits −$13.9M (seasonal), uninsured 17.6%, liquidity $700M	Q2 deposits −$6.0M (seasonal); uninsured 17.7%, liquidity $718M (~150% coverage)
Asset Quality	Q4 NPAs/Assets 0.14%; NPLs/Loans 0.18%	Q1 NPAs/Assets 0.19%; NPLs/Loans 0.25%	Q2 NPAs/Assets 0.19%; NPLs/Loans 0.25%; past dues down QoQ
Operating Expenses	Q4 expenses modestly higher QoQ; efficiency 53.39%	Q1 expenses elevated by one-time items; efficiency 56.93%	Q2 expenses −5.0% QoQ; efficiency 52.39%
Capital & TBV	TBV/share $19.87 (Q4); leverage 8.47%, TRBC 13.21%	TBV/share $20.44; leverage 8.42%, TRBC 13.15%	TBV/share $20.94; leverage 8.47%, TRBC 13.33%
Dividend Policy	$0.36 (Q4, Q1)	—	$0.37 (Q2), 11th consecutive annual Q2 increase

“I am pleased to report continued improvement in operating results for the second quarter of 2025, demonstrated by our highest level of quarterly earnings since the fourth quarter of 2022.” — Tony C. McKim, President & CEO .
“The primary driver of the Company's improved performance is higher levels of net interest income spurred by earning asset growth and margin expansion… our net interest margin improved to 2.52%… while earning assets have increased $115.5 million.” .
“New loan production during the quarter totaled $132 million as we continue to be selective in the credits and pricing structures being added to the Bank's balance sheet… Asset quality remains favorable, while capital and liquidity positions continue to be solid.” .

No Q2 2025 earnings call transcript was available; management’s disclosures centered on press release commentary. Key areas investors would typically probe—margin trajectory, loan mix/credit, deposit betas/liquidity—were addressed in prepared remarks and data tables, including NIM drivers, provisioning, and deposit/liquidity coverage .

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