Executive Summary

Q3 2025 delivered robust sequential and year-over-year earnings growth: net income rose to $9.1M and diluted EPS to $0.81, up 12.6% QoQ and 19.3% YoY, driven by net interest margin expansion and deposit mix improvements .
Net interest margin expanded 18 bps QoQ and 38 bps YoY to 2.70% as asset yields improved and funding costs declined; non-maturity deposits surged $139.5M, enabling reductions in wholesale time deposits and borrowings .
Asset quality remained favorable despite higher non-performing ratios: NPLs/loans rose to 0.40% (0.25% in Q2, 0.11% in Q3’24) and NPAs/assets to 0.30% (0.19% in Q2, 0.08% in Q3’24); ACL/loans held steady at 1.05% .
Efficiency improved: GAAP efficiency ratio fell to 51.99% and non-GAAP to 50.40%; tangible book value per share increased to $21.74 (+7.3% YoY) and leverage capital ratio improved to 8.66% .
No S&P Global consensus estimates were available for EPS or revenue; relative outperformance narrative centered on margin and deposit mix improvements rather than formal estimate beats/misses [Values retrieved from S&P Global]*.

What Went Well and What Went Wrong

What Went Well

Net interest income increased to $20.1M (+9.0% QoQ, +22.3% YoY), underpinned by higher earning asset yields and lower liability costs; NIM rose to 2.70% .
Deposit mix improved materially: non-maturity deposits +$139.5M enabled reduction of wholesale time deposits (-$107.3M) and FHLB borrowings (-$43.2M); available day-one liquidity remained ample at $702M (130% of estimated uninsured deposits) .
Management tone confident: “Our margin… improved to 2.70%,… attributable to earning asset yield enhancement in the loan portfolio, coupled with reduced funding costs… Overall asset quality remains favorable, while our capital and liquidity positions continue to be solid.” – Tony C. McKim, President & CEO .

What Went Wrong

Credit metrics ticked up: NPLs/loans increased to 0.40% (0.25% Q2; 0.11% Q3’24) and NPAs/assets to 0.30% (0.19% Q2; 0.08% Q3’24), with provision expense of $700K and net charge-offs of $441K .
Non-interest expense rose 4.5% QoQ to $12.8M, driven by salaries/benefits and seasonal hiring, partially offsetting revenue gains .
Earning assets were essentially flat in the quarter with modest net loan growth (+$4.5M), as increases in residential/home equity/municipal were offset by declines in CRE (-$7.5M) and C&I (-$4.5M) .

Financial Results

Core P&L and Margin Trend

Metric	Q1 2025	Q2 2025	Q3 2025
Diluted EPS ($)	$0.63	$0.72	$0.81
Net Interest Income ($USD Millions)	$17.8	$18.4	$20.1
Non-Interest Income ($USD Millions)	$4.0	$4.1	$4.5
Net Interest Margin Tax-Equivalent (%)	2.48%	2.52%	2.70%
Efficiency Ratio (GAAP) (%)	58.91%	54.13%	51.99%
Efficiency Ratio (Non-GAAP) (%)	56.93%	52.39%	50.40%

YoY Comparison (Q3 2025 vs Q3 2024)

Metric	Q3 2024	Q3 2025
Net Income ($USD Millions)	$7.57	$9.08
Diluted EPS ($)	$0.68	$0.81
Net Interest Income ($USD Millions)	$16.40	$20.06
Non-Interest Income ($USD Millions)	$4.12	$4.48
Net Interest Margin TE (%)	2.32%	2.70%
Efficiency Ratio (Non-GAAP) (%)	56.37%	50.40%

Segment Breakdown (Non-Interest Income)

Category ($USD Thousands)	Q1 2025	Q2 2025	Q3 2025
Investment Mgmt & Fiduciary	1,317	1,336	1,341
Service Charges on Deposits	531	539	532
Mortgage Origination & Servicing	195	221	219
Debit Card Income	1,170	1,286	1,403
Other Operating Income	789	747	980

Balance Sheet & Credit KPIs

Metric	Q1 2025	Q2 2025	Q3 2025
Total Assets ($USD Millions)	$3,187.4	$3,199.5	$3,198.5
Total Loans ($USD Millions)	$2,383.2	$2,394.0	$2,398.5
Total Deposits ($USD Millions)	$2,711.3	$2,705.3	$2,737.6
Borrowed Funds ($USD Millions)	$185.4	$196.2	$153.0
NPLs / Total Loans (%)	0.25%	0.25%	0.40%
NPAs / Total Assets (%)	0.19%	0.19%	0.30%
ACL / Total Loans (%)	1.05%	1.04%	1.05%
Provision for Credit Losses ($USD Millions)	$0.392	$0.486	$0.700
Net Charge-Offs ($USD Millions)	$0.153	$0.633	$0.441
Leverage Capital Ratio (%)	8.42%	8.47%	8.66%
Total Risk-Based Capital Ratio (%)	13.15%	13.33%	13.60%
Dividend per Share ($)	$0.36	$0.37	$0.37

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q3 2025	$0.36 in Q1; $0.37 in Q2	$0.37 (declared Sep 25, paid Oct 16)	Maintained
Revenue	Q3 2025	No formal guidance disclosed	No formal guidance disclosed	N/A
Net interest margin	Q3 2025	No formal guidance disclosed	No formal guidance disclosed	N/A
Operating expenses	Q3 2025	No formal guidance disclosed	No formal guidance disclosed	N/A
Tax rate	Q3 2025	No formal guidance disclosed	No formal guidance disclosed	N/A

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in our document set; themes are inferred from management press releases across quarters.

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Net interest margin trajectory	Q1: NIM +26 bps YoY to 2.48% on better asset yields and stabilized funding costs ; Q2: NIM 2.52% (+31 bps YoY) with asset yield +12 bps and liability cost -20 bps	NIM 2.70% (+18 bps QoQ) with asset yield +9 bps and funding cost -7 bps	Accelerating improvement
Deposit mix & liquidity	Q1: Non-maturity deposits down seasonally; liquidity $700M covering 147% uninsured deposits ; Q2: Non-maturity down $15.3M; liquidity $718M covering 150% uninsured	Non-maturity deposits +$139.5M; liquidity $702M covering 130% uninsured	Favorable mix shift, ample liquidity
Asset quality	Q1: NPAs/assets 0.19%; NPLs/loans 0.25% ; Q2: NPAs/assets 0.19%; NPLs/loans 0.25%	NPAs/assets 0.30%; NPLs/loans 0.40%; net charge-offs $441K	Modest deterioration but still low
Capital & TBV	Q1 TBV/share $20.44; leverage 8.42%; TRBC 13.15% ; Q2 TBV/share $20.94; leverage 8.47%; TRBC 13.33%	TBV/share $21.74; leverage 8.66%; TRBC 13.60%	Strengthening capital and TBV
Non-interest income	Q1: +9.9% YoY; strong wealth management and derivatives ; Q2: debit card income +$116K QoQ	Debit card +$117K QoQ; other income +$233K (loan-based derivative fees)	Growth sustained

Management Commentary

“Our margin for the third quarter improved to 2.70%, up 18 basis points in the period, attributable to earning asset yield enhancement in the loan portfolio, coupled with reduced funding costs.” – Tony C. McKim, President & CEO .
“We saw stronger than expected growth in non-maturity deposits, which were up nearly $140 million during the period. This growth allowed for replacement of higher cost wholesale time deposits and borrowings, a key contributor in lowering overall funding costs.” – Tony C. McKim .
“Overall asset quality remains favorable, while our capital and liquidity positions continue to be solid.” – Tony C. McKim .

Q&A Highlights

No Q3 2025 earnings call transcript was available in the retrieved documents; therefore, Q&A highlights and guidance clarifications cannot be provided from a call transcript in this period.

Estimates Context

S&P Global consensus was unavailable for Q3 2025 EPS and revenue; no # of estimates recorded. Actual financial results are shown above.

Metric (S&P Global)	Q3 2025
EPS Consensus Mean	n/a*
Revenue Consensus Mean	n/a*
Primary EPS – # of Estimates	n/a*
Revenue – # of Estimates	n/a*

*Values retrieved from S&P Global.

Key Takeaways for Investors

Margin-led earnings momentum: NIM expansion to 2.70% and improving efficiency ratios underpin EPS growth; deposit mix shift reduces funding costs, supporting further margin resilience .
Mix and liquidity tailwinds: Non-maturity deposit inflows and reduced wholesale funding de-risk the liability structure; liquidity covers 130% of uninsured deposits, mitigating run-risk optics .
Credit watch: While ratios remain low, NPLs and NPAs climbed sequentially and YoY; continued provisioning and charge-offs warrant monitoring for potential normalization in credit costs .
Capital accretion: Leverage and risk-based capital ratios improved; tangible book value per share rising provides valuation support and balance-sheet flexibility .
Fee durability: Incremental gains in debit card and derivative-related fees augment revenue diversity, partially offsetting operating expense pressures .
Dividends steady: Quarterly dividend maintained at $0.37; income profile and capital levels support continuity in shareholder returns .
Estimates gap: Absence of formal S&P Global consensus limits beat/miss framing; the narrative for near-term stock reaction centers on visible NIM and deposit mix improvements versus credit normalization risk [Values retrieved from S&P Global]*.

First Bancorp, Inc /ME/ (FNLC)·Q3 2025 Earnings Summary